MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE CONSOLIDATED 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) Exposure to foreign currency risk A 20 percent depreciation of the TL against the following currencies as of December 31, 2020 would have increased or decreased equity and profit or loss (excluding tax effects) by the amounts shown below (December 31, 2019: 20 percent depreciation of the TL). This analysis assumes that all other variables, in particular interest rates, remain constant. In case of a 20 percent appreciation of the TL against the following currencies, the effect will be in opposite direction. December 31, 2020 December 31, 2019 Profit or loss Equity (*) Profit or loss Equity (*) US Dollar 122.993.902 122.993.902 86.257.371 86.257.371 Euro (6.405.005) (6.405.005) (11.740.533) (11.740.533) Others 5.951.625 5.951.625 8.624.769 8.624.769 Total, net 122.540.522 122.540.522 83.141.607 83.141.607 (*) Equity effect also includes profit or loss effect of 20% depreciation of TL against related currencies (December 31, 2019: 20% depreciation of TL). The principal risk to which non-trading portfolios are exposed is the risk of loss from fluctuations in the future cash flows or fair values of financial instrument because of a change in market interest rates. Interest rate risk is managed principally through monitoring interest rate gaps and by having pre-approved limits for repricing bands. As at reporting date; the interest rate profile of the Group’s interest earning financial assets and interest bearing financial liabilities are detailed as below: December 31, 2020 December 31, 2019 Financial assets Financial assets with fixed interest rates: 8.338.748.369 6.756.715.734 Cash at banks (Note 14) (*) 4.007.128.416 5.768.417.484 Available for sale financial assets - Private sector bonds (Note 11) 1.915.793.014 398.650.528 Available for sale financial assets - Government bonds (Note 11) 926.457.441 282.705.065 Cash deposited to insurance and reinsurance companies (Note 12) 397.198.168 293.628.897 F.V. held to maturity - government debt securities (Note 11) 322.276.101 Held for trading financial assets - other (Note 11) 54.114.245 13.313.760 Held-to-maturity financial assets - private sector debt securities (Note 11) 715.780.984 - Financial assets with variable interest rate: 363.728.340 159.495.590 Available for sale financial assets - Private sector bonds (Note 11) 340.231.872 134.156.068 Available for sale financial assets - Government bonds (Note 11) 23.496.468 25.339.522 Financial liabilities: Financial liabilities with fixed interest rate: 58.754.871 117.648.540 Payables from operating leases (Note 34) 58.754.871 58.175.787 Expense Accruals From Derivative Contracts (Note 20) - 59.472.753 (*) Demand deposits amounting to TL 90.349.000 are not included (December 31, 2019: TL 35.118.527). Fair value information The estimated fair values of financial instruments have been determined using available market information, and where it exists, appropriate valuation methodologies. The Group has classified its financial assets as held for trading or available for sale, As at the reporting date, available for sale financial assets and financial assets held for trading are measured at their fair values based on their quoted prices or fair value information obtained from brokers in the accompanying consolidated financial statements. Group management estimates that the fair value of other financial assets and liabilities are not materially different than their carrying values. 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 213