CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 90 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 Movements in property, plant and equipment for the period ended December 31, 2017 are as follows: Opening Currency Translation Closing January 1, 2018 Additions Disposals Transfers Differences December 31, 2018 Cost Plant, machinery and equipment 255.823.826 11.407.233 (1.685.853) (3.102.300) 8.510.714 270.953.620 Motor vehicles 51.586.757 520.854 (542.773) 3.323.343 9.483.208 64.371.389 Furniture and fixtures 26.595.962 1.079.967 (142.908) (2.216.763) 943.609 26.259.867 Leasehold improvements (*) 121.020.459 1.852.837 (33.316) (3.458.228) 1.363.497 120.745.249 Construction in progress 2.340.056 4.749.636 - (5.708.546) 290.929 1.672.075 457.367.060 19.610.527 (2.404.850) (11.162.494) 20.591.957 484.002.200 Accumulated depreciation Plant, machinery and equipment (173.771.036) (16.825.328) 1.473.403 7.491.532 (5.819.647) (187.451.076) Motor vehicles (36.190.543) (2.495.701) 444.752 (131.310) (6.571.026) (44.943.828) Furniture and fixtures (21.786.275) (1.516.938) 181.861 1.857.062 (660.752) (21.925.042) Leasehold improvements (*) (68.859.400) (6.094.118) 13.338 1.337.539 (459.876) (74.062.517) (300.607.254) (26.932.085) 2.113.354 10.554.823 (13.511.301) (328.382.463) Net book value 156.759.806 155.619.737 (*) The land plots where the stations and cargo buildings were constructed by the Group in the airports where it operates were rented from the DHMI and other local authorities. The station and cargo buildings on this land were constructed by the Group and recorded under the tangible assets of the Group as leasehold improvements. As of December 31, 2017 the net book value of these stations is TL 42.247.551. The lease contract signed by the Group and the DHMI is valid for one year and the agreement is renewed every year. The Group amortizes these station buildings over 15 years which correspond to their economic lives. Depreciation expense for the period ended December 31, 2017 in the amount of TL 24.651.915 and TL 2.280.170 are respectively included in cost of sales and operating expenses. The net book value of plant, machinery and equipment amounting TL 283.014 are purchased by financial leasing as of December 31, 2017.