Cisco Capital Overview May 2009 Demos Stogiannidis

Cisco Capital Overview May 2009 Demos Stogiannidis Enterprise Finance Manager Cisco Capital Dubai Ltd (Regulated by the DFSA) Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 1

Agenda § Cisco Capital Overview § Cisco Capital Value-add § Typical Finance Frame Agreements § Q&A Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 2

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 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 3

Cisco Capital Strategy To profitably support the acquisition and deployment of Cisco’s technology solution with creative, flexible, market enhancing financing Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 4

Technology 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. Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential Financing options primarily include loans and leases 5

Who is Financing? 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. Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6

ORGANIZATIONS THAT LEVERAGE Ministry of Health Japan Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 7

Why do Organizations Finance? Flexibility: To accommodate different technology and budget needs, cash flow patterns and streams of income. Presentation_ID whether its budget or technology However, organizations Practicality: of all sizes organizations benefit from the use of can agree on technology and not the ownership three main reasons for choosing finance: Cost effectiveness: © 2008 Cisco Systems, Inc. All rights reserved. helping customers achieve better ROI and minimise unexpected costs and risks Cisco Confidential 8

Benefits of Financing for IT Decision Makers and Directors 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 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 9

Benefits of Financing for Finance Decision Makers & Government Agencies 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 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 10

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 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 11

Cisco Capital Part of Cisco’s Whole Offer Cisco Capital Financing Cisco Services 3 rd Party Equipment Cisco Network Platform Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 12

Cisco Capital versus Generic Financing Organisations Cisco Capital Other finance organisations 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. Long term business initiatives directly aligned with customer and Cisco initiatives. Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 13

The Golden Rule It is the use of equipment that generates profits, not ownership Appreciates Depreciates buy it finance it Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 14

Typical Financial Frame Agreement w/ Government Agencies or large Organizations Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 15

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 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 16

Typical Cisco Capital Loan Scenario CSC finances End-User who orders from Reseller . PO Cisco-BV PO Reseller Invoice - WS Invoice -Retail End-User n en t - M ar gi R e ic Pa ym – In vo op y C y S rit W tho t u en e A ym as Pa ele R & d ol et H ai l Product e ym e nc ina - F k nt ec h it C nts ed Cr me r e u oic stome Doc nv n I a Cu Lo a & P CSC Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 17

Cisco Capital – Continued Strategic Significance “We have $29. 5 B 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 Presentation_ID © 2008 Cisco Systems, Inc. All rights reserved. Cisco Confidential 18

The smarter way to acquire your technology solution Finance your Cisco solution and benefit from: Finance with Cisco Capital and benefit from: Cash flow conservation Spread costs over time, preserve credit and avoid the need for cash investment Lower costs Take advantage of competitive rates and residual values which reduce total cost of ownership Business focus Remove the burden of equipment ownership and disposal Equipment lifecycle management Gain from flexible upgrade, and migration options and easy equipment disposal One solution, predictable payments Combine hardware, software and services into one financial framework. More Cisco expertise. More flexible financing. Maximum flexibility Choose 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 *Usual Cisco Terms © 2008 Cisco Systems, Inc. All rights reserved. approval, not available in all countries. and Conditions apply, subject to credit Cisco Confidential Presentation_ID 19

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