New Work SE — Investor Presentation 2016

Aug 4, 2016

XING Q2 2016 Results Presentation

Hamburg, August 4, 2016

Executive Summary

Strong performance in Q2'16 Financial KPIs

• Revenue +20%
• EBITDA +31% $\bullet$
• Net income +37% $\bullet$

Operating KPIs

• 415k net new members
• 10k net new paying members

Strong financial performance Revenue +20%; EBITDA +31%; OpCF+90%

Q2'16: XING showing strong member growth
415k net member adds - highest Q2 growth in history

Q2'16: 10k net payer adds - Ongoing ARPU accretion

Rounding differences are possible

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• New journalistic offering
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• Example 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 Fig. 2 F offering (i.e Klartext & Industry news)
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• ~70 selected industry experts

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Q2 2016 Financial Results Ingo Chu

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Q2 financials

• Ongoing strong quarterly member growth w/ 415k net adds $\bullet$
• Revenue growth at 20% yoy $\bullet$
• EBITDA at $£12.4m$ $\bullet$
• Strong operating cash-flow w/ €14.9m $\bullet$

Q2 2016 P&L: €36.2m revenues; €12.4m EBITDA

	Q2 2016	Q2 2015	Q2 2016 vs. Q2 2015	Q1 2016	Q2 2016 vs. Q1 2016
	Abs.	Abs.	Rel.	Abs.	Rel.
Total revenue 1	36.2	30.2	20%	34.3	6%
Costs	(23.8)	(20.7)	(15%)	(23.8)	0%
EBITDA	$12.4$	9.5	31%	10.4	19%
Margin	34%	31%	3%pts	30%	4%pts
D&A	(2.5)	(2.3)	(8%)	(2.2)	(10%)
Financial result	0.0	(0.0)	(313%)	(0.1)	(134%)
At equity consolidated companies (JV)	(0.7)	0.0	N/A	0.0	N/A
Taxes	(2.9)	(2.6)	(15%)	(2.7)	(7%)
Net result	6.4	4.7	37%	5.3	20%
EPS	1.14	0.83	37%	0.95	20%

Rounding differences are possible

Q2 2016: EBITDA contribution by segment

	Segment EBITDA	Q 2 16 Margin	Q 2 15 Margin
B 2 C	€ 10.5m	55%	57%
B2B E-Recruiting	€ 8.2 $m$	63%	58%
B2B Advertising & Events	€ 1.0 $m$	32%	32%
Kununu International	€ 0.2 $m$	N/A	N/A
Tech, Central Services & Other	$(\epsilon$ 7.5m)	N/A	N/A
Total EBITDA	€ 12.4 $m$	34%	31%

Rounding differences are possible

Q2 2016: E-Recruiting growing 30%

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Q2 2016: Cost development

Personnel in $\epsilon$ m in % of total revenue 16% $13.4$ $12.6$ 11.5 37% 37% 38%

• Q116 Q2 16 Q₂ 15
• $+137$ 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

	Q2 2016	Q2 2015	Q2 2016 vs. Q2 2015	Q1 2016	Q2 2016 vs. Q1 2016
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	12.4	9.5	2.9	10.4	2.0
Interest / tax / ESOP / non-cash changes	(1.7)	(1.0)	(0.6)	(1.4)	(0.3)
Change in net working capital	4.2	(4.6)	8.7	3.8	0.4
Operating cash flow excl. organizer cash	14.9	3.9	11.0	12.9	2.1
Investment - operating	(5.7)	(3.4)	(2.3)	(5.0)	(0.8)
Investment - acquisitions & joint venture	(3.0)	0.0	(3.0)	(2.7)	(0.3)
ESOP & transaction of own shares	0.0	2.5	(2.5)	0.0	0.0
Interests paid & exchange rate differences	0.0	0.0	0.0	(0.0)	(0.0)
Cash flow excl. dividends & organizer cash	6.2	3.0	3.3	5.2	1.0
Regular dividend	(5.8)	(5.1)	(0.7)	0.0	(5.8)
Special dividend	(8.4)	0.0	(8.4)	0.0	(8.4)
Free cash flow excl. organizer cash	(8.0)	(2.2)	(5.8)	5.2	(14.2)
Effects organizer cash	(0.5)	(0.9)	0.5	1.8	(2.2)
Free cash flow incl. organizer cash	(8.5)	(3.1)	(5.3)	6.9	(15.4)

IFRS accounting of cash-out for kununu earn-out distorts cash-flow from NWC in Q2'15, operating cash-flow, and cash-flow from investment activities

• Cash-flow from change in NWC reported -€4.6m; adjusted by cash-out for kununu earn-out of €4.0m leads to CF NWC of -€0.6m
• Op. Cash-flow reported €3.9m; adjusted by cash-out for kununu earn-out of €4.0m leads to op. Cash-flow of €7.9m
• Cash-flow from investing activities reported -€3.4m; adjusted by by cash-out for kununu earn-out of €4.0m leads to -€7.4m

Thank you for your attention.

Backup

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Negative invested capital from shareholders' perspective

Rounding differences are possible

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Consensus, investor information & contact details

XING AG IR stats Market cap: $\sim \epsilon$ 1bn / $\epsilon$ 75m cash / no debt

Consensus from 10 brokers collected by XING IR	2016e	2017e	2018e
Total revenues	146.0	171.7	200.3
EBITDA	46.4	58.3	70.8
Margin	32%	34%	35%
D&A	$-10.6$	$-11.8$	$-12.7$
EBIT	36.1	46.8	58.6
Margin	25%	27%	29%
Net income	23.4	30.0	37.3
EPS in $\epsilon$	4.23	5.45	6.74
DPS in $\epsilon$	1.70	2.70	3.45

Analyst coverage	Bankhaus Metzler, Berenberg Ban Commerzbank, Deutsche Banl Goldman Sachs, Hauck & Aufhäuse Jefferies, MM Warburg, Montega Oddo Seydle
Shares	5,620,43

XING share price development since IPO

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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