ÇHS AR21-ENG-030622

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 115 Çelebi Ground Handling Inc. 2021 Annual Report Credit risk Credit risk consists of cash and cash equivalents, bank deposits and receivables from customers exposed to credit risk. Ownership of financial assets involves the risk that counterparties may be unable to meet the terms of their agreements. The Group management meets these risks by restricting the average risk for each counterparty (excluding related parties) and receiving collateral if necessary. Explanations for credit risk are discloded in Note 8. Liquidity risk Cash flow generated through amount and term of borrowing back payments is managed by considering the amount of unreserved cash flow from its operations. Hence, on one hand it is possible to pay debts with the cash generated from operating activities if necessary and on the other hand sufficient and reliable sources of high quality loans are accessible. The Group has long-term financial liabilities with maturity more than one year amounting to TL 1.697.489.920 as at 31 December 2021 (31 December 2020: TL 1.087.252.580) (Note 7). The table below demonstrates the Group’s liquidity risk arising from financial liabilities: Contractual 31 December 2021 Book value Total cash out flow Less than 3 months 3-12 months 1-5 years More than 5 years Non-derivative financial liabilities Loans 1.478.468.803 1.563.553.025 319.120.639 588.176.959 642.032.830 14.222.597 Liabilities from leasing obligations 1.262.208.003 1.463.290.074 34.237.857 102.713.570 498.474.045 827.864.602 Trade payables - Related party 11.780.141 11.780.141 11.780.141 - - - - Other 268.410.695 268.410.695 67.840.531 200.570.164 - - Other liabilities 97.595.233 97.595.233 4.719.572 53.707.009 39.168.652 - Contractual 31 December 2020 Book value Total cash out flow Less than 3 months 3-12 months 1-5 years More than 5 years Non-derivative financial liabilities Loans 1.090.963.506 1.168.733.366 251.912.747 384.232.766 525.115.523 7.472.330 Liabilities from leasing obligations 714.699.774 1.055.527.803 27.319.306 81.957.918 242.114.535 704.136.044 Trade payables - Related party 8.892.303 8.892.303 8.892.303 - - - - Other 119.335.316 119.335.316 17.954.490 101.380.826 - - Other liabilities 107.117.358 107.117.358 7.193.642 79.600.516 20.323.200 -