Monthly Report May 2010 Accounting, Finance and Investment

Monthly Report May 2010Monthly Report May 2010Monthly Report May 2010Monthly Report May 2010Accounting, Finance and Investment

ContentsContents

1. Activities1. Activities

2. Market updates 2. Market updates

3. Financial figures3. Financial figures

4. Plans 4. Plans

1. Activities1. Activities

Activities – Engaged projectsActivities – Engaged projectsInvestmentInvestment

Cash/ Time deposits management.Evaluates to find new deposit counterparties.

Cash/ Time deposits management.Evaluates to find new deposit counterparties.

Following up international & domestic bond market.

Following up international & domestic bond market.

Seeking opportunities for investing.

Seeking opportunities for investing.

Activities – Engaged projectsActivities – Engaged projectsAccounting & FinanceAccounting & Finance

Parent audit visit : Working with auditors on related matters.

Parent audit visit : Working with auditors on related matters.

The 2010 innovation & incentive program: BOD approved the proposal.

The 2010 innovation & incentive program: BOD approved the proposal.

The Auto-pay project : Signing contract with Sacombank.

The Auto-pay project : Signing contract with Sacombank.

Activities – Engaged projectsActivities – Engaged projectsAccounting & Finance (Cont.)Accounting & Finance (Cont.)

The profit center project : Report of location has been sent out to BOD.

The profit center project : Report of location has been sent out to BOD.

The following report of location is for your reference

The following report of location is for your reference

Results by location (VND bn)Results by location (VND bn)Items H.O. HCM HN DN CT DNAI

Gross Premium - 6.15 9.54 1.40 2.01 0.15

Investment 45.38 - - - - -

Total revenues 45.38 6.15 9.54 1.40 2.01 0.15

Direct expenses - 5.13 8.21 1.10 1.23 0.08

Indirect expenses 20.49 9.65 14.35 2.88 3.35 0.54

Total expenses 20.49 14.78 22.56 3.98 4.58 0.62

Profits 24.89 (8.63) (13.01) (2.57) (2.57) (0.47)

Direct exp. ratio - 83% 86% 78% 61% 53%

Indirect exp. ratio 45% 157% 150% 205% 167% 356%

2. Market updates 2. Market updates

Interest Rates (%)Interest Rates (%)Interest Rates (%)Interest Rates (%)

Group Cur. Demand 3 months 6 months 12 months

SOCBs VND 2.4 - 3 11 - 11.5 11 - 11.5 11 - 11.5

USD 0.2 - 0.3 3.4 - 3.5 3.5 - 3.8 3.5 - 4.2

JSCBs VND 2.4 - 4.2 11 - 11.5 11 - 11.5 11 - 11.5

USD 0.25 - 1 3.3 - 3.4 3.5 - 4.2 3.6 - 4.5

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.)Interest Rates (Cont.)Interest Rates (Cont.)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 ratesForeign exchange rates Foreign exchange ratesForeign exchange rates

3.4%17,491 - 18,544

5.4%17,034 - 17,961

Trend of USD/VND

VND depreciated somewhat, but generally speaking,

it’s stable.

Foreign exchange rates (Cont.)Foreign exchange rates (Cont.) Foreign exchange rates (Cont.)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 figures3. Financial figures

11

22

33

44

YTD Apr 2010 ResultsYTD Apr 2010 Results

Gross PremiumsGross Premiums

Sale ExpensesSale Expenses

Analysis of Premiums and Analysis of Premiums and Sale Exp.Sale Exp.

11 YTD Apr 2010 ResultsYTD Apr 2010 Results

YTD Apr 2010 Results (VND mil)YTD Apr 2010 Results (VND mil)

Jan Feb Mar Apr YTD

Revenues 15,513 16,325 15,986 16,803 64,627

Expenses 16,508 13,961 18,223 18,307 66,999

Profits (995) 2,364 (2,237) (1,504) (2,372)

Budget 2010 (830) (1,941) (1,957) (1,916) (6,644)

Actual / Budget 2010 36%

YTD Apr 2010 Results (VND bn)YTD Apr 2010 Results (VND bn)

15.5 16.3 16.0 16.8

64.667.0

16.5 14.0 18.2 18.3

0

20

40

60

80

Revenues ExpensesJanJan FebFeb MarMar AprApr YTDYTD

22 Gross PremiumsGross Premiums

Gross Premium (VND mil)Gross Premium (VND mil)

Jan Feb Mar Apr YTD

Actual 2010 4,464 3,596 4,988 6,200 19,248

Budget 2010 6,706 5,881 7,215 7,419 27,221

Actual 2009 2,744 7,088 2,296 3,056 15,185

Actual / Budget 2010

Actual 2010 / Actual 2009

71%

127%

Chart of Gross Premium (VND bn)Chart of Gross Premium (VND bn)

6.7

5.9

7.27.4

4.5

3.6

5.0

6.2

2.72.3

3.1

7.1

0

2

4

6

8

Jan Feb Mar Apr

Budget 2010 Actual 2010 Actual 2009

YTD 19.2b 71% budget

A02 of 5.8b

33 Sale ExpensesSale Expenses

Sale expenses (VND mil)Sale expenses (VND mil)Jan Feb Mar Apr YTD

Actual 2010 4,098 2,904 4,698 5,125 16,825

Budget 2010 3,813 3,957 4,765 4,395 16,930

Actual 2009 2,459 3,265 1,326 4,127 11,177

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)Chart of Sale expenses (VND bn)

3.8

4.84.44.0

5.1

4.7

2.9

4.1

2.5

1.3

4.13.3

0

2

4

6

Jan Feb Mar Apr

Budget 2010 Actual 2010 Actual 2009

99% budget

YTD 16.8b

44Analysis of Premium collections Analysis of Premium collections & Sale Expenses. & Sale Expenses.

Premiums / Sale exp. (VND bn)Premiums / Sale exp. (VND bn)

3.6

6.25.0

4.5

4.1

2.9

4.7

5.1

1.3

2.6

3.9

5.2

6.5

Jan Feb Mar Apr

Premiums Sale Exp.

Premium71% budget

Sale Exp.99% budget

Sale expenses & PremiumsSale expenses & Premiums

Jan Feb Mar Apr YTD

Premiums 67% 61% 69% 84% 71%

Sale exp. 107% 73% 99% 117% 99%

Actual & Budget 2010 (%)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 4. Plans

Plans – Accounting & FinancePlans – Accounting & Finance

11

22Half-year of 2010 reporting & half-year audit conducted by Earns & Young.

33

Introduction the 2010 innovation & incentive program to all staff.

Work with IT to enhance the system: generating the cash reports & deposit monitoring.

Plans – InvestmentPlans – Investment

11

22Investment project: schedule time and topic about financial market and do presentation.

33

Keep following the progressof fund management companywith ICC.

Following up the international & domestic bond market, as well as cash managements.

Thanks for your attention.Thanks for your attention.