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

2013 AGENDA

BUSINESS REVIEW & OUTLOOK

FINANCIAL HIGHLIGHTS

Q & A

2 BUSINESS REVIEW & OUTLOOK

3 2013 OVERVIEW

2013 ANNUAL RESULTS •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

BUSINESS 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

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

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

Q4 2013 Q4 2013 QoQ YoY RANK COMPANY SHIPMENTS MARKET SHARE GROWTH RATE GROWTH RATE (M UNITS) (%) (%) (%) 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

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

5 INDUSTRY RANKING NO.10 GLOBAL SMARTPHONE MANUFACTURER

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

6 GEOGRAPHICAL REVENUE BREAKDOWN

FEATURE PHONES & OTHER PRODUCTS SMARTPHONES & OTHER SMART DEVICES

CHINA CHINA APAC 4% APAC 9% 10% 6%

AMERICAS AMERICAS 41% EMEA 51% 35% EMEA 44%

7 REGIONAL BUSINESS REVIEW

EUROPE, MIDDLE EAST Revenue +73% (HK$ Billion) 8.0 •Shipments: 20.5 million units, up 35% YoY 6.0 •Revenue: HK$7.8 billion, up 73% YoY •Ranked No. 4 in Eastern European region in terms of Q4 sales 4.0 volume 4.5 7.8 •Most significant growth countries (YoY sales volume growth %): 2.0 Russia (+122%); United Kingdom (+55%) •2014 business plan: Expand the sales network to Nordic countries 0.0 and launch more LTE smartphones 2012 2013

AMERICAS Revenue 10.0 +71% •Shipments: 26.1 million units, up 37% YoY (HK$ Billion) •Revenue: HK$8.7 billion, up 71% YoY 8.0 •Introduced ALCATEL ONETOUCH FIRE with Firefox OS 6.0 •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 4.0 sales volume •Most significant growth countries (YoY sales volume growth %): 2.0 5.1 8.7 Mexico (+103%); USA (+78%) •2014 business plan: Consolidate position with the newly set up sales 0.0 channels. Smartphones & tablets will be the growth driver 2012 2013

8 REGIONAL BUSINESS REVIEW

ASIA PACIFIC Revenue 2.0 (HK$ Billion) +81%

1.5 •Shipments: 3.8 million units, up 50% YoY •Revenue: HK$1.5 billion, up 81% YoY 1.0 •Most significant growth countries (YoY sales volume growth %): Malaysia (Newly entered market) ; India (+138%) 0.5 0.8 1.5 •Ranked No.2 in Malaysia, No. 1 supplier of major operators in the Philippines 0.0 •2014 business plan: Widen sales channels in open markets 2012 2013 and strengthen existing sales points

Revenue 2.0 -11% CHINA (HK$ Billion) •Shipments: 4.8 million units, down 16% YoY 1.5 •Revenue: HK$1.4 billion, down 11% YoY •Enhanced sales channels through with greater cooperation with 1.0 operators in major provinces, including Jiangsu, Inner Mongolia, 1.6 1.4 Hebei, Sichuan, Chongqing and Shanxi 0.5 •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 0.0 China Communications Industry Association 2012 2013 •2014 business plan: Strengthen sales points with operators and distributors 9

- STRATEGY - - - Tablets Quad-core CPU Octa-core CPU 6.45mm Thickness Metal casing Android 4.2 Wearable devices Firefox Android 4.4 Cloud applications 4K video Multi-screen Wifi display on TV - LTE 650MHz-1.5GHz Dual-core CPU Android 4.0 - 4.1 - Windows 500MHz-600MHz Android 2.1 - 2.3 3G

EDGE Qwerty keypad Entry-level Multi-touch display Multi-touch Panel Technology GPRS, Ultra-low cost Qwerty key pad

2007-08

Entry-level Advanced EDGE Phone Entry-level Advanced Cloud terminals / LTE/Tablet Feature Phone Feature Phone Smartphone Smartphone Smart Connectivity Devices

10 PRODUCTS SELECTED BY GLOBAL MAINSTREAM OPERATORS & DISTRIBUTORS

USA

LATAM

EMEA CHINA APAC

11 NEW PRODUCTS

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

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

12 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

Quad Core 1.2 GHz CPU Quad Core 1.2 GHz CPU display 4.5 display Full lamination Full lamination 8 Mpxl rear camera 8 Mpxl rear camera LTE Cat4. NFC LTE Cat4. NFC 2150mAh battery 2000mAh battery 7.45mm thickness 8.5mm thickness

13 NEW PRODUCTS

Dual Core 1.3 GHz CPU 1024X600 TFT Display Super thin: 8.9mm Super light : 285 g Narrow Border Dedicated accessories Two Connectivity Mode:

Quad Core 1.3 GHz CPU

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

14 NEW GLOBAL PRODUCTION FACILITY

WORLD CLASS STANDARD PRODUCTION FACILITY

•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

15 BRAND BUILDING & AWARDS IN EMEA & AMERICAS

ONETOUCH IDOL X+ awarded one CES 2014, USA of Digital Trends Best Smartphone Finalist in CES

International Incubation Programme: Le Project, France

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

16 BRAND BUILDING IN APAC & CHINA

IDOL X+ Product Launch, China

Product Promotion, Malaysia

MTR Advertisement, Hong Kong

Concert Title Sponsorship, Hong Kong

Outdoor Billboard, Hong Kong

17 OUTLOOK

CHALLENGES & OPPORTUNITIES •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

EXECUTION PLANS •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

GOAL & FORECAST •2014 full year revenue growth target: 35% versus 2013 •LTE smartphones and tablets are the main growth drivers in 2014

18 FINANCIAL HIGHLIGHTS

19 FINANCIAL HIGHLIGHTS

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

19,362 Q4 2013 Q4 2012 YOY (%) 2013 2012 YOY (%)

+61% Sales Volume 19,174 13,439 +43% 55,201 42,608 +30%

12,031 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 2012 2013

20 SUSTAINABLE REVENUE GROWTH QUARTERLY REVENUE OF HANDSETS & OTHER PRODUCTS

Revenue HK$ Billion Smartphone & Other Smart Devices Feature Phone & Other Products 8.0 7.5

7.0

2.3

6.0 5.5

5.0 2.1 3.9 4.0 4.0

3.1 3.2 3.0 3.1 1.5 3.0 2.8 2.5 2.4 2.2 2.0 2.1 2.1 1.9 1.5 2.0 1.2 2.0 1.5 5.2 3.0 2.1 2.4 2.4 2.6 1.5 2.5 3.4 1.0

0.1 0.0 0.1 0.4 0.6 0.6 1.1 1.6 1.9 1.2 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013

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

ASP (USD) Sales Proportion of Smartphone & Other Smart Device (%) 55 50.0% ASP Sales Proportion of Smartphone & Other Smart Devices

50.2 50 40.0% 40.0% 45.4 45 33.7% 30.0% 41.8 40 26.7% 37.1 37.1 37.0 35.6 20.0% 34.6 35 18.8% 33.4 17.4% 17.1%

31.3 31.2 13.5% 10.0% 30 29.6 9.5%

0.3% 1.3% 5.5% 4.4% 25 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013

22 GROSS MARGIN TREND GROSS MARGIN

25.0% 22.4% 21.8% 21.9%

19.6% 19.6% 20.0% 18.4% 17.9% 17.4% 17.0% 16.4% 14.4% 15.0% Continuous Cost Brand Value and Down Effort Customer Relationship Pricing and Currency Strategy 10.0% Economies of Scale Product Competitiveness 5.0%

0.0% 2006 2007 2008 2009 2010 2011 2012 Q1 Q2 Q3 Q4 2013 2013 2013 2013

23 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

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

* 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 Q & A

26 THANK YOU

27 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.

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