Ziff Davis, Inc. · NASDAQ:ZD

Ziff Davis — j2 Global Communications — Q1 2003 Earnings Presentation

24 slides from Ziff Davis's earnings presentation, Apr 22, 2003

  1. Slide 1: Investor Presentation (Based upon First Quarter 2003 results)

    j2 Global Communications ™ www.j2global.com Investor Presentation (Based upon First Quarter 2003 results) April 2003

  2. Slide 2: Safe Harbor for Forward-Looking Statements

    j2)Global" Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forwarcHooking statements” within the meaning of the Private Securities Litigation Reform Act of 1965, particularly those contained in the slides enttled “Tax Considerations” and “2008 Financial

  3. 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,

  4. Slide 4: j2 Global delivers business critical communication and messaging services

    j2)Global j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world. 4 52) clonal communications, tne.

  5. Slide 5: j2 Global brands: jfax, eFax, Consensus, jConnect

    j2)Global @ijfax.com Y eFax “ a Ora Consensus j2) jConnect 5 42) Global commu

  6. Slide 6: What we do: inbound and outbound messaging

    j2) Global Inbound (Receive) What we do... Peto Proprietary IP Control Structure 1,000+ Cities tbat Worldwide Voicemail Outbound (Send) — 31%} = Create a document Proprietary IP Subscriber Control Structure 6 42) Global Communication, nc.

  7. Slide 7: Unique Assets

    j2)Global Unique Assets 4.6 million subscribed phone numbers Global advanced messaging network + 1,000+ cities in 18 countries on 5 continents + 5,8MM+ unique telephone numbers (DIDs) worldwide Patented technology +5 issued U.S. Patents, with 9 Patents pending Expertise + Telecom, messaging, Interne

  8. Slide 8: Market Sizes

    j2)Global Market Sizes Fax + Estimated multi-billion dollar annual spend on transmission costs worldwide, of which approximately one-half is estimated to be for the inbound receipt of faxes + j2 Global is estimated to have 40%+ of the “inbound fax supplier market” (i.e. fax-to-email) Voicemail + 76M

  9. Slide 9: Sales Channels

    j2)Global Sales Channels Web ¢ Target individual users [pean * Targeted marketing over the Web + Use of Web-based marketing tools [econ | Corporate * Direct sales force to SMEs and large corporations * TeleSales to smaller businesses www.j20orporate.com * Resellers Licensed Services + Opportunistica

  10. Slide 10: Corporate Channel Vertical Markets

    j2)Global Corporate Channel Vertical Markets ¢ Financial institutions + Law firms & corporate legal departments + Real estate + Hospitality + Medical * Government + Remote workers & “road warriors” al Features ‘ation (paper reduction) + Security + Privacy + Efficiency + Cost 10 52) clonal communicat

  11. Slide 11: Subscriber and DID growth by channel

    j2)Global 310,000 __, 290,000 € 270,000 8 g 250,000 = 220,000 © 210,000 4 190,000 3 2 170,000 2 150,000 130,000 2/34/2001 | By 31/ 2002 | 6/0/2002 | 9/30/2002 | 12/31/2002 | 3/31/208 Corporate MN | 20,000 23,265 23480 34480 erect 4727 WebPaid MI | 170000 | 193040 | a9z996_ | 212,00 | 2as,ana | aman

  12. Slide 12: Metrics

    j2)Global Metrics 1 1 402” gi od” Qi ‘02 Paid Web Channel Number of Deployed DIDs 183,844 Net DID Additions 13,844 ARPU / Month $12.79 Corporate Channel Number of Deployed DIDs 23,265 Net DID Additions 3,265 Number of Accounts 858 Q2'02_Q3' 197,996 212,001 14,152 14,005 $13.13 $13.42 28,480 34,480 5

  13. Slide 13: Global Network Presence

    Global Network Presence | Asia/Pacific The Americas. Europe 1,000+ cities in 18 countries on 5 continents ‘tobe deployed B 52) clonal communications, tne.

  14. Slide 14: Product Roadmap

    j2)Global 4 Ip a Fax Document Management Inbound Fax to Ema + ProtoFax® + Outbound Fax via Email * Messenger + Fax broadcasting + HotSend® + Secure fax + PaperMastera3/022 + PaperMaster 2003 + Messenger 2008 OCR + Fax storagefarchive + New notification methods I Curently offered I Future cpportuniti

  15. Slide 15: Financial Highlights

    j2)Global Financial Highlights 52) clonal communications, tne.

  16. Slide 16: Revenue Growth

    3 2 2 oO a Ss | Revenue Growth ‘orica Hist 24 consecutive quarters of revenue growth $16.0 $14.0 $12.0 eeagqgga 86s ¢ a gs 2S 8 43 8 8 & (suo) 0,10 zo, 60 zo, £0 zo, z0 zo, 10 To, +0 To, £0 To, z0 To, 10 00, 60 00, £0 00, z0 00, 10 66, 60. 66, £0 66,20 66, 10 26, 60. 86, £0 86,20 86,10 26,60 26,60 2

  17. Slide 17: Quarterly Revenue

    Quarterly Revenue 2002 2003 Qi Q2 Q3. Q4 Qu Subscriber $9370 $10,427 $11,551 $12,958 $14,454 Quarter-to-Quarter Growth 21% 11.3% 10.8% 12.2% 11.6% Advertising 877 705 783 715 612 Quarter-to-Quarter Growth 7.7% © -14.8% «= 1.1% = BM “144% Licensed Srvs & Other 183 174 169 354 142 Total Revenue 410380

  18. Slide 18: Quarterly Revenue by Channel

    Quarterly Revenue by Channel 2002 2003 QL Q2 g3® gae qi? Web 97733 «(98,292 —«48,0B1_ «9844 «$10,761 Quarter-to-Quarter Growth 6.9% V2 B.M% 9.0% 9.32% Corporate 2,464 2840 3308 3827 4,306 Quarter-to-Quarter Growth 22.0% 15.3% 16.3% 15.9% 125% Licensed Services 166 159 160 185 89 Other 7 5 9 169 52 T

  19. Slide 19: Cost Trends

    j2)Global Cost Trends $4.0 G&A $3.5 $3.0 $2.5 $2.0 Sales & Marketing’ (Millions) $L5 Engineeri $1.0 oe $0.5 $0.0 Ql MOL Q102 Q202 Q8'02 M02 Q103 In Q4 2002, excludes a cne-time recovery of a marketing payment of $694,000 19 52) clonal communications, tne.

  20. Slide 20: Free Cash Flow

    j2)Global (millions) voz (1 eludes a one-time recovery ofa marketing payment of $834,000, ‘GINat cath provided by operating activites, less purchases of FFEE., Free Cash Flow amounts are net meant 352 substitute for GAAP, but are solely for informational purposes Te awe aa Net cash provided by opera

  21. Slide 21: Tax Considerations

    j2)Global Tax Considerations Federal Net Operating Loss (NOL) + Approx. $50MM available to off-set future taxes + As of March 31, 2003, an estimated $41MM is available California Taxes + State suspended use of NOL retroactive to tax-year 2002 and continuing through tax-year 2003 + Company expects to

  22. Slide 22: 2003 Financial Guidance

    j2)Global 2003 Financial Guidance (Revised 4/21/03) Q2 Year-End 2003 2003 Revenue $16.3MM $66.0 — $69.0MM Net Earnings Per Share “) $0.43 $1.70 - $1.85 © assumes fully cluted shares of 12,595,775 as of April 14, 2003, 22 52) clonal communications, tne. an

  23. Slide 23: Recent Events

    j2)Global Recent Events Re-launched eFax Free in the United Kingdom + Introduced Consensus”, our stand-alone audio conference calling service (www.consensus.com) + Released a new version of Messenger”, now providing “client matter codes” (particularly valuable to the legal and consulting professions

  24. Slide 24: j2 Global

    j2). Global

j2 Global Communications — Q1 2003 Earnings Presentation on 6ix