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VTech Communications LtdJune 2011
About VTech  Company Profile• VTech Holding Ltd.      • VTech Telecom Ltd.      • VTech Electronics Ltd.      • VTech Comm...
History of VTech• 1976 - Established by Mr. Allan Wong in Hong Kong       - Named Video Technology Ltd.       - Design and...
Financial Performance – Key Figures     Key Financial Data (US$M)                                The Group Turnover in the...
CMS Sales Distribution – FY11VTech CMS Manufactures for the FY11AProduct Types   FY09A     FY10A                          ...
VTech Corporate Structure                     Allan Wong – Chairman & Group CEO                     King Pang/Andy Leung –...
Organization of CMS Management                                    Andy Leung                                       CEO    ...
Organization of CMS Management                   BU2                             BU3                                      ...
Manufacturing Capability•   ISO9000 Certified Companies since 1994, ISO14001 Certified in June 2001•   ISO9001 Certified s...
Quality Management System                              - Quality System Model                           Quality & Environm...
Protecting Our Client’s Intellectual PropertyOur Client’s Intellectual Property is their mostvaluable Asset.Therefore, it ...
The Advantages of an NPI Team                                                                  Quick response to customer...
Design Support in VTech CMS                                               ZigBee Member   Contract Manufacturing Services...
Audio Workshop in VTech CMS R&D   Besides design support, CMS R&D provides services for professional audio products.   A...
Examples of CMS ProductsProduct                                   MarketPCBA for Medical Equipment                JapanCon...
VTech Geographical LocationsLiaison Offices                                                 VTech (Qing Yuan) Plastic and ...
Thank You            17
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VTech Contract Manufacturing, Divisional Presentation

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VTech Contract Manufacturing, Divisional Presentation

  1. 1. VTech Communications LtdJune 2011
  2. 2. About VTech Company Profile• VTech Holding Ltd. • VTech Telecom Ltd. • VTech Electronics Ltd. • VTech Communications Ltd.• Head office in Hong Kong with 20+ overseas offices worldwide• Employees : more than 30,000 worldwide with 1300 R&D Professionals & Engineers• Revenue : $1.7128 billion (FY11) 2
  3. 3. History of VTech• 1976 - Established by Mr. Allan Wong in Hong Kong - Named Video Technology Ltd. - Design and manufacture home video games• 1986 - Publicly listed in Hong Kong (HKSE:303) and USA (via ADR : VTKHY) Mr. Allan Wong• 1993 – Established 3 major business units – Cordless Phones (VTT) – Educational Learning Products (ELP) – Contract Manufacturing Services.(CMS) 3
  4. 4. Financial Performance – Key Figures Key Financial Data (US$M) The Group Turnover in the Past 5 Years (US$M) FY10 FY11 1800 1713• Revenue : 1,532.3 1,7128 1700• Operating Profit : 224.1 218.7 1600 1552 1532• Profit to Shareholders : 206.5 202.0 1500 1464 1448• Group Net Cash: 382.6 333.1• R&D Expenditure : 56.8 56.8 1400• Earnings/Share (Cents) 83.7 78.0 1300 FY07 FY08 FY09 FY10 FY11 US$M FY10 FY11 % US$M FY08 FY09 FY10 FY11 Growth Europe 528.9 667.6 39.0% ELPs 616 566.9 504.5 594.9 17.9% Asia Pacific 81.5 98.2 5.7% CMS 248 260.6 281.3 390.4 38.8% N. America 872.6 874.9 51.1% Phone 688 620.7 746.5 727.5 -2.5% Others 49.3 72.1 4.2% Total 1,552 1,448.2 1,532.3 1,712.8 11.8% Total 1,532.3 1,712.8 100% a 4
  5. 5. CMS Sales Distribution – FY11VTech CMS Manufactures for the FY11AProduct Types FY09A FY10A The MarketProfollowing Industries & Applications38% Audio 30% 38% 12.0% 0.2% 42.7%Power Supplies Audio and Audio / Visual • Professional 25% 18% 18% • Power Conversion, AD/DC, DC/DCLED 9% 15% 13% • LED, Decorative11%Comm/Industry & Architectural 10% 11% • Medical Care &13%Wireless Personal Care 8% 10% 45.1%Home Appliances Wireless • Telecomm & 8% 8% 7% • Industrial AutomationMedical 3% 2% 3% USA Europe Japan Other • Home AppliancesOthers 1% 0% 1% • Home Automation (ZigBee Member)Total 100% 100% 100% VTech CMS can provide the FY08A FY09A FY10A FY11ABiggest 25.2% 25.3% 23.7% 20.8% Manufacturing Service for:Top 5 65.0% 64.0% 64.7% 59.1% -- just PCBAs & Sub-AssembliesTop 10 83.0% 78.8% 79.3% 77.6% -- complete Turn-Key Products -- Plastics, Metal, Tooling -- Including Packaging 5
  6. 6. VTech Corporate Structure Allan Wong – Chairman & Group CEO King Pang/Andy Leung – Executive DirectorsVTech Telecom Ltd VTech Electronics Ltd VTech Communications Ltd CEO - Allan Wong CEO – King Pang CEO - Andy Leung 6
  7. 7. Organization of CMS Management Andy Leung CEO VTech Communications Ltd. Connie ChimY.F. Poon Rix Chan Ruby Yau Kent CheungR&D Director General Manager Operations Manager General Manager BU3 BU2 BU1Fanny ChauAccounting Manager Eva Yau Susanna Chu Ivan Wong PMT Manager PMT Manager PMT ManagerYuker LawSenior Manager Mandy Lam Pheon Yu Rebecca YeungIT & Logistic Purchasing Manager Purchasing Manager Purchasing ManagerVitus LamLogistic Manager Polly Lai Bill Fung S.L. Ng QA Manager QA Manager QA ManagerKenneth LamDirector of Roger Ma Victor Ho Ady HoBusiness Development DE Manager DE Manager DE Manager Rolf Seichter Foran Pong D.B.Feng Jerry Shu President Production Manager Production Manager Production Manager USA East Coast Beryl Li Judy Chung Jenny Chan PMC Manager PMC Manager PMC Manager 7
  8. 8. Organization of CMS Management BU2 BU3 BU1B8 - End of 2011 88
  9. 9. Manufacturing Capability• ISO9000 Certified Companies since 1994, ISO14001 Certified in June 2001• ISO9001 Certified since Aug 2006• ISO13485 (Medical Products) certified in Jun 2003,• TS16949 (Automotive products) certified in Aug 2003,• ESD Certificate – ANSI ESD S20.20 certified Aug 2007• OHSAS18001 (Occupational Health and Safety Assessment Series) certified in Jan 2009,• SA8000 (Social Accountability) certified in May 2009• Over 4 million sq ft in manufacturing space. Workmanship according to IPC-A-610-D Level 2• Certified factories for BABT, UL, CSA, TUV, VDE, CE, etc.• Automated Setup for SMT (60 SMT Lines), fine pitch SMT and Micro BGA products• Automated Die Bonding Setup (130 die bonding machines)• In House Plastic Tool Shop & Molding (400 molding machines from 50 tons to 850 tons)• Material Sourcing Offices in the UK, USA and Japan (Annual Purchase power of $1.3 billion)• Computerized MRP Inventory System 9
  10. 10. Quality Management System - Quality System Model Quality & Environment System OHASAS18001 ISO9001 ISO14001 ISO13485 ANSI/ESD S20.20 TS16949 SA8000 System and Process audit VTech Tracking System Identification & Traceability Equipment Statistical Material Product Control TechniquesCustomer barcode barcode Customer system system Material Manufacturing Customer Material Storage, planning received Process control request & Outgoing Packaging (MRP) & Quality PO review IQC Assuranc & Delivery PO release Production e Inspection & Test Vendor Rating System & Improvement Program In-process Outgoing Quality Quality Vendors Control Assurance 10
  11. 11. Protecting Our Client’s Intellectual PropertyOur Client’s Intellectual Property is their mostvaluable Asset.Therefore, it needs to be fully protected, as well asVTech’s IP.The VTech CMS Division has implemented: - An Employee IP Awareness Training - Access to documentation on an “as needed” basis - Tightly controlled Access to Files and Data - NDA, followed by Confidentiality Clause in Mfg Agreement - Return of all Files after a Completion of a Project See further IP Protection Implementation & Control on our related web page 11
  12. 12. The Advantages of an NPI Team  Quick response to customer’s enquires  Shorten NPI cycle time and “Time-To-Market” NPI Team  Able to provide full on-site support during pilot run production PMT Program Management Team  Review of the product manufacturability & to propose DFM Options - Handles all Business issues - NPI project co-ordination & status follow up with Customer DE Development Engineering - Leading the engineering team to review the whole Pilot Run production process & report back to Customer with our findings & suggestions on changes. - Suggest necessary modification on Mechanical parts during Tooling stage. NPI PE Product EngineeringTeam - Support Customer Testing team to debugging test sequence & product software. - Root cause analysis on failure. IE Industrial Engineering - Review the product manufacturability & suggest possible Design For Manufacturing (DFM) - Design & prepare specific production jigs & fixtures. QA Quality Assurance - Monitor the NPI production in view of IPC standard or Customer specified quality standard PUR Purchasing - Provide quick responses on new components sourcing, alternative & quotation 12
  13. 13. Design Support in VTech CMS ZigBee Member Contract Manufacturing Services provides design support in  Full Industrial Product Design.  Full mechanical design per conceptual layout and idea.  PCB design and layout capability. NPI Program and Concurrent Engineering activities to support customer at design stage :  Component selection and/or evaluation.  Design for ability to manufacture. Design resource (expertise in RF design) can be allocated to customer upon request. 13
  14. 14. Audio Workshop in VTech CMS R&D Besides design support, CMS R&D provides services for professional audio products. Acoustic and Listening Room were Certified by South China National Center of Metrology Jan 2009 Professional Audio Sample Evaluation Functional test Listening Test Parametric Test a. Power Amplifiers Y Y Y b. Mixing Consoles Y Y Y c. Self Powered Speakers Y Y Y d. Microphones Y N Y Basic Simulation for Power Amplifier & Mixing Console 1. Power Output Analysis 2. Power Consumption Analysis 3. Frequency Response Analysis 4. Monte Carlo Analysis 14
  15. 15. Examples of CMS ProductsProduct MarketPCBA for Medical Equipment JapanController Board for Microwave Oven JapanSwitch Mode Power Supplies EuropeWireless Hand Free Device for Phone EuropePCBA for Electronic Shower UKProfessional Audio Products USA/Europe/JapanSpeaker Systems USAA/V Conference Device 360º USAIndustrial Printer PCBA & Control Panel USASafety Product w/ Finger Print ID USAIndoor/Outdoor LED Lighting Products USAVoIP Phones USAWireless Microphone & Base Station USA3-D Mouse for Gaming Applications USAPersonal Care Laser Device USADoor Controller for Train EuropeWireless Door Chimes EuropePCBA’s for Home Care Product USAHome Alarm System USABlood Testing Devices USA 15
  16. 16. VTech Geographical LocationsLiaison Offices VTech (Qing Yuan) Plastic and ElectronicsHeadquartersVTech Communications Ltd.23/F, Tai Ping Industrial Centre,Block 1, VTech LiaoBu Factories57 Ting Kok Road, Tai Po, N.T.Hong Kong VTech Electronics IndustriesTel.: (852) 26801000Plant of Liao BuVTech (Dongguan) Electronics and Communications Ltd.VTech Science Park,Xia Ling Bei Management Zone,Liao Bu District, Dongguan,Guangdong, ChinaTel.: (86) 769 83305678 Ext. 2881SubsidiariesVTech Telecom, L.L.C. Notes:545 Concord Avenue, From the border of Hong Kong and Shenzhen, it will take 1 hour 15 minutesSuite 12, Cambridge, drive to VTech LiaoBu FactoriesMA 02138 USATel.: (1) 617 576 3300 From Guangzhou Airport, it will take 1.5Email: cms-info@vtech-cms.com hours drive to VTech LiaoBu Factories 16
  17. 17. Thank You 17

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