Q1 2020 Results Presentation

HAMBURG, 7 MAY 2020

EXECUTIVE SUMMARY Q1 2020

Like-for-like revenues & EBITDA continue to grow, however COVID-19 impacts from March onwards
B2C proving stable
Our B2B E-Recruiting business is growing, but is less robust than B2C
Our long-term (post-COVID-19) outlook is unchanged
Meanwhile (during the COVID-19 crisis), we continue to build our value proposition and strengthen our customer relationships

WORK LIKE-FOR-LIKE REVENUES & EBITDA CONTINUE TO GROW STRONGLY, HOWEVER COVID-19 IMPACTS FROM MARCH ONWARDS

OUR C-SIDE BUSINESS CONTINUES TO GROW NICELY

Workplace Insights Hununu⁸ in 000s*

NEW WORK SE | Q1 2020 RESULTS PRESENTATION

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

* Excl. Prescreen and Honeypot

NEW WORI

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

POST-COVID-19 ASSUMPTIONS

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

* IAB on development of unemployment rates in 2020 ** Management assumption for worst case scenario

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

Impact of COVID-19 expected to be overcompensated by demographics

WITH STRONG C-SIDE ACCESS IN D-A-CH WE REMAIN IN UNIQUE POSITION TO OFFER OUR LEADING RECRUITING SOLUTIONS POST-COVID-19

in C-Side access (www.XING.com)

in employer branding (kununu)

in active recruiting (XTM)

in tech talent access in Europe (Honeypot)

in expat access / worldwide (InterNations)

MEANWHILE WE CONTINUE TO BUILD OUR VALUE PROPOSITION AND STRENGTHEN OUR CUSTOMER RELATIONSHIPS WITH NEW PREMIUM OFFERING

EXAMPLES OF NEW VALUE

An exclusive self-assessment test with our partner LINC

Access to educational videos from partners

New exclusive content with Harvard Business Manager

FURTHERMORE WE IMPROVED OUR B2B OFFERING BY LAUNCHING THE EMPLOYER SEAL WITH HHL LEIPZIG AND IMPROVED THE XTM

New Work Employer Seal rewards companies that $\bullet$ create employee-centric work environments
Measurable facets of New Work scientifically developed $\bullet$ between HHL & New Work SE
Employee as well as employer reviews are taken into $\bullet$ account and have to pass the academic analysis

XTM with new "Talent Radar" & "Current Employer" Modules

Discover hidden talent			Insights on current employers
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"Hidden talent" recommendations for recruiters based on new screening algorithm
More candidate "insights" for recruiters
Recruiters receive insights into employer fluctuation and employee movements

WE ACTIVELY STRENGTHEN CUSTOMER RELATIONSHIPS DURING THE COVID-19 SITUATION

B₂C

400 experts publish content on XING News to help people navigate through the current situation

wehelpfreelancers initiative companies to pre-book / pay for freelancer services

kununu launched employer transparency ticker

B2B E-RECRUITING

Free of charge job ads for essential and high-demand jobs

Free of charge TalentpoolManager

XTM free for 30 days

Free services for 360 customers

XING Events started online events training

Q1 2020 FINANCIAL HIGHLIGHTS

· CONTINUED GROWTH IN Q1, BUT BUSINESS IMPACTED FROM COVID-19
Main Q1 non-fins and revenues are up
Q1 EBITDA up on like-4-like basis
· STRONG CASH-FLOW IN Q1
· APRIL SHOWS COVID-19 IMPACT
· BUSINESS MODEL IN GENERAL COMPARATIVELY RESILIENT
$\cdot$ FY OUTLOOK: REVENUES $\epsilon$ 275-285M; EBITDA MARGIN ~30%
$\cdot$ DIVIDEND PROPOSAL UNCHANGED: $\epsilon$ 2.59 PER SHARE

Q1 2020: REPORTED NUMBERS DISTORTED BY XO EFFECTS AND A PORTFOLIO ADDITION (HONEYPOT)

	Q1 2020	Q1 2019	Q1 2020 vs. Q1 2019	Q4 2019	Q1 2020 vs. Q4 2019
	Abs.	Abs.	Rel.	Abs.	Rel.
Service revenues	68.9	62.6	10%	73.2	(6%)
Other operating income	0.6	4.8	(87%)	0.3	102%
Capitalized own work	6.6	5.6	16%	5.6	17%
Costs before capitalization	(60.1)	(55.4)	(9%)	(57.4)	(5%)
EBITDA	15.9	17.7	(10%)	21.7	(26%)
Margin	23%	28%	$(5\%pts)$	30%	$(6\%pts)$
D&A	(12.3)	(5.9)	(108%)	(13.3)	7%
Financial result	5.6	1.5	270%	4.9	14%
Taxes	(2.0)	(4.1)	51%	(1.6)	(27%)
Net income	7.2	9.2	(22%)	11.7	(38%)
EPS	1.28	1.64	(22%)	2.11	(38%)

Q1 2020 PRO-FORMA P&L: 12% EBITDA GROWTH VS PRO-FORMA Q1 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 $\bullet$ 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 $\bullet$

B2C AND B2B E-RECRUITING SEGMENT MARGINS STABLE GIVEN INVESTMENTS, MARKETING SOLUTIONS & EVENTS IMPACTED BY TOPLINE DEVELOPMENT DUE TO COVID-19

	Segment EBITDA Q1 2020	Q1 2020 Margin	Q1 2019 Margin	Comment
B ₂ C	7.4	29%	29%	Investments in new products
B2B E-Recruiting	25.4	66%	70%
B2B Marketing Solutions & Events	0.8	17%	30%	Negative COVID-19 effects
kununu International	(0.2)	Neg	Neg
Tech, Central Services & Other	(17.4)	Neg	Neg
Total EBITDA	15.9	23%	28%

*EBITDA Margin = EBITDA / Service Revenue

Rounding differences possible

Q1 2020: B2C AND B2B E-RECRUITING STABLE/GROWING; MARKETING SOLUTIONS & EVENTS IMPACTED BY COVID-19

Q1 2020 COST DEVELOPMENT

Investment in product/tech org & sales/marketing

SEM
B2B E-Recruiting media campaign
Payment processing
Travel & entertainment
Other

Q1 2020: OPERATING CASH FLOW OF € 32.4M

	Q1 2020	Q1 2019	Q1 2020 vs. Q1 2019	Q4 2019	Q1 2020 vs. Q4 2019
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	15.9	17.7	(1.8)	21.7	(5.7)
Interest / tax / other	(2.0)	(2.3)	0.3	(1.1)	$-0.9$
Change in net working capital	18.4	17.1	1.3	(4.2)	22.7
Non-cash changes from changes in basis of consolidation	0.0	(3.8)	3.8	0.0	0.0
Operating cash flow excl. organiser cash	32.4	28.8	3.6	16.3	16.1
Investment $-$ operating	(9.2)	(8.0)	(1.2)	(9.0)	(0.2)
Investment $-$ acquisitions & joint venture	0.0	(2.5)	2.5	0.0	0.0
Investment - financial assets	0.0	0.0	0.0	0.0	0.0
Interests paid, lease liabilities, FX rate diff. & rest	(1.5)	(1.2)	(0.3)	(2.0)	0.5
Cash-flow excl. dividends & organiser cash	21.7	17.1	4.6	5.4	16.4
Regular dividend	0.0	0.0	0.0	0.0	0.0
Special dividend	0.0	0.0	0.0	0.0	0.0
Cash-flow excl. organiser cash	21.7	17.1	4.6	5.4	16.4
Effects organiser cash	(0.7)	2.8	(3.5)	(3.5)	(2.8)
Cash-flow incl. organiser cash	21.0	19.9	1.2	1.9	19.2

APRIL W/COVID-19 SHOWS STABLE NON-FINS AND RENEWAL BUSINESS BUT NEGATIVE IMPACT ON NEW AND TRANSACTIONAL BUSINESSES

	FIRST MONTH OF COVID-19	POST-COVID-19	LONG-TERM
B _2C	Member adds slightly down yoy Activity up yoy, esp. News Premium: Existing payer base rather stable Premium: New business slightly down r	Member growth and activity back to normal $\blacksquare$ Overproportional job search activity expected
B ₂ B E-RECRUITING	Existing subscriber base with stable renewals New subscription business significantly down New business passive recruiting significantly down	Depending on macro economy in general Scarce candidate segments most likely w/faster recovery	Long-term outlook unchanged due to megatrend "Demographics"
MARKETING SOLUTIONS 8 EVENTS	Marketing Solutions transactional, slightly down Events generally strongly affected п	Marketing Solutions back to normal XING Events: depending on social distancing policy. Virtual events potential new opportunity

OUR BUSINESS MODEL IS COMPARATIVELY RESILIENT; NEW OUTLOOK

RESILIENCE

SUBSCRIPTION BASED REVENUES

~80% subscription based, mainly auto-renewal

GRANULARITY OF CUSTOMER BASE

Very diversified user and customer base

UP-FRONT PAYMENT Subscription packages are usually paid upfront

DIGITAL OPERATIONS Majority of operations are purely digital

OUTLOOK

OUTLOOK UPDATE BASED ON COVID-19 EFFECT Revenues: € 275 - 285M EBITDA margin: ~30%

DIVIDEND PROPOSAL UNCHANGED $\epsilon$ 2.59 PER SHARE

THANK YOU THOMAS!

THANK YOU FOR YOUR ATTENTION.