New Work SE — Call Transcript 2016

Apr 19, 2016

Acquisition of ages

Conference Call April 19, 2016

Executive summary

• Employee referral most effective recruiting channel, yet still offline and manual
• XING acquires leading technology for employee referrals; Tech & team deal to drive E-Recruiting business
• Ready-to-use product $\bullet$
• Experienced team
• New digital recruiting channel for XING E-Recruiting customers
• Scarcity of talent driving need for effective recruiting channels $\bullet$
• Additional channel next to active recruiting, employer branding and passive recruiting $\bullet$
• Acquisition of 100% of shares for CHF 3.2m with maximum earn-out of CHF 4.8m

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

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

Source: Jegipia / obvite, 2013

X

eqipia: best technology in employee referral

Key assets & KPIs

• Technology assets:
• Referrer front-end $\bullet$
• HR front-end $\bullet$
• ATS connections $\bullet$
• $\cdot$ Team
• 7 product/tech FTE
• Customers $\bullet$
• Swisscom, SBB, KPMG, $\bullet$ . Cern, EMC, etc.
• · Financial metrics 2015
• ~200k revenue
• $\cdot$ ~ (200k) EBITDA

N

Rationale of the deal

• . 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

New digital recruiting channel for XING E-Recruiting customers

	ACTIVE RECRUITING	EMPLOYEE REFERRAL	PASSIVE RECRUITING	EMPLOYER BRANDING
Addressable market	€1bn	>20k COMPANIES	€300m	>35k COMPANIES
XING position	#1	Target: #1	$#4-5$	#1
Strategy	Make market	Make market	Improve position	Make market
Product / assets	XING Talentmanager (XTM)	Employee referral solution xing.eqipia.com	XING Stellenmarkt, Jobbörse.com & Kununu.com	Employer Branding Profile (EBP) & Kununu.com

Key characteristics of the deal

Key terms

• Acquisition of 100% of the shares $\bullet$
• Founders stay for at least 2 years $\bullet$
• Purchase price: $\bullet$
• Initial payment of CHF 3.2m
• Maximum earn-out payments of a total of CHF 4.8m (2 year period)
• Economic effective date: April 14, 2016 $\bullet$

Financial implications

• Tech & team deal enabling stronger growth in e-recruiting business
• Allocation to B2B E-Recruiting segment
• Revenue impact 2016 negligible due to launch of new integrated new product in Oct 2016
• EBITDA impact 2016 neutral despite PMI costs

Thank you for your attention.

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.: patrick.moeller@XING.com

XING

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FOR A BETTER WORKING LIFE