the best partner in ict convergence · the best partner in ict convergence daniel zhou ceo of...

The Best Partner in

ICT Convergence

Daniel Zhou

CEO of Huawei Czech Technologies s.r.o.

112233

Industry InsightIndustry Insight

Strategy and ActionsStrategy and Actions

Performance in 2013

Huawei was founded in Shenzhen, China’s Special Economic Zone

1987

1992

1993

1997

1999

2000

2005

2009

2010

Founded by Ren Zhengfei and other investors with an investment of US$3,500, as a private company.

Developed analog switches with 48 ports.

Developed C&C08 digital switches.

Engaging global top consulting firms for management transformations.

Established its first international R&D center in Bangalore, India.

Made significant progress in developing countries, e.g., Uzbekistan.

Revenue from Asia Pacific, the Americas, and EMEA exceeded domestic market for the first time.

Deployed the world's first LTE network in Northern Europe.

Transformed from CT to an ICT company and established three BGs: Carrier BG, Enterprise BG, and Consumer BG.

Shenzhen in the early

1980s

Shenzhen after three decades

Today, Huawei is a leading ICT company

Carrier

Enterprise

Consumer

A leading global ICT solutions provider

A Fortune Global 500 company, ranking

285 in 2014

150,000+ employees worldwide

70,000+ engaged in R&D

Who is Huawei

US$39.5B revenue in 2013,

US$21.9B revenue in 2014H1

Serving 45 of the world's top 50 carriers, which

account for 77% of Huawei's revenue generated from the carrier network business

Serving 1/3 of the world's population

Market Progress

Employees

Business Areas

185 Executives in 170+ Standard Organizations & Open Source,

Offered 5,000+ proposals in 2013

Accumulated 36,511 patents authorized till end of 2013

466 core patents in LTE/LTE-A as the leading vendor

3GPP: 9 Chairman or vice Chairman

IETF: 10+ Chairman or vice Chairman

ITU-T: 3 Chairman or vice Chairman,

11 Report executive

TMF: BoD member, 2 Chairman

ICT & Vertical Industry

Mobile Services&Terminal

one M2M

Fixed BSS/OSS/CEM

NfV

Industry Contribution

Operations in 170+ countries; 150,000+ employees comprised of 150+ nationalities worldwide ; 30,000+ non-Chinese employees with 70%+ localization rate.

Huawei's global value chain allows fluid capability transfer across the globe, develops and retains talent in local countries, and creates jobs and economic opportunities.

R&D center

Huawei Headquarters

Technical support center

Accounting shared service center

Supply center & Hub

Training center

Bidding center

Argentina

Mauritius

Malaysia

Romania

China

India

Hungary

Brazil

Mexico

Netherlands

UAE

Bahrain

Germany

Globalized resource deployment and localized business operations

Toronto

Ottawa

Silicon Valley

Huawei Europe: Continued Local Commitment

Revenue: $ 5.23 B in 2014H1

Procurement amount: $ 3.4 B in 2013

7,700+ Employees, 850+ in R&D

2 Regional headquarters: Warsaw & Dusseldorf

43 legal entities for proximity to customers

17 R&D Sites

2 Regional Technical Assistance Centers (24x7)

8 Training Centers

6 Local Network Operation Centers

2 Logistic Centers

2 Outsourcing Factories

1 Spare Parts Center

166 Spare Parts Factories;

26 Logistic warehouse

Huawei Sweden Huawei Poland Huawei Italy Huawei Romania Huawei Germany Huawei France Huawei UK

……

Huawei Czech: One trustable partner

347 Czech employees

122M USD Revenue in 2013

134M USD Revenue in 2014 as forecast

Follower

Main Player

Leader

A trustworthy problem solver

A consultant for future development

An approachable leader driving the industry forward

Operational excellence and sustainable growth

Customers Industry

Strategic Vision: Maintain Leadership and The Best Partner

2233



Performance in 201311

Source: Informa, IDC, Gartner, SA, OVUM, Huawei MI

Internet consumption continues to grow.

More time on the Internet

× 3.2More Internet users

× 2

More ICT applications

× 4

More data and services are generated.

More data

× 20

More cloud services

× 10

More Internet traffic

× 6.7

Driving the development of the information super

highway.

More broadband connections

× 4

Faster broadband speed

× 10

More smart devices

× 5

20222012

Digital society drives the rapid increase of users and high-speed development of applications, traffic, and broadband

Source: The Global Information Technology Report 2013 by WEF

Digitization’s impact on GDP and jobs, 2011• Econometric analysis estimates that,

despite the unfavorable global

economic climate, digitization

provided a US$193 billion boost to

world economic output and created 6

million jobs globally in 2011.

Digitization has emerged as a key

driver and enabler of socioeconomic

benefits.

• Digitization creates jobs, with a 10

point increase in the digitization

score leading to a 1.02 percent drop

in the unemployment rate.

Digitization accelerates economic growth and facilitates job creation

Region

Africa

Commonwealth of Independent

States

East Asia and the Pacific

Eastern Europe

Latin America and the Caribbean

Middle East and North Africa

North America

South Asia

Western Europe

Total

8.3

11.8

55.8

7.0

27.0

16.5

25.3

9.4

31.5

192.6

618,699

340,820

2,370,241

159,015

636,737

377,772

167,650

1,117,753

213,578

6,002,266

Regional impact

GDP impact (US$

billions)

Number of jobs created

Key operator competition concerns:

1. Ubiquitous network with the best

experience

2. Integrated rich contents &

applications

3. Agile and efficient business

operations

Source: IDC, Gartner, Bain, Huawei

TelecomService

TelecomService

New ICT

New ICT

Content/

Internet service

Content/

Internet service

S/W &IT ServiceS/W &IT Service

Infra H/WInfra H/W

Device Device

Component Component

ICT Value Shifting to Content & Application

Content & Application

Access - Access + OTT Play

End user

Service platform

NetworkInfrastructure

User Asset

Network Asset

Via Terminals

Legacy core

service

Legacy core

service

Telco Service: Voice Data, Network: Core-centric DC-centric Telco operation: Network Asset Network Asset + User Asset OTTs have DC and User Resources, the boundary with carriers is becoming blurred

Various Carrier Business Models, Differentiated by User Asset + Network Asset

Big Data Analytics

Cloud Operating SystemArchitecture

app

app appapp

IT architecture based on cloud

computing and big data

Bandwidth and architecture driving

network development

Device: Smarter + Everywhere

Bandwidth

Device-Network-Cloud synergy creates context-aware user experience

PIPE is Fundamental for Business Transformation

2233



Performance in 201311

Information storage and processingCloud data center

Information transmissionNetwork infrastructure

Information presentationNetwork devices

Carrier business: Maintain leadershipBecome the best strategic partner for carriers and the industry leader

Consumer business: build brandBecome a world-leading smart device brand trusted by consumers

Enterprise business: steady growthBecome a major ICT infrastructure provider that supports digital restructuring for enterprise customers

Digital society Big data and big traffic

Focusing on the pipe strategy to lead in the digital era

Shipped 52 million units in 2013, up 62% YOY

Ranked No. 3 after Samsung and Apple

LTE: Deployed 110 commercial networks

in more than 100 capital cities and 9 financial centers

466 key LTE patents No.1 position globally

5G: Set up 5G innovation and research

centers in 9 countries Take the lead in researching air

interface links for 5G networks in Europe's METIS project

Plan to invest US$600 million over the next 5 years

Anticipate commercial deployment of 5G networks in 2020.

Launched the 400G core router 1 year ahead of industry peers

The only one of its kind deployed on a large scale

Deployed by 53 customers as of Dec. 2013

World-leading performance and reliability: consumes 1/8 of the power, occupies 1/6 of the area, and weighs 1/12 compared with products with the same capacity in the industry

The first in the industry to launch the 1T router line card.

Maintain the leadership position in core technologies

Mobile Broadband

Fixed Broadband

Smartphones

Launched the world's first service- and user-experience-centered agile network architecture and the world's first agile switch.

Enterprise business

Continuously make future-oriented investment to

build future-oriented technological advantages

MirrorsysAll-optical network

5G mobile communications

High-throughput computing

Content-aware network

MirrorSys ： Offer next-generation fully immersive user experience 5G mobile communications: Conduct research on 5G to continuously enhance wireless network capacity and application

scenarios All-optical network: Break the bottlenecks of transport networks and build limitless transport capacity Content-aware network: Build the next-generation content-aware and content-based-routing switching network High-throughput computing: Build a high-throughput computing platform for big data processing and analysis

Information generation Information transmission Information processing and storage

Beyond 2020 Ultra-NodeTM

US$600 million by 2018

Establishment of 5G Innovation Center (5GIC) in

UK

Collaboration with 20+ universities and Research

institutes Worldwide

1000 X

100 Billion

Capacity Required

Things Connected

10Gbps Peak Throughput

0 Waiting

Investment on 5G

Billion US$

$0.6B $0.7B$1.1B

$1.4B$1.8B

$2.3B$2.9B

$3.9B

$4.9B

$5.1B

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Distributed basestation SingleFAN All-IP network SingleRAN Cloud computing Optical Transport Network Single

strategy

400G DWDM Softcom 5G,

agile switch

Continue to invest over 10% of revenue into R&D, which enhances our

competitiveness while propelling the industry and advancing technologies.

Total R&D investment in the past decade amounted to US$24.9 billion (CNY151

billion).

No. 1 Chinese company with the largest number of patents in China; one of the

Top 50 patent holders in the US; one of the Top 15 patent holders in Europe.

Long-term investment in innovation

Huawei's goal : connectivity and broadband inclusion for all

Help develop local ICT talent

Help countries and regions join the digital community

Facilitate ICT knowledge transfer

Set up local ICT training centers or labs

Trained nearly 10,000 ICT students

Worked with over 70 universities and

training institutes worldwide

Worked with 23 countries to

implement projects

Established 45 ICT training centers

THANK YOUwww.huawei.com

Copyright©2014 Huawei Technologies Co., Ltd. All Rights Reserved.

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.

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