CSG (CSG) Investor presentation summary

Company overview

• Headquartered in Prague, operates over 100 companies with 14,000+ employees and €5.2bn 2024 pro-forma revenue.

• Major divisions: Defence (67% of EBITDA), Ammo+ (28%), Aerospace (4%), and Land Systems (7%).

• Global footprint with manufacturing in Europe and the US, and a strong presence in NATO and Ukraine markets.

• Recent acquisitions include The Kinetic Group and full ownership of Fiocchi, strengthening global ammunition leadership.

• Deep vertical integration, including the Walsrode nitrocellulose plant, secures critical supply chains.

Key credit highlights

• Positioned to benefit from a global defence supercycle, with European defence budgets expected to grow at 10% CAGR (2024–29).

• #1 global small ammunition player, with 60%+ revenue from NATO customers and 2.1x backlog coverage.

• Highly entrenched business model: B2G focus, long product lifecycles, multi-year contracts, and high vertical integration.

• Longstanding client relationships (13+ years on average) with blue-chip government and law enforcement customers.

• Strong cash flow visibility: €11bn backlog and €8bn pipeline as of FY2024.

Financial overview

• Revenue grew from €563m in 2021 to €5.2bn pro-forma in 2024, with operating EBITDA margin rising to 27%.

• Cash conversion averaged ~70% (2021–24), with free cash flow of €807m in 2024.

• Gross debt increased to €3.0bn in 2024 due to acquisitions, but net leverage remains conservative at 1.3x.

• Management team has over 115 years of combined experience, driving consistent growth and global expansion.

• ESG initiatives include CSRD-aligned sustainability reporting, GHG emissions measurement, and a dedicated Sustainability Committee.