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.) 64 Çelebi Ground Handling Inc. 2021 Annual Report The differences between the financial statements announced after the functional currency was changed to EUR as of 1 January 2021 and the financial statements as at 31 December 2021 that would have been announced according to the Turkish Lira functional currency if the functional currency had not been changed are as follows: (Turkish Lira announced to the public with the Euro functional currency application) (Turkish Lira to be announced to the public if the functional currency change had not been made) Difference Current assets 1.929.753.409 1.915.913.779 13.839.630 Non-current assets 3.535.073.478 3.233.384.506 301.688.972 Total assets 5.464.826.887 5.149.298.285 315.528.602 Short-term liabilities 1.689.558.051 1.689.558.051 - Long-term liabilities 2.105.423.750 2.105.423.750 - Equity 1.669.845.086 1.354.316.484 315.528.602 Equity of the parent 1.353.924.062 1.038.395.460 315.528.602 Non-controlling interests 315.921.024 315.921.024 - Total equity and liabilities 5.464.826.887 5.149.298.285 315.528.602 Revenue 2.560.188.835 2.560.188.835 - Cost of sales (1.728.319.360) (1.721.549.412) (6.769.948) Gross profit 831.869.475 838.639.423 (6.769.948) Finance income 188.534.725 278.828.435 (90.293.710) Finance expenses (171.358.032) (783.758.621) 612.400.589 Profit before tax 630.035.899 147.943.150 482.092.749 Profit for the period 564.923.397 162.955.440 401.967.957 Going Concern The Group has prepared its consolidated financial statements in accordance with the going concern assumption. 2.1.2. New and Amended Turkish Financial Reporting Standards (TFRS) a) Amendments that are mandatorily effective from 2021 Amendments to TFRS 9, TAS 39, TFRS 7, TFRS 4 and TFRS 16 Interest Rate Benchmark Reform - Phase 2 The amendments in Interest Rate Benchmark Reform — Phase 2 (Amendments to TFRS 9, TAS 39, TFRS 7, TFRS 4 and TFRS 16) introduce a practical expedient for modifications required by the reform, clarify that hedge accounting is not discontinued solely because of the IBOR reform, and introduce disclosures that allow users to understand the nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity is managing this transition. The amendments to TFRS 9, TAS 39, TFRS 7, TFRS 4 and TFRS 16 are all effective for annual periods beginning on or after 1 January 2021. Early application is permitted. The Group management assessed that the adoption of this amendment does not have any effect on the Group’s consolidated financial statements.