Report of the Chief Executive Officer on 2016 business performance and 2017 business plan of Baoviet Holdings

VIET S Holdinas CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM == © Ls t EM - 4 REPORT OF THE CHIEF EXECUTIVE OFFICER ON 2016 BUSINESS PERFORMANCE AND 2017 BUSINESS PLAN OF BAOVIET HOLDINGS De

VIET S Holdinas CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM

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EM - 4 REPORT OF THE CHIEF EXECUTIVE OFFICER

ON 2016 BUSINESS PERFORMANCE AND 2017 BUSINESS PLAN

OF BAOVIET HOLDINGS

Dear honored shareholders,

On behalf of Baoviet Holdings’s Board of Management, I would like to report to

the Annual General Meeting of Shareholders on 2016 business performance and 2017

business plan of Baoviet Holdings, as follows:

I BUSINESS PERFORMANCE IN 2016

1 2016 Business Performance

2016 was the first year of implementing the 2016 — 2020 business strategy

Implementing the Resolution of the Annual General Meeting of Shareholders in 2016,

with the motto of "Intensive investment for sustainable development", the

Management Board concentrated on directing frequently and strictly to implement

initiatives in order to fulfill the business objectives set in 2016, as follows:

The total consolidated revenue of the group in 2016 achieved VND 25,675

billion, surpassing the year plan by 14.1% With this result, BaoViet became the first

financial — insurance group of Vietnam exceeding the total consolidated revenue of

USD $1 billion, affirming its brand and strong financial capacity of the leading

enterprise in the field of finance - insurance in Vietnam

BaoViet Holdings — the parent company sucessfully completed 2016 business

target set by the AGM with the total revenue of VND 1,400 billion, accomplishing

100% of the plan Profit before tax reached VND 1,043 billion, surpassing the year

plan by 3.8%; Profit after tax reached VND 1,022 billion, surpassing the target by

1.7% The ratio of profit after tax over charter capital was 15%, increased by 0.2%

compared to plan of 14.8%

Such business performance showed the outstanding efforts and committment of

the Group despite the challenges and difficulties of the market, so that BVH can

complete and excel all business objectives in the 2016 Business plan assigned by the

AGM, creating a solid foundation for quick development in the upcoming period

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8 Lê Thái Tổ, Hoàn Kiếm, Hà Nội I Tel (+84 4) 3928 9999 | Fax (+84 4) 3928 9609 | Email service @baoviet.com.vn

2 Implementation results of key initiatives in 2016

In 2016, in order to complete the set business objectives, with the motto of

“Intensive investment for sustainable development”, Baoviet determinately

implemented the follwong stategic initiatives in order to enhance efficiency of core

businesses, promote internal cooperation, increase professionalism and affirm leading

brand ans services of Baoviet

- Developed the strategy for the period of 2016 — 2020 of Baoviet Group, closely

following martket movements and implemeted the strategy approved by the Annual

General Meeting of Shareholders

- Continued to complete the regulatory system of internal governance

mechanism in order to create the united legal framework from the Holdings to

subsidiaries, strenghthening and improve the role of the Parent company in

centralization management in such areas as investment, finance, personnel, training,

communication and branding, and information technology

- Enhanced the implementation of Synergy Project in order to unleash all

resources, promote the strengths of subsidiaries and consolidated strengths of the

Group, optimize the advantages of network, diversification in business fields and

professionalism of each subsidiaires in the Group In particular, the synergy project of

cross-selling between BVGI and BVL achieved positive result with the implemetation

at 65 branches of the two corporations, creating a vibrant cross-selling emulation

effect throughout the system The Baoviet Synergy projects is a breakthrough solution

to achieve medium and long-term strategic objectives of Baoviet Finance - Insurance

Group

- Launched a series of integrated and specialized products which provide

customers with a wide range of choices and superior preferences for customers, such as:

Baoviet Easy Car — the insurance and banking integrated product, providing car loan

with favorable interest rate together with free car insurance coverage throughout the

loan period; Baoviet Easy Life — credit granted according to life insurance policy with

quick payment, high loan limit and attractive interest rate of 10% per year; Baoviet K-

Care - a specialized cancer insurance, providing timely and comprehensive support to

customers with total payment of up to VND 1.2 billion These new products have been

accepted and satisfied by most customers

- Expanded business network: in 2016, Baoviet has constantly expanded its

network and scope of operations to all localities nationwide, specifically, Baoviet

General Insurance established 6 more member companies, bringing the total number of

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companies p to 73 companies across the country Baoviet Life also launched five new member companies, bringing the total number of member companies to 65 companies

With strong network development in 2016, Baoviet became the first and sole enterprise

having wide network across 63 provinces and cities nationwide in the field of life insurance and non-life insurance, ensuring the dedicated services and satisfying the increasing demand of customers

- Communication — Branding: Baoviet Holdings continued to promote consistent implementation of brand image across the country from the large billboard advertising system, office buildings signs to synchronize publications, sales documents all over the system, bringing the image of young, dynamic and modern, professional Baoviet and closer to customers The Brand Finance (UK) — the Top brand evaluation consultancy in the world assessed Baoviet brand to be one of "Top 50 Vietnamese brands with the largest value in 2016" with brand value of USD 89 million, increasing by more than USD 10 million compared to 2015, ranked A+

- Information technology (IT): with the slogan 2016 is the year of IT, Baoviet

Holdings focused on completing mordern and advanced IT infrastructure, speeding up the progress of key IT projects (including InsureJ, New Core, Core Fund, DR ), which contributed to improve the quality of centralization management model and promoting business activities of the whole system, providing customers with online financial service packages

- Cooperation with strategic partner: in 2016, Baoviet Holdings and strategic partner Sumitomo Life signed the Technical Support and Capability Transfer

Agreement (TSCTA) — 4th phase in order to continue cooperate, taking advantage of experiences of SML to improve business efficiency and competitiveness of Baoviet

- Regarding the cooperation and policy counseling to State’s agencies and departments: based on the intensive research on financial — insurance market, Baoviet

continued advising and proposing effectively to the Ministry of Finance for the development of insurance market, implemented new products and services such as medical healthcare, voluntary pension, public property insurance, guarantee insurance, etc; Advised to develop and complete guidelines to fit reality and create favorable conditions for insurance enterprises in their business operations

- Regarding social security activities: Baoviet continued implementing well

social security activities according to Resolution 30A of the Government As of 2016,

the Social Security Fund of Baoviet has invested more than VND 200 billion for community activities with four main focuses: poverty alleviation; investment for

education and youth; gratitude to senior officials and to overcome the consequences of

natural disasters

In summary, in the context that the Vietnam’s economy still faced with

difficulties, Baoviet Holdings and subsidiaries have successfully implemented

solutions to complete 2016 business plan These results confirmed the properness,

timeliness and effectiveness of the solutions set by the Board of Directors and Board

of Management, as well as reflecting the effort and strong determination of

subsidiaries, and all employees of the Group

II 2017 BUSINESS PLAN

In 2017, Vietnam’s economy is forecasted to grow positively at 6.7% compared

to 2016, yet there are still difficulties and challenges remaining due to the impact of

unpredictable changes from the world economies

In that context, being clearly aware of difficulties, evaluating strengths,

weaknesses and development potentials of Baoviet, Baoviet Holdings continues

sticking to the strategic orientation for the period of 2016 -2020, affirming the No.1

position in the insurance market and gradually realizing Baoviet’s vision to 2025 of

“Maintaining the position of the leading Finance — Insurance Group in Vietnam,

enhancing international competition capacity, with strong financial potential and

sustainable and efficient growth’

1 2017 Business Plan

In 2017, Baoviet Holdings targets the consolidated revenues of VND 28,876

billion, growing by 12.5% compared to 2016 The Consolidated profit after tax is

estimated at VND 1,195 billion, growing by 2.6%

Total revenues of Baoviet Holdings — the parent company in 2017 is expected at

VND 1,533 billion, increasing by 9.5% Profit after tax is estimated at VND 1,025

billion, growing by 0.4% Return on charter capital (ROCC) is expected at 15.1%

(upon the charter capital of 6,804.7 billion Dong) With this ROCC ratio, Baoviet

Holdings aims to intensively invest for business development as well as bringing long-

term and sustainable benefits for shareholders

2 Key initiatives in 2017

With the message “Ready for take-off’, in 2017, Baoviet Holdings will

concentrate on implementing the following key initiatives in order to prepare readily

resources for development:

Continue to focus on implementing the development strategies for the period of

2016-2020 of BVH approved by the AGM:

- Corporate governance and management: taking BVH as the focal point for central

management throughout the system

- Information technology (IT): Boost the progress of key IT projects in order to

develop and complete IT infrastructure of the Group, ensuring synchronous, connected

and modern to meet the objective of being the enterprise in the digital era

- Communication and branding: Spread the unified image of Baoviet across the

country; Enhancing regular and continuous communication, unified connection across

the system Projecting a brand image of a young, dynamic and modern, professional

Baoviet in the eyes of the customers;

- Continue to strengthen Synergy projects of the Group: focusing on the investment,

cross-sellings, general support to the business activities and integrated products

- Business model: Construct a mechanism on specific policies for the key business

locations, continue to complete the central management system, strengthening customer

services post sale

- Products: Researching and developing integrated finance — investment products

with unique characteristic of Baoviet to optimize benefits for customers

- Distribution channels: Continue strengthening the efficiency of traditional

distribution channels, develop professional agents and consultants; promote new

channels i.e banc assurance, online, etc

- Implement social and environmental objectives towards sustainable development

by implementing community acitives of social responsibility such as develop Baoviet

Scholarship Fund to invest for education and the youth, develop local community,

poverty reduction, implement social security projects embedded in business operations

With the determination to implement the above solutions within the entire group,

together with endless efforts and spirit of Unity - Sharing - Synergy - Innovation -

Pioneer of all employees and consultants of the system, Baoviet Holdings and

subsidiairies have been preparing necessary resources for Baoviet to be “Ready for

take-off” in 2017 and develop sustainably in the future

On behalf of the Board of Management, I would like to wish you good health

and happiness, and wish the Meeting success./

CHIEF EXECUTIVE OFFICER Recipients :

(Signed and sealed)

- As above;

- BOD, Supervisory Board;