AMADEUS FIRE AG

Quarterly Report • Sep 10, 2021

Amadeus FiRe AG

Half-Year Financial Report for the first half of the 2021 financial year

1 January 2021 to 30 June 2021

Corporate and share figures for the Amadeus FiRe Group

Amounts stated in EUR k. Earnings per share in EUR	1st HY 2021	1st HY 2020	Change in percent
Revenue	178,352	137,433	29.8%
Operating gross profit	95,920	68,477	40.1%
Operating gross profit margin	53.8%	49.8%	-
EBITDA	40,338	25,802	56.3%
Operating EBITA*	29,537	17,387	69.9%
Operating EBITA margin	16.6%	12.7%	-
EBITA	26,120	12,435	110.1%
Profit for the period	15,492	6,965	122.4%
thereof attributable to non-controlling interests	182	65	180.0%
thereof attributable to equity holders of the parent	15,310	6,900	121.9%
Earnings per share	2.68	1.33	101.5%
Free Cashflow	30,076	19,899	51.1%
Leverage ratio	1.8	3.7	-

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

Contents

A Interim Group management report

Economic report 4
Risks and opportunities 13
Forecast 14

B Half-year consolidated financial statements

Consolidated income statement 16
Consolidated statement of comprehensive income 17
Consolidated statement of financial position 18
Consolidated statement of cash flows 19
Consolidated statement of changes in equity 20
financial statements 21

C Other information

Responsibility statement 25
Multi-year overview 26

Introduction

The half-year financial report of Amadeus FiRe AG satisfies the requirements of the applicable provisions of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act and, in accordance with section 115 WpHG, comprises condensed half-year financial statements, an interim Group management report and a responsibility statement.

The consolidated half-year financial report has been prepared in accordance with the applicable IFRS provisions on interim reporting, as published by the IASB and effective in the EU.

The half-year financial report should be read in conjunction with our annual report for the 2020 financial year. It contains a detailed presentation of our business activities and information on the financial figures used.

A Interim Group management report

Economic report

General economic and industry conditions

While 2021 began the year with economic performance down on account of the pandemic, it is now gathering momentum again. Across the whole of Germany, the seven-day incidence rates of new coronavirus infections have fallen – by more than two thirds – as against the first quarter of 2021. In conjunction with the significant progress made in the vaccination campaign, restrictions put in place to curb the coronavirus are gradually being eased.

The German Ministry for Economic Affairs and Energy is forecasting a year-on-year increase in gross domestic product (GDP) of 3 percent (adjusted for inflation) for the current financial year. While GDP had grown by 0.6 percent in 2019, pandemic-gripped 2020 had ended with a strong recession, which was reflected in a gross domestic product of -5.0 percent.

Unemployment declined significantly in May 2021 compared with the previous month. While there is a positive trend looking at the values for the individual months, the level is unchanged at 6.0 percent after adjusting for seasonal effects. However, long-term unemployment stopped rising in May 2021 for the first time since March 2020, remaining flat at a relatively highly level of approximately 1.1 million people – a figure last seen in 2016.

The growing number of people in employment month-on-month, in combination with a rise in job offers, point to the recovery of the labour market. The manufacturing sector in particular is assumed to be especially willing to hire new staff.

In line with unemployment, there has also been marked decline in reduced working hours across all sectors. According to the ifo Institute's estimates, 2.3 million people were working reduced hours in May.

General conditions for personnel services

According to the German Federal Employment Agency's latest trend report for the first four months of 2021, the temporary staffing market was in decline for the first time in more than three years, with a turnaround to a positive trend in the number of employees paying social insurance contributions in the temporary employment field.

Under the wage agreement in the temporary staffing sector in place 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. The scope of collectively agreed wages was expanded to the whole of Germany on 1 April 2021. The previous pay differences between east and west no longer exist.

The labour market is showing clear signs of recovery thanks to the steady progress in vaccination campaigns and the associated easing of restrictions on public life. The German Federal Employment Agency's BA-X jobs index, an indicator for demand for labour, was at 114 points in June 2021, up by five points on May 2021. Precisely this figure was last seen in March 2020, before the effects of the pandemic restrictions on the labour market became apparent. The ifo employment barometer, an indicator of German companies' willingness to hire, rose sharply by 3.5 points to 103.7 in June 2021 after 100.2 points in May 2021. The employment barometer has been climbing steadily since the start of the year.

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. The growing number of customers interested and eligible for subsidies was not yet reflected in the volume of subsidies by payers in the first half of the year. The number of people entering state-subsidised training is therefore 15 percent below the 2019 level, and the second quarter of 2021 is only 9 percent down on the same quarter of 2019. However, the total budget for state-subsidised professional training corresponds to that of the previous year. This still indicates delays in spending despite increased unemployment.

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 has not been negatively affected by the coronavirus pandemic. The digitisation of teaching has led to better access and thus generally more demand as well. Almost all training was held in virtual form in the first half of the year.

Business performance

The very positive business performance continued in the second quarter. Overall, the first half of 2021 has been exceedingly successful. All business areas began to find their way out of the crisis, achieving significant increases in revenue and results and clearly exceeding the pre-crisis level of 2019. The Amadeus FiRe Group increased its consolidated revenue by 29.8 percent as against 2020 to EUR 178,352k. Operating EBITA amounted to EUR 29,537k, an increase of 69.9 percent as against the previous year and 68.0 percent as against the first half of 2019. The profit for the first six months more than doubled, rising by 122.4 percent to EUR 15,492k. The profit for the first half of 2019 was outperformed by 32.4 percent. COMCAVE was included in the earnings statement for the first time from January 2020 and GFN for the first time from October 2020.

The organic growth rates, not including the new subsidiary GFN that was consolidated for the first time, were 20.0 percent for revenue and 67.4 percent for operating EBITA.

Amounts stated in EUR k	1st HY 2021	Change in precent 2021 to 2020	1st HY 2020	1st HY 2019	Change in percent 2021 to 2019
Temporary staffing	76,075	8.8%	69,929	73,241	3.9%
Permanent placement	25,352	43.4%	17,681	20,113	26.0%
Interim- and project management	11,963	27.6%	9,377	6,131	95.1%
Personnel services segment	113,390	16.8%	97,110	99,485	14.0%
Training - organic	51,594	27.9%	40,353	11,421	351.7%*
					5.6%**
Training - GFN	13,518	n/a	0	0	n/a
Training segment	65,104	61.3%	40,353	11,421	470.0%

Revenues in the segments

*Change in percent 2021 to 2019 for training with acquisition of comcave

**Change in percent 2021 to 2019 for training without acquisition of comcave (only Steuer-Fachschule Dr. Endriss)

[Figures do not take into account intercompany consolidations]

Personnel services segment

Business performance over the first half of the year continued to be dominated by the effects of the coronavirus pandemic. Nevertheless, orders for temporary staffing returned to their pre-crisis level at the end of June. The record month for permanent placement of March 2021 was followed a record quarter for permanent placement revenue over the past three months. Revenue in the Personnel Services segment is still experiencing a highly positive trend. The results for the second quarter are Personnel Services segment's strongest to date.

Temporary staffing revenue rose by 8.8 percent year-on-year overall (2019: up 3.9 percent). There was the same number of billable days as in the comparative period. Employee induction with limited presence at customer companies is still a challenge, though this has improved considerably compared to the start of the pandemic. Sick leave remained at a low level in the first half of the year, due in part to working from home and the hygiene measures put in place. The gross profit margin in temporary staffing thus improved by 0.5 percentage points.

Permanent placement achieved a significant increase in revenue of 43.4 percent compared to 2020. It is notable that the record revenues achieved in the first half of 2019 were likewise outperformed by 26.0 percent. The development of the BA-X job index and the ifo employment barometer show the increased willingness on the part of companies to invest in employees and their recruitment. In addition to the opportunities afforded by the positive market environment, Amadeus FiRe assumes that its growth has also led to further increases in market share.

The positive trend of the first quarter continued in interim- and project management, and revenue rose by 27.6 percent year-on-year and by 95.1 percent as against 2019.

The branch organisation was steered through the crisis with no changes in headcount and is now hiring again. The successes achieved have led to significantly higher variable remuneration compared to the previous year. The improved market environment and the stability of the organisation during the crisis were used to expand the company's own market position.

The Personnel Services segment generated operating EBITA of EUR 15,740k in the first half of 2021 after EUR 12,481k in the previous year, an increase of 26.1 percent. Nonetheless, this is still down by 2.8 percent compared to 2019.

Training segment

Training had a successful start to the year with segment revenue rising by 61.3 percent to EUR 65,104k. Organic revenue growth amounted to 27.9 percent.

COMCAVE increased its revenue by 27.6 percent in the first half of the year. Increased demand for state-subsidised training (B2G), combined with improved processing of training vouchers by payers, resulted in an increase of 8.4 percent in the number of people entering state-subsidised training, which translates into a solid demand situation for COMCAVE's business model on the labour market. Furthermore, in conjunction with its specialisation in live online teaching by tutors, COMCAVE enabled many additional customers to participate in the respective training measures from home and was thus able to increase its market share. Its fully digital business model also allows short-term scalability.

GFN benefited from the positive market situation for state-subsidised training as well. Demand among corporate customers is slowly starting to recover, but is still below pre-crisis levels. In conjunction with the first improvements to take effect in integrating the company into the Amadeus FiRe Group and the successful digitisation of teaching operations, GFN exceeded expectations for the start to the year.

The companies of Steuer-Fachschule Dr. Endriss achieved revenue growth of 28.7 percent. Among the training products offered, there was a positive effect on demand for courses and seminars for private customers in the first half of 2021. By contrast, the market segment for corporate customers was still heavily impacted by the effects of the pandemic. The successful changeover to virtual teaching and learning reduced implementation costs while maintaining the same quality, facilitating access to training for interested parties. Depending on the future share of online training as against courses held in person, the cost advantages will be partially reduced again.

Earnings in the Training segment increased significantly in the first half of 2021. Operating EBITA rose to EUR 13,797k in the first six months after EUR 4,906k in the previous year. GFN, which has been included in the income statement since October 2020, generated slightly positive operating EBITA.

Results of operations

Amounts stated in EUR k	1st HY 2021	PPA effects*	1st HY 2021 operating	1st HY 2020	PPA effects	1st HY 2020 operating	Change (abs.)	Change (%)
Revenue	178,352	0	178,352	137,433	0	137,433	40,919	29.8%
Cost of sales	-83,994	1,562	-82,432	-72,151	3,195	-68,956	-13,476	19.5%
Gross profit	94,358	1,562	95,920	65,282	3,195	68,477	27,443	40.1%
Gross profit margin	52.9%	n/a	53.8%	47.5%	n/a	49.8%	4.0%	n/a
Selling and administrative expenses	-68,367	1,855	-66,512	-52,870	1,757	-51,113	-15,399	30.1%
Other income and expenses	129	0	129	23	0	23	106	460.9%
EBITA	26,120	3,417	29,537	12,435	4,952	17,387	12,150	69.9%
EBITA margin	14.6%	n/a	16.6%	9.0%	n/a	12.7%	3.9%	n/a
Financial result	-3,803	0	-3,803	-1,749	0 -1,749		-2,054	117.4%
Profit before taxes	22,317	3,417	25,734	10,686	4,952	15,638		64.6%
Income taxes	-5,900	-585	-6,485	-3,570	-822	-4,392	-2,093	47.7%
Profit after taxes	16,417	2,832	19,249	7,116	4,130	11,246	8,003	71.2%

*PPA effects include amortization of intangible assets from the acquisition of the COMCAVE Group and the GFN Group (not included in 2020)

The Amadeus FiRe Group generated revenue of EUR 178,352k in the first half of 2021, EUR 40,919k or 29.8 percent more than the prior-year figure. Please refer to the section on business performance for details of the rise in revenue.

The operating cost of sales rose by 19.5 percent to EUR 82,432k (previous year: EUR 68,956k). Gross profit increased by EUR 27,443k in absolute terms. The Group's gross profit margin was increased by 4.0 percentage points from 49.8 percent to 53.8 percent. This is due to the Training segment in particular, as this segment has a higher gross profit margin overall and even slightly improved this in 2021.

Operating selling and administrative expenses amounted to EUR 66,512k after EUR 51,113k in the previous year. EUR 6,228k of the increase relates to the GFN Group, which has been consolidated since the start of 2021. Higher selling and administrative expenses in particular also contributed to the rise in staff costs. This is due firstly to the discontinuation of reduced hours, as had been used in 2020, and secondly to higher variable salary components.

Operating EBITA amounted to EUR 29,537k after the first six months (previous year: EUR 17,387k). The Amadeus FiRe Group's operating EBITA thus increased by EUR 12,150k or 69.9 percent, with organic growth of EUR 11,714k. The operating EBITA margin was 16.6 percent (previous year: 12.7 percent).

EUR 2,026k of the increase in the financial result of EUR 2,054k relates to the measurement of the settlement option for shareholders of Steuer-Fachschule Dr. Endriss and Amadeus FiRe Weiterbildung Verwaltungs GmbH.

Amadeus FiRe AG ultimately generated operating earnings after income taxes of EUR 19,249k in the first half of 2021 (previous year: EUR 11,246k), an increase of 71.2 percent.

Assets

Assets and liabilities

Amounts stated in EUR k	30.06.2021	Share %	31.12.2020	Share %	Change (abs.)	Change (%)
Non-current assets	275,241	76.6%	275,771	79.2%	-530	-0.2%
Current assets	83,971	23.4%	72,312	20.8%	11,659	16.1%
thereof cash and cash equivalents	32,028	8.9%	29,990	8.6%	2,038	6.8%
Assets	359,212	100.0%	348,083	100.0%	11,129	3.2%

The Amadeus FiRe Group's total assets rose by EUR 11,129k or 3.2 percent as at 30 June 2021.

Non-current assets were virtually unchanged as against 31 December 2020. Lower intangible assets were offset by higher right-of-use assets on account of PPA depreciation and amortisation. These essentially result from new or renewed property leases.

Current assets increased by EUR 11,659k to EUR 83,971k (31 December 2020: EUR 72,312k). This is mainly due to trade receivables, which were EUR 9,138k higher as at the end of the reporting period. Cash funds were also up by EUR 2,038k.

Capital structure

Amounts stated in EUR k	30.06.2021	Share %	31.12.2020	Share %	Change (abs.)	Change (%)
Equity	120,415	33.5%	113,954	32.7%	6,461	5.7%
thereof on Equity holders of Amadeus FiRe AG	118,982	33.1%	112,535	32.3%	6,447	5.7%
Non-current liabilities	136,297	37.9%	143,096	41.1%	-6,799	-4.8%
thereof other financial liablities	66,863	18.6%	76,746	22.0%	-9,883	-12.9%
thereof leasing liabilities	47,478	13.2%	46,277	13.3%	1,201	2.6%
Current liabilities	102,500	28.5%	91,033	26.2%	11,467	12.6%
thereof other financial liablities	37,625	10.5%	38,134	11.0%	-509	-1.3%
thereof leasing liabilities	15,409	4.3%	15,245	4.4%	164	1.1%
Equity and liabilities	359,212	100.0%	348,083	100.0%	11,129	3.2%

Equity amounts to EUR 120,415k as at 30 June 2021, up from EUR 113,954k as at 31 December 2020. The profit for the period of EUR 15,942k generated by 30 June 2021 was offset by the dividend distribution of EUR 8,863k in June and payments to non-controlling shareholders of EUR 168k. In net terms, equity thus rose by EUR 6,461k or 5.7 percent. The equity ratio also increased from 32.7 percent to 33.5 percent.

Non-current liabilities declined from EUR 143,096k to EUR 136,297k. Lower other financial liabilities were offset by higher liabilities to shareholders resulting from the remeasurement of the settlement options due to repayments.

The increase in current liabilities from EUR 91,033k to EUR 102,500k essentially results from higher contract liabilities as at the end of the reporting period, higher income tax liabilities and higher other non-financial liabilities, in particular on account of higher holiday and bonus obligations.

Financing

Amadeus FiRe repaid EUR 10,000k as agreed in the first half of 2021, thereby reducing the amortising loan to EUR 90,000k. EUR 15,000k of the revolving credit facility of EUR 35,000k was utilised after the first half of the year. There is therefore a credit facility of EUR 20,000k available as at the end of the reporting period.

Gearing amounts to 1.8 (31 December 2020: 2.5) as at 30 June 2021 and was reduced significantly despite the dividend distribution.

Liquidity

Cash flows

			Change (%)
33,428	23,047	10,381	45.0%
-366	4,716	-5,082	-107.8%
-3,332	-3,147	-185	5.9%
-3,352	-3,148	-204	6.5%
-28,058	-7,023	-21,035	299.5%
-10,000	-36	-9,964	27677.8%
-8,551	-6,553	-1,998	30.5%
-8,863	0	-8,863	n/a
2,038	12,877	-10,839	-84.2%
29,990	20,465	9,525	46.5%
32,028	33,342	-1,314	-3.9%
	1st HY 2021	1st HY 2020*	Change (abs.)

* Prior-year items have been adjusted, see Note 5. Change in balance sheet classification in the Annual Report 2020

The cash flow from operating activities increased by EUR 10,381k or 45.0% from EUR 23,047k to EUR 33,428k. This increase is essentially due to the significant improvement in business performance, but is offset by higher working capital commitments.

The cash flow from investing activities remained stable year-on-year at EUR -3,352k (previous year: EUR -3,148k).

2021's cash flow from financing activities was essentially defined by the scheduled repayment of loan liabilities of EUR 10,000k in total and the dividend distribution of EUR 8,863k.

Free Cashflow

Amounts stated in EUR k	1st HY 2021	1st HY 2020	Deviation abs.	Deviation %
Net cash from operating activities	33,428	23,047	10,381	45.0%
Payments for the acquisition of intangible assets and property, plant and equipment	-3,352	-3,148	-204	6.5%
Free cash flow	30,076	19,899	10,177	51.1%

Free cash flow increased significantly from EUR 19,899k to EUR 30,076k.

Employees

The number of external employees placed with customers was 2,463 at the end of the first half of 2021 (previous year: 2,151), a gratifying and significant increase from the crisis situation.

The highly positive trend in demand meant that internal recruitment was resumed in the first half of 2021, and the number of internal staff was increased in both sale and administration. As the 2021 financial year progresses, the goal is to further expand the organisations and also to steadily increase the number of employees placed in temporary employment.

In total, the Amadeus FiRe Group therefore had 3,746 employees, including trainees, as at 30 June.

Number of employees *

	30.06.2021	30.06.2020
Employees working for customer (external employees)	2,463	2,151
Employees in marketing, sales, instructurs and training organization	1,081	878
Administrative staff	146	110
Trainees	56	67
Total	3,746	3,206

*) This list only includes people who were in active employment in the fiscal year

Risks and opportunities

The overall economic situation in Germany, which has been rocked by the coronavirus crisis, is clearly in a phase of recovery. While strict rules and massive contact restrictions were in place in the first quarter, these have now been eased significantly. The German government is forecasting an increase in gross domestic product of 3 percent (adjusted for inflation) for 2021 as a whole. The easing of restrictions and the rapid progress in vaccination campaigns have allowed the economy to gather momentum. The challenges of the coronavirus pandemic are expected to be gradually overcome as the year progresses.

The ifo Business Climate Index climbed to 101.8 points in June 2021. This reflects the rise in global demand now underway, increased consumer spending by private households and increased foreign trade. In the manufacturing sector, however, there are growing concerns due to increased shortages of preliminary products and supply capacity. This could stifle the anticipated global economic recovery.

Despite the rise in demand, the financial situation of companies in German is recovering only very slowly. 43 percent of companies still rate their own financing situation as problematic. Looking at the economy as a whole, 5 percent of companies consider themselves at risk of insolvency.

The coronavirus pandemic still entails general economic risks that are hard to calculate for 2021. However, the opportunities for remote working created in 2020 and 2021 and the progress already made – and still being made – in digitisation have created the conditions for cushioning the economic impact of possible new restrictions.

The potential formation of a new government after Germany goes to the polls this September is also uncertain. A range of very different political constellations still seem possible today, and the stimulus they will mean varies accordingly.

The economic upswing is having a positive impact on the temporary staffing market. The uncertainty still being felt by many companies is an opportunity for the temporary employment especially, as this option allows companies to safeguard their staffing flexibly and at low risk. However, legal regulations could have a negative impact on developments. Higher collectively agreed wages, more holiday entitlements and claims to equal pay are making temporary staffing more expensive.

After a painful 2020 for many, combined with reduced hours and downsizing, companies are now investing again. The associated demand for workers, coupled with a narrow labour market, is having a stimulative effect on Amadeus FiRe's personnel services. Access to suitable candidates will remain challenging for all market participants, including Amadeus FiRe.

The improving economic situation within Germany, the investment this will entail and the demand for well-trained workers should have a positive effect on the Training segment. The easing of coronavirus restrictions and the associated opportunities for holding events in person are also opening new doors. According to current forecasts, the political incentives that will be brought into play in 2021 by the Qualifizierungschancengesetz (German Skills Development Opportunities Act) will have a positive impact on the area of state-subsidised training and skills development. Increased unemployment and the consequences of a possible rise in the number of insolvencies are having a stimulating effect on the state-subsidised market.

There are currently no discernible risks to the Amadeus FiRe Group as a going concern. Please see the risk report in the 2020 annual report for more details.

Forecast

The global economy, and therefore the export-oriented German economy as well, are expected to increasingly recover from the recession caused by COVID-19 as the 2021 financial year goes on. Deutsche Bundesbank is assuming that German gross domestic product will grow by 3.0 percent in the 2021 calendar year. With the national emergency brake and the government-regulated duty to allow employees to work from home no longer in effect, things are slowly returning to normal. The economy is positive and the consumer climate is also improving tangibly as measures are being eased. Companies are now willing to build up their workforces again and to invest in new and existing staff.

The Amadeus FiRe Group's performance has been particularly successful in the first half of 2021. Revenue and operating EBITA alike have developed more positively than expected.

Contrary to original expectations, the Personnel Services segment has already improved compared to the pre-crisis year of 2019 in the first half of 2021. All services are enjoying a dynamic recovery. A reversal of the performance situation and the normalised market environment currently appears unlikely. The outlook for the second half of the year is correspondingly positive.

In the Training segment, the submarket of state-subsidised adult education is expected to remain muted. Unemployment appears to have stabilised for now. However, many companies are at a high risk of insolvency, which could lead to a further rise in demand for this anti-cyclical submarket. Contrary to original expectations, GFN is already making a positive contribution to earnings. This development should continue.

A fundamental change is not anticipated in training business with private and corporate customers. Sentiment in the private customer sector can still be described as positive, while a hesitant normalisation of demand is apparent among corporate customers. The at least gradual return to events being held in person in the Training segment means that a structural increase in operating expenses is expected as compared to the first half of the year.

At the start of 2021, it was possible to serve the rising demand in both segments in the best possible way with the existing branch and training organisation. To safeguard the successes achieved as the year progresses and for future years, more will be invested in the expansion of operations. In addition to further improvements in the infrastructure, recruitment as a whole will be increased as well.

Based on the operating EBITA for 2020 of EUR 41.1 million, operating earnings were expected to grow by more than 15 percent for 2021 as a whole as the momentum of business improves.

The Management Board is rising this forecast and predicting significantly more dynamic growth for 2021. It now expects to improve on the previous year's earnings by at least 50 percent. The threshold of EUR 60 million for operating EBITA should therefore be clearly exceeded. This is subject to the underlying assumption of no further economic distortion as witnessed when the pandemic began in 2020.

For further information, please see the forecast in Part B (combined management report) of the 2020 annual report.

The half-year financial report as at 30 June 2021 has been neither reviewed nor audited in accordance with section 317 HGB.

Frankfurt/Main, 22 July 2021

Robert von Wülfing Dennis Gerlitzki Thomas Surwald Chairman of the Management Board Management Board Management Board

B Half-year consolidated financial statements

Consolidated income statement

Amounts stated in EUR k. earnings per share in EUR	Notes	1st HY 2021	1st HY 2020	Q2 2021	Q2 2020
Revenue	4	178,352	137,433	90,702	61,011
Cost of sales		-83,994	-72,151	-42,601	-32,521
Gross profit		94,358	65,282	48,101	28,490
Selling expenses		-53,438	-42,686	-26,694	-19,281
thereof impairment of financial assets		-27	-388	54	-83
General and administrative expenses		-14,929	-10,184	-7,778	-4,890
Other operating income		157	84	72	27
Other operating expenses		-28	-61	-11	-34
Profit from operations		26,120	12,435	13,690	4,312
Finance income		4	1	3	1
Finance costs		-3,807	-1,750	-2,607	-951
Profit before taxes		22,317	10,686	11,086	3,362
Income taxes		-5,900	-3,570	-2,938	-1.250
Profit after taxes		16,417	7,116	8,148	2,112
Profit attributable to non-controlling interests recognized under liabilities		-925	-151	-598	-143
Profit for the period		15,492	6,965	7,550	1,969
Attributable to,
Non-controlling interests		182	65	124	65
Equity holders of Amadeus FiRe AG		15,310	6,900	7,426	1,904
Basic/diluted earnings per share		2.68	1.33	1.30	0.37

Consolidated statement of comprehensive income

Amounts stated in EUR k	Notes	1st HY 2021	1st HY 2020	Q2 2021	Q2 2020
Profit for the period		15,492	6,965	7,550	1,969
Other comprehensive income		0	0	0	0
Total comprehensive income		15,492	6,965	7,550	1,969
Attributable to:
Non-controlling interests		182	65	124	65
Equity holders of Amadeus FiRe AG		15,310	6,900	7,426	1,904

Consolidated balance sheet 1st half year 2021

Amounts stated in EUR k	Notes	30.06.2021	31.12.2020
ASSETS
Goodwill		171,942	171,942
Other intangible assets		32,105	35,231
Fixed assets		8,637	7,882
Right-of-use assets		61,186	59,764
Deferred tax assets		1,371	952
Total non-current assets		275,241	275,771
Trade receivables		44,081	34,943
Other assets		7,787	7,255
Income tax assets		75	124
Cash and cash equivalents	3	32,028	29,990
Total current assets		83,971	72,312
Total ASSETS		359,212	348,083
EQUITY AND LIABILITIES
Subscribed capital		5,718	5,718
Capital reserves		61,944	61,944
Retained earnings		51,320	44,873
Total equity attributable to equity holders of Amadeus FiRe AG		118,982	112,535
Non-controlling interests		1,433	1,419
Total equity	2;3	120,415	113,954
Lease liabilities	3	47,478	46,277
Other financial liabilities	3	66,863	76,746
Liabilities to shareholders/partners	4	15,733	13,707
Other non-financial liabilities		1,974	1,669
Deferred tax liabilities		4,249	4,697
Total non-current liabilities		136,297	143,096
Lease liabilities	3	15,409	15,245
Other financial liabilities	3	37,625	38,134
Liabilities to shareholders/partners		2,417	1,968
Trade payables		9,140	8,153
Contract liabilities		6,875	4,196
Income tax liabilities		3,541	1,523
Other non-financial liabilities		27,493	21,814
Total current liabilities		102,500	91,033
Total LIABILITIES		359,212	348,083

Consolidated cash flow statement*

Amounts stated in EUR k	Notes	1st HY 2021	1st HY 2020	Q2 2021	Q2 2020
Profit after taxes		16,417	7,116	8,148	2,112
Income taxes		5,900	3,570	2,938	1,250
Finance income		-4	-1	-3	-1
Finance costs		3,807	1,750	2,607	951
Amortization of intangible assets and depreciation of property, plant and equipment and right-of-use assets		14,218	13,366	6,654	6,737
Earnings before interest, taxes, depreciation and amortization		40,338	25,801	20,344	11,049
Non-cash transactions		-12	-989	-83	-813
Changes in operating working capital
Trade receivables and other assets		-9,165	3,054	-2,227	6,750
Other assets		-531	-3,057	-667	-1,839
Trade payables		668	-5,804	340	-292
Contract liabilities		2,678	1,005	2,111	-300
Other liabilities		5,984	9,518	924	8,116
Interest and commissions paid		-1,832	-1,745	-716	-953
Income taxes paid		-4,700	-4,736	-2,441	-2,182
Net cash from operating activities		33,428	23,047	17,585	19,536
Interest received		5	1	4	1
Cash received from disposals of intangible assets and property, plant and equipment		15	0	1	0
Cash paid for the acquisition of intangible assets and property, plant and equipment		-3,352	-3,148	-1,276	-1,555
Net cash used in investing activities		-3,332	-3,147	-1,271	-1,554
Cash repayments of loans		-10,000	-36	-5,000	-36
Cash repayments of lease liabilities		-8,272	-6,306	-4,140	-3,210
Interest payments on lease liabilities		-279	-247	-142	-131
Cash paid to non-controlling interests		-644	-434	-65	-434
Dividends paid to equity holders of Amadeus Fire AG		-8,863	0	-8,863	0
Net cash used in/from financing activities		-28,058	-7,023	-18,210	-3,811
Change in cash and cash equivalents		2,038	12,877	-1,896	14,171
Cash and cash equivalents at the beginning of the reporting period		29,990	20,465	33,924	19,171
Cash and cash equivalents at the end of the reporting period (consolidated balance sheet)		32,028	33,342	32,028	33,342

*Prior-year items have been adjusted, see Note 5. Change in balance sheet classification in the 2020 Annual Report

Consolidated statement of changes in equity

Amounts stated in EUR k	Subscribed capital	Capital reserves	Retained earnings	Total equity attributable to equity holders of Amadeus FiRe AG	Non-control ling interests	Total equity
As of 01.01.2020	5,198	11,247	33,551	49,996	963	50,959
Total comprehensive income	0	0	6,900	6,900	65	6,965
As of 30.06.2020	5,198	11,247	40,451	56,896	1,028	57,924
As of 01.01.2021	5,718	61,944	44,873	112,535	1,419	113,954
Total comprehensive income	0	0	15,310	15,310	182	15,492
Dividends paid to non-controlling interest shareholders	0	0	0	0	-168	-168
Dividends	0	0	-8,863	-8,863	0	-8,863
As of 30.06.2021	5,718	61,944	51,320	118,982	1,433	120,415

Notes to the half-year consolidated financial statements

01 Principles and methods

General principles

Amadeus FiRe AG is a stock corporation under German law. Its registered office is Hanauer Landstrasse 160, Frankfurt/Main, Germany. The company is entered in the commercial register of the Frankfurt Local Court, Department B, under 45804. Amadeus FiRe AG has been listed on the regulated market of the Frankfurt Stock Exchange since 4 March 1999 and was admitted to the Prime Standard on 31 January 2003. Amadeus FiRe AG's shares have been included in Deutsche Börse's SDAX index since 18 March 2019.

The half-year consolidated financial statements have not been audited. They were approved for publication by the Management Board on 21 July 2021.

Accounting principles

The condensed interim consolidated financial statements of Amadeus FiRe AG (referred to hereinafter as Amadeus FiRe) as at 30 June 2021 were prepared in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), as effective in the European Union as at 30 June 2021. These financial statements accompanying the interim report therefore contain all the information and disclosures necessary for condensed interim financial statements in accordance with IFRS.

In conjunction with the preparation of the condensed consolidated interim financial statements in accordance with IAS 34, to a certain degree, estimates and assumptions must be made that affect the value of assets and liabilities and the amounts of income and expenses in the reporting period. The actual later values may differ from the amounts shown in the interim report.

The results shown in the interim report do not necessarily serve as a basis for forecasts of future business performance.

The accounting policies used in the half-year consolidated financial statements are the same as those used in the consolidated financial statements for the 2020 financial year. The half-year consolidated financial statements should therefore be read in conjunction with those consolidated financial statements.

Accounting policies applied for the first time

Amadeus FiRe is applying the following amendments to the existing standards for the first time in the 2021 financial year; these amendments do not affect, or only immaterially affect, the presentation of the financial statements:

• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest Rate Benchmark Reform – Phase 2

• Amendments to IFRS 16: COVID-19-Related Rent Concessions

02 Material transactions

Dividend

By way of resolution of the Annual General Meeting on 27 May 2021, a dividend of EUR 1.55 per share was distributed to the shareholders of Amadeus FiRe AG, resulting in a total cash outflow of EUR 8,863k. A dividend was not distributed in the previous year owing to the coronavirus pandemic.

GFN purchase price allocation

Amadeus FiRe acquired the GFN Group effective 29 September 2020. Its purchase price allocation was still provisional as at 31 December 2020; the total purchase price was EUR 6,200k. The final purchase price is currently being determined by arbitration. The purchase price allocation is therefore still provisional.

03 Capital management

Equity ratio
Amounts stated in EUR k	30.06.2021	31.12.2020
Equity	120,415	113,954
Total assets	359,212	348,083
Equity ratio	33.5%	32.7%

Amadeus FiRe's equity rose by EUR 15,492k in the first half of the year as a result of its earnings. This was offset by the dividend distribution of EUR 8,863k and the profit distribution to non-controlling interests of EUR 168k. In total, the equity ratio therefore rose from 32.7 percent as at 31 December 2020 to 33.5 percent as at 30 June 2021.

Leverage ratio

Amounts stated in EUR k	30.06.2021	31.12.2020
Financial liabilities	104,488	114,880
Lease liabilities	62,887	61,522
Cash and cash equivalents	-32,028	-29,990
Net financial debt	135,347	146,412
EBITDA	74,788	59,300
Leverage ratio	1.8	2.5

The ratio of net debt was reduced to 1.8 as at 30 June 2021, following a reduction to 2.2 as at 31 March 2021.

04 Segment reporting

The two reportable segments are as follows:

Segment reporting

		Personell services	Training		Reconciliation		Group
Amounts stated in EUR k				1st HY 2021 1st HY 2020 1st HY 2021 1st HY 2020 1st HY 2021 1st HY 2020 1st HY 2021				1st HY 2020
External revenue	113,259	97,092	65,093	40,341	0	0	178,352	137,433
Internal revenue	131	18	11	12	-142	-30	0	0
Total revenue	113,390	97,110	65,104	40,353	-142	-30	178,352	137,433
Gross profit	53,617	43,051	40,808	22,254	-67	-23	94,358	65,282
Gross operating profit	53,617	43,051	42,370	25,449	-67	-23	95,920	68,477
Gross operating profit margin	47.3%	44.3%	65.1%	63.1%	-	-	53.8%	49.8%
EBITDA	19,300	15,754	21,038	10,048	0	0	40,338	25,802
Amortization and depreciation	-3,560	-3,273	-10,584	-10,094	0	0	-14,144	-13,367
Impairment	0	0	-74	0	0	0	-74	0
EBITA	15,740	12,481	10,380	-46	0	0	26,120	12,435
PPA- effects	0	0	-3,417	-4,952	0	0	-3,417	-4,952
Operating EBITA	15,740	12,481	13,797	4,906	0	0	29,537	17,387
Operating EBITA margin	13.9%	12.9%	21.2%	12.2%	-	-	16.6%	12.7%
Segment assets*	111,305	75,642	247,317	260,272	590	-922	359,212	334,992
thereof goodwill	30,364	1,802	141,578	169,904	0	0	171,942	171,706
Investments	618	970	3,052	2,178	0	0	3,670	3,148

*Excluding carrying amounts of equity investments and receivables from affiliates

The reconciliation to revenue and EBITA includes the cross-segment consolidation of the exchange of services between the segments.

The reconciliation to assets includes deferred tax items not attributed to either segment.

Segment earnings therefore break down as follows:

Reconciliation of segment result

Amounts stated in EUR k	1st HY 2021	1st HY 2020
Operating EBITA (segment result)	29,537	17,387
PPA-effects	-3,417	-4,952
EBITA = profit from operations	26,120	12,435

The following table shows a breakdown of Amadeus FiRe's contract revenue by type and customers:

Breakdown of revenues from customer

	Personnel services		Training		Reconcilation		Group
Amounts stated in EUR k	1st HY 2021	1st HY 2020	1st HY 2021	1st HY 2020	1st HY 2021	1st HY 2020	1st HY 2021	1st HY 2020
Total revenue	113,390	97,110	65,104	40,353	-142	-30	178,352	137,433
Satisfaction of performance obligation and recognition of revenue
Recognition at a point in time	25,352	17,592	994	248	-38	-18	26,308	17,822
Recognition over time	88,038	79,518	64,110	40,105	-104	-12	152,044	119,611
Revenue by customer
Public sector	7,087	5,665	51,862	30,863	0	0	58,949	36,528
Corporate customers	106,303	91,445	6,711	4,056	-142	-30	112,872	95,471
Private customers	0	0	6,531	5,434	0	0	6,531	5,434

05 Financial instruments

The liabilities in connection with the settlement obligation to shareholders of Dr. Endriss GmbH & Co. KG of EUR 6,811k (31 December 2020: EUR 5,108k) and the purchase price liability to Surwald Holding UG (limited) of EUR 8,180k (31 December 2020: EUR 7,856k) are measured at fair value through profit or loss.

The accounting policies used were retained in the current financial year. The increase of EUR 2,027k to EUR 14,991k is due to the adjustment of parameters, including as a result of the amended forecast for the current financial year.

Both liabilities are still assigned to level 3 in accordance with IFRS 13.

06 Events after the end of the reporting period

There were no significant events after the end of the reporting period.

Frankfurt/Main, 22 July 2021

Robert von Wülfing Dennis Gerlitzki Thomas Surwald Chairman of the Management Board Management Board Management Board

C Other information

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Frankfurt/Main, 22 July 2021

Robert von Wülfing Dennis Gerlitzki Thomas Surwald Chairman of the Management Board Management Board Management Board

Amounts stated in EUR k, Earnings per share in EUR	1st HY 2017	1st HY 2018	1st HY 2019	1st HY 2020	1st HY 2021
Revenues	88,695	97,818	110,906	137,433	178,352
Revenues personnel services segment	79,103	87,083	99,485	97,092	113,390
Revenues training segment	9,592	10,735	11,421	40,341	65,104
Operating gross profit	39,206	45,514	51,711	68,477	95,920
Operating gross profit margin	44.2%	46.5%	46.6%	49.8%	53.8%
EBITDA	14,779	15,874	20,860	25,802	40,338
EBITA	14,287	15,193	17,585	12,435	26,120
EBITA margin	16.1%	15.5%	15.9%	9.0%	14.6%
Operating EBITA	14,287	15,193	17,585	17,387	29,537
Operating EBITA margin	16.1%	15.5%	15.9%	12.7%	16.6%
EBT	14,291	15,199	17,466	10,686	22,317
Tax	-4,418	-4,752	-5,413	-3,570	-5,900
Profit after tax	9,873	10,447	12,053	7,116	16,417
Profit attributable to non-controlling interests disclosed under liabilities	-304	-288	-357	-151	-925
Profit for the period	9,569	10,159	11,696	6,965	15,492
Earning per share (in EUR)	1.82	1.93	2.23	1.33	2.68
Employees as of 30.06.	2,660	2,791	3,059	3,206	3,746
Employees on customer assignment as of 30.06.	2,169	2,257	2,467	2,151	2,463
Per capita revenue	33	35	36	43	48
Balance sheet total	63,449	67,413	91,130	334,992	359,212
Stockholders' equity	35,935	36,699	38,439	57,924	120,415
Equity ratio	56.6%	54.4%	42.2%	17.3%	33.5%
Return on equity YTD	26.6%	27.7%	30.4%	12.0%	12.9%
Cash and cash equivalents	29,828	28,845	26,930	33,342	32,028
Net financial debt	29,828	28,845	5,338	-190,256	-135,347
Debt-equity ratio	N/A	N/A	N/A	3.7	1.8
Net cash from operating activities	10,731	9,488	11,899	23,047	33,428
Net cash from operating activities per share	2.06	1.83	2.29	4.43	5.85
Net cash from investing activities	-1,007	-2,179	-1,619	-3,147	-3,332
Net cash from financing activities	-20,344	-21,867	-27,909	-7,023	-28,058

Multi-year overview of the Amadeus FiRe Group for the first half year

(Figures before 2019 without IFRS 16 and therefore only comparable to a limited extent)

Die Amadeus FiRe Group online:

www.amadeus-fire.de www.comcave.de www.endriss.de www.gfn.de www.ifrs-akademie.de www.taxmaster.de