Quarterly Report III/2021

Q3

2021

Interim Report

January 1 to September 30, 2021

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 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	9M 2021	9M 2020 1	Q3 2021	Q3 2020 1	Q2 2021
Revenues	in € million	212.6	205.0	73.6	68.6	71.0
Pro forma revenues	in € million	212.6	205.0	73.6	68.7	71.0
EBITDA	in € million	78.6	62.2	26.3	23.6	27.4
Pro forma EBITDA	in %	37	30	36	34	39
EBITDA margin	in € million	78.6	65.8	26.3	26.4	27.4
Pro forma EBITDA margin	in %	37	32	36	38	39
Net profit/loss for the period	in € million	32.2	31.5	6.5	12.2	13.6
Pro forma consolidated net profit/loss for the period	in € million	32.1	30.7	6.6	13.8	13.4
Earnings per share (diluted)	in €	5.73	5.60	1.16	2.17	2.41
Pro forma earnings per share (diluted)	in €	5.70	5.46	1.18	2.46	2.38
Cash flow from operations	in € million	72.7	65.5	14.1	21.5	18.9
XING platform members, D-A-CH 2	in million	19.9	18.5	19.9	18.5	19.5
InterNations members	in million	4.1	3.9	4.1	3.9	4.0
kununu Workplace Insights	in million	5.8	4.3	5.8	4.3	5.4
B2B E-Recruiting customers, D-A-CH (subscriptions) 3	number	12,776	12,647	12,776	12,647	12,687
Employees (FTE)	number	1,699	1,787	1,699	1,787	1,704

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

36 SERVICE

3 Letter from the CEO

6 The New Work SE share

	36	Financial calendar,
24 INTERIM CONSOLIDATED­	FINANCIAL STATEMENTS­	publishing information
25 Consolidated statement of ­comprehensive income	and contact

1. Consolidated statement offinancialposition

1. Consolidated statement of cash flows

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

New Work SE	To our shareholders	2
Interim Report Q3 2021	Contents

TO OUR

SHAREHOLDERS

3 Letter from the CEO

6 The New Work SE share

New Work SE	To our shareholders	3
Interim Report Q3 2021	Letter from the CEO

Letter from the CEO

Dear shareholders,

After eighteen months in which no text was complete without several mentions of the word "coronavirus", a new phrase is beginning to dominate economic discourse across the German-speaking world: the "shortage of skilled workers". As the economy picks up again, demand for talent is increasing markedly - with the march toward digitalization in virtually every sector intensifying the "war for talent" for certain roles even further.

For us, as for every other company, this presents an internal challenge. It is a challenge that will become even more daunting over time; after all, the next generation of talent has already been born and demographic change is a reality. However, this is good news for our business model. Revenues in the B2B segment, for example, which helps corporate customers to search for skilled professionals, once again experienced double-digit growth in the third quarter.

But let us take things one step at a time. If we look at pro forma revenues for the first nine months of this year, we see a year-on-year rise of 4 percent to almost €213 million. Pro forma EBITDA increased by 19 percent to just under €79 million in the same period. Finally, pro forma consolidated net profit was approximately 5 percent higher than in the prior-year period at €32 million.

In the first nine months of the year, the B2C segment was slightly down on the previous year's figure at €77 million. This was due on the one hand to the loss of revenues at our InterNations subsidiary caused by a continuing reluctance to hold in-person events. On the other hand, we are also feeling the effects of the recovering labor market, which caused a slight fall in demand for the XING Premium prod- uct. The good news is that the shortage of skilled workers is also having a positive impact on areas such as New Work SE's B2B business specializing in recruiting solu- tions. Revenues in the B2B E-Recruiting segment rose by 7 percent to more than €122 million in the first nine months of the year. As already mentioned, we can see double-digit growth when we look at the third quarter in isolation, with an increase of 14 percent compared to the previous year. The B2B Marketing Solutions & Events segment recorded a similarly encouraging performance, with revenues rising by

23 percent from €13 million in the previous year to €16 million during the first nine months of 2021. This is primarily due to the continuing positive trend in Marketing Solutions revenues and, increasingly, the return of the event business.

After we recorded stable performance in the first two quarters of the year, the third quarter was a particularly strong one for our company. We are very much aware

of the recovery in the labor market. This is beneficial for us, as we help companies to find talent that represents the best fit for their corporate culture and can help