Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Raymond James 34th Annual Institutional Investors Conference (March 2013)
26 slides from Ziff Davis's conference presentation, Mar 6, 2013
Slide 1: Raymond James 34th Annual Investor Conference
> Raymond James 34% Annual Investor Conference (Based on Fourth Quarter and Annual 2012 Results) March 6, 2013 j> @e¥ax’ <eVoice ®FuseMail’ “campaigner WKeepitSafe’ Wonebox Bizsiie
Slide 2: Safe Harbor for Forward-Looking Statements
(i2)) Safe Harbor for Forward-Looking Statements ~ Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the “2013 Guidance” slide. These forward- looking statements are bas
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: * Inability to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy and
Slide 4: Solution Overview
( i2)) Solution Overview j2) Global ¥ Direct Inward Dial (DID) Non-DID-based ee @QeFax’ @ myfax @faxcom Osmartfax" << eVoice Wonebox 69% Total Revenuelt) 14% Total Revenuet"! Hosted Email: Email Marketing: FuseMail’ “? Campaigner 5% Total Revenue!" HiKeepltSafe’ (_1% Tota! Revenue" CRM Digital Publi
Slide 5: Financial Highlights
! i2) Financial Highlights j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE
Slide 6: Q4 and Full Year 2012 Non-GAAP Results
Q4 and Full Year 2012 Non-GAAP Results Q4.2012 Non-GAAP FY 2012 Non-GAAP $ Margin $ Margin Revenues $102.0M $371.4M Gross Profit/Margin $83.6M 81.9% $305.2M 82.2% Operating Profit/Margin $45.1M 44.2% $172.1M 46.3% Eps ( $0.70/Share $2.69/Share EBITDA®) $52.3M $196.0M Free Cash Flow $45.2M $166.0M Ca
Slide 7: Digital Media Update
(2) Digital Media Update j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE
Slide 8: Investment Rationale: Digital Media
( j2)) Investment Rationale: Digital Media ~ + Attractive Space * Large, growing and dit uptive market * Acquisition opportunities for premium brands in attractive verticals with proven management teams * Targets SOHO and SMB customers similar to our cloud services business * Superior marginal econo
Slide 9: Ziff Davis Overview
(j2 )) Ziff Davis Overview Web Traffic 2010-2012 Revenue & EBITDA (1) $14 1,200 $50 sz 2,000 i 10 $40 = 800 $8 a $30 5 00 o $6 = $0 & $a = 400 ¢ a $10 $2 = 20 Es 0 2010 2011 2012 2010 2011 2012 emmrcveney| e100 a = te ee ee on —tomoa $6 $7 $122 495% increase in web traffic visits from 2010 to 2012 3
Slide 10: Ziff Davis Opportunity: Technology
j2 Ziff Davis Opportunity Technology le A Digital Media Company Informing/Influencing Buyers of Technology Beat Tech & Telecom - second largest online ad category, ~ $7B (") 9g eek com Proven management team PCMAG.COM : History of successful turnaround/organic and EBITDA growth LOGICBUY Organic: 100
Slide 11: IGN Opportunity: Gaming & Lifestyle
(i2)) IGN Opportunity Gaming & Lifestyle ~ + Key Statistics + 1.4B annual visits (2012) (") 5.2B page views (2012) ") 1.6B video streams (2012) (1) IGN 74k video game reviews, 130k published videos, 1M gallery images 243 index against Male 18-34 audience) + Opportunities & Benefits to j2 a) 2 Expand
Slide 12: IGN Integration Plan
IGN Integration Plan Easy to Integrate, core functions mirror ZD: editorial, reviews, traffic, ad sales Accelerate traffic growth via referrals and page views per visit Build upon emerging video advertising business Opportunity to drive deal-based commerce revenue Adds substantial data signal and pr
Slide 13: Cloud Update
( i2) Cloud Update j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE 13
Slide 14: Lowest Cancel Rate
( j2)) Lowest Cancel Rate ~ * Cancel rate at record low * Customer base growing in size and loyalty * Continue to improve (2) Cancel Rate is defined as cancel related to individual customer DiDs with greater than & months of continuous service (continuous service includes customer Ds administrativel
Slide 15: 2012/2013 Revenue Diversification
2012/2013 Revenue Diversification 2012/2013 major events: * Fax grew from ~$200MM in 2009 to ~$285MM Projected 2013, its percentage of j2 revenue dropped from 82% to 55% * Fax — Organic growth driven by Corporate & Japan * Voice - Organic growth US; expanded into Australia/New Zealand via Zintel acq
Slide 16: 2013 Financial Outlook
! i2)) 2013 Financial | Outlook j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE
Slide 17: 2013 Guidance
( j2)) 2013 Guidance ~% (Reaffirmed March 6, 2013) Guidance Revenues $500M - $525M Non-GAAP EPS (1) $2.65 - $2.85 ©) Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, acquisition relatedintegration costs, in each case net of tax. Itis anticipated that t
Slide 18: Quarterly Dividend / Repurchase Plan Extension
2 ) Quarterly Dividend / Repurchase Plan Extension ~ Quarterly Dividend Timing * Record Date - February 25th / Payment Date - March 4th Payment Amount * $0.2325 Per Share * ~ 30% of Quarterly Non-GAAP Earnings /~ $10M of Cash Designed Not to Impact Operational or M&A Activities Repurchase Plan Exten
Slide 19: Supplemental Information
( j2)) Supplemental Information j2) | Pefax ceVoice Zrusemait campaigner WKeepliSafe’ Wonebox ZZE 19
Slide 20: j2 Metrics - Cloud
(j2 Metrics - Cloud ‘j2 Cloud 2ot 20a a 3 of a 2 3 of Total GAAPRevenues ® 3 5733845676 05.026 585,072 506,652 $89.405 $92,245 92,202, Adjustment H 0.326 0 30 0 0 ‘ ‘ = seeimscreannweanes z Sie en paca yaar mwas wees a Fixed Subscriber Revenues + wan wean) -ymaei HST won? waie7 saiea saan Variable S
Slide 21: j2 Media
i2 Media 2011 2012 on @ a eS a @ ca ee Web Traffic ® £ Vists 4s 49 7 7 80 2 22 104 Pageviews 153 164 ast 243 238 285 264 24a 32 Consolidated ECIEN ECE on @ e e a @ a co TotalGAAP Revenues 7330 985676 $06,008 985.072 so6es2 05,465 593,285 $102,033 ‘Adjustment i 510,326 2 2 30 2 2 0 2 Totallion GAAP R
Slide 22: GAAP Reconciliation Free Cash Flow & EBITDA
(2) GAAP Reconciliation Free Cash Flow & EBITDA ($ in millions) Free Cash Flow (?) am omit as ast | ame aziz asia asi Net eash provides by operating actives soetss $42.298 szaee2suisis | sags sae-2e2 sne.ts3 s48.294 Less: Purchases of property and equipment ($0625) ($1.860) ($2590) ($1.769)] (1.159)
Slide 23: FY GAAP Reconciliation Non-GAAP Earnings & EPS
(2) FY GAAP Reconciliation Non-GAAP Earnings & EPS THREE MONTHS ENDED DECEMBER 31, 2012 TWELVE MONTHS ENDED DECEMBER 34, 2012 @ ( @ @) Additional (1) Acquisition (1) Acquisition Gain on Income Tax Sharetased and Exit Sharetased and Ext Saleof | Beneft fom GAAP Compensation Costs Non-GAAP GAAP Compen
Slide 24: Ziff Davis GAAP Reconciliation EBITDA
(j2)) Ziff Davis GAAP Reconciliation EBITDA EBITDA (1) 2010 2011 2012 GAAP Net Income (Loss) (3319) $2.312 $631 Fixed charges sa $30 s126| Provision for income taxes 206 821 1,154] Depreciation and amortization and other non-cash tems. S752 s2g71 $6,184] Non-recurring (gains) losses 31,528 31,407 4.
Slide 25: j2 Note Ratios & Covenants
<2, j2 Note Ratios & Covenants $250 Million Senior Unsecured Notes 12/31/2012 Actual % of Total Total Cash & Investments s 343.6 Total Debt s 250.0 14.7% Total Market Capitalization ‘” $ 1,462.1 85.3% EBITDA-LTM 1231/12” s 192.0 Ratios Leverage Ratio - Net Debt / EBITDA LTM 1.30x Fixed Charge Ratio
Slide 26: Thank you.
>» Thank you. 26 j2 eFax’ (eVoice ®&X|FuseMail’ “campaigner WMKeep\tSafe’ Wonebox Bais
j2 Global — Raymond James 34th Annual Institutional Investors Conference (March 2013) on 6ix