Idt Corporation · NYSE:IDT
Idt — Investor Presentation (October 2010)
35 slides from Idt's investor presentation, Oct 19, 2010
Slide 1: IDT Corporation Investor Presentation
Ww IDT IDT Corporation (NYSE: IDT, IDT.C) Investor Presentation October 20, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, Statements that are not historical facts are forward-looking statements and such forward-looking statements are siatements made pursuant tothe Safe Harbor Provisions ofthe Private Securities Litigation Reform Act of 1995, E
Slide 3: IDT Overview
IDT Overview 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
Slide 4: Brief History
ww I Brief Histo! = 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., N
Slide 5: IDT Turn-Around Program
IDT Turn-Around Prog Beginning in the second half of FY 2008, IDT implemented a successful turn-around program with the following four objectives as its foundation: ™® Reduce corporate overhead ™@ Divest non-core assets ® Streamline operations in core businesses © Invest prudently in a select few gr
Slide 6: IDT Consolidated Financial Overview
Ww IDT IDT Consolidated Financial Overview Strong Bottom Line Improvement Net Income Up $244 Million Since FY 2008 (usoinmitem Revenue Direct cost Gross Profit Gross margin % Total SG&A Adjusted EBITDA Income (loss) from operations Net income (loss) FY09 FY 10 $1,725.7 $1,364.8 $360.9 20.9% $434.1 (
Slide 7: IDT Corporation Lines of Business
w IDT Corporation Lines of Business IDT Telecom All Other Genie Energy | Telecom | Consumer | | oT Genie Platform Services Phone Services Energy Oil & Gas
Slide 8: IDT Telecom - Platform Services
IDT IDT Telecom - Platform Services Integrated product and distribution company built around network accessible services Distribution Products Market Presence Retail Minutes US and Canada Carriers Int'l mobile top-up Europe Direct to Consumer Alternate line residential GEIRCIETSIE STDS Ste. Asia Res
Slide 9: IDT Telecom - Platform Services
IDT Telec: Platform Services Retail = Leverage robust prepaid platform and distribution network = Target immigrant communities via established calling card brands *® Market gift cards through chain retail outlets = Launch new products such as International Mobile Top-Up (IMTU) Porryratkc TPS Distrib
Slide 10: IDT Telecom - Platform Services
Corp IDT Telecom - Platform Services Minutes Revenue Deferred Revenue (inbilioes) : s 1,100 a 900 1 oo 4 700 ss 500 50 - 2009 2010 2009 2010 2009 2010 Gross Profit SG&A Adjusted EBITDA (sation) no alos) a6 inmilors) 34 200 2 160 30 160 Ey 26 40 m 120 a 100 2 = 2009 2009 2010 2009 GM = 21.8%
Slide 11: TPS Financial Overview
ti TPS Financial Overview Ww IDT Corp Improving Financial Performance Revenue $275.2 $290.4 $291.3 $299.7 $1,156.7 $1,183.5, Direct Cost $227.9 $239.2 $238.7 $244.0 $949.9 $943.4 Gross Margin % 17.2% 17.6% 18.1% 18.6% 17.9% 20.3% Total SG&A $42.9 $42.3 $42.5 $44.4 $172.0 $209.8 Adjusted EBITDA $4.4
Slide 12: IDT Telecom - Consumer Phone Services
ww IDT IDT Telecom - Consumer Phone Services 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 20
Slide 13: IDT Telecom Financial Overview
ww IDT IDT Telecom Financial Overview . 1g09 | 2000 | 3909 | 400 | iq | 2010 | sero | aqio vio | Fv09 Revenue $3355 S30R1 28S «$3087 28H 003300000 su938 $1237 Diect Cost 2554 RGD GRA ge RB GATS $9662 $366.8 Gross Margin 96 209% 262% =H. «BIH 18H «IH 1. 191% 21.0% Total So8A $24 532585 SHLD SRA HG HH
Slide 14: Overview: What we've done, what we're doing now
ww IDT Overview What we've done = Completed major restructuring and cost cutting program = Bought out partner in US distribution = Modernized proprietary network platform What we’re doing now = Pursuing a top-line growth strategy = Investing in distribution channels = Marketing and developing produc
Slide 15: Genie Energy - IDT Energy
IDT Genie Energy - IDT Ene 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 cu
Slide 16: IDT Energy - Financial Overview
WV! Corporati IDT Energy - Financial Overview Served 369,000 meters at July 31, 2010 Revenue $672 $939 $557 «$37.0 $403 $507 $3B 45S GOLA gaaT Direct Cost $7.0 S711 69 $7H SST GNA GBA «G53 SBS 1925 Gross Margin 9 301% 24% WM «253% 26H 19.1% 240% BI -27.3% Total SGBA goo $64 $59 HHS HAC“ (ASST GSS SI
Slide 17: Genie Energy - AMSO
Ww I Genie Energy - AMS! 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. Piceance Basin = IDT to operate during pre-commercial phase 4 = Total to fund the majority of R&D expenditures, provide technical expertise, and oper
Slide 18: AMSO Project Timeline
ww IDT Genie Energy - AMSO AMSO PROJECT TIMELINE 2008-2011 2011-2014 2018 and on. Characterize Site Support comme! conversion || conversion and Design Pilot [Conduct Pilot] application permitting D Conduct Refine process orks |] Semi-Works ate options Conduct supporting experiments and modeling ng /
Slide 19: Genie Energy - IEI
Genie Energy - IEI Israel Energy Initiatives (IEI) is licensed to characterize oil shale in Israel Legend = IEI is majority owned by IDT = License includes 238 sq. km in south of Hashfela region = Estimated 40 billion recoverable boe in license area = TEI must obtain all required permits and approva
Slide 20: IEI Project Timeline
OL 20 2009-2011 Conduct comprehensive geological survey Genie Energy - IEI IEI PROJECT TIMELINE 2011-2012 Pilot Design, construct and operate a pilot facility Production of ~500+ barrels in total Demonstrate technology and attain “discovery” under the Israeli Petroleum Law, prerequisite to apply for
Slide 21: Genie Oil & Gas Strategic Advisory Board
Ww ID Genie Energy - Genie Oil & Gas Strategic Advisory 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
Slide 22: Zedge
ww IDT ZEDGE: www.zedge.net One of the world's largest mobile content sharing platforms with 30 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 downl
Slide 23: Fabrix
OS ID Fabrix Fabrix licenses a video software platform to provide remote storage DVR ies 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 24: IDT Additional Assets
IDT Additional Assets = IDT Spectrum: Holds 649 FCC licenses of fixed wireless spectrum including: © 39 GHz licenses providing ubiquitous national coverage © 28 GHz licenses covering major metropolitan areas = Net2Phone IP = Oil Shale IP
Slide 25: Investment Considerations
Inves Considerations IDT Opportunity Strong, liquid balance sheet (see Appendix) = Cash and marketable securities in excess of $10/share = Minimal goodwill & intangible assets = Mainly mortgage debt Core businesses are growing and generating Free Cash Flow = Approximately $85M in free cash flow duri
Slide 26: Appendix
(GY IO Corporation APPENDIX
Slide 27: Financial Overview by Business Unit
Financial Overview by Business Unit Revenue DT Telecom $4,237.4 $1,1938 DT Energy $2647 014 All other 258 $63 Total $4,507.7 $1401 Direct Cost DT Telecom 4966.8 $966.2 DT Energy $1925 $1435 ‘All other 302 psy Total $1,160.1 $1,110.7 Gross Margin % DT Telecom 21.8% 19.1% DT Energy 773% 28.7% All Othe
Slide 28: Balance Sheet Overview
Ww I alance Sheet Overview (0mm) Cash, marketable securities and short term investments $189.2 $235.3, Accounts receivable $138.7 $105.2 Other current assets $35.0 $40.6 Assets of discontinued operations $18.8 - Total current assets $381.7 $381.1 Property, plant and equipment, net $129.1 $96.9 Intan
Slide 29: Reconciliation of Non-GAAP Financials
29 Reconciliation of Non-GAAP Financials 1n addition to including financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), TDT's investor presentation also Inclided Adjusted EBITDA and Free Cash Flow, which are non-GAAP
Slide 30: Reconciliation of Non-GAAP Financials
30 Reconciliation of Non-GAAP Financials ion of Non-GAAP Financial Measures, continued from previous page I wc cone ere epee acne fog oun eLoe OO Oa Oe Sac Bee i at Tn es eS a ater Fee bee eee ae slp eee SE nae pen PE a er Hiei stn cote an ess oy oa Pron fo earth fon measurement of Adjusted EBITDA m
Slide 31: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials OT Consolidate Franc Overview Pages Froa. vos. FYao ‘Adjusted EBITDA $s (73201) $4585 § 60K Subvat (2a): Depression an arortaion soes2 4708326 Inparmers| pea east fc) Resrucuring charges Sys. 938247 ‘biraion avd (40,000) (Gan) oes on setlenents end otwe, 9.56259
Slide 32: Reconciliation of Non-GAAP Financials
32 Reconciliation of Non-GAAP Financials {D1 Telaom Fans Ova Page 1q09 2909307 ago, gto aga gto gto rove ‘Adjusted EBITOA 77 $ 620 $ 3B § MEN $ BME $ BI $ BEd $s MIR s MSs «m6 Sat Schon rd resan a a a a Restrcturing charges (7) 4670 308 07 (60) 68 0 26 1604 478 {Sine on sehen a ober ne 10,00 is) 081
Slide 33: Reconciliation of Non-GAAP Financials
w IDT Reconciliation of Non-GAAP Financials Financial Overview by Business Unit Page 27 FY 2009 Genie IDT Telecom IDT Energy Ol & Gas AllOther Corporate Total ‘Adjusted EBITDA S 49366 § 45,505 $ (6430) $ (10,533) $ (28423) $ 49,405, Subtract (add): Depreciation and amortization 42,643, 18 - 3,666 12
Slide 34: Reconciliation of Non-GAAP Financials
Reconciliation of Non-GAAP Financials IDT Consolidated - Free Cash Flow Page 3 FY10 Free Cash Flow (FCF) $47,893 ‘Add: Capital expenditures 8,310 Net cash provided by operating activities $56,203) Investment Considerations Page 25 FY10 IDT Telecom - net cash flows from operations 63,904 IDT Energy -
Slide 35: IDT Corporation
(GY IDT Corporation IDT Corporation