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Haga clic para modificar el estilo de título del patrón Matthew Booher V.P. Finance, Corporate Treasurer & Investor Relations Officer November 15, 2012 14 - 16 November 2012 | Cancun, Mexico
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Forward Looking Statements Certain statements contained in this document are forward looking statements. These statements may be identified by the use of forward looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should" or "will" or other similar terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. For a discussion of the risks and uncertainties affecting our business, please see our public filings with the Securities Exchange Commission at www.sec.gov. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.www.sec.gov
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Avaya Introduction Q3 results and Q4 expectations (1) evidence stabilization and increased profitability Q3 and Q4 Adjusted EBITDA (2) grew sequentially 13% and 11-16%, respectively Q4 revenue increased sequentially to $1,270M - $1,277M Gross margin (2) was 54% in Q4’12 – nearly back to Q4’11 record level despite lower revenue Cash increased 24% to $337M in Q4 from the Q3 level Committed to innovation and product development Increasing R&D investments; ahead of industry averages Technology acquisitions to expand markets Near term revenue outlook continues to reflect low visibility Uncertain economic environment and growth rates in IT spend across geographies EMEA and U.S. Public Sector in particular continue to experience softness; China, Japan and Australia growth is slowing Business momentum and sales cadence on positive trajectory in second half of FY12 Surgical restructuring underway to drive profitability and cash flow (3) Actions already taken in 2H FY12 were ahead of plan and will generate FY13 cost savings (relative to Q3 Adj. EBITDA) of approximately $105M Additional savings FY13 to FY15 targeted in indirect spending, supplier related actions, real estate consolidations and ongoing headcount management $135 – 235M in FY13 savings and total $400M+ annualized cost reductions by FY15
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Haga clic para modificar el estilo de título del patrón NES acq. Services Product NES acq. $1,277 - $1,270 Total Revenues ($M) Gross Margin (2) NES acq. Recent Quarterly Performance (1
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Haga clic para modificar el estilo de título del patrón 1)4Q12 figures are estimates; please see the company’s most recent Form 8-K filed with the SEC on 10/18/12 2)Gross margin excludes amortization of technology intangible assets and any other acquisition related adjustments. Gross margin as shown and adjusted EBITDA are non-GAAP metrics. For reconciliation to our GAAP financial information please see our filings at www.sec.gov. Cash Balance ($M) NES acq. Adjusted EBITDA (2) ($M) and Margin NES acq. $260 - $250 Recent Quarterly Performance (1
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Avaya Product Revenue ($ Millions)
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Strong Liquidity Position Strong Liquidity Position Cash plus borrowing capacity under existing revolvers *
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Haga clic para modificar el estilo de título del patrón Growing Product Investment R&D ($M) * FY2012 year to date at 18% FY2011 R&D as a % of Product Revenue * Note: Avaya product revenue excludes rental and AFS revenue
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Recent Acquisitions
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Haga clic para modificar el estilo de título del patrón Acquisition & Integration Expenses
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Macro Environment Remains Challenged; Customers Forced to Prioritize IT Spend Global IT Spending Growth Rates Source: Gartner, Enterprise IT Spending by Vertical Industry, Q2 ‘12 India Russia Mexico UC/CC Apps Web Collaboration Business Analytics Video Security Speech Avaya Momentum and Visibility US Canada Brazil APAC US Govt. Western Europe Call Control Voice Endpoints TDM Systems/Sets Traditional Voice Support
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Evolution of Cost Structure Footprint Consolidation Ongoing Headcount Management Complexity Reduction Today 2015 Goal Facilities246 > 50% reductio n Million Sq. Ft. 64 Today 2015 Goal R&D Sites / Product 52 Suppliers5,300< 1,500 Web Self- Service 34%75% EMS / ODMs 75 Total Avaya Headcount First opportunity to deal with size & complexity
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico ($M) Illustrative FY13 EBITDA Impact of Cost Initiatives (1) $240M – 340M of incremental realized cost savings by end of FY13 1)In an 8K filed with the SEC on 9/24/12, the company disclosed cost savings initiatives over the next several years. Actual results may vary based on a number of factors, including but not limited to, the risks identified in Avaya’s SEC filings at www.sec.gov www.sec.gov Targeted $400M+ annualized cost reductions by FY15 Committed Additional opportunity
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Haga clic para modificar el estilo de título del patrón 14 - 16 November 2012 | Cancun, Mexico Today, tomorrow and in the future… Strong positioning & competitive advantages, clear strategy & solid financial foundation Delivering on transformation and operational improvement programs Generating cash flow – investing for the future Redefining the market with innovative solutions Commitment to delivering value for our customers, employees, partners and owners.
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Haga clic para modificar el estilo de título del patrón Matthew Booher V.P. Finance, Corporate Treasurer & Investor Relations Officer November 15, 2012 14 - 16 November 2012 | Cancun, Mexico
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