MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) The company has demonstrated impacts of amendments, related to communique numbered 2017/07, published by Ministry of Treasury and Finance of Republic of Turkey- General Directorate of Insurance and retrospective impacts of amendments, which are made through using equity method, defined in TAS 27 “Consolidated and Separate Financial Statements”: Restatement of the detailed balance sheet as of December 31, 2017: Detailed Balance Sheet Previously Reported Restated Effect (*) December 31, 2017 December 31, 2017 B- Financial Assets and Investments with Risks on Policy Holders 485.566.843 451.080.848 (34.485.995) B 1- Financial Assets Available for Sale 492.521.383 458.035.388 (34.485.995) B I- Total Current Assets 2.012.824.832 1.978.338.837 (34.485.995) B D- Financial Assets 883.667.032 663.651.785 (220.015.247) B 2- Affiliates - 116.391.717 116.391.717 B 4- Subsidiaries 883.667.032 547.260.068 (336.406.964) B II- Total Non-current Assets 1.421.180.876 1.201.165.629 (220.015.247) B Total Assets 3.434.005.708 3.179.504.466 (254.501.242) B B- Capital Reserves 112.341.037 129.183.342 16.842.305 B 5- Other Capital Reserves 117.058.884 133.901.189 16.842.305 B C- Profit Reserves 714.872.855 376.873.982 (337.998.873) B 1- Legal Reserves 64.131.019 104.684.305 40.553.286 B 2- Statutory Reserves - 14.966.866 14.966.866 B 3- Extraordinary Reserves 86.192.951 179.927.411 93.734.460 B 5- Revaluation of Financial Assets 565.916.100 52.911.798 (513.004.302) B 6- Other Profit Reserves (1.367.215) 24.383.602 25.750.817 B D- Previous Years’ Profits 250.643.385 217.988.199 (32.655.186) B 1- Previous Years’ Losses 250.643.385 217.988.199 (32.655.186) B F- Net Profit of the Period 103.711.833 203.022.345 99.310.512 B 1- Net Profit of the Period 103.711.833 203.022.345 99.310.512 B Total Shareholders’ Equity 1.841.569.110 1.587.067.868 (254.501.242) B Total Liabilities and Shareholders’ Equity 3.434.005.708 3.179.504.466 (254.501.242) B (*) The effects of the restatements are described in paragraphs A and B below. Restatement of the detailed income statement as of January 1 to December 31, 2017 Detailed Income Statement Previously Reported Restated Effects (*) January 1 - January 1 - December 31, 2017 December 31, 2017 K- Investment Income 278.847.204 378.157.716 99.310.512 B 1- Income From Financial Investment 139.201.432 137.801.432 (1.400.000) B 5- Income from Affiliates - 28.233.340 28.233.340 B 6- Income from Subsidiaries and Joint Ventures 17.197.550 89.674.722 72.477.172 B N- Net Profit/ (Loss) 103.711.833 203.022.345 99.310.512 B 1- Profit/(Loss) Before Tax 147.843.233 247.153.745 99.310.512 B 3- Net Profit (Loss) 103.711.833 203.022.345 99.310.512 B Millî Reasürans Annual Report 2018 104 / Unconsolidated Financial Statements and Independent Auditors’ Report