Slide 1: Investor Presentation (Based upon Fourth Quarter & Year-End 2002 results)
j2 www.j2global.com ™ Investor Presentation (Based upon Fourth Quarter & Year-End 2002 results) February 2003
Slide 2: Safe Harbor for Forward-Looking Statements
j2)Global ; : Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1965, particularly those contained in the slides enttled “Tax Considerations (2003)" and "200
Slide 3: Risk Factors
j2)Global Risk Factors The following factors, amorg others, could cause actual resuits to clffer materially from those cbscribed! in the JorwarcHooking statements: + Limitations cn the Company's ability to continue to grow or sustain the rate of growth of its customer base and/or the rate of revenue
Slide 4: j2 Global delivers
j2)Global j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world. 4 52) clonal communications, tne.
Slide 5: What we do
j2) Global Inbound (Receive) What we do... Peto Proprietary IP Control Structure 975+ Cities tbat Worldwide Voicemail Outbound (Send) — 31%} = 5 42) Global Communication, nc. Create a document Proprietary IP Control Structure
Slide 6: Unique Assets
Unique Assets 4.3 million subscribed phone numbers Global advanced messaging network + 975+ cities in 18 countries on 5 continents + 5.5MM+ unique telephone numbers (DIDs) worldwide, and growing Patented technology +5 issued U.S. Patents, with 9 Patents pending Expertise + Telecom, messaging, Intern
Slide 7: Market Sizes
j2)Global Market Sizes Fax * Estimated $80B+ annual spend on transmission costs worldwide, of which approximately one-half is estimated to be for the inbound receipt of faxes + j2 Global is estimated to have 40%+ of the inbound fax supplier market Voicemail + 76MM+ enterprise voicemail boxes in use
Slide 8: Sales Channels
j2)Global Sales Channels Web + Target individual users + Targeted marketing over the Web + Use of Web-based marketing tools Corporate * Direct sales force to SMEs and large corporations * TeleSales to smaller businesses * Resellers Licensed Services + Opportunistically license j2 Global's intellectu
Slide 9: Web Channel Services
j2)Global Web Channel Services Fax * Inbound fax-to-email * Desktop sending (format independent) * Unique subscriber telephone number + Voice + Inbound voicemail-to-email + Web-initiated Conference Calling Revenue Sources y Status (as of 12/31/02) ; * More than 4.2 MM * Monthly recurring subscribed
Slide 10: Corporate Channel Services
j2)Global Corporate Channel Services Fax Inbound fax-to-email Desktop sending (format independent) Web-based Broadcast Faxing Centralized on-line account administration + Secure fax Voice Services +44 + Web-initiated Conference Calling Status (as of 12/31/02) Revenue Sources ¢ 1,200+ corporate clien
Slide 11: Corporate Channel Markets
j2)Global Corporate Channel Markets ¢ Financial institutions + Law firms & corporate legal departments + Real estate + Hospitality + Medical * Government ¢ Remote workers & “road warriors” Critical Features ecurity ¢ Privacy ¢ Efficiency «Cost a 52) clonal communications, tne.
Slide 12: Deployed DIDs by channel
j2)Global 270,000 = 250,000 2 & 230,000 @ 210,000 @ 190,000 170000 2 150,000 190,000 iajs1/ ao | a1/zaas [e/a | 9/2 [ays 202 Corporate Ml 20,000 23,265 22,480 34,480 43,531 Web Paid I 170,000 183,044 197,996 212,001 225,863 ft pa bs [sano | arson | ane | aaa | ao Tree azn [aa | aan | ase] aren haat
Slide 13: Metrics
j2)Global Metrics Qi02 9202, Q3'02_— 402 Paid Web Channel Number of Deployed DIDs 183,844 197,996 212,001 226,863 Net DID Additions 13,844 14,152 14,005 14,862 ARPU / Month $12.79 $13.13 $13.42 $13.62 Corporate Channel w Number of Deployed DIDs 23,265 28,480 34,480 43,331 Net DID Additions 3,265 5,2
Slide 14: Global Network Presence
j2)Global Global Network Presence j2 Global Network | Asia/Pacific The Americas Europe 975+ cities in 18 countries on 5 continents ‘tobe deployed 4 52) clonal communications, tne.
Slide 15: Product Roadmap
j2)Global Product Roadmap Unified Messaging & Comm, Services Voice Services IP , Document Fax Management Inbound Fax to Ema + ProtoFax® + Inbound VM to Email + Integrated Email, + Outbound Fax via Email * Messenger + Voicemail management voicemail & fax services + Fax broadcasting + HotSend® + Telep
Slide 16: Competition: Barriers to Entry
j2)Global 16 Competition: Barriers to Entry Global Network * 975+ cities in 18 countries on 5 continents + Built & maintain 54 Telco relationships + Access to 5.5MM+ local telephone numbers (DIDs) Critical Mass of Subscribed DIDs + 4,0MM+ “Free” DIDs provides meaningful advertising revenue + Large P
Slide 17: Financial Highlights
j2)Global Financial Highlights 52) clonal communications, tne.
Slide 18: Revenue Growth
3 2 2 oO a Ss | Revenue Growth ‘orica Hist 23 consecutive quarters of revenue growth zo, 60 zo, £0 zo, 20 zo, 10 To, +0 To, £0 10,20 To, 10 00, 0 00, £0. 00, 20 00, 10 66, 60. 66, £0 66,20 66,10 26,60 26, £0 86,20 86,10 26,60 26,60 26,70 26,10 $16.0 $14.0 $12.0 $10.0 $8.0 (suo) $6.0 $4.0 $2.0 $0.0 2
Slide 19: Quarterly Revenue
j2)Global Quarterly Revenue 2001 2002 Qi Q2 Q3 Q4 Subscriber 49,370 $10,427 #11551 $12,956 Quarter-to-Quarter Growth RA% 113% 10.8% 122% Year-to-Year Growth Advertising 827 705 783 715 Quarter-to-Quarter Growth 77% “14.8% 111% 7% Year-to-Year Growth Licensed Srvs & Other 183 174 1 354 Total Revenue
Slide 20: Quarterly Revenue by Channel
Quarterly Revenue by Channel 2004 2002 Qi Qe Q3 4 Web 97,733 $8,292 $9,031? ~~ ga,s4q ‘Quarter-to-Quar ter Growth 6.2% 72% BM 9.0% Year-to-Year Growth Corporate 2,464 2840 3303 —3,g27 ‘Quarter-to-Quarter Growth 222% 15.3% 16.3% 15.9% Year-to-Year Growth Licensed Services 166 159 160 185 Other 7 5 9
Slide 21: Cost Trends
j2)Global 24 (Millions) $4.0 $3.5 $3.0 $2.5 $2.0 $L5 $1.0 $0.5 $0.0 Cost Trends Sales & Marketing’ Engineering —_ Ol 9401 = QL 02 Q202_— BZ = Q4'02 In Q4 2002, excludes a cne-time recovery of a marketing payment af $694,000 52) clonal communications, tne.
Slide 22: Earnings & Free Cash Flow
j2)Global 22 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 $1.0 $2.0 $3.0 $4.0 Earnings & Free Cash Flow oreo Qio1 21 g3‘o1. gto = Qt‘oz 202-302 gs "02 MIGAAP Net Earnings miFree Cash Flow* ‘*Net cash provided by operating activities, less capital expenditures. 42) ctobat communications ne.
Slide 23: Tax Considerations
j2)Global Tax Considerations Net Operating Loss (NOL) + $115MM in total NOL + $65MM substantially unusable (due to change of control) + Approx. $50MM currently available to off-set 2002 and future taxes Tax Credits + California R&D tax credits + Stock Option off-sets California Taxes + State suspend
Slide 24: 2003 Financial Guidance
j2)Global 2003 Financial Guidance Qi Year-End 2003 2003 Revenue $14.7 - $15.1MM $66.0 — $69.0MM EBT per Share () $0.39 — $0.42 $1.75 - $1.95 Net Earnings Per Share (2) $0.38 — $0.40 $1.65 - $1.85 © Earnings Before Taxes ©) Assumes fully diluted shares of 12,356,279; the number of outstanding as of J
Slide 25: Recent Events
j2)Global 25 Recent Events + Expanded services into China (Hong Kong) through the acquisition of Cyberbox + Launched PaperMaster® upgrade Launched Secure Fax offerings for Corporate accounts * Analyst coverage initiated by: First Albany Rodman & Renshaw Sidoti & Company j2 Global's network now provi
Slide 26: j2 Global
j2). Global