Columbus A/S

Company announcement no. 5/2021         March 16th, 2021 Columbus A/S Annual Report 2020

Company announcement

Satisfying result in a challenging year

"Despite the global pandemic, Columbus delivered a 2020 result in line with expectations. We are pleased with the results, especially seen in the light of the improved normalized EBITDA-margin to 7.3%. Our Dynamics Sweden business and our Norwegian subsidiary have shown significant growth in 2020, and in addition Cloud services and Columbus Care have also shown progress. The launch of our new strategy, Focus23, was an important milestone in 2020, and the adaption of the business with, among other things the divestment of To-Increase was the first step towards simplifying the business with a great focus on advisory of larger customers. During Q4 2002, we saw an increase in revenue and look forward to an exciting and more normal 2021", says Chairman of the Board, Ib Kunøe.

New CEO for Columbus will be announced in near future
Columbus’ Board of Directors is in process of finalizing the recruitment of the company’s future CEO, and will in the near future announce the leader of Columbus’ continued development.

Financial highlights for the period 1 January to 31 December 2020

All numbers and comments are on the continued business excluding assets classified as held for sale and discontinued businesses.

DKKm	2020	2019	Development
Revenue reported	1,655	1,761	-6%
Revenue from acquisitions during 2020	-44	0	0%
Organic revenue	1,611	1,761	-9%
EBITDA reported	138	157	-12%
Adjustment of provision for loss making contract	35	39	-12%
Reversal of earn-out	-46	-71	-36%
EBITDA from acquisitions during 2020	-11	0	0%
Normalized EBITDA	117	125	-7%
Normalized EBITDA margin	7.3%	7.1%	2%

DKKm	2020	2019	Development
Columbus licenses	4	10	-59%
Columbus subscriptions	21	22	-4%
Columbus Cloud	16	8	95%
External licenses	78	74	6%
External subscriptions	176	195	-10%
External Cloud	43	34	28%
Services	1,302	1,386	-6%
Other	14	32	-56%
Revenue reported	1,655	1,761	-6%
EBITDA reported	138	157	-12%

Performance highlights for 2020:

• Reported revenue declined by 6%, amounting to DKK 1,655m mainly due to Covid-19
• Columbus Care grew by 12% to DKK 152m
• Cloud Services grew by 41% to DKK 59m, due to continued cloud conversion
• Recurring Revenue improved by 4%, constituting 25% of revenue
• Normalized EBITDA declined by 7% to DKK 117m, and normalized EBITDA margin increased by 2%
• Staff cost decreased by 0.5% to DKK 1,061m as an effect of the capacity adjustment in March and April
• Other external cost decreased by 17% to DKK 147m. Reduction is primarily related to less internal travel cost
• Profit after tax increased from DKK -18m to DKK 55m
• Cash position improved by DKK 17m compared to 31 December 2019, total cash position amounts to DKK 164m
• Equity increased by DKK 47m since 31 December 2019, total equity of DKK 716m

Other highlights

Focus and simplicity:

• New strategy, Focus23, launched
• To-Increase software business sale completed for a price (Enterprise Value) of EUR 113m
• Divestment of Columbus’ private cloud business ​
• Closing of Spanish entity
• Earn-out for the iStone business adjusted.

Outlook for 2021

Based on the financial performance in 2020, current order book and pipeline forecast, our full year guidance for 2021 for the continued business is as follows:

• Revenue is expected to be in the range of DKK 1,650m and DKK 1,800m.
• EBITDA is expected to be in the range of DKK 125m and DKK 150m.

Live webcast and conference call

Columbus is hosting a live webcast and conference call on 16 March 2021 at 13:00 CET. The webcast is hosted by Interim CEO & Corporate CFO Hans Henrik Thrane.

Webcast: Please login to the webcast via Columbus’ investor site: https://ir.columbusglobal.com/calendar-and-events

Conference call dial-in details:

• Denmark: +45 32 72 04 17
• UK/International: +44 (0) 2071928338
• USA: +1 6467413167
• Conference-ID: 1627713

Please dial in a few minutes before to allow time for registration of name and company. Questions can be raised during the webcast.

For further information, please contact:

• Hans Henrik Thrane, Interim CEO & Corporate CFO, HHT@columbusglobal.com, +45 7020 5000
• Tine Rasmussen, Communication Director, TRA@columbusglobal.com, +45 2969 0677

About Columbus

Columbus is a global IT services and consulting company with more than 1,800 employees serving 5,000+ customers worldwide. Columbus helps ambitious companies to maximize, transform and futureproof their business digitally. Columbus’ innovative solutions and services portfolio 9 Doors to Digital Leadership® delivers end-to-end digital solutions like cloud ERP, Digital Commerce, Data & Analytics, and Application Management that address the lifecycle and sustainability demands of the retail, distribution, food, and manufacturing industries. Columbus was founded in 1989 and is headquartered in Denmark with offices and partners all over the world, delivering solutions and services locally—on a global scale. Columbus A/S is listed on Nasdaq Copenhagen – COLUM

For more information: www.coloumbusglobal.com.

Attachment

• Annual Report 2020

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