Cisco Corporate Overview

Market Capitalization Leadership

Cisco

Cisco $146B

$110B

Top 12
Competitors Top 11
Competitors
$71B Top 11
$60B Competitors
Cisco
$24B
$10B

January 1995 November 2005 May 2010

 Market Share Leadership
Security Digital Video: IPTV Switching: Modular/Fixed
100% 100% 100%
Cisco/SA
80% 80% Cisco/SA 63% 80%
71%
60% 36% 60% 60%
Cisco
40% 40% 40%

20% 20% 20%

0% 0% 0%

Voice Wireless: LAN Storage: Area Networks

100% 100% 100%

80% 80%
Cisco 57% 80%

60% 60% 60%

31%
40%
Cisco
40% 40%
Cisco
25%
20% 20% 20%

0% 0% 0%

Routing: Edge/Core/Access Networked Home Web Conferencing

100% 100% 100%

80% 80% 80%

Cisco
60% 57% 60%
Linksys
39% 60%
50%
40% 40% 40%
Cisco/WebEx
20% 20% 20%

0% 0% 0%
 Market Share Leadership

25% 50% 57% 63% 57% 39% 71% 36% 31%

Only company with leadership across all segments

Integration as sustainable Diverse39product portfolio for

57%
competitive advantage
%
long-term stability
Strong Geographical Balance

Total $10.4B 27% Y/Y

$5.6B $0.4B $1.1B $1.1B $2.1B

29% Y/Y 25%Y/Y 30% Y/Y 41% Y/Y (15%) Y/Y

U.S. and Emerging Asia

Japan Europe
Canada Markets Pacific

Q3 FY10 Fiscal
Revenue by Geography
The Network as the Platform…

―Cisco’s strategy is based on

catching market transitions—the
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 connectivity—to the
platform that will change the way
we work, live, play and learn.‖
John Chambers,
Chairman and CEO, Cisco
 Market Transitions
Our strategy is guided by the market
transitions that affect our customers.

Collaboration/
Web 2.0

Network as
Platform

Network of
Networks

All in One:
Data/Voice/Video

1997 2000 2006 2008 - 2009

 The Network as the Platform…

3–5 Year Goals Cisco Strategy FY ’10 Initiatives

Business
Architecture

3-5 Year Intelligent

Goals Initiatives
Information Network

Technology
Architecture
 Cisco: The Convergence Innovator
One Seamless, Transparent Customer Experience
Mobility

Video
Service Public
Voice

Enterprise Small Consumer Commercial

Provider Sector

Data

the
network as the
Information Entertainment
Data platform Video

Freedom Mobility Voice Communications

Creating Sustainable Differentiation
Through Platform Leadership

Architectural Plays

Solutions &
Business Models

Systems

Products
 collaboration
customers
employees
culture community

Cisco allows people to connect locally and globally

That’s the Human Network

a place where everyone is connected
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
 Market Giving Back
Transitions
Trust/
Fairness/
Open Integrity
Communication

Inclusion Continuous
Improvement/
Stretch Goals
Innovation
Customer
Success
Profit
Quality culture Contribution
Team (Frugality)
No
Technology
Religion

Empowerment Collaboration/
Teamwork

Drive
Fun Change
 Cisco’s customers
drive our strategy—we deliver long-term

culture relationships and customer satisfaction

based on customer needs

Global Business Architecture + Services-led Cisco

Approach Technology Architecture Solutions 3.0

Business
Architecture

Network as the
Platform

Technology
Architecture
 1/3
culture 1/3
sales

engineering
employees
…are our competitive
1/6 service
advantage
1/6 other

68K+ 165+ 550+

employees countries offices
 the idea of
community
culture no longer
applies to just

towns

cities

or countries
community

yours
is wherever you need to interact.
 Volunteerism
Networking
Academy

we believe community
belongs to everyone.

Make Every Connection

a Green Connection
Sustainable
Business Practices
technology
Innovation as a
means of evolving
through…
Build Buy

Partner

Go-to-Market /
Investment Strategy
 $5.2B+
R&D Investment
Annually
20,000+ Build 700
Engineers Patents Filed
Annually

30 5000
Major Labs Patents
Worldwide Internal Issued
Innovation
 R&D Commitment

$5.2B
16%
15% 14%

6%
3%

IBM Microsoft
Cisco Intel HP

Internal
Innovation

R&D as Percent of FY09 Revenue

Source: Yahoo Finance, Company Financial Statements, analyst
estimates used for IBM, Intel and HP FY09
 Market
Expansion

Market New Market

Acceleration Entry

Buy

Acquisition
Strategy
 Best In
Class

Mutually Long-Term
Beneficial Partnership

Partner

Go-to-Market /
Investment Strategy
―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
 Cisco’s History of Customer Satisfaction

10+ years of Central part of Customer

history— Cisco’s culture satisfaction tied
formally tracking to the bonus
customer plan
satisfaction

5
4.41 4.44 4.43
4.37 4.37 4.36
4.33 4.33 4.30 4.33
4.22
4.06 4.15
4.01

3
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: Cisco annual survey; measured on a scale of 1 to 5 in fiscal years

history culture customers technology
welc ome to
the human network.