DELIVERING GROW TH

Transcription

DELIVERING GROW TH

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ANNUAL
REPORT
TH
OW
2015
CONTENT
FPT IN 2015
BUSINESS PERFORMANCE
ANALYSIS
OVERVIEW
01
02
03
Chairman’s message
04
Vision, mission and general information
14
Key indicators for 2015
06
History
15
Business sectors
16
Geographical coverage
2015 outstanding events and 08
activities
Financial highlights for the
2011 – 2015 period
10
Business performance and
management discussion
38
Financial performance analysis
43
22
The BOD’s review on corporate
activities and the BOM’s performance
52
Organizational structure
23
2016 outlook and business guidance
Subsidiaries and associates
56
24
Leadership
26
Equity and shareholding information
31
Strategic directions for the
2016 –2018 period
32
ABBREVIATIONS
IT
Information technology
S.M.A.C
Social, mobile, analytics/big data, cloud
IoT
Internet of things
BSC
Balanced scorecard
BOD
Board of Directors
BOM
Board of Management
CEO
Chief Executive Officer
AGM
Annual General Meeting of Shareholders
FPT
FPT Corporation
SUSTAINABILITY
REPORT
CORPORATE GOVERNANCE
04
AUDITED CONSOLIDATED
FINANCIAL STATEMENTS
05
Overall corporate governance
structure
60
Information and activities of the BOD
61
Report of the Supervisory Board
66
Transactions, remuneration and
other benefits for the BOD, the
Supervisory Board and the CEO
69
Implementation of corporate
governance regulations
71
Risk management
72
Investor relations
76
06
The CEO’s message
82
Overview
83
Stakeholder engagement
88
Identification of material aspects
93
References to GRI’s guidance
108
FPT IS
FPT Information System Company Limited
FPT Telecom
FPT Telecom Joint Stock Company
FPT Software
FPT Software Company Limited
FPT Trading
FPT Trading Group Company Limited
FPT Retail
FPT Digital Retail Joint Stock Company
FPT Online
FPT Online Service Joint Stock Company
FPT Education
FPT Education Company Limited
FPT Investment
FPT Investment Company Limited
HCMC
Ho Chi Minh City
ICT
Information Communications and Technology
R&D
Research and Development
Statement of the Board of
Management
113
Independent auditors' report
115
Consolidated balance sheet
116
Consolidated income statement
120
Consolidated cash flow statement
121
Notes to the Consolidated
financial statements
123
3
S.M.A.C GROWTH IoT S.M.A.C Globlalization
IoT S.M.A.C GLOBLALIZATION GROWTH IoT
GROWTH Globlalization GROWTH IoT S.M.A.C
LIZATION Growth IoT S.M.A.C GLOBLALIZATION
wth IoT S.M.A.C GLOBLALIZATION IoT Growth
S.M.A.C GLOBLALIZATION Growth IoT S.M.A.C
T S.M.A.C GROWTH IoT S.M.A.C Globlalization
OWTH IoT S.M.A.C GLOBLALIZATION GROWTH
Growth IoT S.M.A.C GLOBLALIZATION Growth
S.M.A.C GROWTH IoT S.M.A.C Globlalization
WTH IoT S.M.A.C GLOBLALIZATION GROWTH
ZATION Growth IoTS.M.A.C GLOBLALIZATION
T S.M.A.C GROWTH IoT S.M.A.C Globlalization
OWTH IoT S.M.A.C GLOBLALIZATION GROWTH
4
ANNUAL REPORT 2015
www.fpt.com.vn
CHAIRMAN’S MESSAGE
Dear Valued Shareholders,
“Mastering the 4th Industrial Revolution" is the main theme of the
46th annual conference of the World Economic Forum in Davos,
Switzerland on January 20 - 23, 2016. Based on the popularity of
Internet, mobile phones, sensors, the ability to handle big data
information, artificial intelligence and the computer’s learning
ability, the 4th Industrial Revolution is considered to be an
unprecedented occasion in history, extremely different in terms
of speed and scale, which will entirely transform the existing
business models, production, management and governance
systems. It is possible to predict that every enterprise will become
a digital business and the application of technology will be an
important motivation for growth.
Attending the World Economic Forum in Davos has given me
more confidence in where FPT is heading to.
It can be said that FPT is fortunate to be able to join right from
the very beginning stage of the 4th Industrial Revolution. We
have cooperated with the top global technology groups which
are leading the digital revolution and are participating more and
more deeply into the global technology value chain, especially in
the field of S.M.A.C technology and Internet of things (IoT).
In Vietnam, new policies and mechanisms such as IT leasing in
the form of public-private partnership are now allowing FPT to
actively test the provision and transfer of the most advanced
technology solutions, helping improve management capability,
service delivery capability and competitiveness, as well as solve
major socio-economic problems in such sectors as public
finance, banking - finance, transportation, healthcare, etc.
I am happy to share the achievements of the Corporation in 2015
and the new platforms which help create motivation for growth
for FPT in the coming years.
In 2015, FPT has returned the double-digit growth track in both
revenue and profit before tax, delivering growth rates of 13.9% and
15.9%, respectively.
The global market has more and more important contribution
to the growth of FPT. Revenue from foreign markets continued
to grow significantly at 40.9% and profit before tax accounted
for 23.4% of total profit before tax of the Corporation. Besides,
this is the first time the revenue of technology sector from the
foreign markets has exceeded the revenue from the domestic
market, accounting for 52% of the revenue of this sector. FPT's
capabilities in implementing big projects, both in value and
scale, have also been tested with projects for clients in Japan, the
US, Bangladesh, Cambodia and Laos.
Pioneering direction in the digital world also has remarkable
progresses. FPT has developed technological capabilities in
S.M.A.C/ IoT through providing services to big corporations in the
fields of satellite broadcasting; aircraft production; automobile;
energy. The Corporation has also developed new business
models based on S.M.A.C/IoT technology to enable further
growth going forward.
FPT 2016 – Innovation for growth
We strongly believe in the laid-down strategic directions which
have been proved with 2015’s performance. 2016 and the
following years are considered the turning point of FPT where
FPT will innovate ourselves for growth. I would like to share
what we will do to change, make a difference and determine a
leading position in this period when the 4th industrial revolution
is taking place.
FPT will continually improve the business model to
capture the best new opportunities arising from both
domestic and overseas markets. It is the acceleration of the
implementation of IT services in the form of public - private
partnership for the Government of Vietnam. It is continual
innovation in methods of providing services for customers
based on digital technologies.
FPT will actively invest in R&D and create new technological
playground. The key points are the solutions, services based
on S.M.A.C/IoT, Robotic which can be strongly applied in all
business activities of the Corporation. FPT will deploy the ‘Open
FPT’ project, in which we will share our IT infrastructure for the
technology community, thereby promoting creative ideas, and
at the same time, continually offering new forms of venture
capital for the technology start-up community.
FPT must innovate the organizational structure to be
in line with global corporations. In particular, the focus is
to upgrade overseas branches and to turn FPT into a learning
organization. Each and every member in FPT will spend time
on studying, from leadership skills, personal skills, to foreign
languages, or technologies, etc. Studying will inspire creativity,
make a difference and bring success to each individual and the
Corporation.
I myself am excited with the changes taking place and destination
of transforming into a global corporation coming closer. We
are aware of that the process is accompanied with enormous
challenges of customer requirements, competitiveness
enhancement, and large scale governance. But we have
thoroughly understood these challenges and been determined
to overcome. I believe in the power of maximizing the potential
of each FPT member.
I sincerely thank all FPT employees because of their will to grow,
their great efforts being made during the past year and thank
shareholders who have always supported us. I hope that you
shareholders will share with us the excitement and confidence in
the future of the Corporation, and the opportunities that we are
having to build a smarter and better society together.
I conclude this with my heartfelt thanks to our shareholders.
On behalf of the Board of Directors
Chairman
Truong Gia Binh
FPT 2015
5
KEY INDICATORS FOR 2015
WORKFORCE
Total number of
employees
26,818
Revenue
VND
employees
Total number of technology
experts, engineers and
developers
10,617
employees
40,003
VND
4,859
billion
billion
13.9%
40.9%
Profit before tax
VND
Overseas revenue
2,851
billion
Overseas revenue of
technology sector
accounts
for
52%
of the revenue of this
sector
15.9%
PRIZES AND AWARDS
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ANNUAL REPORT 2015
www.fpt.com.vn
Asia Money’s Best overall for
corporate governance in Vietnam
Nikkei Asia Review’s Asia300
CLIENTS AND
PARTNERS
GEOGRAPHICAL
COVERAGE
STOCK PRICE AND MARKET
CAPITALIZATION
Clients
Presence in
Share price
acceleration
400
large corporations
worldwide
63
provinces and cities in
Vietnam
Presence in
Senior Cloud
partner to
Microsoft, Amazon
Web Services
19
countries all over the
world
(including Vietnam)
Nikkei Asia Review’s
ASEAN100
20.4%
IAOP's Global Outsourcing
100
(as of December 31, 2015)
Market capitalization
19,197
VND
billion
(as of December 31, 2015)
16.3%
Forbes’ 50 Best listed
Vietnamese companies
FPT 2015
7
2015 OUTSTANDING EVENTS AND ACTIVITIES
01
Growing robustly in developing markets
• Getting license to provide telecom services in Myanmar. With
this license, FPT is allowed to build a national axis infrastructure,
provide a full range of local and international telecommunication
services and other network-based value-added services.
• Obtaining the contract for the Integrated VAT Administration
System (IVAS) project in Bangladesh with a total value of USD33.6
million. This is the biggest ‘turnkey’ contract ever in Bangladesh,
with the value equals to 1/10 of the total trade turnover between
Vietnam and Bangladesh during the first six months of 2015.
• Putting into operation the Financial Management Information
System for the State Treasury of the Royal Government of
Cambodia (FMIS). The project, being worth nearly USD10 million,
being sponsored by the World Bank. This is the first national
scale IT system in Cambodia.
• Putting into operation the ERP project for the leading paint
corporation in Myanmar United Paints Group (UPG). This is FPT’s
first ERP contract for enterprises in foreign markets, opening up
opportunities in consultancy and implementation of business
administration system in Myanmar.
• Opening two delivery centers to provide IT services in Philippines
and Myanmar, both aiming to attain human resources as well as
to research and develop new technologies, supporting growth of
the software outsourcing business.
02
Promoting the fiber optical conversion of
telecom infrastructure and expanding the
Pay TV service coverage
• Having completed the fiber optical conversion for subscribers in
Hanoi and HCM to enhance transmission quality and speed.
• Covering FPT television services in 59 cities and provinces, while
constantly offering new features and facilities, better content at
more competitive costs.
03
Achieving the important steps in software
outsourcing
• Completing a record contract that worth more than USD25
million to a leading broadcasting service provider in the US.
• The number of customers with revenue of over USD2 million rose
by 50% as compared to 2014.
• Launching the 10,000 Bridge Software Engineers (BrSE) program,
with nearly 1,000 students being trained in Vietnam and Japan
in 2015.
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ANNUAL REPORT 2015
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04
Pioneering in deploying technology solutions
in the form of leasing to help solve society's
problems
• Providing the E-ticket system for the Vietnam National Railways
Corporation.
• Implementing a pilot project to install a traffic violation
surveillance and monitoring system on the Noi Bai-Phu Tho
section of the Noi Bai-Lao Cai highway.
• Getting the Hai Phong’s Online health insurance claim system
connected to 100% medical facilities.
05
Boosting technology development inside and
outside the Corporation, preparing resources
for future growth
• Playing a key role in the technology ecosystem of several major
technology corporations:
99 Being recognized as a Managed Service Partner and a 2015
“Learn and Be Curious” Partner of Amazon Web Services
(AWS), which helped FPT stay at the same rank with big
names from Japan and India such as Hitachi, Fujitsu, NEC,
Accenture, Tata and Cognizant.
99 Becoming a Strategic Partner in Cloud technology of Microsoft
Japan, opening up the opportunity for FPT to become an
end-to-end supplier of cloud services (from consulting to
development, maintenance and customer support) in the
Japanese market.
• Launching FPT Ventures – a venture capital fund operating as a
startup incubator. The fund has received 350 pitching documents
so far.
• Expanding the S.M.A.C Challenge contest nationwide to help
Vietnamese young people access new technology trends and
nurture a passion for information technology.
06
Growing strongly in revenue and profit in the
retail segment
• In 2015, the retail segment continued to lead growth of the
Corporation with profit before tax and revenue up 335% and 50%.
• Expanding to 252 shops nationwide, completing the 2016 plan
ahead of schedule.
07
Leading in training high quality human
resources and innovating training methods
• The four important criteria of FPT University being rated 5-star
by Quacquarelli Symonds (QS), are: Teaching, Employability,
Facilities and Social Responsibility.
• Launching the first online university in Vietnam, FUNiX. This has
brought new education methods to Vietnam to train high quality
human resources, meeting the growing demand of the IT market.
FPT 2015
9
FINANCIAL HIGHLIGHTS
FOR THE 2011-2015 PERIOD
Unit: VND in billions
Consolidated revenue
VND
40,003
BILLION
13.9%
2011
95%
2012
92%
2013
91%
2014
90%
2015
88%
25,978
5%
25,350
8%
Revenue from domestic market
28,647
9%
35,130
10%
40,003
12%
Revenue from global market
Profit before tax
VND
2,851
BILLION
15.9%
2011
88%
2012
85%
2013
79%
2014
76%
2015
77%
Profit before tax from domestic market
2,502
12%
2,407
15%
21%
2,516
2,459
24%
23%
2,851
Profit before tax from global market
Earnings before interest,
tax, depreciation and
amortization (EBITDA)
VND
3,847
BILLION
21.2%
2011
3,127
2012
3,035
2013
3,091
2014
3,173
2015
3,847
Total assets
VND
26,046
14.9%
10
ANNUAL REPORT 2015
www.fpt.com.vn
BILLION
2011
14,943
2012
14,209
2013
17,571
2014
22,658
2015
26,046
Owner’s equity
Return on equity (ROE)
Unit: %
2011
6,226
2011
36.0
2012
7,094
2012
28.9
2013
8,254
2013
26.5
2014
9,258
2014
23.6
2015
10,182
2015
24.8
VND
10,182
10.0%
BILLION
24.8%
1.2%
Note: Equity and ROE in the 2011-2014 period were adjusted and restated following the new financial statements
template in the newly adopted Circular 202/2014/TT-BTC
Unit: VND/ share
Earnings per share (EPS)
4,386
VND/SHARE
17.8%
2011
3,907
2012
3,512
2013
3,645
2014
3,723
2015
4,386
Note: EPS in the 2011-2014 period was retroactively adjusted to take into account stock dividend of 15% in 2015 and
followed the new regulation of EPS calculation under Circular 200/2014/TT-BTC
Financial performance in 2011-2015
No. Metrics
YoY
change
2015
YoY
change
35,130
22.6%
40,003
13.9%
YoY
2014
change (restated)
2011
2012
YoY
change
2013
25,978
25,350
-2.4%
28,647
13.0%
1
Total revenue
2
Operating profit
2,420
2,318
-4.2%
2,451
5.7%
2,389
-2.5%
2,802
17.3%
3
EBITDA
3,127
3,035
-2.9%
3,091
1.9%
3,173
2.6%
3,847
21.2%
4
EBIT
2,751
2,635
-4.2%
2,648
0.5%
2,625
-0.9%
3,114
18.6%
5
EBT
2,502
2,407
-3.8%
2,516
4.5%
2,459
-2.2%
2,851
15.9%
6
NPAT
2,079
1,985
-4.5%
2,065
4.0%
2,079
0.7%
2,438
17.3%
7
NPAT attributable to
company's shareholders
1,682
1,540
-8.4%
1,608
4.4%
1,632
1.5%
1,931
18.3%
FPT 2015
11
02
S.M.A.C/IoT
OVERVIEW
THE US
Bestshore
New technology
migration
EUROPE
Cloud/IoT
10,000 BrSE
Market – oriented technology: In the major markets, FPT has
built the intensive technological capabilities to generate
competitive advantages, accelerate the speed of customer
scaling expansion and the growth rate.
Implementation of
World Bank-funded
projects
Services/Solutions for
Government and
Public finance sectors
JAPAN
DEVELOPING COUNTRIES
Smart services/solutions
for major economic
sectors
VIETNAM
VISION, MISSION AND
GENERAL INFORMATION
VISION AND MISSION
FPT is striving to become a company guided by technological innovations,
committed to the highest level of customer satisfaction, contributing to the
nation’s prosperity and providing its employees with the most favourable work
environment possible, enabling them to reach their full potential in terms of
their careers and personal lives.
GENERAL INFORMATION
Name
: FPT Corporation
Abbreviation
: FPT
Date of establishment
: September 13, 1988
Stock code
: FPT
Charter capital
: VND3,975,316,400,000
Owner’s equity
: VND10,182,285,753,023
Headquarters
: FPT Building, Duy Tan Street,
Cau Giay District, Dich Vong Hau Ward, Hanoi, Vietnam
Phone
: +84 4 7300 7300
Fax
: +84 4 3768 7410
Business registration
certificate and tax code
number: 0101248141
Website
14
ANNUAL REPORT 2015
www.fpt.com.vn
: http://www.fpt.com.vn
HISTORY
1988
On September 13, FPT was established in
Hanoi with 13 members
1990
Renamed FPT – The Corporation
for Financing and Promoting
Technology, with IT declared its core
business
1997
1994
Entered the distribution sector focused
on bringing new technology products to
Vietnam
Participated in the developing
internet sector
1999
Penetrated foreign markets via a strategic
orientation to software exports.
2001
Launched VnExpress, Vietnam’s first
online newspaper
2002
• Equitized and became a joint stock
company
2006
• Began production of FPT branded
products
• Listed on the local stock market
• Established FPT University
2012
• Invested to expand the technology
product retailing chain (FPTShop)
• Invested in e-commerce
2014
• Implemented the first cross border
M&A acquiring a Vietnamese IT firm
• Provided Pay TV services
2015
• Became the first foreign enterprise
licensed to provide fixed line
telecommunications services in
Myanmar
• Signed a record contract in Bangladesh,
opening a new development direction
in the South Asia market.
OVERVIEW
15
BUSINESS SECTORS
FPT operates in the most key IT and telecommunications fields, from software development,
system integration, IT services, telecommunications, technology product distribution and retail,
to high-quality IT human resource training, being grouped under four main sectors:
TRIBUTIO
DIS
N
ATION
UC
D
E
D RETAIL
N
A
TE
C
COM
TELE
GY
OLO
HN
TECHNOLOGY SECTOR
(accounting for 22% of revenue and 33% of profit before tax)
TECHNOLOGY
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ANNUAL REPORT 2015
www.fpt.com.vn
Software
development
+
System
integration
+
IT services
SOFTWARE DEVELOPMENT
Products, services
• Software solutions in such domain expertises as Government, Public Finance, Telecommunications,
Transportation, Banking-Finance, Electricity, Water, Gas and Healthcare;
• Specialized Enterprise Resource Planning (ERP) on SAP, Oracle, People Soft platforms, and other
technology firms;
• Technology migration:
99 Application Services;
99 Business Application Services;
99 Business process outsourcing (BPO);
99 Software Testing Center of Excellence (TCOE);
99 Legacy Migration.
• Consultancy, R&D, provision and deployment of S.M.A.C/IoT-based technology services::
99 Cloud computing;
99 Big Data/Analytics;
99 Mobility;
99 IoT.
• Product Design:
99 Embedded software;
99 CAD/CAM;
99 IC Design.
Position and capacity
Featured in IAOP’s Global Outsourcing 100;
10,617 engineers, developers and technology experts;
8,000 software outsourcing projects with 3.2 million man-days;
100 copyrighted software solutions in such domain expertise as Government, Public Finance, BankingFinance, Education, Healthcare and Transportation;
Strategic partner of Microsoft Japan in Cloud and Managed Service Partner and Learn and Be Curious
Partner of Amazon Web Services;
Providing services/products to nearly 400 major corporations in the fields of automobile, energy,
distribution.
OVERVIEW
17
BUSINESS SECTORS
(continued)
SYSTEM INTEGRATION
Products, services
• IT infrastructure services;
• Database design and construction for enterprises;
• Network systems, security;
• Payment, surveillance systems and specialised equipment for the banking sector; specialised products
for banks, telecommunications, transport and customs;
• Implementation of banking, securities, and telecommunications solutions;
• Server hosting;
• Database management.
• Ranked Number 1 in Vietnam in terms of both revenue and scale of workforce;
• Holding more than 2,000 international technology certificates issued by the world’s leading IT
partners;
• Several products and services earned international awards, including second prize at the 2014 Asia
Pacific ICT Alliance (APICTA) Awards; Global Telecoms Business Innovation Award 2014; No.1 ranked in
eAsia Awards 2013 and the gold and the silver awards at the ASEAN ICT Awards 2012;
• Recognised as an Outstanding system integrator by Oracle;
• Implementing the majority of the IT systems for organisations that form the backbone of Vietnam’s
economy.
IT SERVICES
Products, services
• FPT e-services: certificate of authorization service (FPT.CA), customs filing service (FPT.VNACCS), and
online tax filing service (FPT.eTax);
• Authorised warranty and maintenance of IT products for their hardware vendors, provision and repair of
IT equipment and components.
• Ranked Number 1 in Vietnam in terms of IT service provision;
• Service center network covering all of Vietnam;
• Warranty, maintaining over 50% of ATMs and POS in Vietnam;
• Highest-ranking partner of Cisco, IBM, Microsoft, SAP and Symantec.
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ANNUAL REPORT 2015
www.fpt.com.vn
TELECOM SECTOR
(accounting for 14% of revenue, 37% of profit before tax)
TELECOM
Telecommunications
Services
+
Digital Content
TELECOMMUNICATIONS SERVICES
Products, services
• Broadband internet (xDSL, FTTH);
• Television services: FPT Television, FPT Play;
• Leased lines;
• Data centers;
• Landline telephony;
• Interprovincial and international connection service;
• Online and OTT services: online music (Nhacso.net, Mix166.com) and online data sharing services (Fshare,
FSend), Cloud Camera and Domain hosting;
• Video conference.
Ranked Number 2 in Vietnam in terms of fixed broadband internet access service (Source: 2014
White Book published by the Ministry of Information and Communication);
The first foreign enterprise licensed to provide fixed line telecommunications services in Myanmar;
Providing internet infrastructure coverage in 59 of the country’s 63 cities and provinces, fiberoptic subscribers accounting for 66% of the total number of subscribers;
Pioneering in deploying IPv6 network protocol, successfully deploying IPv6 connectivity with international
partners such as Google, NTT, Singtel and PCCW;
Owning a large telecommunications infrastructure with total length of exceeding 9,200 km that includes
a North - South axis; a Central Highlands axis; an international axis connecting China, Cambodia, Laos and
other interprovincial axes connecting to 59 cities and provinces through the country;
Member of AAG (Asia-American Gateway), APG (Asia- Pacific Gateway) and Asia-Africa-Europe Gateway.
Putting into operation two hubs in the U.S and Singapore;
International bandwidth capacity of 420 Gbps;
Four data centres in Vietnam.
OVERVIEW
19
BUSINESS SECTORS
(continued)
DIGITAL CONTENT
Products, services
• Online newspapers including VnExpress.net, Ngoisao.net, iOne.net, Gamethu.net;
• Online advertisement;
• Smart advertisement system Ad Network eClick.
• Ranked Number 1 in online advertisement services;
• The most popular Vietnamese online newspapers VnExpress which had a total of 13.5 billion visits in 2015.
TECHNOLOGY PRODUCT DISTRIBUTION AND RETAIL SECTOR
(accounting for 63% of revenue, 26% of profit before tax)
TECHNOLOGY
PRODUCT
DISTRIBUTION
AND RETAIL
Technology product
distribution
+
Technology product
retail
TECHNOLOGY PRODUCT DISTRIBUTION
Products, services
• Distribution of products and solutions from Apple, IBM, Lenovo, Microsoft, HP, Nokia, Toshiba and others;
• Production of FPT-branded products, including desktops, smart phones and tablets.
Ranked Number 1 in Vietnam with a 21.4% market share in mobile handset and a 27.4% market share in
IT equipment;
Distributor for over 30 large technology partners;
1,500 distribution agents in Vietnam’s 63 cities and provinces;
Logistics networks in Hanoi, Ho Chi Minh City, Da Nang, and Can Tho, and smaller warehouses in satellite
cities such as Nghe An and Hai Phong. These are all managed online which allows updating and reporting
sales revenue in real-time.
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TECHNOLOGY PRODUCT RETAIL
Products, services
• Computers;
• Tablets;
• Smartphones;
• Accessories;
• Apple products sold via chain of Apple-format retail stores.
• Top 10 retailers in Vietnam in 2015, receiving the Vietnam Trusted Brand Award in 2015;
• 252 ‘FPT Shop’-branded retail stores, in all 63 cities and provinces nationwide (as of December 31,2015);
• Retail chain of all of Apple’s licensed retail store formats, including Level 1 - APR (Apple Premium Reseller),
Level 2 - AAR (Apple Authorized Reseller) and CES (Consumer Electronic Stores) under ‘F.Studio’ brand
in Hanoi, Ho Chi Minh and Da Nang;
• One of two Vietnamese retailers being entitled to directly import Apple products;
• The only retailer in Vietnam with distribution rights for Motorola’s MotoX mobile handset, HP Stream
and Asus X205TA laptop product lines;
• The best agent of Acer and Dell in Vietnam.
EDUCATION SEGMENT
Products, services
• Upper secondary education;
• Vocational education;
• Graduate and Post-graduate education;
• International associated programs;
• International student development programs;
• Corporate training programs.
• The first Vietnamese university to be given 3-star rating by QS for two consecutive years. In 2015
in particular, four important criteria including: teaching, employability, facilities, social responsibility were
rated the highest 5-star rating by QS;
• Currently enrolling 17,900 students at all levels;
• 98% of graduates being able to find jobs within six months;
• Established FUNiX, the first online university in Vietnam.
OVERVIEW
21
GEOGRAPHICAL COVERAGE
Revenue
63
cities and provinces
nationwide
12%
88%
19
countries
worldwide
Profit before tax
The US
Japan
23%
Europe
77%
Foreign countries
Vietnam
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The UK
France
Germany
Slovakia
Netherlands
Asia Pacific
Vietnam
Kuwait
Philippines
Bangladesh Cambodia
Laos
Malaysia
Singapore Thailand
Indonesia
Myanmar
Australia
ORGANIZATIONAL STRUCTURE
ANNUAL GENERAL MEETING
OF SHAREHOLDERS
THE SUPERVISORY BOARD
THE BOARD OF DIRECTORS
THE BOARD OF MANAGEMENT
TECHNOLOGY
SECTOR
100% *
TELECOM SECTOR
45.64%*
FPT SOFTWARE
100% *
FPT TELECOM
51.95%*
FPT IS
DISTRIBUTION
AND RETAIL
SECTOR
100% *
FPT TRADING
85% *
FPT ONLINE
EDUCATION
SEGMENT AND
OTHERS
100% *
100% *
FPT RETAIL
FPT
EDUCATION
FPT
INVESTMENT
(*): FPT's ownership rate
OVERVIEW
23
SUBSIDIARIES AND ASSOCIATES
Subsidiaries
As of December 31, 2015 FPT has eight subsidiaries (excluding a subsidiary which has been scaled down since 2011)
and two associates.
Name of subsidiary
FPT Software
Company Limited
FPT Information
System Company
Limited
FPT Telecom Joint
Stock Company
FPT Online Service
Joint Stock Company
FPT Education
Company Limited
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ANNUAL REPORT 2015
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Charter capital (VND)
FPT’s
ownership rate
(%)
Providing software
products and services
700,000,000,000
100
Providing applications,
software solutions,
ERP, IT services and
integrated system
services
850,000,000,000
100
1,246,198,090,000
45.64
140,853,360,000
51.95
250,000,000,000
100
Place of incorporation
and operation
Principal activities
Floor 6-12, FPT Building,
Duy Tan Street,
Dich Vong Hau Ward,
Cau Giay District, Hanoi
Floor 22,
Keangnam Landmark 72,
E6 Pham Hung, Nam Tu
Liem District, Hanoi
Providing broadband
Floor 2, FPT Building,
internet services, leased
Duy Tan Street, Dich Vong
lines, data centers, voice,
Hau Ward, Cau Giay District,
television services and
Hanoi
other online services
Floor 2, Tan Thuan FPT
Building, Lot 29B-31B-33B,
Tan Thuan Street, Tan Thuan
Export Processing Zone,
Tan Thuan Dong Ward,
District 7, Ho Chi Minh City
Higher Education Division
of the Hoa Lac Hi-Tech
Park, Km 29, Thang Long
Boulevard, Thach That
District, Hanoi
E-newspapers, online
advertising
Providing Upper secondary
education; Vocational
education; Graduate and
Post-graduate education;
International Associate
degree programs;
International student
development programs;
Corporate training
programs
Name of subsidiary
FPT Trading
Company Limited
FPT Digital Retail
Joint Stock Company
FPT Investment
Company Limited
and operation
FPT Building, Duy Tan
Street, Dich Vong Hau
Ward, Cau Giay District,
Hanoi
Distributing ICT
products, solutions
and components;
Manufacturing desktops,
smart phones and
tablets
261-263 Khanh Hoi, Ward 5, Retail of ICT products,
District 4, Ho Chi Minh City components
FPT’s
ownership rate
(%)
680,000,000,000
100
200,000,000,000
85
800,000,000,000
100
FPT’s
ownership rate
(%)
FPT Building, Duy Tan
Street, Dich Vong Hau
Ward, Cau Giay District,
Hanoi
Financial services’
supporting activities
(investment consulting
excluding legal and
financial advice)
and operation
Floor 2, 71 Nguyen Chi
Thanh Street, Dong Da
District, Hanoi
Securities trading,
brokerage, investment
advisory and securities
depository services
806,648,700,000
20
Floor 9, TTC Building, Lot
B1A, Dich Vong Hau Ward,
Portfolio and fund
management and other
services
110,000,000,000
25
Associates
Name of associate
FPT Securities Joint
Stock Company
FPT Fund
Management Joint
Stock Company
OVERVIEW
25
LEADERSHIP
Graduated from the Math–Mechanics Department, Lomonosov
Moscow State University, Russia, in 1979. Successfully defended his
doctoral thesis at the university in 1982. Awarded title of Associate
Professor by the State in 1991.
TRUONG GIA BINH
Founding member,
Chairman of the BOD
Being given Nikkei Asia Award by the Nikkei Group, Japan, in 2013 for
his contributions to the development of Vietnam’s IT sector.
Founded FPT in 1988. During the firm’s development process, he
laid out the firm’s long-term vision and strategic orientations that
have enabled FPT to maintain its growth.
Graduated from the Mathematics Department, Kishinhov University,
Moldova, in 1979. Successfully defended his doctoral thesis on
databases at the University of Grenoble, France, in 1986.
Being a leading IT expert of FPT since the 1990s and was selected
as one of the top 10 chief information officers in Indochina in 2005.
BUI QUANG NGOC
Founding member,
Vice Chairman of the BOD
and Chief Executive Officer
Being an FPT’s prominent administration, he thoroughly understands
FPT’s business models and characteristics and has always been
pioneering the modernization of the company’s administration
systems and has a considerable experience in managing large and
complex projects which require a mobilization of various resources.
Graduated from the Military Technical Academy in Vietnam with a
degree in Mathematics of Control in 1984.
Since 1994, as the top leader of FPT IS, he made FPT IS one of FPT’s
technology flagships, continuously leading Vietnam’s System
integration, Software development and IT service markets.
DO CAO BAO
Founding member,
member of the BOD
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ANNUAL REPORT 2015
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He is the Chairman of FPT IS, Chairman of the FPT Personnel
and Remuneration Committee, Vice Chairman of the Vietnam
Information Security Association for the 1st term from 2008 to 2012,
Member of the Vietnam Association for Information Processing for
the 6th term from 2007 to 2011, and the 7th term from 2011 to 2014.
Received his MA in law from Hanoi National University in 1998 from
Cambridge University, UK in 1999.
LE SONG LAI
Non-executive member
of the BOD
Currently a Deputy General Director of the State Capital and Investment
Corporation (SCIC); Member of the BOD of Bao Minh Corporation; Member
of the BOD of Vietnam National Reinsurance Corporation.
Having been nominated by the SCIC for a position in FPT’s BOD for the
2012-2017 term. SCIC currently holds 6.02% of FPT’s shares as of February
24, 2016.
MBA at the École Supérieure de Commerce de Reims, France.
Has worked in Vietnam for 14 years. He used to be the CEO of a well-known
French bank in Vietnam. He is a banking expert with 25 years of experience
in corporate finance, technical finance and project finance.
JEAN-CHARLES
BELLIOL
He is also the commercial counselor of the French Embassy in Vietnam, a
member of the BOD at Tri Tin International JSC and Everpia Corporation.
Non-executive member
of the BOD
Being nominated by Red River Holdings for a position in FPT’s BOD for
the 2012-2017 term. Red River Holdings holds 5.70% of FPT’s shares as of
February 24, 2016.
World renowned IT guru with 40 years of experience.
Formerly Chairman and CEO of NTT Data, the world’s sixth largest IT
service provider. NTT Data is a part of the NTT Group, which ranked 32th on
Fortune’s Global 500 list in 2013.
TOMOKAZU
HAMAGUCHI
Independent member
of the BOD
Mr. Tomokazu Hamaguchi is currently the Chairman of JISA, a member
of the IHI Corporation’ s BOD, an independent member of JR East Japan
Railway Company’s BOD, and an independent member of Kuararay Co.Ltd’s
BOD.
Officially became an independent member of FPT’s BOD since April 2015,
playing the role of strategic consultant of FPT’s globalization strategy,
particularly in the Japanese market.
Over 25 years of experience in IT.
Having been a top leader in many prestigious technology organizations
throughout the world, including the Southeast Asia Information
Technology Organization (SITO), and the Asian-Oceanian Computing
Industry Organization (ASOCIO).
DAN E KHOO
Independent member
of the BOD
Currently holds the Chairman Emeritus of the World Information
Technology and Services Alliance (WITSA).
Took the post of an independent member on FPT’s BOD since April 2015,
providing instruction on implementing FPT’s globalization strategy and
consultation on its strategies and operations in developing countries.
OVERVIEW
27
LEADERSHIP
(continued)
Being one of FPT’s 13 founders and the first to lead FPT’s technology sector,
which was the precursor of several important subsidiaries such as FPT IS, FPT
Software, FPT Telecom and FPT Trading.
BUI QUANG NGOC
Being an FPT’s prominent administrator, he thoroughly understands FPT’s
business models and characteristics and has always been the pioneer in
modernizing the company’s administration systems and has great deal of
experience in managing large and complex projects which require mobilization
of various resources.
In August 2013, he was appointed FPT’s CEO to segregate the role of chairman
of the BOD and the CEO according to modern administration standards, and to
help enhance the group’s operational efficiency.
Graduated from the Foreign Trade University, Hanoi, Vietnam, in 1999.
Since joining FPT in August 2000, he has made remarkable contributions to
the construction of FPT’s finance and accounting system, bringing them up to
international standards.
NGUYEN THE PHUONG
Executive Vice President and
Chief Financial Officer
In the last 16 years, he has held many important positions in finance and
financial control.
He is also currently FPT’s Chief Financial Officer.
Graduated from the University of Science and Technology in 1995.
Being part of the FPT team since 1995, he has a wealth of experience in managing
and implementing FPT’s large IT projects in banking, telecommunications and
tax sectors in both domestic and foreign markets.
DUONG DUNG TRIEU
Executive Vice President of
Global Expansion
Having been the CEO of FPT IS during the 2010-2014 period, he has made
important contributions to FPT IS, presiding over its selection as EPC contractor
for many large-scale IT projects, including the personal income tax management
application project for the tax authorities, the ERP project for Petrolimex, as
well as the driving license database management construction project for the
General Department of Vietnam Roads.
In May 2014, he was appointed FPT’s Executive Vice President of Global
Expansion.
Joined FPT in 1991, he was a Deputy Director of FPT’s software production unit
and directly participated in ensuring human resources for software outsourcing.
During the 1999-2004 period, he was the Director of the Indian franchised
International Programmers Training Center following Aptech model. He has
helped make FPT Aptech become Vietnam’s No. 1 international programmer
training institution.
NGUYEN KHAC THANH
Executive Vice President of
Global Human Resources
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ANNUAL REPORT 2015
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He was one of the founding members of FPT University and has helped steer the
expansion of its training fields and scope.
In May 2014, he was appointed FPT’s Executive Vice President of Global Human
Resources.
In 2015, membership of the FPT BOM underwent some changes. The board has
approved the termination of Mrs. Chu Thi Thanh Ha as FPT’s Executive Vice President,
and Mr. Nguyen Lam Phuong as FPT’s Chief Technology Officer.
The board was pleased to approve the appointment of Mr. Le Hong Viet as Chief
Technology Officer, Mr. Uwe Schlager, formerly Director of FPT in Germany as FPT’s
M&A Director, and Mr. Hoang Viet Ha as Chief Operating Officer.
Graduated from Sydney University (Australia) with a software engineering
degree in 2004.
Having joined FPT since 2005, he has held many important positions and
contributed positively in technology activities and manufacturing business
of the software outsourcing segment.
LE HONG VIET
Chief Technology Officer
With a solid technical foundation and working experience in many
countries, he is one of the people who has laid the foundation for the
application and development of new technologies at FPT.
In November 2015, he took the post of FPT’s Chief Technology Officer
(2015-2018).
Having joined FPT Software since the middle of 2012 with a market
development mission in Germany and Europe, he used to work for Daimler
Benz and T-Systems in Germany and Singapore in the role of senior
manager of operations and sales.
UWE SCHLAGER
M&A Director
He was the most important contributor in FPT’s M&A deal with the RWE
Group in June 2014. This was first M&A deal in a foreign market of FPT in
particular and Vietnam’s IT industry in general.
In April 2015, he was appointed FPT’s Director of M&A with the expectation
to boost overseas revenue from M&A activities and to promote the
globalization strategy of the Corporation.
Holding a doctoral degree in Business Management from the Macquairie
Graduate School of Management, Sydney, Australia.
HOANG VIET HA
Chief Operating Officer
He has had many years of experience managing large companies and
groups. He served as the Chief Operating Officer of Bao Viet Group from
2011 to January 2015, Vice Chairman of HIPT’s BOD for the term from 2012
to 2016, and a member of the National Reinsurance Company’s BOD.
In April 2015, he was appointed of the Chief Operating Officer of FPT.
OVERVIEW
29
LEADERSHIP
(continued)
Graduated from the Hanoi Commerce University in 1989, and received
an MBA at Rushmore University in the US in 2006.
From 1997 to 2009, he acted as the Deputy Head of the Business
Administration Department of Hanoi National University.
NGUYEN VIET THANG
Head of the Supervisory Board
Having been the Vice Principal of FPT University cum Director of FPT
Academy International since October 13, 2009.
Having been a member of FPT’s Supervisory Board since 2008 and was
appointed the Head of the board at the AGM in 2012.
Graduated from the Finance Institute, Russia, in 1999 and holds a
doctoral degree in Economics (major in investment) from the Economics
Institute of the Russian Academy of Sciences, 2003.
NGUYEN KHAI HOAN
Member of the Supervisory Board
Joined FPT in 2003, from 2005 to 2010, he was the Head of Finance
Department cum Chief Accountant of FPT Software. Since January
1, 2011, he has been the Executive Vice President of Finance of
FPT Software.
Awarded an honorary BA degree in Economics from the New South
Wales University (Australia); a BA degree in Finance and Banking at
the Newcastle University (Australia) and a Master degree in Asset
Management at the SMU (Singapore). He is a candidate of CFA – Level III.
CAO DUY HA
Member of the Supervisory Board
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ANNUAL REPORT 2015
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He is currently Deputy Head of SCIC’s Business Investment Department.
He has been a BOD and Supervisory Board member at various SCIC
portfolio companies, such as Head of the Supervisory Board of the
National Seed Joint Stock Company (NSC) for the term from 2012 to
2017 and he is a member of FPT’s Supervisory Board for the term from
2012 to 2017.
EQUITY AND SHAREHOLDING
INFORMATION
STOCK INFORMATION
Shareholding structure
Foreign investors
49
%
Internal investors
23.15
The State (SCIC)
%
6.02
Other domestic investors
%
21.83
%
Some key indicators
As of December 31, 2015
Charter capital
VND3,975,316,400,000
Number of listed shares
397,531,640
Type of shares
Common shares
Number of current shares
397,449,264
Treasury shares
82,376
Par value
VND10,000/share
DIVIDEND PAYMENT HISTORY FROM 2011 TO 2015
2011
432
2012
548
2013
810
2014
676
2015
779
Note: Cash dividends are made at the rate that has been approved by the AGM for the respective years. Therefore, it
is not the same as “dividends and profits paid” in the Consolidated cash flow statement, because this number includes
advance dividend payment of the current respectively years and the dividend payment of the previous year (if any).
OVERVIEW
31
STRATEGIC DIRECTIONS
FOR THE 2016 - 2018 PERIOD
MACROECONOMIC PROSPECTS
Regarding the prospects of the global economy, in
the context of many remaining risks and uncertainties,
the International Monetary Fund (IMF) forecasts a GDP
growth of the world economy of 3.6% in 2016, higher
than the growth rate of 3.3% in 2015.
Regarding the prospects of the Vietnamese economy,
the National Assembly set the target for GDP growth
at 6.7% in 2016, as compared to 6.68% in 2015. Besides,
joining free trade agreements, particularly the TransPacific Strategic Economic Partnership Agreement (TPP)
and the ASEAN Economic Community (AEC) will create
numerous technology opportunities for Vietnam in
international cooperation.
INDUSTRIAL PROSPECTS AND OPPORTUNITIES FOR FPT
Global market to bring great opportunities
Global IT services trends
According to Gartner's Invest Quarterly Sector outlook
report, the global IT services market is expected to grow
4.0% in 2016, reaching over USD1,000 billion and will
continue to grow at an average of 4.3% per annum for
the next three years.
In 2016, it is forecasted that outsourcing contracts will
require greater flexibility and efficiency, Big Data will be
used more; companies with limited financial resources
will look to external suppliers to increase their ability
to handle big data and cloud computing-equipped
vendors will have a competitive advantage in the IT
services market.
S.M.A.C, IoT migration trends
IDC's forecast on IoT by 2020
50
TRILLION
Gigabytes of data
4 BILLION
MORE THAN
25
connected
people
MILLION
applications
USD
4
TRILLION
in revenue
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ANNUAL REPORT 2015
www.fpt.com.vn
2020
MORE THAN
25
BILLION
embedded and
intelligent systems
According to Gartner's survey
on IoT and Digital enterprises,
enterprises are now considering
information and Internet to be
key elements to become digital
enterprises. However, there is
still less than 10% of companies
integrating their activities with a
digital business strategy and this
is the opportunity for technology
companies, like FPT, to help
customers migrate into the digital
world.
In particular, S.M.A.C and IoT
continue to be the two mainstream
trends of the global IT industry.
Domestic IT-Telecommunication market trends
Integrated system and infrastructure solutions market - Expectations of new policies
On October 14, 2015, the Government issued Resolution
No. 36a/NQ-CP on e-government for the 2015-2017
period. This Resolution focuses on three main objectives
to develop e-government which are: connecting
electronic documents from the central government
to the provincial, district and communal levels; 100%
of public services are to be provided via electronic
network; and establishing a national public service
portal at a single website. Resolution No. 36a/NQ-CP was
promulgated to improve the position of the Vietnam
Electronic government as ranked by the United Nations
and to provide FPT and other Vietnamese IT enterprises
with the opportunity to participate in the process of
administrative reform and e-government.
Besides, Decision No. 80/2014/QD-TTg regulating on
pilot leasing IT in state agencies which officially took
effect in February 2015, created a new business model for
enterprises delivering IT services. FPT had its first success
with this business model with its implementation of the
e-ticketing system for the Vietnam Railways Corporation.
Meanwhile, according to International Data Corporation
(IDC), Vietnam is developing strongly and more
investment is needed in infrastructure, especially IT
infrastructure. Besides, spending on IT also tends to shift
from hardware to software and services. IDC forecasted
that in the 2016-2018 period, spending on hardware
growth rate will decrease 2.1% per year averagely, while
the growth rate of spending on software and services is
expected to remain double-digit of 12.9% per annum.
This is also in line with FPT’s growth strategy which
focuses on investing in software solutions development
and IT services provision.
IT spending in information systems in Vietnam during 2014 - 2018
Unit: USD in millions
2014
573
1,270
2015
642
1,289
2016
728
1,285
2017
823
1,209
2018
925
1,211
Software and services
Hardware
Source: IDC, 2015
Fixed-line telecommunication and Pay TV market – Full of growth potential
According to the summary report on 2015 performance
and 2016 plan of the Ministry of Information
and Communications, from 2011 to 2015, the
telecommunication market has grown an average of
30-50% per year. Vietnam’s telecommunication network
and Internet infrastructure is continuously growing and
new Internet resources are being developed which are
consistent with the trend of science and technology
convergence and development.
In the Pay TV business, we have witnessed impressive
growth and the expansion of various forms of services such
as: cable TV, digital terrestrial television, satellite television,
Internet protocol TV and mobile TV in recent years.
Mobile phone and IT product market
According to a recent GfK report, the phone
consumption market in Vietnam has witnessed positive
movements thanks to the growth of smartphones which
support online activities. Accordingly, in 2015, 12.9
million smartphones were sold in Vietnam, an increase
of 28.1% against 2014. This makes Vietnam the fastest
growing and also the third largest smartphone market
in Southeast Asia.
OVERVIEW
33
STRATEGIC DIRECTIONS
FOR THE 2016 - 2018 PERIOD (continued)
STRATEGIC BUSINESS DIRECTIONS FOR THE 2016-2018 PERIOD
Becoming a global corporation
Target
• Revenue from overseas markets to account for 30% of total revenue in 2020;
• Internationalizing the ‘FPT Culture’.
Strategic actions
• Providing new products/services for global markets;
• Applying international standards;
• Pursuing cross-border M&A;
• Popularizing the use of English throughout the Corporation.
Revenue from overseas
markets
30%
in 2020
Pioneering in the digital world
Target
• Being a pioneer in the digital world; participating in the formation of the
global technology ecosystems;
• Growing revenue from providing digital services to customers by more
than 70% a year.
Growing
70%/year
revenue from providing digital
services to customers
Strategic actions
• Providing digital services to customers;
• Pioneering in digitalizing management and business model;
• Investing in IT startups which complement FPT’s ecosystems;
• Inspiring FPT employees to be pioneers in the digital world.
Transforming into a world-class company
Target
• Being on the Forbes Global 2000 list by 2020;
• Becoming a learning organization, improving leadership ability.
Strategic actions
• Enhancing the international rankings of all business segments;
• Signing long term and high value contracts; developing turnkey products
and services in specialized domains and value added services;
• Growing strategic ‘start-ups’ that can contribute to generate revenue growth;
• Requiring FPT staff to spend at least 20hours/year on learning so that they
can improve their skills and increase their knowledge and developing
a criteria matrix that will enable the assessment and improvement of
leadership capacity.
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ANNUAL REPORT 2015
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FPT being on the Forbes Global
2000 list by 2020
BECOMING A GLOBAL
CORPORATION
PIONEERING IN THE
DIGITAL WORLD
STRATEGIC
BUSINESS
DIRECTIONS FOR
THE 2016-2018
PERIOD
TRANSFORMING INTO
A WORLD-CLASS
COMPANY
SUSTAINABLE
DEVELOPMENT
ORIENTATIONS
Sustainable development orientations
As the largest IT company in Vietnam’s private economic sector, FPT is aware of the importance
of this strategy and strives to achieve the objective of combining economic, environmental and
social good to ensure a balance of interests for all parties involved in current and future operations.
Key objectives of FPT’s sustainable development strategy includes:
• Sustainable growth in revenue and profit;
• Developing highly skilled human resources; actively participating in; and contributing to community activities;
• Raising awareness for environmental protection and energy conservation; ‘Greening’ the business and lifestyle.
(Refer to FPT's Sustainability Report, page 80)
OVERVIEW
35
03
Provide IT services for
RWE– the leading energy
group in Europe
ANALYSIS
ENERGY
(electricity, gas)
SMART
HEALTHCARE
15 years’ experience
Applied in more than 100
hospitals and health facilities
Online health insurance
claim system
FPT's
technology
Typical projects: Bach Mai hospital,
Cho Ray hospital, Electronic health
insurance claim system (FPT.eClaim)
AUTOMOBILE
Nearly 10 years’ experience
Develop an in-car
entertainment system for
several foreign automobile
manufacturers
INSURANCE
SMART
TRANSPORTATION
Online train tickets
Insurance agency management
system of 15,000 - 20,000
agents nationwide
Bus Management System
Transportation monitoring of
the Noi Bai - Lao Cai Highway
E-bus ticket system
GOVERNMENT
Domain business - oriented technology: Based on
experience in implementing large-scale and complex projects
in domestic and foreign markets, FPT has developed advanced
technological capabilities by domain business.
FPT.eGov implemented at 539
state-owned authorities in 22
cities and provinces nationwide
Provide IT services for
telecom enterprises
TELECOMMUNICATIONS
capability
PUBLIC
FINANCE
09 big
PIT project (Vietnam): manage
20 million taxpayers
FMIS project (Cambodia): used by
33 financial units in Cambodia
BANKING
More 20 years’ experience
Typical projects: Vietcombank,
BIDV, Viettinbank, Maritime bank
ERP
BROADCASTING
60 million
households in the US and
Latin America use the application provided
by FPT cooperating with the No.1US
satellite television services provider.
More than 100 customers
The project with Petrolimex:
1,500 users nationwide
AND MANAGEMENT DISCUSSION
THE MACRO ECONOMIC CONTEXT IN 2015
The macro-economic context in Vietnam started to have some more positive factors in 2015 as compared to 2014
which included GDP growth of 6.68%, the highest growth rate in recent five years. Inflation has set a record low with
CPI increased by only 0.6% in 2015. Interest rate kept being low which helped boost investment and consumption.
Vietnam continued to be an attractive investment destination thanks to improving investment environment and the
integration into international trade environment by signing the Transpacific Partnership (TPP) and integrating into
ASEAN Economic Community (AEC). However, the fact that Vietnam Dong has devaluated by more than 5% in 2015
– a high fluctuation as compared to a recent five-year trading band, has some negative impacts on import-related
enterprises. Besides, factors such as the world oil price has slumped, China economy slowed down and Vietnam’s
state budget continued to have a higher deficit continued to challenge Vietnam’s macro-economic targets.
BUSINESS PERFORMANCE IN 2015
AND MANAGEMENT DISCUSSION
In such a macro-economic context, FPT has fulfilled both revenue and profit targets, especially with profit returned to
the double-digit growth track. Specifically, consolidated business revenue in 2015 reached VND40,003 billion, equal
to 101% of target, up 13.9% versus 2014; profit before tax reached VND2,851 billion, equal to 100% of the target, up
15.9% versus 2014. Profit after tax (PAT) and PAT attributable to parent company’s shareholders was VND2,438 billion
and VND1,931 billion in 2015, up 17.3% and 18.3% year-on-year, respectively. EPS increased by 17.8% year-on-year,
to VND4,386. Total consolidated assets increased by 14.9% year-on-year, reaching VND26,046 billion.
Overseas market continued to grow healthily and contributed considerably, especially in terms of profit to the
consolidated financial performance. Revenue from overseas markets in 2015 was VND4,859 billion, up 40.9% versus
2014, which was roughly equal to USD221 million. Profit before tax from overseas markets was VND668 billion (or
roughly USD30.4 million) in 2015, up 15.1% versus 2014, accounting for nearly one-fourth of the consolidated profit
before tax of the Corporation.
Some financial indicators
Unit: VND in billions except for EPS
Items
2014
2015
Change
Total assets
22,658
26,046
14.9%
Consolidated business revenue
35,130
40,003
13.9%
Operating profit
2,389
2,802
17.3%
EBITDA
3,173
3,847
21.2%
Profit before tax
2,459
2,851
15.9%
Profit after tax
2,079
2,438
17.3%
Earnings per share (VND)
3,723
4,386
17.8%
Payout ratio
42.1%
41.2%
Consolidated business revenue
38
ANNUAL REPORT 2015
www.fpt.com.vn

13.9%
versus 2014
Profit after tax

17.3%
versus 2014
FINANCIAL POSITION
Total assets
Total assets was VND26,046 billion as of December 31, 2015, up 14.9% yearon-year. Return on assets (ROA) was 10.4%. Accounts receivable balance as
of December 31, 2015 increased from VND4,286 billion to VND4,994 billion
as revenue increased strongly by 13.9%. However, accounts receivable
turnover has improved from 8.68 times in 2014 to 8.91 times in 2015,
suggesting improvement in debt collection.
Pertaining to the balance of provision for doubtful accounts receivable,
in Telecom services segment, the provision was made based on historical
percentage of dropped out customers of whom the receivable amount is
unable to collect. In the telecommunication business, this is considered an
operation expense. However, as per accounting regulations, the company
cannot net-off the amount due from dropped out subscribers with the
provision made for such accounts, which resulted in considerably large
amount of provision being accumulated throughout the years. The balance
of provision for doubtful accounts receivable as of December 31, 2015, if
excluding such provision in the Telecom services segment, was VND88 billion,
accounting for 2.28% total short-term accounts receivable balance, which was
equal to the ratio as of December 31, 2014 of 2.27% and remained low.
Total assets

14.9%
versus 2014
Total liabilities
As of December 31, 2015, total interest-bearing debts has increased from
VND6,865 billion (as as of December 31, 2014) to VND8,806 billion, in which
short-term borrowing balance increased by VND1,469 billion, and long-term
borrowing increased by VND472 billion. Short-term borrowing increase
was mainly to finance working capital in the retail segment, and to invest
in the Telecom services and Software outsourcing segments. Short-term
borrowing balance as of December 31, 2015 increased year-on-year was
mainly due to the Telecom services segment (increased by VND962 billion),
Retail segment (increased by VND733 billion), and Software outsourcing
(increased by VND309 billion). The Distribution segment, which accounts
for the majority of the consolidated short-term borrowing balance, had its
balance reduced by VND557 billion.
Long-term borrowing was to finance capital expenditure investments at
the subsidiaries, in which the Telecom services segment has its balance
increased by the most. As of December 31, 2015, long-term borrowing
balance at the Telecom services segment increased by VND445 billion (2014:
zero balance), which accounted for 95% of the difference in consolidated
long-term borrowing balance between the two periods.
The net debt to equity ratio of the Corporation was 0.27 times, albeit
being higher than the 0.13 times as at December 31, 2014, remaining low,
implying high financial safety as well as the potential to mobilize more
financial resources for business expansion going forward.
The net debt to equity ratio
of the Corporation was
0.27times
versus 2014
BUSINESS PERFORMANCE ANALYSIS
39
AND MANAGEMENT DISCUSSION (continued)
Fundamental ratios
Ratios
2014
2015
Current ratio
1.29
1.27
Quick ratio
0.94
0.91
Debt/Total assets
0.30
0.34
Debt/Equity
0.74
0.86
Net debt/Equity
0.13
0.27
Interest coverage
15.80
11.86
Inventory turnover
6.70
6.19
Accounts receivable turnover
8.68
8.91
Accounts payable turnover
10.62
10.68
Cash conversion cycle (in days)
62.15
65.73
Operating profit margin
6.8%
7.0%
Profit before tax margin
7.0%
7.1%
Profit after tax margin
5.9%
6.1%
Return on capital
16.3%
16.4%
Return on equity (ROE)
23.6%
24.8%
Return on assets (ROA)
10.9%
10.4%
1. Liquidity ratios
2. Leverage and coverage ratios
3. Operating efficiency ratios
4. Profitability ratios
PERSONNEL AND ORGANIZATION STRUCTURE
The Board of Executive Officers and Chief Accountant
No.
40
Member
1
Bui Quang Ngoc
2
Position
Voting rights
3.72%
Nguyen The Phuong
Executive Vice President
0.07%
3
Duong Dung Trieu
0.27%
4
Nguyen Khac Thanh
0.19%
5
Hoang Huu Chien
Chief Accountant
0.01%
ANNUAL REPORT 2015
www.fpt.com.vn
Changes in the Board of Management
• Appointing Mr. Le Hong Viet as Chief Technology Officer.
• Appointing Mr. Uwe Schlager as Director of Merger and Acquisition (M&A).
• Appointing Mr. Hoang Viet Ha as Chief Operating Officer.
Number of staff and employees’ policies
By the end of December 2015, FPT had 26,818 employees, a 21.8% increase against 2014, including 1,135 foreign
employees with 25 nationalities.
In order to provide every employee with the most favourable work environment possible, enabling them to reach their
full potential in terms of their careers and personal lives, FPT always focuses on drafting and implementing beneficial
treatment policies and creating active, inspirational working environment.
26,818
1,135
employees
25
foreign employees
nationalities
INVESTMENTS AND MAJOR CAPITAL EXPENDITURE PROJECTS
Major capital expenditure projects
As usual, major capital expenditure projects mainly incurred in Telecom sector (to invest in infrastructure, expand the
customer base and invest in new products), Technology sector (to build office complex to meet the rising demand of
office space thanks to increasing workforce) and invest in technology R&D. Total cash reimbursement relating (to such
projects in 2015 was VND2,090 billion), being summed up from sectors as follows:
Reimbursement
in 2015
Business sectors
Major projects
Telecom sector
Investment in infrastructure, customer acquisition, fiber
optic swap project, pay TV services…
Technology sector
Investment in office building to support business expansion
R&D of technologies (Cloud, Mobility, DMS, etc)
Distribution and Retail sector
1,487.6
511.6
24.6
6.1
Education segment and Others
60.3
Total capital expenditure
2,090.2
41
AND MANAGEMENT DISCUSSION (continued)
Subsidiaries and associates
As of December 31, 2015 FPT has eight subsidiaries
(excluding a subsidiary which has been scaled down
since 2011) and two associates, which are divided into
four business sectors including Technology, Telecom,
Distribution & Retail, and Others.
Subsidiaries
99 FPT Online: please refer to the analysis of the Digital
content segment.
• In Distribution and Retail sector:
99 FPT Trading Group: please refer to the analysis of
the Distribution of IT products;
99 FPT Digital Retail: please refer to the analysis of the
Retail of IT products.
• In Technology sector:
99 FPT Software: please refer to the analysis of the
Software outsourcing segment;
99 FPT Information System (FPT IS): please refer to
the analysis of the Software solutions, System
integration and IT services segments.
• In Telecom sector:
• In Education segment and others:
99 FPT Education: please refer to the analysis of the
Education segment;
99 FPT Investment: manages FPT’s investment.
Associates
• FPT Fund Management Joint Stock Company.
99 FPT Telecom: please refer to the analysis of the
Telecom services segment;
• FPT Securities Joint Stock Company.
REPORT ON THE CORPORATION’S SOCIAL
AND ENVIRONMENTAL RESPONSIBILITIES
Apart from continuously improving the business performance and corporate governance of the Corporation, FPT has
fully realized our role in making contributions to add more values to the development of Vietnamese environment
and society, with special focus on education support, making it best for the younger generation to grow in the future.
In 2015, FPT has spent nearly VND33.6 billion for activities involving corporate social responsibilities (CSR), in which:
• The Corporation has sponsored VND30.8 billion to support education and the youth, which has benefited around 20
million students and pupils in Vietnam;
• The Corporation has sponsored VND2.8 billion for humanity and charity programs.
Spending on CSR activities in 2015
No.
42
Name of program
I
Supporting education and the youth
1
Scholarships
2
Implementation of technology application enhancement
programs in education
3
Number of
attendants/
beneficiaries
Amount
(in VND)
30,803,964,252
955
20,749,879,700
20,000,000
7,072,000,000
Provision of learning tools (computers, books, etc.)
15,000
2,132,331,552
4
Honouring and encouraging outstanding students in their own
majors
13,216
849,753,000
II
Humanity and charity activities
ANNUAL REPORT 2015
www.fpt.com.vn
2,751,664,530
FINANCIAL PERFORMANCE ANALYSIS
OVERVIEW OF BUSINESS
PERFORMANCE BY SECTORS
In 2015, consolidated business revenue and profit before tax of FPT has recorded double-digit growth rate, meeting
initial guidance, in which core business sectors have recorded impressive growth rates.
Actual 2015
Business sectors
Percentage of guidance
completion
2015 guidance
Business
revenue
Profit
before tax
Business
revenue
Profit
before tax
Business
revenue
Profit
before tax
Technology sector
8,605
927
8,310
998
103.5%
92.9%
Telecom sector
5,484
1,044
5,134
1,005
106.8%
103.9%
Distribution and Retail sector
25,213
728
25,510
698
98.8%
104.3%
Education segment and Others
702
151
646
149
108.7%
101.5%
40,003(*)
2,851(*)
39,600
2,850
101.0%
100.0%
Total
(*): Total may not add up due to rounding error.
The Technology sector: has delivered 103.5% of the revenue guidance,
and 92.9% of the profit before tax guidance, up 22.3% and 25.3% yearon-year, respectively. For the first time, revenue from overseas markets in
the Technology sector has surpassed which from the domestic market,
accounting for 52% of the sector’s revenue, up 40.5% year-on-year. Going
forward, overseas markets are playing a more and more important role
as a key growth driver, not only for the Technology sector, but also for
the Corporation.
The Telecom sector: has delivered the annual guidance earlier than
planned, recording VND5,484 billion, up 16% year-on-year, and PBT of
VND1,044 billion, up 11.6% year-on-year, fulfilling 106.8% and 103.9% of the
full year guidance. In 2015, the Telecom services segment has completed the
fiber optics conversion project in Hanoi and Ho Chi Minh City, and gradually
expand the project to the next cities. Besides, the Online advertising segment
has delivered a healthy growth with revenue and PBT up by 15.4% and 9.8%
year-over-year, respectively, fulfilling the full year targets.
The Distribution and Retail sector: has its revenue up 10.9%, fulfilling
98.8% of the full year target, and PBT up 23.6% year-over-year, fulfilling 104.3%
of the full year target. The Distribution segment has a flat performance
compared to previous year. The Retail segment has become a key driver for
the sector’s growth by delivering an outstanding performance thanks to the
continued expansion of the retail chain, as well as continuous operational
improvements.
The Education segment: has recorded a turnaround in the number of new
enrolments in 2015 with an increase of 15.4% year-over-year, especially the
university which recorded a growth rate of 32.6% year-over-year. The first
online university in Vietnam, named it FUNiX – has also been introduced with
the offering of bachelor degree in IT, which is expected to help train even
more software engineers in Vietnam going forward.
Profit before tax of the Technology sector

25.3%
Versus 2014
Profit before tax of the Telecom sector

11.6%
Versus 2014
Profit before tax
of the Distribution and Retail sector

23.6%
Versus 2014
43
(continued)
BUSINESS SEGMENT ANALYSIS
Technology sector
Profit before tax
Revenue
10%
29%
10%
8,605
BILLION
10%
48%
+22%
12%
927
BILLION
68%
+25%
13%
IT services
873
+12%
IT services
90
+6%
System integration
2,530
-6%
System integration
96
-30%
Software solutions
1,098
+68%
Software solutions
107
+8068%
Software outsourcing
4,104
+40%
Software outsourcing
634
+23%
Software development segment
The Software development segment includes two businesses which are Software outsourcing and Software
solutions. In which, the Software outsourcing business provides IT outsourcing services such as technology migration,
advisory and R&D services that relate to S.M.A.C/IoT technology trends, application development services, etc for
customers in developed markets. The Software solution business provides solutions in verticals such as Public sector,
Public Finance, Telecom, Transportation, Banking and Finance, Electricity/ Water / Gas supply, Healthcare for customers
in developing markets.
In 2015, the Software development segment was a key growth driver for the group with recorded revenue of VND5,202
billion, and PBT of VND741 billion, up 45% and 43%, respectively year-over-year. As such, the Software outsourcing
business has maintained high growth with revenue increased by 40% year-over-year and Software solutions business
has a considerable recovery, especially in terms of profit.
Revenue
»» Software outsourcing business
Continued to grow healthily with 40% increase versus prior year in terms
of revenue, and 23% year-over-year in terms of profit before tax, being
named in IAOP’s Global Outsourcing 100 list for the 3rd consecutive year.
44
ANNUAL REPORT 2015
www.fpt.com.vn

40%
versus 2014
Highlights in 2015
Revenue accounted for 84% of FPT’s total business revenue from overseas markets
In 2015, revenue from Software outsourcing business reached VND4,104 billion, which was equal to roughly USD184
million, and profit before tax was VND634 billion, up 40% and 23% year-over-year, respectively, in VND term. FPT has
continued to be named in IAOP’s Global outsourcing 100 list. PBT margin was 15.5% in 2015, which was 2.2% lower
than in 2014 due to one-off factors including (1) FPT Slovakia was in the transition period towards using more Vietnambased human resource; (2) increased investment in expanding the delivery workforce with the ‘10,000 Bridge Software
Engineer (BrSE)’ program, and the sales force. Profit margin in 2016 is expected to increase thanks to (1) expected
higher margin from FPT Slovakia, and (2) optimizing the use of human resource pool.
Continued to diversify the customer base, while being able to simultaneously
increase work volume with key account
Criteria
Revenue
Percentage of total
Growth in
2015/2014
2015
2013
2014
2015
2013
2014
Top 10 customers
882
1,133
1,684
41%
39%
41%
49%
Top 20 customers
1,307
1,633
2,199
61%
56%
54%
35%
Top 30 customers
1,530
1,933
2,559
71%
66%
62%
32%
In 2015, Top 30 customers accounted for 62% of total Software outsourcing revenue, which was lower than previous
years (2014: 66%; 2013: 71%). This has shown that customer diversification has been conducting well. Besides, the
group of top 30 customers also maintained high revenue growth with a growth rate of 32% in 2015.
All key markets have delivered impressive growth
Japan market: accounts for 45% of total revenue from
Software outsourcing business and has maintained an
impressive growth with revenue up 40% year-over-year.
The severe shortage of IT engineers in Japan, coupling
with the trending movement of Software outsourcing
work out of China will continue to be opportunities for
Vietnam in general, and FPT in particular in Japan market.
The US market: has been the second largest market in
the Software outsourcing business. Revenue from the
US market increased by 37% year-over-year, accounting
for 27% of Software outsourcing revenue in 2015. FPT is
currently investing in researching for solutions involving
S.M.A.C and IoT technology trends in order to compete
with bigger players.
The Europe market: has continuously scaled up in which
FY2015 revenue increased by 56% year-over-year, and
FY2014 revenue also increased by 117%, partially thanks
to the newly incorporated M&A strategy. Together with
Japan and the US, Europe market is expected to become
one of the three key markets which form a “tripod” for
FPT’s Software outsourcing business going forward.
Software outsourcing revenue
and contribution by markets
in 2015
12%
16%
45%
27%
APAC484
Europe656
The US
1,121
Japan1,843
Software outsourcing revenue growth
by markets
APAC
30%
Europe
56%
The US
37%
Japan
40%
The Asia Pacific market (APAC): has delivered a 30%
revenue growth in 2015, contributing 12% to Software
outsourcing revenue.
45
(continued)
Key changes aiming towards the ambitious goal
of reaching USD1 billion in revenue from overseas
markets for the Corporation
99 Adding high ranking officers at strategic markets
For business expansion and better management of
resources that serve Japan and the US markets, especially
the human resource, FPT Software has appointed Mr.
Hatakeyama Tsutomu as Vice President of FPT Japan,
and Mr. Malay Verma as Business Development Director
of FPT USA. Both Mr. Hatakeyama Tsutomu and Mr.
Malay Verma have extensive leadership experience in
multinational corporates. The appointment was also
to diversify knowledge and experience among FPT’s
management team, helping make FPT to transform into
a really global company in the future.
99 Opening new delivery centres and expanding
existing ones in Vietnam, Phillippines and Myanmar
To meet high demand of scaling up the human resource,
respectively with the increased orders from customers,
FPT Software has opened offices in Philippines and
Myanmar, and also offices in Hanoi. As such, the Software
outsourcing business is now having six major delivery
centres, including four in Vietnam, namely in Hanoi,
HCMC, Da Nang, and Can Tho, one in Philippines, and
one in Slovakia.
»» The Software solutions business
Revenue and profit has strongly bounced back.
Many major projects have been completed both
in domestic and international markets, building
up a strong track record for future projects.
If Software outsourcing business has its revenue from
developed markets, revenue of the Software solutions
business has mainly come from the domestic market,
and gradually built up revenue from developing markets
including Laos, Cambodia, Bangladesh, to name a few.
Important highlights in 2015
Revenue and profit has returned to a strong positive
growth after 3 years of showing no growth (2012 – 2014)
Thanks to continuous efforts in restructuring the business,
switching from System integration into developing
Software solutions and IT services, the Software solution
business has recorded VND1,098 billion in revenue, up
68% year-over-year, and profit before tax of VND107
billion in 2015, up 8,068% against 2014.
Revenue of The Software solutions business

68%
against 2014
99 Launching the ‘10,000 Bridge Software Engineers’
(10,000 BrSE) program
According to an annual survey which has been
conducted in the last 10 years by Manpower Group
named Talent Shortage Survey, in 2015, there was 83%
of surveyed HR leaders in Japan said that they faced
difficulties filling jobs, which was the highest rate among
42 surveyed countries. Also in Japan, IT personnel was
the third hardest jobs to fill (as compared to the global
average, where IT personnel was the ninth hardest jobs
to fill in 2015).
In such a context, coupling with the Corporation’s own
demand for talents, FPT has launched the ‘10,000 BrSE’. In
2015, there were nearly 1,000 bridge software engineers
who were trained in Vietnam and Japan under the
program.
46
ANNUAL REPORT 2015
www.fpt.com.vn
Profit before tax of the Software
solutions business

8068%
against 2014
Winning the contract of IVAS to the Tax
Department of Bangladesh which was worth
USD
33.6
million
Winning and completing
developing markets
big
projects
in
System integration and IT services segments
In 2015, succeeding against five other international
bidders, FPT has won the contract of “Provision,
deployment and maintenance of Integrated VAT
Administration System (IVAS)” to the Tax Department
of Bangladesh which was worth USD33.6 million. In
Cambodia, FPT has put the Finance Management
Information System project (FMIS) for the Royal
Government of Cambodia into operation. In
Myanmar, FPT has successfully rolled out the ERP
system for the leading paint company in Myanmar
United Paint Group (UPG).
FPT will focus more on developing solutions, which
are more software and service-related, with higher
added value, replacing the traditional system
integration projects, which involve more of hardware.
The performance in 2015 also reflected this direction.
Financial results of the System integration segment
has decreased and Software solutions and IT services
segments increased (accordingly). Specifically, System
integration revenue was VND2,530 billion, down 6%
year-over-year, and profit before tax was VND96 billion,
down 30% versus 2014. The IT services segment recorded
revenue of VND873 billion, up 12%, and profit before tax
of VND90 billion, up 6% versus 2014.
Actively involving in solving social problems with
the IT leasing model
Important highlights in 2015
Putting into use e-government systems nationwide
On the last day of 2014, the Prime Minister had
signed the Decision No. 80/2014/QD-TTg governing
trial activities that relate to the IT leasing model at
organizations that use the State-budget. The decision
was effective from February 15, 2015. FPT has become
the pioneer enterprise that realized the policy by
implementing various projects in 2015, including:
99 The project to deploy the online ticket booking and
selling platform for the Vietnam National Railways;
99 The pilot project of deploying the traffic violation
surveillance and monitoring system on the Noi
Bai-Lao Cai highway;
99 The project of deploying the ‘Online health
insurance claiming system’ for Hai Phong.
In 2015, FPT has completed three important
e-government projects for provinces including Quang
Ninh, Binh Duong and Tay Ninh. Currently, the application
of IT in public administration in Vietnam is still low as
compared to regional countries, paving way for further
investment in the future.
Completing major ERP projects
In 2015, various ERP projects have been handed over to
customers such as SAP ERP system for Minh Phu Seafood
Corp; SAP ERP and SAP CRM systems in the cloud for
FECON; SAP ERP system for Vingroup; SAP ERP for Ca
Mau Fertilizer Company. Beside investing in developing
core solutions (in the Software solutions segment), the IT
services will also be a focus of FPT going forward.
Concurrently, the Corporation has proposed to build
the Integrated Information System for the National
Traffic Safety Committee, in an attempt to open up
opportunities to deploy systems for various sectors
such as healthcare, social insurance, to name a few.
For the domestic market, the Software solutions
business and IT services segment will be of FPT’s
focus going forward thanks to the ability to make
differences as compared to other industry players.
47
(continued)
Telecom sector
Revenue
Profit before tax
7%
16%
5,484
1,044
+16%
+12%
BILLION
BILLION
93%
84%
Digital Content
375
-56%
Digital Content
167
+63%
Telecom services
5,109
+32%
Telecom services
878
+5%
Telecom services segment
The Telecom services segment has closed the year 2015 with revenue of VND5,109 billion, up 32% yearover-year, and profit before tax of VND878 billion, up 5%. The first phase of the fiber optic swap project
has been completed. The pay-TV services, though has just been launched since the late 2014, has delivered
strong growth.
Business performance
Ending 2015, revenue of the Telecom services segment increased by 32% year-over-year, fulfilling 107% of the full year
guidance, in which, internet broadband services accounted for 71%, increasing by 31% year-over-year. Besides, other
services including leased line, data centers, voice, and especially pay-TV have delivered good growth with revenue was
totally VND1,459 billion, up 33% year-over-year. The pay-TV service has surpassed initial customer acquisition target,
growing strongly.
Earnings before interest, tax, depreciation and amortization (EBITDA) of the Telecom services segment, excluding costs
relating to the fiber optic swap project, was VND1,934 billion, up 35.4% year-over-year. Profit before tax was VND878
billion, up 5% year-over-year, fulfilling 104% of the full year guidance. A lower profit before tax growth rate as compared
to revenue growth was caused by (1) costs relating to the fibre optic swap project being conducted in Hanoi, HCMC, and
the next major cities; and (2) good growth in terms of customer acquisition, in which the proportion of implementing
fiber optic cables for new customers increased strongly in 2015, in which customer acquisition costs are mostly booked
into expenses during the period, which was contrarily, mostly capitalized with copper cable technology.
Revenue
of the Telecom services segment

32%
versus 2014
48
ANNUAL REPORT 2015
www.fpt.com.vn
Profit before tax
of the Telecom services segment

5%
versus 2014
Highlights in 2015
The segment has completed the fiber optic swap project in Hanoi and HCMC, which helped improve bandwidth and
quality of service.
In July 2015, FPT has become the first foreign enterprise to having obtained the Network Facility Service (Individual)
license by Myanmar’s Ministry of Communications and Information Technology.
The pay-TV service, which was launched in the late 2014, has completed the upgrade of version 2.3 with modern
useful and convenient features such as: creating personal channel list; picture in picture (PIP); monitoring view time
and channels viewed; electronic program guide (EPG). Competitive advantages in terms of technology will be further
advanced, in order to create more useful features for users.
Digital content segment
Consolidating the No. 1 online Vietnamese newspapers with 13.5 billion of page views in 2015; having
completed the full year targets with revenue reached VND375 billion, up 15.4% year-over-year, and
VND167 billion profit before tax, up 9.8% year-over-year.
FPT has stopped the online gaming business and related services (such as telecom top-up card distribution, payment
gateway service, etc.) since late 2014, therefore revenue and profit before tax of the Digital content segment in 2015
included Online advertising business only.
Excluding the revenue of VND528 billion and loss of VND50 billion of online gaming business and related services
in 2014, revenue and profit before tax growth in 2015 was 15.4% and 9.8% year-over-year, respectively. In contrary,
including such revenue and loss in 2014 to calculate growth in 2015, revenue of the segment in 2015 decreased by
56%, and profit before tax increased by 63% on a year-over-year basis.
Technology product Distribution and Retail sector
31%
Revenue
Profit before tax
25,213
25%
40%
43%
728
BILLION
BILLION
+11%
+24%
29%
32%
Retail
7,842+50%
Retail
180+335%
IT Product Distribution
7,417
+2%
IT Product Distribution
237
+21%
Mobile Distribution
9,954
-3%
Mobile Distribution 311
-11%
49
(continued)
Technology product Distribution segment
Revenue was VND17,371 billion, slightly decreased by 0.8% year-over-year, and profit before tax was
VND548 billion, which equals to profit before tax in 2014. Return on equity was consistently high at 46%.
Business performance in 2015
The mobile phone market has continued to witness the consumer’s migration from feature phones to smartphones.
However, as Apple re-divided the market, revenue from mobile distribution has actually been lower than
initial guidance.
The hardware consumer market in 2015 saw mild recovery, notably with the return to positive growth, which helped
the Corporation’s laptop product line increase by 8.7% year-over-year, and desktop increase by 10.9% year-over-year.
Meanwhile, tablets which saw strong growth in prior years, have declined 14.7% in terms of value in 2015. This was
because in 2015, the laptop market was introduced with ultra portable models, which competed in terms of screen size
with tablets, and laptops that have a detachable keyboard, which competed directly with tablets. Beside the swapping
role in terms of growth between laptop and tablets, hard disc drive (HDD) products have faced strong competition. As
a result, revenue from distribution of IT products increased by only 1.7% year-over-year.
Profit before tax margin in 2015 of the Distribution business was 3.2%, which was 0.1% higher than which in 2014.
Return on equity was consistently high at 46%.
New steps in 2016
Amid such changes on the mobile handset market, changes should be conducted to maintain growth. In 2016, beside
existing activities, FPT will start to distribute to e-commerce channels, and concurrently invest in a professional
warranty service chain. These are under-penetrated niche markets, which are expected to have a lot of potential.
According to Vietnam E-commerce and Information Technology agency (VECITA)’s 2014 Vietnam E-commerce report,
online sales only accounted for 2.12% total retail sales nationwide. Meanwhile, in some developed markets including
the US, Korea, Australia, online sales accounted for 6.1%, 12.8% and 6.6% of total retail sales of the respective countries.
Besides, the smartphone market has been growing strongly in Vietnam for a number of years, which has incurred
demand for warranty services for warranty-expired phones, or demand for phone insurance started to get high. These
will be opportunities for FPT’s Distribution segment in 2016.
Technology product
Distribution segment
VND
17,371
billion
50
ANNUAL REPORT 2015
www.fpt.com.vn
Technology product
VND
548
billion
Technology product
46%
Technology product Retail segment
The Retail segment has had a successful year with the number of opened stores has surpassed the initial
target, exceeding both revenue and profit targets, in which profit before tax increased by more than four
times as compared to 2014.
Achievements in 2015
Ending 2015, FPT’s Retail segment has opened another 89 shops, which was double the initial shop-opening plan,
ending having 252 shops that covered all 63 cities and provinces nationwide. The Retail segment has recorded revenue
in 2015 of VND7,842 billion, up 50% year-over-year, and profit before tax of VND180 billion, up 335% versus 2014.
Revenue from online sales has also been growing strongly, increasing by 75.8% year-over-year, accounting for 7.4% of
total Retail revenue.
Apart from the continuous expansion, the Retail segment has constantly improved customer service quality by
implementing a series of customer care, promotion, and new product experiencing campaigns which are full of
creative ideas such as paying water, electricity and petrol bills for customers who bought at FPT’s shops, or computer
interactions through gestures and facial emotions, to name a few.
As a result, after four years of changing strategy and continuously scaling up, FPT has now owned the second biggest
IT product and mobile phone retail chain in the market, having a certain position in the customers’ mind.
Total number of shops
252
nationwide

335%
Versus 2014

50%
Versus 2014
The Education segment and Others
The Education segment
Pioneering in highly skilled human resource training and innovating training method
By the end of 2015, FPT’s Education segment has had 17,900 students currently studying, in which the number of newly
enrolled students across the segment was 7,853 students, up 15.4% year-over-year, in which the University level had its
newly enrolled students increased strongly by 32.6% year-over-year.
The Education segment has continuously innovated to improve education quality. In the recent reassessment exam of
QS, FPT University has become the only Vietnamese university that had five-star, which is the highest ranking, for four
criterion including Teaching, Employability, Facilities and Social responsibilities. The university management board is
determined in viewing that teaching should tie to the need of enterprises and demand from the high skilled human
resource market.
In order to scale up and innovate the training methods, the Education segment has introduced FUNiX – the first online
university in Vietnam, and opened four more majors at FPT Polytechnic College under the Tourism – Hospitality –
Catering category. More branches are also expected to be opened in new provinces in 2016.
51
THE BOD’S REVIEW ON CORPORATE ACTIVITIES
AND THE BOM’S PERFORMANCE
Business performance review
In 2015, FPT fulfilled its commitments in revenue and profit gained which
were earlier approved at the 2015 Annual General Shareholders Meeting
(AGM). Specifically, consolidated revenue for the year 2015 was VND40,003
billion, equal to 101% of the plan. Profit before tax were VND2,851 billion,
completing 100% of the plan.
The result underscores the great efforts of all subsidiaries in a difficult
business context in which there were many adverse movements, including:
the Distribution segment being affected by partners’ changes in distribution
policies; the Telecom services segment being under competitive pressure
and the domestic information technology market has not yet recovered as
expected.
Globalization direction continued to show positive results, mirrored by
a 40.9% increase in revenue from overseas markets in 2015. With the
expansion of business activities in emerging markets, impressive milestones
were reached, including the signing of a USD33.6 million contract to
implement the VAT system for the Government of Bangladesh, obtaining
the telecommunications license in Myanmar and putting an ERP project
into operation for the United Paints Group, a Myanmar-based leading paint
corporation, to name a few.
Consolidated revenue
VND
40,003
billion
Consolidated profit before tax
2,851
VND
billion
Implementation of strategic directions
Becoming a global corporation
In 2015, globalization direction continued to achieve good results and
most of the main targets of the strategic direction for the 2015–2017
period were reached. Details were as follows:
• Revenue for globalization grew by 40.9% YoY.
• Momentum was created in developing markets. Especially, in
Myanmar and Bangladesh, FPT has opened new development directions
in Telecommunications and IT solution areas in the following years.
• Significant contributions were made in the technology
ecosystems of the technology corporations such as Amazon Web
Services (AWS) and Microsoft,… being on par with key players from
Japan and India like Hitachi, Fujitsu, NEC, Accenture, Tata, and Cognizant.
• The number of foreign employees was 1,135, accounting for 4.2% of
the total number of employees.
• The “10,000 Bridge Software Engineer” program: In 2015, nearly
1,000 participants of the program were trained in Japan and Vietnam.
52
ANNUAL REPORT 2015
www.fpt.com.vn
Revenue for globalization

40.9%
Versus 2014
Foreign employees
4.2%
of the total number of employees
Becoming the Number 1 company for S.M.A.C
Wishing to pioneer the SMART revolution by applying S.M.A.C in business
and management activities, FPT focused on investing in and applying new
technologies and applications in the solutions/services provided to customers
as well as business operations, accelerating revenue growth.
• Enhancing S.M.A.C application in business operation to cut costs and
increase revenue such as FPT University’s enrollment; FPT Retail’s sales;
FPT Telecom’s internet service provision and the operation of FPT Software’s
service delivery system.
• Continuously winning a number of S.M.A.C-based service provision
contracts with big players in the areas of aviation, broadcasting, energy
and automobile in developed countries, particularly in the United States and
Japan.
FPT focused on investing in and
applying new technologies and
applications in the solutions/
services provided to customers.
• Delivering revenue growth of 74% from providing S.M.A.C-based
services and solutions (SMART) to customers globally in 2015.
Signing higher value contracts
In 2015, FPT strived and won several large-scale and long-term contracts to
provide solutions and full-package services.
• A record contract of USD33.6 million was signed to provide a VAT
Management System in Bangladesh. This is by far the largest turnkey
contract in Bangladesh;
Contract was signed with a world’s
leading customer in the field of
broadcasting
USD
25
million
• A USD25 million contract was signed with a world’s leading customer in
the field of broadcasting;
• A contract with a new outsourcing client (in the field of logistics) was
signed, valued at USD4 million.
Sustainable development direction
Along with achieving the objectives of business growth, FPT has made
positive contributions to the overall development of the economy, society and
environment. In 2015, FPT contributed VND6,000 billion to the State budget
and created nearly 5,000 new jobs, and actively implemented various social
responsibility activities, propagated environmental protection awareness.
Contributing to the State budget
VND
6,000
billion
53
AND THE BOM’S PERFORMANCE (continued)
Personnel and Organization changes
Achieving initial positive results in restructuring FPT IS & FPT Education
In 2015, the BOD continued to work closely with the BOM to strictly monitor the activities of FPT IS and FPT Education
after the restructuring. Furthermore, they directly join with the managers of these subsidiaries in deploying key projects
and major programs during the year.
Restructuring activities have improved business results of these two subsidiaries:
• FPT IS reported slight revenue growth after a period of showing no growth, having signed several record contracts
overseas and won many important projects under the IT leasing model for customers in the Government sector and
State-owned enterprises.
• FPT Education: after restructuring, the university has delivered a remarkable growth in enrollment with an increase
of 32.6% compared to 2014, it continued to reach a higher level in QS assessment system with four criteria being
rated 5-star, the highest-rating under QS (one of the prestigious ranking standards for worldwide universities).
Approving the new organizational structure of FPT Software
The BOD has approved a new organizational structure of FPT Software, to accelerate the progression towards the goal
of reaching USD1 billion and 30,000 staff by 2020.
Appointing some senior managers to enhance competitiveness and empowering young generation
• In April 2015: Appointed Mr. Uwe Schlager to serve as Director of Merger and Acquisitions (M&A) to boost M&A
activities of the Corporation - one of the most important directions of FPT’s globalization strategy to quickly heighten
FPT’s position.
• In April 2015: Appointed Mr. Hoang Viet Ha to serve as the Chief Operating Officer (COO) to improve FPT business
efficiency and effectiveness.
• In November 2015: Appointed Mr. Le Hong Viet to serve as The Chief Technology Officer (CTO) to promote
technology development of the Corporation.
THE BOD'S REVIEW ON THE BOM’S PERFORMANCE
In 2015, the BOD has closely monitored the CEO and the BOM in implementing the resolutions of the AGM and the
BOD Meetings.
Monitoring methods
• Supervising the completion of important indicators in the year 2015, which the CEO and the BOM had committed.
• Requiring the CEO and the BOM to report on business performance at the quarterly BOD meetings. Also, Chairman
and some members of the BOD continued to attend the BOM Meetings and directed some important tasks.
• Coordinating with the Supervisory Board to oversee those operations of the Corporation for which they can make
practical comments to help the CEO and the BOM to fulfill the tasks assigned at the AGM and the BOD meetings.
54
ANNUAL REPORT 2015
www.fpt.com.vn
General assessment
• The BOD highly appreciated the efforts and the discipline of the CEO and the BOM at different levels in accomplishing
2015’s targets. Therefore, in the difficult business context, FPT completed 2015 business plan as committed and
returned to the double-digit profit growth trajectory.
• The BOM proposed the appropriate policies to ensure the Corporation’s growth, such as restructuring some
subsidiaries and supplementing senior managers at the headquarters and subsidiaries.
• The BOM adopted use of BSC to increase corporate governance efficiency and provide important corporate
indicators. In addition, thanks to the computerization of this administrative tool, the BOM can always monitor the
implementation of important criteria and provide timely reminds as well as come up with solutions when targets
are not reached periodically.
• During operations, the BOM has always complied with the provisions of law, the Company Charter, the Resolutions
of the AGM, the Resolutions of the BOD, and the Decisions of the Chairman.
THE BOD’S PLANS AND ORIENTATIONS
2016 is predicted to be an even more difficult year due to macroeconomic situation of domestic and foreign markets.
However, there are numerous opportunities for Vietnam enterprises to grow, especially in IT industry for companies like
FPT. Therefore, the BOD has decided the 2016 development directions as following:
Regarding personnel and organization
• Supervising the deployment of the new organizational model at FPT Software.
• Strictly monitoring the implementation of the plan of developing the next generation of the Corporation’s top executives.
Regarding corporate governance
• Further enhancing the corporate governance’s effectiveness in accordance with international standards, focusing on
management and risk control in financial management, accounting and auditing, and corporate risk management.
• Continuing to improve transparency in the corporate operation, enhancing the role of the independent BOD
members.
• Strengthening corporate governance training for members of the BOD, the BOM and the Supervisory Board.
Regarding sustainable development
• Maximizing shareholder benefits and ensuring the sustainable development of the Corporation.
• Further improving competitiveness to enable sustainable growth and contribute to the national development.
55
2016 OUTLOOK AND BUSINESS GUIDANCE
BUSINESS PROSPECTS AND GUIDANCE
Based on market analysis and forecasts and with an aim to maintain and uphold the achievements of 2015, the BOD
has approved the guidance for 2016 as follows:
Profit before tax
Revenue
2015
2016 YoY change
Technology
8,605
9,990
16.1%
927
1,210
30.5%
Telecom
5,484
6,550
19.4%
1,044
1,042
-0.2%
Distribution & Retail
25,213
28,586
13.4%
728
826
13.4%
Education & Others
702
670
-4.6%
151
73
-51.7%
40,003
45,796
14.5%
2,851
3,151
10.5%
Total
2015
2016 YoY change
Technology sector – Changing for growth
The Software outsourcing
improving profit margins together with
remaining high revenue growth of
28
%
The Software outsourcing segment has set a challenging target of
enhancing productivity plus quality of service and improving profit
margins together with remaining high revenue growth of 28% versus
2015. This was specified in the overall guidance of the Technology sector
with profit before tax growth rate is set higher than the revenue growth
rate.
In Software solutions segment, bringing projects to finish in time, or earlier
than expected will be the core element to build trust with customers, as
a prerequisite to expand business in such potential developing markets.
versus 2015
Telecom sector – Investment for growth
The Telecom services segment, after completing the fiber optical lastmile swap for customers in Hanoi and Ho Chi Minh City in 2015, will
implement similar projects in the next major cities in order to bring
the best experience to customers and laying a foundation to provide
Internet Protocol Television (IPTV) pay TV service in these cities.
FPT will implement similar projects in
the next major cities in order to bring
the best experience to customers
56
ANNUAL REPORT 2015
www.fpt.com.vn
In the Digital content segment, the online newspapers VnExpress will
not only strive to serve loyal readers better by further developing the
mobile version, but also reach a much wider audience with the launch
of an new editions, as well as integration of more useful functions to
enhance readers’ experience.
Distribution and Retail sector – Innovation for growth
The Distribution sector will overcome difficulties to grow amid what
have hindered the business segment since the second half of 2015. In
order to take advantage of a well-diversified and prestigious product
portfolio, the segment will start to distribute to online channels and
launch prestigious a smartphone warranty chain nationwide.
FPT will continue the expansion
of the retail chain nationwide
The Retail sector will maintain strong growth in 2015 with ambitious
growth targets and a continued expansion of the retail chain nationwide.
Education segment – Continuing to innovate
the enrollment process and investment in campus
construction
FPT's Education segment will
continue to innovate the student
enrolment process, setting a
student base growth target
In 2015, thanks to an adoption of new methods to enroll students, the
number of enrolled students has increased healthily compared to the
prior year. Upon that premise, in 2016 FPT’s Education segment will
continue to innovate the student enrolment process, setting a student
base growth target. Concurrently, FPT University and its subsidiaries will
continue the construction of campuses in HCMC and Da Nang which
have been started in 2015, and plans to open new branches in other
cities besides existing operations in Hanoi, Da Nang and HCMC.
INVESTMENT PLANS
The fields which are expected to receive the bulk of investment will continue to be Telecom services, Software
outsourcing and Education. In the Telecom services segment, investment will be made in telecom infrastructure, as
well as pay-TV service. Because the Software outsourcing and Education segments involve a large workforce and a
large number of students, investment is made in building software and education campuses in other cities.
The investment plan for 2016 is estimated to be as follows:
Technology
Telecom
2016
945
1,802
Distribution & Retail
127
Education & Others
45
Total capex needed for existing businesses
2,919
57
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Intensive involvement in the global technology value
chain: Becoming the partner of major technology companies
with the leading role in the game gave FPT the chance to
enhance technological capability and most speedily access to
global technology trends.
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OVERALL CORPORATE GOVERNANCE STRUCTURE
The Corporation’s governance structure consists of:
The Annual General Shareholders’ Meeting
(AGM)
The AGM has the highest authority in the Corporation. It
carries out the functions, rights and duties as stipulated in
the Company Charter and relevant laws.
The Board of Directors (BOD)
The BOD is the highest governing body of the Corporation.
It can act on behalf of the Corporation to make decisions
and exercise the Corporation’s rights and duties which are
not under the authority of the AGM in accordance with the
Company Charter and relevant laws.
The CEO and the Board of Management
(BOM)
The CEO is the legal representative of the Corporation.
The BOM consists of the CEO and the Executive Vice
Presidents. The CEO and the BOM are responsible for
directing the daily business activities of the Corporation
which are in compliance with the decisions of the AGM,
the BOD and the Chairman of the board.
The Supervisory Board
The Supervisory Board supervises the BOD and the CEO
in managing and administering the company. It must
account to the AGM for the performance of assigned
duties.
The Personnel and Remuneration Committee
Is a part of the BOD. It directs the building of policy
framework and human resource procedures for the
Corporation and all of its subsidiaries. It supports
the BOD to choose, propose, appoint, dismiss and
evaluate the performance of the members of the
BOM, representatives and other senior managers of
the Corporation and its subsidiaries.
60
ANNUAL REPORT 2015
www.fpt.com.vn
The Development Policy Committee
Is a part of the BOD. It is responsible for making
development proposals to the BOD, building strategies
for the BOD, directing and monitoring issues related to
the development strategies of the Corporation and its
subsidiaries.
The Advisory Board
Is a part of the BOD. It is responsible for giving advice
and providing recommendations to the BOD and the
Chairman on issues related to strategy, long-term
development, sustainability and other key issues of the
Corporation. It helps the Corporation establish, maintain
and develop strategic relations with State agencies at the
central and local level, local and foreign partners, and it
advises and supports the Corporation and its subsidiaries
seeing to it that they uphold and develop its corporate
values and culture.
The Chairman Office
Does secretarial work. As a part of the BOD, it is responsible
for supporting the BOD and the Chairman to perform
their functions and duties.
INFORMATION AND
ACTIVITIES OF THE BOD
BOARD MEMBERS AND STRUCTURE
No. Member
Position
Ownership
of voting
rights
Concurrent posts on the BOD
of other companies
1
Mr. Truong Gia Binh
Chairman
7.13%
• Member of the BOD of FPT Telecom and FPT
Education.
2
Mr. Bui Quang Ngoc
Vice Chairman
3.72%
• Member of the BOD of FPT Telecom and FPT
Education.
3
Mr. Do Cao Bao
Member
1.18%
• Chairman of the BOD of FPT City Da Nang JSC.
4
Mr. Le Song Lai
Non-executive
member
0.00%
• Member of the BOD of Vinamilk, Bao Minh
Insurance Corporation and Vietnam National
Reinsurance Corporation.
5
Mr. Jean-Charles
Bolliol
Non-executive
member
0.00%
• Member of the BOD of Everpia Vietnam JSC
and Tri Tin International JSC.
6
Mr. Tomokazu
Hamaguchi
Independent
member
0.00%
• Member of the BOD of the IHI Corporation, the
JR East Railway Company and Kuraray Co., Ltd.
7
Mr. Dan E Khoo
Independent
member
0.00%
• None
(Note: The number of owned shares is referred to in the list of shareholders as of February 24, 2016)
ACTIVITIES OF THE BOD
Number of BOD meetings
No.
Board member
Position
Participation
Ratio
1
Mr. Truong Gia Binh
Chairman
6/6
100%
2
Mr. Bui Quang Ngoc
Vice Chairman
6/6
100%
3
Mr. Do Cao Bao
Member
6/6
100%
4
Mr. Le Song Lai
Member
6/6
100%
5
Mr. Jean-Charles Belliol
Member
6/6
100%
6
Mr. Tomokazu Hamaguchi
Member
6/6
100%
7
Mr. Dan E Khoo
Member
6/6
100%
61
INFORMATION AND
ACTIVITIES OF THE BOD (continued)
Content and results of the meetings
Session
Session 1
January 28, 2015
62
Main content
Participants
•
•
The BOD: 7/7 members
Observers:
•
99 The Supervisory Board: •
1/3
•
99 The BOM: 4/4
Reported 2014 business result;
Reported 2015 plan and 2015-2017 business plan;
Reported 2016-2017 growth direction;
Reported 2015–2017 strategy;
Reported 2014 Employee Stock Ownership Plan (ESOP)
program;
• Proposed the record date for shareholders attending the
2015 AGM and the 2015 AGM date.
•
•
•
•
Reported the program and proposals for FPT’s AGM 2015;
Reported the BOD report and 2015 BOD budget plan;
Reported 2014 audit financial statements;
Reported the plan to allocate profit 2014 and the dividend
payment plan for 2015.
Session 2
March 19, 2015
Observers:
99 The Supervisory: 1/3
99 The BOM: 2/4
Session 3
March 26 –
April 6, 2015
Gathering written form
• Reported 2014 ESOP program;
• Reported the termination proposal of Ms. Chu Thi Thanh Ha
from FPT’s Executive Vice President position.
Session 4
April 22 – 27, 2015
Gathering written form
• Reported the remaining 2014 dividend payment in cash and
by shares.
Session 5
July 30, 2015
• Reported business result for the first half of 2015 and the
plan for the second half of 2015;
•
Reported proposal to increase charter capital for some
subsidiaries, including FPT Software, FPT Trading and FPT
Observers:
Investment;
99 The Supervisory Board:
• Reported cash dividend payment plan in advance for the
3/3
first phase of 2015;
99 The BOM: 3/4
• Reported the implementation of the BOD resolutions in the
first half of 2015;
• Presented on M&A plan.
Session 6
November 13,
2015
• Reported the business result for the first nine months of 2015
Observers:
and the plan to reach the whole-year target;
99 The Supervisory Board: 2/3 • Reported on the implementation of the BOD resolutions in
the first nine months of 2015 and other activities.
99 The BOM: 1/4
ANNUAL REPORT 2015
www.fpt.com.vn
Resolutions passed by the BOD in 2015
No.
1
Name of
Resolution/
Decision
01.01-2015/
NQ-HĐQT-FPT
Date
Jan 29,
2015
Content
•
•
•
•
•
•
Approved 2014 business result;
Approved 2015 business plan;
Approved 2016-2017 growth direction;
Approved 2015–2017 strategy;
Approved the record date for shareholders attending AGM and the AGM date;
Exercised the 2014 AGM Resolution on issuing shares to employees; Approved
2014 Employee Stock Ownership Plan (ESOP) program.
2
01.03-2015/
NQ-HĐQT-FPT
March 19,
2015
• Approved program and proposals for FPT’s AGM 2015 to be submitted to 2015
AGM for approval;
• Approved the BOD report and 2015 BOD remuneration budget plan to be
submitted to the 2015 AGM for approval;
• Approved 2014 audited financial statements to be submitted to the 2015 AGM
for approval;
• Approved plan to allocate profits from 2014 and the dividend payment plan for
2015 to be submitted to the 2015 AGM for approval.
3
03.04-2015/
NQ-HĐQT-FPT
March 31,
2015
• Approved 2014 ESOP program.
4
04.04-2015/
NQ-HĐQT-FPT
April 6,
2015
• Approved the termination proposal of Ms. Chu Thi Thanh Ha from FPT’s
Executive Vice President position.
5
05.04-2015/
NQ-HĐQT-FPT
April 27,
2015
• Approved 2014’s remaining dividend payments in cash;
• Approved dividend payment by shares from retained earnings.
6
01.07-2015/
NQ-HĐQT-FPT
July 30,
2015
• Approved proposal to increase charter capital for FPT Software, FPT Trading
and FPT Investment;
• Approved cash dividend payment plan in advance for the first phase of 2015.
Activities of non-executive and independent members of the BOD
Mr. Jean-Charles Belliol: He actively participated in all regular meetings of the Corporation, such as the weekly
briefing of the Corporation, strategic conferences, etc. He usually contributes ideas and recommendations for the
operation and strategy of the subsidiaries and the Corporation as a whole. Mr. Jean-Charles Belliol is particularly serious
about monitoring the implementation of the Corporation’s business plan.
Mr. Tomokazu Hamaguchi: He paid working visits to some subsidiaries such as FPT Telecom, FPT IS and FPT Software
to learn more about their activities and provide advices. With his vast experience in NTT Data’s globalization process,
he made several valuable recommendations and proposals to FPT’s leaders concerning the implementation of the
globalization plan. Especially, Mr. Hamaguchi usually contributes ideas and recommendations on M&A - one direction
in FPT’s globalization strategy which it has been pushing into the forefront.
Mr. Dan E Khoo: He usually provides advice to FPT about global technology trends which helps FPT define strategic
directions and develop the information technology services. In addition, with his management experience in global
markets, Mr. Dan E Khoo also makes constructive contributions in the areas of M&A for FPT.
The BOD members owning certificates on corporate governance: Mr. Le Song Lai.
63
INFORMATION AND
ACTIVITIES OF THE BOD (continued)
ACTIVITIES OF COMMITTEES UNDER THE BOD
Committees under the BOD
Personnel and
Remuneration Committee
Development Policy
Committee
Advisory Board
Chairman’s Office
Do Cao Bao
Truong Gia Binh
Truong Gia Binh
Lai Huong Huyen
The Personnel and Remuneration Committee
Implementing the program to organize and develop the leadership team
Organizing, evaluating, alternating and training 16 group-level managers (upper 6th level) and appointing Chief
Operating Officers at subsidiaries.
Continuing to direct subsidiaries to determine levels and organize the leadership team at units; make the organizing
list, implement evaluation, selection and coaching.
Completing the evaluation of subsidiary-level leaders/managers for FPT IS and FPT Education under 13 criteria of the
Corporation.
Implementing the restructuring and enhancing competitiveness following the BOD’s orientation
Restructuring FPT IS towards: rebuilding the whole organization model which is more competitive and suitable with
strategies of the Corporation; reorganize subsidiaries of FPT IS under business domain.
Restructuring FPT Software towards: rebuilding the whole organization model which is more competitive and suitable
with S.M.A.C and FPT’s globalization strategy; reorganize foreign affiliates of FPT Software (Japan, America, APAC and
Europe), strategic business units under business domain, and strategic customers.
Continuing to direct and complete issues and solutions after the Competitiveness enhancement Program for seven
FPT subsidiaries. The committee worked with leaders of the subsidiaries to implement these solutions and form a
specific action plan in order to reform the subsidiaries’ system to bring forth innovation and enhance competitiveness
of the Corporation.
Issuing personnel policies for the Corporation
Issuing and implementing FPT’s remuneration policy for the whole corporation in 2015.
Issuing and amending some policies/regulations: Promotion and dismissal regulations, Regulation on local travel
expenses, Regulation on foreign travel expenses, Regulation on the operation of two globalized companies (FPT
Myanmar and FPT Asia Pacific), Basic salary scale policy.
Directing and supervising the drafting, issuance and application of personnel regulations and policies of subsidiaries in
accordance with FPT regulations.
Drafting the personnel strategy
Directing the development of personnel at different levels for the Corporation under the Balanced Scorecard – BSC
model at each subsidiary with detailed action plans and indicators for each period at each subsidiary.
Directing the drafting of action plans in 2016 in accordance with personnel strategy.
Directing the drafting of job descriptions (MyFPT project) to be implemented at subsidiaries and globalization–related
positions.
Directing the drafting and implementation of the project to develop core staff members
Making a list of the core staff members of FPT and its subsidiaries; directing the training and caring for core staff
members.
Managing and caring for core staff members through training and skills development programs for each group, drafting
specific policies for core staff members.
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Directing the drafting and implementation of the project to improve FPT’s human resources to meet global
standards
Directing the drafting of a full Job Description for globalization–related positions and working standards in a global
environment; preparing human resources for globalization using domestic and foreign resources; branding FPT in
recruitment.
Directing the drafting and supervising the implementation of training plans and programs in terms of foreign
language and special skills to meet global standards (implemented positively by FPT Software and FPT IS); directing
communication and guiding staffs members who work globally in projects such as Global Talk, publishing an online
notebook on globalization providing essential information on the nine nations in which FPT staff members are working.
Working with the FPT Corporate University to implement training programs appropriate for every FPT staff member;
ensuring teaching and studying hour of each employee; putting online training programs such as MOOC into operation.
The Development Policy Committee
Watching for and estimating economic development trends in domestic and foreign markets to propose long and
short-term strategic orientations to the BOD.
Supervising and evaluating the quality of implementation policies of the BOD.
Supporting to develop strategies of FPT and its subsidiaries.
Supervising and reporting on implementation of strategies throughout the whole Corporation.
Supporting Chairman and senior staff members organize trips to develop international relationships, participating in
such events as the World Economic Forum in Davos, the ASOCIO and meetings of large enterprises in Japan and the
US.
The Advisory Board
In 2015, in addition to regular communications by email and phone, the Advisory Board held quarterly meetings in
order to:
Giving advices and recommendations to the BOD and the Chairman on strategy-related issues and long-term
development orientation of the Corporation.
Providing recommendations on critical issues for the Corporation.
The Chairman’s Office
Assisting the Chairman and the BOD to hold periodic meetings, collect opinions on paper; draft and issue documents
of the BOD in accordance with regulations such as Operation regulation, the Company Charter, the Enterprise Law and
other legal regulations.
Coordinating to hold the AGM in April 2015 and the Advisory Board’s meetings during the year.
Providing information to members of the BOD and the Supervisory Board and the Corporation’s shareholders
when requested.
OVERALL EVALUATION OF THE BOD’S PERFORMANCE
In 2015, FPT’s BOD strictly supervised the operation of the BOM to ensure the implementation of strategic goals and
plans.
Development of strategy continues to be promoted in a way that the whole business will be mobilized to achieve
common goals. The strategy building model is implemented at the corporate level to define strategic goals, strategic
actions and actions plans that must be implemented immediately. The BOD Chairman directs and supervises the
dissemination and implementation of strategic building model in every subsidiary to ensure consistency in direction
and performances at all levels.
The Corporation continues to improve transparency in corporate governance. The BOD’s independent members are all
foreigners who have held leadership positions for years and have highly-regarded reputations in the regional information
technology sector. They also have profound experience and an extensive network of contacts which allows them to make
a large contribution to FPT’s global strategy in terms of direction and development of new markets in 2015.
65
REPORT OF THE SUPERVISORY BOARD
THE BOARD MEMBERS AND STRUCTURE
No.
Member
Position
Ownership of voting rights
1
Mr. Nguyen Viet Thang
Head
0.01%
2
Mr. Nguyen Khai Hoan
Member
0.03%
3
Mr. Cao Duy Ha
Member
0.00%
THE SUPERVISORY BOARD’S ACTIVITIES
The FPT Supervisory Board, in the 2012-2017 period, consists of three members elected at the Annual General Shareholder
Meeting (AGM) to perform monitoring activities as regulated in the laws and regulations of the Corporation. The
Supervisory Board has the following tasks: supervise implementation of the Company Charter and resolutions of the
AGM; supervise financial activities; monitor activities of the BOD and the BOM as regulated by law. In 2015, the Supervisory
Board continually monitored and recommended administrative changes to be made in corporate operations and it
strengthened monitoring procedures and ensured the transparency in the Corporation’s financial activities.
Meetings of the Supervisory Board
The Supervisory Board met quarterly to report and assess the performance of the Supervisory Board’s members, as well
as to review and evaluate the BOM’s quarterly financial statements.
In 2015, the Supervisory Board held four meetings with participation of all members. The Supervisory Board regularly
communicated by telephone and email to solve unexpected problems and to clarify specialized issues.
Details and main contents:
Session
Participation
Main content
• Assigned detailed tasks to each member;
Session 1
April 03, 2015
3/3
• Approved the Supervisory Board’s 2015 action plan with details regarding its
members;
• Reviewed and evaluated the Corporation’s first quarter financial statement.
Session 2:
July 14, 2015
3/3
• Reviewed the Corporation’s second quarter financial report and the
implementation of the plan for the first 6 months; Discussed how the
Supervisory Board might contribute for the BOD’s meeting on the second
quarter of the year;
• Reviewed 2014 dividend payments in accordance with the AGM resolution;
• Planned to take part in the internal supervisory group along with the
Compliance Monitoring Department.
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Session
Participation
Main content
• Reviewed and discussed the Corporation’s third quarter financial statement
and the expected situation to fulfill the Corporation's plan in 2015;
Session 3
November 13,
2015
3/3
• Evaluated the safety of the M&A projects which the BOM planned;
• Made a plan to supervise bad debt report, in 2015; Reported effectiveness of
the M&A project after one year of operation.
• Discussed and evaluated the 2015 consolidated financial statement;
• Assessed the 2015 business result which the BOM had prepared for the
fourth quarter BOD meeting;
Session 4
January 26, 2016
3/3
• Evaluated supervision compliance with regulations of members of the BOD,
the BOM and the management positions of the Corporation in 2015;
• Discussed and assigned preparations for reports on 2015’s activities and
2016’s plan of the Supervisory Board.
Working results of the Supervisory Board
Monitoring the implementation of the resolutions of the 2015 AGM
In 2015, despite economic difficulties, FPT completed almost all the goals approved in the resolutions of the 2015 AGM.
•
The Corporation completed forming funds as regulated, ensured the full payment obligation to the State budget.
•
The Corporation paid 2014 dividends of 10% in cash and 15% by stock in accordance with the resolution passed
at the 2015 AGM.
•
2015 Business results: Revenue reached VND40,003 billion, completed 101% of the 2015 plan and rose by
13.9% against 2014. Profit after tax reached VND2,438 billion, completed 102% of the plan and increased by
17.3% against 2014. This is a very positive result despite the fact that the economy of Vietnam and the world
was in turmoil in 2015.
•
Remuneration paid to the BOD and Supervisory Board: In 2015, the Corporation paid the BOD and the Supervisory
Board members in accordance with the regulations and norm that was approved by the 2015 AGM.
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REPORT OF THE SUPERVISORY BOARD
(continued)
Supervising the Corporation’s operations and finance
•
Reviewing the Corporation’s quarterly financial statements and collaborating with the independent auditor to
evaluate the activities and measures required to prevent risk with respect to the Corporation’s financial activities.
•
Conducting a risk assessment of the overdue debts of the Corporation and its subsidiaries based on reports
provided by these subsidiaries’ Accounting Departments. The Supervisory Board provided recommendations on
related governance process to minimize financial risks that have arisen due to the existence of these overdue
debts. It is the second consecutive year the Supervisory Board has done these affairs.
•
Evaluating and monitoring the 2014 dividend payment in cash and by stock as reported above, in accordance with
the resolution passed at the 2015 AGM.
•
Evaluating the effectiveness of the M&A project with RWE IT Slovakia after 18 years of operation. The initial goal of
the project has been basically achieved.
•
Working with the BOD’s Compliance Monitoring Department to evaluate and control some activities of subsidiaries
in accordance with the plan.
Monitoring members of the BOD and the BOM and management staff
In 2015, the BOD’s personnel remained stable with seven members, in which 3/7 members were foreigners. The
Supervisory Board acknowledged the efforts made by the BOD in 2015 in closely following up on the Corporation’s
activities and development strategy with high responsibility.
Monitoring the compliance
In 2015, the Supervisory Board did not uncover any unusual matters which affected or violated regulations of the State
and the Corporation in activities of members of the BOD, BOM, as well as the Corporation’s managers.
Selecting an independent auditor for 2015
The Supervisory Board collaborated with the BOM to evaluate and choose Deloitte Vietnam Company Limited to be
the Corporation’s independent financial auditor for 2015.
SUMMARY OF THE REMUNERATION AND OPERATING EXPENSES OF
In 2015, the Supervisory Board’s members attempted to implement their functions and duties. The total remuneration
provided in advance to each Supervisory Board member was VND585 million out of a total of VND710 million approved
by the 2015 AGM.
THE SUPERVISORY BOARD’S 2016 OPERATING PLAN
Key activities of the Supervisory Board in 2016:
99 Monitoring compliance with the resolutions of the 2015 AGM Meeting; Reviewing evaluation report of the
Independent Auditor and monitoring the implementation of issues raised by the audit.
99 Reviewing and supervising annual financial regulations, rules, operational regulations and policies issued by the
BOD and the BOM; At the same time, ensuring legal compliance and assessing impacts on interests of shareholders
when implementing these regulations.
99 Strengthening cooperation between the Supervisory Board and Compliance Monitoring Board to assess and
timely handle emerging issues; Also, supervising the process after checking/inspection. In 2016, the Supervisory
Board expects to cooperate from three to four delegations with Compliance Monitoring Board in periodical or
thematic monitoring plans during the year.
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TRANSACTIONS, REMUNERATION AND OTHER BENEFITS FOR THE BOD,
THE SUPERVISORY BOARD AND THE CEO
SALARIES, BONUSES, COMPENSATION AND OTHER BENEFITS
Pursuant to the 2015 remuneration package approved by the AGM in 2015, the actual remuneration for the BOD,
the CEO and the Supervisory Board is as follows:
Approved by
the AGM
Compensation
(VND in millions)
Bonus
(% profit after tax)
Salary (VND in millions)
Approved by
the AGM
2015
2015
Approved by
the AGM
2015
The BOD Executive
members
10,760
9,200
0.49%
0.44%
None
None
The BOD
Independent, Nonexecutive members
None
None
None
None
4,920
4,980(*)
The
SupervisoryBoard
members
None
None
None
None
710
585
(*): Compensation for non-executive members of the BOD exceeded due to exchange rate increase.
The detailed salary, bonus and compensation for all BOD members in 2015 are as follow:
Independent,
Nonexecutive
Salary
Bonus
Compensation
x
43%
57%
None
Vice
Chairman,
CEO
x
39%
61%
None
Do Cao Bao
Member
x
47%
53%
None
Le Song Lai
Member
x
VND20,000,000
None
None
100%
Jean-Charles Belliol
Member
x
VND20,000,000
None
None
100%
Tomokazu Hamaguchi Member
x
VND187,117,515
None
None
100%
Dan Khoo
x
VND187,117,515
None
None
100%
Members
Position
Executive
Truong Gia Binh
Chairman
Bui Quang Ngoc
Member
Monthly
compensation
The detailed compensation for members of the Supervisory Board in 2015 is as follows:
Members
Position
Compensation (VND)
Nguyen Viet Thang
Head
252,200,000
Nguyen Khai Hoan
Member
166,400,000
Cao Duy Ha
Member
166,400,000
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TRANSACTIONS, REMUNERATION AND OTHER BENEFITS FOR THE BOD,
THE SUPERVISORY BOARD AND THE CEO (continued)
TRANSACTIONS OF INTERNAL SHAREHOLDERS
No.
Beginning
End number of
shares
Person/Organization Internal shareholder/ number of shares
performing the
Major shareholder or
Number of Rate Number of Rate
transaction
related person
shares
(%)
shares
(%)
Reason for
change
(shares)
1
SCIC Investment One
Member Company
Limited
Le Song Lai
BOD member
318,710
0.09%
18,962 0.005%
Sold
299,748
2
Bao Minh Insurance
Corporation
Le Song Lai
BOD member
0
0%
100,000 0.025%
Bought
100,000
3
Amersham Industries
Limited
Related to major
shareholder Dragon Capital
6,120,987
1.78%
7,651,391
1.93%
Bought
1,530,404
4
Balestrand Limited
Related to major
613,281
0.18%
705,273
0.18%
Bought
91,992
5
Grinling International
Limited
Related to major
697,287
0.20%
801,880
0.20%
Bought
104,593
6
Venner Group Limited
Related to major
708,270
0.21%
814,510
0.21%
Bought
106,240
7
Vietnam Enterprise
Investments Limited
Related to major
5,541,909
1.61%
7,273,195
1.83%
Bought
1,731,286
8
Wareham Group
Limited
Related to major
5,568,062
1.62%
6,403,271
1.61%
Bought
835,209
9
Norges Bank
Related to major
4,912,296
1.43%
6,069,140
1.53%
Bought
1,156,844
10
DC Developing Markets
Related to major
Strategies Public
Limited Company
364,463
0.11%
402,402
0.10%
Bought
37,939
11
The CH/SE Asia
Investment Holdings
(Singapore) PTE. LTDC
115,000
0.03%
0
0.00%
Sold
115,000
12
All investors related
to major shareholder
Dragon Capital
7.17% 30,121,062
7.58%
Bought
5,479,507
Related to major
24,641,555
CONTRACTS OR TRANSACTIONS WITH INTERNAL SHAREHOLDERS
In 2015, there were no contracts or transactions that members of the BOD, the Board of Supervisors, and managers or
affiliated persons entered into or executed in the year with the Corporation, subsidiaries and other companies in which
the Corporation hold control rights.
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IMPLEMENTATION OF CORPORATE
GOVERNANCE REGULATIONS
FPT always strives to abide by provisions related to corporate governance in general as well as its own administrative
regulations for the listed public joint stock companies, including:
• Enterprise Law 2014.
• Circular 121/2012/TT-BTC on corporate governance applicable to public companies.
• Circular 155/2015/TT-BTC on information disclosure on stock market.
In addition, to enhance compliance of laws related to corporate governance, FPT defines these regulations in the
following internal documents:
• Company Charter.
• Regulation on Corporate Governance.
In 2015, FPT strived to abide by all essential legal requirements on corporate governance, related to information
disclosure and the composition of the BOD, the Supervisory Board and the AGM.
The Corporation has always been one of the first listed companies to submit its quarterly financial report and annual
Financial Statement (usually 10-15 days prior to the due date). This is highly appreciated by the State Securities
Commission of Vietnam (SSC) and Ho Chi Minh City Stock Exchange (HoSE).
Besides the legislative regulations, FPT also strived to improve the quality of its corporate governance in accordance with
international standards by applying and following closely the criteria of OECD’s Principles of Corporate Governance,
including the following key issues:
01
Ensure all
shareholders' rights
02
05
Emphasize the
responsibilities
of the BOD to
shareholders
04
Disclosure and
transparency of
information
Equitable
treatment of
shareholders
03
Ensure the rights
and roles of the
related parties
In addition, in 2015, FPT conducted the following typical corporate governance practices:
• Approved the business direction and strategies;
• Organized a corporate Strategic Conference and directed the drafting of strategies for all subsidiaries consistent
with the general models and goals of the Corporation;
• Approved the medium and long-term business plan, the annual business plan. The plans were implemented and
controlled by BSC tools throughout the entire corporation during 2015. The presentation of the plan and its approval
were carefully carried out from December 2015 to late January 2016.
71
RISK MANAGEMENT
RISK MANAGEMENT MODEL
Risk management is an inseparable part of FPT’s overall strategy of sustainable development.
Risks are divided into different groups to evaluate their impact on business goals. This allows FPT to work out procedures
to early identify and quantify risk associated with business plans, allowing for the implementation of measures to
monitor and eliminate risks. The identified major risk groups are integrated into the contents of the BSC - the planning
and governance system applied comprehensively at FPT and its subsidiaries.
The risk management mechanism is clearly assigned from the Corporation to subsidiaries to ensure risks are handled by
the relevant leaders and individuals with authority. FPT’s risk management mechanism is decentralized and composes
a single united system, consistent between the Corporation and its subsidiaries. FPT also builds a mechanism of internal
audit, collaborating with the internal audit departments at its subsidiaries to manage the compliance risks in the whole
corporation.
Functional units performing risk management related activities
LEVEL
04
Risk monitoring
The BOD
Monitors risks at the highest corporate level.
Establishes the management strategy and the acceptable level of risk.
Independent warranty
Internal audit/Compliance monitoring
Warrants the thorough compliance of the regulations and
risk management procedures.
LEVEL
02
Risk management functional unit
Builds and develops general risk management frame and
supervises the application of that frame.
Risk management execution
Accepts the risks and manages them on daily basis.
Possess the risk management procedures.
ANNUAL REPORT 2015
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03
Risk inspection and report
All business units/Functional departments
72
LEVEL
LEVEL
01
FPT also established the SMO (Strategic Management Office) in order to monitor and evaluate the KPIs system which
includes indicators of risk management throughout the Corporation to ensure prompt identification and monitoring
of operation related risks. Risk is handled within a closed process of 5 steps: (1) Risk identification; (2) Risk assessment
and analysis; (3) Action plan; (4) Risk treatment; (5) Risk measurement and monitoring.
Risk Management model of FPT Corporation
RISK
IDENTIFICATION
RISK
MEASUREMENT
AND
MONITORING
RISK
MANAGEMENT
RISK
TREATMENT
RISK
ASSESSMENT
AND
ANALYSIS
ACTION PLAN
MAJOR RISKS AND RISK MANAGEMENT MEASURES
Name of risk
Risk description
Risk management measure
Types of strategic risks
Risks of
strategies,
visions
Risk of
competitiveness
decline
Risks of strategies and visions can lead
to inappropriate investment in research;
• Apply BSC to identify the major strategic goals in
failure to develop hi-tech products, new
order to ensure business activities following the
and unique products to better meet
orientation and being regularly monitored and
consumer demands, specific IT services
evaluated to reach the set goals.
which can be implemented on mass
scale.
Risk of falling competitiveness, failing
to capture market demand and trend.
Most of the Corporation’s business
sectors have low entry barriers and they
have faced big difficulties as foreign
or newly emerging competitorsarrive
and seize market share.
• Provide overall services which meet international
quality standards to comprehensively meet
consumer needs.
• Continuously
improve
business
models,
information system, internal process to optimize
operations and expenditures by making use of a
modern corporate governance system.
• Organize
Competitiveness
Enhancement
Conference to gather employees’ opinions on
solutions to innovate the whole corporation in
both forms of online and offline.
73
RISK MANAGEMENT
(continued)
Name of risk
Risk description
Risk management measure
Operating risks
• Develop highly qualified human resources, organizes
and arrange human resources based on the
These risks mean the quantity and
Corporation’s long-term
Risks of human
resources
quality of personnel fail to keep up
• Keep investing in training programs at FPT University.
with development needs as well as
international standards for effective • Investing in internal training programs in order to
improve and make use of high quality and abundant
globalisation
human resources through activities of FPT Corporate
University (FCU).
Risks of
information
security
Information is one of the important and • FPT has aggressively adopted methods to avoid
loss of data and enhance system safety to ensure
valuable assets of an organization or
information security of the Corporation. The
enterprise. Risk related to information,
Corporation annually updates its information security
such as information disclosed, altered,
processes and applies the latest security standardsand
lost or rejected, seriously affects an
assigns responsibility to the Corporation’s employees
organization’s operations, reputation
to avoid information security violations which could
and strategy.
lead to serious consequences.
Financial risks
Risk of exchange
rate
Highly fluctuating exchange rates • Closely monitor those factors that affect exchange
have a huge impact on profits earned
rates.
from business activities. A number of
• Implement appropriate exchange rate insurance
FPT’s business operations, including
measures which include foreign currency futures,
distribution, retail, system integration,
option.
and software outsourcing are
potentially influenced by exchange • Implement flexible sales policies based on
exchange rate fluctuations.
rate fluctuations.
Risks in normal
business
• Create policies to control customer liabilities
such as customer credit ratings and a debt
Risks in normal business activities
management process.
include uncontrolled bad debts and
high inventories.
• Analyze and closely control from the beginning
the quantification of demands to purchase inputs.
Inefficient investment will cause a
Risks arising from
negative impact on capital, cash flow
investment
and business outcomes.
• Any investment should be fully evaluated in terms
of targeted market size, scalability, competitiveness,
financial performance, technological identity and
related risks before being approved by the board
of investment.
Regulatory risk
Regulatory risk
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ANNUAL REPORT 2015
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Business activities that take place • Closely follow the policies and major orientation
of the government, actively research and give
outside of Vietnam require compliance
recommendations to competent authorities to
with laws regulating migrant
promote the role of IT in boosting economic growth
employee activities. In additiones,
and improving people’s living standards.
cultural differences of a multinational
workforce and between company • Research, update and comply with provisions and
and its partners are becoming a big
respect the cultural and business environment of
challenge.
related foreign markets.
COMPLIANCE AND INTERNAL AUDIT
FPT considers compliance and internal audit effective measures to prevent and minimize risk associated with business
activities.
The assessment made in 2015 included compliance with the law, regulations and internal procedures of FPT and
provisions ensuring benefits for employees such as compensation and personnel policies.
Along with the internal audit system, the assessment of compliance risk helps FPT ensure its sustainable development
strategy to be implemented in all business areas of FPT and throughout the entire system.
FPT’s Compliance Monitoring Department Structure
FPT’s CEO
Head of Compliance
Monitoring Department
Monitoring Executive
RISK MANAGEMENT RELATED TO SUSTAINABLE DEVELOPMENT
Over the years, FPT has focused on implementing risk management related to sustainable development from the
perspective of:
• Review and manage the risks affecting the sustainable development of FPT.
• Assess and manage the risks arising from the social environment affecting FPT and risks from FPT’s operation and
business affecting the social environment.
• Build and integrate the Corporation’s vision for sustainable development into its business strategy.
• Build mechanisms that provide non-financial information and financial statements to enhance the transparency of
information provided to stakeholders.
Besides, FPT also implemented the Sustainability Report requested by the State Securities Commission. The report is
the Corporation’s disclosure and commitments to stakeholders on its activities towards sustainable development. In
this report, FPT assessed and disclosed information on its operation efficiency in terms of social and environment, in
addition to information on financial efficiency and capital management. The Sustainability Report is the new way to
build and quantify the corporate value.
75
INVESTOR RELATIONS
STOCK INFORMATION
Statistics on stock transactions and FPT’s stock movements in 2015
No.
Items
Amount
1
Total trading sessions
248 sessions
2
Total order-matching volume
3
Total order-matching value
4
Average order-matching volume per session
5
Highest order-matching volume in 52 weeks (dated June 26, 2015)
6
Lowest order-matching volume in 52 weeks (dated September 9, 2015)
7
Highest price in 52 weeks (dated November 13, 2015)
182,859,290 shares
VND8,867 trillion
737,336 shares
4,210,260 shares
91,140 shares
VND54,500/share
*Share price using closing price, retroactively adjusted for stock dividend of 15%
FPT
VNIndex
03/12/2015
03/11/2015
03/10/2015
03/09/2015
03/08/2015
03/07/2015
03/06/2015
03/05/2015
03/04/2015
03/03/2015
31/01/2015
31/12/2014
Return rate of FPT stock in 2015
in comparison with December 31, 2014
VN30
The 8th consecutive year
10
TOP
ANNUAL
REPORT
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Statistics on transactions by foreign investors in 2015
The foreign ownership rate in FPT always reached the legal ceiling of 49% in 2015, the number of foreign transactions
was 202 with total sales volume of 642,970 shares and a total amount purchased of 524,250 shares. The volume of
shares that foreign investors were allowed to buy as December 31, 2015 was 3.
Dividend payment
According to a rating provided by Vietstock, FPT ranked among Vietnam’s top 20 cash dividend payers in 2015.
Cash dividend
2011
432
Cash dividend in 2015
2012
548
VND
2013
810
2014
676
2015
779
779
billion
Note: Cash dividends are made at the rate approved by the AGM for respective year. Therefore, it is not the same
as “paid dividend for shareholders” in the Cash flow statement, because this number includes in advance dividend
payment of current year and dividend payment of the previous year (if any).
In 2015, FPT dividend payments were as follows:
• Paid 2014’s remaining cash dividend to shareholders at the rate of 10% of par value on June 12, 2015;
• Paid 2014’s stock dividend to shareholders at the rate of 15% on June 1, 2015. New shares were transacted officially
on July 21, 2015;
• Paid in advance cash dividend of 2015 to shareholders at the rate of 10% of par value on September 9, 2015.
Additional share issuance
In 2015, FPT issued additionally 1,719,317 shares to employees with contributions in 2014. These shares are restricted to
transfer for 3 years from the date of issue. The date of transaction is expected to be April 23, 2018.
The Corporation’s charter capital increased in two phases in 2015, in which, the charter capital rose to
VND3,456,959,170,000 in the first phase because the Corporation had paid ESOP shares; and to VND3,975,316,400,000
in the second phase because the Corporation had paid stock dividend to shareholders in 2014 in accordance with the
Resolution of the 2015 AGM.
Transaction of treasury shares
In 2015, the Corporation did not make any purchase of share under the scheme of repurchase preferential shares from
staff leaving the Corporation, therefore the treasury shares remained unchanged compared to the beginning of the
year with 82,376 shares.
77
INVESTOR RELATIONS
(continued)
SHAREHOLDERS’ STATISTICS
(Abstracted from list of shareholders as of February 24, 2016)
Ownership by type of shares
Type of shares
Number of share
Common shares
397,449,264
99.98%
10,000
1:1
82,376
0.02%
10,000
1:0
397,531,640
100.00%
Preferential staff shares
Total
Percentage (%) Par value (VND)
Voting right
Ownership by number of shares owned
Number of
shareholders
Percentage
(%)
Number of
shares
Percentage
(%)
11,629
66.88%
2,101,599
0.53%
1,000-10,000
4,556
26.20%
14,360,317
3.61%
10,001-1,000,000
1,151
6.62%
107,582,240
27.07%
52
0.30%
273,405,108
68.79%
17,388
100.00%
397,449,264
100.00%
Number of shares
1-999
More than 1,000,001
Total
Ownership by shareholding groups
Type
State (SCIC)
Internal shareholders
- The BOD, the BOM, the
Supervisory Board and
Chief Accountant
- Staff
External shareholders
(individual investors)
External shareholders
(institutional investors)
Total
Number of
shareholders
Percentage
(%)
Number of
shares
Percentage
(%)
1
0.01%
23,919,712
6.02%
2,003
11.52%
92,016,343
23.15%
9
0.05%
50,108,603
12.61%
1,994
11.47%
41,907,740
10.54%
15,087
86.77%
61,922,571
15.58%
297
1.71%
219,590,638
55.25%
17,388
100.00%
397,449,264
100.00%
Number of
shareholders
Percentage
(%)
Number of
shares
Percentage
(%)
16,143
92.84%
202,669,448
50.99%
15,990
91.96%
150,359,306
37.83%
153
0.88%
52,310,142
13.16%
1,245
7.16%
194,779,816
49.01%
1,100
6.33%
3,579,608
0.90%
145
0.83%
191,200,208
48.11%
17,388
100.00%
397,449,264
100.00%
Ownership by geography
Location
Vietnam
- Individual investors
- Institutional investors
Abroad
- Individual investors
- Institutional investors
Total
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Top 10 shareholders
Top 10 shareholders
Shares
Percentage (%)
Truong Gia Binh
28,336,410
7.13%
State Capital Investment Corporation (SCIC)
23,919,712
6.02%
Red River Holdings
22,646,457
5.70%
Bui Quang Ngoc
14,784,035
3.72%
Cashew Investments Pte. Ltd
14,181,548
3.57%
Government of Singapore
9,000,000
2.26%
The Caravel Fund (International) Ltd
8,511,994
2.14%
Vietnam Equity Holding
8,397,256
2.11%
Vietnam Enterprise Investments Limited
8,174,792
2.06%
Amersham Industries Limited
8,080,638
2.03%
ACTIVITIES WITH SHAREHOLDERS AND INVESTORS
As parts of efforts to improve the professionalism of
investor-relations in 2015, FPT’s Department of Investor
Relations (IR) maintained and promoted activities carried
out in previous years. In addition, The IR department has
strived to maintain a two-way communication channel
between the Corporation and investors, in order to
satisfactorily answer questions about strategy and
business performance to help investors make informed
decisions.
These efforts by the IR Department were reflected in
many of FPT’s monthly company share market analysis
reports. In 2015, a total of 12 companies issue analyst
reports on FPT’s stock.
Some outstanding activities of IR in 2015:
• VietCapital Securities Company’s Vietnam Access Day
Workshop held in Ho Chi Minh City in March, 2015;
• Announcing business results on a monthly basis to
the State Securities Commission, Ho Chi Minh City
Stock Exchange and mass media;
• Providing monthly reports to investors;
• Organising quarterly analyst meetings with changes
in the organizational activities;
• Assuring updated and accurate information being
informed via the investor relations section on the
Corporation’s website;
• Fully complying with regulatory requirements on
information disclosure;
• Conducting 69 meetings and talking to 129 offshore
investment funds (excluding foreign investment
funds with offices in Vietnam).
In addition, the Corporation leaders also participated in
some workshops held by investment funds and large
stock companies:
• CLSA Workshop in Thailand in March, 2015;
• Maybank Kim Eng Securities Company’s Invest ASEAN
Workshop held in Ho Chi Minh City in May, 2015;
• Vietnam Corporate Day Workshop held by HoSE and
Daiwa in Singapore in August , 2015.
The Investor Relations Department has set the
following goals for 2016:
• Further promoting activities to provide more accurate
information to investors through quarterly published
business results and monthly newsletter;
• Improving the investor relations section on the
Corporation’s website to help investor’s more easily
access to information;
• Maintaining communication channels with investors
and ensuring accurate and rapid responses.
79
05
CyRadar
SUSTAINABILITY REPORT
Sendo.vn
ANTS
Advertising
service
e.Mobiz
FPT PlayHD
RESERVING 5% PROFIT BEFORE TAX FOR R & D
REVIEWING AND RANKING TECHNOLOGY EXPERTS
Investment to develop technological resources: FPT built
the necessary foundation to promote learning and continuous
innovation to create new values for customers.
Creative
ideas
Citus Cloud
Citus Cobol
10,617
engineers,
technology
experts
ESTABLISHING FPT VENTURE
ORGANIZING S.M.A.C CHALLENGE CONTEST
THE CEO'S MESSAGE
"After more than 27 years of development,
we understand that enterprises can develop
sustainably, ensure the highest interests of
stakeholders only when achieving steady
growth in revenue and profit, associated with
the development of economy, society and
environment."
Dear Valued Shareholders and
Stakeholders,
Since the Corporation’s establishment, sustainable
development orientation has been emphasized
through our vision and mission, which is "striving
to become a company guided by technological
innovations, committed to the highest level of
customer satisfaction, contributing to the nation’s
prosperity".
After more than 27 years of development, we
understand that enterprises can develop sustainably,
ensure the highest interests of stakeholders only
when achieving steady growth in revenue and profit,
associated with the development of economy, society
and environment.
Therefore, since 2010, FPT has launched sustainabilityrelated activities in the Corporation’s development
strategy in parallel with other business activities.
The sustainable development strategy of FPT clearly
identified the economic, social and environmental
development orientations including: sustainable
growth in revenue and profit; development of human
resources and community activities; environmental
protection. These are also the important contents
mentioned in the Sustainability report of the
Corporation during the past years.
In 2015, in the context of macroeconomic difficulties,
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ANNUAL REPORT 2015
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FPT returned to double-digit growth trajectory in
both revenue and profit, workforce size increased to
nearly 27,000 people. Besides the growth in revenue
and profit, FPT has made efforts to contribute to the
development of Vietnam’s environment and society,
especially the implementation of education support
programs, creating the best conditions for the
development of the young generation in the future.
In 2015, FPT spent nearly VND33.6 billion on social
responsibility activities.
FPT desires to continually contribute to the overall
development of the society and ensure the highest
benefits for the stakeholders by its own core
technology values and sustainable development of
the Corporation. Simultaneously, we also expect the
social activities to connect 27,000 FPT employees
to work together for the common development
of the community and promote the sustainable
development of the Corporation.
CEO of FPT
Bui Quang Ngoc
OVERVIEW
GOAL OF FORMULATION AND METHOD OF DEVELOPING THE
REPORT CONTENT
Goal of formulation
FPT’s Sustainability Report is included in its Annual Report to help investors, shareholders and other stakeholders to
access information on FPT’s development strategy and business operations in terms of sustainable development. The
report will summarize and assess the sustainability activities of the Corporation.
Method of developing the report content
This report was developed based on the Global Reporting Initiative - GRI version G4 guidelines choosing the ‘Core’
option. Based on the vision, development orientation and business strategy of the Corporation, the report presents
FPT’s material aspects which have significant impacts on economic, social and environmental issues.
GENERAL INFORMATION
Reporting period
The report covered the 2015 fiscal year from January 1, 2015 to December 31, 2015. FPT has been publishing the
Sustainability report annually together with the Annual Report since 2013.
Scope of the report
This report summarizes activities of FPT and its subsidiaries in the field of ICT within Vietnam and countries where FPT
is operating.
Contact
The report was prepared by the FPT Corporation’s Corporate Communications Department. Please contact Ms. Bui
Nguyen Phuong Chau below if you have any comments or questions:
Ms. Bui Nguyen Phuong Chau
Head of FPT Corporation’s Corporate Communications Department,
Address: FPT Building, Duy Tan Street, Dich Vong Hau Ward, Cau Giay District, Hanoi
Tel: +844 7300 7300; Email: chaubnp@fpt.com.vn.
FPT report’s assurance
FPT referenced to and applied local and global standards to disclose information and data in the report. In addition,
some data on the activities of FPT is ensured its accuracy, reliability and integrity by a third party.
The following is some of the data assured by the third party:
• Financial information audited by Deloitte.
• Some important ICT certificates such as the CMMi, ISO, Tier3 were certified by SEI (the Software Engineering Institute
of America), ISO (International Organization for Standardization), and Uptime Institute, respectively.
Corporate information
Operating sectors: FPT operates in some most key IT and telecommunications fields, including software development,
systems integration, IT services, telecommunications, technology product distribution and retail, and high-quality IT
human resource training.
Scale: FPT has nearly 27,000 employees working in 19 countries worldwide, including Vietnam, the US, Japan, Singapore,
Germany, the UK, France, Slovakia, Malaysia, Thailand, the Philippines, Bangladesh, Indonesia, Laos, Cambodia, Myanmar,
Australia, the Netherlands and Kuwait.
83
OVERVIEW (continued)
Member of the prestigious associations:
• Member of the Vietnam Software and IT Services
Association (VINASA);
• Member of the Vietnam Association for Information
Processing (VAIP);
• Member of the SmartTV Alliance;
• Member of the National Council for Sustainable
Development and Competitiveness Improvement.
IMPACTS OF FPT’S ACTIVITIES
ON SUSTAINABILITY FACTORS
The assessment of impact of FPT’s activities on economic,
social and environmental factors will help FPT define its
role, responsibilities and necessary activities to ensure
its sustainability and contribution to the sustainable
development of the country.
Economic impacts
Contributing to the overall economic development by
maintaining stable revenue and profit growth, being
among top contributors to the State budget.
Contributing to the modernization of administration of
government bodies, and enhancing competitiveness
of enterprises and business sectors by researching,
developing, and providing advanced IT solutions.
Being a pioneer in new technology trends, which helps
enhance the competiveness and position of Vietnamese
IT industry on the global arena.
Social impacts
Creating jobs which offer stable income for
employees: FPT has nearly 27,000 employees working
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ANNUAL REPORT 2015
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in 19 countries. In the recent five years, FPT has recruited
nearly 4,000 employees annually, creating new jobs
across the 63 cities and provinces nationwide, and
offering stable income for thousands of people, which
contributed to the stability of the society.
Training high-skill workforce for the society:
FPT University is currently training 17,900 students of
international standards. Besides, FPT also designed inhouse training curricula for all the employees in order to
have a professional and skilled workforce.
Promoting the application of IT in solving social
problems: FPT has been actively taking part in major
projects in developing smart transportation, smart
healthcare, smart education, etc to offer practical
benefits to people.
Supporting social development: Considering
human as the heart of FPT’s operation, FPT invests
in education, in the youth and considers this as an
investment for the future.
Environmental impacts
IT and telecommunications are environment-friendly
business segments. Therefore, FPT’s environmental
impacts mostly come from water drainage and
energy consumption in operating its office buildings,
shops, and depend on its employees’ awareness in
environmental protection.
Accordingly, FPT ascertains that it is foremost
essential to comply with water drainage and energy
consumption regulations. FPT also cares about
applying green architectures and technological
solutions to minimize the energy consumption in
operating office buildings and shops nationwide.
Besides, FPT also promulgates to raise employee
awareness in environmental protection.
STRATEGIC ORIENTATION FOR THE 2015 – 2018 PERIOD
Sustainable development model
PROFIT
Economic
development and
competitiveness
enhancement
3 FACTORS
for sustainable
development
PEOPLE
Development of human
resources and community
activities
PLANET
Environmental
protection
Sustainable development orientation and strategy
Sustainable development is one of the most important parts in the strategy that organizations and enterprises are
pursuing globally. FPT is aware of the importance of this strategy and strives to combine the implementation of
economic, environmental and social objectives to ensure a balance of interests for all parties involved in current and
future operations.
FPT also ascertains that the Corporation’s sustainable development objectives can only be achieved in accordance
with the accomplishment of economic targets. The business needs to grow in order to offer sustainable benefits to
customers, shareholders, employees and the society.
85
OVERVIEW (continued)
Main goals of FPT’s sustainable development strategy:
Goals
Sustainable
growth in
revenue and
profit
Content of Goals
Solutions
• Continuously expanding geographical coverage and offering
new products/services;
• Sustainable growth in revenue • Continuously and comprehensively improving service and
product quality;
from traditional business
segments.
• Improving marketing and sales activities’ effectiveness;
• Building and developing relationships with strategic partners
and customers.
• Rapidly increasing overseas
revenue;
• Rapidly increasing revenue
from S.M.A.C/Smart services/
IoT;
• Increasing revenue from newly
developed and high-valued
solutions/services.
•
•
•
•
Participating in leading global IT giants’ ecosystems;
Enhancing competitiveness in the global arena;
Advancing R&D capabilities for S.M.A.C/IoT;
Developing human resources in management, business
consulting and technology consistent with the globalization
and S.M.A.C/IoT-enabled strategy;
• Conducting M&A.
• Building the best working environment to enable employees
to expand personal capabilities and encourage long-term
Development of
loyalty and contribution to the Corporation;
• Consistently being featured
human resources
among the most preferred • Working out policies to identify, attract, nurture, reasonably
and community
treat and put talented people into the right work;
employers in the IT sector.
activities
• Maintaining and promoting FPT’s core values of ‘Respect –
Innovation – Team spirit – Objectivity – Exemplarity – Wisdom’.
• Building FPT to become a
learning organization and • Providing offline and online training courses for employees;
upgrading human resources
in accordance with the need • Organizing the recruitment in accordance with the need
for business development and the strategic orientation of
for business development and
globalization and S.M.A.C/IoT.
the strategic orientation of
globalization and S.M.A.C/IoT.
Environmental
protection
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• Developing technologies
for the community in order
to nurture and spread the
seeds of humanity to the
society.
• Regularly organizing technological contest for students;
• Supporting educational programs through technology
application;
• Granting scholarships to technologically talented young
people;
• Building a humanitarian and social responsible culture,
encouraging the participation of FPT’s employees in
social activities.
• Complying
with
environmental protection
regulations;
• Raising awareness of
and energy conservation;
• Greening the business and
lifestyle.
• Fully complying with environmental protection regulations;
• Using energy and natural resources rationally, increasing
the use of recycled products and green equipment;
• Promoting technology application to minimize the use of
natural resources;
• Propagating the awareness of environmental protection
inside and outside the Corporation.
Spending
VND33.6
billion
on community
activities
Contributing
FPT's
VND6,000 billion contributions
the State budget
to the
community
in 2015
Creating nearly
5,000
jobs
Benefiting
more than
20 million
people
87
STAKEHOLDER ENGAGEMENT
FPT defines stakeholders as those who influence or are influenced to some extent by the business activities
of the Corporation, including customers; shareholders and investors; employees; partners and suppliers;
the community; the Vietnamese Government, ministries and authorities and the press. Feedbacks from
stakeholders is an important factor in defining the mindset and FPT’s ways of managing and operating
business activities.
Customers
Employees
Press
Partners and
Suppliers
Community
Vietnamese
Government
Shareholders
and Investors
In 2015, FPT has reinforced relationships with stakeholders by strengthening and proactively meeting, sharing
information through channels such as meetings, seminars, conferences, newsletters, websites, etc.
Objects
88
Interactive channels
Customers
•
•
•
•
•
•
Face to face meetings;
Customer care centers and hotlines for units in-charge;
Social networks such as Facebook and forums;
Websites of FPT and subsidiaries;
Exhibitions, fairs, workshops, etc;
Customer newsletters.
Shareholders and investors
•
•
•
•
Quarterly meetings and on request;
AGM;
Investors’ monthly bulletins;
FPT website.
ANNUAL REPORT 2015
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Objects
Interactive channels
Employees
•
•
•
•
The ‘Chungta.vn’ internal news portal and other publications;
Social networks such as Facebook; Yammer;
Internal training courses;
Internal sports, performances, sum-up, etc. activities.
Suppliers
• Face-to-face meetings;
• Newsletters for partners.
Community
• Organizing programs to seek and incubate talented young people;
• Organizing philanthropic and environmental protection programs;
• Implementing IT application programs to serve the community.
Vietnamese Government,
ministries and authorities
• Participating in IT conferences and workshops held by the Government and
governmental agencies;
• Joining competitiveness enhancement and specialized seminars organized by
ministries and government agencies;
• Participating in organizations and associations.
Press
•
•
•
•
•
Press conferences;
Interviews and periodic press releases;
FPT website;
Social networks such as Facebook, Youtube;
FPT News bulletin.
STAKEHOLDERS ENGAGEMENTS
Customers
FPT makes a significant effort to satisfy customers by attempting to understand their insights and meet their demands
with constantly enhanced dedication and capabilities.
Goals
• Delivering
customers;
FPT’s actions
commitments
with • Clearly and precisely defining customers’ requirements in product
specifications, communication, branding and technology;
• Delivering quality products and services • Defining and managing market information in order to evaluate the
in a timely manner, with a dedicated
Corporation’s strengths, weaknesses and competitive advantages;
pre-sales and after sales support;
• Studying and thoroughly understanding customers, building
• Providing products and services with
and maintaining a customer database, fully communicating with
advanced technology and dedicated,
customers about products/services-related issues;
professional and ethical manner;
• Establishing and applying written codes of conduct in customer
• Improving FPT’s capabilities to provide
liaison and treatment;
products and services to the market
• Evaluating customers’ satisfaction in order to find ways to improve
and potential customers.
their satisfactory;
• Researching and developing new products and technologies.
89
(continued)
Shareholders and Investors
FPT makes a great effort to act in the best and sustainable interest of shareholders.
Goals
FPT’s actions
• Achieving high and sustainable • Focusing on core business areas, paying special attention to high-
investment effectiveness;
• Building trust with shareholders;
tech sectors creating high added values and potentially increasing
shareholders’ value and maintaining sustainable growth;
• Establishing and applying internal control mechanisms and policies to
internal
control
prevent and reduce interal and external risks in all corporate activities;
mechanisms to protect the interests
of shareholders.
• Fully, timely and transparently communicating with and listening to
feedbacks from shareholders.
• Implementing
Employees
FPT attempts to build a strong workforce, meeting the development demands of the Corporation, preserve and
promote the Corporation’s core values, create opportunities for each employees to prove their abilities and succeed,
ensure both material and mental lives for employees.
Goals
FPT’s actions
• Building and developing strong • Searching, selecting and using leaders appropriately with their
capabilities;
leadership at all levels; creating
conditions and opportunities for
• Continuously creating opportunities and challenges, ensuring
leaders to promote their highest
collaborative, equal and creativity-encouraging environment;
capabilities.
• Regularly assessing leaders’ performance and work effficiency. Drafting
and applying reasonable policies to encourage leaders;
• Implementing leadership personel arrangement to ensure balanced
leadership and management at all levels. Developing and continuously
maintaining training programs for the next generation of leadership.
• Building and developing a strong • Creating and implementing human resource development plans in
line with the Corporation’s objectives and development strategies;
workforce to meet the development
recruiting high quality human resources to meet the Corporation’s
demands of the Corporation;
standards;
ensuring both material and mental
lives for employees.
• Drafting and applying reasonable policies to encourage employees;
• Promoting training activities for employees;
• Periodically surveying, collecting employees’ opinions on the
Corporation to provide appropriate actions;
• Applying insurance and welfare policies in accordance with the
corporate union’s regulations.
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Goals
FPT’s actions
• Creating
an
ideal • Ensuring safety and security requirements in working environment as stipulated by
the Ministry of Labour, Invalids and Social Affairs and FPT's own scheme of insurance
work
environment;
for employees (FPT Care);
maintaining
and
promoting
the • Evaluating the satisfaction of employees towards work and personal development
Corporation’s
core
to provide appropriate actions;
values.
• Building and developing the culture and core values of the Corporation;
• Implementing internal communication activities to enhance employees’
understanding of development strategy, culture and values of the Corporation,
maintaining employees’ pride and loyalty to the Corporation.
Partners, suppliers
FPT attempts to establish relationship with partners basing on a deep mutual understanding, maximizing cooperation
and creating a long-term attachment to succeed together and develop sustainably.
Goals
FPT’s actions
• Establishing sustainable • Building and implementing standards on how to work with and behave towards
relationship
with
partners;
partners;
• Selecting and sorting partners basing on basic criteria: technology, market share,
• Deeply understanding
brand and collaboration;
strengths
of
each • Building long-term alliances with partners on the basis of business sectors,
partner to build powerful
geographic conditions or market/customer segments;
alliances for mutual
• Fulfilling commitments with partners;
benefits and success;
• Establishing two-way communications between FPT’s subsidiaries and partners,
• Working with partners
cooperating with partners to solve emerging issues at the fastest;
to expand business
areas and develop new • Regularly evaluating the capabilities of partners in collaborating, providing
products/services and meeting demands.
products and services.
Community
FPT attempts to contribute to the community, which is considered the foundation for the sustainable development of
the Corporation.
Goals
FPT’s actions
to • Fullly complying with legal regulations;
the • Offering scholarships and implementing talent support programs;
• Developing programmes to apply IT in education and social activities in order to
disseminate knowledge and new technologies to the community;
• Improving the corporate
•
Organizing FPT’s Community Day (March 13) so that all FPT staff can make practical
image and building the
contributions to society;
trust of the community
• Establishing the “FPT for the Community” fund to actively and timely support
in the Corporation.
colleagues and people in difficult situations;
• Promoting the Corporation’s volunteer programmes such as establishing libraries,
offering scholarships to poor students, giving gifts to child patients, blood donation,
etc.
• Contributing
and benefiting
community;
91
(continued)
Government, Ministries and Authorities
FPT actively coordinates with enforcement agencies to carry out policies and regulations of the Government and the
State bodies for the sustainable development of the Corporation and the national prosperity.
Goals
FPT’s actions
Accomplishing obligations to the • Fulfilling corporate obligations such as paying taxes, social insurance,
State.
etc.
Following regulations on information • Disclosing information fully and timely as regulated;
disclosure for listed companies.
• Applying the State Securities Commission’s information disclosure
regulations via Information Disclosure System (IDS), participating in
training courses as required.
Strengthening relationships with • Joining IT associations such as the Vietnam Software and IT Service
Association (VINASA), the Safety Information Association, the Vietnam
the Government, ministries and
Association for Information Processing, etc;
authorities.
• Actively participating in and contributing ideas to related documents
as required;
• Actively participating in programs to promote foreign trade, investment
in overseas and domestic markets held by the Government, ministries
and authorities;
• Supporting the development of other enterprises in the IT industry.
Press and Media
FPT provides information on activities of FPT and its subsidiaries timely and transparently to the press and media.
Goals
FPT’s actions
Providing up-to-date information • Actively and regularly providing information to media through FPT
about activities of FPT in particular and
bulletins, press releases, press conferences and articles;
of ICT industry in general.
• Regularly and timely providing answers to inquiries from the press;
• Providing media with analysis and evaluation on development trends
of domestic ICT industry as well as forecast on global trends.
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IDENTIFICATION OF MATERIAL
ASPECTS
PRINCIPLES AND PROCESSES
TO IDENTIFY MATERIAL ASPECTS
Principles
Basing on the context of the domestic and global IT market, as well as stakeholders' feedbacks and concerns, the
material aspects were evaluated and identified accordingly to the relationship between the economic, social and
environmental factors and the Corporation's business activities.
Process
The process of evaluation and identification of material aspects includes:
STEP 1
On the basis of
performance
evaluation
and
development trend
of the industry, FPT
offers the major
aspects
having
significant impact on
operating businesses
of the Corporation
and interests of
stakeholders.
STEP 2
Analyzing
and
determining the
level of interest of
parties involved in
these aspects.
STEP 3
Identifying
material aspects in
relations between
o p e r a t i n g
businesses of the
Corporation and
the impacts of
these activities on
economy, society,
environment.
STEP 4
STEP 5
Evaluating by the
leaders and the
internally relevant
units to ensure
the accuracy and
truthfulness
of
these aspects.
Selecting material
aspects
for
inclusion in the
report.
LIST OF MATERIAL ASPECTS AND ASSESSMENT OF THEIR
IMPACTS ON STAKEHOLDERS
List of material aspects in relation to economic, social and environmental issues
Material aspects
Main content
Ensuring stable economic growth
Orientation and solutions to ensure stable economic
growth
Investing in R&D
R&D orientation and activities
Developing high quality human resources
Human resources general information, orientation and
developing policies
Applying advanced corporate governance procedures
Corporate governance model and activities
Investing in overall development of the society
Orientation and activities related to investing in overall
development of the society
Engaging environmental protection activities
Orientation, activities and innovative ideas related to
93
ASPECTS (continued)
Matrix of material aspects
Ensuring fast and
stable economic
growth
Developing high
quality human
resources
Engaging
environmental
protection
activities
Investing in
R&D
Investing
in overall
development
of the society
Applying advanced
corporate
governance
procedures
ANALYSIS OF MATERIAL ASPECTS
Ensuring stable economic growth
FPT understands that only by reaching economic targets
the Corporation can develop sustainably and ensure the
interests of the stakeholders.
FPT determines to ensure the following material
aspects:
• Continuously seeking and expanding the domestic
and international geographical coverage, creating
the Corporation’s drivers for growth, while improving
customer service quality;
• Continuously searching for suitable business models
that benefit customers and society, and create new
revenue streams for the Corporation;
• Continuously researching, offering new technology
solutions of high added values, and improving the
quality of products/services offered to customers.
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Results achieved in 2015
Revenue and profit before tax returned to doubledigit growth track
In 2015, revenue of the Corporation reached VND40,003
billion, up 13.9% compared to 2014, profit reached
VND2,851 billion, up 15.9% over the same period.
Particularly, revenue from overseas markets grew 40.9%,
equivalent to VND4,851 billion.
Contributions to the development of Vietnam's
economy
• Contributing to the State budget
YoY change
2013
4,043
8.8%
2014
4,913
21.5%
2015
6,000
22.1%
• Ranking 36th in the list of 1,000 largest corporate
income tax payers in Vietnam (V1000) in 2015.
• Becoming key partner of large technology companies
such as Microsoft, Amazon Web Services, etc.
• Contributing to enhance industries’ competitiveness
and solve social issues. Specifically:
• Providing services/solutions to 400 corporations/
large companies in the areas of technology, aviation,
electronics, banking and finance, medical devices, etc.
worldwide.
99 E-Government: The Electronic Government
Information System (FPT.eGov) developed by FPT
has been deployed in 539 governmental agencies
in 22 provinces and cities nationwide.
99 Public finance: FPT served as the general
contractor of the project "IT applications for
managing personal income tax", allowing the
management of 20 million taxpayers, with 7,000
users and 800 deployment points in 63 provinces
and cities.
99 Transportation: FPT cooperated with the
Vietnam National Railways Corporation to develop
the E-ticket system, enabling people to buy train
tickets more conveniently and helping minimize
negative issues in ticket sales. Besides, FPT also
implemented a pilot project to install a traffic
violation surveillance and monitoring system on
the Noi Bai-Lao Cai highway, helping lower the
incidence of traffic law violations.
99 Medical: The Hospital Management System (FPT.
eHospital) has been deployed in 100 hospitals and
clinics across the country, helping reduce time
for registering, treating and other administration
procedures for patients. FPT also put into operation
the first electronic health insurance claim system
(FPT.eClaim) in Hai Phong, connecting information
from 100% health facilitites in communes, districts
and provinces; performing settlement for 700,000
records (from April to August, 2015).
99 Customs: FPT developed and implemented
an electronic customs clearance system (FPT.
eCustoms) which has assisted 34 customs
departments, 300 customs branches and 6,000
import-export enterprises, shortening customs
clearance document handling time to 1-3 seconds.
99 Education: FPT pioneers in providing training
and practices closely related to practical work.
Currently, there are about 17,900 students and
trainees attending training programs at FPT
University, contributing to provide high-quality
human resources for the country’s development.
Contributions to the IT industry
Succeeding in software outsourcing, contributing to put
Vietnam on the global digital map through:
• Being listed on The Global Outsourcing 100 by the
International Association of Outsourcing Professionals
(IAOP) for three consecutive years (2014-2016).
Positively contributing to the development of the
Internet in Vietnam by being one of the first internet
service providers; being member of international
submarine communications cable system; owning large
telecommunications infrastructure with total length of
over 9,200km.
Pioneering in R&D of services based on new technology
trends of S.M.A.C/IoT. FPT is currently the S.M.A.C
development partners for many large corporations
worldwide.
Investing in R&D
Operating in such rapidly developing and changing
industry as ICT, FPT identifies investment in R&D is one
of the most important factors that help the Corporation
catch up with new technology trends to meet customer
demands. Accordingly, FPT’s focus will be towards:
• Pioneering in the digital world
99 Researching and developing smart services and
solutions based on the latest technologies;
99 Creating new business models based on S.M.A.C
and IoT technologies;
99 Developing an ideal environment for boosting
creative technology initiatives.
• Promoting the applications of Big Data expand
operations and business in subsidiaries.
• Enhancing the competency and quality of
technology experts through advancing the
technology seminars; researching and building
professional training programs.
• Developing a community for technology
professionals in FPT and Vietnam through different
channels such as online, offline, sharing knowledge,
new technologies and technological platforms (‘Open
FPT’ project).
95
ASPECTS (continued)
Results and highlights in 2015
Investing in R&D
Since 2012, FPT’s BOD has set aside 5% of annual profit
before tax for R&D. Each subsidiary also sets aside part of
their budget for R&D.
Establishing FPT Ventures
• Successfully incubated and spun-off ANTS, opening
new business line in advertising using Big Data
technology.
Building and developing partnerships with leading
technology firms
FPT Ventures operates as a start up incubator by
providing finance and resources as well as technology
and management skills. Until now FPT Ventures has
received approximately 350 applications and is selecting
the appropriate ones for investment.
• Became strategic Cloud partner of AWS and Microsoft
in Japan.
Ranking corporate level technology officers
• Attended and presented at international seminars
on science and technology such as Gartner, AWS,
re:Invent, etc.
2015 is the third year that FPT implements the ranking for
technology officers. The technology offices are ranked
according to 09 criteria: education (diploma, certificates
in technology); foreign languages; work experience in the
global technology sector; work experience at technology
positions; level of importance for the organization;
impact sales; the degree of influence to other technology
staff; understanding of the IT industry; ability to work with
customers and partners. Up to now, FPT has honored 113
corporate level technology officers.
Experimenting Rogo project
Rogo is an IoT prototype based on S.M.A.C technology.
Rogo is expected to become a controlling hub,
connecting smart devices in the family. In 2016, products
will be launched for trial in Vietnamese market.
Applying and incubating some products/projects
related to new technology trends
• Applied technology related to Big Data for core
products of FPT such as automation of audience
recommendation of VnExpress online news,
personalization of FPT Play.
• Launched advanced threat detection system named
CyRadar, which was listed in top 10 potential startups
in Asia by Echelon (e27.co), a leading entrepreneurship
and technology forum of Asia. CyRadar was also
recognized as a high-quality information security
96
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• Became one of the first partner of GE in executing
Industrial IoT.
Training to enhance capabilities of technology
employees
• Organized a series of 50 technology seminars with
topics related to implementing Cloud, Security, Data
Analytics, IoT, etc projects.
• Implemented Solution Architect training programs,
offered advanced certificates.
Developing high quality human
resources
FPT pays close attention to compensation and
promotion policies, attracting talents and building a
dynamic and creative work environment to enable
them to reach their full potential in terms of career
and personal life. In 2015, FPT recruited nearly 5,000
new staff, resulting in an increase of 21.8% of the total
number of employees, and spent VND71.4 billion on
internal training.
General information of human resources
By the end of December 2015, FPT employed 26,818
people, an increase of 21.8% compared to 2014, while
the total number of technology experts, engineers and
developers reached 10,617 people, an increase of 24.4%
over the same period of 2014.
Number of employees in the last five years and the
growth rate
Unit: employee
Growth rate
2011
12,969
5.4%
2012
14,912
14.9%
2013
17,417
16.8%
2014
22,016
26.3%
2015
26,818
21.8%
Human resource structure by gender in 2015
Total
(employees)
Below 25 years old
Human resource structure by function in 2015
Unit: employees
9.2%
Management 2,468
27.3%
29.4%
10.1%
23.9%
Technology
7,895
Sales
6,421
Technique
2,722
Support
7,312
Human resource structure by gender in 2015
Total
(employees)
% of total
% of total
8,853
33
25-30 years old
11,375
42.4
Female
16,793
62.6
31-40 years old
5,940
22.1
Male
10,025
37.4
41-50 years old
517
2
Above 50 years old
133
0.5
Total
26,818
Human resource structure by geography in 2015
Human resource structure by education in 2015
Total
(employees)
% of total
Post-graduate
1,069
4.0
Undergraduate
16,337
60.9
9,412
35.1
Secondary education
Unit: employees
4.5%
44.9%
37.4%
North
12,056
Central
3,538
South
10,027
Overseas
1,197
13.2%
Policies for employees
FPT’s greatest asset is its human, therefore we have
always had specific policies to recognize and realize the
employees’ efforts and contributions to the Corporation's
sustainable growth.
• Compensation policies: FPT pays close attention to
compensation and promotion policies, taking good
care of its employees to enable them to reach their
full potential in terms of career and personal life.
FPT’s compensation policy is built based on the
following criteria:
99 Equality to the work and value contributed to FPT;
99 Competitiveness by markets;
99 Encouragement to increase work quality and
productivity;
99 Fairness and transparency;.
FPT’s compensation structure consists of 4 components,
which are:
99 Salary: 12 months of base salary;
99 A 13th-month salary paid on FPT’s Anniversary and
on occasion of the New Year;
99 Allowances: travelling, mobile phone top-up,
plurality allowance;
99 Bonus based on employee's performance and
work achievements;
99 Welfare: social insurance, health insurance,
unemployment insurance, etc.
97
ASPECTS (continued)
• Training policies: As technology requires constant
change and innovation, FPT has built up generations
of employees who increasingly learn and strive to help
FPT succeed.
2015's achievements:
99 Spending VND71.4 billion on training programs
and activities with 195,240 trainees.
99 Establishing the FPT Corporate University (FCU)
on the basis of former FPT Leadership Institutes
(FLI), with the intention of making FPT become a
learning organization. In 2015, FCU held more than
220 courses such as MiniMBA, core staff and vertical
training, etc., attracting over 7,000 attendees. Also, it
successfully organized ten "72 hours of experience"
programs for nearly 700 FPT's new members
nationwide.
99 Issuing International Training Regulation in the
Corporation and its subsidiaries. Accordingly, FPT
staff at level 3 or above must participate in an annual
training program provided by FCU or complete at
least one online course on MOOC (Massive Open
Online Course). By the end of 2015, 73% of the
required employees completed at least one MOOC.
Nearly 50% of the staff at level 5 or above provided
lectures, which totalled 12,488 hours.
Criteria
Training budget
Compared
to 2014
VND71.4 billion
52.8%
195,240 times
149.2%
Training hours
1,246,175 hours
466.0%
Training costs per
staff member
VND3.1 million/
person
47.6%
Training times per
staff member
8.5 times/
person
136.2%
Training hours per
staff member
54.3 hours/
person
443.0%
Number of
certificates issued to
FPT staff members
3,000
certificates
50.0%
Participation
98
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ANNUAL REPORT 2015
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Key FPT training programs: New staff training;
technology staff training; professional training; future
workforce training.
• Welfare policies: FPT’s policies are specifically
designed to enable employees to benefit from
productivity and creativity gained through increased
health and fitness:
99 Coordinating with prestigious hospitals and clinics
to provide free annual medical check-up once a
year to all employees;
99 Coordinating with insurance companies to
provide insurance benefits to employees and
their dependents (FPT Care) to reduce economic
concern and provide good quality healthcare
coverage for employees in case of accident, illness
or disease, with the total value of more than VND20
billion;
99 Encouraging employees to improve their health
by taking part in sport activities at sport clubs,
and by building gyms and swimming pools in the
campuses;
99 Annual summer holiday paid by the Corporation.
Attracting and developing talented people
FPT accepts everyone as they are, with their strengths
and weaknesses, and their good and bad points, as well
as provides the best conditions for each member to be
themselves and fulfil their ambitions.
• "Trang FPT”: "Trang FPT" is an annual competition
that has been held since 2003 to seek and develop
new talented people within the Corporation. Many
winners at "Trang FPT" have been appointed to the
senior management positions such as Vice Executive
President of FPT Corporation, CEO of FPT IS, CEO of FPT
Software, etc.
• Talent internship program: implemented since
2003 with the purpose to recruit top students in
economics and technology for potential management
positions;
• Personnel arrangment: aimed at building a team
of young, trained and experienced staff who deeply
understand FPT's business operations and core
values to be ready to assume leadership and senior
management positions in the Corporation and
its subsidiaries.
Creating specific corporate culture
FPT’s commitment in human resource usage
FPT is one of a few Vietnamese companies building and
maintaining specific corporate cultural values which
became its unique advantage to attract talents, as well
as created a linkage among its employees and between
employees and the Corporation.
The goal of human resource development in FPT
FPT culture in general is the summary of codes of conduct
in its business activities as well as in other activities to
support the employees' lives.
Code of conduct and code of ethics in FPT: “Respect Innovation – Team spirit – Objectivity – Exemplarity
– Wisdom”.
Accordingly, every FPT employee needs to have spirits of
“Respect – Innovation – Team spirit”
• RESPECT – The spirit of Respect means “respecting
individuals”, including Frankness, Listening and
Tolerance. In FPT, employees can speak directly to
managers, regardless of positions and relationships.
• INNOVATION – The spirit of Innovation includes
Learning, Innovation and STCo (typical humor of
FPT’s people).
• TEAM SPIRIT – The Team spirit in FPT includes
Concensus, Unity and Sincerity.
FPT leaders must possess three core values:
“Objectivity - Exemplarity - Wisdom”
• OBJECTIVITY – Objectivity is the most important
virtue of leaders which helps gain the trust of
employees and inspire them to work with increased
dedication instead of flattering the leaders.
• EXEMPLARITY – Leaders must be the ones who most
clearly reflect the FPT’s spirits of “Respect – Innovation
– Team spirit”.
• Developing
a workforce with professional
qualifications, skills, and globally working capabability;
• Developing a team of engineers and technology
experts ready to access the latest technology trends
and capable of working with large foreign technology
partners.
FPT's commitment as an employer
• Strictly comlying with the provisions of the Labor Laws
and the terms of the Collective Labor Agreement;
• Ensuring the right of employees to freely participate in
Trade union and create favorable conditions in which
the Trade union can operate as per the Trade Union
Act and the Labor Laws;
• Signing labor contracts with employees as stipulated
by the provisions of the Labor Laws and the guiding
documents of the State and the internal regulations of
the Corporation;
• Arranging for employees to work accordingly to
their qualifications, expertise, capabilities, health, job
position and gender;
• Recruiting in accordance with procedures posted
publicly on the Corporation's website. Accordingly,
candidates do not have to pay for the public
examination and selections are based on personal
capabilities;
• Creating an innovative work environment. FPT focuses
on developing facilities and building a modern naturefriendly work environment. Offices that have been
built in campus model are F-Ville (Hoa Lac Hi-Tech
Park, Hanoi), F-Town (Saigon Hi-Tech Park in District
9, Ho Chi Minh City) and the FPT Complex (Da Nang
Hi-Tech Park).
• WISDOM – Leaders must be visionary and decisive.
Besides, FPT also focused much on deploying cultural
activities, ensuring a rich mental life for employees,
giving them excitement and enthusiasm in their work
through annual events such as FPT Community Day
(March 13); FPT's Anniversary (September 13); FPT Arts
Day (May 19); Towards the Origins Day (March 10 in lunar
calendar); Parents Day (November 19); FPT Village Festival
(December 22 in lunar calendar), etc.
99
ASPECTS (continued)
Applying advanced management procedures toward sustainable development
FPT defines corporate governance as one of the most important elements to ensure efficient growth and sustainable
development. Besides building a strong management system on the basis of compliance with the legal provisions
and the application of advanced management models in the world, FPT also issued a system of internal regulations in
order to create a unified management mechanism.
Management model
Approving and issuing sustainable development policies
Ensuring the implementation of sustainable
development policies
CORPORATE BUSINESS ADMINISTRATION
DEPARTMENTS
Implementing and realising sustainable development
ideas according to the orientation of the BOM
SUBSIDIARIES
Implementing sustainable development programmes
in subsidiaries
100
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Roles, activities
The BOD
The CEO and the
BOM
Persons/units in charge
• Approving and issuing sustainable
development strategies and orientation for
the Corporation.
• Working out specific sustainable
• The BOD
• The CEO and Director of
development goals for each department and
subsidiary;
Corporate Social Responsibility
• Directing the implementation of sustainability
related tasks;
• Supervising the results of the implementation
of the sustainable development policies of
departments and subsidiaries.
Corporate
business
administration
departments
• Implementing sustainability activities at
Internal Control
• Independently and objectively evaluating the
Department and other
corporate business
administration departments
• Advising and supporting the implementation
of sustainable development goals at
subsidiaries.
risk management and corporate governance
system in operating fields;
• Providing periodic and irregular reports when
problems arise in implementing sustainability
activities.
Subsidiaries
• Corporate Communications
corporate level;
• Implementing sustainability activities as
• BSC management team;
• Corporate Quality Assurance
Department;
• Corporate Communications
Department.
• Division in charge of
planned;
• Reporting on the sustainability activities of
sustainable development in
subsidiaries.
subsidiaries to the BOM.
Sustainability-related risk management
Over the years, FPT Corporation has attached special importance to the implementation of sustainability-related risk
management based on:
• Assessing and managing risks to the sustainable development of the corporate system;
• Assessing and managing risks of social environment to FPT and risks of FPT's business activities to the environment;
• Developing and integrating a vision of sustainability into FPT’s business strategy;
• Developing mechanisms to provide non-financial information and financial statements in order to provide greater
transparency to stakeholders.
In addition, FPT Corporation has created Sustainability Report at the request of the Vietnam State Securities Commission.
The Sustainability Report includes FPT’s commitment to carry out activities towards sustainability. In this report, the
Corporation provides evaluation of and information about its performance regarding to the environment and society
along with information on the efficiency of its financial activities and capital governance. The Sustainability Report is
presented as a new way to build and quantify the value of the business.
101
ASPECTS (continued)
Attaching concern for the environment, society and governance (ESG) to the value chain of FPT
Sustainability has always been integrated into FPT’s development strategy and business activities and is
considered in three aspects: economy, society and environment.
Model of inputs, outputs and impacts of corporate operations on stakeholders,
environment and society.
01
SHAREHOLDERS
CUSTOMERS
02
Strategic and
planning
management
03
R&D
management
04
Sales and
marketing
management
05
Products
and services
purchasing
management
06
Products
and services
provision
management
Customer
services
management
SHAREHOLDERS
CUSTOMERS
07
Organizational management
08
Financial management
LEADERSHIP
LEADERSHIP
09
Human resource management
10
IT management
EMPLOYEES
EMPLOYEES
11
Asset management and Governance administration
12
Public relations and communications management
PARTNERS
PARTNERS
13
Cultural management
14
Quality and process management
COMMUNITY
In order to ensure the Corporation's sustainable development, thereby ensuring benefit to shareholders,
customers and employees, FPT focuses on the core business sectors of Information Technology and
Communications, aiming to become the Vietnam’s leading global technology Corporation, especially in
new technology trends.
102
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COMMUNITY
Corporate governance enhancement
FPT leaders believe that continually improving the effectiveness of corporate governance and production management
is the most effective way to ensure customer satisfaction, improve competitiveness and secure sustainable benefit for
the Corporation’s shareholders.
Implementing BSC to build a modern strategic management system. BSC is considered to be one of the 10
most effective administrative tools in the world which has been applied in most major corporations worldwide. FPT has
successfully built a management team for its strategic implementation in all subsidiaries. In 2014, BSC was deployed in
every business unit and functional departments of the whole corporation.
Implementing a new compensation structure based on international standardized human resource
management model to enhance transparency; encourage employees at work; increase motivation for strategic
directions of the Corporation; create more favourable conditions for FPT to expand staff overseas and promote the
globalization strategy.
Besides, FPT has constantly improved its business activities, applied international standard criteria and management
models in order to bring satisfaction to its customers and optimize costs.
FPT was the first IT corporation in Southeast Asia receiving ISO 9001 certificate, which was applied to the whole
corporation. In addition, FPT also won many international standard certificates in its operation sectors.
Operating sectors
Technology (Software
development, System integration,
IT services)
Certificates
• CMMi5: Certificate for software development processes.
• ISO 27001: Standard for information security management system.
• ISO 20000: Standard for IT service management system.
• ISO 50001:2011: International standard for energy management system.
Telecommunications
• Uptime Tier III: International certificate for data center.
• ISO 27001: Standard for information security management system.
Distribution, retail and
manufacturing of technology
devices
Education
• ISO 14001: Standard for environmental management in production/
business activities.
• ISO 17025: General requirements for the competence of testing and
calibration laboratories.
• Rated 3-star by QS, a leading international university rankings.
103
ASPECTS (continued)
Investing in overall social development
As people are the core strength of FPT, we focus on investment in education and young generation, considering
it the investment for future. It is believed that with technology advantages, numerous intellectuals and a creative
work environment, FPT will create common values for the Corporation and the community via its contributions to the
human resources development.
We also desire to develop a team of FPT employees with compassionate hearts and responsibilities to society. The
Corporation also calls for contribution of its employees to its own social activities.
In 2015, FPT and its employees spent VND33.6 billion on social activities, including:
• The Corporation’s budget: nearly VND30 billion
• FPT staff’s contribution: VND3.6 billion
Main activities:
Investing in education and young generation
FPT invested VND30.8 billion in education and young generation, benefiting over 20 million students in Vietnam
through a number of programs as follows:
Some typical programs
• The FPT Centre for Young Talents was established with the purpose of gathering young talents in the country,
providing them with conditions to develop comprehensively and helping them become successful people in
society, contributing to national prosperity.
In 2015, FYT recruited 26 members including 03 international awards winners and 16 national awards winners. After
16 years of operations, FYT gathered nearly 393 talented students, more than 200 of whom are living and working
abroad, and many having become successful, including Dam Quang Minh, Rector of FPT University; Vuong Vu Thang,
CEO of the Vietnam Communications Corporation; Vuong Quang Khai, Vice President of the VinaGame Corporation
and Nguyen Hoa Binh, CEO of PeaceSoft.
• The Nguyen Van Dao Scholarship aims to offer the best study conditions and development opportunities to
talented young students and students from poor families.
In 2015, FPT provided 682 scholarships worth over VND20 billion. From 2010 to present, 1,149 scholarships worth
nearly VND88 billion have been given.
• ViOlympic Internet-based math contest was held to promote the application of IT in teaching and learning,
create a more engaging environment for students to learn math and practice English, enabling students to use the
Internet as a method of learning.
In 2015, the contest attracted 20 million participants (an increase of nearly 2 million compared with 2014) with an
average of 90,000-100,000 new members registering everyday, involving students from thousands of schools in 63
cities and provinces.
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105
Alice & Scratch aims to create a new playground
in programming for students. Besides, the
competition is also designed to popularize
Alice programming language to secondary and
high schools, eliminate the perception that
programming is hard and develop the thinking
that "anyone can learn how to program."
“Inspiring a Dream” program with 153 computers
and 41 bookcases.
S.M.A.C Challenge contests for students; National
Mechanics Olympic, Breaking the Limit; the
Young IT contest; the 24th IT Contest for Students
in Vietnam
Primary to
high school
students
Implementing
programs
applying
technology in
training
Providing books, Primary to
bookcases,
high school
computers, etc. students
Honoring and
encouraging
Pupils/
students who
students
have IT capability
2
3
4
Primary to
high school
students
Students
Offering
scholarships
Total
20,059,915
1,446
15,000
42,514
20,000,000
200
Scholarships for children who were exposed to
Dioxin
Violympic - an internet-based math competition
in Vietnamese and English helps students
improve their knowledge of mathematics and
English, access modern computing and a new
method to apply IT in teaching and learning.
682
73
No. of
beneficiaries/
participants
The Nguyen Van Dao Scholarship
FPT Center for Young Talents (FYT)
Specific programs
1
Targets
Programs
No.
28,812,543,389
849,753,000
380,910,689
702,000,000
6,370,000,000
20,046,679,700
463,200,000
The Corporation’s
budget
Investing in education and young generation
1,991,420,863
1,751,420,863
240,000,000
FPT staff’s
contribution
30,803,964,252
849,753,000
2,132,331,552
702,000,000
6,370,000,000
240,000,000
20,046,679,700
463,200,000
Total cost
(VND)
ASPECTS (continued)
In 2015, more than 20,000 employees donated
one day’s salary to the fund, raising VND4.95
billion. Nearly 6,500 FPT staff members directly
participated in community programs.
Engaging environmental protection
activities
Humanitarian and social activities
Results achieved in 2015:
With its green business orientation, FPT has focused on
environmental protection and resource-saving issues
through specific solutions:
FPT is the first private enterprise in Vietnam to hold FPT’s
Community Day - March 13 for all employees in the
Corporation to take part in social activities. On this day,
FPT encourages all its employees to contribute their one
day’s salary for “FPT for the Community” fund to timely
assist community and colleagues in difficulties.
In 2015, FPT and staff spent nearly VND2.8 billion on
71 community programs such as taking care of the
sick, giving gifts to families and children in difficult
circumstances, helping those who suffered due to natural
calamity; giving 10,000 helmets to local people and
students; organizing 15 blood donation drives collecting
2,718 units of blood.
Some specific programs and achievements:
• FPT Community Day (March 13): On this day,
FPT employees take part in community activities
across the country such as blood donation, tree
planting, scholarship awarding, gifting to people in
difficulties, etc.
FPT Community Day 2015 attracted 4,900 employees
participating in 59 cities and provinces; donating 625
units of blood; giving 2,572 gifts and 50 scholarships;
planting 133 trees.
• FPT for the Community Fund: Since 2013, FPT has
called for each staff to donate one day’s salary to the
“FPT for the Community” fund. The fund has no legal
status, operating on FPT staff’s voluntary contributions.
It shows social responsibility and the spirit “mutual
affection, mutual love” of FPT employees.
In 2015, more than 20,000 employees donated one
day’s salary to the fund, raising VND4.95 billion.
Nearly 6,500 FPT staff members directly participated
in community programs.
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Constructing environment-friendly offices
With the office systems across the country, FPT is always
conscious that green office model not only helps the
Corporation achieve energy usage efficiency and reduce
operating costs, but also enhances environmental
protection awareness among its employees.
Accordingly, during the construction, FPT always carries
out environmental impacts assessment and complies
with environmental protection regulations. Besides, in
the design process, FPT always gives priority to apply
new technologies and environment-friendly materials
as well as utilizes natural energy sources to minimize
environmental impacts and energy consumption.
• FPT Complex (Da Nang) achieved the EDGE
(Excellence in Design for Greater Efficiencies)
standard by the Ministry of Construction and the
World Bank, after reaching minimum savings of 20%
in energy, water, and construction materials.
• The Administrative Building of FPT University
(Hoa Lac Hi-tech Park) won the Future Projects Education category at the 2014 World Architecture
Festival (WAF) and the first prize in terms of the
use of green and energy saving materials at the
Green Architecture Awards 2014 hosted by Vietnam
Architects’ Association.
• FPT’s offices were built on environment-friendly
campus model (office complex integrated with
amusement parks, trees, landscape, etc.), including
F-Ville (Hoa Lac Hi-tech Park, Hanoi); F-Town (Saigon
Hi-tech Park, District 9, Ho Chi Minh City).
Applying technologies to reduce energy consumption
FPT always attachs importance of technology application to reduce energy consumption:
• Implementing Panasonic energy saving solutions at FPT University which resulted in a 341,200kWh electricity use
reduction, saving VND500 million and a 192.2 ton CO2 emission decrease annually.
• Implementing the Green IT project to reduce greenhouse gas emissions and lower electricity consumption by
255,000kWh at FPT’s data centers, saving VND300 million annually.
• FPT’s 240,000 unit per year computer production factory received ISO 14000 certificate on environmental
management in 2004, after two years of establishment.
Raising environmental protection awareness among employees
FPT regularly implements programs to raise and promulgate environmental protection awareness among employees:
• Collaborating with international and domestic organizations to raise awareness of environmental protection and
energy saving for all FPT employees.
• Adjusting the electricity use at office buildings.
• Encouraging the staff to use stairs and restrict elevator usage.
• Establishing a bicycle club and encouraging staff members to cycle to work.
• Supporting and responding to the Earth Hour campaign.
107
REFERENCES TO GRI’S GUIDANCE
General
standard
disclosures
Description
Report content
Page
Strategy and analysis
G4-1
Statement from the most senior decisionmaker of the organization
G4-2
Description of key impacts, risks, and
opportunities
The CEO's message
82
Impact of FPT’s activities on sustainability factors
84
101
Sustainability-related risk management
Reference: FPT’s 2015 Annual Report (Risk management)
Organizational profile
Overview of Sustainability Report
83
Reference: FPT’s 2015 Annual Report (Business sectors)
83
16
Contact Reference: FPT’s 2015 Annual Report (General
information)
83
14
G4-3
Name of the organization
G4-4
The primary brands, products, and services
G4-5
Location of organization’s headquarters
G4-6
Number of countries where the organization Corporate information
operates, and names of countries that the Reference: FPT’s 2015 Annual Report (Geographical
organization has significant operations
coverage)
G4-7
Nature of ownership and legal form
G4-8
Markets served
Reference: FPT’s 2015 Annual Report (Geographical
coverage)
83
22
G4-9
Scale of the reporting organization
Reference: FPT’s 2015 Annual Report (Organizational
structure)
23-25
G4-10
Total workforce
Human resource development
G4-11
Percentage of total employees covered by
FPT’s commitment in human resource usage
collective bargaining agreements
G4-12
Describe the organization's supply chain
G4-13
Significant changes during the reporting
period regarding the organization’s size, There are no significant changes
structure, ownership, or its Supply Chain
G4-14
Explanation of whether and how the Applying advanced management procedures towards
precautionary approach or principle is sustainable development
addressed by the organization
Reference: FPT’s 2015 Annual Report (Risk management)
G4-15
Externally
developed
economic,
environmental, and social charters,
Corporate governance enhancement
principles, or other initiatives to which the
organization subscribes or endorses
103
G4-16
Memberships in associations
84
Contact
Reference: FPT’s 2015 Annual Report (Business sectors,
subsidiaries and associates)
Attaching concern for the environment, society and
governance (ESG) to the value chain of FPT
Member of prestigious organizations and associations
83
22
83
16 & 24
96
99
102
100
Identified Material Aspects and Boundaries
108
G4-17
Operational structure of the organization,
Reference: FPT’s 2015 Annual Report (Organizational
including main divisions, operating
structure)
companies, subsidiaries, and joint venture
G4-18
Process for defining the report content and
the Aspect Boundaries
Explain how the organization has
implemented the Reporting Principles for
defining report content
ANNUAL REPORT 2015
www.fpt.com.vn
Overview of Sustainability Report
23-25
83
General
standard
disclosures
Description
Report content
Page
List all the Material aspects identified in the
Material Aspets Identification
process for defining report content
93
G4-20; G4-21
For each Material Aspect, report the
Aspect Boundary within and outside the Overview of Sustainability Report
organization
83
G4-22
Explanation of the effect of any restatements
of information provided in previous reports, There are no significant changes
and the reasons for such restatements
G4-19
Goal of formulation and method of determining the
content of the report
G4-23
Significant changes from previous reporting
The report’s general information in accordance with GRI4
periods in the Scope and Aspect Boundaries
standards.
83
83 & 108
93
Principles and processes to identify material aspects
Stakeholder Engagement
G4-24
List of stakeholder groups engaged by the
organization
88
G4-25
Basis for identification and selection of
stakeholders with whom to engage
88
G4-26
Organization's approaches to stakeholder
engagement
88
G4-27
Key topics and concerns that have been
raised through stakeholder engagement,
and how the organization has responded
to those key topics and concerns.
88
G4-28
Reporting period
General information about the report
83
G4-29
Date of most recent previous report
83
G4-30
Reporting cycle
83
G4-31
Contact point for questions regarding the
report or its contents
83
G4-32
Report the 'in accordance' option the Goal of formulation and method of determining the
organization has chosen.
content of the report
83
G4-33
Policy and current practice with regard to
The report's assurance
seeking external assurance for the report
83
Report Profile
Governance
G4-34
Governance structure of the organization
towards sustainable development
Reference: FPT’s 2015 Annual Report ( Corporate
Governance)
G4-35;
G4-41
Corporate governance model
towards sustainable development
100
100
Ethics and Integrity
G4-56
Describe the organization’s values,
principles, standards and norms of behavior
Building unique corporate culture
such as codes of conduct and codes of
ethics
99
109
06
TEC
HN
O
ON
I
T
A
NT
E
I
R
O
Y
G
LO
Create
new business
models
based on S.M.A.C and IoT
TE
C
HN
O
LO
GY
O
RIE N
TATION
smart solutions
and services
based on new
technologies
LOGY ORIENTATION
HNO
TEC
N
Research and develop of
Pioneering in the digital world: With the desire to
bring new values to customers and sustainable growth
for the corporation, FPT will pioneer in changing the
corporate governance model in the digital form and
promote researching and development of smart
solutions and services based on new technologies.
Build
an environment
for creative
technology ideas
development
FPT CORPORATION
For the year ended 31 December 2015
TABLE OF CONTENTS
CONTENTS
STATEMENT OF THE BOARD OF MANAGEMENT
INDEPENDENT AUDITORS’ REPORT
CONSOLIDATED BALANCE SHEET
CONSOLIDATED INCOME STATEMENT
112
PAGE(S)
113 - 114
115
116 - 119
120
CONSOLIDATED CASH FLOW STATEMENT
121 - 122
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
123 - 165
ANNUAL REPORT 2015
www.fpt.com.vn
STATEMENT OF THE BOARD OF MANAGEMENT
The Board of Management of FPT Corporation and its subsidiaries (herein collectively called the “Corporation”) presents
this report together with the Corporation’s consolidated financial statements for the year ended 31 December 2015.
THE BOARDS OF DIRECTORS AND MANAGEMENT
The members of the Boards of Directors and Management of the Corporation who held office during the year and to
the date of this report are as follows:
Board of Directors
Mr. Truong Gia Binh
Chairman
Mr. Bui Quang Ngoc
Vice Chairman
Mr. Do Cao Bao
Member
Mr. Le Song Lai
Member
Mr. Jean Charles Belliol
Member
Mr. Tomokazu Hamaguchi
Member
Mr. Dan E Khoo
Member
Board of Management
Mr. Bui Quang Ngoc
Executive President
Mr. Nguyen The Phuong
Mr. Nguyen Khac Thanh
Mr. Duong Dung Trieu
Ms. Chu Thi Thanh Ha
Executive Vice President (resigned on 31 March 2015)
BOARD OF MANAGEMENT’ STATEMENT OF RESPONSIBILITY
The Board of Management of the Corporation is responsible for preparing the consolidated financial statements, which
give a true and fair view of the financial position of the Corporation and of its results and cash flows for the year in
accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating
to financial reporting. In preparing these consolidated 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;
State whether applicable accounting principles have been followed, subject to any material departures disclosed
and explained in the consolidated financial statements;
Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume
that the Corporation will continue in business; and
Design and implement an effective internal control system for the purpose of properly preparing and presenting
the consolidated financial statements so as to minimize errors and frauds.
113
STATEMENT OF THE BOARD OF MANAGEMENT (Continued)
The Board of Management of the Corporation is responsible for ensuring that proper accounting records are kept,
which disclose, with reasonable accuracy at any time, the financial position of the Corporation and that the consolidated
financial statements comply with Vietnamese Accounting Standards, accounting regime for enterprises and legal
regulations relating to financial reporting. The Board of Management is also responsible for safeguarding the assets of
the Corporation and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.
The Board of Management confirms that the Corporation has complied with the above requirements in preparing these
consolidated financial statements.
For and on behalf of the Board of Management,
Nguyen The Phuong
Power of Attorney No. 94.3-2013/QD-FPT-TGD
dated 5 August 2013
03 March 2016
114
ANNUAL REPORT 2015
www.fpt.com.vn
No: 379/VN1A-HN-BC
INDEPENDENT AUDITORS’ REPORT
To: The Shareholders
The Boards of Directors and Management
FPT Corporation
We have audited the accompanying consolidated financial statements of FPT Corporation and its subsidiaries (herein
collectively called as the “Corporation”), prepared on 03 March 2016 as set out from page 116 to page 165, which comprise
the consolidated balance sheet as at 31 December 2015, and the consolidated statement of income and consolidated
statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory
information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in
accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations relating to
financial reporting and for such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated 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
requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks
of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the Corporation’s preparation and fair presentation of the
consolidated 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 Corporation’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial
position of the Corporation as at 31 December 2015, and its financial performance and its cash flows for the year then
ended in accordance with Vietnamese Accounting Standards, accounting regime for enterprises and legal regulations
relating to financial reporting.
Tran Thi Thuy Ngoc
Deputy General Director
Audit Practising Registration Certificate
No. 0031-2013-001-1
For and on behalf of
DELOITTE VIETNAM COMPANY LIMITED
03 March 2016
Hanoi, S.R. Vietnam
Do Hong Duong
Auditor
Audit Practising Registration Certificate
No. 2393-2015-001-1
115
FORM B 01-DN/HN
As at 31 December 2015
Unit: VND
ASSETS
Notes
31/12/2015
31/12/2014
18,959,009,136,105
16,709,157,051,316
3,584,709,151,769
4,336,282,447,769
A.
CURRENT ASSETS
100
I.
Cash and cash equivalents
110
1. Cash
111
1,879,397,318,868
2,072,206,319,316
2. Cash equivalents
112
1,705,311,832,901
2,264,076,128,453
Short-term financial investments
120
2,617,441,917,720
1,428,479,061,776
1. Held-to-maturity investments
123
2,617,441,917,720
1,428,479,061,776
Short-term receivables
130
5,534,209,011,621
4,823,596,166,951
1. Short-term trade receivables
131
4,477,122,078,998
3,919,542,671,301
2. Short-term advances to suppliers
132
346,030,178,124
399,989,196,061
3. Receivables from contracts under percentage of completion method
134
8
516,837,479,455
366,338,086,216
4. Other short-term receivables
136
9
476,421,501,226
380,809,281,784
5. Provision for short-term doubtful debts
137
(282,202,226,182)
(243,083,068,411)
Inventories
140
5,268,099,617,220
4,572,636,184,140
1. Inventories
141
11
5,332,031,654,362
4,652,333,244,983
2. Provision for devaluation of inventories
149
11
(63,932,037,142)
(79,697,060,843)
Other short-term assets
150
1,954,549,437,775
1,548,163,190,680
1. Short-term prepayments
151
829,521,434,436
592,794,479,662
2. Value added tax deductibles
152
1,106,181,985,080
921,625,024,678
3. Taxes and other receivables from the State
budget
153
18,846,018,259
33,743,686,340
II.
III.
IV.
V.
116
Codes
6
7
12
13
ANNUAL REPORT 2015
www.fpt.com.vn
The notes set out on pages 123 to 165 are an integral part of these consolidated financial statements
CONSOLIDATED BALANCE SHEET (Continued)
FORM B 01-DN/HN
Unit: VND
ASSETS
Codes
Notes
31/12/2015
31/12/2014
B.
NON-CURRENT ASSETS
200
7,086,579,408,323
5,949,186,899,417
I.
Long-term receivables
210
348,638,580,505
318,095,904,998
1. Long-term trade receivables
211
242,327,520,000
242,327,520,000
2. Other long-term receivables
216
160,161,888,733
128,140,867,635
3. Provision for long-term doubtful debts
219
(53,850,828,228)
(52,372,482,637)
Fixed assets
220
4,292,253,138,079
3,300,546,513,939
1. Tangible fixed assets
221
3,971,402,119,342
2,998,002,341,729
II.
222
6,937,072,376,415
5,352,532,953,679
- Accumulated depreciation
223
(2,965,670,257,073)
(2,354,530,611,950)
224
1,737,003,927
740,441,475
- Cost
225
2,400,601,505
958,946,192
- Accumulated depreciation
226
(663,597,578)
(218,504,717)
319,114,014,810
301,803,730,735
3. Intangible assets
IV.
V.
14
- Cost
2. Finance lease assets
III.
9
227
15
- Cost
228
610,345,105,736
529,387,560,020
- Accumulated amortisation
229
(291,231,090,926)
(227,583,829,285)
Long-term assets in progress
240
692,575,366,258
537,241,674,698
1. Long-term work in progress
241
13,400,125,582
-
2. Long-term construction in progress
242
679,175,240,676
537,241,674,698
Long-term financial investments
250
727,905,697,262
809,516,549,586
1. Investments in joint-ventures, associates
252
18
271,434,002,318
251,078,173,392
2. Equity investments in other entities
253
7
632,649,372,195
725,588,838,379
3. Provision for impairment of long-term financial investments
254
(176,177,677,251)
(167,150,462,185)
Other long-term assets
260
1,025,206,626,219
983,786,256,196
1. Long-term prepayments
261
12
808,536,902,438
518,808,795,715
2. Deferred tax assets
262
19
216,669,723,781
131,807,015,837
3. Goodwill
269
26
-
333,170,444,644
26,045,588,544,428
22,658,343,950,733
TOTAL ASSET (270 = 100 + 200)
270
16
117
FORM B 01-DN/HN
Unit: VND
RESOURCES
Notes
31/12/2015
31/12/2014
C.
LIABILITIES
300
15,863,302,791,405
13,400,525,192,639
I.
Current liabilities
310
14,967,554,324,100
12,969,956,085,573
1. Short-term trade payables
311
2,815,055,125,562
3,018,857,084,191
2. Short-term advances from customers
312
296,629,535,411
347,339,275,912
3. Taxes and amounts payable to the State
budget
313
318,469,453,775
250,837,100,459
4. Payables to employees
314
694,086,202,995
726,051,812,032
5. Short-term accrued expenses
315
518,769,375,019
345,478,484,975
6. Payables relating to contracts under percentage of completion method
317
12,916,413,403
15,756,096,426
7. Short-term unearned revenue
318
21
1,491,947,971,642
961,651,628,795
8. Other current payables
319
22
302,282,737,618
347,704,447,655
9. Short-term loans and obligations under
finance leases
320
23
8,191,325,008,702
6,722,412,217,259
10. Short-term provisions
321
24
16,952,179,257
24,651,664,341
11. Bonus and welfare funds
322
309,120,320,716
209,216,273,528
Long-term liabilities
330
895,748,467,305
430,569,107,066
1. Long-term advances from customers
332
54,207,388,091
54,437,517,680
2. Long-term unearned revenue
336
21
34,976,753,365
24,528,504,548
3. Other long-term payables
337
22
185,412,671,965
198,449,132,073
4. Long-term loans and obligations under
finance leases
338
25
614,354,593,251
142,418,459,294
5. Deferred tax liabilities
341
-
2,929,410,611
6. Long-term provisions
342
6,604,964,350
7,613,986,577
7. Scientific and technological development
fund
343
192,096,283
192,096,283
II.
118
Codes
13
20
24
ANNUAL REPORT 2015
www.fpt.com.vn
FORM B 01-DN/HN
Unit: VND
RESOURCES
Codes
Notes
31/12/2015
31/12/2014
D.
EQUITY
400
10,182,285,753,023
9,257,818,758,094
I.
Owner’s equity
410
10,179,535,753,023
9,255,068,758,094
1. Owner’s contributed capital
411
3,975,316,400,000
3,439,766,000,000
- Ordinary shares carrying voting rights
411a
3,975,316,400,000
3,439,766,000,000
2. Share premium
412
26
49,465,703,201
49,465,703,201
3. Treasury shares
415
26
(823,760,000)
(823,760,000)
4. Foreign exchange reserve
417
26
(6,549,325,268)
(12,569,673,745)
5. Investment and development fund
418
26
79,036,549,084
79,400,040,851
6. Other reserves
420
26
87,227,790,014
87,203,093,024
7. Retained earnings
421
26
4,394,554,749,025
4,268,153,638,489
- Retained earnings accumulated to the prior year
end
421a
3,051,113,855,690
3,138,836,839,165
- Retained earnings accumulated of the current
year
421b
1,343,440,893,335
1,129,316,799,324
8. Non-controlling interests
429
1,601,307,646,967
1,344,473,716,274
Other resources and funds
430
2,750,000,000
2,750,000,000
1. Non-business expenditure fund
431
2,750,000,000
2,750,000,000
440
26,045,588,544,428
22,658,343,950,733
II.
TOTAL RESOURCES (440=300+400)
Nguyen Tien Hao
Preparer
26
Hoang Huu Chien
Chief Accountant
Nguyen The Phuong
03 March 2016
119
FORM B 02-DN/HN
Unit: VND
2015
2014
(Restated)
27
38,707,143,264,487
32,873,026,689,955
02
27
747,444,508,465
228,370,331,060
3. Net revenue from goods sold and services
rendered (10=01-02)
10
27
37,959,698,756,022
32,644,656,358,895
4. Cost of sales
11
28
30,465,878,878,610
26,456,135,040,231
5. Gross profit from goods sold and services
rendered (20=10-11)
20
7,493,819,877,412
6,188,521,318,664
6. Financial income
21
30
452,546,690,212
367,644,565,708
7. Financial expenses
22
31
620,411,567,508
354,076,323,129
- In which: Interest expense
23
262,502,327,611
166,165,287,204
8. Share of net profit from associates
24
34,474,687,218
40,858,599,445
9. Selling expenses
25
2,226,870,805,958
1,617,818,952,335
10. General and administration expenses
26
2,331,789,496,610
2,236,033,596,342
11. Operating profit (30=20+(21-22)+24-(25+26))
30
2,801,769,384,766
2,389,095,612,011
12. Other income
31
146,796,066,673
166,755,638,459
13. Other expenses
32
97,416,623,718
96,627,048,433
14. Profit from other activities (40=31-32)
40
49,379,442,955
70,128,590,026
15. Accounting profit before tax
50
2,851,148,827,721
2,459,224,202,037
16. Current corporate income tax expense
51
33
497,001,075,715
399,000,144,668
17. Deferred corporate tax (income)
52
33
(83,937,013,159)
(18,900,741,566)
18. Net profit after corporate income tax
(60=50-51-52)
60
2,438,084,765,165
2,079,124,798,935
18.1. Equity holders of the Holding Company
61
1,930,895,920,629
1,632,085,087,193
18.2. Non-controlling interests
62
507,188,844,536
447,039,711,742
19. Basic earnings per share (restated, see more
detail in Note 34)
70
4,386
3,723
20. Diluted earnings per share
71
4,386
3,723
ITEMS
Codes
Notes
1.Gross revenue from goods sold and services
rendered
01
2. Deductions
Nguyen Tien Hao
Preparer
Hoang Huu Chien
Chief Accountant
32
34
Nguyen The Phuong
03 March 2016
120
ANNUAL REPORT 2015
www.fpt.com.vn
FORM B 03-DN/HN
Unit: VND
ITEMS
Codes
2015
2014
01
2,851,148,827,721
2,459,224,202,037
- Depreciation and amortisation of fixed assets
02
732,880,119,304
547,273,646,085
- Provisions
03
94,014,920,103
85,434,608,560
- Foreign exchange (gain)/ loss arising from translating foreign
currency items
04
(3,154,674,532)
(16,872,163,837)
- (Gain) from investing activities
05
(318,812,983,950)
(405,697,530,891)
- Interest expense
06
262,502,327,611
166,165,287,204
08
3,618,578,536,257
2,835,528,049,158
- Changes in receivables
09
(863,521,059,691)
(680,600,489,029)
- Changes in inventories
10
(693,098,534,961)
(1,311,691,368,768)
- Changes in payables (excluding accrued loan interest and
corporate income tax payable)
11
395,158,777,335
1,085,838,052,344
- Changes in prepaid expenses
12
(526,455,061,497)
(107,329,691,370)
- Interest paid
14
(211,922,502,790)
(202,542,537,509)
- Corporate income tax paid
15
(438,294,708,886)
(401,600,073,578)
- Other cash outflows
17
(124,560,415,953)
(66,562,113,848)
20
1,155,885,029,814
1,151,039,827,400
1. Acquisition and construction of fixed assets and other long-term
assets
21
(2,090,200,759,463)
(1,440,556,923,125)
2. Proceeds from sale, disposal of fixed assets and other long-term
assets
22
115,905,779,112
23,157,827,856
3. Cash outflow for lending, buying debt instruments of other entities
23
(1,218,529,160,271)
(38,195,216,179)
4. Cash recovered from investments in other entities
26
65,345,000,000
-
5. Interest earned, dividends and profits received
27
226,569,380,961
189,684,494,595
-
(203,239,205,312)
(2,900,909,759,661)
(1,469,149,022,165)
I. CASH FLOWS FROM OPERATING ACTIVITIES
1. Profit before tax
2. Adjustments for:
3. Operating profit before movements in working capital
Net cash generated by operating activities
II. CASH FLOWS FROM INVESTING ACTIVITIES
6. Payment for aquisition of non-controlling interests
Net cash used in investing activities
30
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CONSOLIDATED CASH FLOW STATEMENT (Continued)
FORM B 03-DN/HN
Unit: VND
ITEMS
Codes
2015
2014
III. CASH FLOWS FROM FINANCING ACTIVITIES
1. Proceeds from share issue and owners’ contributed capital
31
30,953,970,000
16,388,910,000
2. Capital withdrawals, buy-back of issued shares
32
(4,349,500,000)
-
3. Proceeds from borrowings
33
23,921,460,737,848
23,817,428,762,280
4. Repayment of borrowings
34
(21,980,611,812,448)
(21,174,638,669,986)
5. Dividends and profits paid
36
(974,001,961,553)
(755,758,503,775)
Net cash generated by financing activities
40
993,451,433,847
1,903,420,498,519
Net increase/(decrease) in cash (50=20+30+40)
50
(751,573,296,000)
1,585,311,303,754
Cash and cash equivalents at the beginning of the year
60
4,336,282,447,769
2,750,971,144,015
Cash and cash equivalents at the end of the year (70=50+60)
70
3,584,709,151,769
4,336,282,447,769
Nguyen Tien Hao
Preparer
Hoang Huu Chien
Chief Accountant
Nguyen The Phuong
03 March 2016
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
These notes are an integral part of and should be read in conjunction with the accompanying consolidated financial statements
FORM B 09-DN/HN
1.
GENERAL INFORMATION
Structure of ownership
FPT Corporation (the “Company”) was incorporated as a State-owned company in Vietnam and subsequently
equitised in accordance with Decision No. 178/QD-TTg, following which the Company officially operated as a joint
stock company. FPT Corporation was established under Business Registration Certificate No. 0103001041 issued
for the first time by Hanoi Department of Planning and Investment dated 13 May 2002 and its amendments.
According to the amended Business Registration Certificate dated 19 December 2008, the Corporation changed
its name from the Corporation for Financing and Promoting Technology to FPT Corporation.
According to the latest amended Business Registration Certificate dated 26 June 2015, the Corporation’s charter
capital is VND3,975,316,400,000.
Since December 2006, the Corporation’s shares have been listed on Ho Chi Minh City Stock Exchange.
The total number of the Corporation’s employees as at 31 December 2015 was 26,818 (31 December 2014: 22,016).
Operating industry and principal activities
The principal activities of the Corporation are to provide IT and telecommunication products and services. The
main products and services provided are (i) software development including software outsourcing; software
solutions, software services and ERP services; (ii) system integration; (iii) informatics services including system
management, BPO service, Data Center service etc.; (iv) telecommunication services including internet services
and value added services; (v) digital content service including online advertising, AdNetwork etc.; (vi) college,
university and postgraduate training services; (vii) production, distribution and retails of IT and telecommunication
products.
Normal production and business cycle
The Company’s normal production and business cycle is carried out for a time period of 12 months or less except
some system integration projects are carried out for a time period of more than 12 months.
The Company’s structure
As at 31 December 2015, FPT Corporation had 9 subsidiaries, as follows:
• FPT Information System Corporation;
• FPT Trading Company Limited;
• FPT Telecom Joint Stock Company;
• FPT Software Company Limited;
• FPT Education Company Limited;
• FPT Online Service Joint Stock Company;
• FPT Investment Company Limited;
• FPT Digital Retail Joint Stock Company;
• FPT Media Company Limited.
and 2 associates:
• FPT Fund Management Joint Stock Company;
• FPT Securities Joint Stock Company.
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1.
GENERAL INFORMATION (Continued)
Disclosure of information comparability in the financial statements
As stated in Note 3, since 01 January 2015, the Corporation has adopted Circular No. 200/2014/TT-BTC issued by
the Ministry of Finance on 22 December 2014 (“Circular 200”) guiding the accounting regime for enterprises and
Circular No. 202/2014/TT-BTC issued by the Ministry of Finance on 22 December 2014 (“Circular 202”) guiding
the preparation and presentation of consolidated financial statements. Circular 200 supersedes the regulations
for accounting regime promulgated under Decision No. 15/2006/QD-BTC dated 20 March 2006 issued by the
Ministry of Finance and Circular No. 244/2009/TT-BTC dated 31 December 2009 issued by the Ministry of Finance.
Circular 202 supersedes section XIII in Circular No. 161/2007/TT-BTC dated 31 December 2007 of the Ministry
of Finance guiding the preparation and presentation of consolidated financial statements in accordance with
Vietnamese Accounting Standard No. 25 “Consolidated Financial Statements and Accounting for Investments in
Subsidiaries”. However, the adoption of such circulars does not have significant impact on the comparability of
the figures in the Company’s consolidated financial statements.
2.
ACCOUNTING CONVENTION AND FINANCIAL YEAR
Accounting convention
The accompanying consolidated financial statements, expressed in Vietnam Dong (VND), are prepared under
the historical cost convention and in accordance with Vietnamese Accounting Standards, accounting regime for
enterprises and legal regulations relating to financial reporting.
The accompanying consolidated financial statements are not intended to present the financial position, results
of operations and cash flows in accordance with accounting principles and practices generally accepted in
countries and jurisdictions other than Vietnam.
Financial year
The Corporation’s financial year begins on 01 January and ends on 31 December.
3.
ADOPTION OF NEW ACCOUNTING GUIDANCE
On 22 December 2014, the Ministry of Finance issued Circular No. 200/2014/TT-BTC (“Circular 200”) guiding the
accounting regime for enterprises and Circular No. 202/2014/TT-BTC (Circular 202) guiding the preparation and
presentation of consolidated financial statements. These circulars are effective for financial years beginning on
or after 01 January 2015. Circular 200 supersedes the regulations for accounting regime promulgated under
Decision No. 15/2006/QD-BTC dated 20 March 2006 issued by the Ministry of Finance and Circular No. 244/2009/
TT-BTC dated 31 December 2009 issued by the Ministry of Finance. Circular 202 will supersede section XIII in
Circular No. 161/2007/TT-BTC dated 31 December 2007 of the Ministry of Finance guiding the preparation and
presentation of consolidated financial statements in accordance with Vietnamese Accounting Standard No. 25
“Consolidated Financial Statements and Accounting for Investments in Subsidiaries”. The Board of Management
has adopted Circular 200 and Circular 202 in the preparation and presentation of the consolidated financial
statements for the year ended 31 December 2015.
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies, which have been adopted by the Company in the preparation of these
financial statements, are as follows:
Estimates
The preparation of the consolidated financial statements in conformity with Vietnamese Accounting Standards,
accounting regime for enterprises and legal regulations relating to financial reporting requires management
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4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Estimates (Continued)
to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of
contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts
of revenues and expenses during the financial year. Although these accounting estimates are based on the
management’s best knowledge, actual results may differ from those estimates.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and enterprises
controlled by the Company (its subsidiaries) up to 31 December each year. Control is achieved where the
Company has the power to govern the financial and operating policies of an investee enterprise so as to obtain
benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income
statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting
policies used in line with those used by the Company.
Intragroup transactions and balances are eliminated in full on consolidation.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the parent’s
ownership interests in them. Non-controlling interests consist of the amount of those non-controlling interests
at the date of the original business combination and the non-controlling interests’ share of changes in equity
since the date of the combination. Losses in subsidiaries are respectively attributed to the non-controlling
interests even if this results in the non-controlling interests having a deficit balance.
Business combinations
On acquisition, the assets and liabilities and contingent liabilities of a subsidiary are measured at their fair
values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net
assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the
identifiable net assets acquired is credited to consolidated profit and loss in the period of acquisition.
The interest of minority shareholders is initially measured at the minority’s proportion of the net fair value of the
assets, liabilities, and contingent liabilities recognized.
Investments in associates
An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor
an interest in joint venture. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but not control or joint control over those policies.
The results and assets and liabilities of associates are incorporated in these consolidated financial statements
using the equity method of accounting. Interests in associates are carried in the balance sheet at cost as adjusted
by post-acquisition changes in the Company’s share of the net assets of the associate. Losses of an associate in
excess of the Company's interest in that associate (which includes any long-term interests that, in substance,
form part of the Company's net investment in the associate) are not recognized.
Where a group entity transacts with an associate of the Company, unrealised profits and losses are eliminated to
the extent of the Company’s interest in the relevant associate.
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4.
Goodwill
Goodwill represents the excess of the cost of acquisition over the Company’s interest in the net fair value
of the identifiable assets, liabilities and contingent liabilities of a subsidiary at the date of acquisition. After
acquisition date, if the Parent continues making investment in the subsidiary, it should determine the cost of
additional investment and corresponding increase in ownership of the carrying value of the acquired net asset
of the subsidiary (not applying fair value as on acquisition date). The difference between the cost of additional
investment and the carrying value of the acquired net asset should be recorded directly into retained earnings
(similar to transactions among internal shareholders).
Goodwill arising on the acquisition date is presented separately as an intangible asset in the consolidated
balance sheet and is amortised on the straight-line basis in the consolidated income statement according to
current regulation. In case where the amount of goodwill impairment loss in the period is more than the annual
amortised amount on the straight-line basis, the loss amount shall be recognised.
On disposal of a subsidiary, the attributable amount of unmortised goodwill is reduced corresponding to the
disposed share proportion and included in retained earnings in case where the Parent remains its control of the
subsidiary, or reduced in full and included in the determination of the profit or loss in case where the Parent loses
the control.
Financial instruments
Initial recognition
Financial assets
At the date of initial recognition, financial assets are recognized at cost plus transaction costs that are directly
attributable to the acquisition of the financial assets.
Financial assets of the Corporation comprise cash and cash equivalents, trade and other receivables, short-term
and long-term investments.
Financial liabilities
At the date of initial recognition, financial liabilities are recognized at cost.
Financial liabilities of the Corporation comprise trade and other payables, accruals, borrowings, obligations under
finance leases and accrued expenses.
Subsequent measurement after initial recognition
Currently, there are no requirements for the subsequent measurement of the financial instruments after initial
recognition.
Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes
in value.
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4.
Financial investments
Held-to-maturity investments
Held-to-maturity investments comprise investments that the Corporation has the positive intent or ability to
hold to maturity, including term deposits (commercial bills), bonds, preference shares which the issuer shall
redeem at a certain date in the future, loans held to maturity to earn periodic interest and other held-to-maturity
investments.
Held-to-maturity investments are recognised on a trade date basis and are initially measured at acquisition price
plus directly attributable transaction costs. Post-acquisition interest income from held-to-maturity investments
is recognised in the income statement on accrual basis. Pre-acquisition interest is deducted from the cost of such
investments at the acquisition date.
Held-to-maturity investments are measured at cost less provision for doubtful debts.
Provision for doubtful debts relating to held-to-maturity investments is made in accordance with prevailing
accounting regulations.
Equity investments in other entities
Equity investments in other entities represent the Corporation’s investments in ordinary shares of the entities
over which the Company has no control, joint control, or significant influence.
Equity investments in other entities are carried at cost less provision for impairment.
Provisions for impairment of long-term financial investments
Provisions for impairment of long-term financial investments in subsidiaries, joint ventures and associates are
made in accordance with Circular No. 228/2009/TT-BTC dated 07 December 2009 issued by the Ministry of Finance
on “Guiding the appropriation and use of provisions for devaluation of inventories, loss of financial investments,
bad debts and warranty for products, goods and construction works at enterprises”, Circular No. 89/2013/TT-BTC
dated 28 June 2013 by the Ministry of Finance amending and supplementing Circular No. 228/2009/TT-BTC and
prevailing accounting regulations. In some cases, according to the estimate of the Board of Management, the
Corporation prudently makes more provision for impairment of long-term financial investments than required
as per the prevailing accounting regulations.
Receivables
Receivables represent the amounts recoverable from customers or other debtors and are stated at book value
less provision for doubtful debts.
Provision for doubtful debts is made for receivables that are overdue for six months or more, or when the debtor
is in dissolution, in bankruptcy, or is experiencing similar difficulties and so may be unable to repay the debt.
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4.
Inventories
Inventories are stated at the lower of cost and net realizable value. Cost comprises direct materials and where
applicable, direct labor costs, and those overheads that have been incurred in bringing the inventories to their
present location and condition. Cost of inventories within the Corporation is calculated using the first in first out
(FIFO) method and inventory recording method is the perpetual method. Net realizable value represents the
estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling and
distribution.
The evaluation of necessary provision for inventory obsolescence follows current prevailing accounting
regulations which allow provisions to be made for obsolete, damaged, or sub-standard inventories and for those
which have costs higher than net realisable values as at the balance sheet date.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation.
The costs of purchased tangible fixed assets comprise their purchase prices and any directly attributable costs of
bringing the assets to their working condition and location for their intended use.
The costs of self-constructed or manufactured assets are the actual construction or manufacturing cost plus
installation and test running costs.
Tangible fixed assets are depreciated using the straight-line method over their following estimated useful lives:
2015
(Years)
Buildings and structures
5 - 25
Machinery and equipment
3 - 25
Motor vehicles
3 - 10
Office equipment
3-8
Other assets
3-5
Finance lease assets and depreciation
Finance lease assets acquired from finance lease transactions, whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Assets held under finance leases are recognized as assets of the Corporation at their fair value at the inception
of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to
the lessor is included in the consolidated balance sheet as a finance lease obligation. Lease payments are
apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are charged to profit or loss, unless they are
directly attributable to qualifying assets, in which case they are capitalized in accordance with the Corporation’s
general policy on borrowing costs.
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4.
Intangible assets and amortisation
(i)
Land use rights
Intangible assets represent land use rights that are stated at cost less accumulated amortisation. Definite land
use rights are amortised using the straight-line method over the duration of the right to use the land. Indefinite
land use rights are not amortised.
(ii)
License, copyright and patent
Purchase price of license is accounted for as intangible asset. License is amortised to the consolidated income
statement on straight-line basis over a period of 3 to 5 years. The right to operate the high-speed internet line of
Asia America Gateway (“AAG”) project is amortised over 15 years of the operation right.
Purchase prices of copyright and patent are capitalized and accounted for as intangible asset. Copyright and
patent are amortised to the consolidated income statement on straight-line basis over a period of 3 to 5 years.
(iii)Trademark
Purchase prices of trademark and brand name are recorded as intangible asset. Trademark and brand name are
amortised to the consolidated income statement on straight-line basis over their estimated useful lives.
(iv) Computer software
Purchase price of new computer software, which is not an integral part of related hardware is capitalized and
accounted for as intangible asset. Computer software is amortised to the consolidated income statement on
straight-line basis over a period of 3 to 5 years.
Construction in progress
Properties in the course of construction for production, rental, or administrative purposes, or for the purposes
not yet determined, are carried at cost. Cost includes professional fees, and for qualifying assets, borrowing costs
dealt with in accordance with the Corporation’s accounting policy. Depreciation of these assets, on the same
basis as other property assets, commences when the assets are ready for their intended use.
Long-term prepayments
Long-term prepayments comprise prepaid land rental and its attributable cost and office rental. Prepaid land
rentals are charged to the consolidated income statement using the straight-line method over the lease term.
Tools and supplies issued for consumption, small devices and office refurbishment are stated at cost and
expensed in accordance with the prevailing regulations.
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4.
Payable provisions
Payable provisions are made when the Corporation has a present obligation as a result of a past event, and
it is probable that the Corporation will be required to settle that obligation. Provisions are measured at the
management’s best estimate of the expenditure required to settle the obligation as at the balance sheet date.
Provision for warranties
The provision for warranties relates mainly to goods sold and services rendered. The provision is based on
estimates derived from historical warranty data associated with similar products and services.
Provision for guarantees on student loans
The provision for guarantees on student loans relates to guarantees made by FPT University to Joint Stock
Commercial Bank for Investment and Development of Vietnam (BIDV) - Ha Thanh Branch and Tien Phong
Commercial Joint Stock Bank with regard to loans granted by the banks to selected students of FPT University,
under FPT Education Company Limited - a subsidiary of the Company.
Bonus and welfare funds
The Corporation distributes up to 10% of net profit after tax of subsidiaries to bonus and welfare funds.
Revenue recognition
Revenue is recognized when the outcome of such transactions can be measured reliably and it is probable that
the economic benefits associated with the transactions will flow to the Corporation.
Revenue from the sale of goods
Revenue from the sale of goods is recognised when all five (5) following conditions are satisfied:
(a) the Corporation has transferred to the buyer significant risks and rewards of ownership of the goods;
(b) the Corporation retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
(c) the amount of revenue can be measured reliably;
(d) it is probable that the economic benefits associated with the transaction will flow to the Corporation; and
(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from services
Revenue of a transaction involving the rendering of services is recognised when the outcome of such transactions
can be measured reliably. Where a transaction involving the rendering of services is attributable to several
periods, revenue is recognised in each period by reference to the percentage of completion of the transaction at
the consolidated balance sheet date of that year. The outcome of a transaction can be measured reliably when
all four (4) following conditions are satisfied:
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4.
Revenue recognition (Continued)
(a) the amount of revenue can be measured reliably;
(b) it is probable that the economic benefits associated with the transaction will flow to the Corporation;
(c) the percentage of completion of the transaction at the balance sheet date can be measured reliably; and
(d) the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Revenue from software development, system intergration and informatics services
Revenue of a transaction involving the rendering of service is recognised in the consolidated income statement
by reference to the percentage of completion of transaction at the year end. The percentage of completion
is assessed by performance or the percentage of the incurred expense of the completed work over the total
contract cost estimate. Revenue is not recognised if there is material unreliable element related to recovery of
receivables.
Revenue from processing services
Revenue from processing services is recognised in the consolidated income statement when the goods have
been processed and accepted by the buyer. No revenue is recognised if there are significant uncertainties
regarding recovery of the receivables due.
Revenue from telecommunication services
Revenue from telecommunication services is recognised on pro-rata basis over the period during which the
services were actually provided to customers.
Revenue from the sale of telephone, internet, and online game prepaid cards is recognised in the consolidated
income statement based on the time units actually consumed by users. Subsequently, any unutilized credits
are recognised as income upon the expiration of the period of use in accordance with the published expiration
policy. Amounts received upon the sale of prepaid cards, but prior to usage or expiration of the value sold, are
shown as advance from customers in the consolidated balance sheet.
Revenue from online advertising services
Revenue from online advertising services is recognised on pro-rata basis over the display period specified in the
contract.
Revenue from tuition and fees
Revenue is recognised in the year when services are rendered. Tuition and fees collected in advance from the
students are recorded as unearned revenue on the consolidated balance sheet and released to the consolidated
income statement in the year in which the semester falls.
Tuition and fee payment
Tuition and fees are fully payable in advance prior to the beginning of each semester.
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4.
Revenue recognition (Continued)
Enrolment fee or application fee
A one-time fixed application fee is charged per student and collected with applications for enrolment. Proceeds
from the application fees are used to defray the costs associated with all procedures relating to processing each
student’s enrolment, including the administration of applicable assessment evaluation of prior school records
and appropriate placement for the student. The application fee is not refundable.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the applicable
interest rate.
Dividend income from investments is recognised when the Corporation’s right to receive payment has been
established.
Foreign currencies
The Corporation applies the method of recording foreign exchange differences in accordance with Circular No.
200/2014/TT-BTC dated 22 December 2014 Vietnamese Accounting Standard No. 10 (VAS 10) “Effects of changes
in foreign exchange rates”. Accordingly, transactions arising in foreign currencies are translated at exchange
rates ruling at the transaction date. The balances of monetary items denominated in foreign currencies as at the
balance sheet date are retranslated at the exchange rates on the same date. Exchange differences arising from
the translation of these accounts are recognised in the consolidated income statement. Unrealised exchange
gains as at the balance sheet date are not treated as part of distributable profit to shareholders.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and
liabilities of the foreign operation and translated at the closing rate.
Financial statements of foreign operations
For the purpose of presenting consolidated financial statements, the assets and liabilities of the foreign
operations (including comparative figures) are expressed in reporting currency using exchange rates prevailing
on the balance sheet date. Income and expense items (including comparative figures) are translated at the
average exchange rates for the year, unless exchange rates fluctuated significantly during that period, in which
case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are
classified as equity and transferred to the Corporation’s foreign exchange reserve. Such translation differences
are recognised in profit or loss in the period in which the foreign operation is disposed of.
Borrowing costs
Borrowing costs are recognised in the income statement in the year when incurred unless they are capitalised
in accordance with Vietnamese Accounting Standard No. 16 “Borrowing costs”. Accordingly, borrowing costs
directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost
of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment
income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the cost of those assets. For specific borrowings for the purpose of construction of fixed
assets and investment properties, borrowing costs are capitalised even when the construction period is under
12 months.
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4.
Earnings per share
The Corporation presents basic (EPS) and diluted earnings per share (Diluted EPS) for its ordinary shares. Basic
EPS is calculated by having the profit or loss attributable to the ordinary shareholders of the Corporation divided
by the weighted average number of outstanding ordinary shares during the year. Diluted EPS is determined
by adjusting the profit or loss attributable to the ordinary shareholders and the weighted average number of
ordinary shares outstanding taking into consideration the effect of all dilutive potential ordinary shares, which
comprise convertible bonds and share options.
Related parties
Related parties include associates and key management personnel of the Corporation.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported
in the consolidated income statement because it excludes items of income or expense that are taxable or
deductible in other years (including loss carried forward, if any) and it further excludes items that are never
taxable or deductible.
Deferred tax is recognised on significant differences between carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax bases used in the computation of taxable profit
and is accounted for using balance sheet liability method. Deferred tax liabilities are generally recognised for all
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profit
will be available against which deductible temporary differences can be utilised.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or
the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or
credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same tax authority and the
Corporation intends to settle its current tax assets and liabilities on a net basis.
The determination of the tax currently payable is based on the current interpretation of tax regulations. However,
these regulations are subject to periodic variation and their ultimate determination depends on the results of
the tax authorities’ examinations.
Other taxes are paid in accordance with the prevailing tax laws in Vietnam.
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5.
SEGMENT REPORTING
A business segment is a distinguishable component of an enterprise that is engaged in providing an individual
product or service or a group of related products or services and that is subject to risks and returns that are
different from those of other business segments.
The Corporation has two major segments under the management of FPT Corporation (the “Company”) as
follows:
Information Technology and Telecommunication
• Telecommunication: providing internet services to individuals and households, internet services to
enterprises such as providing internet leased line service, domestic and international telecommunication,
domain, hosting, Web Portal services, IPTV etc.;
• Digital content: providing online services for enterprises and individual customers, including online
newspapers (such as VnExpress.net, Ngoisao.net, iOne.net, PCWorld.com.vn, Gamethu.vn etc.); online
advertising, AdNetwork, online music, e-payment etc.;
• Software development: software production, software development, programming and maintenance
services, quality assurance testing, ERP implementation and management services;
• System integration: supplying IT equipment, providing application software solution, providing information
system integration services for offices, enterprises and organizations in such fields as banking, finance,
telecommunication, public health, public utilities and for the Government etc.;
• Informatics services: providing business process outsourcing (BPO) service, e-connection services between
civils, enterprises and the Government, cloud computing, digital signature authentication, confidentiality,
maintenance services for IT, telecommunication and network equipment;
• Manufacture, distribution and retails of technology products: producing technology products and
distributing IT products including IT hardware, application software for mobile phones via chains of retail IT
product shops/showrooms.
Investment and education: including the following main activities:
• Providing training services in IT, business management majors at high education, university, and postgraduate levels;
• Managing investments in associates operating in the finance field;
• Managing and developing real estate projects relating to the Corporation’s infrastructure needs.
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135
12,114
242,497
694,502
166,940
150,160
(15,598)
(9,019)
(298,391)
448,551
-
448,551
Digital
content
514,249
2,417,866
3,816,502
741,346
773,627
(299,842)
(97,862)
(4,485,903)
5,259,530
74,159
5,185,371
Software
development
82,858
1,492,760
2,169,229
96,306
160,138
(36,225)
(25,084)
(2,369,703)
2,529,841
111,983
2,417,858
28,589
515,062
748,470
89,663
55,254
(12,499)
(8,655)
(817,642)
872,896
38,638
834,258
System
Informatics
integration
services
Informatics and Telecommunication
333,461
1,642,669
4,866,102
1,885,196
36,415
(104,574)
(45,712)
(863,513)
899,928
168,583
731,345
Education
and
investment
97,486
7,026,508
8,500,116
728,176
859,578
(61,216)
(7,837)
(24,777,779)
25,637,357
2,399,372
23,237,985
Manufacture,
distribution
and retails of
technology
products
Segment expenses include cost of sales, selling and administration expenses (not included financial expenses and other expenses).
Segment result as segment revenue less segment expenses.
1,835,357
Total expenses for buying fixed assets
(i)
(ii)
4,955,895
877,505
Segment profit before tax
Segment liabilities
889,476
Segment result (ii)
7,260,414
(63,753)
Allocation of long-term prepaid expenses
Segment assets
(543,002)
(4,229,600)
5,119,076
14,745
5,104,331
Telecommunication
Depreciation and amortisation
In which
Directly attributable expenses
Segment expenses (i)
Total segment revenue
Inter segment revenue
External revenue
Segment revenue
Items
Year 2015
5. SEGMENT REPORTING (Continued)
-
(2,429,954)
(2,009,746)
(1,733,983)
10,512
-
4,291
2,817,992
(2,807,480)
(2,807,480)
-
Elimination
2,904,114
15,863,303
26,045,589
2,851,149
2,935,160
(593,707)
(732,880)
(35,024,539)
37,959,699
-
37,959,699
Total
Unit: VND million
FORM B 09-DN/HN
136
ANNUAL REPORT 2015
www.fpt.com.vn
(395,850)
(116,680)
809,027
833,809
8,803,915
6,308,059
1,087,160
Allocation of long-term prepaid expenses
Segment result
Segment profit before tax
Segment assets
Segment liabilities
Total expenses for buying fixed assets
(3,066,834)
3,875,861
5,959
3,869,902
Telecommunication
In which:
Directly attributable expenses
Segment expenses
Total segment revenue
Inter segment revenue
External revenue
Segment revenue
Items
Year 2014
5. SEGMENT REPORTING (Continued)
28,573
545,401
937,495
102,223
92,992
(43,732)
(12,625)
(853,413)
946,405
-
946,405
Digital
content
486,089
1,534,916
2,849,138
518,825
544,672
(222,659)
(64,864)
(3,035,960)
3,580,632
72,991
3,507,641
Software
development
86,575
1,891,701
2,677,263
136,682
129,686
(48,043)
(27,048)
(2,788,836)
2,918,522
211,642
2,706,880
System
integration
23,144
505,716
715,724
84,496
34,669
(12,843)
(7,231)
(745,551)
780,220
56,579
723,641
Informatics
services
172,458
1,542,253
4,113,872
2,019,821
74,313
(36,992)
(38,862)
(700,838)
775,151
165,048
610,103
101,342
6,950,611
8,294,629
589,148
590,953
(59,812)
(5,099)
(22,260,244)
22,851,197
2,571,113
20,280,084
Manufacture,
Education
distribution and
and inretails of technolvestment
ogy products
Informatics and Telecommunication
6,852
(5,878,132)
(5,733,692)
(1,825,780)
58,356
-
4,305
3,141,688
(3,083,332)
(3,083,332)
-
Elimination
1,992,193
13,400,525
22,658,344
2,459,224
2,334,668
(540,761)
(547,274)
(30,309,988)
32,644,656
-
32,644,656
Total
Unit: VND million
FORM B 09-DN/HN
FORM B 09-DN/HN
6.
CASH AND CASH EQUIVALENTS
Unit: VND
31/12/2015
31/12/2014
217,540,867,601
25,340,467,183
Cash in bank
1,661,856,451,267
2,046,865,852,133
Cash equivalents
1,705,311,832,901
2,264,076,128,453
3,584,709,151,769
4,336,282,447,769
Cash on hand
7.
FINANCIAL INVESTMENTS
Unit: VND
31/12/2014
31/12/2015
a. Held-to-maturity
investments
- Term deposit
- Other short-term investment
Cost
Carrying amount
Cost
Carrying amount
2,646,233,222,047
2,617,441,917,720
1,428,479,061,776
1,428,479,061,776
2,517,867,140,271
2,517,867,140,271
1,299,337,980,000
1,299,337,980,000
128,366,081,776
99,574,777,449
129,141,081,776
129,141,081,776
Unit: VND
31/12/2014
31/12/2015
Cost
Provision
Cost
Provision
b. Long-term financial
investments
b1) Investments in jointventures, associates
137,500,000,000
-
137,500,000,000
-
27,500,000,000
-
27,500,000,000
-
- FPT Security Joint Stock
Company
110,000,000,000
-
110,000,000,000
-
b2) Equity investments in other
entities
632,649,372,195
(176,177,677,251)
725,588,838,379
(167,150,462,185)
- Vietnam Japan Investment
Fund
44,870,000,000
(8,132,510,645)
44,870,000,000
(13,863,410,019)
- Vietnam Investment Fund
10,650,000,000
-
21,300,000,000
-
577,129,372,195
(168,045,166,606)
659,418,838,379
(153,287,052,166)
- FPT Capital Management Joint
Stock Company
- Other investments
In accordance with Circular No. 200/2014/TT-BTC dated 22 December 2014, the fair value of investments in jointventures, associates and investments in other entities as at 31 December 2015 should be presented. However,
due to investments in joint-ventures, associates and investments in other entities were not listed and does
not have any guidelines for determination of fair value for unlisted investments, the Corporation has not yet
presented the fair value of these investments.
137
FORM B 09-DN/HN
8.
RECEIVABLES FROM CONTRACTS UNDER PERCENTAGE OF COMPLETION METHOD
Unit: VND
Recognised revenue to date under percentage of completion
method
Less: progress billings and advances from customers
9.
31/12/2015
31/12/2014
1,983,467,611,881
1,575,886,912,803
(1,466,630,132,426)
(1,209,548,826,587)
516,837,479,455
366,338,086,216
OTHER RECEIVABLES
Unit: VND
31/12/2015
31/12/2014
Receivable related to maintenance services
119,119,747,291
92,294,878,439
Receivable related to support from suppliers
183,064,955,871
67,766,893,841
Deposits and mortgages
82,961,439,470
17,841,043,789
Other receivables
91,275,358,594
202,906,465,715
476,421,501,226
380,809,281,784
Deposits and mortgages
95,148,463,192
68,505,297,758
Other receivables
65,013,425,541
59,635,569,877
160,161,888,733
128,140,867,635
a. Current
b. Non-current
10. BAD DEBTS
Unit: VND
31/12/2014
31/12/2015
Cost
Total amount of receivables past
due or not past due but impaired
138
ANNUAL REPORT 2015
www.fpt.com.vn
392,429,395,668
Recoverable
amount
56,376,341,258
Cost
348,600,694,349
Recoverable
amount
53,145,143,301
FORM B 09-DN/HN
11.INVENTORIES
Unit: VND
31/12/2014
31/12/2015
Cost
Provision
Cost
Provision
Goods in transit
463,819,057,341
-
236,143,261,376
-
Tools and supplies
107,035,823,637
-
47,795,028,308
-
Work in progress
891,024,964,660
-
923,735,613,682
-
3,870,151,808,724
(63,932,037,142)
3,444,659,341,617
(79,697,060,843)
(63,932,037,142) 4,652,333,244,983
(79,697,060,843)
Merchandise
Total
5,332,031,654,362
12.PREPAYMENTS
Unit: VND
31/12/2015
31/12/2014
Expenditure for transferring to optical fiber system
286,575,813,914
230,952,022,561
Other current prepayments
542,945,620,522
361,842,457,101
829,521,434,436
592,794,479,662
PayTV installation cost
231,193,175,317
-
Initial set-up for shops
138,602,169,735
107,326,688,302
Electronic equiment and computer system
92,667,879,184
83,185,177,138
Prepayments for integration systems contracts
83,124,925,964
60,151,963,706
262,948,752,238
268,144,966,569
808,536,902,438
518,808,795,715
a) Current
b) Non-current
Other non-current prepayments
139
FORM B 09-DN/HN
13. TAXES AND OTHER RECEIVABLES FROM/PAYABLES TO THE STATE BUDGET
Movement of taxes and other receivables from/payables to the State budget:
Unit: VND
31/12/2014
Amount payable
Amount paid
and deducted
31/12/2015
Value added tax
84,277,382,292
5,225,221,438,017
5,192,224,451,737
117,274,368,572
- Output value added tax
83,540,166,906
3,330,731,528,402
3,297,702,594,312
116,569,100,996
- Value added tax on imports
737,215,386
1,894,489,909,615
1,894,521,857,425
705,267,576
Import duties
277,672,080
23,163,378,562
23,393,631,436
47,419,206
109,546,113,726
487,718,512,520
438,294,708,886
158,969,917,360
15,612,336,370
219,834,007,962
219,908,092,784
15,538,251,548
6,553,617,502
39,455,463,845
39,379,027,812
6,630,053,535
826,292,149
4,202,121,178
3,864,988,032
1,163,425,295
217,093,414,119
5,999,594,922,084
5,917,064,900,687
299,623,435,516
Items
Corporate income tax
Personal income tax
Foreign contractor
withholding tax
Other taxes and fees
Total
In which:
140
- Taxes and other receivables
from the State budget
33,743,686,340
18,846,018,259
- Taxes and amounts
payable to the State budget
250,837,100,459
318,469,453,775
ANNUAL REPORT 2015
www.fpt.com.vn
FORM B 09-DN/HN
13. TAXES AND OTHER RECEIVABLES FROM/PAYABLES TO THE STATE BUDGET (Continued)
The balance of taxes and other receivables from/payables to the State budget in detail:
- Taxes and other receivables from the State budget
Unit: VND
31/12/2015
31/12/2014
953,442,792
1,775,552,997
34,802,629
34,802,629
16,955,759,914
31,338,876,708
Personal income tax
370,544,381
204,482,824
531,468,543
389,971,182
18,846,018,259
33,743,686,340
Value added tax
Import duties
Total
- Taxes and amounts payable to the State budget
Unit: VND
31/12/2015
31/12/2014
118,227,811,364
86,052,935,289
82,221,835
312,474,709
175,925,677,274
140,884,990,434
15,908,795,929
15,816,819,194
Foreign contractor withholding tax
6,630,053,535
6,553,617,502
1,694,893,838
1,216,263,331
318,469,453,775
250,837,100,459
Value added tax
Import duties
Personal income tax
Total
141
142
ANNUAL REPORT 2015
www.fpt.com.vn
930,452,626,728
As at 31/12/2014
1,785,363,343,240
2,708,178,878,194
2,013,495,514,343
(383,218,640)
(5,128,701,697)
492,377,649,500
1,526,629,785,180
4,721,674,392,537
(73,359,958)
(6,826,725,230)
10,751,267,443
1,405,830,081,862
3,311,993,128,420
Machinery,
equipment
42,286,258,674
40,005,686,543
43,280,872,171
-
(1,589,838,906)
5,847,004,063
39,023,707,014
83,286,558,714
-
(1,645,182,175)
-
3,621,775,201
81,309,965,688
215,653,229,730
210,400,732,365
696,871,417,256
(3,635,616,674)
(15,437,252,721)
92,692,237,710
623,252,048,941
907,272,149,621
(655,301,888)
(19,120,523,968)
-
88,142,696,806
838,905,278,671
Motor vehicles Office equipment
24,246,883,357
64,896,850,979
31,776,319,430
10,183,257
(741,616,791)
19,512,506,686
12,995,246,278
96,673,170,409
-
(1,793,659,632)
-
61,224,700,406
37,242,129,635
Others
2,998,002,341,729
3,971,402,119,342
2,965,670,257,073
(4,008,652,057)
(51,556,430,836)
666,704,728,016
2,354,530,611,950
6,937,072,376,415
(1,026,220,846)
(148,844,141,369)
172,913,328,757
1,561,496,456,194
5,352,532,953,679
Total
Unit: VND
FORM B 09-DN/HN
As at 31 December 2015, the cost of the Corporation’s assets including machinery and equipment, motor vehicles and office equipment which had been fully depreciated
but are still in use was approximately VND947,480 million (as at 31 December 2014: VND849,055 million).
947,919,971,261
180,246,133,873
-
As at 31/12/2015
NET BOOK VALUE
As at 31/12/2015
Other increases/(decreases)
(28,659,020,721)
56,275,330,057
Charge for the year
Disposals
152,629,824,537
1,128,166,105,134
(297,559,000)
(119,458,050,364)
162,162,061,314
2,677,201,919
1,083,082,451,265
As at 01/01/2015
ACCUMULATED DEPRECIATION
As at 31/12/2015
Disposals
Transfer from construction in progress
Purchases
As at 01/01/2015
COST
Buildings,
structures
14. INCREASE, DECREASE IN TANGIBLE FIXED ASSETS
143
As at 31/12/2014
As at 31/12/2015
NET BOOK VALUE
55,356,387,797
45,575,082,798
3,682,067,852
-
As at 31/12/2015
-
666,968,999
Charge for the year
Disposals
3,015,098,853
49,257,150,650
-
As at 01/01/2015
ACCUMULATED AMORTISATION
As at 31/12/2015
(9,114,336,000)
-
Transferred from construction in progress
Disposals
-
58,371,486,650
Land use rights
Purchases
As at 01/01/2015
COST
15. INCREASE, DECREASE IN INTANGIBLE ASSETS
71,196,294,687
97,925,214,850
177,796,687,553
6,553,941,911
(2,274,943,799)
35,804,878,071
137,712,811,370
275,721,902,403
310,804,373
(2,414,618,577)
38,810,225,916
30,106,384,634
208,909,106,057
Computer
software
175,251,048,251
175,613,717,162
109,752,335,521
(6,324,028,216)
(38,006,682)
29,258,451,357
86,855,919,062
285,366,052,683
(2,979,947,777)
(347,593,770)
12,684,097,922
13,902,528,995
262,106,967,313
Copyright, license
and patent
301,803,730,735
319,114,014,810
291,231,090,926
229,913,695
(2,312,950,481)
65,730,298,427
227,583,829,285
610,345,105,736
(2,669,143,404)
(11,876,548,347)
51,494,323,838
44,008,913,629
529,387,560,020
Total
Unit: VND
FORM B 09-DN/HN
FORM B 09-DN/HN
16. CONSTRUCTION IN PROGRESS
Unit: VND
Opening balance
Additions
Transferred to fixed assets
Other decrease
Closing balance
2015
2014
537,241,674,698
539,102,696,805
385,429,374,070
220,415,696,445
(224,407,652,595)
(209,424,546,745)
(19,088,155,497)
(12,852,171,807)
679,175,240,676
537,241,674,698
Details by project are as follows:
Unit: VND
31/12/2015
31/12/2014
679,175,240,676
537,241,674,698
158,813,175,651
155,652,668,002
92,999,271,455
92,999,271,455
137,777,321,581
5,970,130,972
-
101,233,104,567
289,585,471,989
181,386,499,702
679,175,240,676
537,241,674,698
Long-term construction in progress
Construction in progress
In which:
- Asia Pacific Gateway Cable Network
- Nam An Khanh project
- FPT office project in Da Nang
- F-Town 2 project
- Other constructions
During the year, total borrowing costs capitalized into the cost of construction in progress was VND3,441 million
(2014: VND6,515 million).
17. INVESTMENTS IN SUBSIDIARIES
Details of the Corporation’s subsidiaries as at 31 December 2015 are as follows:
and operation
FPT Information
System Coporation
Floor 22, Keangnam
Landmark 72, E6 Pham Hung,
Me Tri, Tu Liem, Hanoi
100%
100%
Providing application software
solution, ERP service, IT service and
integrated system service
Floor 6-12 FPT Cau
Giay Building, Duy Tan Street,
100%
100%
Providing software services
and products
FPT Software
Company Limited
144
Proportion Proportion
of
of
ownership voting right
Name of
subsidiary
ANNUAL REPORT 2015
www.fpt.com.vn
FORM B 09-DN/HN
17. INVESTMENTS IN SUBSIDIARIES (Continued)
Proportion Proportion
of
of
ownership voting right
Name of
subsidiary
and operation
FPT Trading
Company Limited
FPT Cau Giay Builing,
Duy Tan Street, Cau Giay
District, Hanoi
100%
100%
Producing technology products
and distributing IT devices and
mobile phones; and manufacturing
computers
FPT Telecom Joint
Stock Company (i)
Floor 2, FPT Cau Giay
Building, Duy Tan Street,
45.64%
45.64%
Providing ADSL services, fixed line
internet services, online advertising
and other online services
FPT Education
Company Limited
Duy Tan Street, Cau
Giay District, Hanoi
100%
100%
FPT Online Service
Joint Stock
Company
No. 408 Dien Bien Phu
Street, Ward 11, District
10, Hochiminh City
51.95%
84.08%
FPT Investment
Company Limited
Floor 13, FPT Cau Giay
Building, Duy Tan Street,
FPT Digital Retail
Joint Stock
Company
No. 261 - 263 Khanh
Hoi, Ward 5, District 4,
Hochiminh City
FPT Media
Company
Limited (ii)
Duy Tan Street, Cau
Giay District, Hanoi
100%
100%
85.00%
85.00%
100%
100%
Providing training and
technology services
Providing online services
Providing financial services activities
(investment consulting service,
excluding legal and financial
consulting services)
Retails of computers, peripheral
devices, software and
telecommunication equipment;
telecom service agent
Producing news and entertainment
shows; providing telecom and
advertising services
(i) As at 31 December 2015, FPT Corporation holds 45.64% ownership interest (31 December 2014: 45.64%)
and 45.64% of voting rights (31 December 2014): 45.64% at FPT Telecom Joint Stock Company. However, the
Corporation has the power to cast the majority of votes at meetings of the Board of Directors of FPT Telecom
Joint Stock Company and thus, the Corporation has the power to control the financial and operating policies
of FPT Telecom Joint Stock Company. Therefore, the Corporation has control over FPT Telecom Joint Stock
Company, and thus, the financial statements of FPT Telecom Joint Stock Company are incorporated in the
Corporation’s consolidated financial statements.
(ii) On 08 August 2011, Executive President of FPT Corporation issued Decision No. 79.1-2011/QD-FPT TGD on
temporarily narrowing the business activities of FPT Media Company Limited.
145
FORM B 09-DN/HN
18. INVESTMENTS IN ASSOCIATES
Unit: VND
2015
Opening balance
2014
251,078,173,392
225,525,036,285
Share of net profit after corporate income tax of associates
27,689,161,926
32,886,470,107
Dividends received
(7,333,333,000)
(7,333,333,000)
271,434,002,318
251,078,173,392
Closing balance
Details of the Corporation’s associates as at 31 December 2015 in which the Corporation accounted for using the
equity method of accounting in its consolidated financial statements are as follows:
Name of
associate
Proportion of
ownership and
voting right
and operation
FPT Securities Joint
Stock Company
Floor 2, 71 Nguyen Chi
Thanh Street, Dong Da
District, Hanoi
20%
Securities trading, brokerage,
investment advisory and securities
depository services
FPT Fund
Management
Joint Stock Company
Floor 9, TTC Building, Lot B1A,
Dich Vong Hau Ward, Pham
Hung Street, Cau Giay District,
Hanoi
25%
Portfolio and fund management and
other services
19. DEFERRED TAX ASSETS
Unit: VND
As at 01/01/2015
Transferred to the consolidated
income statement of the year
Other increase
As at 31/12/2015
146
ANNUAL REPORT 2015
www.fpt.com.vn
Fixed assets
Provisions
Revenue
Total
20,456,079,360
7,644,891,746
103,706,044,731
131,807,015,837
(944,111,590)
(1,202,071,413)
83,153,785,552
81,007,602,549
-
-
3,855,105,395
3,855,105,395
19,511,967,770
6,442,820,333
190,714,935,678
216,669,723,781
FORM B 09-DN/HN
20. SHORT-TERM ACCRUED EXPENSES
Unit: VND
31/12/2015
31/12/2014
Accrued expenses for system integration projects
242,366,174,929
155,168,156,355
Others
276,403,200,090
190,310,328,620
518,769,375,019
345,478,484,975
21. UNEARNED REVENUE
Unit: VND
31/12/2015
31/12/2014
Unearned revenue related to telecom service
1,141,049,275,657
658,488,407,066
Unearned revenue related to tuition and fees
104,112,569,879
106,146,332,360
Other unearned revenues
246,786,126,106
197,016,889,369
1,491,947,971,642
961,651,628,795
Unearned revenue related to telecom service
15,488,875,267
13,267,875,144
Other unearned revenues
19,487,878,098
11,260,629,404
34,976,753,365
24,528,504,548
a) Current
b) Non-current
22. OTHER PAYABLES
Unit: VND
31/12/2015
31/12/2014
Trade union fee
35,250,149,382
27,385,555,008
Social, health and unemployment insurance
33,690,405,484
18,094,301,731
127,756,116,846
77,626,861,282
4,901,045,648
5,001,985,839
Marketing support fee received in advance from suppliers
34,293,441,263
51,954,456,378
Other current payables
66,391,578,995
167,641,287,417
302,282,737,618
347,704,447,655
Long-term deposits received
20,051,178,357
17,487,587,117
Other non-current payables
165,361,493,608
180,961,544,956
185,412,671,965
198,449,132,073
a) Current
Short-term deposits received
Dividends payable
b) Non-current
147
148
ANNUAL REPORT 2015
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6,722,412,217,259
6,722,412,217,259
230,390,476
113,838,052,738
114,068,443,214
6,608,343,774,045
Amount able to
be paid off
23,442,115,614,198
517,406,595
157,608,397,509
158,125,804,104
23,283,989,810,094
Increase
Decrease
21,973,202,822,755
230,390,476
113,838,052,738
114,068,443,214
21,859,134,379,541
In the year
8,191,325,008,702
517,406,595
157,608,397,509
158,125,804,104
8,033,199,204,598
Amount
8,191,325,008,702
517,406,595
157,608,397,509
158,125,804,104
8,033,199,204,598
Amount able to
be paid off
31/12/2015
Unit: VND
FORM B 09-DN/HN
(i) Most of short-term loans from banks and business entities are unsecured. These loans can be withdrawn in either Vietnam Dong or United States Dollar. Interest rate
is determined as per each specific withdrawal.
Total
230,390,476
113,838,052,738
- Current portion of long-term loans (see
detail in Note 25)
- Current portion of long-term obligations
under finance leases
114,068,443,214
6,608,343,774,045
Amount
Current portion of long-term loans and
liabilities
Short-term loans from banks and
business entities (i)
Item
31/12/2014
23. SHORT-TERM LOANS AND OBLIGATIONS UNDER FINANCE LEASE
FORM B 09-DN/HN
24.PROVISIONS
Unit: VND
Short-term
provisions for
warranties
Long-term
provisions for
warranties
Long-term
provisions for
guarantees on
student loans
Total
24,651,664,341
7,601,081,577
12,905,000
32,265,650,918
Additional provision in the year
30,509,844,819
7,311,247,649
-
37,821,092,468
Reversal of provisions
(4,100,648,509)
(2,356,522,910)
-
(6,457,171,419)
Utilisation of provisions
(34,108,681,394)
(5,963,746,966)
-
(40,072,428,360)
As at 31/12/2015
16,952,179,257
6,592,059,350
12,905,000
23,557,143,607
As at 01/01/2015
Warranties
The provision for warranties relates mainly to goods sold and services rendered. The provision is based on
estimates derived from historical warranty data associated with similar products and services.
Guarantees on student loans
The provision for guarantees on student loans is made based on credit rating of the outstanding balance of loans
granted by Joint Stock Commercial Bank for Investment and Development of Vietnam - Ha Thanh Branch and
Tien Phong Commercial Joint Stock Bank to selected students of FPT University under FPT Education Company
Limited - a subsidiary of the Company, and guaranteed by FPT University.
149
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ANNUAL REPORT 2015
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114,068,443,214
142,418,459,294
- Amount due for settlement after 12 months
256,486,902,508
948,698,669
255,538,203,839
Amount
- Amount due for settlement within 12 months
Of which:
Total
Long-term obligations under finance leases
Long-term loans
Item
256,486,902,508
948,698,669
255,538,203,839
Amount able to
be paid off
31/12/2014
25. LONG-TERM LOANS AND OBLIGATIONS UNDER FINANCE LEASE
637,470,927,754
1,302,483,604
636,168,444,150
Increase
121,477,432,907
230,390,472
121,247,042,435
Decrease
In the year
614,354,593,251
158,125,804,104
772,480,397,355
2,020,791,801
770,459,605,554
Amount
772,480,397,355
2,020,791,801
770,459,605,554
Amount able to
be paid off
31/12/2015
Unit: VND
FORM B 09-DN/HN
FORM B 09-DN/HN
25. LONG-TERM LOANS AND OBLIGATIONS UNDER FINANCE LEASE (Continued)
Unit: VND
31/12/2015
31/12/2014
770,459,605,554
255,538,203,839
- 3 year-term
33,942,829,692
88,861,999,162
- 4 year-term
553,729,286,688
54,705,000,000
- 5 year-term
182,787,489,174
111,971,204,677
2,020,791,801
948,698,669
772,480,397,355
256,486,902,508
- Amount due for settlement within 12 months
158,125,804,104
114,068,443,214
- Amount due for settlement after 12 months
614,354,593,251
142,418,459,294
Long-term loans
Long-term obligations under finance leases
Total
Of which:
Long-term loans are repayable as follows:
Unit: VND
31/12/2015
31/12/2014
On demand or within one year
157,608,397,509
113,838,052,738
In the second year
250,434,604,057
76,178,575,356
In the third to fifth year inclusive
362,416,603,988
65,521,575,745
-
-
770,459,605,554
255,538,203,839
157,608,397,509
113,838,052,738
612,851,208,045
141,700,151,101
After five years
Less: Amount due for settlement within 12 months (shown under
current liabilities)
Amount due for settlement after 12 months
151
152
ANNUAL REPORT 2015
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-
3,975,316,400,000 49,465,703,201
-
-
-
-
-
Investment
and development fund
(16,872,163,837)
-
-
-
-
733,101,976
-
-
-
-
4,302,490,092 78,666,938,875
Foreign
exchange
reserve
(823,760,000)
-
-
-
-
-
(363,491,767)
-
-
-
-
-
(6,549,325,268) 79,036,549,084
6,020,348,477
-
-
-
-
-
(823,760,000) (12,569,673,745) 79,400,040,851
-
-
-
-
-
(823,760,000)
Treasury
shares
87,227,790,014
24,696,990
-
-
-
-
-
87,203,093,024
(27,740,764,485)
-
-
-
-
114,943,857,509
Other
reserves
4,394,554,749,025
(353,069,038,799)
(743,062,805,000)
(518,357,230,000)
(190,005,736,294)
1,930,895,920,629
-
4,268,153,638,489
31,922,472,870
(756,573,292,500)
(687,748,450,000)
(158,874,063,869)
1,632,085,087,193
4,207,341,884,795
Retained
earnings
8,578,228,106,056
(347,387,485,099)
(743,062,805,000)
-
(190,005,736,294)
1,930,895,920,629
17,193,170,000
7,910,595,041,820
(11,957,353,476)
(756,573,292,500)
-
(158,874,063,869)
1,632,085,087,193
7,205,914,664,472
Total
Unit: VND
FORM B 09-DN/HN
(i) In the year, the Corporation issued 51,835,723 shares for dividend payment of 2014 according to the Company’s Shareholders’ Annual General Meeting of 2015.
As at 31/12/2015
Other movements (ii)
Dividends declared
518,357,230,000
-
Transferred to bonus
and welfare funds
Stock dividends
declared (i)
-
17,193,170,000
Profit for the year
Shares issued
3,439,766,000,000 49,465,703,201
As at 01/01/2015
-
-
Other movements
-
-
-
687,748,450,000
-
Dividends declared
Stock dividends
declared
-
Transferred to bonus
and welfare funds
-
-
Profit for the year
Share
premium
2,752,017,550,000 49,465,703,201
Charter capital
As at 01/01/2014
Changes in equity
26. SHAREHOLDERS’ EQUITY
FORM B 09-DN/HN
26. SHAREHOLDERS’ EQUITY (Continued)
(ii) Other movements comprise of the write-off of goodwill arising from business combination at the value of
VND333,170,444,644 which was recorded as at 31 December 2014. This goodwill resulted from investment
transactions which increased FPT’s ownership at some subsidiaries several years ago. In nature, these
investments did not constitute FPT’s control right over subsidiaries; thus, they did not constitute business
combination transaction as defined by Circular 202/TT-BTC (“Circular 202”) dated 22 December 2014 guiding
the preparation and presentation of consolidated financial statements, effective for financial years starting
on or after 01 January 2015. Accordingly, these transactions did not create goodwill as an asset from business
combination. Instead, the excess of additional acquisition costs over carrying value of attributable net assets
of the subsidiaries should be directly debited to retained earnings as an equity transaction. As such, to
record the transactions’ nature more accurately and comply with Circular 202, the Corporation’s Board of
Management prudently considered that this goodwill had not met the criteria for asset recognition and
decided to derecognize it.
Dividends
On 03 April 2015, at the Company’s Shareholders’ Annual General Meeting, shareholders approved the plan of
stock dividend payment of 2014 at the pay-out ratio of 15% (03 new shares for every 20 shares held) and second
cash dividend payment of 2014 at the pay-out ratio of 10% of par value (VND1,000/share) and approved the plan
of 2015 cash dividend advance of 20% of par value (VND2,000/share).
According to Resolutions of Board of Director No. 01.07-2015/NQ-HDQT-FPT dated 30 July 2015, the Company
made cash dividend advance of 2015 at the pay-out ratio of 10% of par value (VND1,000/share). The cash dividend
pay-out ratio of the whole year 2015 will be decided by the Company’s Shareholders’ Annual General Meeting
in 2016.
Number of outstanding shares
31/12/2015
31/12/2014
Number of shares
Number of shares
Authorised share capital
397,531,640
343,976,600
Issued share capital
397,531,640
343,976,600
397,531,640
342,203,103
In which shares subject to restriction in ownership transfer
4,004,296
1,773,497
Treasury shares
(82,376)
(82,376)
(82,376)
(82,376)
397,449,264
343,894,224
397,449,264
342,203,103
3,921,920
1,691,121
Ordinary shares
Outstanding shares in circulation
Ordinary shares
All ordinary shares have a par value of VND10,000. Each share is entitled to one vote at shareholders’ meetings
of the Company. Shareholders are entitled to receive dividends as declared at each point of time. All ordinary
shares are ranked equally with regard to the Company’s residual assets. In respect of shares bought back by the
Company, all rights are suspended until those shares are re-issued.
Shares subject to restriction in ownership transfer have a par value of VND10,000. These shares are subject to
restrictions according to which shareowners are not allowed to resell their shares within specified term from the
date of issuance.
153
FORM B 09-DN/HN
27.REVENUE
Unit: VND
2015
2014
38,707,143,264,487
32,873,026,689,955
- Sales of finished goods, merchandise
26,583,173,024,305
23,137,125,190,058
- Sales of services
12,123,970,240,182
9,735,901,499,897
747,444,508,465
228,370,331,060
- Sales rebates
244,882,812
664,616,103
- Sales returns
747,199,625,653
227,705,714,957
37,959,698,756,022
32,644,656,358,895
Sales of merchandise and services
In which:
Deductions
Net sales
Net sales represent the Corporation’s sales to external parties. For management purpose, the Corporation
maintains data of business revenue that comprises the Corporation’s sales to external parties and sales to
entities within the Corporation made on the commercial basis. The sales to entities within the Corporation were
eliminated on consolidation. An analysis of the composition of the Corporation’s revenue is as follows:
Unit: VND
Net sales to external parties
Net sales to entities within the Corporation
Total business revenue
2015
2014
37,959,698,756,022
32,644,656,358,895
2,043,363,930,736
2,485,838,459,847
40,003,062,686,758
35,130,494,818,742
28. COST OF SALES
Unit: VND
Cost of finished products, goods sold
Cost of services rendered
(Reversal)/Provision for devaluation of inventories
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2015
2014
25,605,786,214,688
20,789,250,295,141
4,875,857,687,623
5,612,112,315,676
(15,765,023,701)
54,772,429,414
30,465,878,878,610
26,456,135,040,231
FORM B 09-DN/HN
29. PRODUCTION COST BY NATURE
Unit: VND
2015
2014
21,059,900,444,318
18,132,407,613,139
Raw materials
3,159,346,972,946
3,356,674,095,833
Labour
4,722,452,975,719
3,091,000,395,774
1,326,587,798,427
1,088,035,837,975
Out-sourced services
4,016,977,543,294
4,601,546,584,762
653,079,815,673
453,996,798,691
34,938,345,550,377
30,723,661,326,174
Cost of goods purchased
Other monetary expenses
30. FINANCIAL INCOME
Unit: VND
2015
2014
Interest from bank deposits and loans
182,528,342,673
169,341,885,541
Foreign exchange gain
164,042,301,703
111,798,087,890
Other financial income
105,976,045,836
86,504,592,277
452,546,690,212
367,644,565,708
31. FINANCIAL EXPENSES
Unit: VND
2015
2014
Interest expense
262,502,327,611
166,165,287,204
Foreign exchange loss
247,952,957,200
113,278,556,862
Other financial expenses
109,956,282,697
74,632,479,063
620,411,567,508
354,076,323,129
32. OTHER INCOME
Unit: VND
Proceeds from disposals of fixed assets
Bonuses, commission and compensation received
Others
2015
2014
9,998,167,634
11,612,286,435
719,417,204
24,480,366,116
136,078,481,835
130,662,985,908
146,796,066,673
166,755,638,459
155
FORM B 09-DN/HN
33. CORPORATE INCOME TAX EXPENSES
Unit: VND
2015
2014
497,887,752,934
396,507,865,288
(886,677,219)
2,492,279,380
497,001,075,715
399,000,144,668
Current corporate income tax expenses
- Corporate income tax based on taxable profit in the current year
- Adjustments for corporate income tax expenses in previous years to
the current year
Total corporate income tax expenses
Unit: VND
2015
2014
102,218,868,499
82,902,012,067
- Deferred corporate income tax incomes arising from deductible
temporary differences
(187,099,993,248)
(102,746,865,223)
- Deferred corporate income tax expenses arising from unrealised
profit in the year
944,111,590
944,111,590
(83,937,013,159)
(18,900,741,566)
Deferred corporate income tax income
- Deferred corporate income tax expenses arising from taxable
temporary differences
Total deferred corporate income tax expenses
Under its Business Registration Certificate and prevailing tax regulations, the Corporation is obligated to pay CIT
at the rate of 10% of taxable income on software production and service, 10% of taxable income on IT training
education and 22% of taxable income on goods sold and the other services rendered.
Tax rates applicable to subsidiaries of FPT Corporation are in accordance with the prevailing tax regulations.
34. BASIC EARNINGS PER SHARE
In the year ended 31 December 2015, FPT Corporation paid dividend in shares, which led to a retrospective
adjustment to the weighted average number of outstanding ordinary shares of the year ended 31 December
2014. Besides, Circular 200 guided calculation of basic earnings per share which considered effect of transferring
Bonus and Welfare funds. Accordingly, basic earnings per share of 2015 and 2014 are disclosed as follows:
156
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FORM B 09-DN/HN
34. BASIC EARNINGS PER SHARE (Continued)
Unit: VND
Accounting profit after corporate income tax
Weighted average number of outstanding ordinary shares
Transferring bonus and welfare fund
2015
2014
(Restated
and reclassfied)
1,930,895,920,629
1,632,085,087,193
396,876,158
395,729,947
190,005,736,294
158,874,063,870
As stated in the consolidated financial statements for the year
ended 31 December 2014
4,746
Effect of stock dividends issued in the year
Basic earnings per share according to Decision 15/2006
(622)
4,865
4,124
Effect of transferring bonus and welfare fund according to Circular
200
(479)
(401)
Basic earnings per share included effect of transferring bonus
and welfare fund according to Circular 200
4,386
3,723
35. FINANCIAL INSTRUMENTS
Capital risk management
The Corporation manages its capital to ensure that the Company will be able to continue as a going concern
while maximising the return to shareholders through the optimisation of the debt and equity balance.
The capital structure of the Corporation consists of net debt (borrowings disclosed in Notes 23 and 25, offset
by cash and cash equivalents) and shareholders’ equity (comprising capital, reserves and retained earnings).
Gearing ratio
Unit: VND
31/12/2015
31/12/2014
Borrowings
8,805,679,601,953
6,864,830,676,553
Less: Cash and term deposits with terms within 12 months
6,102,576,292,040
5,635,620,427,769
Net debt
2,703,103,309,913
1,229,210,248,784
10,182,285,753,023
9,257,818,758,094
0.27
0.13
Equity
Net debt to equity ratio
Significant accounting policies
Details of the significant accounting policies and methods adopted by the Corporation (including the criteria
for recognition, the bases of measurement, and the bases for recognition of income and expenses) for each
class of financial asset, financial liability and equity instrument are disclosed in Note 4.
Financial risk management objectives
The Corporation has set up risk management system to identify and assess the risks exposed the Corporation
and designed control policies and procedures to manage those risks at an acceptable level. Risk management
system is reviewed on a regular basis to reflect changes in market conditions and the Corporation’s operations.
Financial risks include market risk (including foreign currency risk, interest rate risk and price risk), credit risk and
liquidity risk.
157
FORM B 09-DN/HN
35. FINANCIAL INSTRUMENTS (Continued)
Market risk
The Corporation’s activities expose it primarily to the financial risks of changes in foreign currency exchange
rates, interest rates and prices.
Foreign currency risk management
Certain business operations of the Corporation are exposed to risk of foreign exchange rate fluctuation such as
distribution, retail, system integration and software export. Despite the fact that for IT products, foreign exchange
rate fluctuation is reflected into selling price, the Corporation still proactively hedges and mitigates unidentified
risks by closely monitoring principal factors affecting exchange rates as well as taking into account assessments
by big financial institutions, taking appropriate hedging measures such as forward contracts, option contracts
and other natural hedging measures such as fixing selling exchange rates, advance payment and others.
The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities
at the end of the year are as follows:
Unit: VND
Assets
Liabilities
United States Dollar (USD)
Euro (EUR)
Japanese Yen (JPY)
Singapore Dollar (SGD)
31/12/2015
31/12/2014
31/12/2015
31/12/2014
2,339,124,953,902
4,290,685,240,231
789,662,100,983
751,947,302,995
38,814,271,024
14,677,423,763
150,543,970,827
89,076,621,466
193,303,306,462
111,559,790,890
534,644,564,219
499,367,733,911
64,481,616,969
39,420,153,290
141,440,485,866
89,656,703,727
Foreign currency sensitivity analysis
The Company is mainly exposed to United States Dollar, Euro, Japanese Yen and Singapore Dollar.
The following table details the Company's sensitivity to a 5% increase and decrease in Vietnam Dong against
the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally
to key management personnel and represents management's assessment of the reasonably possible change
in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. For a
5% increase/decrease in the following foreign currencies against Vietnam Dong, the profit before tax in the year
would decrease/increase by the following amount:
Unit: VND
United States Dollar (USD)
Euro (EUR)
Japanese Yen (JPY)
Singapore Dollar (SGD)
2015
2014
(77,473,142,646)
(176,936,896,862)
5,586,484,990
3,719,959,885
17,067,062,888
19,390,397,151
3,847,943,445
2,511,827,522
Interest rate risk management
The Corporation has significant interest rate risk arising from interest bearing loans which are arranged. The
Corporation is exposed to interest rate risk as the Corporation borrows funds in VND and foreign currencies at
fixed rates and floating rates. To minimize risks, through analysis and projection, the Corporation has selected
appropriate time and terms in the year to make appropriate decisions on maintaining borrowings as well as debt
structure between VND and foreign currencies at fixed interest rates.
158
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FORM B 09-DN/HN
Market risk (Continued)
Share price risk management
Shares held by the Corporation are affected by market risks arising from the uncertainty about future prices of
such shares. The Corporation manages this risk exposure by setting up investment limits. The Corporation’s Board
of Directors also assesses and approves decisions on share investments such as operating industry, investees, etc.
The Corporation assesses the share price risk is immaterial.
The Corporation is also exposed to equity price risks arising from investments in subsidiaries and associates. The
Corporation’s Board of Directors assesses and approves decisions on investments in subsidiaries and associates
such as operating industry, investees, etc. Investments in subsidiaries and associates are held for long-term
strategic investments rather than trading purposes. The Corporation does not have intention to trade these
investments in the foreseeable future.
Commodity price risk management
The Corporation purchases materials, commodities from local and foreign suppliers for business purpose.
Therefore, the Corporation is exposed to the risk of changes in selling prices of materials, commodities. For risk
mitigation, the Corporation pays due attention to inventory count, ensuring tight and effective management of
inventories from importing stage by evaluating market demand, monitoring inventories on a daily basis to take
proper and timely action on the slow-moving goods.
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the Corporation. The Corporation has set up a constantly and systematically updated internal rating
system in place for assessing and rating customers’ financial capability over time, taking into account the ratings
and assessments by intermediary financial organizations as basis for sales on credit to customers. In addition,
guarantees are required for most of the Corporation’s customers who are granted with sales on credit.
The Corporation monitors its liabilities on an on-going basis, including analysis of aging report and recovery
dates, customer updates and assessment etc. to take proper actions. The Corporation also buys insurance for its
receivables to mitigate unpredictable risks at reasonable cost.
Liquidity risk management
The purpose of liquidity risk management is to ensure the availability of funds to meet present and future
financial obligations. Liquidity is also managed by ensuring that the excess of maturing liabilities over maturing
assets in any period is kept to manageable levels relative to the amount of funds that the Corporation believes
can generate within that period. The Corporation’s policy is to regularly monitor current and expected liquidity
requirements to ensure that the Corporation maintains sufficient reserves of cash, borrowings and adequate
committed funding from its shareholders to meet its liquidity requirements in the short and longer term. The
Corporation has been able to optimize its payments and made use of credit from customers and counterparties
via the central account.
The following table details the Corporation’s remaining contractual maturity for its non-derivative financial
assets and financial liabilities with agreed repayment periods. The tables have been drawn up based on the
undiscounted cash flows of financial assets and undiscounted cash flows of financial liabilities based on the
earliest date on which the Corporation can be required to pay. The inclusion of information on non-derivative
financial assets is necessary in order to understand the Corporation’s liquidity risk management as the liquidity
is managed on a net asset and liability basis.
159
FORM B 09-DN/HN
Liquidity risk management (Continued)
Unit: VND
Less than 1 year
From 1 - 5 years
Total
3,584,709,151,769
-
3,584,709,151,769
Trade and other receivables
5,154,274,387,534
348,027,975,696
5,502,302,363,230
2,617,441,917,720
-
2,617,441,917,720
-
456,471,694,944
456,471,694,944
11,356,425,457,023
804,499,670,640
12,160,925,127,663
31/12/2015
Total
Unit: VND
Less than 1 year
From 1 - 5 years
Total
Loans and obligations under finance leases
8,191,325,008,702
614,354,593,251
8,805,679,601,953
Trade and other payables
3,592,134,230,345
27,232,837,622
3,619,367,067,967
518,769,375,019
-
518,769,375,019
12,302,228,614,066
641,587,430,873
12,943,816,044,939
(945,803,157,043)
162,912,239,767
(782,890,917,276)
31/12/2015
Accruals
Total
Net liquidity gap
Unit: VND
Less than 1 year
From 1 - 5 years
Total
4,336,282,447,769
-
4,336,282,447,769
Trade and other receivables
4,405,162,382,252
318,045,904,998
4,723,208,287,250
1,428,479,061,776
-
1,428,479,061,776
-
558,438,376,194
558,438,376,194
10,169,923,891,797
876,484,281,192
11,046,408,172,989
31/12/2014
Total
Unit: VND
Less than 1 year
From 1 - 5 years
Total
Loans and obligations under finance
leases
6,722,412,217,259
142,418,459,294
6,864,830,676,553
Trade and other payables
3,701,965,935,010
25,406,771,130
3,727,372,706,140
345,478,484,975
-
345,478,484,975
10,769,856,637,244
167,825,230,424
10,937,681,867,668
(599,932,745,447)
708,659,050,768
108,726,305,321
31/12/2014
Accruals
Total
Net liquidity gap
The management assessed the liquidity risk at acceptable level. The management believes that the Corporation
will be able to generate sufficient funds to meet its financial obligations as and when they fall due.
160
ANNUAL REPORT 2015
www.fpt.com.vn
FORM B 09-DN/HN
36. RELATED PARTY TRANSACTIONS AND BALANCES
List of related parties:
Related party
Relationship
FPT Fund Management Joint Stock Company
Associate
FPT Securities Joint Stock Company
Associate
During the year, the Corporation entered into the following significant transactions with its related
parties:
Unit: VND
2015
2014
7,333,333,000
7,333,333,000
Dividends received in cash
As at the balance sheet date, the Corporation had significant outstanding balances with its related
parties, as follows:
Unit: VND
31/12/2015
31/12/2014
134,366,081,776
214,766,081,776
27,500,000,000
27,500,000,000
110,000,000,000
110,000,000,000
Entrusted investments and loans to
Capital contribution
37. SUBSEQUENT EVENTS
According to the Resolution of the Corporation’s Board of Directors No. 01.01 – 2016/NQ-HDQT-FPT dated on 28
January 2016, Mr. Do Cao Bao was appointed as Executive Vice President of FPT Corporation from 15 March 2016.
38. OPERATING LEASE COMMITMENTS
Unit: VND
2015
2014
Within one year
226,161,733,224
159,625,884,014
From the second to fifth year inclusive
347,214,773,635
381,010,195,106
After five years
168,642,274,373
77,875,506,660
742,018,781,232
618,511,585,780
161
FORM B 09-DN/HN
39. CAPITAL COMMITMENTS
As at 31 December 2015, the Corporation had approved the following projects:
162
•
The plan of investment in FPT Digital Retail Joint Stock Company (FRT) with the total amount of VND250
billion. As at 31 December 2015, the Company had contributed VND170 billion in FRT.
•
The plan of construction of FPT office - Phase 1 in Da Nang with the total project investment capital of
VND495,953,272,931.
•
The commitment to invest in Asia - Pacific Gateway Cable Network (“APG Project”) through the business
cooperation contract with Viettel Group (representated by Viettel Telecom - a member of Viettel Group)
and CMC Telecommunication Infrastructure Joint Stock Company. This is the project to build submarine
cable network connecting countries in Asia (including Vietnam, Japan, Hong Kong, China, Singapore,
Malaysia, Taiwan, South Korea and Thailand). Viettel Telecom acts as a representative for other three entities
to participate in this project. Accordingly, the Corporation commits to contributing the total estimated
amount of USD10 million equivalent to 25% the total capital of Viettel Telecom contribution as representative
in this project. Capital contributions will be made according to the progress of the project and Viettel
Telecom’s notification. As at 31 December 2015, the actual contribution of the Corporation to this project
was USD7,511,837 equivalent to VND158,813,175,651.
•
The Corporation is carrying out the construction of FPT Software Park - 2nd Phase located at Lot 3, Hoa Lac
Hi-tech Park with the total estimated investment capital of approximately VND271,148,000,000 (including
10% VAT) under Decisions No. 26-2014/QD-FPT-TGD dated 29 April 2014 and No. 4424/2014/QD/FSOFTFID by the Chairman of FPT Software Company Limited dated 07 November 2014. As at 31 December
2015, the Corporation had recorded construction in progress with a carrying value of approximately
VND52,637,529,278 (31 December 2014: VND6,709,617,336).
•
On 25 February 2015, the Corporation entered into a comprehensive cooperation agreement with the Tien
Phong Commercial Joint Stock Bank for supporting students who joined the training courses under the
10,000 Bridge Software Engineer program which is held for the period from 2015 - 2020. In this program,
approximately 5,000 students will be trained in Japan within 6 -12 months and 5,000 students trained in
Vietnam. The students who participate in this training course in Japan will be rewarded financial guarantee
by the Corporation equivalent to 90% of their total credit obligations arising at the Bank, with a maximum
credit limit of VND400 million. The agreement will come into effect from the date of signing until mutually
terminated by both parties. As at 31 December 2015, the number of students participating in the program in
Japan are about 256 people, and the total estimated guarantee amount is VND53,289,180,000, respectively.
ANNUAL REPORT 2015
www.fpt.com.vn
163
FORM B 09-DN/HN
Provision for short-term doubtful debts
Short-term prepayments
Long-term trade receivables
Other long-term receivables
Provision for long-term doubtful debts
Other long-term investments
Provision for impairment of long-term
financial investments
6.
7.
8.
9.
10.
11.
12.
13.
16.
15.
14.
Advances to suppliers
Receivables from contracts under (percentage) of completion method
Other receivables
4.
5.
Trade accounts receivables
3.
No corresponding item
Short-term investments
Provision for impairment of short-term
investments
1.
2.
Assets
I.
Item
268
71,299,080,943
523,437,534,683
(157,744,965,065)
259
261
703,175,738,859
-
-
-
31,785,859,896
592,435,044,749
(295,455,551,048)
258
219
218
211
158
151
139
401,395,904,525
522,982,860,079
134
135
400,189,196,061
132
4,005,225,417,438
(9,405,497,120)
129
131
1,450,892,161,296
31/12/2014
VND
121
Codes
According to Decision 15/2006/QD-BTC
15.
14.
13.
12.
11.
10.
9.
8.
7.
6.
5.
4.
3.
2.
1.
I.
Item
Provision for impairment of long-term
financial investments
Provision for long-term doubtful debts
Other long-term receivables
Long-term trade receivables
Short-term prepayments
Provision for short-term doubtful debts
Short-term advances to suppliers
Receivables from contracts under
percentage of completion method
Other short-term receivables
Short-term trade receivables
Assets
268
-
518,808,795,715
(167,150,462,185)
254
261
725,588,838,379
(52,372,482,637)
128,140,867,635
242,327,520,000
-
592,794,479,662
(243,083,068,411)
253
219
216
211
155
151
137
380,809,281,784
366,338,086,216
134
136
399,989,196,061
3,919,542,671,301
1,428,479,061,776
31/12/2014
VND
132
131
123
Codes
According to Circular 200/2014/TT-BTC
Reclassified
Reclassified
Reclassified
Reclassified and changed name
Reclassified
Reclassified
Reclassified
Reclassified
Reclassified
Reclassified
Reclassified
Reclassified
Change
As described in Note 03, from 01 January 2015, the Corporation has adopted Circular No. 200/2014/TT-BTC issued by the Ministry of Finance dated 22 December 2014 ("Circular
200"), provides guidance on the accounting for the business. Accordingly, some comparative figures (figures at 31 December 2014) on the consolidated balance sheet, consolidated income statement and consolidated cash flow statement have been reclassified to conform with the data of this year, as follows:
The comparative figures of the consolidated financial statements for the financial year ended as at 31 December 2015 are the figures of the audited consolidated financial statements for the year ended 31 December 2014.
40. COMPARATIVE FIGURES
164
ANNUAL REPORT 2015
www.fpt.com.vn
Short-term provisions
Charter capital
Financial reserve fund
11.
12.
Long-term provisions
10.
418
411
337
87,203,093,024
3,439,766,000,000
12,905,000
142,418,459,294
14.
13.
12.
11.
Other reserves
Owner’s contributed capital
Long-term provisions
420
411
342
332
318
321
319
338
334
986,180,133,343
7.
315
Long-term loans and obligations under
finance leases
Long-term loans and liabilities
9.
338
32,252,745,918
6.
Short-term accrued expenses
314
336
Unearned revenue
8.
320
177,252,587,439
5.
Payables to employees
312
Long-term unearned revenue
Short-term provisions
7.
319
517,896,927,838
4.
Short-term advances from customers
311
10.
6.
316
647,441,848,103
3.
Short-term trade payables
320
Accrued expenses
5.
315
478,420,174,874
2.
Short-term loans and obligations under
finance leases
Long-term advances from customers
Payables to employees
4.
313
3,018,857,084,191
1.
Resource
Codes
9.
Advances from customers
3.
312
6,722,412,217,259
II.
Item
Trade accounts payables
2.
311
31/12/2014
VND
Short-term unearned revenue
Short-term loans
1.
Codes
31/12/2014
VND
87,203,093,024
3,439,766,000,000
7,613,986,577
142,418,459,294
24,528,504,548
54,437,517,680
961,651,628,795
24,651,664,341
347,704,447,655
345,478,484,975
726,051,812,032
347,339,275,912
3,018,857,084,191
6,722,412,217,259
8.
Resource
II.
CONSOLIDATED BALANCE SHEET(Continued)
Item
40. COMPARATIVE FIGURES (Continued)
Reclassified
Reclassified
Changed name
Reclassified
Changed name
Reclassified
Reclassified
Reclassified and changed
name
Reclassified
Reclassified
name
Reclassified
name
Changed name
Changed name
Change
FORM B 09-DN/HN
165
Selling expenses
Other income
Other expenses
Basic earnings per share
2.
3.
4.
5.
(Gain) from investing activities
2.
03 March 2016
Nguyen Tien Hao
Preparer
Share of profit from associates
1.
Cost of sales
1.
Item
05
70
32
31
25
11
Codes
2014
VND
1.
5.
4.
3.
2.
1.
Item
(Gain) from investing activities
Basic earnings per share
Other expenses
Other income
Selling expenses
05
70
32
31
25
11
Codes
2014
VND
Reclassified
Reclassified
Restated
Restated
Restated
Restated
Restated
Change
FORM B 09-DN/HN
Nguyen The Phuong
(405,697,530,891)
3,723
96,627,048,433
166,755,638,459
1,617,818,952,335
26,456,135,040,231
Cost of sales
Hoang Huu Chien
Chief Accountant
(372,811,060,784)
(32,886,470,107)
4,746
123,533,340,100
193,661,930,126
1,702,757,995,648
26,371,195,996,918
40. COMPARATIVE FIGURES (Continued)
COMPANY DIRECTORY
FPT CORPORATION
Head office: FPT Building, Duy Tan Street, Dich Vong Hau Ward,
Tel: +84 4 7300 7300
Fax: +84 4 3768 7410
Website: : http:// www.fpt.com.vn
Da Nang Representative Office
Address: 173 Nguyen Chi Thanh, Hai Chau District, Da Nang City
Tel: +84 903 441 333
Ho Chi Minh City Branch
Address: Floor 3-4, FPT Tan Thuan Building, Lot L29B-31B-33B, Tan Thuan
Street, Tan Thuan Dong Ward, District 7, Ho Chi Minh City (HCMC)
Tel: +84 8 7300 7300
Fax: +84 8 7300 7388
Can Tho Representative Office
Address: 69 Hung Vuong, Thoi Binh Ward, Ninh Kieu District, Can Tho City
Tel: +84 0710 3752666
Fax: +84 0710 752555
SUBSIDIARIES
FPT Information System
Addrees: Floor 22, Keangnam Building, Pham Hung Road,
Nam Tu Liem District, Hanoi
Tel: +84 4 3562 6000
Fax: +84 4 3562 4850
Website: http://www.fis.com.vn/
Charter capital: VND850,000,000,000
FPT Education
Address: FPT University, Education and Training Zone – Hoa Lac Hi-tech Park,
Km29, Thanglong Freeway, Thach That District, Hanoi
Tel: +84 4 6291 4068
Fax: +84 4 3768 7718
Website: http://www.fpt.edu.vn
FPT Trading
Address: Floor 2, Zodiac Building, Duy Tan Street,
Dich Vong Hau Ward, Cau Giay District, Hanoi
Tel: +84 4 7300 6666
Fax: +84 4 3795 9050
Website: http://phanphoi.fpt.com.vn/
FPT Online
Address: Floor 2, FPT Tan Thuan Building, Lot L29B-31B-33B, Tan Thuan Street,
Tan Thuan Dong Ward, District 7, Ho Chi Minh City (HCMC)
Tel: +84 87300 9999
Fax: +84 8 7300 9998
Website: http://www.fptonline.net
FPT Software
Address: Floor 6, FPT Building, Duy Tan Street,
Tel: +84 4 3768 9048
Fax: +84 4 3768 9049
Website: http://www.fpt-software.com
FPT Retail
Address: 261-263 Khanh Hoi, Ward 5, District 4, Ho Chi Minh City
Tel: + 84 8 3834 5837
Fax: + 84 8 3834 5839
Website: http://fptshop.com.vn
FPT Telecom
Address: Floor 5, PVI Building, No.1 Pham Van Bach Street,
Tel: +84 4 7300 2222
Fax: +84 4 3795 0047
Website: http://www.fpt.vn
Charter capital: VND1,246,198,090,000
FPT Investment
Address: FPT Building, Duy Tan Street, Dich Vong Hau Ward,
Tel: +84 4 7300 7300
Fax: +84 4 3768 7410
Website: http://www.fpt.com.vn
FPT GLOBAL
JAPAN
Head office
Address: 6th Floor, CROSS PLACE Building, Hamamatsu-cho, Shiba Park 1-7-6,
Minato-ku, Tokyo, Japan
Tel: +81 3 66346868
Fax: +81 3 66346869
Representative offices
Osaka
Address: Chiyoda Building, East tower 10F, 2-9-4 Higashi Tenma, Kita-ku,
Osaka-shi, Osaka-fu 530-0044, Japan
Tel:+81 6 6356 1005
Fax:+81 6 6655 1166
Nagoya
Address: 33 Sobajima Daini Noritake Building 1-9-9, Noritake, Nakamura-ku,
Nagoya-shi, Aichi Pref, 453-0014, Japan
Tel: +81 5 2453 1013
Fax: +81 5 2453 1014
THE UNITED STATES
Head office
Address: 801 East Campbell Rd., Suite 525, Richardson, Texas 75081, USA
Tel: +1 214 253 2662
Fax: +1 214 253 2988
Representative offices
New York
Address: 1385 Broadway, Suite 912, New York, NY 10018, USA
Tel: +1 212 418 4793
Los Angeles
Address: 801 Parkview Drive North, Ste#100, El Segundo, CA 90245, USA
Tel: +1 424 336 9888
Bellevue
Address: 13920 SE Eastgate Way, Suite 140, Bellevue, WA 98005, USA
Tel: +1 425 590 9125
SINGAPORE
Head office
Address: 8 Kallang Avenue, 12-09 Aperia Tower 1, Singapore 339509
Tel:+65 6338 4353
Fax:+65 6338 1987
FRANCE
Address: Tour Pacific, 11-13 Cours de Valmy, Defense 7, 92977 Paris La
Defense, France
Tel: +33 1 7329 4749
Fax: +33 1 7329 4500
AUSTRALIA
Address: Level 13, 2 Park Street, Sydney NSW 2000, Australia
Tel: +61 2 9004 7160
Fax: +61 2 9004 7070
MALAYSIA
Address: Suite 9.06, level 9, The Gardens North Tower, Mid Valley City,
Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia
Tel: +60 3 2287 8086
Fax: +60 3 2287 7086
GERMANY
Address: Business-Center Dornhofstrasse 34, 63263 Neu-Isenburg,
Frankfurt, Germany
Tel: +49 6 102 812 534
Fax: +49 6 102 299 938
CAMBODIA
Address: 49, Street 306, Sangkat Boeung Keng Kang 1, Khan Chamka Morn,
Phnom Penh, Cambodia
Tel: +855 236 877 779; +855 236 336 236
Fax: +855 236 877 778
LAOS
Address: 61, Unit 03, Dongpalane Street, Sisattanak District, Vientiane,
Lao PDR
Tel: +856 209 396 465; +855 976 869 160
Renton
Address: 901 Powell Avenue SW, Suite 111, Renton, WA 98057, USA
Tel: +1 650 931 7246
MYANMAR
Address: 60/A Pyidaungzu Yeikthast, Dagon tsp, Yangon, Myanmar
Tel: +95 1 218 223; +95 1 1221 668
Fax: +95 1 218 224
Silicon Valley
Address: 830 Stewart Dr, Suite 246, Sunnyvale, CA 94085, USA
Tel: +1 408 786 7621
FPT SLOVAKIA S.R.O
Address: Južnátrieda 6, Košice 040 01, Slovakia
Email: fger.contact@fsoft.com.vn
FPT CORPORATION
Head office: FPT Building, Duy Tan Street,
Tel: +84 4 7300 7300
Fax: +84 4 3768 7410
www.fpt.com.vn

DELIVERING GROW TH

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