Monthly Report Feb 2012Accounting, Finance, Investment

2

Contents

ActivitiesActivities

Market WatchMarket Watch

Investment / Financial ResultsInvestment / Financial Results

PlansPlans

3

Accounting & Finance

2011 financial statement Working with E&Y auditor to release the final version from the year-end auditing.

2011 financial statement Working with E&Y auditor to release the final version from the year-end auditing.

Automatic booking of CS tasks Working with IT to launch the automatic accounting booking of CS functions.

Automatic booking of CS tasks Working with IT to launch the automatic accounting booking of CS functions.

2011 Budget performance: All departments have given the departmental commentaries prior to reporting to BOD.

2011 Budget performance: All departments have given the departmental commentaries prior to reporting to BOD.

ActivitiesActivities

4

Investment

Enhance Investment Yield Moving money to the highest return assets

Enhance Investment Yield Moving money to the highest return assets

Send Mr. Phong to Parent Company Learning how to evaluate stocks, knowledge ofreal estate & risk management

Send Mr. Phong to Parent Company Learning how to evaluate stocks, knowledge ofreal estate & risk management

Train newcomer Developing ability of analyzing economic indicators.

Train newcomer Developing ability of analyzing economic indicators.

ActivitiesActivities

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Market WatchMarket Watch

NY S&P 500YTD: 8.3%; MTD: 3.8%

US labor market conditions improved but slowly. Fedwill maintain exceptionally low rate through late 2014.

Frankfurt DAXYTD: 17.3%; MTD: 7.0%

Greece finally receives €130bln bailout from EU andprevents a default in March

Shanghai SHXYTD: 8.3%; MTD: 3.9%

PBoC cut reserve requirement rate 0.5% even thoughJanuary’s CPI rose to 4.5%.

Taipei TWSEYTD: 12.0%; MTD: 5.4%

The ruling party won president election. Market reboundsas political uncertainty disappeared.

HCMC HCMYTD: 16.9 %; MTD: 5.9%

In Jan inflation slowed down to 17.27% and Vietnam surprisingly recorded $170 mln trade surplus

(As of Feb. 21th)

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Interest Rate & Inflation

Market WatchMarket Watch

Interest Rate (As of Feb. 21th)Interest Rate (As of Feb. 21th)

Note: Rate for institutions.

CPI YOY(%)CPI YOY(%)

Interest rates are still high and will decrease if inflation is successfully curbed.

DD 3M 6 M 12 M

SOCBVND 4.0 14 14 14

USD 0.2 0.5 0.5 0.5

JSCBVND 5.0 14 14 14

USD 0.3 0.5 0.5 0.5

17.27

0

5

10

15

20

25

12/09 06/10 12/10 06/11 12/11

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Exchange Rate

Market WatchMarket Watch

VND strengthens under official price 20,828 because demand on USD decreased.

source: Bloomberg

18,000

18,500

19,000

19,500

20,000

20,500

21,000

21,500

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12

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Asset Allocation & Revenue

Investment ResultInvestment Result

Gov. Bonds: Ave. yield 15.3%; Duration 4.7Gov. Bonds: Ave. yield 15.3%; Duration 4.7

USD TD:Weighted rate 0.9%; Tenor: 0.1 USD TD:Weighted rate 0.9%; Tenor: 0.1

VND TD:Weighted rate 13.6%; Tenor: 5.2 VND TD:Weighted rate 13.6%; Tenor: 5.2

Cash/DD:Target amount of 1.5 billionCash/DD:Target amount of 1.5 billion

Gov. Bonds (64.3%) USD TD

(7.1%)

VND TD (28.3%)

Cash / DD (0.3%)

Note: As of Feb. 21th.

Bonds account for the highest proportion of our assets.

Weighted average yield is around 13.7%. We achieve 11.1 billion VND Investment Return in January.

9

2011 budget performance

Financial ResultFinancial Result

Millions VND ActualOriginal budget

Variance %

Marketing 149,639 106,826 42,813 140%

Human Resources

42,245 41,337 908 102%

Training 1,721 1,316 405 131%

Legal 363 266 97 136%

Investment 950 867 83 110%

Finance & Accounting

1,010 995 15 102%

Total expenses had exceeded VND 37.9 billion or 16% the original budget.

10

2011 budget performance

Financial ResultFinancial Result

Millions VND ActualOriginal budget

Variance %

General Administration

53,711 57,193 -3,482 94%

Public Relation 10,213 11,821 -1,608 86%

IT 18,145 19,159 -1,014 95%

Policy Administration

937 1,130 -193 83%

Audit 83 146 -63 57%

Planning 199 260 -61 77%

GA, Public Relation & IT totally saved 6bn VND.

11

Accounting & Finance

The 2011 tax finalization Working with Marketing & HR on the 2011 tax (PIT) as well as completing the CIT.

The 2011 tax finalization Working with Marketing & HR on the 2011 tax (PIT) as well as completing the CIT.

Information disclosure Publishing and announcing the 2011 results of Cathay Life Vietnam on newspapers

Information disclosure Publishing and announcing the 2011 results of Cathay Life Vietnam on newspapers

System improvement Working with IT on the automatic allocation of the pre-payment

System improvement Working with IT on the automatic allocation of the pre-payment

PlansPlans

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Investment

Matured bonds reinvestment Planning to reinvest 30bn in 10yrs bonds toextend duration of assets. The yield is 11.2% now.

Matured bonds reinvestment Planning to reinvest 30bn in 10yrs bonds toextend duration of assets. The yield is 11.2% now.

Interest rate forecast Based on our view, deciding whether to sell 110bn bond that will mature in December.

Interest rate forecast Based on our view, deciding whether to sell 110bn bond that will mature in December.

PlansPlans

Thank You