ÇELEBİ AR19-270720 (1)

2 Çelebi Ground Handling Inc. 2019 Annual Report MESSAGE FROM THE BOARD OF DIRECTORS Dear stakeholders, Çelebi Ground Handling is one of the most eminent establishments in Turkey with its deep-seated corporate culture and long-standing experience, and being an active player on international markets, competes at the same level with the world’s leading companies. Our Company’s superior service capability, healthy financial structure, competent human resource, high quality standards and adherence to ethical business principles are the key elements that secure continued sectoral leadership in the national market. Çelebi Ground Handling possesses a strong capital structure, a strong management and a strong customer group, which make up a powerful combination that produces sustainable growth. Focused on accurately reading into the dynamics of international and national markets, our Company backs its extensive service organization with modern practices, and thus, successfully achieved its 2019 targets. In 2019, Çelebi Ground Handling devised and implemented its forward-looking initiatives, and carried on with its robust balance sheet expansion at the same time. Before presenting an assessment of our activities, we would like to share some information about the important developments in the Turkish and world economies during the reporting period. In a year of continued weak course displayed by the global macroeconomic outlook, volatilities kept taking to the fore in global financial markets. Overshadowed by protectionist policies, Brexit and geopolitical issues ongoing in various parts of the world, 2019 has been a year of heavy concerns regarding global growth. Trade wars and feared slowdown of global growth steered the major central banks such as the US Federal Reserve (the Fed) and the European Central Bank (ECB) to expansionary monetary policies once again in an effort to support the economy. Through three rate cuts during the reporting period, the Fed decreased its policy rate to the 1.50%-1.75% interval, while the ECB prepared a support program and introduced a new monthly asset buying program of EUR 20 billion and reduced rates. The rate cuts prompted a relative recovery in capital flows to emerging markets. While the US had one of its longest lasting growth periods, the Euro Zone displayed a relatively weaker growth versus 2018. During the year, political uncertainties arising in Italy and Spain, as well as the Brexit process, reflected negatively on the growth tendency in the area. With respect to the Asian economies that presented continued loss of pace, Japan grew below the projections, as the growth performance of the Chinese economy slumped to the lowest level of the last 30 years. Estimations for rates of global growth and global trade point at the lowest values for the past 10 years. The estimations point that the lowest global growth rate since the 2008 financial crisis will occur in 2019. In its January 2020 report, the IMF once again revised its global growth projections downwards, decreasing them from 3% to 2.9% for 2019 and from 3.4% to 3.3% for 2020. The report stated that negative developments in economic activity in a number of emerging countries led to a review of the growth expectations, and underlined that the relative recuperation projected in 2020 is anticipated to be driven by emerging economies other than China. On the other hand, during 2019 when globalization also took a blow, global trade weakened alongside contracted demand and declined production. After increasing by nearly 4% in 2018, global trade volume is anticipated to have grown by 1.2% according to the report released in January 2020 by the World Trade Organization. Right at the start of 2020, the signing of the first phase of the trade deal between China and the US and the approval of the Brexit deal bill raised hopes for the future even if at a small extent.