CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 91 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.) NOTE 12 - INTANGIBLE ASSETS Other Intangible Assets Movements in other intangible assets for the period ended December 31, 2018 are as follows: Currency Opening January 1, 2018 Additions Transfers Translation Differences Closing December 31, 2018 Cost Rights 10.150.600 - - - 10.150.600 Customer relations 58.113.650 - - 16.747.823 74.861.473 Software 16.914.994 3.352.299 200.599 2.003.890 22.471.782 Concession rights (**) 138.195.764 4.819.989 - 38.223.885 181.239.638 Build-operate-transfer investments (*) 96.831.439 14.163.319 - 29.631.436 140.626.194 320.206.447 22.335.607 200.599 86.607.034 429.349.687 Accumulated depreciation Rights (3.639.336) (594.424) - - (4.233.760) Customer relations (58.113.650) - - (16.747.823) (74.861.473) Software (13.069.233) (1.816.471) (39.489) (1.767.860) (16.693.053) Concession rights (**) (39.408.272) (9.827.000) - (11.500.842) (60.736.114) Build-operate-transfer investments (*) (36.174.189) (7.147.106) - (10.395.330) (53.716.625) (150.404.680) (19.385.001) (39.489) (40.411.855) (210.241.025) Net book value 169.801.767 219.108.662 (*) The difference amounting to TL 82.094.114 between the discounted value of the deposit payment made amounting to INR 1.691.135.907 which is discounted with a discount rate of 11,46%, within the scope of the concession agreement signed for the development, modernization and the operation for 25 years of the existing cargo terminal of the New Delhi Airport, India is recognised as build-operate-transfer investment and will be amortised during the concession period of 25 years. In addition, the difference amounting to TL 4.815.455 between the discounted value of the deposit payment made amounting to INR 532.220.000 which is discounted with a discount rate of - 6,25% - 10,82%, within the scope of the concession agreement signed for rendering ground handling services for 10 years in New Delhi Airport, India and 5+2 years in Cochin and Kannur Airport and 10 years in Bangalore Airport is recognised as build-operate-transfer investment and will be amortised during the concession period of 10 years. (**) Refers to fixed asset expenditures made within within the scope of the concession agreement signed between DIAL Celebi Delhi Cargo and are recognized in accordance with TFRIC 12 and TFRIC 4. As of December 31,2017, there are financial lease assets in the concession rights with the net book value of TL 9.500.958. Amortization expense for the period ended December 31, 2018 in the amount of TL 1.627.902 and TL 17.757.099 are included in operating expenses and cost of sales respectively.