Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — J2 Global Communications — Investor Presentation (October 2002)
28 slides from Ziff Davis's investor presentation, Oct 29, 2002
Slide 1: Investor Presentation (Based upon Third Quarter 2002 results)
j2 www.j2global.com ™ Investor Presentation (Based upon Third Quarter 2002 results) October 2002
Slide 2: Safe Harbor for Forward-Looking Statements
j2)Global ; : 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 beli
Slide 3: Risk Factors
j2)Global Risk Factors The following factors, amorg others, could cause actual resuits to clffer materially from those cbscribed! in the JorwarcHooking statements: ‘Inability to generate greater revenues and profits from unified communications, messaging, conference caling, broadcast faxing and adve
Slide 4: j2 Global delivers
j2)Global 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
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 position 2 Peo
Slide 6: Assets
j2)Global Assets 4.6 mi Global advanced messaging network * 950+ cities in 18 countries on 5 continents lion subscribed phone numbers + 5MM+ unique telephone numbers worldwide, and growing Patented technology and product roadmap + 5 issued U.S. Patents, with 9 Patents pending Strong financial positi
Slide 7: Market Size
j2)Global Market Size Fax + Est. $90B+ annual spend on transmission and supply costs + Installed base of 27MM+ machines in the U.S. and growing Voicemail + 76MM+ enterprise voicemail boxes in use at end of 2000 * Significant outsource service opportunity Conferencing Services Estimated at more than
Slide 8: Sales Channels
j2)Global Sales Channels Web + Target individual users + Targeted marketing over the Web + Use of Web-based marketing tools Corporate + Direct sales force to SMEs and large corporations * TeleSales to smaller businesses * Resellers Licensed Services + Focused on large-scale opportunities that can pr
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 improves 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 9/30/02) + 1,200+ corporate clients using j2 G
Slide 13: Corporate Channel Markets
j2)Global Corporate Channel Markets ¢ Financial institutions + Law firms & corporate legal departments + Real estate + Hospitality + Medical * Government ¢ Remote workers & “road warriors” Critical Features ecurity ¢ Privacy ¢ Efficiency «Cost B 52) clonal communications, tne.
Slide 14: Licensed Services Channel Overview
j2)Global Licensed Services Channel Overview Offerings + {2 Global's network, application capabilities and 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
Slide 15: Global Network Presence
Global Network Presence | Asia/Pacific The Americas. Europe 950+ cities in 18 countries on 5 continents ‘tobe deployed 15 52) clonal communications, tne.
Slide 16: Industry Accolades
Industry Accolades MVP Finalist 50 57500 2 Global Named Fastest 52 Slobalin Top 100 Fastest ‘Growing TechavlogyFirm in” Grossing Technology Frm: Les Angeks 10 Nor Ameria Fer 2004 and 2002 For 2001 and 2002 Wee Sites ‘for entrepreneurs 2001 ~ “Transmit It” Category Daeg ting essing Woke Category 16 5
Slide 17: Product Roadmap
j2) Global v IP , Document Fax Management Inbound Fax to Ema + ProtoFax® + Outbound Fax via Email * Messenger + Fax broadcasting + HotSend® + PaperMasteraee +0cr + PaperMaster+ + Seaure fax send & receive + Fax storagefarchive + New notification methods I Currently offered I Future cpportunities Pro
Slide 18: Financial Highlights
j2)Global Financial Highlights 52) clonal communications, tne.
Slide 19: Revenue Growth
zo, £0 zo, 20 zo, 10 10,40 10, €0 10,20 10, 10 00, 6 00, £0 00, z0 00, 1. 66,60 66,£0 66,20 66,10 86, 60. 86, £0 86,20 86,10 246, 60. 46,0 46,70 46,10 | Revenue Growth ‘orica Hist of revenue growth 21 consecutive quarters $14.0 $120 $10.0 $8.0 $6.0 $4.0 $20 $0.0 (suot) 3 2 2 oO a N 42) Globat Commun
Slide 20: Paid Numbers (DIDs) Growth
j2)Global Paid Numbers (DIDs) Growth 275,000 Paid Numbers (DIDs) as a percent of Total Active DIDs 250,000 De. g g 2 5.0% & 225,000 € 5 2 3 4.6% é 200,000 4.3% 175,000 | 12/31/2001 9/31/2002 6/90/2002 9/90/2002 20 52) clonal communications, tne.
Slide 21: Earnings & EBITDA
j2) Global z = Earnings & EBITDA $5.0 $3.0 Qior —g201- 301-401 gi toz = gz'02 302 TEGAAP Net Earnings mPro Forma Net Earnings” BEBITDA * GAAP earnings (loss), less Amortization of goodwill and other intangibles, less impairment of acquisition related intangibles, net of other one-time items. a1 42)
Slide 22: Cost Trends
j2)Global Cost Trends $4.0 $3.5 7 $3.0 coGSs $2.5 $2.0 (Millions) Sales & Marketing $15 $1.0 Engineering SS $0.5 $0.0 Q3 01 Q4 01 Qi 02 Q2 02 Q3 02 22 52) clonal communications, tne.
Slide 23: Quarterly Revenue
j2)Global 23 Quarterly Revenue 2001 2002 Q4 Qi Q2 Q3 Subscriber $8,356 $9,370 $10,427 $11,551 Quarter-to-Quarter Growth «8.99 «12.1% = 11.3% += 10,89 Advertising 896 827 705 783 Quarter-to-Quarter Growth 37.4% 7.7% -148% 11.1% Licensed Srvs & Other 328 182 174 169 Total Revenue $9,580 $10,379 $11,30
Slide 24: Quarterly Revenue by Channel
j2)Global Quarterly Revenue by Channel 2001 2002 Q4 Qi Q2 Q3 Web $7,232 $7,733 $8,292 $9,031 Quarter-to-Quarter Growth 8.3% 6.9% 7.2% 8.9% Corporate 2,020 2,464 2,840 3,303 Quarter-to-Quarter Growth 22.4% 22.0% 15.3% 16.3% Licensed Services 314 182 174 169 Other 14 0 0 0 Total Revenue $9,580 $10,379
Slide 25: 2002 Financial Performance Guidance
j2)Global 2002 Financial Performance Guidance 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 + Q4: 50%+ Annual Estimates ©) * Revenue
Slide 26: 2003 View
j2)Global 2003 View Current View * No facts or circumstances are currently known, subject to the risk factors outlined in the Company's SEC filings, which would make 2003 performance directionally different than the recent past 2003 Budgeting process currently underway Historical Results + Subscribe
Slide 27: Recent Events
j2)Global Ee Recent Events # j2 Global awarded #1 ranking in Deloitte & Touche 2002 Technology Fast 50 in LA for the second year in a row. Also ranked in Top 100 for North America for the second year in a row. * Analyst coverage initiated by Pacific Growth Equities * Analyst coverage initiated by Ge
Slide 28: j2 Global
j2). Global
J2 Global Communications — Investor Presentation (October 2002) on 6ix