New Work : Quarterly Report I/2021

Q1

2021

Interim Report

January 1 to March 31, 2021

For the past 18 years, New Work SE has been committed to promoting a ­better working life with a wide range of brands, products and services.

Founded as the OpenBC professional network, New Work SE today offers the vast majority of professionals

in German­ -speaking countries their own digital network.

The Company was renamed XING in 2006 and New Work SE in 2019. Its commitment to a better world of work is now also reflected in its name, with New Work serving as the visible framework for all corporate activities. New Work SE helps people­ and businesses to be even more successful in a changing modern working world.

The Company has been listed since 2006. The New Work SE Group is headquartered in ­Hamburg and employs around

1,700 full-time staff at several locations including Munich, Vienna and Porto. For more information →new-work.se

Consolidated key figures

	Unit	Q1 2021	Q1 2020 1	Q4 2020 1
Revenues	in € million	68.0	68.9	71.6
Pro forma revenues	in € million	68.0	68.9	71.6
EBITDA	in € million	24.9	16.2	25.4
Pro forma EBITDA	in € million	24.9	17.1	24.8
EBITDA margin	in %	37	23	35
Pro forma EBITDA margin	in %	37	25	35
Net profit/loss for the period	in € million	12.1	7.1	- 5.4
Pro forma consolidated net profit/loss for the period	in € million	12.0	7.4	5.1
Earnings per share (diluted)	in €	2.15	1.27	- 0.95
Pro forma earnings per share (diluted)	in €	2.14	1.32	0.92
Cash flow from operations	in € million	39.7	32.4	15.5
Equity	in million	125.1	108.8	113.0
XING platform members, D-A-CH 2	in million	19.3	17.7	19.0
InterNations members	in million	4.0	3.8	3.9
kununu Workplace Insights	in million	5.0	3.9	4.6
B2B E-Recruiting customers, D-A-CH (subscriptions) 3	in thousand	12.7	12.9	12.6
Employees (FTE)	number	1,698	1,819	1,787

1. Financial year 2020 from continuing operations. Pro forma reconciliation in the interim Group management report
2. New method of presenting XING platform members in the D-A-CH region
3. New counting method for B2B E-Recruiting customers in the D-A-CH region from 2021. Prior-year figures retrospectively restated to ensure comparability

Contents

2 TO OUR SHAREHOLDERS

8 INTERIM GROUP MANAGEMENT REPORT

32 SERVICE

1. Management Board letter

1. The New Work SE share

1. INTERIM CONSOLIDATED FINANCIAL STATEMENTS
2. Consolidated statementof comprehensive income
3. Consolidated statementof financial position

24 Consolidated statementof cash flows

1. Consolidated statementof changes in equity
2. Notes to the interim consolidated financial statements

32 Financial calendar, publishing information and contact

New Work SE	To our shareholders	2
Interim Report Q1 2021	Contents

TO OUR

SHAREHOLDERS

1. Management Board letter

1. The New Work SE share

New Work SE	To our shareholders	3
Interim Report Q1 2021	Management Board letter

Management Board letter

Dear Shareholders,

New Work SE continued to report stable business performance in the first quarter of this year. At €68.0 million, our (pro forma) revenues remained at a similar level to the prior-year quarter, which was only adversely impacted by coronavirus towards the end of the period. Pro forma EBITDA rose by 46 percent over the same period to around €25 million, while pro forma earnings were 62 percent up on the prior-year period at €12.0 million (Q1 2020: €7.4 million). These increases were due to the restructuring carried out in the fourth quarter as well as cost base reductions.

Looking at the individual segments, revenues in the B2C business fell by 4 percent year-on-year to around €25 million. This was due to declining revenues in our InterNations subsidiary. The world's leading expat network sold fewer paid mem- berships, as the core benefit of these memberships is access to in-person events that are practically not happening worldwide at the moment. However, our core business with its paid memberships of the XING professional network remained at a similar level to the previous year.

Revenues in the B2B E-Recruiting segment also remained stable year-on-year at €38.1 million. While the first quarter of last year was only impacted by the corona- virus pandemic towards the end of the period, the entire first quarter of 2021 was overshadowed by the crisis.

The B2B Marketing Solutions & Events segment performed well, with revenues in this segment rising by 13 percent to more than €5 million. This performance was primarily driven by an increase in advertising revenues, which is an encouraging sign. By contrast, the offline events business was understandably below previous year's level.

As you can see, the performance of our company remains stable. The encouraging non-financial performance indicators reported by our two major B2C brands, XING and kununu, give us confidence that we will continue to see more of these positive signs in the future. The number of XING members has risen by 1.6 million to 19.3 million since March 2020, while kununu, Europe's leading employer review platform, has now reached 5 million workplace insights (reviews, corporate culture insights and salary information) for the first time, including more than one million salary insights.