Huawei Solutions for Banking Industry 4th August, 2015 www.huawei.com Huawei Global – Steady Growth, 228 in Fortune 500 170,000 170+ Employees Countries A Global Leading ICT Provider 14 Regional HQs 45 Training centers 16 R&D Continued growth in core business 2014 centers Mobile: $10.7 bln 76,000 31 Page 2 R&D employees Joint innovation centers HUAWEI TECHNOLOGIES CO., LTD. IP Network: $9.4 bln IT & Service: $14.6 bln Device: $11.8 bln Unprecedented Reach through Innovative Technologies Enable 3.5 billion end users Page 3 HUAWEI TECHNOLOGIES CO., LTD. Continuous Investment in Innovation and Market Impact R&D investment Product impacts in market USD $6.50 billion in 2014 USD $ 30.1 billion over 10 years (from 2004 to 2014) 76,000 R&D employees Switches: Server: 16 R&D centers No.3 Global 27% Growth No.4 Global No.2 Blade Continuous increase in percentage of R&D investment to total sales revenue $6.5B $5.1B $4.9B $3.9B $2.9B $2.3B $0.6B$0.7B $1.4B $1.1B $1.8B Source: IDC System in Global Source: Gartner Routers: Video Conf No. 2 Global 22% Market Share No.3 in Global Source: IDC 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Page 4 HUAWEI TECHNOLOGIES CO., LTD. Huawei IT – Fast Growth, Widely Adapted No.1 Revenues in China Market, 2014 No.1 No.4 No.2 Growth in Global Market, 2014 Q4 Shipments in Global Market Global Shipments of Blade Server 96% Huawei EMC IBM HP HDS Dell Huawei Dell HP HDS EMC HP Dell IBM+ Huawei CiscoFutjitsu Lenovo Government Moscow Metro SPB Government Gazprom NSPK Santander SPB State University VTB Leasing ICBC SGM Group Dataline Leaseweb Alibaba Tencent Finance Energy Enterprise ROSATOM The global Page 5 1/3 Dell Lenovo Sugon Gartner – Global Server Market Share, 2014 Q4 Gartner – Global Storage Market Share, 2014 Q4 Federal Tax Service HP Huawei Cisco population coverage, Serving 5000+ Customers worldwide HUAWEI TECHNOLOGIES CO., LTD. New Finance Calls for Agile and Robust Operating Systems New Finance in the Internet Era Financial Intermediary Comprehensive Financial Services Omni-Channel Financial Services Anytime, Anywhere Page 6 Agile Business Response and Smart Opportunity Mining HUAWEI TECHNOLOGIES CO., LTD. Robust Business Operation and Complete Risk Mgmt Cloud Computing, Big Data, and Mobile Technologies: Consensus Among CIOs future of banks relies on their capabilities in “The managing massive information, and whether IDC:Top Technology Priorities for Banking and Securities CIOs, NA, 2015 Top Technology Priorities 2013 2014 2015 BI / Analytics 1 1 1 Infrastructure & Datacenter - 3↑ 2↑ Mobile 5 4↑ 3↑ Cloud 2 2 4↓ CRM 7 - 5↑ Security 3 6↓ 6↑ Digitalization / Digital MKTG - - 7↑ BPM - - 8↑ Legacy Modernization 6 5↑ 9↓ App. Dev - - 10↑ Industry Specific Applications - 7↑ 11↓ Compliance - - 12↑ Page 7 TOP – No Change they can rebuild new financial and economic relationships. We must overturn traditional ideas and experience, and develop new operational models using cloud computing and big data technologies. MIDDLE - Only Change in Ranking ” -- Jiang Jianqing, Chairman of ICBC REST - Many Changes More financial institutions are in action… HUAWEI TECHNOLOGIES CO., LTD. Reshaping IT to Accelerate Business Transformation Towards the Internet Era Branch e-Banking TeleBanking Remote Banking Mobile Marketing Mobile Banking Ubiquitous, Convenient Service Channels Reshaping Services Open and Standard Controllable Costs Smart Big Data Platform Core Services Intermediate Business LoanCore AccountingCredit Card … Wealth Precious Paymen Metal t Agent Mgmt … Reshaping Data High Security and Reliability Operation Mgmt Large Capacity Risk MarketingFinance … Mgmt High Scalability High-Performance, Open IT Platform Distributed Architecture & Cloud Platform Reshaping Platform Open and Efficient IT Infrastructure Page 8 HUAWEI TECHNOLOGIES CO., LTD. Efficient IT R&D Huawei is Dedicated to Helping Banking Transform 300+ Global Financial Institutions Page 9 6 of the World's Top 10 Banks HUAWEI TECHNOLOGIES CO., LTD. Strategic Cooperation with 10+ Clients Huawei in Russia Since 1997 HQ , R&D Center, Training Center in Moscow 1500 employees Local hires account for 85% 11 offices in St. Petersburg, Novosibirsk, Yekaterinburg, Nizhny Novgorod, Samara, Ufa, Vladivostok, Kazan, Krasnoyarsk, Rostovon-Don, Perm Page 10 Technical Support Center in Novosibirsk Logistics Centers 12 Network Operation Center in Ufa Carrier Enterprise Consumer HUAWEI TECHNOLOGIES CO., LTD. Huawei: Trusted Partner of Russian Industry Leaders Page 11 RZD and Huawei VTB and Huawei Sberbank and Huawei Strategic Cooperation Agreement 20th May, 2014 Strategic Cooperation Agreement 9th Nov. 2014 Strategic Cooperation Agreement 13th Oct, 2014 HUAWEI TECHNOLOGIES CO., LTD. A Trusted Partner for Russian Banking Innovation Finance Sberbank LAN Solution Optical Transmission Data Center Reliability VTB IT Product Network Product Infrastructure SMP Bank Servers; OceanStorStorage NSPK Case Huaweii Active-Active Data Center Solution E2E solution of networking, server & storage 4 months: from contract to completion of implementation Page 12 HUAWEI TECHNOLOGIES CO., LTD. Huawei became strategic and innovation partner of Sberbank Huawei has been producing a full range of products. Previous they compete with Cisco, and now they have with Oracle, IBM and other world-renowned manufacturers all competed. They said after a few years they will be the first in the world, when you look at them, look at their R&D center with70,000 employees, you will Campus network, WAN, Big data network, DWDM, WiFi network all passed extremely strict test of Sberbank, Shortlisted Product include: Datacenter Switches Core Router Optical Network WLAN Server Storage Page 13 start to believe it is true. Let's build a similar ambition in Moscow.“ HUAWEI TECHNOLOGIES CO., LTD. Mr. Herman Gref, CEO of Sberbank A Trusted Partner for Russian Government Innovation Government Moscow Government Network & WLAN Intelligent Surveillance Video Conferencing SPB Government OceanStor Storage Network & Firewall Intelligent Surveillance Pension Fund LAN Solution Performance Blade Server Video Conferencing Ministry of Emergency Situation LAN Solution Reliable Rack Server Federal Tax Servers Storages Page 14 Saint Petersburg Safe City Case Huawei Safe City Solution Network Cameras with embedded intelligence capability Converged High-end NAS Storage HUAWEI LTD. * Cooperation with 23 federal ministries and TECHNOLOGIES 10+ RegionalCO., Governments A Trusted Partner for Russian Transport Innovation Transport RZD GSM-R, eLTE, Microwave Whole Network Solution Video Conferencing Pulkovo Airport Wi-Fi Network Avtodor LAN Solution (Switch) GLONASS AR Switch S Switch Vnukovo E2E Data Center Solution Page 15 RZD Case Huawei E2E ICT Solution Networking: Successfully deployed Krasnoyarsk, Rostov-on-Don and Nizhny Novgorod Brunch Bear Network VC: RZD global VC system high-definition restructuring GSM-R:Sochi GSM railway solution HUAWEI TECHNOLOGIES CO., LTD. A Trusted Partner for Russian Energy Innovation Oil & Gas Gazprom Video Conferencing WLAN and Microwave OceanStor & Blade Server Rosneft LAN Solution (Router ) Gazprom Case Huawei DC and VC Solution FSK Backbone Network LAN Solution in Intensive Page 16 Huawei E2E DC Solution connecting 6 Gazprom branches via state of the art Huawei VC system HUAWEI TECHNOLOGIES CO., LTD. Huawei is Dedicated to Helping Banking Transform Thank You. Page 17 HUAWEI TECHNOLOGIES CO., LTD.