Idt Corporation · NYSE:IDT
Idt — Investor Presentation (January 2011)
33 slides from Idt's investor presentation, Jan 12, 2011
Slide 1: IDT Corporation Investor Presentation
IDT Corporation (NYSE: IDT, IDT.C) Investor Presentation January 12, 2011
Slide 2: Safe Harbor Statement
IDT| Safe Harbor Statement ‘Ths presentation contains foward-looking statements, Statements that are not historical facts are forward-looking statements and such foward-looking statements are statements made pursuant tothe Safe Harbor Provisions ofthe Private Securities Litigation Reform Act of 1995
Slide 3: IDT is a diversified holding company
is IDT is a diversified holding company with core holdings in telecom and retail energy, supplemented by growth opportunities in technology and oil shale ™ Publicly traded on the NYSE (NYSE: IDT; IDT.C) ™ Global presence: ~1,200 employees on 6 continents ™ Revenues exceeded $1.4 billion in FY 2010 =
Slide 4: Company history
= Founded by Howard Jonas in 1990 based on pioneering automated international call-back technology = IPO in 1996; listed on the NYSE in 2001 = Sold Net2Phone, a VoIP pioneer, to an AT&T led consortium for $1.1 billion in 2000 = Incubated and monetized innovative businesses, i.e., Net2Phone, IDT Ente
Slide 5: Financial Overview
Financial Overview Strong Bottom Line Improvement Net Income Up $244 Million Since FY 2008 ‘somnins Revenue Direct cost Gross Profit Gross margin % Total SG&A Adjusted EBITDA Income (loss) from operations Net income (loss) attributable to IDT $1,725.7 $1,5077 $14014 $1,431.5 $1364.8 $1,160.1 $1,110.
Slide 6: Lines of Business
~ Lines of Business Ma | IDT Telecom Telecom Platform Services Consumer Phone Services Israel Energy Initiatives: (EI) ‘American Shale il (AMSO)
Slide 7: Platform Services
Platform Services Integrated product and distribution company built around network accessible services Distribution Products Market Presence Retail Minutes US and Canada Carriers Int mobile top-up ae Central and South Ameri Direct to Consumer Alternate line residential Sneral and South America \ Asi
Slide 8: Retail, Carrier, TPS Distribution
Retail * Levera * Target * Market gift cards through chain retail outlets * Laune Carrier * Provide wholesale telecommunications voice services * Purchase ILD minutes for all IDT businesses * Maintain over 800 IP and TDM interconnects * Established market presence in 6 continents TPS Distribution ge
Slide 9: Improving Financial Performance
Improving Financial Performance ee Ce Revenue 2752 4 HB BT GMS SARS 1,185.7 $1,1840 Diret cost 2279 82H HO ABE soa34 $009 -$9706 Gross Margin % 172% «176% «= 181% = 186% 78% 203% 179% 18.0% Total SGBA $29 $23 $25 sa $36 9s $120 «g1728 Adjusted EBITDA $44 $89 $01 $i $402 $303 $348 $406 Sustained Reve
Slide 10: Legacy Business Continues to Generate Cash
Legacy Business Continues to Generate Cash ™Resells landline telephony service * Within Verizon footprint - local and long distance bundle © Nationally — long distance only =Launched LD service in 2000. 700k customers at peak =Entered bundled market in 2003. Predicated on UNE-P regulations requiring
Slide 11: Financial Overview
Financial Overview Revenue $285.6 Direct Cost $232.2 Gross Margin 9% 18.7% Total SG&A $45.0 ‘Adjusted EBITDA $83 APEX $23 ‘Adj, EBITDA Less CAPEX $6.0 $3003 $243.8 18.8% $444 $12 s18 $103 $2000 $242.8 19.1% 46 $126 ss gut $308.0 $247.3 19.7% $46.3 $144 $15 $12.9 $309.9 $252.1 18.7% $45.6 $123 $2.9 $
Slide 12: Overview
Overview What we've done ™ Completed major restructuring and cost cutting program @ Bought out partner in US distribution @ Modernized proprietary network platform @ Limited pervasive fraud in the prepaid calling card industry What we're doing now ™ Pursuing a top-line growth strategy ®@ Investing i
Slide 13: IDT Energy
- |DT Energy IDT Energy is an energy services company (ESCO) = Purchases and resells energy (electricity & gas) to end users ® Delivery and billing remains within control of incumbent utility Risk Averse Business Model ™ Focused on residential and small business customers © Variable customer pricing
Slide 14: Financial Overview
nancial Overview , IDT.J Served 365,000 meters at October 31, 2010 Piow Pooe [soe [woo [sot | Revenue $40.3 $60.7 $53.8 $46.5 $45.5 $264.7 $201.4 $206.6 Direct Cost $25.7 44 $38.1 $35.3 $30.8 $192.5 $143.5 $148.6 Gross Margin % 36.3% 26.9% 29.1% 24.0% 32.4% 27.3% 28.7% 28.1% Total SG&A $4.1 4S $5.7
Slide 15: Strategic Objectives
Strategic Objectives ™ Develop advanced technologies and IP for environmentally acceptable unconventional hydrocarbon resource extraction ™ Secure access to resources where these technologies can be applied ™ Pursue resources as a stand alone company or in partnership with major oil & gas players an
Slide 16: Strategic Advisory Board
Strategic Advisory Board Board members advise Genie management on strategic, financial, operational, and public policy matters related to Genie’s oil shale ventures Dr. Alan Burnham - Chief Technology Officer of AMSO Dick Cheney - former VPOTUS and former President and CEO of Halliburton Rupert K. M
Slide 17: AMSO federal RD&D lease in Piceance Basin
AMSO is developing a federal RD&D lease in the Piceance Basin of Colorado AMSO LLC is 50% owned by IDT & 50% by Total, S.A. IDT is operator during R&D phase Total to fund the majority of R&D expenditures, provide technical expertise, and operate commercial project Lease provides 160 acres for develo
Slide 18: AMSO development timeline
2012-2015 2019 and on 2008-2011 —_—_—— Characterize Site Develop conversion ——[Conduet : ; Design-Build Piloff “p04 application permitting Conduct Refine process Demonstration] Conduct supporting experiments and modeling Develop downhole burners | Demonstrate CO, sequestration | Evaluate options Eng
Slide 19: Israel Energy Initiatives is licensed
Israel Energy Initiatives (IEI) is licensed to characterize oil shale in Israel IEI is majority owned by IDT License includes 238 sq. km in south of Hashfela region Estimated 40 billion recoverable boe in license area IEI must obtain all required permits and approvals Upon conclusion of successful p
Slide 20: IEI Project Timeline
IEI PROJECT TIMELINE 2009-2011 aa 2011-2012 2012-2016 2017 and Geological Survey Pilot Demo Commercial Operations Conduct Design, construct and Construct design and Seale up to full comprehensive geological survey operate a pilot facility Production of ~500+ barrels in total Demonstrate technology a
Slide 21: ZEDGE
ZEDGE: www.zedge.net One of the world's largest mobile content sharing platforms with 35 million unique visitors per month Has four different access points: website, mobile site, touch screen site, Android app Contains over 5 million pieces of content, with approximately 4 million daily downloads St
Slide 22: Fabrix video software platform
IDT| Fabrix licenses a video software platform to provide remote storage DVR jes and intelligent, high throughput content distribution. Supported applications include: = Remote Storage DVR / Network Personal Video Recorder = Video on Demand = Trick play / Time shifting = TV Anywhere = Targeted adver
Slide 23: Other assets: spectrum, IP, NOLs
= IDT Spectrum: Holds 649 FCC licenses of fixed wireless spectrum including: 039 GHz licenses providing ubiquitous national coverage 28 GHz licenses covering major metropolitan areas ™ Net2Phone IP = Oil Shale IP = Net Operating Loss (NOL) Carryforwards
Slide 24: Investment Considerations
siderations IDT Opportunity Strong, liquid balance sheet (see Appendix) ™ Cash, cash equivalents and CD's of ~$11/share = Minimal goodwill & intangible assets = Mainly mortgage debt Core businesses are growing and generating Free Cash Flow ™ Approximately $85M in free cash flow during FY2010 = IDT T
Slide 25: Appendix
APPENDIX
Slide 26: Revenue
Revenue rela sizs74 siass8 sizis2 [DT Enoroy $2047 S014 $2056 Alother 8 363 a2 ‘otal $39077 sa0L suas Dt Tekcom $306.8 906.2 $9260 Dr Energy si925 sus $188 Alother 22 suo st ‘otal $4,160 s1tio7 $11357 Dr telecom 21.0% 19.1% [DT Emery 273% 27% aloter xy sane ‘otal Base Ea SqaA and RAD Dt Telcom smo s
Slide 27: Balance sheet
Cash, marketable securities and short term investments $189.2, $235.3 $243.3, Accounts receivable $138.7 $105.2 $113.4 Other current assets $35.0 $40.6 $41.0 Assets of discontinued operations $18.8 - : Total current assets $381.7 $381.1 $397.7 Property, plant and equipment, net $129.1 $96.9 $95.1 In
Slide 28: Non-GAAP Financials
f Non-GAAP Financials Reconciliation of Non-GAAP Financial Measures Jngiiint incluing fran els that ae detrinedin accordance with general accepted ccountng pnp in the United Sates of Aree, {G88} 70 Investor presentation ao ndded Adjusted EBITDA and free Cah How, win ae ron-GhAP traci meatures, Caer
Slide 29: Non-GAAP Financials
f Non-GAAP Financials IDT| Reconciliation of Non-GAAP Financial Measures, continued from previous page Fall he cin estes) on seerents ap oter nt, ar the arivaton award income which age components of cme ea) fom operation, are Cee Se ee oe Ot ee ee ne ee a ea ce et, Fee ere astro leP ats crac aeton s
Slide 30: Non-GAAP Financials
f Non-GAAP Financials IDT.
Slide 31: Non-GAAP Financials
of Non-GAAP Financials IDT Telecom Financial Overview page 13 Subtract (ade: Depreciation and amortization Inpalements Restructuring and severance charges Gains on settements anc ather, net Income (ss rom operations IDT Energy -Financal Overview page 16 Acjustes EBITDA Suotrac: Depreciation and amor
Slide 32: Non-GAAP Financials
of Non-GAAP Financials 2 IDT.
Slide 33: IDT Corporation
IDT Corporation