VieUet Aviation Joint Stock Company and its subsidiaries Consolidated Financial Statements for the year ended 3l December 2018 Ch I CON l( VietJet Aviation Joint Stock Company Corporate Information Business Registration 01010r 8458 23 Julv 2007 Certificat€ No. Corporate Registradon 0102325399 19 April 20ll Certificate No, The Company's Corporate Registration Certificate has been amended several (imes, the mos( recent of which is by Corporate Registration Certificate No. 0102325399 dated I August 2018. The Business Registration Certificate, the Corporate Registration Cenificate and updales were issued by Hanoi Depanrnent ofPlanning and lnvestmenl. Inv€stm€nt Registration 2357162445 30 December 2016 Certificate No. The lovestment Registration Cenificate was issued by the Board of Managernent of Saigon Hi-Tech Park and is valid for 50 years from the date of lhe Investment Registration Cenificate. Board of Management Nguyen Thanh Ha Chairwoman Nguyen Thi Phuong Thao Vice Chairwoman Nguyen Thanh Hung Vice Chairman Chu Viet Cuong Member Luu Duc Khanh Member Dinh Viet Phuong Board of Directors Nguyen Thi Phuong Thao Chief Executive Officer Luu Duc Khanh Managing Director Nguyen Duc Tam Vice hesident Luong The Phuc Vice hesident Dinh Viet Phuong Vice President Nguyen ThiThuy Binh Vice President To Viet Thang Vice President 1 Nguyen Duc Thinh Vice President Tran Hoai Nam Vice hesident Do Xuan Quang Vice President Nguyen Thanh Son Vice hesident I Ho Ngoc Yen Phuong Vice President (from 3 November 2018) ) I VietJet Aviation Joint Stmk Company Corporate Information (continued) Supervisory Board Tran Duong Ngoc Thao Head ofthe Board Doan Thu Huong Member Pham Van Dau Member , Registered Office 3023 Kim Ma Streer Ngo. Khanh Ward, Ba Dinh District ( Hemoi City Vietnam \ Auditor KPMG Limired Vietnam 2 I 2 VietJet Aviation Joint Stock Company Statement of the Board ofDireclors The Board of Directors of Viedet Aviation Joint Stock Company ("the Company") pres€nts (his statement and the accompanying consolidated financial statements of the Company and its subsidiaries ( together referred to as "!he Group ') for the year ended 3 I December 20 I 8. The Board of Directors is responsible for the preparalion and fair presentation oflhe consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietname:'e Accounling System for enterprises and the relevant statutory requirements applicable 10 financial reponing. ln the oprnion of the Board of Drrectors: (a) the consolidated financial slaternents set out on pages 6 to 53 give a true and fair view oflhe \ consolidated financ ial position of the Group as at 3 I December 20 | 8, and of the consolidaled results of operations and the consolidated cash flows of the Croup for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnarnese Accounting System for enterprises and the rclevant statutory requirements applicable to financial reporting; and (b) at the date ofthis slaterEnt, there are no reasons to believe that the Group will not be able to pay irs debts as and when they fall due. The Board of Directors has, on the date of lhis statemen(, authorised these accompanying consolidated financial stalements for issue. On Board of Directors HANG Thao Ho Chi Minh City, 5 April 2019 c II I I I l Wffi KPMG Limited Branch 10rh Floor, Sun Wah Tower 115 Nguyen Hue Street, Ben Nghe Ward District 1, Ho Chi [.,linh City, Vietnam +U (28) 3821 9266 | kpmg.com.vn INDEPENOENT AUOITOR'S REPORT To the Shareholders VietJel Aviation Joint Stock Company t We have audited the accompanyrng consolidated financial statemenls o, VielJet Aviation Joinl Stock Company ('lhe Compan/) and ils subsidiaries (logelher referred to as the Group"), which comprise the consolidated balance sheel as at 31 December 2018. the consolidaled slalemenls oi income and cash llows ior ihe year then ended and the explanatory notes therelo which were aulhorised ror issue by the Company's Board of Directors on {] 5 APR,2l]13 as set oul on Pages 6 to 53. Management's Responsibility The Company's Board oi Direclors is responsible Jor ihe preparation and tair presentation oi these consolidated financral slalemenls in accordance wilh Vielnamese Accouniing Slandards, lhe Vielnamese Accounting Syslem lor enlerprises and the relevanl slatutory requiremenls applicable lo rinancial reporting, and for such internal control as lhe Board ol Directors determines is necessary to enable the preparation of consolidated linancial slatements thal are lree from malerial misslalemenl, whelher due to lraud or error. Auditor's Responsibility Our responsibilily is to express an opinion on these consolidaled financial stalements based on our audil. We conducled our audit in accordance wilh Vielnamese Slandards on Auditing. Those standards require thal we comply with ethical requirements and plan and perform lhe audit to obtain reasonable assurance aboul whether lhe consolidated linancial statemenls are free oi material misstatement. An audil involves perrorming procedures to oblain audit evidence about the amounts and disclosures in the consolidatad linancial statements. The procedures selected depend on the auditor's judgement, including the assessmenl ot lhe risks ot material misstatement oi the consolidated financial slatemenls, whether due to fraud or error. ln making those risk assessmenls, lhe audilor considers internal conkol relevanl to the Company,s preparation and lair presentation ot the consolidated linancial statements in orderlo desjgn audjl procedures that are appropriale in the circumstances. but not for lie purpose of expressing an opinion on the etlectiveness ol the Company,s internal conlrol. An audit also includes evaluating lhe appropriateness of accounling policies used and the reasonableness ol accounling estimales made by lhe Company's Board of Direclo6, as wellas evalualing lhe overall presenlation of lhe consolidaled financtal slatements. We believe that the audit evidence we have oblained is sufiicient and appropriale to provide a basis lor our audil oplnrcn. .1 hxmnddrd,.dn rtuiritrh$prc krhrc.@tufftrtuno es6tdy Auditor's Opinion ln our opinion, lhe consolidated financral statements grve a true and fair view, in allmaterjalrespects ofthe consolidated financial position ofVietJet Aviation Joint Stock Company and rts subsidiaries as at 31 December 2018 and of their consolidated results of operations and their consolidated cash flows lor the year then ended in accordance with Vietnamese Accounting Standards, the Vletnamese Accounting System for enterpases and the relevant statutory requirements applicable to financial reporting 's Branch in Ho ChiMinh City 18-01-00446-19-2 coNG t'v K n Chong Puay Practicing Auditor Registration Practicing Reg Certillcate No 0863-201 8-007-1 Certificate 0864-2018-007- Dep uty Ge netal D irector Ho chi Minh city, 0 5 APR 2019 : Vietlet Aviation Joint Stock Company and its subsidiaries Consolidated balance sheet as at 31 December 2018 formB0l-DN/HN (lssued under Circular No. 202/2014m- BTC dated 22 De<ember 2014 ofthe Minisrry of Finance) tode 3ul2n0tt uln0lt Nole vND vND ASSETS Currcrt assets 100 19,079192,916555 17,66E,6439E3,650 (100 = ll0 + 120 + 130 + 140 + 150) Cash and cash €quivalents ll0 5 1 ,t6/.923,Ut1 ,451 6,t61,601p555t4 Cash r 3.648.963,007,45 I 2,824,19t,955,584 Cash qluivalents ll2 3.5 I 5,960.ffX),0(x) 4.037.:10,ffn,off) Short-term fi nancial investments t20 816,90,000,000 1300,fixr,000 Trading securities 121 6(a) 990.U)0,fiX),000 Allowance for diminution in the value of trading securities 122 6(a) (174,500,ff)o,uxD Held-to-malurity investrnents 123 6(c) I .4(x).Un.000 |,4{n,000,mo Accounts receivable - shod-tem 130 10272$35,073,W 10223453944,n2 Accounts reaeivable from custorErs l3l 7 2,9tO,316.145 ,2E) | .44?,857,870,382 Prepayments (o suppliers 132 8(a) 129.92'7 ,09 t .93 t 533,003,878,162 l-oans rcaeivable 135 9 499,804,692,0m 487,313,764,m0 Olher short-tclm receivables t36 l0(a) 6,132,526,544,354 7 .75s ,258,432,288 Inventori€s r,l0 11 466,729J05585 267,1EtJ19500 (hh€f currcnt assets 150 356,105,529,935 3r5,006,563,734 Short-rcrm prcpaid expeos€s t5l l5(a) 299.977.91t,264 218,686,79t,604 Dcductible value added tax t52 916.845,914 881,949,735 Taxes rcceivable from Stale Trcasury t53 170) 55.r50.752.697 95 ,437 ,822.395 Long-term ass€ts 2lxt 20.006.li86.18,1,11,1 l-1.9E9.6211S7.77{ Om=2fi+220+U0+250+2fi) Accounts receivable - long-term 210 10,577J36,63?,830 7 ,t52,674330,ffi Prcpaymcnts to suppliers 212. 8(b) 701 ,500,000,000 70r,500,000,000 O$er long-lerm receivables 16 r 0(b) 9.875,{i36,637.830 6.45 I , I ?4,310,646 Fixed essets 220 t,(fi)13479,W r5u,120fi40,6$ Tangiblc fixed ass€ts 22t t2 t,643, t91,6t7,368 t,523,538,52r,1M Cos! 222 L935.603.226.243 1.676. 1.819.773 Ac c unu late d de pre c iation 223 (292,41 1,608.875 ) (153,423,29U,669) Inhngihle fixcd asscts 227 l3 3,181.862,60r s.182,3r9,505 Cost 228 29.952.0t 1,655 29.680,0t 1,655 Acc umulat ed amort i sation 229 (26,770,t49,051) ( 24.197,692. I 50) Long-term work in progrcss u0 1233,005,676,006 222,011-\97 27[ Construclion in progress 212 l,t r ,233,005,676,006 222.03t.59',7.270 Long-tem financial inyestments 250 6EAU,6298tE 6tAu 1629,8t8 Investments in associatcs 252 6(b) 60,000.ffm,m0 60,(D0,000.000 Equity investnxrnts in o$er enriries 253 6(b) 7,868,448,000 7.868,44ri,fin Hcld-tGmaturity investments 255 6(c) 556,18t.8r E 556.18 t.8r E Other lonS-term assets 2fi 6.481,745,?60,491 5,017,769,859,431 bng-lerm prcpaid expnses 261 r5(b) 6..18 I .7.{5.760,.+9 I 5.01 7.769.85 9..+l I TOTAL (270 ASSETS = lm + 2m) 270 39,0t6,179,100,659 3l {t5t2652A1,42A The accomponying notes are an integral pan of these consolitlateilfnoncial statements {) VieUet Aviation Joint Stock Company and its subsidiaries Consolidated balance sheet as at 31 December 2018 (continued) FormB0l-DN/HN (lssued un!|er Circular No.