8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  November 12, 2015

AVAYA INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-15951		22-3713430
(State or Other Jurisdiction of	(Commission File Number)		(IRS Employer Identification
Incorporation)			Number)
4655 Great America Parkway
Santa Clara, California		95054
(Address of Principal Executive Office)		(Zip Code)

Registrant’s telephone number, including area code:  (908) 953-6000

N/A

(Former Name or Former Address, if Changed Since Last Report)

____________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

As previously announced, at 1:00 p.m. PST on November 12, 2015, Avaya Inc. (the “Company”) will hold a meeting in Santa Clara, California for analysts and investors to cover the Company’s market opportunity, strategic direction, the Company’s initiatives and a financial update. The full investor meeting will be webcast for remote attendees. Details for joining the webcast of the live meeting will be available on the Company’s investor relations website at www.avaya.com/investors. In addition, a copy of the executive presentation materials to be referenced at the meeting is furnished as Exhibit 99.1 and will be available on the Company’s investor relations website at www.avaya.com/investors.

This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d)    Exhibits

Exhibit	Exhibit Name
99.1	Presentation to Investors, dated November 12, 2015, entitled “Avaya 2015 Analyst & Investor Meeting”

Forward-Looking Statements

This current report on Form 8-K contains “forward-looking statements.” All statements other than statements of historical fact are “forward-looking” statements for purposes of the U.S. federal and state securities laws. 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 the negative thereof or other variations thereon or comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes 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 its control. These factors, including those discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014, may cause its 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 further list and description of such risks and uncertainties, please refer to the Company’s filings with the SEC that are available at www.sec.gov. The Company cautions you that the list of important factors included in the Company’s SEC filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		AVAYA INC.
Date: November 12, 2015	By:	/s/ David Vellequette
	Name:	David Vellequette
	Title:	Senior Vice President, Chief Financial Officer

EX-99.1

AVAYA 2015 ANALYST & INVESTOR MEETING November 12, 2015 Exhibit 99.1

© 2015 Avaya Inc. All rights reserved. 2 FORWARD LOOKING STATEMENTS Certain statements contained in this presentation are forward-looking statements, including statements regarding our future financial and operating performance, particularly our guidance regarding Q1 and full FY 16 results, planned and unrealized future savings and FY 16 expected cash savings, 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," “opportunity," "potential," "predict," "should" or "will" or other similar terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. Forward looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including the timing of sales and revenue recognition, our ability to realize the benefits of cost savings initiatives, competitive factors, changes in technology and our high degree of leverage. 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 under the heading “Item 1A Risk Factors”. 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 November 12, 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 our prior filings with the SEC and in our earnings press release issued November 11, 2015. Amounts shown as EBITDA, represent Avaya's adjusted EBITDA as calculated in our reconciliations. Unless otherwise indicated, the following slides include preliminary, unaudited financial and other information that is subject to change, including but not limited to fourth quarter and full year financial results for FY‘15. In addition, other information including but not limited to total demand under contract, professional service backlog normalization, revenue breakdown by segment and revenue by delivery method are all unaudited measures prepared by management that have not been reviewed by our outside auditors. 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. Other than in certain instances, historical amounts presented reflect the sale of ITPS.

© 2015 Avaya Inc. All rights reserved. 3 AGENDA Kevin Kennedy President & CEO Business Update Pierre-Paul Allard SVP, Sales Customer Success Dave Vellequette SVP, CFO Recent Results & Revenue Insight Jim Chirico EVP, Business Ops Operational Optimization Dave Vellequette SVP, CFO FY‘16 EBITDA Outlook Gary Barnett SVP, GM of UC/CC Product Demonstrations

4 © 2015 Avaya Inc. All rights reserved. BUSINESS UPDATE Kevin Kennedy President and Chief Executive Officer

© 2015 Avaya Inc. All rights reserved. 5 What You Now Know About Avaya KEY INVESTOR DAY TAKEAWAYS Reinvented: approaching 75% of revenue from software and services 1 Increasingly strong competitive position 2 Demand stabilized and key investments are focused on growing markets 3 Demonstrated EBITDA margin expansion: up >700 basis points since Q4 FY‘10 to 24% in Q4 FY‘15 as reported 4 At $4.0B revenue, FY‘16 EBITDA $1,000M – $1,025M & cash requirements ≤$870M 5 Note: FY‘16 EBITDA range assumes exchange rates as of 11/10/15.

© 2015 Avaya Inc. All rights reserved. 6 A SOFTWARE AND SERVICES COMPANY Demonstrated transformation  Relentless focus on operational improvement  Performance approaching parity with software & services benchmarks  Evolving consultative services mix with trend towards OpEx and Cloud models  Growing in key investment areas Annualized Revenue per Employee Q4 FY‘15 $342K Q4 FY‘10 $270K New Customer Acquisition Software & Services % of Revenue Net Promoter Score 72%+ 56 ~17% 63% <20 <10% Product Gross Margin (%) Services Gross Margin (%) Total Gross Margin (%) EBITDA (%) 59% 62% 24+% 65% 45% 49% 16+% 52% $4.0B $5.2B Annualized Revenue Run Rate Note: All amounts as reported; revenue per employee based on year end headcount.

© 2015 Avaya Inc. All rights reserved. 7 TECHNOLOGY AND BUSINESS TRANSFORMATION Then (Q4 FY‘10)  Hardware-centric mindset  Legacy telecom sales force  Legacy product portfolio  Large enterprise focus  Concentrated customers  Single-channel, voice  Limited networking presence  Limited cloud presence Now (Q4 FY‘15)  Software and services company  Modernized Go-to-Market  Revamped and expanded product portfolio  Enterprise and midmarket  Broad customer base  Omnichannel  Technology leading fabric networks  Private and public cloud Smaller, agile, more efficient, software & services oriented $4.0B Annualized Revenue @ 24%+ EBITDA Legacy, inefficient, hardware-focused $5.2B Annualized Revenue @ 16%+ EBITDA

© 2015 Avaya Inc. All rights reserved. 8 UC CC Install Customer Care AVAYA THEN AND NOW The specialists in open, mobile enterprise engagement • Broader product portfolio • Software orientation • Added midmarket focus Fabric Networking Team Engagement Fabric Networking Solutions G lo ba l S er vic es Engagement Environment Customer Engagement Solutions Team Engagement Solutions 3rd Party Business Applications Partner Enablem ent Mobility Cloud Customer Engagement • Services-led approach • Longer contract lengths • Shift to cloud Professional Services Text Chat Application Sharing Customer Care Avaya Private Cloud Services PRODUCTS SERVICES

© 2015 Avaya Inc. All rights reserved. 9 VALUE CREATION AND DIFFERENTIATION

© 2015 Avaya Inc. All rights reserved. 10 VALUE WE ADD FOR CUSTOMERS Clear competitive differentiation • Protect customers’ technology investment • Fast deployment • Open, mobile, scalable Team Engagement • Improved NPS scores • Ease of use for new application deployments • Lower operational costs Customer Engagement • Seamless integration of UC/CC deployment • Ability to roll out new services 1/10 time/resources • Enable speed and scale of cyber-security Networking Flexible deployment models via public, private or hybrid cloud

© 2015 Avaya Inc. All rights reserved. 11 WHY WE WIN • No software-only solution • No fabric • No engagement platform • Not multi-platform • Proprietary • Less extensible • Cannot embed technology into 3rd party applications • Less compelling ROI • Cisco consumes at least 50% more bandwidth • Higher total cost of ownership • Complementary to Lync and Skype • UC only (lacks a full stack) • No engagement platform • Less reliable • Less scalable • Cannot embed technology into 3rd party applications • Less extensible • Proprietary • Not multi-platform • Microsoft consumes at least 60% more bandwidth • Higher total cost of ownership • CC only (lacks a full stack) • No engagement platform • Time-to-implement: years vs. days • No single workflow to integrate assets from other vendors • High training and custom development costs • Proprietary – requires Genesys specific development skills

© 2015 Avaya Inc. All rights reserved. 12 Professional Services Customer Care FOCUSED ON CUSTOMER BUSINESS CHALLENGES Technical Trends  Cloud  Cybersecurity  New wave of CC  Analytics  Open, mobile  Google in the enterprise  Networking enabled Business Trends  Increased profitability  Agility & productivity  Customer experience/NPS  The Millennials  Preference of consumption model  BYOD  Corporate dis-aggregations Public, Private & Hybrid Cloud Team Engagement Customer Engagement Fabric Networking

© 2015 Avaya Inc. All rights reserved. 13 WHAT CUSTOMERS ARE SAYING Avaya enables enterprises to move with 10x speed “We gave [Avaya Engagement Development Platform] to the development team and literally two days later, we had video inside our mobile app.” Evan Davis, VP of Engineering Teleperformance “The reliability and performance difference between the two networks was like night and day. We went from a system that sent us in the zone to fear the worst to something that is not only stable but surpassed my expectations.” Edewaa Foster, Gaming Commissioner Black Oak Casino Resort “I’m not an engineer, but I was dragging and dropping, building a whole workflow for a Web calling service, saying, ‘When this happens, play this IVR message.’ I recorded the message myself, put that in there … and in about two minutes we had a Web calling service Snap-In.” Daniel Bergan, Head of Strategy and Transformation Westpac “Avaya was a perfect match for what all of our business requirements were, all of our technical requirements, and most importantly, where the company is going.” Doug Crawford, VP, Global Network Services Warner Bros. Entertainment

© 2015 Avaya Inc. All rights reserved. 14 A BROAD & DIVERSE CUSTOMER BASE Relevance across industries and verticals

© 2015 Avaya Inc. All rights reserved. 15 SERVING A LARGE GLOBAL MARKET Note: Sources – [1] Dell’Oro Group; [2] Gartner, Inc.; [3] T3i Group; [4] Frost & Sullivan; [5] IntelliCom Analytics *Avaya internal estimate 2014 SUB-MARKETS: Rank Share Unified Communications [1] 2 23% Telephony Systems [1] 1 21% SME Telephony Systems [1] 1 25% Unified Messaging [3] 1 39% Mobile Voice and UC Client [4] 3 16% Contact Center/ACD [2] 1 26% Fabric-Based Networking* Leader* Voice Maintenance Services [5] 1 10% TEAM ENGAGEMENT CUSTOMER ENGAGEMENT FABRIC-BASED NETWORKING SERVICES

© 2015 Avaya Inc. All rights reserved. 16 -10.2% -8.2% -4.5% -6.6% Market Change (Revenue) Avaya Reported Revenue Change 18.5 18.0 16.8 17.1 19.8 22.0 19.7 19.5 19.8 0 5 10 15 20 25 DIVERSIFYING FROM ENTERPRISE UC UC market has been in transition for several years Avaya Total Revenue Declined Less Than UC Market Avaya Maintained Line Share Avaya Enterprise Telephony Revenue Share Avaya PBX Line Share Q2 FY‘15 Q2 FY‘14 Q1 FY‘15 Q3 FY‘14 16.6 Q4 FY‘14 Source: Frost & Sullivan, Enterprise Communications Platform and Endpoints Market Source: Infonetics Research >50% +12% +3% +2% +2% Fabric-based Networking Customer Care Cloud Professional Services Contact Center $2B $15B $7B $6B $3B CAGR (13-18) 2016 Served -1% UC Midmarket $7B Avaya Diversified to Grow 2014 2015 Note: *CAGRs and Served Market Estimates are Avaya company market estimates based on inputs from IDC, TechAisle, Dell’Oro Group Gartner, T3i Group, MZA, Ltd, Wainhouse Research, Frost & Sullivan, & IntelliCom Analytics  Legacy UC market in decline  Avaya reduced UC exposure via diversification  Line share has been maintained  Investments focused on growth

© 2015 Avaya Inc. All rights reserved. 17 INITIATIVES FOCUSED ON GROWTH OPPORTUNITIES Products CONTACT CENTER  Omnichannel workflow automation  Leverage UC/CC convergence  Refresh cycle underway  Cloud & Managed Services migration  New quick start offers MIDMARKET  Fully scalable portfolio  New offerings  Premise and cloud  New partners  New economics NETWORKING  Unique offerings  Cloud attachment  Midmarket attachment  Theater aligned specialists  Focus on campus and branch  Specialized by vertical  New compensation

© 2015 Avaya Inc. All rights reserved. 18 INITIATIVES FOCUSED ON GROWTH OPPORTUNITIES Services CUSTOMER CARE  New commercials – Enterprise license agreement  Improved renewal practices  Increasing POS attach  Software model governance  Partner model evolution CLOUD  Drive from overlay to theaters  Focus on target deal size  Improve cycle times  New offers  UC/CC convergence  New sales compensation plan PROFESSIONAL SERVICES  New prepackaged offers  Higher attach rates  Improved regional staff deployment  New sales compensation plan

© 2015 Avaya Inc. All rights reserved. 19 New Offers • Flexible packaging • Full stack solution • Unique partner value • First 10 partners signed FY‘16 BEGINS NEW PRODUCT CYCLE Enterprise • Leader in Gartner magic quadrants: • Corporate Telephony (10th year) • Unified Communications (7th year) • Contact Center Infrastructure (15th year) Midmarket • Leader in Gartner magic quadrant • Unified Communications for Midsized Enterprises in North America • First magic quadrant focused on midsized businesses • Comprehensive UC and CC portfolio New Products Aura 7, Elite 7, SBC 7, EDP 3.1 • Simplification • Scale • Security • Software

© 2015 Avaya Inc. All rights reserved. 20 INVESTMENTS AND M&A COMPLEMENT R&D Driving increased integration and accelerating product relevance

© 2015 Avaya Inc. All rights reserved. 21 GO-TO-MARKET INVESTMENTS  FY‘15 sales investment was 2% of reported revenue above target model level  Rebuilt direct coverage in enterprise  Evolving consultative services mix with movement to OpEx/Cloud models  Driving midmarket opportunities  Aligning partner programs to growth Transformation of coverage models to drive growth

© 2015 Avaya Inc. All rights reserved. 22 PARTNERSHIPS DRIVE OPPORTUNITY Aligned with IT leaders

© 2015 Avaya Inc. All rights reserved. 23 LEADING INDICATORS  Total demand grew 1% YoY  Recurring revenue mix and average contract term increasing  Q4 FY‘15 YoY bookings growth – US and Americas International – Cloud & Managed Services – Contact Center Longer-term customer commitments drive demand $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Q1 FY'14 Q2 FY'14 Q3 FY'14 Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 Total Demand Under Contract ($M) Note: Amounts in constant currency.

© 2015 Avaya Inc. All rights reserved. 24 DELIVERING UNMATCHED SOLUTIONS  Best-in-class Net Promoter Scores  Operational cost savings in excess of $1B for enterprise contact centers  Scale for new, growth companies  Reliable foundation for public safety (911, 311, 112)  Breakthrough innovation to serve customers – Workflow automation through existing infrastructure – Fabric networks to speed deployment Avaya can help customers achieve:

25 © 2015 Avaya Inc. All rights reserved. CUSTOMER SUCCESS Pierre-Paul Allard Senior Vice President Worldwide Sales and President Global Field Operations

© 2015 Avaya Inc. All rights reserved. 26 BURJ KHALIFA Avaya Business Value  Business continuity for the most complex environment in the world  Security - Separation of services - Multi-tenancy support  Breakthrough speed to delivery and services Breakthrough speed to deploy; tallest fabric ever built

© 2015 Avaya Inc. All rights reserved. 27 MICHIGAN STATE UNIVERSITY Avaya Business Value  New value, beyond the telephony platform  Simple solutions for straight-forward, fast development  Business-impacting results Turning students into application developers

© 2015 Avaya Inc. All rights reserved. 28 TELEPERFORMANCE Avaya Business Value  Breakthrough speed in hours vs. years – Delivered in 2 days; Competitor struggled for 2 years  Enabling mobile applications to interact with CRM  Enhancing CRM with mobile applications Confidence and speed to results

29 © 2015 Avaya Inc. All rights reserved. RECENT RESULTS & REVENUE INSIGHT Dave Vellequette Senior Vice President and Chief Financial Officer

© 2015 Avaya Inc. All rights reserved. 30 FINANCIAL RESULTS ($M constant Fx) Non-GAAP Q4 FY‘14 Actual Q3 FY‘15 Actual Q4 FY‘15 Actual Revenue $1,091 $996 $1,008 Gross Margin % 60% 60% 62% Oper Expense % 40% 43% 42% Oper Income % 21% 16% 20% EBITDA $ $265 $209 $246 EBITDA % 24% 21% 24% Q4 FY‘15  Grew revenue sequentially  Record gross margins  Strong EBITDA performance  Executed against operational improvement objectives  $91M free cash flow for FY‘15 Q1 FY‘16 Guidance  Revenue $980M - $1,020M  EBITDA 22% - 25%

© 2015 Avaya Inc. All rights reserved. 31 YEAR-OVER-YEAR REVENUE  H2 FY‘14: professional services management identified $48M of aged professional services projects in backlog  Q4 FY‘14: $31M aged projects recognized for revenue; Q1 FY‘15: $17M aged projects recognized for revenue $0 $200 $400 $600 $800 $1,000 $1,200 Q4 FY‘15 was 5% lower than Q4 FY‘14 normalized for professional services Q4 FY‘14 $1,091 Q4 FY‘14 $1,060 Q4 FY‘15 $1,008 ($31M) Aged PS Backlog Normalization -8% -5% Note: Historical amounts in constant currency. ($M)

© 2015 Avaya Inc. All rights reserved. 32 REVENUE DECLINE DECELERATES: APPROACHING STABILIZATION *Normalized for aged PS project backlog closure; FY‘16 represents midpoint of guidance. Year-over-year change in constant currency Q1 Q2 Q3 Q4 FY‘14 (6%) (2%) (6%) (6%)* FY‘15 (5%)* (3%) (2%) (5%)* FY‘16 (3%)*

© 2015 Avaya Inc. All rights reserved. 33 EVOLVING REVENUE COMPOSITION Shift to software and services Commentary:  Software & Services: – Q1 FY‘13 67% vs. Q4 FY‘15 72%  Recurring revenue: – Q1 FY‘13 44% vs. Q4 FY‘15 50%  Maintenance stabilized  Cloud & Managed Services growing  Average contract term has increased – Maintenance ~17 month term – Cloud and Managed Services ~39 - 42 month term % of Revenue 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY'13 FY'14 FY'15 Hardware Services Software Note: Recurring revenues includes maintenance, private cloud & managed services, and upgrade advantage.

© 2015 Avaya Inc. All rights reserved. 34 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% FY'13 FY'14 FY'15 FLAGSHIP REVENUE INCREASING Flagship exceeds core for the first time for the full year Q4 FY‘15 % of Total Flagship 49% Core 43% Legacy 8% Note: 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

© 2015 Avaya Inc. All rights reserved. 35 REVENUE CHANGES Full year FY‘15 revenue details *In constant currency and normalized for aged PS project backlog closure **Q4 FY‘15 vs Q4 FY‘14 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 FY'14 FY'15 FY15 vs FY14 Commentary Networking Products (3%) Networking grew 5% in Q4 FY‘15; fabric growing significantly faster** UC Products (8%) UC business transitioning CC Products +3% CC grew 6% in Q4 FY‘15**; refresh cycle beginning Professional Services +3% PS growing with market Cloud & Managed Services +8% Cloud grew 11% in Q4 FY‘15** Maintenance (5%) Maintenance stabilized for 3 consecutive quarters

© 2015 Avaya Inc. All rights reserved. 36 UC BUSINESS TRANSITIONING $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 FY'14 FY'15 Software Hardware $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 Q4 FY'13 Q4 FY'14 Q4 FY'15 Total Private Cloud Services Under Contract Hardware to Software Shift to Cloud & Managed Services Enterprise to Midmarket  Fully scalable portfolio  New offerings  Premise and cloud  New partners  New economics Note: all amounts in constant currency

© 2015 Avaya Inc. All rights reserved. 37 MAINTENANCE BASE STABILIZED $0 $50 $100 $150 $200 $250 $300 $350 $400 Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 Recurring Maintenance Revenue ($M) Initiatives For Growth: New commercials – Enterprise license agreements  Improved renewal practices Increasing POS attach Software model governance Partner model evolution Note: Amounts in constant currency.

© 2015 Avaya Inc. All rights reserved. 38 NETWORKING GROWTH ACCELERATING 0 50 100 150 200 250 300 350 400 450 $0 $10 $20 $30 $40 $50 $60 Q1 FY'14 Q2 FY'14 Q3 FY'14 Q4 FY'14 Q1 FY'15 Q2 FY'15 Q3 FY'15 Q4 FY'15 N u mb e r o f D e p lo yment s R e v e n u e ($ M ) Fabric-Based Solutions Traditional Solutions Fabric Deployments Transition from prior generation products nearly complete Newest generation networking products grew 52% YoY in FY‘15 Note: Amounts are as reported.

© 2015 Avaya Inc. All rights reserved. 39 ILLUSTRATION: REVENUE INFLECTION SCENARIO $3,000 $3,200 $3,400 $3,600 $3,800 $4,000 $4,200 FY‘15 Revenue $4,050M UC decline Q4 FY‘15 TRENDLINE $85M CC +5% Networking +10% Cloud +10% PS +3% FY‘16 EXECUTION INITIATIVES $80M Midmarket Go-to- Market Productivity Revenue -$120M Note: For Illustrative purposes only – not intended as guidance.

40 © 2015 Avaya Inc. All rights reserved. OPERATIONAL OPTIMIZATION Jim Chirico Executive Vice President, Business Operations

© 2015 Avaya Inc. All rights reserved. 41 MULTI-YEAR TREND OF OPERATIONAL IMPROVEMENTS Track record of execution Solid Gross Margin Performance 40% 45% 50% 55% 60% 65% Product Service Total FY'10 FY'15 0% 5% 10% 15% 20% 25% FY'10 FY'15 FY'10 FY'15 Significant EBITDA % Increase Note: All amounts are as reported.

© 2015 Avaya Inc. All rights reserved. 42 AVAYA 2010-2015 Business Operations role, reporting to CEO established in 2009  Structured and fact-based  analyze trends, address root causes, set targets based on benchmarks  New operating models  best-in-class process and structure with culture of accountability  Systematic  sustainable changes underpinned by automation, standardization and high quality  Leadership  bring in experts, accelerate change, drive through cross functional alignment  Measured & controlled  sequenced improvements, managed the details, balanced the business risk Key Outcomes  1070 bps gross margin expansion  650 bps EBITDA margin increase  28% cost reduction ($1.1B)  35% headcount reduction  30% improvement in productivity Keys to Success Drive continuous Improvements YoY

© 2015 Avaya Inc. All rights reserved. 43 Operational improvement and complexity reduction at or near BIC PERFORMANCE SCORECARD Operational Improvements Financial Profitability Employee Productivity (YE) Complexity Reduction - RE Footprint Expense to Revenue (E/R) Metric FY10 FY11 FY12 FY13 FY14 FY15 BIC Facilities 276 239 229 195 175 170 - Sq. Ft. (000) 8128 6294 6116 3920 3510 2977 - Sq. Ft. / employee 430 337 361 274 269 256 238 Metric FY10 FY11 FY12 FY13 FY14 FY15 BIC E/R % 72.2 70.1 70.6 70.5 68.5 68.2 - G&A % 6.9% 6.9% 6.2% 6.7% 6.7% 6.7% 5-6% Fixed Cost % of Revenue 47% 46% 44% 44% 41% 39% Metric FY10 FY11 FY12 FY13 FY14 FY15 BIC SGM % 46.4% 48.2% 50.2% 52.8% 55.8% 57.6% 57-59% PGM % 52.8% 56.5% 57.4% 58.9% 61.1% 63.3% 65-68% Metric FY10 FY11 FY12 FY13 FY14 FY15 BIC Rev / Employee $270K $298K $311K $330K $335K $350K $380k EBITDA / Employee $42K $52K $57K $66K $69K $77K $100k % HC LCC 21.2% 23.0% 24.5% 24.8% 23.5% 24.3% 28% People Cost/EE $131K $135K $135K $138K $142K $137K - Metric FY10 FY11 FY12 FY13 FY14 FY15 BIC Collection Efficiency % 92% 95% 96% 96+% 96+% 97% 95% NPS ( YE) -- - 32 41 50 56 55-60 OCOGS % of Rev $388 / 14.0% $317/ 10.6% $274 10.2% $235/ 10.1% $194/ 9.0% $183/ 9.0% 9.0% Continuous Eng. $M $83 $73 $61 $49 $40 $35 - Warehousing $M $27 $23 $20 $18 $18 $17 - Inventory $M $212 $166 $148 $124 $96 $78 - Inventory Turns 6.3X 7.1X 7.3X 7.3X 7.6X 9.1X 12X- 14X On-Time-Ship % 86% 87% 92% 93% 94% 95% 95% Ocean/Air Mix % 29% 58% 50% 83% 83% 85% 83% Supply Chain Cost % 6.5% 5.3% 4.7% 4.5% 4.1% 3.9% 4.0% Services SC Cost % 3.0% 1.4% 1.7% 1.3% 1.1% 1.1% 1.2% Web Adoption % 4% 11% 42% 77% 88% 91% 90% Note: Illustrative of performance scorecard amounts reflect management metrics for internal use only; LCC % Normalized for O/S (OEFC, Finance, HP LCC HC) example for internal operating purposes.

© 2015 Avaya Inc. All rights reserved. 44 EMPHASIS AREA Systems Margin Expansion Operational Optimization KEY LEVERS  Realization of FY‘15 actions  Automation capabilities for quoting, pricing, renewals and cycle-time improvement  New sales tools to increase engagement time with customers  Leverage our variable vs. fixed cost structure  Optimize operational performance - value pricing  Implement software industry best practices  Compensation aligned with software and services business  Sales Transformation: Retool at all levels and increased productivity  Process Redesign: Quote to cash, renewals process, distributor optimization  Organizational Redesign: Workforce transformation OUTCOME  Improved ease of use, renewal rates  Increased speed of commerce, and efficiencies of front-end process  Better predictability on EBITDA  Accretive to current margins  Sustainable margins  Reduction in selling cost  Fewer redundancy and overlay structures  Next generation workforce aligned with Stage III transformation NEXT STAGE OF OPERATIONAL IMPROVEMENT Leveraging proven management system Operational Improvement stage has lower upfront cash outlays relative to history Increased gross margin, lower operating expenses and higher revenue  $60M – $110M annualized savings SAVINGS $10M – $20M $20M – $40M $30M – $50M

45 © 2015 Avaya Inc. All rights reserved. FY‘16 EBITDA OUTLOOK Dave Vellequette Senior Vice President and Chief Financial Officer

© 2015 Avaya Inc. All rights reserved. 46 $500 $600 $700 $800 $900 $1,000 $1,100 Unrealized Savings from FY‘16 Activities FY‘16 Expected Cash Requirements FY‘16 BUSINESS MODEL DRIVES EBITDA EXPANSION At $4.0B revenue, FY‘16 EBITDA outlook of $1,000M - $1,025M ≤$870M Unrealized Savings from FY‘15 Actions Potential Savings from FY‘16 Activities FY‘16 EBITDA Outlook FY‘15 Actual EBITDA FY‘16 EBITDA Improvements $1,000M to $1,025M $60M $40M - $65M $20M - $45M Note: FY‘16 EBITDA range assumes exchange rates as of 11/10/15.

© 2015 Avaya Inc. All rights reserved. 47 What You Now Know About Avaya KEY INVESTOR DAY TAKEAWAYS Reinvented: approaching 75% of revenue from software and services 1 Increasingly strong competitive position 2 Demand stabilized and key investments are focused on growing markets 3 Demonstrated EBITDA margin expansion: up >700 basis points since Q4 FY‘10 to 24% in Q4 FY‘15 as reported 4 At $4.0B revenue, FY‘16 EBITDA $1,000M – $1,025M & cash requirements ≤$870M 5 Note: FY‘16 EBITDA range assumes exchange rates as of 11/10/15.

© 2015 Avaya Inc. All rights reserved. 48 © 2015 Avaya Inc. All rights reserved.