Q3 Fiscal Year 2011 Conference Call11 May 2011

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2

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

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.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3

• Business Overview and Strategy• Financial Overview• Guidance• Summary Comments• Q&A

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

Q3 Key Takeaways

• The network is driving the future of the core internet and has clearly become one of the most valuable assets in IT. Cisco is extremely well positioned to lead this change.

• Cisco is taking comprehensive action to:- Simplify and focus our organization and operating model - Align our cost structure given transitions in the marketplace- Divest or exit underperforming operations

• Our main objective is to deliver value to shareholders.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5

Q3 FY’11 Product Orders: Geography & Customer Market

Geographic Segment Y/Y Growth %

U.S. & Canada 2%

European Markets 2%

Emerging Markets 4%

Asia Pacific Markets 14%

Total Cisco 4%

Product Book to Bill Approximately 1

Customer Market Y/Y Growth %

Enterprise(excluding Public Sector)

12%

Public Sector (8%)Service Provider 3%

Commercial 14%

Consumer (49%)

Total Cisco 4%

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6

Q3 FY’11 – Revenue Highlights

$MY/Y

Growth%

Routers $1,860 7%

Switches 3,299 (9%)

New Products 3,262 15%

Other 248 11%

Services 2,197 14%

Total Cisco $10,866 5%

Y/Y Growth%

New Products:

Video Connected Home SP Video Virtual Home

(5%)3%

(33%) Collaboration 39%

Security 2%

Wireless 32%

Data Center 31%

17%

31%

30%

2%

20%

Revenue % of Total

RoutersSwitchesNew ProductsOtherServices

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

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7

• Business Overview and Strategy• Financial Overview• Guidance• Summary Comments• Q&A

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

Q3 FY’11 Geographic Revenue and Gross Margin

Gross Margin

Net Sales Percentage

$M (except percentages)

Q3 FY’10

Q2 FY’11

Q3 FY’11

Q3 FY’10

Q2 FY’11

Q3 FY’11

U.S. & Canada $5,555 $5,546 $5,785 64.7% 62.2% 63.7%

European Markets 2,134 2,112 2,227 67.5% 65.0% 65.2%

Emerging Markets 1,140 1,188 1,271 62.6% 60.0% 64.3%

Asia Pacific Markets 1,539 1,561 1,583 65.4% 61.2% 62.5%

Segment Total $10,368 $10,407 $10,866 65.2% 62.4% 63.9%

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

Q3 FY’11 Non-GAAP Income Statement Highlights$M (except per-share amounts and percentages) Q3 FY’10 Q2 FY’11 Q3 FY’11Net Sales $10,368 $10,407 $10,866

Year/Year Growth Product Service

27%8,4361,932

6%8,2362,171

5%8,6692,197

Gross Margin 65.2% 62.4% 63.9%

Product Gross Margin Service Gross Margin

65.3%64.8%

61.1%67.0%

63.1%67.0%

Operating Expenses 3,768 3,944 3,988

OPEX (% of Revenue) 36.3% 37.9% 36.7%

Operating Income (% of Revenue) 28.8% 24.5% 27.2%

Net Income $2,476 $2,078 $2,349

Year/Year Growth 41% (11%) (5%)EPS (diluted) $0.42 $0.37 $0.42

Year/Year Growth 40% (8%) 0%

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10

Q3 FY’11 GAAP Income Statement Highlights

$M (except per-share amounts and percentages) Q3 FY’10 Q2 FY’11 Q3 FY’11Net Sales $10,368 $10,407 $10,866

Product Service

8,4361,932

8,2362,171

8,6692,197

Gross Margin 63.9% 60.2% 61.3%

Product Gross Margin Service Gross Margin

64.3%62.3%

58.9%64.8%

60.4%65.0%

Operating Expenses 4,285 4,577 4,476

OPEX (% of Revenue) 41.3% 44.0% 41.2%

Operating Income (% of Revenue) 22.6% 16.2% 20.1%

Net Income $2,192 $1,521 $1,807

EPS (diluted) $0.37 $0.27 $0.33

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

Q3 FY’11 Key Financial MeasuresQ3 FY’10 Q2 FY’11 Q3 FY’11

Cash and Cash Equivalents and Investments ($M)

39,106 40,229 43,367

Operating Cash Flow ($M) 2,967 2,609 2,979

Accounts Receivables ($M) 4,078 4,620 4,413

Days Sales Outstanding 39 40 37

Inventory ($M) 1,250 1,602 1,442

Non-GAAP Inventory Turns 11.1 10.0 10.3

Purchase Commitments ($M) 4,043 3,875 4,257

Deferred Revenue ($M) 10,303 11,807 11,699

Headcount 68,574 72,935 73,408

Dividends paid ($M) --- --- 329

Share Repurchase Program*Amount

Purchased ($M)Number of Shares (M)

Avg. Price Per Share

Q3 FY’11 Purchases $1,000 54 $18.39

*Approximately $11.7B remaining authorized funds in repurchase program as of the end of Q3 FY’11.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12

• Business Overview and Strategy• Financial Overview• Guidance• Summary Comments• Q&A

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

GAAP Reconciliation Guidance for Q4 FY’11

Share-based compensation expense is expected to be recorded to the various line items of the GAAP income statement in similar proportions as Q3 FY’11.

Amortization of purchased intangible assets, other acquisition-related costs, and restructuring and other charges 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.

Expected pre-tax charges to our GAAP financial results relating to the early retirement program in Q4FY11 are in the range of $500M - $1.1B. The extent of the restructuring charge will be dependent upon the number of employees who voluntarily elect to participate in the program.

  Q4 FY’11

Share-based compensation expense $0.05 - 0.06 Amortization of purchased intangible assets and other acquisition-related costs 0.03 - 0.04

 Subtotal 0.08 - 0.10 Restructuring and other charges:   Consumer 0.00 - 0.01 Early retirement 0.06 - 0.12

 Subtotal 0.06 - 0.13 Total impact to GAAP EPS $0.14 - 0.23

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

• Business Overview and Strategy• Financial Overview• Guidance• Summary Comments• Q&A

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15

Q3 Key Takeaways

• The network is driving the future of the core internet and has clearly become one of the most valuable assets in IT. Cisco is extremely well positioned to lead this change.

• Cisco is taking comprehensive action to:- Simplify and focus our organization and operating model - Align our cost structure given transitions in the marketplace- Divest or exit underperforming operations

• Our main objective is to deliver value to shareholders.

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16

• Business Overview and Strategy• Financial Overview• Guidance• Summary Comments• Q&A

© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17

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 resource alignment) 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 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 report on Form 10-Q and report on Form 8-K filed on March 9, 2011, as each may be amended from time to time. Cisco’s results of operations for the three and nine months ended April 30, 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.