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New Work SE

Interim / Quarterly Report Nov 7, 2018

303_10-q_2018-11-07_202d00ef-d67e-4fe6-aa9c-0006e2936cac.pdf

Interim / Quarterly Report

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INTERIM REPORT FOR THE PERIOD FROM JANUARY 1 TO SEPTEMBER 30, 2018

Q3

Consolidated key figures

Unit 9M 2018 9M 20173 Q3 2018 Q3 20173 Q2 2018
Total revenues 1 in € million 170.0 134.9 59.5 48.6 56.6
B2C segment in € million 74.3 65.1 25.2 23.5 24.8
B2B E-Recruiting segment in € million 77.9 55.6 28.2 20.3 26.1
B2B Advertising & Events segment 2 in € million 14.3 11.4 4,7 4.0 4.6
kununu International segment in € million 1.1 1.0 0.5 0.3 0.3
EBITDA in € million 53.3 45.7 19.9 17.2 18.6
EBITDA margin in % 31 34 33 35 33
Net profit/loss for the period in € million 24.5 20.8 9.1 8.0 9.2
Earnings per share (diluted) in € 4.36 3.70 1.62 1.42 1.64
Cash flow from operations in € million 59.1 51.8 17.3 17.8 16.8
XING users Germany, Austria,
Switzerland (D-A-CH), total
in million 15.8 13.8 15.8 13.8 15.3
thereof platform members in million 14.8 12.9 14.8 12.9 14.4
thereof subscribers in thsd. 1,017 985 1,017 985 1,010
InterNations members in million 3.2 2.7 3.2 2.7 3.0
thereof subscribers in thsd. 133 120 133 120 128
B2B E-Recruiting customers, D-A-CH in thsd. 21.5 18.9 21.5 18.9 20.4
thereof B2B E-Recruiting (subscription) in thsd. 10.3 7.3 10.3 7.3 9.2
B2B Advertising & Events customers, D-A-CH in thsd. 8.7 7.9 8.7 7.9 8.5
Employees number 1,512 1,213 1,512 1,213 1,472

1 Total revenues incl. other operating income

2 Incl. intercompany revenues

3 Restated retrospectively due to IFRS 15/16, change in accordance with IAS 8

Contents

4 TO OUR SHAREHOLDERS

10 INTERIM GROUP MANAGEMENT REPORT 18 INTERIMCONSOLIDATED FINANCIALSTATEMENTS

38 SERVICE

38 Financial calendar, Publishing information and contact

XING is the social network for business professionals.

The leading social network for business professionals in the German-speaking market gives advice and support to its members during the upheavals in the world of work. In an environment marked by a shortage of skilled workers, digitalization, and changes in values, XING helps its approximately 15 million members achieve as harmonious a work / life balance as possible. For example, members can use XING Jobs to find the position that meets their individual needs, keep up to date with the news offerings on XING and participate in the debate, or find out about changes and trends in the new world of work on the XING spielraum topics portal.

Established in 2003, XING has been listed since 2006, and has been a TecDAX member since September 2011 and also an SDAX member since September 2018. Members can meet and exchange views on XING in around 80,000 groups or get together at one of the more than 150,000 relevant events for professionals that are organized each year. XING has a presence in Hamburg, Munich, Barcelona, Vienna, Zurich and Porto. Please visit www.xing.com for further details.

TO OUR SHAREHOLDERS

5 Management Board letter

8 XING shares

MANAGEMENT BOARD LETTER

Dear Shareholders,

It is 15 years since Lars Hinrichs founded XING, then called OpenBC, on Hamburg's Gänsemarkt. What began as a start-up is now a listed medium-sized company whose mission is to help its members lead better professional lives. The changing world of work is one of the biggest challenges facing our generation. How is the digital transformation changing what we define as work? How can as many people as possible benefit from the changes currently underway? How do we want to work?

We are playing an active part in this discussion and providing ideas and services to help make the future world of work a better one. By doing so, we are helping our members to benefit from these changes. To our great satisfaction, this approach is proving to be economically successful for both us and you. The first nine months of the current financial year were once again highly positive for us. We recorded significant growth in all business units and maintained our growth momentum. Total revenues increased by 26 percent in the first three quarters to €170.0 million, a sharp rise compared to the previous year (€134.9 million).

The B2B E-Recruiting unit, which helps HR departments save time and money by recruiting efficiently, increased its revenues by 40 percent in the first nine months of the year (38 percent when adjusted for acquisitions) to €77.9 million (€55.6 million), recording higher revenue growth than any other segment. Revenues in the B2C segment, which reports income from XING members for paid services, rose by 14 percent in the first three quarters of the year (by 5 percent when adjusted for acquisitions) to €74.3 million (€65.1 million). The B2B Advertising & Events segment also recorded strong growth, with revenues up 26 percent to €14.3 million (previous year: €11.4 million).

The Company also recorded exceptionally positive membership growth. More than 1.4 million new members registered with a profile on www.xing.com in the first nine months of the current financial year. As a result, XING had more than 15.8 million users of XING products and services, including 14.8 million XING members, at the end of the third quarter. XING even reached the 15 million member mark at the start of November.

As you can see: XING's 15th anniversary has got off to a great start. In the first nine months of the year, we further strengthened our position as the leading professional network in the German-speaking world and achieved double-digit growth in all business units.

As I have already mentioned, the world of work is undergoing a fundamental shift. As the largest professional network in the German-speaking world, we experience this change every day. We want to contribute our experience to the discussion. To mark our 15th anniversary, we have collaborated with Prof. Peter Wippermann, one of Germany's most prominent trend researchers and futurologists, to produce the "New Work Trendbook", which highlights the 15 most important trends that will shape our professional lives over the coming years. The most important developments are grouped into three chapters focusing on employees, companies and society.

Dear shareholders, as you can see, we are taking full advantage of the opportunities presented by digitalization and change in the world of work to ensure that we can continue to pursue our vision and mission with total commitment. We will continue to help our members to live their best professional lives and realize their potential while at the same time supporting companies as they seek to gain a strategic advantage in the "war for talents".

Thank you for your commitment and trust in XING. We hope you will continue to give us your support.

Hamburg, November 2018

Kind regards,

Dr. Thomas Vollmoeller, Chief Executive Officer of XING SE

XING SHARES

Basic data about the XING share

Key data on the XING share at a glance

Number of shares as of September 30, 2018 5,620,435
Share capital in € 5,620,435
Share type Registered shares
IPO 07.12.2006
ISIN DE000XNG8888
Bloomberg O1BC:GR
Reuters OBCGn.DE
Transparency level Prime Standard
Index SDAX/TecDAX
Sector Software
9M 2018 9M 2017
XETRA closing price at the
end of the period
€294.50 €265.00
High €326.00 €274.20
Low €277.00 €228.05
Market capitalization at the
end of the period
€1,655.2 million €1,489.4 million
Average trading volume per day (XETRA) 4,093 7,812
TecDAX ranking
based on free-float
market capitalization
25 22
based on trading volume 34 31
SDAX ranking
based on free-float
market capitalization
114 N/A
based on trading volume 144 N/A
Earnings per share (diluted) €4.36 €3.70

Shareholder structure in September 2018

Share price performance vs. indices in the first nine months of 2018

Analyst recommendations for the XING share November 2018

Broker Analyst Recommendation Price target
Berenberg Bank Sarah Simon Hold €270
Commerzbank Heike Pauls Hold €290
Deutsche Bank Nizla Naizer Buy €311
Equinet Simon Heilmann Buy €305
Hauck & Aufhäuser Pierre Gröning Buy €310
Warburg Research Jochen Reichert Hold €312

INTERIM GROUP MANAGEMENT REPORT

for the period from January 1 to September 30, 2018

Results of operations in the Group

Revenues (incl. other operating income) in € million

Earnings per share in €

EBITDA in € million

9M 20171

REVENUES

Revenues of the XING Group incl. other operating income rose from €134.9 million by 26 percent to €170.0 million in the 2018 reporting period. Excluding the companies acquired in July 2017 (M&A effects), organic growth amounted to 21 percent. At €2.7 million, other operating income was slightly above the prior-year-figure of €2.2 million.

All prior-year figures included in this report have been adjusted retrospectively due to the entry into force of IFRS 15/16 to ensure comparability with current results and key figures. IFRS 16 was applied early as of January 1, 2018.

9M 2018

PERSONNEL EXPENSES

At the end of September 2018, we had 1,512 employees (September 2017: 1,213), which represents an increase of 299 employees (+25 percent).

MARKETING EXPENSES

Marketing expenses rose 36 percent to €20.4 million in the first nine months of the year. Our focus was on further increasing campaigns in the B2B E-Recruiting segment and further expanding the presence of XING and Prescreen at the "Zukunft Personal" human resources conference compared to the previous year. Accordingly, the marketing expenses ratio rose slightly year on year from 11 percent to 12 percent.

OTHER OPERATING EXPENSES

Other operating expenses rose by 27 percent in the reporting period, from €25.1 million to €31.8 million. The main operating expense items here include IT and other services at €11.5 million (previous year: €8.2 million), travel and entertainment at €3.9 million (previous year: €3.2 million), and server hosting, administration and traffic at €3.3 million (previous year: €2.4 million). The notes to the financial statements include a detailed table of all items reported under other operating expenses.

EBITDA

We gave a substantial boost to our operating result (EBITDA) in the 2018 reporting period, as EBITDA of the XING Group rose by 17 percent to €53.3 million (previous year: €45.7 million).

DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES

Depreciation, amortization and impairment losses rose by 37 percent, from €11.9 million in the previous year to €16.3 million. This includes €2.0 million for the amortization of assets from purchase price allocation for Prescreen GmbH and InterNations GmbH, which were acquired in the third quarter of 2017. Depreciation, amortization and impairment losses in the reporting period include insignificant impairment losses (previous year: €0.4 million). Amortization of internally generated software amounted to €5.2 million (previous year: €4.2 million). Depreciation from the application of IFRS 16 amounting to € 3.0 million (previous year: €2.3 million) is also included, the increase of which is due to the additional rental of office space.

FINANCIAL RESULT AND TAXES

At €–0.8 million, the financial result in the reporting period was significantly improved on the previous year's figure of €–2.6 million. In April 2018, XING entered into an agreement with the sellers of BuddyBroker AG to cancel the variable payment of the contingent purchase price in favor of a fixed payment of €585 thousand which is shown under finance costs. The agreement led to a reversal of the original earnout liability in the amount of €1,604 thousand. This resulted in a net change of €1.0 million in the financial result.

Current taxes are determined by the companies of the XING Group based on the tax laws applicable in their country of domicile. Tax expense amounted to €11.7 million in the reporting period, up from €10.3 million in the prior-year period.

CONSOLIDATED NET PROFIT AND EARNINGS PER SHARE

Consolidated net profit in the first nine months of 2018 was €24.5 million, up from €20.8 million in the first nine months of 2017. This gives rise to earnings per share of €4.36, compared with €3.70 per share in the prior-year period. Earnings per share therefore rose by 18 percent year on year.

Segment performance

B2C SEGMENT

B2C segment revenues in € million

Segment revenues up 14 percent

In the B2C segment, revenues grew by 14 percent in the reporting period to €74.3 million (previous year: €65.1 million). Excluding the InterNations M&A transaction carried out in July 2017, organic segment growth totaled 5 percent. This revenue growth is primarily attributable to the addition of around 32,000 new subscribers to the XING platform and around 13,000 new subscribers to our www.internations.org expat platform since September 2017. As a result, the number of subscribers in the D-A-CH region on www.xing.com reached 1.017 million at the end of September 2018 (previous year: 985 thousand). At InterNations, around 133,000 expats opted for the fee-based Ambassador membership.

At €32.3 million, segment EBITDA was slightly below the prior-year-figure of €35.8 million due to increased investment in new B2C products. This meant that the segment EBITDA margin was 44 percent compared with 55 percent in the prior-year period.

InterNations platform subscribers in thousand

XING platform subscribers in thousand

XING membership base expands to 14.8 million

We once again recorded numerous new members for the XING platform in the first nine months of 2018, with the membership base rising by 1.4 million to 14.8 million since the end of 2017. Including XING Events users, total XING users thus came to 15.8 million at the end of September 2018 (September 30, 2017: 13.8 million).

Member growth (D-A-CH) in million1

1 Rounding differences are possible

InterNations launches segment for employers operating internationally

Employers pay large sums to recruit staff from abroad or to send them there. Nevertheless, investing in visas, relocation and accommodation is only one element of a successful relocation. The social integration of expats is just as important. The shortage of skilled workers is putting companies in a tight spot and requiring them to be attractive to potential employees. An InterNations membership can help companies to convince employees to accept a foreign assignment. Until now, each member had to bear the costs of this themselves, but InterNations recently began offering this solution to corporate customers too. This means that companies pay the membership fees of employees they send abroad, enabling employers to ensure that their staff feel at ease in a foreign country and prevent them from bringing these assignments to a premature end. InterNations' first corporate customers include Merck and Volkswagen.

B2B E-RECRUITING SEGMENT

The B2B E-Recruiting segment continued its dynamic growth during the reporting period. Revenues in this segment rose by 40 percent, thus making a significant contribution to the Group's growth over the past twelve months. Excluding Prescreen GmbH, acquired in July 2017, revenue grew by 38 percent.

The primary driver for this dynamic growth is strong new customer growth for our XING 360° recruiting solution and the continued strong growth of employer branding profiles under the kununu brand and in the Active Recruiting subsegment. As a result, our B2B E-Recruiting contract customer base (subscription) rose from 7.1 thousand to 10.4 thousand over the past twelve months, an increase of 41 percent.

On the back of the dynamic revenue growth, operating profit in the segment (EBITDA) increased by 38 percent. Segment EBITDA thus came to €51.1 million (previous year: €36.9 million). The segment's EBITDA margin was 66 percent in the reporting period (previous year: 66 percent).

XING and Prescreen speed up recruiting with integrated applicant tracking system

The shortage of skilled workers is a very real problem for many HR managers, as they need more and more time to fill their vacancies, with some positions even remaining completely unfilled. The results of a recent forsa study conducted on behalf of XING E-Recruiting clearly shows how serious the labor market situation is becoming. A good three-quarters of the 200 HR managers surveyed stated that they need up to six months to fill managerial roles. Seventy-three percent of respondents reported a rise in time-to-hire – the time HR staff need to find candidates for a vacancy – over the past five years. A similar number of those surveyed expected this trend to continue over the next five years. Companies reported higher staffing times, particularly for IT professionals (68 percent) as well as engineers and technical professions (62 percent).

In September 2018, we introduced an integrated applicant tracking system from Prescreen that gives HR managers access to almost 15 million potential candidates via www.xing.com and enables them to react better under these difficult conditions.

In-depth integration with XING has resulted in an extensively redesigned Prescreen offering with a vastly different range of functions compared to conventional applicant tracking systems. Where recruiters generally have to ensure that candidates are entered into their system, Prescreen will enable them to select and make direct contact with candidates from the system.

The core of Prescreen's technology remains its matching technology, which matches candidates with the job profile based on numerous criteria and shows to what extent an applicant fits the advertised role. This cloud-based system can be accessed intuitively via Internet browsers, can be flexibly used and is ready for use with hardly any implementation effort compared to desktop solutions. It can also be customized to suit the user's needs to replicate existing business processes as closely as possible. In addition, recruiters using Prescreen can choose directly from a preselected list of talented individuals via XING TalentpoolManager. For example, this includes candidates who have indicated an interest in working for the company on XING. Employee referrals entered via XING ReferralManager are also automatically synchronized into each individual preselection. Our experience shows that candidates from these talent pools are much more likely than others to be interested in a position with the company. If a company receives an application via email or other platforms, as is often the case, Prescreen now offers the possibility of linking this to the applicant's XING profile, thus enabling the company to stay fully up to date. While HR departments will also be able to publish open positions on more than 300 job portals via Prescreen in the future, they can also advertise vacancies on XING at no extra cost with immediate effect, enabling them to reach almost 15 million knowledge workers in the German-speaking market.

XING establishes data-based recruiting

HR managers have to fill roles under difficult labor market conditions and continually justify their performance to internal stakeholders when they fail to recruit new staff. As a result, more and more companies are using data-based approaches to bolster and better manage their recruitment efforts.

Recruiter Insights is a smart new central cockpit launched by XING that summarizes all relevant recruitment figures in one place.

In the future, HR managers will be able to base their decisions on meaningful data. Recruiter Insights brings together the most important figures from all XING E-Recruiting channels used, including XING TalentManager, job advertisements, employee referrals and each company's talent pool. Clear displays highlight the most successful recruiting channels, answering questions such as: "How high is the response rate to my messages in XING TalentManager?" and "How many candidates are bookmarking my job advertisements or indicating an interest in working for my company on the XING platform?" While Recruiter Insights consolidates key figures to answer these and other questions, the cockpit raises awareness of essential recruitment KPIs and can become a strategic management tool for staff recruitment.

B2B ADVERTISING & EVENTS SEGMENT

B2B Advertising & Events segment revenues in € million

In the B2B Advertising & Events segment, where we combine XING Marketing Solutions and our events business, we lifted revenues by 25 percent year on year to €14.3 million in the first nine months of 2018 compared to €11.4 million in the same period last year.

Segment EBITDA stagnated year on year at €3.4 million as a result of planned investments in our local presence, reducing the segment's EBITDA margin from 30 percent to 24 percent.

B2B customers are a primary driver of the segment's revenue growth, with their numbers rising from 8.0 thousand to 9.5 thousand as of the end of September 2018.

We also announced a partnership with full-service guest management provider FastLane in the Events subsegment in the third quarter of 2018. The aim of this collaboration is to enable organizers to manage event entry in a modern yet safe way, including entry by facial recognition. Up to 400 participants can be registered each hour with XING Events and the FastLane pro badging kiosk.

SEGMENT KUNUNU INTERNATIONAL

This segment mainly generates revenues relating to the provision of services (9M 2018: €1.1 million vs. 9M 2017: €1.0 million) for the joint venture. XING's share of the joint venture's net profit/loss for the year is accounted for as the share of profits and losses of equity-accounted investments.

MANAGEMENT BOARD MATTERS

Dr. Thomas Vollmoeller has informed the Supervisory Board that he will not be available for another term as CEO after his contract will have expired at the end of 2020 and he has reached the age of sixty. The Supervisory Board intends to introduce a new CEO in the course of 2020, who will successfully continue XING SE's growth trajectory in the coming years. Thomas Vollmoeller is expected to join the Supervisory Board after a cooling-down period.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

for the period from January 1 to September 30, 2018

Consolidated statement of comprehensive income

of XING SE for the period from January 1 to September 30, 2018

Consolidated statement of comprehensive income

in € thousand Note 01/01/2018–
09/30/2018
01/01/2017–
09/30/20171
01/07/2018–
09/30/2018
01/07/2017–
09/30/20171
Service revenues 5 167,254 132,715 58,511 47,980
Other operating income 7 2,733 2,183 946 636
TOTAL OPERATING INCOME 169,987 134,898 59,457 48,616
Personnel expenses – 64,446 – 49,056 – 22,191 – 17,711
Marketing expenses – 20,403 – 15,015 – 6,388 – 4,954
Other operating expenses 8 – 31,808 – 25,132 – 10,997 – 8,720
EBITDA 53,330 45,695 19,881 17,231
Depreciation, amortization and impairment losses 9 – 16,325 – 11,885 – 6,287 – 4,372
EBIT 37,005 33,810 13,594 12,859
Share of profits and losses of
equity-accounted investments
11 – 941 – 2,912 0 – 767
Finance income 2 10 1,707 568 65 2
Finance costs 3 10 – 1,562 – 303 – 287 – 98
EBT 36,209 31,163 13,372 11,996
Taxes on income – 11,728 – 10,349 – 4,243 – 4,025
CONSOLIDATED NET PROFIT / LOSS 24,481 20,814 9,129 7,971
Earnings per share (basic) 4.36 3.70 1.62 1.42
Earnings per share (diluted) 4.36 3.70 1.62 1.42
CONSOLIDATED NET PROFIT / LOSS 24,481 20,814 9,129 7,971
Currency translation differences 36 – 42 26 – 3
Remeasurement of available-for-sale assets – 239 79 – 49 3
OTHER COMPREHENSIVE INCOME – 203 37 – 23 0
CONSOLIDATED TOTAL COMPREHENSIVE INCOME 24,278 20,851 9,106 7,971

1 Previous year's figures adjusted

2 Finance income includes non-recurring, non-operating income of €1,604 thousand from the acquisition of BuddyBroker

3 Finance costs includes non-operating expenses of €585 thousand from the acquisition of BuddyBroker

Consolidated statement of financial position

of XING SE as of September 30, 2018

Assets

in € thousand
Note
09/30/2018 12/31/2017/
01/01/20181
Intangible assets
Purchased software 9,430 8,970
Internally generated software 63,081 48,910
Goodwill 49,778 49,778
Other intangible assets 5,581 7,076
Property, plant and equipment
Leasehold improvements 285 340
Other equipment, operating and office equipment 9,114 8,348
Advance payments made and construction in progress 144 203
Lease assets
3.4
12,823 11,501
Financial assets
Financial assets at amortized cost 453 49
Financial assets at fair value (other comprehensive income) 29,583 29,936
Prepaid expenses 633 700
Deferred tax assets 3,765 4,215
NON-CURRENT ASSETS 184,670 170,026
Receivables and other assets
Receivables from services 31,810 28,336
Contract assets
3.2
2,856 2,216
Other assets 5,043 5,155
Cash and short-term deposits
Cash 48,207 32,327
Third-party cash 6,495 4,219
CURRENT ASSETS 94,411 72,253
279,082 242,279

1 Previous year's figures adjusted

Equity and liabilities

in € thousand Note 09/30/2018 12/31/2017/
01/01/20181
Subscribed capital 6 5,620 5,620
Treasury shares 6 0 0
Capital reserves 6 22,644 22,622
Other reserves 6 2,405 2,338
Net retained profits 6 61,775 47,007
EQUITY 92,444 77,587
Deferred tax liabilities 23,449 20,128
Contract liabilities 3.2 2,276 2,260
Other provisions 1,323 655
Financial liabilities at fair value (through profit or loss) 12,001 14,724
Lease liabilities 3.4 9,230 9,111
Other liabilities 3,898 3,114
NON-CURRENT LIABILITIES 52,177 49,992
Trade accounts payable 2,884 6,851
Lease liabilities 3.4 4,711 2,596
Contract liabilities 3.2 91,788 73,894
Other provisions 1,202 894
Financial liabilities at fair value (through profit or loss) 2,582 4,733
Income tax liabilities 686 271
Other liabilities 30,608 25,461
CURRENT LIABILITIES 134,461 114,700

1 Previous year's figures adjusted

279,082 242,279

Consolidated statement of cash flows

of XING SE for the period from January 1 to September 30, 2018

Consolidated statement of cash flows

in € thousand 01/01/2018–
09/30/2018
01/01/2017–
09/30/20171
01/07/2018–
09/30/2018
01/07/2017–
09/30/20171
Earnings before taxes 36,209 31,163 13,372 11,996
Amortization and write-downs of internally generated software 5,202 4,170 2,220 1,628
Depreciation, amortization and impairment losses
on other fixed assets
11,123 7,715 4,067 2,745
Finance income – 1,707 – 568 88 – 3
Interest received 45 1 44 0
Finance costs 1,562 303 135 98
Share of profits and losses of equity-accounted investments 941 2,912 0 767
Taxes paid – 8,323 – 5,842 – 3,277 – 2,031
Profit from disposal of fixed assets – 7 – 100 – 8 43
Change in receivables and other assets – 3,216 – 5,754 – 2,438 – 4,551
Change in liabilities and other equity and liabilities 1,680 9,783 3,772 8,609
Change in deferred income 0 – 4,151 0 – 4,151
Elimination of XING Events third-party obligation 17,910 15,349 483 4,162
Cash flow from operating activities – 2,276 – 3,209 – 1,208 – 1,536
CASH FLOW FROM OPERATING ACTIVITIES 59,143 51,772 17,250 17,776
Payment for capitalization of internally generated software – 19,373 – 19,888 – 5,911 – 8,426
Payment for purchase of software – 1,833 – 1,255 – 12 159
Payments for purchase of other intangible assets – 208 – 491 9 – 144
Proceeds from the disposal of fixed assets 62 127 101 – 27
Payments for purchase of property, plant and equipment – 4,210 – 1,664 – 1,697 – 781
Payment for acquisition of consolidated companies
(less funds acquired)
– 4,644 – 26,134 0 – 25,402
Payment for equity-accounted investments – 1,228 – 3,281 0 0
Payments for investments in other financial assets 0 – 29,954 0 0
CASH FLOW FROM INVESTING ACTIVITIES – 31,434 – 82,540 – 7,510 – 34,621

1 Previous year's figures adjusted

Consolidated statement of cash flows

in € thousand 01/01/2018–
09/30/2018
01/01/2017–
09/30/20171
01/07/2018–
09/30/2018
01/07/2017–
09/30/20171
Payment of regular dividend – 9,442 – 7,700 0 0
Payment of special dividend 0 – 8,993 0 0
Interest paid (incl. interest under IFRS 16) – 134 – 136 – 53 – 46
Payment for leases (reduction of liability only) – 2,032 – 2,560 – 619 – 855
Payments for own shares – 270 0 0 0
Cash flows from financing activities 89 0 89 0
CASH FLOWS FROM FINANCING ACTIVITIES – 11,789 – 19,389 – 583 – 901
Currency translation differences – 38 – 72 – 16 – 77
Change in cash and cash equivalents 15,882 – 50,231 9,141 – 17,823
Own funds at the beginning of the period 32,327 83,428 39,068 51,022
OWN FUNDS AT THE END OF THE PERIOD 2 48,209 33,197 48,209 33,199
Third-party funds at the beginning of period 4,219 3,214 5,287 4,887
Change in third-party funds 2,276 3,209 1,208 1,536
THIRD-PARTY FUNDS AT THE END OF THE PERIOD 6,495 6,423 6,495 6,423

1 Previous year's figures adjusted 2 Funds consist of liquid funds.

Consolidated statement of changes in equity

of XING SE for the period from January 1 to September 30, 2018

Consolidated statement of changes in equity

In € thousand Subscribed
capital
Capital
reserves
Treasury
shares
at cost
Other
reserves
Net retained
profits
Total
equity
AS OF 01/01/2017 (AS PREVIOUSLY REPORTED) 5,620 22,622 0 2,438 39,182 69,862
Adjustment from first-time application of IFRS 15 0 0 0 0 – 943 – 943
Adjustment from first-time application of IFRS 16 0 0 0 0 – 192 – 192
AS OF 01/01/2017 (RESTATED) 5,620 22,622 0 2,438 38,047 68,727
Other comprehensive income 0 0 0 0 0 0
Consolidated net profit/loss (restated) 0 0 0 39 20,814 20,853
Consolidated total comprehensive income
(restated)
0 0 0 39 20,814 20,853
Regular dividend for 2016 0 0 0 0 – 7,700 – 5,789
Special dividend 0 0 0 0 – 8,993 – 8,431
AS OF 09/30/2017 (RESTATED) 5,620 22,622 0 2,477 42,168 72,887
A S O F 1 2/31/2017 A N D 01/01/201 8
(AS PREVIOUSLY REPORTED)
5,620 22,622 0 2,338 48,404 78,984
Adjustment from first-time application of IFRS 15 0 0 0 0 – 1,258 – 1,258
Adjustment from first-time application of IFRS 16 0 0 0 0 – 139 – 139
AS OF 01/01/2018 (RESTATED) 5,620 22,622 0 2,338 47,007 77,587
Consolidated net profit/loss 0 0 0 0 24,481 24,481
Other comprehensive income 0 0 0 – 203 0 – 203
Consolidated total comprehensive income
(restated)
0 0 0 – 203 24,481 24,277
Share-based payments with equity
instrument compensation
0 0 0 270 – 270 0
Purchase of own shares 0 0 – 270 0 0 – 270
Issue of own shares 0 0 181 0 0 181
Sales of own shares 0 22 89 0 0 111
Regular dividend for 2017 0 0 0 0 – 9,442 – 9,442
Special dividend 0 0 0 0 0 0
AS OF 09/30/2018 5,620 22,644 0 2,405 61,775 92,444

Notes to the interim consolidated financial statements

for the period from January 1 to September 30, 2018

1. Information on the Company and the Group

The registered offices of XING SE are located at Dammtorstrasse 30, 20354 Hamburg, Germany; the Company is registered at the Amtsgericht (local court) Hamburg under HRB 148078. The parent company of XING SE is Burda Digital GmbH, Munich, and the ultimate parent company of XING SE since December 18, 2012 has been Hubert Burda Media Holding Kommanditgesellschaft, Offenburg, Germany. The next most senior parent preparing consolidated financial statements is Burda Gesellschaft mit beschränkter Haftung, Offenburg.

Operating the leading social network for business professionals in the German-speaking market, XING gives advice and support to its members during the upheavals in the world of work. In an environment marked by a shortage of skilled workers, digitalization, and changes in values, XING helps its almost 15 million members achieve as harmonious a work/life balance as possible. XING generates its revenues primarily from fee-based products for end customers and businesses. It is a model in which our customers pay for most of the services provided in advance.

2. Basis of preparation of the financial statements and accounting policies

These condensed interim consolidated financial statements of XING SE for the reporting period ending on September 30, 2018, have been prepared in accordance with the International Financial Reporting Standard for interim financial

reporting (IAS 34). The condensed interim consolidated financial statements do not contain all of the information required for full annual consolidated financial statements, and should therefore be read in conjunction with the consolidated financial statements as of December 31, 2017.

The reporting period began on January 1, 2018, and ended on September 30, 2018. The corresponding prior-year period began on January 1, 2017, and ended on September 30, 2017. The interim consolidated financial statements and the interim group management report of XING SE were approved for publication on November 7, 2018, by the Management Board.

The accounting policies applied in principle to these condensed interim consolidated financial statements are consistent with those used for the consolidated financial statements as of December 31, 2017, with the exception of the matters presented under item 3. These interim financial statements have not been audited by the auditor, nor have they been subjected to a review.

Preparation of the consolidated financial statements to a limited extent requires management to make assumptions and estimates that affect the reported amounts of assets and liabilities, income and expenses, as well as contingent liabilities. Although these estimates are made in accordance with the best knowledge of management and with due consideration being given to all available knowledge, actual results may differ from these estimates.

The amortization period, the residual values and the amortization method used for finite-lived intangible assets are reviewed regularly. The review of the remaining useful lives in the reporting period revealed that the useful life of the XING platform had been extended by a further twelve months to December 31, 2022.

3. First-time application of new IFRSs

3.1 QUANTITATIVE DISCLOSURES RESULTING FROM THE FIRST-TIME APPLICATION OF NEW IFRSS

XING applies the retrospective method in accordance with IAS 8 for the introduction of both IFRS 15 and IFRS 16.

The following tables show the effects on the consolidated financial statements as of December 31, 2017 and the quarterly reporting as of September 30, 2017:

Statement of financial position

in € thousand 12/31/2017
as reported
IFRS 15 IFRS 16 12/31/2017/
01/01/20181
Lease assets 0 0 11,501 11,501
Deferred tax assets 3,081 1,026 108 4,215
Other non-current assets 154,310 0 0 154,310
NON-CURRENT ASSETS 157,391 1,026 11,609 170,026
Contract assets 0 2,216 0 2,216
Other assets 5,301 0 – 146 5,155
Other current assets 64,882 0 0 64,882
CURRENT ASSETS 70,183 2,216 – 146 72,253
Net retained profits 48,404 – 1,258 – 139 47,007
Other equity 30,580 0 0 30,580
EQUITY 78,984 – 1,258 – 139 77,587
Deferred tax liabilities 19,664 432 32 20,128
Contract liabilities 2,213 47 0 2,260
Lease liabilities 0 0 9,111 9,111
Other non-current liabilities 18,493 0 0 18,493
NON-CURRENT LIABILITIES 40,370 479 9,143 49,992
Lease liabilities 0 0 2,596 2,596
Contract liabilities 69,873 4,021 0 73,894
Other liabilities 25,598 0 – 137 25,461
Other current liabilities 12,749 0 0 12,749
CURRENT LIABILITIES 108,220 4,021 2,459 114,700

Statement of comprehensive income

in € thousand 9M 2017
as reported
IFRS 15 IFRS 16 9M 20171
Service revenues 132,274 441 0 132,715
Personnel expenses – 49,240 184 0 – 49,056
Marketing expenses – 13,940 – 1,075 0 – 15,015
Other operating expenses – 27,570 0 2,438 – 25,132
Other income/expenses 2,183 0 0 2,183
EBITDA 43,707 – 450 2,438 45,695
Depreciation, amortization and impairment losses – 9,589 0 – 2,296 – 11,885
EBIT 34,118 – 450 142 33,810
Finance costs 214 0 – 89 – 303
Other financial result – 2,344 0 0 – 2,344
EBT 31,560 – 450 53 31,163
Taxes on income – 10,477 146 – 18 – 10,349
CONSOLIDATED NET PROFIT 21,083 – 304 35 20,814
Earnings per share (basic/diluted) €3.75 €– 0.05 €0.01 €3.70
Other comprehensive income 37 0 0 37
CONSOLIDATED TOTAL COMPREHENSIVE INCOME 21,120 – 304 35 20,851

1 Restated

Statement of cash flows

in € thousand 9M 2017
as reported
IFRS 15 IFRS 16 9M 20171
Earnings before taxes 31,560 – 450 53 31,163
Depreciation, amortization and impairment losses
on other fixed assets
5,419 0 2,296 7,715
Finance costs 214 0 89 303
Change in assets – 5,359 – 395 0 – 5,754
Change in equity and liabilities 8,727 845 211 9,783
Other items 8,562 0 0 8,562
CASH FLOW FROM OPERATING ACTIVITIES 49,123 0 2,649 51,772
CASH FLOW FROM INVESTING ACTIVITIES – 82,540 0 0 – 82,540
Dividend – 16,693 0 0 – 16,693
Interest paid – 47 0 – 89 – 136
Payments for leases 0 0 – 2,560 – 2,560
CASH FLOWS FROM FINANCING ACTIVITIES – 16,740 0 – 2,649 – 19,389

1 Restated

3.2 FIRST-TIME APPLICATION OF IFRS 9 –

FINANCIAL INSTRUMENTS

IFRS 9 supersedes much of the guidance in IAS 39 on the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment, and hedge accounting. The application of IFRS 9 as of January 1, 2018 did not give rise to any significant changes at XING. XING did not apply hedge accounting either in the reporting period or in the comparative period.

The XING Group still does not have any interest rate or currency derivatives. With regard to trade accounts receivable and contract assets, there is no change in the application of the permissible simplified approach to impairment under IFRS 9 because XING already applied a comparable method under IAS 39. The reason for this is that due to its business model XING has a large number of small receivables, and services are normally paid for in advance. The receivables are impaired based on the respective dunning level/number of

days overdue, using empirical values. Individual receivables are initially impaired in advance if there are objective indications of overdue debt. On account of the prepaid business model, contract assets are not impaired. Because of the mostly short terms, revenues do not include a significant financing component.

For the purposes of managing short- and medium-term surplus liquidity, XING has acquired several funds focused on nominal capital preservation. These funds have been classified pursuant to IAS 39 as available-for-sale financial assets. Since these investments do not solely provide for interest and principal repayments at set times, the changes in fair value must be recognized in profit or loss. XING makes use of the option to present the change in fair value during the holding period in other comprehensive income and only reclassify the cumulative gains and losses to profit or loss in the event of disposal.

Financial assets measured at amortized cost relate in particular to trade accounts receivable and rent deposits.

Financial liabilities that had already been measured as at fair value through profit or loss under IAS 39 relate solely to obligations arising from contingent purchase prices for acquisitions. Changes in fair value will continue to be recognized in profit or loss in accordance with IFRS 9.

3.3 FIRST-TIME APPLICATION OF IFRS 15 – REVENUE FROM CONTRACTS WITH CUSTOMERS

XING applied IFRS 15, including the clarifications that have now been adopted, in the reporting period for the first time. Here, the retrospective method in accordance with IAS 8 and the prior-year comparatives are applied accordingly. In this context, the changes to the statement of financial position, statement of comprehensive income and statement of cash flows explained in 3.1 were made.

The following circumstances result in a change in recognition:

1. Setup services for fixed-term products

The Group recognizes revenue from setup services generated in the B2B segments over the initial minimum term of the subsequent fixed-term products. The support provided to the customer during setup has until now been recognized as a separate deliverable. As of December 31, 2017, first-time application resulted in the recognition of higher contract liabilities of €3,305 thousand.

2. Sales commissions

Sales employees and external agencies are partly paid performance-related remuneration. If these payments are entirely variable, they are allocated over the term of the products sold. As of December 31, 2017, first-time application resulted in the recognition a contract asset of €1,449 thousand.

  1. Principal/agency relationships

If XING controls the services that are to be provided, bears the end customer's credit risk and the agent is not able to set its selling prices itself, XING is acting as principal. Due to its business model (platform operation), this will result in XING reporting more transactions as principal in future, which leads to an increase in contract assets/contract liabilities of €763 thousand as of December 31, 2017.

The Company recognized €468 thousand in deferred tax assets and €1,067 thousand in deferred tax liabilities as of December 31, 2017.

3.4 FIRST-TIME APPLICATION OF IFRS 16 – LEASES

XING applied IFRS 16 early as of January 1, 2018. Here, the retrospective method is applied and the prior-year comparatives are restated accordingly. The quantitative effects on the statement of financial position, the statement of comprehensive income and statement of cash flows are shown under 3.1.

In this connection, XING leases office space in particular. The leases typically have a term of up to five years, frequently with renewal options for XING. The precise terms and conditions of the agreements vary depending on the country and the leased property. Leases with terms of up to one year continue to be recognized as an expense.

Rents are recognized as lease assets (right-of-use assets) at their present value. At the commencement date, a lease liability is recognized in the same amount. When the liability is being determined, the following payments are considered:

  • ➡ Fixed payments to the lessor
  • ➡ Variable lease payments that depend on an index
  • ➡ Amounts to be payable by the lessee under residual value guarantees
  • ➡ Exercise price of a purchase option if it is reasonably certain that this will be exercised
  • ➡ Payments of penalties for terminating the lease it is reasonably certain that this option will be exercised

The cost of the right-of-use asset shall comprise:

  • ➡ The amount of the initial measurement of the lease liability
  • ➡ Any lease payments made before the commencement date
  • ➡ Any initial direct costs incurred by the lessee

Costs incurred to achieve the condition intended by XING and restoration obligations will continue to be presented under leasehold improvements.

The maturities of lease liabilities at the time of first-time application (January 1, 2018) are as follows:

3.5 OTHER STANDARDS AND INTERPRETATIONS
APPLICABLE FOR THE FIRST TIME

Revisions of IAS 40, IFRS 2, IFRS 4 and IFRIC 22 were applicable for the first time in the reporting period. These have no effects on XING's reporting.

3.6 IFRSs THAT ARE NOT YET MANDATORY

XING does not expect the other standards that have been endorsed by the EU but are not yet mandatory to have any effects on its consolidated financial statements.

in € thousand Lease liabilities as of
12/31/2017 / 01/01/2018
Up to 1 year 2,621
1 – 2 years 3,912
2 – 5 years 5,428
TOTAL CONTRACT PAYMENTS 11,961
Discount – 254
CARRYING AMOUNT OF LIABILITIES 11,707

For discounting purposes XING uses the marginal cost of capital that is available for committed credit facilities. This is between 0.73% and 1.18% for the current leases.

As a result, the asset is written down on a straight-line basis over the expected useful life under depreciation, amortization and impairment losses and the discounted liability is unwound in the financial result. The interest and the principal repayment are recognized under cash flows from financing activities.

4. Acquisitions in the reporting period

With respect to the contingent purchase price, the purchase price allocation of InterNations GmbH has been completed. The figures published as of December 31, 2017 have not been restated.

5. Segment information

The column with the prior-year comparative figures has been adjusted accordingly as a result of applying IFRS 15 and IFRS 16.

B2C B2B
E-Recruiting
B2B
Advertising&Events
kununu
International
Consolidation
of intersegment
revenues / expenses
Total
segments
in € thousand 01/01–
09/30/
2018
01/01–
09/30/
20171
01/01–
09/30/
2018
01/01–
09/30/
20171
01/01–
09/30/
2018
01/01–
09/30/
20171
01/01–
09/30/
2018
01/01–
09/30/
20171
01/01–
09/30/
2018
01/01–
09/30/
20171
01/01–
09/30/
2018
01/01–
09/30/
20171
Revenues
(from third parties)
74,263 65,064 77,934 55,619 13,936 11,019 1,121 1,013 167,254 132,715
Intragroup revenues 0 0 0 0 410 419 0 0 – 410 – 419 0 0
Total revenues 74,263 65,064 77,934 55,619 14,346 11,438 1,121 1,013 – 410 – 419 167,254 132,715
Intragroup segment
expenses
– 410 – 419 0 0 0 0 0 0 410 419 0 0
Other segment expenses – 41,523 – 28,855 – 26,880 – 18,723 – 10,897 – 8,030 – 1,077 – 940 – 80,377 – 56,548
Segment operating result 32,330 35,790 51,054 36,896 3,449 3,408 44 73 86,877 76,167
Other operating
income/expenses
– 33,547 – 30,472
EBITDA 53,330 45,695

1 Restated pursuant to IAS 8

Revenues by region

in € thousand 01/01/2018–
09/30/2018
01/01/2017–
09/30/20171
D-A-CH 153,428 124,668
International 13,826 8,047
167,254 132,715

1 Restated

The Company is not reliant on major customers because a significant percentage of Group revenues is not generated with any single customer.

As was the case as of December 31, 2017, the non-current assets (excl. deferred tax assets and other financial assets) of €151,322 thousand (December 31, 2017: €135,875 thousand) are attributable to the D-A-CH region.

6. Equity

As of September 30, 2018, XING SE had share capital of €5,620,435 (December 31, 2017: €5,620,435) and the Company did not hold any treasury shares. The Company had decided to grant one XING share to each eligible employee of the Group. For this purpose, it acquired 990 shares during the reporting period. The process of transferring 677 shares has been completed and 313 shares were subsequently resold.

Based on a resolution adopted by the Annual General Meeting on May 16, 2018, a dividend of €1.68 per share was paid for the 2017 financial year (2016: €1.37 per share). In the previous year, a special dividend of €1.60 per share was also paid out. With 5,620,435 shares carrying dividend rights, this corresponds to a total payout of €9.4 million (previous year: €16.9 million including the special dividend). The liquid funds totaling €48.2 million as of September 30, 2018 and XING's cash-generative business model enable the Company to pay special dividends without changing its business strategy, which is aimed at achieving growth.

7. Other operating income

Other operating income includes income of €387 thousand (previous year: €39 thousand) from currency translation and income from the disposal of equipment in the amount of €23 thousand (previous year: €100 thousand).

8. Other operating expenses

The following summary breaks down the primary items of other operating expenses:

in € thousand 01/01/2018–
09/30/2018
01/01/2017–
09/30/20171
IT services, management services 11,489 8,230
Travel, entertainment and other
business expenses
3,915 3,158
Server hosting, administration and traffic 3,272 2,376
Occupancy expenses 2,323 1,904
Other personnel expenses 2,078 1,481
Payment transaction costs 1,979 1,770
Bad debts 1,291 949
Training costs 1,176 940
Legal consulting fees 492 942
Accounting fees 479 387
Telephone/cell phone/postage/courier 452 424
Exchange rate losses 407 365
Financial statements preparation
and auditing costs
366 323
Rents/leases 336 295
Expenses attributable to prior periods 320 337
Office supplies 288 193
Supervisory Board remuneration 243 227
Other 904 831
TOTAL 31,808 25,132

1 Restated

The other expenses mainly comprise costs of contributions, other charges and insurance costs.

9. Depreciation, amortization and impairment losses

In the reporting period from January 1 to September 30, 2018, the useful life of internally generated software was extended by a further 12 months to December 31, 2022. This led to the recognition of lower amortization of €897 thousand than as stipulated in the previous amortization schedule.

10. Financial result

In April 2018, XING entered into an agreement with the sellers of BuddyBroker AG to cancel the variable payment of the contingent purchase price in favor of a fixed payment of €585 thousand which is shown under finance costs. The agreement led to a reversal of the original earn-out liability in the amount of €1,604 thousand.

11. Equity-accounted investments

XING contributed a further US\$1,500 thousand to the kununu US LLC joint venture in the reporting period. The financial result includes XING's share of the start-up loss of the joint venture in the amount of US\$1,572 thousand, of which only €941 thousand was recognized because the carrying amount was subsequently written down to zero.

12. Related parties

Please refer to the consolidated financial statements as of December 31, 2017, for information about related parties. From the perspective of XING SE, no significant changes with respect to the Burda Group occurred until September 30, 2018.

As of September 30, 2018, there are receivables in the amount of €982 thousand (December 31, 2017: €1,399 thousand) outstanding from kununu US LLC, the joint venture with Monster Worldwide Inc. These receivables are shown under trade accounts receivable.

There were no claims against members of the Management Board and the Supervisory Board as of September 30, 2018. For a market study involving a company over which a member of the Management Board has control or significant influence, a contract was signed in the reporting period with a customary market remuneration of €100 thousand.

13. Financial instruments

XING SE acquired various securities in financial year 2017 for the purpose of investing excess liquidity. The fair values of these instruments, all of which are assigned to Level 1, correspond to their notional values multiplied with the prices quoted as of September 30, 2018.

The financial liabilities assigned to Level 3 include obligations from contingent purchase prices (earn-out obligations). The following table provides an overview of the carrying amounts and fair values:

09/30/2018
in € thousand
Level Fair value through
other compre
hensive income
Fair value through
profit or loss
Financial assets at
amortized cost
Other financial
liabilities
Carrying
amount
Financial assets at fair value
Non-current assets at fair value 1 29,583 29,583
Financial assets at amortized cost
Non-current financial assets at amortized cost 453 453
Trade accounts receivable 31,810 31,810
Other assets 5,043 5,043
Cash and short-term deposits 54,702 54,702
Financial liabilities at fair value
Non-current liabilities at fair value 3 12,001 12,001
Current liabilities at fair value 3 2,582 2,582
Financial liabilities not at fair value
Current trade accounts payable 2,884 2,884
Lease liabilities 13,941 13,941
Other liabilities 7,763 7,763
12/31/20171
in € thousand
Level Fair value through
other compre
hensive income
Fair value through
profit or loss
Financial assets at
amortized cost
Other financial
liabilities
Carrying
amount
Financial assets at fair value
Non-current assets at fair value 1 29,936 29,936
Financial assets at amortized cost
Non-current financial assets at amortized cost 49 49
Trade accounts receivable 28,336 28,336
Other assets 882 882
Cash and short-term deposits 36,546 36,546
Financial assets at fair value
Non-current assets at fair value 1 29,936 29,936
Financial assets at amortized cost
Non-current financial assets at amortized cost 49 49
Trade accounts receivable 28,336 28,336
Other assets 882 882
Cash and short-term deposits 36,546 36,546
Financial liabilities at fair value
Non-current liabilities at fair value 3 14,724 14,724
Current liabilities at fair value 3 4,733 4,733
Financial liabilities not at fair value
Current trade accounts payable 6,851 6,851
Lease liabilities 11,707 11,707
Other liabilities 5,114 5,114

1 Restated

Trade accounts receivable are impaired as follows:

09/30/2018
in € thousand
Not yet due Past due
< 30 days
Past due
< 90 days
Past due
> 90 days
Total
Impairment ratio 0.6% 2.1% 9.2% 24.8% 4.6%
Gross carrying amount 19,441 7,181 2,485 4,249 33,356
Impairment – 113 – 151 – 229 – 1,052 – 1,546
12/31/20171
in € thousand
Not yet due Past due
< 30 days
Past due
< 90 days
Past due
> 90 days
Total
Impairment ratio 0.7% 2.4% 9.3% 21.1% 3.6%
Gross carrying amount 17,108 4,624 6,580 1,092 29,405
Impairment – 116 – 112 – 610 – 231 – 1,069

1 Previous year's figures adjusted

The impairment figure includes both specific valuation allowances and anticipated defaults of the total trade accounts receivable.

14. Significant events after the interim reporting period

In an agreement with Monster Worldwide, Inc. dated October 1, 2018, the XING Group acquired all shares in former joint venture kununu US, LLC, Boston, USA. The transfer will become effective on January 30, 2019 subject to the usual conditions.

Due to the short notice of this transaction, it is not possible to provide an exact estimate of the purchase price and purchase price allocation as set out in IFRS 3. The transaction will notably increase the goodwill of the kununu International segment.

Hamburg, November 7, 2018

The Management Board

Dr. Thomas Vollmoeller Dr. Patrick Alberts

Alastair Bruce Ingo Chu

Jens Pape

Financial calendar

Publication of the 2018 quarterly financial report (Q3 reporting date) November 7, 2018

Publishing information and contact

For Annual Reports, Interim Reports and current financial information about XING SE, please contact:

XING SE

Investor Relations Patrick Möller Dammtorstraße 30 20354 Hamburg Telefon + 49 40 41 91 31– 793 Telefax + 49 40 41 91 31– 44

For press inquiries and current information about XING SE, please contact:

XING SE

Corporate Communications Marc-Sven Kopka Telefon + 49 40 41 91 31– 763 Telefax + 49 40 41 91 31– 44 [email protected]

Consulting, Concept&Design Silvester Group www.silvestergroup.com

Our social media channels

Corporate blog of XING SE http://blog.xing.com

Information and news related to the capital markets Twitter: xing_ir

Topics and news related to the Company in general – German only Twitter: xing_de

Corporate information and news in English Twitter: xing_com

XING SE's YouTube channel YouTube: www.youtube.com/user/XINGcom?gl=DE

XING SE's Facebook profile Facebook: www.facebook.com/XING

This interim financial report is available in both German and English. In the event of diversity in interpretation, the German version shall prevail. Both versions and further press information are available for download at http://corporate.xing.com

www.xing.com

XING SE

Dammtorstraße 30 20354 Hamburg Germany Telefon +49 40 41 91 31– 793 Telefax +49 40 41 91 31– 44 [email protected]

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