Cisco Capital Overview May 2009

1. Cisco Capital Overview May 2009 Demos Stogiannidis Enterprise Finance Manager Cisco Capital Dubai Ltd (Regulated by the DFSA)

2. Agenda • Cisco Capital Overview • Cisco Capital Value-add • Typical Finance Frame Agreements • Q&A

3. Who is Cisco Capital? • Wholly-owned Cisco subsidiary created in 1996 to: Leverage Cisco’s financial strength to help provide end-to-end financing for Cisco’s products and services Eliminate barriers to acquiring Cisco products and services Maximize customer’s cash flows and profitability Provide direct customer contact • 10% of all Cisco Sales financed by Capital • Alignment with technology innovation • Global market presence - 88 countries • Our focus - enabling our customers’ success

4. Cisco Capital Strategy To profitably support the acquisition and deployment of Cisco’s technology solution with creative, flexible, market enhancing financing

5. Financing means you can choose to make purchases over a designated time frame, rather than making a large upfront cash investment Most technology equipment and service can be financed. There are business and technology benefits to this acquisition strategy. Financing options primarily include loans and leases Technology Financing

6. Organizations vary widely from small sole proprietorships and partnerships to Fortune 100 corporations and government entities. Transactions range from a few thousand dollars worth of equipment to multi-million dollar facilities and communications systems. Who is Financing?

7. ORGANIZATIONS THAT LEVERAGE Ministry of Health Japan

8. Why do Organizations Finance? Flexibility: whether its budget or technology To accommodate different technology and budget needs, cash flow patterns and streams of income. However, organizations of all sizes can agree on three main reasons for choosing finance: Practicality: organizations benefit from the use of technology and not the ownership Cost effectiveness: helping customers achieve better ROI and minimise unexpected costs and risks

9. Renew technology to match business requirements • Ability to satisfy your needs now • Remove budgetary constraints • Flexible payment terms e.g. deferred • Maximise available budget • Additional projects can be considered • Protect against technology obsolescence • “Refresh” solution with minimal business impact • Usage without the risks of ownership • Protection from depreciating IT investments Financing provides IT with flexibility and peace of mind Benefits of Financing for IT Decision Makers and Directors

10. Effective cost / benefit management Avoids significant IT investment spikes Budget stability / planning Costs fixed for contract duration Conserve budgets and preservation of cash Saves / enables alternative use of budget or liquid assets Key financial performance indicators improved Such as return on assets Potential tax advantages Finance revenue costs can reduce tax burden It is the use of equipment that generates profits, not ownership Benefits of Financingfor Finance Decision Makers & Government Agencies

11. Loan (Extended Payment) Benefits • Retain ownership upon purchase • Addresses budget limitations • Frees up capital for day to day business • Payments can be structured to match deployment and economic benefit • No transaction Fees • No early Repayment penalties

12. Cisco Capital Financing Cisco Services 3rd Party Equipment Cisco Network Platform Cisco CapitalPart of Cisco’s Whole Offer

13. Long term business initiatives directly aligned with customer and Cisco initiatives. Cisco Capital versusGeneric Financing Organisations Other finance organisations Cisco Capital Primary focus not lease/ loan profitability. We take real product risk through aggressive residual values. Technology experience no one else could offer. Ability to create true lifecycle models.

14. Appreciates Depreciates buy it finance it The Golden Rule It is the use of equipment that generates profits, not ownership

15. Typical Financial Frame Agreementw/ Government Agencies or large Organizations

16. Example of Typical Credit Facility Multi-million dollar Credit Facility Tenor: 3 years Grace period: 6 months Interest rates: very competitive, below market rates Repayment Structure: Quarterly or monthly in arrears Finance up to 33% non-Cisco, non-competitive equipment and services. Sign Commercial Term Sheet outlining major T&C to cover all the immediate and future needs of Government and Ministries in terms of Cisco equipment and services Sign Master Lease and Loan Agreement Specific quotations are submitted for individual Projects including Interest Rate (loan) or Repayment Schedule (lease) for review and approval and subsequent drawdown based on the MLA Quotations Pricing validity is 30/90 days and subject to final Credit, Pricing and Legal approval

17. Payment - WS Hold & Release Authority Invoice - WS Payment - Margin Copy –Invoice Retail Product Invoice & Payment - Finance Customer Credit Check Loan Documents Invoice -Retail PO PO Typical Cisco Capital Loan Scenario CSC finances End-User who orders from Reseller . Cisco-BV End-User Reseller CSC

18. Cisco Capital – Continued Strategic Significance “We have $29.5B in cash, and we are using Cisco Capital on a global basis in a conservative fashion to help our customers in this country and around the world . . .” February 5, 2009 – CNBC Interview

19. The smarter way to acquire your technology solution Finance with Cisco Capitaland benefit from: Finance your Cisco solutionand benefit from: Cash flow conservationSpread costs over time, preserve credit and avoid the need for cash investment Business focusRemove the burden of equipment ownership and disposal One solution, predictable payments Combine hardware, software and services into one financial framework. Lower costsTake advantage of competitive rates and residual values which reduce total cost of ownership Equipment lifecycle management Gain from flexible upgrade,and migration options and easy equipment disposal Maximum flexibilityChoose payment terms, lengths and End of Lease options including return or outright purchase. Find out how Cisco Capital can help you maximise the benefits of your financing solution, visit our website: www.cisco.com/go/ciscofinanced_europe More Cisco expertise.More flexible financing. *Usual Cisco Terms and Conditions apply, subject to credit approval, not available in all countries.