Q2 Fiscal Year 2011 Conference Call9 February 2011

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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/results.cfm

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 filings on

Form 10-K and Form 10-Q, 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.

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Q2 Key Takeaways

• Overall strategy and architectural approach is on course and gaining momentum.

• Revenue growth in New Products category up 15% y/y, Data Center up 59%, Collaboration up 37% and Wireless up 34% y/y.

• Transition to next generation switching portfolio is going well.

• Strength in global Service Provider, Enterprise and Commercial segments.

• Services becoming a key and integral aspect to both sales and delivery capabilities.

• Strong balance sheet and cash position.

• Focused on execution and moving the business forward.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4

Q2 FY’11 – Revenue Highlights

$M

Y/Y

Growth

%

Routers $1,672 4%

Switches 3,151 (7%)

New Products 3,202 15%

Other 211 7%

Services 2,171 18%

Total Cisco $10,407 6%

Y/Y Growth

%

New Products:

Video Connected Home (4%)

Collaboration 37%

Security (9%)

Wireless 34%

Data Center 59%

16%

30%

31%

2%

21%

Revenue % of Total

Routers

Switches

New Products

Other

Services

Certain immaterial reclassifications have been made to prior period product amounts.

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Q2 FY’11 Product Orders: Geography & Customer Market

Geographic Segment Y/Y Growth %

U.S. & Canada 7%

European Markets 2%

Emerging Markets 27%

Asia Pacific Markets 8%

Total Cisco 8%

Product Book to Bill Greater than 1

Customer Market Y/Y Growth %

Enterprise(excluding Public Sector)

10%

Public Sector 7%

Service Provider 9%

Commercial 11%

Consumer (15%)

Total Cisco 8%

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Q2 FY’11 Non-GAAP Income Statement Highlights

$M (except per-share amounts and percentages) Q2 FY’10 Q1 FY’11 Q2 FY’11

Net Sales 9,815 10,750 10,407

Year/Year Growth

Product

Service

8%

7,976

1,839

19%

8,700

2,050

6%

8,236

2,171

Gross Margin 65.6% 64.3% 62.4%

Product Gross Margin

Service Gross Margin

65.6%

65.9%

64.0%

65.7%

61.1%

67.0%

Operating Expenses 3,466 3,897 3,944

OPEX (% of Revenue) 35.3% 36.3% 37.9%

Operating Income (% of Revenue) 30.3% 28.1% 24.5%

Net Income 2,339 2,411 2,078

Year/Year Growth 25% 14% (11%)

EPS (diluted) $0.40 $0.42 $0.37

Year/Year Growth 25% 17% (8%)

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Q2 FY’11 Geographic Revenue and Gross Margin

Gross Margin

Net Sales Percentage

$M (except percentages)

Q2

FY’10

Q1

FY’11

Q2

FY’11

Q2

FY’10

Q1

FY’11

Q2

FY’11

U.S. & Canada $5,324 $5,878 $5,546 64.5% 64.4% 62.2%

European Markets 1,939 2,018 2,112 68.2% 65.2% 65.0%

Emerging Markets 1,104 1,215 1,188 65.9% 62.3% 60.0%

Asia Pacific Markets 1,448 1,639 1,561 66.2% 64.3% 61.2%

Segment Total $9,815 $10,750 $10,407 65.6% 64.3% 62.4%

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8

Q2 FY’11 Non-GAAP Income Statement Highlights

$M (except per-share amounts and percentages) Q2 FY’10 Q1 FY’11 Q2 FY’11

Net Sales 9,815 10,750 10,407

Year/Year Growth

Product

Service

8%

7,976

1,839

19%

8,700

2,050

6%

8,236

2,171

Gross Margin 65.6% 64.3% 62.4%

Product Gross Margin

Service Gross Margin

65.6%

65.9%

64.0%

65.7%

61.1%

67.0%

Operating Expenses 3,466 3,897 3,944

OPEX (% of Revenue) 35.3% 36.3% 37.9%

Operating Income (% of Revenue) 30.3% 28.1% 24.5%

Net Income 2,339 2,411 2,078

Year/Year Growth 25% 14% (11%)

EPS (diluted) $0.40 $0.42 $0.37

Year/Year Growth 25% 17% (8%)

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9

Q2 FY’11 GAAP Income Statement Highlights

$M (except per-share amounts and percentages) Q2 FY’10 Q1 FY’11 Q2 FY’11

Net Sales 9,815 10,750 10,407

Product

Service

7,976

1,839

8,700

2,050

8,236

2,171

Gross Margin 64.5% 62.8% 60.2%

Product Gross Margin

Service Gross Margin

64.7%

63.7%

62.7%

63.6%

58.9%

64.8%

Operating Expenses 3,962 4,404 4,577

OPEX (% of Revenue) 40.4% 41.0% 44.0%

Operating Income (% of Revenue) 24.1% 21.9% 16.2%

Net Income 1,853 1,930 1,521

EPS (diluted) $0.32 $0.34 $0.27

Q2’11 Net Income includes impairment charges of $155 million related to purchased intangibles,

with $63 million recorded in product cost of sales and $92 million in operating expenses.

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Q2 FY’11 Key Financial MeasuresQ2 FY’10 Q1 FY’11 Q2 FY’11

Cash and Cash Equivalents and

Investments ($M)

39,638 38,925 40,229

Operating Cash Flow ($M) 2,486 1,667 2,609

Accounts Receivables ($M) 4,237 4,471 4,620

Days Sales Outstanding 39 38 40

Inventory ($M) 1,215 1,523 1,602

Non-GAAP Inventory Turns 11.7 10.8 10.0

Purchase Commitments ($M) 3,027 4,048 3,875

Deferred Revenue ($M) 9,657 10,736 11,807

Headcount 65,874 72,605 72,935

Share Repurchase Program*Amount

Purchased ($M)

Number of

Shares (M)

Avg. Price Per

Share

Q2 FY’11 Purchases $1,791 89 $20.15

*Approximately $12.7B remaining authorized funds in repurchase program as of the end of Q2 FY’11.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11

Cisco Capital Financing PortfolioJanuary 29, 2011

Financing Receivables ($M) (1) Financing Guarantees ($M)

TotalLease

Receivables

Financed

Service

Contracts

and Other

Loan

ReceivablesSubtotal

Channel

Partner

End-User

CustomersSubtotal

Gross

amount less

unearned

income

$2,512 $2,284 $1,295 $6,091 $383 $300 $683 $6,774

Allowances

for credit

loss

(233) (27) (84) (344) - - - (344)

Deferred

revenue(131) (1,757) (294) (2,182) (258) (273) (531) (2,713)

Total $2,148 $500 $917 $3,565 $125 $27 $152 $3,717

(1) The losses we have incurred historically with respect to financing receivables have been immaterial, consistent

with the performance of an investment grade portfolio.

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GAAP Reconciliation Guidance for Q3 FY’11

Q3 FY’11

Impact of share-based expense $0.05 - $0.06

Impact of ongoing amortization of purchased intangible assets and other acquisition-related costs $0.03 - $0.04

Total impact to GAAP EPS $0.08 - $0.10

Share-based expense is expected to be recorded to the various line items of the GAAP income statement in similar proportions as Q2 FY’11.

Ongoing amortization of purchased intangible assets and other acquisition-related costs will be reported as GAAP operating expenses, cost of sales, or other income (loss) as applicable.

Guidance assumes no additional acquisitions, asset impairments,

restructurings, tax or other events, which may or may not be significant.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13

Q2 Summary

• Overall strategy and architectural approach is on course and gaining momentum.

• Revenue growth in New Products category up 15% y/y, Data Center up 59%, Collaboration up 37% and Wireless up 34% y/y.

• Transition to next generation switching portfolio is going well.

• Strength in global Service Provider, Enterprise and Commercial segments.

• Services becoming a key and integral aspect to both sales and delivery capabilities.

• Strong balance sheet and cash position.

• Focused on execution and moving the business forward.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

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 future growth, strategy, operations, and

results, and developments in our geographic, customer and product markets) 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 market adjacencies and 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; increased competition in our product and service markets, including the

datacenter; 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 and engineering 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 reports on Form 10-K and Form 10-Q. 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 reports on

Form 10-K and Form 10-Q, as each may be amended from time to time. Cisco’s results of

operations for the three and six months ended January 29, 2011 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.