Slide 1: IDT Corporation Investor Presentation
E—E as IDT Corporation (NYSE: IDT) Investor Presentation July 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 statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Slide 3: IDT Corp - Telecom, Technology and Media
IDT Corp - Telecom, Technology and Media ¢ IDT Telecom - Global provider of voice and payment services ¢ Fabrix - Video storage and processing software * Zedge - Social media platform for sharing mobile content * Other Assets - VoIP IP, Point-to-Point Spectrum, NOLs Genie Energy - Retail Energy and
Slide 4: Oil (AMSO)
~ Oil (AMSO) 50% Initiatives (TEI) 59%
Slide 5: Symbol
Symbol NYSE: IDT Corporate Headquarters Newark, NJ Stock Price // 52 Week Range $26.00 // $8.37 - $30.46 Shares Outstanding, 22.7 million Market Capitalization ‘$590 million Volume (daily 90-day average) 225 thousand Cash (Cash, cash equivalents and CD's) ‘$280 million Debt (primarily non-recourse)
Slide 6: Class B Common Stock
(Class B Common Stock (NYSE:IDT) ma $2600 S186 (Glass A Common Stock (Not Traded) 33 S200 S858 Total 2a 526.00 Sosa (Class B Common Stock Options os sxs12 Debt Capital Lanse Obligations oa Notes Payable su2
Slide 7: Strong Bottom Line Improvement
Strong Bottom Line Improvement Net Income Turn-around of $258 Million (USD in millions) Revenue Direct Cost Gross Profit Gross Margin % SG&A Research and Development Adjusted EBITDA Income (loss) from Operations Net Income (loss) attributable to IDT $1,511.9 $1,214.9 $297.0 19.6% $236.5 $10.0 $50.5
Slide 8: IDT Management
IDT} IDT corp. Howard S. Jonas is IDT’s Chairman and Chief Executive Officer. He founded the Company in August 1990 as a provider of innovative long distance telecommusnications services, Mr. Jonas received a B.A. in Economics from Harvard University Samuel (Shmuel) Jonas has served as Chief Operati
Slide 9: Integrated Product & Distribution Company
Integrated Product & Distribution Company Built Around Network Accessible Services * $1.3 billion in revenue (TTM) * $53.6 million of free cash flow (TTM) ¢ Top global carrier of international minutes ¢ Leading global provider of prepaid voice products * Driving top-line growth (13% YOY) organically
Slide 10: Portfolio & Channels
ortfolio & Channels Carrier - Wholesale Calling Cards | Gift Cards Retail | can shop Reloadable Debit Int'l Mobile Top-Up Remittance Reseller Voiceline Cable Telephony Mobile Apps Direct 10
Slide 11: Distribution Channels
Distribution Channels Retail * Market, distribute and sell prepaid voice and payment products arget immigrant communities via global distribution network apid growth for new products (Boss Revolution, IMTU) xpanding into remittance services Wholesale Carrier 10vide wholesale telecommunications voice
Slide 12: Minutes, Gross Profit, Deferred Revenue, Adjusted EBITDA
250 Minutes (into) 1500 4,300 4,100 900 700 500 2009 2010 rm Gross Profit 200 160 140 120 100 2009, 2010 om 20,39 t 7 Deferred Revenue 3ut-09 duba0 Apri Adjusted EBITDA 2009 2010 mm velve months ended April 30, 2011 (3011)
Slide 13: Video Storage, Processing & Delivery Platform
IDT.} Video Storage, Processing & Delivery Platform Superior technical solution for video applications * Cloud based DVR * Deep video storage * Video streaming + Advanced advertising (ad insertion & targeted ads) Current deployments / customer wins * US Tier One cable operator's cloud-based DVR offe
Slide 14: Zedge
www.zedge.net O Largest global personalization and entertainment (ringtones, wallpapers, apps, games, etc.) distribution platform for feature phones, Android smartphones and tablets * Viral growth with mobile community focus - 40MM+ monthly unique visitors and 6MM+ daily downloads * Leading Android
Slide 15: Other Assets: VoIP IP, Spectrum, NOLs
¢ IP for computer to computer (including VoIP) communications ¢ Nationwide point-to-point spectrum ¢ Net Operating Loss (NOL) carry forwards significantly reduce effective tax rate
Slide 16: 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 electri & gas in wholesale markets for resale to end users * Delivery, billing & collections remain responsibility of incumbent utility Value Proposition * Custom
Slide 17: New Territories
L New Territories Pennsylvania - Electric only (PPL, PECO) New Jersey (PSEG, SIG) Total Planned Expansion 2011-2012 Pennsyl tric only (Remainder) inder) nia - El New Jersey - (Ret Total Prospective Markets Maryland, Ilinois, Connecticut ae oe Migrated 10,131 1,906 19% 16% 2970 2613 751 29% 2% 4,263
Slide 18: Oil & Gas - Strategic Vision
| Gas - Strategic Vision IDT} 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. - Increasing reliance on unconventional resources and approaches to meet demand growth an
Slide 19: In-Situ Recovery
nie’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 ~650°F the kerogen generates hydrocarbon liquids and gases ¢ In-situ extraction has significant technical and environmental advantages and
Slide 20: Oil & Gas - Strategy
_Gas - Strategy * 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 &
Slide 21: World Class Technology Team
IDT World Class Technology Team Harold Vinegar, Ph.D. (Harvard University), Chief Scientist, IEI Chief Scientist Royal Dutch Shell (retired), 32 years -¢ in unconventional resources, 266 US patents, National Academy Engincering, National Research Council, Associate Scientist at Ben-Gurion University
Slide 22: Strategic Advisory Board
Strategic Advisory Board Alan K, Burnham, PhD - Chief Technology Officer, American Shale Oil, LLC. Formerly research scientist at Lawrence Livermore National Laboratory; Dick Cheney - 46th Vice President of the United States, Formerly President and CEO of Halliburton Company, and U.S. Secretary of D
Slide 23: Exclusive oil shale exploration license in Israel
Covers 238 sq. km in south of Hashfela region Estimated 40 billion recoverable boe Subject to permitting and approvals Upon conclusion of successful pilot and declaration of discovery, IEI is entitled to a long term commercial lease License contains mechanisms for returning excess land to government
Slide 24: Israel oil shale deposits
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 25: AMSO is developing a federal RD&D lease
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 l = Total funding the majority of R&D expenditures, provides i technical expertise, and will operate commercial proje
Slide 26: Oil Shale Project Timeline
| Shale Project Timeline + a + >_> Two Years Two Years Two/Three Years Appraisal Phase Pilot Phase Demo Phase ‘ommercial Operations Conduct Design, construct Construct design and Scale up to full comprehensive and operate a pilot | | operate demo facility commercial geological survey facility operat
Slide 27: Strong, liquid balance sheet
*Strong, liquid balance sheet (see Appendix) - Cash, cash equivalents and CD’s over $12/share - Minimal goodwill & intangible assets - Mainly non-recourse debt *Core businesses are growing and generating Free Cash Flow - $78M in free cash flow in TTM from telecom and retail energy businesses - IDT T
Slide 28: Closing the Gap on Valuation
29 Closing the Gap on Valuation = Valuation aluation a °° Methodology Metr ae Brean) ES [eee ree) RRR) (SRNR) ((sanrsan SD CS sn Cash & Investments | Cash is Cash | | Cash Value $280M Free Options w ID
Slide 29: Appendix
Es APPENDIX
Slide 30: TTM - Twelve months ended April 30, 2011
Bl TIM ~ Twelve months ended Aor'30, 2011 (3011)
Slide 31: Balance sheet
Cash, marketable securities and short term investments 92801 $2353 $189.2 Accounts receivable $128.2 $105.2 $1387 Other current assets SUL. 5406 $35.0 Assets of discontinued operations S188 Total current assets $450.1 $381.4 $381.7 Property, plantand equipment, net $90.9 $95.9 $129.1 Intangible asse
Slide 32: Reconciliation of Non-GAAP Financial Measures
mn of Non-GAAP Financial Measures In addition to including financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT's investor presentation also included Adjusted EBITDA and Free Cash Flow, which are non-GAAP financ
Slide 33: Non-GAAP Financials
Non-GAAP Financials Reconciliation of Non-GAAP Financial Measures (continued from previous page) ‘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
Slide 34: Reconciliation of Non-GAAP Financials
of Non-GAAP Financials IDT Facts and Figures Page 5 oT Corporation (in tsa TIM Free Cash Flow (FCF) $ 18,283, Add: Capital expenditures 10,903 Net cash provided by operating activities 9 18% IDT Facts and Figures Ir Page 5 Corporation (tn thas TIM Adjusted EBITDA S 50519 Subtract (add): Depreciation
Slide 35: Reconciliation of Non-GAAP Financials
of Non-GAAP Financials IDT Consolidated Financial Overview Adjusted EBITDA s sms SaaS SRD Subtract) Depreciation and amortization auaas sas eas. Impairments 6 0) 31 Severance and other charges 128 ayy 872 Aitration award income (460.000 (Gains losses on setiements and other, net ass) 1008s) 2598) 95
Slide 36: Reconciliation of Non-GAAP Financials
of Non-GAAP Financials
Slide 37: IDT Corporation
IDT Corporation