CSG Sends Letter to Senator J.D. Vance Addressing His Concerns Regarding Planned Acquisition of Vista Outdoor’s Sporting Products Business, The Kinetic Group - Seite 2

Considering the above, any speculation about the CSG's connection to the Putin regime should be considered nonsense. We nevertheless explicitly note that CSG has never had any ties to Putin's regime and there is no reason why we would have such ties, given that we have never supplied any defense products to Russia. Past export of our civilian products – namely trucks for the mining industry – was negligible, and after the outbreak of Russian aggression against Ukraine, it was unilaterally terminated by us. CSG has also never violated any arms embargo and has never been investigated for doing so, let alone sanctioned.

We understand that the sale of major producers of small caliber ammunition to a foreign company, even if it is a company from a NATO member state that is a close ally of the U.S., attracts well-deserved attention. In today's global world, however, it is not important which allied country the buying company is based, but what its track record is and what value it can bring to the American ammunition manufacturers associated in The Kinetic Group.

We believe that from the point of view of American customers, whether in the civilian market or in the defense and law enforcement segment, the ideal owner is one who does not hold companies for short-term profits, who is not in the grip of the stock market, and who is an expert in the field. We are familiar with the small caliber ammunition market thanks to the acquisition of a majority stake in Fiocchi, a well-known producer of small caliber ammunition worldwide – which also had to be approved by CFIUS – because this company also operates two production sites in the U.S. We are an industrial group that holds the companies it acquires for the long term and invests in them.

We call to your attention a press release on our 2023 financial results with a detailed profile of our business.² But we know the most convincing argument is one you can experience yourself. That's why we invite you to visit CSG member companies in the U.S. and Europe to experience first-hand who we really are.

Yours sincerely,

Michal Strnad, CEO and owner
CSG

About Czechoslovak Group

Czechoslovak Group (CSG) is an international industrial technology holding company owned by Michal Strnad. CSG supports the development of Czech and Slovak companies engaged in defense and civil industrial production and trade. More than 10,000 people are employed by CSG companies and affiliates. In 2023, the holding’s preliminary 2023 consolidated revenues reached $1.85 billion. CSG operates across four strategic business segments covering aerospace, ammunition, defense, mobility and business projects.