2013

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED (02618.HK) 2013 Annual Results Presentation Hong Kong, 24 February 2014

AGENDA

BUSINESS REVIEW & OUTLOOK

FINANCIAL HIGHLIGHTS

Q & A

2

BUSINESS REVIEW & OUTLOOK

3

•Sales volume: 55.2 million units, up 30% YoY (including 17.6 million smartphone units, up 169% YoY)

•Revenue: HK$ 19.4 billion, up 61% YoY

•Full Year Net Profit: HK$ 316 million

•Q4 Net Profit: HK$ 302 million (Record high)

•Basic EPS/(LPS): Increased to 27.50 HK cents from -18.49 HK cents YoY

•Proposed Final Dividend: 10 HK cents

2013 ANNUAL RESULTS

2013 OVERVIEW

•Ranked the 5th global handset manufacturer and was No. 1 among Chinese handset players in Q4 (Source: Gartner)

•Delivered breakthrough in smartphone transition. Smartphone sales accounted for one-third of total sales by volume ratifying the successful transition from feature phones to smartphones

•Product mix continued to improve. Newly launched advanced smartphones were well received in markets. Achieving economy of scale in smartphone sales volume drove up margins since Q2

•Smooth relocation of world-class global manufacturing facility in Q3 with maximum annual capacity of 100-120 millions units for paving the future growth

BUSINESS OVERVIEW

4

INDUSTRY RANKING NO. 5 GLOBAL HANDSET MANUFACTURER, NO. 1 CHINESE PLAYER

RANK COMPANY Q4 2013 SHIPMENTS (M UNITS)

Q4 2013 MARKET SHARE (%)

QoQ GROWTH RATE (%)

YoY GROWTH RATE (%)

1 Samsung 119.2 24.3 +1.8 +11.5

2 Nokia 63.6 13.0 +0.8 -25.3

3 Apple 50.2 10.2 +65.6 +15.6

4 LG 18.4 3.7 +1.8 +22.6

5 TCL-ALCATEL 17.6 3.6 +32.0 +58.3

6 Huawei 17.3 3.5 +27.7 +26.7

7 ZTE 16.3 3.3 +19.1 +1.0

8 Lenovo 13.6 2.8 +4.2 +63.2

9 Sony 10.4 2.1 +6.4 +30.6

10 Coolpad 8.4 1.7 -4.4 +36.2

Others 155.3 31.8 +0.2 -1.8

TOTAL 490.3 100.0 +7.6 +3.9

TOP-10 CELL PHONE BRANDS IN Q4 OF 2013 (Source: Gartner) (RANKING BY UNIT SHIPMENTS IN MILLIONS)

5

•Gartner: TCL Communication has strong relationship with carriers, especially in LATAM; it also had success in EMEA with its launch of new products.

INDUSTRY RANKING NO.10 GLOBAL SMARTPHONE MANUFACTURER

TOP-10 SMARTPHONE BRANDS IN Q4 OF 2013 (Source: Gartner) (RANKING BY UNIT SHIPMENTS IN MILLIONS)

6

RANK COMPANY

Q4 2013 Q4 2013 QoQ YoY

SHIPMENTS MARKET SHARE GROWTH RATE GROWTH RATE

(M UNITS) (%) (%) (%)

1 Samsung 83.3 29.5 +3.7 +29.2

2 Apple 50.2 17.8 +65.6 +15.6

3 Huawei 16.1 5.7 +37.6 +85.3

4 Lenovo 12.9 4.6 +0.1 +63.1

5 LG 12.8 4.5 +6.4 +59.5

6 ZTE 11.2 4.0 +21.9 +34.3

7 Sony 10.3 3.6 +8.6 +45.0

8 Coolpad 8.4 3.0 -1.0 +43.4

9 Nokia 8.2 2.9 -3.9 +15.6

10 TCL-ALCATEL 7.4 2.6 +58.9 +253.8

Others 61.5 21.8 -1.7 +37.7

TOTAL 282.3 100.0 +12.8 +35.9

AMERICAS 51% EMEA

35%

APAC 10%

CHINA 4%

APAC 6%

CHINA 9%

AMERICAS 41%

EMEA 44%

FEATURE PHONES & OTHER PRODUCTS SMARTPHONES & OTHER SMART DEVICES

GEOGRAPHICAL REVENUE BREAKDOWN

7

REGIONAL BUSINESS REVIEW

EUROPE, MIDDLE EAST

AMERICAS

4.5 7.8

0.0

2.0

4.0

6.0

8.0

2012 2013

+73%

5.1 8.7

0.0

2.0

4.0

6.0

8.0

10.0

2012 2013

Revenue (HK$ Billion)

+71%

Revenue (HK$ Billion)

•Shipments: 20.5 million units, up 35% YoY

•Revenue: HK$7.8 billion, up 73% YoY

•Ranked No. 4 in Eastern European region in terms of Q4 sales volume

•Most significant growth countries (YoY sales volume growth %): Russia (+122%); United Kingdom (+55%)

•2014 business plan: Expand the sales network to Nordic countries and launch more LTE smartphones

•Shipments: 26.1 million units, up 37% YoY

•Revenue: HK$8.7 billion, up 71% YoY

• Introduced ALCATEL ONETOUCH FIRE with Firefox OS

•Ranked No.1 in Central America, Pacific Islands and Caribbean; No. 2 in Mexico; No.3 in LATAM, No. 5 in North America in terms of Q4 sales volume

•Most significant growth countries (YoY sales volume growth %): Mexico (+103%); USA (+78%)

•2014 business plan: Consolidate position with the newly set up sales channels. Smartphones & tablets will be the growth driver

8

REGIONAL BUSINESS REVIEW

ASIA PACIFIC

•Shipments: 3.8 million units, up 50% YoY

•Revenue: HK$1.5 billion, up 81% YoY

•Most significant growth countries (YoY sales volume growth %): Malaysia (Newly entered market) ; India (+138%)

•Ranked No.2 in Malaysia, No. 1 supplier of major operators in the Philippines

•2014 business plan: Widen sales channels in open markets and strengthen existing sales points

CHINA •Shipments: 4.8 million units, down 16% YoY

•Revenue: HK$1.4 billion, down 11% YoY

•Enhanced sales channels through with greater cooperation with operators in major provinces, including Jiangsu, Inner Mongolia, Hebei, Sichuan, Chongqing and Shanxi

•Strategically partnered with the largest B2C e-commerce company in China, 360 Buy, to promote flagship product, TCL S950

•TCL HERO N3 won the Best Innovative Product Award of 2013 from China Communications Industry Association

•2014 business plan: Strengthen sales points with operators and distributors

0.8 1.5

0.0

0.5

1.0

1.5

2.0

2012 2013

+81%

1.6 1.4

0.0

0.5

1.0

1.5

2.0

2012 2013

Revenue (HK$ Billion)

-11%

Revenue (HK$ Billion)

9

- STRATEGY

Advanced Smartphone

Cloud terminals / Smart Connectivity Devices

LTE/Tablet Entry-level Smartphone

EDGE Phone Advanced Feature Phone

Entry-level Feature Phone

10

- 650MHz-1.5GHz Dual-core CPU Android 4.0 - 4.1 Windows

- Quad-core CPU 6.45mm Thickness Android 4.2 Firefox Cloud applications Multi-screen Wifi display on TV LTE

- - Tablets

Octa-core CPU Metal casing Wearable devices Android 4.4 4K video

- 500MHz-600MHz Android 2.1 - 2.3 3G

EDGE Qwerty keypad Multi-touch display Entry-level

Multi-touch Panel Technology

GPRS, Ultra-low cost Qwerty key pad

2007-08

LATAM

USA

PRODUCTS SELECTED BY GLOBAL MAINSTREAM OPERATORS & DISTRIBUTORS

EMEA CHINA APAC

11

NEW PRODUCTS

Color: Champagne Gold / Slate Quad Core 1.2 GHz CPU

Mpxl rear Camera Ultra Thin Body: 7.5mm Wireless Connection to TV with Wifi Display Aluminum Metal Frame Translucent upper and lower edges with LED lighting

Real Octa-Core 2 GHz CPU Full HD Display

8.1mm slim Narrow bezel

13 Mpxl rear camera, 2 Mpxl Full HD front camera Smart Wristband

2500mAh battery

12

Quad Core 1.2 GHz CPU display

Full lamination 8 Mpxl rear camera LTE Cat4. NFC 2150mAh battery 7.45mm thickness

NEW PRODUCTS

Quad Core 1.5 GHz CPU with Dual SIM Mpxl Camera

Heavy Duty Battery: 3400 mAh Wireless Connection to TV with Wifi Display

Bluetooth Enabled Phone Slim Capacitive Stylus and LED Magic Flip

13

Quad Core 1.2 GHz CPU 4.5 display Full lamination

8 Mpxl rear camera LTE Cat4. NFC

2000mAh battery 8.5mm thickness

NEW PRODUCTS

Quad Core 1.3 GHz CPU

Super thin: 7.9mm Super light 325 g TV Mirror: Two Connectivity Modes:

14

Dual Core 1.3 GHz CPU 1024X600 TFT Display

Super thin: 8.9mm Super light : 285 g

Narrow Border Dedicated accessories

Two Connectivity Mode:

•Located in Huizhou, China

•30 SMT lines, 29 assembly lines, 46 customization/packing lines

•Annual Capacity: 100-120 Mu

•World-class SMT production lines and supporting facilities

•Efficient global logistics experiences

•Strict tests by key telecommunication global operators

• ISO 9001, ISO 14001 and TL9000 qualified

•Testing and R&D manufacturing capability for platforms: MTK & QUALCOMM

WORLD CLASS STANDARD PRODUCTION FACILITY

NEW GLOBAL PRODUCTION FACILITY

15

BRAND BUILDING & AWARDS IN EMEA & AMERICAS

ONETOUCH IDOL X+ awarded one of Digital Trends Best Smartphone Finalist in CES

ALCATEL ONETOUCH IDOL X received GOOD DESIGN award from the Chicago Athenaeum

CES 2014, USA

16

International Incubation Programme: Le Project, France

BRAND BUILDING IN APAC & CHINA

17

Concert Title Sponsorship, Hong Kong

IDOL X+ Product Launch, China

Product Promotion, Malaysia

Outdoor Billboard, Hong Kong

MTR Advertisement, Hong Kong

GOAL & FORECAST

EXECUTION PLANS

CHALLENGES & OPPORTUNITIES

OUTLOOK

•2014 full year revenue growth target: 35% versus 2013

•LTE smartphones and tablets are the main growth drivers in 2014

•60% of 2014 products supports LTE mode including both TDD-LTE and FDD-LTE

• In order to accommodate market needs, LTE smartphones and tablets includes entry-level and advanced segments

• Increase open market penetration and strengthen direct sales to major retailers and distributors

•Strengthen branding via digital and traditional platforms

•Mobile market is rapidly shifting to a new generation of 4G device. LTE will be a key growth driver

•Operators are warming, in particular, to tablet devices as they shift from traditional communications to personal digital life services providers

•Rapid and efficient execution is crucial to deliver business growth

•Competitive business environment; having brand recognition is the key

18

FINANCIAL HIGHLIGHTS

19

Q4 2013 Q4 2012 YOY (%) 2013 2012 YOY (%)

Sales Volume

19,174 13,439 +43% 55,201 42,608 +30%

Total ASP (US$) 50.2 37.1 +35% 45.0 36.2 +24%

Revenue 7,501 3,885 +93% 19,362 12,031 +61%

Gross Profit % 19.6% 15.6% +4.0% 19.0% 17.4% +1.6%

Net Profit/(Loss) 302 (229) N/A 316 (220) N/A

Net Profit/(Loss)% 4.0% (5.9%) N/A 1.6% (1.8%) N/A

20

FINANCIAL HIGHLIGHTS

Revenue & Net Profit/(Loss) (HK$ Million)

Revenue (HK$ Million)

2012 2013

19,362

12,031

+61%

0.1 0.0 0.1 0.4 0.6 0.6 1.1 1.6 1.9 1.2

2.5 3.4 5.2 3.0 2.1 2.4 2.4 2.6 1.5

1.9 1.5 2.0 1.2

1.5

2.1

2.3

1.5

2.0 2.2

3.1

2.1

2.5 2.8

3.2

2.1

3.0 3.1

3.9

2.4

4.0

5.5

7.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Q12010

Q22010

Q32010

Q42010

Q1 2011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Smartphone & Other Smart Devices Feature Phone & Other Products

Revenue HK$ Billion

21

SUSTAINABLE REVENUE GROWTH QUARTERLY REVENUE OF HANDSETS & OTHER PRODUCTS

31.3

29.6

33.4

31.2

34.6 35.6

37.1 37.1 37.0

41.8

45.4

50.2

0.3% 1.3% 4.4%

5.5%

9.5%

13.5%

18.8% 17.4% 17.1%

26.7%

33.7%

40.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

25

30

35

40

45

50

55

Q1 2011

Q22011

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

ASP Sales Proportion of Smartphone & Other Smart Devices

22

BETTER SALES PRODUCT MIX & UPWARD ASP TREND SMARTPHONE SALES VOLUME PROPORTION & ASP GROWTH

ASP (USD) Sales Proportion of Smartphone & Other Smart Device (%)

GROSS MARGIN TREND GROSS MARGIN

23

14.4%

17.0%17.9%

21.8%22.4%

21.9%

17.4%16.4%

18.4%19.6% 19.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2006 2007 2008 2009 2010 2011 2012 Q12013

Q22013

Q32013

Q42013

Product Competitiveness

Economies of Scale

Pricing and Currency Strategy

Brand Value and Customer Relationship

Continuous Cost Down Effort

FINANCIAL POSITION HIGHLIGHTS STATEMENT OF FINANCIAL POSITION

(HK$ Million) 31 December 2013 31 December 2012 Change (%)

Non-current assets 2,556 2,109 +21%

Current assets

-Inventories 2,649 1,263 +110%

-Trade & factored receivables 6,036 3,275 +84%

-Other current assets 1,341 1,483 -10%

-Pledged deposits 1,698 4,221 -60%

-Cash and cash equivalents 142 970 -85%

Total current assets 11,866 11,212 +6%

Current liabilities

-Interest-bearing bank and other borrowings (2,690) (6,159) -56%

-Other current liabilities (4,656) (2,018) +131%

-Trade and notes payables (3,875) (2,429) +60%

Total current liabilities (11,221) (10,606) +6%

Net current assets 645 606 +6%

Total assets less current liabilities 3,201 2,715 +18%

Non-current liabilities (288) (392) -26%

Net assets 2,913 2,323 +25%

24

KEY FINANCIAL RATIOS

* Calculated -bearing borrowings over total assets, excluding RMB foreign exchange program ** Excluding RMB foreign exchange program *** Excluding factored trade receivables **** Only inventories in factory

25

31 December 2013 31 December 2012

Gearing Ratio * 17% 26%

Current Ratio ** 1.06 1.07

Trade Receivables Turnover Days 63 68

Inventories Turnover Days *** 39 38

NAV per share HK$ 2.55 HK$ 2.06

Basic Earnings/(Loss) Per Share 27.50 HK cents -18.49 HK cents

Interim Dividend Per Share - 3.00 HK cents

Final Dividend Per Share 10.00 HK cents -

Full Year Dividend Per Share 10.00 HK cents 3.00 HK cents

Dividend Payout Ratio 36% N/A

Q & A

26

27

THANK YOU

DISCLAIMER

The information contained herein should not be utilized for any

legal purposes in regards to any investment decision

or results. In particular, this document does not constitute any

recommendation or invitation for subscribing for or sale and

purchase of any securities of TCL Communication Technology

Holdings Limited ( The Company hereby expressly

disclaims any liability for any loss or damage resulting from or in

connection with any reliance by any investor on the information

contained herein.

A number of forward-looking statements may be made during this

presentation. Forward-looking statements are any statements that

are not historical facts. These forward-looking statements are

based on the current expectations of the Company and there can

be no assurance that such expectations will prove to be correct.

Because forward-looking statements involve risks and

uncertainties, the actual results could differ materially

from these statements.

28