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 104 Çelebi Ground Handling Inc. 2019 Annual Report NOTE 20 - REVENUE AND COST OF SALES January 1- December 31, 2019 January 1- December 31, 2018 Ground handling services 1.188.085.801 906.549.250 Revenue from cargo and warehouse services 677.583.700 551.093.861 Rental revenue not related to aviation 62.930.804 45.898.241 Revenue in the context of TFRIC 12 2.928.863 4.819.989 Less: Returns and discounts (53.643.550) (25.350.853) Revenue- net 1.877.885.618 1.483.010.488 Cost of sales (1.334.612.924) (1.025.909.556) Gross profit 543.272.694 457.100.932 NOTE 21 - EXPENSES BY NATURE January 1- December 31, 2019 January 1- December 31, 2018 Personnel expenses (687.886.340) (502.410.164) Royalty expenses (197.250.777) (148.740.433) Payments to authorities and terminal managements (*) (150.013.177) (188.750.102) Depreciation and amortization expense (127.438.468) (66.961.944) Consultancy expenses (****) (116.265.843) (89.369.983) Technical maintenance of equipment, fuel and security expenses (108.111.983) (91.343.181) Expenses within the scope of TFRIC 12 (**) (11.106.449) (11.266.841) Travel and transportation expense (10.192.869) (8.046.730) Insurance expense (8.003.112) (6.176.302) Cost of sales (***) (2.613.737) (2.650.349) Other expenses (145.286.793) (96.938.782) (1.564.169.548) (1.212.654.811) (*) Payments to authorities and terminal managements are composed of royalty, rental facilities and check-in desks within the airport area, working licenses and similar expenses, office rental expenses and other miscellaneous expenses related to utilization of office area. (**) Aforementioned expenses are composed of construction costs calculated in accordance with TFRIC 12 and provisions for other liabilities within the scope of concession agreement. (***) Aforementioned expenses are composed of sales and utilization cost of de-icing and spare part inventories.. (****) TL 82.866.115 of the consultancy expenses are comprised of share of holding company expenses. (January 1, 2018 - December 31, 2018: TL 63.556.968)