Security Level:

Huawei: present & future

January 2017

2

Huawei at a Glance

180,000Employees

1580,000 No. 72170+ No. 129R&D institute

and centers

R&D

employees

Interbrand's Top

100 Best Global

Brands

Countries Fortune Global

500

3

Globalized Resource Deployment, Localized Operations

Argentina

Mauritius

Malaysia

Romania

China

India

Hungary

Brazil

Mexico

The Netherlands

UAE

Bahrain

GermanyToronto

Ottawa

Silicon Valley

• Operations in 170+ countries; approximately 180,000+ employees comprising 160+ nationalities worldwide; 71% localization rate• Huawei's global value chain allows the smooth transfer of capabilities around the world, develops and retains talent in local countries, and creates jobs and

economic opportunities.

• Strengthen glocalized operations and ensure that local management teams shoulder operating responsibilities from end to end and have corresponding

decision-making authority.• Ensure that the global industry chain is grounded in win-win approaches and reciprocal obligations; be a responsible corporate citizen in the local community.

R&D center

Huawei headquarters

Technical support center

Accounting shared service center

Supply center

Training center

Solution center

4

Consumer Business

A brand loved by consumers

Carrier Business

Customers' best strategic partner

Enterprise Business

Enabler and preferred partner of

enterprise digital transformation

A Global Leader of ICT Solutions and Products

Information Distribution and Presentation Information Transmission Information Processing and Storage

Data center infrastructure

Plataformas de análisis de Big

data

Cloud services

Smartphones

MBB & home devices

Wearable devices

Vehicle telematics

Wireless networks

Fixed networks

Carrier software and

core networks

Enterprise networks

M2M connection

management platforms

Serving global carriersServing hundreds of

millions of consumersServing global enterprises and

industry customers

Focusing on Information Transmission, Storage, and Distribution to

Provide ICT Solutions and Services for Three Customer Groups

Professional services

5

Carrier Business: Consolidating Leadership in Established

Markets, Driving Carrier Digital Transformation

…

70%+ revenue from global top 50 carriers Consolidating leadership in established markets

Source: Dell'Oro, Infonetics, Ovum, HIS, Gartner

Growing presence in new markets and driving carrier

digital transformation

• Best 4K TV Service or Solution award by TV Connect for Huawei and

Ooredoo in 2016

• Best Telco Big Data Analytics Platform award for FusionInsight at Telco

Data Analytics Summit 2016

• Cloud Journey of the Year award by Datacenter Dynamics for the

Huawei–China Telecom Jiaxing Government Cloud

• Best Managed Service Innovation award for the OWS Cloud Platform

at Informa Managed Services World Congress 2016

• OSS ranked as a Challenger in Gartner's Magic Quadrant 2016

• RAN, IP router, WDM, broadband access, and IPTV

6

• FusionSphere Cloud OS named by Forrester as a

Strong Performer in Private Cloud Software Suites

• OceanStor system ranked as a Leader in Gartner's

2016 Magic Quadrant for General-Purpose Disk Arrays

• Deployed 290+ LTE industry networks – global leader

• No. 1 in market share growth rate for data center

switches; No. 2 in market share for Ethernet switches

and enterprise routers

• AnyOffice solution ranked as a Leader in Gartner's

Magic Quadrant for Enterprise Mobility Software in

China

Increasingly Recognized by Industry Customers

Source: Forrester, HIS, IDC, Gartner

400+ leading Internet companies

300+ financial services

institutions

220,000+km of highways &

railways

170+ Power companies

600+ renowned universities

& colleges

Enabler and

preferred partner of

enterprise digital

transformation

Governments and public

sectors in 140+countries and regions

7

Increasing global brand

awareness

81%

BrandZ Top 100 Most

Valuable Global Brands

No. 50

Smartphone retail market

share

No. 3

Interbrand's Top 100 Best

Global Brands

No. 72

2016 smartphone shipments: 139 million units, up

30% YoY

Smartphone shipments (millions)

3

20

32

52

75

108

2010 2011 2012 2013 2014 2015

20

16

H1

2016

139

Winning Consumer Loyalty and Building Brand Influence

8

Sustainable, Robust Growth

• Enterprise business: innovative solutions for digital

transformation delivered together with partners; profitable

and sustainable growth in key industries (e.g., smart

cities, energy, finance, transportation, and manufacturing)

• Consumer business: key breakthroughs in the global

high-end market, taking Huawei's brand influence to a

new level

• Carrier business: stronger position in network products

and services; video, cloud, and operations transformation

as strategic priorities; growing the industry and moving it

forward; higher working capital efficiency

USD billion

2012 2013

44

2014

3336

60

2015

75*

2016

Sales Revenue

* 2016 figure is unaudited forecast data.

Robust growth across all business segments,

thanks to balanced market presence

worldwide and commitment to strategic focus

9

• The Intelligent World will be powered by data devices, pipes, and clouds:

All things sensing, all things connected, all things intelligent.

• Devices will be the sensing organs of the Intelligent World; networks will connect them

together; clouds will be its digital brain.

Devices

Pipe

Cloud

Ubiquitous gateways to the

Intelligent World

Ubiquitous connections,

high bandwidth,

low latency

Digital brains,

evolving in real time

Next 20–30 Years: The World Will Become Intelligent

All things

ConnectedAll things

Sensing

All things

Intelligent

10

Next 10 Years: Connections Will Get Smarter,

Connectivity Will Become a Primary Resource

3G/4G/5G, FTTx, cloud, IoT

WWW, mobile Internet

Industry 4.0, big data, AI

Physical Digital Intelligent

• In 2025, the number of connections will top 100 billion, 5x more than 2015.

• In 2025, 75% of global homes will have access to broadband.Source: Huawei GIV 2016

11

• By 2025, there will be 40 billion personal smart devices, 5.6x more than 2015.

• By 2025, 90% of smart device users will be using personal assistants on intelligent phones.

Digital

World

Physical

World

Technology

Digitization of the physical world: everything connected, more intelligence, natural interaction between humanity and machine

Humanity

AI Human

Intelligence

Intelligent

Devices

Robotics

Next 10 Years: From Smartphones to Intelligent Phones

No More Learning to Use Devices: Devices Will Understand Us

Source: Huawei GIV 2016

12

• Focus on strategic opportunities and never waste strategic

resources on non-strategic areas

• Keep investing heavily (about 10% of annual revenue) in

R&D

• Make technological breakthroughs through perseverance,

dedication, and self-reflection

• 50,377 patents granted; a member of 360+ standards

organizations, industry alliances, and open source

communities; holding 300+ key positions; 49,000+

proposals

Long-term and Heavy Investment in R&D for Breakthroughs

6.6

0.91.2

1.6

2.1

2.7

3.8

4.8

5.2

2006 2007 2008 2009 2010 2011 2012 2013 2014

Total investment from 2005 to 2014:

over CNY190 billion

USD Billion

9.2

2015

13

Consumer Business: Providing High-end Stylish Devices and

Building a Brand Loved by Consumers and Partners

Huawei M series

Great audio and

video

Huawei X series

Great cross-over

product

Tablets

Smartphones

Wearables Smart Home

Entry-level products Star products Flagship products

Honor Play

Huawei Y-series

Honor 7, Honor 8

Huawei Nova series

Huawei Mate series:

premium users

Huawei P series:

trendsetters

MBB and

home

products

MBB M2M

Consumer Business

14

Continuous Innovation and Breakthroughs in IT Infrastructure

KunLun

World's first 32-socket x86 server

FusionStorage 6.0

SDN-driven all-converged cloud storage

OA

HPC

IOT

Hadoop

RDS (OLTP)

ADS (OLAP)

VM

Database

Interop Tokyo 2016, Grand Prix

+99.999%reliability

10M↑

TPMC

30%less TCO1

ST

8–32 socketsVertically scalable

architecture

RAS 2.0Highest level of reliability of

open platforms

Mature industryComprehensive migration

plan for midrange computers

Open ecosystemStable and reliableSuperior performance

Proprietary

technologiesConvergence of

block/file/object based storage

Industry leading4,096 nodes; exabyte-level

storage

HyperVisor/OpenStack/

Hadoop

Open and

compatibleElastic and

efficient

Convergent and

shared

Huawei: IT leader with over 10 years of technological expertise and innovation

15

Jointly innovate with customers and key partners to define roadmaps for products and solutions development, reinvent

business models, and build the industry ecosystem. The aim is to continually improve the competitiveness of products and

solutions and help customers achieve business success.

Customer/partner's role

• Location of joint innovation centers

• Marketing experts

• Test environment

• Marketing and channels

Huawei's role

• Global practice and experience sharing

• Market and solution R&D experts

• Facilities and equipment

• Solution development and verification

Joint Innovation with Global Leading Carriers and Key Partners

Leading products and solutions

Strategic Match

Topics

• 5G

• SDN/ NFV

• NB-IoT…

Concept

Design

Idea

Trial

16

Australia

• Universidad de Melbourne

• Universidad de Queensland

• Instituto Real de Tecnología de Melbourne

• Universidad Southern Cross

China

• Universidad Tsinghua

• Universidad Fudan

• Universidad Normal de Pekín

• Universidad de Xi'an Jiaotong

• Universidad Nacional Sun Yat-sen

• Universidad de Aeronáutica y Astronáutica de Pekín

• Universidad de Wuhan

• Universidad de Shanghái

Hongkong

• Universidad de Hong Kong

• Hong Kong Baptist University

Malasia

• Universidad de Malaya

• Universidad Putra Malaysiav

Rusia

•Universidad Estatal de San Petersburgo

Alemania

• Universidad de Stuttgart

Tailandia

• Universidad de Chulalongkorn

• Universidad de Mahidol

Sudáfrica

• Universidad deStellenbosch

UK

• Universidad Colegio de Londres

• La Escuela Imperial de Londres

• Universidad de Edimburgo

• Universidad de Newcastle

EEUU

• MIT

• Universidad de Tennessee

• Universidad de Nebraska-Lincoln

Canadá

• Universidad de Toronto

Holanda

• Universidad Erasmo de Róterdam

España

• Universidad de Valladolid

• Universidad de Burgos

• Universidad de Granada

• Universidad de Santiago de Compostela

• Universidad La Laguna

• Universidad Pais Vasco

Huawei in the universities

Brasil• Universidad de Mackenzie

17

Huawei references in Spanish Universities

Copyright©2016 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.

Thank You.