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New Work SE — Investor Presentation 2011
Aug 10, 2011
303_ip_2011-08-10_b7df1e9e-867b-4382-913a-526e8f344ee0.pdf
Investor Presentation
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Q2'2011 Results Presentation XING AG
Dr. Stefan Gross-Selbeck (CEO) & Ingo Chu (CFO) Hamburg, August 10, 2011
Big product launch successfully implemented
| Q2"2011 | Q2"2010 | yoy | ||
|---|---|---|---|---|
| Subscriptions | €m | 11.32 | 10.51 | 8% |
| E-Recruiting | €m | 2.81 | 1.55 | 81% |
| Advertising | €m | 1.48 | 0.88 | 68% |
| New verticals | €m | 0.55 | 0.01 | N.A. |
| Service revenues | €m | 16.17 | 12.95 | 25% |
| Other* | €m | 0.17 | 0.31 | -45% |
| Total revenues | €m | 16.33 | 13.26 | 23% |
| EBITDA | €m | 5.67 | 3.74 | 70% |
| EBITDA-Margin | % | 35 | 28 | 7%pts |
| Net-result | €m | 2.37 | 1.35 | 76% |
1 Other revenue & other operating income
Growth momentum in core market continues (D-A-CH) 04
Member adds (D-A-CH): Accelerating growth
in 000"
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q2'2011
Comments
- Total member base up 20% (June 11 vs. June 10)
- Q2 impacted by seasonality …
- … but growth momentum continues
- Confirming large growth potential: D-A-CH market with significant runway for further growth
New pricing structure since April 2011 for all new members 3m = €7.95 (€6.95 for first 3 months new price after first renewal) 12m = €6.95 (€5.95 for first 12 months new price after first renewal)
'Verticals' drive overall growth with 75% contribution to overall yoy topline growth 03
Big product launch in Q2 – New design, new architecture and more social interaction 04
- Strong increase of social activities (e.g., comments & likes) traffic on core site sections (groups, events, jobs) up significantly
Ongoing investment mode, acceleration in H2
| P&L | |||||
|---|---|---|---|---|---|
| in €m | Q2"11 | Q1"11 | Q2"11 vs. Q1"11 |
Q2"10 | Q2"11 vs. Q2"10 |
| Abs. | Abs. | Abs. | |||
| Total revenue1 | 16.3 | 15.7 | +4% | 13.3 | 23% |
| Costs | (10.6) | (10.0) | (6%) | (9.5) | (12%) |
| EBITDA | 5.7 | 5.6 | +2% | 3.7 | 53% |
| Margin | 35% | 36% | -0.1%pt | 28% | +7%pt |
| Depreciation | (2.2) | (1.5) | (50%) | (1.2) | (81%) |
| Financial result | 0.1 | 0.0 | +104% | 0.0 | 231% |
| Taxes | (1.2) | (1.5) | (19%) | (1.2) | 1% |
| Net result | 2.4 | 2.7 | (11%) | 1.4 | 78% |
(1) Of revenue
(2) Including other operating income
- xxx EBITDA margin impacted by start-up investments in events (-4%-points)
- Depreciation impacted by one-off write-down (-€0.6m)
- Financial result improved through new treasury policy
Ongoing diversification of revenue streams 05
Personnel Expenses Are Main Investment Area To Further Drive Company Growth 05
Search Engine Advertising Offline Marketing spends (Conferences & Events, Print, Sponsorings)
- Payment processing, Server hosting
- Rent & other costs
- Amiando
Operating Cash-flow impacted by one-time 05tax cash-outs for 2009/2010
| Q2'11 | Q1'11 | Q2'11 vs. Q1'11 |
Q2'10 | Q2'11 vs. Q2'10 |
|
|---|---|---|---|---|---|
| Abs. | Abs. | Abs. | Abs. | Abs. | |
| EBITDA | 5.7 | 5.6 | +0.1 | 3.3 | +2.4 |
| Interest/tax/ESOP | -6.6 | +0.0 | -6.6 | +0.3 | -6.9 |
| Net working capital |
+0.0 | +2.0 | -2.0 | +5.6 | -5.6 |
| Operating cashflow excl. Organizer cash |
-0.9 | +7.6 | -8.5 | +9.2 | -10.1 |
| Investment – operating |
-1.4 | -1,1 | -0.3 | -1.4 | +0.0 |
| Investment – acquisitions |
0.0 | -5,1 | +5.1 | -0.7 | +0.7 |
| Financing incl. transaction of own shares |
4.0 | 0.0 | +4.0 | 0.0 | +4.0 |
| Free cashflow excl. organizer cash |
+1.7 | +1.4 | +0.3 | +7.1 | -5.4 |
| Effects organizer cash |
-0.4 | +2.5 | -2.9 | -0.4 | |
| Free cashflow incl. organizer cash – reported |
+1.3 | +3.9 | -2.6 | +1.3 |
One-time tax cash-out for years 2009/2010
Deferred tax cash-out for Q1 2011
Cash-in from employees exercising their options (+4m€)
Thank you for your attention!
POWERING RELATIONSHIPS WWW.XING.COM
XING AG IR stats Market cap: ~€240m / ~€63m cash / No debt
| Total revenues | 65.7 | 77.3 | 88.6 |
|---|---|---|---|
| EBITDA | 20.8 | 25.6 | 29,9 |
| Margin | 32% | 33% | 34% |
| Depreciation | -6.0 | -6.9 | -7.4 |
| EBIT | 14.8 | 18,7 | 22.5 |
| Margin | 22% | 24% | 25% |
| Net income | 10.0 | 12.9 | 15.7 |
| EPS in € | 1.89 | 2.46 | 2.98 |
| Free cash flow | 7.7 | 15.1 | 17.0 |
2011e 2012e 2013e Average Trading Volume per day (XETRA)
Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dez 10 Jan 11 Feb 11 Mrz 11 Apr 11 Mai 11 Jun 11 Jul 11
| Deutsche Bank, | ||
|---|---|---|
| DZ Bank, | ||
| Hauck & Aufhäuser, | ||
| Analyst coverage | HSBC, | |
| Montega AG, | ||
| Close Brothers | ||
| Shares | 5,394,172 | |
| TecDax ranking end of July 2011 |
|||
|---|---|---|---|
| Market Cap. | 27 | ||
| Turnover | 31 |
Free float according to Deutsche Börse: 68.8%
XING share price since IPO in Dec 2006
(as of August 9, 2011)
Investor Relations Contact details
Patrick Möller
Director Investor Relations
XING AG Gänsemarkt 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]
Website: http://corporate.xing.com/english/investor-relations/
http://www.youtube.com/user/XINGcom