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.) 114 Çelebi Ground Handling Inc. 2023 Annual Report Movements of other short-term provisions within the accounting period of 1 January - 31 December 2023 are as follows: 31 December 2023 31 December 2022 As of 1 January 10.679.098 9.047.150 Addition during the period 20.490.399 4.954.328 Payments during the period (1.355.477) (3.903.715) Translation differences 1.674.768 581.335 Transfer 4.342.121 - As of end of the period 35.830.909 10.679.098 Short-term provision for employee benefits 31 December 2023 31 December 2022 Provision for employee termination benefits (*) 20.797.399 7.767.888 Provision for unused vacation rights 65.813.803 38.745.670 86.611.202 46.513.558 (*) Consists of employee termination benefits of the outsourced employees of Çelebi GH Delhi, Çelebi Delhi Cargo and Çelebi Cargo, the subsidiaries of the Group. b) Long-term provisions Long-term provisions for employee benefits: 31 December 2023 31 December 2022 Provision for employment termination benefits 310.999.397 143.103.765 310.999.397 143.103.765 Provision for employment termination benefits is recorded based on the explanations below. The Group does not have any other defined benefit plans except for the legally mandatory one explained below. The provision has been calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of employees. Under the Turkish Labour Law, the Group is required to pay termination benefits to each employee who has completed one year of service, who achieves the retirement age (58 for women and 60 for men), who has charged 25 years of services (20 years for women) and whose employment is terminated without due cause, is called up for military service or who dies. Since the legislation was changed on 23 May 2002, there are certain transitional provisions relating to length of service prior to retirement. The amount payable as of 31 December 2023 consists of one month’s salary limited to a maximum of TL 23.489,83 (31 December 2022: TL 15.371,40) for each year of service. The liability is not funded, as there is no funding requirement. In accordance with local regulations in India, the Group is required to make employee termination benefit payments to each employee in its subsidiaries, joint ventures and associate, who has completed five years of service, who is called up for military service, who achieves the retirement age, who early retires, or who dies. Turkish Financial Reporting Standards require actuarial valuation methods to be developed to estimate the enterprise’s obligation under defined benefit plans. The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation.