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) Lease liabilities The company measures the lease liability based on the present value of the lease payments that were not paid at the actual start of the lease. The lease payments, which are included in the measurement of the lease liability at the actual start of the lease, consist of the following payments to be made for the right of use of the underlying asset during the lease term and which were not paid at the actual start of the lease: (a) fixed payments, (b) variable lease payments based on an index or ratio, the first measurement of which was made using an index or ratio at the actual beginning of the lease, (c) amounts expected to be paid by the company under residual value commitments (d) if the company is reasonably confident that it will exercise the option to purchase, the price at which the option is used and (e) penalty payments for termination of the lease if the lease term indicates that the company will exercise an option to terminate the lease. Variable lease payments that are not linked to an index or ratio are recorded as expenses in the period in which the event or condition that triggered the payment occurs The company sets the revised discount rate for the remainder of the lease period as this rate if the implied interest rate on the lease can be easily determined; if it cannot be easily determined as the alternative borrowing rate at the date of the company’s reassessment. After the actual start of the lease, the company measures the lease liability as follows: (a) increases the book value to reflect the interest on the lease obligation, and (b) reduces the book value to reflect the lease payments made. In addition, a change in the fixed lease payments is essentially the lease or a change in the assessment of the option to purchase the underlying asset in case of a change in the value of finance lease liabilities is measured again. Right-of-use assets calculated regarding to lease liabilities are accounted in “Tangible Assets” located in balance sheet. Interest expense on lease liabilities and depreciation expense of right-of-use asset are accounted in “Investment Management Expenses (inc. interest)” and “Depreciation and Amortisation Expenses” respectively. Information on the duration of the operating leases and discount rates applied are as follows: Assets subject to operational leasing Contract Period (Year) Discount Rate - TL (%) Buildings 10 years 5,25-24,42 2.23 Dividend distribution It is decided in Ordinary General Assembly Meeting of the Company held on March 30, 2021, from the net profit of the period amounting to TL 348.598.908 resulting from the activities of the Company for the year 2020, TL 43.000.000 will be paid to the shareholders as cash dividends, after the legal reserves are set aside, and the remaining amount will be paid to the shareholders according to the Tax Procedure Law. Within the framework of the provisions of Article 325/A of the Law and Article 10 of the Corporate Tax Law, it has been decided to allocate TL 17.000.000 of funds for the purchase of venture capital investment fund participation shares, and the remaining amount will be set aside as previous year’s profit, and TL 42.986.569 of it. paid in cash and TL 13.431 has been recognized in due to shareholders account under short term liabilities. Circular No. 2016/22 Amending the Circular No. 2016/22 on the Discounting of Net Cash Flows Arising from Outstanding Claims Provisions published on December 30, 2021(2021/30) and Article 7 of the Circular No. 2016/22, has been changed to “Net cash flows as of the financial reporting period date It is discounted to the cash value, taking into account the rate of 14%.”. Due to the related change, 14% rate has been taken into account in discounting the net cash flows arising from outstanding claims provision. Added to the 13th article of the same circular, “The positive difference arising within the scope of changing the discount rate in this direction cannot be used for a year following the year in which the change was made.” Due to the statement, the positive difference of TL 77.595.800 in the discount amount as of December 31, 2021 shall not be used in the profit distribution. 198 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