Idt Corporation · NYSE:IDT
Idt — LD Micro Invitational June 2021
41 slides from Idt's conference presentation, Jun 8, 2021
Slide 1: IDT Corporation Investor Presentation
IDT Corporation IDT Investor Presentation LD Micro Invitational JUNE 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements All statements in this presentation that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” ‘intend,’ “estimate, “target” and similar expressions, are forward-looking statements w
Slide 3: IDT At a Glance
IDT+- At a Glance Founded 1990 by Howard Jonas Headquarters: Newark NJ 1600 employees globally, about 350 in R&D IDT Corporation (NYSE: IDT) Unified Cloud Communications FinTech Traditional Communications Investor Presentation | 3
Slide 4: IDT Commitment to Value Creation
IDT « Commitment to Value Creation a IDT Spin-Offs RAFAEL NYSE: RFL ~ $782 MM (2018) Holdings, Inc ZEDGE NYSE American: ZDGE ~ $195 MM (2016) STRAIGHTPATE Straight Path Communications (2015) aT Sold to Verizon - $2,164 MM (2018) NYSE: GNE ~ $163 MM (zon) IDWih:. OTC: IDWM ~ $40 MM (2009) MEPbivas Ma
Slide 5: IDT On A Roll
IDT+ On A Roll Total IDT Adjusted EBITDA! $in millions $52.3 $21.4 $23.4 $24.6 2018 2019 2020 2021 For 9 months ended April 30th Investor Presentation | 5
Slide 6: Driving Business Success through Smarter Conversations
Driving Business Success through Smarter Conversations Jonah Fink net2phone
Slide 7: The What: net2phone
“The What” net2phone Converged Business Communications Across Channels & Devices 209,000 Wai vies =O Seats Served! ; Messaging (April 30 2021) ih Web Calling ae [2] integrations 139,000 Analytics {April 30, 2020) Investor Presentation | 7
Slide 8: The Why: net2phone
“The Why” net2phone A $140 Billion Global Market by 2025 The Worldwide UC Market Grew 29.2% YoY in 2020 and revenue soars to $47.2 billion (24.9% growth). e Migration from on-premises hardware 42% of companies have increased unified communication adoption. « Increased need to support a remote workfo
Slide 9: The Where: net2phone Countries Across Continents
“The Where” net2phone 9 Countries Across 3 Continents 113,000 seats / 38% Growth 93,000 seats / 69% Growth 3,000 seats / 42% Growth Local offices: iam aS S00 Paulo Bri = Newark ND, US — uence fies Local offices e SS = Ottawa, Canada — Bogota, Colombia Murcia, Spain Mexico city, Mexico | | afer ¥ 4 o
Slide 10: The How
“The How” Channel Mix Indirect (Channel) & Direct Sales 20+ Master Partners Agent 5,000+ Channel Partners Team 70+ Internal Sales = Sib — Country us Chile Peru Spain Direct NEW! 99% 15% 70% 50% 20% 100% 100% 40% ‘Channel 99% NEW! 85% 30% 50% 80% ~ - 60% Investor Presentation | 10
Slide 11: New & Coming Attractions net2phone
New & Coming Attractions net2phone Product & Service Enhancements - Roadmap Insight Features & Differentiators Web based Passcode protected Encrypted for security Support for 30 languages Live Stream with YouTube Emoji Reactions Calendar integration Call Recording Single Sign On (SSO) NEW! Huddle Vi
Slide 12: A Powerful Point-of-Sale Platform to Drive Independent Retailers' Success
A Powerful Point-of-Sale Platform to Drive Independent Retailers’ Success Elie Y. Katz iN “g
Slide 13: The Opportunity and Product Offering
The Opportunity and Product Offering ce) Independently owned convenience, liquor and tobacco stores need modern store management technology Underserved Market Full suite of software The NRS solution is designed specifically to solutions for retailers > a address the unique needs of the > [S| indepen
Slide 14: Core Revenue Drivers
Core Revenue Drivers oe) POS terminals provide multiple revenue streams SaaS Fees Digital Out-of-Home Retailers pay a recurring (DOOH) Advertising software subscription fee Advertisers purchase static and video ad impressions on customer-facing screens Payment Processing Retailers utilize NRS PAY, a
Slide 15: Triple Digit Revenue Growth for First Months Fiscal 2021
Triple Digit Revenue Growth for first 9 months fiscal 2021 & Total Revenue $16.5 Up 126% YoY SaaS Fees Payment Processing Advertising & Data Analytics $2.3M $4.5 $6.0M up 56% YoY Up 362% YoY Up 144% YoY Terminal Sales POS Terminals NRS Pay Terminals $3.7M 13,100 4,700 Up 54% YoY up 48% YoY up 178% Y
Slide 16: Helping Families Share Resources Around the World
Helping families to share resources around the world Esti Witty c BOSS REVOLUTION
Slide 17: BOSS Revolution Money Transfer
BOSS Revolution Money Transfer Leveraging strategic assets: >. Trusted BOSS Revolution brand 10 million BOSS ecosystem customers to cross sell High volume transaction platform Boss Revolution app ecosystem Global remittance platform >. Origination in USA Focus on LATAM and Africa Payout in ~275,000
Slide 18: Money Transfer - Digital Platform Expansion
Money Transfer - Digital Platform Expansion Superior UX Digital Experience BOSS Money App receives superlative reviews «Over 80% of customers are repeat users jent Customer Acquisition Successful cross-selling to existing BOSS customers + Sophisticated CRM campaigns Acquisition driven through online
Slide 19: Money Transfer - Growth Runway
Money Transfer - Growth Runway Growth Runway + Expanded payout network » Origination market expansion- Canada, UK + Peer-to-peer transfers + Neo-banking services « Add remittance service to the BOSS Revolution Calling App + Resell payout network Investor Presentation | 19
Slide 20: Traditional Communications led by Mobile Top-Up
Traditional Communications led by Mobile Top-Up Emilio del Rio
Slide 21: Traditional Communications - Key Offerings
Traditional Communications - Key Offerings A Market Leader in International Long Distance Calling and Mobile Top-Up rf’ BOSS GC IDT Mobile Top-Up REVOLUTION IDT Carrier Services US. customers can recharge International calling Terminates & manages Mobile accounts in 100+ serving ~3MM international t
Slide 22: What's an International Mobile Top Up?
What's an International Mobile Top Up ? a Receiver Phone # ———> Sender § Kiosk IDT Mobile Top-Up 1DT Global MTU Partner Network Receiver 170+ Carriers { b 100+ Countries 1,600+ Products Simple - Instant - Secure - Targeted - Value Investor Presentation | 22
Slide 23: Mobile Top Up: Strong Performance and Trends
Mobile Top Up: Strong Performance and Trends* Revenue Customers $325M 1.17M +36.7% YoY +25.9% YoY Transactions ARPU 29.6M $35 +25.9% YoY +15.1% YoY * All KPIs 9 months Fiscal 2021 IDT Mobile Top-Up
Slide 24: Looking Ahead: Growing Top-Up Opportunities
Looking Ahead: Growing Top-Up Opportunities a a > de Regional Momentum Investing in high growth corridors Africa (100%+YoY) Caribbean (40%+ YoY) Unique Omni Channel Broad channel mix leads to improving sales, margins and acquisition costs. > PS >” IDT Mobile Top-Up New Products Global demand of Inte
Slide 25: Beyond Mobile Top Ups: A Global Value Strategy
A Beyond Mobile Top Ups: A Global Value Strategy rns epup Content & Subscriptions Retail oe Point of Sales $] Apps Web o) L]) seit service ou API Airtime & Data A Global Portfolio of Lifestyle Value Added Services, all delivered in real-time via our secure platform, direct to the recipient's phone.
Slide 26: Capital Allocation and Value Creation
Capital Allocation and Value Creation Marcelo Fischer
Slide 27: IDT - Capital Allocation
IDT - Capital Allocation Reinvestment Strategy Cumulative 3 years Adjusted EBITDA’ less Capex (Q4 18 to Q3 21) $in millions Traditional Communications & Corporate Overhead $152 Reinvestment net2phone-UCaaS $(43) Fintech $(16) Net $93 Cash and Marketable Securities? $in millions $128 $68 As of April
Slide 28: Value Components
Value Components POS Network Revenue? = $26MM $in millions July 31 Fiscal Year End 19% Direc cost Total Revenue v7 60% 6 1409, & 0% 200% # 20% 8 60% 40% 20% 0 o% 0320 0820 aiai aa as21 mmm Reverue Revenue Growth Raxe YoY) & Money Transfer Revenue? = $41MM REVOLUTION [soncrrnancoct | $in millions Of
Slide 29: Value Components
Value Components net2phone Unified Communications Subscription Revenue? = $43MM $in millions Of Revenue less July 3 Fiscal Year End BA% Bircet Cost % Subscription Revenue $12 45% 40% $10 35% $8 30% 25% 36 20% $a 15% 10% $2 3% $0 0% 9320 a4 20 21 aa oat mms Subscription Revenue Subscription Revenue G
Slide 30: Valuation - Sum of the Parts Suggests Potential Upside
Valuation - Sum of the Parts Suggests Potential Upside a ee) RETAIL CE) soisnens BOSS netzphone POS Network Revenue? = $26MM Industry Multiples = 10x - 15x IDT’s Ownership = 83.5% Implied = $213MM - $320MM Money Transfer Revenue? = $41MM Industry Multiples = 5x - 7.5x IDT's Ownership = 100% Implied
Slide 31: Financials
31 FINANCIALS Footnotes Balance Sheet P&L Non-GAAP Reconciliation
Slide 32: Footnotes
Footnotes Throughout this presentation, Adjusted EBITDA is a Non-GAAP measure intended to provide useful information that supplements IDT’s or the relevant segment's results in accordance with GAAP. Please refer to the Non-GAAP Reconciliations at the end of this presentation for an explanation of th
Slide 33: Financials - Balance Sheet
FINANCIALS - Balance Sheet Balance Sheet* As of April 30, 2021 (in millions of USD) Assets Cash and cash equivalents 84.0 Trade accounts payable 314 Restricted cash and cash equivalents 1110 ‘Accrued Expenses 126.1 Debt securities 169 Deferred revenue 428 Equity Investments 268 Customer Deposits 110
Slide 34: Financials - P&L
FINANCIALS « P&L a Profit & Loss (in millions of USD, except per share data) Fiscal Quarter Fiscal Year to Date 1020. -2Q20 -3Q20, 4020, 1021S 2Q21 3021 3Q20-3Q21 Revenue 340.2 323.9 «3213 360.3 348-4 3398 = 373.8 985.4 1,057.0 Direct cost 2795 262.7 «258.8 =. 283.0 -273.2,- 269.1 300.8 801.0 843.1
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation Revenue less direct cost percentage is a financial metric that measures changes in our revenue relative to changes in direct cost of revenue during the same period Revenue and direct cost of revenue in this metric are from IDT's consolidated statements of operations in accord
Slide 36: Non-GAAP Reconciliation, continued
Non-GAAP Reconciliation, continued Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income (loss), on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT's historical operating results, i
Slide 37: Financials - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation a Reconciling Adjusted EBITDA to Income (Loss) from Operations (Slide 5) for IDT Corporation For nine months ended April 30 2018 2019 2020 2021 (USD in millions) Adjusted EBITDA. 21.4 23.4 24.6 52.3. Depreciation and amortization (17.2) (16.9) (15.7) (13.4) Sever
Slide 38: Financials - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation Adjusted EBITDA less CAPEX Reconciling Adjusted EBITDA to Income (Loss) from Operations (Slide 27) Cumulative three years ending Q3 FY 2021 (UsD in millions) Traditional net2phone Communications _Corporate Net UCaasS Fintech Total Adjusted EBITDA 209 (27) 183 (29
Slide 39: Financials - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation a Adjusted EBITDA Less CAPEX Reconciling Adjusted EBITDA to Income (Loss) from Operations (Slide 29) for Traditional Communications + Corporate (USD in millions) FY 2017 FY 2018 FY 2019 FY 2020 TTM 2021 Adjusted EBITDA 47.9 56.5 52.9 52.6 71.8 Depreciation and am
Slide 40: Financials - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation a Reconciling Adjusted EBITDA to Income (Loss) from Operations (Slide 34) for IDT Consolidated (USD in millions) Fiscal Quarter Fiscal year to date 1020 2020 3020 420 1a21 2a21 3021 3020 3021 Adjusted EBITDA 73 74 99 22.4 18.1 16.3 179 24.6 523 Depreciation and a
Slide 41: Thank You
Thank You