March 11, 2015

Avaya Q1 2015 Financial Results

Goldman Sachs TMT Leveraged Finance Conference

© 2015 Avaya 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 www.sec.gov and in particular, our 2014 Form 10-K filed with the SEC on November 26, 2014. 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, 2015. 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 www.avaya.com/investors . None of the information included on the website is incorporated by reference in this presentation.

Historical amounts presented reflect the sale of ITPS.

© 2015 Avaya 3

Avaya Now

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High

Recurring (3 year)

Low

Por

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Pos

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Revenue Category (# of seats)

Por

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FabricTeam Engagement

Customer Engagement

ProfessionalServices

Customer Care Avaya Private Cloud Services

Revenue Category (term)

Non-Recurring Recurring (5 year)

© 2015 Avaya 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 quarterNOTE: Historical amounts presented reflect the sale of ITPS

© 2015 Avaya 5

Financial Summary($M) Non-GAAP

4Q14Actual

1Q15Actual

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 our most recent SEC filings and the tables at the end of this presentation

FY 11 FY 12 FY 13 FY 14 1QF14 4QF14 1QF15

Flagship 32% 35% 39% 43% 43% 44% 45%

Core 48% 49% 47% 45% 45% 47% 45%

Products & Services* (% of Total Avaya Revenue)

For a reconciliation of non-GAAP to GAAP financial information, please see www.avaya.com/investors.

NOTE: Historical amounts presented reflect the sale of ITPS

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 servicesLegacy includes legacy Nortel and Tenovis, excluding Networking

© 2015 Avaya 6

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

2015 2016 2017 2018 2019 2020 2021

Avaya Debt Maturity Profile($ in Billions, by calendar year)

$0.12

$2.0

$1.1$1.3 $1.4

Overall Average Portfolio Interest Rate 6.9%

Today3/11/15

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

© 2015 Avaya 7

A Software and Services Company FQ1’15 Results

Avaya NowNet 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 Q4FY14For a reconciliation of non-GAAP to GAAP financial information, please see www.avaya.com/investors

© 2015 Avaya 8