TURKISH AIRLINES 2013 FINANCIAL STATEMENT (TL)

CONSOLIDATED BALANCE SHEET 31.DEC.2014

ASSETS 31 December 2014

Current Assets
Cash & Cash Equivalents 1,473,508,453
Financial Investments 200,932,718
Trade Receivables
Trade Recv. From related parties 628,622
Trade Recv. From n. related parties 1,056,706,451
Other Receivables
Other Recv. From related parties 7,505,738
Other Recv. From n. related parties 2,771,633,154
Derivative Financial Instruments 353,543,745
Inventories 452,228,491
Prepaid Expenses 138,866,880
Current Income Tax Assets 18,570,204
Other current assets 89,723,728
TOTAL CURRENT ASSETS 6,564,848,184

Non Current Assets

Financial Investments 2,664,861
Other receivables
Other Recv. From N. Related Parties 2,454,780,090
Equity Accounted Investees 525,582,579
Investment property 82,560,000
Property and equipment 21,335,501,851
Intangible assets
Other Intangible Assets 165,458,929
Goodwill 28,799,966
Prepaid Expenses 715,410,602
TOTAL NON-CURRENT ASSETS 25,310,758,878

TOTAL ASSETS 31,875,607,062

CONSOLIDATED BALANCE SHEET 31.DEC.2014 (TL)

31 December 2014
LIABILITIES

Current Liabilities
Sh.Term Portion of L.Term Brrowings 1,421,172,095
Other financial liabilities 44,261,101
Trade payables
Trade Payables to Related Parties 343,039,672
Trade Payables to N.Related Parties 1,195,561,375
Payables Related to Employee Benefits 296,516,690
Other Payables
Other Payabl. to N. Related Parties 165,560,060
Derivative Financial Instruments 990,806,416
Deferred Income 22,095,569
Passenger Flight Liabilities 3242625728
Current Tax Provisions 1,860,231
Short-term Provisions
Provision for Employee Benefits 133,462,891
Other Provisions 36,593,232
Other Current Liabilities 611,789,688
TOTAL CURRENT LIABILITIES 8,505,344,748

Non Current Liabilities

Long-Term Borrowings 12,333,917,978
Trade payables
Trade Payables to N.Related Parties 3,472,514
Other payables
Other payables to N.Related Parties 33,177,620
Deferred Income 32,930,871
Provsions for Employee Benefits 294,422,303
Deferred tax liability 1,517,937,898
TOTAL NON-CURRENT LIABILITIES 14,215,859,184

Equity Attributable to Shareholders of

Parent
Share capital 1,380,000,000
Inflation Adjustment on Share Capital 1,123,808,032
Items That Will Never Be Reclassified to Profit
or Loss
Actuarial Losses fr. Defined Pension Plans -20,415,807
Items That Will Never Be Reclassified to Profit
or Loss
Foreign curr. translation differences 2,367,369,791
Losses from Hedging -428,551,847
Restricted Profit Reserves 59,372,762
Retained Earnings 2,853,560,663
Net profit for the year 1,819,259,536
TOTAL EQUITY 9,154,403,130

TOTAL LIABILITIES AND EQUITY 31,875,403,130

 INCOME STATEMENT 31.DEC.2014 (TL)
1 January
PROFIT OR LOSS 31 December 2014
Sales Revenue 24,157,801,405
Cost of sales (-) -19,812,624,371
GROSS PROFIT 4,345,177,034
Administrative expenses (-) -598,748,595
Marketing and sales expenses -2,462,255,861
Other operating income 178,577,444
Other operating expenses (-) -104,192,122
OPERATING PROFIT 1,358,557,900
Income from Investment Activities 210,887,363

Share of investments profit accounted by using

equity method
160,773,731
OPERATING PROFIT BEFORE FINANCIAL
INCOME/EXPENSE 1,678,018,672
Financial income 980,209,225
Financial expenses (-) -397,081,094
PROFIT BEFORE TAX FROM CONTINUING
2,261,146,803
OPERATIONS
Current Tax Expense (-) -9,875,007
Deferred Tax Expense (-) -432,012,260
PROFIT FROM CONTINUING OPERATIONS 1,819,259,536

OTHER COMPREHENSIVE INCOME

To Be Reclassified To Profit or Loss 380,362,122
Currency Translation Adjustment 707,977,183
Change in Cash Flow Hedge Reserves -417,647,105
Actuarial Gains/(Losses) from Cash Flow Hedge
Reserves of
8,465,779
Investment Accounted by Using the Equity
Method
Tax expense/income on items in other
81,836,265
comprehensive income.
Not To Be Reclassifiedd To Profit or Loss -7,978,884

Actuarial Changes from Defined Pension Plans -10,492,174

Actuarial Gains/(Losses) from Defined Pension

Plans of
518,569
Investments Accounted by Using the Equity
Method
Tax Expense/(Income) of Other Comprehensive
1,994,721
Income
OTHER COMPREHENSIVE INCOME 372,653,238

TOTAL COMPREHENSIVE INCOME 2,191,912,774

Earnings per share (Kr) 1,32

STATEMENT OF CASH FLOWS ENDED 31.DEC.2014

1 January 31
December 2014
Net Profit 1,819,259,536
Adjustments to reconcile cash flow
generated from operating activities:
Adj.s for Deprec. and Amortization 1,625,997,651
Adj.s for Prov.for Employee Benefits 71,764,855
Adjustments for Provisions. Net 75,018,425
Adjustments for Interest Income -76,188,692
Gain on Sales of Fixed Assets 1,581,607
Share of Investments' (Profit) / Loss Acc.td by
-160,773,731
Using The Equity Method
Adjustments for Interest Expense 360,960,866
Change in manufacturers credit -6,015,242
Unrealized Foreign Exchange Translation
-892,320,013
Differences
Change in Provision for Doubtful Rec. 8,857,705
Incr./Decr. In value of investmen property 6,240,000
Tax Expense 441,887,267
Change in fair value of derivativ instrum.s -53,168,614
Operating Profit before working capital
3,210,621,620
changes
Adjustments for Change in Trade Rec. 179,204,340
Adj. for Change in Sh. & L.Term Recv. -691,558,532
Adjustments for Change in Inventories -75,711,210
Adjustments for Change in Other Receivables
32,036,733
Related to Operations
Adjustments for Change in Other Non- Current
-291,625,158
Assets and Prepaid Expenses
Adj.s for Change in Trade Payables -36,282,626
Adjustments for Change in Sh.Term Provisions 2,813,091
for Employee Benefits
Adj.s for Change in Sh. & L.Term P. Related to -85,848,594
Opr.s & Deferred Inc
Adj.s for Change in Passenger Flight L. 432,305,456
Cash Flow from Operating Activities 2,675,955,120
Payment of Retirement Pay Liability -32,067,388
Net cash generated from Opr. Activit. 2,643,887,732
CASH FLOW FROM INVESTING ACTV.
Proceeds From Sale of Property and Equipment
414,185,090
& intangible fixed assets
Interest received 88,224,455
Purchase of Property and Equipment and
-1,074,213,563
Intangible Assets
Prepayment for Aircraft Purchase -285,045,336
Change in Financial Investments -157,887,972
Cash O.flow Arising F. Capital Incr. in Inv. -300,000
Dividends Received 32,470,899
Cash O.flow Arising fr. Acquisition of Subs. -
Net Cash Used In Investing Activities -982,566,427
CASH FLOW FROM FINANC. ACTIVIT.
Repayment of Finance Lease Liabilities -1,196,700,032
Change in Other Finc. L.& Derivative Instr. 7,098,680
Interest paid -337,195,335
Dividends Paid -
Net Cash used in financing activities -1,526,796,687
NET DECREASE IN CASH & CASH
134,524,618
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE
1,338,983,835
BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE
1,473,508,453
END OF THE PERIOD
TATEMENT (TL)
1.DEC.2014

31 December 2013

1,338,983,835 0.72
42,774,034

382,750
1,147,707,413

4,087,847
1,376,697,906
64,279,662
342,324,371
89,366,115
16,507,184
112,423,952
4535535069 -1,940,496,564.00

2,452,721

2,680,608,826
389,674,199
76,320,000
17,165,656,116

113,081,412
26,507,294
412,242,181
21,866,542,749

25,402,077,818

DEC.2014 (TL)

31 December 2013

1,188,220,823
33,808,413 0.71
 374,606,410
1,076,575,170
307,983,476

114,181,687
233,949,090
46,629,988
2,562,506,267
-

64,731,115
29,819,212
619,744,180
6,652,755,831

10,364,269,509

3,549,001

30,917,704
31,157,986
249,604,088
1,107,333,343
11,786,831,631

1,380,000,000
1,123,808,032

-12,436,923

1,659,392,608
-101,206,786
59,372,762
2,170,853,236
682,707,427
6,962,490,356

25,402,077,818
14 (TL)
1 January 31
December 2013
18,776,784,325
-15,304,655,417
3,472,128,908 0.18
-434,976,154
-1,947,304,294
218,962,448
-82,685,160
1,226,125,748
145,511,240

108,973,512

1,478,504,922
50,145,542
-563,406,209

965,244,255

-
-282,536,828
682,707,427

1,033,459,675
1,089,281,590
-65,561,681

-4,215,713

13,955,479

-14,560,628

14,560,628

-613,681
 -3,640,157

1,048,020,303

1,730,727,730 0.09
0,49

31.DEC.2014
1 January 31
December 2013
682,707,427

1,240,527,159
41,220,674
18,890,248
-79,271,750
-1,658,418

-108,973,512

261,649,506
-648,585

210,292,593

37,442,673
-18,835,000
282,536,828
31,058,964

2,596,938,807
1,391,362,084
-193,366,224
-2,872,430
-28,524,263

-640,438

-113,633,417

272,248,976

79,175,438

28,648,858

503,722,973
3,141,698,280
 -28,139,267
3,113,559,013

38,199,601

36,432,249

-1,092,367,554

-1,128,522,317
513,555,407
-1,721,250
21,500,000
-45,929,808
-1,658,853,672

-1,022,387,330
-3,018,238
-272,577,511
-173,280,963
-1,471,264,042

-16,558,701

1,355,542,536

1,338,983,835
 TURKISH AIRLINES 2013 FINANCIAL STATEMENT (TL)
CONSOLIDATED BALANCE SHEET 31.DEC.2013

ASSETS 31 December 2013 31 December 2012

Current Assets
Cash & Equivalents 1,338,983,835 1,355,542,536
Financial Investments 42,774,034 476,958,794
Trade Receivables
Trade Recv. From related parties 382,750 18,975,259
Trade Recv. From n. related parties 1,147,707,413 754,635,214
Other Receivables
Other Recv. From related parties 4,087,847 8,531
Other Recv. From n. related parties 1,376,697,906 755,052,298

Inventories 342,324,371 259,199,763

Prepaid Expenses 89,366,115 84,553,331
Current Income Tax Assets 16.507.184 19.666.261
Other current assets 112.423.952 62.045.773
TOTAL CURRENT ASSETS 4,535,535,069 3.861.499.409

Non Current Assets

Financial Investments 2.452.721 2.049.244
Other receivables
Other Recv. From N. Related Parties 2.680.608.826 1.584.919.109
Equity Accounted Investees 389.674.199 269.069.545
Investment property 76.320.000 57,985,000
Property and equipment 17.162.416.670 12,693,339,589
Intangible assets
Other Intangible Assets 81.851.159 51,183,767
Goodwill 58.240.802 -
Prepaid Expenses 412.242.181 237.886.052
TOTAL NON-CURRENT ASSETS 20.863.806.558 14.896.432.306

TOTAL ASSETS 25,399,341,627 18,757,931,715

CONSOLIDATED BALANCE SHEET 31.DEC.2013 (TL)

(Restated)(*) 31
31 December 2013
LIABILITIES December 2012

Current Liabilities
Sh.Term Portion of L.Term Brrowings 1.188.220.823 866.011.394
Other financial liabilities 33.808.413 31.064.076
Trade payables
Trade Payables to Related Parties 374.606.410 215.000.995
Trade Payables to N.Related Parties 1.076.575.170 693.789.816
Other Payables
Other Payabl. to N. Related Parties 114.181.687 76.806.199
Derivative Financial Instruments 233.949.090 161.636.622
Deferred Income 46.629.988 41.819.652
Passenger Flight Liabilities 2.562.506.267 1,668,475,819
Short-term Provisions
Provision for empl. Bnfts 64.731.115 41.066.116
Other Provisions 29.819.212 35.516.181
Other Current Liabilities 619.744.180 496.430.242
TOTAL CURRENT LIABILITIES 6,652,755,831 4.510.696.790

Non Current Liabilities

Long-Term Borrowings 10.364.269.509 7,800,982,204
Trade payables
Trade Payables to N.Related Parties 3.549.001 -
Other payables
Other payables to N.Related Parties 30.917.704 15.659.634
Provsions for Employee Benefits 249.604.088 234,019,405
Deferren tax liability 1.104.597.152 744,083,660
TOTAL NON-CURRENT LIABILITIES 11,784,095,440 8.842.191.336

Equity Attributable to Shareholders

6.962.490.356 5,405,043,589
of Parent
Share capital 1,380,000,000 1,200,000,000
Inflation Adjustment on Share Capital 1,123,808,032 1,123,808,032
Items That Will Never Be Reclassified to
Profit or Loss
Actuar. Losses fr. Defined Pens Plans -6,986,903 -26,997,551
Items That Will Never Be Reclassified to
Profit or Loss
Foreign curr. translation differences 1.653.942.588 570.111.018
Losses from Hedging -101,206,786 -45,384,871
Restricted Profit Reserves 59.372.762 39.326.341
Retained Earnings 2.170.853.236 1.388.463.563
Net profit for the year 682.707.427 1.155.717.057
TOTAL EQUITY 6.962.490.356 5.405.043.589

TOTAL LIABILITIES AND EQUITY 25.399.341.627 18.757.931.715

INCOME STATEMENT 31.DEC.2013 (TL)

(Restated)(*)
1 January
1 January 31
31 December 2013
December 2012
 (Restated)(*)
1 January
1 January 31
31 December 2013
PROFIT OR LOSS December 2012
Sales Revenue 18,776,784,325 14.762.062.246
Cost of sales (-) -15,304,655,417 -11,716,974,068
GROSS PROFIT 3,472,128,908 3,045,088,178
Administrative expenses (-) -434,976,154 -371,529,589
Marketing and sales expenses -1,947,304,294 -1,588,790,893
-2,382,280,448 -1,960,320,482
Other operating income 230,555,047 170,551,907
Other operating expenses (-) -80,372,043 -115,962,720
OPERATING PROFIT 1,240,031,464 122,647,371
Income from Investment Activities 131,813,063 488.674.80

Share of investments profit accounted by

using equity method
108,973,512 5,961,253
OPERATING PROFIT BEFORE
FINANCIAL INCOME/EXPENSE 1,480,818,039 1,633,992,945
Financial income 50,145,542 88,516,891
Financial expenses (-) -565,719,326 -337,397,405
PROFIT BEFORE TAX FROM
CONTINUING OPERATIONS 965,244,255 1,385,112,431
Tax Expense of Cont. Operations -282,536,828 -229,395,374
Current Tax Expense (-) - -32,616,486
Deferred Tax Expense (-) -282,536,828 -196,778,888
PROFIT FROM CONTINUING OPERAT. 682,707,427 1,155,717,057

OTHER COMPREHENSIVE INCOME

To Be Reclassified To Profit or Loss 1,028,009,655 -227,251,285
Currency Translation Adjustment 1,083,831,570 -228,479,860
Change in Cash Flow Hedge Reserves -65,561,681 5,980,432
Actuarial Gains/(Losses) from Cash Flow
Hedge Reserves of
-4,215,713 -4,444,713
Investment Accounted by Using the
Equity Method
Tax expense/income on items in other
13,955,479 -307,144
comprehensive income.
Not To Be Reclassfd To Profit or Loss 20,010,648 -22,349,824
Actuarial Changes from Defined Pension
25,626,991 -26,922,256
Plans
Actuarial Gains/(Losses) from Defined
Pension Plans of
-613,681 -1,015,024
Investments Accounted by Using the
Equity Method
Tax Expense/(Income) of Other
-5,002,662 5,587,456
Comprehensive Income
OTHER COMPREHENSIVE INCOME 1,048,020,303 -249,601,109

TOTAL COMPREHENSIVE INCOME 1,730,727,730 906,115,948

Earnings per share (Kr) 0.49 0.84

STATEMENT OF CASH FLOWS ENDED 31.DEC.2013

(Restated)(*)
31 December 2013
31 December 2012
Profit Before Tax 965,244,255 1,385,112,431
Adjustments to reconcile cash flow
generated from operating activities:
Adj.s for Deprec. and Amortization 1,240,527,159 1,029,762,920
Adj.s for Prov.for Employee Benefits 34,408,148 60,507,343
Adjustments for Provisions. Net 18,890,248 37,546,895
Adjustments for Interest Income -79,271,750 -128,572,218
Gain on Sales of Fixed Assets -1,658,418 -3,321,066
Share of Investments' (Profit) / Loss
-108,973,512 -5,961,253
Acc.td by Using The Equity Method
Adjustments for Interest Expense 263,962,623 221,745,105
Change in manufacturers credit -4,706,888 -1,572,071
Unrealized Foreign Exchange Translation
210,351,868
Differences 26,671,522
Change in Provision for Doubtful Rec. 37,442,673 -2,649,923
Incr./Decr. In value of inv. property -7,242,401 -6,333,810
Change fair value of deriv. instrum. 44,471,986 -25,503,133
Operating Profit before working
2,613,445,991 2,236,290,419
capital changes
Adjustments for Change in Trade Rec. -193,366,224 -45,639,594
Adj. for Change in Sh. & L.Term Recv. -2,872,430 -397,691,391
Adjustments for Change in Inventories -28,524,263 -21,699,604
Adjustments for Change in Other
-640,438 -8,267,025
Receivables Related to Operations
Adjustments for Change in Other Non-
-113,633,417 30,294,489
Current Assets and Prepaid Expenses
Adj.s for Change in Trade Payables 272,248,976 94,891,149
Adj.s for Change in Sh. & L.Term P. Related 28,648,858 63,771,342
to Opr.s & Deferred Inc
Adjustments for Change in Sh.Term 79,175,438 -97,151,900
Provisions for Employee Benefits
Adj.s for Change in Passenger Flight L. 503,722,973 463,637,936
Cash Flow from Operating Activities 3,158,205,464 2,318,435,821
Payment of Retirement Pay Liability -28,139,267 -25,874,633
Interest paid -272,577,511 -226,630,375
Taxes paid -16,507,184 -25,029,904
Net cash generated from opr. Activit. 2,840,981,502 2,040,900,909
CASH FLOW FROM INVESTING ACTV.
Proceeds From Sale of Property and
38,199,601 38,384,180
Equipment & intangible fixed assets
Interest received 36,432,249 172,162,930

Purchase of Property and Equipment and

-1,092,367,554 -759,657,869
Intangible Assets (**)

Prepayment for Aircraft Purchase -1,128,522,317 -588,878,369

Change in Financial Investments 513,555,407 -353,211,312
Cash O.flow Arising F. Capital Incr. in Inv. -1,721,250 -9,603,468
Dividends Received 21,500,000 -
Cash O.flow Arising fr. Acquisition of Subs. -45,929,808 -
Net Cash Used In Investing Activities -1,658,853,672 -1,500,803,908
CASH FLOW FROM FINANC. ACTIVIT.

Repayment of Finance Lease Liabilities

-1,022,387,330 -762,001,461
Decr. in Other Finc. L. and Derivative Instr. -3,018,238 27,922,286
Dividends Paid -173,280,963 -
Net Cash used in financing activities -1,198,686,531 -734,079,175
NET DECREASE IN CASH & CASH
-16,558,701 -193,982,174
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT
1,355,542,536 1,549,524,710
THE BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT
1,338,983,835 1,355,542,536
THE END OF THE PERIOD

(**) TL 1.854.263.247 portion of property and equipment and intangible assets

purchases in total of TL 2.946.630.801 for the year ended 31 December 2013 was
financed through finance leases. (31 December 2012: TL 1.883.990.615 portion of
property and equipment and intangible assets purchases in total of TL
2.643.648.484 was financed through finance leases.)
0.63

0.73
0.18
0.09
 TURKISH AIRLINES 2012 FINANCIAL STATEMENT (TL)
CONSOLIDATED BALANCE SHEET 31.DEC.2012

Current Period 31
ASSETS December 2012
Current Assets 3,899,761,429
Cash & Equivalents 1,355,542,536
Short term fin. Inv. 551,820,443
Trade Receivables 777,402,622
Other Receivables 754,126,100
Inventories 259,199,763
Other current assets 201,669,965
N.curr. Assets for sale -

Non Current Assets 14,881,141,034

Other receivables 1,553,830,754
Financial assets 2,049,244
Investments acc.d By using equity
method 269,069,545
Investment property 57,985,000
Property and equipment 12,693,339,589
Intangible assets 51,183,767
Other non-current assets 253,683,135

TOTAL ASSETS 18,780,902,463

CONSOLIDATED BALANCE SHEET 31.DEC.2012 (TL)

Current Period 31
LIABILITIES December 2012

Current Liabilities 4,533,667,538

Financial debt 866,011,394
Other financial liabilities 192,700,698
Trade payables 912,324,274
Other payables 153,494,125
Current tax provision -
Provisions 35,516,181
Provision for empl. Bnfts 188,123,923
Passenger flight liabilities 1,668,475,819
Other current liabilities 517,021,124
Non Current Liabilities 8,842,191,336
Financial debt 7,800,982,204
Other payables 15,659,634
Provsions f. emply benefits 234,019,405
Deferren tax liability 744,083,660
Other non-current liabilities 47,446,433

SHAREHOLDERS` EQUITY
Equity Attributable to Shareholders
5,405,043,589
of Parent
Share capital 1,200,000,000
Inflation Differ. on Shareh.s` Equity 1,123,808,032
Restricted profit reserves 39,326,341
Currency translation adjstm.s 570,111,018
Cash flow hedge reserves -45,384,871
Retained Earnings 1,383,815,836
Net profit for the year 1,133,367,233

TOTAL LIABILITIES AND

SHAREHOLDERS EQUIRY 18,780,902,463

INCOME STATEMENT 31.DEC.2012 (TL)

Current Period
1January
31 December
2012
Sales revenue 14,909,003,818
Cost of sales (-) -11,893,596,710
GROSS PROFIT 3,015,407,108
Marketing and sales expenses -1,593,367,677
Administrative expenses (-) -374,221,814
-1,967,589,491
Other operating income 600,682,892
Other operating expenses (-) -43,666,621
OPERATING PROFIT 1,604,833,888

Share of investments profit accounted by

using equity method
5,149,234
Financial income 162,136,645
Financial expenses (-) -414,741,611
PROFIT BEFORE TAX 1,357,378,156
Tax expense -224,010,923
Current tax expense (-) -32,616,486
PROFIT FOR THE YEAR 1,133,367,233

OTHER COMPREHENSIVE INCOME /

(EXPENSE)
Change in currency translation adj. -228,479,860
Change in cash flow hedge reserves 1,535,719
Tax expense/income on items in other
-307,144
comprehensive income.
OTHER COMPREHENSIVE
(LOSS)/INCOME AFTER TAX -227,251,285

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR 906,115,948
Earnings per share (Kr) 0,94

STATEMENT OF CASH FLOWS ENDEN 31.DEC.2012

Current Period
1January
31 December
CASH FLOW FROM OPR. ACTIVITIES 2012
Net profit taxes 1,357,378,156
Adjst.s to obtain net cash flow generated
from opr. Activities
Depreciation and amortization 1,029,762,920
Provision for retirement pay liabili. 51,071,434
Provisions net 8,336,506
Interest income -129,243,516
Gain on sales of fixed assets -3,717,189
Incr. in provision for impairment -351,142,323
Gain on equity invst.s accounted by
using the equity method -5,149,234
Interest expense on finance leases 208,066,460
Change in manufacturers credit -1,572,071
Unrealized foreign exchange loss and
translation adjustment 58,946,716
Incr. in provis. for doubtful recv.s 13,362,362
Incr./Decr. In value of inv. property -6,333,810
Change fair value of deriv. instrum. -25,503,133
Operating Profit before working
capital changes 2,204,263,278
Increase in trade receivables -65,444,030
Incr. in short & long term receivables -396,249,212
Increase in inventories -21,699,604
Incr./Decr. in other current assets -21,935,054
Incr/Decr. in other noncurrent assets -11,578,616
Increase in trade payables 91,357,686
Incr. in sh.term & l.term payables 15,625,319
Incr. in short & long term liabilities 104,570,655
Decr./Incr. in sh.term employe benf. -47,707,008
Increase in passeng. flight liabilities 463,637,936
Cash Flow from Operating Activities 2,314,841,350
Payment of retirement pay liability -21,791,662
Interest paid -212,951,730
Taxes paid -40,264,472
Net cash generated from Inv. Activit. 2,039,833,486
CASH FLOW FROM INVESTING ACTV.
Proceeds from sale of property and
equipment & intangible fixed assets 38,780,303
Interest received 172,834,230
Purchase of property & equipment and
intangible assets -759,657,869
Prepayment for aircraft purchase -588,878,369
Incr. in sh.term financial investments -353,211,312
Cash o.flow from purchase of joint v. -9,603,468
Net cash used in investing activities -1,499,736,485
CASH FLOW FROM FINANC. ACTIVIT.
Repayment of principal in finance lease
liabilities -762,001,461
Increase in financial borrowings -
Increase in other financial libilities 27,922,286
Net Cash used in financing activities -734,079,175
NET INCREASE/(DECREASE) IN CASH
& CASH EQUIVALENTS -193,982,174
CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE YEAR 1,549,524,710
CASH AND CASH EQUIVALENTS AT
THE END OF THE YEAR 1,355,542,536
STATEMENT (TL)
31.DEC.2012

Prior Period 31
December 2011
4,042,735,398 0.80
1,549,524,710
213,899,678
764,775,891
792,699,876
251,785,807
190,577,236
279,472,200

12,362,211,730
614,598,106
1,767,872

294,960,592
54,720,000
11,092,594,872
46,962,939
256,607,349

16,404,947,128

1.DEC.2012 (TL)

Prior Period 31
December 2011

3,951,410,407 0.71
790,159,337
158,358,545
870,440,470
151,332,850
5,368,643
26,224,798
249,623,497
1,279,313,640
420,588,627
 7,954,609,080
7,122,723,496
11,439,394
191,632,448
574,679,843
54,133,899

4,498,927,641

1,200,000,000
1,123,808,032
39,326,341
798,590,878
-46,613,446
1,365,299,204
18,516,632

16,404,947,128

2012 (TL)
Prior Period
1January
31 December
2011
11,812,549,098
-9,803,269,512
2,009,280,396 0.20
-1,284,859,256
-365,283,678
-1,650,142,934 -1,967,589,491.00 -1,650,142,934
160,190,646
-396,680,737
122,647,371

10,074,016
264,238,277 1,609,983,122.00
-251,070,672
145,888,992
-127,372,360
-16,770,183
 18,516,632

795,001,243
-77,496,523

15,499,305

733,004,025

751,520,657 0.06
0,02

N 31.DEC.2012
Prior Period
1January
31 December
2011
145,888,992

811,848,621
43,712,634
5,654,965
-77,277,018
-5,400,013
329,671,432

-10,074,016
204,097,145
-3,746,701

17,436,691
25,733,253
5,169,703
8,879,487

1,501,595,175
-74,080,593
-149,193,114
-36,746,558
27,370,907
 11,918,075
90,682,688
15,065,985
39,474,917
111,816,923
224,050,649
1,761,955,054
-27,610,424
-168,515,067
-13,587,608
1,552,241,955

20,246,527
94,039,511

-1,088,704,104
929,467,323
-117,786,293
-11,681,249
-174,418,285

-628,472,899
-15,750,096
1,987,483
-642,235,512

735,588,158

813,936,552

1,549,524,710
 HORIZONTAL ANALYSIS OF CASH FLOW ENDED DECEMBER 3
Incr.
Decr.
Income 2014 2013 (%)
Net Profit Before tax 1,819,259,536 682,707,427 166.48%
Adjustments to reconcile C. F. 1,391,362,084 1,914,231,380 -27.31%
Operating Profit before
3,210,621,620 2,596,938,807 23.63%
working capital changes
Cash Flows from Opr. Activiti. 2,675,955,120 3,141,698,280 -14.82%
Payment of Retirement Pay L. -32,067,388 -28,139,267 -13.96%
Net cash from Opr. Activities 2,643,887,732 3,113,559,013 -15.08%
Cash Flows from Inv. Activities -982,566,427 ### 40.77%
Cash Flows from Fin. Activities ### ### -3.77%
NET DECREASE IN CASH &
134,524,618 -16,558,701 912.41%
CASH EQUIVALENTS
CASH & CASH EQUIVALENTS
1,338,983,835 1,355,542,536 -1.22%
AT THE BEG. OF THE PERIOD
CASH & CASH EQUIVALENTS
1,473,508,453 1,338,983,835 10.05%
AT THE END OF THE PERIOD
NDED DECEMBER 31 (in TL)
Incr. Incr.
Decr. Decr.
2013 2012 (%) 2012 2011 (%)
965,244,255 1,385,112,431 -30.31% 1,357,378,156 145,888,992 830.42%
1,648,201,736 851,177,988 93.64% 846,885,122 1,355,706,183 -37.53%

2,613,445,991 2,236,290,419 16.87% 2,204,263,278 ### 46.79%

3,158,205,464 2,318,435,821 36.22% 2,314,841,350 ### 31.38%

-28,139,267 -25,874,633 -8.75% -21,791,662 -27,610,424 21.07%
2,840,981,502 2,040,900,909 39.20% 2,039,833,486 ### 31.41%
### ### -10.53% ### -174,418,285 -759.85%
### -734,079,175 -63.29% -734,079,175 -642,235,512 -14.30%

-16,558,701 -193,982,174 91.46% -193,982,174 735,588,158 -126.37%

1,355,542,536 1,549,524,710 -12.52% 1,549,524,710 813,936,552 90.37%

1,338,983,835 1,355,542,536 -1.22% 1,355,542,536 ### -12.52%

 HORIZONTAL ANALYSIS OF INCOME STATEMENT ENDED DECE
Incr.
Decr.
Income 2014 2013 (%)
Net Sales 24,157,801,405 18,776,784,325 28.66%
Cost of Goods Sold -19,812,624,371 -15,304,655,417 -29.45%
Gross Profit 4,345,177,034 3,472,128,908 25.14%
Selling and Administrative
-3,061,004,456 -2,382,280,448 -28.49%
Expenses
Income from Operat.s 178,577,444 218,962,448 -18.44%
Operating Expenses -104,192,122 -82,685,160 -26.01%
Operating Profit 1,358,557,900 1,226,125,748 10.80%
Income from Inv. Activities 210,887,363 145,511,240 44.93%
Expen. from Inv. Activities -52,200,322 -2,105,578 ###
Share of investment profit by
160,773,731 108,973,512 47.53%
using Equity Method
Operating Profit before
1,678,018,672 1,478,504,922 13.49%
Financial Income Expense
Financial income 980,209,225 50,145,542 1854.73%
Financial expenses (-) -397,081,094 -563,406,209 29.52%
Profit Before Taxes 2,261,146,803 965,244,255 134.26%
Income tax expense -441,887,267 -282,536,828 -56.40%
Other income 372,653,238 1,048,020,303 -64.44%
Net Income 2,191,912,774 1,730,727,730 26.65%
ENT ENDED DECEMBER 31 (in TL)
Incr.
Decr.
2013 2012 (%) 2012 2011
18,776,784,325 14,762,062,246 27.20% 14,909,003,818 11,812,549,098
-15,304,655,417 -11,716,974,068 -30.62% -11,893,596,710 -9,803,269,512
3,472,128,908 3,045,088,178 14.02% 3,015,407,108 2,009,280,396
-2,382,280,448 -1,960,320,482 -21.53% -1,967,589,491 -1,650,142,934
230,555,047 170,551,907 35.18% 600,682,892 160,190,646
-80,372,043 -115,962,720 30.69% -43,666,621 -396,680,737
1,240,031,464 1,139,356,883 8.84% 1,604,833,888 122,647,371
131,813,063 488,674,809 -73.03% - -
- - - - -

108,973,512 5,961,253 1728.03% 5,149,234 10,074,016

1,480,818,039 1,633,992,945 -9.37% 1,609,983,122 132,721,387

50,145,542 88,516,891 -43.35% 162,136,645 264,238,277

-565,719,326 -337,397,405 -67.67% -414,741,611 -251,070,672
965,244,255 1,385,112,431 -30.31% 1,357,378,156 145,888,992
-282,536,828 -229,395,374 -23.17% -224,010,923 -127,372,360
1,048,020,303 -249,601,109 519.88% -227,251,285 733,004,025
1,730,727,730 906,115,948 91.01% 906,115,948 751,520,657
 Incr.
Decr.
(%)
26.21%
-21.32%
50.07%
-19.24%
274.98%
88.99%
1208.49%
-
-

-48.89%

1113.05%

-38.64%
-65.19%
830.42%
-75.87%
-131.00%
20.57%
 HORIZONTAL ANALYSIS OF BALANCE SHEET DECEMBER 31 (in TL)
Incr.
Decr.
Assets 2014 2013 (%)
Current Assets 6,564,848,184 4,535,535,069 44.74%
Non - Current Assets 25,310,758,878 21,866,542,749 15.75%
Total Assets ### ### 25.48%
Liabilities &
Shareholers' Equity
Current Liabilities 8,505,344,748 6,652,755,831 27.85%
Long Term Liabilities 14,215,859,184 11,786,831,631 20.61%
Total Liabilities ### ### 23.22%

Total Shareholders
9,154,403,130 6,962,490,356 31.48%
Equity
Total Liabilities and
### ### 25.48%
Stockholders Equity
HEET DECEMBER 31 (in TL)
Incr. Incr.
Decr. Decr.
2013 2012 (%) 2012 2011 (%)
4,535,535,069 3,861,499,409 17.46% 3,899,761,429 4,042,735,398 -3.54%
20,863,806,558 14,896,432,306 40.06% 14,881,141,034 12,362,211,730 20.38%
### ### 35.41% ### ### 14.48%

6,652,755,831 4,510,696,790 47.49% 4,533,667,538 3,951,410,407 14.74%

11,784,095,440 8,842,191,336 33.27% 8,842,191,336 7,954,609,080 11.16%
### ### 38.07% ### ### 12.35%

6,962,490,356 5,405,043,589 28.81% 5,405,043,589 4,498,927,641 20.14%

### ### 35.41% ### ### 14.48%

 TURKISH AIRLINES 2013 FINANCIAL STATEMENT (TL)
CONSOLIDATED BALANCE SHEET 31.DEC.2014

31 December 2014
ASSETS
Current Assets
Cash & Cash Equivalents 1,473,508,453
Financial Investments 200,932,718
Trade Receivables
Trade Recv. From related parties 628,622
Trade Recv. From n. related parties 1,056,706,451
Other Receivables
Other Recv. From related parties 7,505,738
Other Recv. From n. related parties 2,771,633,154
Derivative Financial Instruments 353,543,745
Inventories 452,228,491
Prepaid Expenses 138,866,880

Current Income Tax Assets 18,570,204

Other current assets 89,723,728
TOTAL CURRENT ASSETS 6,564,848,184

Non Current Assets

Financial Investments 2,664,861
Other receivables
Other Recv. From N. Related Parties 2,454,780,090
Equity Accounted Investees 525,582,579
Investment property 82,560,000
Property and equipment 21,335,501,851
Intangible assets
Other Intangible Assets 165,458,929
Goodwill 28,799,966
Prepaid Expenses 715,410,602
TOTAL NON-CURRENT ASSETS 25,310,758,878

TOTAL ASSETS 31,875,607,062

CONSOLIDATED BALANCE SHEET 31.DEC.2014 (TL)

31 December 2014
LIABILITIES

Current Liabilities
Sh.Term Portion of L.Term Brrowings 1,421,172,095
Other financial liabilities 44,261,101
Trade payables
Trade Payables to Related Parties 343,039,672
Trade Payables to N.Related Parties 1,195,561,375
Payables Related to Employee Benefits 296,516,690
Other Payables

Other Payabl. to N. Related Parties 165,560,060

Derivative Financial Instruments 990,806,416
Deferred Income 22,095,569
Passenger Flight Liabilities 3242625728
Current Tax Provisions 1,860,231
Short-term Provisions
Provision for Employee Benefits 133,462,891
Other Provisions 36,593,232
Other Current Liabilities 611,789,688
TOTAL CURRENT LIABILITIES 8,505,344,748

Non Current Liabilities

Long-Term Borrowings 12,333,917,978
Trade payables
Trade Payables to N.Related Parties 3,472,514
Other payables
Other payables to N.Related Parties 33,177,620
Deferred Income 32,930,871
Provsions for Employee Benefits 294,422,303

Deferred tax liability 1,517,937,898

TOTAL NON-CURRENT LIABILITIES 14,215,859,184

Equity Attributable to Shareholders of

Parent
Share capital 1,380,000,000

Inflation Adjustment on Share Capital 1,123,808,032

Items That Will Never Be Reclassified to Profit
or Loss
Actuarial Losses fr. Defined Pension Plans -20,415,807
Items That Will Never Be Reclassified to Profit
or Loss
Foreign curr. translation differences 2,367,369,791
Losses from Hedging -428,551,847
Restricted Profit Reserves 59,372,762
Retained Earnings 2,853,560,663
Net profit for the year 1,819,259,536
TOTAL EQUITY 9,154,403,130

TOTAL LIABILITIES AND EQUITY 31,875,403,130

INCOME STATEMENT 31.DEC.2014 (TL)

1 January
31 December 2014
PROFIT OR LOSS
Sales Revenue 24,157,801,405

Cost of sales (-) -19,812,624,371

GROSS PROFIT 4,345,177,034
Administrative expenses (-) -598,748,595
Marketing and sales expenses -2,462,255,861
Other operating income 178,577,444
Other operating expenses (-) -104,192,122
OPERATING PROFIT 1,358,557,900

Income from Investment Activities 210,887,363

Expenses from Investment Activities -52,200,322

Share of investments profit accounted by using

equity method
160773731
OPERATING PROFIT BEFORE FINANCIAL
INCOME/EXPENSE 1,678,018,672
Financial income 980209225

Financial expenses (-) -397,081,094

PROFIT BEFORE TAX FROM CONTINUING
OPERATIONS 2,261,146,803
Tax Expense of Continuing Operations -441,887,267

Current Tax Expense (-) -9,875,007

Deferred Tax Expense (-) -432,012,260
PROFIT FROM CONTINUING OPERATIONS 1,819,259,536
OTHER COMPREHENSIVE INCOME

To Be Reclassified To Profit or Loss

380,362,122
Currency Translation Adjustment 707,977,183

Change in Cash Flow Hedge Reserves

Actuarial Gains/(Losses) from Cash Flow Hedge
Reserves of
8,465,779
Investment Accounted by Using the Equity
Method
Tax expense/income on items in other
81,836,265
comprehensive income.
Not To Be Reclassifiedd To Profit or Loss -7,978,884

Actuarial Changes from Defined Pension Plans -10,492,174

Actuarial Gains/(Losses) from Defined Pension

Plans of
518,569
Investments Accounted by Using the Equity
Method
Tax Expense/(Income) of Other Comprehensive
1,994,721
Income
OTHER COMPREHENSIVE INCOME 372,653,238

TOTAL COMPREHENSIVE INCOME 2,191,912,774

Earnings per share (Kr) 1,32

STATEMENT OF CASH FLOWS ENDED 31.DEC.2014

1 January 31
December 2014

Net Profit 1,819,259,536

Adjustments to reconcile cash flow
generated from operating activities:
Adj.s for Deprec. and Amortization 1,625,997,651

Adj.s for Prov.for Employee Benefits 71,764,855

Adjustments for Provisions. Net 75,018,425
Adjustments for Interest Income -76,188,692
Gain on Sales of Fixed Assets 1,581,607
Share of Investments' (Profit) / Loss Acc.td by
-160,773,731
Using The Equity Method
Adjustments for Interest Expense 360,960,866
Change in manufacturers credit -6,015,242
Unrealized Foreign Exchange Translation
-892,320,013
Differences

Change in Provision for Doubtful Rec. 8,857,705

Incr./Decr. In value of investmen property 6,240,000

Tax Expense 441,887,267

Change in fair value of derivativ instrum.s -53,168,614

Operating Profit before working capital
3,210,621,620
changes
Adjustments for Change in Trade Rec. 179,204,340

Adj. for Change in Sh. & L.Term Recv. -691,558,532

Adjustments for Change in Inventories -75,711,210

Adjustments for Change in Other Receivables
32,036,733
Related to Operations
Adjustments for Change in Other Non- Current
-291,625,158
Assets and Prepaid Expenses
Adj.s for Change in Trade Payables -36,282,626
Adjustments for Change in Sh.Term Provisions 2,813,091
for Employee Benefits
Adj.s for Change in Sh. & L.Term P. Related to -85,848,594
Opr.s & Deferred Inc
Adj.s for Change in Passenger Flight L.
Cash Flow from Operating Activities 2,675,955,120

Payment of Retirement Pay Liability -32,067,388

Net cash generated from Opr. Activit. 2,643,887,732

CASH FLOW FROM INVESTING ACTV.

Proceeds From Sale of Property and Equipment
414,185,090
& intangible fixed assets
Interest received 88,224,455
Purchase of Property and Equipment and
-1,074,213,563
Intangible Assets
Prepayment for Aircraft Purchase -285,045,336
Change in Financial Investments -157,887,972
Cash O.flow Arising F. Capital Incr. in Inv. -300,000
Dividends Received 32,470,899

Cash O.flow Arising fr. Acquisition of Subs. -

Net Cash Used In Investing Activities -982,566,427
CASH FLOW FROM FINANC. ACTIVIT.
Repayment of Finance Lease Liabilities -1,196,700,032

Change in Other Finc. L.& Derivative Instr. 7,098,680

Interest paid -337,195,335

Dividends Paid -
Net Cash used in financing activities -1,526,796,687
NET DECREASE IN CASH & CASH
134,524,618
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE
1,355,542,536
BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE
1,473,508,453
END OF THE PERIOD
TATEMENT (TL) TURKISH AIRLINES 2013 FINANCIAL STATEMENT
1.DEC.2014 CONSOLIDATED BALANCE SHEET 31.DEC.201

31 December 2013
ASSETS
Current Assets
1,338,983,835 Cash & Equivalents
42,774,034 Financial Investments
Trade Receivables
382,750 Trade Recv. From related parties
1,147,707,413 Trade Recv. From n. related parties
Other Receivables
4,087,847 Other Recv. From related parties
1,376,697,906 Other Recv. From n. related parties
64,279,662
342,324,371 Inventories
89,366,115 Prepaid Expenses

16,507,184 Current Income Tax Assets

112,423,952 Other current assets
4535535069 TOTAL CURRENT ASSETS

Non Current Assets

2,452,721 Financial Investments
Other receivables
2,680,608,826 Other Recv. From N. Related Parties
389,674,199 Equity Accounted Investees
76,320,000 Investment property
17,165,656,116 Property and equipment
Intangible assets
113,081,412 Other Intangible Assets
26,507,294 Goodwill
412,242,181 Prepaid Expenses
21,866,542,749 TOTAL NON-CURRENT ASSETS

25,402,077,818 TOTAL ASSETS

DEC.2014 (TL) CONSOLIDATED BALANCE SHEET 31.DEC.2013 (

31 December 2013
LIABILITIES

Current Liabilities
 1,188,220,823 Sh.Term Portion of L.Term Brrowings
33,808,413 Other financial liabilities
Trade payables
374,606,410 Trade Payables to Related Parties
1,076,575,170 Trade Payables to N.Related Parties
307,983,476 Other Payables
Other Payabl. to N. Related Parties

114,181,687 Derivative Financial Instruments

233,949,090 Deferred Income
46,629,988 Passenger Flight Liabilities
2,562,506,267 Short-term Provisions
- Provision for empl. Bnfts
Other Provisions
64,731,115 Other Current Liabilities
29,819,212 TOTAL CURRENT LIABILITIES
619,744,180
6,652,755,831 Non Current Liabilities
Long-Term Borrowings
Trade payables
10,364,269,509 Trade Payables to N.Related Parties
Other payables
3,549,001 Other payables to N.Related Parties
Provsions for Employee Benefits
30,917,704 Deferren tax liability
31,157,986 TOTAL NON-CURRENT LIABILITIES
249,604,088
Equity Attributable to Shareholders of
1,107,333,343 Parent
11,786,831,631 Share capital
Inflation Adjustment on Share Capital
Items That Will Never Be Reclassified to
Profit or Loss
1,380,000,000 Actuar. Losses fr. Defined Pens Plans
Items That Will Never Be Reclassified to
1,123,808,032 Profit or Loss

Foreign curr. translation differences

-12,436,923 Losses from Hedging

Restricted Profit Reserves

1,659,392,608 Retained Earnings
-101,206,786 Net profit for the year
59,372,762 TOTAL EQUITY
 2,170,853,236
682,707,427 TOTAL LIABILITIES AND EQUITY
6,962,490,356

25,402,077,818 INCOME STATEMENT 31.DEC.2013 (TL)

PROFIT OR LOSS
14 (TL) Sales Revenue

1 January 31 Cost of sales (-)

December 2013
GROSS PROFIT
18,776,784,325 Administrative expenses (-)

-15,304,655,417 Marketing and sales expenses

3,472,128,908 Other operating income
-434,976,154 Other operating expenses (-)
-1,947,304,294 OPERATING PROFIT
218,962,448 Income from Investment Activities
-82,685,160
1,226,125,748 Share of investments profit accounted by
using equity method
145,511,240
OPERATING PROFIT BEFORE FINANCIAL
-2,105,578 INCOME/EXPENSE
Financial income
Financial expenses (-)
PROFIT BEFORE TAX FROM CONTINUING
108,973,512 OPERATIONS

1,478,504,922 Tax Expense of Cont. Operations

50,145,542 Current Tax Expense (-)

-563,406,209 Deferred Tax Expense (-)

965,244,255
PROFIT FROM CONTINUING OPERAT.
-282,536,828

OTHER COMPREHENSIVE INCOME

-
-282,536,828 To Be Reclassified To Profit or Loss
682,707,427 Currency Translation Adjustment
Change in Cash Flow Hedge Reserves
 Actuarial Gains/(Losses) from Cash Flow
Hedge Reserves of
Investment Accounted by Using the Equity
Method
Tax expense/income on items in other
1,033,459,675 comprehensive income.
1,089,281,590 Not To Be Reclassfd To Profit or Loss
Actuarial Changes from Defined Pension
-65,561,681 Plans
Actuarial Gains/(Losses) from Defined
Pension Plans of
-4,215,713
Investments Accounted by Using the Equity
Method
Tax Expense/(Income) of Other
13,955,479
Comprehensive Income
-14,560,628 OTHER COMPREHENSIVE INCOME

14,560,628

-613,681 TOTAL COMPREHENSIVE INCOME

-3,640,157
Earnings per share (Kr)
1,048,020,303
STATEMENT OF CASH FLOWS ENDED 31.DEC.20
1,730,727,730
0,49
Profit Before Tax
Adjustments to reconcile cash flow
31.DEC.2014 generated from operating activities:
Adj.s for Deprec. and Amortization
1 January 31
December 2013
Adj.s for Prov.for Employee Benefits
682,707,427 Adjustments for Provisions. Net

Adjustments for Interest Income

1,240,527,159 Gain on Sales of Fixed Assets
Share of Investments' (Profit) / Loss Acc.td
41,220,674 by Using The Equity Method
18,890,248 Adjustments for Interest Expense
-79,271,750 Change in manufacturers credit
 Unrealized Foreign Exchange Translation
-1,658,418 Differences

-108,973,512
Change in Provision for Doubtful Rec.
261,649,506 Incr./Decr. In value of inv. property
-648,585 Change fair value of deriv. instrum.
Operating Profit before working capital
210,292,593
changes

37,442,673 Adjustments for Change in Trade Rec.

-18,835,000 Adj. for Change in Sh. & L.Term Recv.

282,536,828 Adjustments for Change in Inventories

Adjustments for Change in Other
31,058,964 Receivables Related to Operations
Adjustments for Change in Other Non-
2,596,938,807
Current Assets and Prepaid Expenses
-193,366,224 Adj.s for Change in Trade Payables
Adj.s for Change in Sh. & L.Term P. Related to
-2,872,430 Opr.s & Deferred Inc
Adjustments for Change in Sh.Term
-28,524,263 Provisions for Employee Benefits

-640,438
Adj.s for Change in Passenger Flight L.

-113,633,417
Cash Flow from Operating Activities
272,248,976 Payment of Retirement Pay Liability

79,175,438
Interest paid

28,648,858
Taxes paid
503,722,973 Net cash generated from Inv. Activit.
3,141,698,280 CASH FLOW FROM INVESTING ACTV.
Proceeds From Sale of Property and
-28,139,267 Equipment & intangible fixed assets
3,113,559,013 Interest received
Purchase of Property and Equipment and
Intangible Assets (**)

38,199,601
Prepayment for Aircraft Purchase
36,432,249 Change in Financial Investments

-1,092,367,554
Cash O.flow Arising F. Capital Incr. in Inv.
-1,128,522,317 Dividends Received
 513,555,407 Cash O.flow Arising fr. Acquisition of Subs.
-1,721,250 Net Cash Used In Investing Activities
21,500,000 CASH FLOW FROM FINANC. ACTIVIT.

Repayment of Finance Lease Liabilities

-45,929,808
-1,658,853,672 Decr. in Other Finc. L. and Derivative Instr.
Dividends Paid
-1,022,387,330 Net Cash used in financing activities
NET DECREASE IN CASH & CASH
-3,018,238 EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE
-272,577,511 BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE
-173,280,963 END OF THE PERIOD
-1,471,264,042
-16,558,701 (**) TL 1.854.263.247 portion of property and equipment and intangible
1,355,542,536 in total of TL 2.946.630.801 for the year ended 31 December 2013 was fi
finance leases. (31 December 2012: TL 1.883.990.615 portion of propert
and intangible assets purchases in total of TL
1,338,983,835 2.643.648.484 was financed through finance leases.)
S 2013 FINANCIAL STATEMENT (TL)
D BALANCE SHEET 31.DEC.2013

31 December 2013 31 December 2012

1,338,983,835 1,355,542,536
42,774,034 476,958,794

382,750 18,975,259
1,147,707,413 754,635,214

4,087,847 8,531
1,376,697,906 755,052,298

342,324,371 259,199,763
89,366,115 84,553,331

16.507.184 19.666.261
112.423.952 62.045.773
4.535.535.069 3.861.499.409

2.452.721 2.049.244

2.680.608.826 1.584.919.109
389.674.199 269.069.545
76.320.000 57,985,000
17.162.416.670 12,693,339,589

81.851.159 51,183,767
58.240.802 -
412.242.181 237.886.052
20.863.806.558 14.896.432.306

25.399.341.627 18.757.931.715

BALANCE SHEET 31.DEC.2013 (TL)

(Restated)(*) 31
31 December 2013
December 2012
 1.188.220.823 866.011.394
33.808.413 31.064.076

374.606.410 215.000.995
1.076.575.170 693.789.816

114.181.687 76.806.199

233.949.090 161.636.622
46.629.988 41.819.652
2.562.506.267 1,668,475,819

64.731.115 41.066.116
29.819.212 35.516.181
619.744.180 496.430.242
6.652.755.831 4.510.696.790

10.364.269.509 7,800,982,204

3.549.001 -

30.917.704 15.659.634
249.604.088 234,019,405
1.104.597.152 744,083,660
11.784.095.440 8.842.191.336

6.962.490.356 5,405,043,589

1,380,000,000 1,200,000,000
1,123,808,032 1,123,808,032

-6,986,903 -26,997,551

1.653.942.588 570.111.018
-101,206,786 -45,384,871

59.372.762 39.326.341
2.170.853.236 1.388.463.563
682.707.427 1.155.717.057
6.962.490.356 5.405.043.589
 25.399.341.627 18.757.931.715

ATEMENT 31.DEC.2013 (TL)

(Restated)(*)
1 January
1 January 31
31 December 2013
December 2012
18,776,784,325 14.762.062.24

-15,304,655,417 -11,716,974,068

3,472,128,908 3,045,088,178
-434,976,154 -371,529,589

-1,947,304,294 -1,588,790,893
230,555,047 170,551,907
-80,372,043 -115,962,720
1,240,031,464 122,647,371
131,813,063 488.674.80

108,973,512 5,961,253

1,480,818,039 1,633,992,945
50,145,542 88,516,891
-565,719,326 -337,397,405

965,244,255 1,385,112,431

-282,536,828 -229,395,374
- -32,616,486

-282,536,828 -196,778,888

682,707,427 1,155,717,057

1,028,009,655 -227,251,285
1,083,831,570 -228,479,860
-65,561,681 5,980,432
 -4,215,713 -4,444,713

13,955,479 -307,144

20,010,648 -22,349,824

25,626,991 -26,922,256

-613,681 -1,015,024

-5,002,662 5,587,456

1,048,020,303 -249,601,109

1,730,727,730 906,115,948

0.49 0.84

ASH FLOWS ENDED 31.DEC.2013

(Restated)(*)
31 December 2013
31 December 2012
965,244,255 1,385,112,431

1,240,527,159 1,029,762,920

34,408,148 60,507,343
18,890,248 37,546,895

-79,271,750 -128,572,218
-1,658,418 -3,321,066

-108,973,512 -5,961,253

263,962,623 221,745,105
-4,706,888 -1,572,071
 210,351,868
26,671,522

37,442,673 -2,649,923
-7,242,401 -6,333,810
44,471,986 -25,503,133

2,613,445,991 2,236,290,419

-193,366,224 -45,639,594

-2,872,430 -397,691,391

-28,524,263 -21,699,604

-640,438 -8,267,025

-113,633,417 30,294,489

272,248,976 94,891,149

28,648,858 63,771,342

79,175,438 -97,151,900

503,722,973 463,637,936

3,158,205,464 2,318,435,821
-28,139,267 -25,874,633

-272,577,511 -226,630,375

-16,507,184 -25,029,904
2,840,981,502 2,040,900,909

38,199,601 38,384,180

36,432,249 172,162,930

-1,092,367,554 -759,657,869

-1,128,522,317 -588,878,369
513,555,407 -353,211,312

-1,721,250 -9,603,468
21,500,000 -
 -45,929,808 -
-1,658,853,672 -1,500,803,908

-1,022,387,330 -762,001,461
-3,018,238 27,922,286
-173,280,963 -
-1,198,686,531 -734,079,175

-16,558,701 -193,982,174

1,355,542,536 1,549,524,710

1,338,983,835 1,355,542,536

perty and equipment and intangible assets purchases

year ended 31 December 2013 was financed through
TL 1.883.990.615 portion of property and equipment
otal of TL
h finance leases.)
 TURKISH AIRLINES 2012 FINANCIAL STATEMENT (TL)
CONSOLIDATED BALANCE SHEET 31.DEC.2012

Current Period 31 Prior Period 31

ASSETS December 2012 December 2011
Current Assets 3,899,761,429 4,042,735,398
Cash & Equivalents 1,355,542,536 1,549,524,710
Short term fin. Inv. 551,820,443 213,899,678
Trade Receivables 777,402,622 764,775,891
Other Receivables 754,126,100 792,699,876
Inventories 259,199,763 251,785,807
Other current assets 201,669,965 190,577,236
N.curr. Assets for sale - 279,472,200

Non Current Assets 14,881,141,034 12,362,211,730

Other receivables 1,553,830,754 614,598,106
Financial assets 2,049,244 1,767,872
Investments acc.d By using equity
method 269,069,545 294,960,592
Investment property 57,985,000 54,720,000
Property and equipment 12,693,339,589 11,092,594,872
Intangible assets 51,183,767 46,962,939
Other non-current assets 253,683,135 256,607,349

TOTAL ASSETS 18,780,902,463 16,404,947,128

CONSOLIDATED BALANCE SHEET 31.DEC.2012 (TL)

Current Period 31 Prior Period 31

LIABILITIES December 2012 December 2011

Current Liabilities 4,533,667,538 3,951,410,407

Financial debt 866,011,394 790,159,337
Other financial liabilities 192,700,698 158,358,545
Trade payables 912,324,274 870,440,470
Other payables 153,494,125 151,332,850
Current tax provision - 5,368,643
Provisions 35,516,181 26,224,798
Provision for empl. Bnfts 188,123,923 249,623,497
Passenger flight liabilities 1,668,475,819 1,279,313,640
Other current liabilities 517,021,124 420,588,627

Non Current Liabilities 8,842,191,336 7,954,609,080

Financial debt 7,800,982,204 7,122,723,496
Other payables 15,659,634 11,439,394
Provsions f. emply benefits 234,019,405 191,632,448
Deferren tax liability 744,083,660 574,679,843
Other non-current liabilities 47,446,433 54,133,899

SHAREHOLDERS` EQUITY
Equity Attributable to Shareholders
5,405,043,589 4,498,927,641
of Parent
Share capital 1,200,000,000 1,200,000,000
Inflation Differ. on Shareh.s` Equity 1,123,808,032 1,123,808,032
Restricted profit reserves 39,326,341 39,326,341
Currency translation adjstm.s 570,111,018 798,590,878
Cash flow hedge reserves -45,384,871 -46,613,446
Retained Earnings 1,383,815,836 1,365,299,204
Net profit for the year 1,133,367,233 18,516,632

TOTAL LIABILITIES AND

SHAREHOLDERS EQUIRY 18,780,902,463 16,404,947,128

INCOME STATEMENT 31.DEC.2012

Current Period(TL)
Prior Period
1January 1January
31 December 31 December
Sales revenue 2012
14,909,003,818 2011
11,812,549,098
Cost of sales (-) -11,893,596,710 -9,803,269,512
GROSS PROFIT 3,015,407,108 2,009,280,396

Marketing and sales expenses -1,593,367,677 -1,284,859,256

Administrative expenses (-) -374,221,814 -365,283,678
Other operating income 600,682,892 160,190,646

Other operating expenses (-) -43,666,621 -396,680,737

OPERATING PROFIT 1,604,833,888 122,647,371

Share of investments profit accounted by

using equity method

5,149,234 10,074,016
Financial income 162,136,645 264,238,277
Financial expenses (-) -414,741,611 -251,070,672
PROFIT BEFORE TAX 1,357,378,156 145,888,992
Tax expense -224,010,923 -127,372,360
Current tax expense (-) -32,616,486 -16,770,183
PROFIT FOR THE YEAR 1,133,367,233 18,516,632

OTHER COMPREHENSIVE INCOME /

(EXPENSE)
Change in currency translation adj. -228,479,860 795,001,243
Change in cash flow hedge reserves 1,535,719 -77,496,523
Tax expense/income on items in other
-307,144 15,499,305
comprehensive income.
OTHER COMPREHENSIVE
(LOSS)/INCOME AFTER TAX -227,251,285 733,004,025

TOTAL COMPREHENSIVE INCOME

FOR THE YEAR 906,115,948 751,520,657
Earnings per share (Kr) 0,94 0,02

STATEMENT OF CASH FLOWS ENDEN

Current 31.DEC.2012
Period Prior Period
1January 1January
CASH FLOW FROM OPR. ACTIVITIES 31 December 31 December
Net profit taxes 2012
1,357,378,156 2011
145,888,992
Adjst.s to obtain net cash flow generated
from opr. Activities

Depreciation and amortization 1,029,762,920 811,848,621

Provision for retirement pay liabili. 51,071,434 43,712,634
Provisions net 8,336,506 5,654,965

Interest income -129,243,516 -77,277,018

Gain on sales of fixed assets -3,717,189 -5,400,013

Incr. in provision for impairment -351,142,323 329,671,432
Gain on equity invst.s accounted by
using the equity method -5,149,234 -10,074,016

Interest expense on finance leases 208,066,460 204,097,145

Change in manufacturers credit -1,572,071 -3,746,701
Unrealized foreign exchange loss and
translation adjustment 58,946,716 17,436,691
Incr. in provis. for doubtful recv.s 13,362,362 25,733,253
Incr./Decr. In value of inv. property -6,333,810 5,169,703
Change fair value of deriv. instrum. -25,503,133 8,879,487
Operating Profit before working
capital changes
2,204,263,278 1,501,595,175

Increase in trade receivables -65,444,030 -74,080,593

Incr. in short & long term receivables -396,249,212 -149,193,114

Increase in inventories -21,699,604 -36,746,558

Incr./Decr. in other current assets -21,935,054 27,370,907

Incr/Decr. in other noncurrent assets -11,578,616 11,918,075

Increase in trade payables 91,357,686 90,682,688

Incr. in sh.term & l.term payables 15,625,319 15,065,985

Incr. in short & long term liabilities 104,570,655 39,474,917

Decr./Incr. in sh.term employe benf. -47,707,008 111,816,923

Increase in passeng. flight liabilities 463,637,936 224,050,649
Cash Flow from Operating Activities 2,314,841,350 1,761,955,054
Payment of retirement pay liability -21,791,662 -27,610,424
Interest paid -212,951,730 -168,515,067
Taxes paid -40,264,472 -13,587,608

Net cash generated from Inv. Activit. 2,039,833,486 1,552,241,955

CASH FLOW FROM INVESTING ACTV.

Proceeds from sale of property and

equipment & intangible fixed assets
38,780,303 20,246,527
Interest received 172,834,230 94,039,511
Purchase of property & equipment and
intangible assets -759,657,869 -1,088,704,104
Prepayment for aircraft purchase -588,878,369 929,467,323

Incr. in sh.term financial investments -353,211,312 -117,786,293

Cash o.flow from purchase of joint v. -9,603,468 -11,681,249
Net cash used in investing activities -1,499,736,485 -174,418,285
CASH FLOW FROM FINANC. ACTIVIT.
Repayment of principal in finance lease
liabilities -762,001,461 -628,472,899
Increase in financial borrowings - -15,750,096
Increase in other financial libilities 27,922,286 1,987,483

Net Cash used in financing activities -734,079,175 -642,235,512

NET INCREASE/(DECREASE) IN CASH
& CASH EQUIVALENTS -193,982,174 735,588,158
CASH AND CASH EQUIVALENTS AT
THE BEGINNING OF THE YEAR 1,549,524,710 813,936,552
CASH AND CASH EQUIVALENTS AT
THE END OF THE YEAR 1,355,542,536 1,549,524,710
 TURKISH AIRLINES
HORIZONTAL ANALYSIS OF BALANCE SHEET DECEMBE

2014 2013
ASSETS
Current Assets 6,564,848,184 4,535,535,069
Cash & Cash Equivalents
Financial Investments
Trade Receivables
Trade Recv. From related parties
Trade Recv. From n. related parties
Other Receivables
Other Recv. From related parties
Other Recv. From n. related parties
Derivative Financial Instruments
Inventories
Prepaid Expenses
Current Income Tax Assets
Other current assets 89,723,728 112,423,952
TOTAL CURRENT ASSETS

Non Current Assets

Financial Investments
Other receivables
Other Recv. From N. Related Parties
Equity Accounted Investees
Investment property
Property and equipment 21,335,501,851 17,165,656,116
Intangible assets
Other Intangible Assets
Goodwill
Prepaid Expenses
TOTAL NON-CURRENT ASSETS

TOTAL ASSETS ### 25,402,077,818

LIABILITIES
Current Liabilities
Sh.Term Portion of L.Term Brrowings
Other financial liabilities
Trade payables
Trade Payables to Related Parties
Trade Payables to N.Related Parties
Payables Related to Employee Benefits
Other Payables
Other Payabl. to N. Related Parties
Derivative Financial Instruments
Deferred Income
Passenger Flight Liabilities
Current Tax Provisions
Short-term Provisions
Provision for Employee Benefits
Other Provisions
Other Current Liabilities
TOTAL CURRENT LIABILITIES

Non Current Liabilities

Long-Term Borrowings
Trade payables
Trade Payables to N.Related Parties
Other payables
Other payables to N.Related Parties
Deferred Income
Provsions for Employee Benefits
Deferred tax liability
TOTAL NON-CURRENT LIABILITIES

Equity Attributable to Shareholders of

Parent
Share capital
Inflation Adjustment on Share Capital
Items That Will Never Be Reclassified to
Profit or Loss
Actuarial Losses fr. Defined Pension Plans
Items That Will Never Be Reclassified to
Profit or Loss
Foreign curr. translation differences
Losses from Hedging
Restricted Profit Reserves
Retained Earnings
Net profit for the year
TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

PROFIT OR LOSS
Sales Revenue
Cost of sales (-)
GROSS PROFIT
Administrative expenses (-)
Marketing and sales expenses
Other operating income
Other operating expenses (-)
OPERATING PROFIT
Income from Investment Activities
Expenses from Investment Activities

Share of investments profit accounted by

using equity method

OPERATING PROFIT BEFORE

FINANCIAL INCOME/EXPENSE
Financial income
Financial expenses (-)
PROFIT BEFORE TAX FROM
CONTINUING OPERATIONS
Tax Expense of Continuing Operations
Current Tax Expense (-)
Deferred Tax Expense (-)
PROFIT FROM CONTINUING OPERATIONS

OTHER COMPREHENSIVE INCOME

To Be Reclassified To Profit or Loss
Currency Translation Adjustment
Change in Cash Flow Hedge Reserves
Actuarial Gains/(Losses) from Cash Flow
Hedge Reserves of
Investment Accounted by Using the Equity
Method
Tax expense/income on items in other
comprehensive income.
Not To Be Reclassifiedd To Profit or
Loss
Actuarial Changes from Defined Pension
Plans
Actuarial Gains/(Losses) from Defined
Pension Plans of
Investments Accounted by Using the Equity
Method
Tax Expense/(Income) of Other
Comprehensive Income
OTHER COMPREHENSIVE INCOME

TOTAL COMPREHENSIVE INCOME

Earnings per share (Kr)

Net Profit
Adjustments to reconcile cash flow
generated from operating activities:
Adj.s for Deprec. and Amortization
Adj.s for Prov.for Employee Benefits
Adjustments for Provisions. Net
Adjustments for Interest Income
Gain on Sales of Fixed Assets
Share of Investments' (Profit) / Loss Acc.td
by Using The Equity Method
Adjustments for Interest Expense
Change in manufacturers credit
Unrealized Foreign Exchange Translation
Differences
Change in Provision for Doubtful Rec.
Incr./Decr. In value of investmen property
Tax Expense
Change in fair value of derivativ instrum.s
Operating Profit before working
capital changes
Adjustments for Change in Trade Rec.
Adj. for Change in Sh. & L.Term Recv.
Adjustments for Change in Inventories
Adjustments for Change in Other
Receivables Related to Operations

Adjustments for Change in Other Non-

Current Assets and Prepaid Expenses

Adj.s for Change in Trade Payables

Adjustments for Change in Sh.Term
Provisions for Employee Benefits
Adj.s for Change in Sh. & L.Term P. Related
to Opr.s & Deferred Inc
Adj.s for Change in Passenger Flight L.
Cash Flow from Operating Activities
Payment of Retirement Pay Liability
Net cash generated from Opr. Activit.
CASH FLOW FROM INVESTING ACTV.
Proceeds From Sale of Property and
Equipment & intangible fixed assets
Interest received
Purchase of Property and Equipment and
Intangible Assets
Prepayment for Aircraft Purchase
Change in Financial Investments
Cash O.flow Arising F. Capital Incr. in Inv.
Dividends Received
Cash O.flow Arising fr. Acquisition of Subs.
Net Cash Used In Investing Activities
CASH FLOW FROM FINANC. ACTIVIT.

Repayment of Finance Lease Liabilities

Change in Other Finc. L.& Derivative Instr.

Interest paid
Dividends Paid
Net Cash used in financing activities
NET DECREASE IN CASH & CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE PERIOD
CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD
AIRLINES
NCE SHEET DECEMBER 31 (in TL)

Increase (Decrease) Increase (Decrease)

Amount (%) 2013 2012 Amount (%)

2,029,313,115 44.74%4,535,535,069 ### 674,035,660 17.46%

-22,700,224 -20.19%

4,169,845,735 24.29%

6,473,529,244 25.48%
2012 2011
 TURKISH AIRLINES
HORIZONTAL ANALYSIS OF BALANCE SHEET DECEMBER 31 (in T
Increase (Decrease)
Assets 2014 2013 Amount (%)
Current Assets 6,564,848,184 4,535,535,069 2,029,313,115 44.74%
Non - Current Assets 25,310,758,878 21,866,542,749 3,444,216,129 15.75%
Total Assets ### ### ### 25.48%
Liabilities &
Shareholers' Equity
Current Liabilities 8,505,344,748 6,652,755,831 1,852,588,917 27.85%
Long Term Liabilities 14,215,859,184 11,786,831,631 2,429,027,553 20.61%
Total Liabilities ### ### ### 23.22%

Total Stockholders
9,154,403,130 6,962,490,356 2,191,912,774 31.48%
Equity
Total Liabilities and
### ### ### 25.48%
Stockholders Equity
NES
ECEMBER 31 (in TL)
Increase (Decrease)
2013 2012 Amount (%) 2012
4,535,535,069 3,861,499,409 674,035,660 17.46% 3,899,761,429
20,863,806,558 14,896,432,306 5,967,374,252 40.06% 14,881,141,034
### ### ### 35.41% ###

6,652,755,831 4,510,696,790 2,142,059,041 47.49% 4,533,667,538

11,784,095,440 8,842,191,336 2,941,904,104 33.27% 8,842,191,336
### ### ### 38.07% ###

6,962,490,356 5,405,043,589 1,557,446,767 28.81% 5,405,043,589

### ### ### 35.41% ###

 Increase (Decrease)
2011 Amount (%)
4,042,735,398 -142,973,969 -3.54%
12,362,211,730 2,518,929,304 20.38%
### ### 14.48%

3,951,410,407 582,257,131 14.74%

7,954,609,080 887,582,256 11.16%
### ### 12.35%

4,498,927,641 906,115,948 20.14%

### ### 14.48%