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.) 67 Çelebi Ground Handling Inc. 2019 Annual Report December 31, 2019 TFRS 16 effects (without effects) December 31, 2019 CONTINUING OPERATIONS Net sales 1.877.885.618 - 1.877.885.618 Cost of sales (-) (1.334.612.924) (14.938.084) (1.349.551.008) GROSS PROFIT 543.272.694 (14.938.084) 528.334.610 General administrative expenses (-) (229.556.624) - (229.556.624) Other income from operating activities 87.186.678 - 87.186.678 Other expenses from operating activities (-) (105.479.670) - (105.479.670) OPERATING PROFIT 295.423.078 (14.938.084) 280.484.994 Income from investment activities 4.410.868 - 4.410.868 Expenses from investment activities (-) (1.268.361) - (1.268.361) Income from investments accounted by using the equity method 24.794.204 18.300 24.812.504 OPERATING INCOME BEFORE FINANCIAL INCOME 323.359.789 (14.919.784) 308.440.005 Financial income 54.942.443 - 54.942.443 Financial expenses (-) (163.380.638) 58.177.466 (105.203.172) PROFIT BEFORE TAX FROM CONTINUING OPERATIONS 214.921.594 43.257.682 258.179.276 Tax expense (19.457.693) (8.120.495) (27.578.188) Taxes on income (55.074.586) - (55.074.586) Deferred tax income 35.616.893 (8.120.495) 27.496.398 NET PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 195.463.901 35.137.187 230.601.088 Attributable to: Non-controlling interest 3.108.822 - 3.108.822 Equity holders of the parent 192.355.079 35.137.187 227.492.266 195.463.901 35.137.187 230.601.088 In applying TFRS 16 for the first time, the group has used the following practical expedients permitted by the standard: - the use of a single discount rate to a portfolio of leases with reasonably similar characteristics - the accounting for operating leases with a remaining lease term of less than 12 months as at January 1, 2019 as short-term leases - the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease. TFRS Interpretation 23 Uncertainty over Income Tax Treatments This interpretation addresses the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under TAS 12. Amendments to TAS 28 Long-term Interests in Associates and Joint Ventures This amendment clarifies that an entity applies TFRS 9 Financial Instruments to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied.