New Work SE — Investor Presentation 2014

Feb 25, 2014

XING – #1 Professional Social Network In German Speaking Europe

Presentation of preliminary results 2013 February 25th, 2014

Dr. Thomas Vollmoeller (CEO) & Ingo Chu (CFO)

Disclaimer

This presentation was produced in February 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 December 2013. 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.

Successful revitalization of XING

Many initiatives to stop declining growth rates in 2012

• Adjusted strategy
• More product innovation
• New organizational structure
• New people

In 2013 we established a consistent and coherent frame for XING

Strong focus on product innovation with multiple new products launched in 2013

M&A: Successful acquisition and integration of kununu

Perfect fit for XING and our vision "for a better working life" ⁷

FY 2013: Re-acceleration of top-line growth achieved…

… with growth rates increasing quarter over quarter

Accelerating top-line growth driving EBITDA & Operating cash flow

Further improvement in member growth

Launch of "New Premium" offering to impact payer growth in 2014ff

Our goal: double 2012 revenues until 2016 2013: Mission accomplished

Executive summary – Financials

Adjusted strategy and org working well

Top-line growth accelerating to 16%

EBITDA increasing to €24.3m

Operating cash flow increasing to €23.8m

Recommendation: Increase regular dividend to €0.62 plus pay special dividend of €3.58

FY 2013: Revenue growth 16%, EBITDA up by 11%

	2013	2012 adjusted	2013 vs. 2012	2013 vs. 2012
	Abs.	Abs.2	Abs.	Rel.
Total revenue1	84.8	73.3	11.5	16%
Costs	(60.5)	(51.3)	(9.2)	(18%)
EBITDA	24.3	22.0	2.3	11%
Margin	29%	30%	(1%pt)
Depreciation	(8.5)	(8.3)	(0.1)	(1%)
Financial result	(0.0)	0.3	(0.4)	(110%)
Taxes	(5.3)	(4.8)	(0.5)	(10%)
Net result	10.5	9.2	1.4	15%

(1) Including other operating income

(2) 2012 figures adjusted for one-time expenses related to Burda takeover bid & kununu GmbH acquisition (€1.9m) & taxes adjusted by €0.5m accordingly

	Segment EBITDA	Margin
Network /Premium	€34.4m	63%
E-Recruiting	€10.7m	45%
Events	(€2.7m)	N.A.
Tech, Central Services & Other	(€18.0m)	N.A.

Ongoing investments in "Events" dilutes group EBITDA margin by ~5%pts

Network/Premium and e-recruiting driving overall revenue growth

Full year operating cash flow €23.8m

	2013	2012	2013 vs. 2012	2013 vs. 2012
	Abs.	Abs.	Abs.	Rel.
EBITDA	24.3	20.1	4.2	21%
Interest/tax/ESOP	(4.8)	(3.8)	(1.0)	(27%)
Net working capital	4.3	2.6	1.7	67%
Operating cash flow excl. organizer cash	23.8	18.9	4.9	26%
Investment – operating	(10.5)	(7.3)	(3.2)	(43%)
Investment – acquisitions	(2.9)	(2.5)	(0.5)	(20%)
Financing incl. transaction of own shares	2.7	3.8	(1.1)	(30%)
Free cash flow excl. dividends & organizer cash	13.1	13.0	0.1	1%
Capital return	0.0	(20.0)	20	100%
Regular dividend	(3.1)	(3.0)	(0.1)	(3%)
Free cash flow excl. organizer cash	10.0	(10.0)	20.1	200%
Effects organizer cash	0.2	0.6	(0.4)	(65%)
Free cash flow incl. organizer cash	10.2	(9.4)	19.7	208%

Q4 numbers

Q4'13: €22.7m revenues, €6.9m EBITDA

	Q4'13	Q3'13	Q4'13 vs. Q3'13	Q4'12	Q4'13 vs. Q4'12
	Abs.	Abs.		Abs.2
Total revenue1	22.7	21.6	5%	19.0	19%
Costs	(15.8)	(15.4)	(3%)	(12.4)	(27%)
EBITDA	6.9	6.2	12%	6.6	6%
Margin	31%	29%	2%pts	35%	(4%pts)
Depreciation (adjusted)	(2.2)	(2.1)	(7%)	(2.3)	5%
Financial result	(0.1)	0.0	(457%)	0.0	(537%)
Taxes (adjusted)	(1.5)	(1.5)	(2%)	(1.4)	(10%)
Net result (adjusted)	3.1	2.7	15%	2.9	7%

(1) Including other operating income

(2) Adjusted for one-time expenses related to Burda bid and kununu acquisition (€1.9m)

Yoy top-line growth of 19% accelerating each quarter (Q3:18%, Q2:15%, Q1:11%)

Q4 2013: Accelerating top-line growth

Personnel main investment area to further drive company growth

Personnel

in €m in % of total revenue

• Investment into product/technology organization & sales/marketing
• 18 new FTEs in Q4
• 56 new FTE's in 2013, thereof 29 kununu

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
• Start of TV campaign in Q4 13

Other Expenses in €m in % of total revenue

• External services, legal, audit & consulting
• Payment processing, server hosting
• Rent & other costs

Q4'2013: Operating cash flow: €6.0m

	Q4/13	Q3/13	Q4/13 vs. Q3/13	Q4/12	Q4/13 vs. Q4/12
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	6.9	6.2	0.7	4.7	2.3
Interest/tax/ESOP	(1.5)	(0.9)	(0.6)	(1.4)	(0.1)
Net working capital	0.6	(0.9)	1.5	0.5	0.1
Operating cash flow excl. organizer cash	6.0	4.4	1.6	3.8	2.3
Investment – operating	(3.0)	(2.9)	(0.1)	(2.1)	(0.9)
Investment – acquisitions	0.0	0	0-0	(2.5)	2.5
Financing incl. transaction of own shares	0.6	0.4	0.2	1.9	(1.4)
Free cash flow excl. organizer cash & dividends	3.6	1.9	1.6	1.1	2.4
Regular dividends	0.0	0.0	0.0	0.0	0.0
Free cash flow excl. event organizer cash & incl. dividends	3.6	1.9	1.6	1.1	2.5
Effects organizer cash	(2.4)	1.6	(4.0)	(2.1)	(0.3)
Free cash flow incl. organizer cash & dividends	1.1	3.5	(2.4)	(1.0)	2.1

Executive board recommends to increase regular dividend to €0.62 and to pay a special dividend of €3.58 per share

Dividend increase from €0.56 to €0.62 according to EPS growth of 11%

One time special dividend of €3.58 (€20m)

• Liquid assets of >€66m end of 2013
• Highly cash-generative business
• Payout with no impact reg. execution of our growth strategy

Regular dividend policy unchanged: Sustainable dividend payments going forward

XING – #1 Professional Social Network In German Speaking Europe

Closing remarks

Dr. Thomas Vollmoeller (CEO) & Ingo Chu (CFO)

Thank you for your kind attention!

The professional network www.xing.com

XING AG IR stats Market cap: ~€500m / >€66m cash / no debt

	Consensus from 8 brokers	2013e	2014e	2015e	Average trading volume per day (XETRA)
4) mates as of February, 201 s u s n	Total revenues	83.1	93.8	103.1	20
	EBITDA	24.1	30.1	35.4
	Margin	29%	32%	34%	15
	Depreciation	-8.6	-8.9	-8.9	12 12
e s	EBIT	15.5	21.1	26.5
n o Analyst esti C	Margin	19%	23%	26%	9 7 7 7
	Net income	10.6	14.5	18.7	4 3
	EPS in €	1.92	2.64	3.38
(	DPS in €	0.67	0.81	1.11
					Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14
			Berenberg	Bank, Commerzbank,
Analyst coverage			Close Brothers, Deutsche Bank, Hauck & Aufhäuser, JP Morgan Cazenove, MM Warburg, Montega		Burda Digital GmbH 2,922,244 Deutsche Asset & Wealth Mngt 372,660
					Schroders 282,421
					Union Investment 173,284
					Treasury Shares 12,832
Shares				5,592,137	Rest 1,828,696

[in thousand] 12 15 20 12 10

4 7 7 7 3 9 6 6 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

Analyst coverage	Berenberg Bank, Commerzbank, Close Brothers, Deutsche Bank, Hauck & Aufhäuser, JP Morgan Cazenove, MM Warburg, Montega

TecDax ranking end of Jan 2013
Market Cap.	28
Turnover	31

Burda Digital GmbH	2,922,244	52.26%
Deutsche Asset & Wealth Mngt	372,660	6.66%
Schroders	282,421	5.05%
Union Investment	173,284	3.10%
Treasury Shares	12,832	0.23%
Rest	1,828,696	32.70%
Numbers based on last filing – actual shareholdings can differ

XING share price development since IPO in Dec 06

as of February 25, 2014 (12:00 PM CET)

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: http://corporate.xing.com/english/investor-relations/