Slide 1: First Quarter 2002 Results
j2 www.j2global.com ™ Investor Presentation First Quarter 2002 Results April 2002
Slide 2: Safe Harbor for Forward-Looking Statements
j2). Global Safe Harbor for Forward-Looking Statements Cartan statements in this presentation constitute Yorward looking statements" within the meaning of the Private Securities Litigation Rebrm Act of 1995. These ibrward iookng statements are based on management's current expectations or belafs as
Slide 3: Risk Factors
j2). Global Risk Factors The following factors, amorg others, could cause actual resuits to aiff materially fom those cbscribed! in the JorwarcHiooknng statements: + Inabilty to generate greater revenues and profits from unified communications, messaging, conference caling, broadcast faxing and adve
Slide 4: j2 Global delivers
j2). Global j2 Global delivers business critical communication and messaging services to individuals and corporations throughout the world.
Slide 5: Participate in large, established & growing markets
j2). Global Participate in large, established & growing markets + Fax Investment Considerations + Voicemail + Conference Calling + Unified Messaging Proven business model + Monthly recurring revenue model * 3 Sales channels Assets ¢ Customer base & brand awareness Global network Patents Financial po
Slide 6: Assets
Ny) 2 , Global Assets 4.5 mi Global advanced messaging network * 700+ cities in 18 countries on 5 continents lion customers + 5+ MM unique telephone numbers worldwide, and growing Patented technology and product roadmap + 5 issued U.S. Patents, with 9 Patents pending Strong financial position + Qi R
Slide 7: Market Size
Ny) 2 , Global 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 Conferencing Service
Slide 8: Sales Channels
Ny) 2 , Global Sales Channels Web + Targeted marketing to individuals over the Web + Use of Web-based marketing tools + Target individual users Corporate + Direct sales force to SMEs and large corporations * Tele-sales to smaller businesses * Resellers Licensed Services + Focused on large-scale oppo
Slide 9: Web Channel Services
j2). Global Web Channel Services Faxing ¢ Inbound receipt of faxes into a subscriber's personal Email Inbox + Desktop sending (format independent) * Unique subscriber telephone number Unified Messaging + Faxing + Inbound receipt of voicemail into a subscriber's personal Email Inbox + Web-initiated C
Slide 10: Web Channel Overview
2). Global 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 potential and el
Slide 11: Corporate Channel Services
2). Global 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 Advanced billing options Se
Slide 12: Corporate Channel Overview
j2). Global Corporate Channel Overview Revenue Sources + License fees * Monthly recurring * Usage-based Marke ¢ Direct sales force * Telemarketing * Web-generated leads * Leads from existing databases of Web channel customers Status (as of 3/31/02) + 950+ corporate clients + 23,000+ unique telephone
Slide 13: Licensed Services Channel Overview
j2). Global Licensed Services Channel Overview Offerings + 42 Global's network, application capabilities and services integrated into 3" party offerings Licensing of j2 Global's intellectual property and know how + Royalty revenue from non-core assets Marketing * One-on-one meetings and negotiations
Slide 14: j2 Global's Network Presence
j2). Global j2 Global’s Network Presence
Slide 15: Global's Advanced Messaging Network
j2). Global 32 Global’s Advanced Messaging Network §2Glob al Inbound Services 15
Slide 16: Patented Technology
j2). Global Patented Technology U.S. Patent No. Description 6,208,638 6,073,165 5,642,288 5,877,963 5,751,287 Method and Apparatus for transmission & retrieval of Fax and Audio messages over a circuit or packet switched network Filtering computer network messages directed to a user’s Email Inbox thr
Slide 17: Industry Accolades
Industry Accolades x” 7500 22 GobatNamed Bt Fastest Gleb Named 3H, Growing Technology Firm in Fastest Growing Techookay es Angeks Firm io Nor America For2004 ‘For 2004 FAST 50 ITE: WEBSITES crcure Vv
Slide 18: Product Roadmap
j2). Global Product Roadmap Unified Electronic voice Conference Document: Messaging Fax Services Services Handling & Comm. Services ‘Inbound Fax to Ema + InboundVM to Emal + Web-based + ProtoFax® + Integrated Email, + Outhound Fax via Email » Voigerall management Conference Caling «Messenger voicema
Slide 19: Financial Highlights
j2). Global Financial Highlights
Slide 20: Five Year Revenue Growth
Global Five Year Revenue Growth 96% CAGR $12.0 $10.0 $8.0. $6.0: (suot) $4.0: $2.0. $0.0. 20, 10 10, 60 To, To, zb 10, 10 00, 5 00, £0 00, z0 00, 1 66,50 66,€0 66,20 66,10 96, 6. 96, £0 96,20 96,10 £6, 60 46, €0 46,20 46,10 20
Slide 21: Net Earnings (Loss)
(Millions) Net Earnings (Loss) 20 S10. so.0 4 “$1.0. “$20. “$3.0 “$4.0. “$5.0 “$6.0. “$20. @'o0 @'00 Qs'00 Qt'ot-Qz'o1Q3'01 geo quaz 24
Slide 22: EBITDA (Loss)
EBITDA (Loss) $3.0 $2.0 0 | veal a” Ss $1.0 $2.0 $3.0 $4.0 -$5.0 (Millions) Q2'00 300 Q4'00 QI'O —Q2"01_ «G3 "01 Q4'01 Qt ‘02
Slide 23: Quarterly Review by Channel
j2). Global Quarterly Review by Channel 2001 2002 Q2 Q3 4 Qi Web $6,205 $6,678 $7,232 $7,733 Quarter-to-Quarter Growth 7.6% 8.3% 6.9% Corporate 4332. 1,650 2,020 2464 Quarter-to-Quarter Growth 23.9% 22.4% 22.0% Licensed Services 327 241 314 182 Other 0 28 14 0 Total Revenue $7,864 $8,597 $9,580 $10,
Slide 24: Condensed Q1 2002 Income Statement
2 Global Ny) Condensed Qi 2002 Income Statement (Thousands) Three months ended Marah 31 7008 201 Teta revense wosra 7282 Toa cost ofrevense saa _3608 ress prot eso = 3707 Total operating expences ssi __za70 Operating income does) 1m a0) Other income expense. net 2 423 Nat earings (oss) 1s @pan) Cumu
Slide 25: Condensed Balance Sheet at March 31, 2002
2 Global Ny) Condensed Balance Sheet at March 31, 2002 (Thousands) fron 32002 asses ach endcasheaelerts 20178 ee a Totalcunet asses 25250 Fun, tres ard equpert net spss caval pce rales, ret 17602 eee 1201 Tetalassats Sea LUABILITES AND STOCKHOLDERS'E QUITY nowntispayebe eu aoound eens 490 Deccan 153
Slide 26: j2 Global Produces Cash
j2). Global j2 Global Produces Cash (Millions) Cash (as of 12/31/01) $ 19.1 Cash (as of 3/31/02) $ 20.2 Q1 Net Earnings $ 1.7 Q1 Operating Cash Flow $ 1.9 j2 Global produces more cash from operations than net Earnings 26
Slide 27: Revised 2002 Financial Performance Guidance
j2). Global Revised 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 + Q2 and Q3
Slide 28: Key Events Since Q4 2001
j2). Global Launched Internet fax solution in Microsoft Office XP Key Events Since Q4 2001 . o Signed first two Patent licensing agreements . Bogota, Colombia in service . Santiago, Chile in service o Launched www.j2Corporate.com (Corporate Sales Website) 28
Slide 29: j2).
j2). Global