Technology Innovation for Sustainable Growth

1. Technology Innovation for Sustainable Growth Chris Dedicoat PresidentEurope, Middle East, Africa, Russia

2. Country competitiveness • Cisco Vision & strategy innovation Mega trends TECHNOLOGY ARCHITECTURES eNGINE

3. FLAT GROWTH NO ECONOMIC UPDRAFTS 8 6 4 2 0 2009 2010 2011 2012 2013 2014 2015 2016 -2 -4 World Advanced economies Emerging and developing economies

4. WORLD GDP 2013: EMERGING SURPASSES ADVANCED ECONOMIES 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 46.217 47.163 48.094 49.035 50.014 51.011 52.109 53.105 53.783 52.837 51.906 50.965 49.986 48.989 47.891 46.895 Emerging developing economies Advanced economies

5. 90,000 80,000 70,000 COUNTRY COMPETITIVENESS Norway 60,000 50,000 DRIVES WEALTH GDP PER CAPITA $ 40,000 Qatar 30,000 Switzerland 20,000 10,000 Denmark Ukraine - 3.5 4 4.5 5 5.5 6 Ireland Netherlands WEF Competitiveness Rankings 2012 US UAE Sweden Austria Finland Italy Germany France Belgium Spain Greece UK Israel Portugal Czech Republic Brazil Russia China Poland Romania Saudi Arabia Hungary Turkey South Africa

6. 6 5.5 IT COMPETITIVENESS 5 Switzerland Norway 4.5 Sweden WEF Competitiveness Rankings 2011 - 2012 DRIVES COUNTRYCOMPETITIVENESS USA Finland Germany 4 Netherlands Saudi Arabia Belgium UK 3.5 Denmark 3 China Ukraine Israel Austria 20 30 40 50 60 70 80 France Czech Republic EIU IT Competitiveness Ranking 2011 Spain Poland Ireland Turkey South Africa Italy Brazil Portugal *UAE not included in EIU Report Hungary Romania Russia Greece

7. REGION COMPARISON

8. EMEAR LARGEST GDP WITH LOWER GROWTH AND IT SPEND % GDP$27,824bn (Nominal) GDP $23,389bn (Nominal) GDP$22,356bn (Nominal) Population941m Population3,637m Population2,329m EMEAR AMERICAS APJC GDP per Capita $24,860 GDP per Capita $6,145 GDP per Capita $11,946 GDP growth 2012 2.2% (Real) GDP growth 2012 5.5% (Real) GDP growth 2012 2.0% (Real) IT Spend$662bn (2.8% of GDP) IT Spend$365bn(1.6% of GDP) IT Spend$509bn (1.8% of GDP)

9. GROWTH DRIVERS: MIDDLE EAST, AFRICA & RUSSIA GDP$20,203bn (Nominal) GDP $4,744bn (Nominal) GDP $2,771bn (Nominal) Population1,503m Population281m Population545m MIDDLE EAST / AFRICA EUROPE RUSSIA/ CIS GDP per Capita $3,156 GDP per Capita $9,855 GDP per Capita $37,100 GDP growth 2012 4.0% (Real) GDP growth 2012 4.3% (Real) GDP growth 2012 1.4% (Real) IT Spend$68bn (1.4% of GDP) IT Spend$34bn (1.2% of GDP) IT Spend$408bn (2% of GDP)

10. MEGA TRENDS RESHAPING THE FUTURE NEW MARKET DYNAMICS GLOBALISATIONPACE OF CHANGE PERSONALISATIONDEMOGRAPHICS NEW DEMANDS CIRCULAR ECONOMYFUTURE WORKFORCE SUSTAINABILITY EXPONENTIAL PROGRESSCLOUD, BIG DATA, INTERNET OF THINGS TECHNOLOGY

11. MEGA CHALLENGES OPPORTUNITY FOR TRANSFORMATION NEW MARKET DYNAMICS GLOBALISATIONPACE OF CHANGE MEGA TRENDS MEGA CHALLENGES IMPACT NEW MARKET DYNAMICS INNOVATION INCREASE REVENUE Improve innovation to provide your company with differentiation and a competitive edge in the eyes of customers NEW REVENUE FASTERPRODUCT TO MARKET MORE RECURRINGREVENUE GLOBALISATIONPACE OF CHANGE PRODUCTIVITY REDUCE OPERATING EXPENSES COSTREDUCTION FASTERDECISIONMAKING SMARTUSE VITALRESOURCES Improve productivitythrough cross-functional collaboration and creating a productive borderless organisation PERSONALISATIONDEMOGRAPHICS NEW DEMANDS NEW DEMANDS COUNTRYTRANSFORMATION BUILD NATIONAL INFRASTRUCTURE Socioeconomic development supported by ICT, driving job growth, prosperity and competitiveness of Emerging countries SKILLS EDUCATION SAFETY HEALTHCARE BROADBANDROLLOUT PERSONALISATIONDEMOGRAPHICS CIRCULAR ECONOMYFUTURE WORKFORCE SUSTAINABILITY SUSTAINABILITY CIRCULAR ECONOMYFUTURE WORKFORCE EXPONENTIAL PROGRESSCLOUD, BIG DATA, INTERNET OF THINGS TECHNOLOGY TECHNOLOGY EXPONENTIAL PROGRESSCLOUD, BIG DATA, INTERNET OF THINGS

12. Country competitiveness • Cisco Vision & strategy innovation Mega Trends TECHNOLOGY ARCHITECTURES ENGINE

13. CISCO AT-A-GLANCE • WORLDWIDE LEADER IN NETWORKING FOR THE INTERNET $5.5 BILLION A YEAR IN R&D 100,000+ EMPLOYEES AND CONTRACTORS FOUNDED IN 1984 154 ACQUISITIONS HEADQUARTERED IN SAN JOSE, CA $100+ BILLION MARKET CAPITALIZATION 650+ ACTIVE SUPPLIERS GLOBAL PRESENCE IN 165 COUNTRIES, 475 OFFICES $46 BILLION SALES (FY2012) 80% OF PRODUCTS DISTRIBUTED VIA PARTNERS

14. CISCO — THE TECHNOLOGY INNOVATORTHE FOUNDATION FOR BUSINESS AND IT PRODUCTIVITY HOME NETWORKING COLLABORATION & COMMUNICATION VIDEO ADVANCEDTECHNOLOGIES DATACENTER COMPUTING MOBILITY SECURITY SOFTWARE AND SERVICES ROUTING CORE TECHNOLOGIES SWITCHING

15. WORLDWIDE: MARKET SHARE Sources: Dell’Oro, ACG, Synergy, IDC, Infonetics Network Security Managed LAN Switching (Mod + Fixed) Wireless LAN Cisco Cisco 67.5% 31.8% 56.1% Cisco 31.5% Access Routing Enterprise Voice X86 Bladed Server 84.9% Cisco 38.7% Cisco 15.2% Cisco Storage Area Networking Web Conferencing IP Set-Top-Box 47.9% 41.5% Cisco Cisco 43.0% Cisco

16. STRATEGY AND VISION THE NETWORK CHANGES THE WAY WE WORK, LIVE, PLAY AND LEARN. VISION SOLVE OUR CUSTOMERS’ MOST IMPORTANT BUSINESS PROBLEMS BY DELIVERING INTELLIGENT NETWORKS AND TECHNOLOGY ARCHITECTURES BUILT ON INTEGRATED PRODUCTS, SERVICES AND SOFTWARE PLATFORMS. STRATEGY

17. KEY DRIVERS OF THE FUTURE OF INTELLIGENT NETWORKS…OUR 5 FOUNDATIONAL PRIORITIES LEADERSHIP IN THE CORE: ROUTING / SWITCHING / SERVICES (INCLUDING SECURITY AND MOBILITY) COLLABORATION DATA CENTER / VIRTUALIZATION / CLOUD VIDEO ARCHITECTURE: BUSINESS PROBLEMS SOLVED BY CISCO ARCHITECTURES THAT DELIVER A SERVICE OR CAPABILITY THAT LEVERAGES THE NETWORK.

18. COUNTRY TRANSFORMATION PRINCESS NOURA UNIVERSITY, SAUDI ARABIA BARCELONA SMART CITY VISIONCREATE STATE-OF-THE-ART FACILITY FOR INSTRUCTORS AND STUDENTS COMPARABLE TO THE LEADING INSTITUTES IN THE WORLD VISION GENERATE A NEW ECONOMY BASED ON SUSTAINABILITY, JOB CREATION AND SOCIAL INTEGRATION Cisco scalable, high-bandwidth network for high quality video communications, collaboration architecture, high level information security Improves collaboration and productivity of teachers and students - optimal learning environment Students access information and communicate with peers anytime, and from anywhere on campus or dorms Transform the city into a blueprint for modern urban development through Cisco’s Smart+Connected Communities platform and development of new technology solutions for next generation of city services Services: Pay per light, self-sufficient city blocks for energy, energy monitoring of public buildings, improve rainwater use, smart bus network, smart parking

19. Country competitiveness • Vision & strategy innovation Mega trends TECHNOLOGY ARCHITECTURES ENGINE

20. INNOVATION:A MEANS OF EVOLVING THROUGH INTERNAL INNOVATION ACQUISITIONSTRATEGY BUILD BUY GO-TO-MARKET / INVESTMENT STRATEGY PARTNER

21. $5.5B+ R&D INVESTMENT ANNUALLY 700 20,000+ PATENTS FILED ANNUALLY ENGINEERS BUILD 30 8,000 MAJOR LABS WORLDWIDE PATENTSISSUED INTERNALINNOVATION

22. 15% 13% 13% 6% 2% InternalInnovation R&D COMMITMENT R&D AS % OF REVENUE $5.5B Microsoft IBM Intel HP Cisco Source: Yahoo Finance, Company Financial Statements for latest reported fiscal year

23. MARKETEXPANSION MARKET ACCELERATION NEW MARKETENTRY BUY ACQUISITIONSTRATEGY

24. BEST IN CLASS LONG-TERMPARTNERSHIP MUTUALLYBENEFICIAL PARTNER GO-TO-MARKET /INVESTMENT STRATEGY

25. INVESTMENT STRATEGY ASSESSING ADVANCED/ EMERGING TECHNOLOGIES ENABLING TECHNOLOGIES FOR NEW MARKETS NEW GO-TO-MARKET RELATIONSHIPS INVESTMENT -BACKED ALLIANCES SELF-FUNDED STRATEGIC INVESTMENT MODEL

26. GLOBAL MARKETS CRITICAL TO INVESTMENT STRATEGY $2B INVESTMENT PORTFOLIO SIGNIFICANTLY INCREASING YEAR AFTER YEAR INVESTMENTS OUTSIDE U.S. GROWING RAPIDLY

27. SUMMARY BUSINESS MODELS INNOVATION LONG TERM FOCUS PRODUCTIVITY SHORT TERM AGILITY TECHNOLOGY ARCHITECTURES