Colt CZ Group SE

Investor Presentation • Mar 27, 2025

COLT CZ GROUP SE PRELIMINARY FINANCIAL RESULTS 2024

INVESTOR PRESENTATION

LEGAL DISCLAIMER

IMPORTANT – YOU MUST READ THE FOLLOWING BEFORE CONTINUING

• This presentation (the "Presentation") has been prepared by Colt CZ Group SE, with its registered office at náměstí Republiky 2090/3a, Nové Město, 110 00 Praha 1, Identification Number 291 51 961, registered in the Commercial Register maintained by the Municipal Court in Prague, Section H, Insert 962 (the "Colt CZ"). By attending the meeting where this Presentation is made or by reading the Presentation document, you agree to be bound by the following terms and conditions.
• The Presentation has been prepared with due care. However, certain inconsistencies or omissions might have appeared herein. Therefore, it is recommended that any person intending to undertake any investment decision on any security issued by Colt CZ or any member of its group (the "Group") shall only rely on information released as an official communication by Colt CZ in accordance with the legal and regulatory provisions that are binding for Colt CZ.
• Past performance can not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. Colt CZ does not (i) warrant that the assumptions underlying the forward-looking statements in this Presentation are free from errors, (ii) accept any responsibility for the future accuracy of the opinions expressed in this Presentation, or (iii) undertake any obligation to update the statements in this Presentation to reflect subsequent events. The forward-looking statements in this Presentation are made only as of the date hereof. Neither delivery of this Presentation nor any further discussions between Colt CZ and you shall, under any circumstances, result in any implication that there has been no change in Colt CZ affairs since such date.
• Forward-looking statements, including statements relating to expectations regarding future financial results, give no guarantee or assurance that such results will be achieved. Expectations of the Colt CZ management are based on present knowledge, awareness and/or views of the management members and are dependent on many factors, which may cause the actual results that Colt CZ will achieve may differ materially from those discussed in this Presentation. Many such factors are beyond the present knowledge, awareness and/or control of Colt CZ, or cannot be predicted. None of the Group, Colt CZ or its directors, managers, advisers or representatives of such persons makes any representation or warranty, expressed or implied, as to (i) the fairness, accuracy, completeness or correctness of this Presentation, (ii) the sufficiency of this Presentation for your purposes. or (iii) the appropriateness of this Presentation for any purpose other than that for which it was intended. Nothing contained herein is or should be relied upon as a promise or representation, whether as to the past or the future.
• This Presentation should not be construed as legal, regulatory, tax, accounting, investment or other advice. Nothing contained herein shall constitute any representation or warranty as to the future performance of any security, credit, currency, rate or other market or economic measure. No reliance may be placed for any purpose whatsoever on this Presentation.
• This Presentation was prepared for information purposes only and is neither a purchase nor sale offer nor a solicitation of a n offer to purchase or sell any securities or financial instruments or an invitation to participate in any commercial venture. This Presentation is neither an offer nor an invitation to purchase or subscribe for any securities in any jurisdiction, and no statements contained herein may serve as a basis for any agreement, commitment or investment decision, or may be relied upon in connection with any agreement, commitment or investment decision.

AGENDA AND TODAY'S PRESENTERS

AGENDA PRESENTERS

JAN DRAHOTA Chairman of the Board of Directors Colt CZ Group SE

RADEK MUSIL Vicechairman of the Board of Directors CEO of Colt CZ Group SE

JAN ZAJÍC Member of the Board of Directors CEO of Česká zbrojovka a.s.

JANA MATOUŠKOVÁ

Head of Group Finance Colt CZ Group SE

2024 PRELIMINARY UNAUDITED RESULTS

REVENUES

CZK 22,376 m

↑ 50.6% vs 2023

CZK 4,599 m ↑ 50.9% vs 2023

ADJUSTED EBITDA

ADJUSTED NET PROFIT

CZK 1,933 m

↓ 5.7% vs 2023

ADJUSTED EPS CZK 41 ↓ 29.8% vs 2023

PRELIMINARY RESULTS 2024 – COMMENTS

Record organic growth of revenues (+17.6%), accompanied with a flat adj. EBITDA profitability.

The acquisition of S&B had a significant positive effect on both revenue growth and adjusted EBITDA, supported by the company's strong operating profitability.

Double-digit revenue growth achieved on the US commercial market (+26.8%), below-expected profitability performance of the US business due to relatively unfavorable product mix, unsuccessful entry of Colt to the bolt action rifle market (bad market timing resulting in inventory write off) and insufficient cost control. Profitability in North America further impacted by new projects/investments for future (Mk 47 etc.).

Net profit down due to higher interest costs. Post ABB net leverage down to 2.26x.

REVENUES – SIGNIFICANT SHIFT DUE TO S&B CONSOLIDATION

In % of total revenues In % of total revenues

FY 2023 FY 2024

REVENUE BREAKDOWN BY GEOGRAPHY REVENUE BREAKDOWN BY GEOGRAPHY – SEGMENTS

REVENUES AND EBITDA MARGIN - OWN PRODUCTION VS TRADING

FY 2024 CUSTOMER SEGMENTS SPLIT 50:50

MLE share grew from 10% to 50% since IPO

FY 2024 RECORD YEAR IN GROUP'S HISTORY

In '000 units In CZK m

BREAKDOWN BY FIREARMS UNITS SOLD QUARTERLY REVENUES & ADJ . EBITDA SEASONALITY

FY 2024 NET PROFIT AFFECTED BY FINANCIAL RESULT AND ONE-OFFS

ADJUSTED VS. REPORTED NET PROFIT

ADJUSTED EARNINGS PER SHARE ¹

COMMENTS

Full breakdown of adjustments available on page 21

CAPEX IN LINE WITH 2024 GUIDANCE

CAPITAL EXPENDITURES ¹

• COMMENTS
• FY 2024 CAPEX in line with FY CAPEX guidance (i.e. up to 5% of revenues)
• Major investments in 2024 in production lines in both segments, mainly in capacity increase, innovation, modernization and automatization of manufacturing processes
• FY 2025 CAPEX guidance in line with medium-term strategy

Notes: Financial results are unaudited

1 – Corresponds to the paid acquisition of non-current assets

2 – Guidance is based on the management expectations as of the date of presentation

3 – CZK 148 m of CAPEX not included in 2024 figures as payment was postponed to 2025

NET LEVERAGE DOWN POST ABB TRANSACTION

EXPECTED DEBT MATURITY PROFILE

(INC. ACQUISITION FINANCING) NET FINANCIAL DEBT ¹ & NET LEVERAGE RATIO ²

COMMENTS

• Net leverage significantly below 3x as communicated by the Company, creating room for potential M&A
• In December company repaid part for the S&B acquisition loan in the amount of EUR 94 m
• Cash generative business of both businesses will allow leverage reduction going forward, with expected acquisition loan repayment by 2029
• Preference of bonds to loans

Notes: 1 – Net financial debt is defined as long-term and short-term bonds, bank loans and borrowings and finance lease liabilities (non-current and current), less cash and cash equivalents, less other current financial assets (marketable securities) 2 – Net leverage ratio is defined as the ratio of net financial debt at the end of the period to LTM adjusted EBITDA, formula based on the loan legal documentation

ACQUISITION OF SELLIER & BELLOT – D&A IMPACT

COMMENTS

• Increase in Amortization due to Purchase Price Allocation of S&B acquisition significantly affecting Net profit/EPS
• Significant impact on net profit and EPS in the next 3 years, approximately CZK 600 m impact on the net profit per year

PRIORITIES AND GUIDANCE 2025

REVENUES

CZK 25 bn ↑ 12% yoy plus/minus 7%

EBITDA

CZK 5.5 bn ↑ 20% yoy plus/minus 7%

Net interest costs CZK 631 mio

Indicative split per quarters

CZK b n	Q 1	Q 2	Q 3	Q 4	FY 2025
Revenues	5.2	6.3	6	7.5	25
Adj. EBITDA	1.0	1.5	1.3	1.7	5.5

Notes: Guidance is based on the management expectations as of the date of presentation

PRIORITIES AND GUIDANCE 2025

The Board of Directors will propose a cash dividend of CZK 847 million (CZK 15 per share) for 2024, representing 44% of the adjusted net profit. Separately, the Board also plans to allocate CZK 847 million for a share buyback program. This buyback is intended to enhance long-term shareholder value by supporting EPS growth and potentially increasing the stock's free float.

We see significant, "once in a generation" business opportunities in the M&LE segment globally, NATO and EU countries remain priority, but selected Asian countries could have significant importance as well. Key will be to finalise/win and to execute on time.

We intend to continue support of Ukraine via 2 key projects – CZ BREN 2 ToT, S&B ammunition technology provision.

The US commercial market to develop in line with the overall economy and consumer behavior, no political impulses expected due to the very firm pro gun stance of the current administration and Congress. Introduction of new products is the key for success. Strong pipeline aligned for both CZ and Colt.

Disciplined approach to costs overall, but a special emphasis on the North America business, focus on the right insourcing and realization of operational efficiencies.

Are there segments which will become significant due to the changing landscape and where Colt CZ Group should be present? (larger/new calibers - both ammo and firearms, UAV etc.?).

RISKS AND OPPORTUNITIES FOR GUIDANCE

RISKS

• Further deterioration of the US commercial market, global economic outlook
• Timing to market of key products in the pipeline
• Several significant M&LE projects still to be finalized to be able to start potential deliveries (strongly weighted towards Q3 and Q4 of 2025)
• FX development (only EBITDA impact as company well hedged)

OPPORTUNITIES

• Some of the potential contracts would be historically large for the Group if finally signed, and deliveries started in 2025.
• Impact of trading activities of non-produced products should be more significant in terms of profitability in 2025, but still uncertainty on timing/size.

THANK YOU FOR YOUR ATTENTION

APPENDIX

FY 2024 GUIDANCE VS ACTUALS

ACTUAL

ADJUSTED EBITDA RECONCILIATION

In CZK '000	FY 2024	FY 2023
Operating profit	2,001,018	1,861,966
Depreciation and amortization	1,478,824	801,721
EBITDA	3,479,842	2,663,687
ESOP related costs	418,730	313,455
M&A costs1	14,960	71,237
S&B inventory step up	513,596	-
S&B commodity hedging	56,334	-
Wasted project – Bolt action rifles	69,624	-
Wasted project – Foundry	21,642	-
Legacy costs	24,136	-
Adjusted EBITDA	4,598,864	3,048,379

ADJUSTED NET PROFIT RECONCILIATION

In CZK '000	FY 2024	FY 2023
Earnings before tax	1,379,838	2,509,562
Tax expenses	(335,263)	(467,024)
Net income	1,044,575	2,042,538
Earn-out revaluation		-
ESOP related costs	418,730	313,455
M&A costs1	14,960	71,237
Wasted project – Bolt action rifles	69,624	-
Wasted project – Foundry	21,642	-
Legacy costs	24,136	-
S&B inventory step up	513,596	-
Negative goodwill	-	(384,482)
Bank fee – acquisition loan S&B	100,864	-
One-off expenses related to the bond issue	10,289	8,641
Adjusted earnings before tax (Adj. EBT)	2,553,679	2,518,413
Effective tax rate on Adj. EBT (2024 ~24.3%; 2023 ~18.6%)	(620,474)	(468,671)
Adjusted Net Income	1,933,205	2,049,742

NET INTEREST COSTS GUIDANCE

In CZK '000 000;	G 2025
Interest expenses	898
Hedging impact	-124
Deposit revenues	-143
Net interest costs	631
Effective interest rate	3.7%

ASSUMPTIONS

Stable FX rate EUR/CZK

• No extraordinary debt repayment
• Stable market interest rates

CONSOLIDATED PROFIT AND LOSS STATEMENT

In '000 CZK	31 Dec 2024	31 Dec 2023
Revenues from the sale of own products, goods and services	22,375,792	14,855,581
Other operating income	159,638	89,789
Change in inventories developed internally	(629,980)	887,593
Own work capitalized	338,746	172,976
Raw materials and consumables used	(11,335,766)	(8,065,419)
Services	(2,487,683)	(1,959,627)
Personnel costs	(4,489,688)	(3,083,096)
Depreciation and amortization	(1,478,824)	(801,721)
Other operating expenses	(331,521)	(210,225)
Allowances	(119,696)	(23,885)
Operating profit	2,001,018	1,861,966
Interest income	784,854	756,541
Interest expense	(1,307,949)	(894,604)
Other financial income	113,159	251,596
Other financial expenses	(202,902)	(72,120)
Gains or losses from derivative transactions	(8,872)	221,019
Bargain purchase gain	-	384,482
Share in the profit of associates after tax	530	682
Profit before tax	1,379,838	2,509,562
Income tax	(335,263)	(467,024)
Profit for the period	1,044,575	2,042,538
Items that may be subsequently reclassified to the statement of profit or loss
Cash flow hedges – remeasurement of effective portion of hedging instruments	(803,310)	(468,398)
Foreign currency translation of foreign operations	74,551	183,745
Other comprehensive income	(728,759)	(284,653)
Comprehensive income for the period	315,816	1,757,885
Profit for the period attributable to:
Owner of the parent company	1,044,575	2,042,538
Comprehensive income for the period attributable to:
Owner of the parent company	315,816	1,757,885
Net earnings per share attributable to the owner of the parent company (CZK per share)
Basic	22	58
Diluted	22	58

CONSOLIDATED BALANCE SHEET 1/2

In CZK '000	31 Dec 2024	31 Dec 2023
ASSETS
Non-current assets
Intangible assets	10,403,416	3,413,881
Goodwill	8,489,707	2,547,480
Property, plant and equipment	9,582,545	4,281,449
Advance payment for financial investment	-	2,690,040
Equity-accounted securities and investments	44,102	40,795
Financial derivatives	413,372	1,013,168
Trade and other receivables	20,021	61,891
Other receivables	2,593	2,556
Deferred tax assets	75,589	21,245
Total non-current assets	29,031,345	14,072,505
Current assets
Inventories	7,456,512	5,298,077
Trade and other receivables	2,829,759	1,774,947
Provided loans	20,017	-
Other financial assets	12,531	908,580
Financial derivatives	127,174	149,047
Other receivables	555,882	351,165
Tax receivables	81,210	93,751
Cash and cash equivalents	5,917,768	3,328,684
Total current assets	17,000,853	11,904,251
Total assets	46,032,198	25,976,756

CONSOLIDATED BALANCE SHEET 2/2

In CZK '000	31 Dec 2024	31 Dec 2023
EQUITY AND LIABILITIES
Capital and reserves
Share capital	5,646	3,516
Share premium	13,477,795	1,942,818
Capital funds	1,641,512	1,641,512
Cash flow hedge reserve	(203,494)	599,816
Foreign exchange translation reserve	(68,137)	(142,688)
Accumulated profits	5,175,107	5,229,872
Equity attributable to the owner of the Company	20,028,429	9,274,846
Non-controlling interest	-	-
Total equity	20,028,429	9,274,846
Non-current liabilities
Bonds, bank loans and borrowings	16,336,227	9,040,540
Financial derivatives	532,473	244,169
Lease liabilities	58,922	62,052
Trade and other payables	46,802	42,022
Other payables	10,387	14,569
Provisions	101,095	76,188
Deferred tax liability	2,561,948	722,783
Employee benefit liabilities	234,725	255,721
Total non-current liabilities	19,8882,579	10,458,044
Current liabilities
Bonds, bank loans and borrowings	1,474,910	2,573,744
Financial derivatives	394,262	11,038
Lease liabilities	22,267	25,619
Other financial liabilities	-	44,580
Trade and other payables	1,573,335	1,746,796
Other payables	2,333,203	1,655,094
Provisions	57,870	30,084
Tax liabilities	248,236	142,084
Employee benefit liabilities	17,107	14,827
Total current liabilities	6,121,190	6,243,866
Total liabilities	26,003,769	16,701,910
Total equity and liabilities	46,032,198	25,976,756

CONSOLIDATED CASH FLOW STATEMENT

In '000 CZK	31 Dec 2024	31 Dec 2023
Cash flows from principal economic activity (operating activity)
Profit from ordinary activity before tax	1,379,838	2,509,562
Depreciation/amortization of non-current assets	1,478,824	801,721
Change in allowances and provisions	170,879	22,276
Gain/Loss on sale of fixed assets	(1,990)	(2,659)
Interest expense and interest income	523,095	138,063
Share in the profit of associates	(530)	(682)
Unrealized foreign exchange gain and losses	(343,250)	14,988
Partial earnout settlement	-	406,915
Other financial assets – remeasurement	(113,402)	(160,692)
Cash flow hedging – remeasurement of the effective portion of hedging instruments	(1,001,100)	(468,398)
Bargain purchase gain	-	(384,482)
Share-based payments	411,729	293,068
Adjustments for other non-cash transactions	62,197	52,921
Net operation cash flows before changes in working capital	2,566,290	3,222,601
Change in working capital	1,403,132	-926,498
Change in receivables and deferrals	682,840	(162,505)
Change in liabilities and accruals	216,589	244,040
Change in inventories	503,703	(1,008,033)
Cash flow from operating activities	3,969,422	2,296,103
Paid interest	(1,327,694)	(880,196)
Interest received	826,407	756,881
Income tax paid for ordinary activity	(797,443)	(759,473)
Net cash flow from operating activities	2,670,692	1,413,315
Cash flows from investing activities
Acquisition of non-current assets	(920,565)	(924,156)
Proceeds from the sale of non-current assets	1,990	2,964
Acquisition of subsidiaries – opening balance	(5,231,350)	(723,902)
Acquisition of subsidiaries – cash and cash equivalents	443,521	150,863
Acquisition of equity-accounted securities and investments	(3,776)	(1,212)
Advance paid for financial investment	-	(2,690,040)
Employee benefit liabilities	(54,240)	(27,014)
Acquisition of other financial assets	(12,531)	-
Proceeds from sale of other financial assets	1,021,982	-
Provided loans	(18,889)	7,700
Net cash flow from investing activities	(4,773,858)	(4,204,797)
Cash flows from financing activities
Proceeds from bonds	588,000	1,917,756
Proceeds from share	2,242,673	-
Dividends paid to owners	(260,445)	(864,393)
Proceeds from loans	7,382,973	2,295,087
Loan repayment	(5,324,774)	(22,333)
Leases repayment	(25,650)	(32,762)
Net cash flow from financing activities	4,602,777	3,293,353
Net change in cash and cash equivalents	2,499,611	501,871
Opening balance of cash and cash equivalents	3,328,684	2,825,781
Effect of exchange rate on cash and cash equivalents	89,473	1,032
Closing balance of cash and cash equivalents	5,917,768	3,328,684

COLT CZ GROUP STRUCTURE AS OF 31/12/2024

Holding companies No asset companies

Notes: Group structure as of 31/12/2024

THANK YOU

Colt CZ Group SE

náměstí Republiky 2090/3a 110 00 Prague 1, Czech Republic www.coltczgroup.com info@coltczgroup.com