Monthly Report August Investment, Accounting and Finance Cathay Life (VN)

Contents This month activities 1 Business result July Market News 3 4 Next month plan

Contents This month activities 1

1. Supported auditing tasks that conducted by both Parent auditor & Earns & Young 2. Expenses monitoring to ensure the budget has been implemented strongly. 3. Issuing reminder notice “Customer Services Safety box management ” 4. Getting approval from Tax Dept and Notice to related Dept about “Premium invoice without company seal” Accounting Finance Activities – Engaged projects

5 Investment Matured Bonds Reinvestment 10yrs TD in VDB, 90BN, 12.2% fixed rate Matured Bonds Reinvestment 10yrs TD in VDB, 90BN, 12.2% fixed rate Macro Economic Forecast 2012 GDP: 6.48%, CPI: 9.5%, 10yr bond: 11.6% Macro Economic Forecast 2012 GDP: 6.48%, CPI: 9.5%, 10yr bond: 11.6% Planning How to develop Vietnam’s investment Planning How to develop Vietnam’s investment Activities Fund Management Company Survey Seeking external legal opinions and respond to parent company Fund Management Company Survey Seeking external legal opinions and respond to parent company

Contents Business result July

YTD Jul 2011 Results (VND mil) AprMayJunJulYTD Revenues 24,04224,80127,24127,991173,072 Expenses 26,54629,82432,02633,054191,952 Profits (2,503)(5,022)(4,784)(5,062)(18,880) Budget 2011 (2,634)(1,645)(2,194)(2,290)(16,601) YTD Actual / YTD Budget 2011 Apr May Jun YTD Jul 114%

Gross Premium (VND mil) AprMayJunJulYTD Actual ,94013,64816,45216,52487,891 Budget ,05410,88012,97414,55071,337 Actual ,2005,4907,3228,14540,205 YTD Actual / YTD Budget 2011 YTD Actual 11 / YTD Actual % 219% YTD 87.9b 123% YTD budget

Sale expenses (VND mil) AprMayJunJulYTD Actual ,1549,3989,32610,05257,248 Budget ,1875,2686,0746,59342,246 Actual ,1255,7094,9891,88429,408 YTD Actual / YTD Budget 2011 YTD Actual 11 / YTD Actual % 195% YTD 57.2b 136% YTD budget

Premiums / Sale exp. (VND bn) Premium 123% budget Sale Exp. 136% budget Loss 114% budget

Premium trend New Renewal ActualBudgetAct/Bud FYP % RP % Investm ent % Total %

Administrative expense (VND mil) AprMayJunJulYTD Actual ,89110,04410,1539,88666,185 Budget ,04410,08610,15710,34369,884 Actual 20108,9449,6988,5478,96461,534 YTD Actual / YTD Budget 2011 YTD Actual 11 / YTD Actual 10 95% 108% YTD 66.2b 95% budget

Contents Market News 3

Updated law New circular, 15/2011/TT-NHNN dated 12 Aug 2011: over USD 5,000 or VND 15 million must be declared to Customs while going abroad.

MOM: 1.17% YOY: 22.16% YTD: 14.61%  CPI YOY reach to highest level since 2008  Food and foodstuffs was major contribution to CPI  Inflation was forecast at 1% MOM in Aug and gradually decreasing to year end Vietnam CPI (%) Market watch

Trade balance July trade balance: -Exp ~ $8.4bio,  0.7%m/m -Imp ~ $8.6 bio,  0.2%m/m => Trade deficit ~ $0.2 bio  Trade deficit improvement in the last two months resulted from the surge in gold re-export  High trade deficit will perhaps comes back once local gold price equal with world price

FX market FX rate was stable thanks to: - Low trade deficit - Foreign currency forced-selling policy However, FX rate will perhaps pressure in the coming time due to the rising of gold price As of 19 Aug: -Official rate: Bank: Black market:

Global market Gold price vsUS Stock Market Debt crisis still threaten global market: -US Government agreed to increase debt limit to $14.3 billion from $12.1 billion -SP downgraded US rating out of highest level to AA+ World worry about new crisis:  Gold price increased dramatically to 1870 from 1500 in July  US stock market drop 9.5% in Aug

Contents 4 Next month plan

1. The on-line business trip reimbursement: Working with IT & HR to select the best solutions. 2. Budget 2012 start-up 3. Universal life product: Set-up the accounting process. 4. Working with VNpost on Premium Collection Agreement (Cont.). Accounting Finance Activities – Plans

21 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 Extend Asset Duration Seeking 10yrs bond investment Extend Asset Duration Seeking 10yrs bond investment Research and Training Making SOPs of department’s routine tasks Research and Training Making SOPs of department’s routine tasks Plans Macro Economic Forecast Preparing stage II forecast: Stock, FX, RE Macro Economic Forecast Preparing stage II forecast: Stock, FX, RE

THE END