New Work SE — Investor Presentation 2016

Nov 7, 2016

XING Q3 2016 Results Presentation

Hamburg, November 7, 2016

Executive Summary

Yet another strong quarter!

Strong financial KPIs Q3'16

• Revenue +24% $\bullet$ .
• EBITDA +38% $\bullet$
• Net income +38% $\bullet$

Strong operating KPIs Q3'16

• 441k net new members
• 11k net new paying members

Strong financial performance Revenue +24%; EBITDA +38%; OpCF+30%

Q3'16: Yet another strong quarter 441k net member adds - highest Q3 growth in history

Q3'16: 11k net payer adds - continuing ARPU growth

Rounding differences are possible
ARPU includes all XING paid memberships

XING Klartext successfully established as relevant business media in German speaking countries

"1 year "klartext"

• 5m article views

• 600 authors (i.e. Dr. Frank Appel, Markus Schenk, Andrea Nahles etc.)
• Branchen Insider and News pages complete offering w/ >2m followed pages, >300 partner pages, >100 industry insiders since launch

New XING referral manager (XRM) solution introduced in October

• XING referral manager addressing todays HR challenges
• 2/3 companies have problems filling open positions
• 1/3 of companies need 6+ months to fill open positions
• . XRM helps companies to leverage their current employees network for referral management

"Der XING EmpfehlungsManager zeigt uns ein Mitarbeitender hat drei Kontakte, die auf eine ganz bestimmte Stelle passen. So eine Info ist Gold wert." $\mathbf{u}$ . Send Campaign for Data Engineer (m/f Van Armstrong O ^P Incentive P FILTER .
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Q3 2016 Financial Results

Q3 financials

• Ongoing strong quarterly member growth w/ 441k net adds $\bullet$
• Revenue growth at 24% yoy $\bullet$
• EBITDA at €12.9m $\bullet$
• Strong operating cash-flow w/ €11.5m $\bullet$

Q3 2016 P&L: €37.8m revenues; €12.9m EBITDA

	Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015	Q2 2016	Q3 2016 vs. Q2 2016
	Abs.	Abs.	Rel.	Abs.	Rel.
Total revenue 1	37.8	30.5	24%	36.2	4%
Costs	(24.8)	(21.1)	(18%)	(23.8)	(4% )
EBITDA	12.9	9.3	38%	12.4	4%
Margin	34%	31%	4%pts	34%	0%pts
D&A	(2.5)	(2.4)	(5%)	(2.5)	(2%)
Financial result	(0.1)	(0.1)	(29%)	0.0	N/A
At equity consolidated companies (JV)	(0.9)	0.0	N/A	(0.7)	(23%)
Taxes	(3.0)	(2.2)	(36%)	(2.9)	(3%)
Net result	6.4	4.6	38%	6.4	0%
EPS	1.14	0.83	37%	1.14	0%

Rounding differences are possible

Q3 2016: EBITDA contribution by segment

	Segment EBITDA	Q3 16 Margin	Q3 15 Margin
B 2 C	€ 10.5m	53%	59%
B2B E-Recruiting	€ 9.1 $m$	65%	61%
B2B Advertising & Events	€ 0.4 $m$	13%	18%
(Kununu) International	€ 0.1 $m$	23%	N/A
Tech, Central Services & Other	$(\epsilon$ 7.2m)	N/A	N/A
Total EBITDA	€ 12.9m	34%	31%

Rounding differences are possible

Q3 2016: E-Recruiting revenue growing 39%

Q3 2016: Cost development

Personnel in $\epsilon$ m in % of total revenue

• $+139$ FTE's
• Investment in product/tech org & sales/marketing
• Incl. non operating costs

Marketing

in $\epsilon$ m in % of total revenue

• Online display & social media $\bullet$
• · SEM
• Offline expenditures (Conferences & $\bullet$ . events, print)
• Affiliate

Other expenses in $\epsilon$ m in % of total revenue

• Rent
• Server hosting
• Payment processing
• · Travel & Entertainment
• Other

Q3 2016: Operating cash flow of € 11.5m

	Q3 2016	Q3 2015	Q3 2016 vs. Q3 2015	Q2 2016	Q3 2016 vs. Q2 2016
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	12.9	9.3	3.6	12.4	0.5
Interest / tax / ESOP / earn-out accruals / other	(1.4)	(2.0)	0.6	(1.7)	0.3
Change in net working capital	0.0	1.6	(1.6)	4.2	(4.1)
Operating cash flow excl. organizer cash	11.5	8.9	2.6	14.9	(3.4)
$Investment$ – operating	(4.3)	(4.0)	(0.3)	(5.7)	1.5
Investment - acquisitions & joint venture	0.0	(0.8)	0.8	(3.0)	3.0
Capital increase from ESOP & sale/purchase of own shares	0.0	2.1	(2.1)	0.0	0.0
Interests paid & exchange rate differences	(0.1)	(0.0)	(0.0)	0.0	(0.0)
Cash flow excl. dividends & organizer cash	7.2	6.1	1.1	6.2	1.0
Regular dividend	0.0	0.0	0.0	(5.8)	5.8
Special dividend	0.0	0.0	0.0	(8.4)	8.4
Cash flow excl. organizer cash	7.2	6.1	1.1	(8.0)	15.2
Effects organizer cash	2.0	1.7	0.3	(0.5)	2.5
Cash flow incl. organizer cash	9.2	7.8	1.4	(8.5)	17.7

Rounding differences are possible

Thank you for your attention.

Backup

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Negative invested capital from shareholders' perspective

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Consensus, investor information & contact details

XING AG IR stats Market cap: ~€ 1bn / >€ 75m cash / no debt

Consensus from 10 brokers collected by XING IR	2016e	2017e	2018e	Average trading volume per day (XETRA) & Market Cap (in $\epsilon$ m)
Total revenues	146.0	171.7	200.3	1009,4 1003.5 959,4 $\triangle$ 990,0	1042,3
EBITDA	46.4	58.3	70.8	905,7
Margin	32%	34%	35%	959,7 971,2 873
D&A	$-10.6$	$-11.8$	$-12.7$	19613
EBIT	36.3	46.0	56.7	13646 9825 9358	8793
Margin	25%	27%	28%	7722 7174 7420 6610 6419 5570 4225	3497
Net income	32%	34%	35%
EPS in $\epsilon$	4.33	5.45	6.74
DPS in $\epsilon$	1.70	2.70	3.45	ioruary 16 Apriling March-16 1414-16
Analyst coverage	Bankhaus Metzler, Berenberg Bank, Commerzbank, Deutsche Bank, Goldman Sachs, Hauck & Aufhäuser, Jefferies, MM Warburg, Montega, Oddo Seydler			Burda Digital GmbH (DE)	50.26%
				Deutsche Asset & Wealth Mngt. (DE)	4.95%
				Oppenheimer (US)	5.04%
Shares	5,620,435			Union Investment (DE)	4.98%
				Wasatch Advisors (US)	3.02%
				Rest	31.75%
Numbers based on last filing - actual shareholdings can differ

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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 $FAX.: +49(0)40419131-44$
(Please use this number to submit "WpHG notifications")

Email.: patrick.moeller@XING.com

XING

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FOR A BETTER WORKING LIFE