ÇELEBİ AR19-270720 (1)

25 Çelebi Ground Handling Inc. 2019 Annual Report 17. EVENTS AFTER THE FINANCIAL STATEMENT DATE It has been resolved that the capital payment in the amount of INR 100,000,000 necessary for realizing the planned investments by KSU Aviation Pvt Ltd (“KSU”), its India-based subsidiary incorporated for providing “taxiing” service to aircraft in the airports in India, will be made by way of premium capital increase under the applicable legislation in that country, thus increasing its shareholding in KSU to 57.65%, and in this context, INR 100,000,000 (one hundred million Indian Rupees) (EUR 1,297,017) will be paid and all necessary formalities and transactions will be satisfied by the Company. 18. PROFIT DISTRIBUTION PROPOSAL OF THE BOARD OF DIRECTORS Our financial statements prepared on the basis of our legal books of account dated 31 December 2019 show a net current profit in the amount of TL 116,704,949.72 remaining after the deduction of all taxes and other legal obligations. Since there is no Prior Year Loss that needs to be deducted from the Net Profit for the Period and no first legal reserves that needs to be set aside pursuant to the Turkish Commercial Code (TCC), the net distributable profit that can be paid out as a dividend on the basis of our legal books of account is TL 116,704,949.72. The net profit for the period, after the deduction of tax and legal liabilities, in our consolidated financial statements dated 31 December 2019 that were prepared in accordance with the formats specified by CMB and in the Turkish Accounting Standards/Turkish Financial Reporting Standards (TAS/TFRS) pursuant to the Capital Markets Board of Turkey (CMB) Communiqué Serial: II, No: 14.1 on the “Principles of Financial Reporting in the Capital Markets”, and which have been audited by independent organizations, amounted to TL 192,355,079. Within the framework of CMB legislation, since there is no Prior Year Loss that needs to be deducted from the Net Profit for the Period and no first legal reserves that needs to be set aside pursuant to the Turkish Commercial Code (TCC), the net distributable profit is TL 192,355,079. The entirety of the Net Profit for the Period in the amount of TL 192,355,079 descended in the Company’s Consolidated Financial Statements dated 31 December 2019 be distributed as follows: ÇELEBİ HAVA SERVİSİ A.Ş. Profit Distribution Table for 2019 (TL) According to CMB legislation According to legal records Net Profit for the Period 192,355,079.00 116,704,949.27 Prior Year Loss (-) 0.00 0.00 General Legal Reserves 0.00 0.00 Net Distributable Profit for the Period 192,355,079.00 116,704,949.27 First Dividend to Shareholders 1,215,000.00 1,215,000.00 Second Dividend to Shareholders 104,490,000.00 104,490,000.00 Other Funds for Distribution 0.00 0.00 General Legal Reserves 10,449,000.00 10,449,000.00 Transferred to Extraordinary Reserves 76,201,079.00 550,949.27 In compliance with CMB regulations pertaining to profit distributions and with respect to the period beginning on 1 January 2019 and ending on 31 December 2019, the following issues are presented to the approval of the ordinary general meeting which will convene on 09 April 2019: - Shareholders who are resident corporate entities and shareholders who are non-resident corporate entities but earn dividends through a place of business or permanent representative based in Turkey will be paid a 435.00% cash dividend corresponding to TL 4.3500 gross (which is equal to TL net) for each share of stock with a nominal value of TL 1.00 that they hold; - Other shareholders will be paid a 435.00% cash dividend corresponding to TL 4.3500 gross for each share of stock with a nominal value of TL 1.00 that they hold, which amount is equal to a 369.75% cash dividend corresponding to TL 3.6975 net for each share of stock with a nominal value of TL 1.00 that they hold; · 31 March 2020 will be set as the dividend payment date. Very truly yours, ÇELEBİ HAVA SERVİSİ A.Ş. BOARD OF DIRECTORS