Investor Presentation • Feb 23, 2015
Investor Presentation
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Preliminary Results Feb 23, 2015
This presentation was produced in February 2015 by XING AG (the "Company") solely for use as an information source for potential business partners and is strictly confidential. It has been made available to you solely for your own information and may not be copied, distributed or otherwise made available to any other person by any recipient. This presentation is not an offer for sale of securities in the United States. The distribution of this presentation to you does not constitute an offer or invitation to subscribe for, or purchase, any shares of the XING AG and neither this presentation nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever.
The facts and information contained herein are as up-to-date as is reasonably possible and are subject to revision in the future. Neither the Company nor any of its subsidiaries, any directors, officers, employees, advisors nor any other person makes any representation or warranty, express or implied as to, and no reliance should be placed on, the accuracy or completeness of the information contained in this presentation. Neither the Company nor any of its subsidiaries, any directors, officers, employees, advisors or any other person shall have any liability whatsoever for any loss arising, directly or indirectly, from any use of this presentation. The same applies to information contained in other material made available at the presentation.
While all reasonable care has been taken to ensure the facts stated herein are accurate and that the opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of the Company. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by the Company as being accurate.
This presentation contains forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which the Company operates. These statements are generally identified by words such as "believes," "expects," "predicts," "intends," "projects," "plans," "estimates," "aims," "foresees," "anticipates," "targets," and similar expressions. The forward-looking statements, including but not limited to assumptions, opinions and views of the Company or information from third party sources, contained in this presentation are based on current plans, estimates, assumptions and projections and involve uncertainties and risks. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. The Company does not represent or guarantee that the assumptions underlying such forward-looking statements are free from errors nor do they accept any responsibility for the future accuracy of the opinions expressed in this presentation. No obligation is assumed to update any forward-looking statements.
This presentation speaks as of December 2014. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.
Results contained in this presentation are partly based on unaudited pro-forma financial results that the Company derived from its preliminary and past financial statements for the indicated periods in order to make these periods comparable and show non-recurring costs.
This presentation contains preliminary results and pro-forma results. The preliminary results may change during their final review. While the Company believes that its pro-forma financial results are reflective of its recurrent trends and the on-going status of its business, there can be no assurance that its pro-forma results will accurately reflect these trends and status and therefore, its investors are urged not to rely solely upon the pro-forma results when making their investing decision and the pro-forma results should always be reviewed together with its actual financial results.
ACCELERATING GROWTH IN ALL DIMENSIONS
MAJOR STEPS TOWARDS REPOSITIONING
PROPOSAL: INCREASE OF REGULAR DIVIDEND BY 48% to 0.92€
2015E: FURTHER ACCELERATION OF TOP-LINE GROWTH
EBITDA margin expansion becomes visible
Strong push towards new positioning "For a better working life"*
Significant push towards mobile
Continued enforcement of product innovations
| Key successes 2014 | ||
|---|---|---|
| Network | • Strongest ever member growth • Mobile usage significantly increased |
|
| Premium | • New Premium fully accepted (double digit growth) • Successful launch of ProJobs membership |
|
| e-Recruiting | • Successful "Offensive 2014" (Revenues +39%) • Strong increase of XTM and EBP B2B customer base • Good jobs ad business (plus new opportunities after Jobbörse.com acquisition |
|
| Events | • New events marketplace supports differentiation • Strong support for member/user growth |
OVERVIEW: ACCELERATING PACE IN 2014
RECORD MEMBER GROWTH
TOP LINE GROWTH ACCELERATES TO 20%
EBITDA SLIGHTLY ABOVE UPPER END OF GUIDANCE; MARGIN UP 2%PTS
OPERATING CASH-FLOW INCREASED TO €34M
DIVIDEND PROPOSAL OF €0.92/SHARE (+48%YOY)
| 2014 Prelim |
2013 | 2014 vs. 2013 |
2014 vs. 2013 |
|
|---|---|---|---|---|
| Abs. | Abs. | Abs. | Rel. | |
| Total revenue1 | 101.4 | 84.8 | 16.6 | 20% |
| Costs | (69.8) | (60.5) | (9.3) | (15%) |
| EBITDA w/o kununu earn-out |
31.6 | 24.3 | 7.3 | 30% |
| Margin w/o kununu earn-out |
31% | 29% | +2%pts | +2%pts |
| Non-operating costs from kununu earn-out |
(2.4) | (1.5) | (1.1) | (62%) |
| EBITDA incl. kununu earn-out |
29.2 | 22.8 | 6.4 | 28% |
| Adjusted depreciation (incl. PPA)2 | (8.6) | (8.5) | (0.1) | (2%) |
| Financial result2 | (0.0) | 0.1 | (0.1) | N/A |
| Adjusted taxes2 | (7.3) | (5.3) | (2.0) | (37% |
| Adjusted net result2 | 13.2 | 9.1 | 4.1 | 45% |
| Adjusted net result w/o kununu earn-out2 |
15.7 | 10.5 | 5.2 | 49% |
(1) Including other operating income
(2) Excl. write-down of XING Events of €7.5m (-€0.5m tax effect)
Rounding differences are possible
1) W/o kununu earn-out
2) Incl. Kununu earn-out
3) 2013:63%
4) 2013:45%
| 2014 | 2013 | 2014 vs. 2013 |
2014 vs. 2013 |
|
|---|---|---|---|---|
| Abs. | Abs. | Abs. | Rel. | |
| EBITDA | 29.2 | 22.8 | 6.4 | 28% |
| Interest / tax / ESOP & earn out (kununu) | (1.5) | (3.3) | 1.8 | 55% |
| Change in net working capital | 6.5 | 4.3 | 2.2 | 52% |
| Operating cash flow excl. organizer cash | 34.2 | 23.8 | 10.4 | 44% |
| Investment – operating |
(12.1) | (10.5) | (1.6) | 16% |
| Investment – acquisitions |
(0.9) | (2.9) | 2.0 | 68% |
| Financing incl. transaction of own shares | 0.0 | 2.7 | (2.7) | -99% |
| Free cash flow excl. dividends & organizer cash |
21.2 | 13.1 | 8.1 | 62% |
| Regular dividend | (3.5) | (3.1) | (0.4) | (12%) |
| Special dividend | (20.0) | 0.0 | (20.0) | N/A |
| Free cash flow excl. organizer cash | (2.2) | 10.0 | (12.2) | (122%) |
| Effects organizer cash | 0.4 | 0.2 | 0.2 | 110% |
| Free cash flow incl. organizer cash | (1.8) | 10.2 | (12.0) | (117%) |
Rounding differences are possible
| Q4/14 | Q3/14 | Q4/14 vs. Q3/14 |
Q4/13 | Q3/14 vs. Q3/13 |
|
|---|---|---|---|---|---|
| Abs. | Abs. | % | Abs. | % | |
| Total revenue1 | 28.3 | 26.0 | 8% | 22.7 | 24% |
| Costs | (18.0) | (16.1) | (12%) | (15.8) | (14%) |
| EBITDA w/o kununu earn-out |
10.2 | 9.9 | 4% | 6.9 | 47% |
| Margin w/o kununu earn-out |
36% | 38% | (2%pts) | 30% | 6%pts |
| Non-operating costs from kununu earn out |
(0.7) | (0.8) | (11%) | (1.5) | 55% |
| EBITDA incl. kununu earn-out |
9.6 | 9.1 | 5% | 5.5 | 75% |
| Adjusted depreciation (incl. PPA)2 |
(2.2) | (1.9) | (15%) | (2.2) | (2%) |
| Financial result | (0.0) | 0.0 | N/A | 0.0 | N/A |
| Adjusted taxes2 |
(2.5) | (2.5) | 0% | (1.5) | (62%) |
| Adjusted net result incl. kununu earn-out2 |
4.8 | 4.7 | 3% | 1.7 | 177% |
| Adjusted net result w/o kununu earn-out2 |
5.5 | 5.4 | 1% | 3.1 | 76% |
(1) Including other operating income
(2) Excl. write-down of XING Events of €7.5m (-€0.5m tax effect) Rounding differences are possible
1) W/o anorganic growth from kununu acquisition
Rounding differences are possible
Q4/13 Q3/14 Q4/14 Personnel in €m in % of total revenue Marketing in €m in % of total revenue Other expenses in €m in % of total revenue Investment in product/technology organization & sales/marketing Including non-operating costs Online display & social media adv. Search engine marketing (SEM) Offline marketing expenditure External services, legal, audit & consulting Payment processing, 37% 0% 0.71 1.8 1.3 2.5 Q4/13 Q3/14 Q4/14 5.4 5.2 5.4 Q4/13 Q3/14 Q4/14 9.7 10.1 38% 37% 36% 8% 5% 9% 24% 20% 19% 18% 8.6 10.4 10.8 0.71 1.41 10.0
+63FTEs
(conferences & events, print, sponsoring)
Rounding differences are possible
server hosting Rent & other costs
1) Impact from kununu earn-out
| Q4/14 | Q3/14 | Q4/14 vs. Q3/14 |
Q4/13 | Q4/14 vs. Q4/13 |
|
|---|---|---|---|---|---|
| Abs. | Abs. | Abs. | Abs. | Abs. | |
| EBITDA | 9.6 | 9.1 | 0.5 | 5.5 | 4.1 |
| Interest/tax & kununu earn out |
(0.4) | (0.3) | (0.1) | 0.0 | (0.4) |
| Change net working capital |
0.6 | 1.6 | (1.0) | 0.6 | 0.0 |
| Operating cash flow excl. organizer cash |
9.8 | 10.5 | (0.7) | 6.0 | 3.8 |
| Investment – operating |
(3.6) | (3.2) | (0.4) | (3.0) | (0.6) |
| Investment – acquisitions |
0.0 | (0.3) | 0.3 | 0.0 | 0.0 |
| Financing incl. transaction of own shares |
0.0 | 0.0 | 0.0 | 0.6 | (0.6) |
| Free cash flow excl. organizer cash & dividends |
6.1 | 6.9 | (0.8 | 3.6 | 2.5 |
| Regular & special dividends |
0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Free cash flow excl. event organizer cash & incl. Dividends |
6.1 | 6.9 | (0.8) | 3.6 | 2.5 |
| Effects organizer cash |
(2.7) | 0.5 | (3.2) | (2.4) | (0.3) |
| Free cash flow incl. event organizer cash & dividends |
3.5 | 7.4 | (3.9) | 1.1 | 2.4 |
Rounding differences are possible
| 2014 | 2013 | ||
|---|---|---|---|
| Reported net income |
6.2 | 9.1 | (1.9) |
| Adjustment kununu earn-out |
+2.5 | +1.4 | (1.1) |
| Adjustment XING Events |
+7.1 | N/A | N/A |
| Adjusted net income |
15.7 | 10.5 | +49% |
| #Shares (weighted) | 5.6m | 5.6m | +0.0 |
| Adjusted earnings per share |
2.81 | 1.90 | +48% |
| Dividend per share | 0.92 | 0.62 | +48% |
Rounding differences are possible
The professional network www.xing.com
The professional network www.xing.com
The professional network www.xing.com
NETWORK / PREMIUM SEGMENT SHOWING ACCELERATING REVENUE GROWTH RATES: 2014: +12% VS. 2013: +6%
Paying member base D-A-CH [thousands]
Network / Premium revenues [€m]
| 4) | Consensus from 10 brokers as collected by XING |
2014e | 2015e | 2016e |
|---|---|---|---|---|
| 0, 201 s |
Total revenues | 97.2 | 110.3 | 125.3 |
| u s |
EBITDA | 28.0 | 36.8 | 44.7 |
| mates as of Nov 1 n |
Margin | 29% | 33% | 36% |
| e s |
Depreciation | (8.7) | (9,5) | (9,8) |
| n o |
EBIT | 19.3 | 27.5 | 34.9 |
| Analyst esti C |
Margin | 20% | 25% | 28% |
| Net income | 13.1 | 18.6 | 23.3 | |
| ( | EPS in € | 2.24 | 3.21 | 4.13 |
| DPS in € | 0.79 | 1.11 | 1.36 | |
| Analyst coverage | Berenberg Close Brothers, Deutsche Bank, Goldman Sachs, Hauck & Aufhäuser, Jefferies, JP Morgan Cazenove, |
Bank, Commerzbank, MM Warburg, Montega |
||
| Shares | 5,592,137 |
| Average trading volume per day (XETRA) & Market Cap | ||||
|---|---|---|---|---|
| Burda Digital GmbH (DE) | 50.51% |
|---|---|
| Deutsche Asset & Wealth Mngt (DE) |
5.97% |
| Oppenheimer (US) | 5.07% |
| Schroders (UK) | 5.05% |
| Union Investment (DE) | 5.00% |
| Treasury Shares | 0.22% |
| Rest | 28.18% |
Numbers based on last filing – actual shareholdings can differ
| Analyst coverage | Goldman Sachs, Hauck & Aufhäuser, Jefferies, JP Morgan Cazenove, MM Warburg, Montega |
|---|---|
| TecDax ranking end of January 2015 |
|
| Market Cap. | 28 |
Turnover 31
Director Investor Relations
XING AG Dammtorstrasse 30 20354 Hamburg Germany
Tel.: +49 (0)40 419 131-793 Fax.: +49 (0)40 419 131-44 (Please use this number to submit "WpHG notifications")
Email.: [email protected]
IR website: https://corporate.xing.com/english/investor-relations/
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