Live Ventures Incorporated · NASDAQ:LIVE
Live Ventures — YP NET — Investor Presentation (February 2004)
27 slides from Live Ventures's investor presentation, Feb 10, 2004
Slide 1: YP.Net Investor Presentation 2004
YP. Net» Investor Presentation 2004 Angelo Tullo- CEO David Iannini- CFO
Slide 2: Disclaimer
Disclaimer: During the course of this presentation we may discuss YP.Net’s business outlook, which contains forward-looking statements. These particular forward-looking statements AND all other statements that may be made during this presentation that are not historical facts, are subject to a numbe
Slide 3: What We Do
What We Do ‘We publish basic business and individual listings on our website (sww.yp.com) similar to print Yellow Page publishers. Basic business listings contain business name, address and phone number for 18 million US businesses. Similar to the print Yellow Pages there is no charge for this basic
Slide 4: YP.Net Products: Leading Product
YP.Net Products Leading Product Internet Advertising Package (IAP) includes: = A.40 word Mini-Webpage with a business description detailed enough to allow buying decisions but concise enough to be displayed on hand held devices A high priority listing with bold graphics Door to door mapping services
Slide 5: YP.Net Products: Add On Products
YP.Net Products Add On Products Online Quick Site Package = Expands Mini-Webpage to eight page website = Advertiser has direct access and modification capability at any time = Serves same purpose as display ads in print yellow pages Internet Dial Up Package (IDP) = Provides IAP customers with on-lin
Slide 6: The Marketing and Customer Service Process
The Marketing and Customer Service Process Marketing = Average of 1 million mailings per month to database of US businesses Mailing details specifics of offer $3.50 Activation Check starts the process Confirmation card generally sent within 20 days 120 day risk free offer Customer Service = Outbound
Slide 7: Market Position and Growth Prospects
Market Position and Growth Prospects #1 in Yellow Page Internet paying advertising customer count! with: = 283,000 activated customers 253,000 paying customers Advertising customer growth of 124% over one year Added over 9,000 customers per month, on average, during calendar 2003 Substantial additio
Slide 8: YP.Net Competitive Advantages
YP.Net Competitive Advantages ‘The principal competitive advantages of YP.Net are: = An effective but low cost marketing program through its use of direct mail and incentives for targeted customers. » The only independent Internet Yellow Page provider that can offer account payment through local tel
Slide 9: Internet Competitive Monthly Pricing Comparison
Internet Competitive a Monthly Pricing Comparison = YP.Net- $21.95- $34.95 = Switchboard- $35.00 = Dex Media- $60.00 = Smart Pages (Southwestern Bell)- $39.00- $49.00 = Super Pages (Verizon)- $55.00- $90.00
Slide 10: Competitive Advantages of Internet Yellow Pages Over Print
Competitive Advantages of Internet Yellow Pages Over Print To the advertiser: = Lower cost for a given level of content. « Flexibility to change the content of the listing at any time including daily or weekly specials. To the user: = More current listing information. = Quick access to business list
Slide 11: David Iannini Presentation Starts Here
si David Iannini Presentation Starts Here
Slide 12: Growth of the Print and Online Directory Advertising Market
Growth of the Print and Online Directory Advertising Market ‘The Kelsey Group market research firm projects advertising expenditures: = The total print and online directory market of $15.0 billion to grow at 7% annually over the next five years to $21.3 billion by 2008. = The online and wireless dir
Slide 13: Summary of the Print and Online Directory Advertisement Market Growth
Summary of the Print and Online Directory Advertisement Market Growth 2003 | Market | 2008 | % Growth Share per year Print 14.5 97% 16.1 2.50% Online/ Wireless | 0.5 3% 52 59% 25 Total 15 100% 213 T% 100 12
Slide 14: Economics of the Business Model
Economics of the Business Model = Average of 1 million mailings per month. = Random selection from the 18 million U.S. business data base. = Cost approximately $400,000 per month. = Initial order rate- 1% - 2%. = Net Advertiser customer growth rate of 5-10 thousand customers per month. = Average pay
Slide 15: YP.Net Investment Incentives: 2003 Financial Performance
YP.Net Investment Incentives Outstanding 2003 Financial Performance Revenue Growth of 144% compared with the previous year EPS growth of 100% compared with the previous year Operating income margin improvement to 30% from 22% An annualized return on stockholders equity of 60% A high level of working
Slide 16: YP.Net Investment Incentives: Attractive Investment Characteristics
YP.Net Investment Incentives Attractive Investment Characteristics » A leading position in the fast growing Internet Services Industry = Arecurring revenue stream » Ahigh growth, high margin, high ROI business model with pricing power. » Aprice to earnings multiple which is below market averages = A
Slide 17: Share Price Performance
Share Price Performance YP.Net vs. Market Indices YP.Net price has sharply outperformed all relevant indices over the past year. 3487% 3500% 3000% 2500% msodcPrce 2000% iti. 1500% 12/31/03) 1000%: 500% 26% 25% «50% 0% YPNT S&PS0O DIA NASDAQ 100 16
Slide 18: Price Earnings Ratios
Price Earnings Ratios YP.Net vs. Market Indices YP.Net price earnings ratio is modest compared to major indices. Ea aTrailing 12 Month P/E Ratio (prices at 2/05/04) YPNT S&P S00 DIA NASDAQ 100 cd
Slide 19: Peer Group Evaluation
a Peer Group Evaluation Peer group consists of: » Switchboard (SWBD) = Ask Jeeves (ASKJ) = Find What (FWHT) = Infospace (INSP) 18
Slide 20: Comparative Peer Group 2003 Financial Performance
Comparative Peer Group 2003 Financial Performance YP.Net 30.8 79 26% 45% | 18 Switchboard | 15.2 21 4% 4% | 10 Ask Jeeves 107.3 26.0 24% 36% | .40 Find What' | 70.6 11.2 16% 19% | .50 Infospace 160.1 (6.3) NM NM | (20) to Data based on Merriman Curhan Ford estimates @ —- ROE*Net Income / Year End eq
Slide 21: Comparative Peer Group Market Performance
Comparative Peer Group Market Performance YP.Net 172 3487% 20 Switchboard 117 153% 63 Find What 399 146% 24 Ask Jeeves 1010 608% 53 Infospace 1050 173% NM 9 Sous: CBS Marketwatch (205104) and YPNT price of $3.60 per share 20
Slide 22: Price Appreciation: YP.Net vs. Peer Group
Price Appreciation YP.Net vs. Peer Group 3487% 3500% 3000% 2500% Price 9 Appreciation 2000% (12/31/02- 1500% 12/31/03) 1000% 500% 153% 14696 0% YPNT SWBD FWHT ASKI INSP Peer Group: SWED-Switchboard, Inc. - FWHT- Find What, com ASKJ- Ask Jeeves, Inc. - INSP- Infospace, Ine. 21
Slide 23: Price/Earnings Ratio: YP.Net vs. Peer Group
Price/ Earnings Ratio YP.Net vs. Peer Group! 70 63 53 30 24 m Price Earning Ratio YPNT SWBD FWHT ASKI Peer Group: SWBD-Switchboard, Inc. - FWHT- Find What, com - ASKJ- Ask Jeeves, Inc. * Based on trailing 12 months earnings and prices reported on CBS Marketwatch (2/0504) 22
Slide 24: Appendix
7 Appendix:
Slide 25: Recent Initiatives and Milestones
Recent Initiatives and Milestones February 2004 Branding program initiated January 2004 Launched m.YP.com yellow page portal for mobile users to access the company’s listings on Palm, PDA’s and other handheld devices. December 2003 Reached 222,000 paying customers (#1 in industry). October 2003 Obta
Slide 26: Recent Initiatives and Milestones
Recent Initiatives and Milestones October 2003 July 2003 May 2003 April 2003 February 2003 December 2002 Entered into agreement to display our listings on go2 Directory Systems online and wireless destination network, Acquired the YP.com URL Entered into agreements with Switchboard and Palm that ena
Slide 27: History
History 1996 July 1997 June 1999 October 1999 February 1999 March 2000 Incorporated in Nevada as Renaissance Center Inc. Articles of Incorporation restated. Name changed to Renaissance International Group. Acquired Telco Billing Inc, along with the Yellow Page URL. Changed corporate name to YP.Net,