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.) 61 Çelebi Ground Handling Inc. 2021 Annual Report Çelebi Kargo Depolama ve Dağıtım Hizmetleri A.Ş. (“Çelebi Kargo”) was established on 20 November 2008 to carry out transportation, cargo storage and distribution activities. Celebi Cargo GmbH (“Celebi Cargo”), the subsidiary of Çelebi Kargo with a 100% ownership, was established on November 2009 and has share capital amounting to EUR 11.140.000, rented storage and warehouse facilities at International Frankfurt Airport Cargo (Frankfurt Cargo City Süd) and carry out flight cargo storage and handling services. The Company has a 57,65% share in KSU Aviation Private Limited (“KSU”) located in India, which was established on 8 May 2019 to provide “taxiing” services to aircraft at airports in India. For this purpose, a premium capital payment of Indian Rupee 420 million (approximately EUR 5.56 million) was made by the Company. Celebi Nas Airport Services India Private Limited (“Celebi Nas”) was established on 12 December 2008 to provide ground handling services for 10 years at Mumbai Chhatrapati Shivaji International Airport (CSIA) in India. The Company has 57% shareholding where the share capital of Çelebi Nas is Indian Rupee 552.000.000. In addition, a premium capital increase of Indian Rupee 228.000.000 has been paid by the shareholders of Celebi Nas. Celebi Nas has obtained a concession right until May 2036 for the provision of ventilation and generator services installed on the passenger bridges at the airport passenger terminal. Within the scope of the concession agreement signed between Celebi Nas and MIAL, Celebi Nas will continue to provide ground handling services for an additional 10 (ten) years from 1 January 2020 to 31 December 2029, following the expiration of the current concession period at CSIA airport on 31 December 2019. With the additional protocol regarding Celebi Nas, which was registered and entered into force on 8 February 2021, various changes were made in the “Reserve Matters/Privileged Matters” articles. There have been changes in the Company’s control power in favor of the Company, depending on the fact that it has power over the invested company/asset, is open to variable returns from the invested company/asset, or has the right to these returns, and can use its power to have an effect on the returns. In this framework, Celebi Nas started to be consolidated in 2021 by using the full consolidation method from the date the control passed to the Company. In order to participate in ground handling concession tenders to be opened at airports in Tanzania, the Company has a 65% stake in Celebi Tanzania Aviation Services Limited (“Celebi Tanzania”), located in Dar es Salaam, Tanzania, with a total capital of 100 million Tanzania Shillings (approximately 40 thousand USD). The Company has already started its activities as of 1 February 2021, in line with the contract signed with the Tanzania Airport authority. Associate The associate of the Group accounted using the equity method is as follows: Joint venture Registered country Geographical region Nature of business DASPL India India Ground handling services Çelebi GH Delhi, a subisidiary of the Group, has participated in establishment of Delhi Aviation Services Private Limited (“DASPL”) with a shareholding of 16,66%, DASPL is resident in New Delhi, India and operating in rendering services of air conditioners, water providing systems and generators mounted on passenger boarding bridges with international standards established with a share capital is Indian Rupee 250.000.000. On 14 November 2016, Çelebi GH Delhi, has acquired 8,33% of additional shares of DASPL and reached to a shareholding rate of 24,99%. The Group accounts DASPL by using the equity method in its consolidated financial statements. As of 31 December 2021, the consolidated financial statements of the Group contains the Company, Celebi Nas, CGHH, Celebi Delhi Cargo, CASI, Çelebi Kargo, DASPL, Celebi Cargo and KSU and Celebi Tanzania (all together will be referred to as “the Group”). Approval of Consolidated Financial Statements The consolidated financial statements for the period 1 January - 31 December 2021 has been approved for the issuance by the Board of Directors on 11 March 2022, and signed by Osman Yılmaz, the General Manager, and Deniz Bal, the Director of Financial Affairs, on behalf of Board of Directors.