Idt Corporation · NYSE:IDT
Idt — CL King's 12th Annual Best Ideas Conference (September 2014)
27 slides from Idt's conference presentation, Sep 9, 2014
Slide 1: IDT Corporation – CL King's 12th Annual Best Ideas Conference
~ IDT Corporation Im CL King's 12" Annual Best Ideas Conference September 9, 2014 New York City
Slide 2: Forward-Looking Statements
or Statement This presentation contains forward-looking statements. Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Examples
Slide 3: IDT Telecom, Zedge, Fabrix Systems
IDT Telecom * Communication and payment services targeted to foreign- born, under-banked consumers ¢ Wholesale carries international calls for telecoms globally Zedge Websites and apps for mobile games and other = =" free content including ringtones and wallpapers. ZEDGE Top 20 app on Google Play Fa
Slide 4: IDT Quick Overview
IDT QUICK OVERVIEW Industries Telecom; Transaction Senices Stock Price’ Market a $372 MM Adjusted EBITDA (TTM)? $44.6 MM Cash Provided B pering Activities a $41.7 MM Annual Dividend Fiscal Year End * Closing price on September 5, 2014 ?TTM- Twelve months ended April 30, 2014 5 Fully diluted $0.68 Ju
Slide 5: Investment highlights: Boss Revolution, non-core upside, dividend yield
Boss Revolution - Continuing Growth in Core Business ° Voice traffic driving revenue growth * Diversification into synergistic payment and non-voice communication services Upside Potential from Non-Core Businesses * Majority stakes in rapid growth enterprise video storage software and social media b
Slide 6: Evolution at IDT Telecom
nation at IDT Telecom From Prepaid Calling Cards.... to Boss Revolution * Leveraging mobile to consumer * Electronic distribution to retail network * Multiple services, single brand * Unified platform * Pricing transparency
Slide 7: Retail / Boss Revolution Has Replaced Traditional Calling Cards
‘etail / Boss Revolution i Boss Revolution Has Replaced Traditional Calling Cards ®= Traditional Calling Cards Revenue ™ Boss Revolution Revenue 140 120 100 80 60 40 20 - r) Q114 Q211 Q311 QS14 QI12 Q212 Q312 Q412 QI13 Q213 A313 A413 QI14 A214 A314 USD in Milions U.S. Domestic Revenues 7
Slide 8: Boss Revolution Value Proposition
etail IDT. Boss Revolution Value Prop Consumers Convenient PIN-less dialing Mobile access through app ler Cash based Stickiness No service charges - no breakage No inventory Reloadable No shelf space One platform — multiple products Lifetime commission One platform -- multiple products Identifiable
Slide 9: Platform for Communication and Payment Services
etail / Boss Revolution Platform for Communication and Payment Services * Voice continues to grow. Generated ~$700MM in annual revenue TTM BOSS! ° Synergistic payment services: REVOLUTION . rae peers O International and domestic air-time top-up O International money transfer o Domestic bill payment
Slide 10: Robust Market Penetration
etail / Boss Revolution Robust Market Penetration Customers by Calling Destination as a Percent of Foreign Born Population in US Guatemala Honduras Ghana Kenya Dominican Republic Nigeria Haiti Costa Rica Nicaragua Sudan El Salvador Bahamas Spain Sierra Leone Yemen 10% 20% 30% 40% 50% 44% 42% 39% 32%
Slide 11: Synergistic payment services: International Money Transfer
Synergistic payment services include: International Money Transfer BOSS * Market opportunity: Annual remittances from US total ~ $50 REVOLUTION: billion. Over half of foreign-born Hispanics in US routinely remit. NSONEY TANOEE [ MONEY TRANSFER ] EVERY.TIME | * Licensed / enabled in 46 states, D.C.,
Slide 12: International Money Transfer: Rapid Start Suggests Significant Potential
International Money Transfer Rapid Start Suggests Significant Potential 250 200 150 50 13-Sep 13-Oct 13Nov 13-Dec 14Jan 14Feb 14Mar 14-Apr 14May 14Jun 14-Jul mmm Transactions —™—Agents 12
Slide 13: Wholesale Termination
olesale Termination Leverages Retail Traffic in Wholesale Market FIGURES Traffic Volumes of Top Carriers, 2007-2012 * Terminates international long distance calls on behalf of other telecom providers cy ¢ Retail minutes create reciprocal “buy and sell” —‘elecom ala Douteohe Telekom verizon ‘o1al Tac
Slide 14: Wholesale results (USD in millions)
USD in ations Pcrcssrront | 460 70 420 280 40 300 260 on 212 312 rrr) ane ore er 64 61 58 55 52 49 on cara Cory an ans o2is cats ata ans cata asta 52 18 51 50 49 48 47 46 45 44 6 a2 a2t2 312 asta ais a2i3 a3i3 asi a2t4 ast4 14
Slide 15: Asset Monetization
sset Monetization IDT has consistently incubated and monetized high potential, non-core businesses: + Net2Phone (formerly NTOP on NASDAQ): AT&T invested $1.1 billion for a 32% share in 2000. IDT subsequently repurchased; * Corbina Telecom, IDT’s Russian telecom business: Sold for $130 million in 200
Slide 16: Zedge Personalization App
ng Personalization App 110MM Installs Powerful Distribution Platform 50MM Active Installs . na 20MM Monthly Active Users * Scalable and non-incentivized ¥ * Personalized curation Broad Reach *iOS / Android / Windows Phone * Advertisers / Publishers Assets * High quality user base - strong 20 growth,
Slide 17: Zedge: Stable, sustainable growth
IDT. Stable, sustainable growth spanning close to 5 years *Surpassed 110MM installs since launching the app in November ’09 *More than 200K new users per day with less than 100K uninstalls per day *Growth is organic and viral Mass market appeal *Offer high quality, simplicity, fun and variety *Top 2
Slide 18: Fabrix Proprietary Video Software Platform
IDT. Proprietary Video Software Platform * Superior technical solution for video applications o Deep video storage o Unicast television applications including: Cloud DVR Video on demand ct FABRIX Multi-screen delivery a Dl rae Video storage S Y S T EM 8 Time/place shifting * Current deployments / cu
Slide 19: Dividend Growth
Dividend Growth IDT Dividend History * FY 2012: $0.58 * FY 2013: $0.60 regular dividends and $0.08 special dividend + FY 2014: $0.17 for each of the first three quarters Dividend Payout Ratio Dividends and Free Cash Flow (USD in millions) $45 40.1% so | 63.4% oo 56.3% ree cam row m Aggregate Dividen
Slide 20: Current Financials
is urrent Financials IDT. : 20
Slide 21: Profit & Loss
Profit & Loss USD in milions Revenue Direct cost of revenue Gross Profit Gross Margin % TDA Income from Operations EPS (fully diluted) 04 2013 $ s 4121 344.7 O74 16.4% 575 14.0% 97 14 (0.16) Q1.2014 $ $ 420.7 350.3 70.4 16.7% 60.1 14.3% 103 73 0.15 Q22014 $ $ 406.4 335.2 712 175% 59.9 147% 113 76 O1
Slide 22: Reconciliation of Non-GAAP Financial Measures
econciliation Reconciliation of Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT’s investor presentation also included Adjusted EBITDA, Gross Profit, and
Slide 23: Reconciliation (continued)
econciliation (Continued from prior page! Other operating gains (losses), net, which are components of income (loss) from operations, are excluded from the calculation of Adjusted EBITDA. Although the Company has insurance claims and settlements of claims from time-to-time, and has a number of matte
Slide 24: Reconciling Adjusted EBITDA to Income from Operations (TTM)
econciliation Reconciling Adjusted EBITDA to Income from Operations (TTM) p4 Adjusted EBITDA TTM Adjusted EBITDA __Q4 2013 Qi 2014 Q22014 Q3 2014 TIM Income from Operations 1,365,869 7,283,862 ‘7,573,280 9,179,049 _—_-25,402,069 D&A 3,937,541 3,895,824 4059457 4,153,173 16,045,995 Impairment 4,359,0
Slide 25: Reconciling Gross Profit to Income from Operations
IDT. econciliation Reconciling Gross Profit to Income from Operations Grows Prof Chart pT Gros Prat SGA Rep DEA Ienpeiasat (Other gains loses Inconte from Operations 122 g2202 _gs2m2__qi2m2 1201392213323 __ ims gr __gz204__ gs 204 BAIA SsO65ait SO TSIIG ASAI 6186557 WS 772281 6743825 TUSSOSHT 7i.t64
Slide 26: Reconciling Free Cash Flow to Operating Cash Flow
econciliation Reconciling Free Cash Flow to Operating Cash Flow (Glide #19) 9 Months Free Cash Flow Fy2012__FY2013___Qa2013_ i204 220143 2014 ysozo14 TrM Operating cash flow 34,523,000 57,196,000 12,098,140 10,992,755 (1,863,322) 20,507,788 29,637,221 41,735,361 ‘Minus Capex (10,830,000) (14,537,000
Slide 27: Thank you
Thank you IDT Investor Relations 520 Broad Street Newark, NJ 07102 invest@idt.net a
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