Huawei Corporate Presentation

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www.huawei.com

Huawei Corporate Presentation

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Huawei at a glance



Carrier network



Enterprise business



Consumer devices

 A leading global

ICT

solutions provider

 A

private

company established in 1987

 A

Fortune Global 500

company



150,000+

employees worldwide 

70,000+

engaged in R&D

Who is Huawei

Employees

Business Areas



$32.4 B

revenue in 2011,

$16.2B

in 2012 H1  Serving

45

of the world's top 50 operators

 Serving

1/3

of the world’s population

Market Progress

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2007

2008

2009

2010

₂₀₁₁

2012

(Target)

12.6

(CNY 92.2 bln)

18

(CNY123.1 bln)

21.5

(CNY146.6 bln)

27.6

(CNY182.5 bln)

32.4

(CNY203.9 bln)

38.7

(CNY243.4 bln)

 Huawei releases its Annual Report with consolidated financial statements audited by KPMG

Revenue (USD in billion)

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2007 ₂₀₀₈ 2009 ₂₀₁₀ 2011 9.4% 9.1% 9.7% 9.7% 11.6%

Continuous innovation investment

 ~70,000 R&D employees

 15 R&D centers located in 29 cities

 25 Joint Innovation Centers

 26,539 patents

 USD 3.76 billion in 2011

% of revenue R&D spending

• Huawei’s innovation engine

• Navigating the company’s future through innovation

• Driving the industry and society forward

2012 Lab

• Cloud computing will shape future network development

• Heavy investment in R&D

• Develop datacenter solutions based on cloud computing

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Localized operations powered by global resources

14 Regional Headquarters, operations in

140+

countries

150,000+

employees with

150+

nationalities worldwide,

73%

recruited locally

R&D center

Huawei Headquarters

Technical support center Accounting share center Supply center & Hub Training center

Bidding center (Planning)

Argentina Mauritius Malaysia Romania China India Hungary Brazil Mexico Netherlands UAE Bahrain Germany

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Global cyber security assurance system

Huawei’s end-to-end cyber security assurance system

incorporates aspects from our corporate policies, organizational structure, business processes, to technology and standard practice. ——Huawei Cyber Security White Paper （Sep._2012）

Huawei believes that the establishment of an open, transparent and visible security assurance framework will be

conducive to the sound and sustainable

development of industry chains and technological innovation; it will also facilitate smooth and secure communications among people.

- Mr. Ren Zhenfei, CEO, Huawei

Supervisory Authorities

Cyber Security Evaluation Centre (UK)

Operators

Security tests and audits with leading operators

Security/ Industry Organisations

Participation in and contributions to enhancing security standards

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Organization of Carrier Network Business Group

Wireless Network BU Fixed Network BU Telecom Software & Core Network

BU Global Tech. Service BU Carrier Network BG Focus on MBB Solution  PS Core  Radio Access  Site Solution Focus on FBB Solution

 _{Router & Switch}  Optical & Microwave  Fixed Access  Security  iODN Focus on E2E Solution  Cloud-Pipe-Device Synergy  Portfolio Mgmt.  _BSS/OSS  IT Infrastructure

 Cloud Computing based Data Center

 FMC/RCS-e

 _{Core Network}

 App. Enabling Platform

 Subscriber Data Base

 Roll Out

 _Professional

Services

 Managed Services



Organizational transformation to more quickly meet customers’ solution demands



Consolidated business units (BUs) and functional departments to enhance organizational efficiency

Carrier Enterprise Consumer

Marketing and Solution Dept.

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Enterprise business strategy: A leading supplier of integratable ICT

products and solutions

Carrier Enterprise Consumer

Leading

ICT

Provider

Open-Collaboration

 Integratable products and solutions

 Transparent channel policy

 Open platform, easy to redesigned by partner

 Build a healthy ecosystem

Leading ICT Solutions

 Business oriented ICT consultation and

architecture design

 Joint innovation with telecom carriers

 Full series ‘cloud-pipe-device’ products

Multi-win Business Model

 Hi-touch+ partner business model: develop

enterprise market through operator resale;

 Global presence and local partner to support fast

deployment and professional services

Targets in 2015

Enterprise Network

Unified Communication & Collaboration

Cloud Computing & DC

TOP2

TOP3

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Growing into a major player in Smart Devices field

Smartphone

Mobile Broadband

Home Devices

No.1

To be a

Tier One

brand

 Leading technologies out of Cloud-Pipe-Device

synergy

 Connected Home, Management Service, Cloud+, etc.

Operator brand Co-branding Huawei brand

+

Operator resale Open market

sales Online sales

+

Solutions

Brand

Channel

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Awards and Honors

By International Media

 Three Accolades at Global Telecoms Business Innovation

Awards 2011

 The Global Growth and Innovation in Telecom Managed

Services of the year Award, the only award in the global managed service field, by Frost & Sullivan （2011）

 E5 was awarded Work Gadget of the Year! by ‚Australian T3‛

and Product of the Year by Pocket Lint in UK

 ‚Corporate use of innovation‛ by The Economist

 "Green base station innovation", "Wholesale network

innovation" and "Consumer voting innovation" awards with Vodafone, BT and TalkTalk respectively by Global Telecoms Business

By Industry Organization

 “Supplier of the Year 2012” by Vodafone

 InfoVision award for Best Broadband Access – Fixed at the Broadband World Forum 2012 by virtue of its Largest Capacity Vectoring System

 "Most Significant Development for Commercial LTE Networks"

and "Best LTE Core Network‚ at the 2012 LTE World Summit

 "Solution Excellence Award‚ by TM (2012)

 Industry Leadership Award by TM Forum (2011)

 "Excellence in Standards Development Award" by IEEE (2011)

 Awarded "Significant Progress for a Commercial Launch of LTE

by a Vendor" and "Best LTE Network Elements‚ at LTE World Summit 2011

 Good Design Award 2010 by Japan Industrial Design Promotion

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Huawei CSR Commitments

 Transparent sales  Transparent procurement  Building a harmonious business environment Fair Operations Expanding communications coverage Elevating local telecommunications expertise

Narrowing broadband gap

Bridging the Digital Divide Green Communications Green Huawei Green World Environmental Protection

Dedicated employees as the

foundation

Employee occupational health

and safety

Employee career path and

growth

Open communication channels

Employee

Disaster relief efforts Social welfare contributions Local community engagement Social Contribution Improving CSR awareness

and capability of Huawei and its supply chain

Strengthen supply chain CSR

management

Supply Chain

‚Safety First, Prevention First‛ Risk Control Safe Operations Improving communication with stakeholders  Enhancing customer perception Stakeholder Communication

Focusing on the

above areas, we are

committed to the

sustainable

development of the

social economy and

the environment

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Thank you

www.huawei.com

The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.