CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 78 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 The segment information provided to the board of directors as of December 31, 2018 is as follows: Operation Groups Ground Handling Cargo and Warehouse Consolidation January 1 - December 31, 2018 Services Services Adjustments Consolidated Revenue 878.669.433 461.913.720 (6.313.099) 1.334.270.054 Cost of sales (565.624.995) (317.047.280) 5.503.153 (877.169.122) Gross profit 313.044.438 144.866.440 (809.946) 457.100.932 General administrative expenses (141.268.207) (47.355.162) 1.878.114 (186.745.255) Addition: Depreciation and amortization 46.335.799 20.626.145 - 66.961.944 Addition: Operating lease equalization (79.786) 10.349.500 - 10.269.714 Addition: Effect of TFRIC 4-12 - 6.446.852 - 6.446.852 Addition: Prepaid allocation cost expense 1.155.072 - - 1.155.072 Addition: Retirement pay liability and unused vacation provisions 8.769.077 2.991.560 - 11.760.637 Effect toinvestments accounted byusing equity method on EBITDA 45.810.673 (755.207) - 45.055.466 EBITDA 273.767.066 137.170.128 1.068.168 412.005.362 The segment information provided to the board of directors as of December 31, 2017 is as follows: Operation Groups Ground Handling Cargo and Warehouse Consolidation January 1 - December 31, 2017 Services Services Adjustments Consolidated Revenue 590.024.640 332.405.709 (4.640.686) 917.789.663 Cost of sales (406.954.065) (244.999.128) 2.659.693 (649.293.500) Gross profit 183.070.575 87.406.581 (1.980.993) 268.496.163 General administrative expenses (94.382.021) (33.122.098) 2.111.153 (125.392.966) Addition: Depreciation and amortization 24.792.749 13.699.925 - 38.492.674 Addition: Operating lease equalization (178.662) 9.374.346 - 9.195.684 Addition: Effect of TFRIC 4-12 - 6.854.881 - 6.854.881 Addition: Prepaid allocation cost expense 1.155.072 - - 1.155.072 Addition: Retirement pay liability and unused vacation provisions 8.725.071 1.010.224 - 9.735.295 Effect toinvestments accounted byusing equity method on EBITDA 31.178.886 (1.150.857) - 30.028.029 EBITDA 154.361.670 84.073.002 130.160 238.564.832