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

Report for the year of 2011Report for the year of 2011

Accounting, Finance and Investment

Agenda

1. 2011 Achievements1. 2011 Achievements

2. 2011 Financial markets2. 2011 Financial markets

3. 2012 Improvements3. 2012 Improvements

4. 2012 Plans4. 2012 Plans

1. 2011 Achievements1. 2011 Achievements

Total Cathay Life assets

20112011

20102010

20092009

20082008

1,113 billion as of 30/11

1,077 billion

1,041 billion

1,017 billion

Strong balance sheet, positions remaincomfortably, despite market

turbulence.

Revenues (in billion)

2012

2011

2010

2009

2008

A year of growth and strong performance.

107

185

231

318

443

Premium collections

2011

2010

2009

2008 9.8 Just for last 6 months

51.3

96.1

175.1

Record earnings: exceeded VND 150 billionfor the first time.

2011 Investment portfolio

64%64%

Government Bonds,at yield 15.3%

28%28%

VND Time deposits,at rate 13.6%

8%8%

USD Time deposits, at rate 0.9%

Investment return of VND 135 billion

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 Vietnamtax regulation

2. 2011 Financial markets2. 2011 Financial markets

Financial Market - EU

Frankfurt DAXYTD: -15%CPI : 2.4% (Nov)

Euro Sovereign bond issue affects world’seconomy for the whole year.

Financial Market - US

NY S&P 500YTD: 0.6%CPI : 3.4% (Nov)

US lost AAA rating for the first time because of the deficit.

Financial Market - China

Shanghai SHXYTD: -21.5%CPI : 4.2% (Nov)

China cut reserve requirement ratio 0.5% with

slowing growth.

Financial Market - Vietnam

VN IndexYTD : -26.5%CPI : 18.12% (2011)

Banking System in Vietnam is restructuring. three small banks have been merged.

14

Vietnam economic reviews

The economy growths slow down this year, hopes grow 6% in 2012.

0

5

10

15

20

25

12/09 04/10 08/10 12/10 04/11 08/11 12/11

5.8

3

4

5

6

7

8

2008 2009 2010 2011

CPI YOY(%)CPI YOY(%)

GDP 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

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.

13,000

14,000

15,000

16,000

17,000

18,000

19,000

20,000

21,000

22,000

-3,500-3,000-2,500-2,000-1,500-1,000

-5000

5001,0001,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Trade deficit(mn in USD)

Exchange Rate(RHS)

3. 2012 Improvements3. 2012 Improvements

Long-term profit

Well-controlled

budget

High renewal premium

Reduce surrender

value

Surrender value

20082008-

200920090.4 billion

201020104.5 billion

2011201112.6 billion

Efficient actions could

be taken.

2011 expense shortfall

Budget controlling

Budget

241.3

billion

Actual

283.6

billion

Shortfall42.3

billion

In 2012, it is required each department has to pay more attention in budget performance.

4. 2012 Plans4. 2012 Plans

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.