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) 35 Income Taxes Income tax expense in the accompanying financial statements is as follows: December 31, 2020 December 31, 2019 Corporate tax expense: Corporate tax provision (29.030.769) (37.227.141) Deferred taxes: Origination and reversal of temporary differences 7.274.347 9.740.590 Total income tax expense/(income) (21.756.422) (27.486.551) For the period then ended as of December 31, 2020 and 2019, a reconciliation of tax expense applicable to profit from operating activities before income tax at the statutory income tax rate to income tax expense at the Company’s effective income tax rate is as follows: December 31, 2020 December 31, 2019 Profit before taxes 370.355.330 Tax rate (%) 339.997.165 Tax rate (%) Taxes on income per statutory tax rate 81.478.173 22,00 74.799.376 22,00 Tax exempt income (65.606.193) (17,71) (57.514.265) (16,92) Non-deductible expenses 5.884.442 1,59 10.201.440 3,00 Total tax expense recognized in profit or loss 21.756.422 5,8 7 27.486.55 1 8,08 36 Net foreign exchange gains Net foreign exchange gains are presented in Note 4.2 - Financial Risk Management above. 37 Earnings per share Earnings per share are calculated by dividing net profit of the year to the weighted average number of shares. 2020 2019 Net profit for the period 348.598.908 312.510.614 Weighted average number of shares 66.000.000.000 66.000.000.000 Earnings per share (TL) 0,00528 0,0047 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 153