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.) 115 Çelebi Ground Handling Inc. 2019 Annual Report Credit risk Credit risk consists of cash and cash equivalents, bank deposits and receivables from customers exposed to credit risk. Ownership of financial assets involves the risk that counterparties may be unable to meet the terms of their agreements. The Group management meets these risks by restricting the average risk for each counterparty (excluding related parties) and receiving collateral if necessary. Explanations for credit risk are discloded in Note 7. Liquidity risk Cash flow generated through amount and term of borrowing back payments is managed by considering the amount of unreserved cash flow from its operations. Hence, on one hand it is possible to pay debts with the cash generated from operating activities if necessary and on the other hand sufficient and reliable sources of high quality loans are accessible. The Group has long-term financial liabilities amounted TL 704.550.286 as of December 31, 2019 (December 31, 2018: TL 488.025.051) (Note 7). The table below demonstrates the Group’s liquidity risk arising from financial liabilities: Contractual December 31, 2019 Book value Total cash out flow Less than 3 monhts 3-12 months 1-5 years More than 5 years Non derivative financial liabilities Financial liabilities 802.214.655 847.737.116 94.198.226 383.523.625 357.618.318 12.396.947 Debts from leasing obligations 458.746.839 750.722.109 19.715.261 59.145.784 149.680.290 522.180.774 Trade payables - Related party 21.948.013 21.948.013 21.948.013 - - - - Other 112.751.613 112.751.613 14.142.646 98.608.967 - - Other liabilities 35.208.017 35.208.017 635.026 17.766.685 16.806.306 - Contractual December 31, 2018 Book value Total cash out flow Less than 3 monhts 3-12 months 1-5 years More than 5 years Non derivative financial liabilities Financial liabilities 721.814.428 782.733.514 99.298.774 157.185.579 505.250.902 20.998.259 Trade payables - Related party 9.649.715 9.649.715 9.649.715 - - - - Other 90.314.824 90.314.824 15.099.434 75.215.390 - - Other liabilities 28.944.603 28.944.603 1.061.882 11.784.111 16.098.610 -