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.) 93 Çelebi Ground Handling Inc. 2019 Annual Report NOTE 11 - PROPERTY, PLANT AND EQUIPMENT Movements in property, plant and equipment for the period ended December 31, 2019 are as follows: Opening January 1, 2019 Additions Disposals (*) Transfers Currency Translation Differences Closing December 31, 2019 Cost Plant, machinery and equipment 313.225.567 65.493.959 (18.850.786) 48.365.352 13.640.436 421.874.528 Motor vehicles 92.226.743 14.225.003 (4.572.440) 576.658 6.898.733 109.354.697 Furniture and fixtures 29.989.578 7.744.712 (9.868.147) 26.848.206 616.981 55.331.330 Leasehold improvements (*) 124.977.420 9.297.800 (83.542.593) 153.141.084 892.784 204.766.495 Construction in progress 156.979.027 78.981.328 - (230.233.960) 1.215.015 6.941.410 717.398.335 175.742.802 (116.833.966) (1.302.660) 23.263.949 798.268.460 Accumulated depreciation Plant, machinery and equipment (209.073.132) (21.096.021) 14.784.400 (6.423) (6.799.271) (222.190.447) Motor vehicles (59.784.991) (5.127.916) 4.104.479 80.617 (4.410.563) (65.138.374) Furniture and fixtures (24.497.064) (5.942.000) 9.272.060 (1.399) (408.987) (21.577.390) Leasehold improvements (*) (102.237.970) (12.794.613) 83.374.799 - (545.383) (32.203.167) (395.593.157) (44.960.550) 111.535.738 72.795 (12.164.204) (341.109.378) Net book value 321.805.178 457.159.082 (*) When Istanbul Airport started to operate, Commercial flights from Istanbul Atatürk Airport were terminated in March 2019.Due to the fact that the ground handling services that the Group will provide to commercial passenger aircraft at Atatürk Airport end in the first quarter of 2019, the Group has cancelled all leasehold improvements at the relevant station and all machinery,equipment and fixtures that can not be moved to Istanbul Airport in its consolidated financial statements. With the launching of Istanbul Airport, company’s head office address moved Tayakadın Mah.Nuri Demirağ Cad.No:39, Arnavutköy.In the consolidated financial statements,the Group has also cancelled machinery,equipment and fixtures that could not be moved from its previous headquarters to its new headquarters. Net book value of cancelled assets is TL 671.396. Depreciation expense for the period ended December 31, 2019 in the amount of TL 43.254.446 and TL 1.706.104 are respectively included in cost of sales and operating expenses.