New Work SE — Investor Presentation 2014

Nov 6, 2014

XING AG Interim Results Q3 2014

November 6, 2014

REVENUE GROWTH 20% YOY; EBITDA GROWTH 59% YOY FY EBITDA INCL. KUNUNU-EARN-OUT EXPECTED AT €28-29M

STRONGEST QUARTERLY MEMBER GROWTH SINCE IPO

E-RECRUITING BUSINESS GROWING 42%

NEW POSITIONING = NEW PRODUCTS

Q3 TOP-LINE GROWTH 20%; EBITDA GROWTH 59%

STRONGEST QUARTERLY MEMBER GROWTH SINCE IPO: 282,000

E-RECRUITING WITH ACCELERATING GROWTH RATES: Q3/14: 42% VS. Q3/13: 17%

Key drivers

• Strong XTM growth: 1,900 B2B customers (+850 since Q3/13)
• Strong EBP growth
• Solid double digit growth in classical job ad business

E-Recruiting revenue [€m]

NEW POSITIOING = NEW PRODUCTS

LAUNCH OF "XING JOBS MARKETPLACE" HELPING OUR MEMBERS TO FIND THE RIGHT JOB

Key facts

• Strong focus on user needs
• Find the job that suits your living conditions & values
• 300 different job & city pages
• Non-XING members can discover jobs
• https://www.xing.com/stellenmarkt

LAUNCH OF XING "PROJOBS" FOR ACTIVE JOBSEEKERS (LAUNCHED OCT 2014)

• New add-on Premium service
• Being more visible for >3,000 top recruiters
• Much more detailed and more relevant job offers due to additional profile information
• Full control: discover jobs in a discrete way
• Price: €24.95-€39.95 (incl. Premium-membership) (3, 6, 12 or 24 months)

LAUNCH OF XING EVENTS-MARKETPLACE

• 400 professional events per day
• Discover events that…
• help me improve my skills
• help meeting interesting people (learn, exchange knowledge etc.)
• my contacts are going to as well (people2meet)
• Accessible also for nonmembers
• Mobile

Q3 FIGURES

Q3 FINANCIAL HIGHLIGHTS

ACCELERATING MEMBER GROWTH REINFORCING MARKET LEADER POSITION

CONTINUING ACCELERATION OF REVENUE GROWTH DRIVEN BY PREMIUM CLUB AND E-RECRUITING

EBITDA INCL. KUNUNU-EARN-OUT: €9.1m

FY EBITDA INCL. KUNUNU-EARN-OUT EXPECTED AT €28-29M

OVERALL, FINANCIALS WELL ON TRACK

	Q3/14	Q2/14	Q3/14 vs. Q2/14	Q3/13	Q3/14 vs. Q3/13
	Abs.	Abs.	%	Abs.	%
Total revenue1	26.0	24.4	7%	21.6	20%
Costs	(16.1)	(17.4)	5%	(15.4)	(10%)
EBITDA w/o kununu earn-out	9.9	7.0	40%	6.2	59%
Margin w/o kununu earn-out	38%	29%	32%	29%	32%
Non-operating costs from kununu earn out	(0.8)	(0.5)	(53%)	0.0	N.A.
EBITDA incl. kununu earn-out	9.1	6.5	39%	6.2	47%
Depreciation (incl. PPA)	(1.9)	(2.2)	12%	(2.1)	5%
Financial result	0.0	0.0	215%	0.0	(85%)
Taxes	(2.5)	(1.6)	(61%)	(1.5)	(72%)
Net result incl. kununu earn-out	4.7	2.8	68%	2.7	71%
Net result w/o kununu earn-out	5.4	3.3	66%	2.7	99%

NETWORK / PREMIUM AND E-RECRUITING CONTINUE TO DRIVE XING PROFITABILITY

	Segment EBITDA	Margin
Network / Premium	€ 10.6m	68%
E-Recruiting1	5.0m1 € € 4.2m2	57%1 48%2
Events	(€ 0.4m)	N.A.
Tech, Central Services & Other	(€ 5.3m)	N.A.
Total EBITDA w/o kununu earn-out	€ 9.9m	38%

STRONG ACCELERATION OF REVENUE GROWTH RATES IN KEY SEGMENTS NETWORK/ PREMIUM & E-RECRUITING

1) W/o anorganic growth from kununu acquisition

QOQ COST DEVELOPMENT IMPACTED BY BASE EFFECTS AND PHASING

• organization & sales/marketing
• Q2/14 and Q3/14 including non-operating costs from kununu earn-out

• +77 FTEs

• Search engine marketing (SEM)

• Offline marketing expenditure (conferences & events, print, sponsoring)

• Affiliate marketing

• audit & consulting

• Payment processing, server hosting
• Rent & other costs

CONTINUOUS STRONG CASH CONVERSION

	Q3/14	Q2/14	Q3/14 vs. Q2/14	Q3/13	Q2/14 vs. Q2/13
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	9.1	6.5	2.6	6.2	2.9
Interest/tax & kununu earn out	(0.3)	(0.6)	0.3	(0.9)	0.6
Change net working capital	1.6	0.4	1.2	(0.9)	2.5
Operating cash flow excl. organizer cash	10.5	6.4	4.1	4.4	6.1
Investment – operating	(3.2)	(2.9)	(0.3)	(2.9)	(0.3)
Investment – acquisitions	(0.3)	(0.6)	0.3	0.0	(0.3)
Financing incl. transaction of own shares	0.0	0.0	0.0	0.4	(0.4)
Free cash flow excl. organizer cash & dividends	6.9	2.9	4.1	1.9	5.0
Regular & special dividends	0.0	(23.4)	23.4	0.0	0.0
Free cash flow excl. event organizer cash & incl. Dividends	6.9	(20.6)	27.5	1.9	5.0
Effects organizer cash	0.5	(1.0)	1.5	1.6	(1.1)
Free cash flow incl. event organizer cash & dividends	7.4	(21.6)	28.9	3.5	3.9

ACCELERATING MEMBER GROWTH REINFORCING MARKET LEADER POSITION

CONTINUING ACCELERATION OF REVENUE GROWTH DRIVEN BY PREMIUM CLUB AND E-RECRUITING

EBITDA INCL. KUNUNU-EARN-OUT: €9.1m

FY EBITDA INCL. KUNUNU-EARN-OUT EXPECTED AT €28-29M

www.xing.com

BACKUP

XING BEST POSITIONED TO BENEFIT FROM MEGATREND "NEW WORK"…

Digitalisation	Shortage of skilled workforce	Change in values & Generation Y
 WORK ANYWHERE & ANY TIME  TRANSPARENCY  NETWORKS DEMOCRATISE GOOD CONTACTS	 CHANGING POWER BALANCES  WAR FOR TALENT  NEED FOR PROACTIVE RECRUITING & EMPLOYER BRANDING	 FLEXIBILITY, INDEPENDENCE & SELF-DETERMINATION  ABOLITION OF ARTIFICIAL HIERARCHIES  MEANINGFUL & FULFILLING JOB MORE IMPORTANT THAN A CAREER
XING offers product solutions for modern working life	XING offers the biggest talent pool in D-A-CH	XING offers transparency, choice and opportunities
"For a better working life"		"Enable professionals to grow"

NETWORK / PREMIUM SEGMENT SHOWING ACCELERATING REVENUE GROWTH RATES: Q3/14: +14% VS. Q3/13: +7%

Paying member base D-A-CH [thousands]

Network / Premium revenues [€m]

1) ARPU Q3/14: €5.61 (Q3/13: €5.19)

INVESTOR INFORMATION & CONTACT

XING AG IR STATS MARKET CAP: ~€470m / >€57m CASH / NO DEBT

Consensus from 10 brokers as collected by XING	2014e	2015e	2016e
Total revenues	96.8	109.0	122.8
EBITDA	27.5	35.8	43.2
Margin	28%	33%	35%
Depreciation	(8.7)	(9.3)	(9.7)
EBIT	18.8	26.6	33.5
Margin	19%	24%	27%
Net income	12.8	18.0	22.5
EPS in €	2.25	3.29	4.09
DPS in €	1.18	1.07	1.74

Consensus

Analyst coverage	Berenberg Bank, Commerzbank, Close Brothers, Deutsche Bank, Goldman Sachs, Hauck & Aufhäuser, Jefferies, JP Morgan Cazenove, MM Warburg, Montega
Shares	5,592,137
TecDax ranking end of October 2014
Market Cap.	28
Turnover	31

Average trading volume per day (XETRA) & Market Cap

Burda Digital GmbH (DE)	50.51%
Deutsche Asset & Wealth Mngt (DE)	5.97%
Oppenheimer (US)	5.07%
Schroders (UK)	5.05%
Union Investment (DE)	5.00%
Treasury Shares	0.22%
Rest	28.18%

Numbers based on last filing – actual shareholdings can differ

XING SHARE PRICE DEVELOPMENT SINCE IPO as of Nov 4, 2014

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)40 419 131-44 (Please use this number to submit "WpHG notifications")

Email.: patrick.moeller@xing.com

IR website: https://corporate.xing.com/english/investor-relations/