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TCL COMMUNICATION TECHNOLOGY

HOLDINGS LIMITED (02618.HK)

2011 Interim Results Presentation

Hong Kong - 8 August 2011

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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.

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Agenda

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

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1H 2011 YoY 1H 2010

4,600 33% 3,452

30.3 3% 31.1

22% 1% 21%

391 56% 250

8.5% 1.3% 7.2%

Sales Volume

(„000 Units)

Total ASP (US$)

Net Profit

Revenue & Profit

(HK$ Million)

Revenue

GP%

Financial Highlights

Net Profit%

14,228

19,451

6

14%

17%18%

22% 22% 22%

10%

15%

20%

25%

Y2006 Y2007 Y2008 Y2009 Y2010 1H 2011

Wi-Fi

3G Android

Touch & Qwerty EDGE Social Networking

Entry Multimedia Touch

ULC Full Keyboard SMS Phone

VGA Phone GPRS Messaging Side Slider

Sustainable Gross Margin

Gross Margin

7

14

113

69

181

202

250

180

211

-50

0

50

100

150

200

250

300

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Brand Value & Customer Relationship

Product Competitiveness

Operational Efficiency

Financial & Pricing Strategy

Economies of Scale

Sustainable Strong Profitability

Net Profit

(HK$ Million)

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(HK$ Million)

30 June 2011

31 December 2010

Change

Non-current assets 1,122 635 77%

Current assets

-Inventories 1,093 780 40%

-Trade receivables 1,977 2,535 -22%

-Cash and cash equivalents 1,239 1,345 -8%

-Pledged deposits 6,998 6,201 13%

-Other current assets 1,033 758 36%

Total current assets 12,340 11,619 6%

Current liabilities

-Interest bearing bank and other borrowings (7,348) (6,488) 13%

-Trade and notes payables (1,508) (1,843) -18%

-Other current liabilities (2,065) (1,683) 23%

Total current liabilities (10,921) (10,014) 9%

Net current assets 1,419 1,605 -12%

Total assets less current liabilities 2,541 2,240 13%

Non-current liabilities (31) (18) 72%

Net assets 2,510 2,222 13%

Statement of Financial Position

Financial Position Highlights

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

RMB foreign exchange program

** Excluding RMB foreign exchange program

*** Special dividend

Gearing Ratio * 10% 8%

Current Ratio * * 1.35 1.40

Trade Receivables Turnover Days 76 69

Inventories Turnover Days 51 36

EPS (1H 2011/1H 2010) 35.49 HK cents 23.30 HK cents

Interim Dividend per Share 13.8 HK cents 8 HK cents ***

Dividend Payout Ratio 39% 34%

Key Financial Ratios

30 June 2011 31 December 2010

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Sustainable Growth in 1H 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 Q2 2011, new models of 3G Android smartphones

successfully launched

• In February and May 2011, Ningbo and Chengdu R&D Centers

were established respectively to enhance in-house R&D

capabilities and accelerate high-end smartphones development

• 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

1H 2011 Highlights

• Sales Volume: 19.5 million units, up 37% YoY, on track of sustainable

growth, despite Japan earthquake disruption and weak global

handsets demand in May and June 2011

• Revenue: HK$4.6 billion, up 33% YoY

• Net Profit : HK$391 million, up 56%YoY

• Basic EPS increased to 35.49 HK cents from 23.30 HK cents YoY

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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

Q2

2011

2,276 2,782

4,240

6,825

5,789

8,439

9,504

12,491

8,715

10,736

Stable Growth in Sales Volume

Quarterly Sales Volume of Handsets and Other Products

„000 units

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Business Review

Europe, Middle East and Africa (“EMEA”)

• Shipment in 1H 2011 totaled 7.3 million units, surged 45% YoY

• Broadened customer base and distribution channels in Russia and

southern part of Africa

• Expanded market penetration into southern part of Africa and CIS countries

• Open market continued to grow in Western European countries with

diversified product portfolio

Americas

• Shipment in 1H 2011 totaled 9.4 million units, significantly up 36% YoY

• Strengthened sales in existing markets such as Brazil (1,265% YoY),

Argentina (287% YoY) and Mexico (78% YoY)

• Successful broaden in open market and distribution channels in Cuba and

Venezuela

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

• Ranked No.4 in Latin America in terms of shipments

+45%

+36%

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Asia Pacific

• Shipment in 1H 2011 totaled 1.1 million units, up 15% YoY

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

Vietnam, Singapore and India

• Expansion into new markets such as Bangladesh and lined up with new

operators

• Diversified product mix to strengthen brand image

The PRC

• Shipment in 1H 2011 totaled 1.7 million units, up 27% 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

• Widened sales network nationwide by cooperating with distributors like

Suning Appliance (“蘇寧電器”) and Zhongyu Telecom (“中域電訊”)

• Strengthened ALCATEL ONE TOUCH Flagship Store place in handset

category in TaoBao Mall (“淘寶商城”) and 360Buy (“京東商城”)

Business Review

+27%

+15%

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Innovation

Smartphones

Design

“Step-up” Product Strategy

Quality

Competitiveness

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3G Android Products Selected by Global Mainstream Operators and Distributors

3G Android models (e.g. ONE TOUCH 990, ONE TOUCH 908,

ONE TOUCH 980, etc) have been selected by global mainstream

operators and distributors in Americas, EMEA, APAC and China;

new model ONE TOUCH 910 will be launched in 2H 2011

Americas EMEA

The PRC

APAC

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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

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The best of Android experience. Touch - Text - Speed

5 megapixel auto focus & capacitive touch

Android 2.2 - Pre-embedded apps

E-compass

2.8”

Display

G-sensor

3G+

5.0

Megapixel

GPS 32GB

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Office

E-book

TV

Wi-Fi

7”

display

32GB

Capacitive

Touch

5.0 Mpxl

Slim design Dazzling colourful cover

High resolution visual enjoyment

Android 2.3 perfect experience for smart users

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Facebook dedicated phone

Dedicated Software and Hardware custom

2 megapixel camera

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Brand Building

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Brand Building

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Outlook Year of Growth in 2011

Reiterate 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

Continued Efforts in Smartphone Penetration and New Models to Be

Launched in 2H 2011

3G Android models (e.g. ONE TOUCH 990, ONE TOUCH 908, ONE TOUCH 980, etc) have been selected by first tier operators

Expect smooth and shorter validation process for future models and effectively reduce product launch lead time

New model ONE TOUCH 910 will be launched in 2H 2011

Continue to Make Improvement in PRC Market

A series of 3G Android products including tablet will be launched in 2H 2011

Conduct more marketing campaigns for smartphone

Sustained Strong Growth Momentum

Strong growth momentum sustained in existing markets by gaining market share from competitors and successfully entered new markets, e.g. southern part of Africa

Line up with major operators and distributors in Brazil and USA to strengthen Sales in Americas

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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

48.2%

TCL Corporation

48.4%

Huizhou City

Investment Holdings

TCL Employee

Committee Public Shareholders Mr. LI Dongsheng

Directors

3.4%

* As at 30 June 2011

Company Overview

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

• A multi-cultural workforce over 8,900 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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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 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 8,900 employees around the world

Global Presence

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• 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

Durable Flip Testing Abrasion Testing

Electrostatic Testing Durable Press Testing

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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 TI,

MTK , QUALCOMM & BROADCOM

SMT production line Testing center Main building

Manufacture center in Huizhou, China 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 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

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

About 30 years in various

aspects of electronics

industry

Over 19 years experience

of research, development

and management in

electronics industry

With PhD major in

Electrocircuit & System

and MBA degree

Mr. WANG Jiyang

Senior Vice

President and

Executive Director

Prof. Kwok Hai 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

• 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

CFO & Senior Vice President of Business Strategy

• 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 & Executive Director

•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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