The fundamentals of a Successful Mission – A healthy

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#missioncritical
The fundamentals of a Successful Mission –
A healthy Business Partner
Steve Spooner, CFO
Fiscal Year 2013 Results
$M
Revenue
FY13
$576.9
YoY Growth
-5.7%
Margin
55.6%
OPEX ($)
Non-GAAP NI* ($)
EBITDA* ($)
$276.7 / 48.0%
$45.6 / 7.9%
$85.0 / 14.7%
Industry Leading Productivity
Revenue per Average Headcount ($000s)
* Trailing twelve months, most recent quarter
A Well Run Business
EBITDA Margin from Continuing Operations
In the past 5
years
Mitel has
generated $412M
of EBITDA
Mitel: the only competitor with improved EBITDA margins!
EBITDA / BPS
EBITDA (%) TTM (Mrq)
BPS Increase (Decrease) vs. PY (ttm)
EBITDA calculated on same basis as Mitel
Debt Position
Net Debt
Mitel’s Debt Reduction
Net Debt
$208M of Debt Reduction in the Past 5 Years
Debt vs. the Competition
$250
$200
$150
$100
$50
$0
-$50
-$100
-$150
Net Debt
Debt vs. the Competition
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
-$1,000
Net Debt
$5.8
Billion
Debt vs. EBITDA
Gross Debt / EBITDA
x
x
x
x
x
x
x
x
x
Note: Comparables based on TTM results (Avaya, Shoretel, Aastra)
Cashflow Consumed by Interest Costs
Available Cashflow from Operations
Consumed by Interest
Cashflow from
operating
activities
$44M
$101M
Interest
expense
$20M
$438M
$64M
$539M
31%
81%
Cashflow
available
to pay interest
Interest
expense /
available
cashflow
Note: Avaya results TTM period ended
March 31, 2013
A Solid Financial Footing

In February 2013 we refinanced our Senior Long Term debt
by entering into new credit agreements, consisting of:
–
–
–
$40M revolving credit facility – maturing in Feb 2018
$200M first lien term loan – maturing in Feb 2019
$80M second lien term loan – maturing in Feb 2020

Used excess cash to reduce overall debt levels

Benefits of the new credit facilities
–
–
–
Extended the term on our existing facilities,
which were due to mature in August 2014
$40M revolver provides additional liquidity
(revolver on existing credit matured in August 2012)
More favorable covenants
Recent upgrades by credit rating agencies
Upgraded Mitel’s liquidity rating, revised Mitel’s
rating outlook to STABLE and affirmed Mitel’s ‘B3’
corporate family rating.
Moody’s – February 27, 2013
Revised Mitel’s rating outlook to STABLE and
affirmed Mitel’s ‘B’ long-term corporate credit
rating.
Standard and Poors – March 3, 2013
Minding the Store!
Cash Flow From Operations
$155M of Cashflow Generated in the Past 5 Years
Strategy Execution
DataNet / CommSource
prairieFyre Software Inc.
Recent Investment Analyst Ratings (post Q1)
• BUY – Bank of America/Merrill
• Sector Outperformer - CIBC
• BUY – Canaccord
• Sector Perform – RBC
• BUY – MPartners
• BUY – Cormark Securities
What the Street is Saying
“Mitel is innovating its solutions toward the tech trends of today,
namely virtualization and cloud.”
Cormark Securities – March 2013
“… business model is delivering solid operating leverage.”
Bank of America – February 2013
“We view the debt refinancing with favorable terms as a positive …”
Canaccord – March 2013
“… strong differentiation makes Mitel’s earnings leverage among the
highest of its peers.”
MPartners – March 2013
Financial Performance Enables Investment!
Innovation
Marketing
Building the
“A” team
Channel
success
>> Mitel Director’s Briefing
Amsterdam, 9–11 September 2013
#missioncritical