New Work SE — Investor Presentation 2012

Mar 2, 2012

XING – #1 Professional Social Network In German Speaking Europe

Preliminary FY Results 2011 Presentation – March 1, 2012

Successful execution of 2011 strategy

Significant growth potential ahead in core markets (D-A-CH) to become a €100m+ company in a few years

Low market penetration promises further potential for growth c

'Verticals' Drive Overall Growth

¹ Source: Recruiting Trends 2012

Subscriber base continues to grow 6k Net Adds In Q4'11

38 46 ^{38 39 37} Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 ^{716 731 741 751 758 785} Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Intl. Total 28 Gross subscriber adds D-A-CH in thousands Net subscriber adds D-A-CH in thousands Subscriber base in thousands 12 15 10 10 6 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 +6%

Numerous product improvements in 2011 and early 2012

User Interface / Frontend

• New design & better user experience
• New sharing functions
• New features, e.g.
• XING lunch planner
• XING beta labs with "Poll"-feature & "Freelancer" marketplace
• MINI job & CAMPUS job ads

"Mobile"

• XING everywhere (Android, iOS, HTML5, Windows 7, XING Beam)
• Integration of mobile advertising

"Subscription Products"

• Improvement of "Recruiter Membership"
• Launch of "Sales Membership"

Coming soon

• XING API (Q2 2012)
• XING Corporate Recruiter Account (CRA) (Q2 2012)

#1 Business Network in D-A-CH

… in members

With >5.3m+ members in D-A-CH XING is the largest business network in a region with 100m inhabitants and the world's #4 in GDP

… in growth

800k net new members in 2011

… in activity

with more than 4/5 of all segment page views, XING is the most active business network

• … social media recruiting platform for online job ad postings
• … in brand awareness confirmed by recent GFK analysis

Executive summary

Revenue growth of 22% with continued revenue diversification

Increased EBITDA of €22m and margin of 34%

Adjusted for impairment net income increases by 31%

Recommendation to start regular dividend payments

FY 2011: Another year of revenue and EBITDA growth

(1) Including other operating income

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

Bottom line adjusted for one time write-down of €14.4m At the same time reinforced investment mode since H2 2011

Increase In Profitability Driven By Scaling Business, Growth To Profitability Of New Business & Turnaround International

	2010	2011	Comment
Subscription	+	+	Scale of existing business
E-recruiting	+	+	Scale of existing business
Advertising w/o Company Profiles	+	+	Scale of existing business
Company Profiles	-	+	Growth to profitability
International	-	+	Turnaround
Events	n/a	-	Major investment field
Total EBITDA margin	31%	34%

• High profitability due to by-product economics in verticals
• Investment in Events dilutes overall margin by 5-6%pts.
• Further investment fields: mobile, advertising, marketing, sales

Continued strong growth of vertical revenues

Full year operating cash flow €13.9m

	2011	2010	2011 vs. 2010	2011 vs. 2010
	Abs.	Abs.	Abs.	Rel.
EBITDA	22.2	16.7	5.5	33%
Interest/tax/ESOP	(9.1)	(1.4)	(7.7)	na
Net working capital	0.8	7.1	(6.3)	(89%)
Operating cash flow excl. organizer cash	13.9	22.4	(8.5)	(38%)
Investment – operating	(6.5)	(5.7)	(0.8)	15%
Investment – acquisitions	(5.4)	(1.1)	(4.4)	na
Financing incl. transaction of own shares	5.2	0.5	4.7	na
Free cash flow excl. organizer cash	7.2	16.2	(9.0)	(56%)
Effects organizer cash	2.0	na	2.0	na
Free cash flow incl. organizer cash	9.2	16.2	(7.0)	(43%)

Adjusted for distortions operating cash flow has increased from €15.6m in 2010 to €18.7m in 2011

• 2010 one-time cash in from renegotiation of credit card contract (+€3.5m) and shift of tax cash-outs into 2011 (+€3.3m)
• 2011 tax-cash-outs for years 2006-2010 (-€4.8m)

Q4'11: €17m revenues, €5.6m EBITDA, 32% margin

	Q4'11	Q3'11	Q4'11 vs. Q3'11	Q4'10	Q4'11 vs. Q4'10
	Abs.	Abs.		Abs.
Total revenue1	17.6	16.6	+6%	14.7	20%
Costs	(12.0)	(11.2)	(7%)	(9.4)	(28%)
EBITDA	5.6	5.4	4%	5.2	6%
Margin	32%	32%	0%pt	36%	(4%pt)
Depreciation (adjusted) (2)	(2.6)	(1.8)	(50%)	(1.5)	(79%)
Financial result	0.2	0.2	(25%)	0.0	na
Taxes (adjusted) (2)	(1.4)	(1.2)	(11%)	(1.3)	(9%)
Net result (adjusted) (2)	1.8	2.6	(32%)	2.5	(31%)

(1) Including other operating income

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

Q4'11: Continued revenue diversification

Personnel main investment area to further drive company growth

Personnel

in €m in % of total revenue

• Yoy increase due to amiando acquisition
• Investment into product/technology organization & sales/marketing
• 35 new FTEs in Q4

Marketing in €m in % of total revenue

• 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

• External services, legal, audit & consulting
• Payment processing, server hosting
• Rent & other costs
• Data center move in H2 2011

Quarterly operating cash-flow €2.5m

	Q4'11	Q3'11	Q4'11 vs. Q3'11	Q4'10	Q4'11 vs. Q4'10
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	5.6	5.4	0.2	5.2	0.4
Interest/tax/ESOP	(2.7)	0.1	(2.8)	(0.6)	(2.1)
Net working capital	(0.4)	(0.8)	0.4	(0.5)	0.1
Operating cashflow excl. organizer cash	2.5	4.7	(2.2)	4.2	(1.7)
Investment – operating	(2.2)	(1.8)	(0.5)	(2.0)	(0.3)
Investment – acquisitions	(0.0)	(0.3)	0.3	0.0	0.0
Financing incl. transaction of own shares	0.4	0.8	(0.4)	0.5	(0.1)
Free cashflow excl. organizer cash	0.7	3.4	(2.7)	2.7	(2.0)
Effects organizer cash	(2.5)	2.4	(4.9)	na	(2.5)
Free cashflow incl. organizer cash	(1.8)	5.8	(7.6)	2.7	(4.5)

Adjusted for distortions operating cash flow has increased from €3.6m in Q3 to €4.2m in Q4

• Q3 tax cash-out shifted to Q4 (+€1.1m)
• Q4 tax-cash-out for past quarters (-€1.7m)

We plan to pay out regular dividends

Strong recurring cash flows despite investments in growth

• Prepaid revenues
• High margins
• Low capital intensity

Sufficient funds

• Cash: €46m*
• Authorized capital
• Debt capacity (currently debt free)

Executive board recommends to start paying out dividends

• €0.56 per share = ~€3m
• Policy: Sustainable dividend payments going forward

Overall strategy in 2012 remains unchanged

Significant growth potential ahead in core markets (D-A-CH) to become a €100m+ company in a few years

Thank you for your kind attention!

The professional network www.xing.com

Backup

Negative invested capital from shareholders' perspective

in €m

	2011
[excl. Event organizer cash]	Abs.
Assets	112.4
Operating assets	25.7
Acquisitions / international	19.8
TAX A/R	0.7
Cash	66.2
Liabilities	112.4
Equity	56.7
Deferred income	22.9
Liabilities (incl. 20m distribution Feb'12)	30.0
Tax liabilities	2.8
Other	0.0

Operating assets	€25.7m
Deferred income	(€22.9m)
Liabilities	(€30.0m)
Invested capital w/o cash	(€27.2m)

Return of €3.76 per share to shareholders on Feb 7, 2012 [Record date was August 1, 2011]

XING AG IR stats

Market cap: €260m / ~€66m cash* / no debt

* €20m (~3.76 per share) return to shareholders expected for February 7, 2012

XING Share Price Since IPO In Dec 2006

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/