Colt CZ Group SE

Investor Presentation • Sep 18, 2025

COLT CZ GROUP SE FINANCIAL RESULTS 6M 2025

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 Vice-chairman 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

6M 2025 AT A GLANCE

REVENUES CZK 11,015 m ↑ 13.7% vs 6M 2024 LTM: CZK 24,579 m ADJUSTED EBITDA CZK 2,361 m ↑ 19.2% vs 6M 2024 LTM: CZK 5,210 m

ADJUSTED NET PROFIT CZK 1,002 m ↓ 1.3% vs 6M 2024 LTM: CZK 2,067 m

PPA IMPACT CZK 303 m or CZK 5.3 per share

ADJUSTED EPS ↓ 28.4% vs 6M 2024 CZK 17.8 LTM: CZK 37.4

COMMENTS ON 6M 2025 PERFORMANCE

Ammunition segment retains excellent profitability, growing on the European market, able to offset US commercial market softness.

Firearms - H1 2025 performance slower than expected for CZ and Colt WH, only Colt Canada performed above 2024 YTD.

CZ is doing well on the slower US commercial market (flat y/y even with price increase), but some key MLE project delayed to Q3 and Q4, expected to catch up in Q3 and Q4.

Colt WH - weakest performer of the Group in 2025 - both on the US commercial market (slower introduction of new models), delay in key large MLE contracts (some of them record high, but regulatory process taking longer than expected).

US tariffs in majority passed on the consumer (firearms), to the sales price, FX rates influencing the Revenues/EBITDA (apart of the translation risk offset in the financial income of the Group).

Sellier & Bellot, has signed a five-year strategic partnership agreement for the supply of high-performance propellants with EURENCO. Česká zbrojovka signed Framework Agreement with Ministry of Defence for the years 2025 to 2031. Colt Canada signed a significant contract with the Danish Ministry of Defence Acquisition and Logistics (DALO), for the supply of 26,000 C8 MRR carabines.

REVENUES – EUROPE PLAYS A KEY ROLE

In % of total revenues In % of total revenues

REVENUE BREAKDOWN BY GEOGRAPHY REVENUE BREAKDOWN BY GEOGRAPHY – SEGMENTS

REVENUES AND EBITDA MARGIN – OWN PRODUCTION VS TRADING

CUSTOMER SEGMENTS

HIGHER SEASONALITY AND US COMMERCIAL MARKET SLOWDOWN

186 175 137 115 323 290 6M 2024 6M 2025 -10% In '000 units

BREAKDOWN BY FIREARMS UNITS SOLD

CZ BRAND

COLT BRAND

In '000 units

Short guns Long guns

ADJUSTED NET PROFIT WITHOUT S&B PPA AMORTIZATION EFFECT

NET PROFIT EARNINGS PER SHARE

CAPEX IN LINE WITH 2025 GUIDANCE

CAPITAL EXPENDITURES ¹ CAPEX GEOGRAPHICAL SPLIT

COMMENTS

FY 2025 CAPEX guidance in line with medium-term strategy

Main part of CAPEX 2025 was realized in the Czech Republic in both – R&D and machinery

INDEBTEDNESS

EXPECTED DEBT MATURITY PROFILE

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

COMMENTS

• In June group repaid part of the S&B acquisition loan of EUR 43 m
• In June VSS acquisition price of USD 62m paid
• Cash generative business of both businesses will allow leverage reduction going forward, with expected acquisition
• SNC acquisition pro-forma impact on slide 16

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

SYNTHESIA ACQUISITION TRULY TRANSFORMATIVE FOR THE GROUP

The transaction values 100% of SNC at CZK 20.6bn and 100% of energy business, at CZK 1.4bn at Enterprise Value

Transaction multiple at 8.2x EV/EBITDA

Current Colt CZ trading multiple 9-10x

Producers of military propellants and explosives (Chemring, Rheinmetall, BAE) trade at ~ 15x-35x EV/EBITDA

The extension of our core business into a new segment should allow for multiple expansion

Colt CZ signed SPA for acquisition of 51% of SNC for CZK 10.5bn Enterprise Value

Cash consideration of CZK 5.5bn

Expected stock consideration of around CZK 3.7bn based on the following assumptions at closing:

• Net Debt EUR 107m
• No working capital adjustment
• 180 trading days VWAP (as of 15/9/2025 CZK 710) to be used also for PUT options
• ~ 5m new shares, Kaprain to become 3rd largest shareholder at around 8% of capital

51% of Energy business will be acquired in 1HY 2026

Expected stock consideration CZK 714m based on the following assumptions at closing:

• Net Debt = 0
• No working capital adjustment
• 180 trading days VWAP (as of 15/9/2025 CZK 710)
• ~ 1m new shares, stake of Kaprain increases to around 9%

PUT/CALL MECHANISM FOR THE REMAINING 49% STAKE

PUT option of KAPRAIN for remaining 49% of SNC for CZK 10.1bn Enterprise Value

Exercise period during 2 years starting 24 months after closing Cash consideration CZK 3.5bn Expected stock consideration CZK 5.3bn based on the following assumptions at the second closing:

• Net Debt EUR 107m
• ~ 6m new shares

CALL option of COLT CZ GROUP for remaining 49% of SNC for CZK 10.1bn Enterprise Value

Exercise period during 2 years starting 48 months after closing All cash consideration CZK 8.8bn based on the following assumptions at the second closing:

Net Debt EUR 107m

PUT/CALL option for remaining 49% of Energy

Exercise period same as SNC Expected stock consideration at CZK 686m adjusted for actual net debt

NCS PRO-FORMA IMPACT 2025

EXPECTED TIMING

• Signing 8/2025
• NCS Closing 11/2025 Q1 2026
• Carve-out of energy business into a separate company
• Acquisition of 51% in energy business by H1 2026
• Acquisition of remaining 49% in SNC and energy business, 2028-2032

16

PRIORITIES AND GUIDANCE 2025

REVENUES

CZK 25 bn plus/minus 10% EBITDA CZK 5.5 bn plus/minus 10%

Net interest costs CZK 599 mio

Indicative split per quarters (updated)

CZK bn	Q 1	Q 2	Q 3	Q 4	FY 2025
Revenues	5.5	5.5	5.0	9.0	25
Adj. EBITDA	1.2	1.1	1.2	2.0	5.5

Notes: Guidance is based on the management expectations as of the date of presentation SNC acquisition not included

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 weighed towards Q3 and Q4 of 2025)
• FX volatility of EUR and USD versus CZK
• Potential impact of US tariffs

OPPORTUNITIES

• Some of the potential contracts will be historically large for the Group if finally signed, and deliveries start 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.
• Timely finalization of SNC closing still in 2025

THANK YOU FOR YOUR ATTENTION

APPENDIX

ADJUSTED EBITDA RECONCILIATION

In CZK '000	6M 2025	6M 2024
Operating profit	1 587 284	898 774
Depreciation and amortization	770 968	560 821
EBITDA	2 358 252	1 459 595
ESOP related costs	30 945	382 185
M&A costs	15 218	962
Legacy costs	5 389	-
S&B inventory step up	-	110 000
S&B commodity hedging	(48 734)	28 016
Adjusted EBITDA	2 361 069	1 980 758

ADJUSTED NET PROFIT RECONCILIATION

In CZK '000	6M 2025	6M 2024
Earnings before tax	1 195 680	794 788
Tax expenses	(276 414)	(185 170)
Net income	919 266	609 618
ESOP related costs	30 945	382 185
M&A costs	15 218	962
Legacy cost	5 389	-
S&B inventory step up	-	110 000
Bank fee – acquisition loan S&B	41 761	30 634
Expenses of IRS cancellation related to early repayment of loan	7 955	-
One-off expenses related to the bond issue	6 402	4 838
Adjusted earnings before tax (Adj. EBT)	1 303 350	1 323 407
Effective tax rate on Adj. EBT (2025 ~23.1%; 2024 ~23.3%)	(301 305)	(308 328)
Adjusted Net Income	1 002 045	1 015 079

NET INTEREST COSTS GUIDANCE

In CZK '000 000;	G 2025
Interest expenses	852
Hedging impact	(112)
Deposit revenues	(141)
Net interest costs	599
Effective interest rate	3,64%

ASSUMPTIONS

Stable FX rate EUR/CZK

• No extraordinary debt repayment
• Stable market interest rates
• No additional debt financing included

CONSOLIDATED PROFIT AND LOSS STATEMENT

In '000 CZK	30 Jun 2025	30 Jun 2024
Revenues from the sale of own products, goods and services	11 014 802	9 690 015
Other operating income	850 778	217 161
Change in inventories developed internally	(5 570 674)	(5 453 456)
Own work capitalized	(2 502 828)	(2 226 294)
Raw materials and consumables used	(770 968)	(560 821)
Services	(1 331 255)	(1 098 262)
Personnel costs	55 243	67 122
Depreciation and amortization	143 985	406 861
Other operating expenses	(259 231)	(164 827)
Allowances	(42 568)	21 275
Operating profit	1 587 284	898 774
Interest income	281 015	418 014
Interest expense	(556 672)	(558 422)
Other financial income	3 233	85 496
Other financial expenses	(373 343)	(63 837)
Gains or losses from derivative transactions	250 323	13 854
Share in the profit of associates after tax	3 840	909
Profit before tax	1 195 680	794 788
Income tax	(276 414)	(185 170)
Profit for the period	919 266	609 618
Items that may be subsequently reclassified to the statement of profit or loss
Cash flow hedges – remeasurement of effective portion of hedging instruments	382 339	(179 440)
Foreign currency translation of foreign operations	(306 975)	25 528
Other comprehensive income	75 364	(153 912)
Comprehensive income for the period	994 630	455 706
Profit for the period attributable to:
Owner of the parent company	919 266	609 618
Comprehensive income for the period attributable to:
Owner of the parent company	994 630	455 706
Net earnings per share attributable to the owner of the parent company (CZK per share)
Basic	16	15
Diluted	16	15

CONSOLIDATED BALANCE SHEET 1/2

In CZK '000	30 Jun 2025	31 Dec 2024
ASSETS
Non-current assets
Intangible assets	9 797 868	10 403 416
Goodwill	9 025 018	8 489 707
Property, plant and equipment	9 779 922	9 582 545
Equity-accounted securities and investments	47 943	44 102
Financial derivatives	844 755	413 372
Trade and other receivables	11 766	20 021
Other receivables	2 132	2 593
Deferred tax assets	72 269	75 589
Total non-current assets	29 581 673	29 031 345
Current assets
Inventories	8 809 146	7 456 512
Trade and other receivables	2 066 369	2 829 759
Provided loans	19 180	20 017
Other financial assets	11 134	12 531
Financial derivatives	465 245	127 174
Other receivables	440 095	555 882
Tax receivables	154 385	81 210
Cash and cash equivalents	3 452 305	5 917 768
Total current assets	15 417 859	17 000 853
Total assets	44 999 532	46 032 198

CONSOLIDATED BALANCE SHEET 2/2

In CZK '000	30 Jun 2025	31 Dec 2024
EQUITY AND LIABILITIES
Capital and reserves
Share capital	5 646	5 646
Share premium	13 477 795	13 477 795
Capital funds	1 641 512	1 641 512
Cash flow hedge reserve	178 845	(203 494)
Foreign exchange translation reserve	(375 112)	(68 137)
Accumulated profits	5 276 568	5 175 107
Equity attributable to the owner of the Company	20 205 254	20 028 429
Non-controlling interest	-	-
Total equity	20 205 254	20 028 429
Non-current liabilities
Bonds, bank loans and borrowings	14 494 844	16 336 227
Financial derivatives	217 510	532 473
Lease liabilities	53 390	58 922
Trade and other payables	68 726	46 802
Other payables	7 289	10 387
Provisions	101 732	101 095
Deferred tax liability	2 602 536	2 561 948
Employee benefit liabilities	204 085	234 725
Total non-current liabilities	17 750 112	19 882 579
Current liabilities
Bonds, bank loans and borrowings	1 499 060	1 474 910
Financial derivatives	259 778	394 262
Lease liabilities	21 457	22 267
Trade and other payables	2 394 545	1 573 335
Other payables	2 654 952	2 333 203
Provisions	79 191	57 870
Tax liabilities	117 329	248 236
Employee benefit liabilities	17 854	17 107
Total current liabilities	7 044 166	6 121 190
Total liabilities	24 794 278	26 003 769
Total equity and liabilities	44 999 532	46 032 198

CONSOLIDATED CASH FLOW STATEMENT

In '000 CZK	30 Jun 2025	30 Jun 2024
Cash flows from principal economic activity (operating activity)
Profit from ordinary activity before tax	1 195 680	794 788
Depreciation/amortization of non-current assets	770 968	560 821
Change in allowances and provisions	69 504	24 940
Gain/Loss on sale of fixed assets	(1 159)	(1 392)
Interest expense and interest income	275 657	140 408
Share in the profit of associates	(3 841)	(909)
Unrealized foreign exchange gain and losses	830 216	(133 551)
Other financial assets – remeasurement	-	(113 402)
Cash flow hedging – remeasurement of the effective portion of hedging instruments	382 339	(179 440)
Share-based payments	29 140	355 013
Adjustments for other non-cash transactions	57 277	31 380
Net operation cash flows before changes in working capital	3 605 781	1 478 656
Change in working capital	(1 609 371)	(430 769)
Change in receivables and deferrals	(44 842)	(189 676)
Change in liabilities and accruals	149 946	(161 031)
Change in inventories	(1 714 475)	(80 062)
Cash flow from operating activities	1 996 410	1 047 887
Paid interest	(704 810)	(525 585)
Interest received	429 443	429 610
Income tax paid for ordinary activity	(587 099)	(521 795)
Net cash flow from operating activities	1 133 944	430 117
Cash flows from investing activities
Acquisition of non-current assets	(361 963)	(382 502)
Proceeds from the sale of non-current assets	1 159	1 392
Acquisition of equity-accounted securities and investments	-	(3 777)
Acquisition of subsidiaries - opening balance	(1 341 795)	(5 231 350)
Acwuidizion of subsidiaries - cash and cash equivalents	8 460	443 521
Employee benefit liabilities	-	-
Acquisition of other financial assets	-	-
Proceeds from sale of other financial assets	-	1 021 982
Provided loans	-	(18 979)
Net cash flow from investing activities	(1 694 139)	(4 169 713)
Cash flows from financing activities
Proceeds from issue of bonds	-	276 000
Proceeds from loans	2 378	10 794 456
Loan repayment	(1 726 254)	(5 701 743)
Leases repayment	(13 840)	(12 966)
Net cash flow from financing activities	(1 737 716)	5 355 747
Net change in cash and cash equivalents	(2 297 911)	1 616 151
Opening balance of cash and cash equivalents	5 917 768	3 328 684
Effect of exchange rate on cash and cash equivalents	(167 552)	53 002
Closing balance of cash and cash equivalents	3 452 305	4 997 837

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

COLT CZ GROUP STRUCTURE

29

THANK YOU

Colt CZ Group SE

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