XING Q1 2016 Results Presentation

Hamburg, May 4, 2016

Executive Summary – a very good start into 2016

Strong performance in Q1'16

Financial KPIs

Revenue +21%*
EBITDA +27% $\bullet$
Net income +30% $\bullet$

Operating KPIs

467k net new members highest quarterly member growth in history
23k net new paying members best quarter during last 6 years

Strong financial performance Revenue +21%*; EBITDA +27%; Net Income +30%

* excl. one-time FX effects in 01 2015

XING crossed 10m platform-member mark in Q1 467k net member adds - strongest growth in history

23k net payer adds - highest conversion in last 6 years

Rounding differences are possible

XING aquires eqipia

. Talent remains scarce in D-A-CH labor markets
Demand remains strong for more effective recruiting channels
. Employee referrals w/ potential to become strong recruiting channel
. XING in unique position to offer digital referral product
· eqipia tech & team deal to improve XING's time to market

For a better working life - new feature for paying members: salary forecasts

Consequent continuation of XINGs ambition to provide opportunities and transparency in a changing world of work
Paying members get access to salary information on >3,000 different job profiles
1^st step: 350,000 job ads with salary information

Q1 2016 Financial Results Ingo Chu

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Q1 financials

Strongest quarterly member growth $\bullet$ since inception w/ 467k net adds
Adjusted revenue growth at 21% yoy $\bullet$ (Reported 17% due to positive FX-effects in Q1 2015)
EBITDA according to plan w/ $€10.4m$ $\bullet$
Strong operating cash-flow $w/$ €12.9m $\bullet$

Q1 2016 P&L: €34.3m revenues; €10.4m EBITDA

	Q1 2016	Q1 2015	Q1 2016 vs. Q1 2015	Q4 2015	Q1 2016 vs. Q4 2015
	Abs.	Abs.	Rel.	Abs.	Rel.
Total revenue ¹	34.3	29.3 ¹	17%1	33.0 (21%)	4%
Costs	(23.8)	(21.0)	(13%)	(23.4)	(2%)
EBITDA	10.4	8.2	27%	9.6	9%
Margin	30%	28%	2%pts	29%	1%pt
D&A	(2.2)	(2.1)	(4% )	(3.2)	31%
Financial result	(0.1)	0.0	N/A	(0.1)	N/A
Taxes	(2.7)	(2.0)	(40%)	(2.1)	(32%)
Net result	5.3	4.1	30%	4.2	27%
EPS	0.91	0.74	23%	0.75	21%

¹⁾ Adjusted for positve one-time FX-effect of €1m in Q1 2015 yoy growth is 21% Rounding differences are possible

X

Change in segment reporting

Q1 2016: EBITDA contribution by segment

	Segment EBITDA	Q1 16 Margin	Q1 15 Margin
B ₂ C	€ 9.7 $m$	53%	58%
B2B E-Recruiting	€ 8.7 $m$	71%	60%
B2B Advertising & Events	€ 0.4 $m$	14%	4%
Kununu International	(60.3m)	Neg	N/A
Tech, Central Services & Other	$(\epsilon 8.1m)$	Neg	Neg
Total EBITDA	€ 10.4 $m$	30%	30%

Q1 2016: All segments growing double-digit

$\mathbf{X}$

Q1 2016: Cost development

$+114$ FTE's
· Investment in product/tech org & sales/marketing
Incl. non operating costs

Marketing

in $\epsilon$ m in % of total revenue

Online display & social media $\bullet$
· SEM
Offline expenditures (Conferences & $\bullet$ events, print)
· Affiliate

Other expenses in $\epsilon$ m in % of total revenue

Server hosting
Payment processing
· Travel & Entertainment
Other

Q1 2016: Operating cash flow of € 12.9m

	Q1 2016	Q1 2015	Q1 2016 vs. Q1 2015	Q4 2015	Q1 2016 vs. Q4 2015
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	10.4	8.2	2.2	9.6	0.9
Interest / tax / ESOP	(1.4)	(1.2)	(0.2)	(3.4)	2.0
Change in net working capital	3.8	7.0	(3.2)	2.9	0.9
Operating cash flow excl. organizer cash	12.9	14.0	(1.2)	9.1	3.8
$Investment$ – operating	(5.0)	(2.7)	(2.3)	(5.1)	0.2
Investment $-$ acquisitions & joint venture	(2.7)	(5.0)	2.3	0.0	(2.7)
ESOP & transaction of own shares	0.0	0.0	0.0	0.0	(0.0)
Interests paid & exchange rate differences	(0.0)	(0.0)	0.0	(0.1)	0.1
Free cash flow excl. dividends & organizer cash	5.2	6.3	(1.1)	3.9	1.3
Regular dividend	0.0	0.0	0.0	0.0	0.0
Special dividend	0.0	0.0	0.0	0.0	0.0
Free cash flow excl. organizer cash	5.2	6.3	(1.1)	3.9	1.3
Effects organizer cash	1.8	2.1	(0.3)	(3.2)	4.9
Free cash flow incl. organizer cash	6.9	8.4	(1.5)	0.7	6.2

Thank you for your attention.

Backup

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Negative invested capital from shareholders' perspective

Employee referrals: most efficient way to hire talent...

... but yet still offline / manual less digitalized process

Source: Jegipia / obvite, 2013

Consensus, investor information & contact details

XING AG IR stats Market cap: ~€ 950m / >€ 75m cash / no debt

Consensus from 10 brokers collected by XING IR	2016e	2017e	2018e	Average trading v
Total revenues	147.0	172.6	200.1
EBITDA	47.0	59.0	71.9	$-943$
Margin	32%	34%	36%	897.5 842,2 29137
Depreciation	(10.6)	(11.5)	(12.9)
EBIT	37.1	47.8	59.0	16693 1 13330
Margin	25%	28%	30%
Net income	24.1	30.9	37.1
EPS in $\epsilon$	4.36	5.59	6.77	Apriling March-15 May 15
DPS in $\epsilon$	1.80	2.71	3.96	W

Analyst coverage	Bankhaus Metzler, Berenberg Bank, Commerzbank, Deutsche Bank, Goldman Sachs, Hauck & Aufhäuser, Jefferies, MM Warburg, Montega, Oddo Seydler
Shares	5,620,435

Burda Digital GmbH (DE)	50.26%
Deutsche Asset & Wealth Mngt. (DE)	4.95%
Oppenheimer (US)	5.04%
Union Investment (DE)	4.98%
Wasatch Advisors (US)	3.02%
Rest	31.75%

Numbers based on last filing - actual shareholdings can differ

XING share price development since IPO

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.: [email protected]

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