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) 33 Employee benefit expenses As of December 31, 2020, and 2019, employee benefit expenses are disclosed as follows: December 31, 2020 December 31, 2019 Wages and salaries 233.992.274 211.068.619 Employer’s share in social security premiums 66.754.858 56.028.392 Pension fund benefits 6.743.408 5.362.795 Other 19.099.748 19.035.012 Total (Note 32) 326.590.288 291.494.818 34 Financial costs As of December 31, 2020, interest expense arising from the leases that the Group has subject to TFRS 16 Leasing Standards amounting to TL 12.916.412 has accounted under “Investment Management Expenses - Including Interest”; amortization expense amounting to TL 7.935.328 has been accounted under “Depreciation and Amortization Expense” accounts (January 1 - December 31, 2019: 7.196.904). As of December 31, 2020, discounted repayment plans for the Group’s operating leases are as follows (December 31, 2019: 58.175.787): Operating lease repayments -TL Up to 1 year 3.029.771 1 - 2 years 3.769.641 2 - 3 years 4.690.188 3 - 4 years 5.802.213 4 - 5 years 7.252.433 Over 5 years 34.210.625 Total 58.754.871 35 Income tax Income tax expense in the accompanying consolidated financial statements is as follows: December 31, 2020 December 31, 2019 Current tax expense provision: Corporate tax provision (129.065.521) (201.913.417) Deferred taxes: Origination and reversal of temporary differences (6.193.250) 69.039.680 Total income tax expense/(income) (135.258.771) (132.873.737) Activities and Major Developments Related to Activities General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Milli Re Annual Report 2020 240