TCL COMMUNICATION TECHNOLOGYHOLDINGS LIMITED (2618.HK)2015 Annual Results Presentation Hong Kong · 23 March 2016

2AGENDA

Q&AFINANCIAL HIGHLIGHTS BUSINESS REVIEW & OUTLOOK

FINANCIAL HIGHLIGHTS

4FINANCIAL HIGHLIGHTS

Total Sales Vol.(’000 units)

Incl. Sales Vol. of SmartDevices (’000 units)

Total ASP (US$)Revenue

Gross Profit Margin (%)Net Profit

Net Profit Margin (%)

Basic EPS (HK Cents)

Income Statement

(HK$ Million)Q4

2015Q4

2014 YoY(%) 2015 2014 YoY(%)

24,653 24,877 -1% 80,048 73,487 +9%

13,441 15,532 -13% 44,524 41,465 +7%43.3 55.1 -21% 46.0 53.5 -14%

8,275 10,695 -23% 28,558 30,691 -7%23.4% 19.2% +4.2% 21.1% 19.3% +1.8%

285 366 -22% 1,057 1,108 -5%3.4% 3.4% - 3.7% 3.6% +0.1%

22.82 30.21 -24% 84.60 91.58 -8%

5

QUARTERLY REVENUE OF HANDSETS & OTHER PRODUCTSSUSTAINABLE REVENUE GROWTH

0.6 1.1 1.6 1.9 1.2 2.5 3.4

5.2 4.3 5.4 6.8

9.6

6.0 5.9 6.2 7.3

1.5 1.9 1.5 2.0

1.2 1.5

2.1

2.3 1.2

1.3 1.0

1.1

0.7 0.6 0.9 1.0

2.1 3.0 3.1

3.9 2.4

4.0 5.5

7.5

5.5 6.7

7.8

10.7

6.7 6.5 7.1 8.3

0

3

6

9

12

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Smart Devices

Feature Phones and Other Products

Revenue (HK$ Billion)

6QUARTERLY SALES VOLUME OF TABLETS

63

289

513

1,099

718

986

1,339 1,315

0

350

700

1,050

1,400

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Volume ('000 unit)

34.6 35.6 37.1 37.1 37.041.8 45.4

50.2 52.2 52.4 53.4 55.1 54.747.1 42.0 43.3

10% 14% 19% 17% 17%27%

34%40%

46%53% 58% 62% 62%

56% 53% 55%

0%10%20%30%40%50%60%70%80%90%100%

01020304050607080

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

ASP（US$） Smart Devices Proportion

7

Smart Devices Proportion （%）ASP (US$)

SMARTPHONES SALES VOLUME PROPORTION & ASPREFINED PRODUCT PORTFOLIO STRATEGY

8

GROSS MARGIN TRENDSUSTAINABLE HEALTHY RANGE

17.4%19.0% 19.3% 19.1% 19.5%

21.8%23.4%

0%

5%

10%

15%

20%

25%

2012 2013 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Product Competitiveness

Economiesof Scale

Pricing and Currency Strategy

Brand Value and Customer

Relationship

Continuous Cost-Down

Effort

GP Margin (%)

9

FINANCIAL POSITION HIGHLIGHTSSTATEMENT OF FINANCIAL POSITION

(HK$ Million) 31 December 2015

31 December 2014 Change (%)

Non-current assets 4,364 3,691 +18%Current assets

Inventories 2,541 3,293 -23%Trade & factored receivables 6,095 8,244 -26%Other current assets 2,013 2,081 -3%Pledged deposits 1,028 1,914 -46%Cash and cash equivalents 566 473 +20%

Total current assets 12,243 16,005 -24%Current liabilities

Interest-bearing bank and other borrowings (3,074) (4,312) -29%Other current liabilities (4,154) (5,929) -30%Trade and notes payables (4,790) (5,167) -7%

Total current liabilities (12,018) (15,408) -22%Net current assets 225 597 -62%Total assets less current liabilities 4,589 4,288 +7%Non-current liabilities (551) (109) +406%Net assets 4,038 4,179 -3%

10KEY FINANCIAL RATIOS

31 December 2015 31 December 2014Gearing Ratio 20% 22%Current Ratio 1.02 1.04Trade Receivables Turnover Days* 89 72Inventories Turnover Days ** 26 37NAV Per Share HK$ 3.16 HK$ 3.43Basic Earnings Per Share 84.60 HK cents 91.58 HK centsInterim Dividend Per Share 12.80 HK cents 12.80 HK centsFinal Dividend Per Share 21.00 HK cents 26.00 HK centsFull Year Dividend Per Share 33.80 HK cents 38.80 HK centsDividend Payout Ratio 40% 42%

* Excluding factored trade receivables** Only inventories in factory

BUSINESS REVIEW& OUTLOOK

12 2015 OVERVIEW ANNUAL RESULTS

BUSINESS OVERVIEW

• Sales Volume: 80 million units, up 9% YoY(including 44.5 million units of smart devices, up 7% YoY）Ranked No.5 of the Global Top 10 Handset Brand(Source: 2015 FY Gartner and Company Data)

• Revenue: HK$ 28.6 billion, down 7% YoY• Net Profit: HK$ 1.06 billion, down 5% YoY• Basic EPS: Decreased to 84.60 HK cents from 91.58 HK cents• Proposed Final Dividend: 21.00 HK cents• Full Year Dividend Payout

Ratio:40 %

• Healthy gross margin: Took a more stringent approach in controlling risk and focused on business with high profitability. Gross margin increased to 21.1%

• Sustainable growth in internet applications andservice business:

Over the full year of 2015, cumulative number of activated users of mobile internet application platform increased 2 times YoY to 23.6 million; Meanwhile, the settlement amount of third-party payment increased almost 1.5 times YoY to HK$ 3.6 billion

INDUSTRY RANKING - TOTAL PHONES NO. 5 GLOBAL HANDSET BRAND

RANK COMPANY2015 2014 YoY

GROWTHRATE (%)SHIPMENTS

(MILLION UNITS)MARKET

SHARE (%)SHIPMENTS

(MILLION UNITS)MARKET

SHARE (%)1 Samsung 388.8 20.3 392.5 20.9 -1.02 Apple 225.9 11.8 191.4 10.2 +18.03 Microsoft-

Nokia 118.0 6.2 185.7 9.9 -36.54 Huawei 105.3 5.5 70.5 3.8 +49.35 TCL-

alcatel 79.2 4.1 71.5 3.8 +10.76 LG 73.7 3.8 76.1 4.1 -3.17 Lenovo-

Motorola 73.7 3.8 84.0 4.5 -12.38 Xiaomi 65.6 3.4 56.5 3.0 +16.19 ZTE 61.0 3.2 53.9 2.9 +13.2

10 OPPO 40.8 2.1 20.8 1.1 +96.2Others 685.3 35.8 675.9 35.8 +1.4TOTAL 1917.3 100.0 1,878.8 100.0 +2.0

TOP 10 MOBILE PHONE BRANDS IN FY 15 (Source: Gartner and Company Data)

No.5

13 +COMPANY DATA

INDUSTRY RANKING – SMARTPHONESNO. 8 GLOBAL SMARTPHONE BRAND

RANK COMPANY2015 2014 YoY

GROWTHRATE (%)SHIPMENTS

(MILLION UNITS)MARKET

SHARE (%)SHIPMENTS

(MILLION UNITS)MARKET

SHARE (%)1 Samsung 320.2 22.5 307.6 24.7 +4.12 Apple 225.9 15.9 191.4 15.4 +18.03 Huawei 104.1 7.3 68.1 5.5 +52.94 Lenovo-

Motorola 72.7 5.1 81.4 6.5 -10.65 Xiaomi 65.6 4.6 56.5 4.5 +16.16 LG 60.3 4.2 57.7 4.6 +4.77 ZTE 50.0 3.5 41.1 3.3 +21.78 TCL-

alcatel 43.6 3.1 39.5 3.2 +10.59 OPPO 39.5 2.8 20.5 1.6 +92.610 BBK 35.3 2.5 20.4 1.6 +72.9

Others 406.7 28.5 360.5 29.1 +12.8TOTAL 1423.9 100.0 1,244.7 100.0 +14.4

TOP 10 SMARTPHONE BRANDS IN FY 15 (Source: Gartner and Company Data)

No.8

14+COMPANY DATA

No.7

INDUSTRY RANKING – TABLETNO. 7 GLOBAL TABLET BRAND

TOP 10 TABLET BRANDS IN FY 15 (Source: Gartner and Company Data)

No.7

15+COMPANY DATA

RANK COMPANY2015 2014 YoY

GROWTHRATE (%)

SHIPMENTS(MILLION UNITS)

MARKET SHARE (%)

SHIPMENTS(MILLION UNITS)

MARKET SHARE (%)

1 Apple 50.6 25.9 64.4 28.6 -21.42 Samsung 30.7 15.7 37.1 16.5 -17.23 Lenovo 11.0 5.6 11.2 5.0 -2.24 Huawei 6.9 3.5 3.0 1.3 +130.15 Asus 6.1 3.1 10.1 4.5 -39.66 Amazon 4.6 2.4 5.2 2.3 -11.57 TCL-

alcatel 4.4 2.2 2.0 0.9 +122.08 LG 4.2 2.1 2.6 1.2 +60.79 Microsoft 3.4 1.8 2.3 1.0 +46.310 Acer 2.6 1.3 4.5 2.0 -43.0

Others 70.6 36.4 82.8 36.7 -17.1TOTAL 195.1 100.0 225.2 100.0 -13.4

16

NORTH AMERICA

29%

LATIN AMERICA

29%

EUROPE29%

MEA8%

APAC1%CHINA

4%

2015 GEOGRAPHICAL REVENUE BREAKDOWNFEATURE PHONES & OTHER PRODUCTS SMART DEVICES

NORTH AMERICA

23%

LATIN AMERICA

31%

EUROPE 25%

MEA 11%

APAC 3% CHINA

7%

10.1 9.0

2014 2015

17

5.8 6.7

2014 2015

+15%

-11%

REGIONAL BUSINESS REVIEWNORTH AMERICA• Sales volume: 14.5 million units, up 73% YoY; Revenue: HK$ 6.7 billion, up 15% YoY • Sales volume of smart devices: 6.7 million units, up 16% YoY• Q4 2015 sales volume ranking (Source: Gartner & Company data):

North America: No. 5 (total phones); No. 6 (smartphones) • Consolidated operator channels, enhanced mid-level products sales growth• 2016 business plan: Continue to enhance the product mix with an increased effort in

marketing around our flagship product line and improve the sales of 4G products

LATIN AMERICA • Sales volume: 26.4 million units, down 7% YoY; Revenue: HK$ 9.0 billion, down 11% YoY

• Sales volume of smart devices: 16.2 million units, up 14% YoY• Q4 2015 sales volume ranking (Source: Gartner & Company data):

Latin America: No. 2 (total phones); No. 3 (smartphones)Chile: No. 2 (total phones); No. 4 (smartphones)Mexico: No. 2 (total phones); No.2 (smartphones)

• Continued to monitor currency risk exposure, aiming to achieve balance between sales and margin growth

• 2016 business plan: Implement stringent cost and credit control policies, increase operational efficiency

Revenue(HK$ Billion)

Revenue(HK$ Billion)

18

EUROPE

MEA

6.8 7.2

2014 2015

+7%

2.9 3.0

2014 2015

+1%

REGIONAL BUSINESS REVIEW

• Sales volume: 21.1 million units, up 39% YoY; Revenue: HK$ 7.2 billion, up 7% YoY• Sales volume of smart devices: 11.1 million units, up 33% YoY• Q4 2015 sales volume ranking (Source: Gartner & Company data):

Europe: No. 4 (total phones); No. 5 (smartphones)Eastern Europe (excl. Russia): No. 5 (total phones); No. 8 (smartphones); No. 3 (tablets)

• Stabilising currencies helped to normalise the sales performance • 2016 business plan: Leverage the popularity of 4G networks to improve product portfolio

Revenue(HK$ Billion)

Revenue(HK$ Billion)• Sales volume: 10.1 million units, up 7% YoY; Revenue: HK$ 3.0 billion, up 1% YoY

• Sales volume of smart devices: 6.0 million units, up 18% YoY• Q4 2015 sales volume ranking (Source: Gartner & Company data):

Middle East and Africa: No. 4 (total phones); No. 6 (smartphones); No. 3 (tablets) South Africa: No. 3 (total phones); No. 2 (smartphones); No. 1 (tablets)

• Improved the sales mix of open channels• 2016 business plan: Continue to develop new markets, expand mid-range products market

share

19

APAC

CHINA

2.2

0.9

2014 2015

-60%

2.9

1.8

2014 2015

-38%

REGIONAL BUSINESS REVIEWRevenue(HK$ Billion)

Revenue(HK$ Billion)

• Sales volume: 2.1 million units, down 52% YoY; Revenue: HK$ 0.9 billion,down 60% YoY

• Sales volume of smart devices: 1.4 million units down 55% YoY• Optimised sales channels and product portfolio • 2016 business plan: Integrate online and offline platforms to enhance

e-commerce performance

• Sales volume: 5.8 million units, down 24% YoY; Revenue: HK$ 1.8 billion,down 38% YoY

• Sales volume of smart devices: 3.1 million units, down 37% YoY• 2016 business plan: Position premium products strategy, develop operators

and open markets together, enhance the open channel coverage and improve operating efficiency systematically

20 STEP-UP PRODUCT STRATEGY

2007-2010

FEATURE PHONE

EDGEPHONE

2011-2012

2013-2014

2015-2016

GPRS, Ultra-low costQwerty key pad

Entry-levelMulti-touch paneltechnology

EDGEQwerty keypadMulti-touchdisplay

2.8’’- 3.5’’ display 500MHz-600MHzAndroid2.1 - 2.3 3G

SMARTPHONE

SMART CONNECTIVITY

4G/ TABLET/CLOUD TERMINAL

2 in 1 / WEARABLE DEVICE /

MULTIPLE OS/ IoT

VIRTUAL REALITY DEVICE/ BIGPAD

2.8’’- 4.5’’ display650MHz-1.5GHzDual-core CPUAndroid 4.0 - 4.1Windows

5”-6” Display7”-10” TabletsOcta-core CPUMetal casing Android 4.4

4.5”-6” displayQuad-core CPU6.45mm thicknessAndroid 4.2Firefox Multi-screenWifi display on TV

2.8”-6” display7”-10.1” Tablets17.3” BigPadWearable devicesAndroid LWindows OSCloud applications4G

3.5”-6” display17.3” BigPadWearable device for kidsAndroid MWindows 10 Mobile Full metal bodyVR devices

NORTH AMERICA

LATIN AMERICA

EUROPE CHINA

APAC

MEA

21

·

PRODUCTS SELECTED BY GLOBAL MAINSTREAM OPERATORS & DISTRIBUTORS

22 NEW PRODUCTS

5.5” QHD AMOLED DisplayDimensions : 153.9 x 75.4 x 6.99 mm

4G LTE , supports up to Cat 6Octa core CPU

16 Mpxl rear camera3000 mAh battery

300% ReversibleBoom Key

VR–in-the box

5.2'‘ FHD IPS DisplayDimensions : 147 x 72.5 x 7.1 mm4G LTE, supports up to Cat 6Octa core CPU13 Mpxl rear camera2610 mAh battery300% ReversibleBoom KeyPowerhouse sound, dual stereo speakers

IDOL4 Series won 14 recognitionsin MWC 2016

23

10.1” HD IPS DisplayWindows 10 DesktopIntel Quad Core CPUDual front speakersLTE Keyboard (Wi-Fi hotspot for up to 15 users)

NEW PRODUCTS

5.5” FHD IPS Display4G LTE Cat.6Octa core CPU13Mpxl rear camera2960 mAh batteryHi-Fi quality, 3.6 WattsFingerprint recognition

Compatible with Android 4.3 andiOS 7 or above370 mAh batteryIP65 certified: dust proof and low-pressure water jetTwo-way voice call and voice messageGPS/SOS

PLUS 10 won 3 recognitionsin MWC 2016

24

0102 03

04

01. Toronto FC sponsorshipCanada

02. Launched four golden limitededitions at “Night TreasureSeeker”China

03. IFA Berlin 2015Germany

04. IDOL 4 Global Press Conference at MWC 2016Spain

BRAND-BUILDING ACTIVITIES

25

01 CES 2016U.S.

02. 2015 Autumn Press ConferenceChina

03. AfricaCom 2015South Arica

04. LA Galaxy sponsorshipU.S.

05. Tame racing team sponsorshipMexico

01

02 03

04

05

BRAND-BUILDING ACTIVITIES

26 OUTLOOKCHALLENGES EXECUTION PLANS

GOALS & FORECAST

� A challenging macroeconomic environment with soft consumer spending

� Currency fluctuations pose a continuous headwind for sales growth

� The risks from emerging markets are mounting

� Strengthen the three pillars of growth: Key emerging markets, North America& Europe

� Continue to implement stringent credit control and hedging policies to mitigate currency fluctuation impact

� Leverage the unique advantage of an integrated “Manufacturing + Mobile Internet” company

� Establish a “Product + Services” ecosystem � Focus on healthy and sustainable growth � Rebranding marketing campaign to promote brand awareness

� Due to the prevailing weak macro economy and slack seasonal impact, Q1 2016 could be significantly weak

� 4G smartphones and tablets will continue to be the main growth drivers in 2016

� Strive to improve long-term service income

Q&A

THANK YOUDisclaimer

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 TheCompany hereby expressly disclaims any liability for any loss or damage resulting from or in connection with any reliance by any investor on theinformation 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. Theseforward-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.