2020 Annual Report Powering an Inclusive Future for All About Cisco Cisco (NASDAQ: CSCO) is the worldwide leader in technology that powers the Internet. Discover more at thenetwork.cisco.com and follow us on Twitter at @Cisco. Our purpose To power an inclusive future for all Our mission To inspire new possibilities for our customers by reimagining their applications, securing their data, transforming their infrastructure, and empowering their teams Our commitment To drive the most trusted customer experience in the industry with our extraordinary people and great technologies Why Cisco? Fiscal 2020 summary report Letter to 2 shareholders 4 Financial highlights Trusted Continuous Technology for fiscal 2020 partner innovation leadership 6 Strategy 7 Leadership Governance and Global scale Driven by 8 responsibility and reach purpose Stakeholder 16 engagement Forward-looking statements This report contains projections and Introduction to summary report other forward-looking statements regarding future events or the future This section provides an overview of Cisco. It does not contain all of financial performance of Cisco, including future operating results. the information you should consider. Please review our Annual Report These projections and statements on Form 10-K, our Proxy Statement for our 2020 Annual Meeting of are only predictions. Actual events or Shareholders, and our Corporate Social Responsibility (CSR) Report, all results may differ materially from those in the projections or other forward- available on www.cisco.com. looking statements. See Cisco’s filings with the Securities and Exchange Commission, including its most recent filings on Forms 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those Online report in the projections or other forward- looking statements. Visit our website to read online versions of this Annual Report, our Proxy Statement, and our CSR Report. To see our interactive online report, visit our Annual Reports webpage. We welcome any feedback you may have. Cisco 2020 Annual Report 1 Letter to shareholders To our shareholders, At the start of fiscal 2020, we could not responsibility have never been greater, as have imagined what we would have to businesses around the world are running on face this year: the wide-ranging social Cisco technology to stay connected, secure, and economic impacts of the COVID-19 and productive. By helping our customers Key milestones pandemic; the resulting changes to digitize for the future and inspiring new businesses and how we work; and the possibilities for them, I am confident we will grim reminders of social injustice that have emerge from this challenging time an even persisted in society for too long. While stronger company than before. Achieved our target of the year has brought many challenges, I 50% of revenue from firmly believe that, with determination and With the rapid shift to remote operations software and services and automation, many customers are focus, we can turn them into opportunities in fiscal 2020 and progress. increasingly reliant on our broad portfolio of technologies. As we prepare for what Navigating a global crisis with ingenuity comes next, we are helping our customers During difficult times like these, it reminds us modernize their infrastructure while Introduced Cisco how strong we are when we come together. developing business resiliency solutions to At the start of the pandemic, we laid out support new ways of working. Silicon One, a some principles to guide our approach single, unified silicon Defining the future of the Internet with for supporting our employees, customers, architecture, the partners, and communities. We were unparalleled innovation quickly able to get 95% of our employees Our new business resiliency solutions build Cisco 8000 carrier- productively working from home, while also upon some of our recent innovations. In class router family, hosting a series of weekly video check-ins the applications space, we introduced new and our new IOS XR7 with guest speakers and medical and mental technologies that provide deep insights health experts to discuss issues that were into the physical and virtual network operating system top-of-mind. To support our customers’ infrastructure through the lens of the business continuity, our teams worked application, enabling real-time correction and using automation to resolve issues around the clock to scale our collaboration Announced new and security capabilities, and we introduced before they happen. Our acquisition of a variety of free offers and trials to make ThousandEyes complements our portfolio flexible purchasing sure everyone had the tools they needed by providing deeper and broader visibility options that to operate. and analytics across networks and enable customers applications. By integrating these SaaS- Our employees also came together to do all based capabilities with our AppDynamics to consume our they could to help the communities most in application intelligence portfolio and Cisco technology however need. They found ways to 3D-print surgical Intersight—our cloud-based management they choose face shields for healthcare workers, and they platform, we believe we can provide suggested that our DX80 video units, instead unparalleled observability, intelligence, and of sitting idle in our offices during lockdowns, insights at cloud-scale. could be shipped to hospitals to enable Met our target of In the collaboration space, our portfolio is families to communicate with patients. These 80% employee are just a few examples of the significant at the center of our customers’ strategies contributions we made to the pandemic for empowering teams and increasing participation in response. I am tremendously proud of what productivity. We take a security-first community impact in approach and continue to scale our our teams and IT teams around the world fiscal 2020 have accomplished in delivering digital analytics capabilities. We acquired Voicea, connections despite the huge challenges which brought artificial intelligence (AI) and they faced. automation capabilities to Webex, and we introduced the Webex Assistant feature Ranked #1 Best Place In the first half of fiscal 2020, we continued for Webex Meetings, which captures to feel the effects of an increasingly content and action items. We also acquired to Work in the World uncertain global macro environment. CloudCherry, adding advanced analytics in 2019 and 2020 by This uncertainty was exacerbated by the and rich customer journey mapping to our Great Place to Work® pandemic, which further impacted our Contact Center portfolio. financial results in the second half of the year. Although there continues to be a lot of uncertainty, we believe our role and 2 Cisco 2020 Annual Report As we look to the Our customers’ experience with Cisco and the past year, we paused to reflect and ask: what trust they place in us matter now more than comes next? We know our responsibilities future, we will continue ever. They rely on us to help connect, secure, don’t end with technology; we want to make a to focus on what we can and automate their environments so they can better world possible. We concluded that our achieve their desired outcomes. We have the new purpose is to power an inclusive future control, operate with opportunity to leverage our broad portfolio for all. This purpose can be fulfilled not only transparency, keep of turnkey solutions and strong customer through our technologies, which connect the relationships to provide differentiated value world, but also through our corporate social responsibility activities, which are intended our minds and hearts and cost savings for our customers. We want to create positive opportunity for everyone. I open, and have the to continue to make it as easy as possible for can’t think of a purpose more fitting for Cisco our customers to consume our technology. conviction to drive or more relevant for today. As a result, we are accelerating our efforts progress — both inside to offer everything in our portfolio as a We also developed a new framework for our and outside Cisco. service and cloud-delivered, simplifying and response to a crisis, an injustice, or a global automating as much as possible, and being challenge. We will focus our efforts on the more flexible in its delivery. most vulnerable; families and community; research and resilience; and strategic In security, we introduced Cisco SecureX, We will also accelerate our investments recovery. We are committed to thinking a broad cloud-based security platform in areas such as cloud security and beyond our initial response and using all our connecting the breadth of our portfolio and collaboration, increased automation in resources and capabilities to work toward our customers’ security infrastructure by the enterprise, the future of work, and long-term partnerships and solutions that providing unified visibility and automation application insights and analytics. At the improve lives all around the world. across applications, the network, endpoints, same time, we will continue our focus on and the cloud. We also integrated Cisco multicloud investment, 5G and WiFi-6, The Cisco of today is more agile, innovative, SD-WAN with Cisco Umbrella, helping 400G, optical networking, next-generation and focused. Thanks to our hard work over customers evolve toward a SASE (Secure silicon, AI, and more. recent years, we have delivered on our financial commitments, brought