Bank for Investment and Development of Vietnam Securities Joint Stock Company

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1 Telecommunications ICB 6535 April Bank for Investment and Development of Vietnam Securities Joint Stock Company COMPANY REPORT CMC CORPORATION CMG CMG STRONG BUY TRADING GRAPH INVESTMENT RECOMMENDATION Investment View Buy Target price 15,668 Market price 12, Prospect 3M Prospect 6M Prospect 12M TRADING INFORMATION Increase Increase Increase Outstanding (mil shares) Market Cap (bil) BVPS 1,6 Foreign Ownership (%).98% Current price (đ/share) 12, Avg 1 days (shares) 221,789 Lowest Price 52 Wk (VND) 5,4 Highest Price 52 Wk (VND) 11,6 +/- 7 days 9.9% +/- 1 Month 18.9% Equity Analyst Huong Luong huonglt@bsc.com.vn Tel: (18) initiated a STRONG BUY recommendation in medium and long term for CMG. Our valuation approaches (FCFF and PE) give us a target one year price of VND 15,668 per share which shows a 3.57% increase to closing price as at 1/4/215. In context of Information Technology and Telecomunications sector gradually get out of difficult period when corporate customers increased disbursement for technology projects and Decision 8/214/QD-TTg of Prime Minister take effect from 15/2/215, we expect CMG likely continue to recover and achieve high growth rates. 215 EPS is forecasted at VND1,8, CMG shares are trading with PE forward 215 of 6.67x, which is much lower than PE of VN-Index currently of 12.41x. Our positive view of CMG based on following highlights: (1) Eliminating accumulated losses in fiscal year 214 and provision no longer volatile: CMG targeted EBT 214 of VND 118 billion, but real result may exceed target of VND 17 billion, thus CMG will completely erase accumulated losses. In addition, provision for doubtful accounts of CMG will no longer surge as in recent years, and will only set regular amounts characterized by household telecommunications business (1% of new revenue). evaluate se regular provisions have insignificant impact on profitability of firm. (2) With telecommunications being key operations, CMG will develop long-term investment strategies including investment in infrastructure: CMG is investing in infrastructure to improve Telecom segment (CMG will invest in North-South backbone in 215 and APG undersea cable - CMG owns 12.5% will be in operation at end of 215). Telecom infrastructure will help reducing cost of leasing line, and boosting pretax profit margin of this segment to 15% in 218 when accumulated enough (current margin of about 6%). 215 performance forecast: Net sales of CMG is forecasted to be VND3,644 billion (+15,47%yoy). With pushing up Telecommunications and Outsourcing strategies in 215, we estimate pre tax income 215 of CMG will be VND 183,64 billion, income after tax of parent company of VND 119 billion, equivalent to EPS = VND 1,8. Financial Ratios M214 Net Rev (bil đ) % y-o-y Total asset (bil đ) Equity (bil đ) Charter Capital Gross profit (bil đ) PAT (bil đ) Gross margin 3, , % 2, % 1, (14.6) 9.44% 2, % 1, % 2, % 1, % 2, , % ROE 5.3% % 1.7% 3.98% 12.94% ROA 1.79% -6.8%.59% 1.38% 4.91% (Source: CMG Financial Report)

2 OPERATING ACTIVITIES CMG is second largest capitalization ticker in IT Telecommunications sector. Operating activities of CMG experienced many positive changes in fiscal year 214 (1/4/214-31/3/215). belive that CMG will be likely erase accumulated losses within this year. Revenue Breakdown % 4.49% SI 2.76% 38.61% 32.97% Manufacturing & Distribution Software Telecom Or (Source: CMG, BSC collect and classify) (1.) (2.) (3.) (4.) (5.) EBT Breakdown 213 (Source: CMG, BSC collect and classifty) CMG is second largest capitalization ticker in Information and Technology Telecommunication sector. Established since 1993 in Hanoi, after more than 21 years developing business operations, CMG focused mainly on four areas: (1) Software Service; (2) System integration; (3) Telecommunications and (4) Assembling & Distribution. The organizational structure of enterprise consists of 8 subsidiaries and 2 associated companies: Business scope Software Service (CMC Soft) System integration (CMC SI) Telecommun ications (CMC Telecom) Assembling and Distribution (CMC P&T) Business scope Telecommunicati ons Subsidiaries as at 31/12/214 Associated companies % ownership CMC Software 1..% 1.% CMC InfoSec 76..% 76.% CMC Blue France Limited Company (stopped operation) 1..% 1.% CMC System Intergration 1..% 1.% CMC System Intergration Saigon 1..% 1.% CMC Telecommunication Infrastructure 73..2% 73.2% CMS Computer 1..% 1.% CMC Production and Trading 1..% 1.% (Source: CMG annual report 31/12/214) Associated companies as at 31/12/214 Associated companies % owners hip % voting right % voting right NetNam 41.14% 41.14% Software Service Ciber - CMC 49.9% 49.9% (Source: CMG annual report 31/12/214) Overall, performance of CMG clearly improved in fiscal year of As at 31/12/214, 9 months net sales of CMG reached VND 2, billion, up 9.91% yoy; while profit after tax increased by % yoy, reaching VND billion (mainly due to gross profit margin increased from 13.88% to 15.33% and interest expense decreased by % yoy). This contributes to reduce accumulated loss to billion. estimate that CMG will likely erase accumulated losses this year with target EBT is VND118.3 billion 2. Among 4 operation segments, Telecommunications service is main business of CMG, while assembling and distribution is weakest segment. Specifically, Telecommunications has contributed most in EBT in 213 (93%) and uses most labor force (51%). Meanwhile Assembling and Distribution is causing a reduction in growth of company, despite having largest contribution in structure of 1 Fiscal year of CMG starts from 1/4 previous year to 31/3 next year. The firm started implementing this fiscal year since As at 31/12/214.

3 Current strategy of CMG is to be a full service provider (Software, System Intergration and Telecommunications) for enterprises. revenues (38.61%), but because gross margin of distribution products reduced, especially notebook having -2% gross margin, in addition, provision for devaluation of inventory and bad debt causing EBT at - VND4.5 billion in 213, CMG aims to be profitable with distribution segment in 214. CMG Labour 213 3% 2% 3% 2% 51% 14% 7% CMC Corp CMC SI CMC Soft CMC P&T CMC Telecom CMC Infosec CMC Ciber Because CMG business is divided into four separate segments, we will conduct a specific analysis as well as assessment of growth prospects of each sector in coming years. I. Telecommunications Service - The key business activity Telecommunications sector is composed of 4 areas: Data Transmission Services, FTTx, VoIP (receiving calls from abroad by means of Voice over IP) and EoC (Ernet over Cable). The organization structure of Telecommunications sector has significant changes since 212. In fiscal year 212, CMC Telecommunication Services JSC (with capital of VND billion) was merged into its subsidiary CMC Telecom Infrastructure JSC. Then CMC Telecom Infrastructure JSC became a direct subsidiary of CMC and currently CMG s telecom sector only consists of CMC Telecom Infrastructure JSC (direct subsidiary with capital of VND billion) and Net Nam JSC (affiliated company with capital of VND7.26 billion). A field that has great growth potentials in coming years. CMG initiated Telecommunications Service sector from end of 27. During 5-year period from 29 to 213, Net revenue generated from sector grew strongly with CAGR reaching 59.45%.. Business activities began to be profitable from 212 thanks to deployment of Cloud Computing service in Vietnam and expansion of Internet service over cable TV (cooperating with local cable TV stations, especially VTVcap partner that owns a large market share of and wide infrastructure). In both 212 and 213, EBT of Telecom sector expanded at very high speed, reaching respectively 145% yoy and 166% yoy. Estimated EBT (not yet consolidated) of Telecom sector will be VND 59 billion in 214 fiscal year, exceeding target at VND 51 billion. Data transfering services and FTTx for businesses are long-term spearheads for Telecommunications sector. The two segments, Data transfering and FTTx for corporate customers (mainly includes financial institutions and government agencies) are most profitable and willl have long-term potentials when CMG starts operation of undersea cable APG system and north-south telecom line, which will help improve profit margins. Customers of se two segments are also expanding; CMG accounts for 5% of customerss who are joint stock commercial banks in Saigon. Ernet over Cable (EoC) has a set of large customers, but it will be difficult to grow. CMG is working with VTVcap to implement internet service through household cable TV, mainly in Hanoi and HCMC. The current percentage of revenue share with VTVcap is 25%. In a general review of cable TV market, according to IT white book published in 214, total cable TV subscribers were 5.57 million as of end of 213 and number of internet subscribers through cable TV was just 221,966. assess that although most customers using cable TV already had internet

4 Telecom Revenue (bil dong) Telecom EBT (bil dong) Software Revenue (bil dong) Software EBT (bil dong) installed, CMG could exploit this group of customers efficiently by developing additional services bundles (similar to FPT with FPT Play HD that provides users warehouse movies and latest entertainment programs...). CMG is and will be focusing on promoting Telecommunications sector by increasing human resources, increasing infrastructure investment and or investment strategies: (1) Increasing investments in Telecommunications infrastructure, aiming at a pretax profit margin of telecom sector of 15% in 218 (currently 5-6%): The undersea cable project APG (CMG contributed 12.5% of investment capital) will be completed by end of 215. Besides, in 215, CMG will invest in building domestic north-south line, which will help reduce a third of leasing channel cost. Currently CMG has international connections through three transmission lines, which are undersea cable AAG, a transmission line via Hongkong and one via Cambodia. Notably, traffic of CMG via undersea cable AAG only accounts for 1%, meaning recent incident of broken undersea cable does not affect service quality of CMG. However, CMG has not yet built a north-south transmission line. The company expects to start investment in domestic lines in this year with CAPEX of about $4 million. (2) HR for Telecommunications accounts for majority of CMG s human structure: in 21, HR of Telecom segment made up only 25.7% of CMG personnel structure; but by year , segment accounted for 51% of company s total workforce. This indicates that CMG is nvesting in people to promote CMG Telecommunications development. II. Software Services - Promote Outsourcing activities CMC has participated in research and software sector since Revenue and profit plunged in 211 and 212 due to negative causes of IT market, especially reduction in services for government agencies. Operations of software segment have shown positive shifts since FY 213, with revenue increasing by 45.84% yoy and EBT growing by % yoy. Estimatedly, EBT of software segment can reach VND18-2 billion in 214 (not yet consolidated). Service products and CMG technology Partner: CMG specializes in researching, developing and providing solutions in field of banking insurance, customs, taxation, and education: such as document management solutions edocman, C-office, business accounting software CeAC, human resources management software... CMG has joint ventures with foreign partners to establish Ciber - CMC with purpose of providing services and human resources for ERP market. Besides, CMG - Software currently is a technology partner of Microsoft, IBM, Oracle, SAP Software Solutions segment won a number of projects in State sector. Customers are mainly in state sector such as Ministry of Finance, General Department of Taxation, Technical Pedagogical Vinh University, University of Technical Education Hung Yen; and financial segments such as Techcombank, Vietin Bank. Notably, at end of 214, CMG had consecutively won many large projects with General Department of Taxation, which created a favorable momentum for 215

5 SI Revenue (bil dong) SI EBT (bil dong) operations. Besides, CMG also signed contract worth VND 22 billion, in which it provides Document management solution software for Ministry of Finance. This is considered as a high value contract for software segment. Outsourcing segment is developed in 215. This is CMG s goal in 215 with Software department. The principal customers of outsourcing services are South Korea and Japan. Thereby, EBT of Services Software department is expected to rise by 25-3% in fiscal year 215. III. Integrated Services - Stable growth Integration sector accounted for 2nd largest proportion in structure of CMG revenue and EBT. assess this sector s operations very promising in context of IT market difficulties, Government tightening investments in technology, and Integrationn service enterprises continuing to have negative growth. Meanwhile, in period (expected), CMG achieves EBT of 59.13% CAGR growth, and is scheduled to reach VND 43 billion in 214 ( % yoy), EBT growth is higher than growth rate of revenue. Service products and customers of Integration sector: specialize in consulting, design, deployment solutions and integrated IT infrastructure and overall IT solutions for government agencies, business sectors, financial sectors such as information portals, electronic shopping, business management solution cards, loans - loans,... Customers of sector in recent time were Viettel Telecom, Hanoi University of Technology, Vinecom, Bao Minh insurance. Also, one more positive signal was that at end of 214, CMG has signed a project to deploy ATMs Agricultural Bank worth VND 13 billion. Expects no significant changes in operations. In 215, Integration sector is expected will not have huge surge in core activities, CMG only boosts services segment on basis of hardware made for customers. Therefore, revenue and profits will stabilize. Estimated EBT grows 1-15% in 215. IV. Assembling Distribution Service Sector Profitable after restructuring The worst sector in CMG s four business sectors. Since 211, when IT market globally and domesticly began to fall into a difficult period, CMG Assembling Distribution sector began plunging on both revenue and EBT. The sector had continuous negative profits in period and was main driver that reduced growth of whole company. Profits improved significantly in fiscal 214, moving from losses to profits after restructuring: In recent years, CMG has restructured by merging computer assembling sector and commercial sector into one group, reducing HR. Main activities of assembling distribution sector were assembling CMS computers, distributing computers and accessories through retail chains such as Tran Anh, FPTshop... Additionally, CMG also offers computers and components for educational training projects in provinces. Business activities of Assembling Distribution sector improved from 214. According to plan in Annual Report 214, CMG aims PBT at VND 3.25 billion, but actual figure achieved VND 12 billion, in which it already set aside a preventive account of nearly VND 6 billion. Estimated EBT 215

6 willl reach VND billion. Assembling & Distribution Revenue (bil dong) Assembling & Distribution EBT (bil dong) OUTLOOK FOR TELECOMMUNICATIONS IT SECTOR According to IDC forecasts, revenues in Global Telecommunications sector will grow by 3 % in 215, reaching USD 1.9 trillion; while Asia Pacific will be region with highest growth rate of world, reaching 5 % in , 3, 2, 1, Total subscribers of fixed broadband Internet (million subscribers) T1/215 Number of subscribers accessing Internet through cable television systems T1/215 (Source: Department of Telecommunication) SECTOR OVERVIEW According to White Book on Telecommunications IT of Vietnam was published on 27/1/214, despite economic condition in recent years were difficult, investment for Information Technology Telecommunications was cuts but sector still maintain fast growth and sustainability. believe that Telecommunications IT willl have good growth prospects in 215 when group of domestic corporate customers start to disburse back investment into technology and Decision 8/214/QD - TTg of Prime Minister on outsourced IT services in state agencies officially take effect from 15/2/215 will help to reduce costs for state agencies and create growth opportunities for technology market. In this report, we will focus on analyzing three areas are Software, Systems Integration and Telecommunications - fixed broadband Internet, core business segments of CMG. Specifically: (1) Software: In period , revenue growth of software industry reached 12.49% of CAGR, and rising from USD 85 million in 29 to USD 1.36 billion in 213. In addition, we believe that software industry will maintain good growth momentum in coming years as Vietnam is still among top 1 most attractive outsourcing countries in Asia - Pacific, in which, Ho Chi Minh City and Hanoi continued in top 2 and 3 most attractive outsourcing cities all over world. (2) System Integration: In recent years, due to difficult economic situation, investment in technology cuts so enterprises which are operating in field of system integration difficulties (slow project implementation, slow disbursement,..., especially of state projects, projects of financial institutions and banks). believe that situation will improve more positively in 215 when Vietnamese Government has begun disbursing back to IT infrastructure investments since late 214. In addition, for customer

7 The market share of fixed broadband Internet (Department of Telecom ) VNPT FPT Viettel SCTV CMC Khác 27% 3% 2%2% 1% 56% segmentation of small and medium enterprisess ( current segment of CMG) will also continue to grow. According to IDC, spending on technology by small and medium enterprises will be increased by an average of 5.1% globally and 6.5% in Asia Pacific. (3) Telecommunications Fixed broadband: total number of subscribers of fixed broadband grew by 12.1% in period from 212 to 214, and currently reaches over 6 million subscribers by end of month 1/215. identified market of fixed broadband Internet will continue sustainable growth while domestic infrastructure is being expanded businesses and completed over years, proportion of new internet userss account for 37% of population country (according to White Book IT 214), along with that of Vietnam internet rates near lowest worldwide, is ranked 8/148 (according to ratings published in report of World Economic Forum) will be driving force for growth. Internet businesses through cable TV system: In rencent 3-year periods, number of subscribers to access Internet via cable TV systems achieved growth of 36.9% ( ) and reached number 291,841 subscribers at end of closing month 1/215. POSITION OF CMG Enterp rise Share Equity (Bil VND) 31/12/1 4 Total Assets (Bil VND) 31/12/1 4 Net Reven ue 12m 214 ( Bil VND) In total 16 shares listed on HNX and HSX of Telecommunications - IT sector, FPT is only enterprise business operations similar to CMG on business areas and major customers. Gross Profit Profit Margin Based on Revenue (1/1/214 31/12/214) Genera l & Admini Selling stration Interest Expens expens expens es es es ROA 12T21 4 ROE 12T21 4 CMG 673 1,755 3, % 7.14% 4.16% 1.26% 2.68% 4.82% 12.68% FPT 3,44 22,658 32, % 5.22% 6.69%.51% 6.37% 9.18% 26.27% Net Profit After Tax PE 23/3/2 14 PB 23/3/2 14 ( Source : BSC consolidated ) Telecom Software SI Assembling & Distribution 214 CMG FPT Revenue PBT PBT / Revenue % 4, % Revenue ,36.85 PBT PBT / Revenue 11.95% 13.83% Revenue 1,18. 2, PBT PBT / Revenue 3.65% 4.68% Revenue ,851.2 PBT PBT / Revenue.42% 2.58% Note to compares business divisions of CMG and FPT: (1) Figures which are in table compare business divisions for fiscal 214 and unconsolidated. For FPT is financial period from 1/1/214-31/12/214 and with CMG is from1/4/214 31/3/215. (2) Data from CMG is planned figures of 214 Annual report taken in 213.

8 Low profit margin of CMG is mainly due to lack of infrastructure Telecommunications, low subscriber numbers and lower margin from assembling division: It can be clearly seen when compared to FPT, current Gross Profit margin and Net Profit margin of CMG are much lower. believe that main reason due to (1) CMG has insufficient infrastructure compared to FPT Telecom (north-south axis and international axis) and also have to rent infrastructure of or businesses, margin range is relatively large. expect margins of CMG will be improved when telecommunications system axis is invested and put into operation in coming years, aiming profit margin reached 15% Telecommunications sector in 218. (2) With a market share of fixed broadband Internet accounts for about 2%, number of subscribers of CMG is a lot lower than FPT (FPT accounts for about 27%), leading to proportion of expenses on sales of CMG is higher. (3) In addition, profit margin of assembling division is very low while this division has largest contribution in revenue structure of CMG. Ratio between operating expenses of CMG over Gross Revenue is at same rate as FPT: Percentage of Selling expensess and General and Administration expenses accounted for approximately 11.31% of Gross Revenue while this ratio was 11.9% in 214 for FPT. The proportion of FPT is higher because in past year FPT has opened 63 new retail stores (FPTshop). CMG has profitable growth at a very high level: Considering period (comparative figures of CMG were moved to same period of fiscal year FPT), assets of CMG fell 2.3% but growth of Gross Revenue reached 7.83% of CAGR. Notably, Gross Profit reached growth of 3..41% of CAGR and net profit after tax increased from a loss of 56 billion in 212 to a rate of 84.6 billion in 214. This indicates that process of restructuring business department has brought good results. With FPT, although FPT also grew well with certain figures like Gross Revenue and Gross Profit of 15.21% and 15.63% respectively, but net profits growth was only 2.33% of CAGR. Notably, integration division of CMG achieved strong growth in difficult period of market: period , EBT rose from VND 1..7 billion to VND 43 billion, equivalent to CAGR = 59.13%. Meanwhile, IS EBT of FPT fell sharply from VND billion, down to VND billion, corresponding to 65.44% of CAGR decline. Due to general difficult period of IT industry, so most IS business segment of companies in Vietnam have decreased. CORPORATE FINANCE CMG's fiscal year begins each year from 1/4 to 31/3. The company began implementing this fiscal year from FY 211. To evaluate effectiveness of business operations as well as recovery after a difficult period ( ) of IT and Telecommunications industry in general and CMG in particular, we will focus our analysis on three main points: (1) Assets structure, (2) Profitability and (3) Operational capacity. Assets structure The long-term asset proportion in increasing trend: The proportion of short-term assets in assets structure decreased from 76% to about 54% within 5 recent years. This is explained by increase in proportion of investment in telecommunications infrastructure and it is aimed it as key business department of CMG in recent years.

9 2,5 2, 1,5 1, 5 Assets believe that share of long-term assets to total assets will increase in coming years due to CMG continue to increase investment in Telecommunications infrastructure. The Asset Turnover is always greater than 1 indicates positive business situation. Profitability Gross profit and EBT achieved an impressive growth: CMG's gross profit margin improved significantly, from only 9.44% margin in fiscal year 211, is increasing over years and reached 15.33% in 9M214. In addition, total value of operating expenses (Interest expense, Cost of sales, Management Cost) on grosss profit fell from 1.37 (211) to.78 (9M214) showed efficiency of core business operation. Therefore, EBT grew impressively from billion of loss (211) to 95 billion of profit (9M214). Current Assets Longterm Assets Total Assets - Revenue Repayment ability (interest coverage ratio) was also improved from.11 (211) to 4.13 (9M214), higher than decreasee of Debt over total assets, imply that repayment ability have improved positively, ensure financial security for Enterprise. 4, 3,5 3, 2,5 2, 1,5 1, Gross profit - Operation expenses Interest expense Selling expense - - Administrative expense Gross profit Debts / Total Assets Total Assets Revenue Interest coverage ratio Operating capacity Improved by reducing Cash Conversion Cycle and Provision: evaluating period of time , Cash conversion cycle plummeted from 1 days to 52 days imply that ability to convert into cash from business operation is more positive. Notably, company said that provision for doubtful receivable would not spike like past year. It will increase steadily only about 1% each year of new revenue of newly developed Family Telecommunications Services (this is specific provision of Telecommunications Industry with Family Service due to situation when customers move ir home, avoid contract... but do not pay service charges). BUSINESS INCOME FORECAST The assumptions we used in earnings forecasts base on development strategy of CMG as well as data in past. booked assumptions with careful perspective. forecast that CMG will achieve and may exceed EBT target of fiscal year 214. estimate in cautious level, Net Revenue in 214 could reach 3,156 billion (+ 1.4% yoy), with gross profit margin was 15.3% and operating costs did not surge, EBT of CMG is expected to reach 122 billion dong (exceeding 4 billion compared to 118 billion EBT target). The parent company's EAT is estimated at billion, equivalent to EPS in 214 = 1,478 VND. With fiscal year 215, CMG will have many investment strategies for

10 Telecommunications sector. In particular, APG sea optical fiber cable lines willl be put into operation (at year-end), CMG will also make investments in North - South axis to reduce telecom leasing expenses. Thereby, we expect that Revenue and EBT of Telecommunications sector will increase. Aside from that, Outsourcing Sector will be accelerated; remaining business segments are growing steadily. forecast 215 Net Revenue will reach 3,644 billion ( % yoy), EBT is expected to reach billion in 215, parent company's EAT may reach 119 billion, equivalent to EPS in 215 = 1,8. In years , with completion of investment in telecommunications infrastructure (sea optical fiber cable and North - South axis), we forecast that pretax profit margin of Telecommunications sector willl significantly increase from 5-6% currently to 15% from 218 when this business achieves accumulation. In addition, we also pay attention to Outsourcing sector of CMG software will continue to promote due to development orientation of Group and advantage that Vietnam is stilll in top of Outsourcing markets in World. expect that CMG will start paying dividends from 216, dividend rate will increase gradually from 5% to 3% in 219. VALUATION AND RECOMMENDATION With two valuation methods is FCFF and PE, we put weights each method is 5-5 to determine fair price of 1 share CMG is 15,668 VND / share. ighted Average Cost of Capital (WACC) Rm 11.75% Rf 5.75% beta.6 ke 9.35% kd 1.5% E/A 4.61% D/A 59.39% Tax rate 15% WACC 9.8% g 3.% (Source: BSC) Investment point of view: recommend STRONG BUY stock CMG in medium and long term with 1 year-target price is 15,668 dong / share, an increase of 3.57% compared to closing price on 1/ /4/215. FCFF valuation method: use FCFF with 2 phases are period and period after 219. Phase 1 ( ): As mentioned in Forecast of Business Income, in this phase, profit margin of CMG will improve significantly due to putting self-owned telecommunication axes on operation, help to reduce telecom leasing costs. In our opinion, Telecommunications sector and Outsourcing sector will be developed in this period. Phase 2 (after 219): in long term, we assume that long-term growth rate of CMG is 3%. According FCFF valuation methods, fair value of 1 CMG share will be 15,,138 VND. PE valuation method: Considering group of IT industry Telecommunications Sector listed on HSX and HNX, median PE is around 9.55, a moderate compared to current market situation. With estimated 215 EPS of VND1,8 and PE to value stock CMG is 9., reasonable price for a stock CMG will be 16,199 VND / share. Combination of 2 valuation methods: put each method is weighted 5-5 to determine fair price of 1 share CMG is 15,668 VND / share.

11 APPENDIX 1 Valuation of CMG according to FCFF method Sensitive Analysis g 7.58% WACC 8.8% 8.58% 9.8% 9.58% 1.8% 1.58%.5% 12,18 9,816 7,98 6,242 4,777 3,481 2,33 1.% 14,124 11,61 9,451 7,58 5,946 4,51 3,24 1.5% 16,576 13,678 11,213 9,96 7,261 5,658 4,25 2.% 19,468 16,85 13,242 1,825 8,749 6,949 5, % 22,929 18,924 15,65 12,818 1,447 8,41 6,645 Stock price 3.% 27,146 22,321 18,392 15,138 12,43 1,78 8,8 3.5% 32,397 26,461 21,728 17,874 14,681 11,999 9,718 4.% 39,116 31,615 25,792 21,148 17,368 14,236 11,64 4.5% 48,16 38,21 3,852 25,138 2,583 16,874 13,81 5.% 6,367 46,947 37,326 3,16 24,51 2,31 16, % 78,66 59,71 45,93 36,463 29,379 23,878 19,492 (Source: BSC forecast) APPENDIX 2 Business Income Forecast Unit: Billion dong 3. Net Revenue from Goods and Services 4. Cost of goods sold 5. Gross profit 6. Financial Revenue 7. Financial Expense - Interest expense 8. Selling Expenses 9. Administrative Expenses 1. Net profit from operating 11. Or Income 12. Or Expense 13. Or Profit 14 Profit (loss) in Joint Venture 15. Earning before tax 16. Income tax expense 17. Defered Income tax expense 18. Earning After Tax 18.1 Minority Interest 18.2 Parent Company Earning After Tax 17. EPS (VND) 214 F 215 F 216 F 217 F 3, , , , , ,3.17 3, , (.25) (.3) ,478 1,8 2,1 2, F 219 F 5, , , , , ,91 3,688 (Source: BSC forecast)

12 APPENDIX 3 Balance Sheet Unit: Billion dong 214 F 215 F 216 F 217 F I CURRENT ASSETS 1, , , , Cash and equivalents Short-term financial investments Short-term receivable Inventory Or Assets II LONGTERM ASSETS , Long-term Receivable Fixed Assets Goodwill Real Estate Invesments 5. Long-term financial investments Or long-term assets Total Assets 1, , , , I DEBT 1, , , , Short-term Debt ,53.5 1, Long-term Debt II EQUITY , Equity , Funding sources and or funds III MINORITY INTEREST Total Debt and Equity 1, , , , F 219 F 1, , , , , , , ,57.9 1, , , , , , , ,18.45 (Source: BSC forecast)

13 Valuation Methodology: The selection of methods depends on industry, company, stock. Our valuations are based on a single or a combination of one of following valuation methods: 1) Relative models (P/E, P/B, EV/EBIT, EV/EBITDA); 2) Discount models (DCF, DVMA, DDM); 3) Asset-based evaluation methods (NAV, RNAV). Rating System STRONG BUY BUY HOLD SELL NOT RATED Note If target price is 2% higher than market price If target price is 5% to 2% higher than market price If target price is 5% higher or lower than market price If target price is more than 5% lower than market price The investment rating and target price have been removed pursuant to BSC policy when BSC is acting in an advisory capacity, in a merger or strategic transaction involving this company, and in case BSC do not have enough material to perform valuation. DISCLAIMER The information, statements, forecasts and projections contained herein, including any expression of opinion, are based upon sources believed to be reliable but ir accuracy completeness or correctnesss are not guaranteed. Expressions of opinion herein were arrived at after due and careful consideration and y were based upon best information n known to us, and in our opinion are fair and reasonable in circumstances prevailing at time. Expressions of opinion contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or solicitation of an offer to buy or sell any securities. BSC and or companies in BSC and/or ir officers, directors and employees may have positions and may affect transactions in securities of companies mentioned herein and may also perform or seek to perform investment banking services for se companies. This document is for private circulation only and is not for publication in press or elsewhere. BSC accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or its content. The use of any information, statements forecasts and projections contained herein shall be at sole discretion and risk of user. Sales & Advisory Duong Le Tel: (155) duonglh@bsc.com.vn Head of Research Long Tran Tel: (118) longtt@bsc.com.vn CONTACT INFORMATION BSC Head Office BSC Ho Chi Minh Branch 1th, 11th Floor BIDV Tower 9th Floor 146 Nguyen Cong Tru Str 35 Hang Voi Hoan Kiem Hanoi District 1, Ho Chi Minh City Tel: Tel: Fax: Fax: bsite: bsite: /BIDVSecurities BIDV Securities Company (BSC) No part of this material may be (i) copied, photocopied or duplicated in any form by any mean or (ii) redistributed without prior written consent of BIDV Securities Company (BSC).