ÇHS AR21-ENG-030622

18 Çelebi Ground Handling Inc. 2021 Annual Report Latin American airlines had a 66.9% full year traffic decline compared to 2019 according to their year-end 2021 data. Capacity fell 62.2% and load factor dropped 10.2 percentage points to 72.6%. Although the traffic fell 40.4% for the month of December 2021 compared to December 2019, there was a 7% improvement over the November data for the same years. African airlines’ annual traffic fell 65.2% according to year-end 2021 data compared to 2019. Capacity dropped 56.7%, and load factor sank 14.1 percentage points to 57.3%. Compared to December 2019, airline traffic was down by 60.5% in December 2021. November has been a more positive month as compared to other regions due to the travel restrictions imposed by the governments due to the Omicron variant. China’s passenger traffic fell 24.4% in 2021 compared to 2019. It was down 39.6% for December 2021 versus December 2019, which was an 11% betterment over November data for the same years. Russia’s domestic traffic increased 24.2% for the full year and 23.2% for the month of December. Russia has been the only market that expanded in 2021 as compared to 2019. In Turkey… Domestic line commercial aircraft traffic increased by 35% in the January-December 2021 period in Turkey compared to the same period of the previous year, while international commercial aircraft traffic augmented by 73.8% in the same timeframe. When 2021 data are compared to 2019 data, domestic line and international commercial aircraft traffic declined by 22.4% and 36.1% respectively. Based on these results, total commercial aircraft traffic decreased by 29.5%. January-December 2021 Activities and Performance Although governments adopted numerous measures that restrained the aviation industry due to the crisis and the pandemic caused by the Covid-19 virus that has affected the whole world, borders were reopened and flights started in the January- December period. Warehouse and Cargo Services division was much less affected by the pandemic, and continued service normally also amid the altered conditions. Since March 2020, the Group Management has suspended all outlays that are not urgent, postponed investments, and put its employees on paid and unpaid leave. In order to cut fixed costs, the Group considered the supports provided by the governments of countries in which it is active, necessary applications were filed therefor, and the Company has made use of various supports. In addition, deals were reached with airport operators and country aviation authorities, whereby licensee and rental fee payments were waived, deferred or discounted. The Group Management closely monitored its cash flow in a bid to maintain the strength of its liquidity position. As the rate of vaccination against Covid-19 increased in Turkey and in the world as of 31 December 2021, travel demand showed an upturn, which positively affected the aviation industry. While preparing its consolidated financial statements for the year ended 31 December 2021, the Group has evaluated the potential effects of the Covid-19 pandemic, and reviewed the projections and assumptions used. In this context, possible value losses that may descend in the consolidated financial statements for the period ended 31 December 2021 were assessed and no material impact was ascertained. A total of 63,686 flights were serviced by the Company in the Turkish market during January-December 2021 period, corresponding to a 35% year-on-year increase over the 2020 figure of 47,125 flights. All subsidiaries of our Company sustained significant decreases in the numbers of operational services due to the Covid-19 pandemic in 2020. As vaccination campaigns helped mitigate the effects of the pandemic in the January-December 2021 period, service numbers improved as compared to the same period in 2020. Our subsidiary, Çelebi Airport Services India Private Limited (formerly known as Çelebi Ground Handling Delhi Private Limited), which started to provide services at the Indira Gandhi International Airport in Delhi, India from June 2010, served 27,289 flights at the Delhi, Ahmedabad, Kochin, Bangalore and Hyderabat stations in the January-December 2020 period. In the January- December 2021 period, the number of flights served rose to 29,746 registering an 8.6% increase. Service has been provided at the Hyderabat station since 1 April 2019. Our Celebi Delhi Cargo Terminal Management India Pvt. Ltd. subsidiary has been providing cargo warehousing and handling services in 77,000 m 2 of space at Delhi International Indira Gandhi Airport since November 2009. While the company had handled 353,056 tons of cargo in 2020, the same went up by 9.7% to 387,333 tons in the January-December 2021 period. Celebi NAS, another subsidiary that began services at Chhatrapati Shivaji International Airport in Mumbai (Bombay) in July 2009, serviced 13,635 flights during January-December 2020 period. In the January-December 2021 period, 14,647 flights have been served with an increase of 7.4% year-on-year. BOARD OF DIRECTORS 2021 Annual Report