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 and 2017, bank deposits are further analysed as follows: December 31, 2018 December 31, 2017 Foreign currency denominated bank deposits - time deposits 2.824.786.884 2.292.662.264 - demand deposits 17.017.671 13.068.914 Bank deposits in Turkish Lira - time deposits 2.517.440.747 2.010.231.288 - demand deposits 4.960.595 12.498.752 Bank deposits 5.364.205.897 4.328.461.218 15 Equity Paid in Capital The shareholder having direct or indirect control over the shares of the Company is İş Bankası Group having 76.64% of outstanding shares. As of December 31, 2018 and 2017, the shareholding structure of the Company is presented below: Name December 31, 2018 December 31, 2017 Shareholding amount (TL) Shareholding r ate (%) Shareholding amount (TL) Shareholding rate (%) Türkiye İş Bankası A.Ş. 505.810.925 76,64 505.810.925 76,64 Millî Reasürans T.A.Ş. Mensupları Yardımlaşma Sandığı Vakfı 69.604.854 10,55 69.604.854 10,55 Groupama Emeklilik A.Ş. 38.809.894 5,88 38.809.894 5,88 Ankara Doğal Elektrik Üretim ve Ticaret A.Ş. (*) 22.240.456 3,37 22.240.456 3,37 T.C. Ziraat Bankası A.Ş. 16.430.944 2,49 16.430.944 2,49 Other 7.102.927 1,07 7.102.927 1,07 Paid in capital 660.000.000 100,00 660.000.000 100,00 As of December 31, 2018, the issued share capital of the Group is TL 660.000.000 (December 31, 2017: TL 660.000.000) and the share capital of the Group consists of 66.000.000.000 (December 31, 2017: 66.000.000.000 shares) issued shares with TL 0,01 nominal value each. There are no privileges over the shares of the Group. There are not any treasury shares held by the Group itself or by its subsidiaries or associates. There are not any treasury shares issued which will be subject to sale in accordance with forward transactions and contracts. Equity method consolidation As of December 31, 2018 and 2017, in the accompanying consolidated financial statements of the Group, Anadolu Hayat, 21% and Miltaş, 77% of shares is owned by the Group are consolidated by using the equity method. Legal Reserves The legal reserves consist of first and second legal reserves in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the entity’s share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the entity’s share capital. The first and second legal reserves are not available for distribution unless they exceed 50% of the share capital, but may be used to absorb losses in the event that the general reserve is exhausted. Millî Reasürans Annual Report 2018 Consolidated Financial Statements and Independent Auditors’ Report / 227