Slide 1: Investor Presentation (Based on Fourth Quarter 2011 Results)
Sex (j2)Global _y >» Investor Presentation (Based on Fourth Quarter 2011 Results) February 14, 2012 Cloud Services for Business j2),| Pekan’ ceVoice’ Zrusemail’ campaigner FAKeepi'Safe’ Wonebox”
Slide 2: Safe Harbor for Forward-Looking Statements
( j2)) Safe Harbor for Forward-Looking Statements ll Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the “2012 Guidance” slides. ‘These forward-looking statemen
Slide 3: Risk Factors
(j2 ) Risk Factors ~~ ‘The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: + Inabity to sustain growth or profitability, particulary in light ofan uncertain U.S. and worldwide economy and
Slide 4: Cloud Services for Business: The j2 View
(j2 ) Cloud Services for Business: The j2 View “S# Focus on popular and essential cloud services that produce high free cash flow 2) eFax’ eNoice’ EFuseMail’ campaigner PAKeepitSafe’ Wonebox"
Slide 5: M&A Strategy: Four-Pronged Approach
) M&A Strategy: Four-Pronged Approach Geographic Expansion Service Expansio1 —— Purchases @ekax’ eVoice’ ZFuseMail’ campaigner WKeepitSafe’ Wonebox”
Slide 6: Results in Numbers
~ 2)) Results /n Numbers J Revenues: | Gconsecutive years of growth Operating Income: 47 , 3 % Non-GAAP operating margin Free Cash Flow: Run rate over $4] 3 M/month EBITDA: 4] Q consecutive years of Non-GAAP EBITDA growth Efficiency: ~$ 600K revenuelemployee Customers: Over 2 million paid DIDs Cover
Slide 7: Financial Highlights
2) Financial Highlights 52),| Gotan evoice’ Zrusemat” campaigner” Wkeepisate’ Wonebox”
Slide 8: Q4 2011 GAAP & Non-GAAP Results
2) Q4 2011 GAAP & Non-GAAP Results 04.2011 GAAP Q4 2011 Non-GAAP $ Margin $ Margin Revenues $85.1M $85.1M Gross Profit/Margin $70.4M 82.8% $70.5M 82.9% Operating Profit/Margin $38.5M 45.2% $40.3M 47.3% Eps () $0.62/Share $0.64/Share Free Cash Flow ?) $40.1M Cash and Investments $220.9M Non-GAAP earn
Slide 9: Full Year 2011 GAAP & Non-GAAP Results
Full Year 2011 GAAP & Non-GAAP Results FY 2011 GAAP FY 2011 Non-GAAP $ Margin $ Margin Revenues $330.2M $340.5M Gross Profit/Margin $269.5M 81.6% $281.1M 82.6% Operating Profit/Margin $136.0M 41.2% $158.2M 46.5% Eps () $2.43/Share $2.53/Share Free Cash Flow ?) $157.5M Cash and Investments $220.9M No
Slide 10: Update
(i2) Update ~ 2) Pekan’ eMoice’ E)FuseMall” campaigner” WAKeepitSafe’ Wonebax”
Slide 11: New Cities
Kawasskl Senda! itahyushu Shzuoke robe Yokohama New Cities: vise + 10k Paying Subscribers + Additional Coverage — 45% Increase in Number of Cities + Added Mobile Apps for iPhone® & Android®
Slide 12: Invest in New Business Offerings: CRM
(j2 ) Invest in New Business Offerings: CRM \ Landslide + Provides an Easy-to-use, Cloud-based CRM Solution + Designed Specifically for Small/Medium-sized Businesses + Contains Unique Sales Checklist that Gives Step-by-Step Plan to Closing a Deal + Seamlessly Integrates a Customer's Latest Informati
Slide 13: Further Invest in Cloud Backup
) Further Invest in Cloud Backup Recently acquired Offsite Backup Solutions Now Offering Small Business Backup in US Investing in Branding, People and Infrastructure Significant Increase in Run Rate Exiting 2012 j2),) Pekax’ ceVoice’ [rusemail’ campaigner ™ AKeepi'Sate’ Wonebox” 13
Slide 14: Invest in Database Marketing: Cross-Sell & Up-Sell
(j2 ) Invest in Database Marketing: Cross-Sell & Up-Sell ~~ (2) + Successfully Launched Cross-Sell Test in March 2011 ®, (2) + Increasing R&D Spend for People and Systems + Strong and Improving Cross-Sell Results ~ Sold 14k Seats (4k in Q4) Ie com> j2)' - $2.2M in Media Value in 2011 ~ j2.com Cross-
Slide 15: Expansion of Service: Mobile Apps
~ J 2)) Expansion of Service: Mobile Apps + eFax® - ital Signature and Japanese & EU versions. Capture, Create, Send, Search, File and Receive + eVoice® - Make and take calls on business number from personal mobile phone. Use VoIP to save mobile minutes. + Campaigner® - Add, import and manage list/c
Slide 16: 2012 Guidance
(i2) 2012 Guidance 52),| Gotan evoice’ Zrusemat” campaigner” Wkeepisate’ Wonebox”
Slide 17: 2012 Guidance
(j2 ) 2012 Guidance ~vJT Guidance Revenues $345M - $365M Non-GAAP EPS“ ~ equal to 2011 Pekan’ eMoice’ E)FuseMall” campaigner” WAKeepitSafe’ Wonebax” 7
Slide 18: Quarterly Dividend
2) Quarterly Dividend wu Timing * Record Date - February 27" * Payment Date - March 12** Payment Amount + $0.21 Per Share + Represents ~ 30% of Quarterly Non-GAAP Earnings + ~$10M of Cash Paid Quarterly Designed Not to Impact Operational or M&A Activities j2)| Pekan’ eVoice’ Zrusemail” campaigner FA
Slide 19: Supplemental Information
( i2)) Supplemental . Information 2) @ekax" eVoice’ ZiFuseMail’ campaigner” EAKeep'tSafe’ Wonebox”
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Slide 21: Computation of Free Cash Flow
(2)) Computation of Free Cash FIOw (10 mitions) ~~ uno 240 _asu0 ges ai as ass aes Net eash provided by operating settee saasee 63251727347 22233 Saas $4298 g2ese2 sansa less: Purchases of property and equipment (086) "(0495)" (o#92)__ (0568) (0625) (2860) (2580) (1768) fa: xcesstax(dtcleney Benet o
Slide 22: Non-GAAP Results & Reconciliation to GAAP
Non-GAAP Results & Reconciliation to GAAP pao, we cosandsdninntete wegen" sony gas" gue come Sia a Tass aat ast ltd een ge shre ra vars ae a ts wed erga cbse sae soso _angasnan sa ssupus (1) Change inestmateof deferred revenue (2) shored bese compensation a allows for 06, Cost of revenues i 246K, Sl
Slide 23: j2 Global: Cloud Services for Business
(i2) lobal Cloud Services for Business 52),| Geta’ evoice’ Zrusemat” campaigner” Wkeepisate’ Wonebox” 23