ÇHS AR21-ENG-030622

4 Çelebi Ground Handling Inc. 2021 Annual Report After starting the year with rate hikes, the CBRT ended 2021 with rate cuts. The Central Bank of the Republic of Türkiye (CBRT) increased the policy rate from 17% to 19% in March 2021 due to the upside risks on inflation outlook. In September, however, the CBRT implemented a rate cut for the first time after 16 months as a result of its modified monetary policy. The depreciation of the Turkish lira became even more evident as the anticipations grew stronger that the 400-bps rate cut in total made until the last month of the year would continue. The CBRT started directly intervening the market by selling due to unhealthy price formations in exchange rates. After the CBRT set the policy rate as 14% with a further 100 bps reduction in its December meeting, the depreciation of the Turkish currency accelerated. “FC-indexed TL Time Deposit” practice launched by the end of the year to curb the Turkish lira’s loss of value and to encourage TL deposits was positively received by the markets and exchange rates declined somewhat. Turkey’s New Economic Model Concurrently with the developments in the money markets in the last quarter of the year, transition was made to Turkey’s New Economic Model which prioritizes high growth and low current deficit. While the Model basically focuses on stable and sustainable increase in the momentum of exports that is the driving engine of the national economy, it targets backing exports with value-added production, overcoming the middle income trap, accurate evaluation of the international conjuncture to climb up in the global value chains, and ultimately, resolving the current deficit issue permanently. In 2021, the world civil aviation industry partially compensated the damages sustained. One of the sectors to take the hardest hit from the negative impacts of the pandemic in 2020, civil aviation partially compensated the damages sustained in 2021. Accelerated vaccination and elimination of the restrictions between countries made the highlights of the positive developments for the industry as it was preparing for the post-pandemic period. While the sector approached the 2019 levels in the summer months of 2021, the higher infection rate of Omicron, the latest variant of the virus that emerged toward the end of the year, as compared to other variants led to reduced mobility and reconsideration of international restrictions. Travel restrictions resulted in low passenger numbers particularly in international air travel. Sector representatives project that the global air passenger numbers of 2019 will be captured in 2023, at best. In its Annual Review 2021, the International Air Transport Association (IATA) reported that total demand in 2021 was down by 58.4% as compared to 2019. Taking into account that the same data for 2020 was 65.8%, the IATA underlined that the current figure points at a betterment. In Turkey, which is fully integrated with global markets, domestic line commercial aircraft traffic registered 35% increase annually in 2021, whereas international commercial aircraft traffic was up by 73.8% and total commercial aircraft traffic was up by 51%. When compared to the 2019 data, on the other hand, domestic, international and total commercial aircraft traffic was down by 22.4%, 36.1%, and 29.5% respectively. In 2021, we authored results that are aligned with our long-term sustainable growth targets. Amid the highly restrained predictability conditions presented by 2021, the volatilities in global and domestic money markets, the imbalanced supply and demand conditions, the soaring prices of raw materials and particularly of energy, accompanied by the negativities caused by global warming and climate change closely concerned and impacted our life, production and trade cycles. At Çelebi Ground Handling, we have kept a careful eye on the impacts of global developments on our industry and the shifts in the markets, while we took accurate steps in line with our strategic roadmap. Despite the pandemic that heavily tainted particularly the first half of the year, we authored successful results in 2021. In the twelve months to end-2021, Çelebi Ground Handling serviced 63,686 flights in Turkey. As the pandemic effects subsided with the accelerated vaccination campaigns in 2021, all global subsidiaries of our Company attained significant improvements in the number of operational services as compared to 2020. MESSAGE FROM THE BOARD OF DIRECTORS