CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 95 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.) TAS/TFRS require actuarial valuation methods to be developed to estimate the enterprise’s obligation under defined benefit plans. The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. Group calculates the reserve for employment termination benefits every six months the maximum amount of TL 6.017,60 which is effective from January 1, 2018 (January 1, 2018: TL 5.001,76) has been taken into consideration in the calculations. Movements in the provision for employment termination benefits are as follows: 2018 2017 As of January 1 25.968.784 22.923.257 Payments of provisions during the year (10.497.227) (9.289.759) Service cost of employee termination benefits 6.859.839 6.549.642 Interest cost of employee termination benefits 2.190.014 1.963.918 Actuarial (gain)/loss 6.698.169 3.327.543 Currency translation differences 2.209.824 494.183 As of period end 33.429.403 25.968.784 Movements in the provision for unused vacation rights are as follows: 2018 2017 January 1 4.839.679 4.476.709 Payments of provisions during the year (632.401) (623.429) Increase in unused vacation rights during the year 6.249.535 5.036.527 Usage of vacation rights during the year (4.374.659) (4.242.529) Currency translation differences 430.409 192.401 As of period end 6.512.563 4.839.679 c) Contingent assets and liabilities Gurantess received and given as of December 31, 2018 and 2017 are as follows: Guarantees received: December 31, 2018 December 31, 2017 Guarantee letters 18.709.268 8.142.691 Guarantee cheques 1.503.672 9.354.905 Guarantee notes 1.932.256 1.209.627 22.145.196 18.707.223 Guarantees given: December 31, 2018 December 31, 2017 Guarantee letters 190.664.947 138.796.462 Collaterals (*) 175.772.990 113.136.325 Pledged shares (*) 32.408.518 25.859.737 398.846.455 277.792.524 (*) TL 208.181.508 of the colleterals given and pledged shares are given to the banks for the loans borrowed by the subsidiaries and joint venture of the Group (December 31, 2017: TL 138.958.882) (Note 30).