New Work SE — Interim / Quarterly Report 2014

Aug 6, 2014

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

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• 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.: patrick.moeller@xing.com

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.

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