Our impact Accelerating diversity Each year for the past seven years, Cisco has made significant progress in expanding the diversity of our global workforce. As an example of our progress, we continue to make strides in closing gender gaps, which are a longstanding challenge in our industry. Our overall workforce is now 28 percent women globally and 30 percent women in the United States, up from 27 percent and 29 percent in fiscal 2020. Women made gains across all levels of people leadership, jumping from 24 percent to 26 percent globally from fiscal 2020 to fiscal 2021 and from 27 percent to 29 percent in the United States. While gains of 1 to 2 percent may seem modest, in a global enterprise of our size this level of growth is highly significant. The acceleration continues at the Vice President level. Globally, women Vice Presidents increased from 24 percent to 25 percent from fiscal 2020 to fiscal 2021. In the United States, the growth accelerated from 25 percent to 28 percent. Our Executive Leadership Team is now 42 percent women. Developing extraordinary leaders Leadership development has been a critical success factor in many of the transformational strides we have taken in promoting and retaining top talent. In the midst of the pandemic, we kept up the momentum. We not only shifted our development courses to an all- virtual environment, we launched a new foundational e-learning and development solution in the United States, Building Skills for a Conscious Culture. The program integrates harassment training with bias mitigation training, engaging learners with scenario-based learning. We also expanded our successful Next Generation Leaders (NGL) program, which has historically been geared toward African American/Black and Hispanic/Latinx employees. The new Next Generation Leaders Early in Career (NGLE) program will ensure a pipeline of potential leaders at Cisco. Through these programs, managers and their employees embark on a six-month journey to embrace differences, remove barriers, unlock talent, and foster disruptive thinking. These programs have a significant impact on retention: participants are 5.3 times more likely to continue to grow their careers at Cisco than nonparticipants. Innovating beyond pay parity An important aspect of our Conscious Culture is pay parity—equitable pay for similar work, regardless of gender (globally) and ethnicity (USA). As part of our Social Justice Beliefs and Actions, we expanded our pay parity program in fiscal 2021 beyond base salary to include additional forms of compensation fairness such as promotion, bonus, and stock decisions made in our reward programs. Because our workforce is constantly changing, pay fairness is an ongoing commitment. We regularly analyze data across Cisco and, where necessary, make upward adjustments to ensure fairness. In fiscal 2021, our analysis confirmed our commitment to a healthy, fair compensation system, revealing only minor disparities. We invested an additional US$3.0 million in base pay adjustments, US$0.5 million in a promotion pilot, US$1.6 million in bonus adjustments, and US$5.4 million in additional stock value to close minor gaps. The adjustments total less than 0.5 percent of each program's budget. Exceeding our aspirations Increasing the population of African American/Black employees at all levels of the company (fiscal 2021 vs. fiscal 2020) 11 % increase in entry -level through manager -level employees 90% increase in Director -level employees 120% increase in Vice Presidents and above FUTURE INTRO POWER INCLUSIVE