Press release: FPT earned VND 25,350 billion in revenue and VND 2,405 billion in profit in 2012

2012 was truly a challenging year for the domestic economy. The Gross Domestic Product (GDP) grew only 5.03%, lowest in the past thirteen years. Drastically decreased market demand and continuous difficulties have led to sudden increase of bankcrupcies. Poor performance of marcroeconomic management has negatively affected almost economic sectors including Information Technology and Telecommunications.

Nevertherless, FPT Corporation, by reasonable direction and effort, has overcome the challenging 2012 with the revenue of VND 25,350 billion, which is equal to more than USD 1.2 billion. Profit before and after tax were VND 2,405 billion and VND 1,985 billion, respectively. Profit after tax of parent company reached VND 1,539 billion, earning 5,660 dongs per share. In 2012, the Company paid more than VND 3,717 to the state budget.

FPT’s core businesses such as Telecommunications, Content, Software, IT Services and Training have sustained positive growth rate. In 2012, the revenue from these lines increased by 25% and profit before tax by 28%. Especially the Software Outsourcing grew by 34% thank to its strategy to promote business in oversea market in the difficult context of the domestic environment. The company’s System Integration and Distribution still well maintained their position despite market challenges.

At the end of 2012, there were 15,000 emloyees working for the company, an increase of 24% compared to 2011. The increased number was mainly in software outsourcing to meet the growing demand of this business in 2012 and be ready for opportunities in 2013.

ACTIVITY HIGHLIGHTS IN 2012

In 2012, FPT gained various achievements in perquisite plans for boosting growth. The Company approved a dedicated budget for R&D activities, which would account for 5% of its pretax profit. The Department for Technology Development was also established to promote technological researches throughout the company. In addition, each business lines achieved positive results in terms of operation and management, facilitating growth for the following years.

1. Software development:

a. Software outsourcing

In 2012, FPT started providing new services such as Mobility, Cloud Computing, BPO, and Semiconductor to keep pace with new technology trends of the world.

FPT Software continued to be honored as “The leading software outsourcing and service provider in 2012” and received the “Medal for software outsourcing in 2012” by Ho Chi Minh City Computer Association. Particularly, the company entered the Top 100 Global Services Provider listed by the Global Services (India) and NeoGroup (USA).

In November 2012, the Software Outsourcing welcomed its 4,000^th member.

b. Software development for domestic market

FPT IS was the only company representing Vietnam in the ASEAN ICT Award 2012 and its FPT.eHospital software won Gold Prize for IT Solution for Private sector and FPT.eGov the Silver for Public sector. These notable prizes have facilitated the introduction of these products to the ASEAN regional market.

The FPT.eGOV has been applied widely in administrative operation of more than 600 state agencies in 22 provinces and cities while the FPT.eHospital has been used by more than 50 big hospitals in Vietnam, serving approximately 75,000 out-patients and 50,000 in-patients everyday.

In 2012, FPT continued to confirm its No. 1 position in Vietnam in implementing significant, large and complicated contracts for the government and enterprises.

o For more than three years, the Personal Income Tax Management Project (PIT) has completed its implementation phase for all the tax departments and offices in 63 provinces and cities throughout the country. All the 700 tax agents have officially operated on this application.

o The Treasury and Budget Management Information System (TABMIS) Project was accepted and handed over in March 2012. For more than 4 years, FPT has completed the biggest and most challenging part of the project to massly implement the TABMIS for more than 1,500 agencies and organizations and provided training services for approximately 10,000 end-users in 63 provinces and cities throughout the country.

o For three years from the signing date of the record ERP contract worth USD 12 million, the ERP Petrolimex is progressing to the destination. In January 2013, the last mass implementation in the Southwest region marked the final success of the entire project, officially completing its components in the Petrolimex holding company and its 42 subsidiaries with more than 100 implementation locations.

o The Centralized Issuance and Management of Budget and Treasury for the State Bank of Vietnam (CMO) Project was successfully implemented within nearly two years. As this is the first centralized system of the State Bank and the solution is packaged, there were numerous changes and customizations regarding professional processes, methodologies and even user interface. This was also the project that had applied new implementation model with more than 70 locations nation wide in only 65 days.

2. System integration

The system integration was also recognized for significant achievements in 2012 in terms of contract scope and complexity.

- Providing Core application for the Social Insurance . On December 3, 2012, FPT IS was announced winner of the EPC project “Software for Management of Professional Operation of the Vietnam’s Social Insurance” worth VND 83 billion. The company would develope the system basing on SAP platform, which had been proven safe, secured and capable of processing huge data in the PIT project. The system would be able to manage 55 million insured people across the nation. It is expected to be implemented in eighteen months and completed by mid 2014.

- Building data center for the General Statistic Office of Vietnam . Following FPT IS’s successful implementation of the 2009 Population and Housing Census, the General Statistic Office decided to assign the company to build its data center. On December 13, 2012, the project “GSO5.2a: Building Data Center and Internal Portal for the Statistic Office” was officially launched. FPT IS has employed Microsoft’s state-of-the-art technology platform and a number of cloud-based products to build the Data Warehouse. FPT IS expects to continue proving its proactiveness and capability to develop solutions to process big data to keep pace with the Big Data trend of the IT industry.

- Globalization: In Lao market, FPT IS has successfully implemented the core banking project for Lao Viet Bank. This is also a big project primed by FPT IS, which hardware and software components value USD 4.3 million. The project’s success has confirmed the prestige and reputation of FPT in the Lao market. Another notable project being implemented is “Building the bill managmenet system” for Lao Tax Department and three tax offices in Vientiane, Luang Prabang and Savanakhet. This project is expected to complete in early 2013.

In the new market, FPT IS has assigned its sale representative in Myanmar and won two contracts to implement FPT.iSMSGW (SMS Gateway) and Media Gateway for Myanmar Post and Telecommunications.

- Starting to provide ERP solution for SMEs: In July 2012, FPT IS officially provided the SAP Business One, the Enteprise Resources Planning solution for small and medium enterprises. This is an SAP compact solution affordable for Vietnamese SMEs. In the first five months, revenue from this service was estimated at 17 billion dongs.

3. IT Services

The year 2012 also confirmed electronic service as a strategic business line of FPT IS with impressive figures: 80,000 FPT-CA subscribers, and over 6,000 companies using electronic customs and tax services.

FPT-CA has well maintained its No.1 position in providing certificate authority services with high quality and professional procedure. The revenue from this service increased extraordinarily by 500% to reach VND 32 billion.

In July 2012, FPT IS also established E-Customs FCS Company to participate into the collection of customs declaration fee. The company is promoting its service deliverables, developing agent system and step by step professionalizing its supporting procedure to provide services in the quick, convenient and effective manner.

4. Telecommunications

FPT Telecom presents in 46 provinces and cities: In 2012, FPT Telecom opened ten more branches to increase the total number of provinces it has been expanding infrastrucute to 46.

Completing the North-South back-bone cable system: FPT has completed and starts to exploit its North-South back-bone cable system from Lang Son to Ca Mau, which was designed to reach the transmitting speed of 4 terabit per second with the total length of 4,000 kilometers of interprovincial cables through 30 provinces and cities. Once completed, FPT Telecom would be able to provide value added services of high quality to the customers .

Cooperating to build the Asia-Pacific Gateway - APG: In 2012, the Prime Minister of Vietnam approved the proposal to invest in the Asia-Pacific Gateway (APG) submitted by the joint venture Viettel, FPT Telecom and CMC TI. APG is the largest optical cable system, which connect directly to big economies in the region such as China, Japan, Taiwan and Hong Kong. The system’s total length is 8,000 km, ranging from South Korea to Malaysia with initial speed of 4 Tbps. This is also crucial backup route for existing international system such as IA, AAG…

Developing FPT Play HD: The smart entertaining equipment FPT Play HD is the modern entertainment integrated service, offering a media store of numerous Full HD 1080p movies, music and TV shows with the resolution of five times higher than normal DVD player and a vivid 5.1 sound system.

5. Digital content

In 2012, FPT Online completed a number of technology infrastructure to increase user community and boost growth, including:

- Adnetwork: the outstanding product is the smart advertising network eClick, which was developed to convey ad message to the right audience in automatic, accurate and effective manner.

- E-commerce website Sendo.vn: is an onine shopping center developed in B2C2C (business-to-consumer-to-consumer) model. The Sendo.vn aims to create the most reliable online shopping center with the most trading volume in Vietnam.

- Completing the new Portal interface for Vnexpress.net: with new tabs for Entertainment, Family-Healthcare, Library, etc., the new portal interface is designed for not only PC screen but also tablet, Internet-connected TV, and smartphone. Recently, the page counts 30 million page views each day.

FPT is currently the No.1 online advertiser, accounting for 50% of the market share and one of the Top 3 online game providers in Vietnam.

6. Education

For FPT University, 2012 was the year of significant development.

- Bringing Hoa Lac facility into operation: In May 2012, FPT University’s primary facility in Hoa Lac Hi-tech Park officially came into operation on the total in use area of 30 hectares and VND 2,696 billion of investment. In general design, the University comprises seven major buildings for: study and research, student dommitory, apartment for lecturers, administrative activities, physical training, laboratories and other purposes, and green park. The university’s facility in Hoa Lac once completed would be a small residential place to provide sufficient services and utilities to meet the requirements of 25,000 students.

- Receiving 3- star certificate by the QS Stars: In November 2012, FPT became the first university in Vietnam to receive the three-star certificate (***) by the QS Stars – one of the three most prestigious university ranking standards in the world.

- Becoming visiting destination of major IT competitions and world-class professors and researchers. In August 2012, FPT students were excited to welcome Prof. Dr. Hiroshi Ishiguro who is honored as one of 100 living talents of the world and watch the performance of Android- operated robots controlled by this genious professor in his world tournament. Vietnam is the first country in the Southeast Asia to welcome him . Previously, the university had received Prof. Trinh Xuan Thuan, one of the world’s leading astronomers to share his passion in astrology.

In 2012, FPT University was also the host of the online national ground of the ACM/ICPC competition, marking significant improvement when the Vietnam’s ACM/ICPC was organized online for the first time.

Winning numerous prizes and affirming position in IT training in Vietnam: in 2012, FPT won numberous prizes for training activities and victories in IT competitions including: two Sao Khue awards for Academic and Non-academic IT Training; championshiop of the Vietnam ACM/ICPC 2012; Second Prize of the Imagine Cup 2012 hosted by Microsoft; and First Prize of the Creative Summer 2012…

FPT University is also the first and the only university in Vietnam to be honored the University with the most excellent performance in IT competitions by the Ministry of Education and Training.

- Lao Deputy PM Somsavat Lengsavad agreed to give 30 hectares of land for FPT University in Vientiane during his visit to the university’s facility in Hoa Lac last December. The university’s education expansion in foreign countries is a part of its globalization strategy. If succeed, this project can be considered a new direction for Vietnamese education to improve training quality and export university education in the future.

- Go Global strategy: FPT University has officially implemented the Go Global strategy with the admission of foreign students as well as promoting cooperation and academic student exchanging activities. FPT students, therefore, have opportunities to study in Germany, Netherland, France, France, Japan and Singapore…

This was also the first year FPT University had implemented oversea English study program for its students. 37 FPT students had participated and completed this English course with optimistic result and high evaluation of counterpart university in the Philipines.

- The total number of students exceeded 15,000. As estimated by the alumi management department, 100% of FPT University graduates were able to find a job in the first year with starting salary of 7.2 million dongs per month on average or continue their higher education. This figure has come up with the expectation of a new training model, where the university and the company share a common vision to train high quality human resources for the society.

7. Distribution

- Exclusive distribution of Lenovo mobile phone in Vietnam: On December 8, 2012, FPT Trading and Lenovo Mobile Communication Technology Ltd signed the cooperation agreement to exclusively distribute Lenovo Smartphone in the Vietnamese market. This has marked a new turning point of FPT Trading in its effort to expand the distribution of hi-end products in Vietnam.

- FPT to distribute Nokia products in larger area: Nokia declared that commencing on August 5, 2012, FPT would distribute its mobile phone in the North and Northen Central of Vietnam.

- Participating in the distribution of electronic and household appliance: On January 1, 2012, the FPT Consumer Electronics Center, or FCE in short, a member of FPT Trading was officially established. FCE is responsible for trading and distributing electronic and household appliances and other new products.

In 2012, the Center was exclusively authorized to distribute some products by Panasonic and Syabas (USA), a world’s leading vendor of Set Top Box and HD Media Player such as Popcorn Hour, Popbox in the Vietnamese market.

8. Retail

- FPT Retail successfully realized its plan to open new shops in 2012: by early December 2012, FPT Retail JSC significantly reached the milestone of possessing fifty shops across the nation. The company has been planning to expand its coverage since early 2012 to the provinces of Dak Lak, Binh Duong, Hue, Can Tho, Gia Lai, Vinh, Phan Thiet, Hue, Bac Lieu, Ca Mau… It expects to open sixty more retail shops to increase the total number of shops to 110 in 2013.

- Opening the first F.Studio, upgrading Apple retailing system in Vietnam: In 2012, FPT Retail JSC. officially opened the first Apple’s authorized shop named F.Studio at 1F, Indochina Plaza - 239 Xuan Thuy, Cau Giay, Hanoi and 121 Le Loi, district 1, HCMC.

FPT Retail also changed the brand name of the retailing system of Apple products in Vietnam from iStore Premium to F.Store. Accordingly, the Apple’s authorized retailing system by FPT includes F.Store and F.Studio in Ho Chi Minh City and Hanoi respectively.

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