MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED 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) 5 Segment information A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. Business segment Financial information of the Group is presented on life and non-life basis in the accompanying consolidated financial statements. Geographical segment The main geographical segment which the Group operates is Turkey. Hence, the Group has not disclosed report on geographical segments. 6 Tangible assets Movement in tangible assets in the period from January 1 to December 31, 2018 is presented below: January 1, 2018 Addition Foreign currency translation effect (*) Disposals Transfers Revaluation surplus December 31,  2018 Cost: Investment properties (Note 7) 427.026.000 1.174.094 - - - 27.520.906 455.721.000 Buildings for own use 161.310.000 25.370 - - - 32.960.630 194.296.000 Machinery and equipment 56.957.217 25.839.164 - (1.779.631) (186.436) - 80.830.314 Furniture and fixtures 19.688.504 1.248.487 355.977 (720.254) - - 20.572.714 Land Vehiclesss 1.894.818 2.466.399 215.830 (528.558) - - 4.048.489 Other tangible assets (including leasehold improvements) 23.486.838 2.401.622 - (70.323) 186.436 - 26.004.573 Leased tangible assets 3.858.074 - - - - - 3.858.074 694.221.451 33.155.136 571.807 (3.098.766) - 60.481.536 785.331.164 Accumulated depreciation: Buildings for own use 488.331 624.497 - - (897.420) 215.408 Machinery and equipment 39.756.867 10.774.145 - (1.698.998) (48.509) - 48.783.505 Furniture and fixtures 15.700.278 1.514.223 334.603 (670.396) - - 16.878.708 Land Vehiclesss 843.715 422.723 91.626 (483.872) - - 874.192 Other tangible assets (including leasehold improvements) 17.234.737 3.704.710 - (70.323) 48.509 - 20.917.633 Leased tangible assets 3.858.074 - - - - 3.858.074 77.882.002 17.040.298 426.229 (2.923.589) - (897.420) 91.527.520 Net book value 616.339.449 693.803.644 (*) Foreign currency translation effect resulted from Singapore Branch. Millî Reasürans Annual Report 2018 216 / Consolidated Financial Statements and Independent Auditors’ Report