FriendFinder Networks — Investor Presentation (September 2011)
25 slides from FriendFinder Networks's investor presentation, Sep 12, 2011
Slide 1: FriendFinder Networks September 2011
FriendFinder Networks” ee September 2011
Slide 2: Safe Harbor
Safe Harbor Certain statements made in this presentation regarding FriendFinder Networks Inc. and any other statements regarding FriendFinder Networks Inc's future expectations, beliefs, goals or prospects constitute forward-looking statements made within the meaning of Section 21E of the Securities
Slide 3: Key Company Highlights
Key Company Highlights We are a lea ing internet-based social networking and technology company operating several of the most heavily visited websites in the world nique Platform Large and Diverse User Base Attractive to New and Existing Users + Over 484 milion registrants ‘and aver 320 million memb
Slide 4: Revenue Platforms
Revenue Platforms We have developed 2 robust, highly scalable revenue platforms, and in September 2011 acquired a 3'4 (JigoCity), to enhance our user experience. Social Networking Live Interactive Video Provides users who register or purchase subscriptions to one or more of our websites with the abi
Slide 5: Chief Executive Officer
‘Chief Executive Officer rN ‘Over 20 years of westrent ‘nd operational expeionce ‘Mare Bal Capt Partners — ‘Managing Director," reset ‘oboe Cop ~ Chaiaran of the Boar, 900, 2CE0, ‘so-08 EDGAR Online Board of Directors "90°00 ‘Arron Residential REIT {W0VSE: ARR) — Board of Directory 08 preset B.S. do
Slide 6: Strategies to enhance revenue and improve profitability
Our goal is to enhance revenue opportunities while improving our profitability. We plan to achieve these goals using the following strategies: + Utiiae our superior affiiate network and matketing to drive trafic to new and exicting sites + Continually evaluate, add and enhance features on our websit
Slide 7: Company Overview
eg © 8 . “‘ by =, = % 4 FriendFinder Networks” $) eS 2 o ; > ) Company Overview ZA ra — —
Slide 8: Two business segments: Internet and Entertainment
We operate two unique business segments: Internet and Entertainment * Internet Business provides online social networking, live interactive video services, premium content, social gaming, advertising services and social commerce + Entertainment Business is our legacy operations that engage in broadc
Slide 9: Barriers to Entry
Barriers to Entry We believe our affiliate network is one of the largest in the world and is a substantial competitive advantage Over 280,000 affiliates participating + We derive approximately 46% of our revenue from our affiliate Affiliates drive traffic to our websites jiates derive revenue based
Slide 10: FriendFinder Websites
FriendFinder Websites Since our inception, over 484' million registrants have registered on our websites Social Networking? Live Interactive Video” AdatfrionaFnderies 248.274 | Fregentrenrindoteen 2,048 SCaMs.0n 2A Amigoscom 6,802 filininoFricndFimierca = 2,025 StripShowcom 671 Asiarionsfintotem” —
Slide 11: Revenue Breakdown by geography
ider Revenue Breakdown “age Despite accounting for only 27% of registrants, the US contributes over half of our total revenue, providing significant opportunity for revenue expansion in foreign markets United Kingdom France Germany tay Spain Switzerland Netherlands Norway Other EU TOTAL Rest of the
Slide 12: Recent Acquisitions
Recent Acquisitions We acquired Perfectmatch.com in July 2011 and JigoCity in September 2011 Social Networking perfectmatch.conr PerfectMatch.com is an online relationship service helping adults seeking successful _ lasting connections. It is the only online dating and relationship service to offer
Slide 13: How JigoCity Works
How JigoCity Works Each day JigoCity emails For an amazing deal to its Members and broadcasts Customers: it across the intemet (1) Retailers provide the deal For and JigoCity writers and Merchants: designers create an irresistible offer for its members JigoCity’s members purchase the deal online and
Slide 14: JigoCity locations and offices
Los Angeles Shanghai + Global Headquarters in Los Angeles and regional Asia office in Shanghai + Currently live in 6 countries, serving 22 cities + Additional satelite offices in South Korea and Brazil + Plan to be live in 10 to 15 countries by end of 2012 Australia papas Hangzhou Sydney Taipei Hong
Slide 15: JigoCity Users by Country
JigoCity Users by Country Total Users ~ 1,004,561* Hong Kong 86, My, aw, 24875 13517 121,002, 5409, suger 1318 Total Users *Total Userbase as of 942011 endfines Neher
Slide 16: JigoCity Performance & Short Term Goals
JigoCity — Peformance & Short Term Goals JigoCity will continue to leverage FFN’s large member base and web traffic and continue to grow revenue Integrate Revenue By Month $1,400 * Integrate JgoCiy's departmental platforms wih FEN (7, Marketing, $1,200 Treasury) + Develop glabal bes practices on $1,
Slide 17: Company Financials
~ = ‘i FriendFinder Networks” & 7 % “SS ) Company Financials a — a
Slide 18: Capital Structure Overview
Capital Structure Overview Standard and Poor’s B rated for FFN Corporate and First Lien October 2010. Successfully completed a refinancing of the capital structure, simplifying into three tranches of debt + May 2011: Repaid $9.8 million of ts New First Lien and Cash Pay Second Lien pro rata under th
Slide 19: Financial Highlights
Financial Highlights Substantial margin expansion, growing from 23% to 30+% $933 376 3 $328 $102 $346 $105 $167 i. 2007 2008 2008 2010 mRevenue mAdjusted EBITDA + Acquired Various» New management © Eliminated $22mm of Increased afiiate and 4H2011 + Increased margine Inc. December developed analytica
Slide 20: Operating Results
Operating Results FFN average lifetime net revenue per subscriber increased 10.6% and 17.0% for the quarter and six months ended June 30, 2011 respectively ID 2011 vs. YTD 2010, % mow 2011 Change _tngrovement Seca Networking Mg Listine Net Revenue Per Sibsrker() 7203228 17.0% CPGA () 5208 43.65 (8.4
Slide 21: Improvement in Churn and Average Lifetime Net Revenue per Subscriber
Results show an overall improvement in Churn and Average Lifetime Net Revenue per Subscriber 1.02 83.8784.03 7368 7945 7422 7473 6670} 5892 3723 2007Pr> 2008 2009 mo H011 20072 2008 2009 mio aH2011 Forma Forma 1m General Audience Social Networking Websites 1m General Audience Social Networking Websi
Slide 22: Operating Results
Operating Results We had a strong second quarter, highlighted by debt reduction and a 14% increase in Adjusted EBITDA + Raised $50 million in gross proceeds from our Initial Public Offering + Repaid $73 million in outstanding debt since December 31, 2010 (Sm) 2010 YoY Net revenue 985 $03 (9%) + Net
Slide 23: One-time Items & Accounting Adjustments
One-time Items & Accounting Adjustments If we repeated 2Q performance without one-time adjustments we would experience EPS growth in 2012 and 2013 + 202011 included $15 million in one-time, non-recurring charges $5 milion in Broadstream litigation settlement $57 milion oss on extinguishment of debt
Slide 24: Pro Forma Free Cash Flow Analysis
Pro Forma Free Cash Flow Analysis We generate a substantial amount of cash available to service future debt payments Pro Forma LTM Free Cash Flow ($mm sus (ss) — Le pC rrrnereny 1 ey 1 sn ! i t " ' ! i ! i 1 i i ‘ : i H ! t t : ! H ‘ ' | L 1 = Aduseatreeroa rm caes Cohierea-PF Ch ieret- PF cashPar |
Slide 25: Compelling Valuation
Compelling Valuation With over $100 million in annual EBITDA, we believe FFN represents an attractive risk vs. reward proposition + Low Enterprise Value/EBITDA multiple Low annual capital expenditures + Low Price/Sales multiple + Last twelve month figures as of June 30, 2011 EBITDA COMP TABLE she ae
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