Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Investor Presentation (September 2002)
27 slides from Ziff Davis's investor presentation, Sep 4, 2002
Slide 1: Investor Presentation (Based upon Second Quarter 2002 results)
j2 www.j2global.com ™ Investor Presentation (Based upon Second Quarter 2002 results) September 2002
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, These forward looking statements are based on management's current expectations or beliefs as of Sept
Slide 3: Risk Factors
j2) iota Risk Factors The following factors, amorg others, could cause actual resuits to alffer materially fom those cbscribed! in the JorwarcHiooknng statements: ‘Inability to generate greater revenues and profits from unified communications, messaging, conference caling, broadcast faxing and adver
Slide 4: j2 Global delivers business critical communication and messaging services
j2) iota j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world. 4 52) clonal communications, tne.
Slide 5: Investment Considerations
j2 Global Investment Considerations Participate in large, established & growing markets + Fax + Voicemail + Conference Calling + Unified Messaging Proven business model + Monthly recurring revenue model * 3 Sales channels Assets * Customer base & brand awareness Global network Patents Financial posi
Slide 6: Assets
j2 Global Assets 4.5 mi Global advanced messaging network * 800+ cities in 18 countries on 5 continents lion subscribed phone numbers + 5+ MM unique telephone numbers worldwide, and growing Patented technology and product roadmap + 5 issued U.S. Patents, with 8 Patents pending Strong financial posit
Slide 7: Market Size
j2 Global Market Size Fax + Est. $90+ B annual spend on transmission and supply costs + Installed base of 27+ MM machines in the U.S. and growing Voicemail + 76+ MM enterprise voicemail boxes in use at end of 2000 * Significant outsource service opportunity Conferencing Services Estimated at more th
Slide 8: Sales Channels
j2 Global Sales Channels Web + Targeted marketing to individuals over the Web + Use of Web-based marketing tools + Target individual users Corporate + Direct sales force to SMEs and large corporations * Tele-sales to smaller businesses * Resellers Licensed Services + Focused on large-scale opportuni
Slide 9: Web Channel Services
j2 Global Web Channel Services Faxing ¢ Inbound receipt of faxes into a subscriber's personal Email Inbox + Desktop sending (format independent) + Unique subscriber telephone number Unified Messaging + Faxing + Inbound receipt of voicemail into a subscriber's personal Email Inbox + Web-initiated Con
Slide 10: Web Channel Overview
j2 Global Web Channel Overview Revenue Sources + Monthly recurring * Usage-based * Advertising Marketing * Word of mouth / Branding / Advertising * Cost-per-Acquisition (CPA) deals + Lifecycle Management — Continually improve the quality of our customer base by evaluating all subscribers for margin
Slide 11: Corporate Channel Services
j2 Global Corporate Channel Services Faxing + Inbound receipt of faxes into a subscriber's personal Email Inbox (secure & private) + Desktop sending (format independent) + Web-based Broadcast Faxing + Centralized on-line account management + Real-time telephone number provisioning + Advanced billing
Slide 12: Corporate Channel Overview
j2 Global Corporate Channel Overview Revenue Sources + License fees + Monthly recurring * Usage-based Marketing + Direct sales force + Telemarketing / TeleSales + Web-generated leads * Leads from existing databases of Web channel customers Status (as of 6/30/02) + 1,100+ corporate clients using j2 G
Slide 13: Corporate Channel Customers
j2 Global Corporate Channel Customers (Sample list) * Wells Fargo Mortgage ¢ AT&T NovaStar Mortgage + Sony Pictures ¢ The New York Times * HJ Heinz # H&R Block Mortgage Also + Law firms + Real estate ¢ Financial institutions + Remote workers & “road warriors” B 52) clonal communications, tne.
Slide 14: Licensed Services Channel Overview
j2 Global Licensed Services Channel Overview Offerings + 42 Global’s network, application capabil services integrated into 3" party offerings + Licensing of j2 Global's intellectual property and know how + Royalty revenue from non-core assets Marketing * One-on-one meetings and negotiations + Large
Slide 15: Global Network Presence
j2 Global Asia/Pacifica 15 Global Network Presence The Americas Pag Europe = to be deployed 52) clonal communications, tne.
Slide 16: Industry Accolades
J2) siovai Industry Accolades + a MVP Finalist FAST GO FST500 G2 Global Named i Fastest 2 blob af Named 30h Growing Technology Frain Fastest Growing Techookoy 0s Angeks Firm io Nor America For 2001 and 8? For 2002 For 2004 100 Best Wee Sites ‘for entrepreneurs 2001 ~ “Transmit It” Category 16 52) cl
Slide 17: Product Roadmap
j2 Global Product Roadmap Unified Messaging & Comm, Services Voice Document Services Management «Inbound Fax to Emal «Inbound VM to Ema + Protorae + Integrated Ema, * Outbound Fax via Email + Voicemal management + Messenger voicemal & fae services + Fax broadeasting ‘Telephone access + HotSend® + we
Slide 18: Financial Highlights
Financial Highlights 52) clonal communications, tne.
Slide 19: Revenue Growth
| Revenue Growth ‘orica Hist 20 consecutive quarters of revenue growth $12.0 $10.0 $8.0. $6.0: (suot) $4.0: $2.0. $0.0. 42) Globat Communications, Inc 19
Slide 20: Earnings & EBITDA
j2) iota 20 (Millions) $5.0 $3.0 $1.0 $1.0 $3.0 $5.0 $7.0 Earnings & EBITDA Q2'00 Q3'00 Q4'00 Qi’o1 Q2’01 Q3"01 Q4'01 QI‘0z g2'02 TEGAAP Net Earnings mPro Forma Net Earnings” BEBITDA * GAAP earnings (loss), less Amortization of goodwill and other intangibles, less impairment of acquisition related i
Slide 21: Cost Trends
j2 Global Cost Trends $4.0 $3.5 + $3.0 COGS ? $2.5 = $2.0 Sales & Marketing $15 a $x0 ‘Engineering —| $0.5 $0.0 Q3 ‘01 Q4 01 qi ‘02 Q2 02 21 52) clonal communications, tne.
Slide 22: Quarterly Revenue
J2) siovai Quarterly Revenue 2001 2002 Q3 Q4 Qa Q2 Subscriber $7676 $8,356 $9,370 $10,427 Quarter-to-Quarter Growth 5.3% 8.9% 12.1% 11.3% Advertising 652 896 827 705 Quarter-to-Quarter Growth 164.0% 37.4% 7.7% -14.8% Licensed Srvs & Other ___ 269 328 182 174 Total Revenue $8,597 $9,580 $10,379 $11,3
Slide 23: Quarterly Revenue by Channel
J2) siovai Quarterly Revenue by Channel 2001 2002 Q3 Q4 Qi Q2 Web $6,678 $7,232 $7,733 $8,292 Quarter-to-Quarter Growth 7.6% 8.3% 6.9% 7.2% Corporate 1650 2020 2464 2,840 Quarter-to-Quarter Growth 23.9% 22.4% 22.0% 15.3% Licensed Services 241 314 182 174 Other 28 14 0 0 Total Revenue $8,597 $9,580 $
Slide 24: 2002 Financial Performance Guidance
j2 Global 2002 Financial Performance Guidance (Supplemented 9/4/02) Quarterly Revenue Growth Rates ¢ Subscriber: 7% - 12% + Advertising: Flat Quarterly Revenue Growth Rates by Channel * Web Channel: 5% - 10% * Corporate Channel: 10% - 33% EBITDA Flow-Through of Incremental Revenue *Q3: 30%+ +04: 50%
Slide 25: Condensed Balance Sheet at June 30, 2002
j2 25 Global Condensed Balance Sheet at June 30, 2002 (Thousands) ASSETS (Cath and cach equivalete (Other curent aczete Total cutent assets Fumitur,fotures and equipment net Goodwill. othr purchased intangibles, nat Other assets Total azcets LIABILITIES AND STOCKHOLDERS EQUITY ‘Accounts payable and
Slide 26: Recent Announcements
j2 Global Recent Announcements Surpassed 800 locations around the world where j2 Global offers local telephone numbers # j2 Global's Corporate client base using j2 Global telephone numbers topped 1,100, with more than 29,000 numbers in use # j2 Global named to Russell 2000 and 3000 indices * j2 Glob
Slide 27: Global
j2). Global
J2 Global Communications — Investor Presentation (September 2002) on 6ix