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TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED(02618.HK)

2010 Annual Results PresentationHong Kong - February 25th, 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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Financial Highlights

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2010 YoY 2009

8,701 100% 4,361

31 11% 35

34 3% 35

22.4% 0.6% 21.8%

702 2,952% 23

8.1% 7.6% 0.5%

Sales Volume

(„000 Units)

16,123

36,223

Total ASP (US$)

Net Profit

Revenue & Profit

(HK$ Million)

Revenue

GP%

Financial Highlights

Own Brand ASP (US$)

Net Profit%

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Wi-Fi

3G Android

Touch & Qwerty EDGE Social Networking

Entry Multimedia Touch

ULC Full keyboard SMS phone

VGA PhoneGPRS Messaging Side Slider

Sustainable Uptrend in Gross Profit Margin

Gross Profit

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Strong Profitability

Brand Value & Customer Relationship

Product Competitiveness

Operational Efficiency

Financial & Pricing Strategy

Economies of scale

Operating Profit

(HK$ Million)

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Income Statement Highlights

Income Statement

Highlights

(HK$ Million) Y2010 Y2009 Change Q4 2010 Q4 2009 Change

Sales Volume („000 Units) 36,223 16,123 +125% 12,491 6,825 +83%

Revenue 8,701 4,361 +100% 3,093 1,960 +58%

Gross profit 1,948 949 +105% 702 516 +36%

Gross profit margin（%) 22.4% 21.8% +0.6% 22.7% 26.3% -3.6%

Net profit 702 23 +2,952% 250 113 +121%

EBITDA 785 163 +382% 251 136 +85%

Net Operating Cashflow (as stated) 731 166 +340% 371 1 +370%

EPS (HK Cents) 64.69 2.51 +2,477% 23.05 12.39 +86%

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(HK$ Million) 31 December 2010 31 December 2009 Change

Non-current assets 635 488 +30%

Current assets 11,619 6,278 +85%

-Inventories 780 448 +74%

-Cash and cash equivalents 1,345 1,170 +15%

-Restricted deposits received from rights issue excess application - 1,604 N/A

-Trade receivables 2,535 1,304 +94%

-Pledged deposits 6,201 1,187 +422%

-Other current assets 758 565 +34%

Current liabilities (10,014) (5,310) +89%

-Interest bearing bank and other borrowings (6,488) (1,461) +344%

-Trade and notes payables (1,843) (1,074) +72%

-Other payable arising from rights issue excess application - (1,604) N/A

-Other current liabilities (1,683) (1,171) +44%

Net current assets 1,605 968 +66%

Other non-current liabilities (18) (361) -95%

Net assets 2,222 1,095 103%

Financial Position Highlights

Financial Position

Highlights

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Gearing Ratio* 8% 11%

Current Ratio* * 1.40 1.24

AR Turnover Days 69 81

Inventory Turnover Days 36 42

ROE 64% 2%

EPS 64.69 HK cents 2.51 HK cents

Proposed Final Dividend Per Share 16.8 HK cents 3.5 HK cents

Full Year Dividend Per Share 24.8 HK cents 3.5 HK cents

Dividend Payout Ratio 38% 139%

Key Financial Ratios

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

** Excluding the arbitrage operation.

31 December 2010 31 December 2009

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Business Review & Outlook

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Y2010 Highlights

Sales Volume: 36.2 million units, up 125% YOY

Revenue: HKD8.7 billion, up 100% YOY

Net Profit : HKD702 million, up 30 fold YOY

Basic EPS increased to 64.69 HK cents from 2.51 HK cents of 2009

Year of Growth in

2010 with NEW

Record High

Continuing Geographic Expansion

“Step-up” Product Strategy

Brand Building in Open Market

Complementary ODM Strategy

Four Growth

Drivers Leading to

Growth Momentum

Successful launch of Group‟s 1st 3G Android smartphone & tablet

OT-806 won iF award & Kapok Prize

OT-808 won China Red Star Design Award & Kapok Prize

One of core patents won China Patent Award of Excellence

Successful

Expansion in Mid-

to High End Market

with Strong R&D

Capabilities

Successful turnaround to be profitable

Nationwide sales network established successfully

Launched UnionPay Online (“銀聯在線”) Phone

and Sina Twitter(“新浪微博”) Phone

Sustainable

Development in the

PRC Market

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Record High in Sales Volume

Quarterly Sales Volume of Handsets and Accessories

„000 units

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

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* Source: iSuppli, presenting handset only, and adjustment was made to include TCL-Alcatel ODM business.

Top-10 Cell Phone Brands in the Fourth Quarter of 2010 (Ranking by Unit Shipments in Millions)

Q4 10

RankBrand

Q4 09

Shipments

Q3 10

ShipmentsQ3 10 Share

Q4 10

ShipmentsQ4 10 Share

Q4 10

Sequential

Growth

Q4 10 YOY

Growth

1 Nokia 126.9 110.4 34% 123.7 33% 12% -3%

2 Samsung 68.8 71.4 22% 80.7 22% 13% 17%

3 LG Electronics 33.9 28.4 9% 30.6 8% 8% -10%

4 ZTE 13.4 15.1 5% 22.2 6% 47% 66%

5 Apple 8.7 14.1 4% 16.2 4% 15% 86%

6 RIM 10.1 12.1 4% 14.2 4% 17% 41%

7 TCL-Alcatel* 6.5 8.8 3% 11.8 3% 34% 82%8 Motorola 12 9.1 3% 11.3 3% 24% -6%

9 Sony Ericsson 14.6 10.4 3% 11.2 3% 8% -23%

10 Huawei 11 6.9 2% 11.2 3% 62% 2%

Others 28.7 41.4 13% 39.2 11% -5% 36%

Total Handsets 334.6 328.1 100% 372.3 100% 13% 11%

Moving Up On Competitive Ranking

“Alcatel 4th Largest OEM in LATAM region”Source: IDC Latin America Mobile Phone Tracker, Q2 2010

#7 Global Handset Manufacturer

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Business Review

6.3m units

13.4m units

+109%

6.4m units

18.8m units

+194%

Europe, Middle East and Africa (“EMEA”)

• Shipment in 2010 totaled 13.4 million units, up 109% YOY

• Broadened customer base and distribution channels

• Positive sales trend in Western European countries with expanded

product portfolio

• The Group‟s 1st Android 3G smartphone OT-980 launched in UK with

positive feedback

• Ranked No. 4 in Russia in terms of shipments

Americas

• Shipment in 2010 totaled 18.8 million units, up 194% YOY

• “ALCATEL” as one of Top 4 brands in Latin America

• Successful expansion in open market and distribution channels in

Argentina and Chile

• Cultivate in new & high potential markets such as USA, Brazil and Cuba.

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Asia Pacific

• Shipment in 2010 totaled 1.9 million units, significantly up 217% YOY

• Expansion into new markets like the Philippines, Singapore, India, etc

• Diversified product mix to strengthen brand image

• Lined up with Yahoo and launched “One Touch Net” with positive response

The PRC

• Shipment in 2010 totaled 2.1 million units, a 23% YOY decrease due to

decline in ODM business

• Successful turnaround to be profitable

• Expanded sales network nationwide with over 1,300 retail shops

• Lined up with mainstream Internet providers such as Sina, Sohu, Baidu

and developed products with popular local content features

• Successfully launched UnionPay Online (“銀聯在線”) Phone and SinaTwitter (“新浪微博”) Phone with positive feedback

• ALCATEL Flagship Store placed Top 5 of handset category in TaoBao Mall

(“淘寶商城”)

0.6m units

1.9m units

+217%

2.8m units

2.1m units-23%

Business Review

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“Step-up” Product Strategy

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

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Smart TouchSmart design Smart experience For Smart users

Powerful & Intuitive

Capacitive touch, gesture control, proximity & light sensor

5.0 MpxlWi-Fi3G+ 3.5”

display

32GBG-SENSOR

Capacitive

TouchAGPS

Y2011 New Products

One Touch990

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One Touch910

Wi-Fi3G+ 32GBG-SENSORCapacitive

Touch

AGPS2.8”

display5.0 Mpxl

Y2011 New Products

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One TouchA906

Android ExperienceSweet spot. Android brought to the masses

Compact mainstream design

Android 2.2 – Pre-embedded apps

3G E-mailResistive

Touch

Opera

mini

2.0 Mpxl Music

player

32GBBluetoothJava

Y2011 New Products

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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 Mpxl2.8”

display

G-sensor

EDGE AGPS

One Touch890

Y2011 New Products

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One TouchTab

Smart Navigator7” 800x480 display perfect for carry and read

Flex move Home Internet Terminal

Customised dedicated UI & content

WiFi 802.b/g/n, 3G compatible

720P Video Playback, HDMI output

Y2011 New Products

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Brand Building2011 Las Vegas Consumer Electronics Show

2011 Barcelona Mobile World Congress

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Outlook Year of Growth in Y2011

Four growth drivers continue - further expansion in USA, Russia, Brazil and PRC, secure our position in 3G Android

smartphones segment, and continue strategic ODM business

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

Further Development - New Product Mix

Over 100 new models to be launched in Y2011, including 3G Android smartphones and a series of tablets

Enter into strategic alliance with Sagem Mobile in France to establish TCL Ningbo R&D Center to enhance in-house R&D

capabilities and to accelerate high-end smartphones developments. Strengths of new R&D Center include:

Experienced in product developments with 1st tier operators,

such as Vodafone and Orange

Possessed world-class quality R&D capabilities, know-how

in developing 3G Android smartphones and other

advanced technologies such as Near Field Communications

(NFC)

Strong in mechanic design as evidenced in the distinctive

work done for “Porsche Phone”

Global experience in ODM/OEM business such as with Puma

and Sony Ericsson.

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Outlook

Breakthrough in PRC Market

Several new models have been selected by China Mobile and China Unicom,

and will be launched in the market in near future

Broader product segmentation to lead the trend in “3C” era, promotion convergence of

connected devices and tablets, through the tri-networks integration (三網融合)

Further development in E-Commerce and more advertising & marketing resources will

be spent on brand building

New Production Plant for Future Growth

Upgrade infrastructure including construction of

new production plant with a site over 300,000 sq. meter

to further increase annual production capacity up to

130 million units for future sustainable developments

Proceeds to be raised from the proposed issue of

Taiwan Depositary Receipts (“TDR”) mainly to finance

the construction of new production plant

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Q & A Session

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Appendix: Company Overview

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• TCL Communication Technology Holdings Limited (“TCL Communication”) is a

member company of TCL Corporation. It is listed on Hong Kong Stock

Exchange (Stock code: 02618.HK).

• TCL Communication is a China-based, global-oriented mobile handsets provider

with a multi-cultural workforce of over 7,600 employees.

• Two strong brands: “TCL” and “ALCATEL ONE TOUCH”.

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

Brand Design Lab and MID.

One Company,

Multiple Brands

ODM

BUSINESS

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Company Overview

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

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

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED

(02618.HK)

Public Shareholders

50.14%

TCL Corporation

47.12%

Huizhou City

Investment HoldingsPhilips

TCL Employee

Committee Other & PublicMr. LI Dongsheng

Directors

2.74%

* As at 18 Feb 2011

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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

• Global presence across over 100 countries and regions

• 105 repair centers, over 50 offices, over 7,600 employees around the world

Shenzhen:

- Headquarter

- R&D Center

Huizhou:

- Global factory

- R&D Center

Shanghai:

- R&D CenterParis:

- Sales Center

Mexico City:

- Sales Center

Global Presence

Ningbo:

- R&D Center

California:

- Sales Center

Chengdu:

- R&D Center

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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

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• Annual production capacity of approximately 60

million units

• 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

High Efficient

Production Facilities

SMT production line Testing centre Main building

Manufacture center in Huizhou, China

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Engaged in teaching and research in Electrical Engineering for a long time

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 electronicsindustry

Mr.GUO AipingCEO and Executive Director

Extensive experience in overall management of multinational company, strategic planningand development

Graduated from Stanford University with Master degree in Engineering Economics and System and Doctor degree in Management Science and Engineering

Mr. BO LianmingNon-executiveDirector

Over 10 years of experience in consumer electronics products industryWith Doctor’s

degree in Business Management

Mr. HUANG XubinNon-executiveDirector

Rich experience in finance areaWith Master’s

degree in Economy and an EMBA Degree

Ms. XU FangNon-executiveDirector

Vice President and Human Resource Director of TCL Corporation,Distinguished

professor at Shantou University

Mr. LAU Siu KiIndependent Non-executive Director

Fellow member of both HKICPA and ACCAWith profound

financial and accounting expertise

Mr. SHI CuimingIndependentNon-executiveDirector

An engineer Served in

Ministry of Posts and Telecommunications for many years

Mr. Andrew LookIndependentNon-executiveDirector

Over 20 years' experience in equity investment analysisBest Hong Kong

strategist and best analyst by Asiamoneymagazine

Mr. LIU Chung LaungIndependentNon-executiveDirector

Board of Directors

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Executive Committee

Mr. Guo Aiping, George

CEO & Executive Director

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

• Graduated from Stanford University with Master degree in Engineering Economics and System and Doctor degree in Management Science and Engineering

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 of the Company & General Manager of Americas

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

• Graduated from É cole Superieure de Commerce de Lyon and ESADE Business School with an MBA

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, a MBA and a 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 a PhD major in Electrocircuit & System and an MBA Degree

Mr. Yves Morel

Senior Vice President & General Manager of EMEA

• 26 years sales and marketing experience mainly in Telecom industry

• Contributed to develop sales area such as Russia, central Europe, Middle East, Africa and at a later stage Western Europe

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