JPM | European Industrials Conference: CSG CFO - Spec Quick Notes

Research evidence excerpt

JPM | European Industrials Conference: CSG CFO - Spec Quick Notes

Specialist Sales J P M O R G A N

17 June 2026

Sam Edmunds

+44 207 742 8733

sam.edmunds@jpmorgan.com

CFO Zdenek Jurak hosted by David Perry

QUICK CONCLUSION: A very solid session with CSG addressing the concerns regarding the ammunition business. Investors

should like the commentary regarding order intake and the rocket engine announcement is a significant positive.

• Ukraine exposure? it was 27% at the end of last year but is reducing as the rest of the business grows.

• European customer base is split pretty evenly between Central and Eastern Europe plus the Balkans and Western European

nations.

• Asia - who are the major customers? Phillipines, Vietnam, India and Indonesia. India is a growing customer.

• Middle East - seeing strong demand driven by the Iran conflict.

ML Ammo

• Expecting the proportion of recommissioned ammunition to fall as manufacturing of new ammunition - is there a risk of a

faster decline? Not really - ahead of plan with ramp up their own manufacturing. Competitors didn’t pursue recommissioned

opportunity when demand spiked after Russia invaded Ukraine. Long term didn’t want the supply risk - of old ammunition -

but confident of the supply out to 2028. The use of recommissioning allowed them to supply Ukrainian requirements and

gather new customers who will now be sold new ammunition.

• How is the ramping up of the ammunitoon manufacturing going? Key item is to recommission a facility they dfound in

Greece which is licenced to make TNT. Should be up and running by end 2027. Also bought a German facility for nitro-

cellulose last year. Will meet the bottlenecks for ammunition manufacturing.

• Contract structures for ML Ammo? Have a number of long term contracts in place. For e.g.