VTech Holdings Limited
Corporate Presentation
July 2015
1
Our Mission
VTech’s mission is to design, manufacture
and supply innovative and high quality
products in a manner that minimises any
impact on the environment, while creating
sustainable value for its stakeholders and
the community
2
Who We Are

Established in Hong Kong in 1976

Operate in 11 countries/regions

Invest 3-4% of Group revenue in R&D

1,500 R&D professionals in R&D centres in Canada,
Germany, Hong Kong and China

Manufacturing facilities in Dongguan, China

Shares are publicly listed on The Stock Exchange of
Hong Kong Limited (HKSE: 303)
3
Pioneer and Market Leader
Today
1976
• Global leader in ELPs from infancy to preschool
Established in HK
• World’s largest manufacturer of cordless phones
1984
Started CMS
1980
• World’s top 50 EMS provider
Launched VTech first
ELP
1991
Launched VTech
first cordless phone
4
Revenue Breakdown (FY2015)
Group Revenue by Region (US$ million)
North
America
889.5
(47.8%)
Other
Regions
50.4
(2.7%)
Group Revenue by Product Line (US$ million)
Europe
812.3
(43.2%)
Asia
Pacific
117.6
(6.3%)
ELPs
703.3
(37.4%)
TEL
651.5
(34.7%)
CMS
525.0
(27.9%)
5
ELPs
1
2
3

World’s largest player in ELPs from
infancy to preschool1

No. 1 manufacturer in Infant and
Preschool Electronic Learning Toys in
the US2

No. 1 player in infant toys in France, the
UK, Germany and Spain3

46m products shipped to 85 countries in
25 languages

30+ years of experience
Source: MarketWise Consumer Insights, LLC and NPD Retail Tracking Service. Ranking based on 2014 total estimated annual retail sales in the combined
toy categories of infant electronic learning and preschool electronic learning
Source: NPD Group, Retail Tracking Service. Ranking based on total retail sales in the combined toy categories of infant electronic learning, other infant toys
and preschool electronic learning for the 12 months ending December 2014
Source: NPD Group, Retail Tracking Service
6
ELPs Overview
Standalone Products
Platform Products
(FY2015: 77% on total ELP sales)
(FY2015: 23% on total ELP sales)
7
ELPs – Standalone Products
Core Learning
Infant (0 - 12 months)
Toddler (1 - 3 years)
Preschool (3 - 6 years)
Key Product Range
• Go! Go! Smart Family:
Infant-toddler vehicles and
playsets with different
themes
• Flipsies: Transformable
dolls and playsets
• Little Love/Baby Amaze:
Interactive dolls
• Kidizoom Action Cam
8
ELPs – Platform Products
Smartwatch
Roll out a new generation of
Smartwatch
New Platforms
Launch of new innovative
platform products
Tablet
Stay in the children’s tablet
market
9
TEL Products
4
5

World’s No.1 manufacturer
of cordless phones4

No. 1 player in residential
phones in US5

40m handsets shipped to
80 countries

20+ years of experience
Source: MZA Ltd, 2015
Source: MarketWise Consumer Insights, LLC
10
TEL Products Overview
Residential Phones
Commercial Phones and
Other Telecommunication Products
FY2015: 81% on total TEL
products sales
FY2015: 19% on total TEL products sales
Fixed-line telephones for home
Conference phone, SIP phone, SMB phone, hotel phone,
cordless headset, baby monitor, wireless monitoring system,
connected home device, IAD and CareLine (senior phone)
11
TEL products
Residential Phones – feature-rich products with superior design
12
TEL products
Commercial Phones
Commercial
phones
Other Telecommunication Products
Baby
monitors
• Introduce new models of
ErisStation and ErisTerminal
• Expansion of baby monitor range
• Launch wireless monitoring devices based on the ULE
standard
13
CMS
• Strategy

Provide one-stop shop EMS to medium
sized companies

Customers are category leaders

Focus on professional and commercial
products

High mix, low to medium volume
• World’s top 50 EMS provider6
6
Manufacturing Market Insider, March 2015
14
CMS
13th consecutive years
of growth
Competency
Flexible
Service
DFM
Manufacturing
Know-how
Strong
Reputation
Competence in handling low
to medium volumes and a
high mix of products
Delivering flexible
service and high quality
products to customers
Continue to innovate in
the area of Design for
Manufacture
Expertise in certain
product categories
VTech CMS enjoys an
enviable reputation for
service
15
CMS – Main Product Categories
Professional
Audio Equipment
Wireless
Products
Switching Mode
Power Supplies
Solid-State
Lighting
16
Growth Strategy
17
Our Competitive Edge
•
Product Innovation
Launch over 100 new products every year
•
Market Leadership
Market Leadership
No. 1 player in ELPs and cordless phones
•
Integrated Design Manufacturer
Lowest cost manufacturer, quickest time to market, swift response to
market change and demand
•
Strong Financial Position (FY2015)


•
Sustainable Returns
TEL -No.1 Global Manufacturer
US$250.4 million cash generated from operations
US$294.2 million net cash
Operational Excellence
Efficient Operations
18
Thank You
19
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