ÇELEBİ HAVA SERVİSİ ANNUAL REPORT 2024

ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ VE BAĞLI ORTAKLIKLARI 87 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2024 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Çelebi Ground Handling 2024 Annual Report c) Financial Statements of Foreign Subsidiaries, Joint Ventures, and Associates The financial statements of foreign subsidiaries and associates, prepared in accordance with the Group’s accounting policies, are translated into the Group’s reporting currency, TL, using the closing exchange rate for assets and liabilities and the average exchange rate for income and expenses. Foreign exchange differences arising from the use of closing and average exchange rates for subsidiaries and associates are recognized under equity within the “foreign currency translation differences” account. As of 31 December 2024, the functional currencies of the Group companies are presented below. Company Currency Celebi Delhi Cargo Indian Rupee (INR) Celebi Nas Indian Rupee (INR) CASI Indian Rupee (INR) CGHI Indian Rupee (INR) CGSC Indian Rupee (INR) KSU Indian Rupee (INR) DASPL Indian Rupee (INR) Çelebi Kargo (*) Turkish Lira (TL) Celebi Cargo Euro (EUR) CGHH Hungarian Forint (HUF) Çelebi Tanzania Tanzanian Shilling (TZS) PTN Indonesian Rupiah (IDR) CAI Indonesian Rupiah (IDR) (*) The financial statements of Çelebi Kargo, whose functional currency is the same as the presentation currency (TL), have been consolidated in TL using the direct method, and no translation differences have been recognized from Çelebi Kargo’s financials. Adjustment of Financial Statements in Periods of High Inflation Entities applying TFRS have started implementing inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies, following the announcement made by KGK on 23 November 2023. This application is mandatory for financial statements for annual reporting periods ending on or after 31 December 2023, including consolidated financial statements. Since the functional currencies of the Company and its subsidiaries, except for Çelebi Kargo, are not TL, TAS 29 has not been applied in the consolidated financial statements except for Çelebi Kargo. However, in accordance with the Tax Procedure Law (“VUK”) and the communiqué published on 30 December 2023 (Official Gazette No. 32415), inflation adjustments have been made to non-monetary items in the balance sheet as of 31 December 2024, which are subject to corporate tax calculations. Accordingly, for deferred tax calculations as of 31 December 2024, tax base values have been adjusted for inflation as per VUK. As a result of the inflation accounting applied to the financial investment accounts of Çelebi Kargo, whose functional currency is TL, in its subsidiary with a capital and functional currency in Euro, the inflation effects were offset through eliminations at the consolidated level and accounted for under retained earnings. The resulting effect has been presented in the Inflation Accounting Adjustments line of the statement of changes in equity. purchasing power of the last three years based on the Consumer Price Index (“CPI”) is more than 100%. Although the Company operates in Türkiye, no adjustments have been made within the scope of TMS 29 since its functional currency is Euro.