Slide 1: Investor Presentation (Based upon Second Quarter 2011 Results)
j2). Global Communications e Global j2 | Communications Investor Presentation (Based upon Second Quarter 2011 Results) August 2, 2011 FB) Ata ett rat campers Seep ste onaoon ® {2 Global Communications 2011
Slide 2: Safe Harbor for Forward-Looking Statements
j2). Global Communi Safe Harbor for Forward-Looking Statements Cartan statements ithe presentaten constiute Yerward-odking staterents” within the meaning of the Prato ‘Smurtes Litgaten Reform act of 1995, partculay those contahed in the “2011 Guidance” sides. These forward- bboking statements are ba
Slide 3: Risk Factors
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Slide 4: The Results in Numbers
j2). Global Communications, The Results in Numbers Revenues: 15 Consecutive Years of Growth Operating Income: Over 47% Non-GAAP Operating Margin Free Cash Flow: Run Rate Over $12M/Month EBITDA: 9 Consecutive Years of Non-GAAP EBITDA Growth Effi ncy: Over $615K Revenue/Employee Customers: Over 1.96 M
Slide 5: Financial Highlights
J2), ctobat communications Financial Highlights
Slide 6: Q2 '11 GAAP & Non-GAAP Results
j2). Global Communications Q2 ’11 GAAP & Non-GAAP Results Q2 2011 GAAP. Q2.2011 Non-GAAP $ Margin $_ _Margin Revenues $85.7M $85.7M Gross Profit/Margin (1) $70.5M 82.3% $70.8M 82.6% Operating Profit/Margin (2) $37.9M 44.3% © $40.9M 47.7% EPs () $0.61/Share $0.65/Share Free Cash Flow @) $42.0M Cash a
Slide 7: Q2 2011 Update
J2), ctobat communications Q2 2011 Update
Slide 8: Q2 2011 Success Drivers — Customer Retention
j2). Global Communications Q2 2011 Success Drivers — Customer Retention Improved Retention; Cancel Rate Down to 2.4% #® Signing up higher quality customers 1) Customer mix — more Corporate ® Increased sales through Telesales channel ~ stickier customers ® Shifting phone support to North America ® Im
Slide 9: Q2 2011 Success Drivers — DIDs and ARPU
j2). Global Communications, Q2 2011 Success Drivers — DIDs and ARPU Net Adds > 31K vs. Q2 2010 < 20K DIDs ARPU Increased 2 Quarters in a Row, 1.4% Q/Q — Usage Driven Corporate and Voice Services = Strong Growth Drivers ® 4 new large Corporate contracts in Q2 ® Corporate Y/Y Q2 DID growth of 579% Voi
Slide 10: Second Half — Success Drivers
j2). Global Communications Second Half — Success Drivers Marketing Spend and Retention In ives ® Continue to improve cross-sell/up-sell programs Continue to focus on customer retention programs Continue to monitor traditional CPAs; maintain CPA efficiency ® Test new marketing strategies > Regional r
Slide 11: Progress of Acquisitions
Progress of Acquisitions j2), Global Communications, Transition/Integration of Recent Acquisitions on Target: ® Veni — completed integration ® MyFax® — substantial portion of customers to be migrated by year-end ® Mylvoice™ — to be completed during Q4 Recent Acquisitions and Update *® Data Haven, Ir
Slide 12: 2011 Guidance
J2), ctobat communications 2011 GUIDANCE
Slide 13: 2011 Guidance
j2). Global Communications 2011 Guidance Increased Guidance Guidance Revenues $320-S3404 $335 - $345M (25% - 33% increase vs. 2010) _ (30% - 35% increase vs. 2010) Non-GAAP EPS | $2;24te-62.44 $2.46 to $2.56 (139% - 23% increase vs. 2010) (26% ~ 31% increase vs. 2010) (2011 Gitanen emerson in nah en
Slide 14: Initiation of Quarterly Dividend
Initiation of Quarterly Dividend j2), Global Communications Returns Cash to Shareholders Broaden Shareholder Base Timing ® Record date: September 2”! Payment date: September 19! Payment Amount #2) Quarterly dividend of $0.20 per share(t) 32 Represents ~ 30% of non-GAAP earnings 3 ~ $10M of cash paid
Slide 15: Supplemental Information
J2), ctobat communications Supplemental Information
Slide 16: Metrics
j2). Global Communications Metrics BD) Ae err Sree camer nape ener 16 © j2 Global Communications 2014
Slide 17: Computation of Free Cash Flow
j2). Global Communications, Computation of Free Cash Flow in millions) wow ast sm arm ato as oar att Necah poidedty pain antes -§ DI $ RAD $ BH $ USD$ DIS DW S$ 2MS BOs ow Puch Ofrpety&egapmet O27) GIT) GIS) GUE) aH) ER) GHEE) HEE) Gre) ses tac bn ene) she tose congersatn $278 $ 0m GS) ES OMS OM GOD
Slide 18: Non-GAAP Results & Reconciliation to GAAP
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Slide 19: Fosmfendlare
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