NEW WORK SE Q3 23 earnings presentation

November 9, 2023

Disclaimer

This presentation was produced in November 2023 by NEW WORK 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 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 September 2023. 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.

Market environment – No recovery yet

BA-X Index

	2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2022		2023
	Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep
	134 132 129 127 127 127 126 125 123 122 119 119 116 115

Sources: Handelsblatt, ifo, IAB, BA-X

Executive summary Q3 23: Financial KPIs on track to meet guidance of €92-100m pro forma EBITDA

Pro-forma (4%) service revenues

+3%

Pro-forma service revenues in HR Solutions & Talent Access segment

Pro-forma +4% EBITDA

New workplace insights +2.1m @kununu yoy

Pro-forma (4%) net income

Relaunch of Oct 18 www.xing.com

Q3 2023: Financial KPIs down YOY on back of weak employment market

XING: Repositioning from social network to jobs-network started

		lobs posten? Geht hier.
		Finde den Job, der zu Dir passt.
	Q Job-Titel oder Stichwort	O Hamburg × 20 km	v Jobs finden
Kacper Potega	Jobs von Top-Arbeitgebern Mit hohem Gehalt oder guten kununu-Bewertungen:
80% Jobs finden	Bis 150% mohr Gehalt	Bit 300% mohr Gahalt <<>> 145 Parco	Bis 40% ropht Gehalt Willer
ದ Deine Jobs ్లో Dein Netzwerk	Vice President Corporate Development (m/w/d) Hamburg New Work SE	Partner (m/w/d) für internationale Wirtschafts- und Finanz -- München HAPEKO Hanseatisches Personalkont	Geschäftsführer m/w/d Offenburg Dr. Weick Executive Search GmbH 2 110,000 € - 140,000 € Vollzeit
டு Insights D Nachrichten	1 150.000 € - 250.000 € Vollzeit *44	or ↑ 150,000 € - 400,000 € Vollzeit . 63	* 4,4
)ರ Profil	Vor 6 Tagen Job merken	Vor 13 Tagen Job merken	Vor S Tagen Job morken
11 Job-Wunsche + Folgst Ou		Mehr anzeigen V
0 Deine Beiträge	Entdecke Jobs auf die smarte Art Lass Dich inspineren! Hier ein paar Jobs Jobs, die folgende Kriterien erfüllen:
ಳಿ Premium 19 Projobs werden	ﺮ ﻭ 2	0	ನ್ನಾ

0.7m new XING members yoy
140k new XING members in Q3
22m XING members 30. Sep 23
Oct 18: Launch of XING 3.0

XING: Focus on "Jobs" shows increased engagement and positive customer resonance for new XING positioning

* Career interactions include recruiter replies, candidate apply intents

kununu: Employer branding is the steadfast anchor

2.1m new workplace insights yoy
460k new workplace insights in Q3
9.8m workplace insights incl. 3.3m salary datapoints end of September
Relaunch kununu.com homepage

kununu: Clear market leader with significant increase in reach, audience & customer engagement

Strongest Q3 ever for total traffic with 15% above PY.

Google trends shows a continuous growth trajectory since acquisition of kununu back in 2013. We're on the path to become synonymous for workplace insights

Broad "insights" collection has increased platform breadth and coverage of employers – profiles base growing by 13% yoy.

Employer comments are a reinforcing relevancy initiated from the C-side Employer involvement is growing by 22% yoy.

HR solutions & talent access subscription customer base slightly down on back of negative employment market

Employer branding based on kununu growing 20% Active & Passive Sourcing: job ads & Talentmanager down single-digit percent given weak macro HR Solutions contributes 72% of NW SE group sales

Our current AI initiatives

Matchmaking & Recommender (similar jobs)

Summarization

of employer reviews Job-ad creation (screenshot) Smart templates Talent recommendations CV-parsing

Q3 results 2023

Revenues of € 75.7m
We keep growing our talent access through XING and kununu
Pro-forma EBITDA at € 28.1m
Confirming pro-forma EBITDA guidance of € 92-100m

Q3 23: Revenues of € 75.7; Pro-forma EBITDA of € 28.1m

	Q3 2023		Q3 2022		Q3 23 vs. Q3 22	Q2 2023		Q3 23 vs.Q2 23
	Abs.		Abs.	Rel.		Abs.		Rel.
Service revenues	75.7		78.7		(4%)	75.8		0%
Other operating income	0.7		1.0		(24%)	1.4		(47%)
Capitalized own work	5.8		5.5		7%	6.2		(7%)
Costs before capitalization	(55.5)	(54.1)	(58.1)		4%	(60.3)	(60.5)	8%
EBITDA	26.7	28.1	27.0		(1%)	23.1	22.9	15%
Margin	35%	37%	34%		1%pt	31%	30%	5%pt
D&A	(8.1)		(7.1)		(14%)	(9.2)		11%
Financial result	0.4	0.2	(1.1)	(0.2)	134%	0.5	0.2	(29%)
Taxes	(5.4)	(5.8)	(4.5)	(4.8)	(22%)	(4.5)	(4.3)	(21%)
Net income	13.5	14.3	14.3	15.0	(6%)	10.0	9.7	34%
EPS	2.40	2.54	2.55	2.66	(6%)	1.78	1.72	34%

Pro-forma

Rounding differences possible

Q3 23: Segment EBITDA (reported)

	Segment EBITDA Q3 23	Q3 23 Margin	Segment EBITDA Q3 22	Q3 22 Margin	Delta Comment
HR Solutions & Talent Access	17.5	32%	16.3	31%	Continued investments in talent access and repositioning of XING
B2C	10.0	55%	12.6	57%	Expected decline given focus on B2B monetization and talent access
B2B Marketing Solutions	0.7	24%	1.1	28%	Slowdown on back of general ad market weakness
Central & Other	(1.6)		(3.0)
Total EBITDA	26.7	35%	27.0	34%

Pro-forma

Rounding differences possible

Q3 23 service revenues: HR Solutions & talent Access segment growing 3% – accounting for 72 % of total group sales

Rounding differences possible

Q3 23: Cost development

17 New Work SE | Title (Edit by selecting "Insert > Header & Footer

** incl. € 1.4m restructuring costs

Q3 23: Operating cash flow of €7.1m

	Q3 23	Q3 22	Q3 23 vs. Q3 22	Q2 23	Q3 23 vs. Q2 23
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	26.7	26.5	0.2	23.1	3.6
Interest / tax / other	(6.0)	(9.0)	3.1	(2.5)	(3.5)
Change in net working capital	(13.6)	(0.8)	(12.9)	(3.9)	(9.7)
Operating cash flow	7.1	16.6	(9.6)	16.7	(9.6)
Investment – operating	(5.4)	(6.8)	1.4	(9.0)	3.6
Investment – acquisitions & joint venture	0.0	0.0	0.0	0.0	0.0
Investment – financial assets	12.2	0.0	12.2	0.0	12.2
Interests paid, lease liabilities, FX rate diff. & rest	(2.2)	(2.1)	(0.1)	(2.2)	0.0
Cash flow excl. dividends	11.7	7.7	4.0	5.5	6.2
Regular dividend	0.0	0.0	0.0	(17.8)	17.8
Special dividend	0.0	0.0	0.0	(20.0)	20.0
Cash flow	11.7	7.7	4.0	(32.3)	44.0