Enriching life through communication

Broadband ● Convergence ● Green

Huawei
Creating Value through Innovation

MobileMonday Shanghai hosting

MoMo Düsseldorf and the City of Düsseldorf www.huawei.com
Monday, 20th September 2010, Shanghai

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential

Contents

Sustainable Growth & Customer-centric Innovation

Localization for Sustainable Development

 A Glance at Huawei

Sustainable Growth Serving Top Operators Global Operations

Contract sales: US$ 30.2B with 30% Serving 45 of the world's top 50 operators 95,000+ employees worldwide
YoY growth 1/3 of the world's population 22 regions & 100+ branch offices
2/3 sales from int’l markets 17 R&D centers, 45% R&D staff
Contract sales
(US$ in billions) 36 training centers
36
35 Contract sales % from int’l markets
Three-level service system
Belgacom
British Telecom
30.2 Deutsche Telekom
FT/Orange
30
KPN
OTE
HUAWEI
Bell Canada Portugal Telecom MTS (Headquarters)
Comcast SFR Svyazinvest China Mobile
25 Sprint Swisscom VimpelCom China Telecom
23.3 Telus TDC China Unicom
Telecom Italia Etisalat
Verizon
Telefonica Saudi Telecom
66%
20 Telekom Austria Zain
Telenor
75% TeliaSonera
16 Vodafone
Wind/Infostrada
15
Orange Bharti Airtle
MTN BSNL
11 72%
America Movil Vodafone Hutchison Whampoa
10 Oi/Telemar KDDI
8.2 Telefonica KT Corp
65% Telmex NTT
SingTel
5 58% SK Telecom
Softbank R&D Centers
Telstra
Customer Service Centers
0
2005 2006 2007 2008 2009 2010E

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 3

End-to-end advantages in network, software,
devices and professional services
To enrich life through communication

Ensuring seamless user experiences any time, anywhere, via any device

Application &
Network Services Devices
Software
Consolidate leadership Build smart business Offer end-to-end Construct a winning
in All-IP convergence support environment professional services device customization
networks and an open value chain
application platform

Continuous customer-centric innovation

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Helping operators build future-oriented All-IP
converged networks
Fixed network
Optical NGN core Access

1 Huawei Huawei Huawei

Mobile network
UMTS GSM CDMA
1 Ericsson Huawei Huawei

2 Huawei Ericsson ALU

IP network
SP Router
1 Cisco
The only telecom supplier ranking in the top 3 for all
these areas 2 Juniper

3 Huawei
Comprehensive strengths in fixed, mobile and IP
technologies
Data Source: DELL’ORO Group, Infonetics, Ovum and etc.

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 5

Continuous customer-centric innovation

R&D process driven by customers’ strategies

Case: SingleRAN solution
Strategy comm.
One network
Customer strategy Huawei strategy
& requirements JIPs/JICs ＆plans
One deployment

One team

Market mgt IPD

Shared platform Innovation investments

Portfolio Portfolio Portfolio Portfolio Portfolio
43,600+ employees (46% of the entire workforce)
A B C D ……
Hardware
Platform R&D engaged in R&D
Software
Platform R&D
ASIC Matrix R&D
~10% of revenue invested in R&D, ~10% R&D
Platform R&D
Integration Organization cost on pre-R&D
Testing
Comprehensive strengths in " Cost, Quality and
17 R&D centers worldwide and 20+ innovation
Speed" built on platform sharing and CMM5 software
quality mgt
centers with global leading operators

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 6

Our green strategy

Green Huawei Green Green World

Communications
Innovative Green
Supply Chain Management Protecting the Earth
Communication Solutions
EHS by Innovative
ICT Solutions

Member of GeSI (Global e-Sustainability Initiative)

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 7

A responsible Corporate Citizen
A member of the UN Global Compact
Environmental protection

Effective measures to save energy and reduce emissions in internal operations

Helping operators decrease OPEX and cut energy consumption and emissions through
green networks

Innovative solutions, e.g.: CNY 10 K power saving/SingleRAN site
Local commitment

Promote local economy through localized operations: sales and service institutions, R&D
centers, training centers, technical support centers and production centers etc.

Bridge the digital divide with low TCO solutions

Participation in charity activities and fund donations

Relief efforts

$220 K cash and 5 K mobile phones to earthquake-hit regions in Haiti

Donation to the local Red Cross for typhoon in Philippine

$11.5 M* to earthquake-hit regions in Sichuan, China

$5.5 M* to tsunami-affected countries in Southeast Asia

$3.12 M to the National Education Commission of China

Employee security

Comprehensive employee security system

CNY1.68 B welfare allowance expenses in 2009 * Value of cash and equipment

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 8

Contents

Sustainable Growth & Customer-centric Innovation

Localization for Sustainable Development

Steady and Sustainable Growing in Europe
Contract Sales of European Region

Contract sales: US$ 3B in 2009 (US$ millions)

Maintained steady growth despite of 3,500

3,000 3,000
substantial investment decreases 3,000
2,500 2,050

Expanded and deepened cooperation with 2,000
1,500
leading operators in Europe: 1,000 770
413
500
-
Y2005 Y2006 Y2007 Y2008 Y2009

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 10

Development Strategies in Europe
Value Proposition:
Dedicated to Customers’ Success, Boost Industry, Contribute to Society

Openness &
Localization Innovation
Partnership

Customer-
Centric
- Europe is one of the most important markets for Huawei and a
key part of Huawei’s global development strategy.

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 11

Localization:
Customer-centric Business Platform

Business Centers
 Düsseldorf: Continental Europe and whole region
 Basingstoke: UK and Ireland Düsseldorf

 Warsaw: Eastern and Nordic Europe Basingstoke

Warsaw

31 subsidiaries: customer proximity

~60% local employees among 3,000+ staff

Boosting the development of European

informationization and economy, creating more job
opportunities for the whole industry value chain.

Acting as a local company with global experience

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 12

Localization:
Complete Logistics Platform and Professional Service

One assembly and distribution plant (20,000m² )

Two regional and 36 country spare parts centers

Three Technical Assistant Centers, 7*24 Guarantee

Six training centers with multi-language

Totally 7200 service engineers, ~83% from Service Partners

Assembly Center UK Training Center German Training Center Italian Training Center

Realizing customers services excellence through localization

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 13

Innovation:
Localized R&D and Joint Innovation

5 R&D Centers: Stockholm, Gothenburg, Munich,

Paris and Milan

Joint Innovation with leading operators

Customizing solutions to help customers’ business

success with leading technologies. Local Research Center Innovation Center

R&D Center in Sweden

Creating value for customers and society through innovation

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 14

Openness and Partnership:
Harmonized ICT Eco-System

CoC EuP
Compliant
with Int’l and local
laws & regulations BS7799(Information Security)

Cooperation
with Institutes &
Academies

Service Partners
300+

Contributing to local community as corporate citizen

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 15

 Düsseldorf – cosy town at the Rhine

North Rhine-Westphalia (NRW) Düsseldorf

18 mio inhabitants Round 580.000 inhabitants

Asian inhabitants 14.600

12.000 Japanese inhabitants Japanese inhabitants 5.000

Chinese inhabitants 1.400

About 660 Chinese companies About 280 Chinese companies

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 16

Düsseldorf – some impressions

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Düsseldorf – Castle Tower (Schlossturm)

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Düsseldorf – Rhine Promenade (Rheinpromenade)

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Düsseldorf – Rhine Promenade (Rheinpromenade)

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Düsseldorf – Old Town (Altstadt)

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Düsseldorf – Media Harbour (Medienhafen)

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Huawei in Düsseldorf

Am Seestern 24
40227 Düsseldorf
Germany

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Huawei in Düsseldorf

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Huawei in Düsseldorf

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Huawei in Düsseldorf

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Huawei FMC Joint Innovation Lab

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Growth at Huawei Düsseldorf Office

Number of employees

450
400
350
300
250
200
150
100
50
0
Apr 07 Dec 07 Dec 08 Dec 09 July 10

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 28

Locations throughout Germany
HUAWEI Duesseldorf GmbH

Düsseldorf (Business Center Europa)

Munich (EU Research Center) Hambur
g

Berlin (EU Reserach Center) Rostock
Oldenburg
Berlin
HUAWEI Service GmbH

München (Registered office) Hannove
Hamm r

Berlin Düsseldorf Taucha
Köln (bei

Dresden Bonn Leipzig)
Dresden

Hamburg HUAWEI Deutschland GmbH

Hamm
Eschborn (Registered office)
Eschborn

Hannover
Bonn
Darmstadt

Kaiserslautern
Darmstadt (Innovation Center)
Bamberg

Köln
Bamberg (Optical Competence Center) Kaiserslautern

Oldenburg
Nuremberg Nürnber

Stuttgart

Rostock
Munich g
München

Stuttgart

Taucha (near Leipzig)

20 Locations, 5 R&D- and Innovation Centers, 2 Training Centers

1.000+ Employees, 60% Local Employees
24h Customer Service System

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 29

Growth of Huawei in Germany

Sales revenue in Mio. € Average number of employees

300 1.200

250 1.000

200 800

150 600

100 400

50 200

0 0
2006 2007 2008 2009 2006 2007 2008 2009 Jul 2010

Includes:
Huawei Technologies Deutschland GmbH
Huawei Technologies Düsseldorf GmbH (from 4/2007)
Huawei Technologies Service GmbH (from 4/2010)

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 30

Local Social Responsibility

Local investment of about 160 Mio. € till 12/2009.

Creation of about 600 local employments till 12/2009.

Foundations: Innovation Center in Darmstadt,

Mobile Innovation Center in Düsseldorf,
Optical Competence Center in Bamberg,
European R&D Center in Munich and Berlin

Cooperations: University of Dresden, TU Munich,

TU Darmstadt, University of Würzburg, RWTH Aachen,
University of Duisburg, Frauenhofer Fokus, Berlin

Participation in the Asia SWITCH Project to improve environmental and safety aspects in the
electrical and electronical industry in China; conducted by Deutsche Telekom and sponsored by the
European Commission.

Project partner at SMART 2020 Germany project to reduce CO2 emissions of the ICT industry in
Germany, together with Deutsche Telekom, SAP, BITKOM, BMWi*.

Local sponsoring, e.g. Entente Floral in Düsseldorf, school anniversary Comenius-Gymnasium,

Düsseldorf-Oberkassel, RUN4iDEAS, company run, Düsseldorf, Dragon Boat Regatta Düsseldorf
*Federal Ministry of Economics and Technology

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 31

Thank you
www.huawei.com