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) Movement in tangible assets in the period from January 1 to December 31, 2017 is presented below: January 1, 2017 Addition Foreign currency translation effect (*) Disposals Revaluation surplus December 31, 2017 Cost: Investment properties (Note 7) 388.265.000 39.136 - - 38.721.864 427.026.000 Buildings for own use 160.287.253 - - - 1.022.747 161.310.000 Machinery and equipment 49.033.797 8.204.174 - (280.754) - 56.957.217 Furniture and fixtures 19.296.491 553.674 57.432 (219.093) - 19.688.504 Land Vehiclesss 1.732.838 734.663 36.629 (609.312) - 1.894.818 Other tangible assets (including leasehold improvements) 22.982.418 922.014 - (417.594) - 23.486.838 Leased tangible assets 3.868.337 - - (10.263) - 3.858.074 645.466.134 10.453.661 94.061 (1.537.016) 39.744.611 694.221.451 Accumulated depreciation: Buildings for own use 95.501 551.265 - (158.435) 488.331 Machinery and equipment 33.541.297 6.486.538 - (270.968) - 39.756.867 Furniture and fixtures 14.303.421 1.563.068 51.125 (217.336) - 15.700.278 Land Vehiclesss 1.077.997 291.152 9.794 (535.228) - 843.715 Other tangible assets (including leasehold improvements) 13.838.190 3.814.142 - (417.595) - 17.234.737 Leased tangible assets 3.868.337 - - (10.263) - 3.858.074 66.724.743 12.706.165 60.919 (1.451.390) (158.435) 77.882.002 Net book value 578.741.391 616.339.449 (*) Foreign currency translation effect resulted from Singapore Branch. The Group’s buildings for own use is valuated over fair value as of December 31, 2018 and 2017 year-end and subjected to valuation in this context. Expertise reports regarding this property are prepared by CMB licenced Property Valuation Company in September 2018. There is no pledge over Company’s buildings for own use. Milli Reasürans, the Company’s buildings for own use is valuated over fair value as of 2018. Expertise reports regarding this property are prepared by independent professional valuation specialists authorized by CMB in September 2018. Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 217