TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED (02618.HK)

Q1 2011 Results Presentation

3 May 2011

The information contained herein should not be utilized for any legal purposes in regards to any investor's

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"). 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.

Disclaimer

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 Company‟s actual results could differ

materially from these statements.

2

Agenda

3

• Business Review & Outlook • Financial Highlights • Q&A Session • Appendix: Company Overview

4

Sustainable Growth in Q1 2011

• Continuing Geographic Expansion

• “Step-up” Product Strategy

• Brand Building in Open Market

• Complementary ODM Strategy

Successful Expansion in Mid- to High-End Market with Strong R&D and Design Capabilities

• In February 2011, TCL Ningbo R&D Center established to

enhance in-house R&D capabilities and accelerate high-end

smartphones development

• Launching new models of 3G and 2.75G Android

smartphones such as TCL A906 and ONE TOUCH 890

• In March 2011, ONE TOUCH 818 and ONE TOUCH 355

PLAY won Red Dot Design Awards in Germany

Four Growth

Drivers Leading to

Growth

Momentum

Q1 2011 Highlights

• Sales Volume: 8.7 million units, up 51% YoY,

on track of sustainable growth

• Revenue: HK$2.1 billion, up 44% YoY

• Net Profit : HK$180 million, up 161%YoY

• Basic EPS increased to 16.38 HK cents from 6.54 HK cents YoY

5

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

2,276 2,782

4,240

6,825

5,789

8,439

9,504

12,491

8,715

Stable Growth in Sales Volume

Quarterly Sales Volume of Handsets and Accessories

„000 units

6

Business Review

Europe, Middle East and Africa (“EMEA”)

• Shipment in Q1 2011 totaled 3.3 million units, surged 62% YoY

• Broadened customer base and distribution channels in Russia and South

Africa

• Expanded into new high potential markets such as Ethiopia

• Positive sales trend in Western European countries with diversified product

portfolio

• Ranked No.4 in Russia in terms of shipments

Americas

• Shipment in Q1 2011 totaled 4.4 million units, significantly up 60% YoY

• Strengthened sales in existing markets such as USA and Brazil

• Successful expansion in open market and distribution channels in Argentina

and Chile

• Enhanced product mix featuring mid- to high- end handsets

7

Q1 2010 Q1 2011

2.1m units

3.3m units +62%

4.4m units

2.8m units

Q1 2010 Q1 2011

+60%

Asia Pacific

• Shipment in Q1 2011 totaled 0.6 million units, up 5% YoY

• Further enhanced its presence in existing markets such as the Philippines,

Vietnam, Singapore and India

• Expansion into new markets such as Bangladesh

• Diversified product mix to strengthen brand image

The PRC

• Shipment in Q1 2011 totaled 0.4 million units, remained stable YoY

• Lined up with 3 operators in the PRC: China Unicom, China Mobile and

China Telecom and launched customized products with popular local content

features and attractive price

• Expanded sales network nationwide and promotion activities launched

during New Year and Chinese Lunar New Year

• Strengthened ALCATEL Flagship Store place in handset category in TaoBao

Mall (“淘寶商城”) and 360Buy (“京東商城”)

• Successfully launched Sina Twitter (“新浪微博”) Phone in January 2011 with

positive feedback

Business Review

8

Q1 2010 Q1 2011

0.5m units

0.6m units

+5%

0.4m units 0.4m units

Q1 2010 Q1 2011

Entry-level camera phones

Competitiveness

Low-end products in emerging markets

Quality

Android OS Smartphones

Mobile internet features Innovation

Mobile music experience Design

Y2007 Y2008 Y2009 Y2010 Y2011

Tablets

“Step-up” Product Strategy

9

Smart design Smart experience For Smart users

Powerful & Intuitive

Capacitive touch, gesture control, proximity & light sensor

5.0 Mpxl

3G+

Wi-Fi

3.5”

display

32GB

Capacitive

Touch

G-sensor

AGPS

10

Opera

mini

3G

E-mail

Resistive

Touch

2.0 Mpxl

32GB Bluetooth

Java

Sweet spot. Android brought to the masses

Compact mainstream design

Android 2.2 - Pre-embedded apps

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Best value Android concept

Innovative Edge & Wi-Fi combination

Android 2.1 - Android market - Pre-embedded apps

Wi-Fi

Resistive

Touch

16GB

2.0 Mpxl

2.8”

display

G-sensor

EDGE

AGPS

12

Simple shape, compact and portable - Capacitive touch

OMAP 1GHz - Android 2.2 - Dual Camera

WiFi 802.11b/g/n - HDMI playback

AGPS

Wi-Fi

3.0 Mpxl

G-sensor

7”

Display

Android

3G+

Capacitive

Touch

13

Brand Building

14

2011 Barcelona Mobile World Congress

Milano Smiling Design Week 2011 Milan Design Week

Outlook Year of Growth in 2011

Target sales volume for full year 2011 at 50 million units, up 39% versus 2010 sales volume

Upgrade infrastructure including construction of new production plant to further increase annual production capacity up to 130 million units for future sustainable developments

Japan earthquake and nuclear tragic events are under management‟s monitoring. The impact on our business is limited

Breakthrough in the PRC Market

Several new models (including smartphones) have been selected by China Unicom, China Mobile and China Telecom

3G Android Products to Launch

3G Android products such as ONE TOUCH 990, ONE TOUCH 908 and ONE TOUCH 913 are selected by operators and will be launched in the coming quarters

Brand Building - Le Tour de France

Become one of the official sponsorships for Le Tour de France 2011 to enhance ALCATEL ONE TOUCH brand image

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16

17

Q1 2011 YoY Q1 2010

2,124 44% 1,474

31.2 4% 32.6

33 3% 34

22.3% 2.5% 19.8%

180 161% 69

8.5% 3.8% 4.7%

Sales Volume

(„000 Units)

Total ASP (US$)

Net Profit

Revenue & Profit

(HK$ Million)

Revenue

GP%

Financial Highlights

Own Brand ASP (US$)

Net Profit%

5,789

8,715

14.4%

17.0%

17.9%

21.8%22.4% 22.3%

10%

15%

20%

25%

Y2006 Y2007 Y2008 Y2009 Y2010 Q1 2011

Wi-Fi

3G Android

Touch & Qwerty EDGE Social Networking

Entry Multimedia Touch

ULC Full Keyboard SMS Phone

VGA Phone GPRS Messaging Side Slider

Stable Gross Margin

Gross Margin

18

Brand Value & Customer Relationship

Product Competitiveness

Operational Efficiency

Financial & Pricing Strategy

Economies of Scale

Strong Profitability

Net Profit

(HK$ Million)

19

Income Statement Highlights

Income Statement

Highlights

(HK$ Million) Q1 2011 Q1 2010 Change Y2010 Y2009 Change

Sales Volume („000 Units) 8,715 5,789 +51% 36,223 16,123 +125%

Revenue 2,124 1,474 +44% 8,701 4,361 +100%

Gross profit 473 292 +62% 1,948 949 +105%

Gross profit margin (%) 22.3% 19.8% +2.5% 22.4% 21.8% +0.6%

Net profit 180 69 +161% 702 23 +2,952%

EBITDA 188 85 +121% 785 163 +382%

EPS (HK Cents) 16.38 6.54 +150% 64.69 2.51 +2,477%

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(HK$ Million)

31 March 2011

31 December 2010

Change

Non-current assets 710 635 +12%

Current assets 11,570 11,619 -

-Inventories 1,109 780 +42%

-Cash and cash equivalents 769 1,345 -43%

-Trade receivables 1,976 2,535 -22%

-Pledged deposits 6,774 6,201 +9%

-Other current assets 942 758 +24%

Current liabilities (9,844) (10,014) -2%

-Interest bearing bank and other borrowings (6,527) (6,488) +1%

-Trade and notes payables (1,625) (1,843) -12%

-Other current liabilities (1,692) (1,683) +1%

Net current assets 1,726 1,605 +8%

Total assets less current liabilities 2,436 2,240 +9%

Non-current liabilities (18) (18) -

Net assets 2,418 2,222 +9%

Financial Position Highlights

Financial Position

Highlights

21

Gearing Ratio * 2% 8%

Current Ratio * * 1.48 1.40

AR Turnover Days 73 69

Inventory Turnover Days 57 36

EPS (Q1 2011/Q1 2010) 16.38 HK cents 6.54 HK cents

Key Financial Ratios

* Calculated based on the Group‟s total interest-bearing borrowings over total assets, excluding

RMB foreign exchange program

** Excluding RMB foreign exchange program

31 March 2011 31 December 2010

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Principal

Business

• Research & Development, manufacturing and global sales of mobile phones and

accessories of two key brands: - “TCL” (in China)

- “ALCATEL ONE TOUCH” (in Europe, Middle East, Africa, Americas, Asia-Pacific and China)

Background

• A member of TCL Corporation (stock code: 000100.SZ)

• Listed on the Hong Kong Stock Exchange in Sep 2004 (stock code: 02618.HK)

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED

(02618.HK)

Public Shareholders

50.0%

TCL Corporation

47.2%

Huizhou City

Investment Holdings

TCL Employee

Committee Public Shareholders Mr. LI Dongsheng

Directors

2.8%

* As at 21 April 2011

Company Overview

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• A globallly-oriented China-based provider of mobile and internet products

• A multi-cultural workforce over 8,500 employees

• Two strong brands: ALCATEL ONE TOUCH internationally and TCL in China

• Seven Product Lines: GSM/WCDMA, CDMA, TD-SCDMA, CMD, Accessory,

Brand Design Lab and MID

ODM

business

One Company Multiple Businesses

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Production

Facilities,

R&D Centers,

Sales Offices

• Headquartered in Shenzhen, China

• Global research facilities located in Shenzhen, Shanghai, Chengdu, Ningbo and Huizhou

• Global factory located in Huizhou, China

• Global presence across over 120 countries and regions

• 115 repair centers, over 50 offices, over 8,500 employees around the world

Shenzhen:

- Headquarter

- R&D Center

Huizhou:

- Global factory

- R&D Center

Shanghai:

- R&D Center Paris:

- Sales Center

Mexico City:

- Sales Center

Ningbo:

- R&D Center

California:

- Sales Center

Chengdu:

- R&D Center

Global Presence

27

• More than 2,000 highly skilled and experienced

research engineers distributed in Shanghai, Shenzhen,

Chengdu, Ningbo and Huizhou

• Ownership of GSM core technological patents obtained

through acquisition of ALCATEL mobile phone business

• One of the few companies who own 2G, 2.5G, 2.75G,

3G patents in the world, excellent tradition of research

and development

• Able to provide solutions to GSM, GPRS, EDGE,

CDMA, WCDMA, TD-SCDMA independently

• Continue efforts in the development of 3G products,

OMS-based handsets, data cards and multifunctional

phones

• Focus on innovation as well as the high quality of the

products

Strong R&D capability

28

Durable Flip Testing Abrasion Testing

Electrostatic Testing Durable Press Testing

• Production capacity of approximately 60 million

units annually

• World-class SMT production lines and supporting

facilities

• Experience of efficient global logistics

• Strict tests by key telecommunication operators in

the world

• ISO9001 and ISO14001 qualified

• Testing & manufacturing capability for platform TI,

MTK , QUALCOMM & BROADCOM

SMT production line Testing centre Main building

Manufacture center in Huizhou, China

Highly Efficient Production Facilities

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Engaged in

teaching and

research in

Electrical

Engineering for

many years

Honorary Chair

Professor of

National Tsing

Hua University in

Hsinchu, Taiwan

Mr. LI Dongsheng

Chairman and

Executive Director

Founder of the Company

“Business Leader of the

Decade” by CCTV in 2009

About 30 years in various

aspects of electronics

industry Mr. GUO Aiping

CEO and

Executive Director

Extensive experience in overall

management of multinational

company, strategic planning

and development

Graduated from Stanford

University with Doctor‟s degree

in Management Science

Mr. BO Lianming

Non-executive

Director

Over 10 years of

experience in

consumer

electronics

products industry

With Doctor‟s

degree in

Business

Administration

Mr. HUANG Xubin

Non-executive

Director

Rich

experience in

finance area

With Master‟s

degree in

Economics

and EMBA

degree

Ms. XU Fang

Non-executive

Director

Vice President

and Human

Resource

Director of TCL

Corporation

Distinguished

professor at

Shantou

University

Mr. LAU Siu Ki

Independent

Non-executive

Director

Fellow

member of

both HKICPA

and ACCA

With profound

financial and

accounting

expertise

Mr. SHI Cuiming

Independent

Non-executive

Director

Extensive

experiences in

telecommunication

industry

Served in Ministry of

Posts and

Telecommunications

for many years

Mr. LOOK Andrew

Independent

Non-executive

Director

Over 20 years'

experience in

equity

investment

analysis

Best Hong

Kong Strategist

and Best

Analyst by

Asiamoney

Magazine

Mr. LIU Chung Laung

Independent

Non-executive

Director

Board of Directors

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Mr. GUO Aiping, George

CEO & Executive Director

• Extensive experience in overall management of multinational company, strategic planning and development

• Graduated from Stanford University with a Doctor‟s degree in Management Science

Mr. WONG Kwok Chung, Albert

Executive Vice President & General Manager of APAC

• 13 years of experience in computers and electronics industry in Hong Kong, Canada and the PRC

• With Bachelor‟s degree in Science and Master‟s degree in Electrical and Electronics Engineering

Mr. Nicolas ZIBELL

Senior Vice President & General Manager of Americas

• Over 20 years of experience in sales, marketing, product strategy and management in automotive and telecommunications industries in Europe and the Americas

• Graduated from École Superieure de Commerce de Lyon and ESADE Business School with MBA degree

Mr. LIU Yuk Tung, Thomas

Senior Vice President of Business Strategy & CFO

• About 25 years of experience in areas of audit, international finance and trading business

• A CPA of HKICPA, Charted Accountant of ICAEW and fellow member of ACCA

• With Bachelor‟s degree major in Economics, MBA and Master‟s degree in Accounting

Mr. WANG Jiyang

Senior Vice President of R&D & General Manager of GSM/WCDMA Production Line

•Over 19 years experience of research, development and management in electronics industry

•With PhD major in Electrocircuit & System and MBA degree

Mr. Yves MOREL

Senior Vice President & General Manager of EMEA

•26 years experience of sales and marketing mainly in telecommunication industries

•Contributed to develop sales area such as Russia, Central Europe, Middle East, Africa and Western Europe

Executive Committee

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