Avaya Corporate Overview. ©2009. All rights reserved. Agenda Corporate Facts – Value of Nortel Enterprise Solutions (NES) Acquisition – Financial Health.

Avaya CorporateOverview

©2009. All rights reserved.

Agenda

Corporate Facts

– Value of Nortel Enterprise Solutions (NES) Acquisition

– Financial Health

Innovation

Avaya Portfolio

Conclusion

2


Corporate Facts


Common Strategic Vision

Focused on Communications Innovation in the Enterprise

History of Reliability, Scale-ability, Investment Protection

Expertise

#1 or #2 in All Markets Served (except Data)

4


NESA Compelling Combination

Large, loyal Customer Base

Strong Channel Centric Go-to-Market Model

Accelerated innovation through added expertise and the ability to increase investment

Opportunity to provide maintenance services to the NES base and the NES Partner Community

Geographic Scale and Industry Breadth

Innovations that Synergistically Enhance the Portfolio

5


Avaya is the global business

communications expert delivering

open and flexible communication

systems, that transform the way

people collaborate to enhance

performance and enable growth

for companies small to large.

Avaya

6


Avaya’s Global Footprint

4,000+ Channel Partners

32 Global Delivery Support Centers

19,000+ Employees

Operating in 55 Countries

Key Corporate Locations

Avaya LabLocations

7


NES Acquisition Financing

Purchase Price $900M

Financing is a combination of cash, debt and equity

Additional financing committed – cost and pricing of debt not impacted by rating

NES Financially Restructuring Assets as Required by Bankruptcy before purchase by Avaya

Apply Avaya Operational Improvement Programs

8


Avaya Financial Performance over Time

($ in millions)

Total Revenues Gross Margin

Cash Balance

11.8% 12.0%

15.1%

EBITDA and % of Revenue

9


22%to

28%

18%to

22%

15,000 to

20,000

5.9xto

3.4x

~ $6.0 Billion

Annual Revenue

Operating Margin

EBITDA / Revenue

Leverage (Debt /

EBITDA)Employees

Avaya and NES – Combined

Targeted Performance Levels

10Avaya makes no representations or warranties regarding this financial information. Past performance may not be indicative of future performance.


Strategic Priorities FY10

Increased Relevance

Operational Improvement

s

Profitable Growth

NES Integration

FY10

11Avaya makes no representations or warranties regarding this financial information. Past performance may not be indicative of future performance.


A History of Innovation

12


Avaya Labs Rich in Heritage

Avaya Innovation & Research

Industry leading 5200 patents or patents pending

Avaya Labs Locations in:

10,000+ DevConnect partners* with ~600 gold/platinum

475+ Independent Software Vendors with certified applications on Avaya systems

* This number does NOT include over 200 companies that are currently members in both the Avaya and NES programs. 13

Australia

Canada

Germany

India

Israel

Japan

Singapore

U.S.

U.K.


Enterprise Communications Turning Points

Digital IP SIP

Innovation Timeline

ACD+PBX in Single Platform

Processor Duplication

Call Vectoring

DNIS + ANI

ACD+PBX in Single Platform

Processor Duplication

Call Vectoring

DNIS + ANI

Home Agent

IP Softphone

IP Trunking

Home Agent

IP Softphone

IP Trunking

one-X®Agent

one-X® Portal

one-X® Communicator

Session Enablement Services

one-X®Agent

one-X® Portal

one-X® Communicator

Session Enablement Services

14


SIP Innovation and Leadership

Avaya SIP Leadership– Enterprise deployments with tens, hundreds, thousands of SIP users

– Over a million SIP trunks/lines

– World-wide penetration with SIP deployments in 55 countries

– First enterprise vendor to be named SIPConnect compliant

One-X Mobile Interoperability– Compatible with largest number of handsets and carriers

Microsoft Interoperability– Unified Desktop – Unified Messaging

– Mobility – Conferencing

Avaya Aura™ is the First SIP platform to Support Fully-Sequenced Applications

15


Avaya Portfolio

16

©2009. All rights reserved. 17

The Markets We Serve

UC CC Data Services

Small & Medium Enterprise

Enterprise

Midsize Enterprise

©2009. All rights reserved. 18

Unique Customer Value to Every Segment

Accelerated SIP Applications

Expanded Global Expertise

Enterprise

Cost effective platform with the lowest TCO

Evolutionary Path

Midsize Enterprise

Simplicity Broader Channel

Coverage and Support

Small & Medium Enterprise


Delivering Value Across the Enterprise…

19

Simplified Communications

•Smooth transition across modalities

•Contextual and persistent communications

Business Agility

•Improve workflow outcomes

•Always on…always contextually aware

Increased Speed at a Lower Cost

•Smooth evolution

•Simplified, virtualized infrastructure

•Rapid deployment

•Uptime

End User Line of Business IT


Common Evolutionary Path

Call Center Evolution

IT Convergence

PBX Disaggregation

Multimodal Communications

Communications Enabled Applications

UC

Complementary technology roadmaps driving accelerated execution

Plug & PlayCommunications

Accelerating Your Evolution

Preserve & Enhance

Investments

A Path for Every Customer

Migration that fits your

business needs Best in Class

Capability

20© 2009 Avaya Inc. All rights reserved.

EnterpriseRoadmap Evolution Principles

Avaya Aura™ as a core component, expanded with new technologies

– Accelerating application & services integration toolkit

– Expanding communications enablement of business apps

Rich integration into Avaya Aura™ for NES and Avaya Core Telephony Systems Providing Investment Protection and Added Value

Evolve Customers Smoothly to a Single Advanced Next-Generation SIP-based Contact Center Platform

Continue the Current Data Networking Roadmap

© 2009 Avaya Inc. All rights reserved. 21

Customer Roadmap Routes

Protect Richer support and professional services Investment protection, order availability

Application availability and extension

Unified communications architecture New capabilities acceleration Customized, industry-specific solutions


Protect

Extend

Grow

Avaya Will Lead

Clients RemoteWorkersMobile

Workers

BranchOffice

MainOffice Data

CenterSuppliers

OpenExpert Business Impacting


Gartner Magic Quadrant* Enterprise Comm Leader* UC Leader

#1 Telephony Solutions revenue share1

#1 Unified Communications revenue share1

#1 Audio Conferencing licenses 6

#1 Enterprise messaging revenue share 3

Unified Communications

Gartner Magic Quadrant Leader* Contact Center Infrastructure

* Interactive Voice Response

* Enterprise Voice Portals

#1 Contact Center / ACD revenue share 4

#2 Outbound Dialers (NA revenue share) 2

#2 CTI (APAC share)2

Contact Center

#2 in lines shipped for SME Telephony Systems5

Small & Mid Enterprise

Leadership Positions

# 1 revenue share in Maintenance Services WW 7

Avaya Named to the 2009 World’s Most Ethical Companies List

[1] Dell’Oro Group; [2] Frost & Sullivan; [3] T3i Group;[4] Gartner, Inc; [5] Canalys 6] MZA, Ltd .[7] Intellicom Analytics; all share stats for calendar 2008

Avaya Inc. and Gartner, Inc.are both owned in part by Silver Lake, a leading financial investment firm. Gartner research is produced independently by Gartner analysts, without influence, review or approval of their outside investors or shareholders. For further information on the independence and integrity of Gartner research, see Guiding Principles On Independence and Objectivity on Gartner’s website, http://www.gartner.com/it/about/omb_guide.jsp

24

http://www.gartner.com/it/about/omb_guide.jsp


25

Metric Date Pos % Pos % Pos % Pos % Pos %

Unified Communications [1] Revenues 2008 #1 21% #4 11% #2 18% #3 11% #5 10%

Telephony Systems [1] Revenues 2008 #1 19% #5 8% #3 13% #4 10% #2 14%

SME Telephony Systems [2] Lines 2008 #2 10% #4 8% #3 10% #5 7% #6 7%

Contact Center/ACD [3] Revenues 2008 #1 35% #6 3% #3 14% #4 12% #8 2%

Enterprise Messaging [4] Revenues 2008 #1 21% #4 7% #3 16% #2 17% #9 4%

Audio Conferencing [5] Licenses 2008 #1 24% #6 6% #2 24% #3 13% #4 8%

Enterprise Product Support [3] Revenues 2008 #3 5% #14 1% #1 11% #15 1% #6 2%

Software Support [3] Revenues 2008 #2 5% #18 1% #1 6% #47 <1% #7 2%

Maintenance Services [6] Revenues 2008 #1 11% #5 5% N/A N/A N/A N/A #2 8%

Major Vendor Positions through Calendar 2008in Worldwide Unified Communications Segments

Avaya Inc. and Gartner, Inc. are both owned in part by Silver Lake, a leading financial investment firm. Gartner research is produced independently by Gartner analysts, without influence, review or approval of their outside investors or shareholders. For further information on the independence and integrity of Gartner research, see Guiding Principles On Independence and Objectivity on Gartner’s website, http://www.gartner.com/it/about/omb_guide.jsp.

Sources: [1] Dell’Oro Group; [2] Canalys; [3] Gartner, Inc.; [4] T3i Group; [5] MZA Ltd.; [6] IntelliCom Analytics



http://www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3cjUDSUGYpvqRKGIG8Y4IkSB9b31fj_zcVP0A_YLc0IhyR0dFAJgg_-M!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfMkU2

Industry Solution Leadership

Avaya Products and Solutions Used Worldwide in:

– Highest-performing health care & equipment companies (Forbes)

– 70% of the largest global banks*

– 10,000+ educational institutions*

– 24+ Country-level Governments including the US Department of Defense in all 50 states*

1O million business users leverage Avaya solutions every day

100 million messages are delivered daily....

Over 90% of the Fortune 500 leverage Avaya communications

Official Converged Network Infrastructure Supplierfor the 2010 Vancouver Olympics

Avaya now has roughly 33% of the worldwide market share in the IP telephony market (IDC)

26*Source: NES customer database*Source: NES customer database


80% of BusinessWeek 2008 ‘Customer Service Champs’ chose Avaya for customer contact*

27

Customer Service Expertise


Shift 4Shift 3

Shift 2

Global Support Services Providing Best-in-Class Remote Monitoring, Diagnostics, & Trouble Resolution

~6800 services professionals, 26 combined network operations and technical support centers viaEXPERT SystemsSM watching over customers and supporting partners with round-the-clock support

Shift 1

Belgium

NetherlandsRussia

UKGermany Hungary

AustriaSwitzerlandFrance

Spain Italy

Argentina

Brazil

Canada

Mexico

Hong Kong

Australia

JapanChina

Milpitas

Colombia

Coppell,Richardson

Singapore

Santa ClaraRaleigh

Billerica

Ottawa

Maidenhead

Bangalore

GurgaonIndia

Denver

28

Conclusion


Summary

Strong Market Leader– Global Coverage

– Financial Health

– History in Technological Leadership

Innovation– Vision for Context-Aware,

Sessions-Based Communications

– Avaya Aura™ Architecture

– Open, Standards-based on SIP and SOA

– Reliability, Security, Use-ability

Market Leadership & Expertise in UC & CC applications

30


Relentless Focus on Ease of Doing Business

Investment in Innovation

Simplification

Customer Centric Focus

Increased Investment in Developing Our Channel Ecosystem

What You Can Expect from Avaya

31


thank you

name

email

phone

32

Avaya Corporate Overview. ©2009. All rights reserved. Agenda Corporate Facts – Value of Nortel Enterprise Solutions (NES) Acquisition – Financial Health.

Documents

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avaya corporate overview

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