Slide 1: IDT Corporation Investor Presentation
SS FF IDT Corporation (NYSE: IDT) Investor Presentation June 28, 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements, Statements that are not historical facts are forward-looking sta and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Exampl
Slide 3: IDT is a diversified holding company
IDT is a diversified holding company with core holdings in telecom and retail energy, supplemented by growth opportunities in technology and oil shale Short Term Growth Long Term Growth DT Telecom| | IDT Energy Fabrix Zedge AMSO TEI —_— —_ Flow Breakeven or Thereabout Require Investment
Slide 4: Publicly traded on the NYSE: key facts
¢ Publicly traded on the NYSE (NYSE: IDT) * Global presence: ~1,300 employees on 6 continents * Revenues exceeded $1.4 billion in FY 2010 * Strong, Liquid Balance Sheet - ~$280 million in cash, cash equivalents and CD's - ~$37 million in debt (but mainly non-recourse) - ~$219 million in equity (ROE:
Slide 5: Strong Bottom Line Improvement
Strong Bottom Line Improvement Net Income Up $258 Million Since FY 2008 Revenue $151.9 $14014 — $1,507.7 $1,725.7 Direct Cost $1,214.9 — $1,110.7——$1,160.1 $1,364.8 Gross Profit $297.0 $290.7 $347.6 $360.9 Gross Margin % 19.6% 20.7% 23.1% 20.9% SG&A $236.5 $222.4 $289.0 $422.6 Research and Developme
Slide 6: Genie Energy
Genie Energy (068%) Genie Oil & Gas (045%) ‘American Shale Oil (AMSO) 0%) Israel Energy. Initiatives (TEI, (89%)
Slide 7: Integrated product and distribution company built around transaction networks
Integrated product and distribution company built around transaction networks Over $1.2 billion in revenue Over 800 carrier interconnections One of the world’s largest calling card distributors Terminate ~ 25 billion minutes per year Diversified market presence on 6 continents
Slide 8: Retail
Retail Reloadable Debit Int'l Mobile Top-Up Calling Call Shop Voiceline Remittance Cable Telephony Mobile Apps Direct Reseller
Slide 9: Operational & Financial Trends
onal & Financial Trends Minutes Revenue Deferred Revenue os (ition 1,500 (Gomulon ss (Gomulion 24 80 2 4,300 . 20 4,100 » 16 ‘900 6 14 oo 2 700 55 10 500 50 2009 2010 rm 2009 2010 Tm 3ub09 dul0 Apr Gross Profit SG&A Adjusted EBITDA aso in milins) wz ‘s milo) 200 40 200 180 35 160 30 ° : i 100 1100 2
Slide 10: Results of Operations
Results of Operations [ (USD in millions) TIM FY10 FO Revenue 13000 Sas $1237 Gross Profit $2360 su77 $2703 Gross Margin % 182% 19.1% 21.8% SG&A 91862 $180.2 sx09 SGE&A as a Percentage of Revenue 143% 151% 179% Adjusted EBITDA $498 a4 S494 Depreciation and Amortization $208 S23 3126 Adjusted Operati
Slide 11: Video Storage, Processing & Delivery Platform
Video Storage, Processing & Delivery Platform Enterprise class, software based storage platform + Inexpensive clustered video storage technology * High throughput streaming * Intelligent content distribution Supported applications include: Cloud based storage and computing + End-to-end video workflo
Slide 12: Zedge mobile content sharing platform
www.zedge.net * One of the world's largest mobile content sharing platforms ¢ About 40 million unique visitors per month and growing * Contains over 5 million pieces of content, with approximately 5 million daily downloads ¢ Four different access points: website, mobile site, touch screen site, Andr
Slide 13: Genie Energy
Es Genie Energy *IDT Energy ¢Genie Oil and Gas - Israel Energy Initiatives (IEI) - American Shale Oil (AMSO)
Slide 14: IDT Energy is an energy services company (ESCO)
IDT Energy is an energy services company (ESCO) * Founded in 2004, now largest independent residential ESCO in New York State * Purchases electricity & gas in wholesale markets for resale to end users * Delivery, billing & collections remain responsibility of incumbent utility Value Proposition * Cu
Slide 15: Markets & Opportunities
arkets & Opportunities Meter Migration and Market Share in Key States’ New Jersey (PSEG, SJG) Pennsylvania (PPL, PECO & NFG) New Jersey (rest of state) * Total Prospective Markets Pennsylvania (rest of state) Maryland Mlinois Connecticut Total Res. Meters % Res. Residential Migrated to Meters. 1DT M
Slide 16: IDT Energy financial results
(USD in millions) TIM" Gee) bt) 52036 S014 Gross Profit 867 $12 SUZ SB S68 S10 578 $722 Gross Margin % 291% 40% BAW 19H%_—B1.2% 265% BTR «73K SG&A 67 59 59 $82 $198 Adjusted EBITDA $9.9 $5.7 $8.8 $5.4 $8.6 $38.0 = 20000 5 8 7 15000 2 = & 10,000 = 22 "Som 3 " 2 é é a Adjusted ERETDA) 2 Gross Margin h
Slide 17: Genie Oil and Gas
SS Genie Oil and Gas
Slide 18: Strategic Vision: Now is the time for unconventional resources
Gas - Strategic Vision Now is the time for unconventional resources + Protracted tightening in the global oil supply - Global consumption at a record 88mm bpd, expected annual demand growth of 1.5mm bpd - The “easy” oil has all been discovered - no new large conventional oil discoveries ¢ Sustained
Slide 19: In-Situ Recovery
1 ie’s In-Situ Recovery * Oil shale generally refers to a sedimentary rock that contains solid hydrocarbon materials called kerogen ¢ When oil shale is heated to ~600°F the kerogen generates hydrocarbon liquids and gases « In-situ extraction has significant technical and environmental advantages and
Slide 20: Oil Shale Resources
hale Resources
Slide 21: Develop advanced technologies and secure resource access
* Develop advanced technologies and IP for environmentally acceptable unconventional hydrocarbon resource extraction * Secure access and rights to resources globally where these technologies can be applied * Pursue resources as a stand alone company or in partnership with major oil & gas players and
Slide 22: Exclusive oil shale exploration license in Israel
IDT,| Exclusive oil shale exploration license in Israel Legend * Covers 238 sq. km in south of Hashfela region Term 2 * Estimated 40 billion recoverable boe cw a = e * Subject to permitting and approvals Crude Oi Pipelines Blot ~Ashielr Astkelon Hala —| elon Ashdod —| * Upon conclusion of successful
Slide 23: Oil Shale Potential of Israel
Oil Shale Potential of Israel Israel has one of the largest and best oil shale deposits in the world for in situ conversion Richness: ~ 23 - 25 gal/ton Thickness: up to 300 m thick with 100 m thick High Grade Zone Very Low Water Inflow to Wells Complete Isolation from Aquifer
Slide 24: IEI Project Timeline
IEI Project Timeline 2009-2011 2011-2012 2012-2017 2018 and on Geological Survey Pilot Demo Commercial Operations Conduct Design, construct Commercial Lease Scale up to full comprehensive and operate a pilot Obtained commercial geological survey facility operations Production of ~500+ barrels in tot
Slide 25: AMSO is developing a federal RD&D lease in Colorado
AMSO is developing a federal RD&D lease in the Piceance Basin of Colorado AMSO LLC is 50% owned by Genie & 50% by Total, S.A. Piceance Basin IDT operating during pre-commercial phase Total funding the majority of R&D expenditures, provides technical expertise, and will operate commercial project Lea
Slide 26: AMSO Project Timeline
AMSO Pro ject Timeline + Dorr 212-2015 2016-2018 201 and on 5 Commercial Lease Commercial Pilot Demo 5 F Conversion Operations Drilling - Winter/Spring ‘Turn Heat on - Summer Pilot operations end - Fall First Oil Produced Pilot Analysis - Fall/Winter Design, construct and operate a demo facility App
Slide 27: Investment Considerations
nsiderations *Strong, liquid balance sheet (see Appendix) - Cash, cash equivalents and CD's of ~$12/share - Minimal goodwill & intangible assets - Mainly non-recourse debt *Core businesses are growing and generating Free Cash Flow - Approximately $85M in free cash flow during FY2010 - IDT Telecom -
Slide 28: Appendix
SS FF APPENDIX
Slide 29: TTM definition
2 TIN — Twelve months ended Ayr 30,2011 (3011)
Slide 30: Balance Sheet
(USD in millions) 09 Cash, marketable securities and short term investments, $280.1 $235.3 $180.2 Accounts receivable $1282 $105.2 $1387 Other current assets SHB. $40.6 $35.0 Assets of discontinued operations : : S188. Total current assets $450.1 $381.1 $381.7 Property, plant and equipment, net $90.
Slide 31: Closing the Gap on Valuation
Closing the Gap on Valuation Reece Valuation Valuation AASSe Methodology Metri WN IDT. Industry sl ee EBITDA High $175M - $270M sii Transactions 3.5X_$50M_5.4X IDT Energy ii aia inn Pane 4 $125M - $155M Genie Oil & Gas | _—e iba $200M investment Valuation Cash & CDs | Cash is Cash Cash Value $280M F
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures In addition to including financial results that are determined in accordance with generally accepted accounting principle inthe United States of America (GAAD), IDs investor presentation also included Adjusted EBITDA and Free Cash Flow, which are non-GAA
Slide 33: Reconciliation of Non-GAAP Financials
fof Non-GAAP Financials IDT The impairments, and severance and other charges are also excluded in the calculation of Adjusted EBITDA. Impairments are primarily dictated by events and circumstances outside the control of management that trigger an impalement analysis. Severance and other charges ate
Slide 34: Reconciliation of Non-GAAP Financials
of Non-GAAP Financials IDT Facts and Figures Page 4 in esas) TIM Froe Cash Flow (FCF) $48,283 ‘Ada: Capital expenditures 10,903 Net cash provided by operating activities IDT Consolidated Financial Overview Page 5 TIM FY10 —-FY09 FY 0S Adjusted EBITDA $ 50519 $ 60316 $ 49485 $ (73211) Subtract (add)
Slide 35: Reconciliation of Non-GAAP Financials
“Reconciliation of Non-GAAP Financials is IDT}
Slide 36: Reconciliation of Non-GAAP Financials
1 of Non-GAAP Financials
Slide 37: IDT Corporation
SS _ IDT Corporation