MILLIRE 2021 ANNUAL REPORT

FINANCIAL STATUS 69 MİLLİ RE ANNUAL REPORT 2021 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 2021 FINANCIAL RESULTS The Company’s financial investments are made in accordance with the Asset Investment Guidelines formulated under the provisions of the “Regulation Amending the Regulation on the Financial Structures of Insurance, Reinsurance and Pension Companies” published in the Official Gazette issue 27877 dated 17 March 2011. The Company prefers to invest in liquid instruments with high yield and minimum risk, while part of the portfolio is managed by İş Portföy Yönetimi A.Ş. (İş Asset Management). The Company’s financial results are presented in detail below. Investment Income In relation to the investment portfolio predominantly consisting of time deposits, a high amount of returns was derived on TL time deposit accounts, owing mainly to the deposit rates that were higher in the current period than in the previous year. In addition, the portfolio was used for buying marketable securities that generated coupon and redemption income on these TL and FC assets; as a result, there was an increase in the “income from financial assets” item on a year-on-year basis. In the current period, there was a decline in the “income from disposal of financial assets” with the effect of the lesser amount of mutual funds disposed of. “Valuation of financial assets” increased in connection with the valuation of mutual funds, despite the significant decline in the valuation of TL and FC corporate bonds and bills. Income derived on FC-denominated corporate bonds and Treasury Eurobonds and FC time deposit accounts contributed to the total investment portfolio income, which mainly resulted from the appreciation of USD and Euro against the Turkish lira. In the current period, TL 423,659,936 was recorded in foreign exchange gains due to the fluctuations in exchange rates. There was an increase in the “income from associates” and “income from subsidiaries and joint ventures” items in the reporting period due to the rise in the income derived from the Company’s associate Anadolu Hayat Emeklilik A.Ş. and its subsidiaries Anadolu Anonim Türk Sigorta Şirketi and Miltaş Turizm İnşaat Ticaret A.Ş. due to equity accounting of these companies. There was growth in the “income from land and building” item in connection with TL 91,075,000 rise in the values of the Company’s properties held for investment based on the results of the surveys carried out. (TL) 2021 2020 Change (%) Investment Income 1,353,558,990 685,087,147 97.57 Income from Financial Assets 395,751,183 155,278,239 154.87 Income from Disposal of Financial Assets 38,571,294 48,320,501 (20.18) Valuation of Financial Assets 34,046,169 27,971,300 21.72 Foreign Exchange Gains 423,659,936 94,862,946 346.60 Income from Subsidiaries 87,218,513 65,656,632 32.84 Income from Subsidiaries and Joint Ventures 257,964,520 231,971,961 11.21 Income from Property Plant and Equipment 116,346,333 60,771,090 91.45 Income from Derivative Transactions 1,042 254,478 (99.59)