MILLIRE 2021 ANNUAL REPORT

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 70 MİLLİ RE ANNUAL REPORT 2021 2021 FINANCIAL RESULTS Investment Expenses There was a decline in the “loss from disposal of financial assets” item due to the lesser amount of mutual funds disposed of in the current period. Depreciation costs increased since the amortization costs were incurred for 10 months in the previous period and for 12 months in the current period due to the fact that the reinsurance software was activated in March 2020. “Other investment expenses” increased in conjunction with the increased expenses subject to expenditure tax. Due to the fluctuations in foreign exchange rates, currency loss in the amount of TL 23,195,899 was registered in the current period. (TL) 2021 2020 Change (%) Investment Expenses (865,902,058) (368,475,610) 135.00 Investment Management Expenses – (Incl. Interest) (53,257) (78,988) (32.58) Loss from Disposal of Financial Assets (498,511) (1,586,173) (68.57) Investment Income Transferred to Non‑life Technical Account (795,304,266) (316,455,994) 151.32 Foreign Exchange Losses (23,195,899) (20,493,502) 13.19 Depreciation and Amortization Expenses (19,469,027) (16,136,886) 20.65 Other Investment Expenses (27,381,098) (13,724,067) 99.51 Income and Expenses from Other and Extraordinary Operations Although there was an increase in the “deferred tax assets account” due to the higher amount of deferred tax income generated mainly because of the rise in equalization reserve, unexpired risk reserves and provision for pension fund deficits, the reserves account was negatively affected by the increased evaluation amount of doubtful receivables arising from the Company’s main operations as a result of increased exchange rates and the rise in the provision for pension fund deficits. As a result, there was a decline in the “income and expenses from other and extraordinary operations” item. (TL) 2021 2020 Change (%) Income and Expenses From Other and Extraordinary Operations (30,947,807) (1,457,582) 2,023.23 Provisions (62,599,328) (21,990,214) 184.67 Rediscounts (1,091,600) 495,757 - Deferred Taxation (Deferred Tax Assets) 23,899,257 7,274,347 228.54 Other Income 8,945,526 12,788,554 (30.05) Other Expenses and Losses (101,662) (26,026) 290.62 Corporate Tax Liability Provision on Period Profit The rise in the corporate tax liability provision basically stems from financial profit (profit according to Tax Procedure Law), which was higher in the current period as compared to the previous year, and the increased corporate tax rate. As a result, the Company posted a net profit of TL 548,965,648 in 2021.