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 84 Çelebi Ground Handling Inc. 2019 Annual Report Reconciliation of EBITDA to profit before tax is provided as follows: January 1- December 31, 2019 January 1- December 31, 2018 EBITDA for reported segments 522.390.474 412.005.362 Depreciation and amortization (127.438.468) (66.961.944) Operating lease equalization - (10.269.714) Effect of TFRIC 4-12 (8.177.586) (6.446.852) Other operating income 87.186.678 194.183.103 Other operating expenses (-) (105.479.670) (188.608.265) Addition: Prepaid allocation cost expense - (1.155.072) Retirement pay liability and unused vacation provisions (24.412.630) (11.760.637) EBITDA effect of investments accounted using the equity method (48.645.720) (45.055.466) Operating profit 295.423.078 275.930.515 Share of profit from investments accounted using the equity method 24.794.204 23.371.805 Income from investment activities 4.410.868 3.948.024 Expenses from investment activities (-) (1.268.361) (305.699) Financial income 54.942.443 77.551.573 Financial expenses (-) (163.380.638) (165.684.117) Profit before tax 214.921.594 214.812.101 The figures provided to the board of directors with respect to total assets and liabilities are measured in a manner consistent with that of the consolidated financial statements. These assets are allocated based on the operations of the segment and the physical location of the asset. NOTE 4 - CASH AND CASH EQUIVALENTS December 31, 2019 December 31, 2018 Cash 823.603 394.786 Banks 208.307.272 196.629.005 - time deposit 140.368.872 146.792.870 - demand deposit 67.938.400 49.836.135 209.130.875 197.023.791 As of December 31, 2019, effective interest rates on TL, EUR, USD and INR denominated time deposits are 11,22%, 0,14%, 1,83% and 6% respectively. (December 31, 2018: TL 18,16%, EUR 1,54%, USD 3,17%, INR 6,25%). As of December 31, 2019 the maturity days of denominated time deposits are 1 days for TL, USD and EUR and 10-90 days for INR (December 31, 2018: 2 days for TL and USD, 25 days for Euro and 51 days for INR). The analysis of cash and cash equivalents in terms of consolidated statements of cash flows at December 31, 2019 and December 31, 2018 are as follows: December 31, 2019 December 31, 2018 Cash and banks 209.130.875 197.023.791 Less: Interest accruals (188.248) (293.018) 208.942.627 196.730.773