CISCO SYSTEMS - INTRODUCTION

Founded in 1984 Incorporated on December 10, 1984

Have 72,935 employees

Surpassed 39 billion in revenue in 2008 Corporate headquarters located in San Jose, California

32 factories worldwide, 30 of them are outsourced.

Spends nearly $5.3 billion a year in R&D

CISCO SYSTEMS INTRO RECENT EVENTS

Video Easier to Create, Consume, Search and Share Across the Enterprise

Cisco Demonstrates Leadership in Virtualized, Scalable, CloudReady Data Centers with Customer and Technology Milestones

Cisco Connects Businesses to Consumers via Video

NETWORKING AND COMMUNICATION

Industry: Networking and Communication supplies and services Industry Consolidation Few competitors in their main product area In 2006 they had 70% of the share of its core router and switch market.

Juniper Networks and Hewlitt-Packard selected as benchmarks. Cisco's Chambers Problem Cisco Competition

CISCOS MISSION STATEMENT

Shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors, and ecosystem partners. Vision Changing the Way We Work, Live, Play, and Learn. Cisco has a very bland and basic mission statement that only ranks as an ok (5) on the MVV evaluation.

R E M O T E ( S O C I E T A L ) E N V I R O N M E N T .

I N D U S T R Y ( T A S K ) E N V I R O N M E N T
A S S E S S M E N T O F C O M P E T I T I O N M O S T C R U C I A L T H R E A T S A N D O P P O R T U N I T I E S , WITH SCORE.

REMOTE (SOCIETAL) ENVIRONMENT

OPPORTUNITIES THREATS

Innovation Product and services expansion

Economic slowdown Price wars Product substitution Margin erosion Consolidation trend Consumer loyalty

Market of Airline Industry Reusing existing Cisco gear to act as mobile POPs

Cloud Computing

INDUSTRY/TASK ENVIRONMENT
OPPORTUNITIES THREATS

Low supplier power, Cisco has taken control of its supply chain Router and switch market share discourages new entrants

Flip Video bargaining power of buyers. MSFT Threat of new entrant (bundle unified communications software) GOOG Threat of new entrant (desktop video conferencing market) Vyatta Substitute (open source hardware) Asterisk Substitute (open source VoIP)

Switching costs are high(reduce buyer power)

Acquisitions removes some threat of startup success Growth in the consumer market and cloud computing

ASSESSMENT OF COMPETITION
OPPORTUNITIES THREATS

Increase competition in bottom layer switch market

Mirrorless SLRs are the response to Flip video Juniper announced data center Juniper entered into a partnership with IBM to handle network connectivity for the latters cloud computing 3COM emerging into markets like China Junipers high-end switches (EX) and Junos OS HPs low cost switches

Smart Grid Technology Asian Market Tata Communications

Server growth up 700%

Cloud-centric software

SUMMARY MOST CRUCIAL OPPORTUNITIES AND THREATS

OPPORTUNITIES THREATS

Increase competition in bottom layer switch market (9)

HPs low cost switches (10) MSFT Threat of new entrant (bundle unified communications software) (7)

Server growth (10) Cloud Computing (10) Smart Grid Technology (10) Asian Market (8)

Consolidation trend (7) Juniper/IBM (9)

Junipers data center (10)

Avg. ~ 47/5 = 9.4

Avg. ~ 43/5 = 8.6

O-T ~ 9.4 8.6 = .8

NET INCOME TRENDS CSCO & BENCHMARKS

$10,000.00 $8,000.00

Net Income (in Millions)

$6,000.00 Cisco $4,000.00 HP Juniper $2,000.00

$2005 2006 2007 2008 2009 2010

Company Name

$(2,000.00)

2005

2006

2007

2008

2009

2010

CISCO SYSTEMS INC

$ 5,741.00

$ 5,580.00

$ 7,333.00

$ 8,052.00

$ 6,134.00

$ 7,767.00

HEWLETT-PACKARD CO

$ 2,398.00

$ 6,198.00

$ 7,264.00

$ 8,329.00

$ 7,660.00

$ 8,761.00

JUNIPER NETWORKS INC

$ 354.03

$(1,001.44)

$ 360.83

$ 511.75

$ 117.00

$ 618.40

CSCO QUARTERLY EARNINGS VS. CONSENSUS ESTIMATES 0.5

0.45 0.4 0.35 0.3
Estimate 0.25 0.2 0.15 0.1 0.05 0 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct Actual Difference

Earnings History EPS Est EPS Actual

10-Apr 0.39 0.42

10-Jul 0.42 0.43

10-Oct 0.4 0.42

11-Jan 0.35 0.37

Difference
Surprise %

0.03
7.70%

0.01
2.40%

0.02
5.00%

0.02
5.70%

REVENUE BY PRODUCT CATEGORY AND SERVICE

90% 80% 70% 60% 50% 40% 30%

Q1
Q2 Q3 Q4

20%
10% 0% Routers Switches New Products Other Total Product Service

KEY INCOME STATEMENT DATA FY2010

HP Cisco Juniper

Sales
Cost of Sales Pretax Income Basic EPS - Exclud Extra Items Diluted EPS - Exclud Extra Items Net Income (Loss)

$ 126,033.00
$ 92,753.00 $ 11,083.00

$ 40,040.00
$ 12,858.00 $ 9,415.00

$
$ $

4,093.27
1,200.46 778.15

$
$ $

3.78
3.69 8,761.00

$
$ $

1.36
1.33 7,767.00

$
$ $

1.18
1.15 618.40

KEY BALANCE SHEET DATA FY2010

HP Cash Total Current Assets PP&E Total Assets Other Investments Total Current Liabilities Total Liabilities Total Stockholders' Equity $ 10,934.00 $ 54,184.00 $ 11,763.00 $ 124,503.00 $ 4,191.00 Cisco $ 39,861.00 $ 51,421.00 $ 3,941.00 $ $ $ $ $ $ $ $ Juniper 2,286.40 3,214.37 493.88 8,467.85 535.18 1,471.98 1,859.05 6,608.80

$ 81,130.00 $ 2,607.00

$ 49,403.00 $ 83,722.00 $ 40,449.00

$ 19,233.00 $ 36,845.00 $ 44,267.00

CASH FLOW DATA FY2010

HP Cisco Juniper Cash Flow 12mm $ 13,581.00 $ 10,064.00 $ 773.69

Dividends Paid - Cash

771.00

Operating Activity

$ 11,922.00

$ 10,173.00

812.34

Investing Activity

$ (11,359.00)

$ (11,931.00)

(532.75)

Financing Activity

$ (2,913.00)

621.00

(72.42)

Change in Cash & Equiv $ (2,350.00)

$ (1,137.00)

207.16

IMPORTANT FINANCIAL RATIOS FY2010

HP Current Ratio Quick Ratio Net Profit Margin Return on Assets Return on Equity 1.097 0.779 6.951 7.037 21.659 Cisco 2.674 2.397 19.398 9.574 17.546 Juniper 2.184 1.959 15.108 7.303 9.357

Return on Investment
Financial Leverage

15.634
2.956

13.753
1.800

9.357
1.292

APPLYING ALTMANS BANKRUPTCY FORMULA

Z = 1.2*A + 1.4*B + 3.3*C + 0.6*D + 1.0*E, where;
A = Working Capital / Total Assets (%) B = Retained Earnings / Total Assets (%) C = EBIT / Total Assets (%) D = Market Value of Equity / Total Liabilities (%), and E = Sales / Total Assets

Scores below 1.81 indicate significant credit problems while scores above 3.0 indicate a healthy firm. Scores falling between 1.81 and 3.0 indicate question marks.
2005 Z Value 2.902 2006 2.315 2007 2.473 2008 2.500 2009 2.292 2010 2.166

Z-VALUE
3.5 3 2.5 2 1.5 1 0.5 0 2005 2006 2007 2008 2009 2010 Upper Limit Z Value Lower Limit

INDEX OF SUSTAINABLE GROWTH

0.500 0.450 0.400 0.350 0.300 0.250 0.200 0.150 0.100 0.050 0.000 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 g* score

g* = [P(1-D)(1+L)] / [T-P(1-D)(1+L)], where P = (Net Profit before Tax / Net Sales) x 100 D = Target dividends / Profit after Tax L = Total Liabilities / Net Worth T = (Total Assets / Net Sales) x 100

INVENTORY TURNOVER FY2010

16.000 14.000

Inventory Turnover

12.000 10.000 8.000 6.000 4.000 2.000 0.000 HP Cisco Juniper

CREDIT RATINGS
Issuer Credit Rating Ratings Rating Date

Foreign Long-term

A+

10-Feb-06

Foreign Short-term Local Long-term

A-1+ A+

31-Jan-11 10-Feb-06

Local Short-term

A-1+

31-Jan-11

March 9, 2011-Standard & Poor's Ratings Services said today that it assigned its 'A+' issue rating to San Jose, Calif.-based Cisco Systems Inc.'s (Cisco) three tranches of senior unsecured notes.

CISCO STOCK PRICE HISTORY

CSCO STOCK PRICE 5 YEAR TREND

CSCO STOCK PRICE 2 YEAR TREND

FINANCIAL SUCCESS STATEMENT

In fiscal 2010, we saw a solid return to balanced growth across geographies, product and customer markets exemplified by Cisco reaching over $40 billion in fiscal year revenue. We focused our efforts on defining true innovation and operational excellence within our company. And we improved our position as a strategic partner to customers worldwide by showing how the network has become, in our view, the most strategic asset in communications and information technology (IT) today.

CISCO LONG TERM TOTAL SALES FROM 2006-2010

2006 = 23.38 Billion

2007 = 34.90 Billion

2008 = 39.60 Billion 2009 = 36.10 Billion 2010 = 40 Billion

CISCO LONG TERM QUARTERLY SALES FROM 2006-2010

2006 Quarter 1: 6.50 Billion Quarter 2: 6.60 Billion 2008 Quarter 1: 9.60 Billion Quarter 2: 9.60 Billion

Quarter 3: 7.30 Billion

Quarter 4: 7.98 Billion 2007 Quarter 1: 8.20 Billion

Quarter 3: 9.60 Billion

Quarter 4: 10.40 Billion 2009 Quarter 1: 10.30 Billion

Quarter 2: 8.40 Billion

Quarter 3: 8.90 Billion Quarter 4: 9.40 Billion

Quarter 2: 9.1 Billion

Quarter 3: 8.2 Billion Quarter 4: 8.5 Billion

CISCO LONG TERM QUARTERLY SALES FROM 2006-2010 CONT.

2010 Quarter 1: 9.00 Billion Quarter 2: 9.80 Billion Quarter 3: 10.40 Billion Quarter 4: 10.80 Billion

SALES BY STRATEGIC BUSINESS UNITS IN QUARTER 1 AND 2 OF 2011

Strategic Business Units = divisions or groups of divisions composed of independent product-market segments that are given primary responsibility and authority for the management of their own functional areas. CISCO Q1 IN MILLIONS
ROUTERS - $1,835 SWITCHES - $3,532 NEW PRODUCTS - $3,104 OTHER PRODUCTS - $229 TOTAL PRODUCT $8,700

Q2 IN MILLIONS
ROUTERS - $1,672 SWITCHES - $3,151 NEW PRODUCTS - $3,202 OTHER PRODUCTS - $211 TOTAL PRODUCT - $8,236

MARKET SHARE OF STOCKS

Company Name CSCO JNPR Cisco Systems, Inc. Juniper Networks, Inc. HewlettPackard Company Price Change Change % 0.42% -2.59% Market Cap 96.63B 21.12B

17.46 +0.07 39.49 -1.05

HPQ

41.53 -0.24

-0.56%

89.87B

ALU

AlcatelLucent (ADR)
Microsoft Corporation

5.19

-0.07

-1.33%

12.03B

MSFT

25.34 +0.01

0.05%

212.94B

MARKETING TACTICS
Tactics = specific operating plans that detail how a strategy is to be implemented in terms of when and where it is to be put into action. Timing Tactics Historically a first mover supported by being a first mover in technology. They specialize in routers, switches, wireless, security, optical networking, etc. Cisco is also considered a industry leader.

Market Location Tactics: Offensive

Cisco has always been known to take a frontal assault because they are a market leader. They go head to head with its competition.

MARKETING TACTICS
Market Location Tactics: Defensive Cisco takes the path of raising structural barriers. They do this to block challengers logical avenues of attack. Some factors of Porters they use are: Offering a full line of products in every profitable market segment to close off any entry points. Keep their items reasonably priced for their most popular products and services.

CISCO SUCCESS STATEMENT

Cisco has had many success stories throughout the years which is a large part in being a industry leader. Customers drive our business strategies to achieving success and excellence in everything we do, and will continue to be our key focus for developing products and services that accelerate their capability to prosper in the Internet business.

CISCO SUCCESS STATEMENT CONT.

An example of a success story is: In 2001 the cost of direct DSL and ISDN access increased markedly. Cisco transitioned tens of thousands of teleworkers and remote office workers worldwide to remote access VPNs. To determine if additional capacity was needed, Cisco used Cisco NetFlow in conjunction with various open-source tools to characterize existing traffic and then extrapolate expected traffic. With this business intelligence, Cisco successfully transitioned 22,000 users to VPN in only three months.

MARKETING PROBLEMS
The dominance in network switches that Cisco holds is waning. Hewlett-Packard has been particularly aggressive in the switching market since they have entered. Ciscos video-conferencing system for living rooms has been a strange product to market. There is little market for such a product when consumers can video chat for free over the internet instead of paying $600 for the equipment and a $25 a month service fee.

CORPORATE MANAGEMENT TEAM

Frank A. Calderoni Executive Vice President, Chief Financial Officer John T. Chambers

Chairman and Chief Executive Officer

Mark Chandler Senior Vice President, Legal Services, General Counsel and Secretary Blair Christie Chief Marketing Officer, Worldwide Government Affairs, Corporate Communications Wim Elfink Executive Vice President, Cisco Services and Chief Globalization Officer

CORPORATE MANAGEMENT TEAM CONT.

Robert W. Lloyd Executive Vice President, Worldwide Operations

Gary B. Moore
Executive Vice President, Chief Operating Officer

Randy Pond Executive Vice President, Operations, Processes and Systems

MANAGEMENT TEAM - DIVERSITY

Board 13 members, 2 internal 65 Executives

56 men
9 women

Executive Biographies

EXECUTIVE COMPENSATION
Compensation Governance. The core of Ciscos executive compensation continues to be pay for performance, and the framework includes the compensation governance features discussed below:

1. Provides shareholders with the opportunity to cast advisory votes on compensation

2. Have no employment or severance agreements, special benefits, supplemental executive retirement plans, perquisites, or tax equalization.

3. CEO compensated below targets and median of the peer group of three out of the last five years.
4. Compensation Committee is solely independent directors.

TOP FIVE 2010 COMPENSATION & TENURE

John Chambers $18.9 million in 2010
Fiscal Salary Year ($) (2) Name and Principal Position John T. Chambers Chairman and Chief Executive Officer Frank A. Calderoni Executive Vice President, Chief Financial Officer (1) Dennis D. Powell Former Executive Vice President, Chief Financial Officer (1) Wim Elfrink Executive Vice President, Cisco Services and Chief Globalization Officer Richard J. Justice Executive Vice President, Worldwide Operations and Business Development 2008 $375,000 2007 $350,096 2008 $447,692 Bonus ($) (3) Stock Awards ($) (4) Non-Equity Option Incentive Plan Awards Compensation ($) (5) ($) (6) $3,002,802 $1,052,335 All Other Compensation ($) (7) $9,087 $7,677 $71,090 Total ($) $11,159,897 $10,984,287 $3,395,465

$650,985 $7,122,023

$3,500,000 $7,126,514 $483,727 $1,340,621

2008 $401,635 2007 $425,577 2008 $859,605(8)

$458,939 $1,464,503 $392,116 $2,018,450 $871,227 $2,566,075

$673,205 $1,607,614 $1,590,750(9)

$7,253

$3,005,535

$9,000 $4,452,757 $1,732,050(10) $7,619,707

2008 $750,000 2007 $451,154

$871,227 $2,706,400 $392,116 $2,470,436

$1,484,700 $2,329,875

$113,771 $18,231

$5,926,098 $5,661,812

DIRECTION OF TOP MANAGEMENT TEAM

Continue to seek to expand share of Ciscos customers information technology spending. Focus on core networking capabilities while expanding into product markets where the network as a platform is increasing. Focusing primary attention include those related to the increased role of virtualization/the cloud, video, collaboration, and networked Web 2.0 technologies.

TOP MANAGEMENT PERFORMANCE INDICATORS

QUALITATIVE FACTORS QUANTITATIVE FACTORS

Strategic Direction (4) Implementing Strategy (5) Building Mgt. Team (4) Management Qual. (5) Succession (4) Labor Relations (4) Technology Leader (5) Board Relations (4) Investor Relations (5) Com./Gov Relns (4)

Return on Assets (5) Return on Investment (4) Return on Equity (4) Return Meas. Trends (4) Cash Flow (4) Profit Growth (4) EPS (4) Dividend Payout (4) Stock Price (4) Total Return to SH (1)

Total = 44

Total = 38

MANAGEMENT ANALYSIS
Chambers recently introduced collaborative decision making. 70% of decisions made by groups. 20% of senior leaders have left since the switch 30 new businesses, 20 more to come Average Tenure 11.5 years

CURRENT CORE COMPETENCIES DISTINCTIVE COMPETENCIES CORPORATE-LEVEL STRATEGIES Short Term & Long-Term CORE SBU LEVEL STRATEGIES 5 CRITICAL PERFORMANCE INDICATORS

CURRENT CORE COMPETENCIES

Hardware product development Acquisitions - Buy-the-startups (Cisco's acquisition strategy is best-inworld and we particularly look for acquisitions that capitalize on market disruption through new technologies and new business models.) Collaboration Services Network Flexibility/Scaling (data center/hardware/software capacities)

and virtualization
Strategic Alliances (AT&T, Dell, HP, Intel, IBM, Microsoft, Nokia, etc)

DISTINCTIVE COMPETENCIES
Acquisitions Smart-grid technology (form of routing or switching) as noted by

CEO John Chambers.

CURRENT LONG-TERM CORPORATE STRATEGIES

Strategy: One Cisco Grow faster than the market

Protect and extend product market leadership

Innovate

CURRENT SHORT-TERM CORPORATE STRATEGIES

Internal innovation - $5.3B+ spent on R&D annually Acquisition continued integration of Pari Networks, Inlet

technologies, and newScale, Inc.

Enter into new markets: Smart Grids Media solutions Sports and entertainment

Virtual healthcare
Education

MIS/INFORMATION AGE READINESS

Incredible website Use the products they develop

Recently upgraded their ERP to Oracle 11i

Purchasing Data Storage Technical Support

About Cisco

BORDERLESS NETWORKS GROUP

Comprised of Routers and Switches Increased their revenue by 33% from 09 to 10

Q2 FY11 Sales down $132 million

70% of the market share Improve application velocity and enhance collaboration while reducing branch IT operational expenses by up to 70 percent

19% 7%

16% Routers

Switches
24% 34% Advanced Technologies Others Services

COLLABORATION GROUP
Webex and TelePresence and other VoIP technologies 90 percent of frequent users save at least two hours of work time per

week through video collaboration

It is possible to achieve 100% ROI in 5 years and payback periods of 2140 months Reduction of 21 percent in corporate travel spending

CLOUD COMPUTING GROUP

DATA CENTER AND VIRTUALIZATION Energy efficiency Reduce energy costs Optimize use of space, power, and cooling infrastructure Infrastructure Consolidation Business Continuance Workforce Productivity

Cloud Computing Explained

CALIFORNIA TELEMEDICINE PILOT PROJECT

Contributing $10 million of product, services and support Care-at-a-distance technology that combines video, audio and medical information Patients will be able to view the medical exam Easiness of meeting

IDENTIFICATION OF SBU LEVEL STRATEGIES AND TACTICS

As mentioned earlier Ciscos strongest market is with their switches. The revenue has declined 7% in the latest quarter because they are under attack by competitors such as HP. Ciscos consumer products such as Linsksys routers, Flip video cameras, etc. dont stand a chance against Apple. They need to market their products more efficiently and spend more money on marketing popular products than products that serve a small niche market. Cisco just unveiled a new home-entertainment system in January to hopefully reinvent the entire TV experience.

CORPORATE SOCIAL RESPONSIBILITY KEY PERFORMANCE INDICATORS

In the Workplace Employee Satisfaction % of employees 2005 2006 who agreed with 7 81% 85% statements about Cisco as a place to work Total voluntary attrition as % of ending head count 4.6% 5.4% 2007 86%

Voluntary employee attrition Health and safety

6.9%

Number of 129 nonfatal injuries and illnesses during fiscal year

107

93

CORPORATE SOCIAL RESPONSIBILITY KEY PERFORMANCE INDICATORS

Diversity In the workplace Women Women as % of total employees Women as % of total VP positions Ethnic minorities as % of total employees Ethnic minorities as % of total VP positions 22% 13% 42% 22% 14% 43% 22.8% 15.12% 43%

Ethnic Minorities (U.S. only)

17%

17%

15.51%

CORPORATE SOCIAL RESPONSIBILITY KEY PERFORMANCE INDICATORS

Environment Worldwide energy consumption Normalized worldwide energy consumption Giga watthours (GWh) 753 856 898

GWh per $8n 30.4 sales

30.1

25.7

Greenhouse gas 1000 tons of emissions carbon dioxide (tCO2)

312

349

311

Product recycling

Tons of equipment

n/a

4516

7102

CORPORATE SOCIAL RESPONSIBILITY KEY PERFORMANCE INDICATORS

Social Social Investment Total corporate wide and foundation cash and in-kind contributions Number of hours volunteered by employees Number of students enrolled worldwide in Cisco Networking Academy Number of countries Cisco currently invests programs in $65 Million $115.5 Million $116.8 Million

Employee volunteerism Educational output

235,000

160,000

130,000

459,723

466,935

501,019

Social and Economic investment

n/a

165

160+

NTERNAL STRENGTHS, WEAKNESSES S T R A T E G Y C H O I C E ( G R A N D S T R A T E G Y MATRIX) O V E R A L L P R O B L E M / S U C C E S S S T A T E M E N T

INTERNAL STRENGTHS AND WEAKNESSES

Strengths: Strong Market Position (9) Strategic alliances (9) Robust Balance Sheet (9) Human Network/Smart Grid (9) Strong Management (8) Weaknesses: Lack of presence in consumer market (8)

High pricing - cheaper alternatives(8)

Constant re-engineering (7) Brand Recognition (6) Acquisition Integration (9) Avg. ~ 38/5 = 7.6

Avg. ~ 44/5 = 8.8

S-W ~ 8.8 7.6 = 1.2

SWOT MATRIX AND GRAND STRATEGIES

Figure 6.2 SWOT Matri x and Grand Strategies Opportunities Growth
1. 2. 3. 4. Concentration Hori zontal Integration Vertical Integration Concentric Diversification
+10 +9 +8 +7 +6 +5 +4 +3

Harvest
1. Refor mulation of Concentration Hori zontal Integration Divest Liquidate

2. 3. 4.

Strengths

Cisco (1.2, 0.8)

+2 +1

+10 +9 +8 +7 +6 +5 +4 +3 +2 +1 0 -1 -2 -3 -4 -5 -6 - 7 -8 -9 -10 -1 -2

Weaknesses

1. 2.

Concentric Diversification Congl o me rate Diversification Joint Ventures

-3 -4 -5 -6 -7 -8

1.

Turnar ound or Retrench ment Concentric Diversification Divest Liquidation

2. 3. 4.

3.

Maintenance

-9 -10

Divest

Threats

GENERAL STATEMENT OF CONDITIONS

Leader in almost all of our product markets Strong strategic alliances with MSFT, IBM, AT&T, Dell, Intel

All sales in all geographic locations went up

Low market share in consumer products Strategy of buy, build and partner Strong financial position

ONG-TERM PROSPECTS AND OPTIONS S H O R T - T E R M P R O S P E C T S A N D O P T I O N S H O W S T R A T E G Y O P T I O N S S U P P O R T L O N G TERM SURVIVAL. S U M M A R Y

LONG-TERM SUCCESS CONSUMER PRODUCT

Although Cisco has a huge line of products and services a long -term goal would be to improve their consumer products.

Cisco can go about that by developing brand recognition within their consumer market.
Market different products: http://www.theflip.com/en-us/products/design-yourown.aspx

LONG-TERM SUCCESS SMART GRID

49% of cyber security threats to the electrical infrastructure initiate from breaches of physical security. Cisco partnered with German electricity company Yello Strom to launch a smart-grid pilot project in 70 German homes and businesses. Eliminate blackouts and brownouts Promises to be a $20-billion-a-year business

LONG-TERM SUCCESS THE HUMAN NETWORK

The Human Network - this

SHORT TERM IMPERATIVES

Company Pari Networks Market Opportunity Network Management

Inlet Technologies

Video

MOTO Development Group

Consumer

Linesider Technologies

Network Management

Arch Rock Corporation

Smart Grid

1. RESPONSES TO CDPROJECT.NET

2. OTHER RELATED GOALS & PERFORMANCE

GREEN GOALS
Optimize business operations and cut costs Extend lifecycle / reduced power consumption Optimized processes Simplified architectures Reduce Greenhouse gas emissions Innovative software added to the Cisco Catalyst switching portfolio Available for customers to download This reduces GhG emissions, saves energy and reduces costs

GOALS CONTINUED
Reduce energy consumption and cost Power management Tracking and reporting Infrastructure consolidation

Comply with government directives

Recycling Use end-of-life programs that reduce the overall impact of the environment These end-of-life programs are designed to reuse or harvest the material commodities contained in the equipment collected and return those materials to the market where they are made into new products Create competitive differentiation Virtual worker Remote collaboration Resource virtualization

3. SMART GRID

Smart Grid

4. SUPPLIER ENVIRONMENTAL RESPONSIBILITY

Global Supplier Enrollment Package Supplier Profile Form, EFTP Enrollment Form, Certifications, Tax Requirements, and Supplier Diversity Policies

Certifications Data Usage and Protection Certificate (Certificate I) Code of Ethics Certificate (Certification II) Supplier Environmental Health and Safety Certificate (Certificate III)
Supplier Diversity Policies Cisco believes purchasing products from small, womenowned, small disadvantaged, minority, disabled veteran, and HUBZone enterprises are key to the economic vitality of both Cisco and the community.

5. DOING ENOUGH?
Yes, we think they are doing enough because: They have produced many programs that make them socially and ethically responsible. Optimize operations Reduce GHG emissions Reduce energy consumption Recycle Create differentiation Supplier certifications and environmental requirements.

ARE THEY CHALLENGED?

"Are they challenged? Absolutely. But outside of Apple and Google, we don't see a company in the technology space that is as well positioned for growth. -Unknown

ANY QUESTIONS?