Mitel Product Portfolio—Overview

By offering a comprehensive portfolio of solutions and services, including cloud and on-

site enterprise communications products and solutions, UCC and contact center applications and a
variety of value-added service offerings, Mitel aims to offer our customers flexibility, freedom of
choice and a seamless path to the cloud as and when they choose. Our portfolio includes:
 
Cloud    On-site

MiCloud Office Business IP and digital phones (wired and

   wireless)

MiCloud Business    MiVoice communications platforms

MiCloud Flex (formerly MiCloud Enterprise) MiVoice Connect (formerly Connect

   ONSITE)

MiCloud Connect (formerly Connect Cloud)    MiCollab UCC applications

MiCloud Contact Center    MiContact Center applications

MiCloud for Service Providers    IPedge / CIX communications platforms

Clearspan    Service offerings

Research and Development

Our customers are at the center of our R&D program. We regularly seek to introduce new
products, features, applications and services to address the requirements of our customers. We put the
customer at the center of everything we do. Our history of success in software-based cloud and
enterprise communications solutions has provided us with the foundation for continued innovation. In
recent years, we have increasingly invested in cloud-based R&D to support our rapidly growing cloud
business. Our R&D personnel are skilled with deep domain expertise in the diverse areas of
telecommunications, IP networking, unified communications, Contact Center solutions software and
vertical applications. We work to continuously improve our R&D efforts through operational
measurement, adoption of best practices, effective partnerships and investment in our people.

As of December 31, 2017, we had approximately 900 employees working in our R&D

department on cloud and enterprise solutions. Our global R&D workforce is located predominantly in
North America, Europe, and India.
 Please see Item 6, “Selected Financial Data”, of Part II in this Annual Report for the amount
spent during each of the last five fiscal years on R&D activities determined in accordance with U.S.
generally accepted accounting principles, or GAAP.

Intellectual Property

Our intellectual property assets include patents, industrial designs, trademarks, proprietary
software, copyrights, domain names, operating and instruction manuals, trade secrets and confidential
business information. These assets are important to our competitiveness and we continue to expand our
intellectual property portfolio in order to protect our rights in new technologies and markets. We have a
broad portfolio of more than 1,600 patents and pending applications, covering more than 500
inventions, in areas such as Voice over IP, collaboration, presence, messaging and mobility.

We leverage our intellectual property by asserting our rights in certain patented technologies.
Certain companies have licensed or offered to purchase patents within our portfolio.

Our solutions contain software applications and hardware components that are either developed
and owned by us or licensed to us by third parties. The majority of the software code embodied in our
products has been developed internally and is owned by us.

In some cases, we have obtained non-exclusive licenses from third parties to use, integrate and
distribute with our products certain packaged software, as well as customized software. This third-party
software is either integrated into our own software applications or sold as separate self-contained
applications, such as voicemail or unified messaging. The majority of the software that we license is
packaged software that is made generally available and has not been customized for our specific
purpose. If any of our third-party licenses were to terminate, our options would be to either license a
functionally equivalent software application or develop the functionally equivalent software application
ourselves.

We have also entered into a number of non-exclusive license agreements with third parties to
use, integrate and distribute certain operating systems, digital signal processors and semiconductor
components as part of our communications platforms. If any of these third-party licenses were to
terminate, we would look to license functionally equivalent technology from another supplier.

It is our general practice to include confidentiality and non-disclosure provisions in the

agreements entered into with our employees, consultants, manufacturers, end users, channel partners
and others to attempt to limit access to and distribution of our proprietary information. In addition, it is
our practice to enter into agreements with employees that include an assignment to us of all intellectual
property developed in the course of their employment.
 The risks associated with patents and intellectual property are more fully discussed in “Item 1A.
Risk Factors—Risks Related to Intellectual Property”.