Page 1

Constellation Software Inc. Announces Results for the Second Quarter Ended June 30 , 2021 and Declares Quarterly Dividend TORONTO , ONTARIO ( August 5 , 2021 ) -- Constellation Software Inc. ( TSX : CSU ) ( “ Constellation " or the " Company " ) today announced its financial results for the second quarter ended June 30 , 2021 and declared a $ 1.00 per share dividend payable on October 8 , 2021 to all common shareholders of record at close of business on September 17 , 2021. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act ( Canada ) . Please note that all dollar amounts referred to in this press release are in U.S. Dollars unless otherwise stated . The following press release should be read in conjunction with the Company's Unaudited Condensed Consolidated Interim Financial Statements for the three and six months ended June 30 , 2021 and the accompanying notes , our Management Discussion and Analysis for the three and six months ended June 30 , 2021 and with our annual Consolidated Financial Statements , prepared in accordance with International Financial Reporting Standards ( " IFRS " ) and our annual Management's Discussion and Analysis for the year ended December 31 , 2020 , which can be found on SEDAR at www.sedar.com and on the Company's website www.csisoftware.com . Additional information about the Company is also available on SEDAR at www.sedar.com Q2 2021 Headlines : Revenue grew 35 % ( 14 % organic growth , 8 % after adjusting for changes in foreign exchange rates ) to $ 1,249 million compared to $ 922 million in Q2 2020 . Net income attributable to common shareholders increased 7 % to $ 88 million ( $ 4.16 on a diluted per share basis ) from $ 83 million ( $ 3.90 on a diluted per share basis ) in Q2 2020 . A number of acquisitions were completed for aggregate cash consideration of $ 292 million ( which includes acquired cash ) . Deferred payments associated with these acquisitions have an estimated value of $ 36 million resulting in total consideration of $ 328 million . ● ● ● ● ● Cash flows from operations ( " CFO " ) were $ 171 million , a decrease of 28 % , or $ 66 million , compared to $ 237 million for the comparable period in 2020 . Free cash flow available to shareholders¹ ( " FCFA2S " ) decreased $ 46 million to $ 145 million compared to $ 190 million for the same period in 2020 . The Company determined that certain of its subsidiaries qualified for an estimated aggregate amount of $ 8 million of grants from various government authorities , and recognized such amounts as a reduction to expenses in the quarter . The holders of the Topicus Coop Preference Units ( the " Preferred Securities " ) elected to convert their Preferred Securities into Topicus Coop Ordinary Units , which conversion will become effective on February 1 , 2022 . Subsequent to June 30 , 2021 , the Company completed or entered into agreements to acquire a number of businesses for aggregate cash consideration of $ 122 million . Deferred payments associated with these acquisitions have an estimated value of $ 25 million resulting in total consideration of $ 146 million . Total revenue for the quarter ended June 30 , 2021 was $ 1,249 million , an increase of 35 % , or $ 327 million , compared to $ 922 million for the comparable period in 2020. For the first six months of 2021 total revenues were $ 2,425 million , an increase of 29 % , or $ 550 million , compared to $ 1,875 million for the comparable period in 2020 . The increase for both the three and six month periods compared to the same periods in the prior year is primarily attributable to growth from acquisitions as the Company experienced organic growth of 14 % and 10 % respectively , 8 % and 5 % respectively after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business . The Net income attributable to common shareholders of CSI for the quarter ended June 30 , 2021 was $ 88 million compared to net income of $ 83 million for the same period in 2020. On a per share basis this translated into a net income per diluted share of $ 4.16 in the quarter ended June 30 , 2021 compared to net income per diluted share of $ 3.90 for the same period in 2020. For the six months ended June 30 , 2021 , net income attributable to common 1. See Non - IFRS measures .