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.) 68 Çelebi Ground Handling Inc. 2021 Annual Report In cases where the Company does not have majority voting rights on the investee company/asset, it has control power over the investee company/asset, provided that it has sufficient voting rights to direct/manage the activities of the relevant investment. The Company considers all relevant events and circumstances in assessing whether the majority of votes in the relevant investment is sufficient to gain control, including the following: - Comparison of the voting rights of the Company with the voting rights of other shareholders; - Potential voting rights held by the Company and other shareholders; - Rights arising from other contractual agreements and - Other events and conditions that may show whether the Company has the power to manage the relevant activities (including the voting at the previous general assembly meetings) in cases where a decision has to be made. Consolidation of a subsidiary begins when the Company has control over the subsidiary and ends when it loses control. Income and expenses of subsidiaries acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date of acquisition to the date of disposal. c) The direct and indirect ownership interests held by the Group in its subsidiaries are provided below, the direct and indirect ownership interest is equal to the proportion of effective interest: Subsidiary Ownership interest (%) 31 December 2021 31 December 2020 CGHH 100,0 100,0 Celebi Delhi Cargo 74,0 74,0 CASI 99,9 99,9 Celebi Spain (1) - 100,0 Çelebi Kargo 99,9 99,9 Celebi Cargo 99,9 99,9 KSU 57,6 57,6 Celebi Tanzania (2) 65,0 65,0 Celebi Nas (3) 57,0 57,0 Celebi GH India Private Limited 61,0 100,0 (1) Celebi Spain was liquidated in 2021. (2) 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), to participate in ground handling concession tenders to be opened at airports in Tanzania. (3) In addition to the partnership agreement signed between the Company and other partners on 17 January 2021 regarding Celebi Nas Airport Services India Private Limited (Celebi Nas), the joint venture of the Company residing in Mumbai, India, with a 57% stake, changes have been made in the “Reserve Matters/ Privileged Matters” articles of the additional protocol, which was registered and entered into force on 8 February 2021, in favor of the Company, in a way that would affect Celebi Nas’s authority and power to control its financial and operating policies in line with the Company’s interests. Within this framework, Celebi Nas started to be consolidated in 2021 using the full consolidation method, from the date on which the control passed to the Company. At the time the change was made, INR 745.920.032 (TL 72.980.816), which is the difference between INR 2.570.717.780, which is the net assets of Celebi Nas, and INR 3.879.349.415, which is the fair value of Celebi Nas’ equity, corresponding to the shares of Celebi Hava, have been recognized as right-of-use assets and bargain purchase gain. The net cash amount acquired as a result of these transactions is TL 30.083.089. d) The Group categorized the sales and purchase of its subsidiaries’ shares transactions as transactions between group shareholders except parent company. Therefore, for the addition share purchase from other than parent company, the Group records the difference between cost of purchase and book value of asset of subsidiary’s purchased portion under shareholders’ equity. For the share sales to other than parent company, the Group records the income or loss as a result of the difference between sales price and book value of asset of subsidiary’s sold portion under shareholders’ equity. e) It is accounted by using the equity method. The capital share of the Group, directly or indirectly, in its subsidiary is shown below, the said capital share is equal to the Group’s effective ratio in the related companies: Associate Ownership interest (%) 31 December 2021 31 December 2020 DASPL 24,99 24,99