1. Fast forward into the future Marcel Rebroš General Manager, Cisco Slovakia ICETA 2008, Stará Lesná Marcel Rebroš General Manager, Cisco Slovakia ICETA 2008, Stará Lesná

2. Interconnected world Connected through people, with the Network as the Platform Email

3. Interactive aplications Connected end users The Human Network Content created by end users

4. Mega Trends Digitalisation Virtualisation Mobility Personalisation

5. Connected world realities Highly competitive global value chains Virtualization & mobility – the death of distance Productivity growth rate Empowered user as customer and employee Globally collaborative innovation Competitive emerging markets Demographic shifts and time-bombs

6. Demographic crunch Workers Retired 5:1 2:1 243m 203m -16% decline EU Adult Population 0% 20% 40% 60% 80% 100% 20002050 Source: The New York Times, April 4, 2004

7. Demography - Slovakia

8. The Productivity Imperative To simply stay in place, workers will have to produce 2.5X more per hour than they do today To sustain the rate of standard of living improvements, each 2050 worker will have to produce 5X more than a worker today 3X 4X 5X 2005 2050 Source: Cisco IBSG Analysis

9. What Drives Productivity? Technological change and other factors Improved Labor Quality Capital Investment Data: US Bureau of Labor Statistics Contribution to Long-term Productivity Growth 52% 37% 11% Effective IT solutions drive productivity gains Effective IT solutions drive productivity gains

10. Internet-Enabled Productivity U.S. Productivity Growth 1974199520012010 1997 1.2% 2.5%* 48% Internet Contribution to Productivity

11. Act early for business edge Accelerated pace of development means less time to react – so the slow lose out Value Winner Loser Electricity Telephone Internet Mobile telephone Invention Ubiquity high cost high returns medium cost high returns low cost low returns New technology Act now Potential for competitive advantage Act later IP Telephone Television Time

12. 100 % 25 % 50 % 75 % Years Compound Productivity Growth Source: Net Impact Study Prosperity 0918273645546372 Living standard will double over next 8 years 7% Living standard will double over next 8 years 7%

13. Global IT Report 2007- 2008 World Economic Forum (WEF) WEF Report – compares 127 countries in 70 categories the Report provides comparative information for business and governments The Report analyses how networked readiness can foster innovation Networked Readiness Index - examines how prepared countries are to use ICT effectively WEF Report – compares 127 countries in 70 categories the Report provides comparative information for business and governments The Report analyses how networked readiness can foster innovation Networked Readiness Index - examines how prepared countries are to use ICT effectively

14. Scandinavian countries are leaders Networked Readiness Index 2007-2008 Top Ten CountryNRI Rank 2007-2008 Denmark1 Sweden2 Switzerland3 United States4 Singapore5 Finland6 Netherlands7 Iceland8 Republic of Korea9 Norway10 Key for economic growth: clear vision of governments – implementation and use of ICT education and innovation 8 of the18 CEE countries are ranked in the first 50 economies

15. Slovakia ranked 43 rd out of 127 economies Slovakia: –91 mobile telephone subscribers per 100 inhabitants –42 internet users per 100 inhabitants –36 PC per 100 inhabitants –38 th in usage of ICT in business sector –78 th in usage of ICT in public sector –79 th in availability of on-line government services –39 th – broadband internet subscribers Slovakia: –91 mobile telephone subscribers per 100 inhabitants –42 internet users per 100 inhabitants –36 PC per 100 inhabitants –38 th in usage of ICT in business sector –78 th in usage of ICT in public sector –79 th in availability of on-line government services –39 th – broadband internet subscribers Networked Readiness Index 2007-2008 CEE Region CountryNRI Rank 2007-2008 Estonia20 Slovinsko30 Lithuania33 Czech Republic36 Hungary37 Slovakia43 Latvia44 Croatia49 Turkey55 Romania61 Poland62 Bulgaria68 Macedonia83 Albania108

16. Competitiveness Use of ICT foster economic growth and competitiveness of the country Broadband benefits: –Economic (including increased productivity) –Social (access to education, on-line services, entertainment)

17. 8 Dimensions of competitiveness The Lisbon Review 2008 World Economic Forum 1.Creating an Information Society for All 2.Developing a European Area for Innovation, Research and Development 3. Liberalization 4.Building Network Industries 5.Creating Efficient and Integrated Financial Services 6.Improving the Enterprise Environment 7.Increasing Social Inclusion: Bringing People to the Workforce, Upgrading Skills 8.Enhancing Sustainable Development

18. Intelligent infrastructure as platform Broadband IP VPN Voice Internet Data Center Security Storage Video Mobility

19. Act early for business edge Accelerated pace of development means less time to react – so the slow lose out Value Winner Loser Electricity Telephone Internet Mobile telephone Invention Ubiquity high cost high returns medium cost high returns low cost low returns New technology Act now Potential for competitive advantage Act later IP Telephone Television Time

20. © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialCiscoEI-Overview 20 Connectivity – more than wires Consumers Business Government The Connectivity Scorecard, LECG, 2008 Lines Broadband PCs Lines Broadband PCs Business lines Hardware Enterprise IP Business lines Hardware Enterprise IP Online services Government website Online services Government website Infrastructure Literacy Schooling Internet Literacy Schooling Internet Business mobile E-commerce Employee skills Business mobile E-commerce Employee skills Website usage Schools ICT usage Website usage Schools ICT usage Usage & Skills

21. © 2007 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialCiscoEI-Overview 21 Cisco – Technology Innovator $4.5 billion invested in R&D Over 17,000 engineers in 10 global laboratories Over 2000 patents issued to Cisco inventors Posledné úspechy CRS-1 Carrier Routing System IOS XR Self-Defending, Self-Healing Operating System Software TelePresence High-Definition Network-Based Meeting Solution Build-Partner-Acquire 129 acquisitions to date

22. Networking Skills Less than 8.1% Gap 8.1%-14% Gap 14%+ Gap Advanced Technology Skills Gap 2005-2008 Cisco Network Academy Program 61 schools and univesities 160 instructors 11 000 students Memorandum of understanding with Ministry of Education

23. John Chambers, President and CEO The two great equalizers in life are the internet and education. Committed to the Future

24. © 2007 Cisco Systems, Inc. All rights reserved.Cisco Confidential 24