Executive Board decides on investment program and Group restructuring | Outlook for 2024 | Dividend and medium to long-term financial targets

Hamburg, 11.01.2024 - The Supervisory Board of New Work SE (ISIN DE000NWRK013) today approved an investment program presented by the Executive Board and a comprehensive restructuring of the organizational structure. As part of the investment program, the repositioning of the XING platform as a jobs network, which began in 2023, is to be accelerated through additional marketing expenses from the current year 2024. The company also intends to invest further in the employer review platform kununu to expand its strong market position.   
 
The strategy of becoming a leading recruiting partner for companies by winning talents remains unchanged. The focus on the XING and kununu brands will be accompanied by a substantial reorganization of the organizational structure and a significant three-digit headcount reduction. The aim is to make the best possible use of future growth opportunities in the recruiting market, to mitigate the temporary drop in demand for HR solutions caused by the recession and to secure the company's long-term profitability. The organizational changes are still subject to approval by the employee committee.   
 
For 2024, the Executive Board expects pro forma EBITDA in a corridor of € 55 million to € 65 million (expected pro forma EBITDA financial year 2023: € 92-100 million) in a continued challenging economic environment. In the medium term, the Executive Board continues to aim for a pro forma EBITDA margin of at least 30%. The expected decline in earnings in 2024 is primarily due to the anticipated decline in B2C segment revenues, a continued difficult macro environment and additional investments. The Executive Board expects pro forma revenues in 2024 between € 270 million and € 280 million (expected pro forma revenues financial year 2023: "at previous year's level", with pro forma revenues in 2022 amounting to € 313.4 million).   
   
The lower result compared to the previous year and the restructuring costs associated with the reorganization of the organization are expected to lead to a change in dividend practice in the coming years. Accordingly, the company plans to temporarily propose a dividend of at least EUR 1 per share until the level of profitability prior to the Group's reorganization is reached again. In the medium term, the Executive Board aims to return to the previous dividend practice.  
 
* Pro forma key figures are adjusted for one-off, non-recurring special effects (such as one-off restructuring costs)