New Work SE — M&A Activity 2019

Apr 1, 2019

Acquisition of ^"o" Honeypot

Conference Call April 1, 2019

M&A Update Call: Acquisition of Honeypot.io

• Tech talent most desirable target group for employers
• Increasing demand for IT specialists is not to be met in medium-term
• We invest in "tech-recruiting" thus strengthening B2C and B2B side
• We continue to execute along our long-term strategy
• Honeypot: Leading career development platform focusing on tech candidates
• Consolidation starts April 1, 2019 economically effective date is Jan 1, 2019
• Updated revenue & EBITDA targets for 2019 & 2020

"Tech" is the most desirable recruiting vertical and the market for hiring tech talents currently facing a structural shift

¹ Eurostat, StackOverflow, Bitkom ² Jobvite Recruiter Nation report

Investing in "tech recruiting" is a compelling growth opportunity for XING as it adds value to our C- and B-side mission

A strategic investment in tech recruiting...

• XING is the most known (87%) and most used (53%) channel for job search in D-A-CH for tech professionals
• XING today has ~400.000 profiles with above average engagement metrics
• 83% of tech professionals consider a "reversed marketplace" model extremely attractive

• 75% would prefer such a model over searching on XING or LinkedIn

• Fech recruiting (for top talent) is a proven international playing field

• IMAGES 2007 XING is committed to invest into business models that are not dependent on the core XING platform, but will benefit from its existence - and related B2B businesses
• Winning the European market is significantly more likely with a strong D-A-CH position

Tech sourcing is undoubted the biggest single pain point for recruiters due to the structural supply/demand gap

Honeypot, a leading career development platform focusing on technical candidates - www.honeypot.io

Vision

• B2C: "Get job offers from Europe's best tech companies"
• B2B: "Hire the best developers from around the globe"

Organization & Management

• · Founded in 2015 by Kaya Taner & Emma Tracey
• HO in Berlin
• · 50 employees

Metrics 2019e

• · ~1.500 B2B customers (03/19)
• · ~100.000 tech talents (03/19)
• $\cdot$ ~€5-6 m revenue
• $\cdot$ ~ $\epsilon$ 5 m EBITDA

Candidate-led recruitment: Jobs come to candidates

Closed Marketplace: All candidates do a technical review (only 10% pass the test)

Reverse Recruitment:

Companies apply to candidates (not the other way around)

Active Candidates: Candidates are only visible when really looking for a new job

Monetization: Honeypot charges 15-18% commission of first year salary - when candidate is hired

Strong strategic fit, investment mode in 2019/2020 Attractive long-term economics

Key structure of the deal

• Acquisition of 100% of the shares
• Purchase price:
• Initial payment of €22 m
• Maximum earn-out up to €35 m (until 2022)

Financial implications

• Most important player in D-A-CH, but still $\bullet$ early in development and investment mode
• Investments planned for growth in D-A-CH $\bullet$ and selected int. markets in 2019/2020
• Consolidation from April 1st, 2019
• Allocation in B2B E-Recruiting segment $\bullet$
• EBITDA impact in 2019/2020: €4-5 m $\bullet$
• Profitability expected from 2021 on with $\bullet$ attractive long-term economics

Outlook XING SE after Honeypot acquisition:

• 2019 group EBITDA of ~€84 m
• 2020 group EBITDA of ~€100 m

Thank you for your attention.

www.xing.com