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TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED (02618.HK)

2011 Annual Results Presentation

Hong Kong – 27 February 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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Sales Volume : 43.6 million units, up 20% YoY

Revenue : HK$ 10.7 billion, up 22% YoY

Net Profit : HK$ 801 million, up 14% YoY

Basic EPS increased to 72.83 HK cents from 64.69 HK cents YoY

Sustainable Growth

in 2011

New record high in Q4 sales volume up to 13 million units

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

Sales Volume

„Step-up‟ product strategy

Geographic expansion

Brand building and channel penetration in open market

Growth Drivers

Leading to Growth

Momentum

Smartphone Sales

and China Business

Achieved

Remarkable Result

2011 Highlights

Smartphone shipment skyrocketed 23 times YoY to 1.4 million units

Cooperated with NetEase to launch the Xiangyun A919, a new cloud-based smartphone

TCL W989 was selected by China Unicom for its new 4.0 series products in December

2011

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Stable Growth in Sales Volume Quarterly Sales Volume of Handsets and Other Products

‘000 units

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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 Feature

Phone/Other products for Year 2011

Geographical Breakdown of

Smartphone for Year 2011

Sales of smartphone in CHINA market contributed 1/3 of total smartphone shipment

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Upward Trend in Smartphone Volume and proportion

Monthly

Smartphone

Shipment

Monthly

Smartphone

Proportion

/ Overall Shipment „000 units

%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

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• Despite Europe debt crisis, through proper management over operating and

finance risks, shipment in 2011 still achieved 16.3 million units, surged 21%

YoY

• Maintain strong relationship with key operators and several smartphone

models have been successfully selected by first-tier operators such as

Orange, Vodafone and Telefonica

• Successfully launched the Vodafone 555 Blue, the world‟s first Facebook

Feature Phone(exclusively manufactured for Vodafone)

• In despite of the weakened local purchasing power as a result of currency

fluctuation in some emerging markets, shipment in 2011 still achieved 19.3

million units, up 3% YoY

• ALCATEL ONE TOUCH ranked No. 4 brand in Latin America region,

especially No. 2 in Colombia and No. 3 in Brazil

• Strengthened sales in existing markets such as USA (up 250% YoY), Brazil

(up 63% YoY) and Colombia (up 23% YoY)

Europe, Middle East and Africa (“EMEA”)

Americas

Business Review

+21%

+3%

16.3m units

13.4m units

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• Shipment in 2011 totaled 2.9 million units, up 56% YoY

• Achieved strong results in India and Israel, reinforced marketing efforts in

existing markets such as India, the Philippines and Vietnam

• Successfully expanded into new markets, including Bangladesh, Indonesia

and Thailand

• Most fast-growing region with shipment achieved 5.1 million units, surged

139% YoY

• Currently over 30% of the Group‟s smartphone shipment was contributed by

China and we foresee strong growth momentum will continue in 2012

• Series of several smartphones have been successfully selected by China

Mobile, China Unicom and China Telecom

• In-depth cooperation with large retail chain stores, such as Suning &

Zhongyu Telecom

Asia Pacific

China

Business Review

+139%

+56%

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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 W989, TCL E906, ONE TOUCH 995, ONE

TOUCH 918, 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.

EMEA

APAC

Americas

The China

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TCL W989

E-compass Capacitive 5.8 Mbps WLAN 3.2 mpxl 32GB 2.3 GPS

Best value Android experience

High speed 3G+ & Wi-Fi

Pre-embedded apps

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

TCL E906

New Products

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14.4 Mbps 4.3” AGPS 5.0 mpxl 32GB Wi-Fi Capacitive 1.4 Ghz 2.3

4.3” Large display for high quality experience

High speed: 1.4 Ghz & HSPA+ 14.4Mbps

HD video (720p) - HDMI and DLNA - Wi-Fi hot spot

3D one touch UI - NFC

Smart design. Smart experience. For Smart users

Camera with LED flash – Sub camera

Capacitive touch – Proximity sensor – Multi touch

2.3 7.2 Mbps 3.5” AGPS 5.0 mpxl 32GB Wi-Fi Capacitive 650Mhz

New Products

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G-sensor 3.2 mpxl Wi-Fi 7.2 Mbps 4” 32GB AGPS 2.3 Capacitive 800Mhz

Large 4” HVGA display

CPU 800 MHz

Capacitive multi touch screen

3.2 megapixel camera with LED flash - Sub camera

2.6” portrait capacitive display and OFN

3.2 megapixel camera with flash light

7.2 Mbps 2.6” AGPS 3.2 mpxl Dual SIM 32GB Wi-Fi Capacitive 650Mhz 2.3

New Products

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Metallic Casing Slim Design 7” Capacitive 2.3

Dual Camera

7” capacitive screen

16M color, multi-touch

10.1 mm Slim design & Metallic casing

Visualized multi-task & gesture user experience

Front/rear dual camera

one touch

T50

Data Card & Hot Spot

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

New Products

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Brand Building in Overseas Market

2012 MWC

2012 CES

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Brand Building in China Market

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Year of Growth

Smartphone Success

China Success

Growth drivers continue -further expand in China and strengthen our position in 3G Android smartphones segment

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

Q1 2012 will be ramp-up period for smartphone. The growth momentum for smartphone will start from Q2 2012 onwards

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

Further penetrate in open market and commence the direct sales to major retailers and distributors

Overall ASP will be improved by launching more smartphone models

Keep strong relationship with China Mobile, China Unicom and China Telecom and more new smartphone models are being selected

Strengthen cooperation with large retail chain stores such as Suning & Zhongyu Telecom

Launch over 30 new smartphone models in 2012 More television and magazine advertising exposure, e.g. sponsor

popular TV show “The Generation Show”

2012 Outlook

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Y 2011 YoY Y 2010

10,653 22% 8,701

31.4 2% 30.9

22% - 22%

801 14% 702

8% - 8%

Sales Volume

(„000 Units)

Revenue & Net Profit

(HK$ Million)

Financial Highlights

Total ASP (US$)

Net Profit

Revenue

GP%

Net Profit% Y 2010 Y 2011

20%

36,223

43,617

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Product Competitiveness

Economies

of Scale

Pricing and Currency Strategy

Brand Value and

Customer Relationship

Continuous Cost Down Effort

Sustainable Gross Margin

Gross Margin

GPRS Messaging Side Slider

ULC Full Keyboard SMS Phone

3G Android

Wi-Fi

Touch & Qwerty EDGE Social Networking

Entry Multimedia Touch

14%

17%

18%

22%22% 22%

10%

15%

20%

25%

Y2006 Y2007 Y2008 Y2009 Y2010 Y2011

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(HK$ Million)

31 December 2011

31 December 2010

Change

Non-current assets 1,773 635 179%

Current assets

-Inventories 981 780 26%

-Trade receivables 2,585 2,535 2%

-Other current assets 1,409 758 86%

-Pledged deposits 6,092 6,201 -2%

-Cash and cash equivalents 1,187 1,345 -12%

Total current assets 12,254 11,619 5%

Current liabilities

-Interest bearing bank and other borrowings (7,222) (6,488) 11%

-Other current liabilities (2,141) (1,683) 27%

-Trade and notes payables (1,952) (1,843) 6%

Total current liabilities (11,315) (10,014) 13%

Net current assets 939 1,605 -41%

Total assets less current liabilities 2,712 2,240 21%

Non-current liabilities (39) (18) 117%

Net assets 2,673 2,222 20%

Statement of Financial Position

Financial Position Highlights

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

** Excluding RMB foreign exchange program

*** Only inventories in factory

Gearing Ratio * 22% 8%

Current Ratio ** 1.12 1.40

Trade Receivables Turnover Days 89 107

Inventories Turnover Days *** 25 32

ROE 30% 64%

NAV per share HK$ 2.43 HK$ 2.04

Basic EPS 72.83 HK cents 64.69 HK cents

Proposed Final Dividend Per Share 15.00 HK cents 16.80 HK cents

Full Year Dividend Per Share 28.80 HK cents 24.80 HK cents

Dividend Payout Ratio 40% 38%

Key Financial Ratios

31 December 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

48%

TCL Corporation

48%

Huizhou City

Investment Holdings

TCL Employee

Committee Public Shareholders Mr. LI Dongsheng

Directors

4%

* As at 21 February 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 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 9,600 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 9,600 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

• More than 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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