ÇELEBİ AR19-270720 (1)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2019 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish 102 Çelebi Ground Handling Inc. 2019 Annual Report NOTE 17 - DEFERRED INCOME Short-term deferred income December 31, 2019 December 31, 2018 Other advances received 15.995.712 14.506.622 Deferred income 1.036.334 1.191.949 17.032.046 15.698.571 Long-term deferred income December 31, 2019 December 31, 2018 Deferred income - 1.036.334 - 1.036.334 NOTE 18 - LIABILITIES FOR EMPLOYEE BENEFITS December 31, 2019 December 31, 2018 Wages and salaries payable 28.708.503 16.694.157 Bonus payable accruals 19.749.811 16.802.024 Social security withholdings payable 5.528.193 5.715.061 53.986.507 39.211.242 NOTE 19 - EQUITY Share Capital As of December 31, 2019, the authorized share capital of the Group is TL 24.300.000 comprising of TL 2.430.000.000 registered shares with a face value each of 1 Kr (December 31, 2018: 2.430.000.000). At December 31, 2019 and December 31, 2018, the shareholding structure of the Group is stated in historical amounts below: December 31, 2019 December 31, 2018 Shareholders Amount Share % Amount Share % Çelebi Havacılık Holding A.Ş. (ÇHH) 21.848.528 89,91 21.236.463 87,39 Diğer 2.451.472 10,09 3.063.537 12,61 24.300.000 100,00 24.300.000 100,00 Restricted Reserves The legal reserves consist of first and second reserves, appropriated in accordance with the Turkish Commercial Code. The Turkish Commercial Code stipulates that the first legal reserve is appropriated out of statutory profits at the rate of 5% per annum, until the total reserve reaches 20% of the Company’s paid-in capital. The second legal reserve is appropriated at the rate of 10% per annum of all cash distributions in excess of 5% of the paid-in capital. Under the Turkish Commercial Code, the legal reserves can be used only to offset losses and are not available for any other usage unless they exceed 50% of paid-in capital.