Slide 1: IDT Corporation Investor Presentation
IDT Corporation IDT Investor Presentation LD Micro Main Event October 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements All statements in this presentation that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect," “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements w
Slide 3: IDT - At a Glance
IDT- At a Glance Founded in 1990 by Howard Jonas Headquarters: Newark, NJ Approximately 1700 employees including 400 research & development IDT Corporation (NYSE: IDT) Unified Cloud Communications ——————_ Mobile Top-Up & Traditional 4 \. Communications 7 Early Stage and Other Initiatives IDT Investo
Slide 4: Commitment to Value Creation
IDT « Commitment to Value Creation From $54 million to $4.9 BILLION' in 12 years 2009 $38 MM IDWi::;... $2.35 B IDT $54 MM ais | Market cap at $1.3B rls DT low crM Media =$210 MM in Dividends RAFAEL Holdings, Inc. $657 MM ZEDGE $180 MM IDT Investor Presentation | 4
Slide 5: IDT Financial Highlights
IDT + Financial Highlights $1.4 B ce +15%5 $161 M re ne +$52 MMP $0 vent: a Consolidated Adjusted EBITDA? Less CAPEX inmillions $70 +87% 4 $31 é $18 15 |_| a : FY 2017 FY2018 Fy 2019 FY 2020 Fy2021 Fiscal years ended July 31 IDT Investor Presentation | 5
Slide 6: net2phone
net2phone
Slide 7: Cloud Communications net2phone
Cloud Communications net2phone Differentiated Leader in the ‘Sweet Spot’ of Communications as a Service ct ae Le [al Calling Video Integrations 226,000 seats® User Portals _ $47MM annualized revenue” Voice Massive global TAM 2 oO le] with 25% CAGR® Analytics SMS/MMS Messaging Mobile App Investor Pre
Slide 8: Differentiator #1 net2phone
Differentiator #1 net2phone Exceptional and Sustainable Growth and Margins Revenue and Seats 2 513 2 5 si sz 7G = 2 g Sit Sit 195 £ 8 2 § so A & Hi 170 4 $9 2 i us > Hf e 4020 1021 2021 3021 4021 ‘mmm Subscription Revenue ——Sests Fiscal quarters for fiscal years ended July 31st IDT Investor Presenta
Slide 9: Differentiator #2 net2phone
Differentiator #2 net2phone Boots on the Ground - 9 Countries, Across 3 Continents 40% of the Global Communications as a Service Market is Abroad and Growing 44% YoY Growth? 56% YoY Growth? Recently Launched 7 =| Local offices: ‘S80 Paulo, Brazil Local offices: Newark, NJ, US Local offices: Ottawa,
Slide 10: Differentiator #3 net2phone
Differentiator #3 net2phone A Leader in the SMB and Small Enterprise Global Marketplace Built to Serve 99% SMB Sweet Spot of the Global UCaaS Market Fragmented market * Aligned technology * Condensed sales cycles * Dynamic global market Global UCaaS Market Growth" "2020 2021 2022 2023 2024 "2025 DT
Slide 11: Differentiator #4 net2phone
Differentiator #4 net2phone Focused SMB/Small Enterprise Multi-Channel Acquisition Approach AGENT CHANNEL PARTNERS 20+ 5,000+ * Trusted technology / telecom advisors + Favor best value solution Master Agent Partners Channel Partners Higher average per customer seat counts / multiple clients DIRECT C
Slide 12: Differentiator #5 net2phone
Differentiator #5 net2phone Continuous Release of Product Features, Functionality, and Service Enhancements Tailored to SMB and Small Enterprises Huddle Video Conferencing Features & Differentiators Calendar Integration Live Stream with YouTube Emoji Reactions Call Recording Virtual Backgrounds Nois
Slide 13: A Powerful Point-of-Sale Platform to Drive Independent Retailers' Success
A Powerful Point-of-Sale Platform to Drive Independent Retailers’ Success rN es
Slide 14: The Opportunity and Product Offering
The Opportunity and Product Offering ce) Independently owned convenience, liquor and tobacco stores need modern store management technology Underserved Market Full suite of software The NRS solution is designed specifically to solutions for retailers > a address the unique needs of the > [S| indepen
Slide 15: Core Revenue Drivers
Core Revenue Drivers cae G POS terminals provide multiple revenue streams SaaS Fees Retailers pay a recurring software subscription fee Payment Processing Retailers can utilize NRS PAY, an integrated payment processing solution Marketplace Services Retailers restock inventory from NRS retailers app.
Slide 16: Platform Revenue Growth Powered by Multiple Offerings
Platform Revenue Growth Powered by Multiple Offerings ce) 76% 14,000 5,600 Revenue Growth ? Active Payment Processing Terminals® Accounts® For quarters ofthe Mec year ended Juy 318 % Change 4q20_ 10212021 3a21 4021 (421-4020) POS Terminals EOP (Active) 70,000 11,100 12,000 13,100 14,000 40% NRS PAY
Slide 17: Helping families share resources around the world
Helping families to share resources around the world @ BOSS REVOLUTION
Slide 18: Money Transfer | Leveraging Assets for Growth
& Money Transfer | Leveraging Assets for Growth Leveraging strategic assets: Digital Transactions Trusted BOSS Revolution brand > *® 10 million BOSS ecosystem customers to cross sell High volume transaction platform 62 Boss Revolution app ecosystem é Global remittance platform 43 4 * Origination in
Slide 19: Money Transfer | Digital Platform Expansion
Money Transfer | Digital Platform Expansion & ou ~~ Sond Monoy directly to Superior User Digital Experience nme > + BOSS Money App receives superlative reviews + User rated 4.8 out of 5 stars in App Store + Over 80% of customers are repeat users Efficient Customer Acquisition aed > + Successful cros
Slide 20: Money Transfer | Growth Runway
Money Transfer | Growth Runway & REVOLUTION Growth Runway e Expand retail pay-in network e Retail payout network growth e Origination market expansion- Canada and UK to start e Peer-to-peer transfers e Incountry neo-banking services e Expand wholesale payout network ° Investor Presentation | 20
Slide 21: Traditional Communications led by Mobile Top-Up
Traditional Communications led by Mobile Top-Up
Slide 22: Traditional Communications - Key Offerings
Traditional Communications - Key Offerings A Market Leader in Mobile Top-Up and International Long Distance Calling 4 C IDT Mobile Top-Up REVOLUTION IDT Carrier Services U.S. customers can recharge International calling Terminates & manages mobile accounts in 100+ serving ~3MM international traffic
Slide 23: What's Mobile Top Up?
What's Mobile Top Up? Receiver Phone # ———> Sender § Kiosk A IDT Mobile Top-Up 1DT Global MTU Partner Network Receiver 170+ Carriers { b 100+ Countries 1,600+ Products Simple - Instant - Secure - Targeted - Value Investor Presentation | 23
Slide 24: Mobile Top Ups | Rapid Topline Growth
Mobile Top Ups | Rapid Topline Growth ora coy a ) Millions $150 $125 $100 $75 Revenue $137 $133 Al sa21 2021 3021 Fiscal quarters for fiscal years ended July 3ist Investor Presentation | 24
Slide 25: Looking Ahead | Mobile Top-Up Growth Opportunities
Looking Ahead | Mobile Top-Up Growth Opportunities Regional Momentum Investing in high growth corridors - Africa (100%+YoY) - Caribbean (40%+ YoY). Unique Omni Channel Broad channel mix leads to improving sales, margins and acquisition costs. > te New Products Global demand for Internet access drivi
Slide 26: Beyond Mobile Top Ups | A Global Value Strategy
Beyond Mobile Top Ups | A Global Value Strategy a IDT Mobile Top-Up Content & Retail Subscriptions siae4 Point of Sales Apps Web Self Service IDT Hub Airtime & Data A Global Portfolio of Lifestyle Value Added Services, al! delivered in real-time via our secure platform, direct to the recipient's pho
Slide 27: Value Creation
Value Creation
Slide 28: Valuation - Sum of the Parts Suggests Potential Upside
Valuation - Sum of the Parts Suggests Potential Upside”® a ©, NATIONAL & of) RETAIL BOSS net2phone SOLUTIONS: REVOLUTION: [roncrrvancsct Unified Communications POS Network Q4FY21 Annualized Revenue = $33MM Industry Multiples = 15x - 20x IDT’s Ownership = 80.5% Implied = $397MM - $529MM Money Transfe
Slide 29: Thank You
Thank You
Slide 30: Footnotes
Footnotes o @ Market capitalizations at market close on October 8, 2021 except Straight Path Communications, which was sold to Verizon for net proceeds of $184 per share or $2.35 billion in aggregate in 2018 Throughout this presentation, Adjusted EBITDA is a Non-GAAP measure intended to provide usef
Slide 31: Footnotes, continued
Footnotes, continued Traditional Communications total revenue for fiscal 2021, the twelve months ended July 31, 2021. Total includes revenue from other, smaller businesses. Q4 fiscal 2021 compared to Q4 fiscal 2020 for the three months ended July 31st Average number of unique customers per month dur
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA less CAPEX is a financial metric, which is calculated by deriving Adjusted EBITDA as described below and subtracting capital expenditures in accordance with generally accepted accounting principles in the United States of America (GAAP) as reported in the cons
Slide 34: Non-GAAP Reconciliation, continued
Non-GAAP Reconciliation, continued Management refers to Adjusted EBITDA, as welll as the GAAP measures income (loss) from operations and net income (loss), on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDTs historical operating results, i
Slide 35: FINANCIALS - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation Reconciling Adjusted EBITDA to Income (Loss) from Operations for IDT Consolidated Adjusted EBITDA Depreciation and amortization Severance expense Other operating (expense) gain, net Income (loss) from operations Adjusted EBITDA CAPEX Adjusted EBITDA less CAPEX (s
Slide 36: FINANCIALS - Non-GAAP Reconciliation
FINANCIALS - Non-GAAP Reconciliation Reconciling Adjusted EBITDA to Income (Loss) from Operations (slide 28) for Traditional Communications + Corporate Adjusted EBITDA Depreciation and amortization Severance expense Other operating gain Income (loss) from operations Fiscal 2021 (USD in millions) Tra