1 Interim Report Q1 2023
Q3Fyear pNew
Interim Report Q1 2023
2 Interim Report Q1 2023
1
6 May 2023
Highligh
ts
Q1
2023 highlights
•
Revenue growth of 7% amounting to
DKK 391m. 12% growth in constant
currencies
• EBITDA amounts to DKK 39m, and an
EBITDA margin of 10% compared to
8% in Q1 2022
•
Efficiency of 67% in Q1 2023, a 5 per-
centage point increase compared to
Q1 2022
•
Acquisition of ICY Security ApS, to be
fully consolidated from 1 April 2023.
Outlook updated
On 1
1 April 2023, the financial full-year guidance for 2023 was updated as a con-
sequence of the acquisition of ICY Security
:
•
Revenue guidance adjusted to DKK 1,550m – 1,600m, corresponding to an or-
ganic growth of 8-12%.
•
EBITDA guidance adjusted to DKK 119m – 139m, equal to a margin of 7.4% -
9.0%
7
% revenue growth in Q1 2023 including a negative impact from currencies of 5 percentage points
(
12% constant currency growth in Q1). Efficiency was 67% which contributed significantly to
impro
ved earnings. EBITDA result was DKK 39m, which is an improvement compared to last year
and
compared to previous quarters. Further, Columbus announced the acquisition of ICY Security,
setting the foundation
for a new business area.
“Our unwavering focus on improving efficiency
, improved project quality and cross sales is now reflected in the
significantly improved EBITDA margin of 10%. We delivered a solid result in Q1 2023, and we have a positive view
of the development with a strong pipeline and order backlog”
.
CEO & President
Søren Krogh Knudsen
2
3
4
5
7
8
9
Contents
Highlights
New customer wins
boost Q1 efficiency and
earnings
Key figures and ratios
Solid start to 2023
Outlook for 2023
Statement by
management
Financial statements
Webcast 16 May 2023 at
13:00 CET:
Webcast and presentation
material: LINK
Registration to attend
telephone conference: LINK
Ballerup (Headquarter)
DK-2750 Ballerup
Tel: +45 70 20 50 00
3 Interim Report Q1 2023
The
transformation
Columbus has in recent years transformed
into an advisory and delivery company fo-
cusing on larger enterprise customers.
Simplification and changes were needed
to be able to deliver sustainable growth in
the future, and we are now starting to see
the results of the many resources invested
in a new organization and an optimized
delivery model.
W
e have been streamlining the operations
on many levels to improve efficiency
1
and
cash flow. Our business foundation stands
stronger delivering improved project qual-
ity, improved cash flow and organic growth
quarter after quarter, and we are now
ready to grow through acquisitions. It is
decisive that the acquisition criteria are
met in terms of adding customer value,
complementing our product portfolio, fi-
nancially sound and with highly skilled em-
ployees – in other words, the right domain
expertise at the right time and the right
price. That was the case with ICY Secu-
rity.
Adding cyber security to our services
Our customers have requested advisory in
the cyber security area for some time, and
we were very pleased to announce the ac-
quisition of ICY Security, a Danish cyber
security company, on 11 April 2023. We
have added a very important component
to our current business, and combined we
see many synergies in international cross-
selling.
ICY Security is one of the largest consul-
tancies in the Nordics within Identity & Ac-
cess Management (IAM) with many years
of experience within cyber security. 50
highly skilled employees have joined us,
and ICY Security adds more than 70 me-
dium-sized and large enterprises to our
customer portfolio.
Q1 progress on all fronts
In Q1 2023, we have realized DKK
390.5m in revenue - a growth of 7% (12%
in con-stant currencies). We are off to a
good start in 2023 and on track to reach
our goal of organic revenue growth of
10% by 2023.
T
he currency development in especially
Sweden and Norway has had a negative
impact on the results, but the underlying
activity has more than met our expecta-
tions with many new customers and a pos-
itive impact from the announced price in-
creases.
In Q1 2023, EBITDA ended at DKK 39.2m,
corresponding to an EBITDA margin of
10%. This is a milestone we have been
chasing, and we see continued opportuni-
ties to improve earnings by improving our
efficiency and delivery quality. In Q1 2023
efficiency was lifted by further 5 percent-
age points to 67%, up from 62% in Q1
2022.
Strong order backlog
Our consistent focus on delivering value-
added solutions to our customers has re-
sulted in a growing number of new orders
and a strong order backlog.
W
e have changed the sales pattern in the
organization and have focused on large
tenders across several departments and
functions to meet the unique and often
complex needs of both new and existing
customers.
T
he newly acquired customers, who are
within Manufacturing, Retail & Distribution
and the Food & Process industries have a
large contract potential, which we are look-
ing forward to unfolding.
Adjusted 2023 expectations maintained
In connection with the acquisition of ICY
Security in April 2023, the expectations for
2023 were raised to a:
• Revenue of DKK 1,550m – 1,600m,
corresponding to a growth of 12-15%
and an organic growth of 8-12% (con-
stant currencies)
• EBITDA of DKK 119m – 139m, corre-
sponding to a margin of 7.4%-9.0%.
B
ased on the development in Q1 2023,
our strong pipeline and order backlog, we
have a positive view of the future. We will
continue to drive growth, improve effi-
ciency and deliver value to our customers.
T
he positive development in Columbus is
the result of dedication and hard work – it
is the result of teamwork, and the Colum-
bus spirit stands strong to the benefit of
our customers.
New customer wins boost Q1 efficiency and earnings
Off to a good start
of the year delivering organic revenue growth of 7% (12% in constant currencies) and EBITDA
improvement of 33%. The positive development is a testament to our persistent focus on optimizing our delivery organization
and once again efficiency increased reachi
ng a level of 67% - up 5 percentage points compared to Q1 2022.
Søren Krogh Knudsen
CEO & President
1
Definition of efficiency: Consultancy hours invoiced to customers. Measured as a percentage of the total number of available consultancy hours.
4 Interim Report Q1 2023
DKK ´000
Q1 2023 Q1 2022 2022
Income related figures
Sale of services
376,880 343,040 1,317,042
Sale of products
13,620 20,774 72,392
Net revenue
390,500 363,814 1,389,434
Recurring revenue % of total revenue
12.4% 12.6% 13.8%
EBITDA
39,169 29,546 91,830
EBIT
24,984 15,671 35,135
Net financial items
-7,947 1,803 -3,047
Profit before tax
17,037 17,474 32,088
Profit after tax, continuing operations
15,260 13,417 29,903
Profit after tax, discontinued operations
3,462 -25,431 -41,216
Profit after tax
18,722 -12,014 -11,313
DKK ´000
Q1 2023 Q1 2022 2022
Balance sheet
Non
-current assets 778,041 832,251 796,222
Current assets
395,977 406,305 387,725
Total assets
1,174,018 1,238,556 1,183,947
Group shareholder equity
720,792 737,996 706,405
Total liabilities
453,226 500,560 477,542
Total equity and liabilities
1,174,018 1,238,556 1,183,947
Key figures and ratios
DKK ´000
Q1 2023 Q1 2022 2022
Investments in tangible assets
475 763 8,239
Cash flow
Cash flow from operating activities
35,720 19,556 27,431
Cash flow from investing activities
1,786 -10,835 -37,987
Cash flow from financing activities
-27,414 -26,706 -13,932
Total net change in cash and cash equivalents
10,092 -17,985 -24,488
Cash flow from continuing operations
10,092 -15,257 -25,227
Cash flow from discontinued
operations 0 -2,728 739
Total net change in cash and cash equivalents
10,092 -17,985 -24,488
Key ratios
EBITDA
-margin 10.0% 8.1% 6.6%
EBIT
-margin 6.4% 4.3% 2.5%
Equity ratio
61.4% 59.6% 59.7%
Return on equity
2.6% -1.1% -1.6%
Return on invested capital (ROIC)
3.8% 2.7% 7.0%
Number of shares
129,276 129,276 129,276
Average number of shares
129,276 129,276 129,276
Book value of equity per share (BVPS) (DKK)
5.58 5.71 5.46
Earnings per share (EPS) from continuing
operations (DKK) 0.12 0.10 0.23
Cash flow per share (DKK)
0.28 0.15 0.21
Share price, end of period (DKK)
6.44 9.40 6.29
Average full time employee for the period
1,530 1,507 1,536
The key figures and financial ratios above have been calculated in accordance with Danish Finance
Society's "Recommendation & Financial Ratios”
5 Interim Report Q1 2023
Revenue development
In Q1 2023 Columbus realized a revenue
of DKK 391m, corresponding to an in-
crease of 7% compared to Q1 2022. The
increase is driven by sale of services,
which increased by 10% compared to the
same period last year. Product sales de-
clined by 34% in Q1 2023, which is in line
with expectations.
We have seen a positive services develop-
ment in Q1 2023 within most Business
Lines, which gives us a good start to the
year.
We continue to see strong growth in our
strategic Business Lines Digital Commerce
(+28%), Data & Analytics (+26%) and
Customer Experience & Engagement
(+35%), which are key Business Lines in
extending our capabilities within digital ad-
visory.
Also our largest Business Line, Dynamics,
delivered a strong Q1 with growth of 8%.
M3, our second largest Business Line, has
had a more challenging start of 2023, with
a slight decrease in service revenue of
2%.
Strategy & Change is still in a “building up
phase” and is working on getting a critical
mass setup within the Scandinavian mar-
kets.
Development in Market Units
All our Market Units delivered significant
growth in service revenue in Q1 2023, alt-
hough currencies negatively impacted the
Group more than usual.
The Swedish market, which is our largest
market, delivered 5% increase in service
revenue in Q1 2023. The progress was
primarily driven by Dynamics and Digital
Commerce. The M3 Business Line de-
creased slightly in Sweden compared to
Q1 2022 due to postponement of new con-
tracts. Sweden was affected negatively by
DKK 10m due to the Swedish krone weak-
ening compared to DKK. Measured in con-
stant currencies revenue grew by 12%.
Denmark has accelerated their growth in
Q1 2023 with 23% growth, primarily driven
by Dynamics and Digital Commerce. M3
has decreased.
Solid start to 2023
Service revenue split on Business Lines
DKK ´000
Q1 2023 Q1 2022 ∆%
Dynamics
196,380 182,004 7.9%
M3
80,595 82,155 -1.9%
Digital Commerce
58,681 45,930 27.8%
Data & Analytics
19,366 15,319 26.4%
Customer Experience & Engagement
15,602 11,527 35.3%
Strategy & Change
1,819 2,439 -25.4%
Other
Local Business 4,437 3,666 21.0%
Total sale of services
376,880 343,040 9.9%
Total sale of products
13,620 20,774 -34.4%
Total net revenue
390,500 363,814 7.3%
Service revenue split on
Market Units
DKK ´000
Q1 2023 Q1 2022 ∆%
Sweden
145,865 139,097 4.9%
Denmark
80,451 65,565 22.7%
Norway
71,807 70,000 2.6%
UK
45,706 39,989 14.3%
US
22,020 19,961 10.3%
Other
10,059 7,275 38.3%
GDC
972 1,153 -15.7%
Total sale of services
376,880 343,040 9.9%
Total sale of products
13,620 20,774 -34.4%
Total net revenue
390,500 363,814 7.3%
6 Interim Report Q1 2023
Norway continues to deliver strong pro-
gress, although currency impacted nega-
tively by DKK 6m, bringing growth down to
3%. Measured in constant currencies rev-
enue grew by 11%. Dynamics has de-
creased in Norway, but M3, Digital Com-
merce, Data Analytics and Strategy &
Change all delivered growth.
The UK Market Unit delivered 14% growth
in Q1 2023, with Digital Commerce grow-
ing significantly. Dynamics, being the larg-
est business line in the UK, grew slightly in
Q1 2023 due to general lower activity.
Currency impacted the Market Unit nega-
tively by DKK 3m. Measured in constant
currencies revenue grew by 21%.
The US Market Unit closed Q1 2023 with
10% growth, although positively impacted
by currency by DKK 1m. Measured in con-
stant currencies revenue grew by 5%.
Recurring revenue
In Q1 2023 recurring revenue amounted to
DKK 49m, corresponding to a 4% increase
compared to Q1 2022. Cloud continued to
grow as expected.
Recurring Care contracts followed the
same trend as the overall service revenue
in Q1 2023, resulting in recurring revenue
constituting a stable part of total revenue
of around 12-13%.
Efficiency
Efficiency is a key performance indicator
for Columbus and remains a strong focus
area for management.
The efficiency in Q1 2023 was 67%, com-
pared to 62% in Q1 2022. The increase is
the result of a number of initiatives
launched during second half of 2022 and
is in line with expectations. Initiatives to
maintain and continue the healthy effi-
ciency improvement is ongoing.
EBITDA development
In Q1 2023 reported EBITDA amounted to
DKK 39m, which is an increase of DKK
10m compared to Q1 2022. The EBITDA
margin corresponds to 10.0%, which is
considered satisfactory and is an improve-
ment compared to Q1 2022 with an
EBITDA margin of 8.1%.
During 2022, we implemented significant
organizational and operational initiatives,
recruited many new employees to fuel for
growth and made significant investments
in growing and extending new global Busi-
ness Lines. These investments are show-
ing their potential in Q1 2023, affecting
EBITDA positively.
On the cost side, the main increase is sal-
ary cost (3%), which is affected by the in-
creased number of employees (average
FTE’s), which increased by 1.5% from Q1
2022 (1,507) to Q1 2023 (1,530), as well
as salary adjustments made in Q2 2022.
Other external cost increased by 10% in
Q1 2023 compared to Q1 2022, which is in
line with the budget expectations.
Profit before tax
Compared to Q1 2022, profit before tax re-
mained stable. The result is affected by
the increased EBITDA but negatively af-
fected by weakened currencies. The
Group is primarily affected by the weak-
ened Swedish and Norwegian krone which
are decreased by 4.2% and 9.3% com-
pared to the Danish krone measured year
over year.
Discontinued operations
In Q1 2023 no new events related to dis-
continued operations occurred. The in-
come of DKK 3m relates to gains on for-
mer divestments.
Cash
Cash flow from operating activities in Q1
2023 was positive with DKK 36m. The
cashflow is significantly improved com-
pared to Q1 2022, due to the better per-
forming business as well as a stabilized
net working capital.
The Group liquidity has generally been im-
proved and limited the use of short-term
credit.
Equity
Columbus’ equity increased by net DKK
14m since 31 December 2022, primarily
due to the positive result. Change in cur-
rency has impacted the equity negatively
by DKK 4m.
D
evelopment in recurring revenue
Development in
efficiency
2
4
40
38
7
5
49
47
Q1 2023 Q1 2022
Cloud
Columbus Care contracts
Subscriptions
67%
63%
61%
64%
62%
Q1/23 Q4/22 Q3/22 Q2/22 Q1/22
7 Interim Report Q1 2023
Financial guidance updated
During the past two years Columbus has
continued to deliver solid organic growth
despite increased uncertainty in our busi-
ness environment.
Investments in new business areas and
higher value consulting skills have proven
to deliver growth. Equally, streamlining of
our operations and processes continues to
deliver positive impact.
Columbus has started 2023 with a solid
Q1 result, and the business is in accord-
ance with the guidance announced for
2023. In April, we announced the acquisi-
tion of ICY Security, as a direct conse-
quence the guidance was adjusted.
Revenue guidance
Our top-line is developing satisfactorily
and showing a positive start to the year.
Further, Columbus acquired ICY Security
as of 11 April and consequently adjusted
the full-year revenue guidance, from a
range of DKK 1,500m – 1,550m to:
• Revenue adjusted to DKK 1,550m –
1,600m, corresponding to a growth of
12-15% and an organic growth of 8-
12%, both in constant currencies.
EBITDA guidance
To reflect the increased expectations to
earnings after the acquisition of ICY Secu-
rity, Columbus adjusted the EBITDA guid-
ance for 2023 on 11 April 2023 from a
range of DKK 115m – 135m to:
• EBITDA adjusted to DKK 119m –
139m, corresponding to an EBITDA
margin of 7.4% - 9.0%
Columbus’ ambition during the current
strategy period is maintained to gradually
increase organic growth to minimum 10%
annually by 2023.
Outlook for 2023
The financial guidance
was updated on 11 April 2023.
8 Interim Report Q1 2023
We have today considered and approved
the interim financial report for the period 1
January 2023 – 31 March 2023 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.
W
e 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 31 March 2023,
and of the results of the Group’s opera-
tions and cash flows during the first three
months of 2023.
W
e consider the management report to
give a true and fair view of the develop-
ment in the Group’s business activities
and financial situation, the financial result
for the period and the Group’s financial po-
sition 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, 16 May 2023
Executive Board
Board of Directors
9 Interim Report Q1 2023
9 Interim Report Q1 2023
Financial
statements
10 Interim Report Q1 2023
DKK ´000
Note Q1 2023 Q1 2022 2022
Net revenue
2 390,500 363,814 1,389,434
External project costs
-38,316 -32,825 -135,350
Gross profit
Staff expenses and remuneration
3 -278,101 -269,379 -1,036,275
Other external costs
-35,265 -32,064 -144,090
Other operating income
EBITDA
Depreciation, amortization and impairment
4 -14,185 -13,875 -56,695
Operating profit (EBIT)
Financial income
Financial expenses
-8,268 -1,953 -5,956
Profit before tax from
continuing operations
Corporate tax
-1,777 -4,057 -2,185
Profit after tax from
continuing operations
Profit (loss) after tax from
discontinued operations
8
Profit (loss) after tax for the period
DKK ´000
Note Q1 2023 Q1 2022 2022
Items that may be reclassified
subsequently to profit and loss:
Foreign exchange adjustments of subsidiaries
-4,396 8,712 -8,201
Other comprehensive income
-4,396 8,712 -8,201
Total comprehensive income for the period
Profit (loss) after tax allocated to:
Shareholders in Columbus A/S
Total comprehensive income allocated to:
Shareholders in Columbus A/S
Earnings per share of DKK 1.25 (EPS)
Earnings per share of DKK 1.25, diluted (EPS
-D)
Statement of comprehensive income
11 Interim Report Q1 2023
DKK ´000
Note 31 Mar 2023 31 Mar 2022 31 Dec 2022
ASSETS
Goodwill
Customer base
Internal applications
Development projects finalized
Property, plant and equipment
Right
-of-use assets 57,835 61,009 65,316
Deferred tax assets
Other receivables
Total non
-current assets
Trade receivables
5 259,878 265,750 254,800
Contract assets
6 8,300 17,532 5,822
Corporate tax receivables
Other receivables
Receivables from divestment of activities
8 58,218 56,952 59,264
Prepayments
Receivables
Cash
Total current assets
TOTAL ASSETS
DKK ´000
Note 31 Mar 2023 31 Mar 2022 31 Dec 2022
EQUITY AND LIABILITIES
Share capital
Reserves on foreign currency translation
-72,039 -50,730 -67,643
Retained profit
Equity
Deferred tax
Other provisions
Debt to credit institutions
Lease liability right
-of-use assets 34,323 34,697 40,796
Non
-current liabilities 114,295 114,000 120,514
Debt to
credit institutions 32,296 3,846 52,335
Contingent consideration
Contract liabilities
6 6,676 16,048 9,960
Trade payables
Corporate tax payables
Other payables
Other provisions
Accruals and deferred income
Lease liability right
-of-use assets 25,813 29,178 26,926
Current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Balance sheet
12 Interim Report Q1 2023
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits Equity
Q1 2023
Balance at 1 Jan 2023
Profit after tax
Currency adjustments of investments
in subsidiaries
Total comprehensive income
Share
-based payment 0 0 61 61
Payment of dividend
Balance at 31 Mar 2023
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits Equity
Q1 2022
Balance at 1 Jan 2022
Profit after tax
Currency adjustments of investments in
subsidiaries
Total comprehensive income
Share
-based payment 0 0 318 318
Balance at 31 Mar 2022
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits Equity
2022
Balance at 1 Jan 2022
Profit after tax
Currency adjustments of investments
in subsidiaries
Total comprehensive income
Share
-based payment 0 0 1,099 1,099
Payment of dividend
Balance at 31 Dec 2022
Statement of changes in equity
13 Interim Report Q1 2023
DKK ´000
Note Q1 2023 Q1 2022 2022
Operating profit (EBIT)
Depreciation, amortization and impairment
4 14,185 13,875 56,695
Cost of incentive scheme
Changes in net working capital
-2,147 -5,502 -61,086
Cash flow from primary activities
Interest
received, etc. 334 128 1,361
Interest paid, etc.
-1,181 -2,068 -6,669
Corporate tax paid
-516 -3,823 -169
Cash flow from operating activities
discontinued operations
8 0 957 1,065
Cash flow from operating activities
Acquisition of tangible assets
-475 -763 -8,239
Acquisition of intangible assets
-1,339 -4,229 -15,823
Disposal of tangible assets
Acquisition of activities
7 138 356 -5,415
Disposal of activities
9 3,462 -6,227 -8,768
Cash
flow from investing activities
DKK ´000
Note Q1 2023 Q1 2022 2022
Overdraft facilities
-20,039 -15,198 33,324
Repayment of lease liabilities
-7,375 -7,823 -30,770
Dividends paid
Cash flow from financing activities
discontinued operations
8 0 -3,685 -326
Cash flow from financing activities
-27,414 -26,706 -13,932
Cash flow from continuing operations
Cash flow from discontinued
operations
Total net change in cash and cash equivalents
Cash funds at the beginning of the period
Exchange rate adjustments
-6,478 -1,658 -5,668
Cash funds at the end of
the period
Cash flow
14 Interim Report Q1 2023
Note 1 – Material accounting principles 15
Note 2 – Segment data 15
Note 3 – Staff expenses and remuneration 19
Note 4 – Depreciation, amortization and impairment 19
Note 5 – Trade receivables 20
Note 6 – Contract assets and contract liabilities 21
Note 7 – Business combination 22
Note 8 – Discontinued operations 23
Note 9 – Disposal of activities 24
Key figures, ratios and Alternative Performance Measures 25
Notes
Note
Page
15 Interim Report Q1 2023
Notes
Note 1 – Material accounting principles
The consolidated interim financial report is prepared in accordance with IAS 34, Presentation of Interim Fi-
nancial Reporting, as approved by the EU, and additional Danish disclosure requirements for interim re-
ports of listed companies. 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 unchanged compared to 2022, except for
any new, amended or revised accounting standards and interpretations endorsed by the EU, effective for
the accounting period beginning on 1 January 2023.
For more information on the accounting policies, we refer to our Annual Report for 2022.
Note 2 – Segment data
In order to support decisions about allocation of resources and assessment of performance of the seg-
ments, the Group’s management reporting to the Executive Board is based on the following grouping of op-
erating segments:
Strategic Business Lines
Market Un
its
Global Delivery Centers (GDC)
Dynamics
M3
Digital Commerc
e
Data & Analytics
Customer Experience & Engagement
Strategy and Change
Other Local Business
Sweden
Denmark
Norwa
y
UK
U
S
Other
Poland
Czech Republic
India
Management monitors the business, primarily based on the Business Lines and secondarily on the geo-
graphical segments. Information about the Group’s Business Lines is stated below.
Along with the Focus23 strategy, the group has transformed its operations into a global operating model,
with the Strategic Business Lines becoming the primary driver for decision-making. Previously, Columbus
used geography to divide each segment. Markets are now a secondary driver and only used for assessing
market strategies and maintaining customer relations.
The Business Lines relate to the type of services and products that are delivered, and comprise of Dynam-
ics, M3, Digital Commerce, Data & Analytics, Customer Experience & Engagement and Strategy & Change.
The remaining revenue which does not fall into any of the above mentioned Business Lines, is classified as
Other Local Business.
Market Units comprise of significant geographical markets that the Group operates in. Management uses
the Market Units to assess market conditions and performance on revenue only.
The operating segments are measured from revenue to contribution, as this represents the significant part
of the operation of the segments. The balance sheet is measured for legal entities only.
Cost related to functions necessary to support the business is classified as Enabling Functions, and com-
prise of all cost not directly related to a specific Business Line, including costs related to facility, marketing,
finance, people, legal and management. Enabling Functions mostly operate as global teams, servicing
across Business Line and geography.
16 Interim Report Q1 2023
Notes
Development in Business Lines
All comments which are relating to the growth of the Strategic Business Lines have been de-
scribed in the revenue development segment.
Reconciliation between EBITDA and Profit before tax is shown in the comprehensive income
statement.
Note
2 – Segment data (continued)
Business Lines Revenue Split YTD 2023
*Strategy & Change comprise <1% and hence is presented as 0% above.
53%
21%
15%
5%
4%
0%*
2%
Dynamics
M3
Digital Commerce
Data & Analytics
Customer Experience & Engagement
Strategy and change
Other Local Business
DKK ´000
Services Products
Total revenue
Direct costs Contribution CM %
Q1 2023
Dynamics
196,380 8,071
204,451
-143,807
60,644 29.7%
M3
80,595 1,989
82,584
-66,156
16,428 19.9%
Digital Commerce
58,681 775
59,456
-43,942
15,514 26.1%
Data & Analytics
19,366 190
19,556
-14,919
4,637 23.7%
Customer Experience & Engagement
15,602 139
15,741
-13,670
2,071 13.2%
Strategy & Change
1,819 0
1,819
-4,624
-2,805 -154.2%
Other Local Business
4,437 2,456
6,893
-3,883
3,010 43.7%
Total
376,880 13,620 390,500 -291,001 99,499 25.5%
Enabling Functions
-60,330
EBITDA
39,169
DKK ´000
Services Products
Total revenue
Direct costs Contribution CM %
Q1 2022
Dynamics
182,004 11,086
193,090
-143,143
49,947 25.9%
M3
82,155 6,995
89,150
-64,173
24,977 28.0%
Digital Commerce
45,930 707
46,637
-38,295
8,342 17.9%
Data & Analytics
15,319 67
15,386
-14,297
1,089 7.1%
Customer
Experience & Engagement 11,527 142
11,669
-9,676
1,993 17.1%
Strategy & Change
2,439 0
2,439
-2,892
-453 -18.6%
Other Local Business
3,666 1,777
5,443
-5,138
305 5.6%
Total
343,040 20,774 363,814 -277,614 86,200 23.7%
Enabling
Functions
-56,654
EBITDA
29,546
17 Interim Report Q1 2023
Notes
Accounting policies
Due to the changes within our reporting to the Executive board, two new performance measures has been
introduced.
Direct costs
Direct costs comprise all costs directly related to a given Business Line. This includes subcontractor costs,
staff costs for consultants, sales personnel as well as management for the given business line, other exter-
nal costs and other operating income & expenses.
Contribution and contribution margin (CM)
The contribution is comprise revenue for the given business line deducted all direct costs for the given Busi-
ness Line. Contribution margin is calculated as contribution divided by total revenue.
Note
2 – Segment data (continued)
DKK ´000
Services Products Total revenue Direct costs Contribution CM %
2022
Dynamics
693,988 49,149
743,137
-546,600
196,537 26.4%
M3
303,231 10,455
313,686
-251,546
62,140 19.8%
Digital Commerce
192,262 1,751
194,013
-158,349
35,664 18.4%
Data & Analytics
59,653 690
60,343
-53,391
6,952 11.5%
Customer Experience & Engagement
45,179 876
46,055
-44,367
1,688 3.7%
Strategy & Change
6,513 0
6,513
-11,905
-5,392 -82.8%
Other Local Business
16,216 9,471
25,687
-17,032
8,655 33.7%
Total
1,317,042 72,392 1,389,434 -1,083,190 306,244 22.0%
Enabling Functions
-214,414
EBITDA before warrants
91,830
Average FTE
Q1 2023
Q1 2022
2022
Business
Line
Dynamics
627 641 635
M3
270 260 270
Digital Commerce
219 193 209
Data & Analytics
80 71 76
Customer Experience & Engagement
69 64 62
Strategy & Change
14 10 11
Other Local Business
29 24 39
Business
Line average number of FTE 1,308 1,263 1,302
Enabling
Functions 222 244 234
Average number of FTE
18 Interim Report Q1 2023
Notes
Note
2 – Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Other GDC Eliminations Total
Q1 2023
Sale of services
145,865 80,451 71,807 45,706 22,020 10,059 972 0
376,880
Sale of products
5,788 3,036 1,730 2,421 645 0 0 0
13,620
Total revenue from own markets
151,653 83,487 73,537 48,127 22,665 10,059 972 0 390,500
Total revenue from group companies
8,946 12,347 1,537 2,383 758 1,097 25,182 -52,250 0
Total revenue
160,599 95,834 75,074 50,510 23,423 11,156 26,154 -52,250 390,500
Average number of FTE
444 296 183 194 50 37 326 0 1,530
Q1 2022
Sale of services
139,097 65,565 70,000 39,989 19,961 7,275 1,153 0
343,040
Sale of products
8,008 3,950 2,265 5,680 871 0 0 0
20,774
Total revenue from own markets
147,105 69,515 72,265 45,669 20,832 7,275 1,153 0 363,814
Total revenue from group companies
12,896 20,332 3,502 4,204 546 939 26,548 -68,967
0
Total revenue
160,001 89,847 75,767 49,873 21,378 8,214 27,701 -68,967 363,814
Average number of FTE
409 291 163 186 64 32 362 0 1,507
2022
Sale of services
525,024 252,862 262,271 159,916 80,284 32,337 4,348 0
1,317,042
Sale of products
25,168 20,412 9,019 12,880 4,913 0 0 0
72,392
Total revenue from own markets
550,192 273,274 271,290 172,796 85,197 32,337 4,348 0 1,389,434
Total
revenue from group companies 52,462 72,879 11,599 15,996 2,073 3,032 103,587 -261,628
0
Total revenue
602,654 346,153 282,889 188,792 87,270 35,369 107,935 -261,628 1,389,434
Average number of FTE
426 294 173 188 60 34 361 0 1,536
19 Interim Report Q1 2023
Notes
Note 3 – Staff expenses and remuneration
DKK ´000
Q1 2023 Q1 2022 2022
Staff expenses
Salary and wages
227,437 218,388 865,700
Other social security costs
32,971 33,384 137,720
Other staff expenses
17,632
17,289
31,756
Share
-based payment 61 318 1,099
Total s
taff expenses 278,101 269,379 1,036,275
Average number of FTEs
1,530 1,507 1,536
Note 4 – Depreciation, amortization and impairment
DKK ´000
Q1 2023
Q1 2022
2022
Depreciation
8,820 8,808 35,814
Amortization
5,365 5,067 20,881
Total depreciation, amortization and impairment
14,185 13,875 56,695
20 Interim Report Q1 2023
Notes
DKK ´000
31 Mar 2023 31 Mar 2022 31 Dec 2022
Receivables (gross) at 1 Jan
261,422 281,133 281,133
Change in receivables during the period
1,096 -10,333 -19,711
Receivables (gross) end of period
262,518 270,800 261,422
Provisions for bad debt at 1 Jan
6,622 11,550 11,550
Change in provisions for bad debt during the period
-4,015 -6,469 -7,074
Loss realized during the period
33 -31 2,146
Provisions for bad debt end of period
2,640 5,050 6,622
Carrying amount end of period
259,878 265,750 254,800
Provisions for bad debt are made based on the lifetime expected credit losses in line with the Group’s ac-
counting policies.
DKK ´000
31 Mar 2023 31 Mar 2022 31 Dec 2022
Age of receivables (gross):
Not due
206,709 209,778 174,400
0
-30 days 44,416 43,637 72,614
30
-60 days 3,675 6,398 9,009
61
-90 days 1,618 3,570 3,358
91
-180 days 5,311 6,096 1,724
181
-270 days 704 415 114
270
-360 days 71 263 3
Above 360 days
14 643 200
Total
262,518 270,800 261,422
DKK ´000
31 Mar 2023 31 Mar 2022 31 Dec 2022
Age of impairment:
Not due
65 301 5,091
0
-30 days
222 218 363
30
-60 days 92 160 226
61
-90 days 121 268 252
91
-180 days 1,351 2,782 431
181
-270 days 704 415 57
271
-360 days 71 263 2
Over 360 days
14 643 200
Total
2,640 5,050 6,622
DKK ´000
31 Mar 2023 31 Mar 2022 31 Dec 2022
Provision matrix:
Not due
0% 0% 3%
0
-30 days
0% 1% 0%
30
-60 days 3% 3% 3%
61
-90 days 7% 7% 8%
91
-180 days 25% 46% 25%
181
-270 days 100% 100% 50%
271
-360 days 100% 100% 67%
Over 360
days 100% 100% 100%
The change in provisions for bad debt as per 30 March 2023 is high partly due to improved collection pro-
cess and settlement of previous disputes with customers. We have no active disputes with customers as
per 31 March 2023.
Note
5 – Trade receivables
21 Interim Report Q1 2023
Notes
DKK ´000
31 Mar 2023 31 Mar 2022 31 Dec 2022
Balance at 1 Jan
-4,138 -5,815 -5,815
Changes contract assets during the period
4,003 4,510 136
Changes on account billing and prepayments
during the period
1,759 2,789 1,541
Balance at end of period
1,624 1,484 -4,138
Work in progress
17,669 18,039 13,666
On account billing and prepayments
-16,045
-16,555
-17,804
Balance at end of period
1,624 1,484 -4,138
The net value is included in the balance as follows:
Contract assets
8,300 17,532 5,822
Contract liabilities
-6,676 -16,048 -9,960
Balance at end of period
1,624 1,484 -4,138
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
22 Interim Report Q1 2023
Notes
Acquisition of companies in 2023
The Group has per 11 April 2023 acquired ICY Security ApS. The acquisition was a share purchase.
With the acquisition of ICY Security, Columbus expands its business to meet customers’ increasing de-
mand for secure access to business-critical data.
After recognition of identifiable assets, liabilities and contingent liabilities at fair value, goodwill in relation to
the acquisition was assessed to DKK 116.3m.
Estimated tax deductibility of goodwill for ICY Security ApS is DKK 116.3m.
The opening balance presented is a preliminary balance since post-closing work is still ongoing.
Acquisition of companies in 2022
There have been no acquisitions during 2022.
Opening balance
Note
7 – Business combination
Name
Primary
activity
Date
of control
gained
Acquired
ownership
Acquired
voting rights
Total consideration
DKK ’000
ICY Security ApS
Implementation of
Identity and Access
management solu-
tions.
1 April 100% 100% 120,643
Total
120,643
DKK ´000
ICY Security ApS Total 2023 Total 2022
Tangible
fixed assets 1,957 1,957 0
Other intangible assets
400 400 0
Total non
-current assets 2,357 2,357 0
Trade receivables
9,412 9,412 0
Work in progress
1,128 1,128 0
Prepayments
528 528 0
Other receivables
425 425 0
Cash
3,517 3,517 0
Total current assets
15,009 15,009 0
Trade payables
-1,609 -1,609 0
Debt to credit institutions
-68 -68 0
Corporation tax and deferred tax
-371 -371 0
Deferred income
-1,073 -1,073 0
Accruals
-6,975 -6,975 0
Other debt
-2,976 -2,976 0
Total current debt
-13,072 -13,072 0
Net assets acquired
4,294 4,294 0
Goodwill
116,349 116,349 0
Total consideration
120,643 120,643 0
Net working capital not paid
4,498 4,498 0
Acquired cash funds
-3,449 -3,449 0
Contingent consideration
-81,691 -81,691 0
Cash consideration on acquisition date
40,000 40,000 0
23 Interim Report Q1 2023
Notes
DKK ´000
Q1 2023 Q1 2022 2022
Net revenue
0 9,192 9,192
External project costs
0 -464 -464
Gross profit
0 8,728 8,728
Staff expenses and remuneration
0 -7,768 -7,768
Other external costs
0 -700 -700
EBITDA
0 260 260
Depreciation, amortization and impairment
0 -321 -321
Operating profit (EBIT)
0 -61 -61
Financial income
0 25 8,826
Financial expenses
0 -17,152 -3,772
Profit (loss) before tax from
discontinued operations
0 -17,188 4,993
Corporate tax
0 -243 -243
Profit (loss) after tax from
discontinued operations
0 -17,431 4,750
Total gain (loss) on divestment of
discontinued operations
3,462 -8,000 -45,966
Profit (loss) from discontinued
operations
3,462 -25,431 -41,216
Earnings per share from discontinued operations of DKK 1.25
(EPS)
0.03 -0.20 -0.32
Earnings per share from discontinued operations of DKK 1.25,
diluted (EPS
-D) 0.03 -0.20 -0.32
DKK ´000
Q1 2023 Q1 2022 2022
Cash flow from operating activities
0 957 1,065
Cash flow from investing activities
0 0 0
Cash flow from
financing activities 0 -3,685 -326
Cash flow from discontinued operations
0 -2,728 739
DKK ´000
Q1 2023 Q1 2022 2022
Gain (loss) on disposal of subsidiaries
0 -9,534 -9,534
Recirculation of historical currency adjustments
0 0 -34,938
Transaction costs related to disposal
3,462 1,534 -1,494
Total gain (loss) on divestment of
discontinued operations
3,462 -8,000 -45,966
Discontinued operations in 2023
There have not been any discontinued operations in 2023. The transaction costs is related to previous dis-
posals.
Note
8 – Discontinued operations
24 Interim Report Q1 2023
Notes
The transaction costs is related to previous disposals.
DKK ´000
31 Mar 2023 31 Mar 2022 31 Dec 2022
Goodwill
0 8,822 8,822
Property, plant and equipment
0 204 204
Right
-of-use assets 0 2,102 2,102
Trade receivables
0 1,762 1,762
Contract assets
0 3,731 3,731
Other receivables
0 176 176
Prepayments
0 1,790 1,790
Cash
0 9,274 9,274
Total
assets 0 27,861 27,861
DKK ´000
31 Mar 2023 31 Mar 2022 31 Dec 2022
Deferred tax
0 358 358
Lease liability right
-of-use assets 0 2,254 2,254
Contract liabilities
0 2,355 2,355
Trade payables
0 1,758 1,758
Corporate tax payables
0 5 5
Other payables
0 9,597 9,597
Total liabilities
0 16,327 16,327
Net assets disposed of
0 11,534 11,534
Cash and cash equivalents
0 2,000 2,000
Total consideration
0 2,000 2,000
Gain on disposal of activities
0 -9,534 -9,534
Net Cash inflow arising on disposal:
Consideration received in cash and
cash equivalents
0 2,000 2,000
Less: cash and cash equivalents disposed of
0 -9,274 -9,274
Transaction costs related to disposal
3,462 1,047 -1,494
Net
cash inflow arising on disposal 3,462 -6,227 -8,768
Note
9 – Disposal of activities
25 Interim Report Q1 2023
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.
Efficiency
Efficiency is calculated as all invoiced customer hours divided by available customer hours. Available cus-
tomer hours are calculated as normal work schedule hours for all productive employees, less hours for holi-
day and parental leave.
Key figures, ratios and Alternative Performance Measures
26 Interim Report Q1 2023
Notes
For more information about Columbus visit www.columbusglobal.com