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Cisco Confidential

Market Share Leadership


100% 80% 60% 40% 20% 0%

Security

100% 80%

Digital Video: IPTV

100%

Switching: Modular/Fixed

Cisco

32%

Cisco/SA

62%

80% 60% 40% 20% 0%

Cisco/SA

60% 40% 20% 0%

70%

100% 80% 60% 40%

Voice

100% 80%

Wireless: LAN

100%

Storage: Area Networks

Cisco 20%
0%

33%

60% 40% 20% 0%

Cisco

56%

80% 60% 40% 20% 0%

Cisco
Web Conferencing

34%

100% 80% 60% 40% 20%

Routing: Edge/Core/Access

100% 80%

Networked Home

100% 80%

Cisco

54%

60% 40% 20% 0%

Linksys

25%

60% 40% 20% 0%

49%
Cisco/WebEx
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2010 Cisco and/or its affiliates. All rights reserved.

0%

Market Share Leadership

34%

49%

54%

62%

56%

25%

70%

32%

33%

Only company with leadership across all segments


Integration as sustainable competitive advantage
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Diverse product portfolio for long-term stability


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Total $11.3B $6.6B


4% Y/Y
Americas

5% Y/Y $1.8B
11% Y/Y
APJC

$2.9B
2% Y/Y
EMEA

Q1 FY12 Fiscal Revenue by Geography


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The Network as the Platform

Ciscos strategy is based on catching market transitionsthe market transitions that affect our customers. With the proliferation of video and collaborative Web 2.0 technologies, the network continues to evolve from the plumbing of the Internet providing connectivityto the platform that will change the way we work, live, play and learn.
John Chambers, Chairman and CEO, Cisco

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Market Transitions
Our strategy is guided by the market transitions that affect our customers.

Collaboration/ Web 2.0 Network as Platform Network of Networks


Data/Voice/Video

All in One:

1997
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2000

2006

2008 - 2011
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35 Year Goals

Cisco Strategy

FY 11 Initiatives

Business Architecture

3-5 Year Goals

Intelligent Information Network


Technology Architecture

Initiatives

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Cisco: The Convergence Innovator


One Seamless, Transparent Customer Experience
Mobility Voice Service Provider Public Sector Video

Enterprise

Small

Consumer

Commercial

Data

Information

Data

network as the platform


Mobility Voice

the

Video

Entertainment

Freedom
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Communications
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Creating Sustainable Differentiation Through Platform Leadership


Platform Leadership

Architectural Plays Solutions & Business Models Systems Products

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Cisco Confidential

collaboration customers

culture
Cisco allows people to
Thats the

employees community

connect locally and globally


Human Network
a place where everyone is connected

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10

The Cisco Vision

changing the way we work, live, play, and learn.

SM

The Mission to shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors and ecosystem partners

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Market Transitions Open Communication

Giving Back Trust/ Fairness/ Integrity

Inclusion

Continuous Improvement/ Stretch Goals

Innovation

Quality Team

culture
No Technology Religion Collaboration/ Teamwork Fun Drive Change

Profit Contribution (Frugality)

Customer Success

Empowerment

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12

collaboration customers

culture
Cisco allows people to
Thats the

employees community

connect locally and globally


Human Network
a place where everyone is connected

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culture
employees
are our competitive advantage

1/3 1/3 1/6 1/6 63K+


employees

sales engineering service other

165+
countries

470+
offices
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the idea of

culture
cities

community
no longer applies to just towns

or countries

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your

is wherever you need to interact.

community

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Networking Academy

Volunteerism

we believe

community

belongs to everyone.

Make Every Connection a Green Connection

Sustainable Business Practices


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technology
Innovation as a means of evolving through
Build Buy

Partner
Go-to-Market / Investment Strategy

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$5.3B+ 20,000+
Engineers R&D Investment Annually

700
Patents Filed Annually

30
Major Labs Worldwide

Build
Internal Innovation

8000
Patents Issued

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19

R&D Commitment
$5.3B
14% 6% 3% 13% 14%

IBM

Microsoft

Cisco
Internal Innovation

Intel

HP

R&D as Percent of FY10 Revenue


2010 Cisco and/or its affiliates. All rights reserved.

Source: Yahoo Finance, Company Financial Statements, analyst estimates used for IBM, Intel and HP FY10

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Market Expansion Market Acceleration New Market Entry

Buy
Acquisition Strategy

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Best In Class Mutually Beneficial Long-Term Partnership

Partner
Go-to-Market / Investment Strategy

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Cisco is truly dedicated to customer success. Our mission is to shape the future of the internet by creating unprecedented value and opportunity for our customers, partners, shareholders, and employees.

John Chambers Chairman and CEO

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10+ years of historyformally tracking customer satisfaction


4.5

Central part of Ciscos culture

Customer satisfaction tied to the bonus plan

4.41 4.37 4.33 4.33 4.30 4.33 4.37 4.36

4.44

4.43

4.45

4.43

4.22 4.15 4.06

4.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: Cisco annual survey; measured on a scale of 1 to 5 in fiscal years
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history

culture

customers

technology

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built for the human network.

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