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.) 119 Çelebi Ground Handling Inc. 2023 Annual Report Foreign currency translation differences Accumulated foreign currency translation differences in other comprehensive income and expenses not to be reclassified to profit or loss: Consist of exchange differences arising from the translation of the consolidated financial statements from Euro, the functional currency of the parent, to TL, the presentation currency. Accumulated foreign currency translation differences in other comprehensive income and expenses to be reclassified to profit or loss: Consist of exchange differences arising from the translation of the financial statements of subsidiaries and associates whose functional currency is different from TL to TL, which is the presentation currency. NOTE 20 - REVENUE AND COST OF SALES 1 January - 31 December 2023 1 January - 31 December 2022 Ground handling services 7.465.634.645 3.871.797.432 Revenue from cargo and warehouse services 3.600.787.140 2.295.468.720 Rent and allocation revenue not related to aviation 198.735.061 125.944.129 Revenue in the context of TFRIC 12 - 7.801.842 Less: Returns and discounts (400.339.439) (229.003.582) Revenue 10.864.817.407 6.072.008.541 Cost of sales (7.197.629.833) (3.902.275.886) Gross profit 3.667.187.574 2.169.732.655 NOTE 21 - EXPENSES BY NATURE 1 January - 31 December 2023 1 January - 31 December 2022 Personnel expenses (3.861.748.057) (1.973.209.773) Concession expenses (1.176.336.012) (697.993.443) Payments to authorities and terminal managements (*) (785.293.054) (365.423.921) Depreciation and amortization expense (626.898.399) (366.282.358) Technical maintenance of equipment, fuel and security expenses (505.735.926) (345.304.554) Cost of sales (***) (66.656.892) (22.020.547) Expenses within the scope of TFRIC 12 (**) (50.001.922) (27.717.570) Insurance expense (55.739.890) (40.110.223) Travel and transportation expense (40.106.472) (21.910.988) Consultancy expense (****) (470.075.519) (253.414.398) Other expenses (573.449.149) (379.526.412) (8.212.041.292) (4.492.914.187) (*) Payments to authorities and terminal managements are composed of royalty, rental facilities and check-in desks within the airport area, working licenses and similar expenses, office rental expenses and other miscellaneous expenses related to utilization of office area. (**) Aforementioned expenses are composed of construction costs calculated in accordance with TFRIC 12 and provisions for other liabilities within the scope of concession agreement. (***) Aforementioned expenses are composed of sales and utilization cost of de-icing and spare part inventories. (****) TL 348.636.584 of the consultancy expenses are comprised of share of holding company expenses (1 January - 31 December 2022: TL 187.573.446).