MILLIRE 2021 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED 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) Net book value of the assets that is exposed to credit risk is shown in the table below. December 31, 2021 December 31, 2020 Cash and cash equivalents (Note 14) (*) 1.940.001.758 1.592.095.625 Financial assets and financial investments with risks on policyholders (Note 11) (**) 1.819.548.720 1.001.292.061 Receivables from main operations (Note 12) 640.389.582 429.575.728 Reinsurer share in outstanding claims reserve (Note 10), (Note 17) 106.787.271 78.871.381 Income accruals 20.728.018 20.892.868 Prepaid taxes and funds (Note 12) - 11.092.252 Other Prepaid Expenses (***) 40.831.453 29.492.569 Other receivables (Note 12) 1.908.875 1.604.433 Other current asset (Note 12) 3.037.253 106.950 Total 4.573.232.930 3.165.267.794 (*) Cash on hands balance amounting to TL 21.528 are not included (December 31, 2020: TL 21.439). (**) Equity shares amounting to TL 104.466.071 are not included (December 31, 2020: TL 157.662.336) (***) TL 37.634.324 is the advance amount given by the Company. (December 31, 2020: TL 26.661.018) December 31, 2021 and 2020, the aging of the receivables from main operations and related provisions are as follows: December 31, 2021 December 31, 2020 Gross amount Provision Gross amount Provision Not past due 553.699.871 - 315.675.462 - Past due 0-30 days 6.577.397 - 50.748.454 - Past due 31-60 days 7.457.025 - 3.510.421 - Past due 61-90 days 234.497 - 9.990.422 - More than 90 days 135.678.569 (63.257.777) 84.707.486 (35.056.517) Total 703.647.359 (63.257.777) 464.632.245 (35.056.517) The movements of the allowances for impairment losses for receivables from main operations during the year are as follows: December 31, 2021 December 31, 2020 Provision for receivables from insurance operations at the beginning of the year 35.056.517 28.638.564 Collections during the period (Note 47) (283.698) - Provisions for doubtful receivables during the period ( Note 47) - 15.299 Foreign currency translation effect (Note 47) 28.484.958 6.402.654 Provision for receivables from insurance operations at the end of the year 63.257.777 35.056.517 The movements of the allowances for impairment losses for other receivables are as follows: December 31, 2021 December 31, 2020 Provision for other receivables at the beginning of the year 832.788 754.788 Collections during the period - - Impairment losses provided during the period (Note 47) 228.541 78.000 Provision for other receivables at the end of the year 1.061.329 832.788 Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset as a result of the imbalance between the Company’s cash inflows and outflows in terms of maturity and volume. 128 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