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Amadeus Fire AG Deep Dive Q&A | Margins, AI Strategy, Growth, M&A & Capital Allocation

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Amadeus Fire AG Deep Dive: Q&A

Amadeus Fire Group: Investor Deep Dive into Strategy, Growth, and Digital Innovation

Exclusive Insights from Jörg

In this exclusive investor deep dive, Jörg from Amadeus Fire Group addresses the most commonly asked questions by financial analysts and institutional investors. The video in English explores the company’s current performance, strategic direction, challenges in the personnel services and training segments, and the long-term vision driving value creation.

Macroeconomic Outlook and German Business Sentiment

The conversation opens with a macroeconomic reflection on Germany’s business sentiment. Jörg underlines the pressing need for a positive economic impulse to restore confidence swiftly. He identifies potential triggers, such as geopolitical stability (like a peace deal in Ukraine), renewed free trade partnerships with the US, tax reliefs, or an uptick in GDP, which are crucial for lifting Germany’s sluggish mood.

Operational Challenges and Segment Performance

Despite these challenges, Amadeus Fire Group remains resilient and is actively working on strategies to overcome these obstacles. Moving into operational insights, Jörg dissects the decline in margins across both segments. In personnel services, conversion rates have deteriorated due to increasing client demands for ‘optimal’ rather than just ‘suitable’ candidates. Lengthier negotiations, higher candidate reluctance to switch jobs due to probationary uncertainty, and extended sales cycles have all impacted profitability. The team’s focus on individual mandates has reduced the capacity to handle multiple assignments concurrently.

Concave College and the Government Training Platform

Amadeus Fire subsidiary Concave College faced a visibility challenge in the training segment due to the algorithmic limitations of the new government-backed training platform (formerly Coenet, now “meine-weiterbildung.de”). The system now restricts each training provider to 4,000-course listings, disproportionately affecting larger players like Concave. This visibility bottleneck is the primary reason behind the lower booking volumes in 2024 compared to the stronger growth seen at GFN (+25%), which had fewer courses listed.

Artificial Intelligence as a Productivity Enabler

From a technological perspective, Artificial Intelligence is not viewed as a threat but as a significant productivity enabler. AI accelerates candidate search in personnel services, seamlessly integrates into the new Microsoft-based CRM system, and enhances recruiting and sales workflows. The CRM upgrade is being rolled out across all locations, with full implementation scheduled by the end of June 2024.

AI in Personalized Learning

In the training space, AI is expected to revolutionize personalized learning. Tailored digital courses will adapt in real-time based on individual learner profiles, behaviours, and eye movement. Each learner will receive customized content, improving retention, engagement, and outcomes.

Growth Tracks: Organic, Portfolio Expansion, and M&A

When asked about growth opportunities, Jörg points to several tracks. Amadeus Fire Group is strategically positioned for growth. Personnel services focus on improving conversion rates and nurturing long-term candidate relationships to drive organic growth. In training, portfolio expansion into adjacent learning domains like management, personal coaching, and non-financial topics is on the roadmap. Moreover, Amadeus Fire plans to expand its English-language IT training offerings across Europe, with AI-enabled translation breaking down previous language barriers.

M&A Strategy in the Training Segment

From an M&A perspective, Jörg reveals that acquisition targets in the training segment should fall within the €10–15 million revenue range or contribute €1–10 million in earnings. This strategic growth lever complements their organic initiatives.

Capital Allocation Priorities

On capital allocation, Amadeus Fire adheres to a clear three-tier rule:

  • Invest in operational growth (both organic and inorganic)
  • Maintain a consistent dividend policy (distributing 67% of net profit)
  • Execute share buybacks when appropriate (e.g., the 5% repurchase in Q4 2023)

Major Shareholder: Active Ownership Capital

Jörg also addresses the recent entry of Active Ownership Capital (AOC) as a major shareholder. He clarifies that AOC aligns fully with Amadeus Fire’s long-term growth strategy, particularly in training. Their interest solidified once the share price dipped below €100, and communication with AOC has been transparent and positive since their first notification of stake acquisition.

Competitive Landscape

Lastly, when asked about key competitors, Jörg mentions Hays Group and Michael Page Group as the most comparable rivals—due to their similar focus on white-collar personnel services. Amadeus Fire deliberately avoids blue-collar placements, maintaining its high-skill professional staffing and training specialization.

Conclusion: Navigating Uncertainty with Strategic Clarity

This highly informative video offers an unfiltered view into how Amadeus Fire is navigating a dynamic economic landscape, embracing digital transformation, and positioning itself for resilient growth across its core segments.

Questions
  • Which positive impuse is needed in Germany for a change for the better?
  • what are the reasons for the margin decline in the personnel services and training segments?
  • What is the potential impact of AI on the personnel services and training segments, and how can you adapt to these changes?
  • What are the exciting growth opportunities in the pesonnel services and training segments ?
  • What is the size of the potential acquisition target in the training segment?
  • Who are our most formidable competitors?
  • How do you define Amadeus Fire Group’s capital allocation rules?
  • Is there anything we need to know about the new largest shareholder, AOC?
  • Before we wrap up, is there anything else you would like to share?
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Amadeus Fire AG Video Hub
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IMG 20250415 WA0011 - Amadeus Fire AG Deep Dive Q&A | Margins, AI Strategy, Growth, M&A & Capital Allocation -%sitename%

Joerg Peters
Head of Investor Relations | Amadeus Fire AG

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Release Date

April 15, 2025

Duration

14:18

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