CELEBİ 2021 ANNUAL REPORT

3 Çelebi Ground Handling Inc. 2022 Annual Report Turkey’s economic growth has exhibited a distinctive trajectory when compared to other countries. Despite the challenging worldwide economic circumstances, which exhibited a relative recovery trend in the post-pandemic period but were impacted by geopolitical risks and elevated inflation, the Turkish economy demonstrated resilience and sustained robust growth. The Turkish economy, which grew by 7.6% in the first quarter and 7.8% in the second quarter of 2022, grew by 4.0% in the third quarter and 3.5% in the fourth quarter. Throughout the year, a significant growth rate of 5.6% was attained. During the first half of 2022, the industry sector spearheaded growth, while the impact of the swift growth in services, particularly in the tourism industry, was evident throughout the year. The role of private consumption in driving growth became apparent, particularly in the latter half of the year. However, the contribution of foreign demand was relatively limited due to the deceleration in economic activity in export markets. Despite the repercussions of the war, tourism revenues in 2022 have demonstrated a strong performance that surpassed projections, with the contribution of postponed travel programs and the diversification of tourism activity across various areas and on country-basis. Tourism revenues, which increased by 53.4% in 2022 compared to 2021, surpassed the level of USD 39 billion in 2019, which is considered the golden year for the tourism industry, with a total revenue of USD 46.3 billion. The positive trend in early reservations indicates a promising start to 2023 in tourism, and the projected tourism income for the year is set at USD 56 billion. In 2022, there has been a notable discussion surrounding elevated inflation rates both globally and within Turkey. This has been attributed to the surge in energy, food, and agricultural commodity prices, which can be traced back to geopolitical developments and supply constraints across multiple industries. In the final month of 2022, a substantial decline in inflation was noted domestically, primarily attributed to the base effect. The anticipated base effect is expected to result in a reduction of the Consumer Price Index (CPI), particularly during the initial six months of 2023. The Central Bank of the Republic of Turkey (CBRT) maintained a steady policy rate of 14% in the first two quarters, before opting to reduce interest rates in August, emphasizing the need for supportive financial conditions facilitating the continuation of the acceleration in industrial production and the upward trend in employment. Over the course of 2022, the policy rate experienced a gradual decline of 500 basis points, reaching a level of 9% by the end of the year. In 2022, we successfully executed our operations in alignment with our goal of achieving efficient and sustainable growth. The pursuit of sustainable growth requires companies to keep a vigilant watch over both local and global developments, while investing in their workforce and technology in a manner that achieves optimal balance. Moreover, companies must remain adaptable to changing market conditions and customer demands, constantly renewing themselves. In accordance with this requirement, Çelebi Ground Handling has shaped its operational activities in line with contemporary demands in 2022 and pursued its operations within the scope of its goal of achieving efficient and sustainable growth. In 2022, our Company demonstrated a performance that aligned with our targets, by virtue of its strategy-oriented organizational structure, its quality service concept bolstered by sophisticated management systems, and its agility in adapting to change. As of the end of 2022, Çelebi Ground Handling ‘s consolidated assets amounted to TL 8,051 million and its equity was recorded at TL 3,252 million. In the corresponding time frame, the Company’s consolidated turnover amounted to TL 6,072 million, the consolidated gross profit amounted to TL 2,170 million, and the real operating profit was recorded at TL 1,575 million.