Amadeus FiRe : Quarterly Financial Report 2021

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Amadeus FiRe AG

Quarterly Statement

01.01. - 31.03.2021

www.amadeus-fire.de

2 Amadeus FiRe AG Quarterly Statement First Quarter 2021

Corporate and share figures for the Amadeus FiRe group

Amounts stated in EUR k, Earnings per share in EUR		Q1 2021	Q1 2020		Change in percent
Revenue	87,650		76,422	14.7%
Operating gross profit	47,666		38,389	24.2%
Operating gross profit margin	54.4%		50.2%	-
EBITDA	19,994		14,752	35.5%
Operating EBITA*	14,767		10,598	39.3%
Operating EBITA margin	16.8%		13.9%
EBITA	12,430		8,123	53.0%
Profit for the period	7,942		4,996	59.0%
thereof attributable to non-controlling interests	58		0
thereof attributable to equity holders of the parent	7,884		4,996	57.8%
Earnings per share	1.38		0.96	43.8%
Free Cashflow	13,767		1,918	617.8%
Leverage ratio	2.2		4.0	-

*) Profit from operations before goodwill impairment and amortization of intangible assets from the purchase price allocation (operating EBITA)

3 Amadeus FiRe AG Quarterly Statement First Quarter 2021

Quarterly report for first quarter of 2021 (1 January - 31 March 2021)

General economic and sector-specific conditions

Economic developments were still impacted by the coronavirus pandemic in the first quarter of 2021. The stricter lockdown since the beginning of 2021 negatively influenced economic activity in the first quarter of 2021, although the effects were much less severe than in the second quarter of 2020. As a growing proportion of the population is vaccinated against coronavirus, daily life should start to return to normal from the second half of 2021, providing strong support for economic output in Germany. For the current fiscal year, the German Federal Ministry for Economic Affairs anticipates a year-on-year increase in gross domestic product of 3.0 percent after adjusting for inflation.

The effects of the coronavirus crisis on the labour market are now apparent in terms of unemployment in the first quarter of 2021. Adjusted for seasonal factors, the average level of unemployment was up around 21 percent year-on-year at 2,747,000 in the first quarter of 2021.

Due to the coronavirus crisis, the number of reported jobs paying social insurance contributions declined year- on-year in nearly all economic sectors in March 2021.

General conditions for Personnel Services

According to the German Federal Employment Agency's trend projection, the market for temporary staffing saw a decline of around 13 percent in numbers of temporary workers in 2020 as a whole due to the coronavirus pan- demic. The market for temporary staffing is likely to recover again as the economy as a whole picks up.

As part of the wage agreement in the temporary staffing sector in force until the end of 2022, collectively agreed wages for temporary staff rose by 3.0 percent as at 1 April 2021. No further adjustments are planned in 2021.

Despite the continued lockdown, the labour market is showing clear signs of recovery. The BA-X jobs index from the German Federal Employment Agency, which signals demand for labour, came to 102 points in March 2021 and was thus above the benchmark of 100 for the first time since March 2020. In the first quarter of 2021, the average level of the BA-X came to 99 points, down 13.9 percent as compared to the same quarter of the previous year. The ifo employment barometer, an indicator of German companies' willingness to hire, rose significantly from 94.5 points in February 2021 to 97.6 points in March 2021, thus reaching its highest level since February 2020.

General conditions for Training

The market for state-subsidised training generally develops in parallel with unemployment and has potentially grown as unemployment figures have risen over the course of the coronavirus pandemic. The delay observed in the previous quarters in meeting demand by issuing training vouchers has improved in procedural terms, but has not yet returned to the pre-pandemic level. In the first quarter, the growing number of interested customers eligible for subsidies was not yet reflected in the volume of subsidies activated by the payers. Spending on subsidised professional training and the number of subsidised new customers are below the previous year's level. However, the total budget for subsidised professional training corresponds to that of the previous year. This still indicates delays in spending despite increased unemployment.

4 Amadeus FiRe AG Quarterly Statement First Quarter 2021

Corporate customers' willingness to provide training declined significantly due to the high cost pressure resulting from the first lockdown in March 2020. Only slight improvements in the demand situation can be seen here to date. However, this should change as the vaccination rate increases and public life therefore starts returning to normal.

By contrast, demand from private individuals for further professional qualifications is stable and has not been significantly affected by the coronavirus pandemic. What has changed is that this training is now usually implemented virtually.

Business development

The business development in the first quarter was very successful, given the circumstances. At the end of the quarter in March, there was positive momentum again, particularly in permanent placement. The Amadeus FiRe Group increased its consolidated revenue by 14.7 percent to EUR 87,650k. Operating EBITA grew by 39.3 percent to EUR 14,767k. The organic growth rates, not including the new subsidiary GFN that was consolidated for the first time, came to 6.0 percent for revenue and 36.8 percent for operating EBITA.

Personnel services segment

Despite the ongoing coronavirus crisis, all types of services made a good start to the new financial year in comparison to the previous, pandemic-struck quarters. Segment revenue exceeded the previous year's level by 1.0 percent.

After the recovery in the second half of 2020, however, a further upturn in demand for temporary staffing services was curbed by the renewed lockdown in January. Employee orientation is considerably more difficult with limited presence at the customer company. However, there has been positive momentum again since February.

The pre-crisis level has not yet been reached, with revenue down 6.8 percent on the previous year. Sick leave, which is usually high in the first quarter due to waves of flu and colds, was lower this year. This led to improved utilisation of temporary staff in the period under review. Internalised observation of hygiene and distancing rules and use of the option to work from home, including in temporary staffing, led to this positive development.

The coronavirus pandemic has recently no longer any negative impact on demand for permanent placement services. With revenue growth of around 26.1 percent compared to the same quarter of the previous year, this contributed significantly to the good start to the year. The exceptionally strong March with a new revenue record is particularly noteworthy. With regard to the economic recovery to be expected in the second half of 2021, com- panies' willingness to invest in new employees is increasing. This is confirmed by the development of the BA-X jobs index and the ifo employment barometer.

After a positive and robust performance previously, interim and project management developed very positively again in the first quarter of 2021. Revenue increased by 16.1 percent.

5 Amadeus FiRe AG Quarterly Statement First Quarter 2021

Personnel Services segment				Revenue				Operating gross profit
Amounts stated in EUR k
	Q1 2021		Q1 2020		Change in	Q1 2021	Q1 2020		Change in
						percent					percent
Temporary staffing	37,275	39,999	-6.8%		12,972		13,657	-5.0%
Margin								34.8%		34.1%
Permanent placement	12,501	9,914	26.1%		12,501		9,914	26.1%
Margin								100.0%		100.0%
Interim- and project management	5,936	5,111	16.1%		1,429		1,302	9.8%
Margin								24.1%		25.5%
Personnel Services segment	55,712	55,146	1.0%		26,902		24,930	7.9%

In the first quarter of 2021, there was one billable day fewer than in the same period of the previous year. This corresponds to a negative effect on revenue, gross profit and earnings before taxes of around EUR 0.6 million.

The sales organisation was guided through the crisis with unchanged staff resources and is now taking advantage of the improving market environment. Variable remuneration was considerably higher than in the previous year. The Personnel Services segment generated operating EBITA of EUR 8,185k in the first quarter of 2021 after EUR 7,497k in the previous year.

Training segment

With growth of 50.3 percent to segment revenue of EUR 31,989k, the year got off to a successful start. Organic revenue growth came to 19.2 percent.

Increased demand for subsidised training (B2G) combined with improved processing of training vouchers by the payers resulted in a very good start to the year at COMCAVE. The escalating situation on the labour market represents a general improvement in the demand situation for COMCAVE's business model. In connection with its specialisation in live online teaching by tutors, many additional customers were enabled to participate in the respective training measures from home. The completely digital business model also allows for this short-term scalability.

GFN also benefited from the increased demand for subsidised training (B2G). In connection with the successful digitalisation of teaching, the expectations for GFN's start to the year were exceeded. Demand from corporate customers (B2B) is still significantly limited by the pandemic.

With regard to the training products offered by the companies of Steuer-Fachschule Dr. Endriss, there was a positive effect on demand for courses and seminars for private end customers (B2C) in the first quarter of 2021. By contrast, the market segment for corporate customers (B2B) was still heavily impacted by the effects of the pandemic. The successful changeover to virtual teaching and learning enabled many courses to be held with a lower cost base. Once classroom training is possible, this will be reversed in some cases.