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.) 95 Çelebi Ground Handling Inc. 2019 Annual Report NOTE 13 - INTANGIBLE ASSETS Other Intangible Assets Movements in other intangible assets 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 Rights 10.150.600 2.165 (58.708) 351.896 - 10.445.953 Software 22.471.782 7.516.291 (435.483) 950.764 645.515 31.148.869 Concession rights (**) 181.239.638 2.928.863 (11.396.840) - 19.017.575 191.789.236 Build-operate-transfer investments (*) 140.626.194 4.687.426 - - 15.124.760 160.438.380 354.488.214 15.134.745 (11.891.031) 1.302.660 34.787.850 393.822.438 Accumulated depreciation Rights (4.273.249) (596.160) 58.708 (72.795) - (4.883.496) Software (16.653.564) (2.642.829) 406.973 - (310.983) (19.200.403) Concession rights (**) (60.736.114) (10.643.393) 1.227.155 - (6.786.468) (76.938.820) Build-operate-transfer investments (*) (53.716.625) (8.583.901) - - (5.999.694) (68.300.220) (135.379.552) (22.466.283) 1.692.836 (72.795) (13.097.145) (169.322.939) Net book value 219.108.662 224.499.499 (*) The difference amounting to TL 89.574.553 between the discounted value of the deposit payment made amounting to INR 1.762.120.403 which is discounted with a discount rate of 11,46%, within the scope of the concession agreement signed for the development, modernization and the operation for 25 years of the existing cargo terminal of the New Delhi Airport, India is recognised as build-operate-transfer investment and will be amortised during the concession period of 25 years. In addition, the difference amounting to TL 2.563.607 between the discounted value of the deposit payment made amounting to INR 532.220.000 which is discounted with a discount rate of - 6,25% - 10,82%, within the scope of the concession agreement signed for rendering ground handling services for 10 years in New Delhi Airport, India and 5+2 years in Cochin and Kannur Airport and 10 years in Bangalore Airport is recognised as build-operate-transfer investment and will be amortised during the concession period of 10 years. (**) Refers to fixed asset expenditures made within within the scope of the concession agreement signed between DIAL Celebi Delhi Cargo and are recognized in accordance with TFRIC 12. Amortization expense for the period ended December 31, 2019 in the amount of TL 2.571.307 and TL 19.894.976 are included in operating expenses and cost of sales respectively.