New Work SE

Investor Presentation • Aug 5, 2021

Q2 2021 Results Presentation

HAMBURG, 5 AUGUST 2021

DISCLAIMER

This presentation was produced in August 2021 by NEW WORK SE (the "Company") solely for use as an information source for potential business partners and is strictly confidential. It has been made available to you solely for your own information and may not be copied, distributed or otherwise made available to any other person by any recipient. This presentation is not an offer for sale of securities in the United States. The distribution of this presentation to you does not constitute an offer or invitation to subscribe for, or purchase, any shares of the XING SE and neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever.

The facts and information contained herein are as up-to-date as is reasonably possible and are subject to revision in the future. Neither the Company nor any of its subsidiaries, any directors, officers, employees, advisors nor any other person makes any representation or warranty, express or implied as to, and no reliance should be placed on, the accuracy or completeness of the information contained in this presentation. Neither the Company nor any of its subsidiaries, any directors, officers, employees, advisors or any other person shall have any liability whatsoever for any loss arising, directly or indirectly, from any use of this presentation. The same applies to information contained in other material made available at the presentation.

While all reasonable care has been taken to ensure the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of the Company. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate.

This presentation contains forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. These statements are generally identified by words such as "believes," "expects," "predicts," "intends," "projects," "plans," "estimates," "aims," "foresees," "anticipates," "targets," and similar expressions. The forward-looking statements, including but not limited to assumptions, opinions and views of the Company or information from third party sources, contained in this presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. The Company does not represent or guarantee that the assumptions underlying such forward-looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any forward-looking statements.

This presentation speaks as of March 2021. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

IMPORTANT NOTICE

Pro-forma results

Results contained in this presentation are partly based on unaudited pro-forma financial results that the Company derived from its preliminary and past financial statements for the indicated periods in order to make these periods comparable and show non-recurring costs.

Cautionary note regarding preliminary results and pro-forma financial results

This presentation contains preliminary results and pro-forma results. The preliminary results may change during their final review. While the Company believes that its pro-forma financial results are reflective of its recurrent trends and the on-going status of its business, there can be no assurance that its pro-forma results will accurately reflect these trends and status and therefore, its investors are urged not to rely solely upon the pro-forma results when making their investing decision and the pro-forma results should always be reviewed together with its actual financial results.

EXECUTIVE SUMMARY Q2 2021

Financial Performance

Pro-forma service revenues

Pro-forma EBITDA

$+23%$

$+5%$

Pro-forma net income

$+42%$

Operational Highlights

B2C:

• C- destinations www.xing.com and www.kununu.com growing steadily

B2B:

• E-Recruiting customer base growing again
• · B2B Marketing Solutions & Events up again

NEW WORK PRO-FORMA SERVICE REVENUES UP AGAIN, STRONG INCREASE IN PROP-FORMA EBITDA AND NET INCOME GIVEN LOWER INVESTMENTS

new members on XING totalling >19.5m at end of Q2 2021

+1.6m (or +260k in Q2) adjusted for the onetime elimination of ~164k members in D-A-CH

new workplace insights on kununu totalling > 5.4m insights incl. >1.2m salary data points

COVID-INDUCED SLOWDOWN OF B2B E-RECRUITING SUBSCRIPTION CUSTOMERS STOPPED AND SLIGHTLY RECOVERING SINCE

B2B customers XING²

NEW WOR

MARKETING SOLUTIONS GROWING EVEN ABOVE PRE-COVID LEVEL

NEW
WORK EVENTS GROWING AGAIN FOR THE FIRST TIME SINCE MARCH 2020

UPDATED OUTLOOK 2021

NUMBERS Q2 2021

Q2 2021 FINANCIAL HIGHLIGHTS

• CONTINUED GROWTH OF C-DESTINATIONS
• REVENUES RETURN TO GROWTH (+5%) AFTER STABLE Q1
• $(PRO-FORMA)$ EBITDA $\in$ 27.4M
• OPERATING CASH FLOW UP 62% TO 18.9M
• UPDATED 2021 OUTLOOK: SINGLE DIGIT GROWTH IN PRO-FORMA EBITDA

Q2 2021: REVENUES OF $\epsilon$ 71.0; EBITDA OF $\epsilon$ 27.4M

Pro-forma
	Q2 2021	Q2 2020	Q2 2021 vs. Q2 2020	Q1 2021	Q2 2021 vs. Q1 2021
	Abs.	Abs.	Rel.	Abs.	Rel.
Service revenues	71.0	67.5	5%	68.0	5%
Other operating income	0.4	0.4	(11%)	0.4	(7%)
Capitalized own work	6.0	7.2	(16%)	6.9	(12%)
Costs before capitalization	(50.1)	(52.8) (52.7)	5%	(50.3)	$1\%$
EBITDA	27.4	22.3 22.4	22%	24.9	10%
Margin	39%	33% 33%	5%pts	37%	2%pts
D&A	(7.8)	(8.2)	6%	(7.3)	(7%)
Financial result	(0.3) 0.0	(0.2) 2.8	$(100\%)$	(0.2) (0.1)	(110%)
Taxes	(6.1) (6.0)	(4.8) (4.4)	(27%)	(5.4) (5.4)	(12%)
Net income	13.4 13.6	12.2 9.4	12%	12.0 12.1	12%
EPS	2.38 2.41	1.68 2.16	12%	2.14 2.15	12%

Q2 2021: SEGMENT PROFITABILITY UP YOY, COST PHASINGS INTO H2

	Segment EBITDA Q2 2021	Q2 2021 Margin	Q2 2020 Margin
B 2 C	11.4	46%	38%
B2B E-Recruiting	28.0	69%	71%
B2B Marketing Solutions & Events	2.8	49%	14%
Tech, Central Services & Other	(14.8)
Total EBITDA	27.4	39%	33%

EBITDA Margin = EBITDA / Service Revenue

Rounding differences possible

Q2 2021: B2B E-RECRUITING REVENUES UP 7% YOY

Rounding differences possible 13

Q2 2021 COST DEVELOPMENT

NEW
WORK

Q2 2021: OPERATING CASH FLOW OF € 18.9M

	Q2 2021	Q2 2020	Q1 2021 vs. Q1 2020	Q1 2021	Q2 2021 vs. Q1 2021
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	27.4	22.4	4.9	24.9	2.5
Interest / tax / other	(3.7)	(3.7)	0.0	(2.1)	(1.6)
Change in net working capital	(4.8)	(7.0)	2.2	16.9	(21.7)
▲ Discontinued operations	0.0	(0.1)	0.1	0.0	0.0
Operating cash flow excl. organiser cash	18.9	11.6	7.2	39.7	(20.9)
Investment - operating	(12.1)	(9.5)	(2.7)	(10.6)	(1.5)
Investment - acquisitions & joint venture	(2.1)	(0.7)	(1.4)	0.0	(2.1)
Investment - financial assets	0.0	0.0	0.0	0.0	0.0
Interests paid, lease payments & incentives, FX rate diff. & rest	2.3	(1.6)	4.0	1.7	0.6
Discontinued operations	0.0	0.0	0.0	0.0	0.0
Cash-flow before dividends & organiser cash	7.0	(0.1)	7.1	30.8	(23.9)
Regular dividend	(14.6)	(14.6)	0.0	0.0	(14.6)
Special dividend	0.0	0.0	0.0	0.0	0.0
Cash-flow after dividends excl. organiser cash	(7.6)	(14.7)	7.1	30.8	(38.4)
Effects organiser cash	0.5	(1.5)	2.0	1.2	(0.7)
Cash-flow incl. organiser cash	(7.1)	(16.2)	9.1	32.0	(39.1)

THANK YOU FOR YOUR ATTENTION.

Q1 2021 PRO-FORMA P&L

	Q1 2021 Reported	IFRS changes in value of financial assets	Q1 2021 Pro-Forma	Q1 2020 Pro-Forma	Q1 2021 Pro-Forma vs. Q1 2020 Pro-Forma
	Abs		Abs.	Abs.	Rel.
Service revenues	68.0		68.0	68.9	(1%)
Other operating income	$0.4^{\circ}$		0.4	0.6	(35%)
EBITDA	24.9		24.9	17.1	46%
D&A	(7.3)		(7.3)	(6.5)	12%
Financial result	(0.1)	(0.1)	(0.2)	(0.3)	(36%)
Taxes	(5.4)	0.0	(5.4)	(2.8)	89%
Net income	12.1	(0.1)	12.0	7.4	62%
EPS	2.15	(0.01)	2.14	1.32	62%

Q2 2021 PRO-FORMA P&L

	Q2 2021 Reported	IFRS changes in value of financial assets	Q2 2021 Pro-Forma	Q1 2020 Pro-Forma	Q1 2021 Pro-Forma vs. Q1 2020 Pro-Forma
	Abs		Abs.	Abs.	Rel.
Service revenues	71.0		71.0	67.5	5%
Other operating income	0.4		0.4	$0.4^{\circ}$	(11%)
EBITDA	27.4		27.4	22.3	23%
D&A	(7.8)		(7.8)	(8.2)	(6%)
Financial result	0.0	(0.3)	(0.3)	(0.2)	7%
Taxes	(6.1)	0.1	(6.0)	(4.4)	35%
Net income	13.6	(0.2)	13.4	9.4	42%
EPS	2.41	(0.03)	2.38	1.68	42%

CONSENSUS, INVESTOR INFORMATION & CONTACT DETAILS

NEW WORK SE CONSENSUS & IR STATS

Consensus collected by IR	2021e	2022e	2023e
Service revenues	281	304	331
EBITDA	91	101	112
Margin	32%	33%	34%
D&A	(44)	(46)	(51)
EBIT	50	58	66
Margin	18%	19%	20%
Net income	34	39	44
EPS in $\epsilon$	5.64	6.40	7.13
DPS in $\epsilon$	2.75	3.14	3.70
Analyst coverage			Berenberg, Deutsche Bank, Hauck & Aufhäuser,

Analyst coverage	Berenberg, Deutsche Bank, Hauck & Aufhäuser, MM Warburg, Pareto Securities
Shares	5,620,435

INVESTOR RELATIONS CONTACT DETAILS & SOCIAL MEDIA CHANNELS

Patrick Moeller

Director Investor Relations NEW WORK SE Dammtorstrasse 30 20354 Hamburg Germany

Tel.: +49 (0)40 419 131-793 Fax.: +49 (0)40 419 131-44

E-mail: patrick.moeller@new-work.se