Slide 1: Investor Presentation (Based upon First Quarter 2004 results)
Global Communications www.j2global.com ® Investor Presentation (Based upon First Quarter 2004 results) April 19, 2004
Slide 2: Safe Harbor for Forward-Looking Statements
j2),Global Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forwarcHlooking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the side entitled “2004 Financial Guidance”. These forwarc
Slide 3: Risk Factors
j2),Global Risk Factors ‘The following factors, among others, could cause our business, prospects, financial condition, cperating results and cash flaws to be materially adversely affected ‘+ Inability to sustain growth in our customer base, reverie or profitability + Competition in price, quality,
Slide 4: j2 Global deploys the power of the Internet
j2),Global j2 Global deploys the power of the Internet to deliver business critical communication and messaging services to individuals and corporations throughout the world. 4 42), clos communications ne
Slide 5: j2 Global brands and services
j2),Global j2 7 cl rect . @ijfax.com AeFax Orporate com deus OeFax iBlast 7 A re
Slide 6: Unique Assets
j2),Global Unique Assets 6.3 million subscribed telephone numbers (DIDs) Global advanced messaging network * 1,300+ cities in 20 countries on 5 continents + 8,6MM+ unique DIDs worldwide in inventory Patented technology + 7 issued U.S. Patents, with 9 Patents pending Expertise + Telecom, messaging, e
Slide 7: Subscriber Profile
j2),Global Subscriber Profile Vertical Markets Real estate + Law firms & corporate legal departments * Financial institutions + Hospitality * Medical . ° ° Government Remote workers & “road warriors” Value Proposition Digitization (paper reduction) Security Privacy Efficiency Cost Infrastructure rep
Slide 8: Subscriber Acquisition
j2),Global Subscriber Acquisition Individuals + Targeted Web marketing (e.g. AOL, Monster.com, Google, etc.) + Sold through: www.eFax.com and www.j2.com + Use of proprietary Life Cycle Management (i.e. Free > Paid conversions) + Advertising revenue supports the Free base Small to -Sized Businesses +
Slide 9: Active Telephone Numbers (DIDs) & ARPU
j2),Global Active Telephone Numbers (DIDs) & ARPU 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 fo) Lad Qu 03 Q203 303 Q4'03 Qu'o4 [a PAID DIDs 304,969 348,988 380,230 400,245, 434,616 Cancel Rate 36% 3.0% 28% 3.3% 29% lm FREE DIDs 4,320,975) 4,825,991 5,146,838 5,150,388 5,8
Slide 10: Total Revenues
j2),Global Total Revenues Non-DID based ($M) $1,239 1,219 1,12 «1,28 ©1146 14,202, 14241257 1,278 % ofTotalRevenues 119% 30.8% 9.0% 9% 7.5% 7.1% 7.9% 6.1% 5.6% % Growth “1.6% -7.6% 11.5% -88% 4.9% 18.5% -117% 1.7% TT Growth 39% 8.7% Core Total Revenue focus > DID based revenue Fa 52), cata conmuicto
Slide 11: Variable Subscriber Revenues
j2),Global Variable ($M) $2975 3,228 3,667 3,862 4,538 5,130 5685 5,042 641 % of Subs.Revenues 31. Pe Me DA% «4% «US UM BW 27.4% % Growth 8.5% 13.6% 53% 17.5% 13.0% 10.8% -2.5% 9.0% TT Growth 52.2% 46.4% Core Subscriber Revenue focus > Fixed revenue un §2). cote commuicatons
Slide 12: Global Network Presence
j2),Global Global Network Presence j2 Global Network }. es, Asia/Pacific The Americas” Europe * 1,300+ cities in 20 countries on 5 continents * Continuing to expand into new international locations 2 52), cinta communications. ne
Slide 13: Product Roadmap
Product Roadmap Unified Messaging & Comm, Services Document Management Voice Services Email Services + Inbound Fax to Emal_ + ProtoFax® + Inbound VM ta Emal + Permission-hased + Integrated Emal, + Outbound Fax via Email * Messenger 30 + Voicemall management Email marketing voicemail & fax services +
Slide 14: Financial Highlights
j2),Global Financial Highlights 4 52), cata conmuicton ne
Slide 15: Revenue Growth
| Revenue Growth ‘orica Hist 28 consecutive quarters of revenue growth $24.0 (suot) 2) wan canminsanncine
Slide 16: Quarterly Revenues
j2),Global Quarterly Revenues 2003 2004 Qi Q2 Q3 Q4 Qi Subscriber #14454 $16,307 $17,806 $19,517 $22,062 Quarter-to-Quarter Growth 11,6% 12.8% 9.2% 9.6% 13.0% Advertising 612 609 681 206 761 Quarter-to-Quarter Growth -14.4% -0.6%. 11.9% 18.4% 5.6% Licensing and Other 142 121 416 151 119 Total Revenu
Slide 17: Cost Trends
v (Percentage of Total Revenue) 90% 8000 70% 60% 50% 40% 30% 20% 10% 0% Cost Trends 80,200 80.9% 815% 82.6%, Gross Margin Sqpap 41.4% 34.2% —— Operating Margin G8A a ———————— Sales & Marketing 16.5% Engineering A0% Ql ‘03 Q2 03 Q3 03 Q4 03 Qi ‘04 2) wan canminsanncine
Slide 18: Earnings & Free Cash Flow
j2),Global Earnings & Free Cash Flow qo2 gos sess gt oF (1 reludes a one-tne recovery ofa marketing payment of $834,000. (Gl Excludes benefit of $9.5 millon to recerd the reversal of certain valuation allowances of aur deferred tax assets, | Net cath provided by cperating activites, lass purchases o
Slide 19: 2004 Financial Guidance
j2),Global 2004 Financial Guidance Q2 Year-End 2004 2004 Revenue (millions) $25.0 — $25.4 $100 - $105 Earnings Before Taxes per $0.42 - $0.44 $1.65 - $1.75 Fully-Diluted Share (1) Assumes an effective 37% tax rate and fully-diiuted shares of 25,584,624 as of April 15, 2004 (2) Assumed a tax rate of
Slide 20: Recent Events
20 Recent Events Completed the asset purchase of The Electric Mail Company — a provider of outsourced email and messaging services Introduced “Free” service in Canada through a marketing arrangement with AOL-Canada Integrated Optical Character Recognition (OCR) into the Messenger Plus application Fi
Slide 21: j2 Global
j2) Global
Slide 22: Appendix
j2),Global Appendix 2 52), cota co
Slide 23: Active Telephone Numbers (DIDs)
j2),Global Active Telephone Nambern (DIDs) 450,000 q 400,000 g & 350,000 H 300,000 = 250,000 £ 200,000 B 150,000 3 100,000 = 50,000 oll qt asvams | a2 6/0/2003 | gs ¥av2ms | QF 12/31/2003] Qt av 204 [aCorporate aaa EC Gra Eon "ma veb Paid Dame, 233108 Ee ET Seu ToraL PAD OW: | 304569 8 98 30230) 002
Slide 24: Web Channel
j2),Global Web Channel io) Q1 03 Q2 03 Q3 03 403 Q1'04 Web Revenues ($M) $ 10,761 $ 11973 $ 13074 $ 14902 $ 16,859 Number of Deployed FREEDIDs = 43MM 48MM 5S.1MM 5.2 IM Number of Deployed PAID DIDs 256,242 293,104 316,949 331,321 358,214 Net DID Additions 29,379 © 36,862 «23845 14,372 (26,893 ARPU {
Slide 25: Corporate Channel
j2),Global Corporate Channel Qi'03_Q203_—g3 03 ~— 403 04 Corporate Revenues ($M) $4,506 443 45,413 95,420 «45,964 Number of Deployed DIDS 48,727. -55,684 63,281. «68,924. 76,402 Net DID Additions 5,396 7,157 7,397 5,643 7,478 Number of Accounts 1,454 1,977 2,157 2,240 2,518 Page Index? 158.7 176.3 1