MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) 19 Trade and other payables and deferred income December 31, 2020 December 31, 2019 Financial payables 58.754.871 117.648.540 Payables from main operations 980.870.480 796.914.881 Other payables 136.517.896 133.712.351 Short/long term deferred income and expense accruals 231.208.040 221.449.286 Taxes and other liabilities and similar obligations 78.146.382 136.600.008 Due to related parties (Note 45) 224.447 368.661 Total 1.485.722.116 1.406.693.727 Short-term liabilities 1.416.703.424 1.347.115.950 Long-term liabilities 69.018.692 59.577.777 Total 1.485.722.116 1.406.693.727 As of December 31, 2020, other payables amounting to TL 136.517.896 (December 31, 2019: TL 133.712.351) consist of treatment cost payables to SSI amounting to TL 44.494.729 (December 31, 2019: TL 39.979.932) payables to Tarsim and DASK and outsourced benefits and services amounting to TL 80.245.627 (December 31, 2019: TL 83.941.498) and deposits and guarantees received amounting to TL 11.777.540 (December 31, 2019: 9.790.921). Payables arising from main operations of the Group as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Payables to reinsurance companies (Note 10) 622.634.390 503.446.108 Payables to agencies, brokers and intermediaries 91.095.216 72.191.799 Cash deposited by insurance and reinsurance companies 6.898.890 5.469.130 Total payables arising from reinsurance and insurance operations 720.628.496 581.107.037 Payables arising from other operating activities 260.241.984 215.807.844 Payables arising from main operations 980.870.480 796.914.881 Corporate tax liabilities and prepaid taxes are disclosed below: December 31, 2020 December 31, 2019 Taxes paid during the period 173.403.945 137.083.224 Corporate tax liabilities (129.065.521) (201.913.417) Corporate tax assets, net 44.338.424 (64.830.193) Total amount of investment incentives which will be benefited in current and forthcoming periods None. 20 Financial liabilities 31 December 2020 31 December 2019 Expense accruals arising from derivative contracts (Note 13) (*) - 59.472.753 Payables from operating leases (Note 34) (**) 58.754.871 58.175.787 Short-term 3.029.771 3.620.551 Medium and long-term 55.725.100 54.555.236 Total 58.754.871 117.648.540 (*) The company does not accrue expense from derivative contracts as of December 31, 2020. (December 31, 2019: TL 59.472.753). (**) As of December 31, 2020, the Group’s operating leases are explained in the Note 34 - Financial Costs . Financial Status 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 Milli Re Annual Report 2020 235