Colt Cz Group Se · PSECZ:COLT
Colt Cz — CZG – Česká zbrojovka Group — FY2021 Earnings Presentation
25 slides from Colt Cz's earnings presentation, March 2022
Slide 1: CZG – Česká zbrojovka Group SE Financial Highlights Full year 2021
CZG – ČESKÁ ZBROJOVKA GROUP SE FINANCIAL HIGHLIGHTS Full year 2021 March 2022 INVESTOR PRESENTATION
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
Slide 3: Agenda and today's presenters
Agenda and today‘s presenters 1 PRESENTERS JAN DRAHOTA DENNIS VEILLEUX FY2021 AT A GLANCE President & Chairman of CEO of Colt – CZ North 2 the Board of Directors of America & Member of the CZG Board of Directors of CZG CORPORATE RESPONSIBILITY 3 Jan is minority shareholder in CZG With Colt since 200
Slide 4: 2021 a truly record year for CZG
1 2021 a truly record year for CZG Section: FY 2021 at a glance Adjusted Adjusted Adjusted Best performing Revenues EBITDA1;2 Net profit2 EPS2 stock on PSE 10.7B CZK 2.2B CZK 1.2B CZK 34.4 CZK CZG stock price +56.7% yoy +49.6% yoy +71.6% yoy +71.6% yoy increased by +70%, which makes it the best perf
Slide 5: Revenue change in geographical split driven mainly by Colt consolidation
1 Revenue change in geographical split driven mainly by Colt consolidation Section: Financial highlights Revenue breakdown by geography Selected M&LE contracts In % - Start of deliveries to Czech Army under CZECH the framework agreement REPUBLIC 7.7% - Signed contract via the NATO Support +151% yoy
Slide 6: Rationale for the change
Rationale for the change: Reflect the acquisition of Colt and the strength of this alliance in the Group identity Enhance awareness of the Group by its two major assets and its position and prestige on the market Underline the long-term relationship and commitment both internally and externally by u
Slide 7: CZG - Vision, Mission, Values
CZG - VISION, MISSION, V VISION Our vision is to become the recognized undisputed leader of the small arms industry. VALUES J MISSION We are committed to providing innovative and high-quality products that our customers can rely on in any situation. Financial Target 2025: Revenues of EUR 1 bn, minim
Slide 8: Active ESG approach underscores CZG's commitment to highest standards
2 Active ESG approach underscores CZG‘s commitment to highest standards Section: Corporate responsibility SOCIAL • Antidiscrimination, employment of disabled, high proportion of female employees and employees above age of 50 • Proactive SHE policy including regular assessment and remedy plan • Suppo
Slide 9: CZG is ready to prioritize and accelerate deliveries for NATO & EU M&LE forces
2 CZG is ready to prioritize and accelerate deliveries for NATO & EU M&LE forces Section: Corporate responsibility M&LE focus product portfolio Portfolio CZ Bren 2 C20 rifle Vests Product family CZ Scorpion EVO M4 & M5 Helmets CZ polymer pistols M16 Other functional wear Selected M&LE Military and l
Slide 10: Management expects the Adjusted EBITDA in FY22e to surpass CZK 3 b
3 Management expects the Adjusted EBITDA in FY22e to surpass CZK 3 b Section: Financial highlights Revenues Adjusted EBITDA CZKm CZKm CAGR CAGR CAGR CAGR +46.7% +35.4% +43.7% +36.0% 4,500 25% 1 22.1% 22.0% Guidance 21.3% 20.6% 20.2% 14,400 – 14,800 4,000 Guidance 1 20% 12,824 3,500 3,000 – 3,300 15%
Slide 11: CZG BoD propose CZK 25 dividend per share
3 CZG BoD propose CZK 25 dividend per share Section: Financial highlights D&A impact on net profit and EPS Dividend per share CZKm Internal projection of CZK PPA amortization 900 780 BoD proposal 30 CZK 25.0 700 25 431 449 20 500 371 393 305 175 119 100 15 7.5 300 133 133 71 - - - - - 10 100 237 261
Slide 12: Management guidance for CAPEX at ≤5.0% of revenues
3 Management guidance for CAPEX at ≤5.0% of revenues Section: Financial highlights Operating cash flow Capital expenditures CZKm CZKm 1150 3,000 80.0% 150.0% 109.5% 105.8% Guidance1 950 7.2% 2,500 83.4% 100.0% 4.6% 4.8% 6.1% ≤5,0% 40.2% 37.7% 720 - 740 1,906 50.0% 750 2,000 652 1,588 0.0% 1,500 550
Slide 13: Strong financial position and prolonged debt maturity profile
3 Strong financial position and prolonged debt maturity profile Section: Financial highlights Net financial debt1 and Net leverage ratio2 Comments CZKm 3 In 01/2022 CZG issued 7Y bonds in the amount of CZK 1 998M to 1.2x 1.4x 2.5x 0.8x partially refinance current CZUB bonds due in early 2022 6,500 0
Slide 14: Colt integration is progressing according to the plan
4 Colt integration is progressing according to the plan Section: Efficiency initiatives Area Main objective Status Process improvement across the CZUB organization Cross functional (main areas involved: procurement, sales and distribution chain) Finalized Finance Consolidation of CZ-USA and Colt fin
Slide 15: CZG to exercise call option to increase its equity stake in SPUHR
5 CZG to exercise call option to increase its equity stake in SPUHR Section: M&A update CZG M&A APPROACH Monitors acquisition opportunities among competitors with strong military and law enforcement market presence In Q2 2022, CZG plans to execute its call option for additional purchase of 15% equit
Slide 16: Time for your questions
Time for your questions Section: Q&A THANK YOU FOR YOUR ATTENTION
Slide 17: Appendix – Adjusted EBITDA reconciliation
4 Appendix – Adjusted EBITDA reconciliation Unaudited consolidated financial results CZK '000 / % FY 2021 Net income 760,046 Tax expenses (171,0186) Financial income (expense), net (80,049) Operating profit (EBIT) 1,011,181 Depreciation & amortization (789,623) Depreciation (287,396) Amortization (5
Slide 18: Appendix – Adjusted Net profit reconciliation
4 Appendix – Adjusted Net profit reconciliation Unaudited consolidated financial results CZK '000 / % FY 2021 Eanings before tax 931,132 Tax expenses (170,086) Net income 760,046 Costs relate to Colt acquistion – Inventory step up (162,435) Costs related to Colt acquisition – Advisory/due dilligence
Slide 19: Appendix – Profit and loss statement
4 Appendix – Profit and loss statement Unaudited consolidated Profit & loss statement CZK '000 / % FY 2021 FY 2020 change Revenues from the sale of own products, goods and services 10,688,927 6,819,673 56.7% Other operating income 61,679 67,999 (9.3%) Changes in inventories of finished goods and wor
Slide 20: Appendix – Balance sheet 1/2
4 Appendix – Balance sheet 1/2 Unaudited consolidated Balance sheet – Assets CZK '000 / % FY 2021 FY 2020 Non-current assets Property, plant and equipment 2,810,115 2,050,783 Intangible assets 3,505,464 770,194 Long-term receivables 70,162 37,000 Equity-accounted securities and investments 109,030 1
Slide 21: Appendix – Balance sheet 2/2
4 Appendix – Balance sheet 2/2 Unaudited consolidated Balance sheet – Equity and liabilities CZK '000 / % FY 2021 FY 2020 Equity Share capital 3,374 3,264 Capital funds 2,688,289 2,478,885 Accumulated profits 2,538,784 2,027,994 Equity attributable to the shareholder of the Company 5,230,447 4,510,1
Slide 22: Appendix – Cash flow statement 1/2
4 Appendix – Cash flow statement 1/2 Unaudited consolidated Cash flow statement CZK '000 FY 2021 Cash flows from ordinary activities Profit/(Loss) for the period before tax 931,132 Adjustments for: Depreciation/amortisation of non-current assets 789,622 Change in allowances and provisions 139,546 Lo
Slide 23: Appendix – Cash flow statement 1/2
4 Appendix – Cash flow statement 1/2 Unaudited consolidated Cash flow statement CZK '000 FY 2021 Cash flows from financing activities Income from bond emission 5,000,000 Public offer of shares 416,377 Dividends paid to owners (253,025) Dividends paid to non controlling interests (8,101) Cash flow he
Slide 24: 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% 92.95% 100% 100% 100% 100% 100% CZG-Česká zbroj
Slide 25: 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 1% Cooperatief U.A.
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