New Work SE — Investor Presentation 2019

Aug 13, 2019

Q2 2019 - Results Presentation

Hamburg, August 13 2019

Disclaimer

This presentation was produced in August 2019 by XING SE(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 SE and neither this presentationnoranythingcontainedhereinshallformthebasisof,orbereliedoninconnectionwith,anyofferorcommitmentwhatsoever.

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 anylossarising,directlyorindirectly,fromanyuseofthispresentation.Thesameappliestoinformationcontainedinothermaterialmadeavailableatthepresentation.

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 shouldnotbeinterpretedashavingbeenadoptedorendorsedbytheCompanyasbeingaccurate.

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 June 2019. 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.

IMPORTANTNOTICE

Pro-formaresults

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.

Cautionarynoteregardingpreliminaryresultsandpro-formafinancialresults

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.

Executive Summary Q2 2019 – Fully on track

Financials

• •Service revenues: +18% (excl. M&A: +16%)
• •EBITDA +18%
• •Net Income +7%

Operations

• •B2C: XING platform adding 478k members / InterNations adding 73k members
• •B2B E-Recruiting: Subscription customers up by 33%

Macro situation & M&A strategy

• •XING will furtherbenefitfromincreasingtalentscarcity
• •Honeypot is a perfect fit with our E-Recruiting offering

Revenues, EBITDA & Net Income growing nicely

Strongest net member growth of a second quarter in our history – InterNations also growing nicely

Q2 payer growth @XING D-A-CH w/ 6k

Paying members D-A-CH

* Organic payer growth +6.3k; a change in payer analysis methodology leads to one time payer base increase in D-A-Ch by 8.3k as of Jan 1st 2019 Rounding differences possible

B2B E-Recruiting subscription customers growing 33% yoy

B2B E-Recruiting subscription

customers in D-A-CH*

Total B2B E-Recruiting customers in D-A-CH*

* Excl. Prescreen and Honeypot

Macro situation: XING to further benefit from increasing talent scarcity

GDP growth, occupations and open positions in Germany

2020-2030: Due to demografics, candidate supply will decline by ~4m Ever growing need for modern employer branding, recruiting & hiring solutions ▪Trend of open vs. filled positions in Germany shows increasing number and share of open positions that cannot be filled

• ▪ Opportunity costs for economy of open positions in 2017 estimated at € 30bn
• ▪Resource scarcity even stronger among smaller companies

Source: Institut der deutschen Wirtschaft; Bundesagentur für Arbeit

M&A Recap: Honeypot is perfect fit for XINGs E-Recruiting solutions

Leads: >350 XING HR Experts know when their customers are looking for an IT pro and generate leads for Honeypot

•

•

•

• Size: Significant increase of "talent pool" (domestic & cross-border)
• Efficiency: HR interacts with active seeking tech talent only, thus high response rates from candidates

Tech talent is one of the most sought-after talent groups in general with high affinity for cross-border recruitment

Q2 2019 Financial Results

Q2 Financials

• •Very strong member growth in Q2
• •Revenue growth of 18% yoy; 2%-point contribution by Honeypot
• •EBITDA of € 22.0m with a margin of 34%
• •Operating cash flow at € 16.4m
• •Confirming FY outlook w/ EBITDA of € 84m incl. Honeypot

New Work SE name change has become effective Public launch in October 2019

• •New Work SE trading since August 1st, 2019
• •New ISIN: DE000NWRK013
• •New WKN: NWRK01

• •New Ticker: NWO

• •Bloomberg: NWO:GR

• •Reuters: NWOn.DE

Q2 2019 P&L: € 65.5 revenues; € 22.0m EBITDA

	Q 2 2 0 1 9	Q 2 2 0 1 8	Q 2 2 0 1 9 v s. Q 2 2 0 1 8	Q 1 2 0 1 9	Q 2 2 0 1 9 v s. Q 1 2 0 1 9
	bs A	bs A	l. Re	bs A	l. Re
ice Se rv re ve nu es	6 5. 5	5 5. 7	% 1 8	6 2. 6	% 5
in in he O t t g r o p er a co m e	0. 5	0. 6	( ) % 1 1	4. 8	( ) % 8 9
i ize l d k Ca ta p ow n w or	6. 5	6. 5	% 0	6 5.	% 1 5
i iza io be fo l Co ts ta t s re ca p n	( ) 0. 6 5	( ) 4 4. 2	1 5 %	( ) 4 5 5.	( ) 9 %
E B I T D A	2 2. 0	1 8. 6	1 8 %	1 7. 7	2 4 %
in Ma g r	% 3 4	% 3 3	%p 0 ts	% 2 8	%p 5 ts
D & A	( ) 6. 7	( ) 5. 3	% 2 6	( ) 5. 9	% 1 3
in ia l l F t an c re su	( ) *** 0. 5	** 0. 2	/ N A	* 0 1.	/ N A
Ta xe s	( ) 4. 9	( ) 4. 3	4 % 1	( ) 3. 9	2 % 5
in Ne t co m e	9. 8	9. 2	% 7	8. 9	% 1 1
E P S	1. 7 5	6 4 1.	% 7	8 1. 5	% 1 1

* Positive onetime effectfromfirstconsolidationofkununuUS in amount of € 1.3m

** Positive onetime effectdue toreleaseofearn-out-provisionsof€0.8m

*** Negative one time effect due to change of earn-out-provisions of € (0.2m) Rounding differences possible

Increasing margins in B2B; Investments in future growth impact margins in B2C

	Se t g m en E B I T D A	Q 2 1 9 in Ma g r	Q 2 1 8 in Ma g r	Co t m m en
B 2 C	€ 7. 5m	% 2 9	% 4 4	in Inv tm ts es en du ts ne w p ro c
i in B 2 B E- Re t g cr u	€ 2 2. 7m	% 6 6	% 6 4
in io ke lu B 2 B Ma So & Ev t t ts g r ns en	€ 2. 0m	% 3 5	% 2 5
io ku l In te t nu nu rn a na	( ) € 0. 5m	/ N A	/ N A
ice h, l he Te Ce Se & O tra t c n rv s r	( ) € 9. 8m	/ N A	/ N A
l To ta E B I T D A	€ 2 2. 0m	% 3 4	% 3 3

• •B2C investmentsdrivealso monetizationbasis for B2B
• •B2B margins reflecting "by-product economics"

Q2 2019: B2B segments driving topline growth

Q2 2019: Cost development before capitalization

* Other expenses negatively impacted by € 2.9m related to the conclusion of a new office lease contract

•

•

•

Q2 2019: Strong operating cash flow of € 16.4m

	Q 2 2 0 9 1	Q 2 2 0 8 1	Q 2 2 0 9 1 Q 2 2 0 1 8 vs	Q 2 0 9 1 1	Q 2 2 0 9 1 Q 1 2 0 1 9 vs
	bs A	bs A	bs A	bs A	bs A
E B I T D A	2 2. 0	1 8. 6	3. 3	1 7. 7	4. 3
/ / he In te t ta t re s x o r	( ) 2. 5	( ) 2. 2	( ) 0. 3	( ) 2. 3	( ) 0. 2
in in i ha k l C t w ta g g n e n e or ca p	( ) 1. 7	0. 4	( ) 2. 1	1 7. 1	( ) 1 8. 9
h ha fro ha No g g n- ca s c n es m c n es in is i io ba f c l da t s o on so n	( ) 1. 4	0. 0	( ) 4 1.	( ) 3. 8	2. 4
in is h f l l. h O t g g p er a c a s ow ex c or a n er c a s	1 6. 4	1 6. 8	( ) 0. 5	2 8. 8	( ) 1 2. 4
in Inv tm t – t g es en op er a	( ) 9. 1	( ) 9. 6	0. 5	( ) 8. 0	( ) 1. 2
is i io j in & Inv tm t – t t v tu es en ac q u ns o en re	( ) 2 2. 5	( ) 4. 6	( ) 1 7. 9	( ) 2. 5	( ) 2 0. 0
in ia f l a Inv tm t – ts es en an c ss e	0. 0	0. 0	0. 0	0. 0	0. 0
i i ia i i ies d, d f f. lea l b l & In te ts F X te t re s p a ra se	( ) 1. 3	( ) 0. 7	( ) 0. 7	( ) 1. 2	( ) 0. 1
iv i is h- f l l. d d d h C & g a s ow ex c e n s or a n er c a s	( ) 1 6. 6	1. 6	( ) 8. 2 1	1 7. 1	( ) 3 3. 7
la d iv i de d Re g u r n	( ) 1 2. 0	( ) 9. 4	( ) 2. 6	0. 0	( ) 1 2. 0
ia iv i l d de d Sp ec n	( ) 2 0. 0	0. 0	( ) 2 0. 0	0. 0	( ) 2 0. 0
ise h- f low l. o h Ca rg s ex c an r c as	( ) 4 8. 7	( ) 8 7.	( ) 4 0. 8	1 7. 1	( ) 6 8 5.
f fe ise h E ts g c o r an r c as	( ) 1. 0	( ) 0. 5	( ) 0. 5	2. 8	( ) 3. 8
in is h- f l l. h C g a s ow c or a n er c a s	( ) 4 9. 7	( ) 8. 3	( ) 4 1. 3	1 9. 9	( ) 6 9. 5

Investments acquisitions: € 20.3m Honeypot; € 2.2m InterNations

Thank you for your attention.

www.xing.com

Negative invested capital from shareholders' perspective

Consensus, investor information & contact details

New Work SE IR stats

l le d by Co te I R ns en su s c o c	2 0 1 9 e	2 0 2 0e	2 0 2 1e
ice Se rv re ve nu es	2 7 8. 0	3 1 5. 0	3 4 9. 0
E B I T D A	8 7. 7	1 0 4. 6	1 2 1. 2
in Ma g r	% 3 2	% 3 3	% 3 5
D & A	( ) 3 0. 5	( ) 3 4. 1	( ) 3 7. 6
E B I T	5 7. 2	7 0. 6	8 3. 6
in Ma g r	2 % 1	2 2 %	2 4 %
in Ne t co m e	3 7. 9	4 7. 9	5 5. 7
in E P S €	6. 8 0	8. 0 5	9. 8 4
in S D P €	2. 6 5	3. 1 1	3. 8 5
ly An t c g a s ov er a e	be ba k, Be Co rg ren mm erz n , äu he k, k f h De uts Ba Ha & Au c n uc se r, bu it ies M M Wa Pa Se ret rg, r o cu r
ha S re s			5, 6 2 0, 4 3 5

( ) i i da l b Bu D Gm H D E ta g r	% 5 0. 2 6
( ) im he Op U S p en er	% 5. 0 4
h dv iso W tc A as a rs	% 3. 0 2

Numbers based on last filing – actual shareholdings can differ

Rest

41.68 %

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

E-mail: patrick.moeller@XING.com

/ / / i i h X I N G_ t t t t t p e r. c o m r w :
/ / i / h l d h l l t t t t p w w w s e s a r e. n e p a m o e e r :
/ / / h b G t t t X I N p w w w y o u u e. c o m c o m :
/ / h b l X I N G. t t g. p o c o m :
k i k l l d d ? t s y p e p a r c m o e e r a :