all rights reserved © 2005, genesys q3 2005 all hands november 16, 2005

All rights reserved © 2005, Genesys

Q3 2005 All Hands

November 16, 2005


Evolving Brand

Increasing the joint visibility between Alcatel and Genesys to mutually leverage each other’s presence and success.


Q3 2005 and YTD Results


Q3 2005 Financial Results

Q3 2004 Q3 2005 Q3 2005('000s USD) Actuals Budget Actuals

Revenues 78,170 83,546 83,368

OP 1,852 9,251 9,649 % of Revenue 2% 11% 12%

Quarter over Quarter Growth - '04 to '05 7%

Revenue: Actuals as a % of Budget 100%

OP: Actuals as a % of Budget 104%


2005 YTD Financial Results

YTD 2004 YTD 2005 YTD 2005('000s USD) Actuals Budget Actuals

Revenues 221,747 235,453 239,462

OP 12,581 19,208 24,752 % of Revenue 6% 8% 10%

Growth - '04 to '05 8%

Revenue: Actuals as a % of Budget 102%


“Share the Wealth” currently funded at ~50%


Revenue Contribution by Geography

YTD 2005

48%

36%

10%6%

Americas EMEA APAC Japan

2004

48%

38%

9%5%

Americas EMEA APAC Japan


Revenue Contribution by Type

YTD 2005

49%

36%

11%4%

License Maint PS Edu

2004

54%32%

11%3%

License Maint PS Edu


Year End Outlook

2004 2005 2005('000s USD) Actuals Budget Outlook

Revenues 317,759 328,000 330,869

OP 38,980 39,360 40,793 % of Revenue 12% 12% 12%

Growth - '04 to '05 4%

Revenue: Outlook as a % of Budget 101%



4 Year CAGR – 2001 to 2005

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005

12.7%CAGR


Financial Benchmarks

ProfitabilityRevenue Growth Efficiency


2005 Strategic Initiatives Scorecard


Strategy Defend, Expand & Extend

We must DEFEND and GROW our position as market leader

in the Enterprise Contact Center.

We must EXPAND our footprint

in the Enterprise Contact Center

We must EXTEND ourselves

outside the Enterprise Contact Center


Defend and Grow

1. Enhance platform leadership through market adoption of Open IP, Integrated Self Service and Open Media

2. Establish Reporting and Business Analytics as a key competitive advantage

3. Grow market presence in emerging markets (China, India, Brazil and Russia)

4. Develop an OEM business for alternate channels to the market

5. Align with and enable Key Partners, Global SIs and Strategic Sourcers (MSP, BPO)

Scorecard2005 Strategic Initiatives


Expand

1. Strengthen our GVP execution capabilities and application ecosystem

2. Increase upsell and market share of non-routing products

3. Expand product portfolio into adjacent market segments (e.g. agent analytics, workflow)

Extend

1. Establish GETS as industry standard solution for telephony enabling enterprise productivity tools

2. Become Enhanced Services platform provider for carriers

Scorecard2005 Strategic Initiatives


Become more customer and partner focused

Improve communication and teamwork

Improve operating efficiency

Foster employee development and retention

Company Imperatives


Employee Programs, Development & Initiatives

Answering the CallRolled out for Q2 ~ the overall reception has been positive

Q2: $44,000 awarded to 78 recipients throughout Genesys worldwide

Goal of the program: Cross-functional recognition for outstanding performance, not just for managers to acknowledge their employees

CompensationProvision of the Compensation Guide for Managers

Every Genesys employee’s job was compared with market data

Merit increases conducted in accordance with employee performance AND with position in their salary range



Training & DevelopmentWe have invested more in training and development activities

(budget, HR dedication)

Access to Alcatel University was launched this year

Outlook: Further invest in training & development for 2006

Global Performance Management Program (GPMP)Implementation of the GPM e-tool (incl. development part)

Thank you for your diligence with using the GPM e-tool in 2005!

Technical problems have been solved

Outlook: HR will provide RPs with status reports on completion in their area of responsibility next week (target setting process needs to be finalized by end of the year)



Share the WealthApproved for 2005:

The plan will be funded once the company has exceeded its OP objective of 12%

The size of the pool will determine the final payout.

Payout is dependent on achievement of Corporate Objectives, Department KPIs and Individual Objectives

Eligibility for those employees not currently on a sales or CSO plan (GAP)

Employee SurveySurvey was launched on October 27

46.5% of Genesys employees responded

Feedback will be combined in a report to Genesys Excom


2005 Customer Satisfaction Survey

Results


Overall Performance Today Versus One Year Earlier

No. of Responses = 380

Genesys Worldwide

89% of customers perceive Genesys’ performance the same as or better than last year’s performance.

Question: Compared to one year earlier, is Genesys’ total performance today (Better/Worse/Same)? Why?


88.1%90.0%

91.6%

60%

70%

80%

90%

100%

Genesys WW2003(604)

Genesys WW2004(697)

Genesys WW2005(367)

Repurchase Intentions for Genesys Over Time

Repurchase intentions ratings have significantly increased since 2003.

% Y

es

( ) = No. of Responses


Customer Satisfaction SurveyCustomer Typologies – Genesys Worldwide

Lower Higher or Same

Yes

No or Unsure

Future Purchase Levels

Referenceability

CHAMPIONS

58%

REBELS

8%

MORAL SUPPORTERS

7%

CAPTIVES

27%

(XX%) = 2004 Survey

(5%) (49%)

(11%) (34%)


Looking Forward . . . .


Industry analysts confirm that Genesys is well positioned to succeed in this market…

1. Building on industry leadership in traditional customer service technologyNorth American Contact Center Infrastructure IVR and Enterprise Voice Portal



2. Demonstrating the path forward as service focus shifts to the experience and intent of customers

“Customer communications platform providers such as Genesys, Avaya and Cisco will be…

crucial to building advanced Customer Service and Support

capability...”“Gartner Predicts: CSS Will Require Increasingly Close Coordination With

IT” November 2005

“Michael Maoz



3. Innovating in ways that differentiate from our competitors

“It sounds like you’re moving into the ‘interaction management’

space… none of your competitors are doing that.”

Larry Velez

Analyst briefing with Wes Hayden November 2005


Our Vision

Contact Center

Customers &

Suppliers

Knowledge Workers

Branches

Back-Office

Managing Interactions across the EnterpriseManaging Interactions across the Enterprise


““Triple Play” – Genesys StyleTriple Play” – Genesys Style

Process OptimizationProcess Optimization

Agent ProductivityAgent Productivity

Open IPOpen IP

Multimedia / Mid OfficeMultimedia / Mid OfficeFederated EnterpriseFederated Enterprise

Proactive Contact/OBNProactive Contact/OBNIntegrated Self ServiceIntegrated Self Service

Enterprise Apps IntegrationEnterprise Apps Integration

Global SourcingGlobal Sourcing ExpertsExperts

BranchesBranches

GETSGETS

VirtualizationVirtualization ExtensionExtension

OptimizationOptimization


Ask Wes (Live ???)

all rights reserved © 2005, genesys q3 2005 all hands november 16, 2005

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