MILLI_RE_ANNUAL REPORT 2022

As of December 31, 2022, the issued share capital of the Group is TL 660.000.000 (December 31, 2021: TL 660.000.000) and the share capital of the Group consists of 66.000.000.000 (December 31, 2021: 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, 2022, and 2021, in the accompanying consolidated financial statements of the Group, Anadolu Hayat, 21% and Miltaş, 100% 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. The movements of legal reserves are as follows: December 31, 2022 December 31, 2021 Legal reserves at the beginning of the period 226.709.388 194.945.022 Transfer from profit 35.103.086 31.764.366 Legal reserves at the end of the period 261.812.474 226.709.388 As of December 31, 2022, and 2021, “Other Reserves and Retained Earnings” includes extraordinary reserves, sales profits to be capitalized and buildings for own use revaluation differences. As at December 31, 2022 and 2021, “Other Reserves and Retained Earnings” are detailed as below: December 31, 2022 December 31, 2021 Other profit reserves 22.613.013 21.913.243 Extraordinary reserves 1.055.949.776 823.206.149 Other capital reserves 677.582.321 220.553.428 Sales profits to be capitalized 33.799.814 24.729.869 Other earnings and losses (15.402.782) (5.965.389) Subsidiary capital correction (71.060.154) (71.060.154) Private funds 117.937.781 57.074.903 Total 1.821.419.769 1.070.452.049 Other capital reserves According to TAS 16 – “Property Plant and Equipment”, property, plant and equipment are initially recorded at cost and can be subsequently measured at their fair values. The Company has started to show based on the revaluation model by measuring over fair value as of the third quarter of 2015 by making changes in the use of the property which is measuring the cost model in the financial statements before. In accordance with tax legislation, 75% of profits from sales of participation shares and 50% of profits from sales real estates included in the assets of companies is exempt from corporate tax provided that it is classified under a special fund for full five years. The exempt gains cannot be transferred to another account other than a capital increase or cannot be withdrawn from the entity for five years. 245 MİLLİ RE 2022 ANNUAL REPORT Notes to the Consolidated Financial Statements As of December 31, 2022 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1 RISKS AND ASSESSMENT OF THE GOVERNING BODY UNCONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON CONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON FINANCIAL STATUS