Q2 2026 Columbus AS Earnings Call

August 19, 2026

Operator: of this morning. In the first part of the presentation, you will be in a listen-only mode, which will be followed by a Q&A session. During the Q&A session, if you are dialed in by phone, you will be able to ask questions verbally by pressing pound or hashtag, followed by 5 on your phone's keypad. If you are watching this webcast online through a browser, you can ask your written questions in the chat below. Those questions will not be published, but the operator will read them out loud. With that, I will hand over to CEO, Søren Krogh Knudsen, and CFO, Brian Iversen from Columbus. Please go ahead.

Speaker #1: This morning. In the first part of the presentation, you'll be in a listen-only mode, which will be followed by a Q&A session. During the Q&A session, and if you're dialed in by phone, you'll be able to ask questions verbally by pressing pound or hashtag followed by 5 on your phone's keypad.

Operator: In the first part of the presentation, you will be in a listen-only mode, which will be followed by a Q&A session. During the Q&A session, if you are dialed in by phone, you will be able to ask questions verbally by pressing pound or hashtag, followed by five on your phone's keypad. If you are watching this webcast online through a browser, you can ask your written questions in the chat below. Those questions will not be published, but the operator will read them out loud. With that, I will hand over to Chief Executive Officer, Søren Krogh Knudsen, and Chief Financial Officer, Brian Iversen from Columbus. Please go ahead.

Speaker #1: If you're watching this webcast online through a browser, you can ask your written questions in the chat below, those questions will not be published, but the operator will read them aloud.

Speaker #1: With that, I'll hand over to CEO, Soren Knudsen, and CFO, Brian Iversen, from Columbus. Please go ahead.

Speaker #2: Thank you very much, Rasmus. And good afternoon to everybody. Thank you for joining this webcast, where Brian and I will be presenting second quarter of 2026.

Søren Krogh Knudsen: Thank you very much, Rasmus, and good afternoon to everybody. Thank you for joining this webcast, where Brian and I will be presenting our quarterly results for Q2 2026. I will start by going through a market and operational highlights section, and then Brian will dive into the financial reporting based on our business line and geography structure. Then Brian will also cover our outlook, and then we will take questions at the end. Let's get started. I will just give you 10 seconds to read through this disclaimer. All right. Revenue in Q2 increased by 2%, and as such, it marked a change following some quarters where we have had negative organic revenue growth. We achieved this despite still having some market conditions in Denmark and Sweden that are not that favorable. We have yet to return to growth for those two countries.

Speaker #2: We will start, I will start by going through market and operational highlights section, and then Brian will dive into the financial reporting. Based on our business line and geography structure, then Brian will also cover our outlook, and then we will take questions at the end.

Speaker #2: So let's get started. I'll just give you 10 seconds to read through this disclaimer. All right. So revenue in Q2 increased by 2%, and as such it marked a change following some quarters where we had had negative organic revenue growth.

Speaker #2: We achieved this despite still having some market conditions in Denmark and Sweden that are not that favorable. So we have yet to return to growth for those two geographic those two countries.

Speaker #2: So this growth was really driven by a very, very strong performance in Norway, but we've also seen a good performance from the US, and we've seen a good performance from the UK as well.

Søren Krogh Knudsen: This growth was really driven by a very strong performance in Dynamics Norway, but we have also seen a good performance from the US, and we have seen a good performance from the UK as well. Our EBITDA remained flat in Q2 2026 compared to same quarter last year, and we ended up at a 4% margin. This reflects to some extent still that we had a slower start to actually going back all the way to Q1, which we recovered partly from in Q2, and we continue to gather velocity in our organization. But also I think it is fair to recognize that there are some other dynamics at play. Competition is pretty fierce, and the market is still to some extent hesitant, driven by various factors.

Speaker #2: Our EBITDA remained flat in Q2 2026 compared to same quarter last year, and we ended up at a 4% margin. This reflects to some extent still that we had a slower start to actually all the way going back all the way to Q1, which we recovered partly from in Q2, and we continue to gather velocity in our organization.

Speaker #2: But also we, I think it's fair to recognize that there are some other dynamics at place. So competition is pretty fierce, and the market is still to some extent hesitant driven by various factors.

Speaker #2: I think we've already discussed previously some of the geopolitical turmoil, which has not really improved, but perhaps has come more of a new normal for our customers.

Søren Krogh Knudsen: I think we have already discussed previously some of the geopolitical turmoil, which has not really improved, but perhaps has come more of a new normal for our customers, so we can work through that. But also all of the technology advances that we help deliver are effecting a change in investment strategy from our customers. So they need to come up with a new strategic mindset, and that is what we are now succeeding with, I would say, as we see the return to growth. In essence, some of the activities that we have been doing for years, the configuration, the setup work, the integration work, we are now delivering at a better pace, more efficiently. And that is then being offset by new services from our side, which is more advisory-focused, which is much more related to taking out efficiency gains from the AI platforms that we are delivering.

Søren Krogh Knudsen: I think we have already discussed previously some of the geopolitical turmoil, which has not really improved, but perhaps has come more of a new normal for our customers, so we can work through that. But also all of the technology advances that we help deliver are effecting a change in investment strategy from our customers. So they need to come up with a new strategic mindset, and that is what we are now succeeding with, I would say, as we see the return to growth. In essence, some of the activities that we have been doing for years, the configuration, the setup work, the integration work, we are now delivering at a better pace, more efficiently. That is then being offset by new services from our side, which is more advisory-focused, which is much more related to taking out efficiency gains from the AI platforms that we are delivering.

Speaker #2: So we can work through that. But also all of the technology advances that we helped deliver are affecting a change in investment strategy from our customers.

Speaker #2: So they need to come up with a new strategic mindset, and that is what we are now succeeding with, I would say, as we see the return to growth.

Speaker #2: In essence, some of the activities that we've been doing for years, the configuration, the setup work, the integration work, we are now delivering at a better pace, more efficiently.

Speaker #2: And that is then being offset by new services from our side, which is more advisory focused, which is much more related to taking out efficiency gains from the AI platforms that we're delivering.

Speaker #2: So there's a change in the service mix underneath, which we're currently undergoing. Another way of looking at the improved activity is, of course, our efficiency level.

Søren Krogh Knudsen: There is a change in the service mix underneath, which we are currently undergoing. Another way of looking at the improved activity is, of course, our efficiency level, which is also known, I guess, in the industry as the billability, which increased to 65%. That is a pretty good improvement compared to same quarter last year. It is a development that we expect will continue as we go into Q3 and Q4. As mentioned, it was especially Norway and it was especially Dynamics Norway that experienced a strong growth of 52% in the quarter. That was a very strong driver of the group's overall 2% growth. It was driven by some of the major contract wins we have talked to you about in our previous quarterly sessions.

Speaker #2: Which is also known, I guess, in the industry as the billability, which increased to 65%. So a pretty good improvement compared to same quarter last year.

Speaker #2: And it is a development that we expect will continue as we go into Q3 and Q4. So as mentioned, it was especially Norway and it was especially dynamics Norway that experienced a strong growth of 52% in the quarter.

Speaker #2: So that was a very strong driver of the group's overall 2% growth. And it was driven by some of the major contract wins we talked to you about in our previous quarterly sessions.

Søren Krogh Knudsen: Also, on a more broad geographical basis, Data & AI has contributed significantly to the growth, and that was basically more spread across several geographies, but primarily in Scandinavia is where we have seen the growth come from, Denmark, Sweden, and Norway. As we go through our outlook later on and talk about what we expect for the coming quarters, I will also say that the momentum we have in Norway, driven by some major contracts, we expect even further momentum gain in Norway. So where you may expect that we have now reached the full velocity, we are still expecting more to come. Likewise, we have improved our efficiency also for Dynamics in the UK, but we are still expecting further velocity gain from those particular units.

Speaker #2: Also on a more broad geographical basis, data and AI has contributed significantly to the growth, and that was basically more spread across several geographies, but primarily in Scandinavia is where we've seen the growth come from.

Speaker #2: Denmark, Sweden, and Norway. So as we go through our outlook later on and talk about what we expect for the coming quarters, I will also say that the momentum we have in Norway, driven by some major contracts, will we expect even further momentum gain in Norway.

Speaker #2: So where you may expect that we've now reached the full velocity, we're still expecting more to come. And likewise, we have improved our efficiency also for dynamics in the UK, but we're still expecting further velocity gain from those particular units.

Speaker #2: So I'd like to just show the backwards looking geographical revenue performance. Organically, where you will now see Q2, as we've just talked about, going back to 2%.

Søren Krogh Knudsen: I would like to just show the backwards-looking geographical revenue performance organically, where you will now see Q2, as we have just talked about, going back to 2%. It does basically follow five quarters of the negative organic growth going back to Q1 of 2024. Obviously, we are very pleased with the return to growth, although 2% is obviously modest. If you see the way we look at this trend line, our ambition and our planning is, of course, to go to a higher growth percentage in the coming quarters. As we go through a change, as I was explaining before, in terms of services delivered and also our commercial pipeline building, which we talked about before, we remain very focused on our operational efficiency and cost discipline and something we want to improve further on in the coming quarters.

Speaker #2: So it does basically follow five quarters of the negative organic growth, going back to Q1 of 2024. And obviously, we are very pleased with the return to growth, although 2% is obviously modest, but if you see the way we look at this trend line, we are our ambition and our planning is, of course, to go to a higher growth percentage in the coming quarters.

Speaker #2: So as we go through a change, as I was explaining before, in terms of services delivered, and also our sort of commercial pipeline building, which we've talked about before, we remain very focused on our operational efficiency and cost discipline, and something we want to improve further on in the coming quarters.

Speaker #2: We have seen improvements obviously, as I said, reaching 65% in efficiency already. Small reduction in full-time equivalents. Employed. But we will continue to stay in this mode which consists both of being very cost conscious and even taking to some degree smaller elements of cost out in order to reinvest that in the new service areas that we're growing which we can also see in the data and AI growth number that we have shown.

Søren Krogh Knudsen: We have seen improvements, obviously, as I said, reaching 65% in efficiency already. There is a small reduction in full-time equivalents employed. But we will continue to stay in this mode, which consists both of being very cost-conscious and even taking, to some degree, smaller elements of cost out in order to reinvest that in the new service areas that we are growing, which you can also see in the Data & AI growth number that we have shown. We know we need to be very adaptive to build the organization for the future. We can clearly see the demand for delivering customer value, and it is a mirror that is helped from our customers to us on a daily basis. As we increase our effectiveness, we know that this is working.

Speaker #2: So we know we need to be very adaptive to build the organization for the future. We can clearly see the demand for delivering customer value, and it's a mirror that's helped from our customers to us on a daily basis.

Speaker #2: And as we increase our effectiveness, we know that this is working. So the patience from our large customers in terms of when they expect to see a return on investment is shortening, and we are managing to deliver against that, and it makes it very exciting, and it's primarily enabled by some of the technology advancements that find their way into our project delivery models.

Søren Krogh Knudsen: The patience from our large customers in terms of when they expect to see a return on investment is shortening, and we are managing to deliver against that, and it makes it very exciting. It's primarily enabled by some of the technology advancements that find their way into our project delivery models. We expect much more to come from that. Although I will say it's already extremely significant how much some of the specific project delivery activities have been streamlined by technology. So it is something we review on a monthly, if not weekly, basis to embed that into our own delivery, and it's also what ensures that we stay relevant to our customers. From a customer perspective, the new areas of work are related to realizing real efficiency gains for our customers.

Speaker #2: And we expect much more to come from that, although I will say it's already extremely significant how much some of the specific project delivery activities have been streamlined by technology.

Speaker #2: So it is something we review on a monthly if not weekly basis to embed that into our own delivery, and it's also what ensures that we are that we stay relevant to our customers.

Speaker #2: From a customer perspective, the new areas of work are related to realizing real efficiency gains for our customers. We start often with an offset in the ERP platforms, which we have which are the core systems of many of our customers.

Søren Krogh Knudsen: We start often with an offset in the ERP platforms which are the core systems of many of our customers, and we obviously know this domain area the best. But we can see that we're now expanding into multiple domain areas because the way we implement the AI technology doesn't really start with an ERP process or ERP domain offset. It always starts with a complete business process, and business processes tend to touch many different technology domains. So we're working very differently there, and we have also formed new partnerships to strengthen our own expertise within automation. Some are specific to M3, Informind. So we continue to adapt the ways of working and carving out new service areas which we find the most relevant for us and for our customers for future. I think with that, Brian, I'll hand it over to you for financials first-

Søren Krogh Knudsen: We start often with an offset in the ERP platforms which are the core systems of many of our customers, and we obviously know this domain area the best. But we can see that we're now expanding into multiple domain areas because the way we implement the AI technology doesn't really start with an ERP process or ERP domain offset. It always starts with a complete business process, and business processes tend to touch many different technology domains. So we're working very differently there, and we have also formed new partnerships to strengthen our own expertise within automation. Some are specific to M3, Infomind. So we continue to adapt the ways of working and carving out new service areas which we find the most relevant for us and for our customers for future. I think with that, Brian, I'll hand it over to you for financials first.

Speaker #2: And we obviously know this domain area the best, but we can see that we're now expanding into multiple domain areas because the way we implement the AI technology doesn't really start with an ERP process or ERP domain offset.

Speaker #2: It always starts with a complete business process, and the business processes tend to touch many different technology domains. So we're working very differently there, and we have also formed new partnerships to strengthen our own expertise within automation, some specific to M3 in mind, so we continue to adapt the ways of working and carving out new service areas which we find the most relevant for us and for our customers for the future.

Speaker #2: And I think with that, Brian, I'll hand over to you for financials first, and then we can take questions later.

Brian Iversen: Yes

Brian Iversen: Yes.

Søren Krogh Knudsen: and then we can take questions later.

Søren Krogh Knudsen: Then we can take questions later.

Speaker #3: Yeah. Thank you, Son. So let me walk you through the three slides: revenue, contribution margin, and service revenue per country. As usual, so let's start with the revenue for Q2.

Brian Iversen: Yeah. Thank you, Soren. Let me walk you through the three slides, revenue, contribution margin, and service revenue per country as usual. Let's start with the revenue for Q2. Split into our five business lines. Firstly, Dynamics, in line with the group, is getting, let's say, slowly back into growth, 1% plus for the quarter, as Soren already mentioned, primarily driven by Dynamics Norway, but also US is a strong contributor to this growth. Whereas we still see some hesitancy in Dynamics Denmark and Sweden.

Brian Iversen: Yeah. Thank you, Søren. Let me walk you through the three slides, revenue, contribution margin, and service revenue per country as usual. Let's start with the revenue for Q2. Split into our five business lines. Firstly, Dynamics, in line with the group, is getting, let's say, slowly back into growth, 1% plus for the quarter, as Soren already mentioned, primarily driven by Dynamics Norway, but also US is a strong contributor to this growth. Whereas we still see some hesitancy in Dynamics Denmark and Sweden.

Speaker #3: Split into our five business lines. Firstly, dynamics in line with the group is getting let's say it's slowly back into growth, 1% plus for the quarter.

Speaker #3: As Son already mentioned, primarily driven by Norway, but also US is a strong contribution. To this growth, whereas we still see some hesitancy in Norway and Sweden.

Søren Krogh Knudsen: Sweden and Denmark.

Speaker #3: Yeah, Sweden and Denmark, sorry, yes. Norway is in the past, but they are back in a heavy growth. M3 slight decrease of 3% in the quarter.

Brian Iversen: Yeah, Sweden and Denmark. Sorry, yes. Norway is in the past, but they are back in heavy growth. M3, slight decrease of 3% in the quarter. They simply had a slow quarter, a bit lower activity in some of the smaller countries. I think Sweden is actually getting slowly back, but still roughly minus 3%. Digital Commerce continues to face some headwinds. I think I have said that for four quarters now, but after all, Sweden is actually getting slowly back into growth, which is the biggest country within this business line. Data & AI, Søren already mentioned, +40%, goes without saying. It is a huge demand after a lot of new strong consultants we have hired in this business line.

Speaker #3: They simply had a slow quarter, a bit lower activity in some of the smaller countries, I think Sweden is actually getting slowly back, but still roughly minus 3%.

Speaker #3: Digital commerce continue to face some headwinds. I think I have said that for quarters now. But after all, Sweden is actually getting slowly back into growth, which has been and which is the biggest country within this business line.

Speaker #3: Data and AI, Son already mentioned, plus 40% growth without saying. It's a huge demand after some of a lot of new strong consultants we have hired in this business line.

Speaker #3: If we look at the contribution margin, dynamics, which again is our biggest business line, plus 60% on top line. Had a small decrease of 1% percentage point.

Brian Iversen: If we look at the contribution margin, Dynamics, which again is our biggest business line, +60% on the top line, had a small decrease of 1 percentage point. That is hitting the full group as big as they are. M3, as mentioned, it had a very slow quarter, both on top, also on the bottom line. They invested quite a lot in sales there, but it is below expectation for such a big business line, and we clearly expect some return to a fair level the coming quarters. Digital Commerce, which is, as you remember, still dropping a bit on the top line, is starting to get a good grip on the bottom line, and they are increasing slightly with 2 percentage points.

Speaker #3: And of course, that is hitting the full group as big as they are. Sweden, no, sorry, M3, as mentioned, it had a very slow quarter, both on top, also on bottom line.

Speaker #3: They invested quite a lot in new sales. But it is below expectation for such a big business line, and we clearly expect some return to a fair level that the coming quarters.

Speaker #3: Digital commerce, which is, as you remember, still dropping a bit on the top line, is starting to get a good grip on the bottom line, and they are increasing slightly with 2 percentage points.

Speaker #3: Still below where they should be, but it we do see a turn and a clearly improved control of the business and profitability within the business.

Brian Iversen: Still below where they should be, but we do see a turn and a clearly improved control of the business and the profitability within the business. EIM, there is some seasonal fluctuations in that, but they are still running a very healthy profitability level. Briefly on our market units, our countries, as Søren already mentioned, Sweden and Denmark is where we still see or face headwinds. I think there is some light at the end of the tunnel, but there is still work to do. UK is flat but adjusted for currency impact. Over there, we actually, for the quarter, see a growth. They are back in growth, this quarter they were negative. There we also expect them to continue that path the coming quarters. Norway, as already mentioned, 52%. That is really strong, and it is great to see that we are getting a really strong foothold in that country.

Speaker #3: And EEM, there is some seasonal fluctuations in that, but they're still running on a very healthy profitability level. Briefly on our market units or countries, as Son already mentioned, no Sweden and Denmark is where we still see or face headwind.

Speaker #3: I think there is some light at the end of the tunnel, but there's still work to do. Whereas UK is flat, but adjusted for currency impact.

Speaker #3: Over there, we actually for the quarter see a growth they are back in growth, first quarter they were negative. And there we also expect them to continue that path the coming quarters.

Speaker #3: Norway, as already mentioned, 52%. That is really strong, and it's great to see that we have a we're getting a really strong foothold in that country.

Speaker #3: And US is also growing has been for many quarters, still relatively small, so one big project that is turning or whatever can impact that slightly, but a good path.

Brian Iversen: US is also growing, has been for many quarters, still relatively small. So one big project that is turning or whatever can impact that slightly, but a good path. Now we turn to H1, slightly the same story, but I have three slides here. Dynamics for the first half year of 2026, below 3%. But as you can see from the quarter, the turning point is expecting to be here in Q2 to a positive growth. M3 also roughly flat. They have had some major strong wins, but there have been slight performance in projects and that do affect them. They have a lot of quite big projects, especially in Sweden, going on. Digital Commerce, I think also down for the first half, like in Q2.

Speaker #3: Now we turn to H1, slightly the same story. But I have three slides here. Dynamics, for the first half year, of 2026, below the 3%.

Speaker #3: But as you could see from the quarter, the turning point is expecting to be here in Q2 to a positive growth. M3 also roughly flat.

Speaker #3: They have had some major strong winds, where there have been slight postponement in project, and that do affect them. They have a lot of quite big projects, especially in Sweden, going on.

Speaker #3: Digital commerce, yeah, I think also down for the first half, like Q2, but more importantly, with my head on, they are getting a really good grip on the bottom line, and that is a strong priority, but we also expect to see growth coming in the next few quarters.

Brian Iversen: More importantly, with my head on, they are getting a really good grip on the bottom line, and that is a strong priority. But we also expect to see growth coming in the next few quarters. Data & AI, 31% and do continue the growth in the coming quarter as well. Of course, with that speed, 50% might not be the standard for the coming four quarters. Would be nice, but let's see. But definitely double-digit growth is expected and contribution margin for H1.

Speaker #3: Data and AI, 31%, and do continue the growth in the coming quarter as well. Of course, with that speed, 50% might not be the standard for the coming four quarters, would be nice, but let's see.

Speaker #3: But definitely growth in double-digit growth is expected. And contribution margin for H1, again here, dynamics is down with 4 percentage point. And that is a big chunk of that is linked to a weak start for the year Q1, as you might also remember.

Brian Iversen: Again here, Dynamics is down with 4 percentage points, and a big chunk of that is linked to a weak start for the year Q1, as you might also remember, and some new big wins where we just need to get in the office with the customer, get our sale, get the right team on, and slowly working our way back into a fine profit, which will also help the total Dynamics and the total group on the bottom line at the coming quarters. M3 is mainly linked to a quite weak Q2, as we just saw, but we expect them to improve back again the coming quarters. Digital Commerce, slightly up 1 percentage point, a bit more in Q2.

Speaker #3: And some new big wins where we just need to get in the office with the customer, get ourselves, get the right team on, and slowly working our way back into a fine profit.

Speaker #3: Which will also help the total dynamics and the total group on the bottom line that the coming quarters. M3 is mainly linked to a quite weak Q2.

Speaker #3: So just saw, but we expect them to improve back again the coming quarters. Digital commerce, slightly up, 1 percentage point, a bit more in Q2.

Speaker #3: That had been hard work because it is hard to turn the bottom line when you have a decreasing top line, but they succeeded, and we start to regain momentum there.

Brian Iversen: That has been hard work because it is hard to turn the bottom line when you have a decreasing top line, but they succeeded. We start to regain momentum there. Data & AI, we have done some heavy investment in new, very strong consultants in Denmark and Sweden, recently UK. I saw a new good guy there. It does take a few months before they really are fully up and running. So we still continue to invest in that and it's in from the top line as well.

Speaker #3: And data and AI, we have done some heavy investment in new, very strong consultants in Denmark and Sweden. Recently, UK, I saw new good guy there.

Speaker #3: And it does take a few months before they really are fully outrunning, but so we still continue to invest in that, and that is seen from the top line as well.

Speaker #3: Market unit, my last slide. For the first half, same story. Denmark and Norway or Sweden and Sweden and Denmark, sorry, is looking into decreases, whereas Norway and also UK adjusted for currency is growth or slightly growth scenario.

Brian Iversen: Market unit, my last slide. For H1, same story. Sweden and Denmark are looking into decreases, whereas Norway and also UK, adjusted for currency, is a growth or slightly growth scenario. We do expect us to get at least an improved revenue in both Denmark and Sweden at H2. There is really a strong pipeline out there, but it still needs to get into the books and in here before we see the real numbers. We do expect a positive growth at least for the group, as you know, for H2.

Speaker #3: But we do expect us to get at least an improved revenue in both Denmark and Sweden the second half, really a strong pipeline out there.

Speaker #3: But it still needs to get into the books, and in here, before we see the real numbers, but we do expect positive growth at least for the group, as you know.

Speaker #3: But the second half, yeah. Okay. Then I only have the outlook left, and as no, I don't think you mentioned it, Son, but we maintain our outlook for the year.

Brian Iversen: Okay, I only have the outlook left. As I do not think we mentioned it, Soren, we maintain our outlook for the year, 0% to 5% in organic growth and 8% to 10% in EBITDA margin, and that we maintain as the situation is right now. Good. That brings us to the question. I will hand over to you, Rasmus, for managing that.

Speaker #3: 0 to 5 percent organic growth, and 8 to 10 percent EBITDA margin and that we maintain as the situation are right now. Good. That brings us to the question, so I will hand over to you, Rasmus, for mention that.

Speaker #1: Thank you, Son and Brian. Yes, and we are now ready for the Q&A session. And to repeat, you can get in line by to ask questions by pushing the pound key or hashtag followed by five on your phone's touchpad.

Operator: Thank you, Soren and Brian. Yes, we are now ready for the Q&A session. To repeat, you can get in line to ask questions by pushing the pound key or hashtag followed by 5 on your phone's touchpad if you dial in by phone. Should you wish to withdraw from the line, you can push the pound key or hashtag followed by 6. If you are watching this webcast online through a browser, you can ask your written questions in the chat below. Those questions will not be published, but the operator will read them aloud to management. We kindly ask you to limit yourself to a maximum of 2 questions at a time before joining back of the queue again. Thank you. We have the first question here, it comes from Wei Ju from ACB. Please go ahead, Wei.

Speaker #1: If you dial in by phone, and should you wish to withdraw from the line, you can push the pound key or hashtag followed by six.

Speaker #1: If you're watching this webcast online through a browser, you can ask your written questions in the chat below. Those questions will not be published, but they are ready to read them aloud to management.

Speaker #1: We kindly ask you to limit yourself to a maximum of two questions at a time before joining back of the queue again. Thank you.

Speaker #1: And we have the first question here comes from Wade Jewell from ACB. Please go ahead, Wayne.

Speaker #2: Hi, it's Wade from ACB. Thank you for taking my questions. And a couple of questions from my side. I do one at a time.

Wei Ju: Hi, it is Wei from ACB. Thank you for taking my questions. A couple of questions from my side. I will do one at a time. Firstly, Brian, you just mentioned, you see a strong pipeline here in Sweden and Denmark, and you are confident to return to growth in the regions in H2. Could you elaborate a bit here the pipeline? Is it something you have won, a contract you have signed, or is it still at an early stage?

Yiwei Zhou: Hi, it is Wei from ACB. Thank you for taking my questions. A couple of questions from my side. I will do one at a time. Firstly, Brian, you just mentioned, you see a strong pipeline here in Sweden and Denmark, and you are confident to return to growth in the regions in H2. Could you elaborate a bit here the pipeline? Is it something you have won, a contract you have signed, or is it still at an early stage?

Speaker #2: Firstly, Brian, you just mentioned. You see a strong pipeline here in Sweden and Denmark, and you are confident to return to growth in the regions in the second half.

Speaker #2: I mean, could you elaborate a bit here the pipeline, is it something you have won a contract, you have signed, or is it still sort of an early stage?

Speaker #3: Okay. I think I'll cover that one, Brian. Thank you, Wayne. I think Brian was when he talked about the pipeline, it was meant slightly different.

Søren Krogh Knudsen: Okay. I think I will cover that one, Brian.

Søren Krogh Knudsen: Yeah, you go, Brian.

Søren Krogh Knudsen: Thank you, Wei. I think Brian was, when he talked about the pipeline, it was meant slightly different. Let me just go into detail with that. Obviously, Q2, you saw strong growth from Dynamics Norway. We talked about the UK also being in growth in local currency. We do expect obviously, the growth rate to increase in Q3 and Q4. But where I think we misunderstood is that I expect we have even more momentum in Dynamics Norway, as I was saying. Even though it is a very high growth percentage that we are presenting there, we expect continued very strong growth from Dynamics Norway. Then we expect strong growth also to return to the UK.

Speaker #3: So let me just go into detail with that. Obviously, second quarter, you saw strong growth from Norway. We talked about the UK also being in growth with the in local currency.

Speaker #3: We do expect obviously, the growth to the growth rate to increase in the third and the fourth quarter. But what I think we misunderstood is that I expect we have even more momentum in Norway.

Speaker #3: As I was saying, so even though it's a very high growth percentage that we are presenting there, we continue we expect continued very strong growth from Norway.

Speaker #3: And then we expect strong growth also to return to the UK. And especially for the UK part, it's a very healthy, I would say, mix of projects that have already been landed, but where we are mobilizing and so we're getting up to full efficiency, but essentially where the sales process is over and an interesting pipeline.

Operator: Especially for the UK part, it is a very healthy, I would say, mix of projects that have already been landed, but where we are mobilizing, so we are getting up to full efficiency, but essentially where the sales process is over and an interesting pipeline. In Dynamics Norway, to get further growth, we are bidding for some major contracts, which would add even further to our momentum, even if only, I am almost going to say one of them or a few of them would come through. Back to focus on Denmark, Sweden. We have stabilized on the level where we are now. I think as we get into Q3 and Q4, we get more favorable quarters to compare ourselves against last year. That is one thing, but obviously we would much rather like to see a true uptick in performance.

Speaker #3: In Norway, to get further growth, we are bidding for some major contracts which would add even further to our momentum, even if only I'm almost going to say one of them or a few of them would come through.

Speaker #3: So back to focus on Denmark, Sweden. We have stabilized on the level where we are now. I think as we get into Q3 and Q4, we get more favorable quarters to compare ourselves against last year.

Speaker #3: So that's one thing. But obviously, we would much rather like to see a true uptick in performance. And with been heavily focused in Denmark, particularly in dynamics Denmark on building a strong pipeline with bigger representation of the very big customers, which is sort of the element missing compared to our other geographies.

Operator: We have been heavily focused in Denmark, particularly in Dynamics Denmark, on building a strong pipeline with bigger representation of the very big customers, which is sort of the element missing compared to our other geographies. We have a very strong medium-sized, medium to large, but we are missing some of the biggest engagements still in, particularly in Denmark, which we are focused on building. Whether that hits us in Q3 and Q4 remains to be seen.

Speaker #3: We have a very strong medium-sized, medium to large, but we're missing some of the biggest engagements still in particularly in Denmark, which we're focused on building.

Speaker #3: Whether that hits us in Q3 and Q4 remains to be seen. Second question, Wayne.

Søren Krogh Knudsen: Second question, Wei.

Speaker #2: Thank you. It was very clear. Same question. Second question is our margin. You mentioned the price pressure, fierce competition. I was wondering is it a broad-based across your markets, or is in selected markets?

Wei Ju: Thank you. It was very clear. Second question is on margin. You mentioned the price pressure, fierce competition. I was wondering, is it a broad base across your markets or is in selected markets? On top of that, is it possible to indicate to what extent you have to cut or lower the price in order to win larger contracts? If you could maybe also talk about what are your initiatives to mitigate the pricing pressure?

Yiwei Zhou: Thank you. It was very clear. Second question is on margin. You mentioned the price pressure, fierce competition. I was wondering, is it a broad base across your markets or is in selected markets? On top of that, is it possible to indicate to what extent you have to cut or lower the price in order to win larger contracts? If you could maybe also talk about what are your initiatives to mitigate the pricing pressure?

Speaker #2: And on top of that, is it possible to indicate that to what extent you have to cut or lower the price? In order to win larger contracts.

Speaker #2: And. If you could maybe also. Talk about what are your initiatives to mitigate the pricing pressure?

Søren Krogh Knudsen: Yeah. You want to start on that one, Brian?

Speaker #3: Yeah. You want to start on that one, Brian?

Speaker #4: Yeah. The first one, I think, Wayne, was is there a difference in our geographies on the pricing? I mean, what we can see is that we are running a very healthy margin in our UK, US markets, that we know.

Brian Iversen: Yeah. The first one I think Wei was, if there is difference in our geographies on the pricing. What we can see is that we are running a very healthy margin in our UK, US markets, that we know. The Scandinavian market is a bit more, call it, under pressure. That is something that we are working on. Germany is also a healthy market. We have a quite a mix here. I do not know if you want to add to that. That is probably roughly how it is on the bigger scale. Then you can always dig into each business line and each market and so on.

Speaker #4: And the Scandinavian market is a bit more call it under pressure. And that is something that we are working on. So that's the split.

Speaker #4: Germany is also a healthy market. So we have quite a mix here. I don't know if you want to add to that. That's probably roughly how it is on the bigger scale.

Speaker #4: Then you can always dig into each business line and each market and then so on. And the second question was what was that? That was.

Søren Krogh Knudsen: Yeah.

Brian Iversen: The second question was, what was that? That was-

Wei Ju: To what extent do you have to lower your price in order to win large contracts?

Yiwei Zhou: To what extent do you have to lower your price in order to win large contracts?

Speaker #2: 2010, you have to lower your price in order to win large contracts.

Speaker #3: Yeah. Okay. So I can cover that one. So we are not we're not lowering our prices. So that's the easiest way to answer it.

Søren Krogh Knudsen: Yeah. Okay. I can cover that one. We are not lowering our prices, so that is the easiest way to answer it. We have a slight increase in our hourly rates. Of course, we also have the, as you would expect with inflation, a slight increase in cost. It is more of a flat development on that. As Brian was saying, I would say that we have had real strong focus for the last five years on improving our project margins or our direct gross margin, if you will, from each of the projects, which has been very healthy, and remains very healthy. At the moment, where we are sometimes considering entering engagements on slightly lower rates or is always associated with very large engagements. Typically, something that spans two or three years and where we see big potential for a permanent strategic relationship with the customer.

Speaker #3: So we have a so we have a slight increase in our hourly rates. But of course, we also have the as you would expect with inflation, a slight increase in costs.

Speaker #3: So it's more of a flat development on that. As Brian would say, I would was saying I would say that we have very we've had real strong focus for the last five years on improving our project margins, so our direct gross margin, if you will, from each of the projects, which has been very healthy and remains very healthy.

Speaker #3: At the moment, where we are sometimes considering entering engagements on slightly lower rates or is always associated with very large engagements. So typically, something that spans two or three years.

Speaker #3: And where we see big potential for a permanent strategic relationship with the customer and as we win those contracts, we as you would also expect in our industry, we typically see the first three to six months the margin does not reach its full potential.

Søren Krogh Knudsen: As we win those contracts, as you would also expect in our industry, we typically see the first 3 to 6 months, the margin does not reach its full potential. We travel a lot in the beginning to introduce everybody. We invest always to get a strong start on the project, then we typically see our project margins improve as the whole engagement stabilizes over time. As a final one, Wei, on your interest in hourly rates and its impact on our profitability level, I would also say that we are expecting, in the coming years, that a proportion of our time and material revenue will be transferred, and we are in the process for some of that, to a more fixed pricing akin set up. Some of them are fairly advanced outcome-based prices. Some of them are more traditional fixed price for a functionality.

Speaker #3: We travel a lot in the beginning to introduce everybody. We invest always to get a strong start on the project. And then we typically see our project margins improve as the whole engagement stabilizes over time.

Speaker #3: And as a final one, Wayne, on your interest in hourly rates and its impact on our profitability level, I would also say that we are expecting in the coming years that a proportion of our time and material revenue will be transferred and we are in the process for some of that to a more fixed pricing akin setup.

Speaker #3: Some of them are fairly advanced outcome-based prices. Some of them are more traditional fixed price for a functionality. And I think it's definitely in our interest to do so as we gain implementation efficiency, but it's also in our customers.

Søren Krogh Knudsen: I think it's definitely in our interest to do so as we gain implementation efficiency, but it's also in our customers' interest to do so. So that's another change that we're expecting, and I think that will also affect our margin positively.

Speaker #3: Interest to do so. So that's another change that we're expecting. And I think that will also affect our margin positively.

Speaker #2: Yeah. Can I just follow up on this discussion? I recorded we had the same dialogue, same discussion late last year. And at the time, you were still a very firm on keeping.

Wei Ju: Yeah. Can I just follow up on this discussion? I recall that we had the same dialogue, same discussion late last year. At that time, you were still very firm on keeping the time and the material contracts as your business. What has changed your mind here? It's only half year I think passed.

Yiwei Zhou: Yeah. Can I just follow up on this discussion? I recall that we had the same dialogue, same discussion late last year. At that time, you were still very firm on keeping the time and the material contracts as your business. What has changed your mind here? It's only half year I think passed.

Speaker #2: Time and the material, contracts as your business. And what has changed your mind here is only since or half a year, let's say, past?

Søren Krogh Knudsen: I don't think we've changed our mind, and we still have, of course, the vast majority of our business on time and material. But the fundamental change that is hitting is when the time seems to be a meaningful indicator of value delivered. With all the investments we are currently making in platforms that support the individual consultant's efforts, you could compare that consultant one or one and a half year ago, how much can they get done in one hour and how much can they get done now? There's just a huge difference. It varies, but can often be 10 times more productive the way they're working. With that, time is no longer an effective way of talking value delivered when you talk to a customer. That is really what's driving our understanding that we need to move towards this platform.

Speaker #3: I don't think we've changed on mind. And we still have of course, the vast majority of our business on time and material. But the fundamental change that is hitting is that is when does time seems cease to be a meaningful indicator of value delivered.

Speaker #3: And with all the investments we are currently making in platforms that support the individual consultant's efforts, you could compare that consultant one or one and a half year ago, how much can they get done in one hour and how much can they get done now?

Speaker #3: And there's just a huge difference. You can it varies, but can often be 10 times more productive the way they're working. And with that, time is no longer an effective way of talking value delivered when you talk to a customer.

Speaker #3: And that is really what's driving our understanding that we need to move towards this platform. Fixed price is not a perfect vehicle, of course.

Søren Krogh Knudsen: Fixed price is not a perfect vehicle, of course. It has its own set of implications, which we have built systems that can manage and which we are comfortable managing. It is not like we suddenly just like fixed price. When you ask what is driving the change, it is the technology, and it is the technology enablement of a skilled consultant, which makes that consultant so much more efficient with the tool set than without the tool set. That is what drives it. Thank you, Wave.

Speaker #3: It has its own set of implications, which we have built systems that can manage and we're comfortable managing. But so it's not like we suddenly just like fixed price, but so when you ask what's driving the change, it's the technology.

Speaker #3: And it's the technology enablement of a skilled consultant which makes that consultant so much more efficient with the toolset than without the toolset. And that's what drives it.

Speaker #3: Thank you, Wayne.

Speaker #2: Okay. Thank you. Thank you for jumping.

Brian Iversen: Okay. Thank you.

Søren Krogh Knudsen: All right.

Brian Iversen: I jump back. Thank you.

Speaker #3: All right. Thank you for the next one.

Søren Krogh Knudsen: Move to the next one.

Speaker #1: And next questions here come from Michael Friis at HJ Anderson Capital. You are now online, Michael.

Operator: Next questions here come from Michael Friis at HC Andersen Capital. You are now online, Michael.

Speaker #2: Yeah. I also have two calls. Can you talk a little bit about the. The bridge from 5.1 in margins to 8.10 in your guidance.

Michael Friis: Yeah, I also have two calls. Can you talk a little bit about the move, the bridge from 5.1 in margins to 8.10 in your guidance? Is it volume? Is it that you now get deeper into contracts and get more margin out of that, like you mentioned, Soren? We heard from some other competitors in your business that you have the token cost, you have price to training AI, but you don't have the real contracts to move that, so going to the fixed price. Is that also a part of the solution? So a little bit about the moving blocks that will move you from the 5.1 to the 8.10 guidance.

Speaker #2: Is it volume? Is it that you now get deeper into contracts and get more margin out of that? Like you mentioned Soren and is there we heard from some other competitors in your business that this that you have a token cost, you have a price to train.

Speaker #2: High, but you don't have the real contracts to move that. So going to the fixed price, is that also a part of the solution?

Speaker #2: So a little bit about the moving blocks that will move you from the 5.1 to the 8.10 guidance.

Speaker #3: Yeah. Let me start with the moving blocks, Michael. And it's not one big bang coming down from heaven, but it's a bit what you said.

Brian Iversen: Yeah. Let me start with the moving blocks, Michael. It's not one big bang coming down from heaven, but it's a bit what you said. Growth is, of course, a much easier environment to be in when you look at bottom line in the consultancy business than a decline. So that is one of them. The second is, as we have been talking about here, margins. Margins, especially on new contracts, bigger contracts, is something that Soren and I is also heavily invested in, and probably also going a bit deeper than we normally would do to make sure we get the right focus on that. Then the third one is efficiency. We have seen it improve. As Soren mentioned, it's not like we are satisfied with 65%, so it's something that we continue to push on and believe there is more in.

Speaker #3: Growth is, of course, a much easier environment to be in when you look at bottom line in a consulting business than a decline. So that is one of them.

Speaker #3: The second is, as we have been talking about here, margins and margins and margins especially on new contracts, bigger contracts, is something that Soren and I is also heavily invested in and probably also going a bit deeper than we normally would do to make sure we get that right focus on that.

Speaker #3: And then the third one is efficiency. We have seen it improve. Soren mentioned it's not like we are satisfied with 65%. So it's something that we continue to push on and believe there is more in.

Speaker #3: So I would say that is the three big pillars and then you, of course, can see what is the in general cost level back office cost enabling cost as we call them.

Brian Iversen: I would say that is the three big pillars. Then you, of course, can see what is the, in general, cost level, back office cost, enabling cost, as we call them. That is something that we constantly look at, and of course, reevaluate, is it the right level, right percentages of revenue compared to the business line we are in. So that's the three to four pillars that we are working on. I would say it's not like they're new, but we sort of play different with them depending on the situation.

Speaker #3: That is something that we constantly look at. And of course, we evaluate is it the right level, right percentage of revenue compared to the business environment we are in.

Speaker #3: So that's the three to four pillars that we are working on. I would say it's not like they are new, but it's but we sort of play different with them depending on the situation.

Speaker #3: And then maybe you take.

Brian Iversen: Then maybe you take the-

Speaker #2: I'll take token cost one.

Søren Krogh Knudsen: I'll take token cost one.

Brian Iversen: Token.

Speaker #3: Token cost.

Speaker #2: Great. Okay. So let's just elaborate a little bit on your question, Michael. So I think you meant to what extent is token cost now a considerable cost factor for us when we deliver projects?

Søren Krogh Knudsen: Great. Okay. Let's just elaborate a little bit on your question, Michael. I think you meant to what extent is token cost now a considerable cost factor for us when we deliver projects? Very valid question. I think the easy way to answer it is it's not yet a significant factor going into our projects, but it's certainly something that we are seeing more and more of. As it will become a substantial input cost factor into any team delivery in Columbus and anywhere else. With fixed price, of course, we can contain some presumptions that we have, and we can keep that in the project and not having to keep track completely on variable token consumption. But that's not the interesting thing for me about tokens and basically the variable pricing that we're seeing being introduced globally right now.

Speaker #2: Very valid question. I think the easy way to answer it is it's not yet a significant factor going into our projects, but it's certainly something that we are seeing more and more of.

Speaker #2: And as it will become a substantial cost input cost factor into any team delivery in Columbus and anywhere else. And with fixed price, of course, we can contain some presumptions that we have and we can keep that in the project and not having to keep track completely on variable token consumption.

Speaker #2: But that's not the interesting thing for me about tokens and the basically the variable pricing that we're seeing to juice globally right now. The interesting thing is that all the hyperscalers of the world, capex investments, have yet by far superseded, I would say, in simple terms, the revenue that they're generating.

Søren Krogh Knudsen: The interesting thing is that all the hyperscalers of the world, CapEx investments, have yet by far superseded, I would say, in simple terms, the revenue that they are generating, and those ends have to meet. Introducing variable credit pricing or token pricing, whatever you call it, is the start of that, and it will increase, and it has only just begun. For Columbus, this mainly represents a huge opportunity, which has already started. Most of our customers, as we work on implementing technology for them, are very concerned about both the cost picture they are looking into long term as they commit to this technology, the contractual obligations they have with the vendors, and how locked in they are. All the governance, the security aspects of it, so that could both be intellectual property and all that, who retains title to everything.

Speaker #2: And that has to those ends have to meet and that and introducing variable credit pricing or token pricing, whatever you call it, is the start of that.

Speaker #2: And it will increase and it has only just begun. For Columbus, this mainly represents a huge opportunity which has already started. Most of our customers as we work on implementing technology for them are very concerned about both the cost picture they're looking into long term as they commit to this technology the contractual obligations they have with the vendors and how locked in they are all the governance, the security aspects of it.

Speaker #2: So that could both be intellectual property and all who retains title to everything. And for us, this is part of the growth that we're seeing in data and AI.

Søren Krogh Knudsen: For us, this is part of the growth that we are seeing in Data & AI. Yes, we have increasing token costs, for sure, and this will continue. But for us, it is mainly a business opportunity because it basically means that the domains that Columbus is an expert at will be much more costly for our customers because they deliver more value to the customers, but it also has to be managed very carefully, and it is a very complex thing to do, so many customers opt to have somebody like us assist them in that process.

Speaker #2: So yes, we have increasing token cost, for sure. And this will continue. But for us, it's mainly a business opportunity because it basically means that the domains that Columbus is an expert at will be much more costly for our customers because they deliver more value to the customers.

Speaker #2: But it also has to be managed very carefully. And it is a very complex thing to do. So many customers up to have somebody like us assist them in that process.

Speaker #2: You almost jumped my second question because that was mainly there's also. This discussion frontier models high token cost versus customized models which I guess must be where consultants come in.

Michael Friis: You almost jumped my second question because that was namely, there is also a big discussion, frontier models, high token costs versus custom models, which I guess must be where consultants come in, their knowledge. You do not need a Ferrari to pick up post and such stuff. The agent for a day, I am not sure I mentioned it correctly you had there. I can see your AI is starting to really pick up there. But are you seeing real momentum here? People trade of token costs, not needing frontier model, needing customized models. You can make that cheaper because you know how to best utilize AI, so you do not run up the token cost. Are you really starting to see that, and is that what we can see in AI, and will that accelerate into the second half and into 2027?

Speaker #2: Their knowledge you don't need a Ferrari to pick up poster and such stuff. And the agent for a day, I'm not sure I mentioned it correct, you had there I can see your AI starting to really pick up there.

Speaker #2: But are you seeing real momentum here? People afraid of token cost, not needing frontier model, needing customized models. And you can make that cheaper because you know how to best utilize AI so you don't run up the token cost.

Speaker #2: Are you really starting to see that? And is that what we can see in AI? And will that accelerate into the second half and into 2027?

Speaker #3: So to the last part question, Michael, I'm just going to be very short and say definitely yes. On the first part of your question, can we see that customers really are occupied with this?

Søren Krogh Knudsen: To the last part question, Michael, I am just going to be very short and say definitely yes. On the first part of your question, can we see that their customers really are occupied with this? Absolutely. But that being said, I still think it is very embryonic. For all of us, we have to recognize we are at the very early stage. You are absolutely right in that we are shooting sparrows with cannons or whatever we say in Danish, or using a truck to deliver a small parcel instead of a. So this has yet fully to mature. The reason I am just not saying fully yes to the way you are expressing is that I still think the customers are more important with saying how much efficiency gains can I actually drive out of this?

Speaker #3: Absolutely. But that being said, I still think it's very embryonic. For all of us, we have to recognize we're at the very early stage.

Speaker #3: You're absolutely right in that we are shooting sparrows with cannons or whatever we say in Danish or truck to deliver a small parcel instead of a so this has yet fully to mature.

Speaker #3: The reason I'm just not saying fully yes to what to the way you're expressing is that I still think the customers are more important with saying how much efficiency gains can I actually drive out of this?

Michael Friis: Yeah.

Speaker #3: And then you look at the cost side of that and saying, okay, let me realize those benefits and then let me marry up the extra cost with the benefits that it actually and I know we say everything is happening in months now, but this is not happening in months.

Søren Krogh Knudsen: And then, you look at the cost side of that and saying, "Okay, let me realize those benefits, and then let me marry up the extra cost with the benefits." I know we say everything is happening in months now, but this is not happening in months. This is

Speaker #3: This is for the next year. This is a completely new world that we need to realize. There's also a technology aspect about so we could perhaps cover that in a the technology part of it, which is we're talking a lot about the you're talking about the LLMs now, Michael, but there's a layer which is basically the referred to as MCP or ontology or where you connect the LLMs with a in a much more structured way with the data set of the companies and you can set up some guardrails you can make it more cost efficient also that way and you can yeah.

Michael Friis: Yeah

Søren Krogh Knudsen: happening in years. This is a completely new world that we need to realize. There is also a technology aspect. We could perhaps cover that in a moment. But the technology part of it, which is we are talking a lot about the. You are talking about the LLMs now, Michael, but there is a layer

Michael Friis: Yeah

Søren Krogh Knudsen: which could basically be referred to as MCP or ontology or where you connect the LLMs in a much more structured way with the data set of the companies. You can set up some guardrails. You can make it more cost-efficient also that way. I think we can come back to that part.

Speaker #3: So I think we can come back to that part.

Michael Friis: Yeah. My last part is, are you saying yes, you agree that consultants could be an efficient tool to get that because they have the knowledge about the models in general, but they also have the knowledge about the business and what is actually needed. So it would bring more consultants in if it would go in that direction.

Speaker #2: Yeah, but and my last part is are you saying are you saying yes, you agree that consultants could be efficient tools to get that because they have the knowledge about the models in general and but they also have the knowledge about the business and what exactly needed.

Speaker #2: So it would bring more consultants in if you would it would go in that direction.

Speaker #3: That's what's happening right now in our data and AI, but also even in the big ERP usage. As we replace the more simple implementation work.

Søren Krogh Knudsen: That is what is happening right now in our Data & AI, but also even in the big ERP units as we replace the more simple implementation work. Yeah.

Speaker #3: Yeah.

Speaker #2: Perfect. Perfect. Thank you.

Michael Friis: Perfect. Thank you.

Speaker #1: Thank you. And we'll now continue with some of the written questions. So the first question here goes, can you please break out how the Microsoft Dynamics business line has performed across specific geographies?

Operator: Thank you. We will now continue with some of the written questions. The first question here goes: Can you please break out how the Microsoft Dynamics business line has performed across specific geographies? I think we touched a little bit upon that earlier.

Speaker #1: I think with such a little bit upon that earlier.

Speaker #3: Yes. So I think Brian already answered that one, but essentially Dynamics is our biggest unit. So if you look at the business line spread that Brian just presented, where it's presented by geography, it will be pretty much the same picture for Dynamics.

Søren Krogh Knudsen: Yes. I think Brian already answered that one. Essentially, Dynamics is our biggest unit. If you look at the business line spread that Brian just presented, where it is presented by geography, it will be pretty much the same picture for Dynamics. Yeah.

Speaker #3: Yeah.

Speaker #1: Thank you. And next question here goes, what if or what if any, were some underperforming indicators?

Operator: Thank you. Next question here goes: What, if any, were some underperforming indicators?

Speaker #3: Okay. So the question is a little bit broad. Let me try to some underperforming indicators. I think the one for Q2 and the Q2 results going back to what we saw in our M3 business unit was one where Brian and I are keen to see a pickup in performance particularly on the contribution margin side in Q3.

Søren Krogh Knudsen: Okay. That question is a little bit broad. Let me try to. Some underperforming indicators. I think the one for Q2, in the Q2 results, going back to what we saw in our M3 business unit was one where Brian and I are keen to see a pickup in performance, particularly on the contribution margin side in Q3. Underperforming indicators. Otherwise, please type in if I'm missing an obvious where I should be commenting on. What was the utilization by practice? We don't publish the by practice utilization numbers on this quarterly. What I can say here, which is a good indicator of how our business is doing, is a year or 2 ago, we would have some of our business units as strong outliers at each end.

Speaker #3: So underperforming indicators. And otherwise, please type in if I'm missing sort of an obvious where it should be commenting on. So what was the utilization by practice?

Speaker #3: Okay. So we don't publish sort of the by practice utilization numbers on this quarterly, but what I can say here which is a good indicator of how business is doing is a year or two ago, we would have some of our business units as strong outliers at each end.

Speaker #3: So somewhere really even though efficiency may be at let's say 63 or 65 as we are today, in this quarter, it would be driven by some practices being performing very strongly at 71 and then some perhaps drawing the groups average back.

Søren Krogh Knudsen: Some were really, even though efficiency may be at, let's say, 63% or 65% as we are today in this quarter, it would be driven by some practices performing very strongly at 71% and then some perhaps drawing the group's average back. What we're seeing now is a much more uniform performance, which we think is beneficial for us. We're having less of a polarization between the performance levels. With that, I think I've also answered then that if I had this chart, there wouldn't be as much of a difference as we've seen in the past between both the business lines and geographies. There are differences, but it's not like there's only one business unit performing and the rest are going down.

Speaker #3: What we're seeing now is a much more uniform performance which we think is beneficial for us. So we're having less of a polarization between the performance levels.

Speaker #3: And with that, I think I've also answered then that yeah, if I had this chart, there wouldn't be as much of a difference as you would as we've seen in the past between both the business lines and geographies.

Speaker #3: So it's there are differences, but it's not like there's only one business unit performing and the rest are throwing us down.

Speaker #1: Thank you. And next question here, how significant is the need to shift the group's legacy skills space as its relationship with customers evolves? Is the necessary hiring made easier by weak market conditions?

Operator: Thank you. Next question here, how significant is the need to shift the group's legacy skill space as its relationship with customers evolves? Is the necessary hiring made easier by weak market conditions?

Speaker #3: Okay. So that's a big question from Ross. So there's it's very clear that we are currently transforming the groups skill base. And as such, there is a change from our legacy skill base.

Søren Krogh Knudsen: Okay. That's a big question from Ross. It's very clear that we are currently transforming the group's skill base, and as such, there is a change from our legacy skill base. A lot of it can largely be contained. With this question, I think is also implied, is it the same people? I think a lot of this is about the same people learning additional or training additional capabilities. There's no doubt that what we're seeing in terms of the net hiring we've had in Data & AI, they come with a completely different skill set, many of them.

Speaker #3: A lot of it can largely be contained. So with this question, I think is also implied, is it the same people? And I think a lot of this is about the same people learning additional or training additional capabilities.

Speaker #3: There's no doubt that what we're seeing in terms of the net hiring, we've had in data and AI, they come with a completely different skill set, many of them.

Speaker #3: So some will also be very new to us. And I don't think we can fully exclude that some of the legacy skills will become obsolete.

Søren Krogh Knudsen: Some will also be very new to us, and I don't think we can fully exclude that some of the legacy skills will become obsolete, and as a consequence, there could also be some consultant profiles which are not as relevant as they have been in the past. The second part of the question is whether the hiring is made easier by weak market conditions. I think definitely the attrition levels have gone down industry-wide. In terms of keeping employees, that has been made easier. I hope it's also because we do a good job, but I think the market conditions have contributed to that. It's speculation, but I think it may have made it slightly easier also to attract the talent.

Speaker #3: And as a consequence, that could also be some consultant profiles which are not as relevant as they have been in the past. Then the second part of the question is whether the hiring is made easier by weak market conditions.

Speaker #3: I think definitely the attrition levels have gone down industry-wise. So in terms of keeping, employees, that has been made easier. I hope it's also because we do a good job, but I think the market conditions have contributed to that.

Speaker #3: It's speculation, but I think it may have made it slightly easier also to attract the talent. What I see more in a unit like data and AI or if we take our some of our strongest performing geographical dynamics units, it's also like when you have the momentum consultants also with our competitors really know that.

Søren Krogh Knudsen: What I see more in a unit like Data & AI, or if we take some of our strongest performing geographical Dynamics units, it's also like when you have the momentum, consultants also with our competitors really know that. It's also driven a lot by momentum of our units because consultants want to hire or want to work for the company that has the most exciting projects to work on. That's also part of it.

Speaker #3: So it's also driven a lot by momentum. Of our units because consultants want to hire or want to work for the company that has the most exciting projects to work on.

Speaker #3: So that's also part of it.

Speaker #1: Thank you. And next question here goes, by hours, what was the right offs? Could I not be billed or you had to credit?

Operator: Thank you. Next question here goes, by hours, what was the write-offs that could either not be billed or you had to credit?

Speaker #3: I would actually say close to zero, but it's definitely a significant amount insignificant amount. Or level. And for me, that is actually a sign of good quality.

Brian Iversen: I would actually say close to zero, but it's definitely insignificant amount.

Søren Krogh Knudsen: Insignificant or a-

Brian Iversen: In-

Søren Krogh Knudsen: Thank you.

Brian Iversen: Insignificant amount.

Søren Krogh Knudsen: Yeah

Brian Iversen: or level.

Søren Krogh Knudsen: Yeah.

Brian Iversen: For me, that is actually a sign of good quality that we deliver. You could even go so far and say, are we too kind to our customers billing all the hours? But short answer is it is really on a healthy, strong level. It is very, very low.

Speaker #3: That we deliver you could even go so far and say, should we are we too kind to our customers billing all the hours? But short answer is it's really on a healthy strong level.

Speaker #3: It's very, very low. Yeah.

Søren Krogh Knudsen: Yeah.

Speaker #1: Thank you. And a question here goes, any discussions around acquisitions?

Operator: Thank you. A question here goes, any discussions around acquisitions?

Søren Krogh Knudsen: Yes. Obviously, this is one of the points where we are always limited in terms of what we can discuss. What I will say is that we can see a number of the smaller acquisitions that we have made last year have benefited us. There are some there which you may see as sort of from a financial perspective, but I would at least expect some smaller acquisitions to be made because they give us either access to specific customers or they give us a capability. It is not really a capacity acquisition. As to anything larger, there is nothing there to comment on at present time.

Speaker #3: Yes. And obviously, this is one of the points where we are always limited in terms of what we can discuss. What I will say is that we can see a number of the smaller acquisitions that we've made last year have benefited us.

Speaker #3: And there are some there which you may see seem as sort of a from a financial perspective, not but I would expect that I would at least expect some smaller acquisitions to be made because they give us either access to specific customers or they give us a capability.

Speaker #3: It's not really a capacity acquisition. As to anything larger, there's nothing to comment on at present time.

Speaker #1: Thank you. And next question here, as difficult market condition persists, what changes in competitor behavior are you seeing?

Operator: Thank you. Next question here, as difficult market conditions persist, what changes in competitor behavior are you seeing?

Søren Krogh Knudsen: Yeah. As we've already stated in the report, we've seen some pretty fierce competition from time to time. We find that we have a high win rate when we stick to the program, so we know which customers we are the best at. So we stay within those four industry verticals we told you about before, for the largest part. We're also obviously trying out some new things, but for the vast majority of new contracts, they are within those four. We don't go too small because we know that if they're not truly internationally present, they simply don't appreciate the way we've built our delivery mechanisms. They don't get the full benefit from it, and they do pay a premium for it, so it doesn't work. So that's I find what we use to counter the market conditions.

Speaker #3: already stated in the report, we've seen some pretty fierce competition from time to time. We find that we have a high win rate when we stick to the program.

Speaker #3: So we know which customers we are the best at. So we stay within those four industry verticals we told you about before. For the largest part, we're also obviously trying out some new things, but for the vast majority of new contracts, they are within those four.

Speaker #3: We don't go too small because we know that if they're not truly internationally present, they simply don't appreciate the way we've built our delivery mechanisms.

Speaker #3: They don't get the full benefit. From it. And they do pay a premium for it. So it doesn't work. So that's the I find what we used to count to the market conditions.

Speaker #3: Another thing we've seen in competitors is perhaps that I would say that our field of competitors has very widespread performance. So where four in a market, we would typically duke it out between three and four of us.

Søren Krogh Knudsen: Another thing we've seen in competitors is perhaps that I would say that our field of competitors has very widespread performance. So where before in a market we would typically duke it out between three and four of us. Now it's usually the same one, and then some have disappeared. So it has actually limited, I find to some extent, the number of qualified competitors. Some have simply fallen by the wayside. So that's another way of looking at it. Yeah. So competition is like that. When we stick to our segments, none of the small competitors can compete because we're competing for global implementation across multiple countries, so we're up with the other big ones. Typically, a lot of them are bigger than we are.

Speaker #3: Now it's usually the same one. And then some have disappeared. So it has actually limited, I find, to some extent the number of qualified competitors.

Speaker #3: Some have simple fallen by the wayside. So that's another way of looking at it. Yeah. So competition is like that. When we stick to our segments, none of the small competitors can compete.

Speaker #3: Because we're competing for global implementation across multiple countries. So we're up with the other big ones. It's typically a lot of them are bigger than we are.

Søren Krogh Knudsen: Some of them have obviously very large companies, but have perhaps slightly less focus on the segment or something, so we don't feel them as much as we have done in the past.

Speaker #3: And some of them have obviously very large companies, but have perhaps slightly less focus on the segment or something. So we don't feel them as much as we have, I would say.

Speaker #3: Or we have done in the past.

Speaker #1: Thank you. Yeah. There are no further questions. So I'll leave the word to management for a final remark.

Operator: Thank you.

Søren Krogh Knudsen: Yeah.

Operator: There are no further questions, so I'll leave the word to management for a final remark.

Speaker #3: Yeah. Thanks for listening in. Yeah. Thank you very much for listening in. And we hope to see you again as we present the Q3 numbers.

Brian Iversen: Yeah. Thanks for listening in.

Søren Krogh Knudsen: Yeah. Thank you very much for listening in, and we hope to see you again as we present the Q3 numbers. That must be mid-November.

Speaker #3: That must be mid-November. I don't have a specific date with me right now. So we look forward to talking to you again and as always, you are very welcome to reach out to either me or Brian for further discussions.

Brian Iversen: Yeah.

Søren Krogh Knudsen: I do not have my specific date with me right now. We look forward to talking to you again, and as always, you are very welcome to reach out to either me or Brian for further discussions.

Operator: Thank you. We will conclude by that.

Browse all earnings call transcripts

Q2 2026 Columbus AS Earnings Call

Request TrialDemo

Columbus AS

Earnings