MILLIRE 2021 ANNUAL REPORT

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2021 Millî Reasürans Türk Anonim Şirketi (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) (Currency: Turkish Lira (TL)) 32 Operating expenses As of December 31, 2021, and 2020, the operating expenses are disclosed as follows: December 31, 2021 December 31, 2020 Life Non-Life Life Non-Life Commission expenses (Note 17) 1.643.480 496.184.109 11.053.130 387.829.656 Commissions to the intermediaries accrued during the period (Note 17) (2.331.747) 580.779.381 12.443.367 399.522.378 Changes in deferred commission expenses (Note 17) 3.975.227 (84.595.272) (1.390.237) (11.692.722) Employee benefit expenses (Note 33) 562.370 75.108.617 873.527 64.273.901 Foreign exchange losses 674.908 162.304.196 177.897 100.100.735 Administration expenses 219.627 25.380.454 317.704 20.929.747 Commission income from reinsurers (Note 10) - (8.838.442) - (4.306.330) Commission income from reinsurers accrued during the period (Note 10) - (10.175.548) - (6.048.624) Change in deferred commission income (Note 10) - 1.337.106 - 1.742.294 Outsourced benefits and services 67.763 7.297.745 114.363 7.078.286 Other 35.542 14.153.408 40.286 10.157.952 Total 3.203.690 771.590.087 12.576.907 586.063.947 33 Employee benefit expenses As of December 31, 2021, and 2020, employee benefit expenses are disclosed as follows: December 31, 2021 December 31, 2020 Life Non-Life Life Non-Life Wages and salaries 397.726 56.044.640 623.085 47.827.749 Employer’s share in social security premiums 102.038 11.989.120 146.993 9.806.193 Pension fund benefits 62.606 7.074.857 103.449 6.639.959 Total (Note 32) 562.370 75.108.617 873.527 64.273.901 34 Financial costs As of December 31, 2021, TL 53.257 (1 January - 31 December 2020 : 78.988) interest expense arising from leases that the Company is subject to TFRS 16 Leasing Transactions standard is recognised under “Investment Management Expenses - Interest Included” account; and the depreciation expense amounting to TL 2.205.045 is recognised under the “Depreciation and Amortization Expense” accounts (1 January - 31 December 2020: 1.657.154). 35 Income Taxes Income tax expense in the accompanying financial statements is as follows: December 31, 2021 December 31, 2020 Corporate tax expense: Corporate tax provision (128.897.591) (29.030.769) Deferred taxes: Origination and reversal of temporary differences 23.899.257 7.274.347 Total income tax expense/(income) (104.998.334) (21.756.422) 155 MİLLÎ REASÜRANS ANNUAL REPORT 2021 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