Columbus — Earnings Release 2017

Aug 24, 2017

In first half of 2017 revenue increased by 8%, and EBITDA* increased by 7%.
Growth in the services business and cloud are driving the results. Columbus2020
execution is on track.

Release no. 20/2017

Columbus has today published the Interim Report for first half of 2017, cf.
release no. 19/2017.

Growth driven by the services business

In the first half of 2017, revenue amounted to DKK 642m (H1 2016: DKK 595m), an
increase of 8% compared to the same period last year. EBITDA* amounted to DKK
71.2m (H1 2016: DKK 66.8m), corresponding to an increase of 7%.

The revenue growth was primarily driven by growth in the services business,
where revenue increased by 10%. The increase in EBITDA* was driven by a 14%
increase in earnings in the services business.

The results are in line with the announced expectations for the year.

Improved operation generated growth in earnings in the services business

In first half 2017 service EBITDA increased from DKK 41.8m to DKK 47.9m, an
increase of 14%. The increase is due to higher realized hourly rates and
acquisitions. Further, increased utilization of Columbus’ Global Delivery
Center in India is a considerable parameter in the improvement of service
EBITDA.

Columbus Software sales as expected

In first half 2017 Columbus Software sales declined by 11%. License sales
decreased by 40% due to the cloud conversion. Revenue from subscriptions
increased by 17% due to a satisfactory renewal rate of previous years’ sale of
licenses.

Columbus cloud revenue amounted to DKK 1.6m. The development is in line with
expectations.

ColumbusCare and cloud drive growth in recurring revenue

In the first half of 2017, the recurring revenue increased by 16% The progress
is driven by a significant growth in the sale of ColumbusCare contracts, which
increased by 67%, as well as an increase in the total cloud revenue of 120% to
DKK 5.5m.

Recurring revenue constituted 27% of total revenue (H1 2016: 25%).

Acquisitions in 2017

In January 2017 Columbus acquired the US IT services company, Tridea Partners
LLC, which holds a leading positon within ERP and CRM in the growing food and
beverage industry in the US.

DKK ´000 H1 2017 H1 2016 2016

Columbus Software licenses 13,571 22,554 44,187
Columbus Software subscriptions 27,164 23,271 46,876
Exernal software licenses 53,473 47,662 86,495
Eksternal software subscriptions 106,090 99,776 195,164
Services 431,323 390,778 796,401
Other 10,694 10,496 23,584

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Total net revenue 642,315 594,537 1,192,707

EBITDA before share-based payment 71,177 66,754 144,070
Share-based payment -1,158 -1,091 -5,524

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EBITDA 70,019 65,663 138,546

”I am satisfied with the results for first half, where we deliver growth in
both revenue and EBITDA despite the cloud conversion. I am particularly
satisfied with the growth in our ColumbusCare and cloud businesses, which I
expect will constitute a considerably larger part of our business in the
future”, says CEO & President in Columbus, Thomas Honoré.

Columbus maintains expectations for 2017

Columbus maintains the previously announced expectations for 2017:

-- Revenue in the level of DKK 1.35bn
-- EBITDA* in the level of DKK 150m
-- Columbus Software revenue of DKK 80m
-- Service EBITDA of DKK 140m
-- 10% dividend on nominal share capital

Latest developments

No events or transactions with a material effect on the company’s financial
position have occurred since the balance sheet date.

*EBITDA before share-based payment

Ib Kunøe Thomas Honoré
Chairman of the Board CEO & President
Columbus A/S Columbus A/S
For further information, please contact:
CEO & President, Thomas Honoré .: +45 70 20 50 00

Translation: In the event of any inconsistency between this document and the
Danish language version, the Danish language version shall be the governing
version.

Columbus’ Columbus2020 strategy – towards growth

Based on Columbus’ strengthened position, as a result of successful execution
of the Columbus15 strategy, the company launched a growth strategy in March.
The strategy is named Columbus2020 and consists of four interconnected
strategic elements.

Customer Success – Taking care of our customers for life
Columbus’ fundamental goal their ERP-investments and satisfaction from the
is to take care of our by leading them in the customer meet Columbus
customers for life. digital transformation of for the first time to
Columbus aims to be their business delivering unique
widely recognized as a This means that Columbus solutions, high quality
strategic business will intensify the focus services and
partner that enhances our on creating a unique streamlined project
customer’s success by customer experience and delivery and support
improving the value increase customer 24/7.
realization of

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Digital Leadership – Accelerate business innovation
Columbus helps our methodologies and business business in order to
customers in the digital processes that optimizes succeed in the digital
transformation of their and improves the economy. Columbus will
business. With Digital implementation of develop solutions and
Leadership Columbus has ERP-solutions. Secondly, services within cloud,
two focus areas. Firstly, Columbus will establish a mobile, social,
Columbus will continue to leadership position analytics and Internet
strengthen our leadership within Digital of Things that help
position within ERP by Transformation. Many companies take
investing in new companies are about to or advantage of the
companies, applications, in the process of digital opportunities.
transforming their

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Process Excellence – Quality in everything we do
In Columbus, we constantly quality to our customers. over sales and design of
strive to optimize and Our goal is to create the the business solution
streamline our business best customer experience to the implementation
operations in order to in the industry. The process and lifetime
achieve strong sales focal point is quality in support. This means an
excellence and deliver everything we do – from intense focus on
projects, services and the initial contact with optimizing and
support of high customers, streamlining our
processes globally.

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Our People – Attract, develop and retain the best people
Columbus’ greatest asset providing challenging meeting the customers’
is our employees and career opportunities, expectations sets the
therefore it is crucial attractive working direction in everything
that we attract and conditions and we do.
retain the best people in professional and personal This means that Columbus
the industry. We want to growth. Columbus want to always strives to
attract highly skilled create a customer deliver projects on
people by culture, where time, within budget and
at the highest quality.