Condensed consolidated interim financial statements for the three-months period ended 31 March 2026

Components of the condensed consolidated interim financial statements:

CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH

Notes are an integral part of these consolidated interim financial statements.

Notes are an integral part of these consolidated interim financial statements.

COLT CZ GROUP SE

1. PARENT COMPANY 9

2. GROUP DESCRIPTION 10

3. SIGNIFICANT EVENTS IN THE CURRENT REPORTING PERIOD 12

4. BASIC PRINCIPLES FOR PREPARATION OF THE INTERIM FINANCIAL STATEMENTS 12

5. SIGNIFICANT ACCOUNTING POLICIES 12

6. ESTIMATES AND SOURCES OF UNCERTAINTY 12

7. FINANCIAL RISK MANAGEMENT 13

8. ACQUISITION OF A 51% STAKE IN SYNTHESIA NITROCELLULOSE AND SYNTHESIA POWER . 13

9. INFORMATION ABOUT SEGMENTS AND REVENUES 15

10. PROFIT AND LOSS INFORMATION 19

11. INTANGIBLE ASSETS 21

12. PROPERTY, PLANT AND EQUIPMENT 22

13. INVENTORIES 23

14. CURRENT AND NON-CURRENT PROVISIONS 24

15. EMPLOYEE BENEFIT LIABILITIES 24

16. BONDS, BANK LOANS AND BORROWINGS 25

17. EQUITY-ACCOUNTED SECURITIES AND INVESTMENTS 25

18. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE 26

19. PROFIT DISTRIBUTION 28

20. TRANSACTIONS WITH RELATED PARTIES 28

21. NET EARNINGS PER SHARE 30

22. CONTINGENT LIABILITIES 30

23. SUBSEQUENT EVENTS 30

1. ‌PARENT COMPANY

   Colt CZ Group SE (the "Consolidating Entity" or the "Company") is a European company registered in the Commercial Register kept by the Municipal Court in Prague on 10 January 2013, with its registered office at náměstí Republiky 2090/3a Nové Město, 110 00 Prague 1, Czech Republic, corporate ID No. 291 51 961. The Company together with its subsidiaries, is one of the world's leading vertically integrated manufacturers of firearms, ammunition, and energetic materials, serving military and law enforcement as well as commercial markets. The Group markets and sells its products mainly under the Colt, CZ (Česká zbrojovka), Colt Canada, Colt Optics, Dan Wesson, Sellier & Bellot, Spuhr, swissAA and 4M Tactical brands. The Group is also active in the production of energetic nitrocellulose through Synthesia Nitrocellulose.

   The following table shows individuals and legal entities with an equity interest greater than 10 percent:

   Shareholder	Ownership percentage as at
   	31 Mar 2026	31 Dec 2025
   Česká zbrojovka Partners SE	46.70%	51.80%
   CBC Europe S.à r.l.	19.00%	21.66%

   Since 2017, the most significant shareholder of the Company has been Česká zbrojovka Partners, SE, based at Opletalova 1284/37, Nové Město, 110 00 Prague 1, Czech Republic.

   The Consolidating Entity and consolidated entities are part of a larger consolidation group of the ultimate parent company European Holding Company, SE, based at Opletalova 1284/37, Nové Město, 110 00 Prague 1, Czech Republic. The ultimate owner of the Company is Mr René Holeček.

   Members of the Board of Directors and Supervisory Board as at the balance sheet date:

   	Board of Directors
   Vice-chair:	Radek Musil
   Vice-chair:	Josef Adam
   Member:	Jan Holeček
   Member:	Jan Zajíc
   Member:	Vladimír Rada
   Member:	Martin Durčák (from 7 April 2026)
   	Supervisory Board
   Chair:	Jan Drahota
   Vice-chair:	David Aguilar
   Vice-chair:	Lubomír Kovařík
   Member:	René Holeček
   Member:	Daniel Birmann
   Member:	Jana Růžičková

   The consolidation group (the "Group") comprises the Company and the consolidated entities of the Group (subsidiaries).

   The consolidation group includes the Company and entities controlled by the Company. All amounts in these financial statements and the related notes are reported in thousands of Czech crowns (CZK '000), which is also the functional currency.

2. ‌GROUP DESCRIPTION

   Company name	Principal activity	Place of foundation and business operation	Consolidation method	Share in voting rights held by the Group
   				31 Mar 2026	31 Dec 2025	31 Mar 2025
   Česká zbrojovka a.s.	Production, purchase and sale of firearms and ammunition	Uherský Brod, Czech Republic	Full	100%	100%	100%
   Česká zbrojovka a.s. Niederlassung Deutschland	Production, purchase and sale of firearms and ammunition	Regensburg, Germany	Full	100%	100%	100%
   Latin America Holding, a.s.	Holding company	Uherský Brod, Czech Republic	Full	100%	100%	100%
   ZBROJOVKA BRNO, s.r.o.	Purchase and sale of firearms and ammunition	Brno, Czech Republic	Full	100%	100%	100%
   CZ - Slovensko s.r.o.	Production, purchase and sale of firearms and ammunition	Bratislava, Slovakia	Full	100%	100%	100%
   Synthesia Nitrocellulose, a.s.*	Production and sale of nitrocellulose and oxycellulose	Pardubice, Czech Republic	Full	51%	-	-
   Synthesia Power, a.s.*	Production and sale of electricity, heat, and steam	Pardubice, Czech Republic	Full	51%	-	-
   INVAZ s.r.o.*	Production of materials for the medical industry	Vítězná, Czech Republic	Full	51%	-	-
   Representative Office of Colt CZ Group SE	Representative Office	Kyiv, Ukraine	Full	100%	100%	-
   Sellier & Bellot Int. a.s.	Production and sale of ammunition	Vlašim, Czech Republic	Full	100%	100%	100%
   Sellier & Bellot a.s.	Production and sale of ammunition	Vlašim, Czech Republic	Full	100%	100%	100%
   Global Defence Trading a.s.	Sale of ammunition	Vlašim, Czech Republic	Full	100%	100%	100%
   Colt CZ Group North America, Inc.	Holding company	Kansas City, USA	Full	100%	100%	100%
   CZ-USA	Purchase and sale of firearms and ammunition	Kansas City, USA	Full	100%	100%	100%
   Colt's Manufacturing Company LLC	Production, purchase and sale of firearms	West Hartford, Connecticut, USA	Full	100%	100%	100%
   Four Horses Apparel, Inc.	Production and sale of clothing and fashion accessories	West Hartford, Connecticut, USA	Full	100%	100%	100%
   Colt Electro Optics, LLC	Production and sale of optics	West Hartford, Connecticut, USA	Full	92%	92%	100%
   Colt Admin, LLC	Holding company	West Hartford, Connecticut, USA	Full	100%	100%	100%

   Company name	Principal activity	Place of foundation and business operation	Consolidation method	Share in voting rights held by the Group
   				31 Mar 2026	31 Dec 2025	31 Mar 2025
   Valley Precision Parts Corp.	Holding company	Greenfield, Massachusetts, USA	Full	100%	100%	-
   Valley Steel Stamp Inc.	Production, purchase and sale of firearms	Greenfield, Massachusetts, USA	Full	100%	100%	-
   Colt Canada Corporation	Production, purchase and sale of firearms and ammunition	Kitchener, Ontario, Canada	Full	100%	100%	100%
   Colt CZ Defence Solutions, s.r.o.	Purchase and sale of firearms and ammunition	Uherský Brod, Czech Republic	Full	100%	100%	100%
   EHC-4M, SE	Holding company	Prague, Czech Republic	Full	100%	100%	100%
   4M SYSTEMS a.s.	Trading in military material	Prague, Czech Republic	Full	100%	100%	100%
   Colt CZ Group International s.r.o.	Holding company	Prague, Czech Republic	Full	100%	100%	100%
   Spuhr i Dalby AB	Manufacture of optical mounting solutions	Löddeköpinge, Sweden	Full	71%	71%	100%
   CZG VIB s.r.o.	Holding company	Prague, Czech Republic	Full	100%	100%	100%
   Colt CZ Insurance Limited	Captive reinsurance company	Saint Peter Port, Guernsey	Full	100%	100%	100%
   swissAA Holding AG	Holding company	Däniken, Switzerland	Full	100%	100%	100%
   aaltech GmbH	Purchase and sale of ammunition	Sollenau, Austria	Full	100%	100%	100%
   ialtech s.r.I.	Purchase and sale of ammunition	Milan, Italy	Full	100%	100%	100%
   galtech AG	Purchase and sale of ammunition	Bad Krozingen, Germany	Full	100%	100%	100%
   saltech AG	Production and sale of ammunition	Däniken, Switzerland	Full	100%	100%	100%
   haltech kft.	Production and sale of ammunition	Balatonfüzfö, Hungary	Full	100%	100%	100%
   CZ BRASIL LTDA	Purchase and sale of firearms and ammunition	Brazil	Equity	49%	49%	49%
   CARDAM s.r.o.	Research and development	Dolní Břežany, Czech Republic	Equity	33%	33%	33%
   EG-CZ Academy	Academy	Quimper, France	Equity	20%	20%	20%
   VIBROM spol. s r.o.	Production	Třebechovice pod Orebem, Czech Republic	Equity	25%	25%	25%
   Colt CZ Hungary Zrt.**	Production of firearms	Hungary	Equity	51%	51%	51%
   * On 6 January 2026, the Group finalized the acquisition of a 51% stake in Synthesia Nitrocellulose, a.s., as well as the acquisition of a 51% stake in Synthesia Power, a.s.
   ** The Group holds 51% equity interest and 50% non-controlling interest in voting rights in Colt CZ Hungary Zrt.

3. ‌SIGNIFICANT EVENTS IN THE CURRENT REPORTING PERIOD The financial position and financial performance of the Group were affected by the following events and transactions on a one-off basis:

   On 6 January 2026, the Group completed the acquisition of a 51% share in Synthesia Nitrocellulose, a.s. and, simultaneously, the acquisition of a 51% share in Synthesia Power, a.s.

   The Group acquired the 51% shares in Synthesia Nitrocellulose, a.s. and Synthesia Power, a.s. for a combination of cash consideration of CZK 5.5 billion and the issuance of 6,174,214 new ordinary shares of the Company at a price of CZK 732 per share. The remaining 49% share in both companies may be acquired by the Group under pre-agreed conditions over the medium term. The purchase price may be adjusted during the first half of 2026 to reflect the actual amount of Synthesia Nitrocellulose, a.s. net debt and working capital as of the acquisition date.

4. ‌BASIC PRINCIPLES FOR PREPARATION OF THE INTERIM FINANCIAL STATEMENTS

   These condensed consolidated interim financial statements for the three-month period ended 31 March 2026 have been prepared in accordance with IAS 34 Interim Financial Reporting.

   The condensed interim consolidated financial statements do not include all notes that are normally included in the annual financial statements. Accordingly, the condensed interim consolidated financial statements must be read together with the consolidated financial statements for the year ended 31 December 2025, which were prepared in accordance with the International Financial Reporting Standards as adopted by the European Union ("IFRS").

   The condensed interim consolidated financial statements have not been reviewed by an auditor in accordance with applicable regulations.

5. ‌SIGNIFICANT ACCOUNTING POLICIES

   The accounting policies that were utilized are consistent with those of the most recent annual financial statements. A number of new or amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.

6. ‌ESTIMATES AND SOURCES OF UNCERTAINTY

   During the preparation of the condensed interim consolidated financial statements, the Group's management makes judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenues and expenses.

   The actual results may differ from these estimates. Apart from this, the Group's future business may be adversely impacted by factors beyond the Group's control. In the preparation of these condensed interim consolidated financial statements, the significant judgements made by management and the key sources of uncertainty in making estimates were the same as those used in the consolidated financial statements for the year ended 31 December 2025.

7. ‌FINANCIAL RISK MANAGEMENT

   The Group's activities give rise to many financial risks: market risk, credit risk and liquidity risk. The condensed interim consolidated financial statements do not include all financial information on risk management and other information required in annual consolidated financial statements. They should be assessed together with the annual consolidated financial statements of the Group as at 31 December 2025. No changes in the rules and policies of managing these risks have been made since the end of 2025.

   The Group uses financial derivatives to manage financial risks. The method of measurement of financial derivatives and information on the fair value of financial assets and liabilities as at 31 March 2026 and 31 December 2025 are disclosed in note 18 Financial assets and liabilities at fair value.

8. ‌ACQUISITION OF A 51% STAKE IN SYNTHESIA NITROCELLULOSE AND SYNTHESIA POWER

   On 6 January 2026, the Group completed the acquisition of a 51% stake in Synthesia Nitrocellulose, a.s., as well as the acquisition of a 51% stake in Synthesia Power, a.s. The Group may acquire the remaining 49% stake in both companies under already agreed terms in the medium term.

   Synthesia Nitrocellulose, a.s. was established in December 2024, and the nitrocellulose production division was spun off into the company from Synthesia, a.s., one of the largest producers of energetic nitrocellulose in Europe and North America. Energetic nitrocellulose is a key raw material for the production of single-base and multi-base propellants and propelling charges and is essential for the production of small-, medium-, and large-calibre ammunition. The company is currently further increasing its production capacity in order to meet growing market demand. Synthesia Nitrocellulose is also a significant producer of industrial nitrocellulose and oxycellulose used in the healthcare industry.

   Synthesia Power, a.s. was established through the spin-off of the former energy division of Synthesia, a.s., which provides the production and supply of utilities for the industrial complex in Semtín and Rybitví.

   From the acquisition date until 31 March 2026, Synthesia Nitrocellulose, a.s. contributed CZK 1,273,278 thousand to the Group's Revenue from the sale of own products, goods and services and contributed a profit of CZK 525,317 thousand to the Group's profit for the period.

   From the acquisition date until 31 March 2026, Synthesia Power, a.s. contributed CZK 256,116 thousand to the Group's Revenue from the sale of own products, goods and services and contributed a profit of CZK 43,218 thousand to the Group's profit for the period.

   Both companies are included in the Group's consolidation as of 1 January 2026.

   1. ‌Consideration transferred

      	Synthesia Nitrocellulose	Synthesia Power
      	1 January 2026	1 January 2026
      	CZK '000	CZK '000
      Monetary settlement	5,500,000	-
      Issued shares (6,174,214 ordinary shares of Colt CZ Group SE)	3,806,630	714,000
      Total consideration transferred	9,306,630	714,000

   2. ‌Assets acquired and liabilities assumed at the acquisition date

      	Synthesia Nitrocellulose	Synthesia Power
      	1 January 2026	1 January 2026
      	CZK '000	CZK '000
      Intangible assets	12,292,837	510
      Property, plant and equipment	3,698,648	1,228,318
      Inventories	598,235	22,414
      Trade and other receivables	353,624	2
      Financial derivatives - current assets	35,409	-
      Other assets current	39,473	11,366
      Cash and cash equivalents	642,286	201,856
      Non-current provisions	-	(36,594)
      Deferred tax liabilities	(3,196,727)	-
      Employee benefit liabilities	(2,429)	(506)
      Current loans and borrowings	(2,594,215)	-
      Trade and other payables	(250,120)	(18,878)
      Other liabilities current	(131,220)	(8,488)
      Tax liabilities	(115,727)	-
      Fair value of acquired identifiable net assets	11,370,074	1,400,000

   3. ‌Goodwill

      	Synthesia Nitrocellulose	Synthesia Power
      	1 January 2026	1 January 2026
      	CZK '000	CZK '000
      Consideration transferred	9,306,630	714,000
      Fair value of acquired identifiable net assets	11,370,074	1,400,000
      Non-controlling interests	5,571,336	686,000
      Goodwill	3,507,892	-

      As at the date of preparation of these financial statements, the purchase price allocation had not yet been finalized. The presented fair values of the acquired identifiable net assets represent provisional amounts and may differ from the final values.

      The purchase price may be subsequently adjusted during the first half of 2026 based on the actual level of net debt and working capital of Synthesia Nitrocellulose, a.s. as at the acquisition date.

9. ‌INFORMATION ABOUT SEGMENTS AND REVENUES

   The Group's operations are organized into the following operating segments as at 31 March 2026 and 31 March 2025 - the Firearms and Accessories segment, the Ammunition segment and Energetics segment. The Group has recognized the Energetics segment since 1 January 2026 in connection with the acquisition of a 51% stake in Synthesia Nitrocellulose, a.s. and Synthesia Power, a.s.

   The structure of the segment information corresponds to the structure of the Group's principal business activities and the structure of financial ratios and information that are regularly monitored and evaluated by the Group's management.

   Firearms and accessories segment

   The firearms and accessories 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 uses.

   Ammunition segment

   The ammunition segment includes the design, production and sale of small-caliber ammunition, including pistol and rifle ammunition for military and law enforcement, sport shooting and hunting. The production of shotgun shells complements the small-caliber ammunition product portfolio. The ammunition segment also includes the production and sale of grenades, other military material and ammunition manufacturing machinery, including its development.

   Energetics segment

   The energetics segment includes the development, production, and sale of energetic nitrocellulose used primarily in the manufacture of propellants and propelling charges for ammunition, as well as industrial nitrocellulose, oxycellulose for medical applications, and selected chemical products. The segment also includes the production and supply of utilities for the industrial complex in Semtín and Rybitví.

   The Group financing includes issued bonds, bank loans, the fair values of related derivative instruments, related interest expenses or income, and gains/losses from derivative transactions.

   This area is not considered by the Group to be a separate operating segment, as it is neither managed nor evaluated by the Group's management as an independent segment. Since these items cannot be reliably allocated to individual reportable operating segments, they are presented separately.

   The tables below provide information on operating segments for the three-month period ended 31 March 2026 and as at 31 March 2026 (in CZK '000).

   2026	Firearms and accessories segment	Ammunition segment	Energetics segment	Group financing	Elimination of inter-segment transactions	Total
   External revenues	3,480,796	2,307,239	1,529,394	-	-	7,317,429
   Inter-segment revenues	16,863	298,987	-	-	(315,850)	-
   Revenues from the sale of own products, goods and services	3,497,659	2,606,226	1,529,394	-	(315,850)	7,317,429
   Other operating income	14,465	77,690	166	-	(2,252)	90,069
   Change in inventories developed internally	694,804	(79,068)	(334,668)	-	-	281,068
   Own work capitalized	57,083	1,467	-	-	-	58,550
   Raw materials and consumables used	(2,247,931)	(1,253,881)	(403,005)	-	289,738	(3,615,079)
   Services	(551,694)	(189,972)	(51,594)	-	28,151	(765,109)
   Personnel costs	(892,638)	(443,951)	(108,595)	-	-	(1,445,184)
   Depreciation and amortization	(164,828)	(221,398)	(463,709)	-	-	(849,935)
   Other operating expenses	(58,120)	(17,904)	(103,913)	-	213	(179,724)
   Allowances	(7,161)	5,912	(8,114)	-	-	(9,363)
   Operating profit	341,639	485,121	55,962	-	-	882,722
   Interest income	64,231	3,073	3,032	131,688	(22,604)	179,420
   Interest expense	(1,894)	(22,501)	-	(374,553)	22,604	(376,344)
   Other financial income	185,426	83,234	(17,248)	-	-	251,412
   Other financial expenses	(22,045)	(29,956)	(145)	-	-	(52,146)
   Gains or losses from derivative transactions	86,992	(4,813)	9,261	(61,373)	-	30,067
   Share in the profit of associates after tax	2,017	-	-	-	-	2,017
   Profit before tax	656,366	514,158	50,862	(304,238)	-	917,148
   Income tax	(136,598)	(116,450)	(10,047)	63,890	-	(199,205)
   Profit for the period	519,768	397,708	40,815	(240,348)	-	717,943

   31 Mar 2026	Firearms and accessories segment	Ammunition segment	Energetics segment	Group financing	Elimination of inter-segment transactions	Total
   Total assets per segment	36,494,942	18,738,099	19,343,221	311,702	(2,348,187)	72,539,777
   Acquisition of tangible and intangible fixed assets	191,665	102,008	206,228	-	-	499,901
   Equity-accounted investees	2,017	-	-	-	-	2,017
   Total liabilities per segment	(7,982,567)	(7,623,734)	(12,264,721)	(22,891,751)	2,348,187	(48,414,586)

   The tables below provide information on operating segments for the three-month period ended 31 March 2025 and as at 31 March 2025 (in CZK '000).

   2025	Firearms and accessories segment	Ammunition segment	Group financing	Elimination of inter-segment transactions	Total
   External revenues	2,823,615	2,688,606	-	-	5,512,221
   Inter-segment revenues	15,590	10,634	-	(26,224)	-
   Revenues from the sale of own products, goods and services	2,839,205	2,699,240	-	(26,224)	5,512,221
   Other operating income	19,294	17,126	-	(253)	36,167
   Change in inventories developed internally	279,320	166,524	-	-	445,844
   Own work capitalized	44,375	28,888	-	-	73,263
   Raw materials and consumables used	(1,404,711)	(1,411,315)	-	10,862	(2,805,164)
   Services	(503,832)	(178,533)	-	15,384	(666,981)
   Personnel costs	(817,766)	(458,347)	-	-	(1,276,113)
   Depreciation and amortization	(156,741)	(228,621)	-	-	(385,362)
   Other operating expenses	(71,680)	(34,009)	-	231	(105,458)
   Allowances	(13,511)	4,562	-	-	(8,949)
   Operating profit	213,953	605,515	-	-	819,468
   Interest income	100,604	40,820	155,009	(44,070)	252,363
   Interest expense	(32,972)	(13,757)	(310,695)	44,070	(313,354)
   Other financial income	22	3,357	-	-	3,379
   Other financial expenses	(59,022)	(80,770)	-	-	(139,792)
   Gains or losses from derivative transactions	109,135	(58)	(41,321)	-	67,756
   Share in the profit of associates after tax	1,582	-	-	-	1,582
   Profit before tax	333,302	555,107	(197,007)	-	691,402
   Income tax	(91,209)	(117,655)	41,371	-	(167,493)
   Profit for the period	242,093	437,452	(155,636)	-	523,909

   31 Mar 2025	Firearms and accessories segment	Ammunition segment	Group financing	Elimination of inter-segment transactions	Total
   Total assets per segment	27,752,326	21,196,350	166,838	(2,822,543)	46,292,971
   Acquisition of tangible and intangible fixed assets	103,177	77,464	-	-	180,641
   Equity-accounted investees	1,583	-	-	-	1,583
   Total liabilities per segment	(5,807,155)	(5,285,304)	(17,431,916)	2,822,543	(25,701,832)

   1. ‌Geographical breakdowns

      The table below specifies revenues from the sale of own products, goods and services by the most significant regions (in CZK '000).

      Sales to external customers
      	31 Mar 2026	31 Mar 2025
      Czech Republic (home country)	1,046,611	532,146
      United States	1,656,124	2,408,856
      Canada	906,722	201,870
      Europe (excluding the Czech Republic)	3,222,960	1,825,055
      Africa	71,733	64,440
      Asia	270,911	306,908
      Latin America	122,811	149,751
      Other	19,557	23,195
      Total	7,317,429	5,512,221

      The Group has production facilities in the Czech Republic, USA, Canada, Sweden, Switzerland and Hungary.

      Carrying amount of property, plant and equipment
      	31 Mar 2026	31 Dec 2025
      Czech Republic (home country)	12,646,726	7,473,956
      United States	1,142,083	1,056,398
      Canada	231,570	217,649
      Sweden	26,987	28,228
      Switzerland	854,958	1,029,837
      Hungary	91,712	90,318
      Total	14,994,036	9,896,386

      Carrying amount of intangible assets
      	31 Mar 2026	31 Dec 2025
      Czech Republic (home country)	18,888,825	7,066,925
      United States	1,741,306	1,686,047
      Canada	418,447	418,025
      Sweden	265,427	273,009
      Switzerland	13,386	19,479
      Total	21,327,391	9,463,485

      Goodwill
      	31 Mar 2026	31 Dec 2025
      Czech Republic (home country)	9,618,892	6,110,998
      United States	2,771,193	2,680,133
      Canada	187,695	181,527
      Sweden	66,840	66,930
      Total	12,644,620	9,039,588

10. ‌PROFIT AND LOSS INFORMATION

    1. ‌Financial result

       An interest expense of CZK 376,344 thousand (CZK 313,354 thousand in the three-month period ended 31 March 2025) is mainly represented by interest incurred on issued bonds and bank loans of CZK 316,620 thousand (CZK 254,271 thousand in the three-month period ended 31 March 2025). Information on the issued bonds and bank loans is disclosed in Note
       
       

       16. An interest expense of CZK 59,724 thousand (CZK 59,083 thousand in the three-month period ended 31 March 2025) mainly represents interest from interest rate swaps and cross-currency interest rate swaps.

       These swaps also generate interest income in the amount of CZK 131,688 thousand (CZK 155,009 thousand in the three-month period ended 31 March 2025) presented under Interest income position. The remaining interest income in the amount of CZK 47,732 thousand (CZK 97,354 thousand in the three-month period ended 31 March 2025) mainly represents interest from deposits.

       Other financial income in the amount of CZK 251,412 thousand (CZK 3,379 thousand in the three-month period ended 31 March 2025) represents net foreign exchange gain of CZK 169,696 thousand and gain on settlements of commodity swaps of CZK 81,716 thousand.
       
       Other financial expenses of CZK 52,146 thousand (CZK 139,792 thousand for the period from 1 January to 31 March 2025) mainly represent bank fees of CZK 23,892 thousand and loss on settlements of commodity swaps in the amount of CZK 14,131 thousand.
       
       

       Other financial expenses in the three-month period ended 31 March 2025 represented foreign exchange loss of CZK 101,425 thousand and bank fees in total amount of CZK 31,326 thousand.

       Gains or losses from derivative transactions - The Group manages its exposure to currency, commodity and interest rate risk by using derivative instruments. As not all the derivatives are accounted for as hedging instruments, the amount of the financial result was impacted by a change in fair value of open financial derivatives held for trading. In the three-month period ended 31 March 2026, the Group recognized gain from derivative instruments of CZK 30,067 thousand (gain CZK 67,756 thousand in the three-month period ended 31 March 2025).
       
       

       In other comprehensive income for the three-month period ended 31 March 2026, the Group recognized loss of CZK 381,105 thousand from the remeasurement of financial derivatives classified as hedging instruments (gain of CZK 156,473 thousand in the three-month period ended 31 March 2025).

    2. ‌Income tax

       The reported income tax expense is based on an estimate of the weighted average effective annual income tax rate expected for the full financial year. The estimated average annual tax rate for the period from 1 January to 31 March 2026 is 21.7% (24.23% for the period from 1 January

       to 31 March 2025).

       The amount of the effective tax rate is affected by the level of tax rates in individual countries where the Group operates (Czech Republic - 21%, USA - 26-28%, Canada - 25%, Sweden - 20.6%, Switzerland - 16%, Hungary - 9%).

11. ‌INTANGIBLE ASSETS

    The following tables summarize changes in intangible assets from 1 January to 31 March 2026 (in CZK '000):

    Acquisition costs

    GROUP	Opening balance	Business combination -balance at the date of entry into consolidation	Additions	Disposals	Transfers	Impact of FX rate fluctuations	Closing balance
    Software	241,593	39	1,252	(818)	12,293	1,504	255,863
    Intangible assets under construction or being acquired	173,060	2,236	52,973	-	(51,190)	791	177,870
    Other intangible assets	996,725	-	-	-	-	29,161	1,025,886
    Trademarks and logos	3,668,516	59,569	-	-	-	43,479	3,771,564
    Capitalized development	697,564	3,687	13,458	(790)	38,897	1,141	753,957
    Concessions, license rights and other intellectual property rights	314,875	1,060	-	(6)	-	4,193	320,122
    Contractual customer relations	6,097,294	12,226,756	-	-	-	18,028	18,342,078
    Total	12,189,627	12,293,347	67,683	(1,614)	-	98,297	24,647,340

    Accumulated amortization and carrying value

    GROUP	Opening balance	Amortization	Disposals	Changes in allowances	Impact of FX rate fluctuations	Closing balance	Carrying amount
    Software	(170,834)	(5,968)	814	-	(739)	(176,727)	79,136
    Intangible assets under construction or being acquired	(25)	-	-	-	-	(25)	177,845
    Other intangible assets	(525,148)	(15,103)	-	-	(14,587)	(554,838)	471,048
    Trademarks and logos	-	-	-	-	-	-	3,771,564
    Capitalized development	(294,933)	(8,563)	490	-	-	(303,006)	450,951
    Concessions, license rights and other intellectual property rights	(247,456)	(5,666)	6	-	(835)	(253,951)	66,171
    Contractual customer relations	(1,487,746)	(525,609)	-	-	(18,047)	(2,031,402)	16,310,676
    Total	(2,726,142)	(560,909)	1,310	-	(34,208)	(3,319,949)	21,327,391

    The Group's management has considered and assessed all assumptions used in determining the value-in-use calculations of the recoverable amount of the cash generating unit to which goodwill and intangible assets with indefinite useful lives belong. The Group's management has concluded that the assumptions disclosed in the most recent annual financial statements are still appropriate and that there is no indication of impairment.

12. ‌PROPERTY, PLANT AND EQUIPMENT

    The following tables summarize the changes in property, plant, and equipment from 1 January to 31 March 2026 (in CZK '000):

    Acquisition costs

    GROUP	Opening balance	Business combination -balance at the date of entry into consolidation	Additions	Disposals	Transfers	Impact of FX fluctuations	Closing balance
    Buildings	3,203,530	2,015,664	10,051	(6,013)	1,703	21,122	5,246,057
    Machinery, instruments and equipment	8,233,275	991,054	24,884	(99,942)	43,547	44,350	9,237,168
    Other non-current tangible assets	123,960	5	5,738	(159)	4,345	3,514	137,403
    Other non-current tangible assets under construction	450,387	1,124,068	345,836	-	126,317	6,408	2,053,016
    Prepayments made for non-current tangible assets	344,017	106,469	45,297	-	(175,912)	(3,097)	316,774
    Lands	1,803,408	689,706	412	(212)	-	9,797	2,503,111
    Total	14,158,577	4,926,966	432,218	(106,326)	-	82,094	19,493,529

    Accumulated depreciation and carrying value

    GROUP	Opening balance	Depreciation	Disposals	Changes in allowances	Impact of FX rate fluctuations	Closing balance	Carrying amount
    Buildings	(974,045)	(72,444)	5,988	-	(5,188)	(1,045,689)	4,200,368
    Machinery, instruments, and equipment	(3,201,969)	(211,256)	76,292	385	(15,069)	(3,351,617)	5,885,551
    Other non-current tangible assets	(77,014)	(5,326)	-	-	(2,182)	(84,522)	52,881
    Other non-current tangible assets under construction	(9,166)	-	-	(8,499)	-	(17,665)	2,035,351
    Prepayments made for non-current tangible assets	-	-	-	-	-	-	316,774
    Lands	-	-	-	-	-	-	2,503,111
    Total	(4,262,194)	(289,026)	82,280	(8,114)	(22,439)	(4,499,493)	14,994,036

    Machinery, instruments and equipment and Buildings as at 31 March 2026 include right-of-use assets arising from lease contracts of CZK 89,279 thousand (CZK 93,715 thousand as at 31 December 2025).

    Additions to the right-of-use assets arising from lease contracts amounted to CZK 915 thousand in 2026 (CZK 10,215 thousand in the three-month period ended 31 March 2025). These primarily include lease contracts for warehouses and office space, as well as cars and technical office equipment.

    Depreciation for the three-month period ended 31 March 2026 includes depreciation of right-of-use assets of CZK 6,798 thousand (CZK 6,766 thousand in the three-month period ended 31 March 2025).

13. ‌INVENTORIES

    The structure of inventories as at 31 March 2026 and 31 December 2025 is as follows (in CZK '000):

    	31 Mar 2026	31 Dec 2025
    Material	3,761,749	3,184,995
    Finished products	4,022,736	3,342,292
    Goods	456,821	510,292
    Work-in-progress and semi-finished products	2,209,179	2,141,625
    Prepayments made for inventories	374,578	324,938
    Total	10,825,063	9,504,142

    The valuation of redundant, obsolete, and slow-moving inventories is decreased to the selling price net of the costs of sale. As at 31 March 2026, allowances for inventories of CZK 679,998 thousand (CZK 586,470 thousand as at 31 December 2025) were included in the statement of financial position. In the three-month period ended 31 March 2026, an impairment loss of CZK 4,053 thousand was recognized in profit and loss (loss of CZK 10,009 thousand in the three-month period ended 31 March 2025).

14. ‌CURRENT AND NON-CURRENT PROVISIONS

    The table below shows current and non-current provisions as at 31 March 2026 and 31 December 2025 (CZK '000):

    	31 Mar 2026	31 Dec 2025
    Warranty repairs	27,036	25,693
    Other current provisions	51,237	48,471
    Total current provisions	78,273	74,164
    Warranty repairs	48,841	48,091
    Share-based payments	37,940	37,940
    Other non-current provisions	39,474	2,785
    Total non-current provisions	126,255	88,816
    Total provisions	204,528	162,980

15. ‌EMPLOYEE BENEFIT LIABILITIES

    Employee benefit liabilities (CZK '000):

    	31 Mar 2026	31 Dec 2025
    Net employee benefit liability	96,799	94,087
    Liability for medical (healthcare) benefits	117,758	112,604
    Total net employee benefit liability	214,557	206,691
    Non-current net employee benefit liabilities	196,471	189,531
    Current net employee benefit liabilities	18,086	17,160
    Total net employee benefit liability	214,557	206,691

16. ‌BONDS, BANK LOANS AND BORROWINGS

    			31 Mar 2026	31 Dec 2025
    	Maturity date	Interest rate	CZK '000	CZK '000
    Issued bonds	23 Mar 2027	6M Pribor + margin % p. a.	4,517,000	4,517,000
    Issued bonds - unpaid interest			4,109	64,408
    Issued bonds - issue cost			(5,106)	(6,397)
    Issued bonds	27 Jan 2029	6M Pribor + margin % p. a.	1,998,000	1,998,000
    Issued bonds - unpaid interest			17,298	42,705
    Issued bonds - issue cost			(5,456)	(5,931)
    Issued bonds	18 May 2030	6M Pribor + margin % p. a.	3,000,000	3,000,000
    Issued bonds - unpaid interest			60,077	19,727
    Issued bonds - issue cost			(6,631)	(7,027)
    Issued bonds	7 May 2031	6.1% p. a.	6,000,000	6,000,000
    Issued bonds - unpaid interest			147,417	55,917
    Issued bonds - issue cost			(75,538)	(56,012)
    Syndicated loan	7 May 2029	3M Euribor + margin % p. a.	4,640,178	5,456,818
    Syndicated loan - unpaid interest			-	-
    Syndicated loan - drawing cost			(48,054)	(52,140)
    Bank loan	31 Jan 2027	12M Euribor + margin % p. a.	2,623,105	-
    Other			256,849	240,106
    Total			23,123,248	21,267,174
    Repayments in the following year			4,208,648	1,509,247
    Repayments in future years			18,914,600	19,757,927

17. ‌EQUITY-ACCOUNTED SECURITIES AND INVESTMENTS

    The carrying amount of equity-accounted investments changed as follows in the three-month period ended 31 March 2026 (in CZK '000):

    	31 Mar 2026
    Beginning of the period	45,006
    Share in the profit of associates after tax	2,017
    End of the period	47,023

18. ‌FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE

    This note provides an update on the judgements and estimates made by the Group in determining the fair value of financial instruments since the last annual financial statements.

    As of 31 March 2026, assets and liabilities consisting of financial derivatives and liabilities arising from options to purchase non-controlling interests are measured at fair value.

    1. ‌Financial derivatives

       ‌The fair value of interest rate swaps, commodity swaps, currency forwards and swaps is based on the present value of future cash flows based on market data as yield curves of relevant interest rate and commodity swaps, spot foreign exchange rates and forward points. For currency and interest rate options, the respective option model is used (primarily the Black-Scholes model or its modifications), with the specific input data including the volatility of currency exchange rates and interest rates reflecting specific realization rates of individual transactions ("volatility smile"). The fair value of cross-currency interest rate swaps is determined as the present value of future cash flows. The estimate of future variable cash flows is based on quoted swap rates and interbank deposit rates. The estimated future cash flows are discounted using a yield curve constructed from the above sources.

       The fair values of derivative transactions are classified as level 2, whereby the market data used in models originate from active markets.

       The following table provides an overview of nominal values and positive or negative fair values of open trading derivatives as at 31 March 2026 and 31 December 2025 (CZK '000):

       31 Mar 2026					31 Dec 2025
       		Fair value			Fair value
       CZK '000	Nominal	Positive	Negative	Nominal	Positive	Negative
       Currency put options	170,664	8,902	-	165,056	13,307	-
       Currency call options	170,664	-	109	165,056	-	7
       Interest rate put options	1,104,842	-	34	1,129,241	-	92
       Interest rate call options	1,994,687	7,962	-	2,063,931	11,384	-
       Currency forwards	1,384,288	152,366	17,220	2,764,923	210,486	5,108
       Currency swaps	3,558,676	73,698	14,998	1,119,136	56,098	-
       Total	8,383,821	242,928	32,361	7,407,343	291,275	5,207

       The following table provides an overview of nominal values and positive or negative fair values of open hedging derivatives as at 31 March 2026 and 31 December 2025 (CZK '000):

       31 Mar 2026				31 Dec 2025
       		Fair value			Fair value
       CZK '000	Nominal	Positive	Negative	Nominal	Positive	Negative
       Interest rate swaps	5,074,512	26,194	27,184	5,821,888	20,345	101,329
       Currency put options	213,330	12,597	-	330,112	28,308	-
       Currency call options	213,330	-	579	330,112	-	337
       Currency swaps	2,189,077	135,838	6,423	2,497,824	298,705	-
       Currency forwards	7,208,393	205,071	32,024	4,780,755	354,329	-
       Cross currency interest rate swap - USD	3,212,700	91,854	-	3,212,700	222,720	-
       Cross currency interest rate swap - EUR	1,500,000	104,266	-	1,500,000	123,810	-
       Cross currency interest rate swap - CHF	724,200	-	148,035	724,200	-	131,436
       Commodity swaps - Zinc	96,368	14,023	-	127,075	11,002	-
       Commodity swaps - Copper	782,936	202,053	-	1,032,427	244,178	-
       Commodity swaps - Lead	264,762	-	44,152	577,996	1,607	43,557
       Total	21,479,607	791,895	258,397	20,935,089	1,305,004	276,659

    2. ‌Liabilities arising from options to purchase non-controlling interests

       	31 Mar 2026	31 Dec 2025
       Option to purchase non-controlling interests - Spuhr i Dalby	149,495	147,336
       Option to purchase non-controlling interests - Synthesia Nitrocellulose	8,320,250	-
       Total	8,469,745	147,336
       Non-current	8,469,745	147,336
       Current	-	-
       Total	8,469,745	147,336

       Liabilities arising from options to purchase non-controlling interests in Spuhr i Dalby AB and Synthesia Nitrocellulose, a.s. are measured at fair value corresponding to the present value of the consideration payable upon the exercise of put options held by the owners of these non-controlling interests. These liabilities amounting to CZK 8,469,745 thousand (CZK 147,336 thousand as at 31 December 2025) are recognized under non-current other financial liabilities.

       The remaining financial assets and liabilities are measured at amortized cost. The fair value of all these instruments does not significantly differ from their carrying amount, as the interest rate is close to current market rates, or they are short-term.

19. ‌PROFIT DISTRIBUTION

    During the period ended 31 March 2026, the Company had not yet decided on the allocation of profit for the year 2025.

20. ‌TRANSACTIONS WITH RELATED PARTIES

    The Group's related parties include subsidiaries and associated companies as well as key management personnel and their family members. Transactions with related parties are part of the ordinary course of business and are implemented at arm's length.

    The following table provides an overview of transactions with related parties as at 31 March 2026 and for the three-month period ended 31 March 2026 (in CZK '000):

    Entity	Relationship	Liabilities as at 31 Mar 2026	Purchases from 1 Jan to 31 Mar 2026	Receivables as at 31 Mar 2026	Sales from 1 Jan to 31 Mar 2026
    Keriani, a.s.	Company in the ultimate owner's group	452	1,429	2,029	-
    CZ-SKD Solutions a.s.	Company in the ultimate owner's group	1,813	1,995	-	560
    CZ-AUTO SYSTEMS a.s.	Company in the ultimate owner's group	34	106	20,750	14,651
    ITeuro, a.s.	Company in the ultimate owner's group	12	2,863	-	-
    B:TECH, a.s.	Company in the ultimate owner's group	48	48	-	-
    Sinterfire Inc.	Company in the ultimate owner's group	7,734	6,198	-	-
    Fritz Werner Industrie-Ausrüstungen GmbH	Company in the ultimate owner's group	-	258	-	-
    Magtech Ammunition Company, Inc.	Company in the ultimate owner's group	-	7,618	136,136	207,660
    VIBROM spol. s r.o.	associated company	36,960	42,397	7,268	1,058
    CARDAM s.r.o.	associated company	745	1,486	330	273
    CZ BRASIL LTDA	associated company	-	-	1,008	-
    Colt CZ Hungary Zrt.	associated company	60,972	26,112	144,763	7,380
    EG-CZ Academy	associated company	61	182	-	-
    Total		108,831	90,692	312,284	231,582

    The following table provides an overview of transactions with related parties as at 31 December 2025 and for the three-month period ended 31 March 2025 (in CZK '000):

    Entity	Relationship	Liabilities as at 31 Dec 2025	Purchases from 1 Jan to 31 Mar 2025	Receivables as at 31 Dec 2025	Sales from 1 Jan to 31 Mar 2025
    Keriani, a.s.	Company in the ultimate owner's group	567	1,358	2,029	-
    CZ-SKD Solutions a.s.	Company in the ultimate owner's group	-	536	16,436	603
    CZ-AUTO SYSTEMS a.s.	Company in the ultimate owner's group	8	77	235	12,470
    ITeuro, a.s.	Company in the ultimate owner's group	466	2,700	2,755	-
    Sinterfire Inc.	Company in the ultimate owner's group	4,466	5,093	-	-
    Fritz Werner Industrie-Ausrüstungen GmbH	Company in the ultimate owner's group	-	44,799	-	-
    Magtech Ammunition Company, Inc.	Company in the ultimate owner's group	16	102	22,449	449,463
    Companhia Brasileira de Cartuchos S.A.	Company in the ultimate owner's group	1,699	-	-	-
    Metallwerk Elisenhütte GmbH	Company in the ultimate owner's group	-	-	2,188	85,834
    VIBROM spol. s r.o.	associated company	24,978	35,138	4,498	445
    CARDAM s.r.o.	associated company	935	292	-	287
    CZ BRASIL LTDA	associated company	-	63	932	-
    Colt CZ Hungary Zrt.	associated company	59,933	29,988	161,475	61,910
    EG-CZ Academy	associated company	61	-	-	-
    Total		93,129	120,146	212,997	611,012

    Key management personnel

    During the three-month period ended 31 March 2026, key management personnel included all members of the Board of Directors and Supervisory Board. Short-term benefits provided to key management personnel (including gross remuneration, annual bonuses, health and social insurance and additional pension insurance) amounted to CZK 9,368 thousand (CZK 9,649 thousand for the period from 1 January to 31 March 2025).

    The Company provided no other benefits (e.g. monetary or non-monetary benefits related to a member's termination of office from a body) to its key management personnel.

21. ‌NET EARNINGS PER SHARE

    Basic and diluted earnings per share were determined as follows:

    	31 Mar 2026	31 Mar 2025
    Numerator (CZK '000)
    Profit after tax attributable to the owner of the parent company	437,291	523,909
    Denominator (average number of shares in thousands)
    Basic	57,895	56,463
    Diluted	57,895	56,463
    Net earnings per share (CZK/share) attributable to the owner of the parent company
    Basic	8	9
    Diluted	8	9

22. ‌CONTINGENT LIABILITIES

    As at 31 March 2026, the Group has issued no guarantees in respect of third-party liabilities.

    As at 31 March 2026 and 31 December 2025, the Group has no significant legal disputes in which it acts as a defendant, nor any significant investment, environmental or other off-balance sheet commitments.

    The Group's management regularly monitors and evaluates the development of individual legal claims and litigations. The Group's management is currently not aware of the existence of potential losses that may have a significant unfavourable impact on the Group's results of operation and its cash flows.

23. ‌SUBSEQUENT EVENTS

With effect from 7 April 2026, Mr Martin Durčák was elected as a member of the Company's

Board of Directors.

On 13 April 2026, the Company announced the admission of its ordinary shares to trading on the regulated market of Euronext Amsterdam, operated by Euronext Amsterdam N.V. The admission follows the resolution of the General Meeting held on 10 April 2026, which approved the submission of the application for a dual listing on Euronext Amsterdam.

The Group is closely monitoring the ongoing armed conflict in the Middle East and continuously assessing its potential impacts on its business. As at the date of preparation of these financial statements, no direct material impact on the Group's financial performance has been identified; however, indirect impacts cannot be ruled out, in particular those related to developments in energy prices, logistics costs and overall market uncertainty. The Group therefore continues to evaluate possible future scenarios and to implement measures aimed at mitigating any potential adverse effects on its financial performance.

No other subsequent events occurred up to the date of preparation of the financial statements that would have a material impact on the condensed consolidated interim financial statements for the reporting period.