MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Movement in tangible assets in the period from January 1 to December 31, 2019 is presented below: January 1, 2019 Additions Foreign currency translation effect (*) Disposals Revaluation surplus December 31, 2019 Cost: Investment properties (Note 7) 392.041.000 157.865 - - 23.692.135 415.891.000 Buildings for own use 179.340.000 - - - - 179.340.000 Furniture and fixtures 6.065.122 1.606.880 160.219 (297.182) - 7.535.039 Operating leases - 2.617.283 321.653 - - 2.938.936 Land vehicles 2.270.724 - 98.466 (43.639) - 2.325.551 579.716.846 4.382.028 580.338 (340.821) 23.692.135 608.030.526 Accumulated depreciation: Buildings for own use 139.868 559.473 - - - 699.341 Furniture and fixtures 4.906.281 595.361 154.415 (295.445) - 5.360.612 Land vehicles 792.720 457.312 63.597 (43.639) - 1.269.990 Operating leases 1.463.920 69.438 1.533.358 5.838.869 3.076.066 287.450 (339.084) - 8.863.301 Carrying amounts 573.877.977 599.167.225 (*) Foreign currency translation effect resulted from Singapore Branch. Expertise reports regarding the Company’s property are prepared by independent professional valuation specialists authorized by CMB in December 2019. As of December 31, 2020, and 2019, the fair values (excluding VAT) and net carrying values of property for own used are presented below: Owner occupied land and buildings Expertise date Expertise value Net Book Value (December 31, 2020) Net Book Value (December 31, 2019) Headquarter Building September 2018 179.340.000 178.902.180 178.640.659 Total 179.340.000 178.902.180 178.640.659 Fair value measurement The fair values of property for own use were determined by market comparison technique. The fair value measurement of owner- occupied land and buildings is classified as level 2. As of December 31, 2020, and 2019, there is no mortgage on Company’s tangible assets. 7 Investment properties Additions and disposals for investment properties is given “6- Tangible Assets” note in table of current period movement of tangible assets. Investment properties are presented by fair value method as of December 31, 2020 and 2019 on balance sheet and The Company’s investment properties gained TL 42.930.000 amount of value in 2020 in the context of expertise report prepared by independent professional valuation specialists authorized by Capital Markets Board of Turkey. From investment property, TL 17.841.090 amount of rent income is obtained from investment properties in the current accounting period (December 31, 2019: TL 22.899.496). As of December 31, 2020, inflation adjusted cost and fair value amounts of the Company’s investment properties are amounting to TL 458.821.000 (December 31, 2019: TL 415.891.000). The expertise (excluding VAT) and net book values of investment properties are as follows per real estate. Expertise reports regarding these properties are prepared by independent professional valuation specialists authorized by CMB in December 2020. There is no mortgage on the real estates. Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon Milli Re Annual Report 2020 135