John Chambers FAC Presentation Final

8/12/2019 John Chambers FAC Presentation Final

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John ChambersChairman and CEO

December 12, 2013

2013 Financial Analyst ConferenceOur Strategy & Opportunity

2013 Cisco and/or its affiliates. All rights reserved.


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Forward-looking StatementsThis presentation contains projections and other forward-looking statements regarding futurfuture financial performance of Cisco, including future operating results. These projections aonly predictions. Actual events or results may differ materially from those in the projections olooking statements. Please see Ciscos filings with the SEC, including its most recent filings

10-Q, for a discussion of important risk factors that could cause actual events or results to dthose in the projections or other forward-looking statements.

GAAP ReconciliationDuring this presentation references to financial measures of Cisco will include references tofinancial measures. Cisco provides a reconciliation between GAAP and non-GAAP financialwebsite at www.cisco.com under About Cisco in the Investor Relations section.

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

http://localhost/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/Temporary%20Internet%20Files/Local%20Settings/My%20Documents/IR/Earnings/FY08/Local%20Settings/My%20Documents/IR/Earnings/FY08/Q2%20FY08/Earnings%20Slides/investor.cisco.com/results.cfm


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Whats On Your Mind About Cisco

Pace of Change2 Implications

What Happened in Q1? Q2 Guidance?

Capture Market TransitionsCloud, SDN

Ability to Maintain Market Share, Margins

Why is Cisco More Relevant to Customers Today and Tomorrow?

What Cisco Looks Like in 3+ Years?

Commitment to Shareholder Value



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ChangingThe World is



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And ItsChanging Fast

Pace Of Ch

TechnologyTransitions

T

MarketTransitions



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The Only Constant is Change

Business Implications

Technology Transitions

Mobile New Breedof AppsCloud Data &Analytics

ExperienceExpectations

Growth &Innovation

New BusinessModels

Agility &Speed



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Cisco The DisruptorTechnology Transitions

Bridged PCVoice andData

DedicatedFixedCircuitShared

CloudAny

Device

Video

VirtualMobile

PacketSwitched

Routed

MOVING TO IPDC



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Our Competitive Advantage

MarketTransitions

CuD

Architectures(5 Phases)

SustainableDifferentiation



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Innovation Engine In the Last Year

Catalyst 3850Catalyst 6800Nexus 7700

ISR 4400CRS-XNCS

UCS + WhiptailACI + Nexus 9K

Cisco ExpresswayJabber Guest

MX300Security Services

ASA Virtual FirewallNG Security Appliance

MerakiCaridenBroadhop

Intucell SystemsCognitive Security

SolveDirectUbiquisys

JouleX

Composite SoftwareSourcefireWhiptailInsieme

*P

Build PartnerBuy



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Q1 FY14 Results

Financial Highlights Geographical Highlights Product & Servic

63.0%62.0%

66.6%

58%

60%

62%

64%

66%

68%

Total Product Services

Y/Y



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Nexus 9K

NePlatfo

NCS

ServiceProvider

Three Focus Areas

EmergingMarkets



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Nexus 9K

NePlatfo

NCS

ServiceProvider

EmergingMarkets

If orders in emerging, service provider and high end co

grown consistent with Q4, product orders would have b

(not -4%).



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What Happened Q3 / Q4Q1... Pace of Ch

Top 5 India Russia Brazil China Mexico Rest

Q3 13% 29% 16% 14% 8% 4% 13%

Q4 1% 19% 0% -1% -6% 12% 15%

+6%

-11%

Europe*

+12%

-3%

APJC

+12%

+5%

US Comm

+9%

0%

US ENT

+4%

-11%

US PS

Emerging


*Developed Europe. Metrics are orders, Percentages reUpper Section refers to Q3FY13 & Q4FY13. Bottom section represents growth rate range from a period of highest to lowe


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Emerging Countries

Long-Term Growth 6-10%

What / Why Q3/Q4Q1

Economic

Currency

Always 23 Unique

Areas Improve

Vision / Strategy

Outcomes / Results

ArchitecturesPhase Imp

Focus Entire Company

CSR

Digitize Country

Numerous external factors affect supply and demand over which we have limited control. Cisco seeks to take these factors into accounActual results could differ materially from these hypothetical scenarios due to a variety of factors listed in Cisco SE

Top 5 13%-21%

Total = 13%-12%



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Israel 1stDigital Country / Innovatio

2X Growth 4 Years

Forecast Double Digit Next 3

Growth

Jobs

Inclusion

Education

Healthcare

Innovation

Urbanization S+CC

Security



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Reality of Service Provider Today

Service ProviderCost and Profits

Service ProviderA

0%

15%

65%

75%

2009 2013

OPEX Revenue

CAPEX / Revenue

2009

Fixed Data

Fixed Voice

Mobile Voice

Mobile Data



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Service Provider Q114 Product Bookin

-13

-12

-11

-10

-9

-8

-7

-6

-5

-4

-3

-2

-10

-6%Product Transitions

/ New Platforms

-2%

-13%

Set-topsSP Video

Edge-2%



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Service Provider Focus

Outcomes / Results OpEx / CapEx / Speed Resource Allocation

Speed of Decision Operational Excellence

BusinessEntities

CustomerSegment

OpEx / CapEx ARPU Speed Services

Monetization

Innovation / Differentiation

Decisions on Architectures Lengthening

SP Outcomes / Results An Expanded SP A

GeographicCisco Innovation

(Disruptor)

ArCust

#1 Products

Differentiatio



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Recent New Platforms and Product Refre

Nexus 9K CRS-X

NewPlatforms

NCS

Switching & Storage Catalyst 2900 refresh

Unified Access Catalyst 3850

Nexus 6000

Nexus 7700 with F3

Nexus 9000

SAN refresh 16GB

Wireless 1K, 2K and 3K Access Points

refresh (incl. AP3700 11ac)

Next Generation Routing CRS-X

NCS (6000 and 4000)

ISR 4400

Cloud Services Routers

Security Mid Range ASA refresh

Collaboration

Endpoints

Cisco DX650 Video phones

Cisco Speaker Track 60 Camera

Cisco TelePresence MX300 G2

Infrastructure

TelePresence Server on VirtualMachine

Cisco Collaboration Systems Rel 10.0 WebEx enabled TelePresence

Conferencing

Jabber Guest

Cisco WebEx MeetingsServer Update

Se UC

SP

Soft

Vid

VaSepla

SoVid

NeSn

for

Infra

DSDa

EnAn

Product Margin Strength & St



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Segments

ServiceProvider

Enterprise Commercial



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Enterprise / Commercial#1 IT Partn

Vision / Strategy

5 QuartersUS Enterprise 8-10%, US Commercial =

Customer

Outcomes / Results

Market Transitions

Architectures

#1 Products

Software / Hardware / ASICs / Services Channel Leadership CRN 100 Leaders

Expanding Sales Resources

Customer S

Innovate B

Disruptor

IoE, ACI, S

CIO Confe #1 IT Partn

BUSINESSENTITIES

CUSTOMERSEGMENT

GEOGRAPHIC


Numerous external factors affect supply and demand over which we have limited control. Cisco seeks to take these factors into accounActual results could differ materially from these hypothetical scenarios due to a variety of factors listed in Cisco SE

Ci G th D i Ti d t T h l T


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Cisco Growth Drivers Tied to Technology TrReal Power of Cisco Architectures

Driving Growth Now Invest for Growth

Mobility VideoCloudEmergingMarkets

Services CollabSoftware Security

Core Routing & Switching is the Foundatio

Architectures ASICs + Software + Hardware +


L di M k t Sh D li A hit t


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50%

#1

TelePresence

40%

#1 Web

Conferencing22%

#2 X86

Blade Servers

45%

#2 Storage:

Area Networks

31%

#1 Network

Security

Leading Market ShareDeliver Architectures(Q3 CY13)

#1 ENTRouting

75%

#1#1 Switching:Modular/Fixed

66%

#1 Voice

38%

#1 SPRouting

53%

Source: DellOro, ACG, S 2013 Cisco and/or its affiliates. All rights reserved.


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A hit t f M bil S i P id


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Architecture for Mobile Service ProvideTake Our Weakness, Make It Our Stren

UNIFIED DATA CENTER

INTELLIGENT NETWORK

CLOUD SERVICES MOBILE / FIXED

CLIENT ACCESSNext Generation

HotSpot (2.0)

IP Core

Packet Core

RAN Backhaul

Foundation for the Next-Generation Interne

Small Cell Gateway

ASR 9000/5000

UCS / Nexus

Macro Cells2G/3G/4G

Small CellsWi-Fi Femto

Any to Any(Devices / VideoInteroperability)

Set Top Box



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Architectures



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Appliances to Architecture

W

ContextAware

Functions

IPSFunctions

Ma

Fun

VPNFunctions

Traditional Firewall

Functions



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Cisco Security Architecture

S

E

R

V

IC

E

S

Access Control

C I S C O S E C U R I T Y A P P L I C AT I O N S + 3 R D P A R T Y A P P L I C A T I O

SecurityManagement APIs

Firewall

SEC

RUITYSERVICES

PLATFORM

ASIC Data PlaneINFRASTRUCTURE

E

LEMENTLAYER

Device APIOnePK, OpenFlow, CLI

Cisco Network Operating Systems (Enterprise, Data Center, Service Provide

RouteSwitchCompute Softw

Cisco ONEAPIs

PlatformAPIs

Physical Appliance Virtual

Context Awareness Content Inspection Application Visibility

APIsAPIs

C O M M O N S E C U R I T Y P O L I C Y & M A N A G E M E N T

2013Cisco and/or its affiliates. All rights reserved.


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Network Integrated,Broad Sensor Base,

Context and Automation

Continuous Advanced ThreatProtection, Cloud-Based

Security Intelligence

Agile and OpeBuilt for Scale

Control, Ma

Most Comprehensive Security Approach O

Network Endpoint Mobile Virtual Cloud

Visibility Driven Threat Focused Platform



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24

10 9 8 7 6 4 4 4

-5-15

-5

5

15

25

35

CSCO EXTR ARUN BRCD JNPR ADTN FFIV SHOR RVBD HP

Jan 13 Survey Apr 13 Survey Jun 13 Survey Oct 13 Survey

Equipment Spending Plan Over Next 12 Months SDN in Data CenterCis

More able In-line with peers

5%10%

30%25%

30%

10%10%

30% 30%

20%15%

20%

30%35%

Down 10%Down 5% -10%

Down 0% -5%

Flat Up 0% -5%

Up 5% -10%

Up 10%+

Apr. 2013 Jul. 2013 Oct. 2013

Expected Y/Y Spending on Cisco

Voice of Our Customers

0% 10% 20% 30% 40% 50% 6

ALU

ARISTA

IBM

HP

JNPR

Brocade

CSCO


Source: MoBarclays N


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Voice of Our Customers

No

Yes

NO 92%

Are you considering changing your primarynetworking hardware vendors in the next 12 month

NO 88%

YES 12%YES 8%

2013 2012

Source: Network Purchas 2013 Cisco and/or its affiliates. All rights reserved.


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Why Are Our CustomersSaying This?



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Evolution to Application Centric Infrastructure

2010

Compute

Network

Storage

VIRTUALIZATION

2005

Data

Voice

Video

Network

IP

CONVERGENCE

TodayApp Eco

Applications

Networking, a

Scale With Secu

APPLICATION CENT

INFRASTRUCTUR



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Our Discussion Last Year

APPLICATIONS

PRESENTATION

SESSION

TRANSPORT

NETWORK

DATA

PHYSICAL

OLD MODEL:

Client Server

Applications

Unified PlatformThe Inte

P

ASICS +Hardware +Software +ServicesIntelligent

NEW MODEL:

Mobile - Cloud

Infrastructure



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Plays to All Our Strengths

Today SDN First Generation Very Complex 2 Separate Networks Very Costly, Challenges Reliability / Flexibility

We Will Embrace and Lead NG SDN

Huge Opportunity NG SDN / ACI / Fast IT

Application Centric Infrastructure

Why is SDN Good for Cisco

Client

Server

Mobile

Cloud

App

Economy

Fast

IT

Net

Program


Rewrite Rules Programmability Deploy Across Netw

Cloud / DC, WAN, Access


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Application Centric Infrastructure

I N N O V A T I O N

Physical Virtual ServicesNetworking

AP PL I C AT I O N N E T W O R K PO L I C Y

S I N G L E P O I N T O F M A N A G E M E N T

OpenSource

OpenCommunity

OpenAPIs

S Y S TS O F T W A R E H A R D W A R E A S I C

SeparatesApplications Common Policy

Application Policy Oriented Management Enab

AutomatesandUnifies Physical and Virtual Ne

Leading Edge Performance and Unprecedente

Industrys 1stAdaptive SystemThat Enables Application

Agility, Automation and Visibility



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CAPEX CAPEX / OPEX for

Network +SDN

Cisco Driving Industry Leading TCO Perfor

Source: Cisco , ***Ga

NO WHIADVAN

3 Year

$5,500*

Whitebox$2,500

SwitchSW $1,000

per year

$14 NETWORK $15 NETWORK

$100 VM

TAX

0

20

40

60

80

100

120

140

160

180

Network Virtualization +Merchant Switches

App Centric Cisco

$154

$40

Source: * Deutsche Bank 9/27/2013: Whitebox Switches Are Not Exactly a Bargain;

75% TCOSAVINGS

$40 OPEX***

$25 OPEX**



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Execution Summary 5 Weeks From Launc

1% 11%

11%

77%0%

20%

40%

60%

80%

100%

15%7%

26%

19%

13%20% OtherAPJC

EMEAR

US Commercial

US SP

US Enterprise

PIPELINE ~305 CUSTOMERS

OPEN ECOSYSTEM ACC

OpenStack and Open Daylight WorkinNetApp: FlexpodUCS Direct

(FCS Nexus 9K in Flexpod SAP: ACISAP HANA Deploym

GTM Partnership Traction: Microso

125 Trained, 350 with 1500 Engineers inNext 6 Weeks

DEAL SIZE

BUILDING EARLY CUSTOMER TRACTIONWITH APIC SIMULATOR

RAPID CHANNEL PARTNER SCALE



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of Economic Opportunity

$14.4T R I L L I O N

Internet of Everything



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Cisco Differentiation Achieve Customer

#1 Customer Satisfaction Innovation / The Disruptor

#1 Partner SatisfactionSoftware, ASICs,

Hardware, Services

#1 13 Product Families,#2 in 4, #3 in 2 Scale with Security

End-to-End ArchitecturesRole of Networ

Increasing



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#1 ITCompany

Everything

We Do

Deliver Value for

Shareholders

IoE, ACI, Security,Cloud (New Drivers)

Customers, Partners,Relevance

Our A

Arch



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Thank You



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Forward-Looking StatementsThese presentation slides and related conference call may be deemed to contain forward-looking statements, which are subjecprovisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other thinfuture events (such as statements regarding our growth and strategy) and the future financial performance of Cisco that involvReaders are cautioned that these forward-looking statements are only predictions and may differ materially from actual future evariety of factors, including: business and economic conditions and growth trends in the networking industry, our customer margeographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technolog

and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for prodincluding sales to the service provider market and other customer markets; the return on our investments in certain priorities, inpriorities, and in certain geographical locations; the timing of orders and manufacturing and customer lead times; changes in ccustomer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product cosold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service macenter; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological anmanufacturing and sourcing risks; product defects and returns; litigation involving patents, intellectual property, antitrust, shareand governmental investigations; natural catastrophic events; a pandemic or epidemic; our ability to achieve the benefits anticiinvestments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnefinancial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, includi

emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changregulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; Ciscos most recent reports on Form 10-K and Form 10-Q. The financial information contained in these presentation slides anshould be read in conjunction with the consolidated financial statements and notes thereto included in Ciscos most recent repForm 10-Q, as each may be amended from time to time. Ciscos results of operations for prior periods are not necessarily indoperating results for any future periods. Any projections in these presentation slides and related conference call are based on currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likenecessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information sof these presentation slides and related conference call.

John Chambers FAC Presentation Final

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