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New Work SE — Investor Presentation 2023
Jul 31, 2023
303_ip_2023-07-31_65ed4a01-6c7f-41dc-aa51-dbb3af728266.pdf
Investor Presentation
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NEW WORK SE INVESTOR PRESENTATION
WHO WE ARE
3 main brands w/ ~22 million members and kununu w/ >8 million
workplace insights
More than 1.700 employees, (FTE) thereof 800+ in the city of Hamburg
Further locations in Barcelona, Porto, Valencia, Vienna, Zürich, Berlin und Munich
1111111
$5 + 5 + 5 + 5 + 5$
FROM OPEN BC ... ... TO XING ...
... TO NEW WORK SE
Match-making recruiting marketplaces in D-A-CH
B2B-monetization ("SaaS") of B2C talent access
Huge B2B recruiting market: 5bn€ spend in D-A-CH
Strong right to play among pure "job boards"
"Pure play" professional social network in D-A-CH
B2C-monetization ("freemium")
Limited market potential with TAM of <100m€
Competitive pressure from global business social network
NWSE HAS STRONG ASSETS WHICH SERVE AS THE FUNDAMENT FOR FUTURE GROWTH
onlyfy by XING
HR solutions that help companies hire the right people by providing talent access
XINGX
The leading job-network in D-A-CH to find a job, get hired and receive career guidance
A platform that empowers people to choose the right place to work with workplace insights that matter.
Honeypot
A tech-focused job platform that turns job board principle on its head as companies apply to potential employees.
$>14k$ HR B2B customers (SaaS)
$\sim$ 22m members
300k company profiles & >9m workplace insights
200k registered software engineers
LONG-TERM MARKET TRENDS DRIVING TALENT SHORTAGE IN THE FUTURE
NEW WORK SE 8
MARKET ENVIRONMENT GOT WORSE - GERMANY NOW IN RECESSION EMPLOYMENT MARKET NEGATIVELY AFFECTED
ifo Geschäftsklima
2022
2023
2021
Sep 18
134
Beurteilung der Geschäftslage Geschäftserwartungen
2023
Mai 22
© ifo Institut
NEW
WORK
SE
CLEAR & STRAIGHT FORWARD STRATEGY
WE WILL... FURTHER EXPAND KUNUNU'S LEADING POSITION
STRENGTHS TODAY
First choice for talents looking for workplace insights, with every 2nd jobseeker visiting kununu
Highest number of user-generated, trustworthy company reviews: $> 5m$
kununu
4m unique insights beyond reviews,
with company salary & culture insights
Platform with singular positioning for employers' employer branding efforts
OUR AMBITION
DESTINATION IN D-A-CH TO FIND WORKPLACE INSIGHTS NEEDED TO TAKE DECISIONS
WE WILL... POSITION XING WITH CLEAR FOCUS ON JOBS & CAREER
STRENGTHS TODAY
Largest network/talent pool in D-A-CH: ~22m; strong growth: ~1m annually
Key role in last job change for ~30% of our B2C XING members*
Higher success in filling vacancies via 'TalentManager' over competition*
OUR AMBITION
DESTINATION IN D-A-CH TO FIND A JOB, GET HIRED AND RECEIVE CAREER GUIDANCE
1.4m jobs & >20k active recruiters; >300k employers on XING
* Source: NW SE Benchmarking study 2022
XINGX
NEW WORK SE
HOW TO BECOME #1 RECRUITING PARTNER IN D-A-CH? NEW PRODUCT + BRAND + ORG
STARTING POSITION
NEW B2B-SETUP
BRAND PORTFOLIO
Multiple brands across portfolio (e.g., XING, kununu, Prescreen), strong dependency on XING
NEW BRAND
Dedicated & differentiated B2B-brand
PRODUCT PORTFOLIO
Singular products (e.g., XTM, XTP, XJM, EBP, XRM, Prescreen), fragmented features, weak UX
NEW PRODUCT
Holistic suite & seamless user experience
NEW WORK SE
| SNipes | "onlyfy one makes our work easier in many ways [] and saves us an enormous amount of time and helps us to improve the candidate experience we provide." |
|---|---|
| ABOUT YOUo | "we find who we are really looking for. A real highlight, to us, is that we can get an overview of how we are doing at any time thanks to the recruiting insights" |
| SPICE | "it is easy to use, intuitive and very clearly structured, [] builds on our own recruiting processes, which makes our work immensely easier." |
| BEHGENA | "onlyfy Job Ads form the basis of our search for the right talents to be part of our mission []. Access to 21 million talents in the XING network offers us great added value here." |
| Stadt Goslar | "Employer Branding Profile gives us more reach to present ourselves as an attractive employer . Even qualified candidates outside of Goslar are now becoming aware of us." |
KEY FIN & NON FIN KPI'S & OUTLOOK
yoy
Job preferences
Define your job search as clearly as possible to receive better recommendations.
Visible to: Recruiters $\rightarrow$
Select your jobseeker status
- Actively looking for a job.
- $\odot$ Not looking for a job but open to offers.
- Not interested right now.
Your job preferences
| Job titles | What are your preferred job titles? | |
|---|---|---|
| Discipline | What's your preferred discipline? | |
| Cities | What are your preferred cities? |
XXING
- +0.9m new XING members yoy
- 140k new XING members in Q2
- Launch of "preferences" incl. marketing campaign
- New partnerships to address young audience #karriereguru #Staufenbiel Institut
Bertrandt Group Veröffentlicht am 02.08.2023 Ingenieur (m/w/d) im Fahrzeugbau bertrandt N Bewerben Hamburg Vollzeit Was kununu User:innen über diesen Arbeitgeber Geschätztes Gehalt Kulturfaktoren Benefits Mitarbeiter:inner Das könntest du laut kununu User: innen als Ingenieur Zufriedenheit Fahrzeugtechnik in Deutschland verdienen Flexible Arbeitszeiten ← Kollegen helfer 64% $3.4 + + + +$ ✓ Kundenorientiert handeln kununu Score $P$ Parkplatz Ø 57.500€ $\checkmark$ Sich kollegial verhalter Bruttodurchschnittsgehalt Vollzeit $69%$ Weiterempfehlung 33,900 $\epsilon$ $97500E$ Mehr Einblicke $>2m$ yoy
New "Preferences" section
kununu
- Strongest growing growth in history $w/$ >2m workplace insights yoy
- Launch of "kununu jobs" through onlyfy-platform
- >500k new workplace insights in Q2
- 9.3m workplace insights incl. 3.1m salary datapoints
HR SOLUTIONS & TALENT ACCESS SUBSCRIPTION CUSTOMER BASE STABLE ON BACK OF NEGATIVE EMPLOYMENT MARKET
- HR Solutions contributes 70% of NW SE group sales ٠
-
Employer branding continues to growth double-digit л
-
Passive Sourcing: transactional (job ads) down significantly
- Onlyfy one (ATS) up double-digit ×.
We have a clear goal $-$ to develop NWSE towards the #1 recruiting partner for HR in D-A-CH by winning talent
WRAP-UP
$\overline{2}$
$\overline{3}$
Recruiting is a huge market with >5bn€ in size - and strong growth prospects driven by structural mega trends
With strong assets on C- & B-Side, we are in a promising position to grow and we defined clear initiatives for it
FOR 2023, WE EXPECT A REVENUE ON PREVIOUS YEAR'S LEVEL (PREVIOUSLY: "SINGLE DIGIT PERCENTAGE GROWTH") AND A PRO-FORMA EBITDA OF € 92-100M (PREVIOUSLY: € 108-111M) AS WE WILL CONTINUE TO INVEST IN TALENT ACCESS (KUNUNU & XING) AND ONLYFY THROUGHOUT 2023 DESPITE SHORT-TERM MARKET HEADWINDS
Q2 RESULTS 2023
Q2 23: REVENUES OF € 75.8; PRO-FORMA EBITDA OF € 22.9M*
| Pro-forma | Q2 2023 | Q2 2022 | Q2 23 vs. Q2 22 |
Q1 2023** | Q2 23 vs. Q1 23 |
|
|---|---|---|---|---|---|---|
| Abs. | Abs. | Rel. | Abs. | Rel. | ||
| Service revenues | 75.8 | 78.0 | (3%) | 75.9 | 0% | |
| Other operating income | 1.4 | 0.7 | 97% | 0.7 | 87% | |
| Capitalized own work | 6.2 | 4.7 | 34% | 7.5 | (17%) | |
| Costs before capitalization | (60.3) | (60.5) | (55.6) | (8%) | $(68.7)$ $(66.3)$ | 12% |
| EBITDA | 23.1 | 22.9 | 27.8 | (17%) | 17.9 15.5 |
49% |
| Margin | 31% | 30% | 36% | (5%pts) | 20% 24% |
10%pts |
| D&A | (9.2) | (9.9) | 8% | (7.2) | (27%) | |
| Financial result | 0.5 | 0.2 | (0.9) | (0.3) 158% |
0.0 0.4 |
39% |
| Taxes | (4.5) | (4.3) | (5.7) | (5.9) 22% |
(1.6) (2.3) |
(173%) |
| Net income | 10.0 | 9.7 | 11.2 | (11%) 11.7 |
7.0 8.4 |
43% |
| EPS | 1.78 | 1.72 | 2.00 | (11%) 2.08 |
1.25 1.50 |
43% |
* Continued operations
** Q1 pro-forma retroactively adjusted
Rounding differences possible
Q2 23 REPORTED SEGMENT EBITDA
| Segment EBITDA Q2 23 |
Q2 23 Margin |
Segment EBITDA Q2 22 |
Q2 22 Margin |
Delta Comment |
|
|---|---|---|---|---|---|
| HR Solutions & Talent Access | 13.6 | 25% | 16.2 | 32% | • Continued investments in talent access and repositioning |
| B 2 C | 10.9 | 58% | 13.3 | 59% | • Expected decline given focus on B2B monetization and talent access |
| B2B Marketing Solutions | 0.0 | 0% | 0.5 | 10% | |
| Central & Other | (1.3) | (2.2) | |||
| Total EBITDA | 23.1 | 31% | 27.8 | 36% | Rounding differences possible |
Q2 23 SERVICE REVENUES: HR SOLUTIONS & TALENT ACCESS SEGMENT GROWING 6% - ACCOUNTING FOR 70 % OF TOTAL GROUP SALES
HR Solutions & Talent Access B2C B2B Marketing Solutions
Q2 23 COST DEVELOPMENT
| Q2 23 | Q2 22 | Q2 23 vs. Q2 22 |
Q1 23 | Q2 23 vs. Q1 23 |
|
|---|---|---|---|---|---|
| Abs. | Abs. | Abs. | Abs. | Abs. | |
| EBITDA from continued operations | 23.1 | 27.8 | (4.7) | 15.5 | 7.6 |
| Interest / tax / other | (2.5) | (3.5) | 1.1 | (3.5) | 1.0 |
| Change in net working capital | (3.6) | (9.7) | 6.1 | 21.7 | (25.3) |
| $\blacktriangle$ from discontinued operations | $-0.4$ | $-0.2$ | $-0.3$ | 0.2 | (0.6) |
| Operating cash flow | 16.7 | 14.4 | 2.2 | 33.9 | (17.2) |
| Investment $-$ operating | (9.0) | (5.5) | (3.5) | (9.0) | 0.0 |
| Investment $-$ acquisitions & joint venture | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Investment - financial assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Interests paid, lease liabilities, FX rate diff. & rest | (2.2) | (2.4) | 0.2 | (2.5) | 0.3 |
| $\blacktriangle$ from discontinued operations | 0.0 | $-0.2$ | $+0.2$ | (0.1) | 0.1 |
| Cash flow excl. dividends | 5.5 | 6.3 | (0.9) | 22.3 | (16.8) |
| Regular dividend | (17.8) | (15.7) | (2.0) | 0.0 | (17.8) |
| Special dividend | (20.0) | (20.0) | 0.0 | 0.0 | (20.0) |
| Cash flow | (32.3) | (29.4) | (2.9) | 22.3 | (54.6) |
RESULTS FY 2022
| Pro-forma | 2022 | 2021 | 2022 vs. 2021 |
2022 vs. 2021 |
|---|---|---|---|---|
| Abs. | Abs. | Rel. | Abs. | |
| Service revenues | 313.4 | 284.5 | 10% | 28.9 |
| Other operating income | 3.0 | 1.4 | 110% | 1.6 |
| Capitalised own work | 20.7 | 21.7 | (5%) | (1.0) |
| Costs before capitalisation | (233.0) | (209.8) | (11%) | (23.2) |
| EBITDA | 104.1 | 97.9 | 6% | 6.2 |
| Margin | 33% | 34% | (1%pt) | |
| D&A | (37.9) | (40.0) | 5% | 2.0 |
| Financial result | (2.8) (1.1) |
(0.8) (0.4) |
(585%) | (2.4) |
| Taxes | (17.3) (17.9) |
(14.2) (14.1) |
(22%) | (3.1) |
| Net income | 47.3 46.1 |
43.3 43.0 |
6% | 2.8 |
| EPS | 8.41 8.20 |
7.71 7.66 |
6% | 0.5 |
| Segment EBITDA 2022 |
2022 Margin |
Segment EBITDA 2021 * |
2021 Margin * |
|
|---|---|---|---|---|
| B2B E-Recruiting | 140.2 | 68% | 114.4 | 67% |
| B 2 C | 20.6 | 23% | 35.4 | 36% |
| B2B Marketing Solutions | 9.5 | 58% | 11.3 | 68% |
| Tech, Central Services & Other | (66.2) | (63.2) | ||
| Total EBITDA | 104.1 | 33% | 97.9 | 34% |
| 2022 | 2021 | 2022 vs. 2021 |
2022 vs. 2021 |
|
|---|---|---|---|---|
| Abs. | Abs. | Rel. | Abs. | |
| EBITDA | 104.1 | 97.9 | 6% | 6.2 |
| Interest / tax / other | (19.6) | (19.0) | (3%) | (0.5) |
| Change in net working capital | (4.0) | 6.7 | (10.7) | |
| ▲ Discontinued operations | (1.4) | 0.0 | (1.4) | |
| Operating cash flow excl. organiser cash | 79.2 | 85.6 | (8%) | (6.4) |
| Investment - operating | (28.4) | (41.2) | 31% | 12.8 |
| Investment – acquisitions $\&$ joint venture | 0.0 | (2.1) | 2.1 | |
| Investment - financial assets | (0.4) | 0.0 | (0.4) | |
| Interests paid, lease liabilities, FX rate diff. & rest | (5.7) | (0.5) | (5.2) | |
| ▲ Discontinued operations | (0.6) | (2.3) | 72% | 1.7 |
| Cash flow before dividends | 44.1 | 39.5 | 12% | 4.6 |
| Regular dividend | (15.7) | (14.6) | (8%) | (1.2) |
| Special dividend | (20.0) | 0.0 | (20.0) | |
| Cash flow incl. organiser cash | 8.3 | 25.0 | (67%) | (16.6) |
| Segment reporting FY 2022 Today |
From Jan 1, 2023 2022 based on future segment reporting |
||||
|---|---|---|---|---|---|
- ▪
- ▪
HOW WE MONETIZE
B2C
Premium
■ 3-12m @ $€$ 7.95 - 9.95 p.m.
ProJobs
■ 3-12m @ $€$ 19.95-29.95 p.m.
InterNations (EXPAT network) Albatross membership
■ 3-12m @ $\in$ 5.95 - 8.95 p.m.
B2B E-Recruiting
onlyfy one
- 1 50 job slots: € 1,799 29,999
-
50 Job slots: Individual pricing
onlyfy job ads
■ Fixed price job ads: $€ 699 - 1,399$
onlyfy TalentManager
■ TalentManager (oTM): $€ 4,390 - 8,190 p.a.$
onlyfy TalentService
- Talentlist Pro: $€ 6,490 -12,990$
- Talentlist Core: $€$ 2,990
onlyfy Employer branding Profil
- 1 1,000 employees: $€$ 4,890 14,290 p.a.
-
1,000 employees: Individual pricing
onlyfy 360°
• Individual pricing
Honeypot
From $\epsilon$ 200 & 15% success fee up to 4,500 p.a. flat fee
B2B Marketing Solutions
Marketing Solutions
- Native & Video (CPC & CPM)
- Content Ads
- Sponsored Mailings
- Audience Network
ESG @ NEW WORK SE
INVESTOR RELATIONS CONTACT DETAILS & SOCIAL MEDIA CHANNELS
Patrick Moeller
VP Investor Relations
NEW WORK SE Am Strandkai 1 20457 Hamburg Germany
Tel.: +49 (0)40 419 131-793 Fax.: +49 (0)40 419 131-44
E-mail: [email protected]
http://twitter.com/NEW_WORK_SE_IR
https://nwx.new-work.se/
ESG topics https://www.new-work.se/en/Company-About-New-Work-SE/csr