22
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.
