Slide 1: Investor Presentation (Based upon third Quarter 2008 results)
Investor Presentation (Based upon third Quarter 2008 results) November 3, 2008
Slide 2: Safe Harbor for Forward-Looking Statements
Future operating results Subscriber growth, retention and usage levels Fax and voice service growth New products, services and features Corporate spending Liquidity Network capacity, coverage and security Regulatory developments Taxes Certain statements in this presentation constitute “forward-looki
Slide 3: Risk Factors
Risk Factors Inability to sustain growth in our customer base, revenue or profitability, particularly in light of the uncertain U.S. or worldwide economy and the related impact on customer acquisitions, cancelations and credit card payment declines Competition in price, quality, features and geograp
Slide 4: Messaging/Communications as a Service
All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. Messaging/Communications as a Service
Slide 5: Core j2 Global Assets
Core j2 Global Assets 11.6 M Subscribed Telephone Numbers (DIDs) 1.2 M Paid DIDs Global Advanced Messaging Network 3 ,100 + cities in 46 countries on 5 continents 17.3M + unique DIDs worldwide in inventory Intellectual Property 57 issued patents and l icensing programs designed to monetize the portf
Slide 6: Subscriber Acquisition
Individuals Targeted marketing (search, online media and radio) Sold through: eFax.com, eVoice.com, Onebox.com, PhonePeople.com, Fax.com, j2.com and other brand Websites Use of proprietary Life Cycle Management Advertising, Up-selling, and Calling-Party-Pays revenue supports the Free base Small to M
Slide 7: Eight Drivers for Paid DID Additions
Eight Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness driven by demand-generation programs and “word of mouth” Search engine discovery Accounts for over 40% of monthly paid DID sign-ups Free-to-Paid subscriber upgrades Life Cycle Managem
Slide 8: Global Communications
Global j2 ), Communications {2 Global Communications 2008
Slide 9: Q3 2008 GAAP Results
(1) Includes SFAS 123(R) non-cash compensation expense. (2) Includes SFAS 123(R) non-cash compensation expense, net of tax benefit. (3) See slide 19 for computation of free cash flow. GAAP Results GAAP Revenues $61.6M Gross Profit/Margin (1) $49.9M 81.0% Operating Profit/Margin (1) $25.2M 40.9% GAAP
Slide 10: Global Communications
Global j2 ), Communications {2 Global Communications 2008
Slide 11: Doing Well in a Weak Economy
Disciplined Recessionary Expense Management Started in 2007 Continue marketing spend on strict ROI basis resulting in best EPS ever Greater network efficiencies resulting in improved Gross Margin Maintain minimal growth in headcount Opportunity to renegotiate contracts, deeper relationships cost les
Slide 12: Fax Services Update
Corporate Continues to Win Big Accounts 7 signed in Q3 + 2 upgrades = 9 incremental large enterprise deals Currently have 60 large enterprise accounts 66 active large deals in pipeline eFax Individual Domestic Continues to Command Price Premium Innovative feature release for enhanced value and produ
Slide 13: Voice Services Update
Growing with Four Brands ~ 180,000 DIDs Believe to be Largest Player in Marketplace Deployed DIDs Revenue Growth rate Geography - selling into 3 large markets (US and Major EU cities) Proceeding Well with Integration of Phone People Evolving Brand Strategy Taking Leadership Position in Educating Mar
Slide 14: Global Communications
Global j2 ), Communications {2 Global Communications 2008
Slide 15: Assumptions for Q4
Economy Weaker than any previous quarter this year (negative growth in US) Weakness in Europe Post Thanksgiving malaise Business Days Usual loss of 5 business days relative to Q3 due to the holidays Additional lost business day due to poor economy Each business day is $200K in variable revenue Opera
Slide 16: 2008 Guidance
2008 Guidance $1.45 - $1.65 GAAP EPS $240 - $270 Revenues (M) 2008 EPS is based on GAAP which includes SFAS 123(R) non-cash compensation expense, net of tax benefit.
Slide 17: Global Communications
Global j2 ), Communications {2 Global Communications 2008
Slide 18: Revenues, DIDs, Financials Metrics
Revenues DIDs Financials sD) Blobal ), Communications Metrics j2tiseaiConnitin
Slide 19: Computation of Free Cash Flow
(1) Net cash provided by operating activities, less purchases of property & equipment. Free Cash Flow amounts are not meant as a substitute for GAAP, but are solely for informational purposes. Computation of Free Cash Flow ($ in millions) Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Net c
Slide 20: Usage of Corporate and Web High Volume Users
Usage of Corporate and Web High Volume Users
Slide 21: Global Communications
j2) Global Communications