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.) 113 Çelebi Ground Handling Inc. 2023 Annual Report Goodwill impairment test The Group tests goodwill at least once a year for the risk of impairment. A valuation report prepared by an independent valuation firm is based on for ordinary goodwill impairment test. 31 December 2023 31 December 2022 Ground handling services - CGHH 199.415.548 116.611.951 The recoverable value of the cash generating unit, has been determined by taking the usage calculations as a basis. These calculations are based on cash flow estimates covering the 5-year period, which have been approved by management and better reflect management’s expectations and forecasts for the future development of the business. Continuous growth rate of 2,1% used to determine the final value for the period exceeding the forecast period. Other important assumptions in the fair value calculation model are as follows. Discount rate 11,2% The management bases its budget on previous performance and market growth expectations. The weighted average growth rates used are in line with the estimation stated in industry reports. The discount rate used is the before tax discount rate and includes the Company specific risk factors. 31 December 2023 31 December 2022 Ground handling services - KSU 12.019.640 7.688.892 The recoverable value of the cash generating unit, has been determined by taking the usage calculations as a basis. These calculations are based on cash flow estimates covering the 5-year period, which have been approved by management and better reflect management’s expectations and forecasts for the future development of the business. Continuous growth rate of 4,0% used to determine the final value for the period exceeding the forecast period. Other important assumptions in the fair value calculation model are as follows. Discount rate 17,6% NOTE 14 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES a) Short-Term Provisions Other short-term provisions 31 December 2023 31 December 2022 Provision for litigation and indemnity 35.830.909 10.679.098 35.830.909 10.679.098