1. Avaya Q1 2015 Financial Results Goldman Sachs TMT Leveraged Finance Conference
Hi, I’m Dave Vellequette, CFO of Avaya
This is my quarterly video review of our financial results for the our fiscal 1st quarter of 2015
Let’s start by looking at our performance, and how it reflects our continued ability to execute against our strategy …
March 11, 2015

2. Forward - Looking Statements
Certain statements contained in this presentation are forward-looking statements, including statements regarding our future financial and operating performance, as well as statements regarding our future growth plans and drivers. 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 list and description of such risks and uncertainties, please refer to our filings with the SEC that are available at and in particular, our 2014 Form 10-K filed with the SEC on November 26, We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This presentation should be read in conjunction with our Form 8-K filed with the SEC on February 9, Within this presentation, we refer to certain non‐GAAP financial measures that involve adjustments to GAAP measures. Reconciliations between our non-GAAP financial measures and GAAP financial measures are included in the appendix of this presentation.
These slides, as well as current and historical financial data are available on our web site at None of the information included on the website is incorporated by reference in this presentation.
Historical amounts presented reflect the sale of ITPS.

3. Avaya Private Cloud Services
Avaya Now
Portfolio Position ($ / Seat)
Customer Engagement
Team Engagement
Fabric
High
Revenue Category (# of seats)
Low
Company relevance has moved to higher value and higher growth outcomes
Now have well positioned offerings in all 6 revenue streams with opportunities to grow these areas of our business
Avaya= open mobile enterprise engagement platform
Portfolio Position (Value / Seat)
Customer Care
Avaya Private Cloud Services
Professional
Services
Non-Recurring
Recurring (3 year)
Recurring (5 year)
Revenue Category (term)

4. Fiscal Q1 2015 Financial Highlights (Amounts are non-GAAP)
Revenue of $1,079 million down $47 million from the prior quarter
In constant currency, down 3% sequentially and year-over-year
In line with low end of historical sequential pattern
Private cloud and managed services business and our leading edge contact center solutions grew both sequentially and year-over-year
Revenue from products focused on the midmarket was up 5% sequentially and up 2% year-over-year
Networking product revenues grew 15% sequentially and 2% year-over year
In constant currency, EMEA revenue was up 3% year-over-year and AI was up 2%
Product bookings were up year-over-year, while product book-to-bill was below 1.0
Gross margin reached new record of 60.1%
Increased 40 basis points sequentially and 200 basis points year-over-year
Operating income of $193 million and 17.9% operating margin
Adjusted EBITDA of $239 million and 22.2% of revenue
Cash increased sequentially and year-over-year to $328 million
Reflects $19.5M debt reduction from $10M paid against Cash Flow revolver and $9.5M in term loan principal
Free Cash Flow positive for the quarter
NOTE: Historical amounts presented reflect the sale of ITPS 4 4

5. Products & Services* (% of Total Avaya Revenue)
Financial Summary
($M)
Non-GAAP
4Q14
Actual
1Q15
Business Model
Revenue
$1,126
$1,079
$1,100 – $1,150
Gross Margin %
59.7%
60.1%
58.5% – 59.5%
Oper Expense %
40.9%
42.3%
38.5% – 39.5%
Oper Income %
18.8%
17.9%
19% – 20.5%
Adj EBITDA $
$253
$239
$250 – $275
Adj EBITDA %
22.5%
22.2%
22.7% – 23.9%
Q1 Revenue: $1,079M; down $47M sequentially
$13M currency impact
$19M due to sales execution
Private cloud & managed services up 7% YoY
Networking product revenue up YoY
Gross Margin 60.1%
Operating Income 17.9%
Adjusted EBITDA 22.2% of revenue
All 3 are fiscal Q1 record levels on an as reported basis
For a reconciliation of non-GAAP to GAAP financial information, please see .
Products & Services* (% of Total Avaya Revenue)
FY 11
FY 12
FY 13
FY 14
1QF14
4QF14
1QF15
Flagship
32%
35%
39%
43%
44%
45%
Core
48%
49%
47%
This gives you a comparison of our performance relative to last quarter, and in comparison to our model ranges
Of the $47M sequential revenue decline, $13M was due to fluctuations in foreign currency exchange rates which cause our dollar denominated revenues to be lower
You can see we have improved our gross margin % as an outcome of our successful cost reduction efforts which enable us to run the business efficiently, including improvements in:
our supply chain efficiency
cost reductions and surgical restructuring
increased focus on automation of our web based support which lowers cost while improving performance
Our model is designed to generate sufficient EBITDA and cash to meet our annual requirements, even on a relatively modest quarterly revenue level
Next, let’s look at our capital structure …
We have structured our model such that, assuming quarterly revenue between $1.1 billion and $1.15 billion dollars, our operational performance should generate adjusted EBITDA in the range of $250 and $275 million
* Flagship includes Video, Avaya Aura®, IP Office, leading edge Contact Center, Wireless LAN, SBC, Ethernet/fabric switching, Avaya professional services, Avaya cloud and Avaya managed services
Core includes phones, gateways, servers, core contact center, and other managed and maintenance support services
Legacy includes legacy Nortel and Tenovis, excluding Networking
For a reconciliation of non-GAAP to GAAP financial information, please see our most recent SEC filings and the tables at the end of this presentation
NOTE: Historical amounts presented reflect the sale of ITPS

6. Overall Average Portfolio Interest Rate 6.9%
Avaya Debt Maturity Profile
($ in Billions, by calendar year)
Overall Average Portfolio Interest Rate 6.9%
$2.0
$1.4
$1.3
$1.1
Today
3/11/15
$0.12
Reduced debt by $19.5M in Q1 FY ’15
$10M against Cash Flow revolver and $9.5M in term loan principal
Additional liquidity available through Asset-Backed & Cash Flow revolvers
Annual cash needs for Pension, Interest, Restructuring, CapEx, and Cash taxes expected to be below $900M in FY 15
Long Term Debt (net of $0.3B cash) totals $5.6B
NOTE: Amounts shown are expected balances at maturity date; 2017 & 2018 are net of principal payments which total approximately $9.5M quarterly
As you can see, we have continued to manage our capital structure to create flexibility in the near-term while enabling us to invest strategically in our areas we see as growth opportunities.
We have reduced our debt by $19.5M, with the first maturity not due until October 2016
We’ve brought down our cash requirements by $100M per year (to $900M)
We completed a number of refinancing actions in 2014 to reduce our overall average interest rate on the debt portfolio to 6.9% and have additional liquidity available
We will continue to focus on cash generation.
So, let me close at this point … 6 6

7. A Software and Services Company FQ1’15 Results
Avaya Now
Net Promoter Score 50
New Customer Acquisition
*17%
Software and Services
69%
Revenue / Headcount
$343K
Gross Margin
60%
Operating Income
18%
Adjusted EBITDA %
22%
New Metrics portray a company that evidences a:
New business model
New momentum
New basis of work and market engagement
*As of Q4FY14
For a reconciliation of non-GAAP to GAAP financial information, please see

8. As I hope you have seen, while sales execution and timing of deal closings constrained Q1 revenue, our progress on executing on our strategy continues
- Operational performance metrics remain solid
- We are managing our debt with both a ST and LT view
- We are continuing to invest in serving our customers and delivering quality, innovative solutions that enable them to engage their teams and their customers for new levels of productivity and service.
Thanks for listening today.
We look forward to continuing to partner with you.