MILLI RE 2023 ANNUAL REPORT

Oil prices fluctuated throughout the year due to the rises in the production and stocks of major oil producing countries like the US, coupled with the weak demand outlook, despite the supply cut decisions of Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ group that additionally includes other oil-producing countries that preceded the tension in the Middle East. Although Brent crude oil price per barrel went down to as low as USD 73.3 in December as a result of the concerns over global demand, it ended the year at the order of USD 77.1 parallel to increased supply-side risks due to the tensions in the Red Sea. While the potential hike in oil and other commodity prices in the event of aggravated tensions constitutes an upside risk on the inflation outlook, it also leads to concerns regarding supply security. In its World Economic Outlook released in January 2024, the IMF estimates that global economic growth that was 3.5% in 2022 slowed down somewhat to 3.1% in 2023 owing to the higher-than- expected resilience of the US and some major developing economies, and the support mechanisms in China. The IMF projects growth at 3.1% for 2024 and 3.2% for 2025. With inflation still making its headline issue in 2023, the Turkish economy was affected by a number of negative events including the decelerated global economy, weakened primary export markets and the devastating earthquakes in February. Having registered an economic growth performance that converged on its long-term average with the support lent by consumption expenditure despite losing some momentum due to the earthquake disaster that occurred in the first quarter of 2023, the Turkish economy attained 4% growth. Having expanded 3.9% in the second quarter of 2023, the national economy’s growth was driven by consumption outlays, which were propped by the recovery in investment outlays. The highlights of the said period included the growth largely restrained by net exports, the 4% HAVING REGISTERED AN ECONOMIC GROWTH PERFORMANCE THAT CONVERGED ON ITS LONG-TERM AVERAGE WITH THE SUPPORT LENT BY CONSUMPTION EXPENDITURE DESPITE LOSING SOME MOMENTUM DUE TO THE EARTHQUAKE DISASTER THAT OCCURRED IN THE FIRST QUARTER OF 2023, THE TURKISH ECONOMY ATTAINED 4% GROWTH. 45 GENERAL INFORMATION FINANCIAL RIGHTS PROVIDEDTOTHE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION 2023 Annual Report RISKS AND ASSESSMENT OF THE GOVERNING BODY