IR To Maximize Shareholder Value by Giving Investors a Thorough Picture of FPT's Business Activities

Business performance, long-term strategies of the Corporation, and the global information technology (IT) industry's trends, potentials, and opportunities are among the critical information that FPT proactively gives its shareholders and investors. Entire information helps them better understand the overall picture to make informed and opportunely investment decisions.

FPT has been recognized as one of the Top 3 Large Caps with the most favored IR activities by investors and the Top 3 Large Caps with the highest-rated IR activities by financial institutions in 2023.
After a comprehensive evaluation of information disclosure activities, IR (Investor Relations) scoring from leading financial institutions, and investors' voting, the 2023 IR Awards selected outstanding organizations with the best IR activities to honor.

FPT stands out with a double title in the Top 3 Large Caps with the most favored IR activities by investors and the Top 3 Large Caps with the highest-rated IR activities by financial institutions in 2023.
In order to reveal the role and significance of IR activities in FPT, the author had a small conversation with Ms. Mai Thi Lan Anh - Deputy Director of Marketing and Communications, also the Authorized Person for Information Disclosure at FPT.

Ms. Mai Thi Lan Anh - Deputy Director of Marketing and Communications, also the Authorized Person for Information Disclosure at FPT

FPT had various talks and meetings with Vietnamese and foreign investors in 2022. How do you choose the timing for these events and information disclosures?

FPT organizes over 100 meetings and private talks with domestic and international investors every year. Some are scheduled regularly, while others are organized to meet the specific needs of investors. We also actively engage in events hosted by securities companies and investment funds to provide multidimensional and timely information to investors.

IR meetings and disclosure activities always adhere to the principles of clarity, promptness, totality, and accuracy. It has helped FPT consistently achieve a maximum score of 100% in the information disclosure and transparency category evaluated by the Ho Chi Minh Stock Exchange (HoSE).

Currently, foreign shareholders own 49% of FPT's capital. How does the IR activity of the Corporation differ for foreign and domestic shareholders?

Investors and shareholders are vital factors of the Corporation. In any context, FPT always strives to ensure the rights of shareholders by sharing information timely and transparently without discrimination based on ownership ratio, composition, geography, etc. Besides information published widely in the media, FPT has different approaches and interactions to meet the needs and expectations of each shareholder group.

FPT's foreign shareholders are primarily institutions. For this group, the company organizes regular or direct one-on-one meetings, with the participation of FPT's top leadership of the Corporation and subsidiaries, to share strategies and quarterly business results. Besides, FPT attends major investment conferences organized by securities companies and investment funds to give details about the Corporation's operations and growth perspectives to existing or potential shareholders.

As for domestic shareholders, mainly individuals, apart from participating in seminars specifically for individual investors, FPT directly sends them business result reports via email monthly and quarterly.

The Corporation also provides details related to strategic directions, business results, cooperation contracts, etc., on media and the official website so that investors can easily access exact and up-to-date information.

These activities have set the solid foundation for FPT to stand among the top companies for seven consecutive years in terms of information disclosure standards, being in the Top 3 Large Caps most favored by investors and the Top 3 Large Caps highly rated by financial institutions at the IR Awards 2023 program organized by Vietstock, VAFE Association, and FiLi magazine.

The IR department should include key corporate leaders to provide the overall picture and build trust with shareholders (that they are hearing from one of the highest-ranking personnel of the Corporation). Please share your point of view on this perspective.

The effectiveness of IR activities largely depends on the leadership team's level of awareness and commitment. At FPT, all top executives on the Board of Directors (BOD) and the Board of Management (BOM) of the Corporation and subsidiaries are fully aware of the importance of IR. They always share detailed information in the most precise and opportunely manner.

All meetings with investors and shareholders involve the participation of the top executives of FPT and its subsidiaries. We are willing to respond to the issues raised by all investors and shareholders regarding market trends and development strategies, as well as business operations, governance, personnel, and technology, through media or at investor meetings, analyst meetings, relevant workshops, and forums.

The BOM also directly oversees the activities of the IR Department.

What are the challenges in the process of implementing IR activities of FPT?

One of the influential difficulties is ensuring the fullness, accuracy, and promptness of information. With 08 direct subsidiaries, 72 indirect subsidiaries, 09 affiliated companies, and 350 separate accounting books divided into six levels, FPT's global operations make synthesizing data for monthly and quarterly reports an enormous challenge that consumes a significant amount of resources. Previously, we had to maintain multiple ERP systems and different software to serve daily accounting entries.

However, in the last five years, due to digital applications, FPT has operated on real-time data, allowing the leadership to quickly grasp all business performance to complete business reports and financial reports faster, more accurately, and earlier. FPT has developed its solution for consolidating financial reports, called FPT CFS, which has been applied to FPT Corporation since 2019.

FPT CFS has helped the Corporation, its subsidiaries, and branches of subsidiary units, both domestically and internationally, seriously reduce pressure in preparing separate and consolidated financial reports. The system automates up to 99% of preparing and consolidating financial reports (balance sheets, income statements, cash flow statements, financial report disclosures), saving considerable time in completing and releasing reports.

Currently, FPT only needs one accountant to do financial consolidation of the whole organization and oversee the consolidation tasks of subsidiaries and other business units. It is one of the companies that submit financial reports earliest in the VN30 list.

Please share more about the digital transformation for FPT's IR activities.

Digital transformation has been deeply integrated into FPT's IR activities to provide information to investors more quickly, conveniently, and effectively. Specifically, in the last three years, FPT has increased the number of meetings with investors in an online format, implemented the annual report on a digital platform with chatbot integration, and utilized AI to organize the Annual General Meeting of Shareholders to enhance the investor experience. In fact, our investors and shareholders prefer meetings virtually over in-person.

In addition to business performance, what information does FPT want to convey to shareholders to help them know more about the Corporation?

Alongside business results, long-term strategies of the Corporation, the global information technology (IT) industry's trends, potentials, and opportunities are among the essential information that FPT proactively gives its shareholders and investors. This information helps them better understand the overall picture to make informed and timely investment decisions.

Information about technological capabilities, human resources, corporate governance, and business experience is also shared with investors in meetings, articles, and media interviews.

All pieces of information have given investors and shareholders a comprehensive and holistic view of our business in all areas (from technology and telecommunications to education) and all aspects of our operations (from management to personnel and technology).

What do you find most admirable about FPT's Environmental, Social, and Governance (ESG) activities?

The ESG orientation and priorities are a significant part of FPT's development strategy, reflecting its responsibility to key stakeholders.

One of the values we are proud of is ensuring human sustainability. People are the most valuable asset of FPT. We always emphasize the importance of our employees in sustainable development. FPT's management and human resources development activities focus on diversity, equality, and harmony. We create learning and promotion opportunities as well as continuously enhance remuneration and welfare policies for employee's physical and mental health care.

In particular, FPT desires and implements activities to create a joyful workplace for all employees, regardless of age, gender, race, or nationality.

The continuous efforts in FPT's human resources activities have also been recognized through reputable awards from global organizations. Most recently, with nearly 90% positive evaluations from employees, FPT received the Great Place To Work award for the "Excellent Workplace" title. Employees rated FPT's workplace highest in the fairness index, friendly environment, employees' pride index in the collective, bonding index, and satisfaction index with leadership.