1. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 1 Cisco Capital Overview Zeljko Spoljaric – Leasing Account Manager Hundriatics

2. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 2 Cisco Capital Overview (CSC)  100% owned captive finance company  Incorporated in 1996  200+ employees worldwide  120+ employees in Europe & Emerging markets  Local presence in UK/I, France, Germany, Netherlands, Italy, Spain, Russia, Nordics, CEE

3. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 3 Subsidiary Partner CSC coverage - Europe

4. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 4  CSC co-operates with banks and leasing companies in CEE in order to provide customers with competitive: – Leasing solutions or – Loan facility proposals.  CSC-deal classifications: - High touch deals: above $500K, needs individual approach and CSC involvement, mainly large players, exceptionally smaller deals as well that do not fit conditions of easy lease program… - Easy lease programs: up to $40-50K, daily CSC involvement not needed (take it or leave it prg!!!), commercial and Mid market customers Classification of CSC-deals

5. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 5 The 5 basic plays of CSC lease 1.The basic finance lease 2.Cash flow management – flexible repayment 3.Operating lease – residual value - FMV 4.Sale and lease back 5.Technology migration (6.) Loan with NWB

6. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 6 1. Cash Flow Play (finance lease) Year 1Year 2Year 3 COMCOM + 3 year lease 12 payments versus Today $1.2m Purchase [COM - cost of money] spend $400k this year versus $1.2m spread budget CUSTOMER BENEFITS

7. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 7 2. Flexible Repayment COMCOM + Year 1Year 2Year 3 $1.2m Purchase versus 3 year lease STEP payments improved cashflow match IT costs with economic benefits CUSTOMER BENEFITS Today $1.2m Purchase

8. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 8 3. Operating Lease COMCOM + Year 1Year 2Year 3 3 year Operating lease = Operating Expense (OPEX”) versus utilise all available budgets to achieve business value via IT improve financial ratios ( Return On Assets ) CUSTOMER BENEFITS Today $1.2m Purchase = Capital Investment (“CAPEX ”) End of lease options: - return of equipment to lessor - lease extension - purchase by the lessee for FMV (fair market value)

9. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 9 COMCOM 4. Sale and Lease Back Year 1Year 2Year 3 + versus COMCOM + 3 year lease 12 payments $1.2m Purchase Today “Legacy Kit” $300k Book Cost (depreciates) / Lease Cost $300k “Sale” CASH paid From Capital To Customer technology benefits today without big unbudgeted Year 1 costs. this year’s impact of IT transition are softened by “sale” of legacy kit. CUSTOMER BENEFITS

10. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 10 5. Technology Refresh At month 18 6 payments made = $480k Year 1Year 2Year 3TodayYear 4Year 5 ($1.2m Sale) $960k funded RV Same Lease payments Extended by Another 6 Quarters COMCOM + $480k Sale New AT Kit better technology roadmap and/ or better meet changing business needs during 3 years without increase in quarterly costs refresh mix (%) can be agreed up front CUSTOMER BENEFITS

11. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 11 Financed project opportunities  Telecom service providers: – Wireline investments: fixed line providers, voice or data related developments – Wireless investments: mobile operators, voice or data related developments – Cable TV projects – Triple play (voice, internet, IPTV)  Public sector: – Voice or data development, LAN/WAN infrastructure of institutions, universities – Digital city projects  Enterprise, commercial projects: – Voice, data, LAN/WAN infrastructure – Datacenters, outsourcing, etc..

12. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 12 WORK-FLOW

13. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 13 Structure Sale and purchase contract Customer Lease contract Support, maintanance partner Guarantee or

14. © 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 14 Thank you for your time!