© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 1

© 2006 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 2Cisco Confidential

Seizing the opportunity

Tarek GHOUL

General Manager, Gulf North

Leaping Ahead…

Every situation Good or Bad is an opportunity for you

World Trends

Industry Technology YOU

LOW HIGHYour Control

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 4

SituationWorld Trends…

World Trends

Global Crisis

Demographics

Globalization

Energy Trends

You

World Trends

Economic Growth… Ups and Downs

Source: Bureau of Economic Analyses

Stock Price

New Partnerships

Globalization

Job Uncertainty

Competitive Differentiation

Revenue Growth

Industry Consolidation

Employee Morale

Customer Loyalty

Retaining Talent

Cost Containment

Productivity

Concerns & Opportunities In A

Challenging Economy

InnovationTime to Market

Supplier ViabilityQuality

Back To The Future

Source: World Bank/Angus Maddison. The World Economy: Historical Statistics

PricewaterhouseCoopers/Michael Milken Institute, Chairman, Fastcures/Goldman Sachs

The World’s Top 10 Economies

205020051820

China 28.7%

India 16.0%

France 5.4%

U.K. 5.2%

Prussia 4.9%

Japan 3.1%

Austria 1.9%

Spain 1.9%

U.S. 1.8%

Russia 1.7%

U.S. 28.4%

Japan 10.6%

Germany 6.4%

UK 5.0%

France 4.8%

China 4.4%

Italy 3.9%

Spain 2.6%

Canada 2.5%

India 1.7%

China 25.6%

U.S. 20.3%

India 16.0%

Japan 3.9%

Brazil 3.5%

Russia 3.4%

Indonesia 2.3%

U.K. 2.2%

Germany 2.1%

Mexico 2.0%

World Population

Source: Combines data from two different -1000 to 1950 and 1950 to 2050 Census Bureau databases

Pop

ula

tion (

Mill

ions)

Time

Actual Forecast

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000-1

0000

-5000

-2000

-400

200

600

900

1200

1340

1600

1750

1900

1930

1960

1990

2020

2050

Where are all the people going to be?

2050

1803

5222

768

392632

2000

3680

796

729

305

520

USA

SouthAmerica

Africa

Asia

Europe

“Too Many Retirees in China, and Not Enough Young People to Replace Them.”

Because of Birth Restrictions

China Faces a Growing

Productivity Imperative –

Fewer Workers per Retiree

THE MATH IS SIMPLE

Number of workers

Number of retirees

Longevity of retirees

? Productivity per worker

What Are Our Options?

Graphic: NY Times, 6 Aug. 2008

Delay retirement (4 - 7 years)

Cut benefits (~23%, healthcare)

Raise taxes (beginning in 2013)

Raise productivity

Only Two Options:Cut Benefits OR

Raise Productivity

How Do Nurses Spend Their Time?

Collaboration technology can increase nursing coverage up to 33%

Nurses spend an average of 25% of their

duty time waiting for information…

Doctor’s orders Giving information Scheduling services Lab test results

Productivity

Cisco HealthPresence

27 medical tests

Computerized knowledgebase and decision support

NHS Scotland, UHG testing

Remote Consultation

Productivity

Energy Trends

Where the Oil Goes… #1 Transportation

Most of this is Road

Transportation cannot easily shift to electric vehicles

Aviation requires petroleum

1. Reduce travel2. Improve fuel efficiency 3. Find more oil, shale, tar4. Extract more per well5. Shift cars to electricity

Source: ExxonMobil

Ethanol Is Not the Answer…

1 SUV tank of ethanol equals

Enough maize (corn) to feed

1 person for 1 year

Source: Economist, 8 Dec. 2007

1 tank of ethanol for an SUV is…

Net Energy Value = 1.26

Solar Is Part of the Answer but…

Current solar panels take a lot of energy to create… 2.78 years payback period for the energy needed to build the panel

Silicon-based photovoltaic cells are inefficient; new ―dye-sensitized" solar cell feasible

Need storage advances! Solar and Wind require storage. Fossil fuels can be burned when you need the energy. Hydro stored behind dams

Conservation Is the First Step…

Green Data Center

Computing uses 2% all power

DC power consumption:

40% Servers

37% Storage

12% Networks

Use network to monitor and manage power and optimize

air flow

Source: Hot storage—Power and cooling concerns 15 Mar 2007, Storage magazine; Cisco IBSG Analysis

Smart Work Centres

Cisco Connected Bus

Vision: 5000-10000 cars removed by e-Work and Telepresence

Ride public transit, leave the car at home

Connected Urban Development

Information Trades Off Against Resources

More accurate demand information, less waste

Electricity Used

Smart Grid

Predictive Model

Motion Sensors

Manual Policies

User’s Control

HIGH

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 20

World Trends

You

Industry

Industry

SituationIs your industry changing? Reforming?

Aviation Industry Losing Money…

US network carriers lost $36B since 2001

Low cost airlines made $1.8B

Source: US Dept. of Transportation, 2008

Aviation Searching for New Revenue…

Baggage Fees

Food Fees

Retail Drives the Global Economy

Global Retail Sales: $8 Trillion Annually

Retail Sales by Region Retail as a Percent of GDP

Source: Cisco IBSG analysis of World Bank and Euromonitor data, 2002

USA33%

EU

27%

Asia17%

Japan13%

Latin America7%

Other 3%

United States

European Union

33%

24%

20%

25%

16%

Japan

Asia

Latin America

23%World Average

% GDP

Bar Codes

1974

RFID Tags Pallet-level

2005

ESL

Automate Retailing Tasks

Self-checkout Automation

Rule of thumb: 2.6 agents instead of 4

Shoplifting—―The Five Fingered Discount‖

Question:

What is the most stolen product retail shops?

Reduce ―Shrinkage‖ (Losses)

Most Stolen Items in UK Retail

1. Razor blades

2. Alcohol

3. Toiletries

4. Clothing

5. Batteries

6. DVDs, CDs, Games

7. Pills, Contraceptives

8. Luxury toothbrushes

9. Instant coffee

10. Meat (prime cuts)

Source: Centre For Retail Research, 2008

50 Items Most Stolen by US Organized Shoplifters

33 Pain pills, drugs

6 Fem. inf. treatments

5 Razor blades

2 Batteries

2 Infant formula

1 Kodak film

1 Condom brand

High value in small size

Easy to conceal

Easy to resell

PRODUCTS

Source: National Associationfor Shoplifting Prevention, 2008

Growing Portfolio of Cisco Solutions…

Fast, easy content management

Custom content for specific customers

Photo: Joe Reilly, Metro Group, Future Store

Digital Signage Physical Security

IP-based surveillance

systems replace the 30 million analog cameras installed

Unified Communications

High-end jeans require exact fitting, requires several attempts to find the right pair

Cisco IP phones in the fitting rooms to check inventory and provide faster customer service

Results:

– 25% reduction in the number of round-tripsbetween the fitting rooms and shelves

– Sales rose 15.8% YOY

Mitsukoshi Intelligent Fitting Room

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 31

You

Technology

World Trends

Industry

The Information Age

Technology

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 32

Five Technology Revolutions

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 33

Bridge Business & Technology Requirements

The Network isthe Platform for

Collaboration and Communication

Video Mobility

Collaboration & Productivity

InteractiveBusiness

Globalization, Flexibility, Scalability,

Compliance

Personalization

Business Decision Makers

Technology Decision Makers

Business Decision Makers

Technology Decision Makers

STRATEGIC ENABLERNETWORK AS THEIT AS A

COST CENTER

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 34

VirtualizationCollaboration

Video

Data Center

UC/WebEx/TP

Cisco Top Priorities

Globalization

Every situation Good or Bad is an opportunity for you

World Trends

Industry Technology YOU

LOW HIGHYour Control

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 36

Company •Customers

•Employees

•Buildings and Real Estate

•Suppliers

•Logical Security

•Physical Security

•Communications & IT

•Administrative tasksTechnology

YouWorld Trends

Industry

Whichever company we work for….

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 37

World Trends •Affected by Global Trends:

•Globalization

•Government reform

•Energy Trends

•War for talents

•Global crisis

Technology

YouIndustry

Company

Whichever country you work in…..

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 38

Industry

Technology

YouWorld Trends

Company

Whichever Industry you work in…..

•Affected by Global Trends (Globalization, Government reform, Energy Trends, War for talents, Global crisis)

•Specific Industry Challenges

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 39

Technology•Active role in aligning to your company’s goals and objectives

•Move the IT from a cost center to a strategic asset

•Contribute to your company objectives by creating values in:

•Cutting cost

•Increase productivity

•Reach new markets/talents

You

CompanyWorld Trends

Industry

And if you are in Technology….

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 40

YouEvery situation good or bad is an opportunity for YOU

Technology

CompanyWorld Trends

Industry

World Trends -> Industry -> Technology

© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential13533_04_2007 41

Any situation Good or Bad is an opportunity for YOU

Risk

Opportunity

© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 42