CELEBI GROUND HANDLING 2023 ANNUAL REPORT

18 Çelebi Ground Handling Inc. 2023 Annual Report Celebi NAS, another subsidiary that began services at Chhatrapati Shivaji International Airport in Mumbai (Bombay) in July 2009, serviced 27,416 flights during January-December 2022 period. In the January-December 2022 period, 31,893 flights have been served with an increase of 16.3% year-on-year. Celebi Ground Handling Hungary, Çelebi Ground Handling’s first international subsidiary, served a total of 30,786 flights in January-December 2023 period, registering 3.6% increase as compared with 29,725 flights serviced in 2022. Celebi Ground Handling Hungary started cargo handling operations in January 2011 in its new warehouse located outside the airport. While the company had provided service for a total of 65,868 tons during 2022, the same registered as 57,584 tons in January-December 2023 period, decreasing by 14.3%. Celebi Cargo GmbH entered operation in 2011 to offer air cargo storage and handling services in its storage facilities at the International Frankfurt Airport’s “Cargo City Süd”. Having handled 171,565 tons of cargo in 2022, that figure stood at 158,511 tons in January-December 2023 period with a decline of 8.2%. The Group’s consolidated gross profit in January-December 2023 period was up by 69% to TL 3,667,187,574 (2022: TL 2,169,732,655). In January-December 2023 period, the Company posted an operating profit of TL 2,780,613,058 (2022: TL 1,575,002,493). The Group’s profit after tax in the same period was recorded as TL 1,687,068,401 (2022 January-December: TL 1,079,953,824). As of 31 December 2023, the total amount set aside for legal and compensation provisions of our Company was TL 35,830,909 (31 December 2022: TL 10,679,098). There was no legal action or demands for compensation against the Company during the period which would significantly affect the Company’s financial status or activities. 7. DEVELOPMENTS IN INVESTMENTS; INVESTMENT INCENTIVES USED Tangible fixed asset investments realized by the Group during the year ended on 31 December 2023 amounted to TL 554,914,556 (31 December 2022: TL 221,466,768). 54% of these investments consisted of investments in machinery, equipment and appliances, 23.1% of investments in progress, 9.1% in special costs, 4.2% in investments in fixtures and 9.6% in investments in vehicles. Total consolidated investment outlays of the Group in tangible and intangible assets as of 31 December 2023 were worth TL 691,631,564. (2022: TL 364,440,342). Our Company holds the Large Scale Investments incentive certificate obtained from the Ministry of Trade (formerly Ministry of the Economy), the General Directorate of Incentive Implementation and Foreign Investment. The total amount of investment undertaken by our Company under this incentive certificate until 31 December 2023 stood at TL 247,905,531.02. Regarding the machinery and equipment investments planned by our Company for the airports in Turkey, our applications for incentive certificates, totaling approximately TL 350 million TL, have been approved by TR Ministry of Industry and Technology General Directorate of Incentive Implementation and Foreign Capital. Investment Incentive Certificates have been issued in order to enable our Company to benefit from investment incentive practices as per the relevant legislation provisions. Within the scope of these incentive certificates, a total of TL 67,883,347.07 was spent until 31 December 2023. BOARD OF DIRECTORS 2023 Annual Report