The Move to Hosted

Graham Bevington

Managing Director, EVP International Markets

• slide 2• Mitel | Confidential

The Move to Hosted

• About Mitel

• Key Market Drivers in Business Communications

• Why go Hosted for Unified Communications?

• Mitel & Talk Talk Business

• slide 3• Mitel | Confidential3

About Mitel

• slide 4• Mitel | Confidential4

About Mitel

More than1,600

Partners

2,000Employees

Founded in1973

More than 100,000

Customers

In over100

countries

• slide 5• Mitel | Confidential5

OUR VISION

Not the largest – simply the best

• Delivering superior financial results

• Loyal customers and partners

• A place where people want to work

• To be the premier business communications and collaboration company in our industry

• slide 6• Mitel | Confidential6

OUR MISSION

To deliver solutions that enable our

customers to communicate and

collaborate, and to conduct business

anywhere, over any medium with the

device of their choice.

• slide 7• Mitel | Confidential

Mitel Financial Highlights

Revenues by Region (FY 2011) Revenues by Business Segment (FY 2011)

7

• Publically traded (Nasdaq:MITL)

• 2011 fiscal year revenues: U.S. $650 million

• slide 8• Mitel | Confidential

• Source: MZA IP-PBX Report Q2 2011 - September 2011

• UK

• Netherlands

• France

• Australia

• Canada

• USA

#2 with 23.3%

#3 with 19.3%

#6 with 4.9%

#4 with 10% (2010)

#3 with 19.5%

#3 with 9.5%

• Q1 – Q4 2011

Mitel Market Share in Key Markets

• IP Extensions Shipped• Source: Corded PBX-IP PBX – Q4 2011 – World, MZA

• slide 9• Mitel | Confidential

Mitel UK Market Share - Full Year 2011% IP Extensions Market all segment sizes (excluding micro)

Cisco

Mite

l

Avaya

Siemen

s

Alcate

l

NEC

Aastra LG

Panas

onic

Swyx

Samsu

ng

Splice

com

Toshib

a

Oth

ers

0

5

10

15

20

25

30

3531.54%

23.3%

19.96%

6.39%

3%

1.68%1.43% 1.22%

1.01%0.78%

0.78% 0.6%0.44%

7.88%

• Source: MZA Consultants Ltd• PBX/IP-PBX Report Q4 2011 – March 2012

Mitel clear #2 in UK

• slide 10• Mitel | Confidential10

Key Market Drivers

In Business Communications

• slide 11• Mitel | Confidential

Market Drivers

Cloud/Hosted/Virtualization Mobility

Unified Comms & Collaboration

• slide 12• Mitel | Confidential

Key Market DriverUnified Communications & Collaboration

• January 2012 “Unified Communications Purchase Plans 2012”

• slide 13• Mitel | Confidential

Key Market DriverMobility - Freedom to Work Anywhere

An in-office experience, regardless of location

Freedom of device choice (supporting BYOD)

Single identity Improved customer service

• slide 14• Mitel | Confidential

• 2011 • 2014

Key Market DriverCloud/Hosted/Virtualization

• Hosted Voice, SMB & Enterprise Segments 2

• 30%

• 70%

• Enterprise Virtualization Management 3

• 66%

• 34%

• Virtualized Apps • Server Apps

• 2011 • 2014

• Mitel % Virtualized IPT and UCC Apps Forecast 4

• 5%

• 95%

• 2 Gartner, Gartner Predicts 2011: Adoption of UC Creates New Sourcing and Deployment Challenges, 2010• 3 Gartner, x86 Virtualization Market Driven by Management and Desktop Needs, 2010• 4 Mitel forecast based on Mitel sales metrics in Q1, CY2011

• Hosted VaaS users• Voice CPE users

• 10%

• 90%

• % Mitel Virtual IPT

• % Mitel Virtual UCC Apps

• 2%

• 98%

• 32%

• 68%

• 34%

• 66%• 66%

• 34%

• 2011 • 2014

• slide 15• Mitel | Confidential

Catch The Mitel Wave - it’s our 3rd one!

It’s all about timing!

• MCD

Unified Communications

Software

• Wave 2

• Wave 1 IP Telephony

• Wave 3Mitel Virtual,

Cloud & Hosted UC Solutions

• slide 16• Mitel | Confidential

• A Single Cloud-Ready Software Stream

• An In-Office Experience Anywhere

• Freedom From Walled Garden Architectures

• Freedom of Commercial Offerings

• Including Hosted!

Which brings us to……..

• slide 17• Mitel | Confidential

The question used to be ....

Versus

Hosted Telephony

PBX

• slide 18• Mitel | Confidential

Now the question should be .....

Or

On-Site Unified Communications

Hosted Unified Communications