Ziff Davis, Inc. · NASDAQ:ZD
Ziff Davis — j2 Global Communications — Investor Presentation (February 2002)
32 slides from Ziff Davis's investor presentation, Feb 21, 2002
Slide 1: Global Communications Investor Presentation February 2002
Global Communications www.j2global.com Investor Presentation February 2002
Slide 2: Safe Harbor for Forward-Looking Statements
2 Safe Harbor for Forward-Looking Statements Cartan statements in this presentation consttute Toward iookng statements" withh the meaning of the Prvate Secumies Lilgation Retoim Act of 1695, These foward okra statements ae based on managements cunert excectatons of belets as of Febvusry 12, 2002 and
Slide 3: Risk Factors
2 ). Global Communications Risk Factors The folowing factors, amore othars, could cause actis! results to aiff material hom those chserbad'in the forwarding statements! ‘Inability to generate grester reverues and profits fiom uniied communications, messaging, conference caling, broadcast faxing and
Slide 4: j2 Global Communications
). Global Communications j2 Global Communications delivers business critical communication and messaging services to individuals and corporations throughout the world.
Slide 5: Investment Considerations
2 ). Global Communications 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 + P
Slide 6: Assets
2 ). Global Communications Assets More than 4 million customers Global advanced messaging network + 550+ Cities in 18 Countries on 5 Continents + 5+ MM unique telephone numbers worldwide, and growing Patented technology and product roadmap + Sissued U.S. Patents, with 8 Patents pending Strong financ
Slide 7: Market Size
2 },, Global Communications 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 Confere
Slide 8: Sales Channels
2 },, Global Communications Sales Channels Web + Targeted marketing to individuals over the Web + Use of Web-based marketing tools + Target individual users Corporate ct sales force to SMEs and large corporations + Tele-sales to smaller businesses + Resellers Licensed Services * Focused on a few lar
Slide 9: Web Channel Services
2 },, Global Communications Web Channel Services Faxing * Inbound receipt of faxes into a subscriber's personal Email Inbox * Desktop Sending (format independent) + Unique subscriber telephone number Unified Communications + Faxing + Inbound receipt of voicemail into a subscriber's personal Email In
Slide 10: Web Channel Overview
2 },, Global Communications Web Channel Overview Revenue Sources + Monthly recurring + Usage-based + Advertising Marketing + Word of mouth/Branding + Cost-of-Acquisition (COA) deals + Lifecycle Management — Continually improve the quality of our customer base by evaluating all subscribers for margin
Slide 11: Corporate Channel Services
2 },, Global Communications 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
Slide 12: Corporate Channel Overview
2 ). Global Communications Corporate Channel Overview Revenue Sources * License fees + Monthly recurring + Usage-based Marketing + Direct sales force + Telemarketing + Web-generated leads + Leads from existing databases of Web channel customers Status (as of 12/31/01) + 800+ corporate clients * 20,0
Slide 13: Licensed Services Channel Overview
2 },, Global Communications Licensed Services Channel Overview Offerings + 2's network and application capa integrated into 3" party offerings + Licensing of j2’s intellectual property and know how Marketing + One-on-One meetings and negotiations + Large deal focus for services integration + Opportu
Slide 14: j2 Network Global Presence
). Global Communications j2 Network Global Presence j2) Global Communications
Slide 15: j2's Advanced Messaging Network
j2). Global Communications j2’s Advanced Messaging Network
Slide 16: Patented Technology
2 },, Global Communications 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-defi
Slide 17: Industry Accolades
j2 ) Global Communications Industry Accolades MVP Finalist FST 50 homed atest amed Faroe sowing Tehnaegytim — SroningTecinlgy Fe ‘Sine ‘SRerbdnaes 100 Best Wee Sites Stor raat category
Slide 18: Product Roadmap
2 ). Global Communications Product Roadmap Unified Electronic voice Conference Document Messaging Fax services Services Handling & Comm. Services + InboundFax to Email + Inbound vMto Email + Web-based + ProtoFac® + Integrated Email, + Outbound fax vie Email » Vicemall management conference caling +
Slide 19: Financial Highlights
j2). Global Communications Financial Highlights
Slide 20: Five Year Revenue Growth
2 ) Global Communications Five Year Revenue Growth (rations) ISS PP POSS 20
Slide 21: Pro Forma EBITDA
tions j2). Global Communit Pro Forma EBITDA $10 sol a” afi 10 20 $30 Q1'00 G20 Q3'00 Q4'00 Qt‘ot Q2'or Qs'01 Qo vuttions)
Slide 22: evtons
j2). evtons Bobet 2 $5.0 @i'00 Q2'00 q3'00 gH'00 gre: Qz'or Qs'at geo 2
Slide 23: Quarterly Review by Channel
2 ). Global Communications Quarterly Review by Channel Qa Q2 Q3 Qa 2001 Web $4,873 $6,205 $6,678 $7,232 $24,989 Corporate 1295 1,332 1,650 2,020 6,298 Licensed Services 301 326 241 314 1182 Other (incl.nardware) 742 0 28 14 784 Total Revenue $7,212 $7,864 $8,597 $9,580_ _ $33,253 2
Slide 24: Q4 Income Statement
2) Global Communications Q4 Income Statement ae 9 __sme "anno teHoee smo _sos re eo TEE 5a 24
Slide 25: Pro Forma Adjustments
j2 ). Global Communications Pro Forma Adjustments Pro foima amaunis are rot meant asa subs flute for GAAP, but are solely for informational purposes. The following table illustrates the adjustments and reconciles exo forma data to that reported in the fnarcid statements, (in Thousands) Three months
Slide 26: Balance Sheet at December 31, 2001
tions j2). Global Communi Balance Sheet at December 31, 2001 (Thana) assets Desembac st 20 Caehand each eqitets soar ‘eonate rose nt ca Fait, teres ad eaupent. et se Deel ater thane eagles, ne 38 Lmatumes ato srackHoLcers' equ Decors pale shane expencer ner Reonngemtoone 2B Lengtor dt @ capa ecee sr
Slide 27: Projections at 10/30/00 vs. Historical Financials
j2 ). Global Communications Projections at 10/30/00 vs. Historical Financials so REVENUES Projected / Actual sas00 sno gas 983 snes — sasog #0 siz. 3 to 2 «0 gare 5 saad B wo 20 sao G40 ‘QL or G3 OL ‘Or OL $20 1.490 1.082 - fo sors = = gz 10 ? E10 0.721 90.700 = qo ~s.300 OPERATING CASH BURN Project
Slide 28: j2 Produces Cash
j2). Global Communications j2 Produces Cash (Millions) Cash (as of 12/31/00) $28.1 2001 Pro Forma Loss (0.3) Uses during 2001: - Equity Repurchases $5.6 - Debt Retirement 1.6 ~ Investment in Working Capital & Fixed Assets 33 Expected Cash (as of 12/31/01) $17.7 $19.1 Actual Cash (as of 12/31/01) j2
Slide 29: 2002 Financial Performance Guidance
2 ). Global Communications 2002 Financial Performance Guidance Quarterly Revenue Growth Rates by Channel + Web Channel: 5% - 10% * Corporate Channel: 10% - 33% + Licensed Services: Flat with historical revenue (Large opportunities, but not predictable) EBITDA Flow-Through of Incremental Revenue 10%
Slide 30: Key Events Since Q3 2001
2 ). Global Communications Key Events Since Q3 2001 Announced Expansion into Latin America + Signed deal to expand into Santiago, Buenos Aires, Bogota and Mexico City + Entered into reseller deal with FonBox Retained EKMS to maximize the value of j2’s Patent portfolio Total Quality Management progra
Slide 31: Key Events Since Q3 2001 (continued)
j2 ). Global Communications Key Events Since Q3 2001 (continued) Featured internet fax solution on Microsoft Office eServices’ Website Audiofax perpetual license agreement for store-&- forward patents executed Completed repurchase of j2 stock at attractive prices + 1.464MM shares or share equiv. pur
Slide 32: j2
j2). Global Communications
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