Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE

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Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Ralf Baumann, CEO
and Thorsten Otte, CFO
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Video

        StepStone introduction video

                                       1
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Investment Highlights

    European powerhouse with a track record of double digit organic growth and high EBITDA margins

    Strong #1 in Europe`s largest and fastest-growing market, where most revenue/EBITDA is generated

    Strong customer retention rates of >95% for large companies across the group

    Best in class candidate delivery that it is up to 2.5 times higher than 2nd best player

    Significant internal and structural growth potential in all markets beyond weak economic phases

    Clear and proven strategy to become a full E-Recruiting company that absorbs growth potential

    We expect continued EBITDA growth >10% (CAGR) till 2021

                                                                                        2
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Our Claim

            Helping
            people find
            the job they
            love

                     3
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Our Vision

 We are the leading e-recruiting
 company in the Western world.

 For candidates we are destination
 number one when it comes to finding
 the job they love in the right
 company. Even beyond, we are the
 trusted platform for any
 career-related matter.

 As preferred partner, we have a
 successful business relationship with
 every company in our markets.

                                         4
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
We offer a technology platform for job transactions & E-Recruiting solutions

  Basic idea was to
                                                                            Job ads
  transform job ads
 from print to online
                                    Publication: Once a week                     Publication: Permanent
 (In GER, offline still accounts
     for 50% of the market)         200-400 job ads per edition                  Unlimited job ads per day
                                    Limited / local reach: ~400k readers         Global / mobile reach
                                                                                  Candidates: CV database
                                                                                  Seamless application process (peer-to-peer)

                                                                                                           5
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Candidate delivery drives the success of our business

                        RELEVANT Candidates
                                              PERFECT
                                              MATCH
           Technology

                                              By using search and
                                              recommendation algorithms
                                              Traffic and reach enable
                        SUITABLE Employers    candidate sourcing

                                                                 6
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
We are a European powerhouse

                       20                  2,200+                110k+              525,000+                 95%+
                    countries             employees            customers         jobs per month      rev from #1 positions

                                                       STEPSTONE Group Portfolio

           StepStone Continental                            StepStone UK                              SAON Group
                63% of total revenue                               29%                                        8%

  DACH               BENELUX             France              United Kingdom         Ireland & NI     Central America         Africa
  • StepStone        • StepStone         • StepStone         • Totaljobs Group      • Irishjobs.ie   & The Caribbean         • PNet
  • YCG              • ictjob.be                             • Jobsite Group        • Jobs.ie        • Carribeanjobs.com     • CareerJunction
                     • Jobs.lu                                                      • NIJobs.com     • Tecoloco.com          • myjob.mu

                                   European revenue share: 97%

                                                                                                                    7
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Companies are charged for listings and access to candidate profiles

                            Job Listings                                                                   Direct Search                   Employer Branding
                     Highly scalable with low total                                       Effective process to fill highly specific   Targeted branding products to help
                       cost per hire for recruiter                                         positions, but high cost per hire and       employers stand out among our
                                                                                               difficult to scale for recruiter                  candidates

                                                                                                            Revenue share
 2008¹

                                   88%                                                                              6%                                6%
         (GER/UK)¹
  2016

                            83% (96%/51%)                                                                       16% (3%/48%)                     1% (1%/1%)

1) Increase of Direct Search due to acquisition of UK businesses in 2012/2014 and respective market specifics

                                                                                                                                                     8
Ralf Baumann, CEO and Thorsten Otte, CFO - Axel Springer SE
Continued double digit organic growth

Group Revenue (m €)
StepStone outperforms other players and has survived numerous
so called ‘disruptive business models’

                                                                                                                                              410
                                                                                                                                   361

                                                                   CAGR –– total:
                                                                   CAGR    total: +30%
                                                                                  +30%                                            +21%        +18%
                                                                                                                                    organic growth

                                                        Lehman
    23

   2005         2006         2007           2008        2009          2010     2011       2012       2013        2014             2015       2016
 Unemploy-     Company    Google base      Craigslist    Social       Agents   Google     Social     Social     Indeed /          Google /   Indeed
 ment Office   websites   referral sites                networks                Jobs     networks   networks   Meta search       Facebook
                                                                                                                engines

                                                                                                                             9
Our key markets have attractive growth potential

GER Recruitment Marketing¹ (m €)                                                                            UK Recruitment Marketing¹ (m €)
Online Recruitment is expected to grow by 11.6% (CAGR) till 2020, shift                                     Generalist classifieds are expected to grow by 5.8% (CAGR) till 2020, CV
from print to online may be accelerated by players                                                          database revenues are resistant to substitution by networks
                                                                                                            FX rate: 1 EUR = 0.86 GBP

                                                                 Online Recruitment
                                                                      11.6%
                          Online Recruitment
                                                                                                                               Online Recruitment          Online Recruitment
                                 16.5%                                                1,446
                                                                                       115                                              7.5%                     2.8%
               1,091                                  1,170
                                                            52                                                                                      992                         1,030
                  15                                                                                                     906
                                                                                                                                                     86                          114
                 305                                                                  796                                 20
                                                       536
                                                                                 Shift can be                            564                        696                         759
                                                                                  influenced
                 771
                                                       582                            535
                                                                                                                         322                        210                          157
                2012                                   2016                           2020                              2012                        2016                        2020

1) Source: OC&C Strategy Consultants
                                                                      Online - Networks & Branding   Online - Classifieds & CVDB         Offline²
2) incl. classifieds, branding, events & referral schemes

                                                                                                                                                                10
Market characteristics drive share of direct sourcing

CV Databases & professional Networks, UK vs. GER
(% of online marketing spend1)

                                                   Germany              UK

                                                                                                                                Recruitment agency industry in the UK drives the usage of direct
                                                                                                    49%                          search products
                          43%                                  45%                                                                Direct search products are typically bundled with listings
                                                                                                                                  Contracts with corporate recruiters largely include high listing volumes

                                                                                                                                LinkedIn has captured UK market share quickly. Recent trends
                                                                                                                                 show resilience of CV Databases to substitution from networks
                                                                                                                                  Candidates in CV Databases are more active
              9%                                   9%                                  10%
                                                                                                                                  Likelihood of receiving feedback from candidates is very high
                                                                                                                                  Traditional CVs in databases are seen as more reliable
                   2012                                 2016                                 2020

Source: OC&C Strategy Consultants
1) Online marketing spend includes classifieds, CV databases, professional networks and employer branding in online channels

                                                                                                                                                                               11
Competitor impact varies based on market characteristics and environment

                                 Competition                                                                                            Competitive Impact

                                                                                                          Continental Europe                         UK                           SAON Group

   Network                                                                                                       Low                              Medium                             Medium
                       Business model:
                       Direct search, passive search, user subscription                               Better quality of CV databases  Recr. agency industry drives use    Low CV search pattern
                                                                                                       over profiles                    of direct search products           Only Linkedin is established
                       Market share (online recruitment market)¹:                                     Low CV search pattern           Trends show resilience of CV         as a professional network
                                                                                                                                        database to substitution by         Ireland serves as a first
                       • GER: 4.7% in 2016, 6.3% in 2021                                                                                networks: StepStone has 21.8m        expansion destination for US
                       • UK: 6.7% in 2016, 8.0% in 2021                                                                                 CVs vs. 21m Linkedin profiles        players to gain foothold

 Aggregator                                                                                                      Low                              Medium                                Low
                       Business model:
                       Aggregation (traffic provision), passive search                                Consolidated markets             Fragmented market                  Consolidated markets
                                                                                                      Indeed blocked from crawling     Heavy investments by Indeed        Indeed blocked from crawling

                       Market share:
                       Part of online classifieds growth - share unknown

1) Share of professional networks of Online Recruitment market, 2016; Source: OC&C Strategy Consultants

                                                                                                                                                                             12
Google launched ‘Jobs’ in the US and partners with jobboards

‘Google for Jobs’ – Google’s 3rd product in E-Recruiting¹

     Google’s services are US focused only. Partnerships with jobboards have been established

     ‘Google Jobs’ will aggregate jobs with the intention to improve the user experience

     Primary source for listings will be feed data - structured feeds are required, enriched and unique data is preferred

     No matter what Google is finally doing (and if ‘jobs’ comes to Europe), we are well prepared to either compete or expand our existing
      partnership with Google by using:
           A high performing sales force that constantly increases the job inventory
           The majority of unique listings in European core markets (~30% in GER, ~20% in UK, ~28% in IE)
           Enriched content around jobs, which will be constantly expanded through our product pipeline
           Technological capabilities around job specific search and match (best in class)

1) It is Google’s 3rd offering in E-Recruiting next to Hire and a jobs’ specific Application Programming Interface (API)

                                                                                                                             13
In all markets we hold #1 positions in candidate delivery

                                                              Candidate Delivery¹ - StepStone Continental

                            Germany                                               Belgium                                    Austria

    StepStone DE                                       21.6       StepStone BE                      25.4    StepStone AT                              27.1

   Stellenanzeigen                         8.6                         Vacature              14.2            derStandard                             25.7

              Linkedin                     8.3                        Regiojobs             13.5               Karriere.at                           25.1

              Jobware                      7.6                            Jobat             12.6                 kurier.at                    18.2

                Indeed                  6.9                             Indeed         10.3                      Monster               13.0

              Monster                   6.8                            Linkedin        10.4                       Indeed      5.8

                    Xing             5.0                               Monster         10.2                      Linkedin    4.5

1) Average # of applications per job ad; Source: TNS

                                                                                                                              14
In all markets we hold #1 positions in candidate delivery

 Candidate Delivery¹ - StepStone UK                                                            Candidate Delivery¹ - SAON Group

                      United Kingdom                                               Ireland                                     South Africa

Totaljobs                                         18.6                 Jobs.ie                     31.2                Pnet                     103.3
                                                         Potential:
                                                                                                          49.0                                          167.9
                                                           34.7
   Jobsite                                    16.1                    Irishjobs           17.8                           CJ              64.6

       Reed                              13.3                           Indeed          13.5                      Careers24             56.3

CVLibrary                               12.7                            NIJobs      9.8                             Linkedin     29.3

     Indeed                           11.6                            Linkedin    6.1

   Monster                  5.6

   Linkedin           2.4

1) Average # of applications per job ad; Source: TNS

                                                                                                                                  15
UK is close to reach clear leadership in candidate delivery (1/2)

Totaljobs – Candidate Delivery Evolution

Evolution – 2011 till April 2017                                                       Market Comparison
(Index Acquisition Quarter = 100¹)                                                     (Applications per job ad - June 2016²)           18.6

 200                                                  Totaljobs
                                                                                                                  12.7          13.3
                                                                                                    11.6

 150

                    Acquisition

 100
    0
               2012                 2013              2014        2015   2016   2017               Indeed          CV           Reed   Totaljobs
                                                                                 Q1                              Library

1) Source: Internal measurement; YTD per April 2017
2) Source: TNS (Jan-Jun 2016)

                                                                                                                                  16
UK is close to reach clear leadership in candidate delivery (2/2)

Jobsite – Candidate Delivery Evolution

Evolution – 2011 till April 2017                                                            Market Comparison
(Index Acquisition Quarter = 100¹)                                                          (Applications per job ad - June 2016²)

                                                                                                                                            16.1
 200                                                  Jobsite
                                                                                                                       12.7          13.3
                                                                                                         11.6

 150
                                                         Acquisition

 100
    0
               2012                 2013              2014             2015   2016   2017               Indeed          CV           Reed   Jobsite
                                                                                      Q1                              Library

1) Source: Internal measurement; YTD per April 2017
2) Source: TNS (Jan-Jun 2016)

                                                                                                                                       17
Improved candidate delivery enabled success in Germany

StepStone GER Candidate Delivery and Market Share vs. Monster GER
                                                        Relative Candidate Delivery²   Relative Market Share³
                                                                                                                                              5.1x

                                                                                                                                    4.0x

                                                                                                       3.1x        3.2x 3.1x               3.1x
                                                                                                                               2.7x
                                                                                                            2.3x
                                                                          1.9x         1.9x 1.8x
                                  1.5x1      1.4x1        1.5x1
             1.1x1                                                              1.2x
1.0                                                             0.7x
                                      0.4x       0.5x
                     0.3x

                 2007               2008       2009          2010            2011         2012           2013        2014        2015        2016
1) Source: Internal measurement
2) Source: TNS
3) Source: Company reports

                                                                                                                               18
The majority of EBITDA comes from the fastest growing market – Germany

Revenue share by subgroup (FY2016, in %)¹                                                                                     EBITDA share by subgroup (FY2016, in %)²

                                                                                               Continental             UK          SAON

                                          8%                                                                                                                       5%
                                                                                                                                                             13%

                         29%

                                                                  63%

                                                                                                                                                                        82%

1) Minor revenue recorded centrally is not presented,
2) Combined EBITDA of subgroups does not equal sub-segment as non-licensed product development costs of 9.3 EURm are not recorded in operational subgroups

                                                                                                                                                                         19
StepStone Continental continues to provide strong organic growth

Financial development by subgroup¹ (in m €)
                          Revenue                                                                               EBITDA

                                                                                                 +27%
                                                                                    +26%                                          58%       58%     59%
                                                                      +14%                        +27%           50%      52%
                                                    +3%
 StepStone
                                                                                    +27%
 Continental
                                                                      +16%
                                                     +3%
                                                                                                         257                                        151
                                                                                           202                                               117
                                                                             159
                                            133               137                                                                  92
                                                                                                                  66       71

                                            2012              2013           2014          2015          2016     2012     2013   2014       2015   2016

1) All subgroups adjusted to current company structure, minor
  revenue recorded centrally is not presented, non-licensed product             Organic growth                  Reported EBITDA   Reported margin
  development costs are not recorded in operational subgroups

                                                                                                                                             20
Solid organic growth in the UK

Financial development by subgroup¹ (in m €)
                          Revenue                                                                              EBITDA

                                                                                    +8%           +3%                                         29%
                                                                      +11%                                                 25%      24%
                                                   +11%
                                                                                    +67%                -8%       22%                                   20%
  StepStone
     UK                                                               +29%                                                                     38
                                                    +41%                                                                                                24
                                                                                           130          119                 15        19
                                                               60            78                                    10
                                             43
                                            2012              2013           2014          2015         2016      2012      2013     2014      2015     2016

                                       TJG acquired early 2012, Jobsite late 2014                              BREXIT & sales management issues affected 2016 result
                                       Focus has been on product improvements (post acqu.)                     Capitalisation of superior candidate delivery to follow

1) All subgroups adjusted to current company structure, minor
  revenue recorded centrally is not presented, non-licensed product               Organic growth                 Reported EBITDA    Reported margin
  development costs are not recorded in operational subgroups

                                                                                                                                               21
SAON Group provides double digit growth rates and high margins

Financial development by subgroup¹ (in m €)
                          Revenue                                                                        EBITDA

                                                                                                                           39%                       38%
                                                                                                           36%                            36%
                                                                                    +11%                                   37%
                                                                      +15%                                                                34%
                                                    +7%
                                                                                                                                                     30%
      SAON                                                                              +14%
                                                                         +30%
      Group                                        +678%                                                 20%
                                                                             30            34      119
                                                               23
                                                               23            30            34                               8             10          10
                                               3                                                               1
                                            2013              2014           2015          2016             2013           2014           2015       2016

                                       SAON Group acquired in late 2013, CareerJunction in 2015
                                       Growth in all countries around the world

1) All subgroups adjusted to current company structure, minor
  revenue recorded centrally is not presented, non-licensed product               Organic growth         Reported EBITDA          Reported margin   Operational margin
  development costs are not recorded in operational subgroups

                                                                                                                                             22
Increasing customer numbers drive businesses

Customer number by subgroup (k)1

               StepStone Continental                                                            StepStone UK                                      SAON Group
                                                                                         Changed business focus of Jobsite after
                                                                                         acquisition, removed low value contracts
                                    +9%
                                                         64.4
                                   57.7                    7%
             53.9                    8%                                                                  -11%
                                                          17%
               8%                                                                        46.2
                                    18%
              19%                                                                                3%     41.3
                                                                                          12%                   4%     36.9                          +13%
                                                                                                         15%                    4%
                                                                                                                        16%                                       13.4
                                                                                                                                                     12.6
                                                          76%                                                                              10.4             11%   11%
              73%                   74%                                                   84%                                        12%
                                                                                                         81%                                          45%         42%
                                                                                                                        81%                45%

                                                                                                                                           44%        44%         48%

              2014                 2015                  2016                            2014            2015           2016               2014      2015         2016

1) Customer count based on active contracts in a year except StepStone Germany and            large      medium        small
  TJG where end customer (listing owner) are counted. ictjob and Tecoloco not included

                                                                                                                                                      23
Customer retention is key to measure our business success

Customer Retention Rate - Definition

 Retention = Portion of order entry (value) generated by customers returning from the year prior to the reporting period
 The reporting periods conform the full years 2014, 2015 and 2016
 ‘Development’ (increase of order entry in comparison to previous year) of these customers has been disregarded
 Internally, we assess customer retention as following:

                                                                        < 70%     > 70%     > 80%     > 90%
         Retention rate…                                                = Poor    = OK      = Good    = Strategic goal

                                                                                                        24
High customer retention provides a strong base for growth

Customer Retention Rate (in %)1

              StepStone Continental                               StepStone UK                                  SAON Group

             97%                 96%                 97%       96%            95%          95%
                                                                                                                             88%
                                                                                                                   84%
                                                                                                         78%

             87%                 86%                 88%      81%             80%          82%
                                                                                                                   73%       74%
                                                                                                         64%

             2014                2015                2016     2014            2015         2016          2014      2015      2016

                                                            Large customers          Overall Retention

1) All sub groups reported based on pro forma development

                                                                                                                    25
Significant growth potential in all markets

Market growth elements¹                                                 Internal growth elements
Factors are not distinct, but correlate                                 Impact of elements varies across StepStone countries

1. Long-term economic growth is supported by high job
   turnover (In GER and UK 5-6m jobs are turned over annually)

2. Remaining print budgets continue to foster our market
   (In GER print nearly accounts for 50% of recruitment marketing)

3. We operate in markets with massive untapped potential.
   Penetrating the long-tail will drive proportion of ext. advertised
   jobs (In GER & UK we reached ~100k out of 600k customers)

4. The search for talent continues to intensify. Companies have
   an increasing need to advertise jobs, driving up spend per job
   (In GER +4.4% till 2020 is expected)

1) Source: OC&C Strategy Consultants

                                                                                                                     26
We used to be a pure ‘search and apply’ platform

                                                      Career
                                                    guidance              Orientation

                                                                                         Search jobs

                   Career
             development                                                                                  Browse jobs / be found

                                                           Past
                                                      Product portfolio
  Hire / Sign contract
                                                                                                            Research employer

                         Interview                                                                  Research salary

                                       Follow-up                               Check cultural fit
                                     Applications       Application

   Job seeker journey

                                                                                                            27
Until today, we have extended our services along the core

                                                                          Skylight, Good&Co, local
                                                      Career
                                                                                improvements
                                                    guidance                Orientation

                                                                                           Search jobs

                   Career
             development                                                                                   Browse jobs / be found

                                                         Today's
                                                      Product portfolio
  Hire / Sign contract
                                                                                                              Research employer
                                                                                                              Skylight since 2015

                         Interview                                                                   Research salary
                                                                                                     Skylight since 2016
                                       Follow-up                                 Check cultural fit
                                     Applications       Application              Good&Co since 2016

   Job seeker journey

                                                                                                             28a
Until today, we have extended our services along the core

                                                                                 Skylight, Good&Co, local
                                                            Career
                                                                                       improvements
                                                          guidance                 Orientation

                                                                                                   Search jobs

                   Career
             development                                                                                          Browse jobs / be found
                                                                 Today's
   Product innovations improve our core capability – candidate delivery – and are bundled into the standard
                                                  Product portfolio
        offering; No separate prices are charged, but the overall product value increases significantly
  Hire / Sign contract
                 (Exceptions are innovations that support offline needs, e.g. branding. They may be charged differently)
                                                                                                                     Research employer
                                                                                                                     Skylight since 2015

                        Interview                                                                           Research salary
                                                                                                            Skylight since 2016
                                       Follow-up                                         Check cultural fit
                                     Applications              Application               Good&Co since 2016

   Job seeker journey

                                                                                                                    28b
...to become a comprehensive E-Recruiting company

                                                      Career
                                                    guidance              Orientation

                                                                                         Search jobs

                   Career
             development                                                                                  Browse jobs / be found

                                                          Future
                                                      Product portfolio
  Hire / Sign contract
                                                                                                            Research employer

                         Interview                                                                  Research salary

                                       Follow-up                               Check cultural fit
                                     Applications       Application

   Job seeker journey

                                                                                                            29
Strong ramp-up in tech capabilities

Headcount development – On our way to a sales and tech focused company

                                                                                           2,055

                                                 CAGR: 22%
                                                 CAGR: 22%                                 56%

                                                            867

                                                            63%                            34%

                                                            21%

   2007      2008     2009      2010           2011        2012       2013   2014   2015   2016

                             Sales & Customer Service   IT & PD   Other

                                                                                    30
Group products are centrally built and repeatedly integrated

Roadmap – StepStone Group Products

            Pipeline                                   SEED                                 SCALE                            INDUSTRIALISE

        ‘Stay Paranoid’                         ‘New Business Bets’              ‘Secure Long Term Success’                 ‘Core Competencies’

 Career Concierge                          JobMagnt: Mobile job aggreg.        Skylight: Company reviews        16%  StepMatch: Search & Match

 Recruiter market place                    Data Scientist                      Ontotext: Scraping services           Native Apps
                                   23%  GoodCo: Cultural matching               ATSi: Transfer of applic. data        Traffic Practises
                                                                            13%  StepWeb: Social profiles              Marketing automation
                                                                                 Workray: Application insights

   % of total central product spend 2016

                                                                                                                                 31
Our  internalJobMagnt
Our Start-Ups: start-ups: JobMagnt (Mobile job aggregator)

USP
 Mobile first application tool for candidates
 Aggregation of jobs within mobile UX constraints

Business rationale
 Strategic response to mobile usage shift
 Secure additional traffic source (acquisition of
  new and relevant candidates)
 Capture aggregation market share, by selling
  CPC traffic to job sites

                                                     32
Our Start-Ups: StepWeb

  USP
   A new level of insights for recruiters by
    aggregating user profiles from public
    social profiles and CV databases¹

  Business rationale
   Response to growth of network model -
    StepWeb data goes far beyond profiles
          CV databases have high proportion of active job
           seeker and much more reliable and enriched data¹
          Aggregated 21.8m searchable candidate profiles in
           the UK (vs. 21.0m LinkedIn profiles in UK)
   Market trends & insights for customers
   Social Media audience builder

1) OC&C interview feedback suggests CVDB revenues are resistant to substitution by professional networks

                                                                                                           33
                                                                                                           35
Increasing mobile usage challenges jobboards to keep up # of applications

                                             2006 Ø Jan-May 2015     2011
                                                                       Ø Jan-May 2016            2016 2017
                                                                                             Ø Jan-May
                                               Desktop      Mobile   Desktop      Mobile   Desktop     Mobile

Traffic Share (Visits)                          61%          39%      52%         48%       45%        55%

Conversion Rate¹                                21%           8%      28%         15%       29%        17%

      Growing mobile share (with lower conversion rates than desktop) challenge jobboards to keep up
                             the quantity of delivered candidate applications

1) Conversion Rate: Applications per visit

                                                                                                  34
Product and IT investments improve „visit conversion rate” (VCR)

User             Visits              Search        Search Results            Listing Views       Applications                 Hire

  Unique users        Searches per visits        Listing view per searches             Application rate           Hire rate

                                            VCR = Visits Conversion Rate

    Traffic /                                                                                                     Applicant
                                                  Product improvement
  new products                                                                                                 Tracking System

                                                                                                          35
Overall Group VCR improved by 5pps (25%) since 2016

StepStone Group VCR – January 2016 till May 2017

 %                                                                           Positive VCR development is mainly driven by
 25                                                                           product & IT investments. Further influences:
 24                                               23.6%
                                                                   23.4%        Traffic mix / Marketing spend
                                          23.2%           23.2%
 23                                                                             Job volume / Inventory
                                  21.8%
 22                       21.4%              Actual StepStone development
                  20.8%                                                      Between 2015 & 2017 we strongly improved our VCR:
 21
                                                                                Desktop: from 21% to 29%
 20       19.4%
      18.6%                                                                     Mobile: from 8% to 17%
 19
 18
                                                                             Estimated value of +5pps VCR: 74 EURm
 17
 16
  01/16   03/16   05/16   07/16   09/16   11/16   01/17    03/17    05/17

                                                                                                                 36
StepStone Product Vision

                           Video: Career Concierge

                                                     37
We become an even stronger and more comprehensive E-Recruiting firm

 We follow our proven strategy to become an E-Recruiting firm that absorbs growth potential

 We expect to grow faster than all of our local markets

 We want to become the clear #1 in all of our markets

 We foster candidate centric investments to win the war for talent and to complete the product cycle
  (CAPEX is in the range of ~8% of total revenue and will be maintained to secure future growth)

 We expect continued EBITDA growth >10% (CAGR) till 2021

                                                                                           38
Ralf Baumann, CEO
and Thorsten Otte, CFO
Backup.

      40
Jobs Marketing Spend1: Germany with double digit growth forecast in
Online Classifieds, the underlying main market of our assets
                                                                                                                                CAGR
(m €)                                                                        +5%
                                                                                   1,447        Rev. Stream             12-16   16-20        Germany
                                               +2%                                      26 14
                                                                                   72           Referral Schemes         2%      5%
                                                             1,170
                                1,091                                                           Offline Branding         -3%     0%
                                                                     26 12          422
                                        30 11               59
                               55                                                               Recruitment Events       2%      5%
                                                                                   58
                                                               486                      58      Print Classifieds        -8%    -3%
                                                                                   29
                                  676                                                           Online Branding          35%    24%
                                                            23       28 25
                                                                                                Professional Networks    37%    20%
                                                                                    767
                               22        8     7                                                CV Databases             2%      5%
                                                               512
                                  283
                                                                                                Online Classifieds       16%    11%
                                                                                                                                                  CAGR
                                  2012                        2016                  2020
Turned Over Jobs                5.9m                         5.5m                  5.8m                                 -1.5%   1.0%
Spend / Job                     €185                         €212                  €252                                  3.4%   4.4%
1) Figures may not add up to total per year due to rounding / Source: OC&C

                                                                                                                                        41
Breakdown: GER Recruitment Marketing Spend
Generalists catch most of growth within online classifieds

                                                             42
Jobs Marketing Spend1: UK generalist portals expected to grow 6%
within online classifieds
                                                                             +1%                                             CAGR
(m €)                                          +2%                                 1,031     Rev. Stream             12-16   16-20            UK
                                                               991                      10
                                                            10 45                  45        Referral Schemes         2%      1%
                                  906                                                   52
                                                            50
                                        39 9                                       50
                                                                                        44   Offline Branding         4%      0%
                               45                             105
                                                                                   70
                                                                 33
                                  228                       53                               Recruitment Events       2%      1%

                               12        8                                          356      Print Classifieds       -18%    -17%
                                                               297
                                                                                                                                          Generalist
                                  241                                                        Online Branding         44%      7%
                                                                                                                                          portals
                                                                                             Professional Networks   44%      7%          expected to
                                                                                                                                          grow 6%
                                                               398                  404      CV Databases             5%      5%
                                  323
                                                                                             Online Classifieds       5%      0%
                                                                                                                                                   CAGR
                                  2012                        2016                  2020
Turned Over Jobs                4.3m                         5.4m                  6.2m                              5.8%     3.5%
Spend / Job                     €209                         €183                  €165                              -3.3%   -2.5%
1) Figures may not add up to total per year due to rounding / Source: OC&C

                                                                                                                                     43
Breakdown: UK Recruitment Marketing Spend
Deep dive shows that classified generalists grow by 6%

                                                         44
CV databases vs. Professional Networks: OC&C interview quotes

United Kingdom                                                       Germany
“LinkedIn has become a spray and pray platform which makes it
                                                                     “The spend on social networks is quite low today – social is still
more difficult to get people to react. In fact the success rate is
                                                                     in its infancy as a recruiting tool.”
actually dropping – similar to print media”

“CV databases have become a core tool in white collar                “We only need CV databases to find a very small proportion of
recruitment.”                                                        candidates; typically those that have rarer skill sets.”

“CV databases have two massive advantages. Firstly, you can
                                                                     “The major problem is that they get outdated. Monster has a CV
see how recently a CV is updated, which is a great indication of
                                                                     database but I have only ever heard neutral to negative
whether someone is active. Secondly, you get accurate
                                                                     feedback.”
information on them. Neither of those things is true with
LinkedIn.”

                                                                     Note – spend is also lower in Germany vs. UK as Xing – the
“It is fairly typical to have online classifieds and CV databases    dominant social network – has focused on monetising members
together. In some way, it is now become an integrated package”       rather than recruiters, whereas LinkedIn does the reverse

Source: OC&C Strategy Consultants

                                                                                                                     45
StepStone Germany sells listings (online) in form of single and
contingent contracts for 3, 6 or 12 months time

                                                             STARTER                            PROFESSIONAL                                        PREMIUM
                                                   Entry-level solution for easy-to-fill   Individual listing with extra performance   Maximum for successful recruiting of hard-
                                                               vacancies                           for advanced vacancies                          to-fill vacancies
  Duration                                                      30 days                                   30 days                                      30 days
  Dedicated contacts
  Company portrait
  Refresh
  Boost                                                            -
  Individual Layout                                                -
  Highlight Job                                                  € 395                                      € 395
  E-Mail Push                                                    € 595                                      € 595
  Listing Optimisation Plus                                        -                                          -
  30-Day extension                                               € 595                                      € 595                                         € 595
                                                                 € 920                                    € 1,195                                     € 1,695

1) 12-months average April 2016-April 2017
2) Equals eCommerce product offering on homepage

                                                                                                                                                     46
Listings at Totaljobs are sold either via contracts (monthly volume) or
credit packs (valid for 12 months)

                  Standard Job Advert                            Featured Job Advert                               Premium Job Advert
                                                           Showcase company brand and stand out from the
          Entry level adverts for easier-to-fill roles                                                       Secure top position on list and standout
                                                                crowd to attract the best candidates

       Specify location, salary, and key skills              All benefits of a Standard Job Advert         All benefits of a Standard & Featured Ads
       Targeted to candidate criteria / behaviour            Customised banner image                       Includes a background image
       Includes company logo                                 Fully responsive on any device                Carousel images and video content
       Live for 28 days, editable at any time                Tagged as Featured on search results          Tagged as Premium on search results
       Advert appears across 30 aggregators

       Top Job - £ 250 (for one week)                        Top Job - £ 250 (for one week)                Top Job - £ 250 (for one week)
       Nationwide / regional posting £ 1k-3.2k               Nationwide / regional posting £ 1k-3.2k       Nationwide / regional posting £ 1k-3.2k

         £ 350 (rate card price for 1 month)                   £ 455 (rate card price for 1 month)          £ 525 (rate card price for 1 month)

1) 12 months average April 2016-April 2017
2) Does not equal eCommerce product offering on homepage

                                                                                                                                47
Integration of StepMatch, Skylight and Good&Co is progressing

                           Description                       Progress

                                                              Implemented across the group
 StepMatch                 Search & Match Technology          Group wide CV Parsing Live
                                                              Next Step: TJ&JS CV search merge

                                                              Besides Ireland, Skylight launched in Germany - Review
                           Employer reviews & salary           collection in coop with Bild.de started
  Skylight                                                    Ø ratings in line with kununu / Glassdoor
                           information
                                                              Next integrations: TJG, Austria, Belgium, YCG

                           Social and personality fit with    Live in the US, UK and recently in Germany
 Good&Co                   employers, individuals and         V2 App and >20 updates launched since mid ‘16
                           teams                              >500k App downloads; 4.5 App rating

                                                                                                 48
Product descriptions (1/3)

Product                                                           Description

                                                       Seed

                    Mobile first application tool for candidates
JobMagnt
                    Aggregation of jobs within mobile UX constraints

                    Central knowledge hub for data scientists located at various group locations / brands
Data Scientist      Incubation of group-wide data science initiatives (e.g. automated candidate qualification based on CVs and
                     behavior), data science support for product initiatives and knowledge sharing

                    App: Social and personality fit with employers, individuals and teams (based on gamification)
Good&Co
                    Features: company pages, onboarding, team matching

                                                                                                         49
Product descriptions (2/3)

Product                                                            Description
                                                       Scale
                    Employer & salary insights adding quality content to listings and keeping candidates engaged
Skylight
                    Additional features: Company profiles, career reports and insights, communication kits (B2B, B2C)
                    Technology: Company website and jobboard scraping
Ontotext
                    Benefit: Lead generation, job aggregation (database), competitive and market insights, parsing

                    Solution that passes candidate application data directly to the recruiter’s ATS, pre-populating fields where
ATSi                 possible. All job seekers have to do is fill in the gaps. CVs are passed over
                    2 integration types: a) Auto-complete integration of forms, b) API to be consumed by ATS provider

                    Combination of social info & user data to create a single rich and structured profile for every person
StepWeb             Features: Profile database with social media info, enriched search for recruiters, hiring insights, Mahiba:
                     browser extension for candidate research, bespoke audience building for direct marketing

                    Personalised platform that consolidates and tracks jobseeker activities (works for all the job boards they
Workray              use). The platform supports them with routine activities in a largely automated way
                    Features: Consolidation of job alerts, follow-up of post- application process, personalized tips

                                                                                                           50
Product descriptions (3/3)

Product                                                                 Description

                                                        Industrialise

                          Search & Recommendation platform = the basis for job boards to deliver the perfect match
StepMatch                 Features: Offer and CV search, recommendations, behavioral log, text processing and multi-lingual
                           ontology

                          Job search native apps as additional channel for jobseekers
Native Apps               Application with CV upload, job alert subscription
                          App can be localised to any country within 2 month

                          Inhouse traffic acquisition agency with supreme expertise to improve candidate delivery
Traffic Practises
                          Services for the group: Paid traffic services, SEO, App marketing, feed generation tool

                          Marketing automation tool using user profile and behavioral data (email and on-site, cross-device)
Marketing Automation      Services: Marketing automation platform implementation & user behaviour tracking on-site, implementation
                           and management of user life cycle communication and ad hoc campaigns

                                                                                                              51
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