Results Presentation Results Presentation 3Q 2009 3Q 2009 TCL - - PowerPoint PPT Presentation
Results Presentation Results Presentation 3Q 2009 3Q 2009 TCL Communication Technology Holdings Limited TCL Communication Technology Holdings Limited Agenda Business Overview & Outlook Financial Highlights Q&A Appendix: Corporate
TCL Communication Technology Holdings Limited TCL Communication Technology Holdings Limited
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Agenda Business Overview & Outlook Q&A
Appendix: Corporate Information
Financial Highlights
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Oversea Market
The global economy rejuvenated in the third quarter of 2009 as a result of loose monetary policies. The global handset industry reversed its downtrend of the previous two quarters and resumed growth momentum. Sales performance in emerging markets remained brisk.
Business Overview PRC Market
Performance in China market remained brisk and steady growth. Development of 3G services in China propelled the growth of the domestic handset industry
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Business Review
Overview
corresponding period of last year. It was mainly due to lower sales volume in the first two quarters resulting from weak demand in overseas markets amid the financial tsunami.
period of 2008.
Europe, Middle East and Africa
Russia was better than expected and drove a remarkable growth in sales volume in the European market.
Americas
satisfactory sales growth in Mexico.
The PRC
same period last year.
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Sales Volume and Revenue (Handset and Others)
Sales Revenue for Handset and Other Products in 3Q and first 9 months in 2008 and 2009 Sales Revenue for Handset and Other Products in 3Q and first 9 months in 2008 and 2009
‘000 Units 3Q 2009 3Q 2008 Change Y2009 Y2008 Change Total 4,240 3,547 +20% 9,298 10,264
Overseas 3,493 2,905 +20% 7,448 8,991
The PRC 747 642 +16% 1,850 1,273 +45%
Sales Volume for Handset and Other Products for 3Q and first 9 months in 2008 and 2009 Sales Volume for Handset and Other Products for 3Q and first 9 months in 2008 and 2009
HK $ Million 3Q 2009 3Q 2008 Change Y2009 Y2008 Change Total 1,073 1,119
2,401 3,459
Overseas 947 943 0% 2,067 3,059
The PRC 126 176
334 400
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Jan Feb Mar Apr May Jun Jul Aug Sep
400 600 800 1,000 1,200 1,400 1,600
ALCATEL TCL
Sales volume (Jan 2009 – Sep 2009)
‘000 Units
returned to the levels before the financial tsunami. The Group reported biggest single monthly sales volume in July.
accessories were sold in the third quarter of 2009, an increase of 51% over the sales volume of 2.8 million units for the second period in 2009. The annual sales target for 2009 is likely to be achieved.
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Product Research & Development
During the third quarter 2009, the Group launched 4 models of Alcatel brand mobile phones, including OT-106, OT-206, OT-222 and OT-203E series, and a TCL brand mobile phone V300. The Group continued to extend the sales of OT-800 (“Jade”) and OT-708 (“One Touch Mini”). The OT-800 (“Jade”) series was very popular and we had orders from various major telecommunications operators. OT-708 (“One Touch Mini”) series, an entry-level touch screen handset, received an enthusiastic response in market.
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Hit Product – OT 800 ( “JADE” )
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Hit Product – OT 708 ( “One Touch Mini” )
picture and alarm clock without multi-choice
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Future Outlook
The Group’s sales volume in the fourth quarter will stay at levels achieved before the financial tsunami as the global economy continues to improve. The Europe and Americas markets will continue to recover gradually, while the Asia Pacific region will also be one of the important driver of our business growth. At the same time, the PRC market is expected to bode well amid fierce competition for 3G handsets. The Group will stick to our “3G + 4C” strategy, actively strengthen efforts in research and development, enhance the cooperation with key operators, and offer users more value added services by providing them with competitive and innovative products. New products with high potential have been already approved by operators. Although 2009 is a challenging year for the handset industry, the management is confident to achieve our annual sales target with the efforts of all staff members and a stabilizing global economy.
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Agenda Business Overview & Outlook Q&A
Appendix: Corporate Information
Financial Highlights
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Income Statement Highlights
Income Statement Highlights Income Statement Highlights
0.3 (24) 24 18% 198 42 1,119 3,547 3Q 2008
10,264 9,298 +20% 4,240 Sales Volume (‘000 Units)
3,459 2,401
1,073 Revenue
43 35
35 Average Selling Price (US$) (HK$ Million) 3Q 2009 Change Y2009 Y2008 Change Gross profit 236 +19% 433 636
Gross profit （%) 22% +4% 18% 18% 0% Profit/(loss) before effect of convertible bonds 14
(26) 40 N/A Effects of convertible bonds
(65) 72 N/A Profit/(loss) after effect of convertible bonds 14 +4,533% (91) 112 N/A EBITDA before effect of convertible bonds (as restated) 30
27 111
EPS (HK$ Cents) (as restated) 2 N/A (13) 16 N/A
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Balance Sheet Highlights
Balance Sheet Highlights Balance Sheet Highlights
599 483
+159% 230 596
684 668
854 662
1,670 994
N/A (142)
(1,867) (1,061)
+41% (591) (836)
+15% (891) (1,027)
(HK$ Million) 2009-9-30 2008-12-31 Change
Non-current assets 511 528
Current assets 3,403 4,037
Current liabilities (2,924) (3,349)
Net current assets 479 688
Non-current liabilities (7) (151)
(7) (9)
Net assets 983 1,065
Net assets value per share (HK$) (after share consolidation) 1.4 1.5
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Key Financial Indicators
+13% 23 26 Inventory turnover (Days) (Finished goods) +21% 71 86 Trade receivable turnover (Days)
2009-9-30 2008-9-30 Change
Cash balance (HK$ Million) 668 961
Key Financial Indicators Key Financial Indicators
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Agenda Business Overview & Outlook Q&A
Appendix: Corporate Information
Financial Highlights
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For further enquiries:
Tel: (86) 755 3331 3019
Tel: (86) 755 3331 3171 Email: ir.tclcomm@tcl.com
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Agenda Business Overview & Outlook Q&A
Appendix: Corporate Information
Financial Highlights
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Company Overview
Principal Business
Research & Development, manufacturing and global sales of cell phones and 3G
data card of two key brands - ”TCL” and ”ALCATEL”
Core Products
Cell phones --- Two key brands TCL (in China) ALCATEL (in Europe, Middle East, Africa, Americas, Asia-Pacific and China)
Production Facilities
Headquartered in Shenzhen, China Global research facilities located in Shenzhen, Shanghai and Huizhou Global factory located in Huizhou Global presence across over 80 countries and regions 65 repair centres, over 50 offices and more than 4,000 employees around the
world
Listing Status
Listed on the Hong Kong Stock Exchange in Sep. 2004 (stock code: 02618 HK)
TCL Communication Technology Holdings Limited (TCL Communication)
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Shareholding Structure
Public 52% TCL Communication Technology Holdings Limited ( 02618 HK ) 46% TCL Group (000100 SZ)
2%
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Investment Highlights
1 2 5 6
Strong relationship with worldwide
Experienced management team Strong portfolio of brands with high consumer recognition
TCL Communication: Chinese leading global manufacturers of consumer electronics products 3
Leading manufacturing capacity and experienced global logistics management Innovative business model Strong R&D capability with wide series of products
4
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Highly Experienced Senior Management Team and Company Structure
Board Chairman
CEO Charles Yang
TCL Business Charles Yang TCL executive committee GSM
Wang Jiyang
Americas
Nicolas Zibell
EMEA Yves Morel APAC
Albert Wong
CDMA
Li Bing
BDL
Vittorio Di Mauro
China Interface
Zhang Yongjun
Alcatel Business George Guo Alcatel executive committee CMD
Chun Lau
HQ & Operation Charles Yang George Guo, Thomas Liu HR,IS/IT,Audit
George Guo
Finance Thomas Liu QMS&GCS
Laurent Labbe
Legal
Stephen Chiang
CEO Office
Niu Haizhen
GMC
Lv Xiaobin
BPS
Products design center
Xu Jinhong
R&D center
Wang Kailong
Sales center Chen Qihui Operator center Xie Feng Operation center Xiao Feng
Finance
Hu Lihua
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Brief Introduction of Senior Management
Chairman of TCL Communication
University of Technology with a major in wireless technology. Li had taken the position of the general manager of TCL Communication Group, general manager of TCL Corporation and now acts as the chairman of the board and president of TCL Corporation.
home appliance industry” 1994.
Jacques Chirac 2004
Entrepreneur magazine 2005
People’s Congress
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Executive Director, CEO
1982 and a Master's degree in 1985, both in Engineering from Xian Jiao tong University. He obtained a M.S. in 1987 and Ph.D. in 1989 from the University of California, Los Angeles (UCLA).
Communication Corporation in 2001 and served as the CEO and President between 2001 and 2006 and the Honorary Chairman between 2006 and 2008.
Communication as President in charge of TCL brand business in January 2009. Dr. Yang has been appointed as an executive director and the CEO of TCL Communication with effect from 1 April 2009.
Brief Introduction of Senior Management
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Strong Portfolio of Brands with High Consumer Recognition
TCL & ALCATEL have strong brand awareness with consumers in China and Europe respectively
TCL Brand established since 1981 as a leading electronics brand in PRC No.1 of 2002 Deloitte Technology Fast 500 Asia Pacific Winners Total estimated brand value of RMB40.1bn and ranked the 3rd Most Valuable Brand in China according to China Most Valuable Brand survey in 2007 Established in France since 1898 World widely accepted by its fame and great reputation Typical brand in Europe’s telecommunication industry
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Leading Independent Production Capacity
Production capacity of 30 million units annually
World-class SMT production lines and supporting facilities
Experience of efficient global logistics Strict tests by key telecommunication
ISO9001 and ISO14001 qualified Testing & manufacturing capability for platform TI, MTK, ADI & QUALCOMM
Manufacture center in Huizhou, China SMT production line Testing centre
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Strong R&D Capability
More than 700 highly skilled and experienced research engineers distributed in Shanghai, Shenzhen and Huizhou The 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 core patents in the world, excellent tradition of research and development Able to provide solutions to GSM, GPRS, EDGE, CDMA, WCDMA, TD-SCDMA independently Start to work on 3G, projects already run for TD-SCDMA products Focus on innovation as well as the high quality of our products
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Full Series of Products and Product Strategy
Low-end Products in Emerging Markets
Quality
Entry-level Camera Phone
Products Design and Competitiveness
Mobile Music Experience
Innovation
Mobile Internet Features High-end Devices and Services
2007 2008 2009 2010 2011
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Matured Cooperation with Oversea Telecommunication Operators
EMEA USA LATAM China APAC
HQ, R&D and Manufacture
Mexico City
Sales centre
Paris
Sales centre
Shanghai Shenzhen & Hong Kong Huizhou
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Innovative Profitability
4C Convergence Business Model
Computer Consumer electronic Communication Contents
Year One of 3G 3 Core Competences
Products Innovation Ability Sales and Marketing Operator Collaboration
Innovative Profitability
Quality guaranteed products
and services based on good
To provide 3G experience by
integrating cell phone and 4C model
To achieve the progression of
average revenue by retaining and expanding customers
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