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Colt CZ : Condensed consolidated interim financial statements for the three-months period ended 31 March 2026
Colt CZ : Condensed consolidated interim financial statements for the three-months period ended 31 March
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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2026 (unaudited) Name of the company: Colt CZ Group SE Registered office: náměstí Republiky 2090/3a, Nové Město, 110 00 Prague 1, Czech Republic Legal form: European Company Id. no.: 291 51 961 Components of the condensed consolidated interim financial statements: Consolidated statement of profit and loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated cash flow statement Notes to condensed consolidated interim financial statements These condensed consolidated interim financial statements were prepared and approved on 20 May 2026. CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD FROM 1 JANUARY TO 31 MARCH 31 Mar 2026 31 Mar 2025 Note CZK '000 CZK '000 Revenues from the sale of own products, goods and services 9.1 7,317,429 5,512,221 Other operating income 90,069 36,167 Change in inventories developed internally 281,068 445,844 Own work capitalized 58,550 73,263 Raw materials and consumables used (3,615,079) (2,805,164) Services (765,109) (666,981) Personnel costs (1,445,184) (1,276,113) Depreciation and amortization (849,935) (385,362) Other operating expenses (179,724) (105,458) Allowances (9,363) (8,949) Operating profit 882,722 819,468 Interest income 10.1 179,420 252,363 Interest expense 10.1 (376,344) (313,354) Other financial income 10.1 251,412 3,379 Other financial expenses 10.1 (52,146) (139,792) Gains or losses from derivative transactions 10.1 30,067 67,756 Share in the profit of associates after tax 2,017 1,582 Profit before tax 917,148 691,402 Income tax 10.2 (199,205) (167,493) Profit for the period 717,943 523,909 Items that may be subsequently reclassified to the statement of profit or loss Cash flow hedges - remeasurement of effective portion of hedging instruments (381,105) 156,473 Foreign currency translation of foreign operations 103,766 (132,837) Other comprehensive income (277,339) 23,636 Comprehensive income for the period 440,604 547,545 Profit for the period attributable to: Owner of the parent company 437,291 523,909 Non-controlling interests 280,652 - Comprehensive income for the period attributable to: Owner of the parent company 170,035 547,545 Non-controlling interests 270,569 - Net earnings per share attributable to the owner of the parent company (CZK per share) Basic 21 8 9 Diluted 21 8 9 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 31 Mar 2026 31 Dec 2025 Note CZK ' 000 CZK ' 000 ASSETS Non-current assets Intangible assets 11 21,327,391 9,463,485 Goodwill 9 12,644,620 9,039,588 Property, plant and equipment 12 14,994,036 9,896,386 Equity-accounted securities and investments 17 47,023 45,006 Financial derivatives 18 310,307 886,157 Trade and other receivables 11,974 11,730 Other receivables 2,114 2,115 Deferred tax assets 163,699 95,345 Total non-current assets 49,501,164 29,439,812 Current assets Inventories 13 10,825,063 9,504,142 Trade and other receivables 3,687,762 2,182,858 Provided loans 26,979 25,589 Other financial assets 11,182 10,817 Financial derivatives 18 724,516 710,122 Other receivables 699,650 729,432 Tax receivables 173,499 213,875 Cash and cash equivalents 6,889,962 12,819,126 Total current assets 23,038,613 26,195,961 Total assets 72,539,777 55,635,773 EQUITY AND LIABILITIES Capital and reserves Share capital 6,264 5,646 Treasury shares (242,709) (189,767) Share premium 17,997,808 13,477,795 Capital funds 1,641,512 1,641,512 Reserve for options to purchase non-controlling interests (8,469,745) - Cash flow hedge reserve 264,972 636,152 Foreign exchange translation reserve (344,572) (448,496) Accumulated profits 6,651,801 6,067,174 Equity attributable to the owner of the Company 17,505,331 21,190,016 Non-controlling interests 6,619,860 91,955 Total equity 24,125,191 21,281,971 Non-current liabilities Bonds, bank loans and borrowings 16 18,914,600 19,757,927 Financial derivatives 18 203,378 218,258 Lease liabilities 68,079 71,718 Other financial liabilities 8,469,745 147,336 Trade and other payables 98,697 78,732 Other payables 7,893 7,696 Provisions 14 126,255 88,816 Deferred tax liability 5,571,060 2,641,071 Employee benefit liabilities 15 196,471 189,531 Total non-current liabilities 33,656,178 23,201,085 Current liabilities Bonds, bank loans and borrowings 16 4,208,648 1,509,247 Financial derivatives 18 87,380 63,608 Lease liabilities 24,628 25,206 Trade and other payables 2,326,642 2,025,274 Other payables 7,722,749 7,292,983 Provisions 14 78,273 74,164 Tax liabilities 292,002 145,075 Employee benefit liabilities 15 18,086 17,160 Total current liabilities 14,758,408 11,152,717 Total liabilities 48,414,586 34,353,802 Total equity and liabilities 72,539,777 55,635,773 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2026 CZK '000 Share capital Treasury shares Share premium Capital funds Reserve for options to purchase non-controlling interests Cash flow hedge reserve Foreign exchange translatio n reserve Accumulat ed profits Equity attributable to the owner of the parent company Non-controlling interests Total equity Balance at 31 December 2024 5,646 - 13,477,795 1,641,512 - (203,494) (68,137) 5,175,107 20,028,429 - 20,028,429 Profit for the period - - - - - - - 2,044,897 2,044,897 (630) 2,044,267 Other comprehensive income - - - - - 839,646 (380,616) - 459,030 1,444 460,474 Total comprehensive income for the period - - - - - 839,646 (380,616) 2,044,897 2,503,927 814 2,504,741 Dividends - - - - - - - (846,945) (846,945) - (846,945) Purchase of treasury shares - (189,767) - - - - - - (189,767) - (189,767) Options to purchase non-controlling interests - - - - - - - (147,336) (147,336) - (147,336) Share-based payments - - - - - - - (155,891) (155,891) - (155,891) Change in non-controlling interests without loss of control - - - - - - 257 (2,659) (2,402) 91,141 88,739 Rounding - - - - - - - 1 1 - 1 Balance at 31 December 2025 5,646 (189,767) 13,477,795 1,641,512 - 636,152 (448,496) 6,067,174 21,190,016 91,955 21,281,971 Profit for the period - - - - - - - 437,291 437,291 280,652 717,943 Other comprehensive income - - - - - (371,180) 103,924 - (267,256) (10,083) -277,339 Total comprehensive income for the period - - - - - (371,180) 103,924 437,291 170,035 270,569 440,604 Purchase of treasury shares - (52,942) - - - - - - (52,942) - (52,942) Options to purchase non-controlling interests - - - - (8,469,745) - - 147,336 (8,322,409) - (8,322,409) Issue of shares 618 - 4,520,013 - - - - - 4,520,631 - 4,520,631 Acquisition of subsidiaries - - - - - - - - - 6,257,336 6,257,336 Balance at 31 March 2026 6,264 (242,709) 17,997,808 1,641,512 (8,469,745) 264,972 (344,572) 6,651,801 17,505,331 6,619,860 24,125,191 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2025 CZK '000 Share capital Share premium Capital funds Cash flow hedge reserve Foreign exchange translation reserve Accumulated profits Equity attributable to the owner of the parent company Non-controlling interests Total equity Balance at 31 December 2024 5,646 13,477,795 1,641,512 (203,494) (68,137) 5,175,107 20,028,429 - 20,028,429 Profit for the period - - - - - 523,909 523,909 - 523,909 Other comprehensive income - - - 156,473 (132,837) - 23,636 - 23,636 Total comprehensive income for the period - - - 156,473 (132,837) 523,909 547,545 - 547,545 Dividends - - - - - - - - - Issue of shares - - - - - - - - - Share-based payments - - - - - 15,165 15,165 - 15,165 Balance at 31 March 2025 5,646 13,477,795 1,641,512 (47,021) (200,974) 5,714,181 20,591,139 - 20,591,139 Notes are an integral part of these consolidated interim financial statements. CONSOLIDATED CASH FLOW STATEMENT FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2026 31 Mar 2026 31 Mar 2025 Note CZK ' 000 CZK ' 000 Cash flows from principal economic activity (operating activity) Profit from ordinary activity before tax 917,148 691,402 Depreciation/amortization of non-current assets 11, 12 849,935 385,362 Change in allowances and provisions 13, 14 11,872 16,429 Profit from the sale of non-current assets (128) (1,069) Interest expense and interest income 10.1 196,924 60,991 Share in the profit of associates 17 (2,017) (1,583) Unrealized foreign exchange gain and losses (254,456) 171,554 Cash flow hedging - remeasurement of the effective portion of hedging instruments (381,105) 156,473 Share-based payments - 15,165 Adjustments for other non-cash transactions 35,022 9,456 Net operating cash flows before changes in working capital 1,373,195 1,504,180 Change in working capital Change in receivables and deferrals (497,239) 429,311 Change in liabilities and accruals 343,246 266,307 Change in inventories 13 (525,830) (930,887) Cash flow from operating activities 693,372 1,268,911 Paid interest 10.1 (347,051) (490,429) Interest received 10.1 203,716 358,919 Income tax paid for ordinary activity 10.2 (367,357) (145,351) Net cash flow from operating activities 182,680 992,050 Cash flows from investing activities Acquisition of non-current assets 11, 12 (597,781) (270,142) Proceeds from the sale of non-current assets 128 1,069 Acquisition of subsidiaries - opening balance 8 (5,500,000) - Acquisition of subsidiaries - cash and cash equivalents 8 844,142 - Provided loans (1,625) - Net cash flow from investing activities (5,255,136) (269,073) Cash flows from financing activities Purchase of treasury shares (52,942) - Proceeds from drawing of loans 16 21,588 42,858 Repayment of loans 16 (877,737) (326,025) Repayment of leases (6,065) (6,867) Net cash flow from financing activities (915,156) (290,034) Net change in cash and cash equivalents (5,987,612) 432,943 Opening balance of cash and cash equivalents 12,819,126 5,917,768 Effect of exchange rate on cash and cash equivalents 58,448 (13,898) Closing balance of cash and cash equivalents 6,889,962 6,336,813 Notes are an integral part of these consolidated interim financial statements. COLT CZ GROUP SE Condensed consolidated interim financial statements for the three-month period from 1 January to 31 March 2026 prepared in accordance with IFRS Accounting Standards as adopted by the European Union (unaudited) Contents PARENT COMPANY 9 GROUP DESCRIPTION 10 SIGNIFICANT EVENTS IN THE CURRENT REPORTING PERIOD 12 BASIC PRINCIPLES FOR PREPARATION OF THE INTERIM FINANCIAL STATEMENTS 12 SIGNIFICANT ACCOUNTING POLICIES 12 ESTIMATES AND SOURCES OF UNCERTAINTY 12 FINANCIAL RISK MANAGEMENT 13 ACQUISITION OF A 51% STAKE IN SYNTHESIA NITROCELLULOSE AND SYNTHESIA POWER . 13 INFORMATION ABOUT SEGMENTS AND REVENUES 15 PROFIT AND LOSS INFORMATION 19 INTANGIBLE ASSETS 21 PROPERTY, PLANT AND EQUIPMENT 22 INVENTORIES 23 CURRENT AND NON-CURRENT PROVISIONS 24 EMPLOYEE BENEFIT LIABILITIES 24 BONDS, BANK LOANS AND BORROWINGS 25 EQUITY-ACCOUNTED SECURITIES AND INVESTMENTS 25 FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE 26 PROFIT DISTRIBUTION 28 TRANSACTIONS WITH RELATED PARTIES 28 NET EARNINGS PER SHARE 30 CONTINGENT LIABILITIES 30 SUBSEQUENT EVENTS 30 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. 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. 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. 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. 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. 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. 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. 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. 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 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 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. 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) 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 PROFIT AND LOSS INFORMATION 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). 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%). 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. 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). 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). 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 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 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 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 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. 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 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. PROFIT DISTRIBUTION During the period ended 31 March 2026, the Company had not yet decided on the allocation of profit for the year 2025. 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. 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 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. 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.