CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 66 Çelebi Ground Handling 2018 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish c) The direct and indirect ownership interests held by the Group in its subsidiaries are provided below, the direct and indirect ownership interest is equal to the proportion of effective interest. Subsidiary Ownership rate (%) December 31, 2018 December 31, 2017 Tasfiye halinde Çelebi Güvenlik (2) 94,8 94,8 CGHH 100,0 100,0 Celebi Delhi Cargo 74,0 74,0 CASI 99,9 99,9 Celebi Spain (1) 100,0 100,0 Çelebi Kargo 99,9 99,9 Celebi Cargo 99,9 99,9 (1) As of December 31, 2018, The Group has 100% directly and indirectly ownership interest of Çelebi Spain who is inactive and is not significant to the consolidated financial statements of the Group. Accordingly, Celebi Spain is not consolidated in the consolidated financial statements and accounted as financial investment over cost value (Note 5). (2) Pursuant to the resolution of Ordinary General Assembly meeting of Çelebi Güvenlik which have a capital of TL 1.906.736 and participated by the Company with an ownership rate of 94,8%, the liquidation process started as of December 31, 2013 and trade name of the Company was changed into Tasiye halinde Çelebi Güvenlik. As of December 31, 2018, since Tasfiye halinde Çelebi Güvenlik is not significant to the consolidated financial statements of the Group, no additional presentation was made in accordance with IFRS 5 Assets Held for Sale and Discontinued Operations. d) The Group recognizes the transactions of acquisitions and sales of shares of the subsidiaries, those are controlled by the Group, realized with the non-controlling interest as transactions of the Group with equity holders. Therefore, in transactions of additional share acquisition from non-controlling interest, the difference between the acquisition cost and the share of net assets of the additional shares acquired and in transactions of sale of shares to non-controlling interest, the difference between the consideration received and the share of net assets of the shares sold is recognised in equity. e) Joint venture and the associate of the Group are accounted by using the equity method. The direct and indirect ownership interests held by the Group in its joint venture and associate are provided below, the direct and indirect ownership interest is equal with the proportion of effective interest. Joint venture Ownership rate (%) December31, 2018 December31, 2017 Celebi Nas 57,00 57,00 Associate Ownership rate (%) December31, 2018 December31, 2017 DASPL 24,99 24,99 f) Financial assets in which the Group has ownership interests below 20%, or over 20% but which the Group does not exercise a significant influence or which are not significant to the consolidated financial statements are classified as available- for-sale financial assets in the consolidated financial statements. Available-for-sale financial assets that do not have quoted market prices in active markets and whose fair values cannot be reliably measured are carried at cost less any accumulated impairment loss in the consolidated financial statements. Financial investment Ownership rate (%) December 31, 2018 December31, 2017 Celebi Spain 100,00 100,00 2.2. Changes in accounting policies 2.2.1 Comparative information The current period consolidated financial statements of the Group include comparative financial information to enable the determination of the trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to the changes in the presentation of the current period consolidated financial statements. The Group presented the consolidated statement of financial position as of December 31, 2018 comparatively with the consolidated statement of financial position as of December 31, 2017, presented the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the period ended December 31, 2018 comparatively with the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the period ended December 31, 2017.