Slide 1: Investor Presentation Second Quarter 2002 Results
j2 www.j2global.com ™ Investor Presentation Second Quarter 2002 Results July 2002
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, These forward looking statements are based on management's current expectations or beliefs as of July
Slide 3: Risk Factors
j2) iota Risk Factors The following factors, amorg others, could cause actual resuits to alffer materially fom those cbscribed! in the JorwarcHiooknng statements: ‘Inability to generate greater revenues and profits from unified communications, messaging, conference caling, broadcast faxing and adver
Slide 4: j2) iota
j2) iota j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world. 4 42) clobat Communications, inc.
Slide 5: Investment Considerations
j2 Global Investment Considerations Participate in large, established & growing markets + Fax + Voicemail + Conference Calling + Unified Messaging Proven business model + Monthly recurring revenue model * 3 Sales channels Assets * Customer base & brand awareness Global network Patents Financial posi
Slide 6: Assets
j2 Global Assets 4.5 mi Global advanced messaging network * 800+ cities in 18 countries on 5 continents lion subscribed phone numbers + 5+ MM unique telephone numbers worldwide, and growing Patented technology and product roadmap + 5 issued U.S. Patents, with 9 Patents pending Strong financial posit
Slide 7: Market Size
j2 Global Market Size Fax + Est. $90+ B annual spend on transmission and supply costs + Installed base of 27+ MM machines in the U.S. and growing Voicemail + 76+ MM enterprise voicemail boxes in use at end of 2000 + Expected 140+ MM enterprise voicemail boxes by end of 2005 Conferencing Services Est
Slide 8: Sales Channels
j2 Global Sales Channels Web + Targeted marketing to individuals over the Web + Use of Web-based marketing tools + Target individual users Corporate + Direct sales force to SMEs and large corporations * Tele-sales to smaller businesses * Resellers Licensed Services + Focused on large-scale opportuni
Slide 9: Web Channel Services
j2 Global Web Channel Services Faxing ¢ Inbound receipt of faxes into a subscriber's personal Email Inbox + Desktop sending (format independent) + Unique subscriber telephone number Unified Messaging + Faxing + Inbound receipt of voicemail into a subscriber's personal Email Inbox + Web-initiated Con
Slide 10: Web Channel Overview
j2 Global Web Channel Overview Revenue Sources + Monthly recurring * Usage-based * Advertising Marketing * Word of mouth / Branding / Advertising * Cost-per-Acquisition (CPA) deals + Lifecycle Management — Continually improve the quality of our customer base by evaluating all subscribers for margin
Slide 11: Corporate Channel Services
j2 Global Corporate Channel Services Faxing * Inbound receipt of faxes into a subscriber's personal Email Inbox (secure & private) * Desktop sending (format independent) * Web-based Broadcast Faxing * Centralized on-line account management * Real-time telephone number provisioning * Advanced billing
Slide 12: Corporate Channel Overview
j2 Global Corporate Channel Overview Revenue Sources + License fees + Monthly recurring * Usage-based Marketing + Direct sales force + Telemarketing / TeleSales + Web-generated leads * Leads from existing databases of Web channel customers Status (as of 6/30/02) + 1,100+ corporate clients + 29,000+
Slide 13: Corporate Channel Customers
j2) iota Corporate Channel Customers (Sample list) * Wells Fargo Mortgage © The Federal Reserve Bank * AT&T * NovaStar Mortgage ¢ Sony Pictures « New York Times ¢ HJ Heinz « H&R Block Mortgage 2B 42) clobat Communications, inc.
Slide 14: Licensed Services Channel Overview
j2 Global Licensed Services Channel Overview Offerings + 42 Global’s network, application capabil services integrated into 3" party offerings + Licensing of j2 Global's intellectual property and know how + Royalty revenue from non-core assets Marketing * One-on-one meetings and negotiations + Large
Slide 15: Global Network Presence
j2 Global Asia/Pacifica 15 Global Network Presence The Americas Pag Europe = to be deployed 42) clobat Communications, inc.
Slide 16: Messaging & Communications Network
Messaging & Communications Network 52Glob al inbound Services Be? season a4 v8 it 16 42) ‘Global Communications, in.
Slide 17: Patented Technology
j2) iota Patented Technology U.S. Patent No. Description 6,208,638 Method and Apparatus for transmission & retrieval of Fax and Audio messages over a circuit or packet switched network 6,073,165 Filtering computer network messages directed to a user’s Email Inbox through user-defined filters and for
Slide 18: Industry Accolades
J2) siovai Industry Accolades + a MVP Finalist Far 500 F750 G2 Global Named i Fastest 2 blob af Named 30h Growing Technology Frain Fastest Growing Techookoy 20s Angeks Firm io Nor America For2004 ‘For 2004 100 Best Wee Sites ‘for entrepreneurs 2001 ~ “Transmit It” Category 18 42) clobat Communicatio
Slide 19: Product Roadmap
j2) iota Inbound Fax to Emal + Outound Fax via Email + Fax broadcasting OCR + Fax storagefarchive + Seaure fax send Breceve + New notification methods 19 Voice Services Inbound VM to Email + Voigemal management + Telephone access + Web-based Conference Calling + Enhanced woicemal + Find me/Follow me
Slide 20: Financial Highlights
Financial Highlights
Slide 21: Revenue Growth
| Revenue Growth ‘orica Hist 84% CAGR $12.0 $10.0 $8.0. $6.0: (suot) $4.0: $2.0. $0.0. 20,20 20, 10 10, 50 To, To, zb 10, 10 00, 5 00, £0 00, 20 00, 1 66,50 66,€0 66,20 66,10 96, 60 96,€0 96,20 96,10 £6, 60 46,0 46,20 46,10 42)* clobat Communications, inc 24
Slide 22: Net Earnings / EBITDA
J2) siovai Net Earnings / EBITDA $5.0 $3.0 $1.0 yess (Millions) $5.0 $7.0 Q2‘00 g3'00 Q4'00 Q101 Q2°01 Q3'01 Q4'01 Qi‘02 Q2‘02 Net Income BEBITDA 2 42) ‘Global Communications, in.
Slide 23: Condensed Q2 2002 Income Statement
j2) iota Condensed Q2 2002 Income Statement (Thousands) ‘Three monthsended tune 3, me a Total revenue 11306 768 Total costo revenue 2701 p63 ‘ess profit p05 4300 Total operating expences 551 eed Operating income (less) apes @028) Other income (expense), nt 22 am Neteanings (oss) 3318 a7 Cumulative c
Slide 24: Quarterly Revenue by Type
J2) siovai Subscriber Quarter-to-Quarter Growth Advertising Quarter-to-Quarter Growth Licensed Srvs & Other Total Revenue Quarter-to-Quarter Growth 24 Quarterly Revenue by Type 2001 2002 Qi Q2 Q3 Q4 Qi Q2 $5,813 $7,290 $7,676 $8,355 «49,370 $10,427 25.4% 5.3% 8.9% 12.1% 11.3% w2 247 652 8% 827 705 2
Slide 25: Quarterly Revenue by Channel
j2 Global Quarterly Revenue by Channel 2001 2002 Qi Q2 Q3 Q4 Qa Q2 Web $4859 $6,205 $6,678 $7,232 $7,733 $8,292 Quarter-to-Quarter Growth 27.7% 7.6% 8.3% 6.9% 7.2% Corporate 1295 1,332 1650 2020 2,464 «2,840 Quarter-to-Quarter Growth 2.9% 23.9% 22.4% 22.0% 15.3% Licensed Services 316 326 241 314 182
Slide 26: 2002 Financial Performance Guidance
j2 26 Global 2002 Financial Performance Guidance (Revised 7/22/02) Quarterly Revenue Growth Rates by Channel + Web Channel: 5% - 10% * Corporate Channel: 10% - 33% * Licensed Services: Flat with historical revenue EBITDA Flow-Through of Incremental Revenue + Q3: 30%+ + Q4: 50%+ Annual Estimates Reve
Slide 27: Condensed Balance Sheet at June 30, 2002
j2 Ee Global Condensed Balance Sheet at June 30, 2002 (Thousands) ASSETS (Cath and cach equivalete (Other curent aczete Total cutent assets Fumitur,fotures and equipment net Goodwill. othr purchased intangibles, nat Other assets Total azcets LIABILITIES AND STOCKHOLDERS EQUITY ‘Accounts payable and
Slide 28: Key Events in Q2 2002
j2 Global 28 . o ° o Key Events ce Qi 2002 Launched new & improved Web-based Conference Calling service Silpasced 800 locations around the world where j2 and eFax offer local telephone numbers j2 Global’s Corporate client base topped 1,100 and 29,000 telephone numbers agement and jated in late-2001
Slide 29: Global
j2). Global