1 © 2005 Cisco Systems, Inc. All rights reserved. Cisco Capital FY06 Cisco Capital Update Federal Leasing COMSTOR teams with Cisco Capital for Federal

1© 2005 Cisco Systems, Inc. All rights reserved.Cisco Capital FY06

Cisco Capital Update

Federal Leasing

COMSTOR teams with Cisco Capital for Federal Leasing

Program Overview

Mike Mankin, Federal Leasing Manager

222© 2005 Cisco Systems, Inc. All rights reserved.

Cisco Capital

• Wholly-owned Cisco subsidiary since 1996

• Leader in Cisco Systems end-to-end financial services• Alignment of economic objectives

$4.0B+ in assets

$1.5 B WW Lease Volume (Over $1B US)

$4.9 B WW Channel Financing

$100m WW Remarketed Equipment

• Global market presence with coverage in over 40 countries

• Alignment with technology innovation (Market Residual Value)

• Payment structures flexibility

• Enable larger business solutions

• Integrated element in Cisco’s business strategy

• Dedicated programs to the Public Sector Market (Federal, State & Local)Over $300M in Federal Leases active

• Wholly-owned Cisco subsidiary since 1996

• Leader in Cisco Systems end-to-end financial services• Alignment of economic objectives

$4.0B+ in assets

$1.5 B WW Lease Volume (Over $1B US)

$4.9 B WW Channel Financing

$100m WW Remarketed Equipment

• Global market presence with coverage in over 40 countries

• Alignment with technology innovation (Market Residual Value)

• Payment structures flexibility

• Enable larger business solutions

• Integrated element in Cisco’s business strategy

• Dedicated programs to the Public Sector Market (Federal, State & Local)Over $300M in Federal Leases active


To deliver Cisco’s Customers, partners and resellers preferred access to attractive and flexible financing

solutions designed to enable acquisition of technologies while help maximize company's profitability in the

adoption and distribution of business critical solutions

Our Vision


Offerings at a Glance

For ChannelsFor Channels For End-CustomerFor End-Customer

Channel Financing• Commercial or Federal

• PO financing

• A/R financing

• GSA Schedules

• Laboratory Lease

• Foundation Advantage Program

• Bid structures support

• Federal Assignment of Payments

• Full Sale Credit for Leases

Channel Financing• Commercial or Federal

• PO financing

• A/R financing

• GSA Schedules

• Laboratory Lease

• Foundation Advantage Program

• Bid structures support

• Federal Assignment of Payments

• Full Sale Credit for Leases

Leasing to the Agencies• Federal Contract Vehicles

• Finance Lease - LTOP

• Operating lease - LWOO

• Step and delayed payments

• Technology Refreshment

• Advance Technology programs and promotions

• Competitive trade in programs

• Customized to Federal budget

• FLEXIBILITY

Leasing to the Agencies• Federal Contract Vehicles

• Finance Lease - LTOP

• Operating lease - LWOO

• Step and delayed payments

• Technology Refreshment

• Advance Technology programs and promotions

• Competitive trade in programs

• Customized to Federal budget

• FLEXIBILITY


Aggressive Cisco Capital Lease Programs

• End Customer BenefitsReduced total cost of ownership

Leverage budget dollars

Budget control

Accelerate technology adoption

Provides technology protection

Competitive lease rates

• End Customer OfferingsTraditional lease offerings – LTOP, LWOO

Advanced technology lease programs

Several documentation approaches

GSA Lease documentation

Cisco bundled services

Services only financing


Cisco Capital Program Offering

• Conforms to current FY2005 GSA Leasing T&Cs

Term length: 13 – 60 month terms

Available to all Cisco prime contractors

• Size: $100,000 to $100M

T&C’s: SIN 132-3

• Contract Vehicles – GSA Schedule or almost any BOA

• Protection: Termination for Convenience and Termination for Non Availability of Annual Funding is included

• Flexibility: Technology Refreshment / Upgrades / Purchase available anytime

• Flexibility: Bundle Services and non Cisco equipment

• 4 End of Lease Options - Purchase; or Renewal; or upgrade by Technology Refreshment; or Terminate/ Return of equipment

• Cisco Foundation Advantage Program applies for Federal

• Sale Credit to the Federal AM and the Reseller for Leases


The 2 Federal payment strategies:

1. Lease to Ownership Plan “LTOP”

Installment & Services Purchase Plan – Uses Capital funds

Purchase Title passes upon final payment

Multi Year Maintenance Plans

2. Lease With Option to Own “LWOO”

All variations - Operating Lease with option to own - Lease payments with fixed purchase option buyout, Step Lease, Buyout anytime at Fair Market Value (FMV).

Uses Operating and Maintenance (O&M) funds

End of Term Options – Return, Renew, Buyout, Tech Refresh

Technology Refresh Upgrade before or at end of term


Capital vs. Operating Lease

36 72 months

Purchase Dollars$1,000,000 $1,000,000

LTOP vs. LWOO

$Savings

$Savings

LTOP

LWOO


Active Agency Leases

• DOD

• Homeland Security

• Executive Departments

• Veterans Administration

• Other Civilian Agencies

• Defense Information Systems Agency (5 deals), DITCO, Army Core of Engineers (3), Army Ft Belvoir, Air Force ACC, USAFE, PACAF, NAVY NMCI, NAVY Office of Naval Research, DLA, National Guard

• FEMA, Inspector General, Nuclear Regulatory Commission, Department of Energy Laboratories, Coast Guard

• US Senate, GAO (3 deals)

• VA deals - VA VISNs – 3, 7, 8, 9, 10, 12, 14, 16, 17, 21, 22, 23

• Center for Disease Control, Department of Treasury (IRS), GSA, Federal Reserve System (11 deals), Bureau of Reclamation, Department of Agriculture, NASA, NIH, SEC, Smithsonian, Job Corps, Customs

Organization Departments and Agencies


LTOP Example – GSA Headquarters

GSA Purchase price = $3,333,541 Intent to Own but not enough Money to PurchaseWill consider LTOP step payment structure1st annual payment = $ 447,000 delayed 3 Months to

July 2nd, 3rd Annual Pmt = $ 1,610,000Title passes upon receipt of final paymentContract Vehicle – GSA Schedule


LWOO Example – DOD

Purchase price = $ 3,103,980Customer has no Capital money but has O&M Vision for Technology Refreshment not ownershipWill consider LWOO and step payment structure41 Month Term with minimal down payment plus 3 payments in future Fiscal

Years1st Annual payment $ 200,000Subject to Annual appropriations renewal2nd, 3rd, 4th Annual pmt $ 977,256At 41 months – Renew the lease at reduced price or Purchase or Tech

Refresh upgrade or return with out further obligationContract Vehicle – DITCO - GSA Schedule


Channel Reimbursement Example – LTOP

GSA Purchase price = $3,333,541 1st annual payment = $ 447,000 delayed 3 Months to

July 2nd, 3rd Annual Pmt = $ 1,610,000Title passes upon receipt of final paymentContract Vehicle – GSA ScheduleSell at 7.0% vs Buy 6.0% rate Program margin to Partner = $30,123


Cisco Capital Update for FY 2006

• FY 06 Federal - One Team, One Goal

Solves the Budget issue – Spread out the payments in multiple years

LTOP/LWOO - GSA or customized Terms and Conditions through KeyBank – Key Government Finance

Cisco Capital partners through COMSTOR

New Cisco Capital Products

Channel Reimbursement Program with SI’s

2 – Tier Financing capability, Distributors, Alaska Native Corps’s or 8(a)

0% Financing on some SW – CSA - Cisco Security Agent

Foundation Advantage Program with Residuals from Cisco Capital for Operating Leases (LWOO)

Cisco Capital commercial MLA with Federal Rider to meet Federal Termination protections

Multi Year SMARTnet programs

Cisco Lab Lease – 24 month term, 1% of list per month HW,

1.5% of list for SMARTnet. [email protected]

Foundation Advantage Programs – Non Cisco Trade Ins

How to Engage – COMSTOR – David Ambrose – 703-345-5195

Cisco Capital for Federal – Mike Mankin 703-484-5133 for leasing Proposals


Documents

1 © 2005 Cisco Systems, Inc. All rights reserved. Cisco Capital FY06 Cisco Capital Update Federal Leasing COMSTOR teams with Cisco Capital for Federal