MILLIRE 2021 ANNUAL REPORT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2021 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) 32 Operating expenses For the years ended December 31, 2021 and 2020, the operating expenses are disclosed as follows: December 31, 2021 December 31, 2020 Commission expenses (Note 17) 1.481.038.028 1.157.562.296 Commissions to the intermediaries accrued during the period (Note 17) 1.740.351.880 1.256.127.553 Changes in deferred commission expenses (Note 17) (259.313.852) (98.565.257) Employee benefit expenses (Note 33) 412.355.419 326.590.288 Foreign exchange losses 162.979.104 100.278.632 Administration expenses 207.179.776 151.872.827 Commission income from reinsurers (Note 10) (318.903.340) (261.111.864) Commission income from reinsurers accrued during the period (Note 10) (385.906.303) (287.174.537) Change in deferred commission income (Note 10) 67.002.963 26.062.673 Advertising and marketing expenses 29.783.284 15.465.393 Outsourced benefits and services 35.188.441 29.339.763 Commission expenses from reinsurance transactions (Note 10) 220.024.696 194.928.710 Commissions from reinsurance transactions during the period (Note 10) 255.314.358 202.814.621 Change in deferred reinsurance commission expenses (Note 10) (35.289.662) (7.885.911) Other 14.188.953 10.198.239 Total 2.243.834.361 1.725.124.284 33 Employee benefit expenses As of December 31, 2021, and 2020, employee benefit expenses are disclosed as follows: December 31, 2021 December 31, 2020 Wages and salaries 295.557.164 233.992.274 Employer’s share in social security premiums 87.269.226 66.754.858 Pension fund benefits 7.137.463 6.743.408 Other 22.391.566 19.099.748 Total (Note 32) 412.355.419 326.590.288 34 Financial costs As of December 31, 2021, interest expense arising from the leases that the Group has subject to TFRS 16 Leasing Standards amounting to TL 12.848.980 has accounted under “Investment Management Expenses - Including Interest”; amortization expense amounting to TL 9.277.263 has been accounted under “Depreciation and Amortization Expense” accounts (January 1 - December 31, 2020: 7.935.328). As of December 31, 2021, discounted repayment plans for the Group’s operating leases are as follows (December 31, 2020: 58.754.871): Operating lease repayments -TL Up to 1 year 7.268.119 1 - 2 years 5.014.672 2 - 3 years 6.200.070 3 - 4 years 7.744.237 4 - 5 years 9.629.489 Over 5 years 26.854.678 Total 62.711.265 248 MİLLÎ REASÜRANS ANNUAL REPORT 2021 ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RESEARCH & DEVELOPMENT ACTIVITIES