CELEBI GROUND HANDLING 2023 ANNUAL REPORT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 98 Çelebi Ground Handling Inc. 2023 Annual Report (e) Calculated deferred tax assets over tax deductions to be used Tax receivable due to unused taxable losses is reflected on the records in the case of being most likely to have sufficient taxable profit in future periods. (f) Investments made in the framework of concession arrangements in scope of TFRIC 12 Celebi Delhi Cargo, subsidiary of the Group resident in India, has signed a concession arrangement with Delhi International Airport Private Limited (“DIAL”) on 6 May 2009 in order to operate in development, modernization, financing and management for 25 years of current cargo terminal in the airport located in New Delhi city of India. Investment expenditures made by the Group within scope of aforementioned arrangement and concession arrangement signed by Çelebi Nas, which is a joint venture of the Group subject to joint control and resident in India, on 8 April 2015, are recognized in accordance with International Financial Reporting Interpretations Committee 12 (“TFRIC 12”) Service Concession Arrangements. Preparation of the consolidated financial statements in accordance with TFRS requires the management to make decisions, estimations and assumptions affecting the implementation of policies and amounts of assets, liabilities, income and expense which are reported. Actual results may differ from those estimates. Estimations and assumptions forming a basis for estimations are continuously reviewed. Updates made in accounting estimates are recorded in the period of update and following periods affected from the aforementioned updates. Information on significant decisions applied to accounting policies which have the most significant impact on amounts recorded in consolidated financial statements is explained in the following notes: Note 2.5 (f) - Application of profit margin to construction costs made in scope of TFRIC 12 “Service Concession Arrangements” Information on estimates having significant impact on amounts recorded in consolidated financial statements is explained in the notes below: Note 11 - Property, plant and equipment Note 12 - Right-of-use assets Note 13 - Intangible assets Note 14 - Provision for employee benefits Note 29 - Tax assets and liabilities Note 31 - Related party disclosures NOTE 3 - SEGMENT REPORTING Management has determined the operating segments based on the reports reviewed by the Company’s senior management and effective in making strategic decisions. The management evaluates the Group from two perspectives; based on geographical position and operational segments. They are assessing the Group’s performance on an operational segment basis as; Ground Handling Services, Security Services, Cargo and Warehouse Services. Since the Group’s income consists primarily of these operational segments, Ground Handling Services and Cargo and Warehouse Services are regarded as reportable operating segment revenues. The management assesses the performance of the operational segments based on a measure of EBITDA after deduction of the impact of TFRS Interpretation (“TFRIC 12”), retirement pay liability and unused vacation provisions from earnings before interest, tax depreciation and amortization.