1
Interim Report H1/2021
2
18
August 2021
Highligh
ts
Financial highlights
•
Revenue increased by 6% in Q2 2021 to DKK
426m (Q2 2020: 402m).
•
EBITDA increased by 12% in Q2 2021 to DKK
31m (Q2 2020: 28m).
•
Profit before tax increased by 14% to DKK 13
m
(Q2 2020: 12m).
•
Extraordinary dividend pay-out of DKK 6 per
share, amounting to DKK 776m in total.
All numbers and comments in the
H1
report are on
the continued business, thus excluding discontin-
ued operations (excluding the divested entities To
-
Increase and Baltics).
Operational highlights
•
Our new CEO, Søren Krogh Knudsen, joined
Columbus 7 June 2021.
•
High utilization in our consultancy business ris-
ing from 55% to 59%.
S
olid development in second quarter of 2021, where progress in key business
areas
, tight cost control and high efficiency in the services business have driven
t
he results.
”We are satisfied with the result for Q2 and the first 6 months overall. Columbus has reached the first milestones in
executing the Focus23 strategy, comprising the re
-organization of the company in a new customer focused matrix
structure. It is time to unleash the full potential of our skilled employees, relevant end
-to-end solutions and the
increasing demand for digitalization services”, says CEO and President Søren Krogh Knudse
n.
Contents
2
3
4
5
8
9
10
Highlights
Solid results –
momentum
implementing the
Focus23 strategy
Key figures and ratios
High market demands
result in 6% revenue
growth in Q2 2021
Outlook for 2021
Statement by
management
Financial statements
Columbus A /S
Tel: +45 70 20 50 00
3
Increased demand and high efficiency
Columbus delivered a solid Q2 with 6%
revenue growth which almost compen-
sated for the revenue decline from Q1. To-
tal revenue for the first 6 months is in line
with last year amounting to DKK 847
(2020: DKK 859m.).
During Q2, we have experienced an in-
creased demand for our services and solu-
tions in our markets. Especially our key
strategic business areas Digital Com-
merce, Data & Analytics and Customer Ex-
perience delivered strong growth in Q2 as
expected.
EBITDA grew by 12% in Q2 which is due
to continued high efficiency in our consul-
tancy business. In order to keep up with
the demand from our customers we are in
the process of staffing up in all areas of
the business.
We are satisfied with the results for the
first six months of the year, which
undoubtedly has been driven by team ef-
fort and our employees’ commitment to
Columbus’ customers.
Strong foundation for growth
For many years, Columbus has been lead-
ing within the ERP space in our key indus-
tries and geographical markets and has at
the same time managed to stay relevant
and innovative. In recent years, Columbus
has established a strong market position
within digital transformation offering end-
to-end digital solutions which has opened
new opportunities to help our customers in
their entire digital transformation journey.
Customer-focused and solution-driven
With the new strategy, Focus23, Colum-
bus has framed the next step in our growth
journey to become digital trusted advisor
for our customers. The strategy is being
executed as we speak, prioritizing the Fo-
cus & Simplify initiatives comprising a new
operating model. In Q2, we reorganized
Columbus, refocusing the company
around our larger customers with local
Market Units and around solutions with
global Business Lines. As we continue to
build on our strategy this new setup leads
to a simplified operation, increased ac-
countability, faster decision-making and
empowering our employees to a greater
extent.
Time to claim a larger market share
When I look at Columbus, I see a com-
pany in good progress with increasing mo-
mentum in executing the Focus23 strat-
egy, with talented and passionate people,
relevant end-to-end solutions portfolio, and
global innovation capabilities. I also see a
potential for more, and my goal is to fully
unleash the true potential of the company.
With the Focus23 strategy I believe that
we are on the right track to take Columbus
to the next level and conquer our share of
the market within the digital advisory
space – always with the purpose of deliv-
ering value to our customers.
Solid results – momentum implementing the
Focus23
strategy
Columbus delivered a
satisfactory second quarter of 2021 with progress across the majority of
the
business, thus accelerating recruitment of new talents to keep up with market demand. A
major step of the Focus23 strategy
is being executed to refocus the company around the larger
customers
in our key industries. It is time to claim a larger market share.
Søren Krogh Knudsen
CEO & President
4
Key figures and ratios
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Income related figures
Sale of services
348,433 323,820 697,674 693,220 1,261,455
Sale of products
77,917 77,927 149,297 165,419 316,877
Net revenue
426,350 401,747 846,971 858,639 1,578,332
Recurring revenue % of total revenue
24.1% 23.0% 22.8% 21.6% 18.6%
EBITDA before
share-based payment 31,630 29,267 87,072 69,806 138,705
EBITDA
31,328 28,051 86,468 67,373 134,226
EBIT
18,517 15,022 60,526 40,295 80,995
Net financial items
-5,074 -3,212 580 -5,042 -16,852
Profit before tax
13,443 11,810 61,106 35,253 64,143
Profit after tax, continuing operations
9,466 10,483 54,559 31,060 53,734
Profit after tax, discontinued operations
-132 9,365 720,454 11,529 -5,172
Profit after tax
9,334 19,848 775,013 42,589 48,562
DKK ´000
30 Jun 2021
30 Jun 2020
31
Dec 2020
Balance sheet*
Non
-current assets 975,021 1,164,995 987,440
Current assets
518,273 510,686 438,944
Assets classified as held for sale
0 0 214,481
Total assets
1,493,294 1,675,681 1,640,865
Group
shareholder equity 773,522 690,770 712,421
Minority interests
0 3,204 3,184
Total liabilities
719,772 981,707 831,369
Total liabilities relating to assets
classified as held for sale
0 0 93,891
Total equity and liabilities
1,493,294 1,675,681 1,640,865
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Investments in tangible assets
1,603 851 3,637 2,243 3,832
Cash flow
Cash flow from operating activities
-10,246 133,102 6,095 169,074 190,862
Cash flow from investing activities
-82,745 -51,816 722,063 -96,700 -127,830
Cash flow from financing activities
-633,951 -10,703 -672,907 -22,168 -43,972
Total net change in cash and cash
equivalents
-726,942 70,583 55,251 50,206 19,060
Key ratios
EBITDA
-margin 7.3% 7.0% 10.2% 7.8% 8.5%
Operating profit margin
4.3% 3.7% 7.1% 4.7% 5.1%
Equity ratio**
51.8% 41.2% 51.8% 41.2% 43.4%
Return on equity**
1.3% 2.9% 105.9% 6.3% 7.0%
Return on invested capital
(ROIC)** 2.9% 2.1% 8.9% 5.5% 11.9%
Number of shares
129,276 124,622 129,276 124,622 124,622
Average number of shares
127,083 124,622 127,083 124,622 124,622
Book value of equity per share (BVPS)
6.62 5.54 5.98 5.54 5.72
Earnings per share (EPS) from
continuing operations
0.07
0.08
0.43
0.25
0.43
Cash flow per share
-0.08 1.07 0.05 1.36 1.53
Share price, end of period
10.64 7.47 10.64 7.47 11.24
Average full time employee for the
period
1,632 1,729 1,648 1,825 1,707
*All 2020 balance sheet items include Baltics which were sold March 2021. Balance sheet items as of
June 2020
include To
-Increase which were classified as held for sale as of Q3 2020
*
* Key ratios are calculated with balance sheet items including assets classified as held for sale
The key figures and financial ratios above have been calculated in accordance with Danish Finance
Society' "Recommendation & Financial Ratios”
5
Revenue development
Columbus realised a revenue of DKK
426m in Q2 2021 corresponding to an in-
crease of 6%. Organically, the revenue in-
creased by 5%. The increase is partly due
to high demand from our customers and
the fact that Q2 last year was hit hard by
the uncertainty related to the Covid-19
pandemic. The revenue growth in Q2 2021
comes from all our Market Units except
Russia and US.
With the revenue growth in Q2, the reve-
nue gap from Q1 is almost closed leaving
a cumulated decline in organic revenue of
2% in H1 2021. The revenue decline is
caused by all Market Units except Colum-
bus Norway, which has delivered signifi-
cant growth in H1 2021.
The positive development in Norway is
driven by all Business Lines. In addition,
we have had a successful integration of
our acquisitions of Advania Business Solu-
tions, which we made in January last year
where we have achieved the expected
synergies.
EBITDA improved significantly
In Q2 2021 reported EBITDA increased by
12% to DKK 31m. Normalized EBITDA
1
in-
creased by 3% providing normalized
EBITDA-margin of 7.4%.
Columbus realised an EBITDA increase of
28% in H1 2021 amounting to DKK 86m.
Normalized EBITDA
1
increased by 18%
providing normalized EBITDA-margin in
H1 2021 to 10.3%.
The EBITDA increase is mainly driven by
significantly higher customer work amount-
ing to 59% vs. 55% last year and by cost
savings, in particular less travel costs and
employee related costs.
High market demands result in 6% revenue
growth
in Q2 2021
Development in customer work
1
EBITDA adjusted for provision for loss-making
contract
29%
55%
16%
H1 2020
Non-chargeable
Chargeable
Other
27%
59%
14%
H1 2021
Non-chargeable
Chargeable
Other
DKKm
Q2 2021 Q2 2020 ∆% H1 2021 H1 2020 ∆%
Revenue reported
426 402 6% 847 859 -1%
Foreign exchange
-5 0 0% -4 0 0%
Organic revenue
421 402 5% 843 859 -2%
EBITDA reported
31 28 12% 86 67 28%
Adjustment of provision for loss making contract
0 2 -100% 0 6 -100%
Normalized EBITDA
1
31 30 3% 86 73 18%
Normalized EBITDA
-margin 7.4% 7.6% -1.8% 10.3% 8.5% 20.0%
6
Development in service revenue and
business segments
Service revenue increased by 8% to DKK
348m in Q2 2021. The increase is driven
by all our Business Lines, where espe-
cially Columbus Care, Digital Commerce
and Data & Analytics increased with dou-
ble digit numbers, 18%, 16% and 33%
growth compared to Q2 last year.
In H1 2021, service revenue increased by
1% to DKK 698m. The increase is driven
by all our Business Lines except Cloud
ERP, which is still impacted by the re-
duced number of consultants compared to
last year.
The high demand for digital transformation
we saw in Q1 continued into Q2 and in
particular our new strategic Business
Lines such as Digital Commerce, Data &
Analytics and Customer Experience &
Engagement are delivering satisfactory
growth.
Profit before tax
Columbus realised a profit before tax of
DKK 13m in Q2 2021, corresponding to an
increase of 14%. The increase is mainly
driven by the positive development in
EBITDA.
In H1 2021, Columbus realised a profit be-
fore tax of DKK 61m, corresponding to an
increase of 73%. The increase is mainly
driven by the positive development in
EBITDA and financial income from cur-
rency adjustments.
Increase in recurring revenue
In Q2 2021, recurring revenue increased
by 11% to DKK 103m (Q2 2020 DKK
93m).
The recurring revenue continues to consti-
tute a larger part of the total revenue with
Q2 recurring revenue constituting 24% of
total revenue (Q2 2020: 23%).
The development in the recurring revenue
in Q2 shows great progress in Columbus
Care contracts (+21%) and Cloud products
(+75%) and a decline in subscriptions (-
13%). Going forward, Columbus expects
subscriptions to decline as part of the
cloud conversion.
In H1 2021, recurring revenue increased
by 4% to DKK 193m (H1 2020 DKK
185m). Recurring revenue in H1 2021 con-
stituted 23% of total revenue (H1 2020:
22%).
Service revenue split on
Business Lines
DKKm
Development in service revenue
DKKm
Development in recurring revenue
DKKm
5%
23%
10%
10%
7%
-4%
3%
5%
33%
16%
18%
3%
0 50 100 150 200 250 300 350 400 450
Other Local Business
Customer Experience &
Engagement
Data & Analytics
Digital Commerce
Columbus Care
Cloud ERP
Q2 2020 Q2 2021 H1 2020 H1 2021
324
348
693
698
Q2 2020 Q2 2021 H1 2020 H1 2021
45 40 87 70
36
44
75
90
11
19
23
33
93
103
185
193
Q2 2020 Q2 2021 H1 2020 H1 2021
Cloud
Columbus Care contracts
Subscriptions
7
Cash
Development in cash flow in Q2 2021 was
negative with DKK 727m, mainly due to
the extraordinary dividend payment of
DKK 694m and payment of earn-out of
DKK 74m in April 2021. Cash flow from
operating activities was negative with DKK
10m, as Columbus has decided to pay a
significant amount in withheld holiday al-
lowance to a holiday fund in Denmark in
June 2021.
The development in cash flow in H1 2021
was positive with DKK 55m, mainly due to
the divestments made in Q1 2021 amount-
ing to DKK 816m and the significant trans-
actions in Q2 as just mentioned above. In
total, Columbus’ cash position improved
by DKK 62m compared to 31 December
2020.
Equity
Columbus’ equity has increased by DKK
61m since 31 December 2020, primarily
due to the positive net result and the exe-
cuted divestments. With a total equity of
DKK 774m, Columbus has a solvency of
52% (2020: 43%). The high solvency ratio
together with the cash position leaves Co-
lumbus in a strong financial position.
Events after the balance sheet date
Due to Columbus’ high cash position, the
Board of Directors has decided to repay
DKK 100m in bank loan in July 2021.
No other events or transactions with a ma-
terial effect on the company’s financial po-
sition have occurred since the balance
sheet date.
8
Financial guidance
Despite the continued Covid-19 uncer-
tainty and the negative market impact, the
management believes that there are good
business opportunities going forward.
Columbus’ ambition is to gradually in-
crease profitable growth to minimum 10%
annually by 2023.
Based on the financial performance in H1
2021, current order book and pipeline, our
guidance for full-year 2021 will remain un-
changed as follows:
Revenue is expected to be in the range of
DKK 1,650m – 1,800m corresponding to a
growth of 5% to 14%.
EBITDA is expected to be in the range of
DKK 125m – 150m corresponding to an in-
crease of 1% to 21% compared to the
2020 EBITDA adjusted for customer provi-
sion and earn-out adjustments.
Outlook for 2021
DKKm
Revenue EBITDA
2021 Outlook
1,650 - 1,800 125 - 150
Implied growth to 2020 result
5% - 14% 1% - 21%
9
We have today considered and approved
the interim financial report for the period 1
January 2021 – 30 June 2021 for
Columbus A/S.
The interim financial report has been pre-
pared in accordance with IAS 34 and addi-
tional Danish interim reporting require-
ments for listed companies. The interim fi-
nancial report is unaudited and has not
been reviewed by the Company’s auditor.
We consider the accounting policies ap-
plied to be appropriate to the effect that
the interim financial report gives a true and
fair view of the Group’s assets, liabilities
and financial position at 30 June 2021,
and of the results of the Group’s opera-
tions and cash flows during the first half of
2021.
We consider the management
report to give a true and fair
view of the development in the
Group’s business activities and
financial situation, the financial
result for the period and the
Group’s financial position as a
whole together with a true and
fair description of the significant
risks and uncertainty factors
which the Group faces.
Statement by management
Ballerup,
18 August 2021
Executive
Board
Søren Krogh Knudsen
CEO &
President
Hans Henrik Thrane
Corporate CFO
Board of Directors
Ib Kunøe
Chairman
Sven Madsen
Deputy Chairman
Peter Skov Hansen
Karina Kirk
Ringsted
10
10 Interim Report H1/2021
Financial
statements
11 Interim Report H1 2021
DKK ´000
Note Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Net revenue
2 426,350 401,747 846,971 858,639 1,578,332
External
project costs -86,613 -91,916 -163,214 -190,346 -333,541
Gross profit
Staff expenses and remuneration
3 -276,652 -252,127 -543,460 -524,276 -1,010,972
Other external costs
-31,531 -28,445 -53,541 -74,210 -141,362
Other operating income
Other operating costs
-3 -4 -5 -5 -17
EBITDA before share
-based
payment
Share
-based payment 3 -302 -1,216 -604 -2,433 -4,479
EBITDA
Depreciation, amortization and
impairment
4 -12,811 -13,029 -25,942 -27,078 -53,231
Operating profit (EBIT)
Financial income
Financial expenses
-5,530 -3,251 -8,049 -5,225 -17,801
Profit before tax from continuing
operations
Corporate tax
-3,977 -1,327 -6,547 -4,193 -10,409
Profit after tax from continuing
operations
Profit after tax from
discontinued operations
8
-132 9,365 720,454 11,529 -5,172
Profit after tax for the period
DKK ´000
Note Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Items that may be reclassified
subsequently to profit and loss:
Foreign exchange adjustments of
subsidiaries
Other
comprehensive income 3,990 20,498 5,453 -19,528 -5,916
Total comprehensive income
for the period
Profit after tax allocated to:
Shareholders in Columbus A/S
Minority interests
Total comprehensive income
allocated to:
Shareholders
in Columbus A/S 13,324 40,066 781,074 22,983 42,588
Minority interests
Earnings per share of DKK 1.25
(EPS)
Earnings per share of DKK 1.25,
diluted (EPS
-D)
Statement of comprehensive income
12 Interim Report H1 2021
DKK ´000
Note 30 Jun 2021 30 Jun 2020 31 Dec 2020
ASSETS
Goodwill
Customer base
Other intangible assets
Development projects finalized
Development projects in progress
Property, plant and equipment
Right
-of-use assets 74,629 103,306 87,616
Deferred tax assets
Other receivables
Total
non-current assets
Trade receivables
5 239,622 246,426 222,571
Contract assets
6 7,566 34,814 14,733
Corporate tax receivables
Other receivables
Prepayments
Receivables
Cash
Total current assets
Assets classified as held for sale
10 0 0 214,481
TOTAL ASSETS
DKK ´000
Note 30 Jun 2021 30 Jun 2020 31 Dec 2020
EQUITY AND LIABILITIES
Share capital
Reserves on foreign currency translation
-40,815 -59,886 -46,269
Retained profit
Group shareholders' equity
Minority interests
Equity
Deferred tax
Other provisions
Debt to credit institutions
Lease liability right
-of-use assets 46,789 71,875 59,929
Non
-current liabilities 244,790 303,579 281,759
Contingent consideration
Contract liabilities
6 12,260 19,305 19,607
Trade payables
Corporate tax payables
Other payables
Other provisions
Accruals and deferred income
Lease liability right
-of-use assets 31,434 36,856 32,006
Current liabilities
Total liabilities
Total liabilities relating to assets
classified as held for sale
10 0 0 93,891
TOTAL EQUITY AND LIABILITIES
Balance sheet
13 Interim Report H1 2021
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits
Minority
interests Equity
YTD 2021
Balance at 1 Jan 2021
Profit after tax
Currency
adjustments of investments
in subsidiaries
Total comprehensive income
Capital increase
Share
-based payment 0 0 -886 0 -886
Disposal of minority interest
-2,576
-2,576
Payment of dividend
Balance at 30 Jun 2021
161,596 -40,815 652,741 0 773,522
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits
Minority
interests Equity
YTD 2020
Balance at 1 Jan 2020
Profit after tax
Currency adjustments of investments
in subsidiaries
Total
comprehensive income 0 -19,521 42,504 78 23,061
Share
-based payment 0 0 2,433 0 2,433
Balance at 30 Jun 2020
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits
Minority
interests Equity
2020
Balance at 1 Jan 2020
Profit after tax
Currency adjustments of investments
in
subsidiaries
Total comprehensive income
Share
-based payment 0 0 4,479 0 4,479
Balance at 31 Dec 2020
Statement of changes in equity
14 Interim Report H1 2021
DKK ´000
Not
e Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Operating profit (EBIT)
Non
-recurring income and
expenses from acquisitions
Depreciation, amortization and
impairment
4 12,811 13,029 25,942 27,078 53,231
Cost of
incentive scheme -1,189 1,217 -884 2,435 4,480
Changes in net working capital
-43,479 60,612 -69,046 62,262 31,574
Cash flow from primary
activities
-13,340 89,880 16,538 132,070 124,514
Interest received, etc.
-3,185 -320 4,865 224 594
Interest paid, etc.
-411 17,342 -6,080 -3,119 -3,363
Corporate tax paid
Cash flow from operating activities
discontinued operations
8 4,464 28,352 4,623 42,469 75,136
Cash flow from operating
activities
-10,246 133,102 6,095 169,074 190,862
Net investment in development
pro
jects
Acquisition of tangible assets
-1,603 -851 -3,637 -2,243 -3,832
Acquisition of
intangible assets -2,059 0 -8,169 0 -9,408
Disposal of tangible assets
Acquisition of subsidiaries and
activities
7 -74,152 -38,645 -74,152 -74,015 -75,147
Disposals of subsidiaries and
activities
9 -481 0 815,500 0 -2,696
Cash
flow from investing activities
discontinued operations
8 -4,464 -11,884 -7,479 -20,007 -37,256
Cash flow from investing
activities
-82,745 -51,816 722,063 -96,700 -127,830
DKK ´000
Not
e Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Proceeds from capital
increase/warrants exercised
Repayment of lease liabilities
-8,557 -8,788 -17,354 -18,261 -36,050
Dividends paid
-693,914 0 -693,914 0 0
Cash flow from financing activities
discontinued
operations 8 11,950 -1,915 -18,209 -3,907 -7,922
Cash flow from financing
activities
-633,951 -10,703 -672,907 -22,168 -43,972
Total net change in cash and
cash equivalents
-726,942 70,583 55,251 50,206 19,060
Cash
funds at the beginning of the
period
Exchange rate adjustments
-6,556
-2,111
Cash funds at the end of the
period
Cash flow
15 Interim Report H1 2021
Note 1 – Significant accounting principles 16
Note 2 – Segment data 17
Note 3 – Staff expenses and remuneration 21
Note 4 – Depreciation, amortization and impairment 21
Note 5 – Trade receivables 22
Note 6 – Contract assets and contract liabilities 23
Note 7 – Business combinations 24
Note 8 – Discontinued operations 25
Note 9 – Disposal of subsidiaries 26
Note 10 – Assets classified as held for sale 27
Key figures, ratios and Alternative Performance Measures 28
Notes
Note
Page
16 Interim Report H1 2021
Notes
The consolidated interim financial report is prepared in accordance with IAS 34, Presentation of Interim Fi-
nancial Reporting, as approved by the EU. The interim financial report is presented in Danish kroner (DKK),
which is the Parent Company’s functional currency.
The accounting policies applied in the interim financial report are prepared in accordance with International
Financial Reporting Standards, as approved by the EU, and additional Danish disclosure requirements for
interim financial reports of listed companies and is unchanged compared to 2020, except for any new,
amended or revised accounting standards and interpretations endorsed by the EU, effective for the ac-
counting period beginning on 1 January 2021, as well as the following accounting policies.
Gains and losses on divestments or dissolvement of subsidiaries or associates
Gains or losses on divestments or dissolvements of subsidiaries and associates are stated as the differ-
ence between the sales price or settlement price and the fair value of any remaining equity and the book
value of net assets on the time of sale or winding up, including goodwill, less any minority interests. Gains
or losses are recognized in the statement of comprehensive income as well as accumulated foreign cur-
rency translation adjustments previously recognized in other comprehensive income.
For more information on the accounting policies, we refer to our Annual Report for 2020.
Note 1
– Significant accounting principles
17 Interim Report H1 2021
Notes
In order to support decisions about allocation of resources and assessment of performance of the seg-
ments, the Group’s internal reporting to the Board of Directors of the Parent Company is based on the fol-
lowing grouping of operating segments:
Strategic Business Lines
Market Units
Cloud ERP
Columbus Care
Digital Commerce
Data & Analytics
Customer Experience & Engagement
Other Local Business
Sweden
Denmark
Norway
UK
US
Russia
Management monitors the business primarily based on the Business Lines and the geographical segments.
Information about the Group’s Business Lines is stated below.
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Sale of services
Cloud ERP
203,795 198,207 417,732 435,309 779,904
Columbus Care
68,347 57,870 131,275 122,328 233,143
Digital Commerce
42,019 36,258 81,452 74,139 128,059
Data & Analytics
7,862 5,905 12,969 11,843 24,007
Customer Experience & Engagement
7,342 7,010 15,706 12,743 23,762
Other Local Business
19,068 18,570 38,540 36,858 72,581
Total sale of
services 348,433 323,820 697,674 693,220 1,261,455
Sale of products
Cloud ERP
57,929 58,601 114,457 129,692 248,085
Columbus Care
6,330 4,684 10,131 9,171 19,676
Digital Commerce
3,671 2,636 7,179 5,821 10,196
Data &
Analytics 374 155 655 473 895
Customer Experience & Engagement
523 448 992 1,280 2,741
Other Local Business
9,089 11,403 15,882 18,982 35,283
Total sale of products
77,917 77,927 149,297 165,419 316,877
Total net revenue
426,350 401,747 846,971 858,639 1,578,332
During the launch of the Focus23 strategy, management has changed the way the business is assessed. In
order to support decisions and the Focus23 strategy, the operating segments have been divided into Busi-
ness Lines and Market Units.
Business Lines relate to the type of services or products that are delivered, and comprise of Cloud ERP,
Columbus Care, Data & Analytics, Customer Experience & Engagement and Other Local Business. Market
Units comprise of significant geographical markets that the group operates in. The Market Units are classi-
fied as being the market where the customer is located, rather than the legal entity it is delivered by.
The operating segments are measured from revenue to EBITDA, as this represents the significant part of
the operation of the segments. The balance sheet is measured for legal entities only.
Business Lines Revenue Split H1 2021
63%
17%
10%
2%
2%
6%
Cloud ERP
Columbus Care
Digital Commerce
Data & Analytics
Customer Experience & Engagement
Other Local Business
Note
2 – Segment data
18 Interim Report H1 2021
Notes
Note 2
– Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Russia Other* Total
Q2 2021
Sale of services
142,612 63,774 63,541 35,053 30,172 13,218 63
348,433
Sale of products
9,350 20,916 8,096 7,765 30,062 1,728 0
77,917
Total net
revenue 151,962 84,690 71,637 42,818 60,234 14,946 63 426,350
Gross profit
130,595 74,207 45,938 42,054 35,278 13,079 -1,414
339,737
EBITDA
10,365 3,396 9,966 3,757 2,077 1,417 350
31,328
Operating profit (EBIT)
18,517
Profit before tax
13,443
Profit after tax
9,466
Average number of employees
524 307 159 212 157 179 95 1,632
Q2 2020
Sale of services
138,572 66,300 39,597 31,455 33,742 14,110 44
323,820
Sale of products
8,184 18,022 7,117 7,374 34,515 2,715 0
77,927
Total net revenue
146,756 84,322 46,714 38,829 68,257 16,825 44 401,747
Gross profit
116,364 70,875 34,412 34,804 39,886 14,479 -989
309,831
EBITDA
2,352 12,041 110 5,021 2,320 1,924 4,283
28,051
Operating profit (EBIT)
15,022
Profit before tax
11,810
Profit after tax
10,483
Average number of employees
623 342 157 190 161 188 68 1,729
*Other consist of
India, Poland, Czech and other shareholder costs
19 Interim Report H1 2021
Notes
Note 2
– Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Russia Other* Total
H1 2021
Sale of services
286,240 127,330 125,474 73,151 60,469 23,831 1,179
697,674
Sale of products
17,217 38,019 14,075 17,747 58,642 3,597 0
149,297
Total net revenue
303,457 165,349 139,549 90,898 119,111 27,428 1,179 846,971
Gross profit
265,714 149,230 90,195 87,434 70,844 23,441 -3,101
683,757
EBITDA
32,785 10,473 17,685 11,672 4,045 1,495 8,313
86,468
Operating profit (EBIT)
60,526
Profit before tax
61,106
Profit after tax
54,559
Average
number of employees 540 314 159 214 162 174 85 1,648
H1 2020
Sale of services
292,867 131,742 93,253 74,897 71,869 28,308 284
693,220
Sale of products
17,773 35,802 21,246 16,339 67,061 7,198 0
165,419
Total net
revenue 310,640 167,544 114,499 91,236 138,930 35,506 284 858,639
Gross profit
250,099 141,924 80,817 79,814 83,912 29,296 2,431
668,293
EBITDA
20,506 20,505 5,450 10,554 2,107 2,922 5,329
67,373
Operating profit (EBIT)
40,295
Profit before tax
35,253
Profit after tax
31,060
Average number of employees
641 341 194 221 163 205 60 1,825
*Other consist of India, Poland, Czech and other shareholder costs
20 Interim Report H1 2021
Notes
*The non-current assets for the rest of the world segment are higher as of 31 March 2020 compared to 31 December 2020 and 31 March 2021, due
to To-Increase was not held for sale at this point. To-Increase amounted to DKK 183,297k as of 31 March 2020.
Legal entities
Net revenue from external customers Non-current assets
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020 30 Jun 2021 30 Jun 2020 31 Dec 2020
Sweden
158,727 155,962 318,207 332,687 595,297 488,260 478,261 498,248
Denmark
77,925 79,954 150,597 158,869 312,014 171,189 149,787 156,263
Norway
71,637 41,876 139,549 101,127 175,789 73,243 71,682 72,159
United Kingdom
42,818 38,829 90,898 91,236 172,629 50,974 48,479 49,108
USA
60,235 68,244 119,111 138,929 253,100 143,461 160,448 142,368
Russia
14,945 16,825 27,428 35,507 69,193 35,371 36,890 34,894
Rest of the world
63 57 1,181 284 310 12,523 219,448 34,400
Total
426,350 401,747 846,971 858,639 1,578,332 975,021 1,164,995 987,440
Note 2
– Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Russia Other* Total
2020
Sale of services
527,582 247,746 151,567 143,747 136,414 54,089 310
1,261,455
Sale of products
36,711 83,452 35,868 28,882 116,777 15,187 0
316,877
Total net revenue
564,293 331,198 187,435 172,629 253,191 69,276 310 1,578,332
Gross profit
463,723 281,863 133,581 154,537 157,119 55,774 -1,806
1,244,791
EBITDA
41,562 45,442 -17,851 22,429 7,735 5,583 29,326
134,226
Operating profit (EBIT)
80,995
Profit before tax
64,143
Profit after tax
53,734
Average number of
employees 590 338 155 213 167 190 54 1,707
*Other consist of India, Poland, Czech and other shareholder costs
Revenue and non-current assets distributed in legal entities
The Group’s revenue from external customers and non-current assets
distribution in geographical areas are specified below. Revenue is
distributed according to the country of the entity from where invoicing
has taken place, and the non-current assets are distributed according
to location and legal relation.
In order to be able to estimate the results of the segments and allo-
cate resources between these, the Board of Directors also monitors
the tangible, intangible and financial assets related to each segment.
21 Interim Report H1 2021
Notes
Note 3 – Staff expenses and remuneration
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Staff expenses
Salary and wages
223,545 199,011 438,984 419,828 828,236
Other social security costs
34,407 37,343 70,619 74,603 144,610
Other staff expenses
18,700 15,773 33,857 29,845 38,126
Staff costs before share
-based
payment
276,652 252,127 543,460 524,276 1,010,972
Share
-based payment 302 1,216 604 2,433 4,479
Staff expenses
276,954 253,343 544,064 526,709 1,015,451
Average number of employees
1,632 1,729 1,648 1,825 1,707
Note 4 – Depreciation, amortization and impairment
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Depreciation
8,985 9,031 18,219 19,013 37,433
Amortization
3,826 3,998 7,723 8,065 15,798
Total depreciation, amortization
and impairment
12,811 13,029 25,942 27,078 53,231
22 Interim Report H1 2021
Notes
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Receivables (gross) at 1 Jan
241,749 322,535 322,535
Change in receivables during the period
13,116 -57,071 -80,786
Receivables (gross) end of period
254,865 265,464 241,749
Provisions for bad debt at 1 Jan
19,178 15,304 15,304
Change in provisions for bad debt
during the period -3,916 3,464 3,799
Loss realized during the period
-19 270 75
Provisions for bad debt end of period
15,243 19,038 19,178
Carrying amount end of period
239,622 246,426 222,571
Provisions for bad debt are made based on the lifetime expected credit losses in line with the Group’s ac-
counting policies.
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Age of receivables (gross):
Not due
145,797 188,165 167,236
0
-30 days 54,484 36,577 48,834
30
-60 days 32,072 8,336 9,827
61
-90 days 6,496 8,955 2,771
91
-180 days 5,309 10,572 4,508
181
-270 days 2,067 6,829 954
270
-360 days 1,493 4,318 1,874
Above 360 days
7,147 1,712 5,745
Total
254,865 265,464 241,749
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Age of impairment:
Not due
17 359 2,599
0
-30 days 272 183 1,044
30
-60 days 802 208 446
61
-90 days 487 672 2,008
91
-180 days 2,958 4,757 4,508
181
-270 days 2,067 6,829 954
271
-360 days 1,493 4,318 1,874
Over 360 days
7,147 1,712 5,745
Total
15,243 19,038 19,178
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Provision matrix:
Not due
0.0% 0.2% 1.6%
0
-30 days 0.5% 0.5% 2.1%
30
-60 days 2.5% 2.5% 4.5%
61
-90 days 7.5% 7.5% 72.5%
91
-180 days 55.7% 45.0% 100.0%
181
-270 days 100.0% 100.0% 100.0%
271
-360 days 100.0% 100.0% 100.0%
Over 360 days
100.0% 100.0% 100.0%
Note
5 – Trade receivables
23 Interim Report H1 2021
Notes
Note 6 – Contract assets and contract liabilities
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Balance at 1 Jan
-4,874 10,877 10,877
Changes contract assets during the period
-16,754 4,351 -65,331
Changes on account billing and prepayments
during the period
16,934 281 47,526
Reclassified to assets held for sale
0 0 2,054
Balance at end of period
-4,694 15,509 -4,874
Work in progress
29,175 136,351 45,929
On account billing and prepayments
-33,869 -120,842 -50,803
Balance at end of period
-4,694 15,509 -4,874
The net value is included in the balance as follows:
Contract assets
7,566 34,814 14,733
Contract liabilities
-12,260 -19,305 -19,607
Balance at end of period
-4,694 15,509 -4,874
The Group’s contract assets are subject to significant judgements in relation to the classification of the con-
tract and in terms of how the contract is handled and recognized in the financial statements. When deter-
mining the appropriate recognition of the contract, the Group accounting policies are applied.
24 Interim Report H1 2021
Notes
Acquisition of companies in 2021
There have been no acquisitions during H1 2021.
Acquisition of companies in 2020
The Group has per 6 January 2020 acquired Advania Business Solutions. The acquisition was an asset
purchase.
Name
Primary
activity
Date of
control
gained
Acquired
ownership
Acquired
voting
rights
Total
consideration
DKK ’000
Advania Business Solutions
Distribution and
implementation of
standardised
business solutions.
6 January Activity Activity 36,357
Total
36,357
With the acquisition of Advania Business Solutions, Columbus creates a Microsoft Dynamics cloud Power-
house in Norway. After recognition of identifiable assets, liabilities and contingent liabilities at fair value,
goodwill in relation to the acquisition was assessed to DKK 16.8m. Customer base is recognised separate
from goodwill and goodwill therefore relates to knowhow.
Estimated tax deductibility of goodwill for Advania Business Solutions is DKK 16.8m.
Advania Business Solutions has since the acquisition 6 January 2020 had a revenue of DKK 44m and a
result after tax of DKK 11m.
DKK ´000
H1 2021 2020
Fair value assessment of trade receivables
Trade receivables, gross amount
0 15,103
Trade receivables, not expected to be collected
0 -277
Trade receivables, fair value
0 14,826
Opening balances
DKK ´000
H1 2021 2020
Tangible fixed assets
0 13
Other intangible assets
0 10,800
Other receivables
0 85
Total non
-current assets 0 10,898
Trade receivables
0 14,826
Work in progress
0 191
Prepayments
0 5,315
Total current assets
0 20,332
Corporation tax and deferred tax
0 -2,187
Deferred income
0 -3,736
Accruals
0 -398
Other debt
0 -5,404
Total current debt
0 -11,725
Net assets acquired
0 19,505
Goodwill
0 16,852
Total consideration
0 36,357
Net working capital not paid
0 -987
Cash consideration on acquisition date
0 35,370
Contingent consideration payments*
74,152 39,777
Net cash flows on acquisitions
74,152 75,147
* Contingent consideration payments in 2020 relate to the acquisitions of iStone AB, which were paid in Q2
and Q4 2020. (DKK 38,645k.), BMI (DKK 1,132k). Contingent consideration payments in 2021 relate to the
acquisitions of iStone AB, which were paid in Q2 2021. (DKK 74,152). Since the acquisition date of Advania
Business Solution the other intangible assets have been revalued with DKK 3.8m and this has affected the
goodwill accordingly.
Note
7 – Business combinations
25 Interim Report H1 2021
Notes
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Net revenue
0 57,307 29,296 110,524 208,487
External project costs
0 -1,672 -2,286 -5,225 -8,395
Gross profit
0 55,635 27,010 105,299 200,092
Staff expenses and remuneration
0 -31,253 -19,510 -60,428 -113,992
Other external costs
0 -2,128 -3,707 -8,665 -16,832
Other operating income
0 2 15 16 314
EBITDA
0 22,256 3,808 36,222 69,582
Depreciation, amortization and impairment
0 -9,584 -561 -19,057 -29,912
Operating profit (EBIT)
0 12,672 3,247 17,165 39,670
Financial income
0 8 195 409 49
Financial expenses
0 -471 -129 -469 -1,621
Profit before tax from discontinuing
operations
0 12,209 3,313 17,105 38,098
Corporate tax
0 -2,844 -20 -5,576 -13,768
Profit after tax from discontinuing
operations
0 9,364 3,293 11,529 24,330
Total gain (loss) on divestment of
discontinued operations
-132 0 717,161 0 -29,502
Profit from discontinued operations
-132 9,364 720,454 11,529 -5,172
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Earnings per share from discontinued
operations of DKK 1.25 (EPS)
0.00 0.08 5.67 0.09 -0.04
Earnings per share from discontinued
operations of DKK 1.25, diluted (EPS
-D)
0.00 0.08 5.64 0.09 -0.04
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Gain on disposal of subsidiaries
0 0 721,712 0 0
Transaction costs related to disposal
-132 0 -4,551 0 -29,502
Total gain (loss) on divestment of
discontinued operations
-132 0 717,161 0 -29,502
DKK ´000
Q2 2021 Q2 2020 H1 2021 H1 2020 2020
Cash flow from operating activities
4,464 28,352 4,623 42,469 75,136
Cash flow from investing
activities -4,464 -11,884 -7,479 -20,007 -37,256
Cash flow from financing activities
11,950 -1,915 -18,209 -3,907 -7,922
Cash flow from discontinued operations
11,950 14,553 -21,065 18,555 29,958
Discontinued operations in 2021
During 2020 Columbus initiated the process of a sale of our software company To-Increase, which repre-
sented our entire ISV segment. The sale was finalised in January 2021, and the business is therefore re-
ported as discontinued operations in the profit and loss.
Further, our Danish private cloud business was sold in January 2021 and this business is consequently
also classified as discontinued operations. The private cloud business was represented in our consultancy
segment across all Market Units.
Finally, in March 2021 our two companies in the Baltics were sold and consequently also classified as dis-
continued operations. The Baltic entities were represented in our consultancy segment.
Note
8 – Discontinued operations
26 Interim Report H1 2021
Notes
On 26 January 2021, the Group disposed of its 100% equity interest in its subsidiary, To-Increase. The sub-
sidiary was classified as held for sale in the 2020 consolidated financial statement.
On 26 March 2021, the Group disposed of its 100% equity interest in its subsidiary, Columbus Lithuania
and 51% equity interest in its subsidiary, Columbus Estonia.
There were no disposals of subsidiaries made in 2020.
The deferred consideration was partly settled in cash by the purchaser in April 2021 (DKK 12m), and the
remaining consideration will be paid in monthly instalments until 2026.
The gain on disposal is included in the profit for the year from discontinued operations, note 8.
At the date of disposal, the carrying amounts of disposed subsidiaries net assets were as follows.
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Goodwill
97,258 0 0
Customer base
5,166 0 0
Other intangible assets
19 0 0
Development projects finalized
52,334 0 0
Development projects in progress
42,404 0 0
Property, plant and equipment
2,281 0 0
Right
-of-use assets 20,712 0 0
Investments in subsidiaries
0 0 0
Trade receivables
36,753 0 0
Contract assets
7,575 0 0
Corporate tax receivables
1,052 0 0
Deferred tax assets
370 0 0
Other receivables
1,474 0 0
Prepayments
2,800 0 0
Cash
22,169 0 0
Total assets
292,367 0 0
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Deferred tax
19,095 0 0
Other provisions
0 0 0
Contingent consideration
0 0 0
Debt to credit institutions
357 0 0
Lease liability right
-of-use assets 20,277 0 0
Contract liabilities
3,854 0 0
Trade payables
14,829 0 0
Corporate tax payables
54 0 0
Other payables
30,221 0 0
Accruals and deferred income
30,578 0 0
Total liabilities
119,265 0 0
Net assets disposed of
173,102 0 0
Cash and cash equivalents
877,229 0 0
Deferred consideration
17,585 0 0
Total consideration
894,814 0 0
Gain on disposal of subsidiaries
721,712 0 0
Net Cash inflow arising on disposal:
Consideration received in cash and
cash equivalents 865,279 0 0
Less: cash and cash equivalents disposed of
-22,169 0 0
Transaction costs related to disposal
-27,610 0 0
Net Cash inflow arising on disposal
815,500 0 0
Note
9 – Disposal of subsidiaries
27 Interim Report H1 2021
Notes
At 30 June 2021, no parts of group were classified as held for sale.
DKK ´000
30 Jun 2021 30 Jun 2020 31 Dec 2020
Goodwill
0 0 81,683
Customer base
0 0 4,670
Development projects finalized
0 0 52,350
Development projects in progress
0 0 38,899
Property, plant and equipment
0 0 1,567
Right
-of-use assets 0 0 16,086
Trade receivables
0 0 15,739
Contract assets
0 0 950
Corporate tax receivables
0 0 1,050
Other receivables
0 0 676
Prepayments
0 0 811
Total assets classified as held for
sale 0 0 214,481
Deferred tax
0 0 17,181
Other provisions
0 0 4,464
Lease liability right-of-use assets
0
0
15,409
Contract liabilities
0 0 3,004
Trade payables
0 0 3,278
Other payables
0 0 13,380
Accruals and deferred income
0 0 37,175
Total liabilities relating to assets classified
as held for sale
0 0 93,891
Net assets
0 0 120,590
Note
10 – Assets classified as held for sale
28 Interim Report H1 2021
Notes
Key figures and ratios
Earnings per share (EPS) and diluted earnings per share (EPS-D) are calculated in accordance with
IAS 33.
Other ratios are calculated in accordance with the Danish Finance Society “Recommendations & Financial
Ratios”. The financial ratios stated are calculated as follows:
EBITDA
-margin
Earnings before interest, tax, depreciations and
amortizations (EBITDA)
Net revenue
Operating margin
Operating profit (EBIT)
Net revenue
Return o
n equity
Profit after tax and excl. minority interests
Average equity excl. minority interests
Return on invested capital (ROIC)
EBITA
Average invested capital including goodwill
Equity ratio
Equity excl. minority interests
Total equity and liabilities
Earnings per share (EPS)
Profit after tax and excl. minority interests
x f
Average number of shares
Book value per share (BVPS)
Equity excl. minority interests end of year x 100
x f
Number of shares end of year
Cash
flow per share Cash flow from operations
x f
Average number of diluted shares
Adjustment factor (f)
Theoretical rate
Listed price of stock the day before the subscription
and/or stock right cease
Re
curring Revenue % of total revenue
Recurring revenue
Net revenue
Alternative Performance Measures
Recurring Revenue
Recurring Revenue includes Software maintenance, Cloud revenue and Columbus Care agreements.
Recurring revenue does not necessarily mean a binding contractual agreement. However recurring revenue
is defined as revenue with a high degree of certainty for renewal >95%.
The purpose of defining Recurring Revenue is to express a level of predictability in the revenue. The higher
degree of Recurring Revenue in pct. of total revenue – the more predictable is the Columbus revenue going
forward.
EBITDA before Share Based Payment
EBITDA before Share Based Payment is Earnings Before Interest Taxes Depreciation, Amortization and
the expense (black Scholes value) from Share Based Payment.
The purpose of excluding Share Based Payment is that this is a non-cash consideration and therefore dif-
ferent characteristics than cash-based considerations. Another purpose is that the IFRS rules for expending
Share Based payments is uneven through the 3-year maturing period Columbus normally exercise.
EBITDA before Share Based Payment will therefore express a more comparable year over year develop-
ment.
Normalized EBITDA
Normalized EBITDA represents the business excluding the impact of one-off items, such as acquisitions,
divestments etc. Details on the normalization is provided on page 5.
Key figures, ratios and Alternative Performance Measures
29 Interim Report H1 2021
Notes
For more information about Columbus visit www.columbusglobal.com