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.) 97 Çelebi Ground Handling Inc. 2021 Annual Report Goodwill impairment test The Group tests goodwill at least once a year for the risk of impairment. A valuation report prepared by an independent valuation firm is based on for ordinary goodwill impairment test. 31 December 2021 31 December 2020 Ground handling services - CGHH 92.897.038 57.756.911 The recoverable value of the aforementioned cash generating unit, has been determined by taking the usage calculations as a basis. These calculations are based on cash flow estimates covering the 5-year period, which have been approved by management and better reflect management’s expectations and forecasts for the future development of the business. Growth rate used in the cash flows corresponding to be realized after 7 years ensured to be 2,0%. The fair value of Euro amount is calculated in terms of Hungarian Forint which converted with the exchange rates at the balance sheet date. Therefore, the said fair value model is affected by the fluctuations in the foreign exchange market. Other important assumptions in the fair value calculation model are as follows; Discount rate 11,1% The management bases its budget on previous performance and market growth expectations. The weighted average growth rates used are in line with the estimation stated in industry reports. The discount rate used is the before tax discount rate and includes the Company specific risk factors. 31 December 2021 31 December 2020 Ground handling services - KSU 27.066.100 15.538.750 The recoverable value of the cash generating unit in question has been determined on the basis of usage calculations. In these calculations, cash flow estimates covering a 5-year period are based on, as they better reflect the expectations and estimations of the management on the future development of the business and approved by the management. Other important assumptions in the fair value calculation model are as follows; Discount rate 15,15% NOTE 14 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES a) Short-Term Provisions Other short-term provisions 31 December 2021 31 December 2020 Provision for litigation and indemnity 9.047.150 8.094.479 9.047.150 8.094.479