Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global — Investor Day (July 2013)
37 slides from Ziff Davis's investor day presentation, Jul 9, 2013
Slide 1: Ziff Davis Digital Media Day
‘ZIFF », DAVIS DIGITAL MEDIA DAY j2) Global
Slide 2: Safe Harbor for Forward-Looking Statements
SAFE HARBOR FOR FORWARD-LOOKING sith laills to numerous assumptions, risks and unce fould lly th isk Factors slid of this pl efs as of July 9, 2013 and we undertake no obligation to revise or public information or actual results. Such forward-looking statements address the following st ement’s expec
Slide 3: Risk Factors
RISK FACTORS The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: * The uncertain U.S. and worldwide economy and the related impact on online and offline consumer and advertiser spending.
Slide 4: Solution Overview
SOLUTION OVERVIEW j2) Global Directinward Dial (1D) sed Digital Publishing @Qe¥ax’ &) FuseMail’ “ campaigner Ei se25) » ZIFE 4 Whe 8 campaignercnw PG LOGICBUY Ss Simplex (« eVoice — pie geek.cor ( 5% Total Revenue ) BeTREMEJECH —., Osmartfax” || Conebox eeesccon @ fax [__ HiKeepitsafe | é
Slide 5: Investment Rationale Digital Media
INVESTMENT RATIONALE DIGITAL MEDIA j2 Core Competencies: © Financial Discipline ed 44 acquisitions; maximizing margit brands, with loyal customer base - rationalized marketing spend * Acquire established Attractive Space icals with proven management teams * Targets SOHO and SMB custom s business * S
Slide 6: Agenda
AGENDA *Rise of Digital Media *Background on Ziff Davis *Key Investment Highlights Questions & Answers i2) Dans Page
Slide 7: Shift from Print to Digital Media
SHIFT FROM PRINT TO DIGITAL MEDIA Feelin ee ie Ree eel le ela eee ~ | Average Time Spent per Day with Major Media by US Adulkts ines ! l Radio Mi Print MTV BOnlineg Mob ‘Print consumption has fallen i ' | 30% since 2009 | I ! one cece. I £ Online + mobile i 255 (combined) onpace to! \.. overtake TV
Slide 8: Digital Growth Coming at Print's Expense
DIGITAL GROWTH COMING AT PRINT’S EXPENSE t Material Upside for Digital Ad Spend vs. Digital Usage \ I % of Time Spent in Media vs. % of Advertising Spending, USA ! ' 2008 | 2012 1 1 ' ih 1 50% 1 50% a ans JI 1 40% ' 40% I 30% | 30% ; 1 I ee ee ' 20% ‘ : 10% I 10% ' 10% | 6% : i 1 Print Radio Mobile
Slide 9: Attractive Long-Term Digital Growth Trends
ATTRACTIVE LONG-TERM DIGITAL GROWTH TRENDS 2011 6 —— =
Slide 10: Attractive Long-Term Digital Growth Trends
ATTRACTIVE LONG-TERM DIGITAL GROWTH TRENDS == oo Number of Properties with 1 Million + Readers 1,977 Websites
Slide 11: Different Publishing Formulas
DIFFERENT PUBLISHING FORMULAS S -&- My RY 3) = ° Finite bundle Content sent to a printer Trucked to newsstands (magazine/newspaper) and homes » we > o* Text, images, videos, pols, Unlimited range of content Instantly available on PCs, liv shows tablets and smartphones 4 . a > Ry) * Rich content * In
Slide 12: Print Companies Being Disrupted
ala than di Newspaper print ad los: 5¢ Int 2 ‘Ss = Ss PRINT COMPANIES BEING |
Slide 13: About Ziff Davis
ABOUT ZIFF DAVIS | We area leading digital media company that produces and » curates content in three high-value verticals LOGICBUY~ NetShelter TECHNOLOGY : shear $s” EXTREMETE 3 GAMES & ENTERTAINMENT IGN bd MEN'S LIFESTYLE
Slide 14: Our Business Model
OUR BUSINESS MODEL In Market Audiences Content with Intent Multiple Rents Page
Slide 15: Positioning Highlights
POSITIONING HIGHLIGHTS @ Leading consumer brands in highly attractive online ad verticals @ High-quality content mapped to consumer buying experience 3 | 100% organic traffic: Exceptionally strong growth across all properties 4 | Significant online video viewership and content creation 5 | Substanti
Slide 16: Leading Consumer Brands: Tech
LEADING CONSUMER BRANDS IN HIGHLY ATTRACTIVE ONLINE AD VERTICALS: TECH Monthly Unique Visitors (000s) 1 diffDavis Tech 28,950 Reviews IT Pros Blogs Network 2 (NET 28,370 ae “Se et a Le ul *x” EEjtoolbox.com *s” EXTREME a4 NetShelter*, 3. TechMediaNetwork 21,601 a ms ry " \ — \ INSIDE- po ap \ 4 AdLT
Slide 17: Leading Consumer Brands: Games
LEADING CONSUMER BRANDS IN HIGHLY ATTRACTIVE ONLINE AD VERTICALS: GAMES Monthly Unique Visitors (000° a} 1. (GN Entertainment 12,355 2 GameSpot 12,156 3 Gamezone Group 10,886 4 Wikia Gaming 5 GameStop Media \ \ ina2 languages across 40 6 Microsoft Games 6,890 countries 7 Curse 6,660 Across Facebook,
Slide 18: Leading Consumer Brands: Men's Lifestyle
LEADING CONSUMER BRANDS IN HIGHLY ATTRACTIVE ONLINE AD VERTICALS: MEN’S LIFESTYLE Monthly Unique Visitors (000’s) 1 AskMen.com 3,844 2 Complex.com 3,008 3 MensHealth.com 2,965 Luxury, Autos, Fashion and 2 million <—~ Alcohol y 4 Esquire.com 2,340 t 1 1 1 ' 1 1 ' ' 1 1 ' ' 1 ' 5 GQ.com 1,761 l 1 1 1
Slide 19: High-Quality Content Mapped to Consumer Buying Experience
HIGH-QUALITY CONTENT MAPPED TO @ CONSUMER BUYING EXPERIENCE News Articles Site Search Buying Guides DISCOVER CHOOSE Comparison Guides ‘i I I I I l I Roundups PRODUCTS Reviews Wikis SERVICES Deals l I l I ( How-to Guides Click to Buy Troubleshooting Coupons
Slide 20: Quality Content Mapped to Consumer Buying Experience
QUALITY CONTENT MAPPED TO CONSUMER BUYING EXPERIENCE Best in class editorial staff | + 90editor/reporters cxal «345 freelancers + 12 photographers/designers * 37 video production “In market” content . 2,06¢ Ovid os per month + Product database of 246,00 + Article database of 760,000
Slide 21: 100% Organic Traffic: Exceptionally Strong Growth
100% ORGANIC TRAFFIC: EXCEPTIONALLY @) STRONG GROWTH ACROSS ALL PROPERTIES _ % of Visits All search traffic is _-\__ organic/free gor Ars. F os Ie a8 eed ' + Keysearchterms = \ are product- L--~. oriented -7 ae sella -*’Strong direct i traffic for ! vertical sites
Slide 22: 100% Organic Traffic: Exceptionally Strong Growth
100% ORGANIC TRAFFIC: EXCEPTIONALLY 22 STRONG GROWTH ACROSS ALL PROPERTIES: eee eee He He ae He ee ee ee ee eK KK Average Monthly Page Views (Tech Vertical) Bias * discovery of contentinall {---~~ -" ‘channels +77" 2° — Increased quantity and qualityofcontent 1 x a Sos, output : " Provenability Sy t
Slide 23: Traffic Growth Plan for IGN.com and AskMen.com
100% ORGANIC TRAFFIC: EXCEPTIONALLY oO STRONG GROWTH ACROSS ALL PROPERTIES Traffic growth plan for recently acquired IGN.com and AskMen.com / x a Improved SEO position /\ Newfeaturesand \ — Expanding editorial for high-volume terms ! \ design changes that | \ coverage mapped to \ AskMen.com redesign
Slide 24: Significant Online Video Viewership and Content Creation
SIGNIFICANT ONLINE VIDEO VIEWERSHIP AND CONTENT CREATION Stet ce De lel ee eel eee eee cell oe ol I Monthly Video Views ' Digital Video" Ad Spending, 2011-2017 (lillons and 1 ' 1 7 I I 1 310.0 ' l ' 0 l ; & I I 65,808,355 1 $0 I t | 67,583,292 ' 0 ! | 1 ' l I 1 §20 ' l l : $0.0 l I t ' I I i include
Slide 25: Substantial Tablet & Mobile Growth
SUBSTANTIAL TABLET & MOBILE @ GROWTH Page Views aril blet mi Sma attohane * Mobile traffichas doubled in 12 months * Smartphone and tablet traffic represents 23% of page views i t to o grow at 50% CAGR (2011-2016)
Slide 26: Data Management Platform Effectively Targets Ads
DATA MANAGEMENT PLATFORM EFFECTIVELY @ sibel ADS AND BOOSTS PERFORMANCE Page
Slide 27: Revenue Streams: Display Advertising
SCALABLE BUSINESS MODEL BUILT ON mollis @ REVENUE STREAMS: D DVERTISING O&O Sites Network Sites RTB Sites [4 IAB Display Standard Ad Units [4 Generally pricedona CPM basis
Slide 28: Revenue Streams: Video Advertising
SCALABLE BUSINESS ee BUILT ON MULTIPLE @ REVENUE STREAMS: VIDEO ADVERTISING IGN oes AskMen YouTube IGN YouTube => amt ees | Op Sie. ‘ ; El eexcesiias aye | — — cee | a — merae:| 2 FS TIGN 1§ [W\ Pre-Roll Advertising [W\ Generally priced ona CPM basis
Slide 29: Revenue Streams: Affiliate Marketing
SCALABLE BUSINESS MODEL BUILT ON MULTIPLE S REVENUE STREAMS: AFFILIATE MARKETING =e Sem | LocicBuy- =| ri Offer deals, discounts and free content to our audience a Marketers pay us CPC, CPA or CPL i2) Dans Page
Slide 30: Revenue Streams: Licensing
SCALABLE BUSINESS MODEL BUILT ON MULTIPLE a STREAMS: LICENSING ae (GIN aus | * Licensed local versions of PCMag and IGN.com + PCMag: China, Brazil, France, Russia, India, Greece, Belgium/Netherlands, Middle East + IGN: Germany, Denmark, Finland, Norway, Middle East, Asia Pacific, Benelux, Italy, Spa
Slide 31: Defensible Position with Sustainable Barriers to Entry
SITION WITH SUSTAINABLE ai e. a ” , % A ~N rs f een Tree dj Significant presence {#1 comScore position . on key social inall three verticals platforms including Facebook, Twitter, with total worldwide } reach of 117 million YouTube and He ‘e per month, d f - Firicie ability to serve a i if Taree “di
Slide 32: Best-in-Class Financial Profile and Operational Excellence
BEST-IN-CLASS FINANCIAL PROFILE AND OPERATIONAL EXCELLENCE LS a — a oe eS i x 7 Non-GAAP Revenue and EBITDA I 1g m | 2 o 1 = 4 Is aa 15 z I 1: | 1 ro FY2010 fY2011 A 24 ‘maiRevenu $314 a VL -aeeeitb4 $16 S71 $122 $06 I ee so 1 nce of ~$125M I { \ sof -$125M ! te SCALE idressable market I ! l ! 1 ! 1
Slide 33: Best-in-Class Financial Profile and Operational Excellence
BEST-IN-CLASS FINANCIAL PROFILE AND OPERATIONAL EXCELLENCE Name Title Experience Vivek Shah Steve Horowitz Andy Johns Joey Fortuna James Yaffe Steve Hicks Chief Executive Officer Chief Operating Officer Chief Financial Officer Chief Technology Officer Chief Strategy Officer General Counsel Ledprivat
Slide 34: Significant Multi-Layer Growth Opportunities
SIGNIFICANT MULTI-LAYER GROWTH OPPORTUNITIES a Mobile Advertising + Mobilead dollars flo & Video Advertising Traffic Growth in shift from TV SEO im International Expansion Ad Targeting Vertical Expansion alth, tr + Finan Ziff Davis has many attractive opportunities to grow via organic and inorganic
Slide 35: Appendix
APPENDIX
Slide 36: Ziff Davis GAAP Reconciliation
ZIFF DAVIS GAAP RECONCILIATION Full Year EBITDA ($ in thousands) EBITDA ( 2010 2011 2012 Net Income (Loss) ($919) $2,312 $631 Fixed charges $41 930 $128 Provision for income taxes $206 $821 $1,154 Depreciation and amortization and other non-cash items $752 $2,571 $6,184 Non-recurring (gains) losses
Slide 37: Ziff Davis GAAP Reconciliation
ZIFF DAVIS GAAP RECONCILIATION Q1 EBITDA ($ in thousands) EBITDA ( 112 113 Net income (loss) ($146) ($3,083) Interest and other expense, net $38 $1,419 Income tax expense (benefit) ($268) ($2,332) Depreciation and amortization $776 $3,152 Reconciliation of GAAP to Non-GAAP financial measures Share-b