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) As of December 31, 2018, the fair values (excluding VAT) and net carrying values of buidings for own use are presented below: Owner occupied land and buildings Expertise date Expertise value Net Book Value (December 31, 2018) Net Book Value (December 31, 2017) Headquarter September 2018 179.340.000 179.200.132 147.436.357 İzmir Regional Headquarter September 2018 7.600.000 7.557.233 7.494.105 Adana Regional Headquarter September 2018 1.895.000 1.888.815 1.833.762 Lefkoşe Cyprus Branch September 2018 4.150.000 4.135.509 2.774.620 Adana Office September 2018 300.000 298.454 424.709 Other September 2018 1.011.000 1.000.449 858.115 Total 194.296.000 194.080.592 160.821.668 Fair value measurement The fair values of self-used land and buildings were determined by market comparison technique. The fair value measurement of owner occupied land and buildings is classified as Level 2. As of December 31, 2018 and 2017, there is no mortgage on Group’s tangible assets. 7 Investment properties Additions and disposals for investment properties is given “6- Tangible Assets” note in table of current period movement of tangible assets. Investment properties are started to be presented by fair value method as of December 31, 2017 and 2018 on balance sheet and the Company’s investment properties gained TL 27.520.906 amount of value in 2018 in the context of expertise report prepared by independent professional valuation specialists authorized by Capital Markets Board. For the year ended December 31, 2018, the Group has rental income from investment properties amounting to TL 21.673.905 (December 31, 2017: TL 18.597.963). As of December 31, 2018, inflation adjusted cost and carrying amounts of the Company’s investment properties are amounting to TL 455.721.000 (December 31, 2017: TL 427.026.000) Property based value of expertise report (excluding VAT) and fair values of investment properties are as follows. Expertise reports regarding these properties are prepared by independent professional valuation specialists authorized by CMB in September 2018. There is no mortgage on Group’s investment properties. As of December 31, 2018 and 2017, details of investment properties and the fair values are as follows: December 31, 2018 Net book value December 31, 2017 Net book value Date of expertise report Value of expertise report Operating Center Rental Offices 189.260.000 180.500.000 September 2018 189.260.000 Suadiye Fitness Center 36.175.000 36.175.000 September 2018 36.175.000 Tunaman Garage 121.500.000 105.000.000 September 2018 121.500.000 Villa Office Block 45.100.000 44.300.000 September 2018 45.100.000 Çifteler Land 6.000 6.000 September 2018 6.000 Other buildings 63.680.000 61.045.000 September 2018 63.680.000 Net book value 455.721.000 427.026.000 455.721.000 Fair value measurement The fair values of investment properties were determined by market comparison technique. The fair value measurement of owner occupied land and buildings is classified as Level 2. Millî Reasürans Annual Report 2018 218 / Consolidated Financial Statements and Independent Auditors’ Report