MILLIRE ENG2024

2.5 Tangible assets Except buildings for own use, tangible assets are recorded at their historical costs that have been adjusted according to the inflation rates until the end of December 31, 2004. There have been no other inflationary adjustments for these tangible assets for the following years and therefore they have been recorded at their costs indexed to the inflation rates for December 31, 2004. Tangible assets that have been purchased after January 1, 2005 have been recorded at their costs excluding their exchange rate differences and finance expenses less impairment losses if any. By a decision of the Board of Directors dated August 25, 2023, it was resolved that the properties recorded in the Company’s assets for operational and investment purposes would be contributed as capital to its wholly-owned subsidiary, Miltaş Turizm İnşaat Ticaret A.Ş., through a partial division in accordance with Articles 19-20 of the Corporate Tax Law and Articles 159-179 of the Turkish Commercial Code, based on VUK financial statements. It was also decided that the shares to be issued as a result of this capital increase would be allocated to the Company. As of December 31, 2023, the fair value of the transferred properties is 4,613,156,000 TL. Buildings for own use are recognized by fair value that are determined in valuations made by independent valuation experts who have professional competency by reducing their values accumulated depreciation. Accumulated depreciation at the date of revaluation is deducted from gross book value and net amount is brought to values after revaluation. Increases in the carried values of land and buildings intended for use as a result of revaluation are recorded to the “Other Capital Reserves” account, which are included under equity in the balance sheet, with tax effects Decoupled. As a result of real estate-based assessments, value decreases corresponding to their increases in the previous period are deducted from the fund in question; all other decreases are reflected in profit/loss accounts. Gains and losses arising from the disposal of property, plant and equipment are calculated as the difference between the net proceeds from the disposal and the net carrying amount of the related property, plant and equipment and are reflected in the income statement of the relevant period Dec Land is not depreciated due to its indefinite life. Depreciation is allocated based on the useful life of tangible assets at cost or revalued amounts of tangible assets by using the straight-line method basis. Normal maintenance and repair expenses incurred on tangible fixed assets are recognized as expenses. There are no pledges, mortgages and similar obligations on tangible fixed assets. There are no changes in accounting estimates that have a significant impact on the current period or are expected to have a significant impact on subsequent periods. The related depreciation shares for tangible fixed assets are calculated using the linear depreciation method based on their useful lives and cost values. The rates used for the depreciation of tangible fixed assets and the periods projected as the estimated economic life are as follows: Tangible Assets Estimated economic life (Years) Depreciation percentage (%) Properties intended for use 50 2,0 Fixtures and installations 3 - 16 6,3 - 33,3 Machinery and equipment 3 - 16 6,3 - 33,3 Motor vehicles 5 20,0 Other tangible assets (including special cost charges) 5 - 10 10,0 - 20,0 Tangible fixed assets acquired through Financial leasing 1- 10 10,0 - 100,0 2.6 Investment property Investment properties are held either to earn rentals and/or for capital appreciation or for both. Investment properties are initially recorded at cost and subsequently measured at their fair values. The changes which result of fair value valuation recognised in the income statement. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the period of retirement or disposal. Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The fair value on the date of change in the usage is considered as cost in the reclassification recognition when investment property that measured with fair value is reclassified as a tangible asset. 200 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Notes to the Consolidated Financial Statements As of December 31, 2024 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish) MİLLİ RE