Slide 1: IDT Corporation Investor Presentation April 2015
=e IDT Corporation I Investor Presentation April 2015
Slide 2: Forward-Looking Statement
Statement All statements in this presentation that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning
Slide 3: IDT Corporation
IDT Corporation Industries Telecom; Transaction Services Stock Price’ $17.91 $420 MM $1.8MM Adjusted EBITDA a $42.2 MM Cash Provided z se Activities (TTM)* $57.5 MM Senay dividend $0.18 Fiscal Year End July 31st * Closing price on April 14, 2015 As of January 31,2015. Additionally, IDT reported $28.
Slide 4: IDT Telecom and Zedge
IDT Telecom * Retail communication and payment services targeted to immigrant communities and under-banked consumers primarily via flagship Boss Revolution brand * Wholesale termination of international long distance calls for telecoms globally ZEDGE’ * Leading platform for mobile phone personalizat
Slide 5: Shareholder Value
Shareholder Value Five Year Record of Value Creation for IDT Shareholders: 2010 - 2014 IDT Class C common stock share price at January 1, 2010 $4.85 IDT Class B common stock share price currently $20.31 IDT common stock dividends paid (2010-2014) $3.70 One share of Genie Energy Class B common stock
Slide 6: IDT Telecom
IDT Telecom * Retail communications growth led by Boss Revolution voice service targeted to underserved foreign born and first generation immigrants * Diversification into international money transfer and other synergistic payment and non-voice communication services Upside Potential from Zedge ° 69
Slide 7: IDT Telecom Revenue - (TPS Segment)
IDT Telecom Revenue - (TPS Segment) By Business Vertical $10 Millions of USD Three months ended January31, 2015 m Retail Communications m Wholesale Termination Services m Payment Services m Hosted Platform Solutions
Slide 8: From Prepaid Calling Cards to Boss Revolution
From Prepaid Calling Cards.... to Boss Revolution * Leveraging mobile * Electronic distribution to retail network * Multiple services, single brand * Unified platform ¢ Pricing transparency
Slide 9: Convenient PIN-less dialing
Convenient PIN-less dialing One-touch dialing through the app Retailers Cash based Stickiness No service charges - no breakage _No investment of working capital as One platform— multiple products | Lifetime commission Identifiable customer base Stickiness One platform — multiple products Single bran
Slide 10: Boss Revolution Has Replaced Traditional Calling Cards
Boss Revolution Has Replaced Traditional Calling Cards (US. revenue) Traditional Calling Card Revenue _ Mi Boss Revolution Voice Revenue 10
Slide 11: Boss Revolution
oss Revolution Platform for Communication and Payment Services * Voice continues to grow. Retail Communications revenue increased 6.8% year over year to $718 million* * Synergistic payment services: o International and domestic air-time top-up o International money transfer © Domestic bill payment O
Slide 12: Retail / Boss Revolution
etail / Boss Revolution Robust Foreign Born Penetration® Guatemala | Honduras Ghana Kenya Dominican... Nigeria Haiti Costa Rica Nicaragua Sudan EI Salvador Bahamas Spain Sierra Leone Yemen 44% 42% 39% 32% 30% 28% 23% 22% 18% 17% 16% 16% 16% 16% 15% July 2014 * Boss Revolution PIN-less customers as p
Slide 13: Wholesale Termination
olesale Termination Leverages Retail Traffic in Wholesale Market * Carries international long distance calls on behalf of PIGURE 5 Traffic Volumes of Top Carriers, 2013, other telecom providers * Retail minutes create reciprocal “buy and sell” opportunities * IDT Telecom is a top ten carrier globall
Slide 14: Payment Services
ment Services Synergistic payment services include: International Money Transfer BOSS ¢ Market opportunity: Annual remittances from US total ~ $50 i billion. Over half of foreign-born Hispanics in US routinely remit. REVOLUTION MONEY TRANSFER ¢ Began gradual roll-out in 2013 YOU SEND|MO} i Now offer
Slide 15: International Money Transfer
International Money Transfer Early Results Suggest Market Potential and Demonstrate Scalable Operating Infrastructure mmmmTransactions +—®—U.S. Agents ‘Transactions 50,000 45,000 + 40,000 + 35,000 30,000 ~ 25,000 20,000 + 15,000 10,000 5,000 *Reflects seasonal promotions
Slide 16: Other Early Stage Initiatives
ver Early Stage Initiatives ¢ IP-PBX solutions N et2 Phone’ - Net2Phone SIP Trunking - Provides international voice channels for enterprise VoIP systems and IP-PBXs ° Offi GC e - Net2Phone Office - Hosted PBX service for SMEs White label apps - Leverages IDT infrastructure and Boss Revolution platfo
Slide 17: Zedge: A Global Leader in Device Customization
NI iN Zedge: A Global Leader in Device Customization IDT. 00g jlable o itunes Zedge is a leading platform for device customization Enables users to change their mobile phone’s ringtones, wallpapers, notification sounds and app icons utilizing curated library of free, high quality mobile device custo
Slide 18: Zedge: Stable, sustained growth
Stable, sustained growth for over 5 years * Surpassed 140MM app installs since launch * More than 200K new users (gross) per day * Growth is organic and viral Mass market appeal * Offers high quality, simplicity, fun and variety * Top 30 most popular apps in Google Play (US) for more than 5 years ~7
Slide 19: Current Financials: Balance Sheet
rrent Financials Assets ‘Cash and marketable securities Restricted cash and cash equivalents Trade account receivable, net Receivable from ale of interest in Fabs Systems Li. Prepaid expenses Defened income tx, net short tem. (Other current assets ‘Total curent astets Plant, property and equipment 8
Slide 20: IDT Current Financials
[DT Current Financials Profit & Loss (USD in millions) 3014 4014 1015 2015 TIM* Revenue 403.8 420.7 4129 394.2 1631.5 Direct Cost of Revenue 332.4 349.3 343.8 328.7 1354.2 Gross Profit 714 714 69.1 65.4 277.3 Gross Margin % 17.7% 17.0% 16.7% 16.6% 17.0% SG&A 55.5 58.3 57.0 57.4 228.3 SG&A % 13.8% 13
Slide 21: IDT Financials ex Fabrix
[DT Financials ex Fabrix Profit & Loss Exclusive of Fabrix (USD in millions) 3014 4014 1015 2015 TIM* Revenue 399.3 414.8 408.7 394.2 1617.0 Direct Cost of Revenue 331.7 348.3 342.9 328.7 1351.6 Gross Profit 67.6 66.5 65.8 65.4 265.3 Gross Margin % 16.9% 16.0% 161% 16.6% 16.4% SG&A 54.6 56.9 56.4 57
Slide 22: Non-GAAP measures disclosure
In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDI’s investor presentation also includes Adjusted EBITDA, Gross Profit and Profit & Loss exclusive of Fabrix Systems, Ltd. and sale of
Slide 23: Non-GAAP measures explanation
While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non- cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. ID1’s operating results exclusive of depreciation and amortiz
Slide 24: Reconciling Adjusted EBITDA to Income from Operations
Reconciling Adjusted EBITDA to Income from Operations Consolidated Adjusted EBITDA Glides #3 and #19) 3014 aqua 1915 2015 rTM" Adjusted EBITDA 13,323,222 10,396,113 1015890 8012490 42,178,015 D&A 4,153,173 4,209,346 4A05,162 4,439,751 17,207,432 Severance f 351,123 1,399,456 Other (gains) losses . 3
Slide 25: Reconciling Profit and Loss exclusive of Fabrix
Reconciling Profit and Loss exclusive of Fabrix Systems Ltd., and Sale of Interest in Fabrix Systems Ltd., to Consolidated Profit and Loss aq sub 1015 ExFabrix Fabrix GAAP ExFabrix — Fabrix GAAP ExFabrix —Fabriy GAAP Revenue 399,285,068 4476483 403,761511 «414,797388 S888,741 420,686,129 «408708687
Slide 26: Thank you
Thank you IDT Investor Relations 520 Broad Street Newark, NJ 07102 invest@idt.net 26