Huawei Corporate Presentation Building a Better Connected World
Huawei Corporate Presentation Building a Better Connected World. HUAWEI TECHNOLOGIES CO. , LTD. www. huawei. com
Today, Huawei is a leading ICT company Who is Huawei l A leading global ICT solutions provider l A Fortune Global 500 company, ranking 285 in 2014 l Interbrand Top l l 170, 000+ employees worldwide l 45% or 76, 000+ employees engaged in R&D l US$46. 5 B revenue in 2014 Serving 1/3 of the world's population Linked. In World's 100 Most In. Demand Employers 100 Best Global Brands Market Progress l Employees Business Areas l Carrier : 77% Huawei's revenue generated from the carrier network business is from world's top 50 carriers l Enterprise : serving more than 100 global top 500 companies l Consumer : raising the brand awareness to 65%
Globalized resource deployment and localized business operations Netherlands Toronto Germany Ottawa Hungary Romania Silicon Valley China Bahrain Mexico India UAE Malaysia Huawei Headquarters Accounting shared service center Brazil Bidding center Mauritius Supply center & Hub R&D center Training center Argentina Technical support center l l Operations in 170+ countries and regions; 170, 000+ employees comprised of 160+ nationalities worldwide ; 30, 000+ non. Chinese employees with 75%+ 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.
Achieve win-win outcomes with global partners through open collaboration Standards Joint innovation l l l Set up 28 joint innovation centers with carriers Cooperate with top universities in future technologies Collaborate with industry partners to develop joint solutions and strengthen cooperation on Industry 4. 0 and Io. T Channel l Over 280 tier-1 channel partners globally l Financing l Overseas banks provide 87% of all financing Member of 170+ standards organizations, 185 important positions Suppliers l Non-Chinese suppliers account for 82%, which are mainly from the US, Europe, Japan, and Korea
A better connected world Better connected Persons Better connected World Better connected Industry People Device 4 Billion 8 Billion New internet users Smart phones in use 100 B Connections By 2025 1. 7 GB Data consumed person each day 5 Content 13 Trillion Usage Mobile payments reach USD
Focusing on the pipe strategy to lead in the digital era Information storage and processing Cloud data center Digital society Big data and big traffic Information transmission Network infrastructure Information presentation Network devices Enterprise business: steady growth Become a leading ICT infrastructure provider that supports the upcoming industrial revolution for vertical industries Carrier business: Maintain leadership Become the best strategic partner for carriers in their future transformation Consumer business: build brand Become a top smart device brand preferred and trusted by consumers
Maintain the leadership position in core technologies Industry informatization Broadband l LTE: l l l 174 commercial networks in more than 100 capital cities and 9 financial centers, serving half of the LTE users 665 key LTE patents, Accounting for 25% in this industry 5 G: l l Smartphones l l Led 5 G standards and R&D, and launched the world's first 5 G testbed Wi. Fi: l l Proposed the "10 Gi. Fi" concept, and launched the world‘s first 10 Gi. Fi prototype based on nextgen architecture. l Deployed Solutions of Agile branch and Agile Data center by 500+ enterprise customers Launched SD-DC 2, Service-driven Distributed Cloud Data Center Ocean. Stor converged storage system……to build agile cloud business Launched the panoramic telepresence system to enable ultra-HD remote communication l Shipped 75 million units in 2014, up 45% YOY l Developed an in-house chip for fingerprint scanning and storage in the Huawei Mate 7 smartphone.
Long-term investment in innovation l Continue to invest over 10% of revenue into R&D. Total R&D investment in the past decade amounted to US$30. 7 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 10 patent holders in Europe. $6. 6 B $5. 1 B l Top 100 Global Innovators 2014 (by Thomson Reuters) $4. 9 B Innovation of applications l The Most Innovative Companies 2014 (by BCG) and products $3. 9 B l Innovation in fundamental technologies $2. 9 B $2. 3 B $0. 6 B $0. 7 B 2004 2005 $1. 1 B $1. 4 B $1. 8 B Strengthen fundamental research Open innovation 2006 2007 2008 2009 2010 2011 2012 2013 2014 Billion US$
Well-designed incentive mechanisms attract excellent talent from around the world Competitive compensation l. Engage global consulting firms in developing a competitive and nondiscriminatory compensation system. Unique long-term incentive mechanisms l. Employee Stock Ownership Plan (ESOP): involving 82, 471 Huawei employees (including active and retired employees) as of December 31, 2014. l. Time-based Unit Plan (TUP): a long-term incentive plan for employees under different legal frameworks, which covers Chinese and non-Chinese employees globally. Career development paths l. Two career development paths: managerial and technical paths. Encourage and coach excellent local employees to develop into mid- and senior-level managers.
Dedicated to bridging the digital divide Norway Japan Dedication and integrity Philippines We do whatever it takes to achieve network coverage in harsh conditions. Extreme temperatures, tsunamis, earthquakes, disease or war - we never walk away Africa
Seeds for the future Help develop local ICT talent Trained nearly 10, 000 ICT students Help countries and regions join the digital community Worked with 35 countries to implement projects Facilitate ICT knowledge transfer Worked with over 100 universities and training institutes worldwide Set up local ICT training centers or labs Established 45 ICT training centers
Huawei In Greece 2005, Huawei establish local office 2015, Huawei is the biggest telecom solution provider in Greek market 125 Employee, 80% Local Partners 30, Creating Job indirectly : 300 -500 2011 -2014, Accumulated mount of VAT, Operation Tax, Enterprise / Individual Tax and Enployee Insurance exceed 50 M Euro. Procurement 2011 -2014,Accumulated Procurement exceed 30 M Euro. …… HUAWEI TECHNOLOGIES CO. , LTD. Huawei proprietary. No spread without permission. Page 12
Huawei Provide E 2 E ICT solution, actively contribute in Greek ICT development Fixed Broadband-ADSL 1. 3 M subscribers 2006 3 G network 3 G USB Modem 2 G network project Greece first 40 G DWDM IMS-Syzefxis I 2007 2008 Metro Ethnet-Datacom project 2009 2010 Greece first IPMW network DWDM IPTV NGA/Rural BB 2013 2011 - 12 DSLAM Project MVNO Project Providing Fixed Broadband for 1/3 Greek Families Providing 3 G wireless coverage for 50% Population 2014 Greece first Femeto project 2 G/3 G/IPMW Smart Phones HUAWEI TECHNOLOGIES CO. , LTD. LTE DWDM project Huawei proprietary. No spread without permission. Page 13 n. Rural Project
Huawei support ICT modernization in Greece Participate ICT modernization projects l l Huawei cooperate with main Greek ICT company Rural Broadband (White Area) project, to provide broadband services to 500 K+ people& 5 K+ villages in rural area. In Greece, Huawei is willing to participate all ICT modernization project in public sector & provide leading-in-industry ICT solution, including National Broadband, Smart-Grid, Smart-Transportation, EEducation, etc. . HUAWEI TECHNOLOGIES CO. , LTD. Huawei proprietary. No spread without permission. Page 14
Huawei Logistics HUB Based on Huawei Europe supply center in Hungary, Huawei cooperate with COSCO, Piraeus Port, jointly establish Huawei Logistics HUB in Athens. 2013. 11, First pilot of Huawei Piraeus HUB transport finished; 2013. 12, Ceremony of Huawei Piraeus HUB transport been host by Huawei and PCT; 2014. 1, Second pilot delivered, pilot finished; 2014. 5, Sign frame contract of Piraeus HUB transport with COSCO; Prepare for Sea-Train transport; 2014. 6, Greek and Chinese PM visit PCT, and startup the first Train with Huawei goods deliver to Hungary. HUAWEI TECHNOLOGIES CO. , LTD. Huawei proprietary. No spread without permission. Page 15
Huawei Vision in Greece, continually contributing to local economy, being reliable corporate citizen l l l In next 3 years, Huawei employee will increase to 160, and increase localization rate; Enlarge local procurement, forecast amount is 100 M in next 5 years; Enlarge transport volume in PCT Logistics HUB; HUAWEI TECHNOLOGIES CO. , LTD. Education Cooperation ICT development More investment l l Provide advanced ICT solution, and competitive commercial offer, help Greek Gov. in ICT modernization; Sharing Huawei experiments in Global ICT market, establish Joint innovation team, discuss about further ICT dev strategy, e. g. , National Broadband. Huawei proprietary. No spread without permission. l Cooperate with university, provide 5 -10 scholarship every year, help Greek students learn ICT technology, also arrange visiting china and Huawei; Page 16
Thank you www. 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 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.
- Slides: 17