Slide 1: Investor Presentation (Based upon Second Quarter 2005 results)
Exhibit 99.2 www.j2global.com Investor Presentation (Based upon Second Quarter 2005 results) July 25, 2005 1
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the slide entitled “2005 Financial Guidance”. These forward-looking s
Slide 3: Risk Factors
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 in our customer base, revenue or profitability Competition in price, quality, features and geo
Slide 4: j2 Global deploys the power of the Internet to deliver business critical communication
j2 Global deploys the power of the Internet to deliver business critical communication and messaging services to individuals and corporations throughout the world. 4
Slide 5: Brand names and logos trademark notice
5 All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally.
Slide 6: Unique Assets
Unique Assets 9.3 million subscribed telephone numbers (DIDs) Global advanced messaging network 1,500+ cities in 25 countries on 5 continents 13.6MM+ unique DIDs worldwide in inventory Patented technology A portfolio of 23 issued U.S. patents, and numerous pending U.S. patent applications, issued fo
Slide 7: Subscriber Profile
Subscriber Profile Vertical Markets Financial institutions Real estate Law firms & corporate legal departments Medical Government Hospitality Remote workers & “road warriors” Value Proposition Digitization (paper reduction) Security Privacy Regulatory Compliance Efficiency Cost Infrastructure replac
Slide 8: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, Hotmail, Yahoo!, Google, AT&T, United Online, etc.) Sold primarily through: www.eFax.com and www.j2.com Use of proprietary Life Cycle Management (i.e. Free Paid conversions) Advertising & Calling-Party-Pays revenue supports the Fre
Slide 9: Paid Subscription Drivers
Paid Subscription Drivers Six drivers for Paid subscription additions: Subscribers coming directly to the Company’s Websites Brand awareness Search engine discovery Free-to-Paid subscriber upgrades Life Cycle Management eFax Corporate SME sales Hybrid Website and human interaction (i.e. Telesales) D
Slide 10: 1,500+ cities in 25 countries on 5 continents
1,500+ cities in 25 countries on 5 continents 137 million total US employees Current population of j2 Global-served countries: 758 million j2 Global has 8.6 million U.S. subscribers Representing 246+ million Internet users j2 Global has >638,000 international subscribers Everyone has a fax number on
Slide 11: Initiative Updates
Initiative Updates Enterprise Sales 14 Enterprise accounts with 1,000+ DIDs – all under annual or multi-year contracts Signed another 3,000 DID account during Q2 Pipeline: 42 qualified 1,000+ DID opportunities, of which 13 are international International 54% increase in Paid net subscriber additions
Slide 12: Product Roadmap
Product Roadmap Unified IP Document Voice Email Messaging Fax Management Services Services & Comm. Services Inbound VM to Email Permission-based Integrated Email, Inbound Fax to Email ProtoFax® Outbound Fax via Email Messenger 4.0 Voicemail management Email marketing voicemail & fax services Fax bro
Slide 13: Financial Highlights
j2),Global Financial Highlights 13 +f j2 ) Global Communications, Inc.
Slide 14: Historical Revenue & Operating Income Growth
Historical Revenue & Operating Income Growth 33 consecutive quarters of Revenue growth 14 consecutive quarter of Operating Earnings growth 14
Slide 15: Cost Trends
Cost Trends * * * Reflects a reclassification of certain network operations and depreciation expenses into Cost of Revenues, which was implemented in Q1 2005 (and is on-going), versus their historical inclusion in General & Administrative expenses. See Slide 15 #19 for a reconciliation to previously
Slide 16: 2005 Financial Guidance
2005 Financial Guidance Q3 Year-End 2005 2005 Revenues (millions) $37.4 – 38.0 $145 – 148 Net Earnings per Share (1) $0.48 – 0.49 $1.82 – 1.87 (1) Assumes an effective annual tax rate of 27% and 25.5 million fully diluted shares outstanding 16
Slide 17: Recent Events
Recent Events j2 Global’s network expanded to 25 countries with the introduction of local telephone numbers in Spain and Portugal Acquired the assets of Data On Call, a profitable fax-to- email provider to businesses Electric Mail launched PerimeterProtect™ services, offering up-front email messagin
Slide 18: Metrics
2003 2004 Metrics 2005 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Fixed Subscriber Revenues $9,916 $11,177 $12,121 $13,976 $16,021 $17,750 $19,122 $20,823 $22,773 $23,756 Variable Subscriber Revenues 4,538 5,130 5,685 5,542 6,041 7,314 7,863 8,226 8,502 10,323 Subscriber Revenues $14,454 $16,307 $17,806 $19,517
Slide 19: Reconciliation of previously reported Cost of Revenues and G&A Expenses for 2004
Reconciliation of previously reported Cost of Revenues and General & Administrative Expenses for 2004 ($ in thousands) Q2-2004 % of Rev Q3-2004 % of Rev Q4-2004 % of Rev Cost of Revenues Previously reported $ 4,063 15.7% $ 4,363 15.7% $ 4,448 14.9% Add: Certain network operations and depreciation ex
Slide 20: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) (1,2) Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Net cash provided by operating activities $5.308 $8.542 $8.623 $10.375 $10.252 $13.044 $13.240 $14.785 $13.762 $15.227 Purchases of property & equipment (0.300) (1.414) (0.947) (
Slide 21: Global
Global