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) It is decided in Ordinary General Assembly Meeting of the Company, held on March 27, 2018, to make a dividend payment of TL 50.000.000 to shareholders and to allocate remaining balance as voluntary reserves from the net period income amounting to TL 103.711.833 from 2017 activities of the Company. Paid dividend amount is reflected to financial statements as liability on the period that is declared by the Company. 39 Cash generated from operations The cash flows from operating activities are presented in the accompanying unconsolidated statement of cash flows. 40 Convertible bonds None. 41 Redeemable preference shares None. 42 Risks “Millî Reasürans Türk Anonim Şirketi Mensupları Yardımlaşma Sandığı Vakfı” was established by Millî Reasürans Türk Anonim Şirketi, in accordance with the Turkish Commercial and Civil Laws which is examined by Tax Audit Committee inspectors due to the Company payments what are fulfilled obligations to the foundation owing to deed of the foundation and the related act. As a result of this investigation, an examination was reported for periods of 2007, 2008, 2009, 2010 and 2011. Legal process has been started for the years 2007, 2008, 2009, 2010, 2011 and the later years and the payment regarding to the revenue authorities was paid. As of the report date, there is no recognized provision. 43 Commitments The Company provides guarantee to ceding companies in the non-life branch as a reinsurance company and transfers insurance risks through treaties, facultative reinsurance contracts and coinsurance agreements to reinsurance and coinsurance companies. The future aggregate minimum lease payments under operating leases for properties rented for use are as follows: December 31, 2018 December 31, 2017 Within one year 2.602.820 1.022.487 Between two to five years 2.602.820 2.044.973 Total of minimum rent payments 5.205.640 3.067.460 44 Business combinations None. Millî Reasürans Annual Report 2018 152 / Unconsolidated Financial Statements and Independent Auditors’ Report