Monthly Report May 2010 Accounting, Finance and Investment

Contents 1. Activities 2. Market updates 3. Financial figures 4. Plans

1. Activities

Activities – Engaged projects Investment Cash/ Time deposits management. Evaluates to find new deposit counterparties. Following up international & domestic bond market. Seeking opportunities for investing.

Activities – Engaged projects Accounting & Finance Parent audit visit : Working with auditors on related matters. The 2010 innovation & incentive program: BOD approved the proposal. The Auto- pay project : Signing contract with Sacombank.

Activities – Engaged projects Accounting & Finance (Cont.) The profit center project : Report of location has been sent out to BOD. The following report of location is for your reference

Results by location (VND bn) ItemsH.O.HCMHNDNCTDNAI Gross Premium Investment Total revenues Direct expenses Indirect expenses Total expenses Profits 24.89(8.63)(13.01)(2.57) (0.47) Direct exp. ratio -83%86%78%61%53% Indirect exp. ratio 45%157%150%205%167%356%

2. Market updates

Interest Rates (%) Group Cur.Demand3 months6 months12 months SOCBsVND USD JSCBsVND USD Interest rate is on the down trend recently.  Majority of banks have set the cap on deposit rate at 11.5%, except for some small JSCBs (Joint stock commercial banks).  Lending rate has been declined to 14% - 15%pa.

Interest Rates (Cont.) Reasons:  The government has asked the State Bank of Vietnam (SBV) to cut the interest rates to boost local business and productions, in a movement to help stabilize local macro economy.  State Bank of Vietnam has been boosting funds via open market operations since the start of 2010 to curve the lending rate.

Foreign exchange rates 3.4% 17, , % 17, ,961 Trend of USD/VND VND depreciated somewhat, but generally speaking, it’s stable.

Foreign exchange rates (Cont.) In May 2010,  Official rate:18,958 – 19,013  Unofficial rate:18,970 – 19,030 Reasons:  USD gets back the confidence as the evolution of the Greece’s situation.  VND might be still stable for the near future although the demand for USD is rising, but the supply of USD is relatively plenty.

3. Financial figures

123 4 YTD Apr 2010 Results Gross Premiums Sale Expenses Analysis of Premiums and Sale Exp.

1 YTD Apr 2010 Results

YTD Apr 2010 Results (VND mil) JanFebMarAprYTD Revenues 15,51316,32515,98616,80364,627 Expenses 16,50813,96118,22318,30766,999 Profits (995)2,364(2,237)(1,504)(2,372) Budget 2010 (830)(1,941)(1,957)(1,916)(6,644) Actual / Budget %

YTD Apr 2010 Results (VND bn) Jan Feb Mar Apr YTD

2 Gross Premiums

Gross Premium (VND mil) JanFebMarAprYTD Actual ,4643,5964,9886,20019,248 Budget ,7065,8817,2157,41927,221 Actual ,7447,0882,2963,05615,185 Actual / Budget 2010 Actual 2010 / Actual % 127%

Chart of Gross Premium (VND bn) YTD 19.2b 71% budget A02 of 5.8b

3 Sale Expenses

Sale expenses (VND mil) JanFebMarAprYTD Actual ,0982,9044,6985,12516,825 Budget ,8133,9574,7654,39516,930 Actual ,4593,2651,3264,12711,177 Actual / Budget 2010 Actual 2010 / Actual 2009 Sale expenses are agent incomes, sale incentives, advertising, customer care … 99% 151%

Chart of Sale expenses (VND bn) 99% budget YTD 16.8b

4 Analysis of Premium collections & Sale Expenses.

Premiums / Sale exp. (VND bn) Premium 71% budget Sale Exp. 99% budget

Sale expenses & Premiums JanFebMarAprYTD Premiums 67%61%69%84%71% Sale exp. 107%73%99%117%99% Actual & Budget 2010 (%)  YTD Apr 2010 gross premiums has reached 71% only but the related expenses has closed to 99% YTD budget.  It has resulted in the loss on insurance trading as the revenues could not cover the sale expenses, such as agent incomes, sale incentives, advertising…

4. Plans

Plans – Accounting & Finance 1 2 Half-year of 2010 reporting & half-year audit conducted by Earns & Young. 3 Introduction the 2010 innovation & incentive program to all staff. Work with IT to enhance the system: generating the cash reports & deposit monitoring.

Plans – Investment 1 2 Investment project: schedule time and topic about financial market and do presentation. 3 Keep following the progress of fund management company with ICC. Following up the international & domestic bond market, as well as cash managements.

Thanks for your attention.