VTech Communications LtdDate:Dec 20201

About VTech GroupEstablished in 1976 with headquarters in Hong Kong and state-of-the-art manufacturingfacilities in China.Electronic Learning Products (ELP) from infancy through toddler and preschool years.Cordless Phones & Telecommunication Products (TEL) world’s largest manufacturerContract Manufacturing Services (CMS) one of the world’s leading electronic manufacturingservice providersHouJie 1985QingYuan 2005LiaoBu 1997Malaysia 2018Shenzhen 2008US, Canada, Germany, Hong Kong and ChinaShares of VTech Holdings Limited are listed on The Stock Exchange of Hong Kong2

About VTech GroupFlexibility in service, excellence in productquality, manufacturing know-how in a number of product categories & strong reputation3

VTech Group Organization ChartBoard of Executive DirectorsMr. Allan Wong (Chairman & Group CEO)Mr. King Pang (Group President)Mr. Andy Leung (CEO of CMS)King PangAndy LeungHilson CheungELPCMSTelecom4

CMS Organization ChartGroup ExecutiveDirector / CEOAndy LeungMDMDR&DPro AudioSBUMetalSBUIndustrialSBUMalaysiaSBU(China 1)JapaneseSBUMedicalSBUMiniature &HearableSBUMarketingValueEngineering(VE)QS, IS &OPThe StrategyAutomation Growth by Organic with Selective Acquisition China Plus OneBusiness MissionBe the preferred business partner ofselected customer segment in the EMSIndustry Customers FocusAccounting5

VTech Group Financial PerformanceGroup Turnover in the Past 5 Years, US M45.7%40.9%US 989.6 million2,500US 886.3 50012.0%US 259.4 million1.4%2,0791,000US 30.2 million5000FY16Sales by Companies, US MUS MELPVTTCMSFY20: 1st Apr 2019 – 31st Mar 4018421HFY20 1HJFY21453206465482205436Group Financial HighlightsUS MFY17FY18FY19FY20 1H FY20 1HFY21Highlights of the 2019/2020 Result:Sales2,0792,1302,1622,166 1,124.1 1,123.6Operating Profit200231193220135143Profit Before Tax200231192212132139R&D Expenses777777824142Cash on Hand269254237243103137- Group revenue increased by 0.2% to US 2,166 million- Profit attributable to shareholders of the Company grewby 11.3% to US 190.7 million- Gross profit margin increased from 29.4% to 30.6%- Reinforcing cost control with strict focus on cash and liquidity- Malaysian manufacturing base to expand to about 25%of the Group’s total production capacity6No. of Employee 27,200 26,000 26,000 26,000 26,037 26,876This file is the property of VTech which is strictly private and confidential. Customer is allowed for internal use

FY20 CMS Sales DistributionCommunications Others3%IoT 2%3%LED4%North America 252 millionHome Appliances5%(29.9%)EuropeAsia Pacific &Other Regions 440.5 million(52.3%)Medical7% 149.8 million(17.8%)842.3Power Supplies3%millionIndustrial Products7%Pro Audio43%Hearable23%Major Product Line UpDigital Audio ConsoleSmart Wireless HeadsetsPro AudioHearableElectronic LockIndustrialCharger & BatterySupport UnitPower SuppliesUltrasound ScannerLED LightingMedicalLEDSmart Meter DisplayIoTCoffee MakerHome Appliance7

CMS Global PresenceHong KongGuangdong, ChinaJohor, MalaysiaSingaporeBoston, MA, USSmithtown, NY, US(Partner)Head Office Manufacturing ProcurementVVVVVVVVR&DVV8

Locations (China)Headquarters - Hong KongVTech Communications Ltd.23/F, Tai Ping Industrial Center,Block 1, 57 Ting Kok Road,Tai Po, N.T., Hong KongManufacturing Site - Dongguan, ChinaVTech (Dongguan) Communications Ltd.VTech Science Park,Xia Ling Bei Management Zone,Liao Bu District, Dongguan,Guangdong, ChinaBusiness Development – North AmericaVTech Telecom, L.L.C.237 Lexington Street, Suite 201,Woburn, MA 01801Business Development – JapanVTech Communications Japan Ltd.Okumura Building,3-14, Kanda Ogawamachi,Chiyoda-ku, Tokyo 101-0052 omTravel Time to VTech Science Park (CMS) from:-Hong Kong Airport : 2.5 hours-Shenzhen Airport : 1.5 hours-Guangzhou Airport : 1.5 hours9

Locations (Malaysia)Nearest Seaports & Airport to VTech facilities (VTM)Major Ports in MalaysiaSingaporeChangiAirport10

VTech CMS Manufacturing CapacityMalaysiaChina (LiaoBu)China LBMalaysiaFY18FY19FY20Manufacturing Area (Sq. M)85120120Wave Soldering8Wave Soldering (Lines)262833SMT (Lines)252627Auto Insertion (Units)101111SMTAuto InsertManual Insert19151010.3119Capital Investment (USD’ M)China (LiaoBu) factoryBuilding 5 Commenced in 2005Building 8 Commenced in 2011Building 6 Commenced in 2007Building 9 Commenced in 2015No. of LinesMalaysia factoryBuilding 7 Commenced in 2008Building 10 Commenced in FY1911

VTech Metal CapabilitiesVTech Metal Shop (in Xixi) One Stop Service: Tooling Design & Making, Stamping, NCPunching & Bending, Welding and Surface TreatmentStamping Line with Robot ArmCNC Punching & BendingLaser CuttingAutomated Painting / Powder coatingIn-house Tooling Design & FabricationNote: VTech metal shop also serves 3rd party non-EMS business partners12

Manufacturing CapabilitiesCMS Manufacturing Capabilities 7 buildings with over 120K Sq. M. Manufacturing AreaSMT, Thru-Hole, RoHS, REACH,ISO9001, ISO14001, ISO13485, TS16949, ISO18001, SA8000ANSI ESD S20.20 for all production floors33 19 SMT Lines, State-of-the-Art EquipmentIn-housed design and fabrication for ICT, AOI, ATE, FATChip on Board in Class 1,000 Clean RoomClass 10,000 Clean Room for precise productsBurn-in Chambers, X-Ray Inspection, Conformal CoatingReliability life tests e.g. drop test, high/low temp cycleIntensive Core Processes AutomationSMTimplementationBoard size:Chip size:QFP (pitch):BGA (pitch):CSP (pitch):Reflow:534 x 610mmmin size 010050.3mm0.4mm0.4mmLead free compliantNitrogen processSolder Paste:SN100C (Sn-Cu-Ni Ge)SAC305 (Sn-Ag-Cu)COB implementationWire type:Al wireWire size:0.8-2.0milBond pad pitch: 68 umBond angle:30 degDie size:6X6 to200X200milWafer size:8” maxDiscreteimplementationBoard size:maxRadial type:pitchAxial type:pitch450x450mm2.5 / 5.0mm5 – 22.5mmWaveSolderingBoard size: 450mm width maxSolder: Lead free compliantSolder Bar:SN100C (Sn-Cu-Ni Ge)SAC305 (Sn-Ag-Cu)13

Automation – Intensive Core Processes14

Automation - Precise and Testing15

Quality – “Do it right the first time!”ISO9002ISO14001Certificate forManufacturingControl SystemCertificate forEnvironmentManagementSystemISO9001 ISO13485Certificate forManufacturingControl SystemCertificate forMedical Devices(Blood CoagulationInstrument)IATF16949Certificate forAutomotive ProductsSA8000 OHSAS18001Certificate forSocialAccountabilityCertificate forOccupational Health &SafetyQC080000Certificate forHazardous SubstancesProcess ManagementSystemMO 169 Reg.PMDA (Pharmaceuticals & Medical Devices Agency)MHLW (Ministry of Health Labor & Welfare)21 CFR 820 (QSR)16

CMS Quality Management System17

Protection Our Client’s Patents and IPOur Procedures to protect IP NDA or General Confidentiality AgreementTightly Controlled Documentation and Copying of Doc’sAccess on an “As needed Basis”Continuous Training of our EmployeesReturn of all files after the completion of a ProjectThe Result Our Customers and potential Clients are fully protected Our manufacturing Buildings as Technology Protection in ProjectsHistory and Forward Looking No History of any IP Violation since our Existence Ongoing IP & Patent Awareness Training19

Sustainability at VTech With our dedicated sustainability resources and efforts, VTech continues to be a constituent member of theHang Seng Corporate Sustainability Benchmark Index with the score of AA rating VTech Group is also included in FTSE4Good Global Index4 in FY2019 We have also received a rating of AA in the MSCI ESG Ratings assessment.20

Engineering & Design SupportR&D Design Services Include Product Design, ID Support, Cost-Down Re-designElectronics including Hardware & Software DesignMechanical, Structural & Assembly DesignSchematic and PCB Layout DesignPackaging Design (Gift Box, Clamshell, Export Carton, etc)Typical Applications and Competence HW & SW developments for MCU, MPU, DSP, etc. Drivers and Embedded System Applications RF, Wireless, Audio, Consumer Electronics, Medical, Health Care,Telecomm, LED Lighting, IOT etc Prototype, Testing and Agency ApprovalNew Product Introduction - NPIISO13485Certificate forMedical Devices(Blood CoagulationInstrument) Design for Manufacturability (DFM) Sample Production and Design Verification & Validation Selection of Low Cost ComponentsResources In-House Acoustic RoomProfessional Audio Test LabCAD & Simulation Software e.g. ProE, Solidworks, FloEFD50 Engineers & Technicians support design professionally 21

CMS NPI Service OverviewReferralsDesignHouseInternalCustomersVTech CMSInnovativeIdea andUnique/PatentTechnologyGlobal SupplyChain MarketPreliminarySchematicCircuitry DesignExistingCustomersDraft MechanicalDesign SketchesCustomerIncubateesMetal -basedDevelopedStartupsDFM/PCB Layout/MechanicalDesign ServicesNPI CenterPlastic ShopPCBA /Hardwaresamples builtCUSTOMER DIFFERENCESCOMPANY Type[NPI Centre][Factory]Start-UpEstablishedSmall to MidMid to LargeSuper-LowMid to HighSuper-HighMid to HighContinuityDiscreteContinuousForecastMay beYESSuper-HighMid to HighMfg ExpertiseSuper-HighMidQuality LevelLow to MidMid to HighSizePRODUCT VolumeMixORDERDEMAND Engineer SupportCompletePrototypingSample/AssemblySupport ValueEngineering. i.e.DFx, Testing, ATE.PCBA &AssemblyPlants(Backup)Expertise Advise &Mfg ConsultationOverall Budget &Schedule Planning22

CMS NPI Capability & Service CoverageFull Prototyping CapabilityPrototyping is an essential step in the product development process"Prototypes help designers and developers build partial productimplementations, which potential end-users or customers use to providefeedback to the development team before full-scale development begins“ WikipediaPick &Place SMTSelectiveSolderingAddictive3D PrintingSmall-scaleCNCWorkshopTestingLaboratory SERVICES Coverage in 5 Stages of NPI 5 Preparation5.33. Development44. Validation DFMEA2 Design2. PV Product Prototyping ID/ ME / EE / SWValidation Sampling11. ConceptDrawing, Schematic, Testing Test-Method Feasibility StudyPCB layoutEvaluation DV Design Verification Evaluate Product DFx / DTC Reliability Testing Soft / Hard toolFeatures Type Approvalfabrication Budget Estimation Component &Material Selection Cost Finalization BOM Generation Schedule Planning EV Engineering POC Proof OfVerificationConcept Samplingfor Manufacturing MFGDocumentation Quality Standard ComponentProcurement Test Gears MFGFixture/Automation ME ToolingFinalization 23

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