Slide 1: Investor Presentation (Based upon First Quarter 2006 results)
Investor Presentation (Based upon First Quarter 2006 results) April 25, 2006 www.j2global.com
Slide 2: Safe Harbor for Forward-Looking Statements
Future operating results Subscriber growth and retention Earnings growth and expectations New products, services and features Corporate spending Liquidity Network capacity and coverage Regulatory developments Taxes Certain statements in this presentation constitute “forward-looking statements” withi
Slide 3: Risk Factors
Risk Factors Inability to sustain growth in our customer base, revenue or profitability Competition in price, quality, features and geographic coverage Higher than expected tax rates or exposure to additional income or other tax liability Inability to obtain telephone numbers in sufficient quantitie
Slide 4: Trademark notice
All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally.
Slide 5: Core j2 Global Assets
Core j2 Global Assets 11.0 million subscribed telephone numbers (DIDs) Global advanced messaging network ~2000 cities in 29 countries on 5 continents 15.2 MM+ unique DIDs worldwide in inventory Patented technology A portfolio of 29 issued U.S. patents, and numerous pending U.S. patent applications,
Slide 6: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted Web marketing (e.g. AOL, MSN, Yahoo!, Google, CareerBuilder, Earthlink) Sold primarily through: www.eFax.com , www.j2.com, www.onebox.com and www.evoice.com Use of proprietary Life Cycle Management Advertising & Calling-Party-Pays revenue supports the Free
Slide 7: Paid Subscription Drivers
Paid Subscription Drivers Seven Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness Search engine discovery Accounts for up to 50% of monthly paid DID signups Free-to-Paid subscriber upgrades Life Cycle Management eFax Corporate SMB sales Hy
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Slide 9: Service Roadmap
All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. Service Roadmap
Slide 10: Individual/SMB Bring Your Own Number
Individual/SMB Bring Your Own Number Eliminate largest barrier to entry - no need to replace existing fax number Automated way for customers to port their fax numbers to j2 Significant enhancement of targeted customer base Replace traditional fax machine solution with eFax Service Reduces customer’s
Slide 11: Enhanced Online Features & Functionality
Enhanced Online Features & Functionality Increased storage size, capabilities and functionality Storage for all customers with longer archiving time Larger storage space addresses: Compliance Disaster Recovery Security New capabilities Searchable Fax OCR Various file formats All file types allowed,
Slide 12: eFax Developer
eFax Developer Now available at www.efaxdeveloper.com One-stop shopping for Enterprise Faxing Inbound routing via bar-code Expands eFax relationship with corporate customers
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Slide 14: Historical Revenue & Operating Earnings Growth
36 consecutive quarters of Revenue growth 17 consecutive quarters of Operating Earnings growth Historical Revenue & Operating Earnings Growth Operating earnings for Q1 2006 is based on Non-GAAP earnings. See Slide 20 for a reconciliation to GAAP.
Slide 15: Cost Trends
Cost Trends All margin data for Q1 2006 are based on Non-GAAP earnings. See Slide 20 for a reconciliation to GAAP.
Slide 16: Financial Guidance
Financial Guidance (1) Excludes non-cash compensation expense for SFAS 123(R). Assumes an effective annual tax rate of approximately 30% and 25.7 million fully diluted shares outstanding $0.55 – $0.57 $43.6 – $44.6 Q2 $2.24 - $2.36 Non-GAAP EPS (1) $181 - $191 Revenues (millions) Fiscal Year
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Slide 18: Metrics
Metrics Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Fixed Subscriber Revenues $16,021 $17,750 $19,122 $20,823 $73,716 $22,773 $23,756 $25,229 $26,963 $98,721 $28,537 Variable Subscriber Revenues 6,041 7,314 7,863 8,226 29,444 8,502 10,323 11,258 10,901 40,984 12,025 Subscriber Revenues $22,062 $25,063 $2
Slide 19: Computation of Free Cash Flow
(1) Net cash provided by operating activities, less purchases of property & equipment. Free Cash Flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes. Computation of Free Cash Flow ($ in millions) Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '0
Slide 20: GAAP Reconciliation
GAAP Reconciliation Reported Non-GAAP Revenues Subscriber 40,562 $ - $ 40,562 $ Other 1,456 - 1,456 Total revenue 42,018 - 42,018 Cost of revenues (1) 9,010 (109) (1) 8,901 Gross profit 33,008 33,117 Operating expenses: Sales and marketing (1) 6,864 (265) (1) 6,599 Research, development and engineer
Slide 21: j2 Global
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