Corporate Presentation

www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD.

HUAWEI TECHNOLOGIES CO., LTD. Page 1
Huawei at a Glance

z
A global leading player in providing next
generation telecoms network solutions
z
Contract sales of USD 8.2 billion in 2005, of
which 58% was from international markets
z
Serving 28 of the world’s top 50 operators
z
Strategic partner of British Telecom, Vodafone,
Telefonica, etc.
z
Staff strength of 40,000, of which 48% are
engaged in R&D (As of March 2006)

HUAWEI TECHNOLOGIES CO., LTD. Page 2

Sustainable Growth
Contract Sales（USD in
billions）
9
8.2
8
7
5.58
6

5
3.83
4
2.67
3

0
2002 2003 2004 2005

HUAWEI TECHNOLOGIES CO., LTD. Page 3

Human Resources

Huawei emphasizes the ability to

focus on customer service and
requirements in the recruitment,
promotion, training and performance
evaluation of our employees.. Marketing、sales and
R&D:48%
customer service: 38%

48%
38%

6% 8% Administration: 6% Supply Chain: 8%

40,000 employees as of March 2006

HUAWEI TECHNOLOGIES CO., LTD. Page 4

 Global Presence
Huawei Technologies
(Headquarters)
Greenland

Sweden
UKNetherlands Russia
German Poland
France Ukraine Canada
Romaniay Kazakhstan
Portugal Bulgaria Kyrgyzstan
Spain Italy Turkey
Greece Uzbekistan USA
Tunisia Japan
Morocco Turkmenistan
South Korea
Algeria Egypt Bangladesh
Pakistan Shenzhen Mexico Cuba
UAE Nepal Vietnam
Saudi India ThailandCambodi
Nigeria Arabia Philippines Venezuela
a
Malaysia Colombia
Sri Lanka
Kenya Singapore Ecuador

Indonesia
Brazil
Peru
Zimbabwe Paraguay
Australia
South Africa Argentina

Chile

z 85 overseas branch offices as of March 2006

z 3-level customer service system (HQ, regional, local)

HUAWEI TECHNOLOGIES CO., LTD. Page 5

 Global R&D

z Global R&D
Bangalore, India －Software technology/ platform
Dallas, USA －ASIC technologies and wireless algorithm
San Diego, USA －Terminal technologies and chipsets
Stockholm, Sweden －Base Station system design RAN
technologies
Moscow, Russia －Algorithm and RF
Shanghai, China －RAN, terminal, ASIC chipset
Beijing, China －Packet CN, GW, Terminals

z We have widely implemented CMM5 and IPD (Integrated

Product Development) into our product development.
z Four R&D divisions (Central Software Division and institutes in
Bangalore, Shanghai and Nanjing) have been awarded CMM
level 5 certification.

HUAWEI TECHNOLOGIES CO., LTD. Page 6

Product Portfolio
Customized Communications Network Solutions

Network Product Line Handsets

Wireless Application
Fixed-line Optical Datacom and Software and Wireless
Network
Network Network Network Terminals
z UMTS z LH/ULH DWDM z Router z Fixed IN z UMTS handset
GSM/GPRS/EDGE z NGN
z z Metro WDM z LAN Switch z Wireless IN z CDMA handset
z DSLAM
z GSM-T/GSM-R z OCS z Security & VPN z Universal IN z CDMA fixed
z MSAN
z CDMA2000 z NG-SDH(ASON) z GW & Server z Mobile Data terminal
z Switching
z IMS z NG-SONET z CDN/SAN z Wireless data card
z Mobile Soft Switch z Fixed Terminals z FSO z OSS/BSS z Wireless module
z WLAN/WiMAX

ASICs and Shared Platform

z ISO 9001:2000/TL9000/CMM for quality control

z ISO 14001:2004 for environment management
z OHSAS 18001:1999 for occupational health and safety administration

HUAWEI TECHNOLOGIES CO., LTD. Page 7

Standards and Patents
We continuously invest in standards and patents to stay at the
forefront of future technology.

z
Standards
Participated in 70 international standardization organizations including ITU and 3GPP.
z
Patents

Domestic Patents 11,000 Huawei, 5%

others, 11% Motorola, 4%
PhilipsElectr Siemens, 3%
NEC, 3%
PCT International onics, 4%
and Overseas Patents 1765

Oualcomm, 12%
InterDigital,
Authorized Patents 1900 17%

3GPP essential patents, Huawei ranks top 5.

（As of March 2006）

HUAWEI TECHNOLOGIES CO., LTD. Page 8

Management Transformation
Huawei works with top-tier consultancies to adopt the world’s most
professional management practices, ensuring quality end-to-end
delivery for its customers.

Integrated Product Development and

consulting Integrated Supply Chain

Human Resources & ESOP

Financial Management
consulting

Quality Control

Organization Transformation

HUAWEI TECHNOLOGIES CO., LTD. Page 9

Global Cooperation

z Joint Labs & Partners with Leading Companies

z Joint Ventures with Siemens, 3Com and Nortel

HUAWEI TECHNOLOGIES CO., LTD. Page 10

World-leading UMTS & CDMA
Network Supplier
z Won 26 commercial contracts worldwide, as of March 2006,
z First to launch R4-based UMTS network and full-speed HSDPA commercial network,
z Won 19 CDMA2000 1xEV-DO commercial contracts, No.2 market share.
z Leading CDMA WLL vendor with 68% global market share

Huawei,12.8%
Other, 14.7%
Siemens, 18.3%
Others, 9%
Huawei, 28
Nortel, 6.4%
Nortel, 28%

Nokia, 21.1%

Ericsson, 26.6% Lucent, 35%

UMTS: Global market share of total CDMA: No. 2 in CDMA2000 1xEV-DO

contract wins in 2004 and 2005 Contract Wins (2004-1H2005)

Source: Frost & Sullivan, Nov. 2005

HUAWEI TECHNOLOGIES CO., LTD. Page 11

World-leading NGN Supplier

Huawei
27.68%
Others,
32.48%

Nortel
Networks,
Tekelec, 17.51%
10.82% Siemens,
11 50%

NGN: No.1 in global NGN market in

2005 (27.68% of ports market share)

Source: Dittberner Associates Inc.

z Over 350 U-SYS NGN commercial sites have been deployed in over 50 countries

HUAWEI TECHNOLOGIES CO., LTD. Page 12

World-leading Access Network Supplier

z Over 19 million ports of IP DSLAM, and over 8 million ports of ADSL2+ in more than 60 countries
z Over 60 million ports of HONET MSAN have been deployed in more than 60 countries

Huawei,
Huawei, 30.0%
34.0%
Other, 17.0%
Other, 26.2%

na, 5.0%

nt, 5.0%

ZyXEL, 6.7% ellabs, 8.0%

Alcatel, 15.1%
ZTE, 7.9%
UTStarcom, 7.1% Ericsson, 7.0% Alcatel, 31.0%

IP DSLAM: No.1 in global IP-DSLAM market in MSAN: No.1 in global NG DLC market in 2005
2005 (30.0% of ports market share) (34% of DSL+DS0 ports market share)

Source: Infonetics Research, Inc. Source: Infonetics Research, Inc.

HUAWEI TECHNOLOGIES CO., LTD. Page 13

World-leading Transport Network Supplier
z Over 410,000 sets of OptiX products have been deployed in more than 80 countries
z Over 556,000 sets of Quidway series routers and 35 million ports of Quidway series switches
have been deployed in more than 90 countries

Huawei, 5.4%
Huawei, 10%
Others, 8.3%
Alcatel, 4.8%
Others, 25% Alcatel, 16%

Juniper, 26.1% cisco, 53.0%

Nortel, 9%
Siemens, 6%
Macorni, 6% Fujitsu, 9%
Redback, 2.4%
Cisco, 5% Tellabs, 7%
Lucent, 7%

ON: No.2 in global optical network market in Router: No.3 in Worldwide Service Provider
2005 (10% of market share) Router in 2005 (5.4% of market share)

Source: Ovum-RHK Source: Gartner.

HUAWEI TECHNOLOGIES CO., LTD. Page 14

Development in Europe

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One of the approved Global UMTS suppliers of Vodafone.

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Cooperates with Telefonica in UMTS and broadband.

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Key supplier for BT’s 21st Century Network.

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Constructed two national optic networks and 800k line DSLAM network in

France

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Constructed the biggest NGN network in Germany

HUAWEI TECHNOLOGIES CO., LTD. Page 15

Social Responsibility
Fulfilling our social responsibility
as a corporate citizen

z A dedicated member of the United Nations

Global Compact

z December 2004 Tsunami: Donated USD 2.42

million worth of telecom equipment and an
additional USD 2.42 million in cash from the
company and its employees

z August 1998 Flood (China): Donated USD 3.7

million worth of equipment, and USD 1.85 million
in cash.

z Education Fund: Donated USD 3.09 million to

set up a fund to help needy students complete
their undergraduate education.

HUAWEI TECHNOLOGIES CO., LTD. Page 16

 Thank You
www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD. Page 17