1. Report for the year of 2011 Accounting, Finance and Investment

2. Agenda 1. 2011 Achievements 2. 2011 Financial markets 3. 2012 Improvements 4. 2012 Plans

3. 1. 2011 Achievements

4. Total Cathay Life assets2011 2010 2009 2008 1,113 billion as of 30/11 1,077 billion 1,041 billion 1,017 billion Strong balance sheet, positions remain comfortably, despite market turbulence.

5. Revenues (in billion) 2012 2011 2010 2009 2008 A year of growth and strong performance. 107 185 231 318 443

6. Premium collections 2011 2010 2009 2008 9.8 Just for last 6 months 51.3 96.1 175.1 Record earnings: exceeded VND 150 billion for the first time.

7. 2011 Investment portfolio 64% Government Bonds, at yield 15.3% 28% VND Time deposits, at rate 13.6% 8% USD Time deposits, at rate 0.9% Investment return of VND 135 billion

8. Tax obligations Total 30.3 billion 2011 – 9.7 billion 2008 – 2.9 billion 2010 – 5.9 billion 2009 – 11.8 billion Cathay commits to comply with Vietnam tax regulation

9. 2. 2011 Financial markets

10. Financial Market - EU Frankfurt DAX YTD: -15% CPI : 2.4% (Nov) Euro Sovereign bond issue affects world’s economy for the whole year.

11. Financial Market - US NY S&P 500 YTD: 0.6% CPI : 3.4% (Nov) US lost AAA rating for the first time because of the deficit.

12. Financial Market - China Shanghai SHX YTD: -21.5% CPI : 4.2% (Nov) China cut reserve requirement ratio 0.5% with slowing growth.

13. Financial Market - Vietnam VN Index YTD : -26.5% CPI : 18.12% (2011) Banking System in Vietnam is restructuring. three small banks have been merged.

14. 14 Vietnam economic reviews The economy growths slow down this year, hopes grow 6% in 2012. CPI YOY(%) GDP YOY(%) 18.12 Inflation rate this year is 18.12%, hopes to curb it under 10% in 2012. Time deposit rate is still at 14%, but SBV may cut it down in the near future.

15. 15 Vietnam economic reviews (con.) As history experience, VND will depreciate in Q1-2012, and by the end of 2012, it may depreciate over 22,500.

16. 3. 2012 Improvements

17. Long-term profit Well- controlled budget High renewal premium Reduce surrender value

18. Surrender value 2008 - 2009 0.4 billion 2010 4.5 billion 2011 12.6 billion Efficient actions could be taken.

19. 2011 expense shortfall Budget controlling Budget 241.3 billion Actual 283.6 billion Shortfall 42.3 billion In 2012, it is required each department has to pay more attention in budget performance.

20. 4. 2012 Plans

21. 2012 Plans  Efficient controlling the 2012 budget performance.  Ensuring Cathay Life to comply with the regulations.  Producing the reliable financial statements.  Maximizing company benefits from the investment transactions.