FriendFinder Networks — Investor Presentation (June 2011)
20 slides from FriendFinder Networks's investor presentation, Jun 6, 2011
Slide 1: Introduction to FFN
ae. e. NX al : q FriendFinder Networks e 7 a oo” ) Introduction to FFN June 2011
Slide 2: Safe Harbor
Safe Harbor Certain statements made in this presentation regarding FriendFinder Networks Inc. and any other statements regardl FriendFinder Networks Inc.'s future expectations, beliefs, goals or prospects constitute forward-looking statements made within the meaning of Section 21E of the Securities
Slide 3: Key Company Highlights
Key Company Highlights Weare a leading internet-based social networking and technology art company operating several of the most heavily visited websites in the world Unique Platform Material Barriers to Entry Substantial Growth Opportunity Large and Diverse User Base Attractive to New and Existing
Slide 4: Management and director experience
+ Over 20years of investment ‘and operational experience + Marc Bell Capital Partners— Managing Director,"03- present + Globix Corp -Chairmanof the Board,90-"03, & CEO, "90-01 ‘+ EDGAR Online - Boardof Directors, "88-00 ‘+ ArmourResidential REIT (NYSE: ARR) — Board of Directors, 09-present + BS. deg
Slide 5: Company Overview
FriendFinder Networks” e / Ja oy Company Overview
Slide 6: Robust, highly scalable technology platform
Over the past 12 years we have developed a robust, highly — scalable technology platform to support both our core business and additional opportunities Allows us to add users and create new sites with very low incremental cost
Slide 7: FriendFinder at a Glance
FriendFinder at a Glance We provide online social networking, interactive video services and premium content, as well as engage in entertainment activities consisting of publishing, broadcasting and licensing . _ 2010Net Revenue’: $346.0mm FriendFinder Networks 5949 adjusted EBITDA": $105.4mm Intern
Slide 8: Marketing: Affiliate program
Marketing: Affiliate program We believe our affiliate network is one of the largest in the world and is a substantial competitive advantage Over 250,000 affiliates participating ” We derive approximately 45% of our revenue from our affiliate program “? Our affiliates derive revenue based on: (i) a p
Slide 9: Social Networking: Websites
Social Networking: Websites Since our inception, over 445 million registrants have registered on our websites eases Beoncaice TEC ine ease AdultFriendFinder.com 223,841,919 FrenchFriendFindercom™ 2,000,401 Amigos.com™ 53,441,861 FilininoFriendFindercom 1,980,696 AsiaFriendFinder.com 44,578,026 Germa
Slide 10: FriendFinder Revenue Breakdown
FriendFinder Revenue Breakdown Despite accounting for only 26.5% of registrants, the US contributes ove! half of our total revenue, providing significant opportunity for revenue expansion in foreign markets Revenue by Cou EU Breakdown United Kingdom 8.0% Gemany 5.6% ; France 4.9% Bie italy 2.6% span
Slide 11: Social Networking Features: FriendFinder.com
Social Networking Features: FriendFinder.com We offer a wide range of social networking features from photo sharingto blogging Advertisement Chat, Instant Messaging Two types of instant messaging systems are available: a standard service and a faster Flash systern, ‘which offers extra options such a
Slide 12: Using existing platforms to create new organic sources of revenue
We continue to use our existing platforms to successfully create new organic sources of revenue and to set the bar for next-generation social interaction entertainment We continue to launch new social networking and live video sites focused on developing subsets of the social media world to drive or
Slide 13: Penthouse publishing, production and licensing
peammous wl PENTHOUSE PENTHOUSE PENTHOUSE" WARINTIONS” PENTHOUSE PENTHOUSE FORUM’ | © We publish several themed | © We produce professionally | © Welicense consumer products magazines and digests generated original adult video and worldwide including: books, torial content in standard and apparel, a
Slide 14: Broadcasting Segment Detail
asting ¢ g Segment Detail The Broadcasting division is a key segment for promoting the FriendFin and Penthouse brands globally * We have global access to over 300 million households * We operate on over 30 platforms globally * Our content is aired in over 20 different countries acrossthe globe | © O
Slide 15: Goal to enhance revenue opportunities while improving profitability
Our goal is to enhance revenue opportunities while improving our profitability. We plan to achieve these goals using the following strategies: Utilize our superior affiliate network and marketing to drive traffic to new and existing sites Continually evaluate, add and enhance features on our website
Slide 16: Financial Highlights
Financial Highlig| Substantial margin expansion, growing from 23% to 30% 5350 350 $333 is $328 $346 300 250 E 200 150 102 $105 100 $76 #2 50 oO 2007 2008 2009 2010 "Revenue Adjusted EBITDA. * Acquired Various Inc. * New management © Eliminated $22mm of © Increased affiliate and December 2007 develop
Slide 17: 2010 Financials
2010 Financials ($mm) Net revenue Costof revenue Gross profit Operating expenses: Product development Selling and marketing General and administrative Amortization Depreciation Impairment of Intangible Assets Total operating expenses Income (loss) from operations Net Lass Adjusted EBITDA 2009 $328 9
Slide 18: Capital Structure Overview
Capital Structure Overview On October 27,2010 FFN successfully completed a refinancing of its entire capital structure, simplifying into three tranches of debt = OnMay5, 2011 FFN repaid $9.8 million of its New FirstLien and Cash Pay Second Lien on a pro rata basis under the excess cash flow covenant
Slide 19: Pro Forma Free Cash Flow Analysis
Pro Forma Free Cash Flow Analysis = LTMfiguresas of March 31, 2011 = Debtbalances pro forma for $9.8 million and $39.5 million principal reduction from the May 5Sexcess cash flow payment and the May 11 IPO proceeds, respectively Pro Forma LTM Free Cash Flow ($mm) First Lien giz eH = (534) ($2) $72 ‘
Slide 20: Weare a leading internet-based social netwot
Weare a leading internet-based social netwot
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