Colt CZ : Annual Financial Report for 2025 (unofficial pdf version)

About this update from Colt Cz Group Se

ANNUAL FINANCIAL REPORT for 2025 This document is an unofficial transcription of the official version of the Annual Financial Report of Colt CZ Group SE for the year 2025, which was prepared in the XHTML format in accordance with the European Single Electronic Format (ESEF) Regulation. The official version of the Annual Financial Report of Colt CZ Group SE for the year 2025 is available on https://www.coltczgroup.com/en/investors-financial-results-and-presentations/ CONTENTS IN BRIEF 3 ABOUT THE COMPANY 3 OVERVIEW OF FINANCIAL RESULTS 18 2025 FINANCIAL REVIEW 18 CONSOLIDATED SUSTAINABILITY STATEMENT 60 LIMITED ASSURANCE REPORT ON SUSTAINABILITY STATEMENT 174 KEY FINANCIAL INDICATORS IN 2025 4 INFORMATION ABOUT THE ANTICIPATED DEVELOPMENT AND OUTLOOK FOR 2026 21 7. SUBSEQUENT EVENTS 178 KEY EVENTS IN 2025 5 LETTER FROM THE CEO 7 CORPORATE GOVERNANCE REPORT 23 BASIC INFORMATION ABOUT THE COMPANY 23 REPORT ON RELATIONS BETWEEN THE CONTROLLING ENTITY AND THE CONTROLLED ENTITY, AND BETWEEN THE CONTROLLED ENTITY AND OTHER ENTITIES CONTROLLED BY THE SAME CONTROLLING ENTITY FOR 2025 179 BUSINESS & STRATEGY 10 FIREARMS 10 AMMUNITION 11 INFORMATION ABOUT COMPLIANCE WITH THE COMPANY'S 26 CORPORATE GOVERNANCE CODE INFORMATION ABOUT INTERNAL CONTROL POLICIES AND PROCEDURES 27 AND THE ISSUER'S AND ITS CONSOLIDATING ENTITY'S APPROACH DECLARATION OF AUTHORIZED PERSONS 184 ALTERNATIVE PERFORMANCE MEASURES 185 GLOSSARY 190 MARKETS AND CUSTOMERS 12 MILITARY AND LAW ENFORCEMENT MARKET 12 COMMERCIAL MARKET 13 TO RISKS, IN RELATION TO THE FINANCIAL REPORTING PROCESS DESCRIPTION OF DECISION-MAKING PROCESSES AND COMPOSITION 28 OF THE GROUP'S MANAGING BODY AND ITS COMMITTEES DESCRIPTION OF THE DECISION-MAKING PROCEDURES AND POWERS 51 OF THE GENERAL MEETING SEPARATE FINANCIAL STATEMENTS OF COLT CZ GROUP SE IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION AS AT DECEMBER 31, 2025 CONSOLIDATED FINANCIAL STATEMENTS OF COLT CZ GROUP SE IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION AS AT DECEMBER 31, 2025 194 251 ACQUISITIONS IN 2025 AND ACQUISITION STRATEGY 15 OVERVIEW OF RESEARCH AND DEVELOPMENT ACTIVITIES 16 STRUCTURE OF EQUITY AND DESCRIPTION OF SHARES 54 SHARES AND DIVIDEND POLICY 58 AUDITOR'S REPORT 338 IN BRIEF About the Company Colt CZ Group SE (Colt CZ or the Company), along with its subsidiaries (the Group), is one of the world's leading producers of firearms and ammunition for the military and law enforcement, personal defense, hunting, sport shooting, and other commercial uses. Colt CZ primarily sells its products under the Colt, CZ, Colt Canada, Dan Wesson, Sellier & Bellot, swissAA, Spuhr i Dalby, Colt Optics and 4M Systems brands. After its stock exchange listing in 2020, the Group experienced significant expansion. In 2021, the Group added to its existing small arms production of Česká zbrojovka a.s. (CZUB or Česká zbrojovka) in the Czech Republic, the US firearms manufacturer Colt's Manufacturing Company LLC in the USA and its Canadian subsidiary Colt Canada Corporation (Colt Canada). In 2022, the Company completed an acquisition of the Swedish manufacturer of optical mounting solutions for firearms, Spuhr i Dalby AB (Spuhr). In 2023, it purchased swissAA Holding AG (swissAA), the Swiss producer of small caliber ammunition. In May 2024, it also closed the acquisition of Sellier & Bellot, a traditional Czech manufacturer of ammunition. In June 2025, the Group acquired Valley Steel Stamp Inc. (VSS), manufacturer of firearm components and its long-term supplier in the United States. At the end of August 2025, Colt CZ entered into a share purchase and sale agreement with Synthesia, a.s. for the purchase of 51% stake in Synthesia Nitrocellulose, a.s. (SNC). Synthesia Nitrocellulose, a.s. is one of the largest energetic nitrocellulose manufacturers in Europe and North America. In January 2026, Colt Electro Optics, LLC (Colt Optics) began operations in order to manufacture precision sighting and targeting products built to meet the real-world demands of professional users. As at December 31, 2025, Colt CZ had an average FTE headcount of 3,952 employees. Colt CZ Group has its registered office in the Czech Republic and manufacturing capacities in the Czech Republic, the United States, Canada, Sweden, Switzerland, and Hungary. As of December 31, 2025, the majority shareholder was Česká zbrojovka Partners SE with a 51.8% stake, CBC Europe S.à r.l. (CBC) held a 21.7% stake, 26.0% was free float and 0.5% treasury shares repurchased under the share buyback program. Colt CZ's shares are traded on the Prime Market of the Prague Stock Exchange. Key financial indicators in 2025 Consolidated statement of profit or loss and other comprehensive income (audited) For the year ended December 31 (CZK '000) 2025 2024 Revenues from the sale of own products, goods, and services 23,398,336 22,375,792 4.6% Firearms segment 12,120,436 15,444,952 n/a Ammunition segment 11,277,900 6,970,734 n/a Operating profit 3,261,998 2,001,018 63.0% EBITDA 4,807,617 3,479,842 38.2% Adjusted EBITDA1 4,661,356 4,598,864 1.4% Profit before tax 2,572,475 1,379,838 86.4% Profit for the period 2,044,267 1,044,575 95.7% Adjusted profit for the period2 2,029,903 1,933,205 5.0% Net earnings per share (CZK per share) Basic 36 22 65.2% Diluted 36 22 63.4% Adjusted2 36.0 40.6 (11.4%) Change in % Consolidated statement of financial position (audited) As at (CZK '000) December 31, 2025 December 31, 2024 Total assets 55,635,773 46,032,198 20.9% Total equity 21,281,971 20,028,429 6.3% Total liabilities 34,353,802 26,003,769 32.1% Total liabilities and equity 55,635,773 46,032,198 20.9% Change in % In 2025, EBITDA was adjusted by one-off items related to M&A expenses and legacy costs related to acquisitions, costs related to the employee stock option plan (negative), one-off expenses connected with inventory step-up in VSS and Sellier & Bellot commodity hedging, which are unrelated to operational performance and value creation in the given period. These one-off items are described in Chapter 10 - Alternative Performance Measures. In 2025, net profit was adjusted by one-off items related to M&A expenses and legacy costs related to acquisitions, costs related to the employee stock option plan (negative), one-off expenses connected with inventory step-up in VSS, bank fees related to acquisition loan and financing cost related to bond issue, which are unrelated to operational performance and value creation in the given period. A description of these one-off items is provided in Chapter 10 Alternative Performance Measures. Key events in 2025 JANUARY 2025 Effective January 1, 2025, the roles of Group CEO and Chairman of the Board of Directors, both positions previously held by Jan Drahota, are separated. Jan Drahota continues to serve as Chairman of the Board of Directors of Colt CZ, and Radek Musil, former CEO of Sellier & Bellot, becomes the new CEO of Colt CZ. MARCH 2025 4M Tactical donates special InfraHex ponchos for thermal camouflage to the Gift for Putin fundraising campaign. The campaign reaches its target of CZK 5,800,000 in two weeks. Thanks to this effort, 333 sets of these special ponchos are delivered to Ukrainian defenders. APRIL 2025 Mr. Dennis Veilleux steps down from his position as a member of the Company's Board of Directors effective April 1, 2025. Colt CZ Group issues a press release responding to the introduction of U.S. Tariffs on European Goods. JUNE 2025 Colt CZ acquires Valley Steel Stamp Inc., a corporation based in Massachusetts. VSS is a well-established manufacturer of firearm components and has been a long-term supplier to the Group in the United States. Vladimír Dlouhý resigns from his position as a member of the Company's Supervisory Board. JULY 2025 The Company initiates a share buyback on the regulated market operated by the Prague Stock Exchange. Colt CZ amends the terms and conditions of three CZK-denominated bonds. Sellier & Bellot signs a five-year strategic partnership agreement for the supply of high-performance propellants with EURENCO, Europe's leading manufacturer of energetic materials such as powders, explosives and propellant charge solutions. AUGUST 2025 The Group enters into a share purchase and sale agreement with Synthesia, a.s., a subsidiary 100% owned by Kaprain Chemical Limited, for the purchase of controlling stakes in Synthesia Nitrocellulose, a.s. and Synthesia Power, a.s. (SP). SEPTEMBER 2025 Česká zbrojovka a.s. and the Czech Ministry of Defense sign a new framework agreement for the supply of small arms and accessories worth up to CZK 4.26 billion, excluding VAT. The Group´s subsidiary Colt Canada signs a major contract with the Danish Defence Acquisition and Logistics Organization (DALO) for the supply of 26,000 C8 MRR (Modular Rail Rifle) carbines. OCTOBER 2025 Jan Drahota is appointed to the Supervisory Board, which subsequently elects him as its chairman. NOVEMBER 2025 The Company issues new bonds with a total nominal value of CZK 6 billion. The bonds bear a fixed coupon of 6.10% per annum and mature in 2031. DECEMBER 2025 Česká zbrojovka wins a contract from the German army, which selects a CZ pistol as its standard service sidearm. Mr. Vladimír Rada, CEO of Sellier & Bellot a.s. and Sellier & Bellot Int. a.s., is newly appointed as a member of the Board of Directors, effective December 1, 2025. Letter from the CEO Dear Shareholders, 2025 was a successful year for Colt CZ Group in both financial performance and strategic development. The ammunition segment achieved exceptional results, including a high EBITDA margin, confirming that our decision to expand our business into this pillar was well-founded. The firearms segment also performed well overall, with the exception of our U.S. subsidiary Colt, whose results were impacted by persistently weaker demand in the U.S. commercial market, as well as the temporary suspension of federal government funding (shutdown) in the fourth quarter. The fulfillment of certain contracts for military and law enforcement (Mil/LE) customers was thus postponed to the following period. to respond to growing demand. The company continued to fulfill deliveries under framework agreements, including those with the Czech Army and the Danish Armed Forces, and expanded cooperation with other NATO partners, including the Netherlands. These achievements confirm our ability to provide long-term support to major customers in NATO and EU countries. The steadily growing backlog of orders in both segments strengthens our position with key customers not only in NATO and EU countries, but also in Ukraine, where we continue with projects involving the transfer of technology for CZ BREN 2 rifles and the production of Sellier & Bellot small-caliber ammunition. At the same time, we have secured several major contracts that further strengthen our position in the global defense technology market. Our subsidiaries Colt Canada, CZ, and Sellier & Bellot recorded their best year in history. In the summer of 2025, Colt Canada signed a contract with the Danish Ministry of Defense to supply 26,000 C8 MRR carbines, and this year the order was expanded to more than 50,000 units. CZ signed a new framework agreement with the Czech Ministry of Defense and, in December, secured a major contract to supply pistols to the German Army. Sellier & Bellot further solidified its position as a leading European ammunition manufacturer and a reliable partner to Mil/LE forces. The company secured supply chain stability by signing a strategic five-year agreement for the supply of propellant powder, thereby supporting long-term production predictability and the ability 2025 was also a year of significant strategic steps aimed at strengthening our control over critical parts of the supply chain. In August, we signed an agreement to acquire a 51% stake in Synthesia Nitrocellulose - one of the world's leading producers of energy nitrocellulose - and Synthesia Power - a producer and supplier of energy for the industrial complex in Semtín and Rybitví. Energetic nitrocellulose is key to the production of propellants and charges, and is absolutely essential for small-, medium-, and large-caliber ammunition. Thanks to this acquisition, which we closed in January 2026, we are creating a platform for further vertical integration in the ammunition sector. In the firearms segment, we have strengthened our manufacturing capabilities through the acquisition of the American company Valley Steel Stamp, a long-term supplier to Colt and a manufacturer of revolver frames, cylinders, and precision-machined components for the commercial firearms market. Photo: Jan Rasch ANNUAL FINANCIAL 7 REPORT These results and steps should be seen in a broader context. The security landscape has changed dramatically in recent years, and the defense industry is now a key pillar of national, regional, and transatlantic security. The Colt CZ Group stands ready to continue serving as a reliable partner to both existing and new military and the law enforcement customers. 2025 also represented a symbolic milestone, marking five years since our listing on the Prague Stock Exchange in 2020. We entered the capital market prior to the war in Ukraine, at a time when the defense sector was not viewed as positively by investors as it is today. Nevertheless, we believed then that transparency and access to capital were the right steps to increase our competitiveness and set the Group on a path of long-term growth. The past five years have been a period of systematic investment and development across the Group. We have grown organically thanks to investments in new production lines, automation, and capacity expansion. The Group's production base has expanded from three to seven countries, significantly strengthening our geographic diversification and our ability to respond to customer needs. We have invested in research and development of new products, technologies, and materials based on the needs of professional users. We are expanding our portfolio not only in the firearms and ammunition segments, but also in related technologies. One example is the launch of the new Colt Optics brand, which has allowed us to expand our portfolio this year to include our own optic products. By building a broader product range, we are further enhancing our competitiveness. Equally important are investments in our employees - in the work environment, safety, training, and talent development, because strong teams are the foundation of long-term competitiveness. Over the past five years on the capital market, we have also grown through acquisitions, three of which were transformative for our Group: In 2021, we acquired Colt and Colt Canada, gaining an iconic brand that is celebrating its 190th anniversary this year, as well as providing the Group with a significant presence in the North American market. This was followed in 2024 by the acquisition of Sellier & Bellot, which enabled us to enter the ammunition segment and create a second strategic pillar of our business. In January 2026, we acquired a controlling stake in Synthesia Nitrocellulose, securing access to a critical raw material for ammunition production and paving the way for full vertical integration. The extent of the Group's transformation in the five years since its IPO is well illustrated by selected metrics. Market capitalization has risen from CZK 9.5 billion at the time of the IPO to CZK 56.6 billion, while the number of shareholders has grown nearly sevenfold.* The share price rose from CZK 290 in October 2020 to approx. CZK 1,000, while dividends have been paid regularly. Free float increased from 9.2% after the IPO to 26%. The Group's revenues grew from CZK 6.8 billion in 2020 to CZK 23.4 billion in 2025. We are entering 2026 with a backlog of orders in both segments and clear strategic priorities. We will focus on the integration of Synthesia Nitrocellulose, fully leveraging synergies in the ammunition segment, and continuing our organic growth in all key markets. We expect growing demand from NATO and the EU, reinforced by geopolitical changes, to continue supporting our expansion. Stable and predictable ammunition production, combined with a diversified small arms portfolio, provides us with a solid foundation for further growth. We are taking these steps with the clear goal of strengthening the competitiveness of our brands and building a solid foundation for further growth. The combination of transparency, investment, acquisitions, and operational discipline creates long-term value. I would like to thank our employees, partners, and you, our shareholders, for your trust and support. I am confident that Colt CZ Group has everything it needs to continue fulfilling its ambitions in the years ahead. Sincerely, Radek Musil CEO Colt CZ Group SE * Data as of March 31, 2026. ANNUAL FINANCIAL REPORT 8 7× 5 The number of shareholders increased nearly sevenfold . +340 % Market capitalization grew from CZK 9.5 billion at IPO to CZK 41.8 billion . years 1.73× * The number of issued shares increased from 32,638,000 to 56,463,028 . 2.56× The share price rose from CZK 290 at IPO to CZK 741 , with regular dividend payments to shareholders. on the Prague Stock Exchange +183 % Free float increased from 9.2% after the 2020 IPO to 26% . *Data as of 31 December, 2025 3.44× Revenues increased from CZK 6.8 billion in 2020 to CZK 23.4 billion . 13 Production expanded to 13 sites . ANNUAL FINANCIAL 9 REPORT BUSINESS & STRATEGY Firearms The Colt CZ Group produces a wide range of firearms, which includes pistols, revolvers, rimfire rifles, centerfire rifles, select fire rifles, sub guns, grenade launchers, and sniper rifles. The Spuhr subsidiary produces a number of products, such as optical mounts, accessories, and upgrade kits for firearms, making it highly complementary to the Group's core business. Spuhr mounts and accessories are used by many military and law enforcement units around the world. Spuhr also offers a popular series of products for hunting. The Group offers a wide portfolio of tactical equipment through its subsidiary 4M SYSTEMS, such as ballistic vests, helmets, and other forms of protection, as well as combat uniforms, backpacks, and other firearm accessories, e.g., handgun holsters and magazine pouches. The Group offers military equipment and materials through its subsidiary Colt CZ Defense Solutions. Small arms The Company's small arms are primarily comprised of pistols and revolvers from the CZ and Colt brands. The bedrock of the Group's production portfolio is pistol production. The Group's main products include the CZ 75 and CZ P-10 pistol series, together with CZ SHADOW 2, CZ P-07/09, and the iconic Colt 1911 pistols. Colt's Python and Anaconda revolver series are also within the portfolio. Through the American handgun manufacturer Dan Wesson, Colt CZ offers upgrades of popular revolver and pistol models based on the 1911 platform. Handguns can be split into pistols and revolvers, with pistols being further split into steel frame pistols (e.g. Colt 1911, CZ 75 series, Cobra Series, Model P, CZ SHADOW 2) and polymer frame pistols (e.g. CZ P-09 NOCTURNE and CZ P-10) which can be further split into hammer-fired and striker-fired pistols. The Group covers all main markets of handguns due to, among other things, its capacity to produce steel-framed pistols. Long firearms Long firearms include arms for the military and law enforcement (automatic and semi-automatic rifles, sub guns, and sniper rifles), as well as for commercial use (especially rimfire rifles and centerfire rifles). The Group covers all of the main markets for long guns up to a certain caliber. The most sold products include models in the CZ 457 rimfire rifle series and CZ 600 centerfire rifle series, as well as the CZ SCORPION EVO 3 sub gun, the CZ BREN 2 select-fire rifle, Colt AR15/ M4 / M5 rifles, and the semi-automatic Colt C20 DMR/ MRR marksman rifle. The following table sets forth a breakdown of firearms by type that were sold in 2025 and 2024 by the Group: Units 2025 2024 change in % Long firearms 252,507 280,706 (10.0%) Small firearms 325,984 353,033 (7.7%) Total firearms 578,491 633,739 (8.7%) Joint venture (JV) with the Hungarian government - Colt CZ Hungary Zrt. In May 2023, the JV was incorporated under the legal name Colt CZ Hungary Zrt. Colt CZ owns a 51% stake in the JV and the Hungarian government owns a 49% stake. The company is structured as a non-full-function Joint Venture, where all products are only sold to companies of both shareholders. Thus, the JV does not directly enter the end-user market. The long-term strategic goal of the joint venture is to boost the Group's sales by producing military long arms and service pistols and fulfil Hungary's strategic interest of locating the production of small arms in Hungary. The core of the production program is the manufacture of CZ BREN 2 select-fire rifles and CZ P-09/P-07 and CZ P-10 service pistols. The production plant also serves as a supplier of semi-finished products for manufacturing in the Czech Republic and the USA. Ammunition Transfer of technology contract for the assembly of CZ BREN 2 rifles in Ukraine In 2024, Česká zbrojovka, following upon the Agreement of Intent with Ukroboronprom, signed a transfer of technology contract to assemble CZ BREN 2 select-fire rifles in Ukraine. The project's goal is to equip the Ukrainian armed forces with a proven, high-quality standard NATO firearm, enhancing their operational capabilities and transition to NATO standards. Mk 47 system The Company owns IP rights for the Mk 47 40 mm Advanced Lightweight Grenade Launcher system. The Mk 47 is a lightweight 40mm automatic grenade launcher with an integrated fire control system, capable of functioning as a standard automatic grenade launcher or as a programable unit with airburst capability at a specified altitude. The Mk 47 fires all NATO standard high velocity 40mm rounds, providing firepower against soft and lightly armored targets. In May 2024, Colt CZ acquired a 100% interest in Sellier & Bellot. Sellier & Bellot is a traditional Czech manufacturer of small caliber ammunition and ranks among the oldest engineering companies in the Czech Republic, as well as worldwide. The company's products have been manufactured under its trademark since 1825. The company's product portfolio includes a wide range of hunting and sporting ammunition, which includes ammunition for pistols, revolvers, rifles, and shotguns, as well as rimfire primers. Sellier & Bellot is also a major supplier of small caliber ammunition to military and law enforcement customers worldwide. Most of its production is exported, with the largest markets being the United States and Europe. Modern technologies used in all stages of production guarantee products of the highest quality. Sellier & Bellot's activities also include the development and production of ammunition machines and tools. For many years, the company has been engaged in the development of machines prior to their actual production. This activity is based on many decades of experience gained from in-house orders at its ammunition facilities and from orders for external customers in the ammunition and engineering sectors. Its main direction of development has historically been focused on single-purpose production machines for the manufacture of arms, which is followed by the development and production of modern specialized machines and production lines. swissAA Since 2023, the Group has offered ammunition through its subsidiary swissAA, specifically 5.56 mm, 7.62 mm, 9 mm, and 12.7 mm cartridges, as well as 40 mm grenade launcher ammunition. All products are designed primarily for M/LE customers. swissAA is a leading producer of ammunition and is based in Switzerland. It is a partner of the Swiss, Belgian, German, and other customers from the armed forces. Transfer of technology for ammunition production in Ukraine In July 2024, Sellier & Bellot and the state-owned Ukrainian company Ukroboronprom agreed to cooperate in the production of multiple types of small-caliber ammunition in Ukraine. As part of the agreement, Sellier & Bellot will supply the Ukrainian side with machinery to produce ammunition. Operation and management of the production plant, including the installed technologies, is the responsibility of the Ukrainian partners. Strategic partnership with EURENCO In July 2025, Sellier & Bellot signed a five-year strategic partnership agreement for the supply of high-performance propellants with EURENCO, Europe's leading manufacturer of energetic materials such as gunpowders, explosives and propellant charge solutions. This long-term collaboration aims to support the growing demand for small-caliber ammunition across Europe and NATO, including military Markets and customers calibers such as 5.56 mm and 7.62 mm, as well as 9 mm ammunition for police and law enforcement, as well as for sport and hunting applications. Delivery of hand grenades to the Army of the Czech Republic In 2025, Colt CZ Defense Solutions, a subsidiary of Colt, delivered 150 thousand hand grenades to the Army of the Czech Republic as part of the transfer of technologies for the production of hand grenades from Rheinmetall Waffe Munition ARGES GmbH to the Czech Republic. The Group supplies its products to over 120 countries all over the world. The main markets, according to customer categories, are the military and law enforcement market and the commercial market. Military and law enforcement market Colt CZ Group customers in the military and law enforcement market include federal, state, and local governments and government agencies, specifically regular army units and special armed forces, state and municipal police, border guards, prison guards, and units in charge of the protection of constitutional officials. The main goal of the Group is to increase its worldwide market share, via both organic growth and acquisitions. The Group's management believes the military and law enforcement market offers greater growth opportunities than the commercial market, due to the current political and security situation. Ensuring global and regional security is also in line with its strategy of sustainable development. As part of its strategy to strengthen its position in the military and law enforcement market, the Group intends to capitalize on its many years of experience and, through acquisitions of ammunition manufacturers, offer comprehensive solutions in the field of firearms, accessories, and ammunition. Countries where the Group supplies products to customers from the armed forces include, among others: Military and law enforcement: Australia, Canada, the Czech Republic, Denmark, Hungary, Jordan, Malaysia, the Netherlands, New Zealand, Poland, Portugal, Austria, Romania, Slovakia, Sweden, Switzerland, Spain, Thailand, Ukraine, the United Kingdom, and the USA, including NSPA3. Police and border services: Albania, Belgium, Brazil, Finland, France, Denmark, Canada, Chile, Colombia, the Czech Republic, Germany, Norway, Greece, Indonesia, Israel, Kenya, Malaysia, Mexico, Poland, Romania, Singapore, Slovakia, Sweden, Spain, Taiwan, Thailand, Vietnam, and the USA. Special forces and units: Canada, France, Indonesia, Italy, Portugal, the United Kingdom, and the USA. Key customers from M/LE include NSPA, the Ministries of Defence in the Czech Republic, Spain, Denmark, the Netherlands, Austria, Romania, and Vietnam. The Company also supplies the Ministries of the Interior in the following countries - the Czech Republic, Slovakia, Poland, Belgium, Denmark, Norway, Finland, France, Austria, Romania, Taiwan, Sweden, Ukraine, and Vietnam. NATO Support and Procurement Agency SELECTED KEY CONTRACTS IN 2025 Bundeswehr rearmament tender Česká zbrojovka won a contract from the German army, where a CZ pistol was selected as its standard service sidearm. CZ was awarded the contract following an open international tender, prevailing over several global competitors. The pistols designated as P13 for the Bundeswehr are based on the CZ P-10 C OR (Optics-Ready) model, featuring a Flat Dark Earth (FDE) finish. It is a modern striker-fired service pistol designed for professional use, renowned for its reliability, durability, and intuitive handling. It features excellent ergonomics, high magazine capacity, and precise construction, making it a preferred choice among military and law enforcement customers in many countries. New Framework agreement with the Czech Ministry of Defense Česká zbrojovka a.s. and the Czech Ministry of Defense signed a new framework agreement for the supply of small arms and accessories worth up to CZK 4.26 billion, excluding VAT. The framework agreement covers the period of 2025-2031 and builds on successful cooperation that began in 2011. The Ministry of Defense has implemented several contracts in the past within this framework, thanks to which a complete transition of firearms in NATO-calibers has taken place. Under the new framework agreement, the Army will continue to purchase CZ BREN 2 select-fire rifles, CZ P-10 C pistols, and CZ GL underbarrel grenade launchers. The deliveries will also include a wide range of accessories - optoelectronic sights (day and night optics, laser sights), spare part kits, armorer kits, holsters, and cases. The firearms will be gradually purchased in accordance with the current needs of the Army, and the total amount of CZK 4.26 billion, excluding VAT, may not be fully utilized. Contract with Danish Defence Acquisition and Logistics Organization (DALO) The subsidiary Colt Canada has signed a major contract with the Danish Defence Acquisition and Logistics Organization (DALO) for the supply of 26,000 C8 MRR (Modular Rail Rifle) carbines. Commercial market The commercial market includes firearms and ammunition for self-defense, hunting, sport shooting, and other commercial use. Commercial customers include hunters and outdoor enthusiasts, sport shooters, and hobby shooters, including those participating in competitions held by the IPSC, USPSA, and IDPA, as well as other competitions, such as various rimfire and centerfire rifle competitions. The commercial customer category also includes those who buy firearms for self-defense. Distribution The Group mainly sells its products through wholesalers and distributors. As for military and law enforcement customers, it usually participates in public tenders. Colt CZ operates three company retail stores (located in the Czech Republic) and an e-shop. The Group regularly participates in major trade fairs aimed at the commercial market and military and law enforcement, as well as organizes its own activities, with some of them held on-line. It has long championed shooting sports via support of competitions, international championships, IPSC and USPSA organizations, as well as its own shooting team and individual competitors. Colt CZ operates an on-line firearm configurator, which enables customers to configure CZ firearms directly from their phone or computer. The configurator is available to customers in seven countries around the world, specifically in the Czech Republic, Slovakia, Poland, France, Austria, Germany and the USA. Since becoming part of Colt CZ Group in 2021, Colt Canada has undertaken a significant multi-year investment program to expand production capacity, modernize operations, and strengthen its workforce . Over the past five years, Colt Canada has invested significant resources in the expansion of its operations and in capital equipment, including advanced CNC machining centers, quality assurance systems, automation upgrades, and specialized engineering and test equipment. These investments have improved manufacturing throughput, efficiency, and resilience, together with strengthening R&D activities, while enhancing Colt Canada's ability to meet evolving operational requirements. As a result, Colt Canada has increased its annual rifle production capacity multiple times from 2020 to the present, with projections to further scale production through continued infrastructure modernization and optimization of production processes. These impressive results are driven by technological investments and disciplined operational execution. A UK Royal Marine equipped with the new Colt Canada fully ambidextrous C25 carbine Equally important has been the company's investment in people . Since the merger, Colt Canada has increased its workforce by approximately 60%, adding more than 50 skilled employees across operations, engineering, quality, and program management. It has strengthened internal training, cross-departmental collaboration, and technical specialization to support sustained growth. Beyond operational growth, the company continues to foster a supportive workplace culture that emphasizes employee wellbeing, family engagement, and a strong sense of shared purpose. Together, these investments now position Colt Canada as a scalable and reliable manufacturing partner capable of meeting the needs of domestic and allied customers, while continuing to innovate and develop the next generation of small arms solutions. ANNUAL FINANCIAL 14 REPORT Acquisitions in 2025 and Acquisition strategy The Group plans to continue its expansion in key segments for the development and production of traditional firearms, weapon systems, and ammunition via further acquisitions. Its goal is to extend the Group's scope of business from a product and geographic point of view, especially in deliveries to the M/LE segment, such as army and police forces. The Group continues to look for acquisition opportunities in related areas, especially those with a high degree of modern technologies, such as optics, optoelectronics, and other modern firearm accessories. In line with this strategy, the activities of Colt Optics, headquartered in Michigan, USA, were presented to the professional community in January 2026. The company develops products and, starting in 2026, will begin bringing them to market for both professional and commercial customers. An emerging trend the Group monitors is the introduction of unmanned and autonomous weapon systems and remotely controlled weapon stations within M/LE units. In the commercial market segment, the Group continues to pursue acquisition opportunities that include non-lethal and less lethal weapons. Acquisition of Valley Steel Stamp Inc. On 16 June 2025, the Group completed the acquisition of Valley Steel Stamp Inc. Valley Steel Stamp Inc. is a well-established manufacturer of firearm components and has been a long-term supplier to Colt CZ Group in the United States. Headquartered in Greenfield, Massachusetts, the company employs approximately 150 people. Following the acquisition, Valley Steel Stamp will continue to operate under its existing trade name. The strategic rationale for the transaction is to achieve vertical integration in selected product categories. With this acquisition, Colt CZ Group gains control of a reputable, high-quality precision machining company, that serves as a key supplier of revolver frames and cylinders, spare parts, and other firearm components for the commercial market. Synthesia Nitrocellulose, a.s. Acquisition On August 28, 2025, the Group entered into a share purchase and sale agreement with Synthesia, a.s., 100% owned by Kaprain Chemical Limited, for the purchase of controlling stakes in Synthesia Nitrocellulose, a.s. and Synthesia Power, a.s. Based on the SPA, Colt CZ subsequently acquired on January 6, 2026, a 51% stake in SNC and SP upon fulfillment of the conditions precedent. The remaining 49% of SNC and SP may be acquired under the agreed put and call option terms within a period starting two years after the completion of the acquisition of the 51% stake in SNC and SP. Synthesia Nitrocellulose, a.s. was founded in December 2024 through a spin-off of the nitrocellulose manufacturing division from Synthesia, a.s., one of the largest energetic nitrocellulose manufacturers in Europe and North America. Energetic nitrocellulose is a basic raw material to produce single and multi-component powders and propellants, and is essential for the production of small-, medium-, and large-caliber ammunition. Synthesia Nitrocellulose is also a major manufacturer of industrial nitrocellulose and oxycellulose for healthcare use. The Group believes that the acquisition of SNC fits into its strategy of expanding the Group's activities into medium and large-caliber ammunition while strengthening its position in a critical element of our supply chain. Overview of research and development activities Technology and innovation are crucial to the Group's business success and drive everything we do. We carry out research and development (R&D) activities at each of our brands, with global coordination and with the aim of creating new products and services for customers who demand innovative and reliable products for the most demanding missions. Advancement of our research and development activities - whether independently or in cooperation with partners - is one of our highest priorities. The Group actively invests in R&D to expand its product portfolio, while continuously introducing new, innovative products, shortening the innovation cycle, and launching products with the most advanced technologies and functions in their respective categories. In 2025, the Group's research and development expenditures amounted to approximately CZK 404 million. The core of our R&D activities is an experienced team of experts. In 2025, an average of 137 employees worked in research and development and other technical areas related to these activities. These are largely employees of the Group´s firearm production subsidiaries. The Colt CZ Group is also a stakeholder in the research company CARDAM, which is co-owned by the Institute of Physics of the Academy of Sciences of the Czech Republic and provides the Group with access to the cutting-edge scientific knowledge, especially in the area of research and development of materials. In the ammunition segment, NONTOX labelled cartridges have been specially developed for use in covered shooting ranges. The combination of a heavy metal-free primer and completely covered core of the bullet minimizes the release of harmful fumes into the air. The NONTOX primer compound is patented in the Czech Republic, Europe and the USA. In response to current trends, Sellier & Bellot is intensively engaged in the development and production of homogeneous lead-free bullets. These bullets are used in hunting and sport shooting, as well as in the armed forces. The experts in our R&D teams range from designers, material specialists, and mathematicians, to experienced project managers and development lab teams. Our goal in the coming years is to further expand the teams and supplement the necessary competencies, while maintaining a healthy ratio of experienced experts and promising young engineers. The activities of our research and development teams are supported by state-of-the-art facilities for both virtual and physical research. The Group intends to continue investing in technology and equipment for R&D as a priority, with the aim of consolidating its position as a technological leader. The main goal of research and development is to provide customers with a clear argument when making their purchase decision, while constantly improving the reliability, functionality, quality, safety, and durability of our products. Sellier & Bellot continues to make long-term investments in its manufacturing capabilities to maintain its position at the forefront of the world's leading small-caliber ammunition manufacturers. One such investment is the implementation of a new production line for the 12.7×99 mm (.50 BMG) cartridge , which was previously absent from the S&B portfolio. The final installation phase of the production line is currently underway, with part of the technological equipment having been relocated from S&B's sister facility swissAA in Switzerland, while additional key components are being newly manufactured within S&B's own production operations. The start of serial production is planned during 2026. By expanding the product portfolio to include this cartridge, which will become the largest caliber for small arms manufactured at S&B, we will further strengthen the plant's technological capabilities and enhance New addition to the Sellier & Bellot portfolio: the 12.7×99 mm cartridge compared to the 9mm Luger our commercial potential in both domestic and international markets. The project represents a significant strategic milestone and confirms our long-term commitment to expanding manufacturing capacity and technological self-sufficiency. Sellier & Bellot is also investing in company facilities for its employees . It has completed the conversion of unused premises in its former medical center into new employee housing facilities in Vlašim, Czech Republic. The project created 18 fully equipped apartments primarily designed to serve as starter housing for new employees relocating to the region for work, or as temporary accommodation for employees facing challenging life circumstances. The initiative contributes to improved employee comfort, as well as greater workforce stability. The conversion represents another step in the company's long-term efforts to create high-quality working conditions for its employees and support their professional and personal lives. ANNUAL FINANCIAL 17 REPORT OVERVIEW OF FINANCIAL RESULTS 2025 Financial Review Revenues Compared to 2024, the Group's revenues in 2025 increased by 4.6% to CZK 23.4 billion. The growth was driven by ammunition sales across both the military and law enforcement market and the commercial market, in all key regions, except for the U.S. commercial market. CZ and Colt Canada recorded their strongest performance in history. Revenues generated in the Czech Republic in 2025 increased y-o-y by 8.8% to CZK 4.8 billion, driven by Mil/LE deliveries to the Czech Ministry of Defense, including hand grenades to the Czech Army and deliveries related to support of Ukraine. Revenues generated in the United States decreased y-o-y by 23.8% to CZK 6.7 billion due to the softness of the U.S. commercial market, the six-week shutdown of the U.S. federal government in the last quarter of 2025 and lower sales of Colt-branded products. Revenues in Canada reached CZK 1.4 billion in 2025, up by 22.6% y-o-y, driven by large deliveries to military and law enforcement customers. Revenues generated in Europe (excluding the Czech Republic) increased y-o-y by 30.8% to CZK 8.1 billion in 2025, driven by strong performance of the ammunition segment. Revenues generated in Africa increased by 29.1% to CZK 228.4 million in 2025 as a result of new M/LE contracts. Revenues generated in Asia increased by 40.3% y-o-y to CZK 1,319.6 million in 2025, driven by ammunition sales. In the Latin America region, sales in 2025 amounted to CZK 663.4 million, which is 15.6% more y-o-y. Revenues from sales to other parts of the world reached CZK 128.8 million in 2025, up by 66.2% y-o-y. THE GROUP'S REVENUES FOR THE INDICATED PERIODS BY REGION: (in CZK thousand) FY 2025 FY 2024 Change in % Share on total revenues 2025 in % Czech Republic 4,813,221 4,425,720 8.8% 20.6% USA 6,744,068 8,846,458 (23.8%) 28.8% Canada 1,408,607 1,148,745 22.6% 6.0% Europe (excl. the Czech Republic) 8,092,268 6,186,178 30.8% 34.6% Africa 228,432 176,984 29.1% 1.0% Asia 1,319,572 940,284 40.3% 5.6% LATAM 663,413 573,949 15.6% 2.8% Other 128,755 77,474 66.2% 0.6% Total 23,398,336 22,375,792 4.6% 100.0% Overview of Financial Results Firearms segment The firearms segment includes the design, production, assembly and sale of firearms, tactical accessories and optical mounting solutions for the military and law enforcement, personal defense, hunting, sport shooting, and other commercial use. In 2025, there was a decrease of 8.7% y-o-y in the number of sold firearms to 578,491 units, which affected both short guns and long guns sales. Revenues from the firearms segment reached CZK 12.1 billion in 2025, down by 21.5% y-o-y. Sales of CZ-branded products increased on the annual basis, partially offsetting the decline of Colt-branded products. Sales of Colt-branded products declined on annual basis due to the U.S. commercial market weakness and impact of the six-week shutdown of the U.S. federal government in the last quarter of 2025. Ammunition segment The ammunition segment consists of the design, production and sale of small-caliber ammunition, including pistol and rifle ammunition, together with shotgun shells for hunting, sport shooting, and the military and law enforcement, as well as the production and sale of grenades and other military material. It also includes the development and production of ammunition manufacturing machinery and tools. The ammunition segment includes revenues from the Group's subsidiaries Sellier & Bellot and swissAA, together with the relevant part of revenues of Colt CZ Defence Solutions. In the ammunition segment, the Group achieved revenues of CZK 11.3 billion in 2025, up by 62.7% y-o-y, driven by strong performance of the segment and also by the effect of the full consolidation of Sellier & Bellot (consolidation of Sellier & Bellot took place from May 16, 2024). EBITDA and Adjusted EBITDA4 In 2025, EBITDA (including extraordinary items) increased by 38.2% to CZK 4.8 billion compared with the same period last year. The increase was primarily driven by the organic growth of the ammunition segment, which generated higher margins, and consolidation of Sellier & Bellot for the full year 2025 (consolidation of Sellier & Bellot took place from May 16, 2024) and also by significantly lower staff costs related to the Employees Share Option Plan (ESOP). The adjusted EBITDA amounted to CZK 4.7 billion in 2025, up by 1.4% y-o-y. The adjustments were related to ESOP costs and commodity hedging impacts. Profit (loss) before tax Profit (loss) before tax of the Group increased in 2025 by 86.4% y-o-y to CZK 2.6 billion, due to the higher operating profitability driven by strong margins of the ammunition segment and by the full consolidation of Sellier & Bellot. Net profit / Adjusted Net profit5 In 2025, net profit increased by 95.7% to CZK 2,044.3 million compared with the same period of last year, due to the higher operating profitability driven by strong margins of the ammunition segment, the full consolidation of Sellier & Bellot, and lower costs related to the Employees Share Option Plan. In 2025, net profit adjusted for extraordinary items increased by 5.0% to CZK 2.0 billion compared with the same period in 2024. Investments The Group's capital expenditures were CZK 1,035 million in 2025, up by 12.3% y-o-y. This represents a 4.4% share of the total revenues. In 2025, EBITDA was adjusted by one-off items related to M&A expenses and legacy costs related to acquisitions, costs related to the employee stock option plan (negative), one-off expenses connected with inventory step-up in VSS and Sellier & Bellot commodity hedging, which are unrelated to operational performance and value creation in the given period. In 2025, net profit was adjusted by one-off items related to M&A expenses and legacy costs related to acquisitions, costs related to the employee stock option plan (negative), one-off expenses connected with inventory step-up in VSS, bank fees related to acquisition loan and financing cost related to bond issue, which are unrelated to operational performance and value creation in the given period. Investments in research and development represent a long-term pillar of Česká zbrojovka's growth and a key prerequisite for maintaining its competitiveness. Since 2020, the company has been systematically developing new product platforms across multiple segments - from military models, such as the CZ BREN 3 and CZ GL, to sport and commercial products, including the CZ SHADOW 2 CARRY, CZ SHADOW 2 TARGET, and CZ P-09 NOCTURNE. These projects reflect both end-user requirements and operational demands, with a strong focus on modularity, ergonomics, safety, and manufacturing efficiency . The purchase of an in-house CT scanner for R&D purposes in 2025 is an example of such a technological investment. Computed tomography enables non-destructive analysis of the internal structure of components and early detection of defects in the initial stages of development. This capability allows for optimization of design and manufacturing parameters prior to the start of serial production, contributing to shorter development cycles, improved product quality, and reduced risks in later stages of the product lifecycle. This technology is particularly important given the growing share of polymer and MIM components and their increasingly complex designs. In-house access to CT technology significantly strengthens CZ's technological self-sufficiency and its ability to respond efficiently to market requirements. Systematic investments in new products and development infrastructure thus reinforce CZ's long-term competitiveness , enhance its capacity to generate future revenues, and create a solid foundation for sustainable growth and long-term shareholder value. Werth CT scanner ANNUAL FINANCIAL 20 REPORT Overview of Financial Results Information about the anticipated development and outlook for 2026 Regarding the 2026 outlook, Colt CZ Group continues to identify significant global opportunities in the military and law enforcement segment. Cooperation with NATO and EU member states, as well as with the NATO Support and Procurement Agency (NSPA), remains a key priority, while the Group also sees growing importance of In view of the above, the Group presents the indicative outlook for 2026 for both the original Group and including the contribution of the new Energetics segment: FY 2025 Proposed Dividend Payment The Company will propose to the General Meeting a cash dividend of CZK 30 per share from the 2025 profit. The proposed profit distribution is subject to approval other markets, particularly in Asia. Securing new tenders and the timely execution of signed contracts throughout the year will be critical for achieving the 2026 outlook. The Group is also expected to realize revenues originally anticipated in Q4 2025 that were postponed due to the six-week shutdown of the U.S. federal government. One of the Company's key objectives for 2026 in the U.S. market is to mitigate the market slowdown and import tariffs while retaining revenues and maintaining profitability in the firearms In million CZK FY 2025 proforma Revenues 23,399 28,300 30,000 - 33,000 Adjusted EBITDA 4,661 7,100 7,400 - 8,200 Colt CZ Group including Energetics FY 2026 Guidance by the General Meeting, which will be held at the end of the first half of 2026. segment through enhanced cost control and new product launches. The Group is also expected to benefit from the inclusion of the newly acquired energetics business represented by Synthesia Nitrocellulose and Synthesia Power, which will form a new reporting segment - Energetics. Given the anticipated high profitability of this segment, Energetics is expected to account for approximately 16% of total revenues and 32% of adjusted EBITDA in 2026. The capital expenditures of the Group in 2026 could reach CZK 1.8 - 2 billion, which corresponds to approximately 6% of the expected 2026 revenues, in line with the Company's medium-term target. Of this amount, EUR 40 million is expected to be allocated to CAPEX in the Energetics segment, aimed at increasing production capacity from 6 thousand to 7 thousand tons. ANNUAL FINANCIAL REPORT 21 In mid-2025, Colt CZ acquired Colt's long-term supplier Valley Steel Stamp (VSS), a Massachusetts-based precision machining company founded in 1971. What began as a two-person operation has grown into a respected manufacturing facility employing more than 50 highly skilled machinists and serving over 300 companies across 10 countries. VSS has built its reputation on innovation, quality, reliable deliveries, and value , principles that closely align with Colt's own manufacturing heritage. This acquisition strengthens Colt's operational capabilities in several important areas. VSS adds meaningful production capacity for revolvers , supporting current demand and future product expansion. It also expands Colt's in-house manufacturing of critical components, including upper receivers and other key Colt firearm system components, as well as improving supply chain resilience, quality control, and operational efficiency through increased vertical integration. VSS also provides valuable engineering and research expertise, particularly in revolver design and precision machining. These capabilities will support continued product innovation and long-term lifecycle enhancements across Colt's portfolio. In addition, VSS's established workforce training program provides a proven model for developing skilled machinists and sustaining essential manufacturing knowledge. Overall, the acquisition reinforces Colt's commitment to American manufacturing excellence while positioning the company for sustainable growth and enhancing its operational performance. Manufacturing facility at Valley Steel Stamp in Massachusetts ANNUAL FINANCIAL 22 REPORT CORPORATE GOVERNANCE REPORT BASIC INFORMATION ABOUT THE COMPANY Legal name: Colt CZ Group SE Legal form: European Company (Societas Europaea - SE) Address: náměstí Republiky 2090/3a, 110 00 Prague 1 Registered at: Prague Municipal Court, Section H, File 962 Comp. ID.: 291 51 961 VAT ID.: CZ29151961 LEI: 315700O990GR61YDGF96 Telephone: +420 222 814 617 Email: [email protected] Date of incorporation: 2013 Website: https://www.coltczgroup.com According to Article 2 of Colt CZ's Articles of Association, the scope of business of the Company includes: a) Management of its own assets, b) Manufacturing, trade, and services not listed in Annex 1 through 3 of the Act No. 455/1991 Coll., on trade licensing, as amended, within the scope of mediation of sales and services, wholesale and retail sales, advisory and consultancy services, and preparation of expert studies and reports. The Company does not have any branches, operations, or interests abroad. Information on activities related to environmental protection and employment practices according to the Accounting Act is within chapter 5 of the Sustainability Statement. A description of the diversity policy applied to the issuer's managing body is within chapter 5 of the Sustainability Statement. Corporate governance report Colt CZ Group SE 291 51 961 Czech Republic 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Česká zbrojovka a.s. 463 45 965 Czech Republic Representative Office of Colt CZ Group SE 46045571 Ukraine Colt CZ Insurance Limited 72331 Guernsey Colt CZ Group International s.r.o. 072 05 392 Czech Republic swissAA Holding AG CHE-218.092.959 Switzerland Colt CZ Defence Solutions s.r.o. 494 51 961 Czech Republic CZG VIB s.r.o. 072 05 520 Czech Republic Colt CZ Group North America, Inc. 83-2954264 U.S. Sellier & Bellot Int. a.s. 194 17 772 Czech Republic EHC-4M, SE 037 97 198 Czech Republic 24,99% 100% 100% 20% 100% VIBROM spol. s.r.o. 260 08 203 Czech Republic 100% 100% Sellier & Bellot a.s. 289 82 347 Czech Republic 4M SYSTEMS a.s. 036 70 091 Czech Republic 100% 71% 100% 100% 100% Global Defence Trading a.s. 630 79 721 Czech Republic 100% 51% 100% 100% 33% 100% 100% 49% 100% 100% 92% 100% 100% Valley Precision Parts Corp. 87-2174086 USA 100% Valley Steel Stamp Inc. 04-2487824 USA Colt Admin, LLC 33-2157934 USA Colt Electro Optics, LLC 33-2108553 USA haltech kft. 19-09-001318 Hungary Latin America Holding, a.s. 045 39 419 Czech Republic CZ Brasil LTDA NIRE N 42205006854 Brazil Four Horses Apparel, Inc. 92-1550817 USA saltech AG CHE-109.551.583 Switzerland CZ-USA 77-0445408 USA galtech AG DE294343875 Germany Colt CZ Hungary Zrt. 03-10-100692 Hungary Colt Canada Corporation 98-0435534 Nova Scotia, Canada Ialtech s.r.l. MI1925073 Italy Spuhr i Dalby AB 556723-8372 Sweden Colt's Manufacturing Company LLC 42-1589139 USA aaltech GmbH ATU65121815 Austria EG-CZ Academy 850-018-052 France CARDAM s.r.o. 054 37 032 Czech Republic CZ-Slovensko s.r.o. 31 588 816 Slovakia ZBROJOVKA BRNO, s.r.o. 269 28 787 Czech Republic Ceska zbrojovka a.s. Niederlassung Deutschland Germany ORGANIZATIONAL CHART OF THE GROUP AS AT 31 DECEMBER 2025 Česká zbrojovka Partners SE 058 51 777 Czech Republic 51,80% HOLDING COMPANIES NO ASSET COMPANIES In January 2026, Colt CZ Group successfully closed on the acquisition of a 51% stake in Synthesia Nitrocellulose (SNC), as well as a 51% stake in Synthesia Power from the Kaprain Group. This transaction represents a major step for Colt CZ Group in enhancing the security of its supply chain and strengthening vertical integration in the production of ammunition and energetic materials . SNC is among the world's leading producers of energetic nitrocellulose (eNC), a key material for the production of single-base and multi-base propellants, propellant charges, and subsequently small-, medium-, and large-caliber ammunition. In an environment with a limited number of qualified producers in the Euro-Atlantic area, direct access to this raw material represents a significant strategic advantage. This acquisition enables Colt CZ to reduce dependence on external suppliers and enhance production stability in the critical ammunition segment . It also creates a platform for further development of related capabilities in the field of explosives and medium- and large-caliber ammunition. SNC was established in December 2024 through the spin-off of nitrocellulose production from Synthesia, a.s. It operates a fully integrated manufacturing model, including nitric and sulfuric acid production and its own energy infrastructure, ensuring a high level of control over key inputs and long-term supply stability. Production of energetic nitrocellulose ANNUAL FINANCIAL 25 REPORT Information about compliance with the Company's corporate governance code The corporate governance structure of the Company complies with applicable laws, including the Corporations Act. Under Czech law, the Company is not required to comply with any corporate governance code. Since its listing, the Company has adhered to the Corporate Governance Code CR 2018 (henceforth referred to as the CG Code)6 based on the comply or explain principle, which means that the Company either complies with the CG Code or explains why it does not comply with certain rules of the CG Code. In 2025, as at the date of this annual financial report, the Company complied with all provisions of the CG Code, with the exception of the following rules: 2.3.2 The Company should not allow shareholders to make decisions outside the General Meeting (per rollam): Colt CZ: The Articles of Association allow for per rollam voting at the General Meeting. The Company introduced this manner of voting as one of the measures taken in response to the outbreak of COVID-19. Even when shareholders make decisions outside the General Meeting, the Company will respect shareholders' rights and guarantee full exercise of these rights to all shareholders. One General Meeting out of the two meetings held in 2025 made decisions outside the meeting (per rollam). 3.2.2. Members of the Company's elected bodies should not serve as members of elected bodies in more than four other business corporations, except in business corporations that form a corporate group with the Company. Colt CZ: Mr. Lubomír Kovařík is the vice-chairman of the Supervisory Board and serves as a member of elected bodies in more than four business corporations, with some of them associated with the Company's majority owner. The Company does not consider such positions a conflict of interest. Mr. René Holeček is a member of the Supervisory Board, serves as a member of elected bodies in more than four business corporations and is also the Company´s largest shareholder. The Company does not consider such positions to be a conflict of interest. Ms. Jana Růžičková is a member of the Supervisory Board and serves as a member of elected bodies in more than four business corporations associated with the Company's majority owner. The Company does not consider such positions a conflict of interest. For download: https://www.mfcr.cz/cs/ministerstvo/kariera-a-vzdelavani/vzdelavani/odborne-studie-a-vyzkumy/2019/kodex-spravy-a-rizeni-spolecnosti-cr-201-34812 6.2. The Supervisory Board should have at least three members and a sufficient number of its members should be independent. A member of the Supervisory Board should be considered independent only if he/she has no business, family, or other relationships with the Company, its majority shareholder, or the Company's management, and/or is not influenced by other circumstances that may create a conflict of interest that impairs his/her judgement. Colt CZ: As at the date of this annual financial report, David Aguilar and Daniel Birmann meet the definition of independent members of the Supervisory Board. Mr. Holeček is the majority owner of the Company, Mr. Drahota, Mr. Kovařík and Ms. Růžičková serve on the elected bodies of companies associated with the Company's majority shareholder. 9.2.1 Non-executive committees should be composed of a majority of non-executive members of the Supervisory Board or the Administrative Board. Colt CZ: As at the day of this annual financial report, no member of the Audit Committee was a member of the Supervisory Board. As at the date of this annual financial report, the majority of committees established by the Supervisory Board (i.e., the Remuneration Committee, the Strategic Investments and Acquisitions Committee, and Compliance and Ethics Committee) did not consist of non-executive members of the Supervisory Board. Information about internal control policies and procedures and the issuer's and its consolidating entity's approach to risks, in relation to the financial reporting process The Group uses various technical and governance measures to prepare its financial statements. These measures ensure compliance with the relevant accounting standards and provide users of the financial statements with a true and fair view of the financial position, equity position, cash flows, and profitability of the Group. These measures comprise internal governance, namely the Group's consistent accounting policies and process set-up. This means multi-level checks on transactions being recorded and maximum attention being paid to the automation of booking accounting entries. Pursuant to Act No. 563/1991 Coll., on accounting, as amended, the Company presents its consolidated financial statements in accordance with IFRS. The Company and its subsidiaries prepare separate financial statements in accordance with local accounting standards and are subject to IFRS consolidation at the Group level. The subsidiaries use various accounting systems for bookkeeping, with the main subsidiaries using SAP/ 4HANA, Infor/Syteline, and EPICOR. Governance and process set-up measures control the circulation of documents that support journal entries. As a rule, each accounting record can only be posted following a multi-level approval process. This rule excludes any possibility of a single employee having more than one role in the hierarchy. Approval is carried out online through an approval process. Only users with appropriate rights have access to the accounting system. Access rights to the system are granted by means of a software application and are subject to approval by the supervisor. Access is provided according to the employee's position and reviewed on a regular basis. Only employees of the relevant department have rights for active operations (postings) in the accounting system. The accounting system maintains an audit trail, which allows for the identification of the user that created, changed, or cancelled any accounting record. A system of monthly reconciliation of accounts is set up but is not formally documented. Quarterly and annual documentation of accounts reconciliation is documented. Moreover, a thorough review of monthly accounts, compared to the prior year and budgeted figures, is carried out. In addition, plan fulfilment is reviewed on a monthly basis to assess the projected performance of each company for the relevant year. The Group, as a securities issuer, also publishes its quarterly consolidated financial statements pursuant to stock exchange rules. In addition, annual financial statements are audited by an external auditor, who audits individual and consolidated financial statements as at the balance sheet date, i.e., 31 December of a given year. Description of decision-making processes and composition of the Group's managing body and its committees The Company has a dual management system consisting of the Board of Directors (the managing body) and the Supervisory Board (supervision body). The Board of Directors represents the Company in all matters and is charged with its day-to-day business management, while the Supervisory Board is responsible for the supervision of the Company's activities and of the Board of Directors and resolves matters defined in the Corporations Act and the Articles of Association, particularly matters with material impact on the value of the Company shares. Under the Corporations Act, the Supervisory Board may not manage the Company's business. A description of the decision-making procedures, and the composition of the Board of Directors is set out in the Company's Articles of Association, Section 13: Board of Directors and its powers. A description of the decision-making procedures and the composition of the Supervisory Board is set out in the Company's Articles of Association, Section 19: The Supervisory Board and its powers. Information on the Supervisory Board Committees, including the Audit Committee, is set out in the Company's Articles of Association, Section 26: Meetings and decision-making of the Audit Committee. The current Articles of Association of the Company are available on the Company's website https://www.coltczgroup.com/ en/investors-corporate-affairs. Board of Directors The Board of Directors is the statutory body of the Company. The Board of Directors shall be in charge of the management of the Company's business and shall act on the Company's behalf. Matters falling within the powers of the Board of Directors include those that are not entrusted to other bodies of the Company by virtue of the Articles of Association or law. Matters falling within the powers of the Board of Directors primarily include: Management of the company's business and ensuring the operational affairs of the Company Ensuring proper maintenance of accounts, books of accounts and other corporate documents required by law Submitting the annual, extraordinary, and consolidated financial statements to the General Meeting for approval, including interim financial statements, if necessary, and a proposal to distribute profits and other resources of the Company or to cover losses Submitting the annual financial report to the General Meeting, including the Report on the Company's business and state of assets Convening the General Meeting and submitting to it matters falling within its powers for discussions and approval Decisions on the use of funds, except where the use is for a purpose to be decided by the General Meeting Increasing the Company's share capital, in accordance with the Articles of Association Granting of proxy Informing the Supervisory Board about changes in the Company's organizational structure and in legal entities controlled by the Company Informing the Supervisory Board at least once every 3 months about the progress and expected development of the Company's business, strategy, economic performance, risks, and internal control system The Board of Directors of the Company may establish committees and subcommittees as its advisory bodies. The Board of Directors shall consist of 6 members. A member of the Board of Directors may be a legal person or an individual. Members of the Board of Directors shall be appointed and removed by the Supervisory Board. The term of office of the members of the Board of Directors shall be 5 years. A member of the Board of Directors may be re-elected. The Board of Directors meets once a month, usually at the Company´s office. Ordinary meetings shall be convened by the Chair or Vice-Chair of the Board of Directors or, in their absence, by any member of the Board of Directors by written invitation. A quorum of the Board of Directors shall be present if an absolute majority of its members are present at the meeting. A member of the Board of Directors who participates in a meeting by technical means shall be deemed to be present at the meeting. An absolute majority of all members of the Board of Directors, not just those present, shall be required to take a decision on all matters discussed at a meeting of the Board of Directors. Each member of the Board of Directors shall have one vote. In the event of a tie, the vote of the Chair of the Board shall always prevail. Two members of the Board of Directors shall act jointly on behalf of the Company, at least one of whom must be the Chair or Vice-Chair of the Board of Directors. Supervisory Board The Supervisory Board is the supervision body of the Company and shall supervise the exercising of powers by the Board of Directors and the Company's activities. Matters falling under the powers of the Supervisory Board include those entrusted to it by law and the Articles of Association. It especially grants prior approval for matters under Article 13.6 of the Company's Articles of Association or its view on matters under Article 13.7 of the Company's Articles of Association. The Supervisory Board shall be governed by the principles approved by the General Meeting, unless they conflict with the law or the Articles of Association. The Supervisory Board may establish committees and subcommittees as its advisory bodies (e.g., the Remuneration Committee, the Compliance and Ethics Committee, and the Strategic Investments and Acquisitions Committee). The Supervisory Board has six members. Members of the Supervisory Board are elected and dismissed by the General Meeting. The Supervisory Board elects and recalls its Chairman from among its members. The term of office of the members of the Supervisory Board is 5 years. A member of the Supervisory Board may be re-elected. The Supervisory Board shall meet as necessary, but at least twice a year. Ordinary meetings shall be convened by the Chairman by written invitation. The Supervisory Board shall take decisions at its meetings. Meetings of the Supervisory Board shall be chaired by its Chairman. A quorum of the Supervisory Board shall be present if an absolute majority of its members are present at the meeting. The affirmative vote of an absolute majority of all members of the Supervisory Board, not just those present, is required for the adoption of resolutions on all matters discussed by the Supervisory Board. Each member of the Supervisory Board shall have one vote. In the event of a tie, the vote of the Chair of the Board shall always prevail. If all members of the Supervisory Board agree, the Supervisory Board may also adopt a decision in writing outside the Supervisory Board meeting (per rollam voting), based on a proposal by the Chair of the Supervisory Board. Audit Committee and its powers The Audit Committee shall take decisions at its meetings. A quorum of the Audit Committee shall be present if an absolute majority of its members are present at the meeting. The Audit Committee decides by an absolute majority of votes of its members. Each member of the Audit Committee shall have one vote. In the event of a tie, the vote of the Chair of the Audit Committee shall prevail. If all members of the Audit Committee agree, the Audit Committee may also adopt a decision in writing outside the Audit Committee meeting (per rollam voting), based on a proposal by the Chair of the Audit Committee. Meetings of the Audit Committee shall be held as necessary. The frequency of meetings may be determined in the Rules of Procedure of the Audit Committee. A detailed description of the Audit Committee and a description of other committees established by the Company are given below in this section. In 2024, Colt CZ Group made a strategic decision to invest in building its own brand of optic products , establishing Colt Optics in Michigan. Colt Optics now consists of a team of industry experts with the necessary passion and skills to rapidly build a world-class firearm optics business that can work effectively with other companies in the Group, as well as stand on its own. It was created to capture opportunities where Group companies would otherwise be less competitive, or unable to compete when reselling third-party products, as has been the case until now. In the first year of operation, Colt Optics focused on building the core team, establishing the supply chain, and advancing the product development processes needed to prepare for production and the release of eight products in 2026. This year, the Colt Optics team will release several new products, while simultaneously developing the next round of innovations. As a proud partner of its sister company Colt Canada, Colt Optics will provide optic solutions for the Canadian Modular Assault Rifle (CMAR) contract that was awarded to Colt Canada. This contract will provide Canadian Armed Forces with a modern replacement for the current C7/C8 assault rifle fleet, which has been in service for more than 35 years. Colt Optics VMR1-8 Riflescope ANNUAL FINANCIAL 30 REPORT COMPOSITION OF THE COMPANY'S MANAGING BODY: BOARD OF DIRECTORS The following table sets out the name and principal position of each member of the Board of Directors. Name Position on the Board of Directors / Position in senior management Commencement of Current Term of Office Date of Expiration of Current Term of Office Radek Musil Vice-Chairman of the Board of Directors / CEO August 1, 2024 August 1, 2029 Josef Adam Vice-Chairman of the Board of Directors / Legal, Compliance, and Risk Management Director November 1, 2021 November 1, 2026 Jan Zajíc Member of the Board of Directors / CEO of CZUB November 24, 2020 November 24, 2030 Jan Holeček Member of the Board of Directors / Group Sales Director July 1, 2021 July 1, 2026 Vladimír Rada Member of the Board of Directors / CEO of Sellier & Bellot December 1, 2025 December 1, 2030 Jan Drahota Chairman of the Board of Directors January 17, 2020 September 30, 2025 Dennis Veilleux Member of the Board of Directors / President of Colt July 1, 2021 April 1, 2025 The business address of each member of the Board of Directors is náměstí Republiky 2090/3a, 110 00 Prague 1, Czech Republic. RADEK MUSIL CEO and Vice-Chairman of the Board of Directors Radek Musil has been the Vice-Chairman of the Board of Directors of Colt CZ Group SE since August 1, 2024, and CEO of Colt CZ Group since January 1, 2025. From 1999 to 2024, he was CEO and Chairman of the Board at Sellier & Bellot. Previously, he worked for the Czech company TON. He is a graduate of the Faculty of Nuclear and Physical Engineering at the Czech Technical University in Prague and of the Thunderbird School of Global Management in Phoenix, Arizona (USA). JOSEF ADAM Vice-Chairman of the Board of Directors Mr. Adam is a graduate of the Faculty of Law at Charles University in Prague and the joint LL.M. program of Nottingham Trent University and the Faculty of Law at Masaryk University in Brno. Before joining Colt CZ Group, Mr. Adam worked for two years as an attorney and subsequently as a partner at the HAVEL & PARTNERS law firm. He worked for eleven years in various managerial positions at the Prague Airport, Czech Aeroholding, and Czech Airlines, where he served nine years as a member of the Board of Directors. In addition to the legal department, he also managed the finance, HR, and IT departments. At Colt CZ, Mr. Adam is responsible for legal affairs, compliance, and risk management. JAN ZAJÍC Member of the Board of Directors Jan Zajíc graduated from the Faculty of Business and Economics at Mendel University in Brno, with a degree in Economics and Management. Prior to joining CZUB, he held various managerial positions in industrial companies in the Czech Republic and abroad. He started his career in Fatra, a plastic producer based in Napajedla, then in the Continental Barum plants in Otrokovice and Púchov, Slovakia. In the Continental Group, he held various positions in financial management and controlling at its production plant in Kuala Lumpur, Malaysia, and subsequently at the company's headquarters in Hannover, Germany. Mr. Zajíc has been working at CZUB as its Chief Financial Officer since 2019. Since November 2020, he has served as Chief Executive Officer and Chairman of the Board of Directors of CZUB. Mr. Zajíc serves on the Board of Directors at CZUB. JAN HOLEČEK Member of the Board of Directors Jan Holeček studied economics and finance at Bentley University in the USA. In 2016, he started his career at Siemens as a market analyst, and later as a business development specialist. From 2017, he worked at Česká zbrojovka, a. s., first in the position of analyst, then as Marketing Director. From the end of 2019 to December 2021, he was a member of Česká zbrojovka' s Board of Directors, with responsibility for its business activities. Since July 2021, he has been a member of Colt CZ Group's Board of Directors, with responsibility for its business activities. VLADIMÍR RADA Member of the Board of Directors Vladimír Rada has more than twenty years of experience in senior management and finance in international industrial companies. He joined Sellier & Bellot in 2023 as Chief Financial Officer and had held the position of interim CEO from January 2025. Previously, he worked for Lindab, Mitas Tires, and ArcelorMittal, where he held top positions in financial management, controlling, and strategy. He is a graduate of the MBA program at ESMA Barcelona Business School. Vladimír Rada was appointed as a member of the Board of Directors of the Group effective December 1, 2025. Changes in the Board of Directors in 2025 Effective January 1, 2025, the roles of Group CEO and Chairman of the Board of Directors, both positions previously held by Jan Drahota, were separated. Jan Drahota continued to serve as Chairman of the Board of Directors of Colt CZ and Radek Musil, the current CEO of Sellier & Bellot, became the new CEO of Colt CZ. Mr. Dennis Veilleux stepped down from the position of member of the Board of Directors of the Company effective April 1, 2025. Effective September 30, 2025, Mr. Jan Drahota resigned from his positions as a member of the Board of Directors and its Chairman. Jan Zajíc, CEO of Česká zbrojovka a.s., was re-elected as a member of the Board of Directors of Colt CZ following the expiration of his previous five-year term, with effect from November 24, 2025. Vladimír Rada was appointed as a member of the board of directors of the group effective December 1, 2025. BELOW IS A LIST OF COMPANIES IN WHICH MEMBERS OF THE BOARD OF DIRECTORS HAVE BEEN MEMBERS OF ADMINISTRATIVE, MANAGING, OR SUPERVISORY BODIES, OR SHAREHOLDERS/MEMBERS AT ANY TIME IN THE PRIOR FIVE YEARS, INDICATING WHETHER THAT PERSON IS STILL A MEMBER OF THE ADMINISTRATIVE, MANAGING, OR SUPERVISORY BODIES, OR A SHAREHOLDER/MEMBER OF THOSE COMPANIES: Radek Musil None Josef Adam Past positions: ellipse aero s.r.o. - Member of the Supervisory Board .................................. (from December 2020 to January 2022) KOVACO Electric, a.s. - Member of the Supervisory Board B ................... (from January 2020 to April 2021) Current positions: European Holding Company - Member of the Supervisory Board (from November 2021 to date) Jan Zajíc Past positions: None Current positions: Iteuro, a.s. - Chairman of the Supervisory Board (October 2020 to date) Sdružení pro rozvoj Zlínského kraje - Member of Management ............. (September 2021 to date) Podnikatelský klub REGION 47, z. s. - Member of the Audit Committee .............................................................................................................................. (May 2024 to date) Jan Holeček None Vladimír Rada None SwissAA plays an important role in the international standardization and further development of small arms ammunition . It is an active member of the NATO Sub-Group 1 (SG/1) - Small Arms Ammunition Interchangeability within the Land Capability Group Dismounted Soldier Systems (LCGDSS), which operates under the NATO Army Armaments Group (NAAG). This platform brings together government authorities, test centers, and leading manufacturers with the common objective of ensuring interchangeability, safety, and performance in multinational operations. For swissAA, this involvement is of strategic importance. It provides early access to new requirements, technological developments, and upcoming standards. Rather than simply implementing regulatory specifications, swissAA actively contributes its expertise and helps shape future standards. This creates planning reliability, shortens development cycles, and enables the company to precisely align its products with future market needs and operational requirements. Continuous collaboration with international partners further strengthens swissAA's innovative capacity and expands its network of contacts within key decision-making institutions. Insights gained from testing, specifications, and best practices flow directly into the company's development and production processes, significantly enhancing the quality, reliability, and interoperability of its solutions. SwissAA's participation also reinforces its position as a competent and trusted partner in the international arena. Its active role in standardization and qualification reflects the company´s high technical standards and strengthens trust of customers and authorities alike. SwissAA's involvement in SG/1 combines technical excellence with strategic foresight, ensuring it does not merely respond to change in the industry, but actively helps shape the future of the market. Swiss army soldier during training, operating a machine gun with linked 12.7x99 mm ammunition supplied by saltech AG from swissAA ANNUAL FINANCIAL 35 REPORT COMPOSITION OF THE COMPANY'S MANAGING BODY: SUPERVISORY BOARD Name Position Commencement of Current Term of Office Date of Expiration of Current Term of Office Jan Drahota Chairman of the Supervisory Board October 1, 2025 October 1, 2030 David Aguilar Vice-Chairman of the Supervisory Board, Independent July 1, 2023 July 1, 2028 Lubomír Kovařík Vice-Chairman of the Supervisory Board July 1, 2021 July 1, 2026 René Holeček Member of the Supervisory Board July 1, 2023 July 1, 2028 Jana Růžičková Member of the Supervisory Board November 1, 2021 November 1, 2026 Daniel Birmann Member of the Supervisory Board, Independent June 28, 2024 June 28, 2029 Vladimír Dlouhý Member of the Supervisory Board, Independent January 17, 2020 June 30, 2025 The business address of each member of the Supervisory Board is náměstí Republiky 2090/3a, 110 00 Prague 1, Czech Republic. JAN DRAHOTA Chairman of the Supervisory Board since October 1, 2025 (Chairman of the Board of Directors until September 30, 2025) Mr. Drahota studied Finance at the University of Economics in Prague and holds a Master of Business Administration degree from the University of Chicago's Booth School of Business. Before joining the Group at the level of a major shareholder in 2014, Mr. Drahota worked for about 15 years in the financial markets and investment banking field, spending most of his career at the Société Générale Group, most recently as its Managing Director, Head of Central and Eastern Europe, based in Paris. From 2014 to 2015, he served as a senior advisor to the Deputy Minister of Finance of the Czech Republic. He also served as an advisor to the Minister for Health with regards to corporate governance of publicly held hospitals and institutions. Mr. Drahota has broad non-executive director experience and was acting, inter alia, as a representative of the Ministry of Finance on the Supervisory Board of ČEPS, a.s. (the sole Czech energy transmission grid owner and operator). Effective October 1, 2025, Jan Drahota was co-opted to the Supervisory Board, which subsequently elected him as its Chairman DAVID AGUILAR Vice-Chairman of the Supervisory Board (Chairman of the Supervisory Board until September 30, 2025) On March 31, 2013, Mr. Aguilar abandoned his career in U.S. government services, where he had served for 35 years with the U.S. Customs and Border Protection and the United States Border Patrol. During his time there, he acquired extensive knowledge and expertise in law enforcement and administration, domestic and international policing, strategy, tactics, and policy development. He served the last three and a half years of his career as the Acting Commissioner of U.S. Customs and Border Protection, the highest-ranking career officer in the largest U.S. federal law enforcement organization. Mr. Aguilar's leadership, professional integrity and commitment to excellence have earned him numerous awards, including the Presidential Rank Award in 2008, the President's Excellence Award in 2005, the Department of Homeland Security Distinguished Service Medal, the Washington Homeland Security Roundtable Lifetime Achievement Award, and the Institute for Defense and Government Advancement Lifetime Achievement Award. In addition to his role in the Group, David is currently a Principal at Global Security and Innovative Strategies, where he advises clients on a broad range of national homeland and international security matters, including border security and logistics, global trade and commerce, supply chain management and security, risk management, viability assessments, and strategic planning and implementation. Mr. Aguilar focuses on tailoring global risk management solutions related to supply chain security, customs compliance, and all issues related to border protection at and between international ports of entry. Until 30 June 2023, Mr. Aguilar acted as an independent, non-executive member of the Board of Directors. On July 1, 2023, he was appointed by the General Meeting as a member of the Company's Supervisory Board. LUBOMÍR KOVAŘÍK Vice-Chairman of the Supervisory Board Mr. Kovařík graduated from the Military Air Force University and earned a Master of Business Administration degree at Sheffield University. He began his career as a pilot in the Army of the Czech Republic, where he reached the rank of major before he retired from the military in the mid-1990's. He began his civilian career in 1995 as manager of Aulis. He joined Škoda Praha as Production Director one year later, where he worked his way up to the position of Chief Executive Officer. He later worked for Eltodo EG and Mavel. From 2006 to 2017, he served as the CEO of CZUB. From 2018 to 2021, he was President and Chairman of the Board of Directors of the Company. Mr. Kovařík has been on the Supervisory Board of the Company since July 2021. RENÉ HOLEČEK Member of the Supervisory Board (Vice-Chairman of the Supervisory Board until September 30, 2025) Mr. Holeček graduated from Department of Economics and Management in metallurgy at the Technical University in Ostrava. In 1990, he started his career in banking, working at Komerční banka and Pragobanka in various executive positions. Since 1994, Mr. Holeček has been an entrepreneur and industrialist investor. He was part of the landmark privatization of Třinecké železárny, and since then, has built an outstanding track record in the industrial sector. Together with his business partner at the time, he bought CZUB when it was on the verge of bankruptcy and managed to turn it around to become one of the leading manufacturers of small arms worldwide. Since 2014, he has been the Company's largest shareholder. JANA RŮŽIČKOVÁ Member of the Supervisory Board Ms. Růžičková graduated from the University of Economics in Prague. Since 1997, she has been working for several companies belonging to the Group. She acts as the key economics expert and is responsible for auditing, accounting, tax, and legal matters of the Group. She specializes in corporate restructuring and M&A transactions. She is a member of the Supervisory Boards and Boards of Directors of several companies within the Group. She was co-opted into the Company's Supervisory Board effective from November 1, 2021. Prior to that, she served as Secretary and Vice-Chair of the Board of Directors of Colt CZ Group. DANIEL BIRMANN Member of the Supervisory Board Mr. Daniel Birmann was appointed as a member of the Supervisory Board pursuant to a Nomination Agreement made on May 16, 2024 between Colt CZ Group SE and CBC Europe S.à r.l. in connection with the acquisition of 27.7% shareholding in Colt CZ by CBC. For the last few decades, Mr. Birmann has contributed to the success of CBC Global Ammunition Group as a member of the shareholding family, holding different managerial positions in the Group. His extensive experience in the small arms and ammunition sector makes him an expert in the field. Changes in the Supervisory Board in 2025 Mr. Vladimír Dlouhý resigned from his position as a member of the Supervisory Board of the Company, requesting the termination of his function as of June 30, 2025. Effective October 1, 2025, Jan Drahota was co-opted to the Supervisory Board, which subsequently elected him as its Chairman. His appointment as a member of the Supervisory Board was confirmed by the General Meeting held on November 14, 2025. In connection with the appointment of Jan Drahota to the supervisory Board, the current Chairman, Mr. David Aguilar, had been appointed Vice-Chairman of the Supervisory Board. Mr. René Holeček, who previously held the position of Vice-Chairman, will continue to serve as an ordinary member of the Supervisory Board. BELOW IS A LIST OF COMPANIES IN WHICH MEMBERS OF SUPERVISORY BOARD HAVE BEEN MEMBERS OF ADMINISTRATIVE, MANAGING, OR SUPERVISORY BODIES, OR SHAREHOLDERS/MEMBERS AT ANY TIME IN THE PRIOR FIVE YEARS, INDICATING WHETHER THAT PERSON IS STILL A MEMBER OF THE ADMINISTRATIVE, MANAGING, OR SUPERVISORY BODY, OR A SHAREHOLDER/MEMBER OF THOSE COMPANIES: Jan Drahota Past positions: Zero Emissions Debt Finance, a.s. - Statutory Director ................................. (from September 2015 to January 2021) Česká zbrojovka Partners SE - Member of the Board of Directors ...... (from February 2018 to October 2021) ČEPS, a.s. - Member of the Supervisory Board ................................................. (from February 2015 to November 2022) Current positions: DCF Partners, s.r.o. - Statutory Representative (from January 2012 to date) Zero Emissions Debt Finance, a.s. - Chairman of the Administrative Board ........................................................................................................................................... (from September 2015 to date) hypo360.cz, SE - Member of the Board of Directors .................................... (from October 2016 to date) Česká zbrojovka Defence SE - Member of the Board of Directors ...... (from November 2021 - to date) David Aguilar Past positions: Global Security and Innovative Strategies - Principal .................................... (from April 2014 to May 2022) Drone Aviation Holding Corp - Member of the Board of Directors ..... (from May 2019 to April 2021) University of Houston - Borders, Trade, and Immigration Institute External Advisory Board Member .............................................................................. (term expired in 2022) SAP NS2 Advisory Board Member ............................................................................. (from April 2021 to April 2022) Current positions: U.S. Border Patrol Foundation - Member of the Board of Directors (from 2013 to date) Spectredge Wireless, Inc. (Non-publicly held) - Member of the Board of Directors ............................................................................................... (from March 2023 to date) DVA Group, LLC - CEO ..................................................................................................... (from May 2023 to date) René Holeček Past positions: Minezit Property Investments a.s. - Member of the Supervisory Board and sole shareholder .......................................................................................... (from June 2014 to October 2022) Minezit SE - Member of the Supervisory Board ............................................... (from September 2015 to May 2022) Silesia Invests SE - Member of the Supervisory Board (from September 2016 to October 2025) Current positions: TRX, s.r.o. - Executive (from September 2015 to date) Česká zbrojovka Partners SE - Member of the Supervisory Board (from February 2017 to date) Česká zbrojovka Defence SE - Member of the Supervisory Board (from August 2017 to date) BAZADO s.r.o. - Associate (from December 2020 to date) European Holding Company, SE - Chair of the Supervisory Board (from November 2021 to date) M&H Management a.s. - Member of the Supervisory Board (from October 2021 to date) and sole shareholder (from September 2022 to date) CELLINI spol. s r.o. - Associate (from September 2022 to date) Holeček Family Foundation - Founder (from December 2021 to date) Kykulin Trade a.s. - Sole shareholder (from September 2022 to date) OMNES Holding Foundation - Member of the Administrative Board ... (from May 2022 to date) C-EDUCA Foundation - Founder (from November 2023 to date) Lubomír Kovařík Past positions: Česká zbrojovka Partners SE - Chairman of the Board of Directors .... (from February 2018 to October 2021) CZ-SKD Solutions a.s. - Member of the Board of Directors ....................... (from January 2019 to September 2020) Current positions: Česká zbrojovka Defence SE - Chairman of the Board of Directors ... (November 2021 to date) Holeček Family Foundation - Vice-Chairman of the Administrative Board ........................................................................................................................................... (from December 2021 to date) CEVRO Univerzita, z.ú. - Member of the Management Board (from July 2023 to date) PRIMARY Capital a.s. - Member of the Management Board (from August 2023 to date) BIOINVESTIMED a.s. - Member of the Management Board (from November 2023 to date) PRIMARY Capital Services s.r.o. - Executive (from October 2023 to date) TR Brands, s.r.o. - Executive (from June 2024 to date) Daniel Birmann None Jana Růžičková Past positions: CZ AGRO Servis a.s. - Member of the Supervisory Board (from June 2014 to June 2019) V.F.H EKONOMICKÝ SERVIS a.s. - Member of the Supervisory Board .. (from January 2011 to December 2020) RRAIL CARGO a.s. - Member of the Board of Directors (from February 2008 to June 2020) CZ-SKD Solutions a.s. - Member of the Supervisory Board (from November 2017 to September 2020) M&H Management a.s. - Statutory Director and Chairwoman of the Administrative Board (from February 2014 to January 2021) Minezit SE - Member of the Board of Directors (from July 2013 to November 2021) Kykulin Trade a.s. - Chair of the Administrative Board and Statutory Director (from April 2015 to November 2021) Minezit Property Investments a.s. - Member of the Board of Directors (from February 2008 to October 2022) CZ-AUTO SYSTEMS a.s. - Member of the Supervisory Board (from December 2022 to August 2023) Lundmonte s.r.o. - Statutory Representative (from January 2022 to February 2024) Current positions: IT eCompany Management a.s. - Member of the Supervisory Board . (from November 2014 to date) Silesia Invest SE - Member of the Board of Directors (from September 2016 to date) CZ AGRO Servis a.s. - Member of the Supervisory Board (from June 2019 to date) AIT Group - Advanced Industrial Technology Group a.s. - Member of the Supervisory Board (from September 2019 to date) Česká zbrojovka Partners SE - Member of the Board of Directors (from October 2021 to date) M&H Management a.s. - Member of the Board of Directors (from October 2021 to date) European Holding Company, SE - Member of the Board of Directors . (from November 2021 to date) Kykulin Trade a.s. - Member of the Administrative Board (from November 2021 to date) Minezit SE - Chairwoman of the Board of Directors (from November 2021 to date) Holeček Family Foundation - Member of the Supervisory Board (from December 2021 to date) Minezit Property Investments a.s. - Member of the Supervisory Board (from October 2022 to date) Leima Equity Three a.s. - Chairwoman of the Administrative Board (from November 2023 to date) Sequoia, family foundation - Controller (from August 2023 to date) Leima Valeurs a.s. - Member of the Administrative Board (from September 2024 to date) TDNG, family foundation - Controller (from November 2024 to date) Leima Valeurs Prestige a.s. - Member of the Administrative Board (from September 2025 to date)

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