Monthly Report June 2011 Accounting, Finance, Investment

2 Contents Activities Market Watch Investment / Financial Results Plans

3 Investment Cash Flow Management Moving money to the highest return asset Cash Flow Management Moving money to the highest return asset Operation Guidelines Revision Clarifying the Government related bonds Operation Guidelines Revision Clarifying the Government related bonds Real Estate Seeking to increase chartered capital Real Estate Seeking to increase chartered capital Research Vietnam after 5 year joining WTO Research Vietnam after 5 year joining WTO Activities

4 Accounting Update new circular 78/2011: The taxable income is not accounted to PIT for medical treatment amount (for staff & relatives) from company earning after tax. Update new circular 78/2011: The taxable income is not accounted to PIT for medical treatment amount (for staff & relatives) from company earning after tax. Revised the payment amount through bank That is from 5 million dong will pay directly to supplier’s account. Revised the payment amount through bank That is from 5 million dong will pay directly to supplier’s account. Invoice Testing the on-line business trip reimbursement. Invoice Testing the on-line business trip reimbursement. Activities

5 Finance Premium invoices Getting tax approval for no seal Premium invoices Getting tax approval for no seal Activities Premium collection service Working with post office Premium collection service Working with post office Updating new tax law: Cir 09/2011/TT-BTC : Guidance on VAT and CIT for Insurance business Cir 28/2011/TT-BTC : Guidance on Law on Tax Management Updating new tax law: Cir 09/2011/TT-BTC : Guidance on VAT and CIT for Insurance business Cir 28/2011/TT-BTC : Guidance on Law on Tax Management

6 Contents Activities Market Watch Investment / Financial Results Plans

7 Financial Market Jun/ April Market Watch NY S&P 500 YTD : 0.9%; MTD : -2.4% VN Index YTD: -10.8%; MTD: -0.5% Frankfurt DAX YTD:5.5%; MTD:-0.9% Shanghai SHX YTD: 2%; MTD: -2.2% Taipei TWSE YTD:-5.6%; MTD: -6% Market Watch Hot Issues: 1. Equity markets are DOWN Hot Issues: 1. Equity markets are DOWN Note : As of Jun 24 th.

8 Financial Market Jun/ April Market Watch NY S&P 500 YTD : 0.9%; MTD : -2.4% CPI May: 3.6% VN Index YTD: -10.8%; MTD: -0.5% CPI Jun: 20.82% Frankfurt DAX YTD:5.5%; MTD:-0.9% CPI May: 2.3% Shanghai SHX YTD: 2%; MTD: -2.2% CPI May: 5.5% Taipei TWSE YTD:-5.6%; MTD: -6% CPI May: 1.66% Market Watch Hot Issues: 1. Equity markets are DOWN 2. Commodities prices are INFLATED 3. RAISED interest rate: China, India, … Hot Issues: 1. Equity markets are DOWN 2. Commodities prices are INFLATED 3. RAISED interest rate: China, India, … Note : As of Jun 24 th.

9 Prominent Assets ( in 2011) Market Watch USD/EUR Gold Spot/oz Crude Oil MSCI World Index UP 5.8% YTD Down 6.2% YTD UP 7.6% YTD Down 1% YTD

10 Interest Rate & Exchange Rate Market Watch Interest Rate (As of Jun. 25 th ) Note: Rate for institutions. Interest rates is still at high level, however it’s on downward trend DD3M6 M12 M SOCB VND414 USD JSCB VND714 USD0.20.5

11 Interest Rate & Exchange Rate Market Watch Interest Rate (As of Jun. 25 th ) Note: Rate for institutions. Exchange Rate (As of Apr. 25 th ) Interest rates is still at high level, however it’s on downward trend VND stables thanks to strong measures from SBV DD3M6 M12 M SOCB VND414 USD JSCB VND714 USD USDVND (L) Up 5.5% TWDVND (R) Up 6.6% stable

12 Trade Deficit vs Exchange Rate Market Watch VND and Acc. Trade Deficit Trade Balance Estimation VND and Trade Deficit have some kind of co-relation. With high prob. deficit will be still high. Since it’s still Gov.’s concern, VND may keep devaluating with that. Set scenarios like this (control the pace of Exp/Imp): a: Export grows faster. b: Import and Export grow in the same pace. c: Import grows faster. a b c VND in MN USD in MN Trade Deficit (R) USDVND (L)

13 Contents Activities Market Watch Investment / Financial Results Plans

14 Asset Allocation & Revenue Investment Result Gov. Bonds: Ave. yield 15.46%; Duration 4.38 Gov. Bonds: Ave. yield 15.46%; Duration 4.38 USD TD: Weighted rate 2.18%; Tenor: 0.2 USD TD: Weighted rate 2.18%; Tenor: 0.2 VND TD: Weighted rate 17.4% ; Tenor: 0.61 VND TD: Weighted rate 17.4% ; Tenor: 0.61 Cash/DD: Target amount of 1.5 billion Cash/DD: Target amount of 1.5 billion Gov. Bonds (71.7%) USD TD (8.3%) VND TD (19.7) Cash / DD (0.4%) Note: As of Jun. 25 th. Most of our investment comes to the long term Government Bonds. Weighted average yield is around 14.7%. We achieve 13 billion VND Investment Return every month.

15 Profit and Loss Financial Result Jan.Feb.Mar.Apr.MayYTD Revenues Expenses Profit/Loss Budget Billion VND For the first 5mths, expenses was still HIGH. Actual / Budget 2011 goes to 75% this year to date.

16 Profit and Loss Financial Result Jan.Feb.Mar.Apr.MayYTD Revenues Expenses Profit/Loss Budget Billion VND For the first 5mths, expenses was still HIGH. Actual / Budget 2011 goes to 75% this year to date. -9.0

17 Gross Premium Financial Result Billion VND Actual / Budget 2011 is 125% YTD Actual 2011 / 2010 is 222% YTD Jan.Feb.Mar.Apr.MayYTD Actual Budget Actual

18 Sales Expenses Financial Result Jan.Feb.Mar.Apr.MayYTD Actual Budget Actual Billion VND Actual / Budget 2011 is 128% YTD Actual 2011 / 2010 is 168% YTD Note: Sale expenses are mostly agent incomes, sale incentives…(commission exclusive) 37.9

19 Administrative Expenses Financial Result Jan.Feb.Mar.Apr.MayYTD Actual Budget Actual Billion VND Actual / Budget 2011 is 93% YTD Actual 2011 / 2010 is 105% YTD

20 Contents Activities Market Watch Investment / Financial Results Plans

21 Accounting Online Business Trip Reimbursement Launching Online Business Trip Reimbursement Launching Second-quarter report: Audited by Earns & Young auditor and parent auditing Second-quarter report: Audited by Earns & Young auditor and parent auditing Plans

22 Finance Authorized signatures: Change the signatures at 9 banks Authorized signatures: Change the signatures at 9 banks Plans Collection via Post office: Working with supplier in the process. Collection via Post office: Working with supplier in the process.

23 Investment Enhance Investment Yield Moving money to the highest return assets Maintaining the cash balance at the lowest level Enhance Investment Yield Moving money to the highest return assets Maintaining the cash balance at the lowest level Matured Bonds Reinvestment Target yield at 12% or above Matured Bonds Reinvestment Target yield at 12% or above Market Watch Training for FA Departments / CPI Forecast Market Watch Training for FA Departments / CPI Forecast Plans New Products Survey Real Estate & Stocks New Products Survey Real Estate & Stocks

Thank You