New Work SE

Investor Presentation • Feb 28, 2013

XING – #1 Professional Social Network In German Speaking Europe

Presentation of preliminary results 2012

Dr. Thomas Vollmoeller (CEO) & Ingo Chu (CFO)

Disclaimer

This presentation was produced in February 2013 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 2012. 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.

Strongest growth in members and activity in D-A-CH-region since 2009

XING mobile important traffic contributor

Share of mobile visits / total visits in %

Android & iPhone App:

• Vcard reader
• Jobs integration
• XING Beam: Adding contacts via NFC interface (Near field communication)
• Read QR Codes
• New design for iphone app
• Recommendations (Members you may know)
• Full iPhone 5 compatibility

WebApp

• Events integration
• Company Profiles integration

iPad App to be launched in March 2013

Double digit top-line growth with flat EBITDA

* Adjusted for one-time effects related to the mandadory takeover bid of Burda Digital and effects related to the acquisition of kununu GmbH

** Adjusted for for tax-cash-outs for years 2006-2010 (€4.8m)

Decreasing growth rates require new growth impulses

Annual growth rates 2010 - 2012

New segmentation

1) Premium Club includes revenues from paid memberships, display advertising & Top Deals

2) e-Recruiting includes revenues from online job ads (fixed & click price), recruiter memberships, XING Talentmanager and Company Profiles

3) Events includes revenues from ticketing and lead gen (adCreator)

Dedicated business units with clear defined sub-strategies

XING with good progress executing its strategy

Key product launces
 API ecosystem  Mobile products for Android and iPhone  XING share button
 100MB attachments to messages for Premium Members
 XING Talentmanager for active sourcing (XTM)  Acquisition of kununu.com (Leading employer review platform)  XING-Projects
 Amiando Events on XING  XING adCreator for Events

Example: XING Talentmanager as new tool for active recruiting

New business unit organization (from functional set-up)

Sequential product development (from parallel development)

Significantly reduced FTE-build-up

Replacement of key positions (i.e., Product Development, Data Science, Sales, Premium Club, Human Resources)

Our goal: double revenues until 2016

Executive summary – Financials

Strongest member growth in 3 years, significantly increased activity

Solid revenue growth at 11%

Adjusted EBITDA at €22.0m, flat yoy and as expected

Strong operating cash flow at €18.9m

Recommended dividend: €0.56 per share

FY 2012: Revenue growth 11%, flat EBITDA

	2012 adjusted	2011	2012 vs. 2011	2012 vs. 2011
	Abs.2)	Abs.3)	Abs.	Rel.
Total revenue1	73.3	66.2	7.1	11%
Costs	(51.3)	(43.9)	(7.4)	(17%)
EBITDA	22.0	22.2	(0.2)	(1%)
Margin	30%	34%	(4% pts)	(4% pts)
Depreciation	(8.3)	(8.0)	(0.3)	(4%)
Financial result	0.3	0.5	(0.2)	(32%)
Taxes	(4.8)	(5.3)	0.5	9%
Net result	9.2	9.4	(0.2)	(3%)

(1) Including other operating income

(2) 2012 figures adjusted for one-time expenses related to Burda takeover bid & kununu GmbH acquisition (€1.9m) & taxes adjusted by €0.5m accordingly

(3) 2011 figures adjusted for one-time write-down of market entries for Spain & Turkey (€14.4m) & taxes adjusted by €0.3m accordingly

One-time effects on €1.9m related to mandatory takeover bid by Burda Digital & kununu acquisition

All business units profitable except "Events"

Profitability by business unit

	2012
Network	N/A
Premium Club
e-Recruiting
Events
International
EBITDA margin (group)	30%

Ongoing investments in "Events" dilutes group EBITDA margin by 5-6% pts

FY 2012: Revenue Split

Full year operating cash flow €18.9m

	2012	2011	2012 vs. 2011	2012 vs. 2011
	Abs.	Abs.	Abs.	Rel.
EBITDA	20.1	22.2	(2.2)	(10%)
Interest/tax/ESOP	(3.8)	(9.1)	5.3	59%
Net working capital	2.6	0.8	1.8	224%
Operating cash flow excl. organizer cash	18.9	13.9	5.0	36%
Investment – operating	(7.3)	(6.5)	(0.8)	(12%)
Investment – acquisitions	(2.5)	(5.4)	3.0	55%
Financing incl. transaction of own shares	3.9	5.2	(1.3)	(27%)
Free cash flow excl. dividends & organizer cash	13.0	7.2	(5.8)	N/A
Capital return	(20.0)	0.0	(20.0)	N/A
Regular dividend	(3.0)	0.0	(3.0)	N/A
Free cash flow excl. organizer cash	(10.0)	7.2	(17.2)	N/A
Effects organizer cash	0.6	2.0	(1.4)	(71%)
Free cash flow incl. organizer cash	(9.4)	9.2	(18.6)	N/A

Adjusted for distortions in 2011 operating cash flow is on previous years level

[2011 adjusted for tax-cash-outs for years 2006-2010 (€4.8m) = OpCF: €18.7m]

Q4 numbers

Q4'12: €19m revenues, €6.6m EBITDA (adj.)

	Q4'12	Q3'12	Q4'12 vs. Q3'12	Q4'11	Q4'12 vs. Q4'11
	Abs.2	Abs.		Abs.3
Total revenue1	19.0	18.3	4%	17.6	8%
Costs	(12.4)	(12.8)	3%	(12.0)	(4%)
EBITDA	6.6	5.5	19%	5.6	18%
Margin	35%	30%	5% pts	32%	3% pts
Depreciation (adjusted)	(2.3)	(2.1)	(9%)	(2.6)	12%
Financial result	0.0	0.1	(54%)	0.2	(82%)
Taxes (adjusted)	(1.4)	(1.3)	8%	(1.4)	1%
Net result (adjusted)	2.9	2.2	33%	1.8	67%

(1) Including other operating income

(2) Adjusted for one-time expenses related to Burda biid and kununu acquisition (€1.9m)

(3) Adjustment for one time write-down of market entries for Spain & Turkey (€14.4m) & taxes adjusted by €0.3m accordingly

Q4 2012: Revenue Split

Personnel main investment area to further drive company growth

Personnel

in €m in % of total revenue

• Investment into product/technology organization & sales/marketing
• 4 new FTEs in Q4 68 new FTE"s in 2012

Marketing in €m

in % of total revenue

in % of total revenue

Q4'11 Q3'12 Q4'12

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

print, sponsoring) Affiliate marketing

10% 6%

(conferences & events,

Online display & social media adv. Search engine marketing (SEM) Offline marketing expenditure

1.7 1.2 0.6

3%

Q4'11 Q3'12 Q4'12

Q4 2012: Operating cash flow: €3.8m

	Q4'12	Q3'12	Q4'12 vs. Q3'12	Q4'11	Q4'12 vs. Q4'11
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	4.7	5.5	(0.9)	5.6	(0.9)
Interest/tax/ESOP	(1.4)	(0.9)	(0.5)	(2.7)	1.3
Net working capital	0.5	0.1	0.4	(0.4)	0.9
Operating cashflow excl. organizer cash	3.8	4.7	(1.0)	2.5	1.3
Investment – operating	(2.1)	(1.6)	(0.6)	(2.2)	0.1
Investment – acquisitions	(2.5)	0.0	(2.5)	(0.0)	(2.5)
Financing incl. transaction of own shares	1.9	0.1	1.8	0.4	1.5
Free cashflow excl. organizer cash	1.1	3.3	(2.2)	0.7	0.4
Effects organizer cash	(2.1)	1.8	(3.9)	(2.5)	0.4
Free cashflow incl. organizer cash	(1.0)	5.1	(6.2)	(1.8)	0.8

XING continues to pay a regular dividend according to policy

Financial metrics support stable dividend vs. 2011 of €0.56 per share

Strong business model allows to invest in future growth & pay dividends

Policy unchanged: Sustainable dividend payments going forward

Thank you for your kind attention!

The professional network www.xing.com

Negative invested capital from shareholders' perspective

in €m [Excl. event organizer cash and NWC]

	As of Dezember 2012
	Abs.
Assets	89.1
Operating assets	25.0
Acquisitions / international	7.1
TAX A/R	0.8
Cash	56.2
Liabilities	89.1
Equity	51.8
Deferred income	25.1
Liabilities	9.6
Tax liabilities	2.5
Other	0.0

Invested capital w/o cash	(€9.7m)
Liabilities	(€9.6m)
Deferred income	(€25.1m)
Operating assets	€25.0m

XING AG IR stats Market cap: ~€220m / ~€56m cash / no debt

	Consensus from						Average trading volume per day (XETRA)
	10 brokers	2012e	2013e	2014e
3)	Total revenues	72.8	81.9	90.7	33,889
s u	EBITDA	21.1	24.7	29.8
mates, February 8, 201 s n e s n o Analyst esti C (	Margin	29%	30%	33%		27,677
	Depreciation	-7.8	-7.9	-7.9		21,462		21,259
	EBIT	13.3	16.8	21.9	19,326	17,362		15,437
	Margin	18%	21%	24%			14,156 11,601
	Net income	9.1	11.6	15.0			6,216
	EPS in €	1.74	2.11	2.74
	DPS in €	0.62	0.73	0.83
							Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 July 12 Aug-12 Sep-12 Oct-12 Nov-12 Dec - 12 Jan-13
				Berenberg Bank, Commerzbank, Close Brothers, Deutsche Bank,	Burda	Digital GmbH	2.922.244	52.61%
Analyst coverage				Hauck & Aufhäuser, HSBC, JP Morgan Cazenove,	DWS Investment		361.000	6.50%
				MM Warburg, Montega	Ennismore		293.622	5.29%
	Shares			5,554,243

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 July 12 Aug-12 Sep-12 Oct-12 Nov-12 Dec - 12 Jan-13

Analyst coverage	Berenberg Bank, Commerzbank, Close Brothers, Deutsche Bank, Hauck & Aufhäuser, HSBC, JP Morgan Cazenove, MM Warburg, Montega

TecDax	ranking end of January 2012

Market Cap.	42
Turnover	26

Burda Digital GmbH	2.922.244	52.61%
DWS Investment	361.000	6.50%
Ennismore	293.622	5.29%
Schroders	282.421	5.08%
Ruane, Cunniff & Goldfarb	169.259	3.05%
Treasury Shares	75.332	1.36%
Other	1.811.365	32.61%

Numbers based on last filing – actual shareholdings can differ

XING share price development since IPO in Dec 06 as of February 27 2013

+39% +29% +13% +20%

Investor Relations

Contact details & social media channels

Patrick Moeller

Director Investor Relations

XING AG Gaensemarkt 43 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.: patrick.moeller@xing.com

IR website: http://corporate.xing.com/english/investor-relations/