1 Q1 Report 2022
Q1 Report 2022
2 Q1 Report 2022
10 May 2022
Highligh
ts
Financial highlights
Q1
•
Revenue increased by 7% in Q1 2022 to DKK
393m (
Q1 2021: DKK 367m).
•
EBITDA decreased to DKK 30m in Q1 2022
(Q1 2021: DKK 38m). The decrease is mainl
y
ca
used by an increase in staff cost, use of sub-
contractors and higher spend of other external
cost.
• Negative effect of discontinuing Columbus Rus-
sia by DKK 25m.
All numbers and comments are on the continued
business
(excluding the divested entities Russia,
US SMB, To-Increase and Baltics).
Operational highlights
•
Hiring 114 new talents
•
Salary as a percentage of revenue increased
by ap
prox. 2% compared to FY 2021
•
YTD efficiency 62%
•
Divestment of Columbus Russia
•
Strengthening our One Columbus culture
7
% revenue growth in Q1 with progress in most business areas. EBITDA and
efficiency
impacted by investments in onboarding of new talents.
”
The first quarter of the year has been heavily focused on building a strong organization to fuel for growth.”,
says CEO
& President Søren Krogh Knudsen.
2
3
4
5
7
8
Contents
Highlights
On track delivering 7%
revenue growth
Key figures and ratios
Revenue growth of 7%
in Q1 2022
Outlook for 2022
Statement by
management
Financial statements
9
DK
- 2750 Ballerup
Tel: +45 70 20 50 00
3 Q1 Report 2022
It has been an intense start to the year – a
first quarter marked by the necessary deci-
sion to close our activities in Russia, but
also a quarter with good activity in our re-
maining business.
Important topline growth
In Q1 2022, revenue grew organically by
7% to DKK 393m compared to DKK 367m
in Q1 2021. Good progress was noted in
all areas of the business with the majority
of our Business Units delivering top-line
growth. Our Norwegian business contin-
ued their strong momentum from last year
with 13% growth closely followed by Co-
lumbus Sweden growing by 10%. So did
our strategic business areas Data & Ana-
lytics, Customer Experience, Digital Com-
merce and Columbus Care which grew by
200%, 23%, 17% and 15%, respectively.
We start to see a stabilization of our US
business with a growth of 5% in Q1 2022.
The scarcity of talent affects EBITDA
The high demand for talent puts a signifi-
cant pressure on salaries and causes high
attrition in the IT business and Columbus
is like the rest of the industry currently fac-
ing these issues. Despite these chal-
lenges, we have been able to increase our
average number of FTE’s by 70 in Q1
2022. This has been possible due to our
employer branding activities and dedicated
HR efforts.
We generally see a satisfactory level on
EBITDA margin from our Cloud ERP busi-
nesses and related Care businesses. As
part of our Focus23 strategy, we are in-
vesting in growing our new Business Lines
which are affecting the overall EBITDA
margin.
Efficiency has improved from 59% in Q4
2021 to 62% in Q1 2022. Many new hires,
ramp up of new consultants and low utili-
zation of our offshore center in India are
affecting the efficiency and this remains a
key focus for us in the coming quarters.
Overall, EBITDA declined from DKK 38m
to DKK 30m in Q1 2022, a decline of 23%.
Exiting the Russian market
Columbus has been running a healthy
business in Russia with 213 loyal employ-
ees since 1997. However, with Russia’s in-
vasion of Ukraine, we could not reconcile
doing business in Russia and promptly,
Columbus started to investigate the op-
tions to exit the Russian market. On 16
March 2022, Columbus handed over the
ownership of the Russian business to the
management of the Russian business for
a purchase price of DKK 2m.
We are deeply concerned about the situa-
tion in Ukraine and Columbus has made fi-
nancial contribution to various humanitar-
ian aid in Ukraine. We have a small
number of affiliated consultants in Ukraine,
and we have taken the necessary actions
to ensure the safety of their families.
One Columbus culture
During Q1, we continued the strong focus
on One Columbus which implied invest-
ment in a Leadership Principles program,
global incentive schemes and increasing
number of Columbus Academy training
courses. In March, we appointed our new
Chief People Officer Per Fredriksson to
further strengthen our focus on attracting
and retaining talent in Columbus. All in all,
the first quarter of the year has been heav-
ily focused on building a strong organiza-
tion to fuel for growth.
Our sustainability focus starts
materializing
In Columbus we are focused on building
solutions to help our customers accelerate
their sustainability ambitions. As an exam-
ple, we recently launched a pilot project in
India for Efficient Management of Renewa-
ble Energy for a major Energy distribution
company in Delhi, BSES Yamuna Power
Limited, in corporation with the Danish
Embassy and Nordic Innovation.
It makes me proud to see how our employ-
ees are taking leadership to move Colum-
bus forward in the sustainability agenda.
Deliver customer value
As always, our focus is to earn the trust of
our customers by ensuring that we advise,
implement, and maintain our customers’
critical business applications. Delivering a
composable commerce solution to Tech-
Step in Norway, combining the best-of-
breed commerce components into a cus-
tom specific solution, and a brand-new
customer experience platform to the newly
acquired Schibsted Denmark company are
two good examples of this.
I remain confident that Columbus is on the
right path and well positioned to move into
a position as trusted digital advisor. For
2022, Columbus maintains our guidance
to revenue growth of between 8% and
15% and EBITDA in the range of DKK
120m to 145m corresponding to a margin
of 7.4% to 9.5%.
I want to thank our employees, customers,
and partners for their contribution to the
results.
On track delivering 7% revenue growth
Columbus realised a solid start to the year with high activity across the business and progress in strategic business
areas. Columbus maintains
expectations for 2022.
Søren Krogh Knudsen
CEO & President
4 Q1 Report 2022
Key figures and ratios
DKK ´000
Q1 2022 Q1 2021 2021
Income related figures
Sale of services
343,041 321,618 1,210,291
Sale of products
49,808 45,016 204,108
Net revenue
392,849 366,634 1,414,399
Recurring
revenue % of total revenue 17.8% 18.9% 21.4%
EBITDA before share
-based payment 29,864 38,457 92,464
EBITDA
29,546 38,155 89,307
EBIT
15,671 26,296 40,444
Net financial items
1,803 5,675 -3,410
Profit before tax
17,474 31,971 37,034
Profit after
tax, continuing operations 13,417 29,586 43,547
Profit after tax, discontinued operations
-25,431 736,094 715,001
Profit after tax
-12,014 765,680 758,548
DKK ´000
Q1 2022 Q1 2021 2021
Balance sheet*
Non
-current assets 832,251 979,082 833,808
Current assets
406,305 1,256,268 434,789
Total assets
1,238,556 2,235,350 1,268,597
Group shareholder equity
737,996 1,480,474 740,980
Total liabilities
500,560 754,876 527,617
Total equity and liabilities
1,238,556 2,235,350 1,268,597
DKK ´000
Q1 2022 Q1 2021 2021
Investments in tangible assets
763 2,035 7,434
Cash flow
Cash flow from operating activities
23,621
7,172
-13,863
Cash flow from investing activities
-10,835 813,623 754,434
Cash flow from financing activities
-27,201 -38,955 -847,512
Total net change in cash and cash equivalents
-14,415 781,840 -106,941
Cash flow from continuing operations
-11,687 805,120 -81,517
Cash flow from discontinued operations
-2,728 -23,280 -25,424
Total net change in cash and cash equivalents
-14,415 781,840 -106,941
Key ratios
EBITDA
-margin 7.5% 10.4% 6.3%
EBIT
-margin 4.0% 7.2% 2.9%
Equity ratio
59.6%
66.2%
58.4%
Return on equity
-1.1% 69.0% 104.5%
Return on invested capital (ROIC)
2.7% 3.8% 10.1%
Number of shares
129,276 124,622 129,276
Average number of shares
129,276 124,622 128,192
Book value of equity per share (BVPS) (DKK)
5.71 11.88 5.73
Earnings per share (EPS) from continuing
operations (DKK) 0.10 0.23 0.33
Cash flow per share (DKK)
0.18 0.06 -0.11
Share price, end of period (DKK)
9.40 15.40 9.54
Average full time employee for the period
*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.
The key figures and financial ratios above have been calculated in accordance with Danish Finance
Society's "Recommendation & Financial Ratios”
5 Q1 Report 2022
Revenue development
Columbus realised a revenue of DKK
393m in Q1 2022, corresponding to an in-
crease of 7%. Service revenue grew by
7% and derived from all our Market Units
and all Business Lines, except Cloud ERP.
We are satisfied with the continued or-
ganic revenue growth in Q1 2022, and we
expect an increased growth during the re-
maining quarters of the year.
Cloud ERP declined by 5% in service rev-
enue, which is not considered satisfactory
and remains a focus point. Our second
and third largest Business Lines, Colum-
bus Care and Digital Commerce, contin-
ued to show strong growth with 15% and
17% increase in service revenue, respec-
tively.
Development in Market Units
All our major markets delivered service
revenue growth in Q1 2022. The Norwe-
gian market showed a strong development
with an increase of 13% closely followed
by Sweden with an increase of 6%.
In the US we start to see the results of in-
creased focus on our core business, with a
growth of 8% compared to Q1 2021.
Increase in recurring revenue
In Q1 2022 recurring revenue increased
by DKK 1m to DKK 70m, thus remaining
relatively stable. The development was af-
fected by cloud increasing significantly by
DKK 8m, with a negative impact from Co-
lumbus Care contracts decreasing by DKK
6m.
Subscriptions related to perpetual licenses
continued to decline as our customers are
converting to cloud. Going forward, Co-
lumbus expects subscriptions to decline to
insignificant amounts as part of the cloud
conversion.
Due to the increase in total revenue, recur-
ring revenue constituted 18% of total reve-
nue, compared to 19% in Q1 2021.
Revenue growth of 7% in Q1 2022
Development in recurring revenue
14 15
38
44
18
10
70
69
Q1 2022 Q1 2021
Cloud
Columbus Care contracts
Subscriptions
Service revenue split on Business Lines
DKK ´000
Q1 2022 Q1 2021 ∆%
Cloud ERP
179,511 188,908 -5.0%
Columbus Care
71,808 62,693 14.5%
Digital Commerce
45,930 39,431 16.5%
Data & Analytics
15,319 5,106 200.0%
Customer Experience & Engagement
11,527 9,393 22.7%
Other Local Business
18,946 16,087 17.8%
Total sale of
services 343,041 321,618 6.7%
Total sale of products
49,808 45,016 10.6%
Total net revenue
392,849 366,634 7.2%
Service revenue s
plit on Market units
DKK ´000
Q1 2022 Q1 2021 ∆%
Sweden
139,099 131,044 6.1%
Denmark
65,564 63,556 3.2%
Norway
70,000 61,852 13.2%
UK
39,989 38,096 5.0%
US
19,961 18,538 7.7%
Other
7,275 7,411 -1.8%
GDC
1,153 1,121 2.9%
Total sale of
services 343,041 321,618 6.7%
Total sale of products
49,808 45,016 10.6%
Total net revenue
392,849 366,634 7.2%
6 Q1 Report 2022
Efficiency
Currently, the technology consulting sector
is facing a very heated job market. This is
driving high attrition and pressure on sala-
ries. Columbus is currently facing these
market conditions.
Efficiency for Q1 2022 was 62% for the
group. This is an improvement compared
to Q4 2021 which was 59%. Despite the
attrition in Q1 2022 we have managed to
increase average number of FTE’s by 70
compared to Q1 2021. The large attrition
and the compensation with new hires is
causing a short-term pressure on our effi-
ciency due to ramp up of new consultants.
Management will continue to focus on the
efficiency during the coming quarters sup-
ported by our new organization and oper-
ating model.
EBITDA development
In Q1 2022 reported EBITDA declined by
23% to DKK 30m, resulting in an EBITDA
margin of 8% compared to 10% in Q1
2021. However, the EBITDA margin has
increased from 6% to 8% compared to full
year 2021.
The EBITDA is impacted by the salary in-
creases in the IT market in general, low ef-
ficiency, higher spend on external costs
related to normalized level of travel costs
and costs related to social activities, which
were low last year due to Covid-19
restrictions.
The mentioned decline in EBITDA is de-
rived from our major markets, Sweden,
Denmark, and UK.
We generally see a satisfactory level on
EBITDA margin from our Cloud ERP busi-
nesses and related Care businesses. As
part of our Focus23 strategy, we are in-
vesting in growing our new Business Lines
such as Data & Analytics, Customer Expe-
rience & Engagement and Digital Com-
merce. These strategic investments are af-
fecting our overall EBITDA margin.
In Norway and US, EBITDA is increasing
as a consequence of the growing revenue.
US is also positively affected by cost re-
duction in the continued US business.
Despite the stabilization of revenue and a
satisfactory local efficiency, we are still
facing a declining EBITDA in Denmark.
The Danish EBITDA is mainly affected by
a larger customer with business in Ukraine
and Russia who terminated their engage-
ment. Additionally, we have incurred a loss
due to free work on a fixed price project.
Profit before tax
Compared to Q1 2021, profit before tax
declined by DKK 14m to DKK 17m. The
decline is mainly driven by the decline in
EBITDA.
Discontinued operations
As a consequence of Russia’s invasion of
Ukraine, Columbus has divested the entire
Russian Market Unit as of 16 March 2022.
The Russian business was sold to the lo-
cal management in the Russian Market
Unit. The impact of the divestment to com-
prehensive income amounted to
DKK -25m.
Cash
Cash flow from operating activities was
positive with DKK 24m due to a positive
cash flow from primary activities, including
operating profit.
Equity
Columbus’ equity decreased by net DKK
3m since 31 December 2021, primarily
due to the divestment of Russia. With a to-
tal equity of DKK 738m, Columbus has a
solvency of 60% (2021: 58%). The high
solvency ratio leaves Columbus in a
strong financial position.
7 Q1 Report 2022
Financial guidance
Columbus experiences a continued in-
crease in demand for our services and dig-
ital solutions. Q1 2022 was a good start to
the year and progress 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 Q1
2022, current order book and pipeline, our
full year guidance for 2022 will remain un-
changed as follows.
Columbus exited the Russian market by
divesting our former Russian market unit,
without changing the outlook for 2022. The
comparative figures for 2021 are adjusted
for the discontinued operation in the Rus-
sian market, resulting in the implied growth
rates of 8% – 15% on revenue and 34% -
62% growth on EBITDA.
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%
8 Q1 Report 2022
We have today considered and approved
the interim financial report for the period 1
January 2022 – 31 March 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 31 March 2022,
and of the results of the Group’s opera-
tions and cash flows during the first quar-
ter 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,
10 May 2022
Executive Board
Board of Directors
9 Q1 Report 2022
9 Q3 Report 2021
Financial
statements
10 Q1 Report 2022
DKK ´000
Note Q1 2022 Q1 2021 2021
Net revenue
2 392,849 366,634 1,414,399
External project costs
-61,860 -54,558 -249,843
Gross profit
Staff expenses and remuneration
3 -269,061 -246,942 -946,699
Other external costs
-32,064 -26,917 -124,343
Other operating income
Other operating costs
EBITDA before share
-based payment 29,864 38,457 92,464
Share
-based payment -318 -302 -3,157
EBITDA
Depreciation, amortization and impairment
4 -13,875 -11,859 -48,863
Operating profit
(EBIT) 15,671 26,296 40,444
Financial income
Financial expenses
-1,953 -1,689 -5,405
Profit before tax from continuing operations
Corporate tax
-4,057 -2,385 6,513
Profit after tax from continuing operations
Profit after tax from discontinued operations
7
-25,431 736,094 715,001
Profit after tax for the period
-12,014 765,680 758,548
DKK ´000
Note Q1 2022 Q1 2021 2021
Items that may be reclassified subsequently to profit and loss:
Foreign exchange adjustments of subsidiaries
-13,174
Other comprehensive income
Total comprehensive income for the
period -3,302 767,143 745,374
Profit after tax allocated to:
Shareholders in Columbus A/S
-12,014 766,287 759,155
Minority interests
-607
-607
-12,014 765,680 758,548
Total comprehensive income
allocated to:
Shareholders in Columbus A/S
-3,302 767,751 745,982
Minority interests
-3,302 767,143 745,374
Earnings per share of DKK 1.25 (EPS)
-0.09 6.14 5.91
Earnings per share of DKK 1.25, diluted
(EPS-D)
-0.09 6.14 5.89
Statement of comprehensive income
11 Q1 Report 2022
DKK ´000
Note 31 Mar 2022 31 Mar 2021 31 Dec 2021
ASSETS
Goodwill
Customer base
Internal applications
Development projects finalized
Property, plant and equipment
Right
-of-use assets 61,009 74,364 61,422
Deferred tax assets
Other receivables
Total
non-current assets
Trade receivables
5 265,750 247,983 269,583
Contract assets
6 17,532 7,673 11,433
Corporate tax receivables
Other receivables
Receivables from
divestment of activities 8 56,952 0 55,631
Prepayments
Receivables
Cash
Total current assets
TOTAL ASSETS
DKK ´000
Note 31 Mar 2022 31 Mar 2021 31 Dec 2021
EQUITY AND LIABILITIES
Share capital
Reserves on foreign currency translation
-50,730 -44,805 -59,442
Retained profit
Equity
Deferred tax
Other provisions
Debt to credit institutions
Lease liability
right-of-use assets 34,697 47,062 36,454
Non
-current liabilities 114,000 266,880 119,022
Debt to credit institutions
Contingent consideration
Contract liabilities
6 16,048 13,070 17,248
Trade
payables 49,517 56,869 79,168
Corporate tax payables
Other payables
Other provisions
Accruals and deferred income
Lease liability right
-of-use assets 29,178 30,991 28,359
Current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Balance sheet
12 Q1 Report 2022
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
Minority
interests Equity
Q1 2021
Balance at 1 Jan 2021
Profit after tax
Currency adjustments of investments
in subsidiaries
Total comprehensive income
Share
-based payment 0 0 302 0 302
Disposal of minority
interest 0 0 0 -2,576 -2,576
Balance at 31 Mar 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 0 -13,173 759,155 -608 745,374
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
13 Q1 Report 2022
DKK ´000
Note Q1 2022 Q1 2021 2021
Operating profit (EBIT)
Depreciation, amortization and impairment
4 13,875 11,859 48,863
Cost of incentive
scheme 318 302 1,666
Changes in net working capital
-5,674 -27,481 -87,221
Cash flow from primary activities
Interest received, etc.
Interest paid, etc.
-1,574 -5,669 -7,271
Corporate tax
paid -3,823 -16,077 -8,957
Cash flow from operating activities
discontinued operations
7 957 9,893 -4,591
Cash flow from operating activities
Net investment in development projects
Acquisition of
tangible assets -763 -2,035 -7,434
Acquisition of intangible assets
-4,229 -6,110 -33,234
Disposal of tangible assets
Acquisition of activities
Disposal of activities
8 -6,227 824,798 876,648
Cash flow from
investing activities discontinued opera-
tions
7 0 -3,015 -7,479
Cash flow from investing activities
-10,835 813,623 754,434
DKK ´000
Note Q1 2022 Q1 2021 2021
Proceeds from capital increase/warrants exercised
Repayment of loan
Overdraft facilities
-15,198 0 19,044
Repayment of lease liabilities
-8,318 -8,797 -34,084
Dividends paid
Cash flow from financing activities discontinued opera-
tions
7 -3,685 -30,158 -13,354
Cash flow from
financing activities
-27,201 -38,955 -847,512
Total net change in cash and cash equivalents
-14,415 781,840 -106,941
Cash funds at the beginning of the period
Exchange rate adjustments
-5,228 5,648 5,673
Cash funds at the end of the period
Cash flow
14 Q1 Report 2022
Note 1 – Significant accounting principles 15
Note 2 – Segment data 16
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 – Discontinued operations 22
Note 8 – Disposal of activities 23
Key figures, ratios and Alternative Performance Measures 24
Notes
Note
Page
15 Q1 Report 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. 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 2021, 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 2022, 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 2021.
Note 1
– Significant accounting principles
16 Q1 Report 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
Q1 2022 Q1 2021 2021
Sale of services
Cloud ERP
179,511 188,908 655,813
Columbus Care
71,808 62,693 260,812
Digital Commerce
45,930 39,431 157,184
Data & Analytics
15,319 5,106 37,676
Customer Experience & Engagement
11,527 9,393 30,008
Other Local Business
18,946 16,087 68,798
Total sale of services
343,041 321,618 1,210,291
Sale of products
Cloud ERP
34,532 33,082 149,913
Columbus Care
3,730 2,500 11,082
Digital Commerce
924 3,636 11,883
Data & Analytics
820 281 1,911
Customer Experience & Engagement
487 469 2,109
Other Local Business
9,315 5,048 27,210
Total sale of products
49,808 45,016 204,108
Total net revenue
392,849 366,634 1,414,399
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, 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.
Business Lines R
evenue Split Q1 2022
54%
19%
12%
4%
3%
7%
Cloud ERP
Columbus Care
Digital Commerce
Data & Analytics
Customer Experience & Engagement
Other Local Business
Note
2 – Segment data
17 Q1 Report 2022
Notes
DKK ´000
Sweden Denmark Norway UK US Other GDC Eliminations Total
Q1 2022
Sale of services
139,099 65,564 70,000 39,989 19,961 7,275 1,153 0
343,041
Sale of
products 13,832 15,562 6,542 10,984 2,888 0 0 0
49,808
Total revenue from own markets
152,931 81,126 76,542 50,973 22,849 7,275 1,153 0 392,849
Total revenue from group companies
12,896 20,332 3,502 4,204 546 939 26,547 -68,966
0
Total revenue
165,827 101,458 80,044 55,177 23,395 8,214 27,700 -68,966 392,849
Gross profit
110,352 70,367 55,510 43,962 17,563 8,214 25,021 0
330,989
EBITDA
7,515 4,020 8,802 1,912 -840 889 6,977 271
29,546
Operating profit (EBIT)
15,671
Profit before tax
17,474
Profit after tax
13,417
Average number of FTEs
409 291 163 186 64 32 363 0 1,507
Q1 2021
Sale of services
131,044 63,556 61,852 38,096 18,538 7,411 1,121 0
321,618
Sale of products
8,263 17,103 6,059 9,982 3,279 330 0 0
45,016
Total revenue from own markets
139,307 80,659 67,911 48,078 21,817 7,741 1,121 0 366,634
Total revenue from
group companies 16,407 20,257 1,099 5,078 248 3,154 28,374 -74,617
0
Total revenue
155,714 100,916 69,010 53,156 22,065 10,895 29,495 -74,617 366,634
Gross profit
96,990 73,624 44,296 45,380 15,829 9,316 28,120 -1,479
312,076
EBITDA
12,231 7,898 7,226 7,723 -4,405 3,147 4,288 47
38,155
Operating profit (EBIT)
26,296
Profit before tax
31,971
Profit after tax
29,586
Average number of FTE
397 289 130 171 66 28 356 0 1,437
18 Q1 Report 2022
Notes
Non-current assets
DKK ´000
31 Mar 2022 31 Mar 2021 31 Dec 2021
Sweden
382,896 421,426 384,985
Denmark
227,501 218,520 209,660
Norway
72,987 72,581 75,670
UK
50,066 51,574 50,935
US
25,609 139,674 25,648
Russia
0 4,810 15,895
Other
17,802 17,473 17,333
GDC
55,390 53,024 53,682
Total
832,251 979,082 833,808
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.
19 Q1 Report 2022
Notes
Note 3 – Staff expenses and remuneration
DKK ´000
Q1 2022 Q1 2021 2021
Staff expenses
Salary and wages
218,388 196,832 791,063
Other social
security costs 33,384 35,511 130,518
Other staff expenses
17,289 14,599 25,118
Staff costs before share
-based payment 269,061 246,942 946,699
Share
-based payment 318 302 3,157
Staff expenses
269,379 247,244 949,856
Average
number of FTEs 1,507 1,437 1,455
Note 4 – Depreciation, amortization and impairment
DKK ´000
Q1 2022 Q1 2021 2021
Depreciation
8,808 8,731 33,973
Amortization
5,067 3,170 14,890
Total depreciation, amortization and impairment
13,875 11,859 48,863
20 Q1 Report 2022
Notes
DKK ´000
31 Mar 2022 31 Mar 2021 31 Dec 2021
Receivables (gross) at 1 Jan
281,133 241,749 241,749
Change in receivables during the period
-10,333 21,509 39,384
Receivables (gross) end of
period 270,800 263,258 281,133
Provisions for bad debt at 1 Jan
11,550 19,178 19,178
Change in provisions for bad debt during the period
-6,469 -3,885 -7,609
Loss realized during the period
-31 -18 -19
Provisions for bad debt end of
period 5,050 15,275 11,550
Carrying amount end of period
265,750 247,983 269,583
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 2022 31 Mar 2021 31 Dec 2021
Age of receivables (gross):
Not due
209,778 199,885 190,113
0
-30 days 43,637 43,110 57,896
30
-60 days 6,398 5,980 9,859
61
-90 days 3,570 417 8,033
91
-180 days 6,096 4,109 4,627
181
-270 days 415 1,269 2,131
270
-360 days 263 764 142
Above 360 days
643 7,724 8,332
Total
270,800 263,258 281,133
DKK ´000
31 Mar 2022 31 Mar 2021 31 Dec 2021
Age of impairment:
Not due
301 266 747
0
-30 days 218 216 50
30
-60 days 160 735 130
61
-90 days 268 192 250
91
-180 days 2,782 4,109 1,019
181
-270 days 415 1,269 880
271
-360 days 263 764 142
Over 360 days
643 7,724 8,332
Total
5,050 15,275 11,550
DKK ´000
31 Mar 2022 31 Mar 2021 31 Dec 2021
Provision matrix:
Not due
0.1% 0.1% 0.4%
0
-30 days 0.5% 0.5% 0.1%
30
-60 days 2.5% 12.3% 1.3%
61
-90 days 7.5% 46.0% 3.1%
91
-180 days 45.6% 100.0% 22.0%
181
-270 days 100.0% 100.0% 41.3%
271
-360 days 100.2% 100.0% 99.4%
Over 360 days
99.9% 100.0% 100.0%
Note
5 – Trade receivables
21 Q1 Report 2022
Notes
DKK ´000
31 Mar 2022 31 Mar 2021 31 Dec 2021
Balance at 1 Jan
-5,815 -4,874 -4,874
Changes contract assets during the period
4,510 -11,221 -32,400
Changes on account billing and prepayments during
the pe-
riod
2,789 10,698 31,459
Balance at end of period
1,484 -5,397 -5,815
Work in progress
18,039 34,708 13,529
On account billing and prepayments
-16,555
-40,105
-19,344
Balance at end of period
1,484 -5,397 -5,815
The net
value is included in the balance as follows:
Contract assets
17,532 7,673 11,433
Contract liabilities
-16,048 -13,070 -17,248
Balance at end of period
1,484 -5,397 -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
22 Q1 Report 2022
Notes
DKK ´000
Q1 2022 Q1 2021 2021
Net revenue
9,456 83,286 224,745
External project costs
-728 -24,330 -73,241
Gross profit
8,728 58,956 151,504
Staff expenses and remuneration
-7,768 -39,376 -99,996
Other external costs
-700 -5,522 -13,037
Other operating income
0 15 15
EBITDA
260 14,073 38,486
Depreciation, amortization and impairment
-321 -1,833 -5,333
Operating profit (EBIT)
-61 12,240 33,153
Financial income
25
1,004
2,420
Financial expenses
-17,152 -961 -2,443
Profit before tax from discontinuing operations
-17,188 12,283 33,130
Corporate tax
-243 -204 -671
Profit after tax from discontinuing operations
-17,431 12,079 32,459
Total gain
(loss) on divestment of discontinued operations -8,000 724,015 682,542
Profit from discontinued operations
-25,431 736,094 715,001
Earnings per share from discontinued operations of DKK 1.25
(EPS)
-0.20 5.91 5.58
Earnings per share from
discontinued operations of DKK 1.25,
diluted (EPS
-D) -0.20 5.91 5.56
DKK ´000
Q1 2022 Q1 2021 2021
Cash flow from operating activities
957 9,893 -4,591
Cash flow from investing activities
0 -3,015 -7,479
Cash flow from
financing activities -3,685 -30,158 -13,354
Cash flow from discontinued operations
-2,728 -23,280 -25,424
DKK ´000
Q1 2022 Q1 2021 2021
Loss on disposal of subsidiaries
-9,535 0 0
Transaction costs related to disposal
1,535 724,015 682,542
Total gain (loss) on divestment of discontinued operations
-8,000 724,015 682,542
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. The
Russian business was represented in our consultancy segment.
Note
7 – Discontinued operations
23 Q1 Report 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 is due in Q2
2022 (USD 8,5m).
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
31 Mar 2022 31 Mar 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
31 Mar 2022 31 Mar 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 0 697,095
Net Cash inflow arising on disposal:
Consideration received in cash and cash equivalents
2,000 874,096 938,619
Less: cash and cash equivalents disposed of
-9,274 -22,169 -22,169
Transaction costs
related to disposal 1,047 -27,129 -39,802
Net cash inflow arising on disposal
-6,227 824,798 876,648
Note
8 – Disposal of activities
24 Q1 Report 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
25 Q1 Report 2022
Notes
For more information about Columbus visit www.col umbusglobal. com