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) The movements of legal reserves are as follows: December 31, 2021 December 31, 2020 Legal reserves at the beginning of the period 194.945.022 155.933.995 Transfer from profit 31.764.366 39.011.027 Legal reserves at the end of the period 226.709.388 194.945.022 As of December 31, 2021, and 2020, “Other Reserves and Retained Earnings” includes extraordinary reserves, sales profits to be capitalized and buildings for own use revaluation differences. As at December 31, 2021 and 2020, “Other Reserves and Retained Earnings” are detailed as below: December 31, 2021 December 31, 2020 Other profit reserves 21.913.243 23.673.789 Extraordinary reserves 823.206.149 692.870.924 Other capital reserves 220.553.428 167.674.813 Sales profits to be capitalized 24.729.869 24.431.260 Other earnings and losses (5.965.389) (4.294.111) Private funds (71.060.154) (71.060.154) Subsidiary capital correction 57.074.903 16.900.903 Total 1.070.452.049 850.197.424 Other capital reserves According to TAS 16 - “Property Plant and Equipment”, property, plant and equipment are initially recorded at cost and can be subsequently measured at their fair values. The Company has started to show based on the revaluation model by measuring over fair value as of the third quarter of 2015 by making changes in the use of the property which is measuring the cost model in the financial statements before. In accordance with tax legislation, 75% of profits from sales of participation shares and 50% of profits from sales real estates included in the assets of companies is exempt from corporate tax provided that it is classified under a special fund for full five years. The exempt gains cannot be transferred to another account other than a capital increase or cannot be withdrawn from the entity for five years. Anadolu Sigorta, As of December 31, 2021, the tax exempt which obtained thanks to sale of participation shares and real estate in 2010, 2011, 2013, 2014, 2015, 2016 and 2017 years respectively, amounting to TL 8.081.516, TL 80.025, TL 647.763, TL 920.272, TL 2.541.500, TL 15.094 and TL 838.049 and real estate revaluation funds of 2018, 2019, 2020 and 2021 the profit not subject to distribution for 2018, 2019, 2020 and 2021 are classified as other capital reserves. Milli Reasürans, according to expertise reports, fair value of property for use is calculated as TL 234.955.000 and revaluation differences amounting to TL 218.374.872 is recognized in ‘Other Capital Reserves’ account under equity as TL 196.537.385 with net tax effect in financial statements As of December 31, 2021 (December 31, 2020: TL 146.070.394). As of 31 December 2020, Non- Distributable Profit amount recognized according to the equity method is TL 24.016.043. (December 31, 2020: TL 21.604.419). 236 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