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.)The details of the cost of sales are as follows:1 January - 1 January -31 December 2012 31 December 2011Fuel expenses 5.159.187.276 3.998.588.861Personnel expenses 1.818.591.560 1.640.829.647Landing and navigation expenses 1.055.443.680 888.159.416Depreciation expenses 982.774.191 764.523.411Ground services expenses 878.506.857 785.500.939Passenger service catering expenses 601.834.695 512.939.146Maintenance expenses 390.551.585 384.995.476Operating lease expenses 312.866.150 396.538.392Other airlines’ seat rents 184.498.773 158.170.704Short term leasing expenses 111.974.938 24.062.482Insurance expenses 85.463.250 56.258.201Service expenses 83.845.381 49.738.978Other rent expenses 58.979.928 35.903.438Transportation expenses 31.819.834 23.575.019Tax expenses 22.400.538 15.842.831Utility expenses 12.430.824 9.470.581Other sales 102.427.250 58.171.99011.893.596.710 9.803.269.51229. RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SALES AND DISTRIBUTION EXPENSES, GENERALADMINISTRATIVE EXPENSES1 January - 1 January -31 December 2012 31 December 2011Marketing, sales and distribution expenses 1.593.367.677 1.284.859.256Administrative expenses 374.221.814 365.283.6781.967.589.491 1.650.142.93451