Q3 2015 Results Presentation

Hong Kong, 20 October 2015

TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED (2618.HK)

BUSINESS REVIEW & OUTLOOK FINANCIAL HIGHLIGHTS Q & A

2

AGENDA

BUSINESS REVIEW & OUTLOOK

• Continuous revenue growth: Revenue growth continued despite challenging macroeconomic conditions and other foreign currency depreciation against US dollar

• Healthy gross margin: Gross margin remained at a healthy level of over 19%

• Outperforming global smartphone market: Recorded 19.8% YoY smartphone volume growth outpacing the market trend in Q2 2015 (Source: Gartner & Company Data)

• Outpacing global tablet market: Ranked No. 6 global tablet player with the fastest YoY volume growth in Q2 2015 (Source: Gartner & Company Data)

• Sustainable growth in internet applications and service business:

In the first three quarters of 2015, cumulative number of activated users of mobile Internet application platform grew by almost 3 times YoY to 18.1 million; while the settlement amount of third party payment increased almost 2 times YoY to HK$2.6 billion

• Sales Volume: 55.4 million units, up 14% YoY (including 31.1 million units of smart devices, up 20% YoY)

• Revenue: HK$20.3 billion, up 1% YoY

• Q1-Q3 Net Profit: HK$772 million, up 4% YoY

• Q3 Net Profit: HK$319 million, up 6% YoY

• Basic EPS: Increased to 61.76 HK cents from 61.11 HK cents YoY

Q1-Q3 2015 RESULTS

BUSINESS OVERVIEW

Q1-Q3 2015 OVERVIEW

4

RANK COMPANY Q2 15 SHIPMENTS (MILLION UNITS)

Q2 15 MARKET SHARE (%)

QoQ GROWTH RATE (%)

YoY GROWTH RATE (%)

1 Samsung 88.7 19.9 -9.4 -8.9

2 Apple 48.1 10.8 -20.1 +36.0

3 Microsoft-Nokia 27.7 6.2 -16.1 -36.8

4 Huawei 26.1 5.9 +40.5 +43.4

5 TCL-ALCATEL 18.0 4.0 +19.6 +12.3

6 LG 17.6 3.9 -10.3 -3.8

7 Lenovo-Motorola 16.6 3.7 -13.8 -13.7

8 Xiaomi 16.1 3.6 +9.0 +28.1

9 ZTE 14.6 3.3 +15.6 +15.3

10 Micromax 9.9 2.2 +21.2 +15.2

Others 162.4 36.5 +0.8 +0.2

TOTAL 445.8 100.0 -3.2 +0.4

TOP 10 MOBILE PHONE BRANDS IN Q2 15 (Source: Gartner and Company Data)

+ COMPANY DATA

INDUSTRY RANKING - TOTAL PHONES NO.5 GLOBAL HANDSET BRAND

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RANK COMPANY Q2 15 SHIPMENTS (MILLION UNITS)

Q2 15 MARKET SHARE (%)

QoQ GROWTH RATE (%)

YoY GROWTH RATE (%)

1 Samsung 72.1 21.9 -11.2 -5.3

2 Apple 48.1 14.6 -20.1 +36.0

3 Huawei 25.8 7.8 +42.7 +46.3

4 Lenovo-Motorola 16.4 5.0 -13.1 -14.0

5 Xiaomi 16.1 4.9 +9.0 +28.1

6 LG 14.5 4.4 -6.3 +4.5

7 ZTE 11.9 3.6 +21.7 +16.6

8 TCL-ALCATEL 10.1 3.1 +12.4 +19.8

9 Microsoft-Nokia 8.4 2.5 -2.0 -0.3

10 OPPO 8.2 2.5 +24.1 +90.1

Others 98.1 29.7 +4.8 +16.3

TOTAL 329.7 100.0 -1.9 +13.5

TOP 10 SMARTPHONE BRANDS IN Q2 15 (Source: Gartner and Company Data)

+ COMPANY DATA

INDUSTRY RANKING SMARTPHONES NO.8 GLOBAL SMARTPHONE BRAND GROWTH OUTPACING OVERALL MARKET

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RANK COMPANY Q2 15 SHIPMENTS (MILLION UNITS)

Q2 15 MARKET SHARE (%)

QoQ GROWTH RATE (%)

YoY GROWTH RATE (%)

1 Apple 11.2 25.1 -18.3 -18.8

2 Samsung 7.0 15.7 -7.2 -10.4

3 Lenovo 2.4 5.4 -2.4 +3.4

4 Huawei 1.8 4.0 +72.8 --

5 ASUS 1.3 2.9 -23.2 -43.2

6 TCL-ALCATEL 1.0 2.2 +37.3 +241.3

7 Microsoft 0.8 1.8 +5.6 +101.9

8 Acer 0.4 0.9 -38.4 -56.4

9 Amazon 0.4 0.9 -34.3 -65.2

10 Dell 0.3 0.7 -4.4 -31.6

Others 18.0 40.4 -14.5 -8.4

TOTAL 44.6 100.0 -11.8 -9.1

TOP 10 TABLET BRANDS IN Q2 15 (Source: Gartner and Company Data)

INDUSTRY RANKING - TABLETS NO.6 GLOBAL TABLET BRAND YEAR-ON-YEAR FASTEST GROWING TABLET BRAND

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+ COMPANY DATA

FEATURE PHONES & OTHER PRODUCTS SMART DEVICES

NORTH AMERICA 33%

LATIN AMERICA 26%

EUROPE 28%

MEA 8%

2%

CHINA 3%

NORTH AMERICA 23%

LATIN AMERICA 31%

EUROPE 24%

MEA 11%

APAC 3%

CHINA 8%

Q1-Q3 2015 GEOGRAPHICAL REVENUE BREAKDOWN

APAC

8

0.0

2.0

4.0

6.0

3.7 4.8

• Sales volume: 10.6 million units, almost doubled YoY; Revenue: HK$4.8 billion, up 30% YoY

• Sales volume of smart devices: 4.6 million units, up 25% YoY

• Q2 2015 sales volume ranking (Source: IDC & Company data):

North America: No. 4 (Total phones); No. 6 (Smartphones)

• Consolidated operator channels and expanded open market, enhanced tablet sales growth

• Q4 business plan: Strengthen promotion on entry to mid-level 4G products, further enhance

user experience

Q1-Q3 2014

Q1-Q3 2015

NORTH AMERICA

LATIN AMERICA • Sales volume: 17.6 million units, down 10% YoY; Revenue: HK$6.0 billion, down 9% YoY

• Sales volume of smart devices: 10.7 million units, up 17% YoY

• Q2 2015 sales volume ranking (Source: IDC & Company data):

LATAM: No. 2 (Total phones); No. 3 (Smartphones)

Chile: No. 2 (Total phones); No. 2 (Smartphones)

Mexico: No. 2 (Total phones); No.4 (Smartphones)

• Continued to monitor exchange rate movements and reinforced collaboration with operators

and distributors to stabilise sales

• Q4 business plan: Implement stringent cost and credit control policies, focus on entry to mid-

level products in response to market changes

Revenue (HK$ Billion)

0.0

3.0

6.0

9.0

6.6 6.0

Revenue (HK$ Billion)

Q1-Q3 2014

Q1-Q3 2015

REGIONAL BUSINESS REVIEW

9

+30%

-9%

Q1-Q3 2014

Q1-Q3 2015

0.0

2.0

4.0

6.0

4.9 5.0

• Sales volume: 13.5 million units, up 31% YoY; Revenue: HK$5.0 billion, up 2% YoY

• Sales volume of smart devices: 7.5 million units, up 31% YoY

• Q2 2015 sales volume ranking (Source: IDC & Company data):

Europe: No. 4 (Total phones); No. 6 (Smartphones); No.5 (Tablets)

Eastern Europe (excl. Russia): No. 3 (Total phones); No. 7 (Smartphones); No. 4 (Tablets)

• Secured mid-range market share with IDOL 3 sales

• Q4 business plan: Introduce a range of cost-effective 4G products to broaden open market

EUROPE

THE MIDDLE EAST AND AFRICA

• Sales volume: 7.2 million units, up 17% YoY; Revenue: HK$2.2 billion, up 13% YoY

• Sales volume of smart devices: 4.4 million units, up 35% YoY

• Q2 2015 sales volume ranking (Source: Gartner & Company data):

Middle East and Africa: No. 6 (Total phones); No. 4 (Smartphones); No. 3 (Tablets)

• 2015 Q2 sales volume ranking (Source: IDC & Company data):

South Africa: No. 4 (Total phones); No. 3 (Smartphones); No. 1 (Tablets)

• New markets: Saudi Arabia and Nigeria

• Q4 business plan: Continue to develop new markets, refine entry-level product strategy

Q1-Q3 2014

Q1-Q3 2015

Revenue (HK$ Billion)

Revenue (HK$ Billion)

10

+2%

0.0

1.0

2.0

3.0

2.0 2.2

+13%

REGIONAL BUSINESS REVIEW

0.0

0.5

1.0

1.5

2.0

1.2

0.7

• Sales volume: 4.9 million units, up 5% YoY; Revenue: HK$ 1.6 billion, down 6% YoY

• Sales volume of smart devices: 2.8 million units, up 8% YoY

• Continued growth in 4G smartphones sales volume, particularly in Guizhou, Zhejiang

and Jiangsu

• -

level market share

• Sales volume: 1.6 million units, down 37% YoY; Revenue: HK$ 700 million, down 44% YoY

• Sales volume of smart devices: 1.1 million units, down 29% YoY

• Embarked on various measures to streamline operations

• Q4 business plan: Focus on e-commerce and operator channels, reinforce digital marketing

capability

Revenue (HK$ Billion)

Q1-Q3 2014

Q1-Q3 2015

APAC

CHINA

0.0

0.5

1.0

1.5

2.0

1.6 1.6

Revenue (HK$ Billion)

Q1-Q3 2014

Q1-Q3 2015

11

-44%

-6%

REGIONAL BUSINESS REVIEW

2007-08 2009 2010 2011 2012 2013 2014

GPRS, Ultra-low cost Qwerty key pad

Entry-level Multi-touch Panel Technology

EDGE Qwerty keypad Multi-touch display

- 500MHz-600MHz Android 2.1 - 2.3 3G

- 4.5 650MHz-1.5GHz Dual-core CPU Android 4.0 - 4.1 Windows

- Quad-core CPU 6.45mm Thickness Android 4.2 Firefox Multi-screen Wifi display on TV

- -

Octa-core CPU Metal casing Android 4.4

2015 Entry-level Feature Phone

Advanced Feature Phone

EDGE Phone Entry-level Smartphone

Advanced Smartphone

Smart Connectivity Device

4G / Tablet / Cloud Terminal

2.8 - Display 7 - Wearable devices Android L Firefox Windows Cloud applications 4G

2 in 1 / Wearable Device / Multiple OS / IoT

STEP-UP PRODUCT STRATEGY

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MEA

EME

A

NORTH AMERICA

CHINA

APAC

EUROPE

LATIN AMERICA

PRODUCTS SELECTED BY GLOBAL MAINSTREAM OPERATORS & DISTRIBUTORS

13

(6)

14

NEW PRODUCTS

Compatible with Android 4.3 or above & iOS 7 or above Long Battery Life: 2-5 days Robust design: Water-Dust-Shockproof IP 67 Technology Emotion Pulse Sharing to Social Network Connectivity: Bluetooth 4.0 or above Changeable Front Casings & Wrist Bands

Octa Core 1.5 GHz CPU

FHD IPS Display

Slim Body: 9.1 mm

Stainless Steel Handle & Stand

3-Watt JBL Stereo Dual Speakers

Hands-free Gesture Control

Quad Core 1.2 GHz CPU Display

8 Mpxl Rear Camera (Underwater Photos & Videos) Long-lasting Battery: 500 hours Standby Time Robust design: Water-Dust-Shockproof IP 67 Technology 8 Colours with Matchable Headsets

(6)

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Octa Core 1.4 GHz CPU 5 HD IPS Display Full Lamination 13 Mpxl Rear Camera with F2.0 aperture Dual SIM Dual Standby Premium Design: Metal Frame & Glass Hard Key

Awards

Quad Core 1 GHz CPU IPS Display

Full Lamination 8 Mpxl Rear Camera with EIS

Dual SIM Dual Standby Numerous Colourful Covers

NEW PRODUCTS

BRAND BUILDING ACTIVITIES

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LA Galaxy Sponsorship The United States

IFA Berlin 2015 Germany

First Digital Product Launch - Flash Plus Smartphone The Philippines

2015 Tianyi (E-surfing) Terminal Expo & Summit Forum China

2015 Eletrolar Show Brazil

TCL 2015 Autumn New Product Presentation China

CHALLENGES

EXECUTION PLANS

GOALS & FORECAST

OUTLOOK

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A challenging macroeconomic environment with soft consumer spending Currency fluctuations pose a continued headwind for sales growth Acceleration of competitive pricing pressures and average selling price erosion

Continue to implement stringent credit control and hedging policies to mitigate currency fluctuation impact Increase sales focus on user-centric and cost-competitive mid-high end products Streamline the portfolio with the completion of mass-market smartphones to sustain smartphone volume growth Remain as the market leader in feature phone market Allocate resources to projects with high-growth opportunities Focus on balancing growth and profitability amid stiff global competition

4G smartphones and tablets will continue to be the main growth drivers in Q4 2015 2015 full-year revenue growth: Maintain the target of 10% YoY

FINANCIAL HIGHLIGHTS

Incl. Sales Vol. of Smart Devices units)

Revenue

Gross Profit Margin (%)

Net Profit

Net Profit Margin (%)

Basic EPS (HK Cents)

19,996

20,283

Q1-Q3 2014

Q1-Q3 2015

Revenue (HK$ Million)

Total Sales Vol.

Total ASP (US$)

Q3 2015

Q3 2014

YOY (%) Q1-Q3 2015

Q1-Q3 2014

YOY (%)

21,702 18,668 +16% 55,395 48,610 +14%

11,401 10,896 +5% 31,083 25,932 +20%

42.0 53.4 -21% 47.2 52.7 -10%

7,056 7,779 -9% 20,283 19,996 +1%

21.8% 19.0% +2.8% 20.2% 19.3% +0.9%

319 301 +6% 772 741 +4%

4.5% 3.9% +0.6% 3.8% 3.7% +0.1%

25.11 24.30 +3% 61.76 61.11 +1%

Income Statement (HK$ Million)

FINANCIAL HIGHLIGHTS

19

0

2

4

6

8

10

12

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

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

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

Smart devices Handsets and other products

2.1

Revenue (HK$ Billion)

QUARTERLY REVENUE OF HANDSETS & OTHER PRODUCTS SUSTAINABLE REVENUE GROWTH

20

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q2 2015

Q1 2015

Q3 2015

0

250

500

750

1,000

1,250

1,500

63

289

513

1,099

718

986

1,339

21

QUARTERLY SALES VOLUME OF TABLETS ROBUST QUARTERLY VOLUME GROWTH

Volume

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

0

10

20

30

40

50

60

70

34.6 35.6 37.1 37.1 37.0

41.8 45.4

50.2 52.2 52.4 53.4 55.1 54.7

47.1

42.0

ASP

10% 14%

19% 17% 17%

27%

34%

40%

46%

53% 58%

62% 62% 56%

53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Smart devices proportion

ASP (USD) Sales Proportion of Smart Devices (%)

SMARTPHONES SALES VOLUME PROPORTION & ASP REFINED PRODUCT PROFORLIO STRATEGY

22

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

17.4%

19.0% 19.6% 19.4% 19.0% 19.2% 19.1% 19.5%

21.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Product competitiveness

Economies of scale

Pricing and Currency Strategy

Brand Value and Customer Relationship

Continuous Cost-Down Effort

SUSTAINABLE HEALTH RANGE

GROSS MARGIN TREND

2013 2012 Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

23

Non-current assets 4,457 3,691 +21%

Current assets

Inventories 3,207 3,293 -3%

Trade & factored receivables 7,189 8,244 -13%

Other current assets 2,637 2,081 +27%

Pledged deposits 1,235 1,914 -35%

Cash and cash equivalents 420 473 -11%

Total current assets 14,688 16,005 -8%

Current liabilities

Interest-bearing bank and other

borrowings (2,939) (4,312) -32%

Other current liabilities (5,206) (5,929) -12%

Trade and notes payables (6,276) (5,167) +21%

Total current liabilities (14,421) (15,408) -6%

Net current assets 267 597 -55%

Total assets less current liabilities 4,724 4,288 +10%

Non-current liabilities (817) (109) +650%

Net assets 3,907 4,179 -7%

(HK$ Million) 30 September 2015 31 December 2014 Change (%)

STATEMENT OF FINANCIAL POSITION

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FINANCIAL POSITION HIGHLIGHTS

* Calculated -bearing borrowings over total assets,

excluding foreign exchange programme

** Excluding factored trade receivables

*** Only inventories in factory

30 September 2015 31 December 2014

Gearing Ratio * 14% 15%

Current Ratio 1.02 1.04

Trade Receivables Turnover Days** 80 72

Inventories Turnover Days *** 29 37

NAV Per Share HK$ 3.07 HK$ 3.43

Basic Earnings Per Share

(Q1-Q3 2015/ FY 2014) 61.76 HK cents 91.58 HK cents

25

KEY FINANCIAL RATIOS

Q & A

THANK YOU

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

. 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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