XING AG Q3/2013 conference call presentation

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XING – #1 Professional Social Network In German Speaking Europe Q3 results November 6, 2013

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Transcript of XING AG Q3/2013 conference call presentation

Page 1: XING AG Q3/2013 conference call presentation

XING – #1 Professional Social Network In German Speaking Europe Q3 results

November 6, 2013

Page 2: XING AG Q3/2013 conference call presentation

Executive Summary

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Continuing accelerating of top-line growth

2 major product launches

New XING Talentmanager (XTM 2.0)

The New Premium

Strongest member growth

in the last 18 months

Well on track to meet full year objectives

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196 184 205 211 214

June '12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Sep '13

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Strongest member growth during last 18 months Lot of scope still available for further growth in D-A-CH

Mobile traffic growing nicely. 38% of total traffic is mobile already.

Member base [millions] & net adds [thousands]

5.28

6.72

Addressable market

in D-A-CH

~20m

Rounding differences are possible

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Paying subscriber base growing

413

315

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June '12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Sep '13 Worldwide

Paying member base & net adds in D-A-CH

[thousands]

767

829

New pricing effective since June 2013

3-month membership: €9.95 p.m. (+€2)

12-month membership: €7.95 p.m. (+€1)

805

Rounding differences are possible

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Top-line growth acceleration continues in Q3/13

18.3

21.6

Q3/12 Q3/13

Revenues in €m

EBITDA

in €m

Operating cash flow

in €m

5.5 6.2

Q3/12 Q3/13

4.7 4.4

Q3/12 Q3/13

12% (7%) 18% (Q2:15%)

(Q1:11%)

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Introduction of XTM 2.0

New frontend & new features - launched Sep 2013

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Introduction of XTM 2.0 Showcase with Deutsche Telekom AG

„We can no longer imagine working without the XTM. I would‘t want to stop using it.

And in particularly in the German speaking countries you just can‘t ignore XING.“

Marc Stefan Brodbeck Vice President Recruiting & Talent Acquisition Deutsche Telekom AG

DTAG is using XTM since launch in September 2012

XTM creates value

Time to hire down by >70%

Cost per hire down by >80%

Page 8: XING AG Q3/2013 conference call presentation

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Launch of “Das Neue Premium” Strong communication of online benefits

Premium HUB Profile Visitors (Statistics) Offline Benefits

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Launch of “Das Neue Premium” First new Offline-benefits have been rolled out in Q4

Content/News

Mobility

THE NEW

PREMIUM

Support Services

Sports Conven-ience/

Enjoyment

Education

Partner Offers

Free Office Space at „Design

Office“ locations

Free access too all books on

Blinkist (12 months)

More to come during Q4/13 & Q1/14

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Launch of “Das Neue Premium” >80% positive customer feedback

6%

5%

12%

33%

44%

5 = don't like it at all

4

3

2

1 = like it very much

>80% positive

survey feedback

based on 1,000 responses

How do you like the New Premium?

Page 11: XING AG Q3/2013 conference call presentation

Q3/2013 figures

The professional network www.xing.com

Page 12: XING AG Q3/2013 conference call presentation

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Executive summary – Financials

Fully on track to meet full year objectives

and long-term plan

Accelerating member growth w/

214k net adds

Operating Cash-Flow amounts to € 4.4m

EBITDA increasing to €6.2m

Accelerating revenue growth w/ 18% yoy

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Q3/13: €21.6m revenues, €6.2m EBITDA

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(1) Including other operating income

Q2/13 Q2/13 Q3/13

vs. Q2/13

Q3/12 Q3/13

vs. Q3/12

Abs. Abs. % Abs. %

Total revenue1 21.6 20.9 3% 18.3 18%

Costs (15.4) (15.0) (2%) (12.8) (20%)

EBITDA 6.2 5.9 6% 5.5 12%

Margin 29% 28% 1%pt 30% (1%pt)

Depreciation (incl. PPA) (2.1) (1.9) (7%) (2.1) 3%

Financial result 0.0 0.0 38% 0.1 (44%)

Taxes (1.5) (1.3) (16%) (1.3) (16%)

Net result 2.7 2.7 1% 2.2 23%

Member growth accelerating against seasonality

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E-Recruiting and Events with continuing strong growth

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e-Recruiting in €m

Events in €m

7%

Premium Club in €m

Q3/12 Q3/13 Q3/12 Q3/13Q3/12 Q3/13

43% 32%

12.7 13.7

4.3

6.2

0.9 1.3

Overall revenue growth accelerating to 18% in Q3/13 (15% in Q2 & 11% in Q1)

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Personnel main investment area to further drive company growth

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Personnel in €m

in % of total revenue

Marketing in €m

in % of total revenue

Other expenses in €m

in % of total revenue

Investment in product/technology

organization & sales/marketing

10 new FTEs in Q3/13

41 new FTEs since Sep ’12,

thereof 27 from kununu

Online display & social media adv.

Search engine marketing (SEM)

Offline marketing expenditure

(conferences & events,

print, sponsoring)

Affiliate marketing

External services, legal, audit &

consulting

Payment processing, server

hosting

Rent & other costs

7.78.6 8.3

Q3/12 Q2/13 Q3/13

42% 41%

1.2 1.4 1.8

Q3/12 Q2/13 Q3/13

6% 7%

4.0

5.0 5.2

Q3/12 Q2/13 Q3/13

22% 24%

39%

24%

8%

55% 32% 9%

YoY cost development reflects first-time consolidation of kununu

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Q3/2013: Operating cash flow: €4.4m

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Q3/13 Q2/13 Q3/13

vs. Q2/13

Q3/12 Q3/13

vs. Q2/12

Abs. Abs. Abs. Abs. Abs.

EBITDA 6.2 5.9 0.3 5.5 0.7

Interest/tax/ESOP (0.9) (1.2) 0.3 (0.9) (0.1)

Net working capital (0.9) 2.3 (3.2) 0.1 (1.0)

Operating cash flow excl.

organizer cash 4.4 6.9 (2.5) 4.7 (0.3)

Investment – operating (2.9) (2.7) (0.1) (1.6) (1.3)

Investment – acquisitions 0 (0.1) 0.1 0.0 0

Financing incl.

transaction of own shares 0.4 1.7 (1.3) 0.1 0.2

Free cash flow excl. organizer cash

& dividends 1.9 5.9 (4.0) 3.3 (1.4)

Regular dividends 0.0 (3.1) 3.1 0.0 0

Free cash flow excl.

event organizer cash & incl. dividends 1.9 2.8 (0.9) 3.3 (1.4)

Effects organizer cash 1.6 0.0 1.6 1.8 (0.2)

Free cash flow incl.

organizer cash & dividends 3.5 2.8 0.7 5.2 (1.6)

Cash-Flow from net working capital negative due to xo fluctuations in Q3

Page 17: XING AG Q3/2013 conference call presentation

Thank you for your kind attention!

The professional network www.xing.com

Page 18: XING AG Q3/2013 conference call presentation

Negative invested capital from shareholders’ perspective

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in €m [Excl. event organizer cash and NWC]

As of Sep

2013

Abs.

Assets 107.1

Operating assets 26.9

Acquisitions / international 16.3

TAX A/R 1.3

Cash 62.6

Equity/Liabilities 107.1

Equity 58.3

Deferred income 30.2

Liabilities 15.1

Tax liabilities 3.5

Other 0.0

Operating assets €26.9m

Deferred income (€30.2m)

Liabilities (€15.1m)

Invested capital

w/o cash (€18.4m)

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Investor information & contact

The professional network www.xing.com

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XING AG IR stats Market cap: ~€440m / >€60m cash / no debt

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Average trading volume per day (XETRA) Consensus from

9 brokers 2013e 2014e 2015e

Total revenues 82.7 93.2 102.1

EBITDA 23.9 29.9 35.5

Margin 29% 32% 35%

Depreciation -8.4 -8.6 -8.5

EBIT 15.5 21.3 27.0

Margin 19% 23% 26%

Net income 10.9 15.0 19.3

EPS in € 1.98 2.72 3.48

DPS in € 0.70 0.87 1.33

Analyst coverage

Berenberg Bank, Commerzbank, Close Brothers, Deutsche Bank,

Hauck & Aufhäuser, JP Morgan Cazenove,

MM Warburg, Montega

Shares 5,592,137

Consensus

(Analy

st estim

ate

s a

s o

f N

ovem

ber,

2013)

TecDax ranking end of Oct 2013

Market Cap. 27

Turnover 30 Numbers based on last filing – actual shareholdings can differ

Burda Digital GmbH 2,922,244 52.26%

Deutsche Asset &

Wealth Management

358,800 6.42%

Ennismore 277,848 4.97%

Schroders 282,421 5.05%

Treasury Shares 37,832 0.68%

Sonstige 1,712,992 30.63%

[in thousand] 21

10

6

4

7 7 7

12

15

3

20

9

12

Oct-12 Dec - 12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13

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XING share price development since IPO in Dec 06 as of November 5, 2013

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+40% +27% +61% +162%

0%

50%

100%

150%

200%

250%

300%

350%

XING AG TecDAX SDAX DAX

Page 22: XING AG Q3/2013 conference call presentation

Investor Relations Contact details & social media channels

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Patrick Moeller

Director Investor Relations

XING AG

Dammtorstraße 29-32

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”)

Email.: [email protected]

IR website: http://corporate.xing.com/english/investor-relations/

http://twitter.com/xing_ir

http://www.slideshare.net/patmoeller

http://www.youtube.com/XINGcom

http://blog.xing.com

skype:patrickmoeller?add