Conference Call on. Stefan Groß-Selbeck (CEO) August 13, 2009

Transcription

1 Conference Call on HY1 09 Results Stefan Groß-Selbeck (CEO) & Ingo Chu (CFO) August 13, 2009

2 Dr. Stefan Groß-Selbeck As CEO, Stefan heads Corporate Strategy, HR and Corporate Communications. He is also responsible for Marketing, Sales and Product in DACH 2

3 01 Executive Summary 1 st Half 2009 Very Solid Financial Performance Continued strong top line growth Short term profitability reflects investments in future growth Strong Execution Product: Biggest number of feature launches ever in Q2 Marketing: select investments to accelerate growth Development: Significant increase in engineering capacity Good Early Results Of New Strategic Focus Continue to outgrow competition in home markets Gaining share in jobs Encouraging initial signs of progress in international focus markets Continuing On Our Path Drive penetration in DACH Go deep on Recruiters International expansion in select markets 3

4 02 Overview of H1/Q2 09 Performance HJ 2009 HJ 2008 Chg. Total Revenues 1 In m % EBITDA in m % EBITDA-Margin in % % Result for the period in m % Member Base in m % thereof Payers in % 1 Including Other Operating Income 2 Adjusted for Non-Recurring Expenses For Discontinued M&A-Activities 4

5 02 Product & Feature Launches HY 2009 (I) Strengthening Active Usage What we shipped 05/06 Members you may know (MYMK) 05/06 New Profile Box 05/13 People you should meet (VIP Spain) 06/17 Customizable Newsfeed Impact record levels of active users step change in # of contacts in DACH (+26%) 5

6 02 Product & Feature Launches HY 2009 (II) XING Partner Ecosystem What we shipped New infrastructure based on open social 13 partner apps App Directory Impact >300k installations up to now Very positive member feed back >300 requests of potential partners to be integrated 6

7 02 Product & Feature Launches HY 2009 (III) Company Pages What we shipped Company Pages Beta Improved employees list Request Profile Creation: enabling small companies to request a company profile Quick-Invite: Invite your colleagues to XING. Search for hiring i companies Advertising: Banner on the CP Hub-Page and one on the CP Creation Page. Impact Generated strong interested of companies to have a presence on XING >13k requests for CP creation & CPs created Plenty of feedback on further improvements Preparing new version in H2 7

8 02 Product Enhancements in HY 2009 IV Events What we shipped More specific event invitations and messages Twitter integration Usability improvements Impact No. of organized events almost doubled to 68k vs. HY1 08 Events are local! People want to see what s going on around the place they live and work Preparing next version including a ticketing solution 8

9 02 Marketing Investments In Member Growth & Activity What we did in HY1 Banner Campaigns Spiegel.de, Focus.de, F.A.Z.net,Wallstreet Media, Tagesanzeiger.ch, NZZ.ch, derstdandard.at, diepresse.at igoogle Gadget & Vista Widget International SEO & Display Campaigns 9

10 XING Switched To Investment Mode in Q to Accelerate Product Innovation Successfully integrated former service provider epublica into XING Engineers now part of XING core development team Significant increase in development resources (Headcount) +32 new developers in HY Team preparing launch of new revenue generating products and features in HY2 -Continued investment in existing products as well as new products -Focus on recruiting - First example: display ads in Job section already live since mid July 10

11 XING extending its lead in Core Markets 02 Example Germany Unique visitors, Germany * m 64m 6.4m XING Linkedin 0.4m 0.4m January 2009 June 2009 Source: quantcast, XING internal data 11

12 XING Jobs Section Maintains Its Position 02 And Is Gaining Market Share Comments Continued high interest in XING job board Continued investments e ts in HY2 to better meet industry standards Active Postings visible in 000s Monthly average # of direct B2B relationships in `000s 12

13 Accelerated Member Growth In Spain & Turkey 02 Despite Weak Seasonality 13

14 02 Continuing To Execute Our Strategy (1) Drive penetration in core DACH markets Objectives: Further increase activity & drive member growth Innovation to drive value (2) Improve offering for recruiters Leverage onexisting 40krecruiters onxing Build value adding products & features (3) Continue international expansion Continue to invest in active member growth Focus onselect countries Drive organic growth Consider acquisitions opportunistically 14

15 Ingo Chu (CFO) As CFO, Ingo is responsible for accounting, controlling, Business Intelligence, planning and evaluation of the corporate performance as well as investor relations at XING AG 15

16 Financial Highlights Q Quarterly Topline & EBITDA Development Quarterly Net Service Revenues in m Quarterly EBITDA in m 28% 37% 40% 34% 32% 23% * Excluding non-recurring expenses (768k) ** Incl. non recurring expenses for CEO transition (Personnel costs & other operating expenses) 16

17 Business Line: Subscriptions 03 Solid Growth Payer base in 000 Subscription Revenues in % 81% 79% 81% 85% 35% 36% As percentage of total revenue 17

18 XING Jobs Section (I) 03 Gaining Market Share Active Postings visible in 000s Monthly average # Of Total Jobs Clicks In m # of direct B2B relationships in `000s 18

19 XING Jobs Section (II) 03 Gaining Market Share Jobs & Best Offers Revenue in m Market Share in % * % vs. Q2 08 Jobs Best Offers * Based on 19

20 Advertising 03 Decline Mainly Driven By Lower Guarantee Payment Page Views in m Advertising Revenue in 000 7% -41% 20

21 IFRS Cost Base 03 Personnel Expense Driven By Investments In Growth Personnel expenses in m (% of Revenue) Comments More than 90 additional FTE s Engineering/Product: +50 FTE s Applications for new business 23% 21% 27% 31% 35% Sales: +17 FTE s Sell new Applications Marketing / Customer Care: +12 FTE s Increase customer satisfaction Less capitalization One-Offs related to management changes Q2 08 Q3 08 Q4 08 Q1 09 Q

22 IFRS Cost Base 03 Marketing Expenses Marketing in m (% of Revenue) Comments 16% 15% 11% 7% Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 DACH: ~ 0.8m in Q2 SEM Display ads Start of affiliates 13% Cooperations (e.g. Gruner & Jahr) Intl.: ~ 0.5m in Q2 SEM Campaign Display Ad Campaign 22

23 IFRS Cost Base 03 Other Operating Expenses Other expenses (% of Revenue) Comments External services (especially development freelancers) Legal, audit, consulting fees 24% 24% 30% 29% 30% 29% Payment processing Server hosting Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Rent & Other Costs 23

24 Free Cashflow 03 Free Cashflow * Q2 Comments Low operating cashflow Low EBITDA Tax payment 1.6m Build-up up receivables Low build-up in deferred income CF from investing activities on Q1 level Self developed software Acquired software Property, plant & equipment * FreeCashFlow adjusted for M&A expenses & Share Buyback / Revenue 24

25 Outlook For HY Stefan Gross-Selbeck We Continue To Execute Our Strategy Drive penetration in core DACH markets Pursue vertical opportunities Continue international expansion in select markets We Continue to Invest Into Our Product EBITDA-Margin will recover end of HY2 We Will Launch New Revenue Streams in HY2! Revenue Impact Expected In

26 Thank you for your kind attention! 13/08/

27 Share Data & Market Consensus Share data HY 09 Shares 5,271,773 Bloomberg O1BC EPS HY 09 * 0.42 Op. CF per Share HY Average trading volume per day ~6,158 TecDax Ranking end of July Measure Rank Market Cap. 31 Turnover 39 Analysts Coverage Deutsche Bank, DZ Bank, HSBC, Sal. Oppenheim, Nomura 27

28 Investor Relations Contact Details Patrick Möller Director Investor Relations XING AG Gaensemarkt Hamburg Germany Tel.: +49 (0) : Website: t 28

29 Disclaimer This presentation was produced in August 2009 by XING AG (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 AG 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 limitedto 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 June 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. 29