Q1 Fiscal Year 2013 Conference CallNovember 13, 2012

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FORWARD-LOOKING STATEMENTSThis presentation contains projections and other forward-looking statements regarding

future events or the future financial performance of Cisco, including future operating

results. These projections and statements are only predictions. Actual events or

results may differ materially from those in the projections or other forward-looking

statements. Please see Cisco’s filings with the SEC, including its most recent filing on

Form 10-K , for a discussion of important risk factors that could cause actual events or

results to differ materially from those in the projections or other forward-looking

statements.

GAAP RECONCILIATIONDuring this presentation references to financial measures of Cisco will include

references to non-GAAP financial measures. Cisco provides a reconciliation between

GAAP and non-GAAP financial information on our website at www.cisco.com under

“About Cisco” in the “Investor Relations” section.

http://investor.cisco.com/financialstatements.cfm

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

• Opening Remarks

• Financial Overview

• Business Overview and Strategy

• Guidance

• Summary and Q&A

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Q1 FY’13 Takeaways

• Revenue growth of 6% in a very challenging market, where many of our peers are reporting declines…

• Profitability growth in double digits, with solid expense management, gross and operating margins exceeding guidance

• Service business continues to grow double digits as customers ask Cisco to partner to build their technology and business architectures for the future.

• Generated $2.5B cash from operations this quarter…over 3% dividend yield, continuing to drive shareholder value.

• Pleased with order growth in US Enterprise of 9%, US Service Provider of 13%, and US Commercial of ~5%.

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

• Opening Remarks

• Financial Overview

• Business Overview and Strategy

• Guidance

• Summary and Q&A

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Q1 FY’13 Geographic Revenue and Gross Margin

Gross Margin

Net Sales Percentage

$M (except percentages)

Q1

FY’12

Q4

FY’12

Q1

FY’13

Q1

FY’12

Q4

FY’12

Q1

FY’13

Americas $6,588 $6,895 $7,023 63.1% 62.7% 63.6%

EMEA 2,845 2,820 2,841 61.7% 61.6% 63.3%

APJC 1,823 1,975 2,012 60.8% 59.6% 58.5%

Geographic Total $11,256 $11,690 $11,876 62.4% 61.9% 62.7%

Historical product revenue is available on our website at http://investor.cisco.com under “Financial Reporting” in the

“Investor Relations” section.

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

Q1 FY’13 Key Financial Measures

Q1 FY’12 Q4 FY’12 Q1 FY’13

Cash and Cash Equivalents and

Investments ($M) $44,388 $48,716 $45,000

Operating Cash Flow ($M) $2,333 $3,088 $2,465

Accounts Receivables ($M) $4,300 $4,369 $3,942

Days Sales Outstanding 35 34 30

Inventory ($M) $1,622 $1,663 $1,709

Non-GAAP Inventory Turns 10.9 11.3 10.5

Purchase Commitments ($M) $4,178 $3,869 $3,725

Deferred Revenue ($M) $12,396 $12,880 $12,623

Product Deferred Revenue ($M) $4,075 $3,707 $3,870

Service Deferred Revenue ($M) $8,321 $9,173 $8,753

Headcount 63,465 66,639 72,360

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Capital Allocation

Q1 FY’12 Q2 FY’12 Q3 FY’12 Q4 FY’12 Q1 FY’13

Share Repurchases ($M) $1,544 $466 $550 $1,800 $253

Dividends paid ($M) $322 $322 $432 $425 $744

Total ($M) $1,866 $788 $982 $2,225 $997

Share Repurchase Program*

Amount

Purchased ($M)

Number of

Shares (M)

Avg. Price Per

Share

Q1 FY’13 Purchases $253 15 $16.44

* Approximately $5.6B remaining authorized funds in repurchase program as of the end of Q1 FY’13.

Q1 FY’12 Q2 FY’12 Q3 FY’12 Q4 FY’12 Q1 FY’13

Dividends per Share $0.06 $0.06 $0.08 $0.08 $0.14

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Q1 FY’13 non-GAAP Income Statement Highlights

$M (except per-share amounts and percentages) Q1 FY’12 Q4 FY’12 Q1 FY’13

Net Sales $11,256 $11,690 $11,876

Year/Year Growth

Product

Service

5%

8,952

2,304

4%

9,150

2,540

6%

9,297

2,579

Gross Margin 62.4% 61.9% 62.7%

Product Gross Margin

Service Gross Margin

61.3%

66.8%

60.4%

67.1%

61.5%

66.9%

Operating Expenses 4,080 4,022 4,128

OPEX (% of Revenue) 36.2% 34.4% 34.8%

Operating Income (% of Revenue) 26.1% 27.5% 27.9%

Net Income $2,322 $2,527 $2,569

Year/Year Growth (4%) 15% 11%

EPS (diluted) $0.43 $0.47 $0.48

Year/Year Growth 2% 18% 12%

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

Q1 FY’13 GAAP Income Statement Highlights

$M (except per-share amounts and percentages) Q1 FY’12 Q4 FY’12 Q1 FY’13

Net Sales $11,256 $11,690 $11,876

Product

Service

8,952

2,304

9,150

2,540

9,297

2,579

Gross Margin 61.2% 60.6% 61.0%

Product Gross Margin

Service Gross Margin

60.2%

65.1%

59.2%

65.5%

59.7%

65.5%

Operating Expenses 4,680 4,714 4,588

OPEX (% of Revenue) 41.6% 40.3% 38.6%

Operating Income (% of Revenue) 19.6% 20.3% 22.3%

Net Income $1,777 $1,917 $2,092

EPS (diluted) $0.33 $0.36 $0.39

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

Q1 FY’13 GAAP to non-GAAP Reconciliation (Operating Income)

$M (except percentage) Q1 FY’13

GAAP Operating Income $2,651

Share-based compensation expense 309

Amortization of acquisition-related intangible assets 256

Impact to cost of sales from purchase accounting

adjustments to inventory24

Other acquisition-related costs 15

Significant asset impairments and restructurings 59

Total non-GAAP adjustments $663

Non-GAAP Operating Income

% of Revenue

$3,314

27.9%

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

• Opening Remarks

• Financial Overview

• Business Overview and Strategy

• Guidance

• Summary and Q&A

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13

Q1 FY’13 – Revenue Highlights

$M

Y/Y Growth

%

Switching $3,616 (2%)

NGN Routing 2,052 (2%)

Service Provider Video 1,148 30%

Collaboration 1,020 (8%)

Wireless 486 38%

Data Center 417 61%

Security 338 6%

Other Product 220 (12%)

Service 2,579 12%

Total Cisco $11,876 6%

30%

17%

10%

9%

4%

3%

3%2%

22%

Revenue % of Total

Switching

NGN Routing

SP Video

Collaboration

Wireless

Data Center

Security

Other

Service

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

Q1 FY’13 Product Orders: Geographic Regions & Customer Segments

Geographic Region Y/Y Growth %

Americas 2%

EMEA (10%)

APJC 7%

Total Cisco 0%

Customer Segment Y/Y Growth %

Enterprise (1%)

Public Sector (6%)

Commercial* 1%

Service Provider 3%

Total Cisco 0%

* Includes Consumer

Product Book to Bill Slightly under 1

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15

• Opening Remarks

• Financial Overview

• Business Overview and Strategy

• Guidance

• Summary and Q&A

© 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

Forward-Looking StatementsThese presentation slides and the related conference call contain forward-looking statements,

which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act

of 1995. These forward-looking statements include, among other things, statements regarding

future events (such as statements regarding our innovation engine and operational strategies,

operational discipline and execution, the evolution of our industry, major market transitions and

our position with respect to such transitions) and the future financial performance of Cisco that

involve risks and uncertainties. Readers are cautioned that these forward-looking statements

are only predictions and may differ materially from actual future events or results due to a

variety of factors, including: business and economic conditions and growth trends in the

networking industry, our customer markets and various geographic regions; global economic

conditions and uncertainties in the geopolitical environment; overall information technology

spending; the growth and evolution of the Internet and levels of capital spending on Internet-

based systems; variations in customer demand for products and services, including sales to

the service provider market and other customer markets; the return on our investments in

certain priorities, including our foundational priorities, and in certain geographical locations; the

timing of orders and manufacturing and customer lead times; changes in customer order

patterns or customer mix; insufficient, excess or obsolete inventory; variability of component

costs; variations in sales channels, product costs or mix of products sold; our ability to

successfully acquire businesses and technologies and to successfully integrate and operate

these acquired businesses and technologies; our ability to achieve expected benefits of our

partnerships; increased competition in our product and service markets, including the data

center; dependence on the introduction and market acceptance of new product offerings and

standards; rapid technological and market change; manufacturing and sourcing risks; product

defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and

other matters, and governmental investigations; natural catastrophic events; a pandemic or

epidemic; our ability to achieve the benefits anticipated from our investments in sales,

engineering, service, marketing, and manufacturing activities; our ability to recruit and retain

key personnel; our ability to manage financial risk, and to manage expenses during economic

downturns; risks related to the global nature of our operations, including our operations in

emerging markets, currency fluctuations and other international factors; changes in provision

for income taxes, including changes in tax laws and regulations or adverse outcomes resulting

from examinations of our income tax returns; potential volatility in operating results; and other

factors listed in Cisco’s most recent report on Form 10-K filed on September 12, 2012. The

financial information contained in these presentation slides and the related conference call

should be read in conjunction with the consolidated financial statements and notes thereto

included in Cisco’s most recent report on Form 10-K, as it may be amended from time to time.

Cisco’s results of operations for the three months ended October 27, 2012 are not necessarily

indicative of Cisco’s operating results for any future periods. Any projections in these

presentation slides and the related conference call are based on limited information currently

available to Cisco, which is subject to change. Although any such projections and the factors

influencing them will likely change, Cisco will not necessarily update the information, since

Cisco will only provide guidance at certain points during the year. Such information speaks

only as of the date of these presentation slides and the related conference call.