2019 results in line with guidance – COVID-19 measures implemented - Seite 2

As a leading digitalization company, we have broad experience serving our customers digitally. We are able to deliver digitally from early engagement discussions to project initiation, implementation and application management. We are currently in close connection with our customers to help them continue their operation during this period.

US market
Our US business had a difficult year in 2019. In Q3 a turnaround process was initiated with a new CEO on board. The market focus in the turnaround plan is to accelerate the transition of customers’ business application to cloud business application. With the turnaround plan we assumed that both Revenue and EBITDA should pick up during 2020. We realized in the beginning of March 2020 that the assumed turnaround will be a longer journey than initially assumed, escalated by the COVID-19 situation.
As a result of the delay in turnaround the carrying value of recognized goodwill related to US is impaired by DKK 90m.

The write down will have a negative effect in the profit after tax, which amounts to DKK 21m.

Risk management
In order to address the short-term uncertainty, we have initiated a Business Continuity Plan to mitigate risk and keep our business in good health during this challenging period.

Dividend
In addition, given the current uncertainty, we have decided to suspend the dividend policy to ensure the strongest possible liquidity position of the company.

2019 result in line with guidance
The revenue increased by 3% to DKK 1,932m. Organic growth is 4%.

The revenue from Columbus Services business increased by 3% to DKK 1,469m.

The revenue from Columbus Software increased by 15% to DKK 118m, which is very satisfying.

The sale of cloud grew by 50% due to the increasing conversion to cloud-based solutions. In addition, the sale of Columbus Care services grew by 24%.

Recurring revenue increased from DKK 426m to DKK 466m, which can be explained by good progress in sale of Columbus Care and cloud. The recurring revenue constituted 24% of the total revenue compared to 23% in 2018.

EBITDA increased from DKK 171m to DKK 238m, a growth of 39%. Adjusted for IFRS 16, the increase is 15%.
Earnings before tax decreased by 58% to DKK 49m. The decrease is caused by the write down of goodwill of DKK 90m in Columbus US.

The Group’s balance sheet amounts to DKK 1,655m and the equity to DKK 668m.

Management Initiatives in 2019

• Execute the Columbus2020 strategy
• Grow organically with the 9 Doors to Digital Leadership
• Integration of former iStone
• Recovery of the US business