viet capital securities - annual report 2015

Building on strength

AnnuAl report 2015

Buildingon strength

02 ANNUAL REPORT 2015

www.vcsc.com.vn

04 Chairperson’s statement07 overview

07 Company information08 Mission - Vision10 Milestones

12 FinanCiaL hiGhLiGhts in 2015

16 hUman resoUrCes

21 overview oF BUsiness environment in 201521 Macroeconomic picture in 201524 Key macro factors impacting Vietnam markets26 Vietnam stock market in 2015

29 BUsiness operations in 2015 29 Investment Banking31 Securities Brokerage 34 Securities Services 36 Research37 Investments38 Social activities

40 vietnam’s oUtLooK For 2016 40 Vietnam’s macroeconomic outlook for 201641 Vietnam’s stock market outlook for 2016

42 vCsC’s BUsiness strateGy For 2016

44 Corporate manaGement44 Organizational chart45 Personnel breakdown46 Risk management

50 Board oF direCtor’s report 50 Introduction54 Activities of Board of Directors in 201558 Shareholders information

59 inspeCtion Committee’s report59 Introduction60 Activities of the Inspection Committee in 2015

61 Board oF manaGement 61 Introduction62 Key personnel

67 FinanCiaL statements

content

03

A strong

foundAtion mAtched

with situAtionAl

flexibility drove

vcsc to mAintAin

its position of

industry-leAding

profitAbility


www.vcsc.com.vn

A strong foundation matched with situational flexibility drove vcsc to maintain the position of industry-leading profitability

With momentum from previous years, VCSC earned remarkable growth in the securities brokerage segment in 2015, with an 8.39% market share on HSX, an increase by 29% from 2014. Revenue from the securities brokerage soared by 17% vs. 2014 to VND336 billion.

To sum up, VCSC’s revenue reached VND706 billion, up 14% from 2014, exceeding our target by 42%. Meanwhile, profit after tax was VND239 billion, up 65% from 2014, exceeding our target by 53%. Therefore, VCSC successfully maintained its position of industry-leading profitability with ROE of 32.7%. Investment Banking continued to be the driving force in creating numerous opportunities for the whole company. We succeeded in a great number of big advisory deals in fields including agriculture, real estate and distribution.

investing in vertical growth and focusing on human resource quality to build the foundation for sustainable inner strength

Our sustained growth is a result of our continuous investment in human resources. We hire, retain and develop the best individuals and use our corporate culture to instill a sense of shared values and mission, to ensure that these individuals work toward common goals. Our people-oriented development strategy is implemented through our merit-based remuneration policy, professional and soft skill training, team-bonding initiatives and the management team’s dedication to form an enthusiastic and devoted workforce, which together brings success not only to itself but also to VCSC’s clients, partners and shareholders.

In 2015, VCSC continued its remarkable development

with tenacity and high growth rates. This enabled

the Company to exceed what it achieved the

previous year and provided further validation of our

strategic focus on not only improving the stability of the core businesses but also boosting our inner strength to the fullest.

the vietnam stock market achieved modest gains and was strongly impacted by domestic and global macro-economic factors

The VN-Index ended the year with a modest gain of 6.1%, with liquidity declining by 16% vs. 2014. The market experienced various complications and was greatly influenced by global macro-economic uncertainties. Vietnam’s economy, however, did have several positive aspects and showed a strong recovery in numerous fields, achieving considerable growth rates compared to the set target and compared to those of the previous years from 2011 to 2015. Furthermore, solutions to push market development such as Circular 36, increasing foreign ownership limits (FOL), billing cycle, etc. were put into practice to minimize the negative factors from the mentioned-above uncertainties.

Investing in human resources will always be one of the top priorities in our long-term development strategy.

dear shareholders and clients,

CHAIRPERSON’S stAteMent


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five years. Multinational corporations relocating manufacturing into Vietnam will help the nation’s exports to gain more market share in global trade, overcoming difficulties due to sluggish global demand.

However, 2016 will witness more risks owing to monetary policies. Inflation is projected to rise to 3.5% at year-end due to the strong domestic growth trend and credit growth. The devaluation of the VND will hike the cost-push factor and put also pressure on inflation. Interest rates likely bottomed in 2015 and will probably edge up by 1% in 2016. This will also have a significant impact on the growth of the financial and securitites market.

taking initiatives, overcoming challenges, and joining forces for the sustainable growth of the vietnam stock market

The Vietnam stock market continues to have enormous upside potential in 2016. Vietnam GDP is forecast to expand this year equivalent to last year’s 6.7% growth. The manufacturing sector will maintain its leading role in boosting growth on the back of strong FDI flows as Vietnam starts to take off as an attractive investment destination. The country has continuously signed several FTAs, such as the TPP and Vietnam – EU FTA. Strong FDI inflows will increase new job opportunities with high salaries, thereby boosting consumer confidence and spending in 2016. Moreover, consumer confidence has been healthy the past four quarters; retail sales growth in 2015 was 8.4%, the highest in the past

On behalf of the Board of Directors, I would like to express my gratitude to our valued shareholders, clients, and all of our employees for VCSC’s success in 2015. I strongly believe that with dedication and purpose, together we will bring far more prosperity not only to VCSC but also to the country, through our contribution in developing the Vietnam stock market.

NGUYEN THANH PHUONG Chairperson

Opportunities and challenges always go hand in hand, thus, we must be well-prepared for a new path and together build a dynamic Vietnam stock market that integrates into the world economy and becomes an important part of the overall development of Vietnam’s economy


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overview


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coMpAny inforMAtion

Viet Capital Securities Joint Stock Company (VCSC) Operation Licence No. 68/UBCK-GP dated 6 November 2007 issued by the State Securities Commission.

Principal activities:

Brokerage services;

securities dealing;

securities depository;

Underwriting and other investment banking activities.

VCSC has headquarters, transaction office in HCMC and branches in Hanoi. VCSC has been serving thousands of customers, including enterprises, financial institutions and individuals in the country and internationally.

ho Chi minh City - head office

: Bitexco Financial Tower, 15th Floor, 2 Hai Trieu Street, District 1, HCMC, Vietnam : (84 8) 3914 3588 : (84 8) 3914 3209

ho Chi minh City - transaction office

: Vinatex – Tai Nguyen Building, 1st and 3rd Floor, 10 Nguyen Hue Street, District 1, HCMC, Vietnam

: (84 8) 3914 3588 : (84 8) 3914 3209

ho Chi minh City - transaction office

: Artex Building, 6th Floor, 236 - 238 Nguyen Cong Tru Street, District 1, HCMC, Vietnam : (84 8) 3914 3588 : (84 8) 3821 6186

hanoi Branch

: Capital Tower, 109 Tran Hung Dao Street, Hoan Kiem District, Hanoi, Vietnam : (84 4) 6262 6999 : (84 4) 6278 2688

www.vcsc.com.vn

Mission - vision

We endeavor to be the best investment bank in Vietnam by creating an exciting working environment that attracts the best talent available. We have an uncompromising determination to achieve excellence in everything we undertake.

Our vision for the future is to be every client’s first choice in all products and services we provide. We are dedicated to continue to be a leader and trusted partner in investment banking, research, and brokerage. Our clients’ needs determine our path, and we believe that if we serve our clients well, our own success will follow.


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services

Bridge the needs of investors and corporations with insightful research, sound corporate advisory, reliable trading strategies and advanced technology.

clients

Build long lasting and mutually beneficial relationships.

productivity

Build teams with expertise and dedication to constantly create maximum value in our products and services.

people

Be a place where people are inspired to be the best they can be.

profit

Maximize long-term returns for shareholders.


www.vcsc.com.vn

Milestones

2010

2007

2008

2009

2011

20142012

2013

2015

VCSC was established and o�cially began operations with a charter capital of VND360 billion on November 6.

O�cially deployed one of the most advanced trading software systems in the industry by Tong Yang (presently Lotte HPT Vietnam), currently being used by leading securities companies around the world, valued at nearly VND20 billion.

Increased charter capital from VND360 billion to VND378 billion pursuant to license 276/UBCK-GP issued by the SSC

Top 6 securities brokerage house at the end of 2011 on Ho Chi Minh Stock Exchange.

“Best Equity House in Vietnam” awarded by Finance Asia.

“Best Brokerage House in Vietnam” awarded by The Asset.

“Best Equity House in Vietnam” and “Best MidCap Corporate Finance” awarded by Alpha Southeast Asia.

“Saigon Enterprise of the Year” by Ho Chi Minh City’s People Committee.

Became a top 10 securities brokerage house in 3Q2010 on the HNX.

Established VCSC Nguyen Cong Tru transaction o�ce.

Top 5 securities brokerage house on Ho Chi Minh Stock Exchange.

“Best Investment Bank” awarded by Finance Asia.

“Best Small-Cap Deal”, “Best Mid-Cap Corporate Finance House”, “Best Equity House”, “Best Institutional Broker”. Was the only company in Vietnam to be concurrently awarded the three latter titles by Alpha Southeast Asia.

Increased charter capital to VND398.4 billion pursuant to license 122/ GPĐC-UBCK issued by the SSC in November.

Breakthrough performance, ROE surpasses 25% threshold, highest recorded �gure since establishment.


“Best Institutional Broker” awarded by Alpha Southeast Asia.

“Best M&A Advisory Firm in 2013-2014” at 2014 Vietnam M&A Forum.

Increased charter capital to VND500 billion pursuant to license 20/GPDC-UBCK issued by the SSC in September.

Balanced transformation, with the focus on perfecting all core business.


"Best investment bank" and "Best equity house" in Vietnam awarded by Finance Asia;

“Best Mid-Cap Corporate Finance House”, “Best Equity House”, “Best Institutional Broker” awarded by Alpha Southeast Asia.


Reinforced resources and maintained inner strength with ROE surpassing 30%.

“Best Investment Bank” awarded by” EuroMoney magazine.


“Best Mid-Cap Corporate Finance House” awarded by Alpha Southeast Asia.

“Top 3 advisor in 2005 – 2015” awarded by HNX


Maintained as top 3 securities brokerage house on Ho Chi Minh Stock Exchange.

Established VCSC Branch in Hanoi.

10TOP

5TOP

3TOP


www.vcsc.com.vn

2010

2007

2008

2009

2011

20142012

2013

2015

VCSC was established and o�cially began operations with a charter capital of VND360 billion on November 6.

O�cially deployed one of the most advanced trading software systems in the industry by Tong Yang (presently Lotte HPT Vietnam), currently being used by leading securities companies around the world, valued at nearly VND20 billion.

Increased charter capital from VND360 billion to VND378 billion pursuant to license 276/UBCK-GP issued by the SSC

Top 6 securities brokerage house at the end of 2011 on Ho Chi Minh Stock Exchange.

“Best Equity House in Vietnam” awarded by Finance Asia.

“Best Brokerage House in Vietnam” awarded by The Asset.

“Best Equity House in Vietnam” and “Best MidCap Corporate Finance” awarded by Alpha Southeast Asia.

“Saigon Enterprise of the Year” by Ho Chi Minh City’s People Committee.

Became a top 10 securities brokerage house in 3Q2010 on the HNX.

Established VCSC Nguyen Cong Tru transaction o�ce.



“Best Small-Cap Deal”, “Best Mid-Cap Corporate Finance House”, “Best Equity House”, “Best Institutional Broker”. Was the only company in Vietnam to be concurrently awarded the three latter titles by Alpha Southeast Asia.

Increased charter capital to VND398.4 billion pursuant to license 122/ GPĐC-UBCK issued by the SSC in November.

Breakthrough performance, ROE surpasses 25% threshold, highest recorded �gure since establishment.


“Best Institutional Broker” awarded by Alpha Southeast Asia.


Increased charter capital to VND500 billion pursuant to license 20/GPDC-UBCK issued by the SSC in September.

Balanced transformation, with the focus on perfecting all core business.


"Best investment bank" and "Best equity house" in Vietnam awarded by Finance Asia;

“Best Mid-Cap Corporate Finance House”, “Best Equity House”, “Best Institutional Broker” awarded by Alpha Southeast Asia.


Reinforced resources and maintained inner strength with ROE surpassing 30%.

“Best Investment Bank” awarded by” EuroMoney magazine.


“Best Mid-Cap Corporate Finance House” awarded by Alpha Southeast Asia.

“Top 3 advisor in 2005 – 2015” awarded by HNX


Maintained as top 3 securities brokerage house on Ho Chi Minh Stock Exchange.

Established VCSC Branch in Hanoi.

10TOP

5TOP

3TOP


www.vcsc.com.vn

FINANCIAL HIGHLIGHTS in 2015

Unit: VND million, unless otherwise stated 2013 2014 2015 % vs.

2014target

2015% vs. target

p&l

revenue 399,459 616,688 705,727 14.4% 496,025 142.3%

Securities brokerage 94,685 286,038 335,958 17.5% 183,339 183.2%

Investments 81,010 129,511 155,062 19.7% 102,410 151.4%

Corporate advisory 100,054 89,889 28,334 -68.5% 144,000 19.7%

Others 123,710 111,250 186,373 67.5% 66,276 281.2%

sG&a (309,337) (433,215) (404,478) -6.6% (296,025) 136.6%

Operating profit 90,121 183,473 301,249 64.2% 200,000 150.6%

Other profit 82 (644) (289) NM NA NA

profit before tax 90,204 182,829 300,960 64.6% 200,000 150.5%

profit after tax 72,170 145,273 239,099 64.6% 156,000 153.3%

npat (after minority interest) na 145,273 237,198 63.3% na na

roe 14.2% 26.7% 32.7% 22.5% 25.0% 130.9%

Assets

Total assets 2,132,287 2,770,321 3,076,738 11.1% NA NA

Charter capital 398,400 500,000 500,000 0.0% NA NA

Equity 544,149 730,842 972,797 33.1% NA NA

Gross leverage ratio (x) 2.92x 2.79x 2.16x -22.5% NA NA

CAR ratio 228% 319% 336% 5.3% NA NA

per shAre Metrics

Income/share (VND) 1,812 3,369 4,744 40.8% NA NA

Average number of outstanding shares (unit: thousand)

39,821,000 43,120,000 50,000,000 16.0% NA NA

Dividend/share (VND) 1,000 1,400 1,400(*) NA NA NA

Book value/share (VND) 13,658 14,617 19,456 33.1% NA NA

totAl eMployees (person)

132 158 185 17.1% na na

Note: Consolidated financial statement 2014 and 2015, (*) estimated results, including the dividend advance of VND500/share for 2015


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Following the “breaking barriers”

achievements in 2014, VCSC

continued to see remarkable profit

growth in 2015 compared to 2014

and against the target set at the Annual General

Meeting.

10.2% and staffing soared by 17.1% as of December 31, 2015 from a year earlier to support business expansion.

Profit growth rates not only finished higher than VCSC’s historical figures but also were record highs among leading securities firms in the market, proof of the precise and sharp decisions made by VCSC’ management last year, along with the efforts of the whole staff while the global and Vietnamese markets experienced strong volatility during 2015. The total trading value of both the HSX and HNX plunged by 15.8% in 2015 and both the VNI-Index and the HNX-Index showed less positive performances: the VN-Index ended the year up by only 6.1% from a gain of 8.1% in 2014, while the HNX-Index decreased by 3.6% in 2015 after an increase of 22.3% in 2014.

Given the size of the balance sheet’s components, VCSC did not carry out charter capital raising in 2015. Equity rocketed by 33.1% from 2014 due to retained earnings, while total assets grew by only 11.1%. This made a remarkable contribution to enhancing the Company’s financial safety ratios. The gross leverage ratio continued to decline to 2.16x from 2.79x in 2014 and 2.92x in 2013. Meanwhile, the CAR ratio kept improving to 336% from 319% in 2014.

equity rocketed by 33.1% from 2014 due to retAined eArnings, while totAl Assets grew by only 11.1%. this mAde A remArkAble contribution to enhAncing the compAny’s finAnciAl sAfety rAtios.

Profit after tax increased by 64.6% from 2014 and exceeded the target by

53.3% on the back of a positive combination of revenue and costs. On one hand, VCSC raised revenue by 14.4% with strong growth in the securities brokerage. On the other hand, we reduced SG&A by 6.6% while financial costs increased by

64.6% prOFIT AFTer TAx

GrOWTh rATe


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In 2015, VCSC maintained its position as the security firm with the highest rOe at 32.7%, based on the initial equity and far exceeding the long-term target of 25%. On the per share basis, income and book value grew by 40.8% and 33.1% respectively.

32.7% reTurn On equITy (rOeb)

ticker CompanyMarket share on

HSX (%)

roeb(%)

ssi Saigon Securities Inc. 13.07 14.97

hCm HCMC Securities Corp. 11.97 9.05

vCsC viet Capital securities JsC 8.39 32.72

vnd VNDIRECT Securities Corp. 5.69 9.90

shs Saigon - Hanoi Securities JSC 5.28 13.02

mBs MB Securities JSC 4.82 0.63

aCBs Asia Commercial Bank Securities 4.51 5.69

Fpts FPT Securities JSC 4.03 10.47

Bsi Bank for Investment & Development of Vietnam Securities Co

3.88 13.22

Bvs Bao Viet Securities JSC 3.73 8.69

Source: StoxPlus, 4 April 2016

vcsc mAintAined its position of our industry leAder

FINANCIAL HIGHLIGHTS in 2015 (Cont.)


www.vcsc.com.vn

vcsc’s roe rAtios in 2012-2015

35

30

25

20

15

10

05

02012

10.17%

2013

14.22%

2014

26.70%

2015

32.72%

top 10 securities firMs’ roeb rAtios And MArket shAre on hsX

35

30

25

20

15

10

05

0

14

12

10

08

06

04

02

0

: roe (%) (lHS) : HSX market share (%) (rHS)

SSI HCM VCSC VnD SHS MBS ACBS FptS BSI BVS

Average HSX market share: 6.54%

Market share (%)roeb (%)

Average roeb: 11.84%


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We not only wish to build a good and

devoted team to make VCSC the pioneer in

providing the best service but also to

contribute to improving the Vietnam stock

market.

huMAn reSOurCeSMOTIVATIOn FOr SuSTAInABLe GrOWTh

Additionally, we encourage staff to participate in prestigious professional and soft skill training courses that suit each individual’s needs.

trAining is short-terM investMents thAt bring long-terM benefits

In the past years, VCSC’s employees have been encouraged and supported financially to enter the following courses:

» securities practice certificate: To ensure that professional employees have the certificates required by the SSC.

» certified financial Analyst (cfA) certificate: Business staff who would like to take CFA exams are fully sponsored.

» certified Appraiser certificate: For employees in the Corporate Finance Department, holding a certified appraiser certificate issued by the Ministry of Finance is also one of the priorities in training.

» network Administration: Due to its essential role in the company’s business, IT employees all take network administration courses in esteemed institutes to ensure the system’s proper operation as well as to fine-tune their problem solving skills.

We believe that in order to retain and develop talent, apart

from a merit-based remuneration policy, it is essential to provide each employee with opportunities for personal development. That requires us to create the right evaluation instruments and inspire managers to delegate work that matches each individual’s competence, thereby encouraging our employees to pursue innovative thinking and self-improvement. These opportunities are also provided through interactions with colleagues, partners and clients in accordance with each employee’s job responsibility.


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huMAn resources

Along with courses provided by training centers, internal training is also used and constantly improved upon. Internal training includes orientation, broker training and analyst training, among others. Furthermore, other departments are also encouraged and supported to take part in these professional courses.

In addition, in order to improve living standards and create a positive working environment, we focus on soft skill training for all of our employees. Soft skills enhance one’s interaction, productivity and career potential. A workshop named “Unleash Your Potential Through Team Engagement” was successfully conducted in 2015 and is expected to bring in long-term positive changes, helping our employees improve both their work and personal relationships. Other soft skill training programs such as effective communication, presentation, negotiation and leadership are also carried out annually by esteemed training centers in Vietnam.

We invest in our recruitment process, which is conducted with care to choose those with the most relevant knowledge and expertise to succeed in the firm. Career guidance and job recruitment seminars are also carried out at top universities in Vietnam such as Foreign Trade University (FTU) and RMIT University Vietnam. The selected young talent are offered to join trainee programs, experience a professional work environment and prove their competence to become full-time employees, which is why VCSC’s staff is constantly

vcsc’s most vAluAble Assets Are its people. we constAntly look for solutions to nurture And develop tAlent

rejuvenated. Such dynamic and productive employees make great contribution to VCSC’s sustainable growth. Meanwhile, the company’s business expansion provides more opportunities and missions for each individual to enhance their capacity and skills.

Aside from recruitment, retaining and developing our current human resources is paid close

attention. Having determined that opportunities for promotion are the best ways to motivate our employees to develop and contribute, since our establishment, we have created a system to evaluate our employees in each position, which continues to be improved to ensure rewards are aligned with actual performance. There were 18 employees that were promoted in 2015.


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competitive SALArIeSAttrActive benefits

In VCSC, each new recruit receives a

deserving and suitable starting salary which is highly competitive

compared to the labor market.

A detailed salary and bonus policy is developed based on each employee’s

work performance evaluation and contribution to the Company, which is designed to appreciate and boost the spirit of enthusiasm, creativity and responsibility so that the employees can reach the highest productivity at work. In 2015, expenditure on employees, including salaries, bonuses and training fees, reached VND110.5 billion, up 34% from VND82.5 billion in 2014.

VCSC is in compliance with all applicable labor laws and ensures that all of our official employees receive mandatory benefits, such

as social insurance, unemployment insurance, medical insurance and annual health checks.

“With transparent and clear criteria, we strive to provide our employees with both material and spiritual comforts that they deserve.”

Our employees are also offered PVI Care, a high quality healthcare service, whose compensation allows the employees to use modern and premium healthcare services in both on-shore and off-shore treatment centers.


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huMAn resources (Cont.)

individuAl strength leAds to resilience of the

whole group

Corporate culture is a crucial bridge

between the Company and its

human resources. We help each

employee to realize their value

to the company so that everyone

works together to overcome challenges.

Our team is a group with different expertise coming from various

parts of the world such as the USA, France, England, Australia, Canada and India, which forms a diverse work environment. Thus, to gain efficient communication and understanding, we encourage multilateral and equal interaction within the Company. Feedback among divisions and ranks in the company improves productivity and ensures that employees feel positively engaged in their work.

Furthermore, the securities industry, though still in its early stage of development, has been strengthening its position in the Vietnam financial market structure and is full of upside potential as well as rising competition, which requires flexible responsiveness toward changes. Thus, we always encourage creativity and support to put initiatives into practice.

Social activities are periodically undertaken for the whole staff to relax and get to know each other. Such activities include recreational events, sports and group activities, which are for not only VCSC’s staff but also their families. Recently VCSC has carried out “VCSC Family Day”, where our staff and their families interact and find out more about the place where their spouses are working.

moreover, 2!vcsc, the company’s internal magazine, continues to act as a communication channel to share information within the company.


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corporAte culture And spirit

during the past eight years since our establishment, viet capital securities (vcsc) has based our development on a solid foundation of finance, human resources, management systems and corporate governance. we have strongly affirmed our leading position in the financial and securities industry and have fostered strong values at every stage of development to further assist the company’s steady advancement.

Laying astrong foundAtion


www.vcsc.com.vn

MACrOeCOnOMICpicture in 2015

Source: GSO

Source: GSO, FIA

: Industry & Const : Services : Agri & Forestry

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

15

14

13

12

11

10

9

8

USD

bill

ion Yo

Y G

row

th

12%

10%

8%

6%

4%

2%

0%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

F

2017

F

2018

F

vietnAM gdp growth

in the face of unfavorable external conditions ranging from stalled global demand to plunging commodity prices weighing on export growth and a

round of competitive currency devaluations.

GDp growth in 2015 reached a five-year high of 6.7% with resilient gains per quarter,

expanding by 10.6% in 2015 vs. 8.5% in 2014. FDI disbursement in Vietnam reached a record-high of USD14.5 billion, boding fell for future export-oriented output growth.

Manufacturing remained the pillar driving growth,

fdi disburseMent hAs spurred the growth of MAnufActuring sector

: FDI disbursement : Growth of manufacturing (%)

2009 2010 2011 2012 2013 2014 2015

21

OVERVIEW of business environMent in 2015

The return of domestic consumption was aided by the low inflation environment with improving consumer confidence and a rapidly recovering property market.

Consumer confidence 3Q15 - 105

Source: GSO, AC Nielsen

Real retail sales growth 2015 vs. 2014 - 8.40%

Meanwhile, domestic demand marked a cornerstone on its recovery path. real retail sales in 2015 grew at the fastest pace since 2010.

reAl retAil sAles And consuMer confidence

20%

16%

12%

8%

4%

0%

Jan/

10

Apr/

10

Jul/1

0

Oct

/10

Jan/

11

Apr/

11

Jul/1

1

Oct

/11

Jan/

12

Apr/

12

Jul/1

2

Oct

/12

Jan/

13

Apr/

13

Jul/1

3

Oct

/13

Jan/

14

Apr/

14

Jul/1

4

Oct

/14

Jan/

15

Apr/

15

Jul/1

5

Oct

/15


www.vcsc.com.vn

OVERVIEW of business environMent in 2015 (Cont.)

Source: GSO, VCSC

2015 inflation came in at only 0.6% as the transportation category for the first time posted a double-digit drop on annual average basis. However, a five-year high in real retail sales growth and rising spending on discretionary goods (reflected by the impressive growth of auto sales and apartment sales) showed that low inflation was mainly due to the absence of cost-push effects rather than weakening demand.

Inflation hit a 14-year low as global commodity prices, particularly oil prices, continued plunging.

Despite falling 6% against the uS dollar, the dong was among the best performing currencies in the region

inflAtion hit A 14-yeAr low of 0.6% in 2015

0.6% 2015

InFLATIOnA 14 - yeAr LOW

12% 3%

8% 2%

4% 1%

0% 0%

-4% -1%

Dec

/12

Mar

/13

Jun/

13

Oct

/13

Dec

/13

Mar

/14

Jun/

14

Oct

/14

Dec

/14

Mar

/15

Jun/

15

Oct

/15

Dec

/15

CPI MoM (RHS) CPI YoY (LHS)

as neighbors like Indonesia and Malaysia saw their currencies plunge on weakening commodity exports while Thailand and Philippines were dogged by political uncertainty.


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key MACrO FACTOrSimpActing vietnAm mArkets

FOLLOWInG 2014, WhICh SAW

VOLATILe LOCAL AnD InTernATIOnAL

MArkeTS, 2015 COnTInueD TO

WITneSS IMpOrTAnT GLOBAL AnD

DOMeSTIC eVenTS ThAT hAD A prOFOunD

IMpACT On The LOCAL

eCOnOMy. .

global eventsglobal oil prices plunged 35% to end 2015 below us$40/bbl. Low oil prices reduced Vietnam’s fiscal revenue from oil sales although increased tax collections made up the shortfall. At the same time, falling fuel prices boosted consumer confidence and spending while sending inflation to a 14-year low.

most commodity prices witnessed further weakness. From iron ore to rubber, from rice to aquatic products, the plunge of commodity prices caused contraction in Vietnam’s agricultural shipments.

the us fed delivered its first interest rate hike since 2006. Anticipation of the Fed rate hike sparked capital outflows from emerging markets, including Vietnam. It also strengthened the dollar, putting pressure on the dong and most currencies around the globe.

china’s stock market volatility caused turmoil across global financial markets. The Shanghai composite rose 60% through June 12, but by September 30 it had given back all its gains and was actually down 5% y-t-d. The sell-off in China greatly dampened investors’ sentiment towards emerging markets. On the ‘Black Monday’ August 24, when the Shanghai Composite fell 8.5%, the VN-Index lost 29.37 pts, the second biggest loss since HSX’s trading band expansion from 5% to 7% in 2013.

china rocked global currency markets with an unprecedented yuan devaluation. The PBOC devalued the yuan by 5% over three days in August in a bid to kick-start slowing growth. This sent most Asian currencies tumbling. Vietnam’s central bank promptly responded by devaluing the dong by 1% and widening the trading band by 2%.

the eu bailed-out greece to prevent it from exiting the eu. Tension from the Greek debt crisis peaked in Q1 when the country signaled the possibility of exiting the Eurozone. Fears of contagion across the Eurozone made Asian markets, such as Vietnam, appear comparatively stable.

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3


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vietnam signed or concluded negotiations on major free trade agreements. 2015 marked a cornerstone in Vietnam’s aggressive pursuit of trade liberalization policy with the draft conclusion of the long-awaited TPP. Furthermore, many free trade agreements with important trading partners were inked, including Vietnam-EU FTA, Vietnam-Korea FTA, Vietnam-Eurasia FTA and the ASEAN Economic Community agreements came into effect.

circular 36 regulating credit limits and safety assurance ratios of credit institutions came into effect. Rumors that Circular 36 could be delayed proved untrue and it took effect on schedule in an effort to clean up bank balance sheets, reduce cross-holdings and enhance the system-wide health.

decree 60 provided for increased foreign ownership limits on listed companies. This highly-anticipated regulatory change should improve market liquidity and is a step toward upgrading Vietnam from frontier to emerging market status. Only one company actually raised its FOL in 2015, but clarifications on the degree’s provisions are expected to lead to several others in 2016.

m&A activities reached a record-high. Some sizable deals in 2015, such as Modelez acquiring Kinh Do confectionery and Fairfax Asia becoming a strategic investor of BIDV insurance, demonstrated the strong foreign appetite to invest in Vietnam’s growing economy.

the amended investment law came into effect. The amended Investment Law modified the definition of a foreign-invested enterprise as a foreign-invested economic organization (FIEO) with 51% or more of its charter capital held by foreign individual or institutional investors. Moreover, the Law opened up of more investment fields by reducing the number of prohibited business activities from 51 to 6 activities, and the number of conditional business activities from 386 to 267.

the new housing law expanded foreign property ownership. Foreigners (both institutions and individuals) are now allowed to purchase and own residential units, both landed and condominium for maximum 50 years (extension are available). Foreigners can also buy and sublet the properties.

1

2

4

5

6

3

domestic events


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the vn-index rose by

17.5% to its peak in mid-July but the combined effects of china’s

economic difficulties, falling oil prices and the us fed’s rate increase pushed

the market down to close the year with a 6.1% gain. however, strong performances by several blue-chip companies helped vietnam

to outperform our neighboring markets, with the market indices of malaysia, philippines, indonesia and thailand

all recording losses for the year


mArket in 2015vietnAm STOCk


www.vcsc.com.vn

500

540

580

620

660

Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15

Vietnam, 6.12%

Indonesia, -12.13%

Malaysia, -3.90%Philippines, -6.43%

Thailand, -14.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

%∆

Yea

r-to

-dat

e Pe

rfor

man

ce

500

540

580

620

660

Jan/15 Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15 Aug/15 Sep/15 Oct/15 Nov/15 Dec/15

Vietnam, 6.12%

Indonesia, -12.13%

Malaysia, -3.90%Philippines, -6.43%

Thailand, -14.00%

-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

%∆

Yea

r-to

-dat

e Pe

rfor

man

ce

Source: Bloomberg

Source: Bloomberg

vn-indeX perforMAnce in 2015

the vni outperforMed vs. peers


www.vcsc.com.vn

vcsc’s human resources provide the framework for sustainable growth. with a strong conviction to building up a professional and devoted team and instilling long-lasting values, we constantly look for ways to nurture and develop talent, improve our corporate culture and form a motivating work environment.

long - lAstingvAlues

CREATING


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Investment banking in Vietnam has so far only consisted of conventional deals such as M&As, restructuring, divestments, capital and debt issues, corporate separations, listings, privatizations or IPOs. Underwriting is not available due to the limit of the market size and the consultancy firms’ capital size as well as concerns over costs from issuers.

The Vietnam economy posting a growth of 6.7%, a record high in the past 5 years, exceeding the set target and forecasts, the stable macro-economy and Vietnam’s integrating more and more into the world

economy provided the grounds for many M&As and capital issues to fulfill the set targets for 2015, in which there were a great amount of deals consulted by VCSC team. Aside from holding the leading position in providing M&A consultancy service for the food and essential consumer goods industries (the “spotlight” of this kind of this service in Vietnam so far), in 2015, we took initiatives and succeeded in the “emerging” and cyclic areas, i.e. agriculture, real estate and distribution, on the back of facilitated bank loan flows and Vietnam’s integration into the world market accelerated by the Government.

The Vietnamese economy posted growth of 6.7%, a five-year high, exceeding targets and forecasts. A stable macro-economy

and Vietnam’s deepening integration into the world

economy provided the foundation for much

M&A activity and capital issuances, many of which

were consulted by the VCSC team.

VnD300 BILLIOn

prOFIT BeFOre TAx

investment bAnking


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BUSINESS operAtions in 2015

privAtizAtion consultAncy

BUSINESS operAtions in 2015 (Cont.)

Maintaining in the top firms, in

2015, VCSC’s Investment banking (IB) team achieved striking results and contributed greatly

to the Company’s revenue and profit

growth since various M&As, divestments,

privatizations and capital-raising

issues continues to take place.

notable deals consulted by vcsc team in 2015:

Provided consultancy service for Masan Group via Masan Nutri-Science to purchase 70% of the total stake in Anco and 52% of the total stake in Proconco, thereby becoming the largest swine feed producer and the second largest feed producer in Vietnam;

Provided consultancy service for Khang Dien House Trading and Investment JSC to carry out bond and share issues with the total value of over VND1,600 billion.

Provided privatization consultancy service for Vietnam Meat Industries Limited Company (VISSAN), Construction Corporation No.1- Company Limited (CC1), Vietnam Forest Corporation (Vinafor), Vietnam National Tea JSC (Vinatea), Investment and Industrial Development Corporation (Becamex IDC), Power Generation Corporation 3 (EVNGENCO 3), Mobifone Corporation (in process).

Provide listing consultancy service for Binh Dien Fertilizer JSC and consultancy service for Masan Resources in listing registration on UPCoM market, with the total value of listing and trading registration reaching over VND12,000 billion.

Since 2011, VCSC has continuously been recognized via awards by prestigious regional rating agencies. In 2015, we were awarded “Best Investment Bank” both by Finance Asia and EuroMoney, “Best Mid-Cap Corporate Finance House” by Alpha Southeast Asia and “Top 3 advisor during 2005 - 2015” by HNX.

Provided M&A advisory service in landbank expansion for Khang Dien House Trading and Investment JSC and Phat Dat Real Estate Development Corporation, with the total value of these deals reaching VND2,500 billion

m&Am&Alisting Advisory

BeST InVeSTMenT BAnk

By FInAnCe ASIA AnD eurOMOney

bond And shAre issuAnce


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VCSC’s revenue from securities brokerage increased by 17.5% vs 2014 despite a weaker overall market. Liquidity plunged with the total trading value on HSX and HNX declining by 15.8% vs 2014 to VND617 trillion.

VCSC’s steady rise in securities brokerage

was the fruit of our quality-oriented rather than quantity-oriented

strategy, in which human resources play

the key role in supplying the best services and

the most efficient investment consultancy.

securities brokerAge

2015 was the year for VCSC to continue to confirm the sustainable development in its securities brokerage segment whose market share hit 8.39% on HSX, up 29% compared 2014. Unceasing and steady market share expansion affirmed VCSC’s firm position as one of the three largest securities companies in Vietnam.

vcsc’s MArket shAre eXpAnsion in 2010-2015

9.00%

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

2010

1.92%

4.00%

4.48%

6.89% 6.52%

8.39%

2011 2012 2013 2014 2015


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2014 2015 ∆ (%)

Trading volume(Billion shares)

HSX 30.45 28.13 -7.6%

HNX 16.98 11.54 -32.0%

Total 47.43 39.67 -16.4%

Trading values(VND billion)

HSX 533,052 482,046 -9.6%

HNX 199,527 135,035 -32.3%

Total 732,579 617,081 -15.8%

VCSC’s steady rise in securities brokerage was the fruit of our quality-oriented (rather than quantity-oriented) strategy, in which human resources play the key role in supplying the best services and the most efficient investment consultancy. On HSX, with the securities brokerage’s market share of apprx. 8.39%, one VCSC’s broker contributed a 0.1% stake to the market, much higher than the market average.

In addition, VCSC was among the Top 3 securities firms that had the largest number of foreign and domestic institutional clients, including global banks, index funds, etc. VCSC’s institutional sales and brokerage contributes to facilitating flows, introducing Vietnam market’s products as well as attracting foreign investment.

In addition, VCSC was among the Top 3

securities firms that had the largest number of foreign and domestic

institutional clients

building on strengthgAining customer trust



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VCSC’s capability to hold investment conferences and seminars has been affirmed with the successful Vietnam Access Day (VAD) events since in 2012. We are proud that Vietnam Access Day is the largest investment conference in Vietnam, a place to connect leading domestic enterprises with international investors. This is also where several notable M&As were triggered, contributing to facilitating flows, introducing Vietnam market’s products as well as attracting foreign investment.

Determining the potential of Vietnam’s market and foreigners’ interest in the condition where domestic investment information is supplied with limits, VCSC

proactively acts as a bridge between potential investors and local companies. Connecting activities for these two groups are frequently held in several industries like real estate, energy, banking, industrial production, etc. The investors and companies invited to meetings are carefully selected to ensure optimal resource allocation and maximize the effectiveness for all the participants. All the talks and meetings organized by VCSC help improve the transparency of information, provide a multi-dimensional perspective, thereby aiding investors in making effective investment decisions.

We have doubled the capacity for this kind of service. In 2015, VCSC successfully conducted 600 corporate meetings. In its investor survey, AsiaMoney voted VCSC as one of the two best corporate meeting organizers and best brokerage service suppliers in Vietnam.

2015 was the first year for us to bring this event’s miniature to Tokyo (Japan) with the cooperation of Libertad KK to introduce the investment environment and potential companies in Vietnam. Such an event attracted over 120 Japanese retail and institutional investors, and gave special attention to the 6 (six) top companies in Vietnam that VCSC connects to, whose fields are considered to have promising

upside potential, i.e. infrastructure, technology, media, food, retail and real estate. This is also regarded as a particularly meaningful opportunity for all the participants to interact and understand one another, setting the foundation for cooperation agreements in the future, especially in the context where both Vietnam and Japan are among beneficiaries of Trans-Pacific Partnership (TPP). Furthermore, Vietnam is labelled a bright investment destination in the region, a “rising star” among emerging markets. This event to be held abroad was an important milestone that proves VCSC’s capacity and prestige among regional and global investment community.

TOp3brokerAge house in vietnAm

vcsc is the organizer of the most prestigious annual event in vietnam - viet capital vietnam Access day (vAd)

corporate access service earns more and more trust of both domestic and foreign investors


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informAtion technology

Beside closely watching technology innovations and satisfying the needs of the fast-growing Vietnam stock market, we always keeps improving our trading methods to match each client group’s requirements since this is the best way to enhance our competitiveness and inspire as well as support our clients to the fullest. We are also keen on keeping our quality intact and further expand our quality standards.

Customer Services, VCSC closely combines accounting, information technology and brokerage to design and deliver appropriate service packages for each client segments, ensuring quick trading, convenience and confidentiality.

To provide each client with the highest standards in optimal service provision, to minimize operational errors and risks, an internal training team has been formed to carry out cross-training within the team and supply training sessions for related divisions. This team’s mission is to standardize the internal training materials and organize training courses for related divisions.

Additionally, VCSC’s staff constantly carries out research to develop value-added solutions, meeting rising demand and staying in line with the market’s development and professionalization.

VCSC closely combines accounting,

information technology and brokerage to

design and deliver appropriate service packages for each

client segment, ensuring quick

trading, convenience and confidentiality.

securities services

customer services

TOp 3TrADInG pLATFOrM SpeeD

AnD SerCurITy



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A fast, stable, secured multi-lingual online trading system (english, vietnamese and korean)

VCSC’s trading system is considered as a fast, stable and highly secured system. The order processing speed ranks among the top 3 and earns the trust of both domestic and foreign investors. We also developed functions to facilitate the investors’ daily trading such as waiting order, auto alert, order management etc.

Moreover, understanding the need of investors who often travel, VCSC has VCSC has upgraded V-Web, a responsive web application that works on different browsers, and V-Mobile, an specialized application working on mobile devices such as cell phones and tablets, thanks to which customers can easily place trading orders, manage their assets and portfolio, and keep up with the stock board and information every time and everywhere on smart devices with Wi-Fi/3G internet connection.

new website with high responsiveness on different devices

In 2015, we renewed the whole website system to better act as an information channel and support our clients, shareholders and investors. The new website is highly responsive to different devices and screen resolution settings. With the strong growth in information technology at present, more than half of the internet access is from mobile devices. Understanding this demand, our new website is designed with touch and slide movements on touch-sensitive screens. As for desktop or laptop users, it is easy to search for information from menu bars and instructions placed at the top of the page.

Besides, the new website is integrated with features to support clients’ investment decisions, including research reports, transaction history lookup, etc. that are compatible on most browsers such as Chrome, Mozilla Firefox, Internet Explorer 9+, Safari iOS and MacOS, Opera for MacOS and for Windows, available in English and Vietnamese.

highly interactive stock board

VCSC’s stock board has a high update rate and interactivity thanks to the integration of several functions that serve different usage purposes, such as selecting tickers to view information, viewing the real-time price chart of each company, providing related information, supporting users to customize screen structure etc.

towards global standards

In 2015, VCSC continued to upgrade its OMS (Order Management System) software to follow the FIX standard, allowing institutional customers to set up transactions with their own software (Bloomberg or Portware) that are connected with VCSC’s trading system.

In addition, VCSC continued to enhance the BCP (Business Continuity Plan) to ensure the system works smoothly 24/7. The company aims at elevating its quality standards to international levels and currently applies a modern model of information system management.

In 2015, VCSC continued to upgrade its OMS (Order Management System) software to follow the FIx standard, allowing institutional customers to set up transactions with their own software (Bloomberg or portware) that are connected with VCSC’s trading system.


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In the past few years, VCSC’s research staff has dramatically increased in both quantity and quality. Apart from closely updating reports on large caps, we also focus on mid and small caps to meet various demands of short-, mid- and long-term investors, especially when foreign investors, institutions and funds are paying more and more attention to these stocks.

Our research portfolio consisting of market commentaries, reports on strategy, economics, fixed income, companies, sectors, and technical analysis reports, available both in English and Vietnamese, are well-received by investors, leaving good impression on those companies that we have analyzed. The commentaries made by VCSC’s analysts are frequently quoted in the media and used as reference to make investment decisions.

Investing in people is the defining factor in all VCSC’s core businesses. The company has built a young, dynamic and progressive research team led by highly experienced experts in the industry. Besides, training programs are frequently provided via short training courses, focusing on actual assigned tasks. Employees are encouraged and sponsored to take part in professional courses such as the CFA program.

In 2015, VCSC’s reports were placed in top 3 according to a survey by Asia Money Poll.

Our research portfolio consisting of market

commentaries, reports on strategy,

economics, fixed income, companies,

sectors, and technical analysis reports, available

both in english and Vietnamese, are well-received by

investors, leaving a good impression on

those companies that we have analyzed.

reseArch

TOp 3BeST FOr OVerALL COunTry

reSeArCh By ASIA MOney pOLL



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The Vietnam stock market in 2015 did not perform as well as it did in 2014 both in terms of price and liquidity. The volatility was quite strong due to the impact of global and regional events, such as China’s currency devaluation, the Fed’s interest rate policy and highly fluctuating oil prices. In addition, a great portion of closed-end funds founded in 2006-2007 in Vietnam reached maturity and put pressure on the market. In such a condition, fund management faced several difficulties, reflected by the fact that although there

were 50 fund management companies registered, up from 43 in 2014, only 42 were in normal operation (Source: State securities commission of Vietnam).

Meanwhile, Viet Capital Asset Management continued to be profitable and earned a profit of VND3.9bn that was 2.7x that of 2014 thanks to its financial flexibility. It currently manages three funds, which are Viet Capital Healthcare Fund (VCHF), Viet Capital Balanced Fund (VCAMBF) and Viet Capital Education Investment.

viet cApitAl Asset MAnAgeMent’s (vcAM) Activities

investments

VnD335,958 MILLIOn

VnD705,727 MILLIOn

VnD28,334 MILLIOn

VnD186,373 MILLIOn

VnD155,062 MILLIOn

BrOkerAGe

TOTAL reVenue

COrpOrATe ADVISOry

OTherS

InVeSTMenT

As for this segment, we aimed to focus on deals

related to the investment banking rather than short-

term ones, and preferred value investments into

potential companies for which we provided

consultancy services. In 2015, VCSC’s Investments

earned a revenue of VnD155 billion,

+20% vs. 2014.


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In addition to business and client network expansion, we proved our commitment to investing in community development. Last year, we focused on improving community living standards by sponsoring to build charity bridges in Tien Giang province, rural roads in Cam Binh hamlet and donate school stationery to Tan Thien Secondary school also in Binh Thuan province. We also sponsored the charity golf tournament “Swing For Life 2015” and Vietinbank’s Charity Fund.

Furthermore, we also sponsored charity activities initiated by companies in the industry, such as the charity events in celebration of 15 years since the establishment of the Vietnam stock market conducted by the HSX and HNX, and built charity schools in Ha Giang province campaigned by the SSC.

VCSC also formed a internal charity fund, where each VCSC member can help those less fortunate. Keeping people as the key factor for social sustainable development in mind, this fund campaigned and committed to granting scholarships to two students who overcome financial difficulties until they graduate from university; visited and gave gifts to nuns and abandoned children at Tin Thac foster house, in Bao Loc, Lam Dong province.

We evaluate the efficiency of our contributions to the society based on not only stastitics but also the influence of those contributions. By establishing this fund, we have appealed to the sharing spirit of the VCSC team. We expect these activities to help cultivate and nurture the affection in each individual and the whole society.


SOCIAL ActivitiesshAre to build A better future


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VCSC formed a internal

charity fund, where each VCSC’s member can help those less fortunate. keeping people as the key

factor for social sustainable development in mind, this fund campaigned and committed to granting scholarships to two typical examples of students who overcome financial difficulties until they graduate from university; mobilized,

paid visit and gave gifts to nuns and abandoned children at Tin Thac foster

house, in Bao Loc, Lam Dong province.

39

VIETNAm’S outlook for 2016

VCSC expects continued strength

in the economy into 2016 and forecasts

Vietnam’s GDp growth of 6.8%. The industry

and construction sector will continue to drive economic growth

with the manufacturing subsector being the main catalyst on the heels of persistently strong capital inflow

from MnCs.

VCSC expects continued strength in the economy into 2016 and forecasts Vietnam’s GDP growth of 6.8%. The industry and construction sector will continue to drive economic growth with the manufacturing subsector being the main catalyst on the heels of persistently strong capital inflow from MNCs. We believe that the FDI channeled into Vietnam’s export-oriented manufacturing will continue to surge this year as Vietnam concluded critical free trade agreements, including the TPP and Vietnam-EU FTA and also got a boost in intra-regional FDI due to the newly created ASEAN Economic Community (AEC) free trade zone.

Meanwhile, the firm recovery of domestic demand is convincing enough for us to pencil in high growth for the service sector in 2016. The aggressive set-up of foreign-invested enterprises in the non-farm sector will be an important

stimulus for consumer spending, keeping consumer confidence at an elevated level.

However, 2016 will be a year of more prudent monetary policy. Inflation is expected to come back but at a manageable pace of less than 5% as oil prices start to recover in the second half of the year and domestic demand starts to hit up against supply-side constraints. Interest rates also hit bottom last year and are forecast to nudge up in 2016. Meanwhile, the new exchange rate mechanism as well as more stringent forex market management is helping to counter the volatility of global currency markets.

vietnAm’s MACrOeCOnOMICoutlook for 2016


www.vcsc.com.vn

Moderate increases in interest rates and

inflation may keep valuation multiples

in check, but strong earnings growth should drive many companies’ shares to perform well.

Although uncertainties in the global economy will continue to put downward pressure on Vietnam’s stock markets, domestic growth and stability should make 2016 a good year overall especially relative to other markets in the region.

Moderate increases in interest rates and inflation may keep valuation multiples in check, but strong earnings growth should drive many companies’ shares to perform well. VCSC particularly likes companies which benefit from Vietnam’s strong increase in retail sales and consumer confidence, such as retail and FMCG, as well as companies

in sectors that benefit from our increasing trade, manufacturing and foreign investment, including industrial park operators, logistics companies, power suppliers.

Improvements in market liquidity may also help to improve valuations in the long-term. This should be aided by increases in foreign ownership limits under the new regulations and by an increasing number of equitizations and listings, thereby expanding the overall market breadth and depth and thereby providing new investment opportunities.

6.8%VIeTnAM’S GpD FOreCAST 2016

vietnAm’s STOCk MArkeToutlook for 2016

41

the USA, Japan and Thailand, VCSC’s Investment Banking department took initiatives in enhancing its staff by recruiting more experienced managers from international financial markets to be best-prepared for these potential deals. In addition to strengthening its human resource related to investment banking, the corporate finance team also speeds up privatization activities and IPOs so that the whole Investment Banking division could proactively seek for M&A opportunities right from the sell-side.

Although the world economy’s growth is believed to experience difficulties and more or less affect Vietnam, we realize that there are plenty of opportunities for the Vietnam market, especially in M&A activities between foreign and domestic companies in the condition where foreign ownership limits in several industries are increased and the privatization of state-owned enterprises (SOEs) to improve economic efficiency continues to be emphasized. Apart from associating with foreign partners in

investment bAnking

In the past few years, VCSC has made great strides with steady growth rates. In 2015, we continued to gain encouraging results in most of our core businesses, uplifting our position to a new level. In 2016, we aim to maintain

our steady growth, improve all of the businesses, and be well-prepared to welcome opportunities that the market may bring, as follows:

VCSC’S BUSINESS strAtegy for 2016

Item (Unit: VND million)

Actual 2015 2016 target∆ vs. 2015

Value %

Total revenue 705,727 772,322 66,595 9.4%

Total expenses 404,478 372,322 -32,156 -7.9%

Profit before tax 300,960 400,000 99,040 32.9%


www.vcsc.com.vn

securities brokerAge

the focus is to form and train a professional team with ethics and effective investment consulting ability. Beside professional training sessions by professional training organizations, VCSC has formed an internal training team to carry out cross-training within the team and supply training sessions for related divisions.

As for the Securities Services, in 2016, VCSC continues to improves its trading methods including order placement features on VPro, VWeb and VMobile, integrate the OMGEO

CTM (Central Trade Manager) software, etc. to provide more options that meet varying demands of investors. The internal processes are constantly standardized and modified to be in line with changes in regulations and the reality on the ground, guided by a philosophy of streamlining to best facilitate VCSC’s clients. Moreover, the company continues to invest in information technology, strengthening IT interfaces and supplying more appropriate options for various client segments.

Turning to connecting activities and investment promotion, VCSC aims to maintain and make Vietnam Access Day (VAD) an important interaction channel in introducing Vietnam market’s products and attracting foreign investment inflows. In 2016, we also broaden corporate-connecting activities to more companies and investors in order to introduce Vietnam’s potential investment opportunities to large markets such as the USA, Europe and Southeast Asian countries.

reseArch

VCSC concentrates on improving its reports’ quality and the effectiveness of its investment recommendations, increasing its coverage, responding promptly and flexibly to the fluctuations of the market. Furthermore, meetings and talks with Securities Brokerage Division are regularly held to exchange information and have a multi-dimensional perspective on the market and corporate.

Alongside this, we actively established relationships with enterprises, and closely watch changes in operations of large caps as well as mid and small caps to satisfy short-, mid-, and long-term investment demands, especially in the condition where foreign investors, institutions and funds are paying more and more attention to the latter group.

Last but not least, we keep the belief that a strong and growing corporate must stick with its employees and the community. This belief promotes our initiatives to develop the human resource as well as the community. We continue to actively find the meaningful opportunities and effective ways of contribution to better the society.

VnD372,322 MILLIOn

VnD400,000 MILLIOn

VnD722,322 MILLIOn

Total expenses

Profit before tax

Total revenue

TARGET 2016


www.vcsc.com.vn

orgAnizAtionAl chArt

Inspection Committee

Investment Committee

Risk ManagementCommittee

Internal Audit Committee

Operations

Administration Investment Banking Local Brokerage

Human Resources Local Brokerage Investment Banking

PR/Marketing Institution Sales & Brokerage

Legal Research

Information Technology (IT) Proprietary Investment

Finance & Accounting

Customer Service &Product Management

Risk Management& Compliance

Ho Chi Minh City(Head Office)

Ha Noi(Branch)

BOARD OF DIRECTORS

BOARD OF MANAGEMENT

SHAREHOLDERS

CORPORATE MAnAgeMent


www.vcsc.com.vn

personnel breAkdown

17%

83%

personnel breAkdown by educAtion

university degreeHigher

personnel breAkdown by gender

FemaleMale

56%44%

personnel breAkdown by Age

22 - 29

over 4030 - 39

36%

55%

9%

180nuMBer OF eMpLOyeeS

In 2015


www.vcsc.com.vn

risk management is a continuous process conducted throughout the company’s strategy implementation, balancing threats and opportunities and shaping a

framework to enhance decision making effectiveness.

Risk management is a continuous process conducted throughout the company’s strategy implementation, balancing threats and opportunities and shaping a framework to enhance decision making effectiveness. The risk management process is integrated into the corporate culture. The risk culture consists of individual and corporate values, attitude, competence and behavior that help the Company to determine the risk management approach and the Board of Management’s commitments.

The risk management system is effectively developed based on duty segregation in the company, and each manager and each employee has their responsibility in such a

system as defined by laws, processes, internal regulations applied uniformly throughout the company. This system pushes the company’s operational efficiency by enhanced accountability and capacity assessment for each employee.

VCSC performed compliance supervision and risk management according to the guidance of Decision 105/QD-UBCK dated February 26, 2013 of the State Securities Commission regarding the establishment and operation of the risk management system of securities firms. The Company completed the risk management policies and processes based on the ISO 31000 standard, which were operated in sync with the Company’s strategy.

RISK MAnAgeMent


www.vcsc.com.vn

» The supervision of the Inspection Committee, Internal Auditors and the risk management department;

» A clear and transparent risk management strategy shown through risk policies in the long term and in each specific stage and approved by the Board of Directors;

» A deployment plan through comprehensive policies and processes;

» Regular management, inspection and review of The Board of Management;

» The comprehensive promulgation and deployment of risk management policies and processes and risk limits, and the establishment of appropriate information activities of risk management.

the company’s risk management system must assure:

The risk management system is set up to ensure that the company has the capacity to define, measure, monitor and report on risks and to effectively handle key risks, as well as to fully meet its obligations on compliance at all times.

The company ensures that risk management must be independently, consistently and honestly implemented and presented in writing. Professional divisions and the risk management division are organized separately and independent of each other, and the managers of professional divisions are not concurrently the managers of the risk management division and vice versa.

Internal instructions must be clearly stated so that all relevant individuals understand their duties and responsibilities, and could describe the related risk management process in detail. The company must review and update the internal instructions on a regular basis.

the risk management process is demonstrated as follows:

define risks Analyze risks Assess risks

monitor And control the risk limits

handle risks


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RISK MAnAgeMent (Cont.)

risk management function

A company’s risk management function includes a system of standards, procedures and structures as a foundation for the company’s internal control activities. This function influences an employee’s perception of how they are supervised. Therefore, the Board of Directors (BOD) and Board of Management (BOM) place great importance on the value of ethics and set an example for the company’s employees. The environment’s objectives and procedures include:

To affirm the importance of honesty and ethics in the company:

» To build up behavioral principles and standards.

» All BOD, BOM, employees and partners are evaluated based on ethical standards.

» New employees will join a mandatory orientation session about the Code of Practice with appropriate sanctions against cases of violations.

To assure the independence and minimum level of participation of the BOD in the BOM:

» To specify roles and responsibilities in managing and supervising activities of the BOD.

» To establish policies and decision making mechanisms related to meetings between the BOD and the BOM.

» To establish an open and efficient communication channel between the BOD, Internal Auditors and Independent Auditors in order to report in a timely manner the company’s activities.

To assure a proper organization structure, duty segregation and authorization:

» To specify the organization structure, roles, responsibilities, report procedures and evaluate the appropriateness of the structure.

» To specify the appropriate authorities for each management position.

» To create and maintain job descriptions and ensure labor-contract signing activities are conducted correctly.

» To specify the role of Internal Auditors.

To commit to attracting, developing and maintaining human resources:

» To establish requirements on competency, knowledge and skills for all employees.

» To establish a procedure to evaluate job competence and behavior.

» To associate standards, requirements and evaluations on competence and knowledge with policies and decisions on recruitment, training and human resource retention.

» To draw up a backup plan for key positions.


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duty segregation and authorization

The company’s structure centers on central supervision, with vertical management starting from the BOD, the BOM, Managing Directors, Managers and Deputy Managers.

The CEO operates the company’s daily activities in accordance with delegated authority as well as those functions directly approved and attaching personal responsibility as given by the BOD. Directors, Managers/Deputy Managers directly manage and are responsible to the CEO and the BOD.

The company executes the duty segregation following the top-down mechanism. At the company’s headquarters and branches, Managing Directors will assign responsibilities for deputy managers and each employee. Employees will be guided by senior employees or managers to understand the procedures for their positions. Managers also ensure cross-referencing within one department or between departments.

risk management strategy for 2016

Global stock market uncertainty and volatile oil prices are expected to increase the Company’s operational risks. With Circular 123/2015/TT-BTC issued by the Ministry of Finance on guidance for trading in the Vietnam stock market, in which intra-day trading and intra-day trading payment are allowed, we continue to improve our risk management process in line with the law and market movements.


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Ms. NGUYEN THANH PHUONG

Founder & Chairperson (Viet Capital)

As a founder of Viet Capital, Ms. Phuong has served as the Chairperson of Viet Capital Asset Management and Viet Capital Securities since the establishment of the firm in 2007. With the firm’s acquisition and launch of Viet Capital Bank (formerly Gia Dinh Bank), Phuong has also been elected as member of the BOD of the bank.

In her leadership role at Viet Capital, she is responsible for the strategic management of the firm and the execution of the entire company’s vision to become the leading financial services firms in the market. In her past career, she has worked as the Deputy CFO of Holcim (Vietnam) Ltd, a wholly-owned subsidiary of the Swiss multinational conglomerate and one of the largest foreign direct investors in Vietnam. Prior to founding Viet Capital, she worked as an Investment Director for Vietnam Holding, a Swiss-based fund dedicated to opportunistic investments in Vietnam and listed on the London AIM.

Phuong received her BA in Business Administration (Banking and Finance) at the National Economics University, and her MBA in Financial Management from the International University in Geneva, Switzerland.

boArd of director’s report

introduction


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Mr. TO HAI

Member of the Board of Directors

Mr. HUYNH RICHARD LE MINH


Hai is one of the founders, a member of the board, and the Chief Executive Officer of VCSC. Prior to founding VCSC, Hai was a Deputy Managing Director and Ho Chi Minh Branch Director at Bao Viet Securities.

Hai has a deep understanding of investment banking in Vietnam. He is one of the most successful and reputable professionals in the industry thanks to a long and proven track record. Prior to Bao Viet Securities, Hai worked for Dong A Securities as a Business Development Manager.

He holds a Bachelor of Arts in Industrial Management from the Technical University of Ho Chi Minh City, and an MBA degree specializing in Banking and Finance from the University of Sydney, Australia. He is fully licensed by the State Securities Commission of Vietnam.

Minh is VCSC’s Chief Operating Officer and a member of the Board of Directors. He brings over 18 years of experience in professional accounting and management in Vietnam, the United States, and Australia.

Before joining VCSC, Minh was a Director at PricewaterhouseCoopers Vietnam where he worked in the assurance practice providing services to both multinational and local clients in the areas of financial audits and advisory.

Minh has a Bachelor of Commerce from the Curtin University of Australia and is a CPA in Australia.


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Bao serves as Director of the Ha Noi branch and a Deputy General Director of VCSC. He brings more than 15 years of experience in banking and securities.

Prior to joining VCSC, Bao was a Deputy Director and Director of BIDV Securities. Bao has a Bachelor of Bank credit from the Banking University, and a Bachelor of Finance from the Ha Noi Finance and Accounting University.

Thang serves as an external board member of VCSC. He is the Chairman of Real Estate Finance Corporation (Refico), a company specializing in real estate projects.

Refico currently invests in and develops numerous real estate projects with a combined value of over US$300 million, consisting of high-end apartments, resorts, offices, and commercial buildings. Thang was trained as a lawyer in Germany and the UK. He is one of the founders of Thang & Associates law firm, and one of the founders and General Director of Saigon Securities (SSI). Thang also serves as the Chairman of the investment committee of Aureos, a UK fund specializing in private equity investments.

Mr. NGUYEN QUANG BAO


Mr. TRAN QUYET THANG


boArd of director’s report (Cont.)

introduction (cont.)


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Henry currently serves as the Managing General Partner of IDG Ventures Vietnam, a private equity firm focused on consumer, technology, media, and telecom investments in Vietnam. One of three General Partners, Henry concentrates on fund strategy, government relations, general management and operations, and communications.

Prior to founding IDGVV, Henry has worked at Goldman Sachs, Harvard Medical School and Northwestern Memorial Hospital. Henry is the Developmental Licensee for McDonald’s restaurants in Vietnam and the Chairman and Publisher of Forbes in Vietnam. He also established the Saigon Heat pro basketball team, which competes in the ASEAN Basketball League. He is also the Managing Partner of the Los Angeles Football Club (LAFC), the newest club in Major League Soccer (MLS).

Henry is a Young Global Leader of the World Economic Forum and an Asia 21 Fellow of the Asia Society. He is the Chairman of the Board of Advisors for Operation Smile Vietnam and has served on the Board of the American Chamber of Commerce in Vietnam. He also serves on the Board of Viet Capital Securities and the Advisory Board of British University Vietnam.

Henry earned his B.A. in Classics at Harvard University, and his M.D. and M.B.A. from Northwestern University Medical School and the Kellogg School of Management.

Tuan Pham is currently the CEO of Viet Capital Asset Management and Head of Viet Capital Healthcare Fund (VCHF). He supervises overall business operations of Viet Capital Asset Management and oversees capital market and private equity investments. Besides playing the main role of leading VCHF, Tuan is also in charge of all offshore investment funds. He is also involved in Viet Capital’s strategies and business development, investor relations, fund raising activities and represented Viet Capital in several Boards of Investees’ companies.

Tuan previously held the position of Chief Financial Officer at VinaCapital from the period 2005-2007, having the overall responsibilities in finance, human resources, and operation of the company.

Prior to VinaCapital and Viet Capital, Tuan also had more than 10 years of experience in taxation and assurance in PricewaterhouseCoopers (Vietnam and Australia) and Dutch Lady Vietnam as Tax Manager and Business Assurance Manager, respectively.

Tuan earned a Bachelor degree in Accounting from Sydney University of Technology, Australia and is currently Fellow of the Australian CPA (FCPA).

Mr. NGUYEN HOANG BAO (Henry nguyen)


Mr. PHAM GIA TUAN



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boArd of directors’ report in 2015

VCSC’s Board of Directors (BOD) carefully executed its management and operating responsibilities proposed at the Annual General Meeting (AGM). In particular, it directed the Board of Management (BOM) to achieve the business targets, while monitoring operating performance approved by the shareholders.

In addition, the BOD regularly collaborated with the Inspection Committee to control other matters such as:

» Pursuing resolutions and operating targets set by the AGM and BOD.

» Monitoring the CEO’s performance to ensure the operations of the Company are safe, compliant with legal regulations and in line with AGM resolutions.

ACTIVITIeS 2015of boArd of directors in

boArd of directors’ meetings in 2015

no. BoD member positionNumber of meetings attended

% attendance

reason for absence

1 Mrs. Nguyen Thanh Phuong Chairperson 4 100%

2 Mr. To Hai Member 4 100%

3 Mr. Tran Quyet Thang Member 3 75% Business trip

4 Mr. Nguyen Hoang Bao Member 1 25% Business trip

5 Mr. Nguyen Quang Bao Member 4 100%

6 Mr. Richard Huynh Member 4 100%

7 Mr. Pham Gia Tuan Member 3 75% Business trip



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resolutions/ decisions of boArd or directors in 2015

no. Resolution/Decision no. Date Contents

1 01/2015/QD-HDQT.VCSC 29 January 2015 Promulgation of risk management policy for 2015

2 02/2015/ QD-HDQT.VCSC 01 January 2015 Approval of internal policy in 2015

3 03/2015/QD-HDQT.VCSC03 February

2015Approval of the implementation of signed policy in 2014

4 04/2015/QD-HDQT.VCSC 23 April 2015The second dividend payment for 2014 and the first dividend advance for 2015

5 05/2015/NQ-HDQT.VCSC 10 June 2015Resolution to conduct a rights issue to the Chairperson and employees in 2015

6 06/2015/NQ-HDQT.VCSC 03 August 2015 Business operation



9 09/2015/NQ-HDQT.VCSC19 October

2015VCSC’s loans and solutions

10 10/2015/NQ-HDQT.VCSC19 October

2015VCSC’s business plan

11 11/2015/NQ-HDQT.VCSC20 November

2015

To deploy the share issue plan to employees, to promulgate the regulations of share issue to Viet Capital Securities JSC (VCSC)’s employees and the list of employees who could purchase these shares pursuant to the Shareholder Resolution 01/2014/NQ.DHDCD and the Shareholder Resolution 01/2015.DHDCD

12 12/2015/NQ-HDQT.VCSC30 November

2015To add the Item 13 to the Resolution 11/2015/NQ-HDQT.VCSC

13 13/2015/NQ-HDQT.VCSC30 December

2015To conduct a share buyback


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The BOD’s formal meetings in 2015

discussed and agreed with the following:

along with highlights of market movements, and minimize negative impact. We put emphasis on building professional and devoted human resources that aid us to set the highest professional standards and consistency of service to our customers, thereby helping raise the Vietnam stock market’s scale and professionalism.

» regarding internal management, VCSC has developed a positive, sound and multicultural working environment to adapt to new conditions, especially as Vietnam is intensively integrating into the global market with several economic cooperation agreements signed.

» with respect to risk management, the BOD approved of risk management regulations in compliance with the law. VCSC established a team in charge of

monitoring and projecting market fluctuations to give appropriate solutions, especially ones to timely modifying margin lending activities.

» As for investments, VCSC recruited new employees with appropriate knowledge and experience, particularly those who had worked in developed country markets, and established association with prestigious regional securities firms, connecting opportunities for both buy-side and sell-side.

» As regards the securities brokerage, VCSC re-evaluated its entire trading software and the service quality through customer surveys, then created plans to improve the quality of the Company’s service; took initiative in researching new appropriate product packages that are highly competitive and conducted margin lending activities with more caution.

VCSC continued to invest in its human resources and sustained its place among the top 3.

The Company carried out a bond issue to supplement the capital for investments and securities services.

» regarding investments, VCSC aimed to make value-investing investments into fast growing companies, in which food & beverage, FMCG and insurance are fields of interest.

the bod’s meetings AnAlyze the compAny’s situAtion And provide business guidAnce for 2015

Maintain the balance among segments, especially strengthening the three core businesses, which are securities brokerage, investment banking and investments, to a sustainable development triangle. Focus on vertical growth, make the most of existing advantages



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2015 ended with the VN-Index increasing 6.1% and the market cap rising by 15.8% to nearly USD60 billion while most of the regional markets retreated. Compared to regional neighbors such as Thailand, Singapore and Indonesia with a market caps of more than USD400 billion each, the scale of the Vietnam market is still small and has much upside potential. Thus, promotion activities to attract FDI flows into potential domestic enterprises as well as FII flows into Vietnam stock market are being reinforced. In 2015, the registered FDI in Vietnam was USD23 billion while disbursed FDI reached a record high of USD14.2 billion. We expect the amount of FDI disbursement will be USD16 billion in 2016. Thus, we aim to:

OuTLOOk TOWArD 2017

promotion activities to attract FDI flows

into potential domestic enterprises as well as FII flows into Vietnam

stock market are being reinforced.

Raise the charter capital with the use of retained earnings. Maintain the Company to be a securities firm with business and finance independence, set to follow a professional financial corporate model in the future, providing a complete service package to its clients and improving proactivity and competitiveness.

Seek out strategic partners that are prestigious foreign securities firms or financial institutions, fulfilling the goal to be the securities firm with the largest market share and the most effective investment banking model in the industry.

Build and enhance the information technology system and risk management system, as well as develop a flexible and dynamic product development team. Combine two brokerage models: full package for premium clients and institutional investors, and an online package for retail customers.

Invest in developing the Company’s trademark through online media channels.

Redirect investments from listed companies to non-listed in industries that benefit from economic growth.

Reinforce internal management in 2016, be well-prepared for VCSC’s listing on the stock exchange in 2017.

uSD16 BILLIOnFDI DISBurSeMenT FOreCAST In 2016


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vcsc’s shareholder structure as at 31/12/2015

structure of shareholders in shares structure of shareholders in equity

ItemShareholders

number of shares Value (VnD1,000) percent (%)

Total equity 50,000,000 500,000,000 100.00%

Special shareholders

Board of Directors. Board of Management. Inspection Committee. Chief Accountant

10,936,871 109,368,710 21.87%

Other shareholders

Individuals. Institutions 39,063,129 390,631,290 78.13%

Total equity 50,000,000 500,000,000 100.00%

Shareholders holding over 5% stake 19,521,637 195,216,370 39.05%

Shareholders holding 1-5% stake 22,171,060 221,710,600 44.34%

Shareholders holding below 1% stake 8,307,303 83,073,030 16.61%

other shareholdersSpecical shareholders Shareholders holding over 5% stake

Shareholders holding below 1% stake

Shareholders holding 1 - 5% stake

44,34

%

78,13

%

21,87

%

39,05%

16,5

1%

shAreholders informAtion



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introduction

chAnges in the inspection committee’s personnel structure: NONE

Nguyet works for Viet Capital Bank and is in charge of managing the accounting of the bank. She has many years of experience in finance, accounting, and auditing in leading companies in Vietnam. She graduated from the Ho Chi Minh’s Economics University with a major in Accounting and Auditing.

Khoa works for Viet Capital Bank. Khoa had been with VCSC since 2007 as Chief Accountant of VCSC before being promoted to VCSC’s Chief Financial Officer (CFO). Previously, he had been a chief accountant at VinaCapital, managing the financial department of the company. Khoa holds a Bachelor of Finance and Banking from Ho Chi Minh Banking University.

Ms. BUI THI MINH NGUYET

Head of Inspection Committee

Mr. HAN ANH KHOA

Member of Inspection Committee

Uyen serves as Relationship Manager of Corporate Customer Service Department of HDBank. Before that, she had experience in securities as Investment Officer at Phuong Nam Securities. She got her Bachelor Degree from University of Economics and Law.

Ms. DANG NGOC THAO UYEN

Member of Inspection Committee


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inspection coMMittee’s report

Enforcing the responsibilities and authority prescribed in the Company’s Charter and Law on Enterprises, the Inspection Com-mittee monitors and evaluates operations, financial reporting and disclosure, and compliance with applicable regulations. Spe-cifically:

» financial position: The Inspection Committee agreed with the contents of VCSC’s 2015 financial statements prepared by the Board of Management and Accounting Department. In material aspects, the balance sheet reasonably reflects VCSC’s financial position as of December 31, 2015 and the profit and loss statement and cash flow statements from January 1, 2015 to December 31, 2015 are in accordance with accounting norms.

» compliance with laws and Agm and bod resolutions: The Inspection Committee ensured that all of VCSC’s business operations were executed in compliance within the set targets for safe, sustainable growth, AGM and BOD resolutions and current laws. In addition to expanding the business and sustaining growth, VCSC’s management team also focused on the implementation of policies, decisions, and guidelines of the BOD and AGM throughout the company.

inspection coMMittee’s report (Cont.)

Activities of the inspection committee in 2015


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Mr. TO HAI

Chief Executive Officer

Mr. DINH QUANG HOAN

Deputy Chief Executive Officer

See at page 51 “Board of Director”

See at page 51 “Board of Director”

Hoan has over 14 years of experience in finance, accounting and auditing. Before joining VCSC, he was a Deputy Director of corporate finance at Bao Viet Securities’ (BVSC) Ho Chi Minh City Branch, where he was in charge of share issuance, share listing, underwriting, privatization and corporate restructuring.

Prior to BVSC, Hoan worked for KPMG as a Manager of the auditing department, which covered all auditing projects, financial advisory, corporate restructuring and M&A services for multinational and domestic corporations.

Hoan holds a Master of Finance and a Bachelor of Finance and Auditing from the Economics University of Ho Chi Minh City. He also holds a CPA from the Ministry of Finance and completed the ACCA certification of the United Kingdom.

introduction

Mr. NGUYEN QUANG BAO

Deputy Chief Executive Officer


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boArd of MAnAgeMent

key personnel

Mr. NGO VINH TUAN

Managing Director, Head of Investment Banking

Mr. Vinh-Tuan has 20 years of experience in investment and financial advisory services. Before joining VCSC, he was a member of the Investment Committee and Board Director at Aden Global Capital/Smith Management, a US hedge fund specializing in event driven opportunities. He was also a Research Director and the lead analyst for the fund. Prior to that, he worked as Investment Director of France’s sovereign fund, Fonds Stratégique d’Investissement (“FSI”), Paris, France.

Mr. Vinh-Tuan used to work as an analyst and investment banker for several prestigious organizations including, Credit Suisse and Bank of America Merrill Lynch in London, UK and Deloitte Consulting in Paris, France.

Mr. Vinh Tuan holds a Master of Business Administration (MBA) degree, double major in Finance and Entrepreneurial Management from The Wharton School, University of Pennsylvania, Philadelphia, USA and a Bachelor of Arts (BA) degree from Ecole Supérieure de Commerce, Grenoble, France.

boArd of MAnAgeMent (Cont.)

Mr. MICHEL TOSTO

Managing Director, Head of Institutional Sales & Brokerage

Michel joined VCSC in March 2010. Prior to that, he worked for VinaSecurities where he built much of the brokerage division from the ground up and created well-received publications such as the Vietnam Primer and the Vietnam Market Mechanics.

Before working with VinaSecurities, Michel worked in a variety of industries, including advertising and IT in Canada, banking and financial services in Australia and business consulting in Vietnam. He brings over 11 years of client and project management experience.

Michel holds a Master of Science (MS) degree in International Management from HEC Montreal School of Business, Canada, and a Bachelor of Business Administration (BBA) degree specialized in Economics and Marketing.


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Mr. BARRY WEISBLATT

Director, Head of Research

Barry came to VCSC from VPBank Securities, where he built the research department and was Head of Research for more than two years. Before joining VPBS, he had more than 15 years of experience in structured finance, corporate finance advisory, IPOs and merger & acquisitions. Barry held senior positions at Deutsche Bank in Singapore, CIMB in Kuala Lumpur and Bank of America in Singapore, Hong Kong and Chicago where he structured and executed securitization transactions for issuers across Singapore, Malaysia, and Korea including the issuance of asset backed securities and synthetic CLOs. Prior to coming to Asia, Barry completed IPO and M&A transactions for McDonald & Company Securities, an investment banking & brokerage firm in Cleveland, Ohio and was a credit analyst at Key Bank, also in Cleveland.

Barry holds an MBA from the Wharton Business School and a Bachelors of Science in Finance from Miami University.

Ms. CHU HAI YEN

Director, Head of Finance & Accounting

Yen has more than 12 years of experience in finance and accounting as well as a tax advisor in multiple fields such as textile, assurance, real estate and car imports. She is one of the active members who contributed to make VCSC’s Finance and Accounting department and its clients stronger.

In addition, Yen plays an important role in the management and supervision of VCSC, implementation of accounting policies consistent with healthy development requirements based on the company’s compliance and risk management with accounting standards and government regulations to ensure the truthfulness and accuracy of financial accounting reports and attract fund raising.

Yen has both a Bachelor of Arts (BA) in Accounting and Auditing and a Business Administration degree, and she has earned an excellent Chief Financial Officer (CFO) certificate from the Ho Chi Minh’s Economics University.


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Ms. CHAU THIEN TRUC QUYNH

Director, Head of Local Brokerage, Head Office

Quynh has over 14 years of experience in the Vietnamese stock market, and is currently the Director of our local brokerage division in Ho Chi Minh City. From 2005 to 2007, she was a Deputy Manager of corporate finance and then head of brokerage at Vietcombank Securities.

Prior to that, she worked as an advisory associate for the Bank for Investment and Development of Vietnam Securities (BSC). Her extensive experience in the industry gives her the edge needed to help clients achieve their financial goals. Ms. Quynh holds a Bachelor of Arts (BA) and a Master of Business Administration (MBA) in Finance-Banking from Ho Chi Minh Economics University.

key personnel (cont.)

Mr. LY DIEN ANH

Director, Head of Local Brokerage, Nguyen Cong Tru Office

Starting his career at Bao Viet Securities in 2000, Anh is one of the pioneers of Vietnam’s stock market. At VCSC, he serves as the Director of the local brokerage division on Nguyen Cong Tru Street, Ho Chi Minh City.

Before joining VCSC, Anh was a Director of Local Brokerage at Dong A Securities, where he led a team to look for, evaluate and execute investment opportunities. Anh holds a Bachelor of Finance and Banking (BA) degree from Ho Chi Minh Economics University.

boArd of MAnAgeMent (Cont.)


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Mr. PHAM THANH VU

Director, Head of Local Brokerage, ABS

Mr. Vu has 11 years of experience in securities brokerage. With experience gained from the early stages of the market, Mr. Vu has focused on building and developing ABS Brokerage Department (Active Brokerage System) - a creative working environment which inspires and nurtures young talent and new ideas.

ABS’ human resources are developed from the recruitment of good trainees, engaging in professional internal training and practical skills. Going through a rigorous screening process, the selected trainees will become full-time employees, and pivotal factors that contribute to improving service quality as well as competitive advantages in the market, while actively building a dynamic and solidarity working environment at ABS.


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success, in our definition, is not a destination, but a journey to develop strong values. As such, we endeavor to achieve success all along our path, defend our position as an industry-leading financial services provider in vietnam and gradually penetrate the regional market.

HARVESTINGsuccess


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STATeMenTSfinAnciAl

67

CORPORATE inforMAtion

establishment and operation Licence no.

68/UBCK-GP dated 6 November 2007 issued by the State Securities Commission. The Establishment and Operation Licence was amended several times and the latest amendment No. 05/GPDC-UBCK was issued on 1 February 2016.

Board of directors (“Bod”) Ms. Nguyen Thanh Phuong ChairpersonMr. To Hai MemberMr. Huynh Richard Le Minh MemberMr. Tran Quyet Thang MemberMr. Nguyen Hoang Bao MemberMr. Nguyen Quang Bao MemberMr. Pham Gia Tuan Member

Board of management (“Bom”) Mr. To Hai Chief Executive OfficerÔng Nguyễn Quang Bảo Deputy Chief Executive OfficerÔng Đinh Quang Hoàn Deputy Chief Executive Officer

Legal representative Mr. To Hai Chief Executive Officer

principal activities The principal activities of Viet Capital Securities Joint Stock Company are to provide brokerage services, securities trading, corporate finance consultancy, underwriting and custodian services.

head office 15th Floor, Bitexco Financial TowerNo. 2, Hai Trieu Street, District 1Ho Chi Minh City, Vietnam

auditor PricewaterhouseCoopers (Vietnam) Limited


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stAteMent of the responsibility of the boArd of MAnAgeMent in respect of the sepArAte finAnciAl stAteMents

The Board of Management of Viet Capital Securities Joint Stock Company (“the Company”) is responsible for the sep-arate financial statements which give a true and fair view of the financial position of the Company as at 31 December 2015 and the results of its operations, cash flows and changes in equity for the year then ended. In preparing these separate financial statements, the Board of Management is required to:

» select suitable accounting policies and then apply them consistently;

» make judgments and estimates that are reasonable and prudent; and

» prepare the separate financial statements on a going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Board of Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Company and which enable separate financial state-ments to be prepared which comply with the basis of accounting set out in Note 2 to the separate financial state-ments. The Board of Management is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other errors.

ApprovAl of the sepArAte finAnciAl stAteMents

We hereby approve the accompanying separate financial statements as set out on pages 5 to 40 which give a true and fair view of the financial position of the Company as at 31 December 2015 and the results of its operations, changes in equity and cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and prevailing regulations on preparation and presentation of financial statements applicable to securities companies operating in Vietnam.

Users of these separate financial statements should read them together with the consolidated financial statements of the Company and its subsidiary (“the Group”) as at and for the year ended 31 December 2015 in order to obtain full information of the financial information, results of operations and cash flows of the Group as a whole.

on behalf of the Board of Management

to HAI Chief executive officer

Ho Chi Minh City, Vietnam, March 18 2016


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independent Auditor’s report to the shAreholders of viet cApitAl securities Joint stock coMpAny

We have audited the accompanying separate financial statements of Viet Capital Securities Joint Stock Company (“the Company”) which were prepared on 31 December 2015 and approved by the Board of Management on March 18 2016. The separate financial statements comprise the balance sheet as at 31 December 2015, the income statement, the cash flow statement, the statement of changes in equity for the year then ended and explanatory notes to the separate financial statements including significant accounting policies, as set out on pages 5 to 40.

tHe BoArD oF MAnAGeMent’S reSponSIBIlIty to tHe SepArAte FInAnCIAl StAteMentS

The Board of Management of the Company is responsible for the preparation and the true and fair presentation of these separate financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Corpo-rate Accounting System and prevailing regulations on preparation and presentation of financial statements appli-cable to securities companies operating in Vietnam and for such internal control which management determines is necessary to enable the preparation and fair presentation of separate financial statements that are free from material misstatement, whether due to fraud or error.

AuDItor’S reSponSIBIlIty

Our responsibility is to express an opinion on the separate financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical standards and requirements, plan and perform the audit in order to obtain reasonable assurance as to whether the separate financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the sepa-rate financial statements. The procedures selected depend on the auditor’s judgment, including an assessment of the risks of material misstatement of the separate financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and true and fair presentation of the separate financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting esti-mates made by the Board of Management, as well as evaluating the overall presentation of the separate financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

INDEPENDENT AUDITOR’S

report


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PricewaterhouseCoopers (Vietnam) Ltd,8th Floor, Saigon Tower, 29 Le Duan Street, District 1, HMC, VietnamTel: +84 (8)38230796, www.pwc.com/vn

AuDItor’S opInIon

In our opinion, the separate financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2014, its statement of changes in equity, its financial performance and cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Corporate Accounting System and prevailing regulations on preparation and presentation of financial statements applicable to securities companies operating in Vietnam.

For and on behalf of pricewaterhouseCoopers (Vietnam) ltd.

rICHArD peterSAudit Practising Licence No.0561-2013-006-1Authorised signatory

Ho nGoC tHAnGAudit Practising Licence No. 2262-2013-006-1

Report reference number: HCM5120 Ho Chi Minh City, March 18 2016

As indicated in Note 2.1 to the separate financial statements, the accompanying separate financial statements are not intended to present the financial position, results of operations, cash flows and changes in equity in accordance with accounting principles generally accepted in jurisdictions other than Vietnam, and furthermore their utilisation is not designed for those who are not informed about Vietnam’s accounting principles, procedures and practices.


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Code ASSetS note 2015VND

2014VnD

100 CUrrent assets 3,020,199,878,875 2,707,101,348,631

110 Cash and cash equivalents 3 816,802,269,813 618,777,857,754

111 Cash 756,667,869,813 603,777,857,754

112 Cash equivalents 60,134,400,000 15,000,000,000

120 short-term investments 5(a) 2,037,796,714,292 1,939,716,412,996

121 Short-term investments 2,047,513,961,175 1,989,878,032,819

129Provision for diminution in value of short-term investments

(9,717,246,883) (50,161,619,823)

130 accounts receivable 160,968,944,890 141,064,801,745

131 Trade accounts receivable 6 31,572,740,496 81,759,451,901

132 Prepayments to suppliers 299,474,277 168,397,848

135 Receivable for securities transactions 3,016,582,573 1,999,770,850

138 Other receivables 7 136,838,362,544 65,051,306,146

139 Provision for doubtful accounts 8 (10,758,215,000) (7,914,125,000)

140 inventories 39,837,900 14,179,400

150 other current assets 4,592,111,980 7,528,096,736

151 Short-term prepayments 3,635,033,492 3,945,993,121

154 Other taxes receivable 774,159,874 486,702,089

158 Other current assets 182,918,614 3,095,401,526

200 LonG-term assets 56,537,670,505 63,219,168,401

220 Fixed assets 14,899,441,202 19,081,304,859

221 Tangible fixed assets 9(a) 10,146,925,851 12,172,083,867

222 Cost 34,664,169,214 34,208,057,066

223 Accumulated depreciation (24,517,243,363) (22,035,973,199)

227 Intangible fixed assets 9(b) 4,752,515,351 6,217,945,992

228 Cost 25,875,204,082 24,097,057,822

229 Accumulated amortisation (21,122,688,731) (17,879,111,830)

230 Construction in progress 9(c) - 691,275,000

250 Long-term investments 16,670,000,000 13,894,101,873

258 Other long-term investments 16,670,000,000 14,160,000,000

259Provision for diminution in value of long-term investments

- (265,898,127)

260 other long-term assets 5(b) 24,968,229,303 30,243,761,669

261 Long term prepaid expenses 10 9,817,929,938 14,560,154,043

262 Deferred income tax assets 11 - 3,036,418,261

263 Deposit in the Settlement Support Fund 12 10,870,264,731 8,370,264,731

268 Other long-term assets 13 4,280,034,634 4,276,924,634

270 totaL assets 3,076,737,549,380 2,770,320,517,032

Form B 01 - CtCK

As at 31 December

BALANCE

sheet


www.vcsc.com.vn

As at 31 December

Code ASSetS note 2015VND

2014VnD

300 LiaBiLities 2,103,940,445,788 1,963,437,293,579

310 Current liabilities 2,103,548,405,369 1,963,043,681,863

311 Short-term borrowings 14 535,500,000,000 266,511,750,000

312 Trade accounts payable 15 - 42,576,511,700

313 Advance from customers 16 799,974,087,998 840,646,942,003

314 Taxes and other payables to the State Budget 17 19,036,552,748 20,165,848,416

315 Payables to employees 37,287,139,767 29,404,388,304

316 Accrued expenses 18 25,826,747,834 15,462,148,850

319 Other short-term payables 19 70,735,948,495 14,355,897,465

320 Payables for securities transactions 20 613,391,418,621 732,565,480,975

321Dividends payable, bond principals and interest payables

21 1,286,555,750 844,759,994

323 Bonus and welfare fund 509,954,156 509,954,156

330 Long-term liabilities 392,040,419 393,611,716

333 Other long-term payables 79,500,569 83,611,716

335 Deferred income tax liabilities 11 2,539,850 -

359 Provision for indemnification to investors 310,000,000 310,000,000

400 owners’ eQUity 972,797,103,592 806,883,223,453

410 Capital and reserves 972,797,103,592 806,883,223,453

411 Share capital 22 500,000,000,000 500,000,000,000

417 Reserve to supplement charter capital 34,112,989,558 21,941,382,767

418 Financial reserve 34,112,989,558 21,941,382,767

420 Undistributed earnings 329,814,136,834 186,959,180,869

429 Non-controlling interests 74,756,987,642 76,041,277,050

440 totaL resoUrCes 3,076,737,549,380 2,770,320,517,032

off bAlAnce sheet iteMs

Included in cash and cash equivalents are balances held in foreign currency of US$25,895, EUR129 and GBP2,092 (as at 31 December 2014: US$153,344 and EUR140).


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off bAlAnce sheet iteMs (continued)

Items Code 2015VND

2014VnD

6. Custody securities 006 12,336,958,930,000 13,929,925,470,000

In which:

6.1. Trading securities 007 9,060,312,460,000 9,528,677,470,000

6.1.1. Trading securities of the Company 008 65,362,130,000 69,343,990,000

6.1.2. Trading securities of domestic customers 009 8,135,883,470,000 9,003,542,350,000

6.1.3. Trading securities of foreign customers 010 859,066,860,000 455,791,130,000

6.2. Temporary non-trading securities 012 113,879,200,000 632,743,550,000

6.2.2. Temporary non-trading securities of domestic customers 014 100,499,200,000 613,680,930,000

6.2.3. Temporary non-trading securities of foreign customers 015 13,380,000,000 19,062,620,000

6.3. Mortgaged securities 017 2,242,005,090,000 3,515,051,960,000

6.3.1. Mortgaged securities of the Company 018 30,775,000,000 40,100,000,000

6.3.2. Mortgaged securities of local investors 019 2,211,230,090,000 3,474,951,960,000

6.5. Securities awaiting for settlement 027 210,853,320,000 198,988,390,000

6.5.1. Securities awaiting for settlement of the Company 028 9,000,000,000 -

6.5.2. Securities awaiting for settlement of domestic customers 029 201,502,720,000 198,512,890,000

6.5.3. Securities awaiting for settlement of foreign customers 030 350,600,000 475,500,000

6.7. Securities awaiting for transacting 037 709,908,860,000 54,464,100,000

6.7.2. Securities awaiting for transacting of domestic customers 039 709,893,840,000 3,427,320,000

6.7.3. Securities awaiting for transacting of foreign customers 040 15,020,000 51,036,780,000

7. Custody securities of unlisted public companies 050 2,737,497,850,000 190,270,260,000

In which:

7.1. Trading securities 051 1,673,013,490,000 188,682,360,000

7.1.1. Trading securities of the Company 052 4,432,220,000 16,498,710,000

7.1.2. Trading securities of domestic customers 053 1,624,277,790,000 135,721,440,000

7.1.3. Trading securities of foreign customers 054 44,303,480,000 36,462,210,000

7.3. Mortgaged securities 061 1,033,159,860,000 -

7.3.1 Mortgaged securities of the Company 062 25,789,260,000 -

7.3.2. Mortgaged securities of the Company 063 1,007,370,600,000 -

7.5. Securities awaiting for settlement 071 31,324,500,000 1,587,900,000

7.5.1 Securities awaiting for transacting of the Company 072 4,956,500,000 -

7.5.2. Securities awaiting for transacting of domestic customers 073 25,831,000,000 1,587,900,000

7.5.3. Securities awaiting for transacting of foreign customers 074 537,000,000 -

9.. Uncustodied securities 083 66,108,194,000 68,788,194,000

Par value as at 31 December

BALANCE

sheet (Cont.) Form B 01 - CtCK


www.vcsc.com.vn

Items 2015VND

2014VnD

11. Cash held on behalf of entrusting investors 41.003.983 6.488.163

11.1 Domestic entrusting investors 41.003.983 6.488.163

12. securities held on behalf of entrusting investors 8.599.489.200 5.962.189.080

12.1 Domestic entrusting investors 8.599.489.200 5.962.189.080

14. payables held on behalf of entrusting investors 141.374.849 1.254.766

14.1 Domestic entrusting investors 141.374.849 1.254.766

nGuyen tHI lAnHPreparer

DoAn MInH tHIenChief Accountant

to HAIChief Executive Officer March 18 2016


www.vcsc.com.vn

For the year ended 31 December

Code note 2015VND

2014VnD

1 revenue 705,727,105,065 616,688,248,624

In which:

1.1 On securities brokerage services 335,958,280,040 286,037,608,651

1.2 On securities trading and investments in other entities 25 155,062,281,021 129,511,061,490

1.3 On underwriting of securities - 1,280,664,000

1.4 On securities issuing activities 4,250,000,000 4,800,000,000

1.5 On investment consultancy services 28,333,672,416 89,889,360,620

1.6 On securities custody services 4,291,851,180 3,452,554,314

1.7 On entrustment activities 410,003,247 361,081,587

1.9 Other operating incomes 26 177,421,017,161 101,355,917,962

2 Less deductions

10 net operating revenue 705,727,105,065 616,688,248,624

11 operating expenses 27 (318,618,547,931) (364,160,278,791)

20 Gross operating profit 387,108,557,134 252,527,969,833

25 General and administrative expenses 28 (85,859,436,542) (69,055,073,552)

30 net operating profit 301,249,120,592 183,472,896,281

31 Other income 104,529,819 40,774,297

32 Other expenses (393,365,699) (684,811,399)

40 net other expenses (288,835,880) (644,037,102)

50 net accounting profit before tax 300,960,284,712 182,828,859,179

51 Business income tax – current 29 (58,822,446,462) (35,247,540,841)

52 Business income tax – deferred 11, 29 (3,038,958,111) (2,308,549,031)

60 net accounting profit after tax

Attributable to:

61 owners of the parent company 237,198,169,547 145,272,769,307

62 non-controlling interests 1,900,710,592 -

239,098,880,139 145,272,769,307

70 earning per share 24 4,744 3,369

CONSOLIDATED INCOmE

stAteMent Form B 02 - CtCK





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For the year ended 31 December

Form B 03 - CtCK

Code note 2015VND

2014VnD

i Cash FLows From operatinG aCtivitie

01 net profit before tax 300,960,284,712 182,828,859,179Adjustments for:

02 Depreciation and amortisation 9,770,470,117 6,970,993,92103 Provisions (12,986,908,746) (45,635,182,260)05 Gains from investing activities (41,375,047,988) (24,666,019,387)06 Interest expenses 103,816,162,016 68,648,275,576

Goodwill - 414,997,35608 operating profit before changes in working capital 360,184,960,111 188,561,924,385

09Increase in receivables, trading securities and other current assets

(106,307,407,540) (135,946,093,494)

10 (Increase)/decrease in inventories (25,658,500) 2,498,00011 (Decrease)/increase in payables (138,946,622,933) 738,303,431,37012 Decrease/(increase) in prepaid expenses 6,560,028,653 (1,139,931,373)13 Interest paid (94,293,187,993) (96,566,456,261)14 Business income tax paid (58,227,484,831) (30,760,752,097)15 Other receipts on operating activities 2,912,482,912 -16 Other payments on operating activities (7,221,147) (3,390,848,990)

20net cash (outflows)/inflows from operating activ-ities

(28,150,111,268) 659,063,771,540

ii Cash FLows From investinG aCtivities21 Purchases of fixed assets and other long-term assets (7,095,451,379) (13,713,499,869)

22Proceeds from disposal of fixed assets and other long-term assets

72,727,273 -

25 Investments in other entities (3,030,000,000) (25,096,716,768)26 Proceeds from disposals of investments in other entities 520,000,000 -27 Dividends and interest received 39,846,294,433 25,711,019,38730 net cash inlfows/(outflows) from investing activities 30,313,570,327 (13,099,197,250)iii Cash FLows From FinanCinG aCtivities31 Proceeds from issue of shares - 101,600,000,00033 Proceeds from short-term and long-term borrowings 3,264,500,000,000 2,225,261,750,00034 Repayments of borrowings (2,995,511,750,000) (2,607,150,000,000)36 Dividend paid (73,127,297,000) (59,543,768,000)40 net cash inflows/(outflows) from financing activities 195,860,953,000 (339,832,018,000)50 net increase in cash and cash equivalents 198,024,412,059 306,132,556,29060 Cash and cash equivalents at beginning of the year 3 618,777,857,754 312,645,301,46470 Cash and cash equivalents at end of the year 3 816,802,269,813 618,777,857,754





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CONSOLIDATED CASH FLOW stAteMent

(Indirect method)

Attributable to the Company’s shareholders Attributable to the Company’s shareholders

Share capitalVnD

treasuryshares

VnD

reserve to supplement

charter capitalVnD

Financial reserve

VnD

undistributed earnings

VnD

totalVnD

non-controlling interests

VnD

totalVnD

as at 1 January 2014 398,400,000,000 - 14,656,994,434 14,656,994,434 116,435,188,228 544,149,177,096 - 544,149,177,096

Profit for the year - - - - 145,272,769,307 145,272,769,307 - 145,272,769,307

Appropriate to statutory reserves - - 7,284,388,333 7,284,388,333 (14,568,776,666) - - -

Dividend of 2013 - - - - (39,840,000,000) (39,840,000,000) - (39,840,000,000)

First advance dividend of 2014 (i) - - - - (19,920,000,000) (19,920,000,000) - (19,920,000,000)

Share issuance 101,600,000,000 - - - - 101,600,000,000 - 101,600,000,000

Appropriate to operation fund of BOD - - - - (420,000,000) (420,000,000) - (420,000,000)

Business combination - - - - - - 76,041,277,050 76,041,277,050

as at 31 december 2014 500,000,000,000 - 21,941,382,767 21,941,382,767 186,959,180,869 730,841,946,403 76,041,277,050 806,883,223,453

Profit for the year - - - - 237,198,169,547 237,198,169,547 1,900,710,592 239,098,880,139


Second dividend of 2014 (ii) - - - - (45,000,000,000) (45,000,000,000) - (45,000,000,000)

First advance dividend of 2015 (iii) - - - - (25,000,000,000) (25,000,000,000) - (25,000,000,000)

Cổ tức năm 2014 trả cho cổ đông không kiểm soát (iv) - - - - - - (3,185,000,000) (3,185,000,000)

Dividend of 2014 paid to non-controlling interests (iv)

500,000,000,000 - 34,112,989,558 34,112,989,558 329,814,136,834 898,040,115,950 74,756,987,642 972,797,103,592

CONSOLIDATED STATEmENT of chAnges in eQuity Form B 05 - CtCK


www.vcsc.com.vn

Attributable to the Company’s shareholders Attributable to the Company’s shareholders

Share capitalVnD

treasuryshares

VnD

reserve to supplement

charter capitalVnD

Financial reserve

VnD

undistributed earnings

VnD

totalVnD

non-controlling interests

VnD

totalVnD

as at 1 January 2014 398,400,000,000 - 14,656,994,434 14,656,994,434 116,435,188,228 544,149,177,096 - 544,149,177,096

Profit for the year - - - - 145,272,769,307 145,272,769,307 - 145,272,769,307


Dividend of 2013 - - - - (39,840,000,000) (39,840,000,000) - (39,840,000,000)

First advance dividend of 2014 (i) - - - - (19,920,000,000) (19,920,000,000) - (19,920,000,000)

Share issuance 101,600,000,000 - - - - 101,600,000,000 - 101,600,000,000

Appropriate to operation fund of BOD - - - - (420,000,000) (420,000,000) - (420,000,000)

Business combination - - - - - - 76,041,277,050 76,041,277,050

as at 31 december 2014 500,000,000,000 - 21,941,382,767 21,941,382,767 186,959,180,869 730,841,946,403 76,041,277,050 806,883,223,453

Profit for the year - - - - 237,198,169,547 237,198,169,547 1,900,710,592 239,098,880,139


Second dividend of 2014 (ii) - - - - (45,000,000,000) (45,000,000,000) - (45,000,000,000)

First advance dividend of 2015 (iii) - - - - (25,000,000,000) (25,000,000,000) - (25,000,000,000)

Cổ tức năm 2014 trả cho cổ đông không kiểm soát (iv) - - - - - - (3,185,000,000) (3,185,000,000)

Dividend of 2014 paid to non-controlling interests (iv)

500,000,000,000 - 34,112,989,558 34,112,989,558 329,814,136,834 898,040,115,950 74,756,987,642 972,797,103,592

(i) According to the Resolution of the Board of Directors on 12 May 2014, the Company advanced the first dividend payment for the year 2014 in cash which is equivalent to 5% of the charter capital. (ii) According to the Resolution of the Annual General Meeting of Shareholders on 17 April 2015, the Company made the second dividend payment for the year 2014 in cash which is equivalent to 9% of the charter capital.(iii) According to the Resolution of the Board of Directors on 27 April 2015, the Company advanced the first dividend payment for the year 2015 in cash which is equivalent to 5% of the charter capital(iv) According to the Resolution of the subsidiary’s Annual General Meeting of Shareholders on 2 April 2015, the subsidiary paid the dividend for the year 2014 in cash which is equivalent to 5% of its charter capital.





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Bitexco Financial Tower, 15th Floor, 2 Hai Trieu Street, District 1, HCMC : (+84) 8 3914 3588 : (+84) 8 3914 3209 : www.vcsc.com.vn

viet capital securities - annual report 2015

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