Slide 1: j2 Global Investors Presentation (Based on Second Quarter 2013 Results)
j2 Global inform. Connect. Empower. 5 In vestors Presenta tion (Based on Second Quarter 2013 Results) August 7, 2013 @eFax’ <eVoice &XFuseMail’ “campaigner WiKeepitSafe’ Wonebox BISeE
Slide 2: Safe Harbor for Forward-Looking Statements
(i2)) Safe Harbor for Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1996, particularly those regarding our 2013 Financial Guidance. Such forward- looking statements are subject
Slide 3: Risk Factors
( i2)) Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: * Inability to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy an
Slide 4: Financial Highlights
(j2)) Financial Highlights j2) | Gefax <evoice EruseMait campaigner WKeepltSafe’ Wonebox ZIZEE
Slide 5: CLOUD: Q2 2013 Results (Non-GAAP)
j2) CLOUD: Q2 2013 Results (Non-GAAP) Q2 2013 $ Margin Revenues $108.8M Gross Profit/Margin $91.0M 83.7% Operating Profit/Margin © $55.6M 51.2% EBITDA ® $61.7M 56.7% (1) Hon:GAAP Operating Profit excludes $2.3M share based compensation and associated payroll taxes. (2) See slide 26 or adefhition of
Slide 6: MEDIA: Q2 2013 Results (Non-GAAP)
MEDIA: Q2 2013 Results (Non-GAAP) Q2 2013 $ Margin Revenues $31.2M Gross Profit/Margin $26.6M 85.0% Operating Profit/Margin 2) $1.3M 4.1% EBITDA ® $4.7M 15.0% a @ a Non-GAAP Revenues excludes approximately $1.3M of revenues associated with actiuiies of IGN Entertainment, Ine. exited during 02.2013 a
Slide 7: Consolidated: EBITDA to Non-GAAP Net Income Reconciliation
Consolidated: EBITDA to Non-GAAP Net Income Reconciliation _ Q2 2013 Non-GAAP Revenue - Cloud Subscription $93.8M Revenue - Licensing $15.0M Revenue - Media §31.2M Total Non-GAAP REVENUE $140.0M EBITDA - Cloud $61.7M EBITDA~ Media = Total EBITDA ® $66.4M Less: Depreciation & amortization $9.5M Less:
Slide 8: Business Cloud Services
( j2)) Business Cloud Services j2) | Gefax <evoice EruseMait campaigner WKeepltSafe’ Wonebox ZIZEE
Slide 9: j2 eFax Corporate
j2 @QeFax (Corporate + Key Stats: + Target High Valued Customers: + YTD Revenue +9% vs. prior year + High touch = stable, long-term relationships + ~625k DIDs, +8% vs. prior year + Focus on medium & large organizations + ~500 new accounts in Q2, +35% vs. prior year + High ARPA (>$500/month) & low ch
Slide 10: Cancel Rate
2) Cancel Rate ° All-time record low 2.21% * Down 33% since comparable period in 2009 Cancel Rate") 3.5% 33% 3.0% if = 2009 som =2010 2.8% 26% = 2011 25% 22012 sis 22013 2.3% 2.0% aa (1) Cancel Rate is defined as cancels related to individual customer DIDs with greater than 4 months of continuous se
Slide 11: Online Backup - KeepItSafe
i2)) oniinesacup —- ( Keep! tSafe’ * Online Backup / KeepitSafe® ° Revenue up ~52% vs. Q1 2013 and ~128% vs. Q2 2012 * @2 2013 annualized run rate up ~150% vs. run rate at Q2 2012 * Completed Backup Connect integration (NL-based, acquired April 2013) * Launched 24/7 localized customer and sales supp
Slide 12: Digital Media
(j2)) Digital Media 12 j2) | Gefax <evoice EruseMait campaigner WKeepltSafe’ Wonebox ZIZEE
Slide 13: Reviews
Reviews Lab-based reviews & buying guides of all consumer electronics IT Pros QA Sites for IT developers & managers Blogs News & opinion on latest gadgets Network Smali/medium sized publishers that rely on ZD for monetization Ranked #1 above CNET in Monthly Unique Visitors Leading in All Verticals a
Slide 14: Significant Multi-Layer Growth Opportunities
f j2)) Significant Multi-Layer Growth Opportunities + Ziff Davis has many attractive opportu grow via organic and inorganic Mobile Advertising = Fastest growing traffic set + Mobile ad dollars flowing Video Advertising * Participate in shift from TV to online video Traffic Growth “+ SEO improvements
Slide 15: Defensible Position - Barriers to Entry
f j2)) Defensible Position — Barriers to Entry - —— earn yo >. - ~~ ca \ a. a Established 4 4 Significant 7 | #1 0r#2. ComScore ' brands 1 { presence on key } | position in all three 1 oo 1 f social platforms j 1 Verticals with total \ consumer and ! 1 including Facebook, j 1 worldwide reach of \ ad
Slide 16: Media Highlights Ziff Davis
3 Media Highlights ZIFF 2) - » DAVIS Acquired NetShelter in May 2013: °Ziff Davis is now the #1 property in technology with 29MM unique visitors *NetShelter community includes over 150 consumer and business tech sites dedicated to consumer electronics, computing and mobile communication *Combined si
Slide 17: 2013 Financial Outlook
( i2)) 2013 Financial Outlook j2) | Gefax <evoice EruseMait campaigner WKeepltSafe’ Wonebox ZIZEE
Slide 18: 2013 Guidance: Reaffirming
(j2) 2013 Guidance: Reaffirming ~ Revenues $510M - $535M Non-GAAP EPS (1) $2.78 - $2.98 (Non-GAAP earnings per diluted share excludes share-based compensation and related payroll taxes, acquisition related integration costs, in each case net of tax. It is anticipated that the normalized tax rate for
Slide 19: Quarterly Dividend
Quarterly Dividend * Record Date — August 19" * Payment Date —- September 3 Payment Amount: © $0.2475 per Share ° ~ $11M of Cash Designed Not to impact Operational or M&A Activities j2) | Gefax <evoice EruseMait campaigner WKeepltSafe’ Wonebox ZIZEE 19
Slide 20: Supplemental Information
( i2) Supplemental Information @kFax’ Voice &)FuseMail’ “campaigner WKeepltSafe’ Wonebox BZKE 20
Slide 21: Financial & Other Metrics - Cloud
( j2)) Financial & Other Metrics - Cloud 2 Cloud em a TA oe @ a o @ @ a a @ Total an Revenss a Ajstment fo wm ee ef 8 eo Totalton GAPRevenes ions em __ em as pe pee ges gee Fuel SubsaberRverae? a To Variable Subsorber Revemes iss0 oe Sas? AR ggasi sa SubciberRevenees, win eas sem is as anon as po ae
Slide 22: Financial & Other Metrics - Media & Consolidated
Financial & Other Metrics — Media & Consolidated 2 Media zou m2 2013 _ wr e a co ow @ e a ae Web Wate $ vis = 6 0 a 2 2% co 2 oe on 58 Pageviews & 15300 htt a ee ne) 129 1897 j2Consobdated mir wie as wr e e ca wr e = co ae Total GAAPRevenves 73384587 EBS seeese 8S GBI gos GUIBEITgtat 361 Adpstments
Slide 23: GAAP Reconciliation Free Cash Flow & EBITDA
(j2)) GAAP Reconciliation Free Cash Flow & EBITDA (8 in millions) Free Cash Flow ort won ort | om ome ore | one aes Ne cash rovi by apex aetivtes sis: woos sme2 suis] smo sem ser © sesm| sami seo aro Less Purchases of property and equipment (90.625) 1.80) ($2590) 1.76) (H.-1SS)H1.ES)—(HO.956)GHIASY
Slide 24: Q2 GAAP Reconciliation Non-GAAP Earnings & EPS
(i2)) Q2 GAAP Reconciliation Non-GAAP Earnings & EPS ~ ($ in thousands) THREE MONTHS ENDED JUNE 30, 2013 THREE MONTHS ENDED JUNE 30, 2012 i) 8) 0) Acquisition 0) Gain on Share-based and Ext Share-based Sale of GAAP Compensation Costs Non-GAAP GAAP Compensation Investment Non-GAAP Revenues 3 141351 =
Slide 25: GAAP Reconciliation EBITDA
(j2)) GAAP Reconciliation EBITDA EBITDA CONSOLIDATED CLOUD & MEDIA Q2 2013 () eLouD MEDIA CONSOLIDATED Net income (loss)" $37.6M S17m) $36.0M Interest and other expense, net $2.7™M $2.1M $4.om Income tax expense (benefit) $13.0M 11M) $11.8M Depreciation and amortization $6.0M $3.4M $3.5m Reconciliat
Slide 26: Note Ratios & Covenants
2) Note Ratios & Covenants $250 Million Senior Unsecured Notes 679072013 % of Total Total Cash & Investments $ 362.9 Total Debt $ 250.0 10.3% Total Market Capitalization $ 2472.8 89.7% EBITDA - LTM 6/30/13 @ $ 209.9 Ratios Leverage Ratio - Debt / EBITDA LTM 1.19% Fixed Charge Ratio - EBITDA LTM /Int
Slide 27: j2 Global
j2) Global inform. Connect. Empower. a if j2 | OeFax’ <eVoice’ &FuseMail’ “campaigner MKeepltSafe’ @ onebox ais