CELEBI GROUND HANDLING 2023 ANNUAL REPORT

25 Çelebi Ground Handling Inc. 2023 Annual Report Credit Risk Credit risk consists of cash and cash equivalents, deposits held with banks, and customers exposed to credit risk that cover uncollected receivables. With respect to the management of the credit risk concerning its receivables from customers, the Company identifies a risk limit individually for each customer (excluding related parties) using bank and other guarantees, and the customer carries out its business transactions so as not to exceed this risk limit. In the absence of these guarantees or in cases where they are required to be exceeded, transactions are carried out within internal limits set by procedures. Exchange Rate Risk Taking into consideration the significantly volatile course adopted in the past by the Turkish Lira against major foreign currencies and its over-valuation, the Group espoused a conservative monetary position and financial risk management policy. The Group is exposed to exchange rate risk due to its operations conducted in numerous currency units. Efforts are spent to keep the ratio of the amount of positions of these currencies among themselves or against Turkish Lira to total shareholders’ equity within certain limits. To this end, foreign currency position is continually analyzed, and the exchange rate risk is managed using balance sheet transactions, or when necessary, off-balance sheet derivative instruments. Capital Risk The Company’s goals in managing the capital is to be able to ensure the continuity of the Company’s activities to sustain the optimum capital structure for the purpose of providing returns for its shareholders and benefits for its other stakeholders, and for minimizing the cost of capital. The Company’s shareholders may, to the extent allowed by the CMB legislation, alter the amount of dividends paid to shareholders, return the capital to shareholders, issue new shares and sell its assets to decrease indebtedness in order to preserve or reformulate the capital structure. Along with the other companies in the sector, the Company monitors the capital by utilizing the debt/capital ratio, which is net indebtedness divided by total capital. Net debt is total debt less cash and cash-equivalent assets and deferred tax liabilities. Total capital is the shareholders’ equity and net debt as shown in the balance sheet. VI- OTHER MATTERS 16. CHANGES TO THE ARTICLES OF ASSOCIATION AND COMPANY POLICIES There was no change in our Company’s articles of association and policies between 1 January 2023-31 December 2023. 17. ENVIRONMENT AND SUSTAINABILITY Our Company has been upholding a sustainable environmental management system since its establishment. Our focus on adding value and commitment to continuous improvement has allowed us to systematically reduce and, where possible, eliminate any potential harm to the environment resulting from our activities. 1. Our Sustainability Strategy, Vision and Mission As a Company, we remain committed to our responsibility for the continuity of our planet and life. Our sustainability efforts extend beyond the boundaries of our organization and encompass our customers, NGOs, investors, and all other stakeholders involved in the process, and our operations are conducted within the framework of the United Nations Sustainable Development Goals. Our Company is committed to ensuring that the values and activities of our planet, our investors, our Company, and our customers continue and improve in a sustainable manner in the future, in accordance with the commitments we outlined in our Environmental Policy, which we publicly disclosed as part of our mission to become “an environmentally conscious company in the aviation industry through its practices.”