Colt Cz Group Se · PSECZ:COLT

Colt Cz — CZG – Česká zbrojovka Group — H1 2021 Earnings Presentation

20 slides from Colt Cz's earnings presentation, September 2021

  1. Slide 1: CZG – Česká zbrojovka Group SE Financial Highlights 6M 2021

    CZG – ČESKÁ ZBROJOVKA GROUP SE FINANCIAL HIGHLIGHTS 6M 2021 September 2021 INVESTOR PRESENTATION

  2. Slide 2: Legal disclaimer

    Legal disclaimer IMPORTANT - YOU MUST READ THE FOLLOWING BEFORE CONTINUING • This presentation (the “Presentation”) has been prepared by CZG - Česká zbrojovka Group SE, with its registered office at Opletalova 1284/37, Nové Město, 110 00 Praha 1, Identification Number 291 51 961, registered in the C

  3. Slide 3: Agenda and today's presenters

    Agenda and today‘s presenters 1 PRESENTERS JAN DRAHOTA DENNIS VEILLEUX President & Chairman of President of the Colt & 6M 2021 AT A GLANCE the Board of Directors of Member of the Board of CZG Directors of CZG 2 FINANCIAL HIGHLIGHTS Jan is minority shareholder in CZG With the Group since 2014 Dennis

  4. Slide 4: CZG closer to achieve 1B EUR 2025 revenue target

    1 CZG closer to achive 1B EUR 2025 revenue target Section: 6M 2021 at a glance Revenues Adjusted EBITDA1;2 Net profit Colt acquisition 4.7B CZK 1.2B CZK 588M CZK Closed on +40.6% yoy +38.5% yoy +53.9% yoy 21 May 2021 Ongoing 6.8B CZK 1.5B CZK post-merge integration Non-IFRS pro forma Legend: CZG + C

  5. Slide 5: Revenues driven by further expansion on US market

    1 Revenues driven by further expansion on US market Section: 6M 2021 at a glance Breakdown by units sold Comments Units % change vs 6M 2020 Total units sold increased by 33.3% to 304 thousands in 6M 2021, compared to 228 thousands units sold in 6M 2020 Short guns 182,845 +53.8% Geographical revenue

  6. Slide 6: Full year guidance confirmed

    2 Revenue Full year guidance confirmed Section: Financial highlights Operating profit CZKm CZKm Pro forma 1400 20.1% 12,430 – 12,730 15.1% 20.0% Guidance 1200 10,340 – 10,640 10.0% 1000 +37.9% 932 0.0% 800 220 +5.4% -10.0% 676 4,729 712 600 +40.6% -20.0% 3,363 400 -30.0% 200 -40.0% 0 -50.0% 6M 2020

  7. Slide 7: Adjusted EBITDA rose by +38% yoy

    2 EBITDA1 Adjusted EBITDA3 rose by +38% yoy Section: Financial highlights Net profit CZKm CZKm 1000 880 25.8% 25.5% +130.3% 3,000 30.0% 20.2% 800 292 Pro forma 20.0% 600 +53.9% 2,430 – 2,630 588 2,500 400 382 10.0% Guidance 1,990 – 2,190 200 0.0% 2,000 0 -10.0% 6M 2020 6M 2021 Colt acquisition relat

  8. Slide 8: CAPEX for 6M 2021 consistent with full year guidance

    2 CAPEX for 6M 2021 consistent with full year guidance Section: Financial highlights Operating cash flow Capital expenditures CZKm CZKm 2500 700 80.0% 124.4% 150.0% 117.5% 600 Guidance1 2000 7.2% 4.6% 4.8% 5.6% 5.0 – 7.0 % 83.4% 100.0% 1,838 500 40.2% 37.7% 50.0% 1500 1,414 386 400 0.0% 331 -110.0%

  9. Slide 9: CZG to keep conservative leverage profile

    2 CZG to keep conservative leverage profile Section: Financial highlights Debt structure Debt maturity profile CZKm 8000 60 CZKm 7000 6000 Bank loans & lease payables 5,000 5000 5,000 4000 Bonds (related to Colt 3000 57 37 20 acquision financing) 2,250 2000 Bonds 1000 2,250 2,250 2,250 2,250 0 0 0 0

  10. Slide 10: Since the IPO, CZG stock price outperformed its peers

    2 Since the IPO, CZG stock price outperformed its peers Section: Financial highlights CZG stock performance in period of 01.09.2020 – 27.09.2021 % change 120% 100% 80% +74.5% 60% +53.9% 40% +35.5% 20% +21.5% 0% -20% October 20 November December January 21 February 21 March 21 April 21 May 21 June 21

  11. Slide 11: CZG acquired Colt, US legendary fire arm producer

    3 CZG acquired Colt, US legendary fire arm producer Section: Colt acquisition COLT World renowned brand with a storied 185 year history, CANADA founded in 1836 by Colonel Samuel Colt COLT DEFENCE Emerged from Chapter 11* in 2016, restructured, focused on core competencies, reached USD ~50M in EBITDA

  12. Slide 12: Transaction rationale fully in line with the CZG strategy

    3 Transaction rationale fully in line with the CZG strategy Section: Colt acquisition COLT GENERAL OVERVIEW Colt offers a broad portfolio of high-quality rifles, carbines, pistols and revolvers and its end customers encompass every major segment of the global firearms market Company is based in West

  13. Slide 13: Time for your questions

    3 Time for your questions Section: Q&A THANK YOU FOR YOUR ATTENTION

  14. Slide 14: Appendix – EBITDA reconciliation

    4 Appendix – EBITDA reconsoliation Unaudited consolidated financial results CZK '000 / % 6M 2021 6M 2020 change Net income 587,915 381,963 +53.9% Tax expenses (161,079) (91,609) +75.8% Financial income (expense), net 36,789 (202,204) - Operating profit (EBIT) 712,205 675,776 +5.4% Depreciation and a

  15. Slide 15: Appendix – Profit and loss statement

    4 Appendix – Profit and loss statement Unaudited consolidated Profit & loss statement CZK '000 / % 6M 2021 6M 2020 change Revenues from the sale of own products, goods and services 4,728,737 3,363,399 +40.6% Other operating income 26,376 43,632 (39.5%) Changes in inventories of finished goods and wo

  16. Slide 16: Appendix – Balance sheet 1/2

    4 Appendix – Balance sheet 1/2 Unaudited consolidated Balance sheet – Assets CZK '000 / % 6M 2021 6M 2020 Non-current assets Property, plant and equipment 2,624,696 2,021,572 Intangible assets 3,759,120 797,295 Long-term receivables 79,995 295,532 Equity-accounted securities and investments 118,315

  17. Slide 17: Appendix – Balance sheet 2/2

    4 Appendix – Balance sheet 2/2 Unaudited consolidated Balance sheet – Equity and liabilities CZK '000 / % 6M 2021 6M 2020 Equity Share capital 3,374 2,984 Capital funds 2,889,575 1,478,644 Accumulated profits 2,330,578 1,744,895 Equity attributable to the shareholder of the Company 5,223,527 3,226,5

  18. Slide 18: Appendix – Cash flow statement

    4 Appendix – Cash flow statement Unaudited consolidated Cash flow statement – simplified1 CZK '000 6M 2021 6M 2020 Cash flows from principal economic activity (operating activity) Profit from ordinary activity before tax 741,203 468,206 Depreciation/amortization of non-current assets 271,933 193,452

  19. Slide 19: Appendix – Company structure 1

    4 Appendix – Company structure1 Česká zbrojovka Partners SE EHC-4M, SE 100% Free float Czech Republic Czech Republic 81.2% 18.8% 100% 100% CZG – Česká zbrojovka Group SE CZ-US 4M SYSTEMS a.s. (“CZG”) Holdings Inc. Czech Republic Czech Republic USA 100% 99.32% 100% 100% 100% 100% 100% CZG-Česká zbroj

  20. Slide 20: Appendix – Company structure 1

    4 Appendix – Company structure1 CZG – Česká zbrojovka Group SE (“CZG”) Czech Republic 100% CZ-US Holdings Inc. USA 100% Colt Defence LLC USA 100% Colt Holding Company LLC 100% 95% 100% 99% USA New Colt Holding Colt Colt Defence Colt International Corp. 5% Manufacturing Technical Services 1% Cooperat

CZG – Česká zbrojovka Group — H1 2021 Earnings Presentation on 6ix