Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global Communications — Sidoti & Company Seventh Annual Emerging Growth Institutional Investor Forum 2003
24 slides from Ziff Davis's conference presentation, Apr 9, 2003
Slide 1: Investor Presentation (Based upon Fourth Quarter & Year-End 2002 results)
E Sidoti & Company, LLC Seventh Annual Emerging Growth Institutional Investor Forum April 9 & 10, 2003 at The Grand Hyatt Hotel, New York City j2 Global Communications www.j2global.com ™ Investor Presentation (Based upon Fourth Quarter & Year-End 2002 results) April 2003
Slide 2: Safe Harbor for Forward-Looking Statements
j2)Global" 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 1965, particularly those contained in the slides enttled “Tax Considerations (2003)" and "2003 F
Slide 3: Risk Factors
j2)Global Risk Factors The following factors, among others, could cause our business, prospects, fhancial condition, operating results and cash flows to be materially adversely affected! ‘Inability to sustain growth in our customer base, reverie or profitability ‘Competition in price, quality, featu
Slide 4: j2 Global delivers business critical communication and messaging services
j2)Global j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world. 4 52) clonal communications, tne.
Slide 5: Brands and services logos
j2)Global @ifax.com A) eax . @ Okf¥ax Consensus j2). jConnect 5 42) Global commu
Slide 6: What we do: inbound and outbound messaging
j2) Global Inbound (Receive) What we do... Peto Proprietary IP Control Structure 975+ Cities tbat Worldwide Voicemail Outbound (Send) — Ca Create a document Subscriber 6 42) Global Communication, nc. Proprietary IP Control Structure
Slide 7: Unique Assets
Unique Assets 4.3 million subscribed phone numbers Global advanced messaging network * 1,000+ cities in 18 countries on 5 continents + 5,5MM+ unique telephone numbers (DIDs) worldwide, and growing Patented technology +5 issued U.S. Patents, with 9 Patents pending Expertise + Telecom, messaging, Inte
Slide 8: Market Sizes
j2)Global Market Sizes Fax + Estimated multi-billion dollar annual spend on transmission costs worldwide, of which approximately one-half is estimated to be for the inbound receipt of faxes + j2 Global is estimated to have 40%+ of the inbound fax supplier market Voicemail + 76MM+ enterprise voicemai
Slide 9: Sales Channels
j2)Global Sales Channels Web * Target individual users * Targeted marketing over the Web + Use of Web-based marketing tools Corporate * Direct sales force to SMEs and large corporations * TeleSales to smaller businesses wrww_j20orporate.com * Resellers Licensed Services + Opportunistically license j
Slide 10: Corporate Channel Markets
j2)Global Corporate Channel Markets ¢ Financial institutions + Law firms & corporate legal departments + Real estate + Hospitality + Medical * Government ¢ Remote workers & “road warriors” Critical Features * Security * Privacy + Efficiency + Cost 10 52) clonal communications, tne.
Slide 11: Deployed DIDs by channel
j2)Global 270,000 = 250,000 2 & 230,000 @ 210,000 @ 190,000 170000 2 150,000 190,000 iajs1/ ao | a1/zaas [e/a | 9/2 [ays 202 Corporate Ml 20,000 23,265 22,480 34,480 43,531 Web Paid I 170,000 183,044 197,996 212,001 225,863 ft pa bs [sano | arson | ane | aaa | ao Tree azn [aa | aan | ase] aren haat
Slide 12: Metrics
j2)Global Metrics Qi02 9202, Q3'02_— 402 Paid Web Channel Number of Deployed DIDs 183,844 197,996 212,001 226,863 Net DID Additions 13,844 14,152 14,005 14,862 ARPU / Month $12.79 $13.13 $13.42 $13.62 Corporate Channel w Number of Deployed DIDs 23,265 28,480 34,480 43,331 Net DID Additions 3,265 5,2
Slide 13: Global Network Presence
j2)Global Global Network Presence j2 Global Network | Asia/Pacific The Americas Europe 1,000+ ci s in 18 countries on 5 continents 110 be deployed B 52) clonal communications, tne.
Slide 14: Product Roadmap
j2)Global 4 Ip a Fax Document Management Inbound Fax to Ema + ProtoFax® + Outbound Fax via Email * Messenger + Fax broadcasting + HotSend® + Secure fax + PaperMastera3/022 +0cr + PaperMaster+ + Fax storagefarchive + New notification methods I Curently offered I Future cpportunities Product Roadmap U
Slide 15: Competition: Barriers to Entry
j2)Global 15 Competition: Barriers to Entry Global Network + 1,000+ cities in 18 countries on 5 continents + Built & maintain 54 Telco relationships + Access to 5.5MM+ local telephone numbers (DIDs) Critical Mass of Subscribed DIDs + 4,0MM+ “Free” DIDs provides meaningful advertising revenue + Large
Slide 16: Financial Highlights
j2)Global Financial Highlights 52) clonal communications, tne.
Slide 17: Revenue Growth
3 2 2 oO a Ss | Revenue Growth ‘orica Hist 23 consecutive quarters of revenue growth zo, 60 zo, £0 zo, 20 zo, 10 To, +0 To, £0 10,20 To, 10 00, 0 00, £0. 00, 20 00, 10 66, 60. 66, £0 66,20 66,10 26,60 26, £0 86,20 86,10 26,60 26,60 26,70 26,10 $16.0 $14.0 $12.0 $10.0 $8.0 (suo) $6.0 $4.0 $2.0 $0.0 2
Slide 18: Quarterly Revenue
j2)Global Quarterly Revenue 2001 2002 Qi Q2 Q3 Q4 Subscriber 49,370 $10,427 #11551 $12,956 Quarter-to-Quarter Growth RA% 113% 10.8% 122% Year-to-Year Growth Advertising 827 705 783 715 Quarter-to-Quarter Growth 77% “14.8% 111% 7% Year-to-Year Growth Licensed Srvs & Other 183 174 1 354 Total Revenue
Slide 19: Quarterly Revenue by Channel
Quarterly Revenue by Channel 2004 2002 Qi Qe Q3 4 Web 97,733 $8,292 $9,031? ~~ ga,s4q ‘Quarter-to-Quar ter Growth 6.2% 72% BM 9.0% Year-to-Year Growth Corporate 2,464 2840 3303 —3,g27 ‘Quarter-to-Quarter Growth 222% 15.3% 16.3% 15.9% Year-to-Year Growth Licensed Services 166 159 160 185 Other 7 5 9
Slide 20: Cost Trends
j2)Global 20 (Millions) $4.0 $3.5 $3.0 $2.5 $2.0 $L5 $1.0 $0.5 $0.0 Cost Trends Sales & Marketing’ Engineering —_ Ol 9401 = QL 02 Q202_— BZ = Q4'02 In Q4 2002, excludes a cne-time recovery of a marketing payment af $694,000 52) clonal communications, tne.
Slide 21: Earnings & Free Cash Flow
j2)Global 24 Earnings & Free Cash Flow bees 5 7 Q (millions) 5 1 fee io Qror quez qioz [NGAP Net Earnings free Cash Flow* qs'oz qeoz ‘Net cash provided by operating activities, less purchases of FFRE. Free Cash Flow amounts ‘are not meant as a substitute for GAAP, but are solely for informational pu
Slide 22: Tax Considerations
j2)Global Tax Considerations Net Operating Loss (NOL) + $115MM in total NOL + $65MM substantially unusable (due to change of control) + Approx. $50MM currently available to off-set 2002 and future taxes Tax Credits + California R&D tax credits + Stock Option off-sets California Taxes + State suspend
Slide 23: 2003 Financial Guidance
j2)Global Revenue EBT per Share () Net Earnings Per Share (2) © Earnings Before Taxes 2003 Financial Guidance Q2 2003 Q2 Earnings Release April 21, 2003 4:30pm EST Listen @ www. j2Global.com Year-End 2003 $66.0 — $69.0MM $1.75 - $1.95 $1.65 — $1.85 ©) Assumes fully diluted shares of 12,356,279; the
Slide 24: j2 Global
j2). Global