Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global Communications — Investor Presentation (July 2003)
23 slides from Ziff Davis's investor presentation, Jul 22, 2003
Slide 1: Investor Presentation (Based upon Second Quarter 2003 results)
Global Communications www.j2global.com ® Investor Presentation (Based upon Second Quarter 2003 results) July 21, 2003
Slide 2: Safe Harbor for Forward-Looking Statements
j2),Global Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forwarcHlooking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the side entitled “2003 Financial Guidance”. These forwarc
Slide 3: Risk Factors
j2),Global Risk Factors ‘The following factors, among others, could cause our business, prospects, financial condition, cperating results and cash flaws to be materially adversely affected! ‘+ Inability to sustain growth in our customer base, reverie or profitability + Competition in price, quality,
Slide 4: j2 Global delivers
j2),Global j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world. 4 42), clos communications ne
Slide 5: j2 Global brands: eFax, jConnect, PaperMaster Pro
j2),Global @ijfax.com eFax a Ora Consensus j2) jConnect | PaperMasterPro- (aay 5 i eee
Slide 6: What we do...
j2),Global What we do... Proprietary IP Control Structure ie 1,000+ Cities Worldwide Voicemail Outbound (Send) — ~~" ~~ w=) Create a document Proprietary IP Subscriber Control Structure 6 §2). cote commuicatons
Slide 7: Unique Assets
j2),Global Unique Assets 5.2 million subscribed telephone numbers (DIDs) Global advanced messaging network * 1,000+ cities in 19 countries on 5 continents + 6.5MM+ unique DIDs worldwide in inventory Patented technology + 5 issued U.S. Patents, with 9 Patents pending Expertise + Telecom, messaging, I
Slide 8: Market Sizes
j2),Global Market Sizes Fax + Estimated multi-billion dollar 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” (i.e. fax-to-email) ® Voicemail
Slide 9: Sales Channels
j2),Global Sales Channels Web + Target individual users * Targeted marketing over the Web yaad + Use of Web-based marketing tools www Consensus.com Corporate + Direct sales force to SMEs and large corporations * TeleSales to smaller businesses ‘www j20orporate.com * Resellers www.jBlast.com Licensed
Slide 10: Corporate Channel Vertical Markets
j2),Global Corporate Channel Vertical Markets ¢ Financial institutions + Law firms & corporate legal departments + Real estate + Hospitality + Medical * Government + Remote workers & “road warriors” al Features ation (paper reduction) + Security + Privacy + Efficiency + Cost 10 §2). cote communicati
Slide 11: Active Telephone Numbers (DIDs)
j2),Global a Active Telephone Numbers (DIDs) 350,000 fq 330,000 310,000 6 % 290,000 4 270,000 2 250,000 § 230,000 € 210,000 £ 190,000 2 170,000 150,000 a @ e ow a @ afsi/2e2_| 6/20/2002 | 9/30/2002 | 12/31/2002 | 3/31/2003 | 6/30/2003 Corporate MN | 23,265 23,400, 34,400, 43,331 43727 55.888 WwebPai
Slide 12: Metrics
j2),Global Metrics gi02 202 302 a4 02 gi 03 __g2 03. Web - Paid Number of Deployed DIDs 183,844 197,99 212,001 226,863 256,242 293,104 Net DID Additions 13844 14,152, 14,005 «14,862 -29,379 36,862 ARPU / Month $1279 «$13.13 134241362 $13.79 $13.44 Cancellation Rate®) - 4.3% 4.9% 3.7% 3.5% 2.9% Numbe
Slide 13: Global Network Presence
j2),Global Global Network Presence j2 Global Network Asia/Pacific The Americas Europe \ | * 1,000+ cities in 19 countries on 5 continents * Continuing to expand into new international locations 3 52), cinta communications. ne
Slide 14: Product Roadmap
j2),Global Ip Fax Document Management a sInboundFax to Emal + ProtoFax + Outbound Fax via Email * Messenger + Fax broadcasting + HotSend + Seaute fax + PaperMaster Pro +0cr + Messenger 2008 + Fax storagefarchive + New notification methods I Currently offered I Future cpportunities 4 Product Roadmap
Slide 15: Financial Highlights
j2),Global Financial Highlights s 52), cinta communications. ne
Slide 16: Revenue Growth
3 2 © oO ok | Revenue Growth ‘orica Hist 25 consecutive quarters of revenue growth $18.0 $16.0 $14.0 $12.0 e@aqqaqa sega $8835 3B (suo) 0,20 €0, 10 zo, 60 Zo, £0 zo, z0 Zo, 10 To, +0 To, £0 To,z0 To, 10 00, 0 00, £0 00, z0 00, 10 66, 60. 66, £0 66, 20. 66, 10. 26,60 86, £0 86,20 26,10. 26,60 26,60 2
Slide 17: Quarterly Revenue
j2),Global Quarterly Revenue 2002 2003 Q2 Q3. Q4 Qu Q2 Subscriber $10,427 $11,551 $12,956 $14,454 $16,307 ‘Quar ter-to-Quarter Growth 113% 108% 22% 116% 12.8% Advertising 705 783 715 612 609 Quarter-to-Quarter Growth “148% 11.1% “B.7% 714.4% 0.6% Licensed Services 174 169 354 142 124 Total Revenue $
Slide 18: Quarterly Revenue by Channel
j2),Global Quarterly Revenue by Channel 2002 2003 Q2 Q3. Q4 Qi Q2 Web $8,292 «$9,031 «9844 «G10,761 «411,973 Quarter-to-Quarter Growth 72% B.% 9.0% 9.3% 11.3% Corporate 2/840 3308 3827 4,306 4948 ‘Quarter-to-Quarter Growth 15.3% 16.3% 15.9% 12.5% 14.8% Licensed Services 174 169 354 141 124 Total Rev
Slide 19: Cost Trends
19 (Percentage of Total Revenue) 90% 8000 70% 60% 50% 40% 30% 20% 10% 0% Cost Trends Gross Margin Operating Margin: Sel Sales & Marketing® Ne Q102 B02 B02 Q4HD2 — QLB- QBS In Q4 2002, excludes a cne-time recovery of a marketing payment of $694,000 2) wan canminsanncine
Slide 20: Free Cash Flow
j2),Global (ritons) g qe | ee Trcudes @ one-time recovery ofa marketing payment of $534,0, Net cath provided by operating actvits, less purchates of FF&E., Free Cash Flaw amounts are net meant 4352 substlute for GAAP, but are solely for informational purposes im a2 aim aim aims _aaue INet cash provi
Slide 21: 2003 Financial Guidance
j2),Global 2003 Financial Guidance (Revised 7/21/03) Q3 Year-End 2003 2003 Revenue $18.7MM $69.6MM+ Net Earnings Per Share $0.52 $1.92+ (1) Assumes fuly diluted shares of 12,781,584 as af July 14, 2003 (2) Assumes sufficient Federal NOL currently available to off-set 2003 taxes. Cormpany expects to
Slide 22: Recent Events
j2),Global 22 Recent Events + Increased pricing for new subscribers (mid-June) of eFax Plus ($9.95 > $12.95) and jConnect Premier™ ($12.50 > $15.00) # Released PaperMaster Pro”, a new version of the Company's document management software solution + j2 Global's network now provides local numbers in m
Slide 23: j2 Global
j2). Global
j2 Global Communications — Investor Presentation (July 2003) on 6ix