1 Q3 Report 2021
Columbus A/S | CVR no. 13 22 83 45
Q3 Report 2021
2 Q3 Report 2021
3
November 2021
Highligh
ts
Financial highlights
Q3
•
Revenue increased by 11% in Q3
2021 to DKK
323m (Q3 2020: 290m).
•
Normalized EBITDA decreased to DKK 4m in
Q3 2021 (Q3 2020: DKK 22m). The decrease is
mainly caused by extraordinary
costs related to
recruitment, onboarding, new ERP platform im-
plementation and external advice.
•
Profit before tax declined to -11,3m (Q3 2020:
18,1m).
All numbers and comments are on the continued
business, thus excluding discontinued operations
(excluding the divested entities
SMB US, To-In-
crease and Baltics).
Operational highlights
•
Leadership succession in key Business Units
•
Acceleration tracks for Focus23 driven by
global leadership group
•
Hiring 171 new people – increasing FTE with
net 122 by end of Q3 compared to end of Q2
•
YTD customer work remained high amounting
to 57% vs. 53% last year.
•
Divestment of Columbus US SMB business
11% revenue growth
in Q3 with progress in most business areas. Normalized
EBITDA
impacted by major investments in Focus23 strategy transformation
efforts and
onboarding of 171 new people.
”We are satisfied with the revenue and headcount growth for Q3 and now having cumulated growth for the first
nine months of 2021. Columbus experiences great demand currently and has hired 171 new people during Q3”,
says CEO & President Søren Krogh Knudsen.
Contents
Highlights
2
Revenue growth of 11%
in Q3 2021
3
Key figures and ratios
4
Revenue growth
of 11%
in Q3 2021
5
Outlook for 2021
8
Statement by
management
9
Financial
statements
10
Ballerup (Headquarter)
DK
- 2750 Ball erup
Tel: +45 70 20 50 00
3 Q3 Report 2021
High activity level during Q3
The third quarter was, besides being my
first full quarter in Columbus, a quarter
characterized by high activity in all areas
of the business. The majority of our Busi-
ness Units delivered top-line growth while
onboarding new colleagues to the delivery
organization to fuel for growth. The consol-
idated result is in line with management's
expectations.
Columbus delivered a Q3 with 11% reve-
nue growth (DKK 323m) and a total reve-
nue growth for the first 9 months of 2%
(DKK 1,090m). In Q3, we saw significant
strong growth in our Norwegian and Swe-
dish business, while Columbus Denmark
delivered below expectations.
Normalized EBITDA decreased from DKK
22m to DKK 4m. For the first nine months,
EBITDA amounted to DKK 78m. The de-
cline is mainly related to new hire activities
initiated during summer which materialized
in Q3 with an increase in new people of
net 122 FTE’s.
New leadership in key positions
During October, Columbus announced
leadership changes in two major Business
Units: Columbus Care M3 & Digital Com-
merce. Mattias Goldkuhl succeeded
Rickard Schlyter who retired and in Colum-
bus Sweden, Lena Ridström succeeded
Markus Jakobson, who continues in Co-
lumbus in a role as strategic advisor
A strong governance structure is key for
Columbus, positioning the company as
Digital Trusted Advisor.
Streamlining our US business
On 1 November, we entered into an
agreement with the US-based Microsoft
cloud company Enavate to take over the
Microsoft Dynamics SMB Business Unit in
Columbus US, comprising 55 employees
and up to 1,400 customers.
The divestment is an important milestone
in the Focus23 strategy to focus and sim-
plify our business.
New core ERP platform
To support our new operating model, we
have made a large investment in a new
core ERP platform. The implementation of
the new core ERP platform will increase
transparency and help reduce complexity
in operations. The performance of the new
platform will be achieved during the next
quarters.
Pursuing our ambitions
The Focus23 strategy is executed with fo-
cus on expanding our current strengths,
addressing operational challenges, and
adding new (digital advisory) capabilities
to the organization.
The global leadership team is driving 17
key strategy acceleration tracks to swiftly
deliver progress - ranging from talent and
leadership development, commercial opti-
mization to sustainability strategy and
company values. For each of the 17 accel-
eration tracks, we have prepared
detailed action cards.
Being among the most experienced mar-
ket leaders in the cloud ERP industry and
with a growing business within the layer
around ERP such as Data & Analytics,
Digital Commerce and Customer Experi-
ence, Columbus has a strong position to
move into the trusted digital advisory role.
I want to thank our employees, customers
and partners for their contribution to the
results.
Revenue growth of 11% in Q3 2021
Columbus
delivered a third quarter with 11% top-line growth in most areas of the business. Earnings were
impacted by major investments in onboarding of new
people, thus normalized EBITDA declined in Q3.
Søren Krogh Knudsen
CEO & President
4 Q3 Report 2021
Key figures and ratios
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Income related figures
Sale of services
273,016 243,392 938,437 904,080 1,201,861
Sale of products
49,816 46,466 151,623 161,789 229,252
Net revenue
322,832 289,858 1,090,060 1,065,869 1,431,113
Recurring revenue % of total revenue
22.8% 23.8% 21.3% 20.2% 20.5%
EBITDA before share
-based
payment
4,909 37,858 79,766 99,752 124,018
EBITDA
3,633 36,642 77,886 96,103 119,539
EBIT
-8,905 24,286 40,948 58,364 69,579
Net
financial items -2,443 -6,180 -1,861 -11,221 -16,852
Profit before tax
-11,348 18,106 39,087 47,143 52,727
Profit after tax,
continuing operations
-9,467 4,859 34,421 29,703 42,318
Profit after tax,
discontinued operations
5,188 4,769 736,316 22,514 6,244
Profit after tax
-4,279 9,628 770,737 52,217 48,562
DKK ´000
30 Sep 2021
30 Sep 2020
31 Dec 2020
Balance sheet*
Non
-current assets 891,334 954,721 987,440
Current assets
342,320 412,009 438,944
Assets
classified as held for sale 110,523 208,007 214,481
Total assets
1,344,177 1,574,737 1,640,865
Group shareholder equity
769,825 695,284 712,421
Minority interests
0 3,160 3,184
Total liabilities
570,996 789,573 831,369
Total liabilities relating to assets
classified as held for sale
3,356 86,720 93,891
Total equity and liabilities
1,344,177 1,574,737 1,640,865
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Investments in tangible assets
2,605 902 6,243 3,145 3,832
Cash flow
Cash flow from operating activities
-28,121 -16,972 -22,025 152,102 190,862
Cash flow from investing activities
-14,769 -14,679 707,292 -111,379 -127,830
Cash flow from financing
activities -126,467 -10,911 -799,374 -33,080 -43,972
Total net change in cash and cash
equivalents
-169,357 -42,562 -114,107 7,643 19,060
Key ratios
EBITDA
-margin 1.1% 12.6% 7.1% 9.0% 8.4%
Operating profit margin
-2.8% 8.4% 3.8% 5.5% 4.9%
Equity ratio**
57.3% 44.2% 57.3% 44.2% 43.4%
Return on equity**
-0.6% 1.4% 105.3% 7.4% 7.0%
Return on invested capital (ROIC)**
-0.7% 3.2% 7.0% 7.8% 10.1%
Number of shares
129,276 124,622 129,276 124,622 124,622
Average number of shares
127,825 124,622 127,825 124,622 124,622
Book value of equity per share (BVPS)
5.95 5.58 5.95 5.58 5.72
Earnings per share (EPS) from
continuing operations
-0.07
0.04
0.27
0.24
0.34
Cash flow per
share -0.22 -0.14 -0.17 1.22 1.53
Share price, end of period
9.41 7.20 9.41 7.20 11.24
Average full time employee for the
period
1,636 1,606 1,608 1,699 1,644
*All 2020 balance sheet items include Baltics which were sold March 2021
, as well as US SMB business, which
is
presented as held for sale as of September 2021
.
*
* 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'
s "Recommendation & Financial Ratios”
5 Q3 Report 2021
Revenue development
Columbus realised a revenue of DKK
323m in Q3 2021 corresponding to an in-
crease of 11%. The revenue growth is
positively affected by a net currency im-
pact of DKK 6m. This is mainly due to rev-
enue deriving from SEK. Service revenue
grew by 12% and derived from all our Mar-
ket Units and all Business Lines except
Customer Experience & Engagement.
With the revenue growth in Q3, the cumu-
lated revenue gap from last year is closed
leaving a cumulated increase in revenue
of 2% in the first nine months of 2021. The
revenue increase is delivered
by all Market Units except Columbus US,
and Columbus Denmark, where there was
a minor decrease caused by a decline in
revenue from Software. Columbus Norway
delivered exceptional growth of 42%, Swe-
den delivered revenue growth of 22% and
UK a growth of 15%.
EBITDA development
In Q3 2021 reported EBITDA declined by
90% to DKK 4m. Normalized EBITDA
1
de-
clined by 83% providing normalized
EBITDA margin of 1.1%.
Columbus realised an EBITDA decline of
19% in the first nine months of 2021
amounting to DKK 78m. Normalized
EBITDA
1
declined by 6%, resulting in a
normalized EBITDA margin YTD 2021 of
7.2%.
The EBITDA decline is mainly caused by
high investments in hiring and onboarding
of people in all areas of the business, wel-
coming 171 new people in Q3. Addition-
ally, extraordinary costs related to ERP
platform implementation and external ad-
vice had an impact on EBITDA.
Despite a large number of new employ-
ees, customer work remained high
amounting to 57% vs. 53% last year. A
fast and steep learning curve ensured that
many new consultants were quickly able to
deliver on customer projects and to deliver
value to customers.
Revenue growth of 11% in Q3 2021
1
EBITDA adjusted for provision for loss-making contract
Development in customer work
DKKm
Q3 2021 Q3 2020 ∆% YTD 2021 YTD 2020 ∆%
Revenue reported
323 290 11% 1,090 1,066 2%
Foreign exchange
-6 0 0% -9 0 0%
Organic revenue
317 290 9% 1,081 1,066 1%
EBITDA reported
4 37 -90% 78 96 -19%
Adjustment of provision for loss making contract
0 13 -100% 0 15 -100%
Reversal of earn
-out 0 -28 -100% 0 -28 100%
Normalized EBITDA
1
4 22 -83% 78 83 -6%
Normalized EBITDA
-margin 1.1% 7.5% -84.8% 7.2% 7.8% -7.3%
28%
57%
15%
YTD 2021
Non-chargeable
Chargeable
Other
31%
53%
16%
YTD 2020
Non-chargeable
Chargeable
Other
6 Q3 Report 2021
Development in service revenue and
business segments
Service revenue increased by 12% to DKK
273m in Q3 2021. The increase is driven
by all Business Lines, where especially
Columbus Care, Digital Commerce and
Data & Analytics increased with double
digit numbers of 18%, 32% and 25%
growth, respectively, compared to Q3 last
year.
YTD 2021, service revenue increased by
4% to DKK 938m. 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 and Q2 continued into Q3,
and in particular our new strategic Busi-
ness Lines such as Digital Commerce,
Data & Analytics and Customer Experi-
ence & Engagement delivered satisfactory
growth.
Development in Market Units
All market units delivered growth in both
Q3 and YTD, except US and Denmark. In
US we have had attrition in the sales team
and our turnaround is not yet completed.
With the divestment of the SMB business
the remaining business will be serving
enterprise customers with a strategic fit in
terms of customer size. In Denmark we
have made and defined investments in
sales capacity and other key hirings to ad-
dress the lack of performance in the Dan-
ish market unit. Due to high demand in es-
pecially Norway and Sweden, we have fo-
cused some of our Danish consultants in
those markets, supporting the growth in
Norway by 42% and the growth in Sweden
by 22%.
Profit before tax
Compared to Q3 2020, profit before tax
declined by DKK 29m to DKK -11m. The
decline is mainly driven by the decline in
EBITDA.
Service revenue split on Business Lines
DKKm
Development in recurring revenue
DKKm
Development in service revenue
DKKm
16%
15%
15%
15%
12%
-3%
43%
-22%
25%
32%
18%
3%
0 100 200 300 400 500
Other Local Business
Customer Experience & Engagement
Data & Analytics
Digital Commerce
Columbus Care
Cloud ERP
Q3 2020 Q3 2021 YTD 2020 YTD 2021
19
20
68 61
37
39
114
132
13
14
33
39
69
73
215
232
Q3 2020 Q3 2021 YTD 2020 YTD 2021
Cloud
Columbus Care contracts
Subscriptions
243
273
904
938
Q3 2020 Q3 2021 YTD 2020 YTD 2021
7 Q3 Report 2021
YTD 2021, Columbus realised a profit be-
fore tax of DKK 39m, corresponding to a
decrease of 17%. The decrease is mainly
caused by the decline in EBITDA. How-
ever, depreciations and financial in-
come/expense pull in a positive direction.
Increase in recurring revenue
In Q3 2021, recurring revenue increased
by 6% to DKK 73m (Q3 2020: DKK 69m),
and now constitute 23% of total revenue
(Q3 2020: 24%). The development in the
recurring revenue in Q3 shows progress in
Columbus Care contracts (+5%).
YTD 2021, recurring revenue increased by
8% to DKK 232m (YTD 2020: DKK 215m),
and constitutes 21% of total revenue (YTD
2020: 20%).
The development in recurring revenue
YTD 2021 shows progress in both Cloud
(18%) and Columbus Care (16%). Sub-
scriptions continued to decline as our cus-
tomers are converting to cloud. Going for-
ward, Columbus expects subscriptions to
decline to insignificant amounts as part of
the cloud conversion.
Cash
Cash flow from operating activities was
negative with DKK 28m due to a signifi-
cant reduction in other payables.
The development in cash flow YTD 2021
is negative by DKK 114m. Cash flow is
impacted by the divestment of subsidiar-
ies, dividend payment and a repayment of
a bank loan.
Equity
Columbus’ equity increased by net DKK
54m since 31 December 2020, primarily
due to the capital increase through war-
rants exercise. With a total equity of DKK
770, Columbus has a solvency of 57%
(2020: 43%). The high solvency ratio
leaves Columbus in a strong financial po-
sition.
Events after the balance sheet date
Divestment of US SMB Business Unit
On 1 November 2021, Columbus com-
pleted the divestment of its US SMB Busi-
ness Unit to Enavate. The total net pro-
ceeds of USD 16.5m are paid in two in-
stallments, USD 8.0m in cash at comple-
tion and additional USD 8.5m in cash at
the latest 30 April 2022. The sale of the
US SMB Business will have marginal im-
pact on the corporate equity.
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 Q3 Report 2021
Financial guidance
Columbus experience a continued in-
crease in demand for our services and dig-
ital solutions. Despite the continued de-
cline in revenue from software and cloud
management believes that there are good
business opportunities going forward.
Columbus’ ambition during the current
strategy period is to gradually increase
profitable growth to minimum 10% annu-
ally by 2023.
Based on the financial performance YTD
2021, current order book and pipeline, our
guidance for full-year 2021 will remain un-
changed as follows. However, d
ue to the divestment of the SMB business
our guidance is adjusted accordingly. As
the SMB business will be reported as dis-
continued business, revenue guidance will
be reduced by DKK 150m and EBITDA re-
duced by DKK 25m.
Revenue is hereafter expected to be in the
range of DKK 1,500m – 1,650m corre-
sponding to a growth of 5% to 15%.
EBITDA is hereafter expected to be in the
range of DKK 100m – 125m correspond-
ing to -16% to +5% compared to 2020.
Outlook for 2021
DKKm
Revenue EBITDA
2021 Outlook
1,650 - 1,800 125 - 150
US SMB impact
-150 -150 -25 -25
2021
Adjusted outlook 1,500 - 1,650 100 - 125
Implied growth to 2020 result
5% - 15% -16% - 5%
9 Q3 Report 2021
Statement by management
Executive Board
Board of Directors
10 Q3 Report 2021
10 Q3 Report 2021
Financial
statements
11 Q3 Report 2021
DKK ´000
Note Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Net revenue
2 322,832 289,858 1,090,060 1,065,869 1,431,113
External project costs
-47,903 -42,944 -172,622 -193,210 -263,147
Gross profit
Staff expenses and
remuneration
3 -230,527 -208,178 -747,759 -703,099 -957,177
Other external costs
-38,506 -28,894 -89,242 -98,310 -133,029
Other operating income
Other operating costs
-2,613 -166 -1,008 -170 -7
EBITDA before
share
-based payment 4,909 37,858 79,766 99,752 124,018
Share
-based payment 3 -1,276 -1,216 -1,880 -3,649 -4,479
EBITDA
Depreciation, amortization and
impairment
4 -12,538 -12,356 -36,938 -37,739 -49,960
Operating profit (EBIT)
-8,905 24,286 40,948 58,364 69,579
Financial income
Financial expenses
-2,473 -9,075 -9,296 -16,450 -17,801
Profit before tax from continuing
operations
-11,348 18,106 39,087 47,143 52,727
Corporate tax
Profit after tax from continuing
operations
-9,467 4,859 34,421 29,703 42,318
Profit after tax from
discontinued operations
8
Profit after tax for the period
-4,279 9,628 770,737 52,217 48,562
DKK ´000
Note Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Items that may be reclassified
subsequently to profit and loss:
Foreign exchange adjustments of
subsidiaries
-697 -6,373 4,757 -25,902 -5,916
Other comprehensive income
-697 -6,373 4,757 -25,902 -5,916
Total comprehensive income for
the period
-4,976 3,255 775,494 26,315 42,646
Profit after tax allocated to:
Shareholders in Columbus A/S
-4,279 9,670 771,344 52,173 48,492
Minority interests
-4,279 9,628 770,737 52,217 48,562
Total comprehensive income
allocated to:
Shareholders in Columbus A/S
-4,976 3,299 776,102 26,281 42,588
Minority interests
-4,976 3,255 775,494 26,315 42,646
Earnings per share of DKK 1.25
(EPS)
-0.03
Earnings per share of DKK 1.25, di-
luted (EPS
-D)
-0.03 0.08 6.01 0.42 0.39
Statement of comprehensive income
12 Q3 Report 2021
DKK ´000
Note 30 Sep 2021 30 Sep 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 82,533 86,371 87,616
Deferred tax assets
Other receivables
Total non
-current assets
Trade receivables
5 234,544 203,971 222,571
Contract
assets 6 7,686 25,190 14,733
Corporate tax receivables
Other receivables
Prepayments
Receivables
Cash
Total
current assets 342,320 412,009 438,944
Assets classified as held for sale
10 110,523 208,007 214,481
TOTAL ASSETS
DKK ´000
Note 30 Sep 2021 30 Sep 2020 31 Dec 2020
EQUITY AND
LIABILITIES
Share capital
Reserves on foreign currency translation
-41,511 -66,257 -46,269
Retained profit
Group shareholders' equity
Minority
interests 0 3,160 3,184
Equity
Deferred tax
Other provisions
Debt to credit institutions
Lease liability right
-of-use assets 54,906 59,557 59,929
Non
-current liabilities 152,371 270,009 281,759
Debt to credit institutions
Contingent consideration
Contract liabilities
6 11,406 18,490 19,607
Trade payables
Corporate tax payables
Other payables
Other provisions
Accruals and deferred income
Lease liability right
-of-use assets 31,128 31,118 32,006
Current
liabilities 418,625 519,564 549,610
Total liabilities
Total liabilities relating to assets
classified as held for sale
10 3,356 86,720 93,891
TOTAL EQUITY AND LIABILITIES
Balance sheet
13 Q3 Report 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 0 390 0 390
Disposal of minority interest
-2,576
-2,576
Payment of dividend
Balance at 30 Sep 2021
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
Share
-based payment 0 0 3,649 0 3,649
Balance at 30 Sep 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 Q3 Report 2021
DKK ´000
Note Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Operating profit (EBIT)
-8,905 24,286 40,948 58,364 69,579
Non
-recurring income and
expenses from acquisitions
Depreciation, amortization and
impairment
4 12,538 12,356 36,938 37,739 49,960
Cost of incentive scheme
Changes in net working capital
-29,648 -61,898 -99,265 -3,614 25,236
Cash flow from primary activities
-24,739 -24,040 -20,989 96,138 103,488
Interest received, etc.
Interest paid, etc.
-1,833 -7,017 -7,913 -10,136 -3,363
Corporate tax paid
-4,415 -1,858 -18,266 -4,428 -6,019
Cash flow from operating activities
discontinued operations
8 2,836 15,696 20,248 70,057 96,162
Cash flow from operating
activities
-28,121 -16,972 -22,025 152,102 190,862
Net investment in
development projects
Acquisition of tangible assets
-2,605 -902 -6,243 -3,145 -3,832
Acquisition of intangible assets
-12,211 -347 -20,380 -347 -9,408
Disposal of tangible assets
Acquisition of subsidiaries and
activities
7 0 0 -74,152 -74,015 -75,147
Disposals of subsidiaries and
activities
9 0 -2,032 815,500 -2,032 -2,696
Cash flow from investing activities
discontinued operations
8 0 -7,157 -7,479 -27,164 -37,256
Cash flow from investing
activities
-14,769 -14,679 707,292 -111,379 -127,830
DKK ´000
Note Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Proceeds from capital
increase/warrants exercised
Overdraft facilities
-41,051 0 -41,051 0 0
Repayment of lease liabilities
-8,527 -8,868 -25,881 -27,129 -36,050
Dividends paid
-81,744 0 -775,658 0 0
Cash flow from financing activities
discontinued operations
8
-2,043
-13,354
-5,951
-7,922
Cash flow from financing
activities
-126,467 -10,911 -799,374 -33,080 -43,972
Total net change in cash and
cash equivalents
-169,357 -42,562 -114,107 7,643 19,060
Cash funds at the beginning of the
period
Exchange rate adjustments
-5,396 3,700 1,473 -2,854 -2,111
Cash funds at the end of the
period
Cash flow
15 Q3 Report 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 Q3 Report 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 Q3 Report 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
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Sale of services
Cloud ERP
142,557 138,247 521,001 537,637 713,548
Columbus Care
61,180 51,912 196,844 175,408 235,405
Digital Commerce
31,234 23,683 112,684 97,823 128,059
Data & Analytics
7,090 5,652 20,059 17,495 24,007
Customer
Experience & Engagement 3,992 5,091 20,552 17,835 23,762
Other Local Business
26,963 18,806 67,296 57,883 77,080
Total sale of services
273,016 243,392 938,437 904,080 1,201,861
Sale of products
Cloud ERP
38,623 37,708 107,899 120,894 167,130
Columbus Care
3,775 2,874 13,355 10,877 17,413
Digital Commerce
3,716 1,721 10,896 7,541 10,196
Data & Analytics
880 113 1,536 586 895
Customer Experience & Engagement
486 286 1,480 1,565 2,741
Other Local Business
2,337 3,765 16,457 20,325 30,877
Total sale of products
49,816 46,466 151,623 161,789 229,252
Total net revenue
322,832 289,858 1,090,060 1,065,869 1,431,113
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 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
YTD 2021
58%
19%
11%
2%
2%
8%
Cloud ERP
Columbus Care
Digital Commerce
Data & Analytics
Customer Experience & Engagement
Other Local Business
Note
2 – Segment data
18 Q3 Report 2021
Notes
Note 2
– Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Russia Other Total
Q3 2021
Sale of services
107,803 55,261 45,466 34,100 14,975 15,263 148
273,016
Sale of products
14,033 17,708 4,711 9,975 3,154 235 0
49,816
Total net revenue
121,836 72,969 50,177 44,075 18,129 15,498 148 322,832
Gross profit
103,873 56,239 45,103 39,359 13,160 14,525 2,670
274,929
EBITDA
9,679 -4,644 3,652 2,699 -4,265 1,547 -5,035
3,633
Operating profit (EBIT)
-8,905
Profit before tax
-11,348
Profit after tax
-9,467
Average number of employees
482 291 140 174 51 198 300 1,636
Q3 2020
Sale of services
93,105 53,185 32,176 32,924 19,055 12,902 45
243,392
Sale of
products 6,794 24,005 3,153 5,496 4,821 2,197 0
46,466
Total net revenue
99,899 77,190 35,329 38,420 23,876 15,099 45 289,858
Gross profit
74,937 70,499 27,841 35,208 19,592 12,841 5,996
246,914
EBITDA
-11,413 40,541 4,849 3,998 -637 1,135 -1,831
36,642
Operating profit (EBIT)
24,286
Profit before tax
18,106
Profit after tax
4,859
Average number of employees
522 267 129 172 59 180 277 1,606
*Other consist of
India, Poland, Czech and other shareholder costs
19 Q3 Report 2021
Notes
Note 2
– Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Russia Other Total
YTD 2021
Sale of services
393,406 182,589 170,943 107,251 43,280 39,094 1,874
938,437
Sale of products
31,882 55,727 18,785 27,722 13,675 3,832 0
151,623
Total net revenue
425,288 238,316 189,728 134,973 56,955 42,926 1,874 1,090,060
Gross profit
347,026 207,658 135,313 129,234 42,046 37,966 18,195
917,438
EBITDA
34,270 13,005 20,168 12,438 -13,915 3,031 8,889
77,886
Operating profit (EBIT)
40,948
Profit before tax
39,087
Profit after tax
34,421
Average number of employees
494 271 135 174 56 182 296 1,608
YTD 2020
Sale of services
398,483 184,927 112,915 107,821 58,902 40,699 333
904,080
Sale of products
25,428 59,806 23,539 21,835 21,785 9,396 0
161,789
Total net revenue
423,911 244,733 136,454 129,656 80,687 50,095 333 1,065,869
Gross profit
310,117 219,781 99,998 115,022 61,025 42,137 24,579
872,659
EBITDA
7,536 53,831 15,222 13,168 -6,442 4,054 8,734
96,103
Operating profit (EBIT)
58,364
Profit before tax
47,143
Profit after tax
29,703
Average number of employees
587 276 133 177 64 190 272 1,699
*Other consist of India, Poland, Czech and other shareholder costs
20 Q3 Report 2021
Notes
Legal entities
Non-current assets
DKK ´000
30 Sep 2021 30 Sep 2020 31 Dec 2020
Sweden
487,504 456,620 498,248
Denmark
188,965 153,031 156,263
Norway
75,222 69,288 72,159
United Kingdom
50,046 48,704 49,108
USA
41,253 152,239 142,368
Russia
35,068 39,411 34,894
Rest of the world
13,276 35,428 34,400
Total
891,334 954,721 987,440
Note 2
– Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Russia Other Total
2020
Sale of services
538,377 247,746 140,772 143,747 76,727 54,089 403
1,201,861
Sale of products
37,562 83,452 35,017 28,882 29,152 15,187 0
229,252
Total net revenue
575,939 331,198 175,789 172,629 105,879 69,276 403 1,431,113
Gross profit
426,108 287,511 131,262 154,030 80,311 56,295 32,449
1,167,966
EBITDA
11,582 69,798 16,051 18,538 -6,954 5,570 4,954
119,539
Operating profit (EBIT)
69,579
Profit before tax
52,727
Profit after tax
42,318
Average number of employees
548 272 130 174 62 180 278 1,644
*Other consist of India, Poland, Czech and other shareholder costs
Non-current assets distributed in legal entities
The Group’s non-current assets distribution in geographical areas are specified below. Non-current assets are
distributed according to location and legal relation.
In order to be able to estimate the results of the segments and allocate resources between these, the Board of
Directors also monitors the tangible, intangible and financial assets related to each segment.
21 Q3 Report 2021
Notes
Note 3 – Staff expenses and remuneration
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Staff expenses
Salary and wages
201,041 185,202 616,846 578,782 780,157
Other social security costs
33,761 28,143 102,476 101,032 141,646
Other staff expenses
-4,275 -5,167 28,437 23,285 35,374
Staff costs before share
-based payment 230,527 208,178 747,759 703,099 957,177
Share
-based payment 1,276 1,216 1,880 3,649 4,479
Staff expenses
231,803 209,394 749,639 706,748 961,656
Average number of employees
1,636 1,606 1,608 1,699 1,644
Note 4 – Depreciation, amortization and impairment
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Depreciation
8,854 9,155 27,071 28,168 37,433
Amortization
3,684 3,201 9,867 9,571 12,527
Total depreciation, amortization
and impairment
12,538 12,356 36,938 37,739 49,960
22 Q3 Report 2021
Notes
DKK ´000
30 Sep 2021 30 Sep 2020 31 Dec 2020
Receivables (gross) at 1 Jan
241,749 322,535 322,535
Change in
receivables during the period 9,894 -99,751 -80,786
Receivables (gross) end of period
251,643 222,784 241,749
Provisions for bad debt at 1 Jan
19,178 15,304 15,304
Change in provisions for bad debt during the period
-2,060 3,310 3,799
Loss
realized during the period -19 199 75
Provisions for bad debt end of period
17,099 18,813 19,178
Carrying amount end of period
234,544 203,971 222,571
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 Sep 2021 30 Sep 2020 31 Dec 2020
Age of receivables (gross):
Not due
216,315 164,708 167,236
0
-30 days 5,643 26,783 48,834
30
-60 days 9,315 7,769 9,827
61
-90 days 3,561 4,277 2,771
91
-180 days 4,714 4,800 4,508
181
-270 days 2,424 4,446 954
270
-360 days 855 4,988 1,874
Above 360 days
8,816 5,013 5,745
Total
251,643 222,784 241,749
DKK ´000
30 Sep 2021 30 Sep 2020 31 Dec 2020
Age of impairment:
Not due
24 313 2,599
0
-30 days 61 134 1,044
30
-60 days 233 194 446
61
-90 days 267 321 2,008
91
-180 days 4,419 3,404 4,508
181
-270 days 2,424 4,446 954
271
-360 days 855 4,988 1,874
Over 360 days
8,816 5,013 5,745
Total
17,099 18,813 19,178
DKK ´000
30 Sep 2021 30 Sep 2020 31 Dec 2020
Provision matrix:
Not due
0.0% 0.2% 1.6%
0
-30 days 1.1% 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 93.7% 70.9% 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 Q3 Report 2021
Notes
DKK ´000
30 Sep 2021 30 Sep 2020 31 Dec 2020
Balance at 1 Jan
-4,874 10,877 10,877
Changes contract assets during the period
-22,141 -35,576 -65,331
Changes on account billing and prepayments
during the period
21,217 29,149 47,526
Reclassified to assets held for sale
2,078 2,250 2,054
Balance at end of period
-3,720 6,700 -4,874
Work in progress
23,788
95,456
45,929
On account billing and prepayments
-27,508 -88,756 -50,803
Balance at end of period
-3,720 6,700 -4,874
The net value is included in the balance as follows:
Contract assets
7,686 25,190 14,733
Contract
liabilities -11,406 -18,490 -19,607
Balance at end of period
-3,720 6,700 -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.
Note
6 – Contract assets and contract liabilities
24 Q3 Report 2021
Notes
Acquisition of companies in 2021
There have been no acquisitions YTD 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 implementa-
tion of standardised business
solutions.
6 January Activity Activity 36,357
Total
36,357
With the acquisition of Advania Business Solutions, Columbus created 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
YTD 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
YTD 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 Q3 Report 2021
Notes
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Net revenue
33,807 73,705 142,845 266,860 355,706
External project costs
-14,150 -13,140 -54,930 -58,445 -78,789
Gross profit
19,657 60,565 87,915 208,415 276,917
Staff expenses and remuneration
-12,300 -36,418 -58,039 -126,203 -167,787
Other external costs
-1,271 -5,304 -7,781 -19,249 -25,165
Other operating income
0 296 15 312 314
Other operating costs
0
-7
0
-9
-10
EBITDA
6,086 19,132 22,110 63,266 84,269
Depreciation,
amortization and impairment -789 -10,751 -2,892 -31,503 -33,183
Operating profit (EBIT)
5,297 8,381 19,218 31,763 51,086
Financial income
0 0 195 115 49
Financial expenses
0 -549 -129 -725 -1,621
Profit before tax from discontinuing
operations
5,297 7,832 19,284 31,153 49,514
Corporate tax
0 -1,031 -20 -6,607 -13,768
Profit after tax from discontinuing
operations
5,297 6,801 19,264 24,546 35,746
Total gain
(loss) on divestment of discontinued
operations
-109 -2,032 717,052 -2,032 -29,502
Profit from discontinued operations
5,188 4,769 736,316 22,514 6,244
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Earnings per share from discontinued
operations of DKK 1.25 (EPS)
0.04 0.04 5.76 0.18 0.05
Earnings per share from discontinued
operations of DKK 1.25, diluted (EPS
-D)
0.04 0.04 5.73 0.18 0.05
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Gain on disposal of subsidiaries
0 0 721,712 0 0
Transaction costs related to disposal
-109 -2,032 -4,660 -2,032 -29,502
Total gain (loss) on divestment of
discontinued operations
-109 -2,032 717,052 -2,032 -29,502
DKK ´000
Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020
Cash flow from operating activities
2,836 15,696 20,248 70,057 96,162
Cash flow from investing activities
0 -7,157 -7,479 -27,164 -37,256
Cash flow from financing activities
4,855 -2,043 -13,354 -5,951 -7,922
Cash flow from discontinued
operations
7,691 6,496 -585 36,942 50,984
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.
Further, 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.
Finally, As of September 2021, the US SMB business segment is classified as held for sale and presented
as discontinued operations.
Note
8 – Discontinued operations
26 Q3 Report 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 Sep 2021 30 Sep 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 Sep 2021 30 Sep 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 -2,032 -2,696
Net Cash inflow arising on disposal
815,500 -2,032 -2,696
Note
9 – Disposal of subsidiaries
27 Q3 Report 2021
Notes
At 30 September 2021, the US SMB business segment is classified as held for sale.
DKK ´000
30 Sep 2021 30 Sep 2020 31 Dec 2020
Goodwill
101,312 81,734 81,683
Customer base
2,706 1,622 4,670
Development projects finalized
0 52,399 52,350
Development projects in progress
0 29,201 38,899
Property, plant and equipment
0 1,518 1,567
Right
-of-use assets 0 15,389 16,086
Trade receivables
6,505 21,084 15,739
Contract assets
0 968 950
Corporate tax receivables
0 0 1,050
Other receivables
0 1,250 676
Prepayments
0 2,842 811
Total assets classified as held for sale
110,523 208,007 214,481
Deferred tax
0 16,602 17,181
Other provisions
0 4,468 4,464
Lease liability right-of-use assets
0
16,439
15,409
Contract liabilities
2,078 3,218 3,004
Trade payables
0 4,184 3,278
Corporate tax payables
0 564 0
Other payables
1,278 9,634 13,380
Accruals and deferred income
0 31,611 37,175
Total liabilities relating to assets classified
as held for sale
3,356 86,720 93,891
Net assets
107,167 121,287 120,590
Note
10 – Assets classified as held for sale
28 Q3 Report 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 Q3 Report 2021
Notes
For more information about Columbus visit www. columbus global.com