Financial - Turkish Airlines

(Convenience Translation of Report and Financial Statements Originally Issued in Turkish)TÜRK HAVA YOLLARI ANONİM ORTAKLIĞI AND ITS SUBSIDIARIESNotes to the Audited Consolidated Financial StatementsFor the Year Ended 31 December 2012(All amounts are expressed in Turkish Lira (TL) unless otherwise stated.)1 January-31 December 2011 Aviation TechnicInter-segmenteliminationTotalSales to external customers 11.599.965.757 212.584.151 - 11.812.549.908Inter-segment sales 29.362.804 614.148.458 (643.511.262) -Segment revenue 11.629.328.561 826.732.609 (643.511.262) 11.812.549.908Cost of sales (-) (9.758.673.723) (683.918.768) 639.322.979 (9.803.269.512)Gross profit 1.870.654.838 142.813.841 (4.188.283) 2.009.280.396Marketing, sales anddistribution expenses (-) (1.276.690.263) (8.653.848) 484.855 (1.284.859.256)Administrative expenses (-) (308.517.820) (60.147.481) 3.381.623 (365.283.678)Other operating income 149.421.032 17.881.114 (7.111.500) 160.190.646Other operating expense (-) (382.377.742) (15.637.879) 1.334.884 (396.680.737)Operating profit (-) 52.490.045 76.255.747 (6.098.421) 122.647.371Share of investment profit/ (loss)accounted by using the equity method 40.112.749 (30.038.733) - 10.074.016Financial income 274.324.770 (3.253.302) (6.833.191) 264.238.277Financial loss (-) (251.062.433) (8.299) 60 (251.070.672)Profit before tax 115.865.131 42.955.413 (12.931.552) 145.888.992Income statement items related to investments accounted for equity method:1 January-31 December 2012 Aviation TechnicInter-segmenteliminationTotalShare of investment profit/ (loss)accounted by using the equity method 25.619.466 (20.470.232) - 5.149.2341 January-31 December 2011 Aviation TechnicInter-segmenteliminationTotalShare of investment profit/ (loss)accounted by using the equity method 40.112.749 (30.038.733) - 10.074.0165.3 Investment Operations1 January-31 December 2012 Aviation TechnicInter-segmenteliminationTotalPurchase of property and equipment andintangible fixed assets 2.517.406.545 126.241.939 - 2.643.648.484Current period amortization anddepreciation 964.625.827 65.137.093 - 1.029.762.920Investmensts accounted by using theequity method 206.971.401 62.098.144 - 269.069.5451 January-31 December 2011 Aviation TechnicInter-segmenteliminationTotalPurchase of property and equipment andintangible fixed assets 4.091.389.794 233.547.254 - 4.324.937.048Current period amortization anddepreciation 753.118.045 58.730.576 - 811.848.621Investmensts accounted by using theequity method 209.705.888 85.254.704 - 294.960.59228 TÜRK HAVA YOLLARI ANNUAL REPORT 2012