CELEBİ 2021 ANNUAL REPORT

2 Çelebi Ground Handling Inc. 2022 Annual Report LETTER FROM THE BOARD OF DIRECTORS Dear customers, partners, and employees, Since its establishment in 1958, Çelebi Hava Servisi A.Ş. (Çelebi Ground Handling Inc) has adopted the philosophy of creating demand rather than simply meeting it and leading the market it has established as its guiding principle, and it has also succeeded in retaining its sector leadership over this extended period of time. The success of the Company can be attributed to its dynamic corporate culture, which enables it to swiftly adapt to changing market conditions, its ability to continuously monitor and embrace industry innovations, and its proactive customer relations that are based on a customer-centric service approach. Prior to introducing our annual report, which encompasses our Company’s performance in 2022 and our financial outcomes, we would like to provide an overview of the developments that occurred in both the Turkey’s and global economies throughout the year. In 2022, we witnessed a significant deceleration in global economic activity that exceeded initial projections. Throughout the year, the global economic outlook was impacted by various challenges, including rising inflation in several countries, tightening financial conditions, the ongoing war between Russia and Ukraine, and resurgent Covid-19 cases in China. The pandemic-related financial assistance was reduced, and inflation has surged to levels not seen in several decades. This has resulted in a global tightening of monetary policies and a decrease in the purchasing power of households. Consequently, there occurred a deceleration in global economic activity that exceeded initial projections. The initial outcomes of the Russia-Ukraine war, which portrayed a significant turning point for the worldwide economy, included disruptions in regional supply chains and a rapid escalation in energy costs. The imposition of sanctions and embargoes by Western capitals against Russia in response to the invasion has resulted in a rapid increase in the price of a barrel of Brent oil, reaching its highest point in the past decade. In light of these developments, the IMF has revised its projections for the global economy in the January 2023 update of the Global Economic Outlook Report. The report indicates that the global growth forecast for 2022 has been projected to be 3.4%, while the projections for 2023 and 2024 are projected to be 2.9% and 3.1%, respectively. At its December 2022 meeting, the US Federal Reserve (Fed) raised the policy rate by 50 basis points, bringing it to a range of 4.25% - 4.50%. Due to the limited improvement in inflation, the pace of interest rate escalation has decelerated. It is anticipated that the Fed will persist with its rate hike process in 2023 as well. In December, the central banks of the Euro Zone and the UK each raised policy rates by 50 basis points. In June, the European Central Bank (ECB) raised its policy rate from 0% to 2.5% by the end of the year. Similarly, the Bank of England (BoE) raised its policy rate from 0.25% to 3.5% at the beginning of 2022. The economic landscape has shifted from a period of abundant liquidity and low financing costs to a new era. As a result, various aspects of society, including consumption patterns and daily routines, have undergone transformation. The global economic landscape has witnessed a shift from fast consumption to a circular economy in response to the pressing challenge of the climate crisis. Through inflationary pressures and declining individual welfare, there has been an apparent trend towards reduced expenditure, prolonged asset utilization, and increased savings. Numerous international organizations have forecasted that the prevailing atmosphere of uncertainty is poised to persist and exert an impact on the global economy in the period to come. The presence of multidimensional problems is expected to constrain the potential for global collaboration on matters pertaining to sustainability, environmental conservation, climate change mitigation, and supply security.