Milestones and MOMENTs

Avaya Annual REPORT TO CUSTOMERS

Contents

Product Innovation & Transparency

MEETING CUSTOMERS WHERE THEY ARE

Rebuilding avaya's momentum

Avaya is back.

We are happy to share the first edition of our annual report to customers. At Avaya, our reason to be is our customers, and now, as a transformed private company, we're in one of the best position to make investments we believe will better serve you, and the proof is in our progress. As such, it's more important than ever to share how we're doing on our journey as a leader in Enterprise CX.

Throughout this report, we'll demonstrate the value we are bringing to customers, on Avaya's technology innovation, how the company is building business momentum, our strategic focus on market-leading customer experience products and services, the work we are doing with key ecosystem partners, our accomplishments in sustainability and diversity, the recognition we've earned along the way, and the new financial strength of our company.

I encourage you to explore these topics and click into the details to learn more. Thank you for your continued loyalty; we're grateful for your ongoing business. Our future is indeed bright and by working together we're bringing innovation to our customers to inspire confidence and build world-class customer experiences together.

Avaya is executing every day to take full advantage of the hard work done over the last year to transform our operations, business strategy, culture, and balance sheet, which is now a genuine competitive advantage.

—

Alan Masarek,

CEO, Avaya

Two women standing and a man sat at a desk, smiling.

It's all about the customer experience.

Increasingly, companies understand the way to differentiate in the market is through unique, compelling, and differentiating customer experiences. In fact, analysts have defined today's market as a “CX economy.”

For Avaya, customer service and experience are core to the company — CX is our “North Star.” Customers count on us for the contact center and communications technology that make customer interactions not only work but work better. That is why more and more enterprise customers, across many industries, trust Avaya as their contact center solutions provider.

Avaya's North Star

Choose your journey.

Avaya understands that companies approach their path to technology innovation at different paces, driven by company size, available resources, industry, competitive landscape, and maturity. Unlike many tech vendors who insist on customers taking the vendor's approach to innovation, Avaya's perspective is unique — we let customers choose their own journey, to innovate and consume technology in the way that makes the most sense for their unique business requirements.

Giving customers the freedom to choose their path and pace to innovation has been warmly embraced in the market. Not only is this true for existing customers who already count on Avaya for their customer experience and communications needs, but also by hundreds and hundreds of new customers that have turned to Avaya for trusted technology products and services.

Innovation at Avaya

Woman sat at a desk, smiling, holding a tablet.

Organizations around the world choose Avaya.

Mackenzi Eisman, Global Payments

Nigel Mansfield, Bayview Technologies

Brian Thompson, Alburqueque Public Schools

Brian Thompson, Albuquerque Public Schools

2023: SUPPORTING CUSTOMERS GLOBALLY

Avaya's quest is to help our customers drive business momentum by creating unforgettable customer and employee experiences. The world's biggest brands trust and rely on Avaya to deliver unmatched customer experiences.

Federal/National governments in 97 countries choose Avaya to better serve their constituents.

10/10

The world's top 10 airlines choose Avaya for a higher level of customer service.

8,000

Over 8,000 healthcare organizations around the world choose Avaya to help improve patient outcomes.

3,500+

3,500+ institutions worldwide choose Avaya to educate and inform their staff and students.

19/19

The top 19 global banks choose Avaya to help their customers bank from anywhere.

10/10

The top 10 global automotive companies choose Avaya to drive customer engagement.

Johns Hopkins

At Johns Hopkins Healthcare System, personalized service begins with a rep who already knows which patient is calling and has their health history ready on screen.

Standard Chartered

Standard Chartered provides the convenience of digital banking with a personalized human touch.

Atento

Atento constantly boosts customer satisfaction and agent productivity with always learning AI that takes customer conversations from recordings to actionable insights.

Clemson University

Clemson University develops an online experiential course that's even more successful than its traditional in-person counterpart, netting the school an Education Hero of the Year award.

AVAYA'S BUSINESS MOMENTUM CONTINUES TO GROW

Over the past year, our customer-centric approach and innovation generated momentum all around the world. Evidenced, for example, by the addition of 600 new customer logos in just one 90-day period mid-year.

North America

In Orlando, Florida Give Kids the World Village, a place for critically-ill children and their families to have wish vacations, is getting help from Avaya to deliver new guest experiences, improve reliability, prevent downtime, and drive down costs for this non-profit.

In Albuquerque, New Mexico, the Albuquerque Public School System leveraged Avaya's expertise and technology to simplify communications and regulate costs through a digital transformation onto the Avaya Experience Platform.

Outside Philadelphia, Pennsylvania, C3i Solutions, a multi-channel customer engagement services and BPO Healthcare provider, is using Avaya Conversational Intelligence and Avaya Communication APIs to offer unique and memorable experiences for its clients, customers, and employees.

In Canada, a key global market for Avaya, the company is enabling next-generation 9-1-1 services with public safety customers like the Ottawa Police, the Province of British Columbia, and the Toronto Fire Services Dispatch Centre, alongside partners like Komutel, Network Telecom, and Netagen.

North America public sector

As the only major communication and collaboration solution provider that can offer enterprise-scale public, private, or hybrid cloud, Avaya has been awarded a cooperative purchasing contract with Sourcewell, the leading government purchasing organization in North America. Sourcewell provides more than 500 competitively solicited contracts to government, education, and non-profit entities, capturing the buying power of more than 50,000 organizations.

Sourcewell amplifies our reach, enabling us to simplify the contractual process for an increased number of customers.

—

Jenifer Bond,

Vice President of U.S. State, Local and Education Sales, Avaya

Latin America

In Mexico, a leading Latin American market in which Avaya was named #4 on a list of the top “Super Companies” (“Super Empresas”) by Mexican business magazine Expansion. Key brands entrusting Avaya include Walmart Mexico; BanregioGrupoLomas (Hotel Nickelodeon), and Grupo Estrella Blanca, the country's leading bus transportation company serving 1200 destinations in Mexico and onwards to the US — using Avaya solutions to enhance customer experience and service.

SKY is one of the largest satellite pay TV operators in Brazil, with more than 4 million customers. They drove a 70 percent reduction in call infrastructure and IVR costs and significant efficiency gains in service working with Avaya and its partners Betta and Noovi.

At Grupo Estrella Blanca, prioritizing our customers' experience is paramount, and we are dedicated to achieving excellence in this regard, and our partnership with Avaya has proven instrumental in realizing this goal.

—

Eduardo Porras,

Sales and Marketing Director, Grupo Estrella Blanca

EMEA

Kura, the UK's largest independent outsourcer, is transforming its contact center capability with Avaya Enterprise Cloud, offering its clients contact center services with innovation options such as speech analytics, digital and social channels, and secure PCI payments as required.

And in the Netherlands, G-Star RAW, one of the most renowned clothing brands in the world, has tapped Avaya to enable seamless collaboration between staff across all its global locations, while also reducing the burden on its small and nimble IT team.

The quality of support we got — and still get — from Avaya is very well received. But the TCO for Avaya Cloud Office was less than what we were paying to run our legacy phone system.

—

Edwin Blaak,

IT Manager, G-Star

Asia-Pacific

At the Victoria YMCA in Australia, improved collaboration and reduced organization silos among 5,000 staff across 81 locations were the outcomes of an all-in-one communications solution from Avaya.

In India, businesses are looking to infuse AI into customer experience. Key clients include Airtel, State Bank of India (SBI), and the Government of India, and Avaya contact center solutions are used for the National Emergency Response Services.

Awards & Accolades

Recognition for a job well done.

Throughout the last year, even as the company was going through a significant transformation, Avaya increased focus on building innovative products, bringing value to customers, and staying ahead of the competition. That's why we are particularly proud when the company and our products are recognized by industry watchers, media companies, and analyst firms. Such was the case in the last year, for example, with recognition for our partner program from CRN, a reward for excellent customer satisfaction from TrustRadius, recognition for our use of AI in contact centers by Norns Awards for Research and Technology, and UC Today named Alan Masarek UC Leader of the Year for successfully leading Avaya's business and financial restructuring.

See all awards

What's harder to come by is visionary leadership, and in my view, Alan brings that in ways I didn't see from other entries in this category.

—

Jon Arnold,

Principal, J Arnold & Associates, UC Today Judge

Product Innovation & Transparency

A key tenet of Avaya's transformation was to streamline the company's product portfolio, be more transparent about the product roadmap, and deliver innovation continuously to drive value for customers. Here, Avaya's progress in the last year is something to be proud of: Meeting CEO Alan Masarek's promise to publish roadmaps, Avaya has issued public product roadmap updates every quarter. Additionally, the company has kept its commitments on innovation, significantly increasing on-time delivery of product milestones to more than 90% — up more than 2X and above industry average.

And Avaya is investing for the future even while it has been transforming the company's structure and operations, with the hiring of more than 200 additional engineering personnel in fiscal year 2023. Working from newly established product and engineering centers of excellence around the world, Avaya has more than 1,200 people who work hard every day to deliver innovation for customers.

Three call center agents with headsets talking.

Innovation without disruption

Helping customers innovate to drive business outcomes is central to Avaya's value proposition. Innovation in IT can come at a heavy price—requiring enormous change and disruption to systems with rip and replace approaches. However, Avaya has a huge base of customers with well-established communications investments to facilitate more seamless outcomes. Enterprises want a path to innovation without any disruption to critical business operations and have been very receptive to Avaya's “innovation without disruption” approach.

Avaya's innovation without disruption strategy sets it apart from competitors because it gives organizations the freedom to embrace the cloud journey at their own pace while protecting their existing investments and not disturbing their proprietary voice implementations.

—

Susan Terry,

Global Vice President, Platform Maximization, Avaya

Avaya customers have been clear. They want access to new capabilities for their contact centers—innovations like chatbots, social, agent transcription, and AI-powered technologies. They want to add solutions and improvements to their existing systems without ripping them out. Avaya understands these nuances and areas of concern for its customers and takes an approach to meet customers where they are to address their unique challenges and forge their own innovation path.

Meeting Customers Where They Are

Your journey. Your pace.

The Avaya Experience Platform gives customers options to choose their own innovation journey. Perfect for the enterprise, but scalable to any size application, Avaya Experience Platform helps companies to connect with their customers where and how they want, turning every interaction into a chance for business growth.

Man and woman at desk looking at tablet.

AI-Powered customer experiences.

Avaya understands how AI is becoming very significant in customer experience, improving customer interactions, and helping to make contact center agents more productive. The capabilities being delivered by AI are super-charging organizations' ability to innovate with their customer experiences.

Avaya is placing generative AI at the heart of CX transformation, touching everything from agent experience to customer satisfaction to operations. Whether it's ChatGPT or other generative AI solutions, there are literally hundreds of AI technologies available influencing the customer experience space. It's quickly becoming table stakes for customers who won't develop these approaches on their own but will increasingly turn to their software providers to integrate these advanced solutions into their stack. Avaya's distinct software, which incorporates Avaya and third-party AI-based platforms and solutions, support, and services brings progress and results into customers' established operations.

Customers want a migration path, not something they're going to have to forklift upgrade. For Avaya, now it's very clear. They can take customers on this continuum of any kind of cloud they want, but they have a definitive landing spot for whatever that customer really wants.

—

Zeus Kerravala,

Founder and Principal Analyst, ZK Research

Avaya launches expert-led digital transformation services.

Today's businesses acknowledge the crucial roles that AI and cloud technology play in optimizing their operations and enhancing their customer experiences. However, the shortage of specialized talent required to integrate these technologies, coupled with the rapid pace of AI advancements, often delays the decision to deploy these technologies or hinders their success.

To help customers accelerate these digital transformation projects, Avaya has reimagined professional services by launching Avaya Customer Experience Services (ACES), an enhanced approach that integrates AI, cloud, and digital technologies to drive better business outcomes.

ACES will not only leverage Avaya technology and experienced experts, but also enable customers to seamlessly integrate capabilities from Avaya's ecosystem of partners.

Strategic partnerships that deliver for customers.

Avaya announced a partnership expansion with Microsoft, pairing Avaya Enterprise Cloud with Microsoft Azure to provide customers with even more cloud options with unrivaled reliability, agility, and scale. Furthermore, we achieved co-sell ready status, which means Avaya will work directly with Microsoft sales teams and partners on joint selling and enablement opportunities. This strategic partnership makes it even easier for customers to benefit from their investments in Microsoft technologies to accelerate moving communications and contact center workloads to Microsoft Azure.

Alcatel-Lucent Enterprise and Avaya are partnering across the globe to help customers with their digital transformation goals. This integration is key to enable both Alcatel-Lucent Enterprise and Avaya customers to innovate using an expanding, increasingly rich and complementary set of capabilities from either company, and painlessly roll them out without the need for operationally disruptive technology replacement initiatives.

Expanded alliances

Avaya Experience Platform and Alcatel-Lucent Enterprise Digital Age Networking combine our complementary world-class enterprise solutions to support our customers' digital transformation.

—

Rukmini Glanard,

Chief Business Officer, Alcatel-Lucent Enterprise

Delivering customer experience innovation with trusted partners.

Avaya can extend the value of investments in customer experience solutions for customers by adding powerful and innovative capabilities through its ecosystems of trusted partners.

Avaya and partners recently announced solutions for the contact center that address security with biometrics, powerful conversational AI, and proactive customer outreach experiences to help customers take advantage of newer, advanced technologies on top of existing contact center investments.

Our partnerships

Workers at desks in open office, eating and talking

CX innovation through AI

Google Cloud AI paired with Avaya provides next generation contact center solutions. With Avaya Experience Platform, now recognized by Google as a Chrome Enterprise Recommended Solution for ChromeOS, Avaya boosts agent productivity and enhances security.

Seamless cloud communications and collaboration

RingCentral, provider of cloud-based communication and collaboration products and services for businesses, expanded its strategic partnership with Avaya to help customers on a path to seamless cloud functionality at a pace that meets their needs.

Biometric security in the contact center

Working with Journey.ai, a groundbreaking cybersecurity software business, Avaya is making available Journey's biometric authentication technology, enabling on-premises-based contact centers to authenticate agents using biometrics instead of passwords to offer more robust security and an enhanced agent experience.

Conversational and generative AI solutions

Cognigy, the market leader in conversational AI, works with Avaya to deliver next-generation conversational and generative AI solutions that enable Avaya customers to create next-generation customer experiences while improving efficiency and increasing employee engagement, delivering 24/7, personalized service experiences at scale over voice and chat.

Hosted contact center solutions

Working with Startek, a global customer experience solutions provider across 13 countries, Avaya gains a key hosting partner for a range of Avaya solutions to offer customers' contact center agents institutional expertise in customer experience through all-inclusive, easy-to-manage, subscription-based services.

Proactive customer experiences

Alvaria, a leader in customer and employee experience, partners with Avaya to help the world's largest brands transition from reactive to proactive customer experiences in the cloud with advanced outbound capabilities to enable modern, proactive, compliant campaigns for customer acquisition, collections, growth, and driving customer loyalty and retention.

Customer success platform

Salesforce, The world's #1 CRM, integrates with Avaya's contact center products to enable businesses to connect with their customers in new ways using the latest innovations in cloud, social, mobile and data science technologies.

Customer engagement solutions

Avaya and Verint partner to deliver innovative solutions that help simplify, modernize and automate customer engagement while reducing the cost and complexity of customer operations.

Avaya's largest global partner

Customers want experiences that are effortless. Employees want easy access to the people and tools they need. Avaya and C1, make it all possible.

Journey.ai and Cognigy offer Avaya customers the opportunity to reimagine and reinvent how they interact with their own customer bases, bringing secure interactions and AI to customer interactions.

—

Dave Michels,

Contributing Editor and Analyst, TalkingPointz

Building for the future

Building financial strength.

Upon completing our financial restructuring in May 2023, Avaya emerged in a position of financial strength, having eliminated the vast majority of its debt and significantly recapitalizing with fresh investment. Key financial metrics as of September 1, 2023, include:

75%

Debt of approximately $830 million, which is 75 percent lower than pre recapitalization, and with an extension of maturity on the term loan to 2028.

$600M

Cash and cash equivalents of greater than $600 million.

$128M

Revolving credit facility established.

< 1X

An adjusted pro forma net leverage ratio of less than 1x.*

*Last twelve months adjusted EBITDA further adjusted for pro forma cost savings initiatives and normalized revenue, which eliminates the ASC 606 impact of pulling forward subscription revenue for certain subscription contracts.

I don't know whose balance sheet I'd trade places with, but the financial strength of Avaya now is a competitive advantage.

—

Alan Masarek,

CEO, Avaya

Amy O'Keefe, CFO, Avaya; Omar Javaid, CPO, Avaya; Josh Mueller, CMO, Avaya; Marylou Maco, CRO, Avaya; Soren Abildgaard, CTO, Avaya.

Strengthening company leadership.

Adding key executive experience and unique perspectives to our team helps drive Avaya's future agenda and business transformation. This year, Avaya made appointments in critical roles, including:

Amy O'Keefe, Chief Financial Officer
Omar Javaid, Chief Product Officer
Josh Mueller, Chief Marketing Officer and General Manager
Marylou Maco, Chief Revenue and Customer Experience Officer
Soren Abildgaard, Chief Technology Officer

Pictured clockwise from top left.

Giant leaf with shadow of hands showing in transparency.

Sustainability, transparency, inclusion: Avaya means business.

Avaya is proud to join 3,400 companies worldwide working toward a low carbon future by setting emissions targets through the Science Based Testing initiative (SBTi). A commitment to address emissions is our strong pledge to the environment, recognized by reducing the impact of company activities, solutions and services, and facilitating the return of end-of-life management of equipment, batteries, and packaging.

Avaya is also committed to giving back to local communities, with a workforce devoted to amplifying their impact. Together with suppliers and partners from around the globe, employees supported Avaya's 8th annual Month of Giving to make a difference in their local communities.

A focus on people is vital to Avaya's inclusion principle with the launch of Avaya United, the official shared voice of Avaya's Diversity, Equity, Inclusion, and Belonging (DEIB) initiatives led by CEO Alan Masarek. This focus is extended to customers, with the introduction of the Avaya Trust Center, which amplifies transparency of Avaya's policies, practices, and technologies. And suppliers can be reassured by our responsible procurement policies throughout Avaya's value chain.

Sustainability at Avaya

Embracing diversity.

At Avaya, we see diversity as more than just a corporate directive. Our commitment to DEIB underscores our belief that when employees from different backgrounds, cultures, and experiences come together, it fosters innovation, drives improved outcomes, and builds a better world. This is evident in our ongoing initiatives and our continuous dedication to fostering an inclusive workplace that celebrates differences in thought, race, ethnicity, and culture. Through Avaya's various Employee Communities, we have spearheaded numerous endeavors that spotlight change, champion cultural learning, and enhance inclusivity across our teams. Moreover, as part of our evolving commitment, this year we introduced "Avaya United", the next phase in our DEIB journey, which aims to serve as a collective voice for our equity and inclusion efforts.

Milestones and MOMENTs

REBUILDING AVAYA'S MOMENTUM

SUPPORTING CUSTOMERS GLOBALLY

Awards & Accolades

Product Innovation & Transparency

MEETING CUSTOMERS WHERE THEY ARE

BUILDING FOR THE FUTURE

Rebuilding avaya's momentum

Avaya is back.

It's all about the customer experience.

Choose your journey.

Organizations around the world choose Avaya.

2023: SUPPORTING CUSTOMERS GLOBALLY

Johns Hopkins

Standard Chartered

Atento

Clemson University

AVAYA'S BUSINESS MOMENTUM CONTINUES TO GROW

North America

North America public sector

Latin America

EMEA

Asia-Pacific

Awards & Accolades

Recognition for a job well done.

Product Innovation & Transparency

Innovation without disruption

Meeting Customers Where They Are

Your journey. Your pace.

AI-Powered customer experiences.

Avaya launches expert-led digital transformation services.

Strategic partnerships that deliver for customers.

Delivering customer experience innovation with trusted partners.

CX innovation through AI

Seamless cloud communications and collaboration

Biometric security in the contact center

Conversational and generative AI solutions

Hosted contact center solutions

Proactive customer experiences

Customer success platform

Customer engagement solutions

Avaya's largest global partner

Building for the future

Building financial strength.

Strengthening company leadership.

Environmental, social and governance updates

Sustainability, transparency, inclusion: Avaya means business.

Embracing diversity.

Awards &
Accolades