MILLI RE 2023 ANNUAL REPORT

(TL) 2023 2022 Change (%) Investment Income 7,817,832,550 3,067,317,755 154.88 Income from Financial Assets 361,117,238 459,394,897 (21.39) Income from Disposal of Financial Assets 399,078,515 115,496,788 245.53 Valuation of Financial Assets 30,178,754 147,115,807 (79.49) Foreign Exchange Gains 1,593,897,170 407,982,385 290.68 Income from Subsidiaries 355,585,374 173,412,281 105.05 Income from Subsidiaries and Joint Ventures 3,367,901,023 598,440,531 462.78 Income from Property Plant and Equipment 1,596,134,475 1,137,381,257 40.33 Income from Derivative Transactions 113,940,001 25,351,060 349.45 Other Investments - 2,742,749 - 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 as of 31 December 2023. In the period from 01 January to 31 December 2023, the highest amount of return was obtained from FC securities and FC demand and time deposits due to the predominant effect of the increase in exchange rates. The investment instruments with the highest rate of return were FC mutual funds and FC demand deposits. Compared to the previous year, the main factor affecting the decrease in “income from financial investments” was the fact that coupon and redemption income on FC securities has yet to be collected although part of the investments in TL corporate bonds and TL time deposits was converted into FC securities investments. On the other hand, in 2023, there was an increase in “gains on liquidation of financial investments” due to the increase in mutual fund sales income. The decrease in the “Valuation of Financial Investments” item in the comparison period resulted mainly from the decline in the amount of the valuation of mutual funds because the company had less mutual funds in its investment portfolio in 2023 as compared to 2022. Due to the appreciation of USD and Euro against TL, income from FC- denominated investment instruments and deposit accounts contributed significantly 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 1,593,897,170 was recorded. In the current period, income from Anadolu Hayat Emeklilik A.Ş. increased by TL 182,173,093 and income from Anadolu Anonim Türk Sigorta Şirketi increased by TL 2,730,389,626 as a result of the equity method of accounting of the company’s associates and subsidiaries. The company’s investment properties were transferred to Miltaş Tur. İnş. Tic. A.Ş. in 2023 by way of partial demerger. Due to the transfer, the income derived on Miltaş Tur. İnş. Tic. A.Ş. increased by TL 39,070,866 in 2023 within the frame of the deferred tax assets that descended in the balance sheet. The increase in the value of the company’s investment properties amounting to TL 1.1 billion in 2022 and TL 1.5 billion in 2023 for which transfer expired on 11 December 2023 predominantly affected the growth in “Income from Land, Land Improvements and Buildings”. The rise in the current year in the “Income from Derivative Instruments” account resulted mainly from the increased income on FC-protected TL deposits. 2023 FINANCIAL RESULTS 73 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