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New Work SE

Investor Presentation Aug 6, 2014

303_ip_2014-08-06_2d493e56-1abc-4fbb-ad9d-0bae7b14afbc.pdf

Investor Presentation

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XING – Interim Results Q2 2014 August 6, 2014

www.xing.com

  • FURTHER TOP-LINE GROWTH ACCELERATION W/17%
  • TOTAL USER BASE REACHES 7.6M
  • GROWTH RATE IN NETWORK / PREMIUM BUSINESS DOUBLED
  • XING BEST POSITIONED TO BENEFIT FROM MEGATREND "NEW WORK"

ANOTHER QUARTER OF ACCELERATING TOP-LINE GROWTH WITH STRONG EBITDA INCREASE

STRONGEST NET MEMBER GROWTH SINCE Q2/09

+183k cumulated additional XING Events users

[Member & total user base in million] [Member & XING-EVENTS user net adds in thousands]

GROWTH RATE IN CORE BUSINESS DOUBLE DIGIT Network/ Premium: Q2/2014: +10% vs. 5% (Q2/2013)

Paying member base D-A-CH [thousands]

Network / Premium revenues [€m]

XING BEST POSITIONED TO BENEFIT FROM MEGATREND "NEW WORK"…

A CAREER
XING offers product
solutions
XING offers the biggest
XING offers transparency,
for modern working life
talent pool in D-A-CH
choice and opportunities

NEED FOR PROACTIVE

NETWORKS
RECRUITING & EMPLOYER

DEMOCRATISE
BRANDING
GOOD CONTACTS
MEANINGFUL & FULFILLING
JOB MORE IMPORTANT THAN

CHANGING


WORK ANYWHERE &
POWER BALANCES
ANY TIME

WAR FOR TALENT


TRANSPARENCY
HIERARCHIES
FLEXIBILITY, INDEPENDENCE
& SELF-DETERMINATION
ABOLITION OF ARTIFICIAL
Shortage of skilled
Digitalisation
workforce
Change in values &
Generation Y

…AND LAUNCHING SERVICES ON BACK OF OUR NEW POSITIONING FUTURE.ME – HELP PROFESSIONALS TO IDENTIFY NEW OPPORTUNITIES

TRANSPARENCY, CHOICE & OPPORTUNITIES KUNUNU: OFFERING A NEW LEVEL OF TRANSPARENCY

"SPIELRAUM" – OUR THEME PORTAL FOR NEW WORK https://spielraum.xing.com/

  • XING runs a portal providing content on the new world of work
  • Developed on the basis of the print magazine launched in November 2013
  • Constant mix of exclusive and selected content for modern knowledge workers:
  • Expert interviews
  • Current studies
  • Interesting facts and figures
  • Tips and best practices
  • Close links to the XING community: In-depth discussions hosted in the "Arbeit.Zeit.Leben." group

LEBENSLAUF.COM: A PERFECT FIT FOR XING AND NEW SOURCE FOR MEMBER ACQUISITION

Product vision: establish most user-centric place to go for job seekers

Q2 FIGURES

www.xing.com

  • CONTINUED ACCELERATION OF OVERALL TOP-LINE GROWTH
  • NETWORK / PREMIUM REVENUE GROWTH DOUBLE-DIGIT AGAIN
  • E-RECRUITING REVENUES ACCELERATING GROWTH TO 34%
  • EBITDA AMOUNTS TO €7.0m
  • OPERATING CASH-FLOW €6.4m

STRONG TOPLINE GROWTH; EBITDA €7.0M

Q2/14 Q1/14 Q2/14
vs. Q1/14
Q2/13 Q2/14
vs.
Q2/13
(1)
Including other operating income
Abs. Abs. % Abs. %
Total revenue1 24.4 22.8 7% 20.9 17%
Costs (17.4) (18.3) 5% (15.0) (15%)
EBITDA w/o kununu
earn-out
7.0 4.5 56% 5.9 20%
Margin w/o kununu
earn-out
29% 20% 9%pts 28% 1%pt
Non-operating
costs
from
kununu
earn-out
(0.5) (0.5) 0% 0.0 N/A
EBITDA incl. kununu
earn-out
6.5 4.0 63% 5.9 11%
Depreciation
(incl. PPA)
(2.2) (2.2) 1% (1.9) (14%)
Financial result 0.0 0.0 (80%) 0.0 (93%)
Taxes (1.6) (0.8) (106%) (1.3) (23%)
Net result
incl. kununu
earn-out
2.8 1.0 166% 2.7 3%
Net result w/o kununu
earn-out
3.3 1.5 112% 2.7 21%

New IFRS rules: earn-out now accounted for in personnel expenses instead of goodwill

DEVELOPMENT OF SEGMENT EBITDA

Segment EBITDA Margin
Network / Premium
9.7m
65%
E-Recruiting1 3.5m1


3.0m2
46%1
40%2
Events (€
0.6m)
N.A.
Tech, Central
Services
& Other
(€
5.6m)
N.A.
Total EBITDA w/o
kununu
earn-out

7.0m
29%
1) W/o kununu
earn-out

2) Incl. Kununu earn-out

Margin dilution by Events: 4%pts

CORE NETWORK / PREMIUM BUSINESS GROWING 10% AGAIN

Q2 2014 COST BREAKDOWN

Personnel in €m in % of total revenue

Q2/13 Q1/14 Q2/14

Investment in product/technology organization & sales/marketing Q1/14 and Q2/14 including nonoperating costs from kununu earn-out

Marketing in €m in % of total revenue

Q2/13 Q1/14 Q2/14

  • TV branding campaign in Q1/14
  • Online display & social media adv.
  • Search engine marketing (SEM)
  • Offline marketing expenditure (conferences & events, print, sponsoring)
  • Affiliate marketing

Other expenses in €m in % of total revenue

Q2/13 Q1/13 Q2/14

  • External services, legal, audit & consulting
  • Payment processing, server hosting
  • Rent & other costs

Q2/14: Operating cash flow: €6.4m

Q2/14 Q1/14 Q2/14
vs. Q1/14
Q2/13 Q2/14
vs. Q2/13
Abs. Abs. Abs. Abs. Abs.
EBITDA 6.5 4.0 1.5 5.9 0.6
Interest/tax
& kununu
earn out
(0.5) (0.2) (0.3) (1.2) 0.7
Change
net
working
capital
0.4 3.8 (3.4) 2.3 (1.9)
Operating cash flow
excl.
organizer
cash
6.4 7.6 (1.2) 6.9 (0.6)
Investment –
operating
(2.9) (2.3) 0.6 (2.7) (0.2)
Investment –
acquisitions
(0.6) 0.0 (0.6) (0.1) (0.6)
Financing
incl.
transaction
of
own
shares
0.0 0.0 0.0 1.7 (1.7)
Free cash flow
excl. organizer
cash
& dividends
2.8 5.3 (2.5) 5.9 (3.1)
Regular & special
dividends
(23.4) 0.0 (23.4) (3.1) (20.3)
Free cash flow
excl. event
organizer
cash & incl. Dividends
(20.6) 5.3 (25.9) 2.8 (23.4)
Effects
organizer
cash
(1.0) 3.6 (4.6) 0.0 (1.0)
Free cash flow
incl. event
organizer
cash & dividends
(21.6) 9.0 (30.6) 2.8 (24.4)

INVESTOR INFORMATION & CONTACT

www.xing.com

XING AG IR STATS MARKET CAP: ~€500m / >€50m CASH / NO DEBT

4) Consensus from
8 brokers
2014e 2015e 2016e Average trading volume per day (XETRA) & Market Cap
11.927
May, 201
s
u
s
mates as of
n
e
s
n
Analyst esti
o
C
(
Total revenues
EBITDA
Margin
Depreciation
EBIT
Margin
Net income
EPS in €
DPS in €
(regular)
94.3
28.3
30%
(8.7)
19.6
21%
12.9
2.33
0.79
105.8
35.3
33%
(9.2)
26.0
25%
17.9
3.36
1.05
121.3
42.1
35%
(9.8)
32.3
27%
21.6
4.05
1.35
6.989
3.434
6.537
9.815
20.146
15.143
3.683
8.669
12.066
254m
6.621
515m
6.353
6.469
Analyst coverage Berenberg
Bank, Commerzbank,
Close Brothers, Deutsche Bank,
Hauck & Aufhäuser,
Jefferies, JP Morgan Cazenove,
MM Warburg, Montega
Burda Digital GmbH
2,824,744
Deutsche Asset & Wealth
Mngt
372,660
Schroders
282,421
Union Investment
173,284
Treasury Shares
12,832
50.51%
6.66%
5.05%
3.10%
0.23%
Shares 5,592,137 Rest
1,828,696
Numbers based on last filing – actual shareholdings can differ
34.45%
TecDax
ranking end of April 2014
Market Cap.
Turnover
27
28

XING SHARE PRICE DEVELOPMENT SINCE IPO

as of August 1, 2014

INVESTOR RELATIONS CONTACT DETAILS & SOCIAL MEDIA CHANNELS

Patrick Moeller Director Investor Relations

XING AG Dammtorstraße 29-32 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: /

DISCLAIMER

This presentation was produced in August 2014 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 June 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.

IMPORTANT NOTICE

Pro-forma results

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.

Cautionary note regarding preliminary results and pro-forma financial results

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.

www.xing.com

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