1. Sustainable Competiveness Network Enables Connectivity, Global CompetivenIf You Have Agreed With Everything Ive Said Ive Clearly FailedJohn ChambersChairman and CEOCisco Systems

2. GAAP ReconciliationDuring this presentation references to financial measures of Cisco will includereferences to non-GAAP financial measures. Cisco provides a reconciliation betweenGAAP and non-GAAP financial information on our website at www.cisco.com underAbout Cisco in the Investor Relations section.http://investor.cisco.com/results.cfmForward-Looking StatementsThis presentation contains projections and other forwardforward-looking statements regardingfuture events or the future financial performance of Cisco, including future operatingresults. These projections and statements are only predictions. Actual events orresults may differ materially from those in the projections or other forward forward-lookingstatements. Please see Ciscos filings with the SEC, including its most recent filingson Form 10-K and Form 10-Q, for a discussion of important risk factors that couldQ,cause actual events or results to differ materially from those in the projections or otherforward-looking statements. 3. Whats on Your Mind? Sustainable Competiveness Global Economy Technology Transitions Social Media / CollaborationVideo / Virtualization / Data Cent Business Case for IT... IT Innovation / Enable Strategy? Whats Working with IT? WhatDo Differently? Innovation Operational Excellence 4. Whats on My Mind? Market Transitions / Tipping Points- Global Economy - Collaboration / Video- Technology Transitions - Consumer Business- Virtualization / Data Center Speed / Scale / Flexibility / Replication Collaboration / Video Everything We Do Market Adjacencies 30+ New Business Models Innovation Business Models / Organization Structure / IT Innovation AND Operational ExcellenceSustainable Competiveness Countries / Companies 5. Vision: Countrys Sustainable Competitiveness Education Infrastructure Innovation Market Transitions Supportive Government Collaboration First Time 3 Billion People < $3 / Day 6. Common Vocabulary / Key Themes Market Transitions / Tipping Points Opportunity / time to change Business / Government Model Vision 5+ years + Strategy 2-4 years Execution 12-18 months 18Challenge Enable Vision / Strategy / Execution by I 7. arket Transitions in Global GDP Emerging CountrieCisco Makes All Decisions Vision 5 10 Years100% Developed75%50%25% Emerging18201913 195020052025 Innovation / Operational Excellence / SpeedEmerging No Longer FollowingSource: The Economist, The New Titans, 16 Sept. 2006 8. T has proven to be a key enabler of socioeconomic progress andvelopment, enhancing productivity and therefore economic grow ucing poverty and improving living standards.- World Economic Forum, Global IT Re 9. Technology has become thengine of Globalization - Worlde expansion of ICT is bothse and effect of globalizationGlobalization has bea main driver of- WorlOrgantechnological progres 10. Source: SSaudi ArabiaON THE FAST TRACK TO TOP 1 11. ness-FriendlyImpressive ProgressQuality vironment Workforce Infrastructu13 Ease Doing 27th Globalusiness Top 10 most Competitiven14 FDI Inflow competitive economy Universities 7 Newarketficiency $2.4B educreform 5emove Hurdles students 12. Ciscos Vision / Strategy / ExecutionNetwork Changes Way We All Forms Communication /Work / Live / Play / Learn IT into NetworkNetwork Becomes theEnabling New BusinessPlatform IINModels Productivity / GrowthMarket TransitionsTechnology and BusinessCustomer DrivenArchitectureInnovationBuild / Buy / Cross FunctionalPartner / CollaborateTeamwork / Prioritization Leader In All Customer Leader in Collaboratio#1 Product Leadership SegmentsConsumerand Web 2.0Lead Layers 1-7Quad Play Everywhere UC Leader in Video ArchitConvergence 13. arket TransitionsOpportunities VideoNetworkNetwork as PlatformNetworkof Networksone/ Voice / Video1997 2000 20062009 14. Ciscos Growth Strategy BuildInnovation NotCompetition Competition MarketMarketTransitionsTransitionsAdjacenciesBuy Partner 15. sis inence Fear in FinancialMarkets Q1 Phase 1 Acceleration Q4 Tipping Point Global EconomicMeltdown Q3 Bottom JAN 2008 JAN 2009DEC 2009 16. sis inCisco Focus Over Last 2 Yearence Fear in FinancialMarkets Speed, Scale, Flexibility, Replicate Q1 PhaseAccelerat Playbook, Gameplan Most Aggressive in HistoryQ4 Tipping Point OrganizationGlobal Economic Business ModelsStructure, MeltdownQ3 Bottom Network is Platform for Communications / IT JAN 2008JAN 2009DEC 2009 17. Market Transitio 18. Expanding Expectations of IT Priorities Aligned Embed Enable CEO Priorities (Business Focus)CIO Priorities (Technology Focus) Vision / Strategy / ExecutionGrowth / Productivity / Cost RealignmentNew Business Models Speed / FlexibilityBusiness and Technology ArchitecturesIT / Program Progress, CapabilitiesT has gone from enabling our strategy to being our strate 19. conomy 30+ New Markets+10% ExpensePlaybook Game Plan Expense Reduction Resource $1.5BReallocation $1B Organization StructureBusiness Models - C / B / WG - Engineering / SalesV/S/E 30+ Market Adjacencies +ExecutionGrowth 20. InnovationOperational Excelle Market Transitions 34X Business Models V/S/E( OperationalInnovation ExecutionExcellence Process / PreparationSpeed / Scale / Flex / ReplicableOrganization Structure Enable Network Platform Collaboration / Web 2.0 PlumberTechnology Business Partner Collaboration Enables all of the Above 21. Leadership in Collaborative Utilization6X Files Uploaded Publishers 41X User Growth Rate 86X 22. TelePresenceTelePresence Flagship of Collaboration Business Models452K Meetings7,800 Meetings / Week674 Rooms 204 Cities 47 Countries60%+ Utilization 10 hour day500 Customers CEOs Get It 23. COP15 COP Bonn GenevaCopenhagen New York 7 TelePresence secure 5 rooms UN locations: Bonn, Geneva, Nairobi, New York, Danish Foreign Ministry Copenh UN, IGOs, NGOs via Cisco rooms (~70 globally)Nairob 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 24. For ConsumerSwim w/ DolphinsZip LiningBear Fishing Family 25. For BusinessCustomer MeetingOn My MindCompany Meeting Jabber War Room 26. Organization Structure Collaborative Groups Innovation Operational Excellence 27. Market Adjacencies 30+Collaboration UC / WebEx / TP Smart Connected AdvertisingCisco 3.0CommunitiesVideo Smart GridQualityMexico 3.0 Saudi Arabia /Software/Command / Control Brasil / RussiaChina 3.0XaaSStrategyCollab. / Teamwork Cloud MediaSports /MobilityServices Globalisation ComputingSolutionsEntertainment(IRIS) RoutersManaged Virtualization/ Commercial Solutions Green In Space ServicesData Center AccelerationEmergingVirtualSafety /dia 3.0Small Business Consumer Countries 2.0Healthcare SecurityGrowth / Execution ((25%...12-17%) 28. Foundation for Business GoalsCollaboration UC / WebEx / TelePresence45 Days Enabled by Structure / ModelsSmartConnectedCommunities Advertising Cisco 3.0 4 AcquisitionsVideo Smart Grid Earnings QualityMexico 3.0 Command / ControlMedia Software/China 3.0 Solutions XaaSCollab. / Teamwork Strategic Alliances Shareholder MeetingMobilityCloudComputing Brasil / Russia /Saudi ArabiaServices GlobalisationSports / Entertainment Strategy CIO Conference (IRIS) RoutersIn SpaceManagedServicesSolutions Virtualization/Data CenterCommercial 100+ Customer MeetingsAccelerationGreenSmallEmerging Virtual Safety /India 3.0Consumer HealthcareSecurity Business Countries 2.0Speed / Scale / Flexibility / Replicate OrganizationalNew Business Structure ModelsCouncils / BoardsV/S/EWorking Groups 29. Effectiveness in TransitionsIndustry Market Capitalization$132B January 1995November 20January 201 $110B$60B $23B1995: Alcatel, Lucent, Nortel, 2006: Alcatel, Lucent, Nortel, Ciena,Ascend, 3Com, Bay, Cabletron, Fore, Madge, Shiva, Newbridge, XylanCom, Enterasys, Extreme, Foundry, Juniper, Redback, Riverstone, Sy 30. Cisco Networking Academies 165+ Countries / Territories 9,500+ AcademiesWORLDWIDE 20,000+ Instructors 900,000+ Students (20% Female) 650,000+ CCNA 4 Graduates (15% Female) 2,181+ AcademiesUNITED STATES3,652+ Instructors 137,538+ 137Students (15% Female) 172,380+ 172CCNA 4 Graduates (12% Female) 200+ AcademiesMIDDLE EAST300+ Instructors20,000+ Students (21% Female)35,000+ CCNA 4 Graduates (17% Female) 89 Academies239 InstructorsSAUDI ARABIA 13,226 Students (26% Female)2,737 CCNA 4 Graduates (3% Female) 31. BahrainBahrain International Circuitan environment where technology thrives Powered by Ciscoa winning combination oftechnology and talent 32. Consider the Possibilitiesrom BasicsTo Efficiency and Innovatzens: siloed government Citizens: One Government all needagencies different ministriesIntegrated ICT frameworkT solution patchworkShared services, optimized operatioconnected services, data-sharingCollaborative citizen-centric approap-down government pushBroadband Experience, Applicationcus only broadband penetrationIT is part of THE strategys an enableroperation Collaboration / Internet Phase 2 33. ICT: Gaining Importancep 10 competitiveeconomyThe NCC* Working Recommendations ICT sector growth 10%... 5 years Access, affordability mobile services all ar Nationwide broadband penetrationationwide: applications Subsidies rural broadband penetrationubsidies Competitive telecoms regulationompetitive CT Enabler and e-government servicesgovernmentmpetitive Advantage Education awareness programsducation,Source: * The National Competitiveness Center, Saudi Arabia