CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 79 Çelebi Ground Handling 2018 Annual Report Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish 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.) Reconciliation of EBITDA to profit before tax is provided as follows: January 1- January 1- December 31, December 31, 2018 2017 EBITDA for reported segments 412.005.362 238.564.832 Depreciation and amortization (66.961.944) (38.492.674) Operating lease equalization (10.269.714) (9.195.684) Effect of TFRIC 4-12 (6.446.852) (6.854.881) Other operating income 194.183.103 22.521.334 Other operating expenses (-) (188.608.265) (17.262.508) Addition: Prepaid allocation cost expense (1.155.072) (1.155.072) Retirement pay liability and unused vacation provisions (11.760.637) (9.735.295) Addition: Impairment of fixed assets EBITDA effect of investments accounted using the equity method (45.055.466) (30.028.029) Operating profit 275.930.515 148.362.023 Share of profit from investments accounted using the equity method Income from investment activities 23.371.805 11.527.783 Expenses from investment activities (-) 3.948.024 1.113.674 Financial income (305.699) (2.454.859) Financial expenses (-) 77.551.573 19.701.438 (165.684.117) (70.866.589) Profit before tax Operating profit 214.812.101 107.383.470 The figures provided to the board of directors with respect to total assets and liabilities are measured in a manner consistent with that of the consolidated financial statements. These assets are allocated based on the operations of the segment and the physical location of the asset. The reconciliation of the total assets of the geographical segment assets to the financial statements is as follows: Total Assets December 31, 2018 December 31, 2017 Turkey 690.655.294 517.942.130 India 503.993.353 330.186.664 Hungary 257.080.867 93.293.540 Germany 41.692.496 28.236.749 Segment assets (*) 1.493.422.010 969.659.083 Unallocated assets (*) 293.113.589 142.598.016 Deduction: Inter-segment elimination (264.475.558) (276.214.913) Total assets as per consolidated financial statements 1.522.060.041 836.042.186 (*) Total combined assets are generally formed of assets that are related with operations and do not include deferred income tax assets, time deposits.