Slide 1: Investor Presentation (Based upon Second Quarter 2004 results)
Investor Presentation (Based upon Second Quarter 2004 results) July 19, 2004 www.j2global.com
Slide 2: Safe Harbor for Forward-Looking Statements
Future operating results Subscriber growth and retention Earnings growth and expectations New products, services and features Corporate spending Liquidity Network capacity and coverage Regulatory developments Taxes Certain statements in this presentation constitute “forward-looking statements” withi
Slide 3: Risk Factors
Risk Factors Inability to sustain growth in our customer base, revenue or profitability Competition in price, quality, features and geographic coverage Inability to obtain telephone numbers in sufficient quantities on acceptable terms in desirable locations Enactment of burdensome telecommunications
Slide 4: j2 Global deploys the power of the Internet
j2 Global deploys the power of the Internet to deliver business critical communication and messaging services to individuals and corporations throughout the world.
Slide 5: j2 Global brands
j2),Global j2)jConnect «eVoice’ @ifax.com q sue ate @ @eFax iBlast.. Consensus (FPaperMaster Pro. ELECTRIC MAIL
Slide 6: Unique Assets
Unique Assets 7.3 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,350+ cities in 20 countries on 5 continents 9.5MM+ unique DIDs worldwide in inventory Patented technology 12 issued U.S. Patents and numerous patents pending Expertise Telecom, messaging, e-mail, Intern
Slide 7: Subscriber Profile
Subscriber Profile Vertical Markets Financial institutions Real estate Law firms & corporate legal departments Medical Government Hospitality Remote workers & “road warriors” Value Proposition Digitization (paper reduction) Security Privacy Efficiency Cost Infrastructure replacement
Slide 8: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, Yahoo!, Google, Lycos, etc.) Sold through: www.eFax.com and www.j2.com Use of proprietary Life Cycle Management ( i.e. Free Paid conversions) Advertising & Calling-Party-Pays revenue supports the Free base Small to Mid-Sized Busine
Slide 9: Active Telephone Numbers (DIDs) & ARPU
$15.52 $15.36 $15.73 $16.68 $0.05 $0.05 $0.05 $0.04 $17.22 $0.04 Active Telephone Numbers (DIDs) & ARPU * Defined as individual customer DIDs with greater than 4 months of continuous service (continuous service includes customer DIDs which are administratively cancelled and reactivated within a cale
Slide 10: Total Revenues
Total Revenues Core Total Revenues focus DID based revenues 21.2% 8.7% 3.9% TTM Growth 38.8% 1.7% -11.7% 18.5% 4.9% % Growth 6.9% 5.6% 6.1% 7.5% 7.1% % of Total Revenues 1,774 1,278 1,257 1,424 1,202 Non-DID based ($M) 52.5% 53.6% 53.5% TTM Growth 11.0% 12.7% 9.9% 10.4% 12.6% % Growth 93.1% 94.4% 93
Slide 11: Global Network Presence
Global Network Presence 1,350+ cities in 20 countries on 5 continents Continuing to expand into new international locations
Slide 12: Product Roadmap
Product Roadmap Inbound Fax to Email Outbound Fax via Email Fax broadcasting Secure fax OCR PDF delivery Fax storage/archive New notification methods Voice Services Inbound VM to Email Voicemail management Telephone access Conference Calling Enhanced voicemail Find me/Follow me Call screening Voicem
Slide 13: Enhanced Voice Messaging
Features include: Voicemail-to-email Telephone user interface Smart Caller ID - Caller name & number Real-Time Call Screening - “Virtual Answering Machine” Leveraging our: 7+ million customers Global network of 1,350+ cities offering local telephone numbers Branding and marketing strategies Enhanced
Slide 14: eVoice
(eVoice’
Slide 15: j2 Global
j2),Global 2) wan tanminsanncin
Slide 16: Historical Revenue Growth
Historical Revenue Growth 29 consecutive quarters of revenue growth
Slide 17: Quarterly Revenues
Quarterly Revenues Q2 Q3 Q4 Q1 Q2 Subscriber $16,307 $17,806 $19,517 $22,062 $25,063 12.8% 9.2% 9.6% 13.0% 13.6% Advertising -0.6% 11.9% 18.4% -5.6% -15.0% Licensing and Other Total Revenues $17,037 $18,903 $20,474 $22,942 $25,831 12.0% 11.0% 8.3% 12.1% 12.6% Quarter-to-Quarter Growth Quarter-to-Qua
Slide 18: Subscriber Revenues
Subscriber Revenues Core Subscriber Revenues focus Fixed revenues 42.9% 46.4% 52.2% TTM Growth 21.1% 9.0% -2.5% 10.8% 13.0% % Growth 29.2% 27.4% 28.4% 31.9% 31.5% % of Subs. Revenues 7,314 6,041 5,542 5,685 5,130 Variable ($M) 57.2% 56.3% 54.4% TTM Growth 10.8% 14.6% 15.3% 8.4% 12.7% % Growth 70.8%
Slide 19: Margins (Percentage of Total Revenue)
(Percentage of Total Revenue) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 81.5% 0c __815%_82,0%0__ Ne om ae a Gross Margin on agave 42.690 39,200 # Operating Margin G&A — Sales & Markél Engineering 8 03 Q4 03 Qi ‘04 Q2'04 2) wan canminsanncine
Slide 20: Earnings & Free Cash Flow
(1) Earnings & Free Cash Flow (1) Excludes benefit of $9.5 million to record the reversal of certain valuation allowances of our deferred tax assets. (2) Net cash provided by operating activities, less purchases of property & equipment. Free Cash Flow amounts are not meant as a substitute for GAAP,
Slide 21: 2004 Financial Guidance
2004 Financial Guidance (1) Assumes an effective approximately 35% annual tax rate and diluted shares of 25,709,879 as of July 15, 2004 $1.00 – $1.18 $0.31 Net Earnings per Fully-Diluted Share (1) $1.65 – $1.83 $0.48 Earnings Before Taxes per Fully-Diluted Share $100 – $106 $27.4 – $27.8 Revenues (m
Slide 22: Recent Events
Recent Events Acquired a portfolio of 6 Internet messaging technology patents (with several pending), and has been issued two new U.S. patents for intellectual property developed internally Launched a localized international offering (language, currency & marketing approach) in Dutch which establish
Slide 23: j2 Global
j2) Global