New Work SE

Investor Presentation • Aug 6, 2020

Q2 2020

Results Presentation

HAMBURG, 6 AUGUST 2020

PETRA VON STROMBECK CEO SINCE MAY 29, 2020

CEO of Lotto 24 July 2012 - 2019

Member of the Executive Board, Tipp24 SE July 2011 - July 2012

Consultant

2009 - 2011

Member of the Executive Board, Tipp24 SE 2008 - 2009

Présidente, Serpie SA 2003 - 2007

Head of e-commerce/CRM, Tchibo 1999 - 2003

Head of Advertising, Premiere 1996 - 1999

Clear focus Do, learn, adjust

Data driven

NEW WORK SE TODAY FABULOUS TEAM & STRONG OPPORTUN

Solid business model

Strong brands & market position

Megatrends & markets growth potential

Great team & culture

4

NEW WORK SE | Q2 2020 RESULTS PRESENTATION

EXECUTIVE SUMMARY Q2 2020

• · Group revenues & EBITDA slightly growing despite negative COVID-19 effects
• · B2C with stable financials and solid growth in members & content
• · B2B business impacted by COVID-19, but still growing yoy
• · We confirm our outlook from May 2020:
  • Revenue target: €275-285m
  • EBITDA margin target: ~ 30%

REVENUES & EBITDA SLIGHTLY GROWING DESPITE FIRST FULL "COVID-19-QUARTER"

B2C MEMBER BASE AND WORKPLANCE INSIGHTS CONTINUE TO GROW

Workplace insights หมกบุ๊กม in 000s*

B2B IS GROWING, BUT NEW BUSINESS IS IMPACTED BY COVID-19

B2B customers XING K (subscription)* E-Recruiting

Customers PRECOSCREEN

* Excl. Prescreen and Honeypot

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*New Work SE survey among 1,200 HR professionals

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RECAP: LONG TERM OUTLOOK UNCHANGED DEMOGRAPHICS WILL CONTINUE TO TIGHTEN GERMAN LABOUR MARKET

Strong increase in open vacancies expected, resulting in greater demand for employees

COVID-19 is causing an economic dip and increasing unemployment rates

Impact of COVID-19 expected to be overcompensated by demographics

CLOSING REMARKS

• · New Work SE is in good shape
• · Resilience due to ~80% subscription revenues
• · Brand positioning around New Work more relevant than ever
• · Structural drivers (demografics & skilled labor talent scarcity) will support our long-term strategy
• · We confirm our 2020 revenue outlook of € 275 – 285m and our ~30% EBITDA margin target

Capital markets update & deep dive on New Work SE strategy planned for Q1 2021

Q2 2020 FINANCIAL HIGHLIGHTS

• · XING MEMBERS & KUNUNU WORKPLACE INSIGHTS CONTINUE TO GROW
• · STABLE REVENUES W/ +3% TO € 67.5M YOY
• · STABLE EBITDA W/ +2% TO € 22.3M YOY
• · OPERATING CASH FLOW OF € 11.6M
• · FY OUTLOOK FROM MAY CONFIRMED
  • Revenues € 275-285m
  • EBITDA margin ~30%

Q2 2020: REVENUES +3% YOY; EBITDA +2% YOY

Q2 2020 distorted by xo effects. See pro-forma P&L Q2 2020 (Backup)

Adjusted for changes in earn-out liabilities and changes in value of financial assets

Q1 2020 distorted by several xo effects. See Pro-forma P&L Q1 2020 (Backup)

Negative one time effect due to change of earn-out-provisions of € (0.2m) ***

Q2: B2C AND B2B E-RECRUITING SEGMENT MARGINS UP; MARKETING SOLUTIONS & EVENTS STRONGLY IMPACTED BY COVID-19

	Segment EBITDA Q2 2020	Q2 2020 Margin	Q2 2019 Margin	Comment
B2C	8.4	33%	29%	Termination / reduction of adjacent product investments
B2B E-Recruiting	26.0	69%	66%	Slower cost growth on back of COVID-19
B2B Marketing Solutions & Events	0.5	12%	35%	Strongest negative COVID-19 effects
kununu International	(0.1)	Neg	Neg
Tech, Central Services & Other	(12.5)	Neg	Neg
Total EBITDA	22.3	33%	34%

*EBITDA Margin = EBITDA / Service Revenue

Rounding differences possible

Q2 2020: B2C DRIVEN BY COVID-19 EFFECTS AT INTERNATIONS; B2B E-RECRUITING UP YOY; MARKETING SOLUTIONS & EVENTS IMPACTED BY COVID-19

NEW WORK SE | Q2 2020 RESULTS PRESENTATION

Q2 2020 COST DEVELOPMENT

▪ Other

Q2 2020: OPERATING CASH FLOW OF € 11.6M

	02 2020	Q2 2019	Q2 2020 vs. Q2 2019	Q1 2020	Q2 2020 vs. Q1 2020
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	22.3	22.0	0.4	15.9	6.4
Interest / tax / other	(3.7)	(2.5)	(1.2)	(2.0)	(1.7)
Change in net working capital	(7.0)	(1.7)	(5.3)	18.4	(25.4)
Non-cash changes from changes in basis of consolidation	0.0	(1.4)	1.4	0.0	0.0
Operating cash flow excl. organiser cash	11.6	16.4	(4.7)	32.4	(20.7)
Investment - operating	(9.5)	(9.1)	(0.3)	(9.2)	(0.3)
Investment – acquisitions & joint venture	(0.7)	(22.5)	21.9	0.0	(0.7)
Investment - financial assets	0.0	0.0	0.0	0.0	0.0
Interests paid, lease liabilities, FX rate diff. & rest	(1.6)	(1.3)	(0.3)	(1.5)	(0.2)
Cash-flow excl. dividends & organiser cash	(0.1)	(16.6)	16.5	21.7	(21.9)
Regular dividend	(14.6)	(12.0)	(2.6)	0.0	(14.6)
Special dividend	0.0	(20.0)	20.0	0.0	0.0
Cash-flow excl. organiser cash	(14.7)	(48.7)	34.0	21.7	(36.4)
Effects organiser cash	(1.5)	(1.0)	(0.5)	(0.7)	(0.8)
Cash-flow incl. organiser cash	(16.2)	(49.7)	33.5	21.0	(37.3)

THANK YOU FOR YOUR ATTENTION.

NEW WORK SE | Q2 2020 RESULTS PRESENTATION

Q1 2020 PRO-FORMA P&L: 12% EBITDA GROWTH VS PRO-FORMA O1 2019

	Q1 2020 reported	Honeypot Start-up losses	CSO severance payment	COVID-19 Impairment	Earn-Out adjustments M&A Transactions	IFRS changes in value of financial assets	Q1 2020 Pro-Forma	Q1 2019 Pro-Forma	Q1 2020 Pro- Forma vs. Q1 2019 Pro- Forma
	Abs						Abs.		Rel
Service revenues	68.9	0.6					68.3	62.6	9%
Other operating income	0.6	0.0					0.6	1.1	(44%)
EBITDA	15.9	(1.7)	(1.2)				18.8	16.9	12%
D&A	(12.3)	(0.4)		(5.8)			(6.1)	(5.9)	(3%)
Financial result	5.6	(0.2)			7.4	(1.5)	(0.1)	(0.3)	60%
Taxes	(2.0)	0.8	0.4			0.5	(3.6)	(3.7)	2%
Net income	7.2	(1.6)	(0.8)	(5.8)	7.4	(1.0)	9.0	7.0	29%
EPS	1.28	(0.28)	(0.14)	(1.03)	1.31	(0.18)	1.60	1.25	29%

· Q1 2020 adjusted for Honeypot related effects (impairment, change in earn-outs and start-up losses) & redundancy payments for board member Alastair Bruce and changes in the value of financial assets

Q1 2019 adjusted for one-time effect related to new office rental agreement, the kununu US step up and changes in value of financial assets .

Q2 2020 PRO-FORMA P&L: 2% EBITDA GROWTH VS PRO-FORMA Q2 2020

	Q2 2020 reported	Earn-Out adjustments M&A Transactions	IFRS changes in value of financial assets	Q2 2020 Pro-Forma	Q2 2019 Pro-Forma	Q1 2020 Pro- Forma vs. Q1 2019 Pro-Forma
	Abs.	Abs.	Abs.	Abs.	Abs.	Rel.
Service revenues	67.5			67.5	65.5	3.0%
Other operating income	0.4			0.4	0.6	(25%)
EBITDA	22.3			22.3	22.0	1.7%
D&A	(8.2)			(8.2)	(6.7)	(23.6%)
Financial result	2.8	(1.9)	(1.1)	(0.2)	(0.3)	30.5%
laxes	(4.8)		0.3	(4.4)	(4.9)	9.9%
Net income	12.1	(1.9)	(0.7)	9.4	10.0	(6.1%)
EPS	2.15	(0.34)	(0.13)	1.68	1.79	(6.1%)

• Q2 2020 adjusted for changes in earn-out provisions and IFRS changes in value of financial assets

• Q2 2019 adjusted for IFRS changes in value of financial assets & changes in earn-out provisions

NEGATIVE INVESTED CAPITAL FROM SHAREHOLDERS' PERSPECTIVE Excl. event organiser cash and NWC in €m

CONSENSUS, INVESTOR INFORMATION & CONTACT DETAILS

NEW WORK SE | Q2 2020 RESULTS PRESENTATION

new work se consensus & Ir STATS

Consensus collected by IR	2020e	2021e	2022e
Service revenues	279	299	334
EBITDA	83	95	107
Margın	30%	32%	32%
D&A	-23	-26	-26
EBIT	45	56	66
Margın	16%	18%	20%
Net income	31	36	43
EPS in €	5.56	6.45	7.78
DPS in €	2.40	2.76	3.19

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

Average trading volume per day (XETRA) & market cap (in €bn)

Burda Digital SE (DE)	50.0 %
Oppenheimer (US)	4.7 %
DWS (DE)	3.1 %
Mawer (CAN)	3.0 %
Allianz Global Investors (DE)	3.0 %
Rest	36.2 %

Numbers based on last filing – current shareholdings can differ Rounding differences possible

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