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 Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 109 Çelebi Ground Handling Inc. 2019 Annual Report The details of cumulative temporary differences and the related deferred tax assets and liabilities calculated with currently enacted tax rates as at December 31, 2019 and December 31, 2018 are as follows: Deferred tax base Deferred tax assets/(liabilities) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Deferred tax assets Personnel bonus accrual (8.820.516) (4.225.814) 2.139.716 929.679 Accrued sales commissions (16.284.769) (8.183.855) 3.582.649 1.800.448 Provision for employment termination benefits (27.383.829) (23.600.610) 5.837.091 4.720.122 Provision for operational leasing equalization - (144.298.040) - 50.422.062 Provision for unused vacation rights (5.488.641) (3.899.340) 1.289.051 857.855 Provision for litigation and indemnity (5.620.527) (4.529.700) 1.236.516 996.534 Adjustments related to property plant and equipment and intangible assets (90.167.381) (66.578.499) 23.023.203 23.265.191 Investment incentives (149.369.314) (110.112.709) 32.861.249 24.224.796 Deferred tax income calculated over unused previous years’ losses (52.982.680) - 16.861.738 - Adjustments related with TFRS 16 (40.602.474) - 8.120.495 - Other (36.158.100) (3.776.673) 7.636.113 1.671312 104.594.580 108.887.999 Net off - (10.348.195) Deferred tax assets 102.587.821 98.539.804 Deferred tax liabilities Adjustments related to property plant and equipment and intangible assets 110.734.573 75.686.003 (20.779.724) (13.744.093) Income accrual 1.514.675 9.335.660 (333.230) (2.053.847) Other 1.922.354 2.135.949 (384.471) (427.190) (21.540.144) (16.225.130) Net off - 10.348.195 Deferred tax liabilities (21.497.424) (5.876.935) Deferred tax assets, net 81.090.397 92.662.869