1 Interim Report Q2 2022
New
Interim Report Q2 2022
2 Interim Report Q2 2022
24 August
2022
Highligh
ts
Q2
highlights
•
Revenue growth of 4% amounting to
DKK 390m
•
EBITDA decline of 30% amounting to
DKK 16m
•
Improvement of efficiency to 64%
up from 59% in Q4 2021
•
Hiring of new CFO Brian Iversen
•
Hiring of key leadership positions in
Market Units and Business Lines
•
Launch of new leadership principles
•
Pricing and cost initiatives
H1 highlights
•
Revenue growth of 6% amounting to
DKK 783m
•
EBITDA decline of 25% amounting to
DKK 46m
•
Divestment of Columbus Russia
with a negative effect of DKK 25m
•
Focus on improving efficiency
•
Stable number of employees
•
Strengthening our one Columbus cul-
ture
Maintained
outlook
•
Revenue is expected to be in the
range of DKK 1,525m to DKK 1,625m,
a growth of 8% to 15%.
•
EBITDA
is expected to be in the range
of DKK 120m to DKK 145m, a growth
of 34% to 62%.
Improvement of e
fficiency to 64% and 4% revenue growth in Q2 with progress in most business
area
s. EBITDA impacted by investments in organization and process improvements, salary
increases and post
-Covid normalization costs.
”
Our efforts to improve efficiency starts materializing. In Q2 2022 efficiency was 64% and continues to be one of
our key performance indicators to improve.
”, says CEO & President Søren Krogh Knudsen.
Contents
Highlights
2
Improved efficiency and
revenue growth in a
volatile busines
s
environment
3
Key figures and ratios
4
Revenue growth of 4% in
Q2 2022
5
Outlook for 2022
8
Statement by
management
9
Financial statements
10
Webcast 24 August
2022
at 13:00 CET:
Webcast and presentation
mater
ial: LINK
Registration to attend
telephone
conference: LINK
Ballerup (Headquarter)
DK
-2750 Balleru p
Tel: +45 70 20 50 00
3 Interim Report Q2 2022
The Business environment has changed
with the Russian invasion of Ukraine, in-
creased inflation, and uncertain supply
chains in the aftermath of Covid. As an in-
ternational company, Columbus is ex-
posed to these uncertainties and is acting
with precaution in all our markets as when
we promptly had to close our activities in
Russia following the invasion of Ukraine in
Q1 2022.
Satisfactory activity level
Despite the uncertainties, we have experi-
enced good progress across the business
in H1 2022. Revenue in the first half of
2022 grew organically by 6% to DKK
783m compared to DKK 740m in 2021.
The EBITDA result for the same period
ended at DKK 46m, a decline of 25% due
to investments in organization and process
improvements, salary increases and post-
Covid normalization of travel costs and so-
cial activities. Cost and pricing initiatives
have been initiated to improve margins
with effect in second half of 2022.
Our efforts to improve efficiency starts ma-
terializing. In Q2 2022 efficiency was 64%
up from 62% in Q1 2022 and 59% in Q4
2021 and continues to be one of our key
performance indicators to improve.
The average number of FTE’s has been
stable in the first half year of 2022, after a
large onboarding process in second half of
2021. As of 30 June 2022, we had 1,529
employees. We are still hiring continu-
ously, and we are ready to initiate a larger
intake of people if needed.
Creating business value
Last year, we implemented the largest or-
ganizational change in the company’s his-
tory, introducing a more customer centric
organization. The new approach allows us
to pull together the global strengths of our
Business Lines and create full customer
focus in our local Market Units. In 2022,
we have seen a clear positive effect of
these changes. In second half of 2022, we
will streamline our operating model further
and initiate additional cost measures un-
der our new Group CFO.
Ortofon A/S is a good example of this.
The company is a market leader in mag-
netic cartridges and micro-mechanics for
the medico industry, headquartered in
Denmark with subsidiaries in USA and Ja-
pan. After completing a successful stand-
ard migration assessment early 2022, we
initiated the upgrade of Ortofon’s ERP-
system. The project also includes a larger
Data & Analytics project to ensure that
Ortofon can gain insights and use their
data in an optimal way. In parallel, a new
digital commerce setup is expected to be
implemented in Ortofon’s subsidiary in the
US. The go live for the entire project is 31
March 2023.
Strengthening of the leadership
In Q2 2022 we have defined and imple-
mented new leadership principles comple-
menting our company values with the aim
to inspire and improve leadership globally.
On 4 June, we announced the hiring of our
new CFO Brian Iversen, who has an im-
pressive background from several listed
companies and within optimizing and
transforming global finance organizations.
His focus will be to further streamline busi-
ness processes and financial operations.
To further strengthen our leadership team,
we have announced two key positions. To
lead the growth of our Danish Market Unit,
we have hired Claes Reinholdt Kongs-
dam who has extensive experience in
strategic sales and consultancy. To lead
the growth of our global Business Line
Strategy & Change, we have hired
Michaël Navon who has a deep
knowledge and competencies within
management consulting, change manage-
ment and digital transformation.
This strengthening of the leadership will
accelerate our strategic journey to become
trusted digital advisor in our key markets.
On the right track
We have come far, but we still have a
great deal of work ahead of us in terms of
executing on our strategy.
Some of the key focus areas will be to ex-
tend digital advisory capabilities in more
areas of the business, introduce customer
development programs towards larger cus-
tomers, and refine our go-to-market ap-
proach within our business-critical solu-
tions.
With improved efficiency, current order
books and pipeline forecast, we remain
confident to maintain financial expecta-
tions for the year.
I want to thank our employees, customers,
and partners for their contribution to the
results.
Improved efficiency and revenue growth in a volatile business
environment
Focus on strengthening the organization and leadership team while driving increased efficiency across the
business have been the main highlights of
Q2 2022. Columbus maintains financial expectations for 2022.
Søren Krogh Knudsen
CEO & President
4 Interim Report Q2 2022
Key figures and ratios
DKK
´000 Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Income related figures
Sale of services
334,394 320,492 677,435 642,108 1,210,291
Sale of products
55,309 53,247 105,117 98,263 204,108
Net revenue
389,703 373,739 782,552 740,371 1,414,399
Recurring revenue % of total revenue
20.7% 20.2% 19.2% 18.5% 21.4%
EBITDA before share
-based payment 16,811 23,820 46,676 62,276 92,464
EBITDA
16,493 23,518 46,040 61,672 89,307
EBIT
2,153 11,918 17,825 38,213 40,444
Net financial items
110 -4,906 1,913 772 -3,410
Profit before tax
2,263 7,012 19,738 38,985 37,034
Profit after tax, continuing operations
900 3,094 14,319 32,681 43,547
Profit after tax, discontinued operations
411 6,240 -25,020 742,333 715,001
Profit after tax
1,311 9,334 -10,701 775,014 758,548
DKK ´000
30 Jun 2022 30 Jun 2021 2021
Balance sheet*
Non
-current assets 807,416 975,021 833,808
Current assets
416,700 518,273 434,789
Total assets
1,224,116 1,493,294 1,268,597
Group shareholder equity
702,935 773,522 740,980
Total liabilities
521,181 719,772 527,617
Total equity and liabilities
1,224,116 1,493,294 1,268,597
*All 202
1 balance sheet items include US SMB business which were sold off in November 2021, as well as the
Russian Business which were sold off in March 2022
.
DKK ´000
Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Investments in tangible assets
3,524 1,603 4,287 3,637 7,434
Cash flow
Cash flow from operating activities
-2,602 77,286 21,019 77,765 -13,863
Cash flow from investing activities
-12,300 -76,065 -23,136 730,677 754,434
Cash flow from financing
activities 18,782 -727,176 -8,419 -753,663 -847,512
Total net change in cash and cash
equivalents
3,880 -725,955 -10,535 54,778 -106,941
Cash flow from continuing operations
7,345 -732,027 -4,342 64,501 -81,517
Cash flow from discontinued
operations -3,465 6,072 -6,193 -9,723 -25,424
Total net change in cash and cash
equivalents
3,880 -725,955 -10,535 54,778 -106,941
Key ratios
EBITDA
-margin 4.2% 6.3% 5.9% 8.3% 6.3%
EBIT
-margin 0.6% 3.2% 2.3% 5.2% 2.9%
Equity ratio
57.4% 51.8% 57.4% 51.8% 58.4%
Return on equity
0.2% 1.3% -1.4% 102.4% 104.5%
Return on invested capital (ROIC)
1.0% 1.7% 3.0% 5.5% 10.1%
Number of shares
129,276 129,276 129,276 129,276 129,276
Average number of shares
129,276 127,083 129,276 127,083 128,192
Book value of equity per share
(BVPS) (DKK)
5.44 5.98 5.44 5.98 5.73
Earnings per share (EPS) from
continuing operations (DKK)
0.01 0.02 0.01 0.02 0.33
Cash flow per share (DKK)
-0.02 0.61 0.16 0.61 -0.11
Share
price, end of period (DKK) 7.89 10.64 7.89 10.64 9.54
Average full time employee for the period
The key figures and financial ratios above have been calculated in accordance with Danish Finance
Society's "Recommendation & Financial Ratios”
5 Interim Report Q2 2022
Revenue development
In Q2 2022 Columbus realised a revenue
of DKK 390m, corresponding to an in-
crease of 4% compared to Q2 2021. The
increase is driven by both service and
product sale with services being the major
contributor with a share of the total reve-
nue of 86%. Q2 2022 is affected by Easter
holiday when comparing year over year.
The first half year of 2022 closed with a
revenue of DKK 783m, corresponding to
an increase of 6%. Product sales, which
covers third-party software, increased by
7% in the period, while services grew by
6%.
We have seen a positive services
development in Q2 2022 within all Busi-
ness Lines, except for Cloud ERP which
continues to be a focus area to improve.
We are especially satisfied with our strong
growth in Digital Commerce (+13%), Data
& Analytics (+29%) and Customer Experi-
ence & Engagement (+75%), which are
key Business Lines in extending our capa-
bilities within digital advisory.
The product sales kept increasing despite
more customers moving towards cloud so-
lutions.
Development in Market Units
The majority of our main Market Units de-
livered good growth in Q2 2022, in the
range of 6% to 9%.
The decrease in Denmark
of 6% in Q2
2022 was mainly due to the loss of two
significant Columbus
Care Contracts.
However, the development covers great
new customer wins, welcoming Georg
Jensen and TIVOLI as new Columbus
Care customers and Bunker Holding with
a new data platform.
The US Market Unit has struggled with
slowdowns on existing projects, which re-
sulted in a decrease in service revenue of
11% compared to Q2 2021.
Norway continues to be our strongest mar-
ket, growing 6% in Q2 2022, thus deliver-
ing 10% growth in H1. In Q2 2022 the Nor-
wegian Market Unit initiated a large
UX/Digital Commerce project with Elkjøp.
At Bremnes Seashore we have started
implementing a Microsoft Dynamics 365
and Customer Experience project, and at
Norges Handelshøyskole we have en-
gaged in a new CRM project.
The Swedish market which is our largest
market delivered 9% increase in service
revenue in Q2 2022. In H1 2022 revenue
growth was 7%. Our Swedish Market Unit
has a particularly strong footprint within
the Infor M3 market and in Q2 we en-
gaged in a range of new M3 projects.
Revenue growth of 4% in Q2 2022
Service revenue split on Business Lines
DKK ´000
Q2 2022 Q2 2021 ∆% YTD 2022 YTD 2021 ∆%
Cloud ERP
171,155 174,885 -2.1% 350,666 363,793 -3.6%
Columbus Care
70,685 68,518 3.2% 142,493 131,211 8.6%
Digital Commerce
47,257 42,020 12.5% 93,187 81,451 14.4%
Data & Analytics
15,283 11,876 28.7% 30,602 16,982 80.2%
Customer Experience
& Engagement 12,538 7,167 74.9% 24,065 16,560 45.3%
Other Local Business
17,476 16,026 9.0% 36,422 32,111 13.4%
Total sale of services
334,394 320,492 4.3% 677,435 642,108 5.5%
Total sale of products
55,309 53,247 3.9% 105,117 98,263 7.0%
Total net revenue
389,703 373,739 4.3% 782,552 740,371 5.7%
Service revenue split on
Market Units
DKK ´000
Q2 2022 Q2 2021 ∆% YTD 2022 YTD 2021 ∆%
Sweden
141,746 130,374 8.7% 280,845 261,416 7.4%
Denmark
60,926 64,635 -5.7% 126,490 128,191 -1.3%
Norway
67,262 63,535 5.9% 137,262 125,387 9.5%
UK
38,079 35,053 8.6% 78,068 73,149 6.7%
US
18,302 20,569 -11.0% 38,263 39,107 -2.2%
Other
7,282 6,113 19.1% 14,557 13,524 7.6%
GDC
797 213 274.2% 1,950 1,334 46.2%
Total sale of services
334,394 320,492 4.3% 677,435 642,108 5.5%
Total sale of products
55,309 53,247 3.9% 105,117 98,263 7.0%
Total net revenue
389,703 373,739 4.3% 782,552 740,371 5.7%
6 Interim Report Q2 2022
Examples are SKF and Epiroc where we
signed new M3 ERP agreements and
Toyota Material Handling with a new
Columbus Care M3 contract. Within
Microsoft Dynamics 365 we also engaged
in a range of new projects with Peab Lam-
bertsson as a good example.
The UK Market Unit delivered 9% growth
in Q2 2022 as well, due to a number of
new customer projects such as Watson
Marlow where we signed a global Colum-
bus Care contract and kicked off a Dynam-
ics 365 implementation. Welllocks and
Belazu, part of William Jackson Food
Group, engaging in a rollout of Microsoft
Dynamics 365 and Co-op with a Digital
Commerce solution for their funeral care
business.
Increase in recurring revenue
In Q2 2022 recurring revenue amounted to
DKK 80m, corresponding to a DKK 5m in-
crease compared to Q2 2021. Cloud con-
tinues to grow and is expected to take
over for the majority of the current sub-
scriptions in the future.
Care contracts remain on a relatively sta-
ble level in both the quarter and YTD. In
Q2 2022, recurring revenue constituted
21% of total revenue compared to 20% in
Q2 2021.
Improved efficiency
Efficiency is a key performance indicator
for Columbus and remains a strong focus
for the management to continue improv-
ing.
Despite a heated job market, we have
maintained a stable number of employees
and improved efficiency significantly.
For Q2 2022 efficiency came in at 64%
which is considered good progress com-
pared to 62% Q1 2022 and 59% in Q4
2021.
During H1, we had a special focus on im-
proving efficiency in our Global Delivery
Center in India, including implementing
performance management and a better in-
tegration into our new operation model.
The efforts are materializing, and the ef-
fect will continue during H2 2022.
EBITDA development
In Q2 2022 reported EBITDA amounts to
DKK 16m, which is a decrease of 30%
leading to an EBITDA margin of 4.2%. For
the first six months of 2022 EBITDA
amounted to DKK 46m, corresponding to a
decrease of 25%.
Columbus’ hourly sales prices have been
at the same level as H1 2021. Combined
with an increased cost level, this has de-
creased the EBITDA margin. We are cur-
rently working with pricing initiatives to im-
prove the margin back to a satisfactory
level.
On the cost side, the main increase is sal-
ary cost, which is affected by the in-
creased numbers of employees (average
FTE’s) which increased by 9% from Q2
2021 (1.405) to Q2 2022 (1.526).
Additionally, we have seen an increase in
external costs back to a pre-Covid level
across all Market Units. This is primarily
seen in travel cost and expenses for social
employee activities, which both have been
minimal during the lockdowns, which all of
our markets have experienced during the
last two years.
Despite the revenue growth in our UK
Market Unit EBITDA declined from DKK
2,765m to DKK -4,280m. The decline is
primarily caused by a changed revenue
mix with lower margins and a high intake
of new people to enable growth potential,
who are not yet fully productive.
In Q2, we executed a minor capacity ad-
justment of the organization which will
start materializing in Q4 with full effect in
2023.
Other operating income is positively af-
fected with DKK 17m by a positive out-
come of a dispute with two former minority
shareholders in iStone who had violated
the terms in the share purchase agree-
ment. As a result of the dispute Columbus
is no longer obliged to pay the remaining
remuneration/contingent consideration and
has also received financial compensation.
Profit before tax
Compared to Q2 2021, profit before tax
declined by DKK 5m to DKK 2m. The de-
cline is mainly driven by the decline in
EBITDA. For H1 2022 profit before tax
amounted to DKK 20m, corresponding to a
decrease of 49%.
D
evelopment in recurring revenue
Development in
efficiency
20 24 34 39
37
38
75
74
23
14
42
25
80
75
151
137
Q2 2022 Q2 2021 YTD 2022 YTD 2021
Cloud
Columbus Care contracts
Subscriptions
64%
62%
59%
Q2 2022 Q1 2022 Q4 2021
7 Interim Report Q2 2022
Discontinued operations
In Q2 2022 no new events related to dis-
continued operations have occurred. The
only change in discontinued operations is
aftermath of the former executed divest-
ments.
The YTD figures relate to the divestment
of our former Russian business, which was
divested as a consequence of the Russian
invasion of Ukraine. The Russian business
was sold to the local management in the
Russian Market Unit. The impact of the di-
vestment to comprehensive income
amounted to DKK -25m.
Cash
Cash flow from operating activities in Q2
2022 was negative with DKK 3m due to a
low operating profit combined with a nega-
tive change in net working capital. The net
working capital is mainly affected by a re-
duction in other payables as well as de-
creased prepayments from customers.
Further, in Q2 2022 the Group utilized an
additional line of credit of DKK 50m to se-
cure liquidity during the summer period,
which historically has a more negative
cash flow than the rest of the year. The
additional line of credit will expire at the
end of August.
Equity
Columbus’ equity decreased by net DKK
37m since 31 December 2021, primarily
due to the divestment of Russia, signifi-
cant currency adjustment of the goodwill
posted in foreign currencies as well as
payment of DKK 16m in dividend in Q2
2022.
8 Interim Report Q2 2022
Financial guidance
Columbus experiences a continued in-
crease in demand for our services and dig-
ital solutions. Q2 2022 showed further pro-
gress towards the target for 2022.
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 in Q2
2022, current order book and pipeline, our
full year guidance for 2022 will remain un-
changed as follows.
Outlook for 2022
DKKm
Revenue
EBITDA
202
2 Outlook 1,525
-
1,625 120
-
145
Implied growth to 2021
8%
-
15% 34%
-
62%
Implied EBITDA margin
7.4%
-
9.5%
9 Interim Report Q2 2022
We have today considered and approved
the interim financial report for the period 1
January 2022 – 30 June 2022 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 2022,
and of the results of the Group’s opera-
tions and cash flows during the first half of
2022.
We 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,
24 August 2022
Executive Board
Board of Directors
10 Interim Report Q2 2022
10 Interim Report Q2 2022
Financial
statements
11 Interim Report Q2 2022
DKK ´000
Note Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Net revenue
2 389,703 373,739 782,552 740,371 1,414,399
External project costs
-82,729 -66,440 -144,589 -120,997 -249,843
Gross profit
Staff expenses and
remuneration
3 -272,092 -254,874 -541,153 -501,816 -946,699
Other external
costs -35,012 -28,681 -67,076 -55,598 -124,343
Other operating income
Other operating costs
EBITDA before
share
-based payment 16,811 23,820 46,676 62,276 92,464
Share
-based payment -318 -302 -636 -604 -3,157
EBITDA
Depreciation, amortization
and impairment
4 -14,340 -11,600 -28,215 -23,459 -48,863
Operating profit (EBIT)
Financial income
Financial expenses
-1,046 -5,143 -3,229 -6,830 -5,405
Profit before tax from
continuing operations
Corporate tax
-1,363 -3,918 -5,419 -6,304 6,513
Profit after tax from
continuing operations
Profit
(loss) after tax from
discontinued operations
7
Profit
(loss) after tax for the period 1,311 9,334 -10,701 775,014 758,548
DKK ´000
Note Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Items that may be reclassified
subsequently to profit and loss:
Foreign exchange adjustments
of subsidiaries
-20,532 3,990 -11,820 5,453 -13,174
Other comprehensive
income
-20,532 3,990 -11,820 5,453 -13,174
Total comprehensive
income for the period
-19,221 13,324 -22,521 780,467 745,374
Profit
(loss) after tax allocated
to:
Shareholders in Columbus A/S
-10,701
Minority interests
Total comprehensive income
allocated to:
Shareholders in Columbus A/S
-19,221 13,324 -22,521 781,075 745,982
Minority interests
-19,221 13,324 -22,521 780,467 745,374
Earnings per share of DKK
Earnings per share of DKK
(EPS-D)
Statement of comprehensive income
12 Interim Report Q2 2022
DKK ´000
Note 30 Jun 2022 30 Jun 2021 31 Dec 2021
ASSETS
Goodwill
Customer base
Internal applications
Development projects finalized
Property, plant and equipment
Right
-of-use assets 60,924 74,629 61,422
Deferred tax assets
Other receivables
Total non
-current assets
Trade receivables
5 242,447 239,622 269,583
Contract assets
6 8,919 7,566 11,433
Corporate tax receivables
Other receivables
Receivables from divestment of activities
8 60,877 0 55,631
Prepayments
Receivables
Cash
Total current assets
TOTAL ASSETS
DKK ´000
Note 30 Jun 2022 30 Jun 2021 31 Dec 2021
EQUITY AND LIABILITIES
Share capital
Reserves on foreign currency translation
-71,262 -40,815 -59,442
Retained profit
Equity
Deferred tax
Other provisions
Debt to credit institutions
Lease liability
right-of-use assets 35,787 46,789 36,454
Non
-current liabilities 118,514 244,790 119,022
Debt to credit institutions
Contingent consideration
Contract liabilities
6 7,973 12,260 17,248
Trade
payables 59,434 54,264 79,168
Corporate tax payables
Other payables
Other provisions
Accruals and deferred income
Lease liability right
-of-use assets 27,920 31,434 28,359
Current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Balance sheet
13 Interim Report Q2 2022
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits Equity
YTD 2022
Balance at 1 Jan 2022
Profit after tax
Currency adjustments of investments
in subsidiaries
Total comprehensive income
Share
-based payment 0 0 636 636
Payment of dividend
Balance at 30 Jun 2022
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
Payment of dividend
Balance at 30 Jun 2021
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits
Minority
interests Equity
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 1,666 0 1,666
Disposal of minority interest
Payment of dividend
Balance at 31 Dec 2021
Statement of changes in equity
14 Interim Report Q2 2022
DKK ´000
Note Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Operating profit (EBIT)
Depreciation, amortization and
impairment
4 14,340 11,600 28,215 23,459 48,863
Cost of incentive scheme
Changes in net working capital
-11,587 49,301 -17,261 13,845 -87,221
Cash flow from primary
activities
Interest received, etc.
Interest paid, etc.
-713 -4,293 -2,287 -8,873 -7,271
Corporate tax paid
-4,919 2,386 -8,742 -13,197 -8,957
Cash flow from operating activities
discontinued operations
7 -3,465 6,072 -2,508 15,965 -4,591
Cash flow from operating
activities
-2,602 77,286 21,019 77,765 -13,863
Net investment in
development projects
Acquisition of tangible assets
-3,524 -1,603 -4,287 -3,637 -7,434
Acquisition of intangible assets
-5,209 -2,059 -9,438 -8,169 -33,234
Disposal of tangible assets
Acquisition of activities
-3,948 -72,286 -3,592 -72,609 -74,152
Disposal of activities
8 373 -132 -5,854 822,570 876,648
Cash flow from investing activities
discontinued operations
7 0 0 0 -7,479 -7,479
Cash flow from investing
activities
-12,300 -76,065 -23,136 730,677 754,434
DKK ´000
Note Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Proceeds from capital
i
ncrease/warrants exercised
Repayment of loan
Overdraft facilities
Repayment of lease liabilities
-8,340 -8,088 -16,657 -16,367 -34,084
Dividends paid
-16,160 -775,658 -16,160 -775,658 -775,658
Cash flow from financing activities
discontinued operations
7 0 0 -3,685 -18,209 -13,354
Cash flow from financing
activities
Cash flow from continuing
operations
Cash flow from discontinued
operations
-3,465 6,072 -6,193 -9,723 -25,424
Total net change in cash and
cash equivalents
Cash funds at the beginning
of the period
Exchange rate adjustments
Cash funds at the end of the
period
Cash flow
15 Interim Report Q2 2022
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 – Discontinued operations 24
Note 8 – Disposal of activities 25
Key figures, ratios and Alternative Performance Measures 26
Notes
Note
Page
16 Interim Report Q2 2022
Notes
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 2021, except for
any new, amended or revised accounting standards and interpretations endorsed by the EU, effective for
the accounting period beginning on 1 January 2022.
For more information on the accounting policies, we refer to our Annual Report for 2021.
Note 1
– Significant accounting principles
17 Interim Report Q2 2022
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
Global Delivery Centers (GDC)
Cloud ERP
Columbus Care
Digital Commerce
Data & Analytics
Customer Experience & Engagement
Other Local Business
Sweden
Denmark
Norway
UK
US
Other
Poland
Czech Republic
India
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 2022 Q2 2021 YTD 2022 YTD 2021 2021
Sale of services
Cloud ERP
171,155 174,885 350,666 363,793 655,813
Columbus Care
70,685 68,518 142,493 131,211 260,812
Digital Commerce
47,257 42,020 93,187 81,451 157,184
Data & Analytics
15,283 11,876 30,602 16,982 37,676
Customer Experience & Engagement
12,538 7,167 24,065 16,560 30,008
Other Local Business
17,476 16,026 36,422 32,111 68,798
Total sale of services
334,394 320,492 677,435 642,108 1,210,291
Sale of products
Cloud ERP
39,727 37,393 74,259 70,475 149,913
Columbus Care
3,360 4,954 7,090 7,454 11,082
Digital Commerce
1,471 3,543 2,395 7,179 11,883
Data & Analytics
0 374 820 655 1,911
Customer Experience & Engagement
1,286 525 1,773 994 2,109
Other Local
Business 9,465 6,458 18,780 11,506 27,210
Total sale of products
55,309 53,247 105,117 98,263 204,108
Total net revenue
389,703 373,739 782,552 740,371 1,414,399
Business Lines relate to the type of services or products that are delivered, and comprise of Cloud ERP,
Columbus Care, Digital Commerce, Data & Analytics, Customer Experience & Engagement and Other Lo-
cal 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.
Note
2 – Segment data
Business Lines Revenue Split
YTD 2022
54%
19%
12%
4%
3%
7%
Cloud ERP
Columbus Care
Digital Commerce
Data & Analytics
Customer Experience & Engagement
Other Local Business
18 Interim Report Q2 2022
Notes
DKK ´000
Sweden Denmark Norway UK US Other GDC Eliminations Total
Q2 2022
Sale of services
141,746 60,926 67,262 38,079 18,302 7,282 797 0
334,394
Sale of products
11,938 18,478 7,599 9,389 7,905 0 0 0
55,309
Total revenue from own markets
153,684 79,404 74,861 47,468 26,207 7,282 797 0 389,703
Total revenue from group companies
13,551 18,732 3,060 4,148 266 745 26,812 -67,314
0
Total revenue
167,235 98,136 77,921 51,616 26,473 8,027 27,609 -67,314 389,703
Gross profit
109,556 56,722 51,350 39,667 16,101 8,903 24,675 0
306,974
EBITDA
8,225 6,574 3,466 -4,280 -354 950 2,330 -418
16,493
Operating profit (EBIT)
2,153
Profit before tax
2,263
Profit after tax
900
Average number of FTEs
413 291 168 189 64 33 367 0 1,526
Q2 2021
Sale of services
130,374 64,635 63,535 35,053 20,569 6,113 213 0
320,492
Sale of products
9,366 20,222 8,103 7,765 7,301 490 0 0
53,247
Total revenue from own markets
139,738 84,857 71,638 42,818 27,870 6,603 213 0 373,739
Total revenue from group companies
15,862 23,161 1,038 5,565 181 3,066 25,620 -74,493
0
Total revenue
155,600 108,018 72,676 48,383 28,051 9,669 25,833 -74,493 373,739
Gross profit
88,151 80,212 45,914 41,864 17,975 8,056 23,648 1,479
307,299
EBITDA
5,152 1,111 9,291 2,765 -1,899 1,727 5,327 44
23,518
Operating profit (EBIT)
11,918
Profit before tax
7,012
Profit after tax
3,094
Average number of FTE
351 284 135 178 68 31 360 0 1,405
*EBITDA for Denmark includes other operational income of DKK 17m as described on page 6.
19 Interim Report Q2 2022
Notes
DKK ´000
Sweden Denmark Norway UK US Other GDC Eliminations Total
YTD 2022
Sale of services
280,845 126,490 137,262 78,068 38,263 14,557 1,950 0
677,435
Sale of products
25,770 34,040 14,141 20,373 10,793 0 0 0
105,117
Total revenue from own markets
306,615 160,530 151,403 98,441 49,056 14,557 1,950 0 782,552
Total revenue from group companies
26,447 39,064 6,562 8,352 812 1,684 53,359 -136,280
0
Total revenue
333,062 199,594 157,965 106,793 49,868 16,241 55,309 -136,280 782,552
Gross profit
219,908 127,089 106,860 83,629 33,664 17,117 49,696 0
637,963
EBITDA
15,740 10,594 12,268 -2,368 -1,194 1,839 9,307 -146
46,040
Operating profit (EBIT)
17,825
Profit before tax
19,738
Profit after tax
14,319
Average number of FTEs
411 291 165 188 64 33 365 0 1,517
YTD 2021
Sale of services
261,416 128,191 125,387 73,149 39,107 13,524 1,334 0
642,108
Sale of products
17,629 37,325 14,162 17,747 10,580 820 0 0
98,263
Total revenue from own
markets 279,045 165,516 139,549 90,896 49,687 14,344 1,334 0 740,371
Total revenue from group companies
32,269 43,418 2,137 10,643 429 6,220 53,994 -149,110
0
Total revenue
311,314 208,934 141,686 101,539 50,116 20,564 55,328 -149,110 740,371
Gross profit
185,140 153,836 90,210 87,244 33,804 17,372 51,768 0
619,374
EBITDA
17,382 9,009 16,517 10,488 -6,304 4,874 9,615 91
61,672
Operating profit (EBIT)
38,213
Profit before tax
38,985
Profit after tax
32,681
Average number of FTE
374 286 132 174 67 30 358 0 1,421
20 Interim Report Q2 2022
Notes
Non-current assets
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Sweden
372,403 401,215 384,985
Denmark
222,885 195,323 209,660
Norway
65,829 73,243 75,670
UK
48,924 50,974 50,935
US
26,918 143,598 25,648
Russia
0 35,385 15,895
Other
17,533 17,760 17,333
GDC
52,924 57,523 53,682
Total
807,416 975,021 833,808
Note 2
– Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Other GDC Eliminations Total
2021
Sale of services
483,888 247,979 230,828 137,767 80,915 26,666 2,248 0
1,210,291
Sale of products
43,169 75,567 28,327 37,460 18,158 1,427 0 0
204,108
Total revenue from own markets
527,057 323,546 259,155 175,227 99,073 28,093 2,248 0 1,414,399
Total revenue from group companies
70,021 77,743 7,402 21,565 818 9,589 105,662 -292,800
0
Total revenue
597,078 401,289 266,557 196,792 99,891 37,682 107,910 -292,800 1,414,399
Gross profit
372,372 263,007 164,458 158,958 69,212 32,774 102,913 862
1,164,556
EBITDA
32,996 18,709 19,150 10,829 -7,523 6,314 11,748 -2,916
89,307
Operating profit (EBIT)
40,444
Profit before tax
37,034
Profit after tax
43,547
Average number of FTEs
378
290
139
177
67
31
373
0
1,455
Non-current assets distributed in legal entities
The Group’s non-current assets distribution in geographical areas are specified on the left. 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 Interim Report Q2 2022
Notes
Note 3 – Staff expenses and remuneration
DKK ´000
Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Staff expenses
Salary and wages
221,628 204,296 440,016 402,467 791,063
Other social security costs
34,261 34,407 67,642 70,619 130,518
Other staff expenses
16,203 16,171 33,495 28,730 25,118
Staff costs before share
-based
payment
272,092 254,874 541,153 501,816 946,699
Share
-based payment 318 302 636 604 3,157
Staff expenses
272,410 255,176 541,789 502,420 949,856
Average number of FTEs
1,526 1,405 1,517 1,421 1,455
Note 4 – Depreciation, amortization and impairment
DKK ´000
Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Depreciation
9,168 7,774 17,975 15,736 33,973
Amortization
5,172 3,826 10,240 7,723 14,890
Total depreciation, amortization
and impairment
14,340 11,600 28,215 23,459 48,863
22 Interim Report Q2 2022
Notes
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Receivables (gross) at 1 Jan
281,133 241,749 241,749
Change in receivables during the period
-35,766 13,116 39,384
Receivables (gross) end of period
245,367 254,865 281,133
Provisions for bad debt at 1 Jan
11,550 19,178 19,178
Change in provisions for bad debt during the period
-10,571 -3,916 -7,609
Loss realized during the period
1,941 -19 -19
Provisions for bad debt end of period
2,920 15,243 11,550
Carrying amount end of period
242,447 239,622 269,583
Provisions for bad debt are made based on the lifetime expected credit losses in line with the Group’s ac-
counting policies. The change in provisions for bad debt as per 30 June 2022 is high partly due to improved
collection process and due to write off of 2 customer receivables which were fully provisioned for.
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Age of
receivables (gross):
Not due
219,736 145,797 190,113
0
-30 days 12,997 54,484 57,896
30
-60 days 7,718 32,072 9,859
61
-90 days 1,815 6,496 8,033
91
-180 days 1,727 5,309 4,627
181
-270 days 1,148 2,067 2,131
270
-360 days 118 1,493 142
Above
360 days 108 7,147 8,332
Total
245,367 254,865 281,133
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Age of impairment:
Not due
37 17 747
0
-30 days 65 272 50
30
-60 days 193 802 130
61
-90 days 136 487 250
91
-180 days 1,114 2,958 1,019
181
-270 days 1,148 2,067 880
271
-360 days 118 1,493 142
Over 360 days
108 7,147 8,332
Total
2,920 15,243 11,550
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Provision matrix:
Not due
0.0% 0.0% 0.4%
0
-30 days 0.5% 0.5% 0.1%
30
-60 days 2.5% 2.5% 1.3%
61
-90 days 7.5% 7.5% 3.1%
91
-180 days 64.5% 55.7% 22.0%
181
-270 days 100.0% 100.0% 41.3%
271
-360 days 100.0% 100.0% 99.4%
Over 360 days
100.0% 100.0% 100.0%
Note
5 – Trade receivables
23 Interim Report Q2 2022
Notes
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Balance at 1 Jan
-5,815 -4,874 -4,874
Changes contract assets during the period
1,621 -16,754 -32,400
Changes on account billing and prepayments
during the period
5,140 16,934 31,459
Balance at end of period
946 -4,694 -5,815
Work in progress
15,150 29,175 13,529
On account billing and prepayments
-14,204
-33,869
-19,344
Balance at end of
period 946 -4,694 -5,815
The net value is included in the balance as follows:
Contract assets
8,919 7,566 11,433
Contract liabilities
-7,973 -12,260 -17,248
Balance at end of period
946 -4,694 -5,815
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 Interim Report Q2 2022
Notes
DKK ´000
Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Net revenue
0 52,609 9,456 135,895 224,745
External project costs
0 -20,171 -728 -44,501 -73,241
Gross profit
0 32,438 8,728 91,394 151,504
Staff expenses and remuneration
0 -21,778 -7,768 -61,154 -99,996
Other external costs
0 -2,850 -700 -8,372 -13,037
Other operating income
0 0 0 15 15
EBITDA
0 7,810 260 21,883 38,486
Depreciation,
amortization and impairment 0 -1,211 -321 -3,044 -5,333
Operating profit (EBIT)
0 6,599 -61 18,839 33,153
Financial income
0 219 25 1,222 2,420
Financial expenses
0 -387 -17,152 -1,348 -2,443
Profit
(loss) before tax from
discontinued
operations 0 6,431 -17,188 18,713 33,130
Corporate tax
0 -59 -243 -263 -671
Profit
(loss) after tax from
discontinued operations
0 6,372 -17,431 18,450 32,459
Total gain (loss) on divestment of
discontinued operations
411 -132 -7,589 723,883 682,542
Profit
(loss) from discontinued opera-
tions
411 6,240 -25,020 742,333 715,001
Earnings per share from discontinued
operations of DKK 1.25 (EPS)
0.00 0.05 -0.19 5.84 5.58
Earnings per share from discontinued
operations of DKK 1.25, diluted (EPS
-D) 0.00 0.05 -0.19 5.81 5.56
DKK ´000
Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Cash flow from operating activities
-3,465 6,072 -2,508 15,965 -4,591
Cash flow from investing activities
0 0 0 -7,479 -7,479
Cash flow from financing activities
0 0 -3,685 -18,209 -13,354
Cash flow from discontinued
operations
-3,465 6,072 -6,193 -9,723 -25,424
DKK ´000
Q2 2022 Q2 2021 YTD 2022 YTD 2021 2021
Gain (loss) on disposal of subsidiaries
0 0 -9,535 721,712 697,095
Transaction costs related to
disposal 411 -132 1,946 2,171 -14,553
Total gain (loss) on divestment of
discontinued operations
411 -132 -7,589 723,883 682,542
Discontinued operations in 2022
In March, Columbus A/S entered into an agreement to hand over Columbus Russia to the management of
the company. The purchase agreement covers 100% of the ownership of the Russian business, and the
business is therefore reported as discontinued operations in the profit and loss for 2022 and 2021.
Note
7 – Discontinued operations
25 Interim Report Q2 2022
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. 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.
On 1
st
November 2021, our SMB business in our US entity was sold as part of the Focus23 strategy. The
business activity is consequently classified as discontinued operations in 2021. The transaction was settled
partly in cash at the transaction date (USD 8m), and partly as deferred consideration which was due in Q2
2022 (USD 8.5m). The buyer has still not paid the outstanding amount to which a legal collecting process
has been initiated to collect our receivable.
The gain on disposal is included in the profit for the year from discontinued operations, note 7.
At the date of disposal, the carrying amounts of disposed subsidiaries net assets were as follows.
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Goodwill
8,822 97,258 197,980
Customer base
0 5,166 7,295
Other intangible assets
0 19 19
Development projects finalized
0 52,334 52,334
Development projects in progress
0 42,404 42,404
Property, plant and equipment
204 2,281 2,419
Right
-of-use assets 2,102 20,712 20,712
Trade receivables
1,762 36,753 36,404
Contract assets
3,731 7,575 7,575
Corporate tax receivables
0 1,052 1,052
Deferred tax assets
0 370 30,961
Other
receivables 176 1,474 1,506
Prepayments
1,790 2,800 6,957
Cash
9,274 22,169 22,169
Total assets
27,861 292,367 429,787
DKK ´000
30 Jun 2022 30 Jun 2021 31 Dec 2021
Deferred tax
358 19,095 19,095
Debt to credit institutions
0 357 357
Lease liability right
-of-use assets 2,254 20,277 20,277
Contract liabilities
2,355 3,854 3,854
Trade payables
1,758 14,829 18,425
Corporate tax payables
5 54 54
Other payables
9,597 30,221 31,180
Accruals and deferred income
0 30,578 30,578
Total liabilities
16,327 119,265 123,818
Minority interests
0 0 2,847
Net assets disposed of
11,535 173,102 303,122
Cash and cash equivalents
2,000 865,279 928,334
Deferred consideration
0 29,535 71,883
Total
consideration 2,000 894,814 1,000,217
Gain on disposal of activities
-9,535 721,712 697,095
Net Cash inflow arising on disposal:
Consideration received in cash and
cash equivalents
2,000 865,279 928,334
Less: cash and cash
equivalents disposed of -9,274 -22,169 -22,169
Transaction costs related to disposal
1,420 -20,540 -29,517
Net cash inflow arising on disposal
-5,854 822,570 876,648
Note
8 – Disposal of activities
26 Interim Report Q2 2022
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.
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
27 Interim Report Q2 2022
Notes
For more information about Columbus visit www. columbus global.com