The Dynamic Enterprise: A Business Update 2008 Industry Analyst Conference

1. The Dynamic Enterprise: A Business Update2008 Industry Analyst Conference Tom Burns, COO, Enterprise Business Group September 18, 2008

2. Agenda • What we said last year • Where we are going

3. 1 What we said last year

4. Making strategic portfolio investments Last year we said we would focus on Sustaining profitable growth Engaging better with customers

5. 2005 2006 2007 Sustaining profitable growth Growth 8% Growth 9% 1877 1742 1596 Traditional 1207 Traditional 1105 Traditional 1018 In €M

6. 10.5 Investing in high growth markets Size of Bubble $M = 2007 Enterprise Communications Market size 10.5 Education 2,753 Financial Services 15,907 9.0 Healthcare 5,904 Hospitality 1,124 Government 13,664 2007-2010 Market Growth CAGR: $Mfg Rev. 7.5 Energy 4,295 6.0 Transportation 3,462 4.5 Cumulative Spending Growth: US$M Above 2007 Base from 2007–2010 Source: ALU EBG Target Marketing Analysis & Global Insight, June 2007

7. Engaging more effectively 5000 • More than 5000 new customers 20% • Average deal size increased by 20 % 60% • Conversion rate has gone from 49% to 60% 20% • Grew global accounts by for the last two years 22% • Sales to and through service provider up 22% 35% • Service revenue up 35%

8. Expanding the portfolio in areas that matter to customers Services:consult,design,integrate,deploy,maintainandoperate 12 major releases 15 new applications 4 acquisitions/technology transfers

9. We have over 255,000 enterprise customers Transport Energy Government Healthcare RATP RATP Capgemini Energy, USA Principality of Asturias Principality of Asturias UPMC RATP Principality of Asturias Ministry of Interior, Australia Transpower, NZ Transpower, NZ Botniabanan Laval Regional Hospital RTE, France Spanish Railwar Wellpoint Health Networks Wellpoint Health Networks Montedomini, Italy Conoco Phillips, Australia Ministry of Administration and Interior, Romania MPK Centre De Sante Et De Services Sociaux Haut-Richelieu-Rouville Transpower, NZ Wellpoint Health Networks ECTC Poste Italianne MPK Poland US Airforce Gabriel Touré Education Hospitality Managed Services Finance Santa Fe Community College Club Med Abilene Christian University Hampshire Hotels PCCW JP Morgan Banco Santander Banco Santander Santa Fe Community College Santa Fe Community College Golden Telecom Amara Sanctuary Resort Sentosa Central Immobiliaria de Santiago Everett Public Schools Orange Business Systems Park Hyatt Zurich Wolf Creek Telecom Italia Siam Bank M Hotel Universidad de la Concepcion Verizon AXA Sprint Banco Santander Alamo Community College Four Pillars Hotel BT Post Savings Bank Fordham University Hotéis Real Portgual, DT Le Credit Lyonnais Penn State Park Plaza County Hotel, Telstra Swinton Insurance Pace University Sprint

10. 2 Where we are going

11. Content and Context Aware Communication 2.0 Technologies Real TimeCommunications Tacit Explicit Connecting Knowledge 80%Inaccessible

12. Connecting knowledge in demanding environments

13. Improving Vehicle Flow with Real-Time Connected Knowledge

14. Connecting Knowledge Dynamic Communications Framework • Real-time communications in enterprise 2.0 services • Extended presence information • Context & content driven communications • Business process routing • Services oriented architecture • Industry-specific solutions • Advanced mobility • Unified Communications • User profiling • IP LAN, WAN and voice infrastructure • Network and applications management • User-centric security

15. Interconnect all the elements Service coverage Reference architectures Broad Services portfolio • DYNAMIC ENTERPRISE INTEGRATION

16. Functional Heads Transformational Leaders Business Strategists • Manage IT crises • Develop IT talent • Improve IT operations • Improve system performance • Manage budget • Represent 37% of CIOs • Redesign business processes • Cultivate the IT business partnership • Lead change efforts • Implement architecture • Map IT strategy to overall enterprise strategy • Represent 51% of CIOs • Develop/refining business strategy • Understand trends • Develop business innovations • Indentify opportunities for differentiation • Reengineer/develop new sales and distribution channels • Represent12% of CIOs Three main CIO types

17. A different approach for each type Functional Heads with… Transformational leaders with… Business Strategists with… • Alcatel-Lucent technology • Business partners or service providers • Pay-per-user, in-house, managed, service providers • Turn-key solutions: Alcatel-Lucent + partner technology + specialized applications • Alcatel-Lucent services arm backed by business partners • In-house, managed services • Alcatel-Lucent technology and applications + joint-ventures + Bell Labs + partner ecosystem • Alcatel-Lucent and System Integrators • Pay-per-user, in-house, managed, service providers 17 | The Dynamic Enterprise: A Business Update | Sept. 2008

18. 3 Summary

19. …it’s working!

20. www.alcatel-lucent.com www.alcatel-lucent.com

21. Sustaining Profitable growth In US$M +919 +800 +720 +461 Traditional 1267 Traditional 1387 Traditional 1655 Traditional 611 2005 2006 2007 1H08