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 114 Çelebi Ground Handling Inc. 2019 Annual Report Key management compensation: The Group has determined key management personnel as members of board of directors, general manager and vice general managers. Key management compensation includes salaries, bonuses, social security contributions and other benefits provided to key management of the Group: January 1- December 31, 2019 January 1- December 31, 2018 Short-term key management compensation 23.314.509 16.771.185 23.314.509 16.771.185 NOTE 32 - FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT Financial risk management The Group focused to manage miscellaneous financial risks including changes in foreign currency exchange rates and interest rates because of activities of the Group. The Group purposes to minimize potential adverse effects arising from fluctuations in financial markets with overall risk management program. Risk management is carried out under policies approved by the Boards of Directors. Interest rate risk The Group is exposed to interest rate risk through the impact of rate changes on interest bearing liabilities and assets. These exposures are managed using natural hedges that arise from offsetting interest rate sensitive assets and liabilities. Interest rate positions of the Group at December 31, 2019 and December 31, 2018 are as follows: December 31, 2019 December 31, 2018 Fixed interest rate financial instruments Financial Assets 198.115.987 198.237.027 - Cash and cash equivalents 198.115.987 198.237.027 Financial Liabilities 1.018.758.875 511.343.407 Floating interest rate financial instruments Financial liabilities 242.202.619 210.471.021 If other variables are kept constant and the interest rates were 1% higher/lower, interest expense due to financial liabilities would have been TL 2.422.026 higher or lower at December 31, 2019. (December 31, 2018: TL 2.104.710). Expected repricing and maturity dates are not disclosed in an additional table because they are not different from contractual maturity dates for non-credit financial assets and liabilities.