INTERNSHIP REPORT THE CURRENT FINANCIAL STATUS OF VIETNAM INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANYBSC

INTERNSHIP REPORT Major Advanced Finance TOPIC THE CURRENT FINANCIAL STATUS OF VIETNAM INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANY BSC Table of Contents I INTRODUCTION 3 1 Company’s background 3 a.

INTERNSHIP REPORT Major: Advanced Finance

TOPIC

THE CURRENT FINANCIAL STATUS OF

VIETNAM INVESTMENT AND DEVELOPMENT JOINT

STOCK COMPANY-BSC

Table of Contents

I INTRODUCTION: 3

1 Company’s background: 3

a Organization chart 3

b Mission and Vision 3

2 Company’s development history 4

3 Company’s utility products 5

4 BSC’s main products and services 6

a Equitization consultation and listing 6

b M&A consulting 6

c Capital association consulting 6

II Company’s financial analysis 7

1 Assets and capital 7

a Assets 7

b Capital 7

c Efficiency of using funds 8

2 The company’s business performance in 2021 and 2022: 9

a BSC’s performance in 2021 9

b BSC’s performance in 2022 10

III Difficulties that the company needs to clear up 12

IV Business strategy for 2022 14

1 Competitive Strategy 14

2 Business plan for 2022 15

Conclusion 16

APPENDIX 17

Outline Internship Report Internship place: BIDV Securities Corporation

I INTRODUCTION:

1 Company’s background:

a Organization chart

b Mission and Vision

- Realizing that the quality of products and services provided to customers is a

vital factor for the existence and development of each business, from the very beginning, BSC has directed all its efforts to improving improve and improve the quantity and quality of services to maximize the benefits of customers

- Contribute to the development of the stock market, benefiting customers,

investors, and shareholders of the Company

- Restructure the customer base towards sustainable and safe development,

maintain and gradually improve the ranking in the TOP of securities companies, become an Investment Bank

- As a companion to customers, direct all efforts to improve and improve the

quantity and quality of services to maximize the benefits of customers Based on planning quality management objectives, planning quality management systems, BSC develops and implements resource management policies, plans, and checks the process of creating products and services according to the PDCA model, manages all documents and processes in the quality management system, periodically collect opinions of customers and partners to measure, analyze, improve, and overcome problems to improve products and services

2 Company’s development history

- Vietnam Bank for Investment and Development Securities Company (BSC) was

established on 18/11/1999, is one of the leading prestigious securities companies

in Vietnam, specializing in providing financial services and investment products

to institutional and individual investors, domestic and foreign funds, and investment banks

- As a member unit of BIDV, BSC inherits the cultural background, customers,

knowledge, and experience of the Parent Bank First, the company inherits the broad relationship in financial markets BSC focuses on building strategic relationships with market members and governing bodies with service quality and business reputation Moreover, BSC converges a team of experienced personnel in the field of finance, banking, understanding the sectors of the national economy

- On November 17, 2010, the Company successfully made an initial public

offering This is a great turning point marking the maturity of the Company and also opens a challenging journey for the entire Board of Directors as well as employees when the Company transforms its business model from a one-member State Limited Liability Company to a joint stock company

- Regarding brokerage services, with the principle that investor profit is a long-term

development benefit, BSC offers full consulting services, comprehensive support for the investment process, creating its own value with commitments to service quality, taking customer satisfaction as a guideline for action BSC's service

network is developed through cooperation with BIDV, prestigious domestic and foreign institutions such as Japan, Singapore, Hong Kong, Cambodia

- After more than 20 years of establishment and development, BSC has affirmed

its position in the TOP 10 securities companies with the largest market share of stock brokerage, fund certificates and warrants at Hose and UPCOM; TOP 1 securities companies with the largest share of government bond brokerage on HNX, TOP 10 securities companies with the largest brokerage market share on the derivatives market; has continuously received awards and ratings from prestigious domestic and international organizations in all fields of operation such

as "Best Securities Company with Investment Banking Services in Vietnam 2020", "Best Securities Broker in Vietnam 2019" by Global Banking and Finance Review – a leading prestigious financial magazine Top of the UK awarded, Top

3 Vietnam Securities Companies 2019 awarded by Asia Money, Top 1 Market Maker of Government debt instruments in 2019 awarded by the Ministry of Finance, and many other prestigious awards

3 Company’s utility products

- MARGIN transaction: Is a loan transaction applied by BSC Clients can use BSC's

financial resources to invest in securities and pledge with the investment securities themselves and/or securities available in the account

- Mortgage lending: Transactions exploit the financial resources of the Parent Bank for

BSC to optimally support customers Customers enjoy preferential interest rate policies with the fastest and most convenient procedures

- Portfolio management: With an in-depth analytical reporting system, modern account

management technology and extensive experience in the field of securities trading, BSC's consulting team gives clients peace of mind through the ability to identify each client's preferences and risk-taking tastes for timely advice, help customers seize investment opportunities as well as reasonable withdrawal plans

- Smart savings: The product allows through an online connection system with the

parent bank Customers can operate on BSC's online transaction method to save at desired terms with competitive interest rates, flexibility when there is no need to trade securities and use money on savings accounts to create purchasing power for investments

- Equitization and listing consultancy: Connecting buyers and sellers creates

motivation for development A combination of comprehensive consulting

processes and plans with the position of consulting for the seller-side enterprise or the buyer investor Merger Consulting seeks strategic cooperation opportunities with partners in the same industry M&A Consultants make equity arrangements with dominant volumes to change acquisitions and change dominant owners of the business

- Capital arrangement consulting: Connect businesses with appropriate capital.

One of the core services, deployed by BSC under a variety of diverse and flexible capital raising tools Each instrument is a combination of conditions, trade terms that determine the trading structure and the Action Program for the successful implementation of the capital arrangement process for the client

- Restructuring consultancy: Increase operational efficiency Consulting services build

and support the implementation of a system of solutions & options to help corporate customers transition to a more optimal state and ensure that the capital is arranged

is the most suitable, with optimal cost of capital in the context of the market as well

as the current situation of the business

4 BSC’s main products and services

a Equitization consultation and listing

- Transforming operating models and expanding capital raising opportunities.

Hinge products, creating the BSC brand with customers who are state-owned enterprises and enterprises of other types of activities to fundamentally change the ownership structure to raise capital, comprehensively change new ways of managing and operating the business in new directions

b M&A consulting

- Connecting buyers and sellers creates a driving force for development.

Combination of processes and comprehensive consulting options with consulting position for sellers or investors buyer Merger Consultant (Merger) does the search strategic cooperation opportunities with partners in the same career Consulting on buying and selling and arranging stock capital the part with the dominant volume to exchange for repurchase and change the dominant owner of the business

c Capital association consulting

- Connecting businesses with the right capital One of the core services, deployed

by BSC under diversified and flexible capital mobilization tools Every Instrument is a combination of terms and conditions of a trade determines the transaction structure

and the operating program to successfully implement the capital arrangement process for customers

d Reconstruction consultancy

- Increase operational efficiency Consulting services to build and support system

implementation solutions & plans to help business customers industry transitions to a more optimal state and ensures that the arranged capital is the most appropriate, with the cost optimal cost of capital in the market context as well as status of the business

II Company’s financial analysis

1 Assets and capital

a Assets

- According to BSC's published 2021 balance sheet, the company's total assets reached VND 6,004.73 billion, an increase of 105% compared to 2020 In which, the company's loans accounted for most of these assets (more than 50%), reaching VND 3,303 billion; followed by financial assets recorded through profit and loss (FVTPL), reaching VND 1,043 billion by the end of 2021

- This spike was recorded due to the explosion of the stock market in 2021 with a record number of new account openings, helping the company increase profits in margin lending and debt collection for customers

b Capital

- Since its inception, the amount of BSC's charter capital has been constantly increasing By 2019, BSC's charter capital reached over VND 1,220 billion The total number of securities accounts opened at BSC increased from 61,879 accounts in 2011 to 126,292 accounts in 2019 The total value of bond transactions of customers via BSC from 2011 to 31/10/2019 is VND 382,100 billion

- On 03/08/2022, Vietnam Bank for Investment and Development Securities Company (BSC) had announced the signing of a strategic cooperation agreement with Hana Securities Company Limited (HSC) – under Hana Financial Group – Korea Under this agreement, BSC issued and privately offered 65,730,042 shares to HSC, at a price of 41,000 VND/share The value of this deal reached VND 2,695 billion, bringing BSC's charter capital up to VND 4,384 billion Transfer restriction period within 3 years from the closing date of the offering

- In addition to its strong digital transformation strategy, HSC said it will join BSC in asset management activities and support the establishment of a continuous cooperation system in investment through the establishment of a fund management company, support risk management

c Efficiency of using funds

- After a slight decrease in profit margin in 2019 and 2020, return on average equity (ROEA) has increased sharply in 2021 to more than 22% This is a record number of the company since its inception, making BSC one of the top but most effective capital-intensive securities companies in the market

- BSC expects 80% of the proceeds from the offering to supplement the company's securities businesses including margin lending, securities investment, underwriting and other securities trading operations The remaining 20% of the funds will be supplemented with funds for investment in upgrading the trading platform and other legitimate business activities of the company

2 The company’s business performance in 2021 and 2022:

a BSC’s performance in 2021

2020 2021

Lãi từ các tài sản tài chính ghi nhận thông qua lãi/lỗ ( FVTPL) 500.23 388.32

Chênh lệch tăng đánh giá lại các TSTC thông qua lãi/lỗ 249.77 171.18

Cổ tức, tiền lãi phát sinh từ tài sản tài chính FVTPL 5.92 18.17

Doanh thu hoạt động đầu tư chứng khoán, góp vốn (Trước năm 2016) 0.00 0.00

- According to the financial statements for the of 2021, BSC's net income from financial activities reached more than VND 1,333 billion, 33% increase compared

to 2020 This figure was recorded mainly from the sudden growth of securities brokerage revenue to 516.43 billion (up 125% compared to 2020) Along with that, interest from loans and receivables (HTM) of BSC also increased by 115%

to VND 292.94 billion

- In addition to the impressive results in financial consulting and securities investment consulting activities, BSC's investment activities also recorded a decrease in profit from financial assets recognized through profit/loss (FVTPL) when this figure decreased from 500.23 to 388.32 billion VND (-22.4%) in 2021

b BSC’s performance in 2022

- BSC published financial statements for the first 6 months of 2022 with a loss after tax of nearly VND 6 billion, while in the same period profit after tax was more than VND 116 billion According to the company's explanation, the main reason

is due to the bad performance of the stock market in the first 6 months of 2022, reduced liquidity, leading to a decrease in operating revenue and financial revenue

- Specifically, operating revenue reached VND 255 billion, down 23% over the same period Profit from main assets recorded through profit/loss (FVTPL) decreased by 42%, to more than VND 67 billion; securities brokerage revenue decreased by 30%, to VND 87.65 billion In contrast, operating expenses increased by 31% over the same period, to more than VND 193 billion; financial expenses increased by 173%, particularly management costs decreased by 56% over the same period

- At the same time, FVTPL's financial asset loss increased by 58%, corresponding

to an increase of VND 44 billion to more than VND 120 billion As a result, the company's self-employed segment recorded a loss of more than VND 54 billion

- However, with positive Q1 business results, accumulated in the first 6 months of the year, BSI reported a profit of more than VND 77.3 billion, down 56% over the same period Operating revenue decreased slightly by 2%, to VND587.5 billion