www.huawei.com

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Think globally,

Operate locally

www.huawei.com

2012-11-6

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Huawei Confidential

Contents

Brazil, key strategic market of Huawei

Key development strategies and milestones of Huawei do Brazil

Lessons & experiences

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Brazil, one of the biggest markets of Huawei globally

31,23%

4,58%

4,51%

1,74%

57,93%

Huawei Brazil Revenue in global

China

Brazil

Russia

India

Others

37%

63%

Huawei Brazil Revenue in LA Region

Brazil

Others

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Huge potential and large scale of Brazilian ICT industry

0

10.000

20.000

30.000

40.000

Net revenue of Brazilian Operators (BRL millions)

Telefônica/ Vivo

América Móvil

Oi

TIM

6th biggest economy body in the world

Fundamental construction investment will

be boosted, such as the requirements

from big events, telecom agenda in federal

level, etc

Brazil telecom market keeps high growth rate in

recent years

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Brazil, key strategic market of Huawei

Key development strategies and milestones of Huawei do Brazil

Lessons & experiences

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Key development strategies in Brazil

• Invest Continuously

• Operate Locally

• Meet local market strategies

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Continuous investment & major milestones in Brazil

• +3900 employees, 87% of which are local

• +1000 suppliers, +12000 job opportunities created indirectly

• Strategic partnership with key operators, serving 1/3 of big enterprises, 6M shipment all terminals

Bonded warehouse established Contract sales of U$ 200 million

Call center established Contract sales of U$ 100 million

Huawei do Brasil established

Representative offices opened in Sao Paulo, Rio de Janeiro and Brasilia

First commercial contract Logistic & Technical Assistance Center established

Staff force of +100 employees

Training Center established

2008 2007 2006 2009 2010 2003 2002 2001 2000 1999 2004 2005

Build Vivo’s first GSM network, largest of its kind in South Hemisphere

Massive 3G network construction for key 3G carriers 3G modems launched

Contract sales of U$ 1 billion

Android phones launched HGS established to specially attend service demand

Enhanced corporate structure to focus on Carrier, Enterprise, and Consumer markets. Huawei-Symantec office opened in Brazil

2011

Big transformation in the operation and delivery platform

2012

Become the main LTE vendor for major operators.

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We are “Made in Brazil” since 2008

• Local manufacturing center + logistics center in Sorocaba, keep

expanding in scale

• Cooperation with Flextronics for local manufacturing, covers a

wide range of our best-selling products: BTS/NodeBs for

mobile broadband, DSLAM for fixed broadband, Devices:

Cell phones, 3G Modems

• In 2012, we got PPB on LTE, IP, transmission

• 6 regional delivery centers to serve all Brazilian market

• In the past 3 years, local procurement amount reached USD

760 Mln, paid tax to government up to USD 700 Mln

Brazil

Brasilia

Rio de Janeiro

Sao Paulo

Campinas

Sorocaba Distribution Center Location: Alameda das Andorinhas

Curitiba

Manaus Recife

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Local R&D Center provides close support to our

customer Keep the operator’s focus on its core business

Technical Support

» System Operation &

Maintenance

» Issue Solved

LOCAL Near shore/Onsite R&D

» Solution Design

» Application Innovation

» Feature Realization

LOCAL TSD

REGIONAL TSD BASE

Innovation Solution

Requirement

Focus on

» New Ideas

» MKT promotion Activities

Focus on

» MKT Analysis

» MKT Oriented Strategy and

Roadmap

Operator

Customer

Huawei

Rio de Janeiro

Campinas

Huawei SSA Carrier Software R&D Center started since 2009. It enhanced the local

fast innovation & implementation capability.

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Local training centre and platform to transfer advanced

technology

In 2001 a fully-functional training center was

established:

Covering an area of 1,850 m2

Labs over 490 m2

With a capacity of training 5,000 persons/Year

30000 + talents were trained as of 2011

In 2012, Huawei and Inatel signed agreement on

Huawei Certification Partnership

"Huawei Brazilian ICT talent development plan" takes

INATEL as a starting point, will continue to cooperate

with more colleges and universities in Brazil

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Local innovation in advanced technology and unique

standard

• In July 2012, Huawei Signed Letter of Commitment

with the Ministry of Communications to support

LTE 450MHz standardization and local production

• In Sept, LTE450MHz proposal was raised to 3GPP

• Huawei donated 2 suites cloud computing in

Manaus and Recife

• The equipments will be used for remote

education, scientific research and remote medical

care.

• In Oct 2012, Huawei launched the LTE 450MHz solution

during Futurecom

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Contents

Brazil, key strategic market of Huawei

Key development strategies and milestones of Huawei do Brazil

Lessons & experiences

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Culture fusion between local team and Chinese team

• Main barriers & differences between two nations

› Language

› Mentality

› Working pattern

• Successful tactics

› Team building activities

› Training courses

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High taxes takes big pressure to the operation

• Key barriers

• Complex system

• High total rate

• Successful tactics

• Implement IT system(ERP\LTC\CRM) to

improve business efficiency and reduce

total cost

• Qualified in-house tax team and

outsourcing consultant experts are needed

Thank you www.huawei.com

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Copyright©2012 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.