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Avaya Corporate Overview
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©2009. All rights reserved. Agenda Corporate Facts – Value of Nortel Enterprise Solutions (NES) Acquisition – Financial Health Innovation Avaya Portfolio Conclusion 2
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©2009. All rights reserved. Corporate Facts
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©2009. All rights reserved. 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
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©2009. All rights reserved. NES A 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
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©2009. All rights reserved. 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
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©2009. All rights reserved. Avaya’s Global Footprint 4,000+ Channel Partners 32 Global Delivery Support Centers 19,000+ Employees Operating in 55 Countries Toronto Basking Ridge, NJ Headquarters Denver, CO Santa Clara, CA Guilford, UK Frankfurt, DE Singapore Shanghai Sydney Mumbai São Paulo Mexico City Research Triangle Park, NC Beijing Dubai Israel Japan Key Corporate Locations Avaya Lab Locations 7
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©2009. All rights reserved. NES Acquisition Financing Purchase Price $900M Financing is a combination of cash, debt and equity Additional financing committed – cost and pricing of debt not impacted by rating NES Financially Restructuring Assets as Required by Bankruptcy before purchase by Avaya Apply Avaya Operational Improvement Programs 8
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©2009. All rights reserved. Avaya Financial Performance over Time ($ in millions) Total RevenuesGross Margin Cash Balance 11.8% 12.0% 15.1% EBITDA and % of Revenue 9
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©2009. All rights reserved. 22% to 28% 22% to 28% 18% to 22% 18% to 22% 15,000 to 20,000 15,000 to 20,000 5.9x to 3.4x 5.9x to 3.4x ~ $6.0 Billion Annual Revenue Operating Margin EBITDA / Revenue Leverage (Debt / EBITDA) Employees Avaya and NES – Combined Targeted Performance Levels 10 Avaya makes no representations or warranties regarding this financial information. Past performance may not be indicative of future performance.
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©2009. All rights reserved. Strategic Priorities FY10 Increased Relevance Operational Improvements Profitable Growth NES Integration FY10 11 Avaya makes no representations or warranties regarding this financial information. Past performance may not be indicative of future performance.
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©2009. All rights reserved. A History of Innovation 12
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©2009. All rights reserved. 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.
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©2009. All rights reserved. Enterprise Communications Turning Points Digital IP SIP Innovation Timeline ACD+PBX in Single Platform Processor Duplication Call Vectoring DNIS + ANI Home Agent IP Softphone IP Trunking one-X ® Agent one-X ® Portal one-X ® Communicator Session Enablement Services 14
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©2009. All rights reserved. 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
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©2009. All rights reserved. Avaya Portfolio 16
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©2009. All rights reserved.17 The Markets We Serve UCCC Data Services Small & Medium Enterprise Enterprise Midsize Enterprise
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©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
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©2009. All rights reserved. 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
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©2009. All rights reserved. Common Evolutionary Path Call Center Evolution IT Convergence PBX Disaggregation Multimodal Communications Communications Enabled Applications UC Complementary technology roadmaps driving accelerated execution Plug & Play Communications Plug & Play Communications 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.
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Enterprise Roadmap 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
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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 © 2009 Avaya Inc. All rights reserved. 22 Protect ExtendGrow
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Avaya Will Lead ClientsRemote Workers Mobile Workers Branch Office Main Office Data Center Suppliers Open Expert Business Impacting © 2009 Avaya Inc. All rights reserved. 23
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Gartner Magic Quadrant * Enterprise Comm Leader * UC Leader #1 Telephony Solutions revenue share 1 #1 Unified Communications revenue share 1 #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 Systems 5 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.jsphttp://www.gartner.com/it/about/omb_guide.jsp 24
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25 MetricDatePos% % % % % Unified Communications [1] Revenues2008#121%#411%#218%#311%#510% Telephony Systems [1] Revenues2008#119%#58%#313%#410%#214% SME Telephony Systems [2] Lines2008#210%#48%#310%#57%#67% Contact Center/ACD [3] Revenues2008#135%#63%#314%#412%#82% Enterprise Messaging [4] Revenues2008#121%#47%#316%#217%#94% Audio Conferencing [5] Licenses2008#124%#66%#224%#313%#48% Enterprise Product Support [3] Revenues2008#35%#141%#111%#151%#62% Software Support [3] Revenues2008#25%#181%#16%#47<1%#72% Maintenance Services [6] Revenues2008#111%#55%N/A #28% Major Vendor Positions through Calendar 2008 in 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.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
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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 Supplier for 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
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©2009. All rights reserved. 80% of BusinessWeek 2008 ‘Customer Service Champs’ chose Avaya for customer contact* * partial list shown 27 Customer Service Expertise
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©2009. All rights reserved. Shift 4 Shift 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 via EXPERT Systems SM watching over customers and supporting partners with round-the-clock support Shift 1 Belgium Netherlands Russia UK Germany Hungary AustriaSwitzerland France Spain Italy Argentina Brazil Canada Mexico Hong Kong Australia Japan China Milpitas Colombia Coppell, Richardson Singapore Santa Clara Raleigh Billerica Ottawa Maidenhead Bangalore Gurgaon India Denver 28
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Conclusion
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©2009. All rights reserved. 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
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©2009. All rights reserved. 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
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©2009. All rights reserved. thank you name email phone 32
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