ÇHS AR21-ENG-030622

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 60 Çelebi Ground Handling Inc. 2021 Annual Report NOTE 1 - ORGANIZATION AND OPERATIONS OF THE GROUP Çelebi Hava Servisi A.Ş. (referred as the “Company” or “Çelebi Hava”) established in 1958 was the first private ground handling service company in the Turkish aviation sector. The Company provides ground handling services (representation, traffic, ramp, cargo, flight operations and aircraft maintenance etc.), cargo and warehouse services and fuel supplies to domestic and foreign airlines and private cargo companies. The Company operates in İstanbul, İzmir, Ankara, Adana, Antalya, Dalaman, Bodrum, Çorlu, Bursa Yenişehir, Diyarbakır, Erzurum, Kayseri, Samsun, Trabzon, Van, Malatya, Kars, Mardin, Denizli, Hatay, Kahramanmaraş, Isparta, Erzincan, Çanakkale, Balıkesir Edremit, Iğdır, Kocaeli, Bingöl, Hakkari airports, which are under the control of the State Airports Administration (“DHMI”) and Istanbul Sabiha Gokcen airport which is under the control of the Airport Administration and Aviation Industries A.Ş. (“HEAS”). The Company is controlled by Çelebi Havacılık Holding Anonim Şirketi, the parent company which is jointly controlled by Çelebioğlu Family and Zeus Aviation Services Investments B.V. The Company is registered in Capital Markets Board (“CMB”) and has been listed in Borsa Istanbul (“BIST”) since 18 November 1996. As of 31 December 2021, the percentage of shares which are publicly traded is 10,09% (31 December 2020: 10,09%). The address of the headquarters of the Company is as follows: Tayakadın Mahallesi Nuri Demirağ Caddesi No: 39 Arnavutköy / İstanbul The Group consists of the Company and its subsidiaries, joint ventures and associate. The average number of employees employed by the Group for the year ended 31 December 2021 is 9.902 (31 December 2020: 10.722). Information on Subsidiaries, Joint Ventures, and Associate: The nature of the business, their respective geographical segments, and the registered country of the subsidiaries, joint venture and associate of the Group are as follows. Subsidiaries of the Group are as below: Subsidiary Registered country Geographical region Nature of business CGHH Hungary Hungary Ground handling services Celebi Delhi Cargo India India Warehouse and cargo services CASI India India Ground handling services Çelebi Kargo Turkey Turkey Warehouse and cargo services Celebi Cargo Germany Germany Warehouse and cargo services Celebi Tanzania Tanzania Tanzania Ground handling services Celebi GH India Private Limited India India Ground handling services KSU India India Ground handling services In 2006, the Company acquired the shares of Budapest Airport Handling, which provides airport ground handling services at Budapest Airport, and its trade name was changed to Celebi Ground Handling Hungary (“CGHH”). The Company currently owns 100% of the capital of CGHH and as of 31 December 2021, the paid-in capital of CGHH is 200.000.000 Hungarian Forints. The Company participated as a co-founder in the Company with capital of 100.000 Indian Rupee under the title Celebi Delhi Cargo Terminal Management India Private Limited (“Celebi Delhi Cargo”) to carry out activities relating to the development, modernization and 25-year operation of the existing cargo terminal in the airport (“Brownfield”) in New Delhi in India on 6 May 2009 with a shareholding rate of 74%. The paid capital of the Celebi Delhi Cargo is Indian Rupee 1.120.000.000. As a result of the winning the tender for providing ground handling services at Delhi International Airport for a 10 years period, the Company has made legal and premium capital payment amounting to Indian Rupee 1.351.916.730 on its subsidiary of Çelebi Ground Handling Delhi Private Limited (“Celebi GH Delhi”), which was established on 18 November 2009 with a shareholding rate of 99,9%. The Company currently operates ground handling services in New Delhi, Ahmedabad, Cochin, Bangalore and Hyderabad Airports in India as part of the ongoing concession agreements. On 15 March 2018, the Company’s title was changed to Celebi Airport Services India Private Limited (“CASI”). CASI will continue to deliver ground handling services at Delhi International Airport for 10 years subsequent to the termination of the existing concession agreement with the authority given on 9 December 2019.