1. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1 [Name] [Title]

2. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2 Total solution financing Alternative source of capital Protection from tech obsolescence equipment lifecycle management Matching benefits with costs Flexibility to upgrade to more green technologies Cash preservation/ minimise upfront investment

3. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3 Ongoing disconnect – ‘do more for less’ while the need for agility and growth Companies using financing to improve working capital and balance sheet positions Technology trends driving IT to replace CapEx approach with more flexible OpEx-based models De-capitalisation of IT projects is an essential business case enabler

4. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4 These trends are driving organisations to look for more flexibility IT Leasing Cloud Computing Software as a Service Managed Services Virtualisation IT Outsourcing Capacity on Demand Manifestations of a broader theme: The need to de-capitalise IT

5. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5 IT Equipment  Stretch lifecycles  Improve utilisation  Used equipment IT Software  Highly selective buys  One-year payback  New service management tools IT Services  Maintain reliability  Improve efficiency  Even more outsourcing Equipment leasing Software financing Cloud economics Lifecycle analysis IT financial mgmt IT is maturing  Lower IT investment budgets  Just-in-time IT spending  Different acquisition models

6. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6 Management costs Energy costs Time to implementation Time to benefits Legacy costs KPIs/ metric alignment

7. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7 Cost of technology increases over time Technology is often used beyond its true economic life Cost of asset disposal Large upfront acquisition costs Operating costs outweigh acquisition costs Difficult to scale and cost on a per user basis Latency of investment and refresh cycles Benefits timing versus costs Balance sheet constraints

8. Cisco Confidential 8 © 2012 Cisco and/or its affiliates. All rights reserved. We are not here to lend money We are here to provide solutions

9. Cisco Confidential 9 © 2012 Cisco and/or its affiliates. All rights reserved. Diversification of lending Purchasing simplification Vendor accountability CapEx preservation Short-term OpEx availability OpEx predictability The decision is not only what technology to acquire, how to acquire the right technology is just as critical

10. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10 Business and technology alignment  Synchronicity of business and technology change Business and technology alignment  Synchronicity of business and technology change Technology change  New projects/ initiatives  Technology updates/ end of useful life Technology change  New projects/ initiatives  Technology updates/ end of useful life Financial Architecture  All stages of your technology lifecycle  Driving greater alignment and responsiveness Financial Architecture  All stages of your technology lifecycle  Driving greater alignment and responsiveness

11. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11 ‘The new reality’ Lending criteria remain challenging Rates are low but there is less money available. Cash preservation is critical Tension between managing cashflow while investing for future growth Impact on our customers Spending is being scrutinised CIOs are being held more responsible for business results IT must link to driving business results not simply technology

12. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12 Capital optimisation Flexible end-of-lease options Lower cost of acquisition Expenses matched with arrival of benefits Tailored financial solutions Attractive migration choices Optimised lifecycle management Less financial and operational risk Maximised shareholder value Maximised shareholder value

13. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13 ‘Better way of using our working capital’ Obsolescence protected ‘Makes Cisco affordable’ ‘Stretched out cost to match revenue coming in’ ‘Pay as you go’ De-risked swapping Partner and blades ‘Scale out’ capabilities ‘…and speeds up ROI’ Maximised budget

14. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14

15. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15 Benefit Step Financing Multi-Term Financing Pay As You Grow Flexible Demand Lower upfront cost of acquisition Immediate budget creation Flexible payments Match payments to business benefit Accelerated breakeven Off balance sheet financing Pay as you grow benefits Improved asset management Faster ramp-up through staged capacity Ability to evaluate/ return unused buffer capacity Variable billing on a usage basis above minimum commitment

16. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16 Pay less in the early stages of the Cisco Data Center implementation and ‘step up’ payments over time. Allows better alignment of costs to business benefits. Time (Months) 60 30 15 45 Financing Payments Committed Payments Customer Payments to Cisco

17. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17 Forgo the upfront purchase of server capacity that is not immediately required, and have the flexibility to refresh blades more frequently over time. Accelerate the time to break-even on the data center investment. 636..................................................................60241218300 Time (Months) Blades/ Expansion Cards Chassis & Base Kit Blades/ Expansion Cards Committed Payments Customer Payments to Cisco

18. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18 Ready-to-use, continuous replenishment, on-site inventory with payment deferral, payments financed 636..................................................................60241218300 Time (Months) Committed Payments Customer Payments to Cisco Base capacity $ $ $ $ $ $ $ $ Deferred invoice in arrears demand Buffer capacity $ $

19. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19 A shared-risk consumption model for Cisco Unified Computing System with payments based on usage Time (Duration of Contract) Customer’s Payments to Cisco Fixed payment locked into a lease/ loan Variable payments billed monthly as used usage Baseline capacity

20. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20 I N T E R N A L

21. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21 Sky Bet primarily offer an online sports betting service Sky Poker is one of the UK's leading online poker rooms Sky Vegas is where you can find all the best games all in one place Sky Bingo lets you play bingo online and connect with a great community of bingo players Customer Challenge Sky Bet needed a flexible solution to assist with their seasonal business Sky Bet wanted a partner to share the risk of capacity utilisation Sky Bet needed a flexible technical solution that delivered consolidation, efficiencies and ease of operational use

22. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22

23. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23 Payments to Cisco Time Initial commitment aligned to baseline capacity requirements 100% equipment deployed day one for maximum capacity 75% initial base commitment (x blades) 25% variable capacity (flexible demand) (x blades) Initial commitment charged quarterly in advance – $ / blade / month Monthly report to measure active blade usage on UCS Flexible demand blades charged quarterly in arrears – $ / blade / month

24. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24 © 2012 Cisco Systems, Inc. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (1009R) 24 Internal Case Study Gaming Cisco Capital Flexible Demand provides Cisco with first UCS pay-per-use model "Breaking ground with new business models is always challenging but Cisco Capital gave us real differentiation and was one of the major factors in successfully displacing HP from the data centre.“ Elliott Handworker Cisco Account Manager Customer Scenario HP server infrastructure struggling to cope with demand spikes from large sporting events and in-play betting markets Big sales challenges: technical team resistant to change; while procurement wanted to drive a pricing discussion Solution Cisco UCS and Nexus solution acquired using new Flexible Demand model from Cisco Capital, a first for Cisco worldwide Enables Sky Bet to rapidly spin up UCS blades when demand for compute power peaks and turn them down during quieter periods Cisco Capital Significance For the customer: True capacity on demand (customer pays 75% baseline commitment with 25% buffer); costs closely aligned with income; further savings from operational efficiencies For the Cisco account team: Displaced HP from the account; opportunity to position Cisco Intelligent Automation for Cloud and sell through to other Sky businesses; global first and replicable pay-per-use model Find more examples of how our customers are using financing from Cisco Capital

25. © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25 We can create a robust business case that supports the business and IT strategy Projects must be proven to provide faster payback, with less operational risks in order to be considered for approval This is further compounded by traditional funding models being unable to satisfy standard key financial metrics such as cost of capital, ROI, PPU These factors are driving a stronger three-way partnership between the CEO, CFO and CIO. This team is collectively responsible for combining IT investment with both business strategy and financial decisions Cisco Capital is your enabler.