Security Level:

Corporate Presentation

February 2018

Security Level:

Bring digital to every person, home and organization for

a fully connected, intelligent world.

Vision and Mission

3

Contents

Company Overview 1

Industry Trends and Huawei Insights 2

Huawei's Business Strategy 3

4

Huawei at a Glance

180,000 Employees

14 80,000

No. 70 in 170+

No. 83 in the

R&D

institutes/labs/

centers

R&D employees

Interbrand's Top 100

Best Global Brands Countries

Fortune Global 500

5

Globalized Positioning, Localized Operations

R&D center

Huawei headquarters

Technical support center

Accounting shared service center

Supply center

Training center

Solution center

Argentina

Mauritius

Malaysia

Romania

China

India

Hungary

Brazil

Mexico

Poland

UAE

Bahrain

Germany Toronto

Ottawa

Silicon Valley

• Operations in 170+ countries; approximately 180,000+ employees of 160+ nationalities; 70% of staff hired locally

• Huawei's global business maximizes value by projecting local capabilities around the world. We develop and retain talent locally, which drives jobs and growth.

• Huawei is increasing its "glocalization", delegating more end-to-end business responsibility and authority to local teams.

• We aim to develop a healthy industry in which every player can succeed, and we pride ourselves on being a responsible local corporate citizen.

6

Consumer

Products & Services Iconic global technology brand

Carrier

Products & Services Best strategic partner for carriers

Enterprise

Products & Services Enabler and preferred partner

for digital transformation

A Global Leader in ICT Products and Solutions

Information Distribution & Presentation Information Transmission Information Processing & Storage

Data center infrastructure

Big data analytics

AI platforms

Global carriers Hundreds of millions of

consumers Global enterprises, governments,

and industries

ICT Solutions and Services for Three Customer Groups

Information Distribution & Presentation, Transmission, Processing &

Storage

Managed services and system integration

Cloud

Products & Services Cloud partner with reliable,

trusted, evolvable services

Cloud services

gPaaS

Cloud OS

Smartphones

MBB & home appliances

Wearables

Vehicle devices

Wireless networks

Fixed networks

Carrier software

Core networks

Enterprise networks

IoT connection

management platforms

7

Leader in established markets

• SDN/NFV

− Best Technology Enabler award at Mobile World Congress 2017

− Best Cloud & Carrier Service, Best New VNF Application, and other 5 awards at SDN NFV

World Congress 2017

− Most Successful Deployment of NFV award by Informa for Huawei and EE in 2017

• IoT

− Best IoT Innovation for Mobile Networks award by GSMA for Huawei's NB-IoT solution at

Mobile World Congress Shanghai 2017

− Best IoT Platform award for the OceanConnect IoT platform at IoT World Europe 2017

• Video

− Best Innovation in Cross-boundary Convergence and Best Mobile Video Innovation awards

by TV Connect for Huawei's Envision convergence video solution in 2017

− Red Dot Award: Communication Design for the Envision Multi-screen Application in 2017

• RAN, IP router, wavelength division, broadband access, IPTV

Carrier Business: Global Leader, Driving Carrier Digital Transformation

New markets:

Best strategic partner

for carriers

10+ 5G pre-commercial

networks

350+ NFV contracts

380+ SDN contracts

30+ CloudAIR commercial networks

500,000+ NB-IoT base stations

2 million+ NB-IoT devices in

commercial use

8

260+ Oil & Gas companies

300+ Financial institutes

220,000+ km of highways &

railways

170+ Power companies

200+ Safe City projects

1,000+ Manufacturing companies

Enterprise Business: Core Products Approved by Industry Customers

and Authoritative Analysts

120+ Smart City

projects

197 companies in Fortune Global 500

45 companies in Fortune Global 100

• Positioned as a Challenger in the 2017 Gartner Magic

Quadrant for Data Center Networking

• Fast growth in market share in data center switches: No. 3 in

the world, No. 1 in China by market share (Source: IDC)

• Storage: No.6 in global market share in Q1 2017; No.1 for

sales revenue, shipments, and shipped capacity in China

(Source: Gartner)

• Servers: No. 3 for global shipments in Q1 2017, up 19.7%

year on year; sales in Chinese market up 39.4% year on

year

• Positioned as a Challenger in the 2017 Gartner Magic

Quadrant for enterprise firewalls

• Largest market share in newly-emerging private cloud

markets in China; FusionInsight is China's best-performing

big data solution, ranked by Gartner in Magic Quadrant for

DMSA (Data Management Solutions for Analytics); ranked

first in the leader quadrant for e-government cloud services

in China; outstanding player in public cloud in China

(Sources: Forrester, IDC, and Gartner)

Enabler and

preferred partner of

enterprise digital

transformation

9

Increasing global brand awareness

86%

Innovative products Global smartphone shipments

Top 3 Source: IDC

Source: IPSOS

Mate10: Word's first AI-powered phone

iF Design Award 2018

2017

25%

2012

Consumer Business: A Brand Admired and Trusted by Consumers

Global Brand Awareness Now 86%

3

20 32

52

75

108

139

153

2010 2011 2012 2013 2014 2015 2016 2017

Smartphone

shipments

(millions)

10%+ Global smartphone market share

153 million units 2017 smartphone shipments

14.7% Top 3 in European market, and

growing fast

23%+ Market share in China, higher

than ever before

Sources: IDC, Huawei MI

10

Sustainable, Robust Growth

US$ billion

2012 2013

46.7

2014

35.4 39.3

61.3

2015

75.1

2016

Sales Revenue

Note: Unaudited result for 2017

~92

2017

• Carrier business: Working with customers to explore new models

of network development – shifting from investment-driven to

value-driven, aiming for new business growth.

• Enterprise business: Accelerating digital transformation for

companies around the world. Innovative products and solutions

for cloud computing, enterprise campus, data center, and IoT.

Widespread uptake in a range of industries: smart city, safe city,

energy, finance, transport, and manufacturing.

• Consumer business: Key breakthroughs in the global high-end

market, taking Huawei's brand to a new level.

• Huawei Cloud: 100+ services, 50+ complete solutions, including

manufacturing, enterprise intelligence, SAP, high-performance

computing, and IoT.

Robust growth across all business segments,

thanks to balanced global presence and

strategic focus

11

World-Wide Recognition

No. 10 in the 50 Smartest

Companies 2016 by MIT

Technology Review

No.70 in Interbrand's

Top 100 Best Global

Brands 2017

LinkedIn China's

Most In-Demand

Employers 2017

Top 10 in the 2017 EU

Industrial R&D

Investment Scoreboard

12

Drivers Behind Continuous Growth

Sustained investment

in R&D to drive breakthroughs

Strategic direction 30 years of sustained focus on

Pipe Strategy: ICT infrastructure

Value-driven system

that shares value to maximize

value creation

Core Values

1. Stay customer-centric

Creating value for customers is the only way for Huawei to

guarantee its value. Our success depends on our customers'

success.

2. Inspire dedication

A reasonable, effective value assessment and sharing system

inspires employees to create greater value for the company.

3. Persevere

Customer expectations are rising, and our industry is evolving.

Whether or not we can continue to survive depends on our

ability to persevere with long-term focus.

4. Grow by reflection

Reflection leads to continuous improvement, prepares us for

external challenges, and prevents inaction.

Huawei Core Values

13

Contents

Company Overview 1

Industry Trends and Huawei Insights 2

Huawei's Business Strategy 3

14

The Fourth Industrial Revolution Is Here

1st 2nd 3rd

Industrial production

powered by a new resource

Steel, rail transport, etc.

Mass production

Steel, oil, internal

combustion engine

Automated production

Communications, Internet,

personal computers

Intelligent production

AI, IoT, bioscience integrated

into human society

Steam engine Electricity Information technology Intelligent technology

4th Industrial Revolution

15

We Are Entering an Intelligent World

All Things Sensing All Things Connected All Things Intelligent Sensing the physical world,

mapping it to digital signals Data goes online to power machine intelligence Big data and AI power new applications

ICT infrastructure will be the foundation of the intelligent world

16

The Intelligent World Will Profoundly Affect Every Person,

Home, and Organization

• Helping special people live a normal life: Guide

helmets for the visually impaired

• Helping people acquire special capabilities:

Multi-language communication, AI cameras

• 90% of smart device users will use intelligent

personal assistants

• At-home services: Healthcare robots,

education robots

• Home everywhere: Holographic

communication, smart home

• 12% of homes will use intelligent service robots

• Personalization at scale: Customized Harley-

Davidson manufacturing

• Smart government: Safe City, smart government

services

• 86% of enterprises will use AI

Source Huawei Global Industry Vision 2025

Homes Organizations People

17

Critical Moment in Digital Transformation:

ICT Is Becoming a General Purpose Technology

Currently, the industry lifecycle of digitization is entering to a new phase, in which every industry goes digital.

All enterprises face the same problem: How can they adapt and flourish as their industry goes digital?

As technology continues to advance, technological changes may become more frequent and industry lifecycles shorter

1780 1845 1896 1945 1985 2040? 2007–2011

1. Steam engines/ Textiles

2. Internal

combustion

engines/ Railways

3. Electrification/

Automobiles

4. Oil/ Airplanes

5. Digitization/ ICT

Next 30 years

Industry lifecycles

Watt steam engine

Spinning Jenny

18

Higher-value ICT: From Support to Decision-Making

x100

x1000

x10000

x10

Business Value

Years since

adoption 40 years 20 years 5–10 years

Support

Operations

Decision-

Making Low-level

High-level

Front Desk

Office… UC&C…

Version Control

Production Monitoring

CRM, ERP

Lights-out Manufacturing

Autonomous Logistics

UAV Delivery

Tactical Planning

Branding Strategy

Risk management

Financial Diagnostics

ICT is becoming the brain of a digital enterprise.

AI enables digital transformation and intelligent operations.

19

Business Mindset Technology

Cloud 1.0: Born in the Cloud

Internet companies led the first iteration

Cloud 2.0: Growing with Cloud Rise of industry clouds: Companies drive cloud

Intelligent

Manufacturing Intelligent Grid

Intelligent

Medicine

Intelligent

Transport Intelligent X

• The next 3 to 5 years will be a critical

period for enterprises migrating to the

cloud.

• In the next decade, more and more

industries and enterprises will "grow with

cloud" as they adopt cloud technology.

Cloud computing will become a basic

technology for every industry in the era of

Cloud 2.0.

• By 2025, all enterprise IT solutions will be

cloud-based, and 85% of enterprise

applications will be on the cloud.

• Core enterprise applications, AI and IoT

will be the major drivers for customers

migrating to the public could in Cloud 2.0.

Next 10 Years: Companies Will Be the Primary Users of Cloud

20

Work, health, entertainment, shopping, communication, payments…

ICT infrastructure: faster,

higher bandwidth

Scenario-specific services:

instant, on-demand

Real-time content: fast

response & sharing

Smart devices: multi-screen,

multi-mode

ROADS: New Standard for User Experience in Every Industry

Real-time On-demand

All-online

DIY Social

21

Connectivity + Cloud: Dual Drivers of Digital Transformation

Upgrading Operations

Monetization of Technologies

Open

Secure

Intelligent Connectivity Cloud

• Cloud + Connectivity & cloud-network

synergy: All things connecting to the cloud,

cloud-native operations, cloud-cloud

interconnection.

• Edge computing & on-device intelligence:

The total compute power in smart devices

is 12 times greater than all the data centers

in the world.

• Cloud services: Intelligent upgrading of

various industries driven by cloud

computing, big data and AI.

22

Personal Devices: A New Round of Innovation Is Coming…

After 2019

Intelligent phones

Integrating physical +

digital 1983

First mobile

phones

1995

Feature phones:

Voice + text

Digit

2007

Smartphones:

App-based

services

Analog Mobile Internet Smart Internet

Two major innovations: Active sensing of the physical world; interactive engagement and proactive services

AI and natural interaction transform user experience

AI Physical

world

Natural interaction

Brain wave

Digital

world

Touch

Voice

Visual Cognition Sensing

VR/AR

Mouse

New technologies drive transformative changes

Communication

User experience

Camera

Battery Chips

Design ID

AI

23

Home surveillance

Assuring family security

Expert devices

Monitoring our health 24/7

Fire and gas alarms

Preventing accidents

Intelligent switches

Better appliance use

4K/ VR/ Games

Improving entertainment

Remote management (applications)

Full, intelligent network coverage

Intelligent sensing & services

Devices communicate with each

other; AI-human interaction

Intelligent

Interaction

Intelligent

Connections

Intelligent Home

Services

Intelligent Connections, Interaction, and Sensing Enable

Intelligent Home Services

Intelligent

gateways

24

Global digital

economy in 2025 US$23 trillion 6.7x ROI in ICT vs. other sectors

Digital Economy Worth US$23 Trillion by 2025

Returns on ICT Investment 6.7x Higher Than Other Sectors

Digital

Assets

Digital

Spillover

The internal digital spillover The horizontal digital spillover The vertical digital spillover

Amplify the initial gains received

from technology investment by

leveraging it across different

departments in the company.

Innovation by one company is

emulated by others, leading to

productivity gains across a

sector.

Productivity

Gains

Upstream

Industry

Technology

Provider

Downstream

Industry

End User

• UPS: Vehicle tracking ->

Better route planning ->

Cost savings

• Germany: Industry 4.0

boosting productivity in

manufacturing enterprises

• Broadband China ->

Mobile payment ->

Cashless society

Design

Market Manu-

facture

2005 2015 2025

Digital economy Traditional economy

+Intelligence

Global GDP

Sources: Oxford Economics, Huawei

25

National Digital Economy Strategies

• GDP: 1% ↑ (for every 20% increase in ICT

investment)

• Productivity: 20% ↑ (by 2025)

• Connected devices: 100 billion (2025)

• ICT innovation drives inclusive growth and

sustainable development.

ICT Enables Transformation into Digital Economy

Sources: Boston Consulting Group, Huawei GCI

170 countries have launched national ICT

development plans

Industry 4.0 Internet Plus Advanced Manufacturing 2.0

Singapore Smart Nation Digital Canada 150 Smart Digital Malaysia

Nigeria National

Broadband Strategy

Colombia Live Digital Connected Argentina

Source: ITU

26

Accelerated Digital Transformation

Digitization High

Low

Early stage Fast transition Advanced

Healthcare

Transport

OTT Media

Banking

Retail

Agriculture Construction Oil & Gas

Electric power

Automobile

Machine

Food & Beverage

Chemical

Mining &

Steel

Communications

Education

• 64% of enterprises are already

exploring and trying digital

transformation.

• 67% of CEOs in 2,000 multinational

companies have set digitization at

the center of their corporate

strategy.

• Digital transformation is an

imperative for all industries.

（Source: IDC）

(Source: Gartner）

Source: Huawei MI, ABB, Goldman Sachs, CGI

27

Emerging Technologies Bring New Challenges to Cyber Security

Opportunities Challenges Emerging Technologies

Cloud

computing

Mobile networks and

sensors create a high-

density network of

connections

Larger attack surface, more

vulnerabilities

Cloud technology enables

resource sharing, pushes

business platforms from

closed to open

Increasingly blurred

traditional boundaries

AI and big data deepen the

mining of value from

information

Increased risk of data leaks Big data

IoT

28

Contents

Company Overview 1

Industry Trends and Huawei Insights 2

Huawei's Business Strategy 3

29

Creating more connections

Overall Business Strategy

Intelligent devices

ICT Infrastructure

ICT Infrastructure + Intelligent Devices Enable Digital Transformation

• Bringing connectivity to more

people, homes, and industries

• Bringing general-purpose

connectivity technologies to more

industries

Boosting broadband development (premium video experience)

Networks and ICT infrastructure for a

premium video experience:

• Video as a basic carrier service (4K and

virtual reality)

• Leading video-driven industry digital

transformation

Developing open, trusted cloud platforms

• All-Cloud ICT infrastructure

• Driving industry cloudification with an open,

hybrid cloud architecture

• Preferred partner for business, delivering open,

trusted public cloud services

Building portals for an inspired user

experience

• Chip-device-cloud synergy

• AI services

• An inspired user experience in all scenarios

30

• Customer-centric, ROADS experience: Digital products, fast TTM via

service design and network orchestration

• User insights & comprehensive experience management raise user value

over the service lifecycle

• Digital technologies boost efficiency based on customers' existing

processes: Faster network roll-out, higher resource utilization

• Visualized, automated, intelligent O&M and precise network management

help improve speed and quality, and enable risk prediction and mitigation

Carrier Business Strategy:

Break Down Boundaries, Enable Carrier Success, Embrace an

Intelligent World

Build a fully connected, intelligent world

Better Business

Growth Better Connection

Better

Experience

Vid

eo

2C

Clo

ud

-netw

ork

syn

erg

y

po

we

rs B

2B

All-

Clo

ud

ne

two

rk

IoT 5G Agile digital

operations

Openness Collaboration Shared success

2H

• Carriers are expanding their services, and delivering better services to

individuals, homes and enterprises. Huawei can help carriers use their

strengths in connectivity, maximize their network assets and develop new

services like video, aiming to achieve new growth.

Better business growth: Deep digitization for business

breakthroughs

Better connection: More connections, more data, 5G and

cloud-network synergy for industry digitization

• 5G: Ready for commercial network rollout; catalyst for digital transformation

• All-Cloud networks: Becoming a reality

• IoT: More connections, creating value beyond connectivity

• B2B powered by cloud-network synergy: Cloud services drive use of

network, network enables cloud, synergy drives B2B success

Better Experience: Agile business, efficient and intelligent O&M

Carrier Business

One-stop ICT solutions, products, and services

powered by cloud-pipe-device synergy

31

Video Powers New Growth for Carriers

Challenges of video Video as a basic service

200

million

IPTV

users

84

250+

140m

190m

Users of video on

fixed devices

~2015 2017 Q2 ~2015 2017 Q2 Mobile video

packages launched

1.4 billion

Mobile video

users

Global video services 2017 3 scenarios

5 specialist capabilities

Video on fixed

devices Mobile video Video everywhere

New growth powered by video

• High-quality E2E networks that deliver inspired video

experience

• Business consulting on video

• Network consulting on video

• Operations consulting on integrated video platforms

• Bridging the gap between carriers and content providers to

make content acquisition less costly and easier for carriers

4K premium

experience drives

revenue and

broadband

purchases: double

win for carriers

Multi-bitrate on-

demand video:

Adjusts from 360P to

1080P depending on

the scenario

Seamless

integration of video

services on fixed

and mobile devices

delivers premium

experience to users

Network: Video

experience affected by

network quality; high

cost of network roll-out

Operations: Hard to

manage user experience;

inefficient O&M

Business: Uncompetitive offerings;

hard to identify high-value

customers; limited,

ineffective marketing

channels

Ecosystem: Lack of

complete ecosystem;

lack of skills required to

work with ecosystem

partners

Carrier Business

32

Opportunities +

Challenges

1.4bn people without a

cellphone

4bn people have no

access to Internet

1bn households without

Internet connection

Targeted Investment: More Revenue, Higher Efficiency,

Unlocking Consumer Mobility Value

Targeted investment drives revenue, efficiency, and faster payback

Spectrum

Utilization

Precise Site

Rollout

Subscriber

Management

Digital

Services

Maximize spectrum

assets

Dynamic, multi-

standard spectrum

sharing;

Multiple channels

and sectors >

larger capacity;

TCO savings.

Faster ROI via

targeted network

roll-out

Range of options

for various site

requirements;

Innovative 5-Star

solutions to shorten

payback period;

Indoor networks:

Better experience,

lower OPEX.

Mine user value to

raise ARPU

Expand mobile

broadband user

base, skew user

base toward

value customers;

Identify user

values and

conduct precision

marketing;

Ensure best

experience for

high-value users.

Better user loyalty,

new sales growth

Unique carrier

strengths can

deliver integrated

industry services

and digital financial

services;

Innovative video

and ring back tone

services, seamless

integration of video

into other services.

Spectrum

Site

deployment

ROI

> 6 months TTM

> 50% failure rate

> 50% facility cost

3–5 times more

expensive

Payback period

> 10 years

Smart, Green

Equipment

Cost savings and

intelligent O&M

Low diesel/

electricity use;

low rent;

minimum

transmissions; no

manual O&M;

anti-theft

technology;

Digital

management

platform to

continuously

manage OPEX.

Carrier Business

33

Premium Home Broadband Drives B2H Success

Coverage

Broadband

25M 300M 1G@2025

China

Broadband

18%

2007

52%

2016

Source: ITU

Experience

Network Rollout

<3.57 >40%

>7.2 years >1000$

U-vMOS video

experience

of users complain

about Wi-Fi quality

Payback period Cost of fiber

connection per

household

Experience Drives Business

Network Construction Driven by Value

Connection

Experience

Operations

Experience

Service

Experience

Efficient

Investment

Efficient Network

Rollout

Efficient

Operations

Better connection

experience via home

network management

and maintenance

300M Wi-Fi@Home

Data pipes

operations platforms,

improving the

operations experience

Operations platform +

experience management

Process optimization

for a better service

experience

Business, network, and

operations consulting

services

Shortening payback

period

• Value-driven

investment

• Targeted marketing

• Precise planning

Lower E2E costs

• Maximizing site resources

• Maximizing line resources

• Maximizing spectrum

• Maximizing partnerships

Faster growth in

broadband user base

• Number allocation map

• Lightweight number

allocation system

• Applications for operation &

installation

Carrier Business

Continued Growth 2 Challenges Premium Home Broadband Drives

Carrier Success

34

All cloud network architecture: SoftCOM Phased introduction

Turning All-Cloud Networks into Reality

• Progress: As of Q3 2017, over 260 NFV/300 SDN networks have been/are

being constructed worldwide.

• Goal: Dynamic, programmable, intelligent, automated DC-centric networks

that support 5G (e.g. network slicing)

• Scenario-specific cloud solutions, from core to edge: CloudCore, Cloud

Edge, CloudRAN, CloudFAN, CloudCampus, CloudAIR, etc.

• Huawei focuses on IaaS, enables PaaS, and integrates SaaS services

for specific cloud scenarios

• IaaS: Distributed cloud ICT infrastructure (networks + DCs)

• PaaS: FusionStage distributed PaaS platform, FusionInsight big data

platform

• SaaS: Telecom cloud, private cloud, industry cloud, hybrid cloud; drawing

in ecosystem partners

• Services: Planning, integration, and verification services help Huawei

customers plan their All-Cloud network architecture

Ultimate efficiency, inspired experience, compelling services

CloudRAN Cloud AIR 2.0 CloudCore

TelcoOS

Cloud

Services

Cloud

EDGE

CPE

Individual

Family

Enterprise

ONT CloudFAN

Cloud

Campus Edge Cloud

Operation Cloud

CloudCore/

Integrated

Telecom Cloud

Metro

Aggregation

Network

Backbone

Network &

DC Network

Carrier Business

35

Best 5G Solutions for Carriers

• 5G's impact will be profound in every industry. This is

a major commercial opportunity for telecom carriers.

• The move to 5G begins now. Preparation is the key to

success.

• Huawei is committed to supporting carriers in their

development of 5G: Capacity building in technology/

architecture/ applications/ ecosystem, plus end-to-end

solutions for wireless/ bearer/ core networks. We help

carriers deliver the best 5G services.

5G Is Now

Innovative Technologies

Cloud Architecture

Showcase Applications

Diverse

Ecosystem

End-to-end

Solutions

• Broadest baseband support: all 5G bands, plus 2/3/4/5G

multi-RAT modules

• DUDe, 10 times improvement in experience

• Massive MIMO solution ready for deployment

• All Cloud supports 5G: CloudAIR

for air interfaces

• Cloud core + CUPS for smooth

evolution to 5G

• Intelligent cloud bearer networks:

X-Haul

• Showcase 5G applications: Huawei X Labs

published a white paper on the Top Ten 5G

Use Cases

• Device & Pipe industry

alliance

• 5G network slicing alliance

• Contributor to 3GPP

standards

• Industry's most

comprehensive

portfolio of 5G products

and solutions: wireless,

bearer network, core

network, devices, chips

Carrier Business

36

Government

Cloud-Network Synergy Powers B2B

Finance

Transport

Manufacturing

Energy

Telecom

Agile Private Line

Cloud delivers on B2B customers' needs

Cloud Campus Communication

as a Service IoT Video

Connection on Cloud

Carrier

Cloud Cloud

Resale

Others

Computing Storage Network Security

Agile private line services, excellent user experience

• First, carriers should cloudify their connectivity services: Cloud Campus,

enterprise communications, IoT, video, etc.

• Then attract industry ISVs and partners deliver cloud services.

Sustainable B2B services: From reseller to service provider

Cloud offers a single portal & platform for B2B services

• The digital transformation of industries is creating new opportunities in the

enterprise market. Carriers should exploit their cloud-network strengths to

develop and deliver their own enterprise services. Agile services with a

good user experience will help government and enterprise customers to

transform.

• Cloud connection services for enterprises will help millions of enterprises

migrate to the cloud with fast, reliable connections.

• An agile update of traditional private line services: Responsive, on-demand

services that respond to the new needs of businesses, and represent a key

competitive advantage for carriers.

Carrier Business

37

Connectivity and Beyond: IoT as a Service

Security: 3 technologies + 1 management platform

Network

Infrastructure Ubiquitous connectivity

Operations Experience management

for IoT

Ecosystem Open to all

More connections Beyond connections

…

Cloud Big data Service

Huawei: More connections, beyond connections

• More connections: Carriers can attract more IoT connections by

providing a network that supports multiple scenarios.

• Beyond connections: Carriers go beyond connection services to

new business models – service provider, and data operations. This

will help them share in the full value of their connections.

Challenges faced by customers

• How to quickly expand the number of connections.

• How to increase the value of IoT services.

Carrier Business

Solutions: 4 capabilities for carrier IoT success

• Infrastructure: Supporting wide range of access technologies to

meet the needs of different industries.

• Operations: Better experience on IoT networks, efficient O&M.

• Ecosystem: Comprehensive ecosystem development programs

help attract more partners, which enable carriers to serve more

industries.

• Security: "3T+1M" security solutions offer solid protection for IoT

networks.

38

Agile

Business

Digital Operations

• Customer journey: Consistent

customer experience across

channels

Digital O&M

Digital technologies boost efficiency

based on customers' existing

processes

Customer Experience Management

Experience management

across all services enables

inspired experience for the

digital lifestyle

Agile Digital Operations: Business Agility, Better Experience, Efficient

Operations

No clarity on where to invest

Long payback periods • Fast TTM: Digital products and

services come online fast; services

to-order

Experience management

across all services,

efficient digital operations

Insight-driven product

design; carrier-centric digital

services ecosystem

All-online, automated, intelligent; better

quality + efficiency; network fault prediction

and intervention

Planning and roll-out slow

Long TTM

Inefficient O&M;

Poor user experience

Innovation is expensive

Development of new

services is slow

Better

Experience

Efficient

Operations

Carrier Business

Digital is a must

39

Huawei enables digital transformation and business success

Platform ＋ Ecosystem

Government &

Public Utilities Manufacturing Transport Energy Finance

Enterprise Business:

Leading New ICT, The Road to Digital Transformation

A platform for platforms Fostering ecosystem growth

Enterprise Business

Open, flexible, secure ICT infrastructure platform with

device-pipe-cloud synergy Sharing innovation, marketing, and service capabilities

with global partners to achieve shared success

40

New ICT Architecture, Driving Industry Digitization

User

devices

Industry

devices

Networks

IT system Devices

Real-time business

platform

Big data analytics

platform

Offline

analysis

Decision-

making

support

Online

production

Real-time

collaboration

MES PLM ERP

Cloud

Pipe

Device

New ICT architecture with cloud-pipe-device synergy powers in-depth integration of

production systems and ICT technologies.

IT system for future digital enterprises ICT system: End-to-end restructuring

and innovation

IoT Gateway

SDN 5G

Cloud + Big Data

Enterprise Business

41

Products and Solutions that Stand Out From the Crowd

Leading products

Fiber-optical

transmission Switches Storage

Global market share Sales revenue in Q1

2017 in China

(Source: Gartner)

Global revenue

growth rate in 2016

(Source: IDC)

…

No.1 No.1 No.1

Leading solutions

…

Interop Tokyo 2017 Gartner

Magic Quadrant 2017 IDC 2017

Best of Show Award Challenger Main player

Converged

campus Data center

networks IoT solutions

Architecture Chipsets Algorithms

Enterprise Business

Core

capabilities

42

Open Ecosystem

New ICT, Delivering Self-sustaining Growth for Smart City

End-to-end ICT

Support

Cloud data center 1

cloud

2

networks Metro area network Metro IoT network

Smart

applications

3

platforms City operations platform

…

Economy Energy indicators … City dashboard

Big data platform

(data sharing, integration &

management)

ICT application enabling platform

(ICP, IoT platform, eSDKs…)

Enterprise Business

Safe City Smart

campus

Smart

community

Smart

government Smart transport

Operations

center

Decision

center

Command

center

43

Smart City: Transforming Yanbu (Saudi Arabia) into a City of

Smart Industry Solutions: Cloud data center, IoT, big data platform

Features

City infrastructure: Broadband, cloud computing

Municipal applications: Public safety, smart public services,

environmental protection

City management platforms

Strengths

Capacity to deliver whole-system architecture: 4-step service

development plan

Huawei + partners: ICT infrastructure + application ecosystem

Customer Value

Business investment

16% 30% Municipal lighting costs Road maintenance costs

20%

Enterprise Business

44

New ICT, Making Cities Safer

Converged

Command

Comprehensive

Protection

Rapid Response

Fast Resolution

Multi-channel

incident reporting

Multi-media

converged comms.

Visual command

Cross-department

collaboration

Smart

Surveillance

Network access

for all scenarios

All-intelligent

Video cloud with

access levels

Emergency

Communications

Mobile police

system

Trunking

Cloud Data

Center

Resource

sharing Service

integration

Cloud

applications

Road Safety

Road cameras

E-police

Smart

checkpoints

Police Big Data

Data mining

Research &

decision-making

Enterprise Business

45

Solutions: Converged command, emergency communications,

video surveillance

Safe City: Reducing Kenya's Crime Rate by 46%

Features

Converged command: Seamless integration of video, voice, and data across

terminals; efficient cross-agency collaboration

Blanket CCTV coverage: CCTV coverage of entire city using a range of

network access technologies

Intelligent analytics platform: Video abstracts, license plate recognition, etc.

Strengths

First converged command system with video and voice worldwide

Advanced sensors, analytics, and alarms for total security and incident

prevention

Customer Value

Resolution of theft cases

1 day

Assault of a police officer

Time to arrest:

4 days

Crime rate

46%

Enterprise Business

46

New ICT, Fueling Digital Banking Transformation

Reshaping

Services

Reshaping Data

Reshaping

Platforms

e-Banking Mobile banking Telephone

banking

Remote banking Bank branch Mobile marketing

e-Channel Front End

System ESB

Core

Accounting BI & MIS

FusionInsight

EDW/ ODS Cloud Manger:

ManageOne

Servers Storage Network

Cloud OS: FusionSphere

Application Platform (PaaS: FusionStage)

Video Collaboration Platform Mobile Security Platform Call Center

Ubiquitous,

convenient

services

Financial Big Data Financial Cloud

Enterprise Business

47

Finance: Helping China Pacific Insurance Boost Efficiency

Solution: FusionInsight

Features

High concurrency, fast data extraction (seconds)

Distributed computing, massive storage

Flexible combination of labels

Strengths

Fast query, statistics, data visualizations, and data extraction

using Spark SQL, Solr on Hbase

Petabyte-level big data storage platform

Distributed architecture supports high levels of concurrency

Customer Value

Data extraction

reduced to

Query parameters

increased to

Concurrent processing

(no. of users)

Seconds 70+ 390+

Enterprise Business

48

New ICT, Building Digital Urban Rail

Trains

Smart Applications

1 Bearer Network

CBTC

1 Cloud Platform

Computing Storage Security Cloud Computing Big Data

Reshaping

Services

Reshaping

Platforms

Reshaping

Networks

PIS Cloud Trunking CCTV Cloud

eLTE

IP MPLS/ Enhanced MSTP

eLTE

In-vehicle

terminals

In-vehicle

cameras

In-vehicle PIS LTE handsets

Enterprise Business

49

New ICT, Building Smart Airports

Integrated IT platform

Converged SDN core network

Access network: Converged fixed + mobile access

Scheduling Security

Integrated

communications

platform

Voice Video Data Location IoT

Airport Cloud Big Data

Enabling smart airport services Resource sharing, smart synergy ICT

infrastructure

integrated

end-to-end

Visualized Operations Big Data for Travel Services Intelligent Security

Enterprise Business

50

Transport: A Data Center in the Desert for Dubai International Airport

Huawei Prefabricated Modular Data Center Solution

Features

Prefabricated containerized data center

Pre-integrated before shipment

Strengths

Huawei NetEco system provides precise control and liquid

cooling to cope with high temperatures (+50°C) in Dubai

99.98% uptime

Works with ecosystem partners to provide end-to-end

services, including consulting and integration

Customer Value

containers Traditional data

center building 23

Dubai International Airport data center PUE (power consumption)

30%

Time for delivery

months 9

Enterprise Business

51

Power grid cloud Power grid

communication network Power grid IoT

Operations Management Marketing

SCADA, EMS ERP Call center

New ICT, Building a Better Connected Smart Grid

Full coverage of

network Fixed-mobile convergence

Real-time

Accurate

Information &

Resource sharing Resource sharing via

cloud

Streamlined management

Collaboration Cross-department

collaboration platform

Comprehensive

architecture

CCTV

PT/CT

DTU/FTU/TTIU

Meters

Generation

Distribution

Appliances

Transmission

Protective relays

Temperature Pressure

Air conditioners

Enterprise Business

52

Power: Helping a Laos Utility Company Achieve Digital Transformation

Power Grid IoT Solution

Features

Integrated solution for distribution network & user metering

Value-add with fiber optic cable built into power lines

Fast location of network faults

Strengths

Maximized network value: Single network supports

automation, AMI, and value-added business

Service planning consultancy for value-added business like

FTTH and enterprise private lines

Customer Value

Line loss

30%

Commercial revenues Fault location following outage

30minutes 1minute 15%

Enterprise Business

53

New ICT, Generating New Value in Every Phase of the Smart

Industry Lifecycle

Huawei works with leading carriers, industry alliances, global partners, and solution partners to support end users, develop new business

models, and generate commercial value. Ecosystem

Better Connected Intelligent Industry Concepts

Technologies Cloud Computing IoT Enterprise Wireless

• Agile design tools (CAD,

CAE, O&M)

• Intelligent digital plant

(OneAir visible production,

intelligent storage, remote

diagnosis, AGV)

• Industrial Backhaul

Connected Vehicle Agile Design Agile Manufacturing Predictive Maintenance Logistics & Retail

• In-vehicle information (Wi-

Fi)

• IoT platforms, applications

(fleet management, vehicle

leasing, car pooling)

• For vehicles

• For elevators

• Intelligent logistics

• Intelligent logistics campus

(OneAir, showcase project

with DHL, NB-IoT cold

chain)

• Intelligent mall & retail Applications

Huawei Intelligent Manufacturing Solutions

Enterprise Business

54

Manufacturing: Cloud Data Center Helps Dongfeng to Transform Services

Huawei Cloud Data Center Solution

Features

Data center infrastructure

FusionSphere cloud operating system

ManageOne cloud management platform

Strengths

Virtual data center (VDC) services could match Dongfeng's

organizational needs and support higher efficiency

Single management system for industrial CCTV & plant automation

enable response to new needs in minutes

End-to-end security, covering users, networks, data, and cloud

platforms

Customer Value

IT costs

30%

Subsidiaries connected to the cloud DC

15+

Enterprise Business

55

Chip-Device-Cloud Synergy, Building Competitive Advantage in Mobile AI

Consumer Business

Mobile AI Natural interaction &

Smart services

Intelligent

Sensing

Fine

Cognition

Security

System

Energy

System

Sees & understands Hears & understands

Dual cameras Smart microphone

Multi-cameras

Learning, understanding, decision-making

(device-cloud synergy enables situational

intelligence, user profiling, intelligent

recommendations)

Intelligent management

of energy and chips

Chip-device-cloud

Three-layer data protection

56

Smartphones

Huawei Nova

(Fashion) Huawei P Series

(Lifestyle) Huawei Mate

(Flagship)

Huawei Y Series

(Value)

M Series

Inspired video

experience

T Series

Utility & Quality

Huawei Q Series Routers

Robust Wi-Fi coverage

The preferred

partner of top

car makers

Huawei Mobile

WiFi Prime

1Gbit/s

Huawei 4G LTE Router

Strong wireless coverage

Porsche Design x

Huawei Smart Watch

High-end & Elegant

B3 Talkband

Business Elite

Other

products MateBook E

Lifestyle + Business

MateBook X/D

Premium Business

Huawei: An Iconic Global Technology Brand

Tablets Wearables Smart Home Mobile Broadband In-vehicle

Modules PC Series

Business Lifestyle Fashion Utility

Consumer Business

57

Premium Product Strategy: Flagship Devices Gain Traction

Highest score in photo tests

100

PHOTO

Porsche Design

Technology & Art

Mate 10

First AI full-screen phone

2017 Chinese Swan award

for phone design

P Series

Make every shot a cover shot

Best smartphone camera 2017/2018 award

Consumer Business

iF Award

58

Other

products

Tablets Smart Home

Tablets

• Flagship tablets

• Tablets under CNY1,000

Smart Home

• Routers

• TV box

Wearables

Wearables

• Smart bands

• Smart watches (Honor Smart

Watch S1)

Honor: Top Online Technology Brand Specifically for Young People

Smartphones

Honor Play entry-level products Honor Play flagships Honor flagship series

Attractive,

fashionable

• Best sub-1,000

phone: 7X

• Lite Series

• AI functionality:

Honor V

• Smart phones for

smart people:

Honor #:

Future technologies

Honor Magic

Consumer Business

59

User-centric, Open Ecosystem Serves User Needs in All Scenarios

Health Home Office Entertainment Information Travel …

Vehicle

Office & Entertainment

MFH HiLink

HiHealth

WeLink

HiLink

Smartphone-based products and services

Delivering a high-quality, context-sensitive

user experience

Ecosystem of cloud services

Main platform and providers of future digital

services

Open capabilities and platforms

Fostering ecosystem and sharing success with

partners

Consumer Business

60

Cloud + Connectivity for Enterprises: Enabling the Intelligent World

Consumer

Intelligence Smart City

Enterprise

Intelligence

ICT Infrastructure

Public cloud

services Hybrid cloud

solutions

HUAWEI CLOUD

Leading the Cloud 2.0 era with reliable, trusted, evolvable cloud services

Huawei Cloud supports enterprises. We

heavily invests in core technologies to

deliver ICT infrastructure to customers

and partners via cloud + connectivity.

Connect to the future, build the

intelligent world.

We keep to our industry

Neutral market stance

Trusted by enterprises and

governments

No vendor lock-in

Equal treatment of all partners for

long-term shared success

We don't develop applications

We don't monetize data

We don't make equity

investment

Cloud Business

What we do What we don't do

61

Easy Access to Global Cloud Services: Be Agile, Be International

• Same platforms, products,

APIs, and ecosystem

• Cloud-network synergy

• Online and offline services

• Global nodes enables global

expansion for enterprises

Cloud Business

Atlanta

Miami Mexico

Peru Brazil

Chile Argentina

Netherlands Berlin

Paris Northern China

South

China

North China East China Hong Kong

Singapore

62

Huawei Cloud Infrastructure All Over China, Providing Near-by Services

Multiline

connection Dynamic BGP

5 Regional

centers

30+ City nodes

500,000 m2

Equipment room

area

Offsite

backup Disaster recovery

Tier 3+ Data centers

Xiangyang

Beijing

Karamay Ulanqab

Suzhou

Shanghai

Guangzhou Yuxi

Huzhou

Yunfu

Daqing

Yancheng

Southwest

Guizhou

Changchun

Luzhou

Longyan

Dalian

Shangrao

Yongzhou

Jining

Qinzhou

Ziyang

Meishan

Yan'an

Lvliang

Xinxiang

Qingyang

Zhangzhou

Xuzhou

Qingdao

Dongli

East China Center

North China Center

Northern China

Center

Hong

Kong

Langfang

Peilin

South China

Center

Chengmai

Hainan

Tibetan

Autonomous

Prefecture

Yichun

Nantong

Cloud Business

63

AI + Enterprise Applications = Enterprise Intelligence (EI)

Huawei EI services

OCR forms

Image recognition

Image processing

Intelligent logistics

Machine learning

...

Facial recognition

Intelligent

packing

Container space

efficiency up 6%,

saving tens of

millions per year

Optimization algorithms

Intelligent

customer services

IT hotline: AI can

replace labor in 65%

more services

Voice recognition, machine

learning

Intelligent customs

declaration

Automatic document

reading, accuracy 97%;

processing time: 24 hours

→ 1 hour; customs

compliance 95%

OCR form reading

Real-time risk

control

Stopped 50 million

account attacks

during peak periods

EYWA graph engine

Precision

marketing

Real-time service

recommendations based

on profile analysis

(millions of factors)

Situational profiling

Cloud Business

64

Cloud 2.0: Huawei Focuses on IaaS, Enables PaaS, Integrates SaaS

14

categories

100+

services

Management &

Deployment

CTS

CES

ICMS CCS

LTS

IAM

CRS

RD

S DCS DDS MRS DPS DIS CDM MLS DWS IoTPlatform UQuery

Database

services EI IoT

services OCR

Forms

WebScan WAF Anti-

DDoS KMS SIS HVD

SA

S

SC

S ARS SSA HWAF WTP HIDS

DBS

S

Security

services AA

D

EV

S

OB

S VBS SFS DES

Computing services

VPC ELB VPN DirectConnec

t DNS CSBS ECS BMS IMS AS DeC CCE

Storage services Network services

CDN DES

S DeH

Workspace

Enterprise

apps Meeting IM CloudIPCC VoiceCall MSGSMS

Enterprise

cloud

comm.

CodeCheck CloudPipeline CloudRelease ProjectMan CodeHub CloudDeploy TestMan CloudIDE MobileTest

SMN

Software

development

cloud CloudBuild Collaboration

ServiceStage FunctionStage DDM DMS

App

services

HPC

Cloud office Cloud

migration

Cloud

security

Defense against brute force

cracking of cloud hosts

SAP

Enterprise

cloud disk

Backup and

archiving

Software

training

50+

solutions

Web & Mobile IoT

Dedicated

cloud

Oracle cloud

migration FusionCloud

Security

compliance

Connected

vehicle

Cloud

comm.

Cloud

desktop

DevOps

Video cloud

Hybrid

cloud

Cloud solutions

for key business

7 categories

18 services 10 categories

45 services

14 categories

100+ services

2015.9 2016.12 2017.9 2017.12

13 categories

85 services

Online and offline services

Offline services for enterprise customers

Huawei Cloud official website: www.huaweicloud.com

Chip-level security, 14x performance improvement

Database firewall; response within 3 seconds for 1T+

DDoS attack; PSA certification from Deutsche Telekom

(strictest in Europe)

Security

Cloud Business

Full-stack

technologies

Reliable, responsive, secure services supported by

chipsets and full-stack software and hardware

Intelligent chips, iNIC, Atlas intelligent cloud hardware platform,

cloud-based Kunlun server, one-stop DevOps cloud platform

Cloud-

network

synergy

Cloud + connection, synergy with Huawei data pipes

Cloud + IoT; cloud + private line; cloud + SD-WAN;

multi-cloud MPLS network

Openness &

Interoperability Public/private/hybrid cloud on demand, no lock-in

Single platform for public and private cloud; open APIs

Global

Services

65

Rich Ecosystem of Applications, Content, and Cloud Developers

Basic services Operations O&M

Foundation of cloud services

IoT services

Enterprise

intelligence

Open capabilities

Yonyou

Intelligent

manufacturing

Development

testing

Kingdee Sony SAP Chinasoft

International ZBJ.COM IsoftStone YITU Accenture PTC GE

Industry Internet Connected vehicle Industrial digital

transformation

Enterprise

intelligence Cloud migration &

disaster recovery

Smart

transportation Smart water

services Smart logistics

Chips Hardware Software IoT AI Huawei

Cloud

Working with ecosystem partners

• Solution partners: Develop applications for

Huawei Cloud

• Service partners: Support the migration of

applications to Huawei Cloud

• Channel partners: Sell Huawei Cloud

services

Supporting partners

• Exclusive authorization to deliver public

cloud to a region or industry

• Priority on new opportunities (cloud and

non-cloud)

• Priority on support for in-depth and joint

development

• Priority access to new services

500+ technology partners, 200+ joint industry solutions 12,000+ channel partners, 2000+ service partners,

16 OpenLabs worldwide

Cloud Business

66

VMALL.com

Jointown

Pharmaceutical

Group

Groupe PSA

China Pacific

Insurance Company

Shenzhen Kingdom

Sci-Tech Co., Ltd

Banco Santander

KONKA

JOMOO International

Dongfeng Motor

Corporation

BESTORE China Customs

Shanghai International

Port Group

Philips

China Electric Power

Research Institute

Beijing Jiaotong

University

East Environment

Energy

Greentown China

TF1 (French TV

channel)

Chinasoft

International Falabella

European

Organization for

Nuclear Research

Digital China Health ThermoFisher

Scientific

Guangdong Topstar

Technology Co.,

Ltd.

Arpa IoT Easylinking

Youkia

Leaders

Weak Strategy Strong

Strong

Weak

No. 1

Share of newly-emerging

private cloud markets in China Source: The Forrester Wave™

2016, IDC Statistics 2017.

Leaders

Major Players

Contenders

Participants

Capability

Strategy

No. 1

Source: IDC MarketScape, 2017

Weak Strategy Strong

Strong

Weak

Strong Performer

Source: The Forrester Wave™ 2016 Source: IDC MarketScape, 2017

Capability

Strategy

Contenders

Participants

LEADER

Major Players No. 1

Respect for Data Sovereignty Attracts More Customers

Cloud Business

Chinese big data market

Leadership quadrant,

China B2B cloud market Chinese public cloud platforms

15 provinces &

municipalities, 200+ cities

& counties in China

State Administration

of Taxation

State Information

Center

67

Huawei LiteOS | Chip

2G/3G/4G/eLTE/NB-IoT/5G Edge computing IoT gateway | Smart home gateway

Public Utilities Industry 4.0 Smart Home Connected Vehicle

Application

enablement

Equipment

management

Connectivity

management

OceanConnect IoT Platform IoT Security

Data Security

Network

Security

Device

Security

Huawei is committed to creating innovative

IoT technologies. With our partners we drive

digital transformation by developing

benchmark solutions for sectors like

government, connected vehicle, industry, and

smart home.

Focus:

• IoT platform, particularly delivered as cloud

• Wireless networks, edge computing IoT gateways, smart

home gateways

• IoT chips (embedded Huawei LiteOS)

• IoT ecosystem: Working with partners to meet IoT needs

No applications, no devices, no device resale, no

integration services

IoT Strategy: ICT Infrastructure to Drive Digital Transformation

Security

Management

Horizontal Solution

68

FusionInsight Big Data Platform

Industry Partners

Huawei as a platform: Home of outstanding

applications, transforming data into intelligence

Open, converged, cloud-native big data platform

High-performance machine learning engines and

smart analytics

Comprehensive security framework; real-time

security monitoring

Ecosystem with wide range of big data partners in

many sectors

Security

Computing

Openness

Algorithms Data

Big Data Strategy: Platform Plus Partner Ecosystem

Security Finance Govern-

ment Transport Carriers

Horizontal Solution

69

AI: Enables Better Efficiency, Experience, and Competitiveness

Improving Internal efficiency

and quality

Accounting applications

Supply chain applications

Procurement applications

Internal online translation

Global Technical Assistance

Center (GTAC)

…

Enhancing product and solution

competitiveness Device chips

Edge intelligence

Intelligent device applications

Smart network O&M

Intelligent scheduling for networks

Public safety applications

Cloud AI services and platform

products

…

Internally build AI capabilities Externally enhance competitiveness

IT Platform Integrated AI

Technical

Support Integrated AI

Chips Supports AI

Cloud Delivers AI

services

Products &

Services Use AI functions

AI chips Intelligent

devices

Edge

intelligence

Heterogeneous

computing x86 GPU FPGA Chips

AI platform

services

General AI

services Voice Image Search

Industry-specific

AI Services

Data Control

Enterprise Intelligence (EI)

NLP

Horizontal Solution

70

Video: Cloud Video Solutions for Inspired Experience Across Multiple

Use Cases

Use Case:

Basic carrier service

Use Case:

Safe city CCTV

Use Case:

Public/e-government cloud

Cloud data centers Central DC Edge DC Edge node

Video Platform

SDK

SDKs Chips Intelligent devices

Entertainment

Video

Industry

Video

Communications

Video

Industry Video: Inspired Efficiency

Video cloud enables public safety

Intelligent networks see, discern, understand

Communications Video: Inspired Collaboration

Panoramic telepresence eliminates distance

Solutions

Entertainment Video: Inspired Experience

Huawei enables video as a basic service

Drives commercial success for carriers

Integrated

capabilities

Modules

Live video Video on

demand Video call Video

conference Monitoring

Interactive

live video

Transcoding Storage Streaming Distribution Analysis Search

Video-optimized

carrier networks

Private video networks

for industry

Horizontal Solution

71

All-Intelligent Networks

Digital transformation by migrating everything to the cloud

Intelligent Secure Open

Multi-functional

network, life-

cycle cloud

management,

intelligent O&M

CloudCampus CloudFabic/

CloudDCI

All-Intelligent

cloud data

center

networks

EC-IoT

Completely open

standards for edge

computing + cloud

management

SD-WAN

Application-

grade, intelligent

traffic steering

Security

End-to-end

security,

prevention rather

than repair

CloudCampus

Enables multi-functional networks, cloud management over the network

lifecycle, and intelligent O&M; connects people, things, and environment;

fully automated, stable support for key applications.

CloudFabric/ CloudDCI

Next-generation data center fabric: ultra-broadband, ultra-simple, intelligent,

open; SDN architecture and CloudEngine 12800 switches for best-of-breed

performance.

Edge Computing IoT Open standard EC-IoT gateways give access to VMs and containers,

supporting on-demand deployment of customized applications and a

fully intelligent network edge.

SD-WAN Supports 10+ WAN interfaces, intelligent traffic steering, and 10+

standard value-added services; delivers optimized experience while

cutting WAN costs by 50%; enables on-demand service deployment.

Security

AI support for threat detection, software-defined network-wide

collaborative security defense system, and intelligent optimization of

security protocols: Safe, not sorry.

All-Intelligent Networks: Everything Migrates to the Cloud, Enabling

Digital Enterprises

Agile

AgileWAN

Reliable,

efficient,

intelligent

AgileWAN

10+ hardware and software technologies to support industrial use

cases: multilayer visualization for easy O&M; efficient, intelligent

connectivity across all use cases.

Service-centric Experience

New services launched

in days, not months

Agile Innovation

Network applications

developed 50% faster

Proactive Security

Zero-day vulnerabilities detected

30 hours ahead of industry

Horizontal Solution

72

Cyber Security: Meeting the Challenges, Security is Our Strength

Innovation

Cutting-edge research into security technologies like big data

and AI to address emerging security challenges

Most modern approach to cyber security: From perimeter

defense to defense in depth

Adoption of new technologies, e.g. using AI for faster detection

and repair of vulnerabilities

Security pervades all operations, one of the pillars of Huawei

governance

Collaboration

Open collaboration: Works with governments, companies, and

users in an open and transparent way to improve cyber security

awareness. Each stakeholder has their own role to play in

addressing security challenges.

Security ecosystem: Works with partners to facilitate the setting

of security standards, encourage participation in open source

communities, and foster a healthy and sustainable ecosystem.

Se

cu

rity

Go

ve

rna

nc

e

Eco

syste

m

Shared technologies & components, strong public platform (trusted computing, AI, …)

Fundamental process quality (systems security, traceability, configuration management, …)

Building Security via Innovation,

Enhancing Security via Collaboration

Meets customer

needs through

innovative

technologies and

strategic partnerships;

trusted solutions that

enable digital

transformation.

Works with partners

to ensure the

security of

customers' ICT

infrastructure.

Enterprise Carrier

Secure Android

ecosystem plus

device-cloud synergy

for ultimate

protection of user

data.

Consumer

Diverse security

services, industry-

optimized security

solutions, credible

neutrality and data

protection, for end-to-

end security in

software + hardware.

Cloud

Pro

cesse

s, o

rga

niz

ation

, ta

lent,

cu

ltu

re, a

ud

it

Cloud

networks 5G Cloud

services IoT Video Safe City Devices

Sta

ndard

s, in

dustr

y a

lliances,

supplie

rs, …

Technical

services

Horizontal Solution

73

Goal of

R&D Customers

Customer

needs

Latest

technologies

Thoughts and ideas

Technology options

(multiple paths of

research)

Strategic brainstorming

Huawei Fellows

Huawei Technology

Ambassadors

Researchers

Experts

Engineers Product and solution R&D

Mathematics, engineering technology, …

"Blue Teams"

Elite teams

…… Path Path

Paths

Product

Marketing

Theory Reality

R&D and Innovation Strategy

Innovation

74

• Focus on strategic opportunities: Huawei does not waste

strategic resources on non-strategic opportunities.

• High investment (about 10% of annual revenues) in R&D

• Top 10 in the 2017 EU Industrial R&D Investment

Scoreboard

• Technology breakthroughs come through perseverance,

dedication, and self-reflection

• 74,307 patents; member of 360+ standards

organizations, industry alliances, and open source

communities, with 300+ key positions; 54,000+ proposals

submitted

Sustained High Investment in R&D Brings Technology Breakthroughs

Innovation

十亿

US$ billion

6.6

1.1 1.6

2.1 2.7

3.8

4.8

5.2

2007 2008 2009 2010 2011 2012 2013 2014

US$48 billion+ invested in R&D from 2007 to 2016

9.2

2015

11.0

2016

75

Huawei Innovation Research Program (HIRP)

HIRP

Industr

y

Inve

stm

en

t

Academ

ic

Researc

h Real-world

challenges Innovative

ideas

Knowledge Test

environment

New

technologies New products

Fundamental

advances

Focusing on digital infrastructure

• Network technologies: 5G, SDN/NFV, IP + optical

• Cloud technologies: Computing, storage, security

• Device technologies: Sensing, perceiving, intelligence

Enabling an intelligent world

• Cutting-edge technology research: Video recognition, virtual reality, blockchain

• Solutions for real-world challenges: Digital twin, Safe City, new finance

• Investment in basic technologies: Software, hardware, algorithms, basic science

Open innovation, absorbing new ideas

• Processes adapted to the uncertainties of innovation: Practices, processes,

investment, etc.

• Innovation centers near research and innovation hotspots worldwide

• The Huawei Innovation Research Program (HIRP) works with leading global

researchers on new technologies and commercialization, driving the ICT

industry forward.

• In 2017, the HIRP innovation brand continued to grow. HIRP OPEN published

140 research topics, and received about 800 innovative proposals. Researchers

hailed from nearly 300 universities in 33 countries and regions. Awards received by HIRP:

Business Model Transformation Award by World Open Innovation Conference

ISPIM Grand Prize by International Society for Professional Innovation Management

FLAGSHIP

Partners invited by

Huawei

HIRP OPEN

Open to global

proposals

EXPLORATORY

Global technical

exchanges

Nearly 2,000 leading researchers at over 300 universities and

institutes in 33 countries and regions

Sustained Investment and Innovation: Mapping the Future of the Industry

Innovation

76

Munich

San Diego

Silicon Valley

Dallas

Ottawa

Paris

Moscow

Beijing

Suzhou Chengdu

Xi'an Nanjing

Bangalore

Hangzhou

New Jersey

Chicago

Mathematics

Cloud, AI, software, architecture,

innovation, devices

Wireless, devices, engineering

Stockholm

Fixed networks,

engineering, quality

Microwave

Milan

Mathematics,

aesthetics, imaging

Wireless, systems

Singapore

Seattle

Yokohama Shanghai

Wireless (short-

distance)

Software

Optical

networks,

devices

Helsinki

London

Engineering, components,

audio & video, quality

Shenzhen

Wuhan

Sweden UK Germany Russia Shanghai, China Hangzhou, China

R&D Centers Worldwide: The Best Resources for Innovation

Innovation

Vancouver

77

X Labs: Huawei's Real-world Laboratory for New Opportunities

Connected

vehicle

Wireless

robotics Connected

drone

Cloud virtual/

augmented reality

Connected

healthcare

Building 5G ecosystem around 5 use cases

Laboratories Simulated 4G/4.5G

commercial networks

Test environments for

end-to-end

interoperability

Chips, modules, devices,

systems, etc.

5G environment Verifying key 5G

technologies with

applications

5G field trials

Initial verification of

5G applications

Consulting

committee

Special Interest Group

(SIG) Digital Sky | Wireless Factory | Connected Healthcare

• 50+ top carrier partners with us at 9 joint/ mobile

innovation centers

• 271+ industry partners

• 47+ innovation projects

• Top Ten 5G Use Cases white paper

• X Labs explores the demands and challenges

of new use cases, and explores new

opportunities.

• X Labs has a record of deep market insights

and innovative communications solutions that

address carriers' problems.

• Today, X Labs is researching future use cases

to help accelerate industry adoption of

wireless technologies.

……

Innovation

78

• Joint innovation shapes the industry with new products, solutions, and business models

• Strategy alignment, shared investment, shared success with customers

Joint Innovation with Major Global Customers and Partners

Leading products and solutions

Strategy Alignment

Areas for

innovation

• 5G

• IoT

• Cloud

Engineering

Development

Exploration

Verification

Innovation

in

Products &

Solutions

Innovation

in

Business

Models

Innovation

of

Industries

Innovation

79

Dubai

Suzhou

Mexico City

Bangkok

Munich

Singapore

16 OpenLabs established to date, 4 more by 2019.

All OpenLabs are established with partners, helping customers achieve ongoing business success.

Industry solution center Joint development

center Verification

center Experience

center OpenLab = + + +

Europe

Manufacturing

Safe City

Finance

Middle East

Oil & Gas

Russia

Finance

China

Safe City

Finance

South Pacific

Safe City

Railway

Latin America

Power

OpenLabs Explore Commercial Value, Support Rollout to Industry

Innovation

80

Leading Technologies

5G: Maintaining Our Lead

Lead in Network Rollout Industry Leadership

Working with up/downstream partners,

coordination across the ecosystem

Trials in real 5G use case scenarios

Mobile 4K video

on demand

Remote control of

vehicles

Chip makers

Instrument makers

Peak cell throughput: 28Gbps

Low latency: 0.33ms

Massive connections: 1bn Core network

Wireless network

Chip

CPE

3GPP 5G system – the only end-to-end suite of

5G products available

Best results in the first and second phases of 5G trial organized by Chinese IMT-2020 (5G) Promotion Group, outperformed ITU's

5G targets.

5G verification is now in the field testing phase. Huawei is working with leading carriers around the world, conducting multi-cell

trials in major cities. Trial results are consistently the best in the industry.

Full range of 5G network solutions to be launched in 2018 to support large-scale roll-out of commercial 5G networks. Huawei will

also launch a Kirin 5G chip and 5G smartphones in 2019, bringing the 5G experience to consumers.

10+ 5G pre-commercial networks

World Leading Internet

Scientific and Technological

Achievement award

A single air interface architecture can

support 3 major 5G scenarios.

Innovation

81

IT: Innovation in Chipsets and Architecture for Digital and

Intelligent Enterprises

Large Enterprises Finance Government Carriers Public Safety

Arc

hit

ec

ture

Inn

ova

tio

n

Heterogeneous computing cloud FusionCloud: Universal resource pool, heterogeneous resource pool, storage pools, network/security pool

Data lakes FusionInsight + OceanStor9000: data storage, data processing, data analytics, …

Platforms enable ecosystem FusionStage: Data & analysis services, ISV industry services, …

Architecture More efficient, reliable, intelligent

Chipsets Accelerated processing

Hi150x: x86-64 CPU interconnection

Hi182x: All-in-one protocol

Hi181x: Best-of-breed performance in

SSD access

ENP 2.0: First programmable terabit

switch

Solar 5.0: Highest-density 100GE

interconnection

FusionCloud: Mainstream open-source

architecture (OpenStack); 6 open source

PTLs; optimized for industry applications

FusionInsight: Top 3 contributor to

Hadoop and other communities; leading

top-level CarbonData project in Apache.

Atlas: Supports GPU, FPGA, NPU, SSD

resource pooling and orchestration in

seconds.

Edge computing: Decoupled software

and hardware for efficient computing of

large and small workloads

Nanosecond transmission latency, more

responsive to key services

Ch

ip I

nn

ovati

on

Edge

computing Edge

computing Edge

computing

64 CPUs

interconnected

KunLun

Eliminates FTL

algorithm

Accelerates data

read/write

1812 intelligent NIC chip

Dorado

4 mega-IOPS, 0.5ms latency, 10x faster data analytics

●●●

Hi150x

CPU

interconnection

Hi182x

Intelligent NIC

Hi181x

SSD controller

ENP 2.0

Ethernet NP

Solar 5.0

Router NP

Hi161x

ARM chip

NC1503

interconnection chip

Innovation

Edge

computing

82

Shaping and growing the industry with alliance partners

Huawei works through major industry platforms (e.g. GSMA and TMF) and collaborates

with up/down-stream partners on new technologies for SDN/NFV, 5G, Cloud OS, and

eLTE.

Industry

alliances

Creating value for customer success and win-win results

Strategic alliances with SAP and Accenture to deliver more competitive solutions.

Forward-looking partnerships with Oracle, Microsoft, Salesforce, and Infosys for higher-

value solutions.

Business

alliances

Community cooperation and innovation for open platforms and standards

Active in standards bodies and open source communities (e.g. OpenStack, OPNFV,

ONOS, CabonData, Open-O, Lite OS, and Docker) for an open, growing ICT ecosystem.

Incubating and Nourishing the ICT Ecosystem

Developers

Innovation and rich ecosystem enable the digitization of everything and fast TTM for

our customers

Huawei's Developer Enablement Plan is an open platform that empowers developers by

exposing Huawei's leading ICT capabilities.

Global OpenLabs support innovation and commercialization of localized solutions.

Bigger

Industry

Shared

Success

Shared

Benefits

Ecosystem & Industry

Standards &

open source

83

Advancing ICT Standards and Industry Development

• Key contributor to ICT standards and

industry development; committed to

growing the industry together with major

standards bodies and industry alliances

• Holds 300+ key positions: board

member of IEEE-SA, BBF, ETSI, TMF,

Openstack, Linaro, OPNFV, and CCSA

• Active player in key industry projects on

5G, video, and IoT; driver of cross-

industry collaboration

O&M, digital

services

Communication

technologies &

services

Converged

ICT

Services

CT

ITU-T

OT

380

Membership

in industry

organizations

25+

Organizations

founded by

Huawei

300+

Key

positions

54,000

Proposals

IT

Information technology & Internet services

Ecosystem & Industry

84

Developer Enablement Plan: Unleashing Potential

Capability support:

Provides platforms, APIs, tools, and

training to help developers improve

their capabilities and efficiency;

Innovation support:

Developer workshops, OpenLabs,

and innovation funds to help

developers turn innovative ideas into

products;

Commercialization support:

Global customer base, channels, and

marketing resources to help

developers commercialize innovative

products.

400,000+ registered developers; 3,200+ new solutions and applications developed

The Developer Enablement Plan helps developers create new technologies and business

models using Huawei products, platforms, and APIs, then commercialize their ideas.

Training

Innovation

funds

Developer

workshops

Huawei

certification

Joint

marketing

Developer

contests

Enabling success

Ecosystem & Industry

85

Becoming an Industry Leader: Efficient, Internally Agile, ROADS

1997 2005 2009 2011 2013 2017

Management Consulting Partners

• Focuses on customers' pain points

• Right processes and management systems

for cloud business

• Integration of capabilities at the rep office-level, with a service-

delivery back end to support multi-skilled, elite customer teams

• Enabling the ROADS experience internally (digital, intelligent)

Integrated product

development (IPD)

Integrated supply

chain (ISC)

Human resources

Quality management

Financial

management

Leadership development

Integrated financial

services (IFS)

Customer relationship

management (CRM)

Key account

management

Joint innovation

management

Customer-centric

Regional

Organization

Solution-oriented

Organization

End-to-end Lead to

Cash (LTC)

Integrated Service

Delivery (ISD)

Brand Management

Develop Strategy to

Execute (DSTE)

Market to Lead

(MTL)

Knowledge

Management

Retail Transformation

Consistency of

Inventory Accounts

and Goods

Management

Transaction model

transformation

Software

monetization

"Enterprise products

+ solutions"

operations model

Product digitization

86

Building a Digital Huawei Over the Next Three to Five Years

Customers Consumers Suppliers Partners

Digital Transactions, ROADS Experience

Service-centric Cloud IT Platform

Industry-leading Customer Satisfaction

Industry-leading Internal Efficiency

Cloud-based and Service-based

Transformation

A Platform to Support Elite Teams

Customer-facing process Market-driven

innovation process

Marketing Sales Delivery Service Channel

business R&D

Supply/Procurement platform Finance platform Resources platform (talent, knowledge)

Employees

ROADS experience for customers, consumers,

partners, and suppliers; simpler, more efficient,

and more secure transactions.

Efficiency and the ROADS experience in R&D,

sales, delivery, supply, delivery, and services for

the two major processes.

Cloud-based and service-oriented IT

infrastructure and applications; unified data

bases.

Management

87

Quality leadership and culture Digital systems

Strategy quality

Process quality adapted to processes

Talent quality

Work quality

Supplier/ Partner quality

Ongoing improvement

Contract

Internal

control

…

Brings Huawei's product and engineering quality to all aspects of the company.

Products

Customer

needs Customer

satisfaction

Helping customers to success

Delivering sustained value

Business

environment Business

environment

Stakeholders Stakeholders

Broad Quality to Make Huawei a Byword for High Quality in ICT Industry

Management

Operational

compliance

Information

security

Network

security

Quality baked into

processes

Broad Quality is ISO 9000-based Total Quality

Management. It covers all staff, processes,

and the supply chain, and is aligned with

customer needs and informed by Huawei's

business strategies.

Total quality management covers two end-

to-end processes: customer requirements

to customer satisfaction, driven by

customers; and strategy development to

execution, driven by strategies.

Quality First strategy supports winning with

quality and ongoing enhancement of quality

competitiveness to mitigate key quality

risks.

Quality requirements are embedded into

processes to enhance all-round quality.

Outcome quality

88

Sustainable Development: A Responsible Corporate Citizen

Bridging the Digital Divide Supporting stable and

secure networks

Protecting the

Environment

Building

a Healthy Ecosystem

• Communications for all: First

mobile network coverage at

Everest Base Camp.

• Broadband inclusion for all:

Deployed 100G submarine

networks within the Arctic Circle.

• ICT talent cultivation: Seeds for

the Future program in 96

countries and regions.

• ICT application: Smart healthcare

project in Kenya for 200,000 local

residents.

• Supporting stable networks:

Network management for over

1,500 customer networks;

supported network continuity

over nearly 200 key

events/natural disasters

worldwide.

• Supporting cyber security:

Released the fourth version of

Cyber Security White Paper; all

distribution centers in our supply

chain have ISO 28000

certification

• Green networks: The average

energy efficiency of major

products increased 23% year on

year.

• Green operations: Carbon

intensity (emission per unit

sales) down 20.6% since

baseline.

• Green partners: 8 Huawei

smartphone series have passed

the UL110 Platinum green

certification.

• Green world: 60% green

packaging, saving over 123,000

cubic meters timber.

• Caring for employees: Invested

CNY11.2 billion in employee

benefits worldwide.

• Contributing to society: Launched

nearly 200 social contribution

activities in 70 countries and

regions.

• Operational compliance: Appointed

compliance officers in 97 countries

and regions

• Supply chain management: Led the

development of IPC-1401 Supply

Chain Social Responsibility

Management System Guidance

Sustainable Development

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.