The Power of We™

Matt BooherVP Corporate Treasurer and Investor Relations Officer AvayaAvaya Financial Strength

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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.

© 2012 Avaya – Proprietary. Use pursuant to your signed agreement or Avaya policy. 3

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

Avaya Introduction

1) Q4’12 figures are estimates; please see the Company’s most recent Form 8-K filed with the SEC on 10/18/122) 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.

3) In an 8K filed with the SEC on 9/24/12, the company disclosed cost savings initiatives over the next several years.

© 2012 Avaya – Proprietary. Use pursuant to your signed agreement or Avaya policy. 4

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E

NES acq.Services Product

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E

$1,051 $1,060

$1,320 $1,332 $1,348 $1,366 $1,390 $1,372 $1,419 $1,387 $1,257

$1,250

NES acq.

$1,277 - $1,270

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E

$215 $210

$157 $202

$226 $222 $220 $236

$293 $279

$200 $225

20% 20%

12%

15%17% 16% 16%

17%

21% 20%

16%18%

~20%

Total Revenues ($M) Gross Margin(2)

Adjusted EBITDA(2) ($M) and Margin

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E

52%54%

47% 48% 48%50% 51% 52%

55% 54% 53% 54% 54%

NES acq.

NES acq.

1) 4Q12 figures are estimates; please see the company’s most recent Form 8-K filed with the SEC on 10/18/122) 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.

Recent Quarterly Performance(1)

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E

$567

$669

$576 $514

$579

$460 $453

$368 $400

$345 $355

$271

$337

Cash Balance ($M)NES acq.

$260 -

$250

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1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q120

100

200

300

400

500

600

700

Direct Indirect

Avaya Product Revenue

($ Millions)

Direct26%

Indirect74%

Product Revenue

© 2012 Avaya – Proprietary. Use pursuant to your signed agreement or Avaya policy. 6

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12E0

200

400

600

800

1000

1200

1400

511 566 546 567669

576 514 579460 453

368 400 345 355 271337

335335 335 335

335

335335

335

335 335335 335

335 335335

335

200200 200 200

200

200200

200

200 200200 200

200 200200

200

$ Millions

Cash Asset Based Revolver Cash Flow Revolver

Strong Liquidity PositionCash plus borrowing capacity under existing revolvers

* Original business model assumed a working capital requirement of only $150M

* Original business model assumed a working capital requirement of only $150M

*

© 2012 Avaya – Proprietary. Use pursuant to your signed agreement or Avaya policy. 7

309

407461

0

100

200

300

400

500

FY09 FY10 FY11

Growing Product Investment

FY2011

17%

14%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Avaya Product Industry Average

Note: Avaya product revenue excludes rental and AFS revenue

R&D as a % of Product RevenueR&D ($M)

*

* FY2012 year to date at 18%

© 2012 Avaya – Proprietary. Use pursuant to your signed agreement or Avaya policy. 8

Recent Acquisitions

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41

6165

61

52

3935

116 5 7

0

10

20

30

40

50

60

70

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12

($ Millions)

Acquisition & Integration Expenses

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• India • Russia• Mexico

• UC/CC Apps• Web Collaboration• Business Analytics• Video • Security• Speech

Global IT Spending Growth Rates

Source: Gartner, Enterprise IT Spending by Vertical Industry, Q2 ‘12

Avaya Momentum and Visibility

• US• Canada• Brazil• APAC

• US Govt.• Western

Europe

Macro Environment Remains Challenged; Customers Forced to Prioritize IT Spend

• Call Control• Voice Endpoints

• TDM Systems/Sets• Traditional Voice

SupportUS EMEA APAC Am. International World

5%

6%

11%

10%

7%

4%

-2%

3%

4%

2%

4%

3%

5%

6%

4%

2011 2012 2013

© 2012 Avaya – Proprietary. Use pursuant to your signed agreement or Avaya policy. 11

Footprint ConsolidationOngoing Headcount Management

Complexity Reduction

Evolution of Cost Structure

FY09 Nortel Close

FY10 FY11 FY12

15,541

21,086

18,900 18,588

16,951

Avaya Nortel Radvision

Today 2015 Goal

Facilities 246> 50%

reduction

Million Sq. Ft. 6 4

Today 2015 Goal

R&D Sites / Product

5 2

Suppliers 5,300 < 1,500

Web Self-Service

34% 75%

EMS / ODMs 7 5

Total Avaya Headcount

First opportunity to deal with size

& complexity

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3Q12 Annualized Adj EBITDA

Impact of FY12 Headcount Actions

Impact of FY13 Actions:RE Consolidation Indirect Spending

Supplier Related Actions HC Management

Benefits & Program Investments

Pro Forma 3Q12 Annual-ized Adj EBITDA

900

1,075

105

135

235

90 1,150

65

($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

Targeted $400M+ annualized cost

reductions by FY15

Committed

Additional opportunity

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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.