MILLI_RE_ANNUAL REPORT 2022

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 The investment portfolio is mainly comprised of FC securities and TL time deposits. In the current year, the highest amount of return was obtained from FC securities and TL time deposits due to the predominant effect of the increase in exchange rates. Compared to the previous year, the main factor affecting the increase in “income from financial investments” was the increase in redemption income from TL securities. In the current period, there was an increase in “gains on liquidation of financial investments” due to the increase in mutual fund sales income as well as the sales of TL denominated government bonds. The “valuation of financial investments” item increased due to the valuation of mutual funds and TL and FC securities despite the decline in the valuation of time deposits. Due to the appreciation of USD and Euro against TL, income from FC-denominated Treasury and private sector Euro bonds, FC mutual funds and FC deposit accounts contributed to the total investment portfolio return. As a result of the fluctuations in foreign exchange rates in the current year, a foreign exchange gain of TL 407,982,385 was recorded. In the current period, income from Anadolu Hayat Emeklilik A.Ş. increased by TL 86,193,768 and income from Anadolu Anonim Türk Sigorta Şirketi increased by TL 341,217,123 as a result of the equity method of accounting of the Company’s associates and subsidiaries. The increase in the value of the Company’s investment properties amounting to TL 1,100 million as a result of the appraisal studies mainly contributed to the growth in “income from land, land improvements and buildings”. In the prior period, lesser value increases were recorded. In the current year, the conversion of USD denominated time deposits into “currency-protected deposits” and the recognition of this investment instrument as a derivative product had a significant impact on the balance in “income from derivative instruments”. (TL) 2022 2021 Change (%) Investment Income 3,067,317,755 1,353,558,990 126.61 Income from Financial Assets 459,394,897 395,751,183 16.08 Income from Disposal of Financial Assets 115,496,788 38,571,294 199.44 Valuation of Financial Assets 147,115,807 34,046,169 332.11 Foreign Exchange Gains 407,982,385 423,659,936 (3.70) Income from Subsidiaries 173,412,281 87,218,513 98.83 Income from Subsidiaries and Joint Ventures 598,440,531 257,964,520 131.99 Income from Property Plant and Equipment 1,137,381,257 116,346,333 877.58 Income from Derivative Transactions 25,351,060 + Other Investments 2,742,749 1,042 263,119.67 2022 Financial Results 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 77 MİLLİ RE 2022 ANNUAL REPORT