Slide 1: Investors Presentation (Based on Second Quarter 2012 Results)
‘(j2 G lobal Investors Presentation (Based on Second Quarter 2012 Results) August 1, 2012 Cloud Services for Business j2),| Pekax’ eVoice’ rusemail” campaigner XKeepitSate’ Wonebox"
Slide 2: Safe Harbor for Forward-Looking Statements
(i2)) Safe Harbor for Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1996, particularly those contained in the “2012 Guidance” slides. These forward-looking statements are based
Slide 3: Risk Factors
( i2)) Risk Factors The following factors, among others, could cause our business, prospects, financial condition, operating results and cash flows to be materially adversely affected: * Inability to sustain growth or profitability, particularly in light of an uncertain U.S. and worldwide economy an
Slide 4: Financial Highlights
( i2)) Financial Highlights j2),| @efax’ eVoice” &)FuseMail” campaigner” WAKeepliSafe Wonebox’
Slide 5: Q2 2012 GAAP & Non-GAAP Results
a a Q2 2012 GAAP & Non-GAAP Results Q2 2012 Non-GAAP Q2 2012 GAAP $ Margin Revenues $89.5M Gross Profit/Margin © $73.3M 81.9% Operating Profit/Margin © $40.0M 44.7% Eps © $0.67/Share Free Cash Flow @ Cash and Investments $206.8M $ Margin $89.5M $73.5M 82.1% $42.2M 47.2% $0.70/Share $45.6M Non-GAAP e
Slide 6: j2 Update
( i2) Update @eFax’ Moice’ &X)FuseMail” “campaigner "KeepliSafe’ Wonebox”
Slide 7: Lowest Cancel Rate
j2)) Lowest Cancel Rate ~ * Cancel Rate at Historical Low * Improving Year-over-Year Cancel Rate * Cancel Rate Reduction of 0.1% saves almost $1.7M in annual customer acquisition cost Cancel Rate) 3.5% 35% 3.3% 3.3% sox 3.0% “ 2009 2.8% 2.7% = 2010 2.6% = 2011 2384 2012 2.3% + 2.0% a1 Q2 a3 Qa @) ca
Slide 8: Diversifying Revenue
(j2)) Diversifying Revenue Revenue Breakdow! Q2 2012 vs. Q2 2011 CRM 156 Backup 1% Backup 19 © Diversifying Revenue Mix by Source and Service 1% * Fixed Revenue Mix is up -More Guaranteed * Non-fax Business $78MM Annual Run-Rate and Growing, a 39% Increase vs. Q2 2011 $56MM 60% Annual Run-Rate 40% 2
Slide 9: Rationale Behind $250MM Raise
2) Rationale Behind $250MM Raise * First Opportunity to Access the High Yield Market * Size of j2 * Ability to demonstrate M&A success ona large scale (Protus®) * Capital with an8 Year Tenor * Attractive Market Conditions * Interest Rates at Historic Lows (net effective after tax rate of < 5.0%) * P
Slide 10: 2012 Financial Outlook
( i2)) 2012 Financial . Outlook j2),| @efax’ eVoice” &)FuseMail” campaigner” WAKeepliSafe Wonebox’
Slide 11: Senior Unsecured Notes Summary Terms
(i2)) Senior Unsecured Notes Summary Terms * Issued $250 Million of 8.000% in Senior Notes due 2020 in a Private Placement * Net Proceeds for General Corporate Purposes, which may include Acquisitions 2 Global, Inc. (“j2” or the “Issuer”) Senior Unsecured Notes $250 mi jn General corporate purposes,
Slide 12: Pro Forma Capitalization & Ratios
(i2)) Pro Forma Capitalization & Ratios $250 Million Senior Unsecured Notes @r3072012 @73072012 Actual Adjustment ProForma_ % of Total Total Cash & Investments $ 2068 $ 2435 $ 4508 Total Debt $. $ 2500 $ 2600 15.5% Total Market Capitalization ? $ 19645 $ - $ 1,3845 84.6% EBITDA - LTM 6/30/12 $ 183
Slide 13: 2012 Guidance Reaffirming
(i2)) 2012 Guidance Reaffirming Guidance Revenues $345M - $365M Non-GAAP EPS (1) ~ equal to 2011 yroll taxes, net of tax. It is anticipated that the normalized tax 1e between 24% and 26%. 13 j2). @kFax’ «eVoice’ ®)FuseMail’ campaigner iKeepitSafe’ @onebox"
Slide 14: Quarterly Dividend
2) Quarterly Dividend Timing * Record Date — August 13th * Payment Date - August 29th Payment Amount * $0.22 Per Share * ~$10M of Cash Paid Quarterly 14 @eFax’ eoice’ ®)FuseMail’ «campaigner WKeepltSafe’ Wonebox”
Slide 15: Supplemental Information
f i2) Supplemental Information @kFax’ “eVoice’ ®)FuseMail’ “campaigner” WKeepitSafe’ Wi onebox"
Slide 16: ow ou no
ow ou no Qu Qe Q3 4 Qa Q2 Q3 Q4 Qa Q2 Total GAAP Revenves F a ee ee ee ee ee paaneat : eee eae nia ea rears Facing OE Nipowss : ea ees ee | a es mainicesiemes — ee =e a wa aa an ee ae eae Dae ae pr i ee pension 4 wa wise —aakes tase eat Bae Beat es) ees ot a F = =e 85 Be SL ee ott teremes i a eS a a
Slide 17: GAAP Reconciliation Free Cash Flow & EBITDA
(Sin mi illions) GAAP Reconciliation Free Cash Flow & EBITDA Free Cash Flow Net cash provided by operating activities Less: Purchases of property and equipment ‘Ad Excess tax (deficiency) beneft from share-based compensation ‘Addl IRS settlement oro e210 asta asta ort oat att aett ar2 a2 $o4608 9123
Slide 18: GAAP Reconciliation Non-GAAP Earnings and EPS
(i2)) GAAP Reconciliation Non-GAAP Earnings and EPS < i2 GLOBAL, mic, THREE MONTHS ENDED JUNE 30, 2012 ANID 2011 (UNAUDITED, I THOUSANDS, EXCEPT SHARE AIID PER SHARE AMOUNTS) THREE MONTHS ENDED JUNE 30, 2012 THREE MONTHS ENDED JUNE 30, 2014 @ Q a) Gain on a) ‘Acquistion Share-hased Sale of Share-has
Slide 19: j2 Global - Cloud Services for Business
lobal Cloud Services for Business @eFax’ Moice’ &X)FuseMail” “campaigner "KeepliSafe’ Wonebox” Ag.