Slide 1: Investor Presentation (Based upon Fourth Quarter 2008 Results)
EXHIBIT 99.2 Investor Presentation (Based upon Fourth Quarter 2008 Results) February 19, 2009 1
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Certain statements in this presentation constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those contained in the slide “2009 Assumptions/Guidance.” These forward-looking statemen
Slide 3: Risk Factors
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 in our customer base, revenue or profitability, particularly in light of the uncertain U.S. or
Slide 4: Messaging/Communications as a Service
Messaging/Communications as a Service All brand names and logos are trademarks of j2 Global Communications, Inc. or its affiliates in the U.S. and/or internationally. 4
Slide 5: Core j2 Global Assets
Core j2 Global Assets 11.6+ M Subscribed Telephone Numbers (DIDs) 1.2+ M Paid DIDs Global Advanced Messaging Network 3,100+ cities in 46 countries on 6 continents 19.8M+ unique DIDs worldwide in inventory Intellectual Property 57 issued patents and licensing programs designed to monetize the portfol
Slide 6: Subscriber Acquisition
Subscriber Acquisition Individuals Targeted marketing (search, online media and radio) Sold through: eFax.com, eVoice.com, Onebox.com, PhonePeople.com, Fax.com, j2.com and other brand Websites Use of proprietary Life Cycle Management Advertising, Up-selling, and Calling-Party-Pays revenue supports t
Slide 7: Paid Subscription Drivers
Paid Subscription Drivers Eight Drivers for Paid DID Additions Subscribers coming directly to the Company’s Websites/Telesales Brand awareness driven by demand-generation programs and “word of mouth” Search engine discovery Accounts for over 40% of monthly paid DID signups Free-to-Paid subscriber up
Slide 8: Financial Highlights
j2). ea Financial Highlights ‘© J2 Global Communications 2009
Slide 9: GAAP Results
GAAP Results Q4 2008 FY 2008 $ Margin $ Margin GAAP Revenues $60.6M $241.5M Gross Profit/Margin (1) $49.4M 81.5% $195.3M 80.9% Operating Profit/Margin (1) $26.2M 43.2% $97.9M 40.6% GAAP EPS (2) $0.45 Per Share $1.58 Per Share Free Cash Flow (3) $25.4M $88.2M Cash and Investments $162M $162M (1) Incl
Slide 10: Accomplishments & Outlook
Accomplishments & Outlook 10
Slide 11: Fax Services: 2008 Review and 2009 Outlook
2008 Review Fax Services Fax DIDs increased to ~1,050,000 Multiple pricing programs working well Expanded network to 46 countries and 3,100+ cities Acquired Mijanda brands and customer base Strong Corporate Sales 24 wins in 2008 of large customers Aggressive ROI based management of advertising campa
Slide 12: Voice Services: 2008 Review and 2009 Outlook
2008 Review Voice Services Voice DIDs grew 127% from ~80,000 to ~190,000; grew to ~10% of j2 revenue Began international marketing efforts; introduced eReceptionist brand in Europe Speech-to-text deployed in the US Increased Telesales staff and expanded CS support Continued cross-selling to Fax cust
Slide 13: Other Businesses
Other Businesses Email Successfully completed acquisition of Mailwise (hygiene provider) Cross-sell of Electric Mail services to Mailwise customers Integration of Mailwise nearing completion Currently evaluating additional M&A opportunities Patent Licensing Patents out of reexamination in late 2008/
Slide 14: j2 Operations
j2 Operations 2008 Achieved revenues and above range EPS targets Successfully managed cost structure for all departments Revenues grew 9.4% while employee headcount was kept flat with 12/31/07 Increased operational efficiencies steadily throughout the year Margins at an all time high in Q4 Improved
Slide 15: 2009 Outlook
2009 Outlook ‘© J2 Global Communications 2009 j2). Communications
Slide 16: 2009 Assumptions/Guidance
2009 Assumptions/Guidance Economy 2009 worse than 2008; 4 Quarters of GDP contraction; global recession; increasing unemployment; bottom not yet reached Stronger USD relative to GBP and Euro Operational View Continuing focus on optimizing margins and free cash flow Decrease in usage revenue and rete
Slide 17: Supplemental Information
Supplemental Information 17
Slide 18: Metrics
2007 2008 Metrics Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Fixed Subscriber Revenues $37,757 $39,643 $41,362 $43,336 $162,098 $44,260 $46,593 $47,481 $48,125 $186,459 Variable Subscriber Revenues 12,536 12,970 12,667 12,057 50,231 12,956 12,943 12,985 11,497 50,382 Subscriber Revenues $50,293 $52,613 $54
Slide 19: Computation of Free Cash Flow
Computation of Free Cash Flow ($ in millions) Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Net cash from operating activities $26.659 $23.113 $18.656 $25.779 $27.411 $23.840 $13.738 $25.727 Purch. of property & equipment (0.529) (2.506) (2.940) (4.340) (0.469) (0.796) (0.937) (0.305) (1)
Slide 20: Usage of Corporate and Web High Volume Users
Usage of Corporate and Web High Volume Users 20
Slide 21: Global Communications
j2). Global Communications ns 2009