Live Ventures Incorporated · NASDAQ:LIVE
Live Ventures — YP NET — Investor Presentation (March 2004)
32 slides from Live Ventures's investor presentation, Mar 16, 2004
Slide 1: YP.Net, Inc. Investor Presentation 2004
ne YP.Net, Inc. Investor Presentation 2004 Angelo Tullo- CEO David Jannini- CFO March 2004 ,
Slide 2: Disclaimer
, = oe Disclaimer: During the course of this presentation we may discuss YP.Net’s business outlook, which contains forward-looking statements. These particular forward-looking statements AND all other statements that may be made during this presentation that are not historical facts, are subject to
Slide 3: YP.Net, Inc.
a8 YP.Net, Inc. Consistent Profit Consistent Growth Cash Rich Undervalued in the Marketplace Se
Slide 4: Slide 4
Slide 5: YP.com
YPcom America's Online —— 8 22005 Yalow Pages ‘searchin. oy. ‘tote: rr FinitNowt YP.com inthe Nows celular phone at Seatenspeciany
Slide 6: Return on your investment
Retum on your investrn« ent. America's Online Yellow Pages
Slide 7: YP.com Preferred and Basic Listings
YP.com = Retum on your investment. Kays Preferred Listings aceesersrae toi ci ene CASABIANCA PERN inj sar a72s SoswsrmHst e NEWYORK, NY 10019 wdo OAUMBERTOSRESTAURANT =———==S*~*~*~*~*~*«S BLD torwiTTHst a NEWYORK NY 10011 wdo Gin aa0se NEWYORK Nr 10011 wdo Basic Listings -savatararatasttenein Americ
Slide 8: YP.com Preferred Listing
YP.com Prefered Listing xsccizaelit or bicoase CASABIANCA PIZZERIA soavesrTH st easazial} | NEWYORK NY 10019 saawsi|| | (12397-0725, new} fsiness Hours cunae|| | Adana! Company formation Sunday 10:000m-10:000m tarw1il| | Here atcaeabianca Pazera we ae aul ence Monday 10:00am-10:000m ‘NEW YO] | restu
Slide 9: Pree t
Pree t soaws7te| NEWYORK sar wrt NewvorK praia Newvar sTeweRO| NEWVORK yP.cam Peter CASABIANC/ siawsTT4st NEWYORK NY 10} in serar2s NEW YORK Nr 10028 This eas a FREE sere provided by YP.Com forthe onvonience oft users. You wal nate ehaged ary be greeted by an automated system tat wll connect you TF
Slide 10: Slide 10
Slide 11: Additional Products
, = a8 Additional Products = QuickSite™ Packages = Internet Dial-Up Package (IDP) SS
Slide 12: Customer Acquisition
a8 Customer Acquisition = Direct Mail Marketing a 3 Party Verification = Confirmation Card = Mini-Webpage™ Setup = Money Back Guarantee SS
Slide 13: Market Position and Growth Prospects
Market Position and Growth Prospects i) #1 in Yellow Page Internet paying advertising customer count* with: @ 283,000 activated customers ™ 253,000 paying customers Advertising customer growth of 84% over one year Added over 9,000 customers per month, on average, during calendar 2003 Substantial add
Slide 14: Competitive Advantages
, = a8 Competitive Advantages The principal competitive advantages of YP.Net are: = Low customer acquisition cost. = Low cost and convenient billing methods. = Recognized Brand = Large Distribution Network = One Market Focus = Outstanding Customer Service SS
Slide 15: Competitive Advantages
, = a8 Competitive Advantages = Value to Shareholders = Value to Advertisers = Value to Users SS
Slide 16: Internet Competitive Monthly Pricing Comparison
; Internet Competitive Monthly Pricing Comparison @ YP.Net- $21.95- $34.95 & Switchboard- $35.00 ™ Dex Media- $60.00 @ Smart Pages (Southwestern Bell)- $39.00- $49.00 @ Super Pages (Verizon)- $55.00- $90.00 =
Slide 17: Competitive Advantages of Internet Yellow Pages Over Print
v Competitive Advantages of Internet Yellow Pages Over Print To the advertiser: = Better Results, Lower Cost = Flexible Ad Content. To the user: = More current listing information. = Quick access = Fast and easy searching via desktop computer, laptop, PDA and cell phone. = Access to features such as
Slide 18: CEO Summary
a8 CEO Summary = Branding = Continued Growth = Additional Countries = Dividends for Shareholders = Self Funded = Low PE Ratio =
Slide 19: % Growth
2003 2008 % Growth per year 18
Slide 20: Economics of the Business Model
Economics of the Business Model 4 Average of 1 million mailings per month. Random selection from the 18 million U.S. business data base. Cost approximately $400,000 per month. Initial order rate- 1% - 2%. Net Advertiser customer growth rate of 5-10 thousand customers per month. Average payback perio
Slide 21: Investment Incentives
Investment Incentives Excellent Financial Performance Revenues ‘Up 144% to $30.8 million Up 152% to $13.9 million Operating Income Up 227% to $9.2 million Up 166% to $4.7 million Operating Income Margin 30% 34% Net Income Up 114% to$7.9 million Up 200% to $3.3 million Net Income Margin 26% 24% Opera
Slide 22: Attractive Characteristics
a8 Attractive Characteristics = A leading position in the fast growing Internet Services Industry = Arecurring revenue stream = Ahigh growth, high margin, high ROI business model with pricing power. = Aprice to earnings multiple which is below market averages = An extremely low P/E to growth (PEG) r
Slide 23: YP.Net vs. Market Indices
YP.Net vs. Market Indices : Share Price Performance YP.Net price has sharply outperformed all relevant indices over the past year. 3487%%
Slide 24: Price Earnings Ratios
: Price Earnings Ratios a YP.Net vs. Market Indices ! YP.Net price earings ratio is modest compared to major indices. 60 50 OTrailing 12 2 2 Month P/E 30 19 2 Ratio (prices 20 at 3/03/04) 10 0 YPNT S&P 500 DJIA NASDAQ 100 SS
Slide 25: Financial Performance: Comparative Peer Group 2003
Financial Performance : Comparative Peer Group 2003 YP.Net 30.8 79 26% 45% 18 Switehboard | 15.2 21 14% 4% | .10 Ask Jeeves 107.3 26.0 24% 36% | 40 Find What 2 11.8 16% 19% 53 Infospace 160.1 (6.3) NM NM (20) 2) ROES Net Income / Year End equity a
Slide 26: Comparative Peer Group
: Comparative Peer Group Market Performance YP.Net 215 3487% 19 Switchboard 109 153% SF Find What 380 146% 33 Ask Jeeves 974 608% 46 Infospace 1080. 173% NM Source: CBS Marketwatch (3/04) and YPNT price of $4.42 per share a
Slide 27: Price Appreciation
' Price Appreciation YP.Net vs. Peer Group 487% 3500% 3000% 2500% Spree Appreciation BNE (12/31/02- 1500% 12/31/03) 1000% 500% 153% 146% 0% YPNT SWBD FWHT ASKI INSP Peer Group: SWED-Switchboard, Inc. - FWHT- Find What, com + ASKI- Ask Jeeves, Inc. - INSP- Infospace, ae
Slide 28: Price/Earnings Ratio
Price/ Earnings Ratio YP.Net vs. Peer Group’ a3 30 BPrice/ Earning 19 Ratio YPNT SWBD FAWHT ASKI Peer Group: SWBD-Switchboard, Ine. » FWHT- Find What. com» ASKJ- Ask Jeeves, Inc. * Based on trailing 12 months earnings and prices reported on CBS Marketwatch (3/3/04),
Slide 29: Slide 29
Slide 30: Recent Initiatives and Milestones
a8 Recent Initiatives and Milestones February 2004 Branding program initiated January 2004 Launched m.YP.com yellow page portal for mobile users to access the company’s listings on Palm, PDAs and other handheld devices. December 2003 Reached 253,000 paying customers (#1 in industry). October 2003 Ob
Slide 31: YP.Net Products
a8 YP.Net Products Internet Advertising Package (IAP) includes: = Mini-Webpage™ = Preferred Listing = Door to door mapping services » Click2Call™ = Free link to email and web site = Information made available to anyone in the world SS
Slide 32: What We Do
What We Do Internet Yellow Page Basic business listings contain business name, address and phone number for approximately 18 million US businesses. Similar to the print Yellow Pages, there is no charge for this basic listing. We generate revenues from advertisers who desire increased exposure for th