New Work SE

Investor Presentation • Sep 19, 2016

Capital Markets Briefing - XING 2020

September 15, 2016

Executive Summary

Recap XING 2012 - 2016

• We will keep our promise and double 2012 revs by 2016
• Success based on new mission, strategy and org $\blacksquare$
• Strong track record / value accretive M&A

Market Opportunities - Summary

• Structural megatrends support our aspirations m.
• We aim to reach 2/3 white collar professionals by 2020
• Large market opportunities both in B2C and B2B

Key initiatives - Summary

• Continued revenue growth through innovation in existing products
• Additional growth opportunities through new products partly supported through M&A $\mathbf{H}$ .
• Our target keep growth speed and reach ~100m EBITDA in 2020

Financial outlook - Summary

• Grow topline 17-20%
• Slightly increase EBITDA margin to ~33%
• Reach ~ 100m EBITDA

Agenda

Recap XING 2012 - 2016

Targets 2020 and Market Opportunities D-A-CH

Key Initiatives 2017 - 2020

Financial Outlook XING 2020

Recap XING $2012 - 2016$

We will keep our promise and will double 2012 revenues and EBITDA by 2016

Success of XING due to consequent change of organization based on new vision and mission

Organizational changes as driver for innovation

Organizational Innovation 2012 - 2016

Product	Marketing	Sales	Central
• Strong innovation • Faster execution	• Regular TV campaigns • Increased B2B marketing • Optimized B2C marketing	• Sales force from 64 $(2012)$ to >150 $(2016)$ · Increased sales productivity (+30%) • Switch to "hunter/farmer" model	• Ramp up data science • Establishing Central procurement · Successful M&A • Improved HR processes

Setting the stage for further growth of XING (from 5 to 8 BU's) to secure innovation und new product launches 2016ff

Building strong M&A track record

Market Opportunities

Megatrends strongly support our aspirations

	Digitization	Shortage of skilled workforce	Changes in values of Generation Y
B2C Impact	• Work anywhere & any time • Need for digital/mobile offers	Employer assessment · Shorter retention times	• Flexibility, independence, and self-determination · Suitable work-life balance
B2B Impac t	• Adaptation of business models • Strong need for digital experts	• Increasing "war for talent" • Need for proactive recruiting and employer branding	New leadership styles $\bullet$ Flexibly regarding $\bullet$ incentives and sabbaticals

Abundant opportunities to further exploit 25m white collar and €3bn E-Recruiting market in D-A-CH

We aim to reach 2 out of 3 white collar professionals by 2020

X

Members & addressable market in million

Addressable B2C market of 2.5bn for paid memberships in D-A-CH

€3bn E-recruiting market still offering enormous growth potential for us

E-Recruiting Value Chain	Addressable market size and growth	Market Drivers	XING Share
Attract	€ 400m	Employer branding	$\epsilon$ ~50m
Source	€ 2,600m $\geq$	Digitization & active sourcing	$\sim$ 2% of market
Select	$\epsilon$ < 100m $\rightarrow$	Digitization & matching
Hire	$\epsilon$ < 100m $\rightarrow$	Onboarding	Not tapped
Retain	$\epsilon$ <100m	Development & benefits	yet
Manage	$\curvearrowright$ € 300m	Applicant Tracking Systems

Our key initiatives and goals $2017 - 2020$

15

Our target: We want to keep our speed and double our EBITDA until 2020

in Mio. EUR

Revenue growth driven by both, B2C and B2B

in Mio. EUR

B2C growing through strong innovation in current and new markets

Existing paid memberships to remain driver for B2C segment growth

XING will launch further high ARPU vertical memberships to drive topline growth

Key innovation drivers 2020

• Large installed base of members with no targeted offering today
• . Active upselling on current and growing premium member base
• Launch of further 3 5 highly targeted niche offers to expand "Pro" suite
• ARPU increase through strong focus
  on mid- to high price offers

XING will potentially enter new markets

$\bigcirc$ B2C

New B2C Markets	Rationale	XING Unfair Advantage
Learning/	• Professional development	• Events heritage
Education	• Market disruption potential	• Economic graph
Blue Collar Jobs	• New >20m B2C target group • Growing share of wallet	B2B access $\bullet$ • Current assets (Lebenslauf.com, jobbörse.com)
Vertical	· High ARPU potential	• Network skills
networks	• Internationalization potential	• Technology in place already

B2B: Growing through innovation in current markets

B2B E-Recruiting: Active Sourcing (XTM) & Employer Branding (EBP) driving growth

Key innovation drivers 2020

• XING makes market in active sourcing and employer branding
• Significant room for disruption
• XING has biggest transparency of white collar labor market
• XING has largest, most active & self updating talent pool
• Further pricing upside/pricing power

B2B E-Recruiting: Strong presence among DAX30

B2B E-Recruiting: Passive Recruiting (XJM) We will further gain market share

X

Key innovation drivers 2020 Development of paid job ad market shares 35,0% . We know candidates best StepStone.de (incl. Hotelcareer) (member profile/CV information) 30,0% Monster • ~1m white collar jobs 25,0% -CareerBuilder (~20x more vs. Stepstone) 20,0% $\rightarrow$ XING • ~1m employer reviews • Power to disrupt current job ad market -Kalaydo 15,0% • Change model if needed/necessary -LinkedIn 10,0% 6,8% Indeed (Sites, 5,0% Premium & Direct) Build Top 3 Jobs marketplace -Stellenanzeigen.de for candidates 0,0% Q2 2014 Q2 2015 Q2 2016 Q₂ 2013

B2B E-Recruiting: Passive Sourcing (XJM) New Right to play

	XJM for XING members	XJM for XING customers
Core need	"Finding the needle in the haystack"	"Staffing the position successfully"
vs. pure Job Boards	All jobs @ XING! not only those ones companies paid for XING	More candidates @ XING! Reaching also snoozers & sleepers
vs. pure Job Crawlers	XJM Most relevant jobs (incl. reviews) for me @ XING! Better recos through profile matching; transparency through kununu reviews	Better candidates @ XING! and direct access through XING network

B2B E-Recruiting: Improving existing, launch new products and expand the value chain

E-Recruiting Value Chain	XING Products Today	Tomorrow
Attract	Employer Branding Profile (kununu EBP)	Strenghthen market position in EBP (improving product, sales & marketing)
Source	XING Talentmanager (XTM), XING Jobs Marketplace (XJM)	XTM, XJM (improving product, sales & marketing New XING Referral Manager (XRM) $\bullet$
Select
Hire		Attractive target E-Recruiting sub-segment Need for digitization
Retain	Not tapped yet Manage	XING to launch additional products for SME's

B2B Advertising & Events: Restart business with push towards native advertising

Key innovation drivers 2020

• Advertising & Events joining forces
• Pivoting advertising from display into native (sponsored articles, business pages)
• Steady increase in ad inventory through focus on daily/mobile use cases

B2B: Advertising & Events: Strong pivot to native and more relevant advertising

Native advertising

Business pages

Financial outlook XING 2020

Our target: Keep strong growth, slightly increase margins, ~100m EBITDA in 2020

Summary

• We held our promises
• . We have more room to grow
• . We will grow current business and invest in new business
• We will continue to grow 17-20%

Thank you for your attention

Backup

$\mathbf{X}$

US joint venture between Monster & kununu proving further upside to current D-A-CH equity story

Consensus, investor information & contact details

XING AG IR stats Market cap: $\sim \epsilon$ 1bn / $\epsilon$ 75m cash / no debt

Consensus from 12 brokers collected by XING IR	2016e	2017e	2018e	Average trading volume per day (XETRA) & Market Cap (in $\epsilon$ m)
Total revenues EBITDA	146 46	172 57	196 68	1047,9	1015,1
Margin Depreciation	32% (11)	33% (12)	35% (13)	19613 16597 13646
EBIT Margin	35 24%	45 26%	55 28%	9825 9358 8406 7722 7420 7174 6419 4225	6610 5570
Net income EPS in € DPS in $\epsilon$	23 4.23 1.70	30 5.45 2.70	37 6.74 3.45	Decits August 15 Apriling March-16 lambary 16	August 16
		Bankhaus Metzler, Berenberg Bank, Commerzbank, Deutsche Bank,		Burda Digital GmbH (DE)	50.26%
Analyst coverage		Goldman Sachs, Hauck & Aufhäuser, Jefferies, MM Warburg, Montega,		Deutsche Asset & Wealth Mngt. (DE)	4.95%
			Oddo Seydler	Oppenheimer (US)	5.04%
				Union Investment (DE)	4.98%
Shares			5,620,435	Wasatch Advisors (US)	3.02%
Numbers hassel on last filing Lastual shareholdings san differ				Rest	31.75%

Numbers based on last filing – actual shareholdings can differ

Investor Relations contact details & social media channels

PATRICK MOELLER

Director Investor Relations

XING AG Dammtorstrasse 30 20354 Hamburg Germany

Tel.: +49 (0)40 419 131-793 $FAX.: +49(0)40419131-44$
(Please use this number to submit "WpHG notifications")

Email.: patrick.moeller@XING.com

XING profile: https://www.xing.com/profile/Patrick_Moeller2

http://twitter.com/XING_ir	Lwitter
http://www.slideshare.net/patmoeller	slideshare
http://www.youtube.com/XINGcom	Broadcast Yoursell
http://blog.XING.com	net.work.xing
skype:patrickmoeller?add

XING

$\boldsymbol{\chi}$

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