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VTech Holdings Limited

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Presentation on theme: "VTech Holdings Limited"— Presentation transcript:

1 VTech Holdings Limited
Corporate Presentation July 2015 1

2 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

3 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)

4 Today Pioneer and Market Leader 1976 1984 1980 1991
Global leader in ELPs from infancy to preschool World’s largest manufacturer of cordless phones Established in HK 1984 Started CMS 1980 World’s top 50 EMS provider Launched VTech first ELP 1991 Launched VTech first cordless phone

5 Group Revenue by Region (US$ million)
Revenue Breakdown (FY2015) Group Revenue by Region (US$ million) Group Revenue by Product Line (US$ million)

6 ELPs 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 1 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 2 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 3 Source: NPD Group, Retail Tracking Service 6 6 6

7 (FY2015: 77% on total ELP sales) (FY2015: 23% on total ELP sales)
ELPs Overview Standalone Products (FY2015: 77% on total ELP sales) Platform Products (FY2015: 23% on total ELP sales) 7 7 7

8 ELPs – Standalone Products
Core Learning Infant ( 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

9 ELPs – Platform Products
Roll out a new generation of Smartwatch Smartwatch Launch of new innovative platform products New Platforms Stay in the children’s tablet market Tablet 9 9

10 TEL Products World’s No.1 manufacturer of cordless phones4
No. 1 player in residential phones in US5 40m handsets shipped to countries 20+ years of experience 4 Source: MZA Ltd, 2015 5 Source: MarketWise Consumer Insights, LLC 10 10 10

11 TEL Products Overview Commercial Phones and Residential Phones
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)

12 TEL products Residential Phones – feature-rich products with superior design 12 12 12

13 Other Telecommunication Products
TEL products Commercial Phones Introduce new models of ErisStation and ErisTerminal Commercial phones Other Telecommunication Products Expansion of baby monitor range Launch wireless monitoring devices based on the ULE standard Baby monitors

14 CMS Strategy World’s top 50 EMS provider6
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

15 13th consecutive years of growth
CMS 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 Competency Flexible Service DFM Manufacturing Know-how Strong Reputation 13th consecutive years of growth 15 15 15

16 Professional Audio Equipment Switching Mode Power Supplies
CMS – Main Product Categories Professional Audio Equipment Wireless Products Switching Mode Power Supplies Solid-State Lighting 16

17 Growth Strategy 17

18 TEL -No.1 Global Manufacturer
Our Competitive Edge Product Innovation Launch over 100 new products every year 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) US$294.2 million net cash US$250.4 million cash generated from operations Operational Excellence Market Leadership Sustainable Returns TEL -No.1 Global Manufacturer Efficient Operations 18 18 18

19 Thank You 19 19 19


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