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TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED (02618.HK)

Q1 2012 Results Presentation

Hong Kong – 26 April 2012

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Disclaimer

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.

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.

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Agenda

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

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Revenue: HK$ 2.1 billion, down 1% YoY

Net Profit: HK$ 24 million, down 87% YoY

Sales Volume: 7.8 million units, down 10% YoY

Basic EPS decreased to 2.3 HK cents from 16.4 HK cents YoY

Results for the

Period

New record high in Q1 2012 smartphone sales volume up to 746k units, despite slack

season of the year

Gartner: “Alcatel successfully entered in the top 10 mobile vendors ranking in Q4 2011”

Gartner: “Strong relationships with key operators have proved key to its growth”

IHS iSuppli and Strategy Analytics: “TCL-Alcatel Ranked NO.8 in Q4 2011”

Record High In

Smartphone

Sales Volume

In spite of weaker demand for feature phone, the enhanced product mix enables the

products of the Group with sustainable competitiveness

Having passed the smartphone validations of operators, series of smartphone models

will commence shipment from Q2 2012 onwards

Growth momentum for China smartphone market continued, shipment increased month

by month

ONE TOUCH 916 won the “Red Dot Award: Product Design 2012” in Germany

Achieved

Remarkable Result

Q1 2012 Review

„Step-up‟ product strategy

Geographic expansion

Brand building and channel penetration in open market

Growth Drivers of

Growth

Momentum

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Quarterly Revenue of Handsets and Other Products

Sustainable Revenue Growth

(HK$ Million)

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Mobile Devices Market Share, Unit Sales, Q4 2011 ('000 Units)

Current Company Current Growth Rate Current

Quarter Name Quarter Sales Previous Quarter

Rank Quarter (%) Market

Share (%)

1 Nokia 111,699.4 6.0% 23.4%

2 Samsung 92,682.3 12.2% 19.4%

3 Apple 35,456.0 105.0% 7.4%

4 ZTE 18,915.1 34.1% 4.0%

5 LG Electronics 16,938.3 -19.4% 3.6%

6 Huawei Device 13,966.2 30.9% 2.9%

7 Research In Motion 13,184.5 3.8% 2.8%

8 HTC 10,837.4 -10.4% 2.3%

9 Motorola Mobility 10,075.3 -9.9% 2.1%

10 Alcatel 9,004.7 14.8% 1.9%

Others 143,795.8 -1.9% 30.2%

Total 476,554.9 7.9% 100.0%

Note : Alcatel for Alcatel Brand Only, excluding TCL Brand & ODM

Source: Gartner (February 2012)

Gartner.

Gartner: “Alcatel ( a brand of TCL Communication) successfully entered in the top 10 mobile vendors ranking in Q4 2011”

Gartner: “Strong relationships with key operators have proved key to its growth”

IHS iSuppli and Strategy Analytics: TCL-Alcatel Ranked NO.8 in Q4 2011

Industry Ranking

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Geographical Breakdown

Geographical Breakdown of

Smartphone for Q1 2012

(based on sales volume)

Geographical Breakdown of Feature Phone/

Other Products for Q1 2012

(based on sales volume)

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Quarterly

Smartphone

Shipment

‘000 units

Upward Trend in Smartphone Volume and Proportion

0.0%

1.5%

3.0%

4.5%

6.0%

7.5%

9.0%

10.5%

%

Quarterly

Smartphone

Proportion/

Overall shipment

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-26%

• Due to the consequences of unstable political status in Africa and European

debt crisis, shipment declined by 26% in Q1 2012, totaled 2.5m units

• Despite the weaker demand for feature phone, the Group still maintain strong

relationship with key operators and several smartphone models have been

successfully selected by first-tier operators such as Orange, Vodafone and

Telefonica

• Amid in product transition period, demand for entry-level feature phone slowed

down, shipment in Q1 2012 totaled 3.4m units, declined by 21%

• Remarkable result for smartphone have been achieved, our products ONE

TOUCH 918 and ONE TOUCH 991, have been selected as flagship entry-level

smartphone in many mainstream operators, such as Telefonica, Entel, Comcel,

and Digicel

• In USA, low cost feature phones are popular in prepaid market. Meanwhile, the

Group still works closely with the local operators

Europe, Middle East and Africa (“EMEA”)

Americas

Business Review

-21%

2.5m units

3.3m units

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• Shipment totaled 0.6 m units, up 10% YoY

• Successfully continued to grow in many countries, such as in Indonesia,

Vietnam, Israel and the Philippines

• Products were selected by a number of new customers, e.g. TG phone

and D Plus (distributors in Thailand), and TATA and Reliance (operators

in India)

• Most fast-growing region with shipment skyrocket 2.1 times YoY to

1.3m units, including 0.4m units smartphones

• TCL A966, a product deeply integrated with Tencent QQ, was the best

seller in Q1 2012

• Strengthened the cooperation with large retail chain stores, such as

Suning, Dixintong Telcom and Zhongyu Telecom

• Growth momentum for China smartphone market continued. New 3G

Android models have been successfully selected by China Unicom

(Model W939 and W969) and China Mobile (Model E906) which are

scheduled to be launched in Q2 2012

Asia Pacific

China

Business Review

+211%

+10%

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Innovation

Design

Quality

Competitiveness

Dynamic

Smart

“Step-up” Product Strategy

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3G Android Products Selected by Global Mainstream Operators and Distributors

3G Android models (e.g. TCL W939, TCL W969, ONE TOUCH 995 ULTRA,

TCL E906, etc) have been selected by global mainstream operators and

distributors in Americas, EMEA, APAC and China. More new models will be

launched in coming quarters.

APAC

Americas

The China

EMEA

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Capacitive 32GB 3.0 Mpxl

3.5” WLAN G-sensor GPS 3G

Customized by China Unicom, convenience of “WO”

3.5” multi-touch capacitive screen

Android 2.3， with countless applications to download

300 megapixel camera

GPS navigation

Dual SIM & free alternation from 2G to 3G

New Products

GSM/GPRS/EDGE & TD-SCDMA Dual Mode

4.0” capacitive display

3.0 megapixel camera

7.2 Mbps 4.0” 3.0 mpxl Dual SIM 32GB Wi-Fi Capacitive 1Ghz 2.3

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New Products

WiFi GPS & A-GPS ICS4.0 Capacitive 1080P Dual Camera 21Mbps M sensor Dual Core

4.5” IPS, HD Display

Dual core 1.5GHz CPU

Android 4.0， bringing brand-new feeling

Cloud-service & Cloud-backup

1800mAh large-capacity battery

4.3”IPS touch screen

Safe cloud experience

cdma2000 4.3” 3.0 mpxl 32GB Wi-Fi Capacitive 800Mhz 2.3 1800mAh

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New Products

Fluent & Unique design

High Downlink and Uplink speed

Allow you to connect anywhere in the world

Bright color will bring you a bright mood

Allow you to switch 3G signal to WIFI anywhere

Hello Kitty styled appearance and design

Adorable Hello Kitty customized software interface

4.0” WVGA IPS HD screen

1.0 Ghz high-speed CPU

500 megapixel autofocus camera

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Brand Building in Overseas Market

Marketing

Campaign

2012 Mobile World Congress

2012 TCL New Product Launch 2012 Milan Design Week

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Launching of

ONE TOUCH 979

Hello Kitty Smartphone

Brand Building in China Market

Sponsor Popular TV Show

“The Generation Show”

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Year of Growth

Smartphone Success

China Success

From Q2 2012 onwards, the shipment of smartphone will grow quarter by quarter

Reiterate 2012 full year revenue target at 30% up versus 2011 revenue performance

Continue to invest on R&D as well as marketing and promotion for smartphones, in order to enhance the images of both TCL and ALCATEL ONE TOUCH brand as a mainstream smartphone brand

Overall ASP will be improved gradually as a result of higher smartphone proportion

More competitive smartphone models will be launched from Q2 2012 onwards

Strong relationships with key operators will be the key driver to grow and succeed

Further enrich the product variety to meet different market segment‟s requirement across the country

More than 10 new models would be launched in Q2 2012, including the new flagship dual core products, TCL S900

Speed up distribution expansion, points of sales will be increased from 4,200 currently to 6,000 by the end of Q2 2012

Continue to increase market share by developing multiple distribution channels and strengthening cooperation with operators

Outlook

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Q1 2012 YoY Q1 2011

2,105 -1% 2,124

7,849 -10% 8,715

34.6 +11% 31.3

20% -2% 22%

24 -87% 180

1.1% -7.4% 8.5%

Revenue

(HK$ Million)

Revenue & Net Profit

(HK$ Million)

Financial Highlights

Total ASP (US$)

Net Profit

Revenue

GP%

Net Profit%

Sales Volume („000 units)

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Product Competitiveness

Economies

of Scale

Pricing and Currency Strategy

Brand Value and

Customer Relationship

Continuous Cost Down Effort

Healthy Gross Margin Maintained

Gross Margin

GPRS Messaging Side Slider

ULC Full Keyboard SMS Phone

3G Android

Wi-Fi

Touch & Qwerty EDGE Social Networking

Entry Multimedia Touch

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Foresee Upward ASP Trend in Coming Quarters ASP

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0

30

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…

…

USD

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(HK$ Million)

31 March 2012

31 December 2011

Change(%)

Non-current assets 1,850 1,773 +4%

Current assets

-Inventories 1,262 981 +29%

-Trade & factored receivables 2,017 2,895 -30%

-Other current assets 1,136 1,099 +3%

-Pledged deposits 5,069 6,092 -17%

-Cash and cash equivalents 1,169 1,187 -2%

Total current assets 10,653 12,254 -13%

Current liabilities

-Interest bearing bank and other borrowings (6,017) (7,222) -17%

-Other current liabilities (1,916) (2,141) -11%

-Trade and notes payables (1,799) (1,952) -8%

Total current liabilities (9,732) (11,315) -14%

Net current assets 921 939 -2%

Total assets less current liabilities 2,771 2,712 +2%

Non-current liabilities (39) (39) -

Net assets 2,732 2,673 +2%

Statement of Financial Position

Financial Position Highlights

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Gearing Ratio * 21% 22%

Current Ratio ** 1.13 1.12

Trade Receivables Turnover Days *** 75 89

Inventories Turnover Days **** 47 25

NAV per share HK$ 2.4 HK$ 2.4

Basic EPS (Q1 2012 / Q1 2011) 2.3 HK cents 16.4 HK cents

Key Financial Ratios

31 March 2012 31 December 2011

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

** Excluding RMB foreign exchange program

*** Excluding factored trade receivables

**** Only inventories in factory

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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

48%

TCL Corporation

48%

Huizhou City

Investment Holdings

TCL Employee

Committee Public Shareholders Mr. LI Dongsheng

Directors

4%

* As at 24 April 2012

Company Overview

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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

Production

Facilities,

R&D Centres,

Sales Offices

• Headquartered in Shenzhen, China

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

• Global factory located in Huizhou, China

• Global presence across over 120 countries and regions

• 115 repair centers, over 50 offices, over 10,400 employees around the world

Global Presence

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

• A multi-cultural workforce over 10,400 employees

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

• A growing range of products: mobile phones, convergence mobile devices, tablets and fixed-line phones

One Company Multiple Businesses

TCL

COMMUNICATION

TECHNOLOGY

HOLDINGS

LIMITED

ODM Worldwide Customers

The China Market

Worldwide Market

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Strong R&D capability

• About 3,000 highly skilled

and experienced

research engineers

• Ownership of GSM core

technological patents

obtained through

acquisition of ALCATEL

mobile phone business

• 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

• 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

Strong R&D capability

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◆ Production capacity of approximately

65 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 MTK , QUALCOMM,

BROADCOM and TI

Highly Efficient Production Facilities

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Board of Directors

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 11 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

Fellow member

of both HKICPA

and ACCA

With profound

financial and

accounting

expertise Mr. LAU Siu Ki

Independent

Non-executive

Director

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

Ms. XU Fang

Non-executive

Director

Vice President and

Human Resource

Director of TCL

Corporation

Distinguished

professor at

Shantou University

Mr. LI Dongsheng

Chairman and

Executive Director

Founder of the Company

“Business Leader of the

Decade” by CCTV in 2009

Over 30 years in various

aspects of electronics

industry

Over 20 years experience of

research, development and

management in electronics

industry

With PhD major in

Electrocircuit & System and

MBA degree Mr. WANG Jiyang

COO and

Executive Director

Prof. Kwok Hoi Sing

Independent

Non-executive

Director

Chair Professor

Dept. of Electronic &

Computer Engineering,

HKUST

Fellow of the Optical

Society of America,

IEEE and Society for

Information Display

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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)

• 14 years of experience in computers and electronics industry in Hong Kong, Canada and the China

• 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 21 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

CFO & Senior Vice President of Business Strategy

• About 26 years of experience in areas of audit, international finance and trading business

• 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

COO & Executive Director

• Over 20 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

• 27 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

Mr. Lv Xiaobin

Senior Vice President

& General Manager of Global Manufacturing Center

• About 18 years of experience in communication terminal manufacturing industry.

• Graduated from University of Electronic Science and Technology of China with Bachelor degree in Science, and also holds an EMBA Degree from China Europe international Business School

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