CEO Insights: How Successful Leaders Think – Five Challenges for the Next Five Years, Wim Elfrink,Cisco

Slide 1: How Successful Leaders Think Challenges for the Next Five Years WIM ELFRINK, CHIEF GLOBALISATION OFFICER 13 February 2008 © 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential

Slide 2: Where are all the people going to be? 392 729 5222 305 632 USA 3680 768 Europe 1803 520 796 South America Asia 2000 Africa 2050 Cisco Confidential 2

Slide 3: Back To The Future The World’s Top 10 Economies 1820 2005 2050 China 28.7% U.S. 28.4% China 25.6% India 16.0% Japan 10.6% U.S. 20.3% France 5.4% Germany 6.4% India 16.0% U.K. 5.2% UK 5.0% Japan 3.9% France 4.8% Prussia 4.9% Brazil 3.5% China 4.4% Japan 3.1% Russia 3.4% Italy 3.9% Austria 1.9% Indonesia 2.3% Spain 2.6% Spain 1.9% U.K. 2.2% Canada 2.5% U.S. 1.8% India 1.7% Germany 2.1% Russia 1.7% Mexico 2.0% Source: World Bank/Angus Maddison. The World Economy: Historical Statistics PricewaterhouseCoopers/Michael Milken Institute, Chairman, Fastcures/Goldman Sachs Cisco Confidential 3

Slide 4: Greatest Economic Shift in 100 Years Share of Global GDP* 100% Emerging Economies 75% 50% Developed Economies 25% 1000 1500 1820 1913 1950 2005 2025 *At purchasing power parity Source: The Economist, “The New Titans,” 16 Sept. 2006 Cisco Confidential 4

Slide 5: New Era of Wealth 500M People Urbanised Over Next 5 Years Expanding Middle Class Creates Buying Power Mobility Will Be the Platform Managed/Hosted Services will Connect Rural Areas Cisco Confidential 5

Slide 6: Market Making Opportunities Dubai Singapore India Saudi Arabia Cisco Confidential 6

Slide 7: Why India? India Epitomizes the Human Network The world’s Skilled partners largest with global free market capabilities Economic Culture of growth—top 5 tolerance, diversity economy by 2025 and partnership Skilled English- Proximity speaking to innovation talent at scale and growth Fastest Judicial system growing young enforces IP population protection laws Cisco Confidential 7

Slide 8: Why India? Proximity to Growth, Innovation and Talent Reaching 70% of the World’s Population Cisco West Cisco East Cisco Confidential 8

Slide 9: A Global Innovation Hub Cisco Confidential 9

Slide 10: The Evolution of Globalisation Globalisation 4.0 Globalisation 1.0 (2006-beyond) (started 100’s of years ago) Globalisation 3.0 Globalisation 2.0 (1990’s) (1980’s) Global R&D Global Virtualisation of Manufacturing the Corporate Trade Brain Cisco Confidential 10

Slide 11: Global Collaboration / Web 2.0 Germany London Ukraine Boston D.C. Japan San Jose Azerbaijan Head Quarters Egypt President / UK PM Dubai India China Saudi Arabia India Cisco Confidential 11

Slide 12: Challenges Pervasive Education Command & Control to Collaboration Labor Arbitrage To Innovation Cost Savings are a Bonus Cisco Confidential 12

Slide 13: Cisco Confidential 13