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2 1127,000 1,500 HKSE

3 1981 CreatiVision Apple II Laser 3000 Laser 310 LED LCD Lesson One Laser 100 ASIC Talking Whiz Kid Small Talk Little Smart Driver Laser Socrates Vancouver LT84X CV Capsela Lesson One

4 , V.Smile InnoTab CAT-iq 2.0 Avant Go! Go! Smart Wheels ,800 DECT 1997 Calgary , AT&T AT&T LCD 5, V.Smile Octavius Tower SIP ErisStation Go! Go! Smart Animals Zoo Explorers Playset 25% 2016 LeapFrog Enterprises, Inc.

5 1, , % % % % % % % % % % % % % (%) * (EBITDA) * % % 2,100 1,800 1,500 1, , , , , , (%) (%) 1

6 Learning Lodge LeapFrog Enterprises, Inc. 1.2% 18 5, % 1 8,140 Learning Lodge 8.5% % LeapFrog 98.9% 58.2% 9.9% Learning Lodge PlanetVTech Kid Connect Learning Lodge LeapFrog Enterprises, Inc. 2

7 Learning Lodge Learning Lodge Kidizoom Smartwatch Learning Lodge 16% 23% 1 77% 84% Go! Go! Smart Kidizoom Action Cam % 1 NPD GroupRetail Tracking ServiceMarketWise Consumer Insights, LLC Global Market Share Estimates 2 NPD GroupRetail Tracking Service 3 NPD GroupRetail Tracking Service 3

8 27% 19% CAT-iq ErisStation Session Initiation Protocol, SIP ErisTerminal 25% LeapFrog LeapFrog Enterprises, Inc. LeapFrogLeapFrog 7,200 LeapFrog LeapFrog LeapFrog LeapFrog LeapFrog LeapFrog LeapFrog Go! Go! Smart Wheels Go! Go! Smart Friends Little Love Baby Amaze TM LeapFrog LeapFrog Touch & Learn Activity Desk TM Deluxe DigiGo Kidizoom Smartwatch DX LeapFrog 4

9 LeapFrog PSTN VoIPCAT-iq ErisTerminal ErisStation SIP ULE Connect to Cell 5

10 1, ,879.8 (23.3) (27.2) 31.4% 32.5% (381.0) (390.4) % 20.8% (17.8) 10.9% 11.7% (0.8) (18.6) (21.7) (23.6) % 10.6% (16.7) 9.8% 10.5% 1.2% 18 5,650 % % % % % % (21.2) -2.4% % % (16.4) -2.0% % % % % % % 1, % 1, % (23.3) -1.2% (%) 0 5 8, ,050 2, % 32.5% 31.4% , % 6

11 11.7% 10.9% 13.4% 12.8% 2.4% 3 8, % 20.5% 2 6, , % 14.3% 13.7% 6,610 7, % 3.8% 5, % 3.0% 1 8,140 1, % 10.5% 9.8% 2,360 2, % 10.7% , , * * 7

12 5 2, , % % (17.8) (14.3) (0.2) (1.1) (7.6) 2 9, , % , , % (4.8) (0.8) (1.3) 35.9 (186.1) (2.3) (188.4) (156.5) 0.4 (0.8) (156.9) (27.3) (4.2) (31.5) (3.0) (1.7) (0.4) (5.1) (2.1) (5.4) , , % 14.8%

13 2 2, , % % 11.5% ,800 3, , , , ,690 3,150 2, ,830 4,410 LeapFrog 7,200LeapFrog 9

14 47.3 % 8 7, % 42.9 % 7 9, % 2.9 % 6.9 % 5, , % 9.7% 10

15 , % 8 7, % 4.8% 3 1,440 4 Go! Go! Smart Go! Go! Smart Wheels Ultimate RC Speedway TM Kidizoom Action Cam Baby Amaze Flipsies TM Switch & Go Dinos Kidizoom Smartwatch InnoTab Learning Lodge Kidizoom Smartwatch DX InnoTV TM 5 ErisStation SIP ErisTerminal 4.9% 1 9, % 3 7,140 4 NPD GroupRetail Tracking Service 5 MarketWise Consumer Insights, LLC 11

16 % 7 9, % DigiGo Storio MAX 10.2% 3 2, Switch & Go DinosToot- Toot Little Love Kidizoom Action Cam Flipsies La Revue du Jouet Toot-Toot Drivers Super RC Raceway InnoTab Storio Kidizoom Smartwatch Kidizoom Smart Watch Plus Tots Get Busy 13.3% 1 3,640 CAT-iq ErisTerminal ErisStation 14.3% 3 3,400 6 NPD GroupRetail Tracking Service 7 NPD GroupRetail Tracking Service 12

17 % 1 2, % 57.9% 4,090 Switch & Go Dinos Go! Go! Smart Wheels Kidizoom Smartwatch 16.3% 3,600 Telstra 7.0% 5, % 5, % 17.4% 4, % 1,

18 NO. 1 1 NO. NO. 1 4, % 37.3% 3 1, % 1, , % 4, % 57.9% 14

19 Playtime where friendship leads to learning! TM Go! Go! Smart Baby Amaze / Little Love Touch & Learn Activity Desk Deluxe 15

20 NO. 1 3, % 31.5% 3 7, % 4, , % 3, % 16.3% 16

21 DS6771 Connect to Cell ErisStation CS6919 ErisTerminal DS6722 Safe&Sound CareLine CAT-iq

22 26 Top 50 $ $ % % 31.2% 1 9, , % 14.3% 5, % 7.0% 18

23 ON Design for Manufacture 19

24 FTSE4Good Sustainalytics ,600 18,291 Galaxy Awards ARC 8 9 La Revue du Jouet Toot-Toot Drivers Super RC Raceway 8 NPD Group (Retail Tracking Service) 9 NPD Group (Retail Tracking Service) 20

25 Kidizoom Smart Watch Plus Tots Get Busy 140 LeapFrog LeapFrog LeapFrog ErisTerminal ErisStation Telstra ErisStation VCS704 TMC VM312Right Start Pan & TiltVM343Prima Baby Prima Baby Awards 2016 Manufacturing Market Insider 25% 21

26 FTSE4Good 10 Sustainalytics 100 GRI G4 G FTSE4Good

27 23

28 GRI G4 ISO9001 ULE Blue Angel DECT 24

29 ISO R ISO

30 OHSAS SA 8000 ICTI CARE Caring, Awareness, Responsible, Ethical 26

31 OHSAS EHS 23.2% 16.4% 27

32 2,600 18,291 28

33 ,

34 % 98.9% % # # 30.0 (%) 0 30

35 FTSE4Good

36 FTSE4Good ,182, MUFG Fund Services (Bermuda) Limited The Belvedere Building 69 Pitts Bay Road Pembroke HM08 Bermuda (852) (852) (852) (852) investor_relations@vtech.com 32

37 14 A.2.1A.6.7 A.2.1 A /5 1/1 2/2 1/1 5/5 2/2 1/1 5/5 2/2 1/1 4/5 1/2 1/1 2/2 1/1 5/5 2/2 1/1 1/2 1/1 3/5 1/1 0/1 5/5 2/2 1/1 2/2 2/2 1/1 33

38 34

39 20 35

40

41 investor_relations@vtech.com

42 38 BBS JP SBS JP Purdue University BBS JP GBS MBE JP Oklahoma City University SBS OBE JP Singapore Airlines Limited

43 SiS ESS Technology Manchester Business School Manchester Metropolitan University University of Manchester Institute of Science and Technology Ernest M. LEVENSONVTech Communications, Inc. LEVENSON LEVENSON Connecticut College Babson College VTech Electronics North America, L.L.C. University of Chicago VTech Technologies Canada Ltd. University of British ColumbiaInstitute of Chartered Accountants of British Columbia Jays Care Foundation British Columbia Institute of Technology Royal Roads University Crofton House School Gilles SAUTIER Kenner-Parker Spear s Games Ideal Toys Majorette University of Paris L ESSEC French Federation of Toys and Games 39

44 ,

45 24,938, XV 9,654,393 3,968,683 74,101,153 87,724, % 1 91,500 91, % 128, , % 449, ,200 1,041, % 2 211, , , % , , % (1) Honorex LimitedHonorex1,416,325Conquer Rex LimitedConquer Rex65,496,225Twin Success Pacific LimitedTwin Success7,188,603Conquer Rex HonorexConquer Rex Honorex Twin SuccessSurplus Assets LimitedSurplus AssetsSurplus Assets The Allan Wong 2011 TrustCredit Suisse Trust Limited Surplus Assets74,101,153Honorex 65,496,225Surplus Assets Credit Suisse Trust LimitedCredit Suisse Trust Limited (2) Golden Step Limited (3) Romsley International Limited (4) (5) 251,182, XV 41

46 XV336 5% Credit Suisse Trust Limited 1 74,101, % Surplus Assets Limited 1 74,101, % Honorex Limited 1 65,496, % 1 1,416, % Conquer Rex Limited 1 65,496, % Templeton Asset Management Limited 20,033, % The Capital Group Companies, Inc. 30,252, % (1) Honorex1,416,325Conquer Rex65,496,225Twin Success7,188,603Conquer Rex Honorex Conquer Rex Honorex Twin SuccessSurplus AssetsSurplus Assets The Allan Wong 2011 Trust Credit Suisse Trust Limited Surplus Assets 74,101,153Honorex65,496,225Surplus Assets Credit Suisse Trust Limited Credit Suisse Trust Limited Surplus Assets74,101,153 (2) (3) 251,182,133 XV336 25% 10% 1,000,00077,000 30% 12.4% 32.2% 5% LeapFrog 72,000,000 LeapFrog LeapFrog 42

47 VTech Holdings Limited VTech Holdings Limited

48 1 1, ,879.8 (1,273.2) (1,269.3) (254.3) (268.2) (70.4) (66.1) (56.3) (56.1) 1& (21.7) (23.6) (1.5) (0.6) (1.5) (0.6) (5.2) (28.0) (0.2) (18.6) (1.7) (19.2) (b) (a) (345.3) (342.6) 16 (31.5) (27.3) 11(a) (3.6) (7.2) (380.4) (377.1) (5.1) (3.0) (a)

49 (0.5) (4.2) (28.0) (28.0) (0.6) (0.6) (28.0) 9.4 (0.6) (19.2) (28.0) (160.8) (160.8) 5 (42.7) (42.7) 18(b)&19(b) (b) 0.9 (0.9) 18(b)&19(b) (0.1) (c)&19(b) (1.7) (1.7) 18(c)&19(b) (0.9) (16.8) (0.9) (16.8) (5.2) (5.2) (1.5) (1.5) 0.2 (0.4) (1.5) (1.7) 0.2 (0.4) (153.2) (153.2) 5 (42.7) (42.7) 18(c)&19(b) (1.0) (1.0) 18(c)&19(b) (0.5) (16.6)

50 (0.2) 4.8 (24.3) (7.1) (18.1) (0.6) (26.9) (22.5) (38.3) (30.9) (3.3) (3.0) (b)& 19(b) (c) (1.0) (1.7) 5 (195.9) (203.5) (196.9) (201.8) 3.3 (25.7) A 1 B

51 47 C 26 D (K) E i. ii. iii. iv. F (K) G

52 48 H (K) I (K) (H) J (K) K (i) (ii) 34

53 49 L M N (K) O P Q (i) (ii) R

54 50 R S (i) (ii) (iii) Black- Scholes T

55 T U V W X Y (a) (i) (ii) (iii) (b) (i) (ii) (iii) (iv) (v) (vi) (a) (vii) (a)(i) (viii) 51

56 1 8 (a) (b) , (46.3) (24.0) (311.5) (0.1) (381.9) , (41.7) (21.8) (309.1) (0.3) (372.9) (c) (a) (b) % 13% 20(a) (381.9) (372.9) 11(a) (3.6) (7.2) (385.5) (380.1) 52

57 (a) (b) (c) (b) 1, , (0.2) (b) (b) (0.3) (1.1) (5.2) (0.4) 3 383(1) 2 (i) (ii) (iii) (iii) (iv) (v) (i) (ii) (iii) (iii) (iv) (v)

58 3 (i) 30,000 30,000 32,000 30,000 (ii) 4,200,000 3,600,000 Aldenham Company LimitedAldenham Aldenham (iii) 38,000 30,000 (iv) 32,000 30,000 (v) 39,000 30, ,001 1,025, ,921,001 1,985, ,689,001 2,753, (0.5) 0.3 (0.7) 11(b) 0.6 (1.9) (a) 16.5% 16.5% (b) (c) 10.7% 10.6% % % (6.1) (6.5) (0.9) (0.5) , , , , , , , , , , , , , , , ,

59 (b) (b) ,400, ,100, ,100, ,100, ,100, ,200, ,200, (0.2) (21.7) (2.9) (24.8) (1.8) (0.1) (0.8) (2.4) (5.1) (6.5) (2.3) (8.8) (0.4) (0.6) (1.6) (2.1) (4.7) (0.2) (21.8) (2.8) (24.8) (1.0) (0.1) (0.7) (2.3) (4.1) (6.3) (2.2) (8.5) (0.4) (1.1) (1.5) (3.0)

60 (1.8) (1.8) (0.7) (0.4) (1.0) (1.0) (0.2) (0.2) (0.1) (i) (i) 3,000,000 3,000,000 56

61 ,100, ,0003,000, (a) (22.3) (25.2) (1.4) (7.5) (1.3) (7.2) (i) 2.3 (i) (3.6) (7.2) (1.3) (7.2) (i) (b) (0.6) (0.6) (0.1) (0.1) ,800,000 29,600,000 4,700,000 4,900,000 57

62 12 (a) ,000,000 11,000,000 (b) 1, , (1.2) (0.3) 1, , ,900,000 6,000,000 13(a) &(b) (b) &(d) ,900,000 3,800,000 (a) (b) 5,900,000 6,000, (0.3) (1.1) (0.5) (0.5) 0.1 (0.2) (c) 98% 97%100% 100% (70.0) ,000,000 35,800,000 58

63 15 15(a) (b) (a) 20(b) &(d) (b) 16 31,500,000 27,300,000 20,900,000 22,000,00010,600,000 5,300, (a) 17,500,000 15,800, , ,000 (b) (i) (33.8) (31.8) (5.1) (3.0) 1,800, (0.4) (22.4) (24.3)

64 17 (b) (ii) (1.7) (0.2) (1.1) (0.1) (0.1) (iii) (0.2) (0.4) (0.2) (1.1) (iv) (1.2) (v) (vi) 1.2% 1.5% 4.5% 5.0% 0.25% 0.25% 0.25% (0.2) (0.2) 60

65 18 (a) 400,000,000400,000, ,182, ,872, , ,182, ,182, ,60074,600 9,10017,200 18(c) 23 (b) 17 10% 10% 30% 1% 1 23,145, % (c) 3% 61

66 18 (c) 77,000130,200 1,000,000 1,700, ,000 94,600 1,400,000 1,300,000 (d) (62.8) (153.2) (1) (2) (3) (4) 4,300 4,800 42,60074,600 9,10017,200 1,400,000 1,300,000 62

67 19 (a) (b) (0.5) (1.0) (160.8) (160.8) 5 (42.7) (42.7) 18(a) (0.9) (0.1) (c) (1.7) (1.7) 18(c) (0.9) (1.0) (153.2) (153.2) 5 (42.7) (42.7) 18(c) (1.0) (1.0) 18(c) (0.5) (1.0) ,900, ,600,000 (c) 1981 (S) 63

68 20 (a) 32.2% 31.5% (b) (i) 102,000, ,000, ,000 5,400, ,900, ,700,000 4,700, ,000 (ii) 5% (c) 0.29% % % % , ,000 (d) 64

69 20 (d) (b)(i) (291.6) (291.6) (b)(i) (465.6) (412.3) (53.3) (e) 13 5,500,000 6,600, ,000 1,100, (i) (ii) (iii)

70 21 AT&T Intellectual Property LLC 1,400,000 1,900,000 1,000, ,000100, (a) (c) 353,600, ,600, (a) (188.4) (184.8) (0.6) (0.5) (189.0) (185.3) (a) (b) (b) 66

71 23 (a) 1,000 *100 5,000,000 5,000,000 *100 1,000 *100 5,000,000 Perseus Investments Limited 1, ,000 1, ,000 1,000,000 *100 VTech Telecommunications (Australia) Pty Limited 1 *100 VTech Electronics (Australia) Pty Limited 1 *100 VTech Technologies Canada Ltd. A5,000 *100 B195,000 *100 VTech Electronics Europe S.A.S. 450,000 *100 VTech Electronics Europe GmbH 500,000 *100 VTech IAD GmbH 25,000 *100 VTech Electronics Europe B.V. 18,100 *100 ** 49,186,165 *100 ** 64,800,000 *100 ** 18,725,011 *100 ** 20,000,000 *100 ** 52,500,000 *100 ** 293,000,000 *100 ** 10,000,000 *100 ** 5,000,000 *100 VTech Electronics Europe, S.L. 500,000 *100 VTech Electronics Europe Plc 500,000 *100 VTech Electronics North America, L.L.C. 22,212,997 *100 VTech Communications, Inc. 300,000 *100 * ** 67

72 23 (b) 18(c) 18(c) (2014) Bonita Merger Sub, L.L.C. LeapFrog Enterprises, Inc. LeapFrog LeapFrog 1.00 LeapFrog LeapFrog 72,000,000 68

73 (350.9) (366.0) (337.4) (377.1) (380.4) (6.5) (2.0) (3.0) (5.1) (5.8) (4.5) (5.8) (11.0) (2.0) (3.0) (5.1) , , , , , (19.7) (24.1) (24.2) (23.6) (21.7)

74 Clarendon House 2 Church Street Hamilton HM 11 Bermuda

75 YELLOW CREATIVE (HK) LIMITED (852) (852) investor_relations@vtech.com VTech Electronics (Australia) Pty Limited Suite 4, Level 6, 22 Albert Road South Melbourne, Victoria, 3205 (61) (61) enquiriestoys_aunz@vtech.com VTech Telecommunications (Australia) Pty Limited 24 Gilby Road, Mount Waverley Victoria, 3149 (61) (61) orders_au@vtech.com tcpsupport_au@vtech.com VTech Technologies Canada Ltd Jacobson Way Richmond, British Columbia, V6W 1L5 (1) (1) customersupport@vtechcanada.com toys@vtechcanada.com B (86) (86) vtechchina@vtech.com B (86) info_vttsz@vtech.com VTech Electronics Europe S.A.S. 24, allée des Sablières Croissy-sur-Seine (33) (33) contact@vtech.com VTech Electronics Europe GmbH Martinstrasse Filderstadt (49) (49) info@vtech.de VTech Electronics (Japan) Inc. 3F, Shin-Osaka Building, Nishiawaji, Higashiyodogawa-ku Osaka (81) (81) info@vtechjapan.com VTech Communications Japan Ltd. Okumura Building 3-14, Kanda Ogawamachi Chiyoda-Ku, Tokyo (81) (81) vtechcms@vtech.com VTech Electronics Europe B.V. Copernicusstraat DE Weert Industrial Estate Kampershoek (31) (31) vtechbenelux@vtech.com VTech Electronics Europe, S.L. Avenida de Aragón, Oficina 1 Polígono Las Mercedes Madrid (34) (34) informacion@vtech.com VTech Communications Limited 9, Manor Courtyard, Hughenden Avenue High Wycombe, Buckinghamshire, HP13 5RE (44) support_ukbusinessphones@vtech.com VTech Electronics Europe Plc Napier Court, Abingdon Science Park Abingdon, Oxfordshire, OX14 3YT (44) (44) gbmarketing@vtech.com VTech Electronics North America, L.L.C W Shure Drive, Suite 200 Arlington Heights, IL (1) (1) (1) vtechkids@vtechkids.com VTech Communications, Inc S.W. Gemini Drive, Suite 120 Beaverton, OR (1) (1) inquirevt@vtechphones.com VTech Telecom, L.L.C. 237 Lexington Street, Suite 201 Woburn, MA (1) (1) vtechcms@vtech.com An English version of this annual report may be obtained on request from Computershare Hong Kong Investor Services Limited of Shops , 17th Floor, Hopewell Centre, 183 Queen s Road East, Wan Chai, Hong Kong. If there are any discrepancies between the Chinese translation and the English version of this report and accounts, the English version shall prevail.

76 (852) (852) investor_relations@vtech.com

303 2017 1 2 3 6 14 16 22 24 32 35 40 42 46 50 52 79 80 13 27,000 1,600 HKSE 303 1 2,079.3 1,856.5 12.0% 689.4 583.3 18.2% 200.0 202.3-1.1% 200.1 203.1-1.5% 179.0 181.4-1.3% 202.0 242.8-16.8% 268.8 273.0-1.5%

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