New Work SE

Investor Presentation • Mar 21, 2024

NEW WORK SE FY 23 earnings presentation

Feb 27, 2024

Disclaimer

This presentation was produced in Feb 2024 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 December 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.

FY 2023:

Updated revenue and Pro-forma EBITDA targets achieved

306m	Pro-forma service revenues	219m	Pro-forma service revenues in HR Solutions & Talent Access segment
97m	Pro-forma EBITDA	14.3k	B2B HR Solutions customers
32%	Pro-forma EBITDA margin	+2.3m	Workplace Insights @kununu
39m	Pro-forma net income	+0.6m	New XING profile / CV registrations

2023: Financial KPIs flat or down YOY on back of weak macro

HR Solutions XING kununu

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

HR Solutions contributes 72% of NW SE group sales Employer branding based on kununu growing double-digit and accounts for more than 1/3 of segment revenues with over proportional segment EBITDA contribution

Passive Sourcing: Job ads down given weak macro XING | New XING 'jobs network' will provide a better job seeker experience, empowering everyone to choose the job that's just right

HR Solutions XING kununu

HR Solutions XING kununu

XING | How XING's repositioned jobs-network ensures to drive number, quality, and recency of profiles to drive B2B monetization

Strategic Edge Differentiated positioning Ongoing CV-base recency ensured Hard to copy for competitors

Levers to drive CV quality recency
Job recommendations	Value-based user incentive
Job applications	Automated CV updates
Salary benchmarks	More interaction / log ins
CV editor relaunch	More well-described CVs
Recruiter-visibility	Retained self-actualization
Preferences unfenced	Improved profile quality
Network updates	Retained self-actualization
Marketing	Higher jobseeker traffic

User Value-Adds

• My profile allows me to leverage my job network for open roles & peer-to-peer recommendations
• My profile allows me to receive job recos that match my individual preferences and possibilities
• My profile allows me to get relevant offers from recruiters which I would otherwise not

HR Solutions XING kununu

XING | Good progress across strategic KPIs

XING's repositioning towards 'jobs network' running successfully!

XING | branding campaign driving perception shift from social network to jobs-network

XING branding campaign

Baller League Sponsoring

HR Solutions XING kununu

kununu | Focused investments in new HR products and improved user experience through leveraging AI for kununu consumers

Kununu	Let's make work better.	Login & Arbeitgeber bewerten
	Arbeitgeber finden Gehaltscheck Jobs Bara News News Uber kununu Für Arbeitgeber Jobs suchen, Arbeitgeber finden
	� Arbeitsort eingeben Q Jobtitell, Skill oder Arbeitg Jobs finden
Filtern	133.060 Jobs
kununu Score (1) 4-5 ★ Sehr gut (92.656) 3-4 ★ Out (49.846) 2-3 實 Defrie 1-2 ★ Genüg Beschäftigungs	Facharbeiter Innenausbau & Haustechnik (m/w/d) Wohninvest GmbH · Vor 7 Tagen Q Forchheim Deutsche Bahn AG Enterprise Architect:in ICE-IT	Veröffentlicht am 2023-09-08
Vollzeit (126 Teilzeit (3.05 673eec22-5b67-41bc-9335-917ce8	Frankfurt am Main Vollzeit Transport/Verkehr/Logistik Was kununu User:innen über diesen Arbeitgeber sagen	B Zur Arbeitgeber-Website Geschätztes Gehalt
	Mitarbeiter:innen- Kulturfaktoren Benefits Zufriedenheit ✔ Kollegen helfen Betriebliche e Altersvorsorge 3.8 * Sich kollegial verhalten 66% kununu Score Für sein Team arbeiten Rabatte 527 59% 73% = Weiteremplehlung	Zu diesem Beruf haben wir derzeit leider keine Daten. Arbeitest du als Enterprise IT Architect? Teille dein Gehalt mit uns - natürlich anonym - und trage zur Gehaltstransparenz bei! Gehalt vergleichen
	Mohr Finhlicka
	Was die Firma über den Job sagt
	Wenn es darum geht, zuküntig Millionen Fahrgäste und digital auf den Weg zu bringen, braucht es die besten IT-Expert innen. 8.000 haben wir schon, aber längs nicht genug. Als Projektein oder 1T-Architektin ist jetzt die spannendste Zelt einzusteigen und in einen starken Team wegweisende Lösungen und Großprojekte in den Bereichen Mobiltät, Infrastruktur und Logistik umzusetzen. Sei aktive: Treiber:in und Begleiter in der Verländerung und gestate - geneinsam mit einem schlagkriffigen Projektean - die Zukunft des Ferryerkehrs in Deutschland mit! Mit dir nichten wir Bewährtes neu dene Wege gehen! Unsere Züge sind rollende Rechenzentren, unsere Software betreiben wir in der Cloud und unsere Werke und werschiedensten Netzwerktechnologien ausgerüstett. Für dieses komplexe und heterogene Umfeld brauchen wir dich als Enterprise Architect:in (w/m/d). Deine Aufgaben: · In Tandem verantwortes und erstellisektur der informationsysteme unsorer zukünftigen Hochgechwindigkeitszüge (HOV 3.0 der DB Fernverkehr AG · Als erfahrene:r Architekt:in legst du den Fokus auf das Business sowie die Integration aller Zugsysteme · Während des Beschaffungsprozeses unterstützt du den Fahrzeugeinkauf mit deiner Expertise, u.a. mit der Ersteilung von Lastenheften · An strategischen Architektur-Fragestellungen bist du maßgeblich beteiligt

Job ads @kununu AI Summarizer @kununu Top company seal @kununu

HR Solutions XING kununu

+

kununu | kununu ending 2023 on an all-time-high setting another record year

Undisputed Leadership

Fundamental B2C Need

>70%

of jobseekers inform themselves about employers on review platforms¹

kununu Glassdoor 30m 5m

6x

in average monthly unique visitors of kununu vs. second biggest competitor²

²SOURCE: SimilarWeb (2022 vs 2023, DE)

= Unparalleled growth

>350k Employer profiles +14% YoY

>10m Workplace insights +28% YoY

³SOURCE: google analytics

¹SOURCE: University Innsbruck, WU Wien, IFC FH Krems & Trendence, 2022

In 2024, we will double down on strategy execution by restructuring and transforming the organization while improving cost structure

Core Strategic Measures in 2024 NWSE Winning Aspiration

• Full focus on proven core brands XING & kununu

transition from 'B2C only' to fully-fledged marketplaces, including decisive marketing-investments to further strengthen positionings

• Wind-down of other activities & investments discontinuation of new investments into onlyfy brand development and Honeypot standalone brand

• Reorganization of org structure from top to bottom

re-org and reduction of exec board & workforce by ~400 FTEs to eliminate redundancies and increase efficacy

• Streamlining towards operational efficiency improved strategic and operative steering & processes, new setup for product & tech, increased focus on eCommerce

Become recruiting partner #1 by winning talents

Results FY 2023

• Revenues of € 305.6m
• We keep growing our talent access through XING and kununu
• Pro-forma EBITDA at € 97.1m
• Regular dividend recommendation of 1€ per share as announced on Jan 11

2023 P&L: € 305.6M revenues and € 92.9M EBITDA

	2023		2022		2023 vs. 2022	2023 vs. 2022
	Abs.		Abs.		Rel.	Abs.
Service revenues	305.6		313.4		(2%)	(7.8)
Other operating income	4.1		3.0		+36%	1.1
Capitalized own work	24.1		20.7		+16%	3.3
Costs before capitalization	(240.8)	(236.7)	(233.0)		(3%)	(7.9)
EBITDA	92.9	97.1	104.1		(11%)	(11.2)
Margin	30%	32%	33%		(3%pts)	(3%pts)
D&A	(44.1)		(37.9)		(16%)	(6.1)
Financial result	2.2	0.9	(2.8)	(1.1)	179%	5.0
Taxes	(14.2)	(15.1)	(17.3)	(17.9)	18%	3.1
Net income	36.9	38.8	46.1	47.3	(20%)	(9.2)
EPS	6.56	6.90	8.20	8.41	(20%)	(1.64)

Pro-forma

Rounding differences possible

Segment EBITDA: HR Solutions & Talent Access down given deliberate investments

	Segment EBITDA 2023	2023 Margin	Segment 2022	2022 Margin
HR Solutions & Talent Access	57.6	26%	62.9 30%
B2C	39.3	54%	50.0	56%
B2B Marketing Solutions	1.9	14%	3.1	19%
Tech, Central Services & Other	(6.0)	(11.8)
Total EBITDA	92.9	30%	104.1	33%

2023 service revenues: HR Solutions growing despite bad macro situation; B2C down given focus on Talent Access and B2B monetization

Rounding differences possible

2023: Free cash flow (before dividends) of € 36.0m

	2023	2022	2023 vs. 2022	2023 vs. 2022
	Abs.	Abs.	Rel.	Abs.
EBITDA from continued operations	92.9	104.1	(11%)	(11.1)
Interest / tax / other	(24.7)	(19.6)	(26%)	(5.1)
Change in net working capital	(6.5)	(4.0)	(61%)	(2.5)
Discontinued operations	(0.1)	(1.4)	107%	1.5
Operating cash flow excl. organizer cash	61.9	79.2	(22%)	(17.3)
Investment – operating	(28.7)	(28.4)	(1%)	(0.3)
Investment – financial assets	12.2	(0.4)		12.5
Lease liabilities, FX rate diff. & rest	(9.3)	(5.7)	(63%)	(3.6)
Discontinued operations	(0.1)	(0.6)	(87%)	0.6
Cash flow before dividends	36.0	44.1	(18%)	(8.0)
Regular dividend	(17.8)	(15.7)	(13%)	(2.0)
Special dividend	(20.0)	(20.0)	0%	0.0
Cash flow	(1.7)	8.3		(10.1)

Rounding differences possible

Q4 results 2023

Q4 23: Revenues of € 75.7; Pro-forma EBITDA of € 28.1m

	Q4 2023		Q4 2022		Q4 23 vs. Q4 22	Q3 2023		Q4 23 vs.Q3 23
	Abs.		Abs.		Rel.	Abs.		Rel.
Service revenues	78.2		82.1		(5%)	75.7		3%
Other operating income	1.2		0.5		164%	0.7		64%
Capitalized own work	4.5		5.4		(17%)	5.8		(23%)
Costs before capitalization	(56.3)	(55.8)	(64.4)		13%	(55.5)	(54.1)	(1%)
EBITDA	27.6	28.1	23.5		17%	26.7	28.1	3%
Margin	35%	36%	29%		7%pts	35%	37%	(0%pt)
D&A	(19.6)		(13.3)		(47%)	(8.1)		(141%)
Financial result	0.9	0.5	0.3	(0.3)	198%	0.4	0.2	133%
Taxes	(2.6)	(2.7)	(2.2)	(2.0)	(20%)	(5.4)	(5.8)	52%
Net income	6.3	6.4	8.4	8.0	(25%)	13.5	14.3	(53%)
EPS	1.12	1.14	1.49	1.42	(25%)	2.40	2.54	(53%)

Pro-forma

Rounding differences possible

Q4 23 service revenues: HR Solutions & talent Access segment on previous years level – accounting for >70 % of total group sales

Dividend | We will recommend a regular dividend of 1€ per share

Recap from January 11, 2024:

-

-

-

We will propose a regular dividend of 1 € per share

Guidance 2024 | Pro-forma EBITDA of € 55-65m

Recap from January 11, 2024:

We confirm our pro-forma EBITDA guidance from January 2024

Thank you for your attention.

Investor relations Contact details

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: patrick.moeller@new-work.se

https://www.new-work.se/en/investor-relations

ESG topics

https://www.new-work.se/en/Company-About-New-Work-SE/csr

ESG @ NEW WORK SE

ESG @ New WORK SE Our strategic action areas and material topics

Employees Products

• Occupational health and safety
• Human resources development
• Diversity and equal opportunities

• Product development and promise
• Information security
• Personal rights and informational selfdetermination

Environment Society

• Energy and emissions
• Environmental impacts in the supply chain

Foundation: Governance

The review of our materiality analysis revealed that respecting human rights and fighting corruption and bribery are not material topics for New Work SE under the CSR-RUG. That's why we are not reporting any plans pertaining to these issues under the German Commercial Code.

²Not identified as a material topic in the materiality analysis; due to its high strategic relevance for New Work SE, this topic's relevance was upgraded and the topic was included in the CSR roadmap.

ESG @ New WORK SE Our goals for 2025 at a glance

Recommendation rate

≥ 80% kununu overall score ≥ 4.0 on average for the year

Maintain the quality

of content in our offers supporting the physical and mental health of employees

Internal recommendation rate for our seminars and training courses

≥ 60%

Equal opportunity & diversity

are very important to us as an employer. We aim to achieve an annual average kununu score of ≥ 4 by 2025.

Annual 180°

feedback

to strengthen and enhance leadership skills

Products and Services Employees Society

≥ 50%

Tested

systems

security to protect our

of the job ads on XING will be integrated into the kununu Culture Score.

kununu Workplace Insights ≥ 9.6 million

the 2021 number of 4.8 million is expected to more than double by 2025

Planning of at least

2 internal

audits/year

to be carried out from 2025 Contents: company technologies and practices that impact user data

Develop a method to measure and strengthen our

personal and social added value

Environment

Climate-neutral operation of

100%

of all data centers and cloud services from 2025

Climate neutrality¹

Long-term: define net zero target

¹Climate neutrality means that when carbon emissions cannot be avoided by a company these are offset by high-quality carbon reduction certificates (certified climate change mitigation projects).

28 New Work SE FY 23 Preliminary Results