Servicios estudiantiles

2. Active Recruiting: The successful establishment of the XING Talent Manager for proactive recruitment

3. Passive Recruiting: Strong demand for online job ads on www.xing. com

These three important developments raised segment revenue in the past financial year by a total of € 7.0 million. After deducting directly attributable costs and expenses, we generated segment EBITDA of € 9.2 million in 2013. Excluding € 1.5 million in non-operating expenses from the earn-out obligation, Segment EBITDA amounts to € 10.7 million in 2013 with a margin of 45 percent (2012: € 7.2 million with a 39 percent margin).

The number of corporate customers (B2B customers) in Germany, Austria, and Switzerland rose to 16,031 in the 2013 financial year (2012: 15,731).

2012

e-Recruiting – segment revenues and ebITDa (in € million) & margin (in %)

7.2 Revenues Segment EBITDA 2013 16.7 23.7 9.2 43 % 39 % events segment

In the Events segment, we likewise posted extremely dynamic growth in the past financial year with a revenue increase of 26 percent to € 4.9 million (previous year: € 3.9 million). After the growth rates had tapered off substantially at the beginning of 2013 (Q1 2013: 5 percent), due among other things to the exit of the founders of the Events busi- ness, we lifted them again to well over 30 percent from the second quarter of 2013 by professionalizing the sales structure. On account of the start-up losses sustained in the establishment of sales, product

development, and marketing, this division generated an operating loss of € 2.7 million in the past financial year (2012: operating loss of € 2.9 million).

The number of corporate customers (B2B customers) rose to 2,246 in the 2013 financial year (2012: 1,874).

2012

events – segment revenues and ebITDa (in € million) Revenues Segment EBITDA 2013 3.9 –2.9 4.9 –2.7 neT asseTs

Non-current assets increased from € 23.1 million in the previous year to € 30.9 as of December 31, 2013. This is mainly due to the acqui- sition of kununu GmbH in financial year 2013. Non-current assets accounted for 27.5 percent of total assets as of December 31, 2013, up 2.5 percentage points from 2012 (25.0 percent). As a result, current assets accounted for a lower proportion of total assets, dropping to 72.5 percent (previous year: 75.0 percent).

On December 31, 2013, liquid funds of € 69.0 million (previous year: € 58.8 million) accounted for 61.4 percent (previous year: 63.7 percent) of the total assets of € 112.3 million (previous year: € 92.2 million). Liquid funds as of December 31, 2013, included third-party cash of € 2.8 million (previous year: € 2.6 million) from XING Events GmbH. The Company has € 66.2 thousand in cash, which accounts for 58.9 percent of total assets (previous year: € 56.2 million or 60.9 per- cent). The increase in cash is mainly due to rise in revenues and additional advance customer payments.

The increase in receivables from services from € 7.3 million in the pre- vious year to € 8.6 million as of December 31, 2013, was largely related to the increase in revenues. Receivables from services mainly include receivables from paid memberships and B2B receivables.

The increase in other assets was largely due to the increase in advances paid, deferred costs and receivables from credit card com- panies. The year-on-year decrease in receivables from personnel had an offsetting effect.

The value of purchased software rose from € 2.9 million to € 3.5 mil- lion as of December  31, 2013 due to the additions that exceeded amortization expense. Internally generated intangible assets include the internally generated parts of the platform that qualify for capi- talization, the XING mobile applications, and the XING testing tool. Internally generated intangible assets were reduced by amortization and impairment losses of € 0.3 million (previous year: € 0.6 million), mainly resulting from the overhaul and redesign of the platform. Goodwill results from the acquisition of XING EVENTS GmbH in 2011 (€ 5.6 million) and from the acquisition of kununu GmbH in the 2013 financial year (€ 2.2 million).

The value of other intangible assets rose from € 1.6 million to € 3.5 mil- lion as of December  31, 2013 due to the additions that exceeded amortization expense. Significant additions relate to the customer relationships acquired as part of the acquisition of kununu GmbH in the amount of € 2.0 million as well as the brand/domain thereby acquired for € 0.8 million. These additions were reduced by amorti- zation.

FInanCIal PosITIon

equity and liabilities

As was the case in previous years, XING AG is financed solely from equity and the Company does not have any bank loans or other such loans.

As of the closing date, the Company’s equity ratio amounted to 54.0 percent compared with 56.1 percent in 2012. This puts XING in an excellent position for future growth. The slight decline in the equity ratio is the result of two offsetting effects: The equity ratio rose on the strength of the net profit (€ 9.1 million) and through the exercise of options by members of the Executive Board as well as employees (€ 1.2 million). The increase in total assets to € 112.3 million (previous year: € 92.2 million) as a consequence of the acquisition of kununu GmbH and the payment of the regular dividend in the amount of € 3.1 million had an offsetting effect.

The Company’s equity amounted to a 196.3 percent surplus over the non-current assets (previous year: 224.4 percent). The decrease results from the acquisition of kununu GmbH and the increase in non-cur- rent assets associated with this. The current assets (including liquid assets) amounted to a 186.0 percent surplus over the current liabilities (previous year: 188.5 percent).

Cash flows from operating activities

The cash flows from operating activities for the reporting year amounted to € 23.8 million, up from € 18.9 million in the previous year. This increase is chiefly attributable to the € 2.4 million increase in earnings before taxes over the previous year and the increase in deferred income that was significantly higher than in the previous year (€ +6.3 million; previous year: € +2.2 million).

Cash flows from investing activities

In 2013, the cash flows from investing activities included payment of € 2.9 million for the acquisition of kununu GmbH. In 2012, the cash flows from investing activities included payment of the remaining € 2.5 million purchase price obligation for XING Events. In contrast to the previous year, higher amounts were invested in tangible assets (€ 4.3 million compared to € 2.7 million). Payments for acquired and internally developed software rose from € 4.7 million in 2012 to € 5.9 million in 2013.

XING AG Annual Report 2013

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