43 xing noah sf 2012


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Presentation given at NOAH Conference San Francisco on June 26 2012 www.noah-conference.com

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43 xing noah sf 2012

  1. 1. XING – #1Professional SocialNetwork In GermanSpeaking EuropeNOAH ’12, San FranciscoDr. Stefan Gross-Selbeck
  2. 2. Why people use XING"A more successful & rewarding working-life for every professional" 1 2 3 Digital identity Efficient tools for management Core networking functions corporates e-Recruiting Advertising Events 2
  3. 3. #1 Business network in D-A-CH … in members with >5.5m+ members in D-A-CH … in growth >233k net new members in Q1 2012 … in activity with more than 4/5 of all segment page views … social media recruiting platform for online job ad postings … strong local ties >250 local Ambassadors, >140k offline events p.a. 3
  4. 4. Our business model PAID VERTICALS MEMBERSHIPS "Freemium" model e-Recruiting  Job ads (fixed & click price) €395 - €595+ p.m. or €0.79 p.c. E-RECRUITING Premium ADVERTISING PREMIUM & SPECIAL  Recruiter membership: membership: MEMBERSHIPS €39.95 - €59.95 p.m. EVENTS 3m @ €7.95 p.m.* ... 12m @ €6.95 p.m.* Advertising  eCPM model Sales membership:  Company Profiles 3m @ €49.95 p.m. Standard @ €24.90 p.m. 12m @ €29.95 p.m. Plus @ €129 p.m. Events Total of 793k payers  Commission to XING: 5.9% of (D-A-CH: 765k) ticket price & €0.99 per ticket 14% payer ratio sold BASIC MEMBERSHIP Core networking functions Free of charge Total:12.1m (D-A-CH: 5.5m) 4* Pricing for all new paying members since April 2011 (Discount of 20% for first term, auto-renewal with new pricing)
  5. 5. Q1’12: €17.7m revenues, €4.8m EBITDA,27% margin Q112 Q411 Q112 Q111 Q112 vs. Q411 vs. Q111 Abs. Abs. Abs. Total revenue1 17.7 17.6 +1% 15.7 13% Costs (12.9) (12.0) (7%) (10.0) (29%) EBITDA 4.8 5.6 (14%) 5.6 (15%) Margin2 27% 32% (5%pt) 36% (9%pt) Depreciation (1.8) (2.6)3 31% (1.5) (24%) Financial result 0.1 0.2 (29%) 0.0 272% Taxes (1.1) (1.4)3 (18%) (1.5) 25% Net result 2.0 1.83 12% 2.7 (27%) (1) Including other operating income (2) Of revenue (3) Adjustment for one time write-down of market entries for Spain & Turkey (€14.4m) & taxes adjusted by €0.3m accordingly Accelerated investment mode since Q3 2011 5
  6. 6. ‘Verticals’ drive overall growth"Verticals": Continued strong growth New job applicant features• Revenues from "verticals" in €m & in % of Strong yoy growth in job ads sold via total revenues sales overcompensates decline in click YoY growth e-Recruiting price ads given ongoing chance in €5.7m +34% product mix Corporate Recruiter Account (CRA) to 1.0 be launched in summer 2012 +101% €4.3m Display ads: Good performance in soft 0.5 1.2 +15% market environment Company profiles: Strong yoy growth 1.1 Advertising in Q1 New revenue model "AdCreator" to be launched in Q2 2012 3.5 +28% 2.7 €14.3m ticket sales in Q1 2012 Ramping up sales team Events Testing new product to promote Q12011 Q12012 events on XING 27% 32% 6
  7. 7. Grow and activate: Long runway forgrowth Penetration gap promises upside Growth opportunity from mobile "revolution" Business networking penetration in XING mobile visits in m selected countries1 >20% of >17% >16% >100% total traffic >11% ~5% 7.000 3.287 UK NL USA March 2011 March 2012 Significant growth potential in D-A-CH Social networks are main beneficiary of mobile Addressable market revolution2 D-A-CH: 19m people3 1 Source: XING analysis & LinkedIn demographics as of January 2012 2 Source: Comscore MobilLens, 3month avg. ending Dec-2010 vs. Dec 2009 3 Source: United Nations World Population Prospects 2006, United Nations Economic Commission for Europe – Statistical Division, European Commission Long-Term Labor Force Projections 2005, OECDs Committee Information Service, 7 CEDEFOP Future Skill Needs in Europe Forecast 2008, Sal. Oppenheim estimates
  8. 8. Overall strategy in 2012 remainsunchanged PAID Exploit large remaining market VERTICALS MEMBERSHIPS potential in D-A-CH region E-RECRUITING ADVERTISING PREMIUM & EVENTS 3 ... SPECIAL Monetize through combination of MEMBERSHIPS Develop & Build paid memberships & verticals  Upcoming launches: 2 Corporate recruiter account (CRA) Convert & social advertising products 1 BASIC MEMBERSHIP Grow & Activate Further invest in product development and marketing Significant growth potential ahead in core markets (D-A-CH) to become a €100m+ company in a few years 8
  9. 9. Thank youfor your kindattention! The professional network www.xing.com
  10. 10. NOAH Advisors - Europe’s Leading Internet Corporate Finance Boutique Selected Completed NOAH Transactions May 2012 April 2012 Unique Industry Know-How Core Investment Banking Competence Sale of a 100%-stake in 100% focused on Internet companies, covering  The NOAH team has 25+ years of media 150 million growth equity investment from over 25 sub-verticals in this highly complex investment banking experience industry - Routine execution of M&A and financing for a 50% stake alongside Fotolia’s Founders and to - 15+ years active coverage of leading European transactions with sizes of several billion euros Internet companies and investors  The team has been working together closely for 7 Additional $150 million senior debt financing Total $300 million investment Deep understanding of industry dynamics and years (including 6 years at Lehman Brothers) Financial Advisor to Fotolia and its Shareholders Financial Advisor to Toprural and its Shareholders thinking of industry leaders  8 successfully completed NOAH Advisors Ability to add value beyond banking advice transactions underline successful transfer of - Facilitates overall process and minimizes competencies to the Internet sector November 2011 July 2011 management distraction Sale of a majority stake in Sale of a majority stake in Unmatched Network and Relationships Full Commitment - We Are Entrepreneurs! NOAH Advisors is globally very well connected  The NOAH team are entrepreneurs and focused to to and has direct access to virtually all key players in on growing the business and establishing a Quants Financial Services AG the industry reputation for excellence Exclusive Financial Advisor to - Knowledge of and strong relationships with  Full commitment to deliver top quality results in grupfoni and its Shareholders Advisor to EnGrande potential buyers’ key decision makers short time frames - Coverage of over 500 companies and 4,000  Highly success-based compensation structures individuals align interests of clients and NOAH Advisors, and April 2011 April 2011 - Proactively finds and unlocks attractive demonstrate conviction to deliver top results Sale of a majority stake in investment opportunities for leading have acquired a majority stake in investors (e.g. Bigpoint) Annual NOAH Conference to for $350m from The NOAH Advisors Core Team Exclusive Advisor to Advisor to Yatego Summit Partners and TA Associates Marco Yoram Jan Rodzynek Wijngaarde Brandes December 2009 April 2009 Managing Director Director Director Partial sale of $80m partial sale of and Founder to toContact Details Contact Details Contact Details Valuing Softonic at €175mmarco.rodzynek@noah-advisors.com yoram.wijngaarde@noah-advisors.com jan.brandes@noah-advisors.com Advisor to Softonic Advisor to FotoliaUK Mobile: +44 77 85 330 330 UK Mobile: +44 79 17 084 784 German Mobile: +49 174 2010 984Swiss Mobile: + 41 79958 1512
  11. 11. Introduction to the NOAH Conference Overview of the NOAH Conference 2011 The NOAH Conference is an annual Internet event taking place once a Summary Overview Conference Program year in London, focused on top management from Internet start-ups to global media companies as well as senior investment professionals  NOAH ‘11 took place on 9-10 November 2011 at Old NOAH’s goal is to create a marketplace for the European Internet eco- Billingsgate in London system to discuss key trends, generate business and facilitate  Fantastic line-up of 90 speakers from 20 countries in keynotes, investment transactions presentations and panels over 2 full days Over the past 3 years numerous high-profile speakers presented at  1,150 attendees from 35 countries – 57% from Internet NOAH, including over 100 CEOs companies, 26% from investors, 15% from corporates (media The NOAH Conference was founded in 2009 by Marco Rodzynek and is companies, advisors, PR and recruiting) and 2% press organised by the NOAH Advisors team with sponsorship from some of representatives from leading on- and offline publications the world’s leading financial investors  NOAH party with additional guests from London and a great live band on the evening of the first day NOAH ‘12 on 6-7 November – Save the Date  Extremely positive feedback from numerous attendees, on twitter and in the press The conference will again take place at Old Billingsgate in London Registration will open in early 2012 Selected Conference Impressions For updates, please check: www.noah-conference.com Event Sponsors Strategic Sponsors