New Work SE — Investor Presentation 2018

May 3, 2018

Q1 2018 - Results Presentation

Hamburg, May 3rd, 2018

Executive Summary - Strong start to 2018

Financial KPIs

• Revenues* +28% (excl. M&A +21%)
• $\cdot$ EBITDA* +19%
• Operating cash flow* +23%

Operating KPIs

• 545k net new members
• 16k net new paying members
• 36% growth rate in B2B E-Recruiting customers (subscriptions) $\bullet$
• Introduction of new startpage & crypto messenger (B2C), $\bullet$ XING privacy hub and Smart Pools (B2B)

Revenues, EBITDA & cash flow with double-digit growth

* Organic topline growth excluding one-time positive effects from M&A (InterNations & Prescreen) amounts to 21% in Q1 2018 ** 2017 values adjusted retroactively according to IFRS 15/16

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Ongoing strong net new member adds

Ongoing solid net new payer adds

Paying members D-A-CH $-$ in 000s $-$

*Change in reporting method in connection with change of payment provider leads to ~10k payer base step increase as of 1 Jan 2017 Rounding differences possible

36% uptake in B2B E-Recruiting customers

Strengthen the core: Launch of new iOS startpage

Strengthen the core: Launch of end-to-end encryption in XING messaging section

Launch of XING privacy hub and sustained full compliance with General Data Protection Regulation

Ihre Privatsphäre innerhalb von XING

Was wollen Sie Profilbesuchern zuerst von sich zeigen?

Damit Sie überhaupt ein Profil auf XING anlegen können, benötigen wir einige Angaben wie Namen, Jobtitel und Ort von Ihnen. Diese Informationen sind die Basis eines funktionierenden beruflichen Netzwerkes und für andere Nutzer immer sichtbar.

B2B E-Recruiting launches Smart Pools

Als Smart Pool speichern

Ein Smart Pool ist ein automatisch erstellter Talentpool, dessen Kandidatenliste auf Ihren persönlichen Suchkriterien beruht. Er aktualisiert sich kontinuierlich, sodass Sie stets Zugriff auf bis zu 1.000 Kandidaten haben, die zu Ihren Kriterien passen.

Name des Pools (Pflichtfeld)

Produkt Manager HH+50km

Beschreibungstext

Mit 5-10 Jahren in akt. Position

Suchkriterien und -filter

Suchbegriffe: Produkt Manager

Karrierewünsche: Nicht auf Jobsuche, offen für Angebote

Dauer der aktuellen Position: 5-10 Suchradius: 50km Arbeitsort: Hamburg

Abbrechen Smart Pool erstellen

Q1 2018 Financial Results

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Q1 Financials

• Continued strong quarterly member growth w/ 545k net adds $\bullet$
• Revenue growth at 28% yoy, organic growth strong w/ 21% yoy $\bullet$
• EBITDA at $€14.8m$ $\bullet$
• Strong operating cash-flow at €25.1m $\bullet$

Applying IFRS 15/16 for the first time

Q1 2018 P&L: € 54.0 m revenues; € 14.8 m EBITDA

	Q1 2018	Q1 2017*	Q1 2018 vs. Q1 2017	Q4 2017*	Q1 2018 vs. Q4 2017
	Abs.	Abs.	Rel.	Abs.	Rel.
Total revenues 1	54.0	42.1	28%	53.6	1%
Costs	(39.2)	(29.6)	32%	(38.0)	3%
EBITDA	14.8	12.4	19%	15.6	(5%)
Margin	27%	30%	$(3\%pts)$	29%	$(2\%pts)$
D&A	(4.7)	(3.6)	30%	(8.9)	(47%)
Financial result	(0.2)	(0.1)	18%	1.3	N/A
kununu US Joint venture	(0.6)	(1.3)	(52%)	(0.7)	(7%)
Taxes	(3.2)	(2.5)	27%	(2.6)	23%
Net income	6.1	4.9	25%	4.8	27%
EPS	1.09	0.87	25%	0.86	27%

* Q1 2017 values adjusted retroactively according to IFRS 15/16

Q1 2018: EBITDA contribution by segment

	Segment EBITDA	Q118 Margin	Q1 17* Margin	Comment
B 2 C	10.5	44%	54%	Investments in new products
B2B E-Recruiting	15.7	66%	69%	Yoy % higher marketing & personnel
B2B Advertising & Events	1.3	26%	26%
kununu International	(0.0)	N/A	N/A
Tech, Central Services & Other	(12.7)	N/A	N/A
Total EBITDA	€ 14.8m	27%	30%

* Q1 2017 values adjusted retroactively according to IFRS 15/16

Q1 2018: All core segments report double-digit growth

^* Q1 2017 values adjusted retroactively according to IFRS 15/16

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Q1 2018: Cost development

Marketing*

• $+70$ FTEs
• · Investment in product/tech org & sales/marketing

• $\cdot$ Incl. non-operating costs

• $\cdot$ TV campaign in Q1/18 & Q1/17

• Online display & social media $\ddot{\phantom{a}}$
• SEM $\epsilon$
• Offline expenditures (conferences $\bullet$ (i.e. NWX) & events, print)

Other expenses* in $\epsilon$ m and in % of total revenues

• $\cdot$ External services
• · Server hosting
• Payment processing
• $\cdot$ Travel & entertainment
• · Other

* Q1 2017 values adjusted retroactively according to IFRS 15/16

Q1 2018: Operating cash flow of € 25.1m

	Q1 2018	Q1 2017*	Q1 2018 vs. Q1 2017	Q4 2017*	Q1 2018 vs. Q4 2017
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	14.8	12.4	2.4	15.6	(0.8)
Interest / tax / other	(2.8)	(2.0)	(0.8)	(3.1)	0.3
Change in net working capital	13.1	10.1	3.0	(1.9)	15.0
Operating cash flow excl. organiser cash	25.1	20.4	4.6	10.5	14.5
Investment - operating	(8.4)	(6.9)	(1.5)	(10.2)	1.8
Investment - acquisitions & joint venture	(1.2)	(4.0)	2.8	(0.1)	(1.1)
Investment - financial assets	0.0	(30.0)	30.0	0.0	0.0
Interests paid, FX rate diff. & rents (redemption)	(0.8)	(0.9)	(0.0)	(1.1)	0.2
Free cash flow excl. dividends & organiser cash	14.6	(21.3)	35.9	(0.9)	15.4
Regular dividend	0.0	0.0	0.0	0.0	0.0
Special dividend	0.0	0.0	0.0	0.0	0.0
Free cash flow excl. organiser cash	14.6	(21.3)	35.9	(0.9)	15.4
Effects organiser cash	1.6	5.2	(3.7)	(2.2)	3.8
Free cash flow incl. organiser cash	16.1	(16.1)	32.2	(3.1)	19.2

* Q1 2017 values adjusted retroactively according to IFRS 15/16

Rounding differences possible

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Thank you for your attention.

Backup

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$\boldsymbol{\chi}$ Negative invested capital from shareholders' perspective

Rounding differences possible

Consensus, investor information & contact details

XING SE IR stats

Consensus from 7 brokers collected by XING IR	2018e	2019e	2020e
Total revenues	217	255	292
EBITDA	72	87	103
Margin	33%	34%	35%
D&A	(14)	(17)	(21)
EBIT	56	70	82
Margin	26%	27%	28%
Net income	36	46	56
EPS in $\epsilon$	6.44	8.21	9.89
DPS in $\epsilon$	3.02	3.80	3.96
Analyst coverage			Berenberg, Commerzbank, Deutsche Bank, Equinet, Hauck & Aufhäuser, MM Warburg, Oddo BHF
Shares			5,620,435

Average trading volume per day (XETRA) & market cap

Numbers based on last filing - actual shareholdings can differ

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XING share price development since IPO

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Investor Relations contact details & social media channels

PATRICK MOELLER

Director Investor Relations

XING SE 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")

E-mail: patrick.moeller@XING.com

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skype:patrickmoeller?add

XING

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FOR A BETTER WORKING LIFE