MILLI RE 2023 ANNUAL REPORT

Notes to the Consolidated Financial Statements As of December 31, 2023 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) 32 Operating expenses For the years ended December 31, 2023, and 2022, the operating expenses are disclosed as follows: January 1 - December 31, 2023 January 1 - December 31, 2022 Commission expenses (Note 17) 5.378.572.740 2.612.265.552 Commissions to the intermediaries accrued during the period (Note 17) 7.203.074.077 3.732.510.952 Changes in deferred commission expenses (Note 17) (1.824.501.337) (1.120.245.400) Employee benefit expenses (Note 33) 1.718.351.422 817.994.326 Foreign exchange losses 1.367.257.032 266.284.991 Administration expenses 941.357.175 479.387.228 Commission income from reinsurers (Note 10) (991.873.822) (528.465.603) Commission income from reinsurers accrued during the period (Note 10) (1.289.418.860) (672.229.232) Change in deferred commission income (Note 10) 297.545.038 143.763.629 Advertising and marketing expenses 145.187.404 66.852.766 Outsourced benefits and services 258.372.441 60.577.789 Commission expenses from reinsurance transactions (Note 10) 685.637.036 450.968.252 Commissions from reinsurance transactions during the period (Note 10) 785.270.303 543.172.976 Change in deferred reinsurance commission expenses (Note 10) (99.633.267) (92.204.724) Other 106.409.011 39.740.410 Total 9.609.270.439 4.265.605.711 33 Employee benefit expenses As of December 31, 2023, and 2022, employee benefit expenses are disclosed as follows: January 1 - December 31, 2023 January 1 - December 31, 2022 Wages and salaries 1.194.659.462 573.362.338 Employer’s share in social security premiums 367.773.413 174.650.068 Pension fund benefits 50.504.823 16.587.462 Other 105.413.724 53.394.458 Total (Note 32) 1.718.351.422 817.994.326 34 Financial costs As of December 31, 2023, interest expense arising from the leases that the Group has subject to TFRS 16 Leasing Standards amounting to TL 24.690.351 (31 December 2022: 16.386.267 TL) has accounted under “Investment Management Expenses - Including Interest”; amortization expense amounting to TL 31.070.947 has been accounted under “Depreciation and Amortization Expense” accounts (January 1 - December 31, 2022: 15.546.272). As of December 31, 2023, discounted repayment plans for the Group’s operating leases are as follows (December 31, 2022: TL 81.165.780): Operating lease repayments -TL Up to 1 year 32.390.854 1 - 2 years 38.503.656 2 - 3 years 19.945.926 3 - 4 years 23.934.707 4 - 5 years 29.519.871 Over 5 years - Total 144.295.014 244 MİLLİ RE