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New Work SE

Investor Presentation Aug 15, 2012

303_ip_2012-08-15_a5129bdd-1fb4-4b65-a985-b0590658b28d.pdf

Investor Presentation

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XING Q2'2012 results presentation

August 14, 2012

Disclaimer

This presentation was produced in August 2012 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 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.

Executive Summary

Solid financial performance

Continuing strong member growth in D-A-CH

Revised schedule on important product launches: "Ad Creator" launched August 2nd; "Talentmanager" currently in beta-testing

Ongoing strong member growth – Best 1st half since 2009

Development of subscriber base

Low net adds due to higher campaign driven churn

'Verticals' drive overall growth

Financial summary

Continued phase of accelerated investments in future growth

EBITDA of €5.1m w/ 28% margin reflecting investments

Outlook for H2 more cautious; however long-term outlook unchanged

Q2'12 Q1'12 Q2'12
vs.
Q1'12
Q2'11 Q2'12
vs. Q2'11
Abs. Abs. Abs.
Total revenue1 18.2 17.7 +3% 16.3 11%
Costs (13.1) (12.9) (2%) (10.7) (23%)
EBITDA 5.1 4.8 6% 5.7 (10%)
Margin2 28% 27% 1%pt 35% (7%pt)
Depreciation (2.1) (1.8) (14%) (2.2) 5%
Financial result 0.1 0.1 (4%) 0.1 76%
Taxes (1.1) (1.1) 6% (1.2) 10%
Net result 2.1 2.0 5% 2.4 (13%)
EPS in € 0.38 0.36 6% 0.43 (12%)

(1) Including other operating income

(2) Of revenue

Continued growth of vertical revenues

Personnel main investment area to further drive company growth

Personnel in €m in % of total revenue Marketing in €m in % of total revenue Other expenses in €m in % of total revenue Continuing strong Investment into product/technology organization & Online display & social media adv. Search engine marketing (SEM) External services, legal, audit & consulting Payment processing, server hosting Q2'11 Q1'12 Q2'12 35% 41% 32% Q2'11 Q1'12 Q2'12 8% 10% 11% Q2'11 Q1'12 Q2'12 22% 21% 13% 41% 8% 5.7 7.3 7.5 1.4 1.9 1.5 3.6 3.8 4.1

(conferences & events,

Local and segment marketing

print, sponsoring) Affiliate marketing

  • Offline marketing expenditure
  • Rent & other costs
  • Search Engine Optimization (SEO)

23%

sales/marketing

Quarterly operating cashflow €3.9m

Q2'12 Q1'12 Q1'12
vs. Q1'12
Q2'11 Q2'12
vs. Q2'11
Abs. Abs. Abs. Abs. Abs.
EBITDA 5.1 4.8 0.3 5.7 (0.6)
Interest/tax/ESOP (0.8) (0.8) (0.1) (6.6) 5.8
Net working
capital
(0.4) 2.4 (2.8) (0.1) (0.3)
Operating cashflow
excl.
organizer
cash
3.9 6.5 (2.6) (1.1) 5.0
Investment –
operating
(2.3) (1.3) (1.0) (1.4) (0.9)
Investment –
acquisitions
0.0 0.0 0.0 0.0 0.0
Financing
incl.
transaction
of
own
shares
1.7 0.0 1.7 4.0 (2.3)
Dividend / Special distribution (3.0) (20.0) 16.9 0.0 (3.0)
Free cashflow
excl.
organizer
cash
0.3 (14.8) 15.1 1.5 (1.2)
Effects
organizer
cash
(0.3) 1.2 (1.5) (0.2) (0.1)
Free cashflow
incl.
organizer
cash
(0.0) (13.6) 13.6 1.3 (1.3)

Thank you for your kind attention!

The professional network www.xing.com

Backup

XING Talentmanager (Corporate Recruiter Account) Commercial launch in Q4

XING's new self-booking ad tool

  • First use case: promote your event
  • Further roll-out across the platform
  • Important step towards social

Outstanding ad placements on XING

XING AG IR stats Market cap: ~€210m / ~€51m cash / no debt

Total revenues 75.1 84.1 91.1 97.7
EBITDA 24.2 28.4 32.4 36.0
mates, August 2012) Margin 32% 34% 36% 37%
Depreciation -7.9 -7.9 -8.2 -8.8
EBIT 16.3 20.5 24.2 27.1
(Analyst esti Margin 22% 24% 27% 28%
Net income 11.2 14.0 16.7 18.9
EPS in € 2.06 2.64 3.16 3.49

DPS in €*

2012e 2013e 2014e 2015e Average trading volume per day (XETRA) Total revenues 75.1 84.1 91.1 97.7 EBITDA 24.2 28.4 32.4 36.0 Margin 32% 34% 36% 37% Depreciation -7.9 -7.9 -8.2 -8.8 EBIT 16.3 20.5 24.2 27.1 Margin 22% 24% 27% 28% 25,705 30,347 28,355

Analyst coverage Berenberg
Bank, Commerzbank,
Close Brothers, Deutsche Bank,
DZ Bank, Hauck & Aufhäuser, HSBC,
Jefferies, JP Morgan Cazenove,
MM Warburg, Macquarie, Montega
Shares 5,475,668
TecDax
ranking end of July 2012
Market Cap. 27

Turnover 20

0.60 0.72 0.86 1.00

Ennismore -
5.11%
HVB Principal Equity -
5.23%
Cyrte Investments -
4.88%
Whalerock Capital -
3.29%
Treasury Shares -
1.61%
Baillie Gifford -3.04%

Burda Digital GmbH - 29.51%

  • Schroders 3.06%
  • Other 44.27%

Free float according to Deutsche Börse: 68.9%

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.: [email protected]

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

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