Jannett Cano-Theberge Director, Treasury Risk Assessment Jannettno-thebergealcatel

1. Jannett Cano-Theberge Director, Treasury Risk Assessment Jannett.cano-theberge@alcatel.com

2. Agenda Introduction OQM mission, strategy, timeline Executive summary Geographic Regions and Business Group structure High level process flows Risk Assessment Committee (RAC) Solution Advisory Group (SAG) What’s new? What’s different? Submitted and under development offers — Day 1 Customer communiqués Additional information

3. OQM mission, strategy… Review and recommend Alcatel Lucent “offer” and “quote” processes Support opportunity qualification through production and contract signature Post contract quoting Identify and institute new Alcatel Lucent guidelines Ensure effective management for all “Offers” and “Quotes” to our customers Ensure seamless support to our customers Included in scope: Opportunity qualification Bid decision Risk assessment process implementation Offer pricing, management, generation Business case generation Opportunity approval Contract negotiation, signing Offer management tracking Quote management Day one (1) is projected to be DATE? This session provides a high level overview of the Offer & Quote Management team, changes, enhancement and teaming to prepare you for day one Day one (1) is projected to be DATE? This session provides a high level overview of the Offer & Quote Management team, changes, enhancement and teaming to prepare you for day one

4. DAY ONE Pre-merger “offer” and “quote” Support teams unchanged Existing tools unchanged Descriptions of “Offer” and “Quote” unchanged … and timeline All Alcatel and Lucent employees who are part of the Offer and Quote Management Team are receiving this trainingAll Alcatel and Lucent employees who are part of the Offer and Quote Management Team are receiving this training

6. DAY 1: executive summary Alcatel Lucent OQM process developed/approved by Sr. Leadership Sales lead coordinates all offer/quote activities Existing tools to be utilized Alcatel Lucent regional, business group structure in place Product, services and solution portfolio available on line (pre day 1) Solutions Advisory Group (SAG) resolves any product or services selection conflicts Schedule of Authorization (SOA) and Risk Assessment Committee (RAC) drive approval/contract process Joint Alcatel Lucent offers/quotes Business group with largest portion is default lead Contracted products/services where customer requires only one purchase order (PO) to Alcatel Lucent, must clearly reference the contract number and items on PO Briefly state each bullet and explain the details will be provided in future slides Sales, OQM and RAC Contacts for both Alcatel and Lucent will be provided on Day 1 Joint Alcatel Lucent Offers/Quotes - Conversations between sales and contract management will be needed to ensure clarity to customer Briefly state each bullet and explain the details will be provided in future slides Sales, OQM and RAC Contacts for both Alcatel and Lucent will be provided on Day 1 Joint Alcatel Lucent Offers/Quotes - Conversations between sales and contract management will be needed to ensure clarity to customer

8. Geographic regions

9. Day 1 region structure model

10. Day 1: business group model

12. New OQM process Multi phase OQM process with more detailed decision gates OQM process replaces Lucent sales engine This is the OQM overall process that will emerge as people change organizations as OQM process solidifies in Alcatel Lucent Additional training will be developed and delivered for the OQM process and decision gatesThis is the OQM overall process that will emerge as people change organizations as OQM process solidifies in Alcatel Lucent Additional training will be developed and delivered for the OQM process and decision gates

14. Level 1 and Level 2 technical support Level 1 Offers based on Products/Services that are designated General Availability (GA) Single product to multi-product/services generic solutions Criteria: No major risk items (e.g. technical, financial, legal) Minimum and recommended selling price defined and approved by BD Product/Service commercial designation defined Alcatel Lucent current support = Level 1 and 2 support is business as usualAlcatel Lucent current support = Level 1 and 2 support is business as usual

15. High-Level process flow Each Pi to P5 phase is a decision gate validating compliance throughout the processEach Pi to P5 phase is a decision gate validating compliance throughout the process

17. Day 1: RAC overview Ensures that technical, financial, contractual risks are properly assessed and mitigated Validates project consistency against strategic objectives Ensures decision enforcement

18. RAC criteria Additional notes: Total damages are expected/anticipated not actual Schedule of Authorization (SOA) is currently being finalized and will be communicated upon approval Criteria = any of the single criteria listed on an Offer/Quote determine which RAC approval required A First rollout large scale new product/ solution (excludes “pilot” trials) Contract loss at completion TPF relevant No payment before PAC, where PAC more than 3 months after delivery and exceeds 6m Euro B No payment before PAC, where PAC more than 3 months after delivery 3rd Party content, more than 30% 3rd party D Non-Standard Terms (deviation from customers specific approved T&Cs, no exclusion of indirect damages, no backstop date, exclusivity or MFC clause, less than 10% down payment or no security of payment) Additional notes: Total damages are expected/anticipated not actual Schedule of Authorization (SOA) is currently being finalized and will be communicated upon approval Criteria = any of the single criteria listed on an Offer/Quote determine which RAC approval required A First rollout large scale new product/ solution (excludes “pilot” trials) Contract loss at completion TPF relevant No payment before PAC, where PAC more than 3 months after delivery and exceeds 6m Euro B No payment before PAC, where PAC more than 3 months after delivery 3rd Party content, more than 30% 3rd party D Non-Standard Terms (deviation from customers specific approved T&Cs, no exclusion of indirect damages, no backstop date, exclusivity or MFC clause, less than 10% down payment or no security of payment)

19. Alcatel Lucent RAC Process - Organization Chart

21. Day 1: Solution Advisory Group (SAG) Temporary function during transition Where there is disagreement on proposed solution: Engaged by Sales lead for specific opportunity Solution owners partner SAG reviews and makes recommendations Product and services SAG virtual team membership includes: Regional CTO: convener and chair BG CTOs Sales lead Others as required SAG contacts to be provided on Day 1 Solutions Advisory Group (SAG): Temporary function established on Day 1 to resolve any conflicts regarding the proposed Alcatel and/or Lucent product and/or service solution on new opportunities Members will vary from time to time Regional CTO will be common element for all requests Solutions Advisory Group (SAG): Temporary function established on Day 1 to resolve any conflicts regarding the proposed Alcatel and/or Lucent product and/or service solution on new opportunities Members will vary from time to time Regional CTO will be common element for all requests

23. What’s new? What’s different? New name:Offer and QuoteManagement We do not have the level of detail yet to define where these roles fit into the timeline Next step is to develop detailed roles, processes swim lanes, etc… which will be provided as part of the level 2 detailed training sessions after Day 1 New and changed roles, responsibilities will be effective on Day 1??? State where each of the roles resides i.e. BG, BD, RSC, etc… and if they reside across or in several areasWe do not have the level of detail yet to define where these roles fit into the timeline Next step is to develop detailed roles, processes swim lanes, etc… which will be provided as part of the level 2 detailed training sessions after Day 1 New and changed roles, responsibilities will be effective on Day 1??? State where each of the roles resides i.e. BG, BD, RSC, etc… and if they reside across or in several areas

24. What’s new? What’s different? (continued) Joint offers or quotes NOTE: Joint quoting for existing pre merger contracts requires contract reference number on all applicable customer documents if single purchase order to Alcatel Lucent is desired (contact your Contract Manager for details) Alcatel and Lucent orderable items will be in both systems on day 1. Order Management will make the distinction and validate an unmarked orders received from customers. BIF - Bid Information Form:  The form is actually in the Orion (Siebel) system on the bottom applet.  Upon completion of the Orion BIF, Sales will select the "submit" button which in turn opens the Orbit tracking number and then routes the BIF and attachments to the appropriate contacts. NOTE: Joint quoting for existing pre merger contracts requires contract reference number on all applicable customer documents if single purchase order to Alcatel Lucent is desired (contact your Contract Manager for details) Alcatel and Lucent orderable items will be in both systems on day 1. Order Management will make the distinction and validate an unmarked orders received from customers. BIF - Bid Information Form:  The form is actually in the Orion (Siebel) system on the bottom applet.  Upon completion of the Orion BIF, Sales will select the "submit" button which in turn opens the Orbit tracking number and then routes the BIF and attachments to the appropriate contacts.

26. Day 1: managing submitted offers OQM Integration Team provides inventory list to key stakeholders within the region and BGs Regions review competing, submitted proposals for possible action Sales lead owns competing offers and drives action decisions Significant changes to previously submitted offers require RAC approval process prior to resubmission

27. Day 1: managing offers under development Inventory of Alcatel and Lucent proposals under development will be delivered to Sales team leaders and BG stakeholders Regions review competing proposal list to determine single solution to be submitted Sales lead initiates decision using Product, Services and Solution Matrix Proposals under development to go through Alcatel Lucent RAC process Where insufficient time for consolidation, joint cover letter to be issued EXAMPLE: Until the Alcatel Lucent merger is completed – purchase orders must reflect each companies portion of the “Offer” or “Quote” Example – total “Offer” or “Quote” Revenue = $200K. Customer must Issue a PO to Lucent for $50K and a PO to Alcatel for $150K Alcatel Lead BD owns/lead Offer because they are the largest segment Sales teams partner to determine who owns on joint Offers Joint Offer and Quotes - Sales teams (Alcatel and Lucent) partner to determine which entity owns offer - Price leads are from BD with largest portion - OQM teams EXAMPLE: Until the Alcatel Lucent merger is completed – purchase orders must reflect each companies portion of the “Offer” or “Quote” Example – total “Offer” or “Quote” Revenue = $200K. Customer must Issue a PO to Lucent for $50K and a PO to Alcatel for $150K Alcatel Lead BD owns/lead Offer because they are the largest segment Sales teams partner to determine who owns on joint Offers Joint Offer and Quotes - Sales teams (Alcatel and Lucent) partner to determine which entity owns offer - Price leads are from BD with largest portion - OQM teams

29. Day 1: customer communication Sales leads are expected to proactively communicate with customers regarding outstanding proposals

30. Day 1: customer communication

32. Day 1: field support plan Two part OQM overview sessions Self-paced web-based on-demand training now available Live Q&A sessions are coming Alcatel Lucent web portal Job aids: processes, tools, templates, contact lists Hotline: 973-386-3278 Ongoing training sessions FAQs

33. Day 1: resources Sandy Meyer Process support sdmeyer@lucent.com Office: 720-482-5949 Cell: 720-320-9001 Lissa Richey OQM support larichey@lucent.com Office: 630-224-6010 Cell: 630-240-8201 Sue Farrell Services OQM support suefarrell@lucent.com Office: 303-346-0658 Brenda Le OQM support Brenda.Le@alcatel.com  Office: 972-519-5152 until 12/14 after 12/14 972-477-5152  Cell: 469-585-2011 Michael Thompson OQM support Michael.N.Thompson@alcatel.com  Office: 972-477-0999 Cell: 214-738-9931

34. Day 1: key takeaways Continue to use existing tools, processes and teams Sales coordinates offers and quotes to avoid duplication OQM process uses phased approach with decision gates, replaces Lucent sales engine Schedule of Authorizations (SOA) and risk assessment criteria (RAC) drives approval and contract process Solutions Advisory Group (SAG) will temporarily resolve product selection conflicts For joint proposals, the Alcatel Lucent BD with the largest portion defaults as lead BD Joint Alcatel Lucent offers/quotes Business group with largest portion is default lead Contracted products/services where customer requires only one purchase order (PO) to Alcatel Lucent, requires clear identification of contractual items on PO Multi-Region offers are owned by the initiating region who engages others to support