4. COMPANY
OVERVIEW
- Pistols
- Revolvers
- Long Guns
- Air Guns
- Bullet-Proof Vests
- Acessories
- Helmets for
Motorcyclists
- Helmets for
Cyclists
- Motorcycle case
- Acessories
HELMETSFIREARMS
PLASTICS
- Containers
- Bins
MIM
Metal Injection
Molding
77% 18%
4%
1%
Part.* Part.*
Part.*
Part.*
*Contribution on 1st Quarter Net Revenue
5. FACILITIES
Forjas Taurus S.A.
Porto Alegre – RS
Handguns
1,300 Employees
Taurus Holdings Inc.
Miami – Florida
Firearms and M.I.M.
250 Employees
Polimetal
São Leopoldo – RS
Forgery, Machining and M.I.M.
900 Employees
Forjas Taurus S.A. - Branch 5
São Leopoldo – RS
Long Guns
200 Employees
Taurus Blind. Nordeste
Simões Filho – BA
Helmets
200 Employees
Taurus Blindagens
Mandirituba – PR
Helmets, Bulletproof Vests and Plastics
600 Employees
COMPANY
3.450
Employees
6. 1980 – Beretta operational aquisition
1982 – IPO
1983 – Taurus Internacional
1985 – Taurus Ferramentas
1986 – Induma
1988 – Taurus Holdings
1939 – Forjas Taurus
TIMELINE
1970 – Control to foreign investors
1977 – Management buyout
1991 – Champion’s assets
1997 - Rossi – Revolver
(use of the brand, technology and
productive processes)
1999 – Pollymer and titanium guns
00´s
30´s
70´s
80´s
90´s
COMPANY
2000 - Taurus Capacetes
2004 - Famastil
2004 – Taurus Máquinas-Ferramenta
2006 - Taurus Helmets
2006 - “The Judge” - Revolver
2008 - Rossi – Long Guns
2010 - Taurus Blindagens Nordeste
2011 - Admission to Level 2 of BM&FBOVESPA (Corporate Gov.)
- Aquisition of SteelInject
2012 – Heritage Manufacturing Inc. Acquisition
- Divestment of Taurus Máquinas-Ferramenta
- Relocation of the long gun and M.I.M. sites to São
Leopoldo/RS
2013 - Diamondback – Global Distribution
- Lean Manufaturing
- Relocation of Steelinject to São Leopoldo/RS
- Repactuation of Taurus Máquinas-Ferramenta divestment
2014 – New Shareholder: Companhia Brasileira de Cartuchos (CBC)
- Helmets for Cyclists
7. CORPORATE GOVERNANCE
TAG ALONG
100%
(ON and PN)
DIVIDENDS
35%
(Semiannual)
MINIMUM OF 40%
INDEPENDENT
BOARD MEMBERS
VOTING RIGHTS TO
PREFERRED SHARES
(In Relevant Topics)
COMPANY
8. BOARD AND COMITTEES
Jorio Dauster
Magalhães e Silva
Ruy Lopes
Filho
André
Ricardo Balbi
Cerviño
Fernando
José Soares
Estima
João Verner
Juenemann
Luiz
Cláudio
Moraes
Salésio
Nuhs
Chairman
(Independent)
Vice – Chairman
Independent Independent
56%
of Independent
Members
Audit and Risks
Comittee
Compensational and
Personnel Development
Management and Corporate
Governance Comittee
João Verner Juenemann
Fábio Luiz Munhoz Mazzaro
Thiago Piovesan (CFO & IRO)
Marcos Bodin de Saint Ange Comnene
Salésio Nuhs
Adriana Bozzetti (HR)
Luiz Cláudio Moraes
Ruy Lopes Filho
Thiago Piovesan (CFO & IRO)
COMPANY Fábio Luiz Munhoz
Mazzaro
Independent
Marcos
Bodin
Comnene
Independent
9. STATUTORY AND EXECUTIVE BOARD OF DIRECTORS
COMPANY
CEO
André Ricardo
Balbi Cerviño
CFO & IRO
Thiago
Piovesan
VP MARKETING
AND SALES
Eduardo Ermida
Moretti
CEO – TAURUS
HOLDINGS INC.
Anthony
Acitelli
SUPPLY CHAIN
EXECUTIVE
Marco A. Fialho
Harzheim
COO
Eduardo
Rácz
HELMETS & PLASTICS
EXECUTIVE
Leonardo Aita
10. FISCAL COUNCIL
PERMANENTLY
INSTALLED
COMPANY
Amoreti Franco
Gibbon
Juliano Puchalski
Teixeira
Alternate: Edson Pereira Ribeiro
Alternate: Carlos Eduardo
Bandeira de Mello Francesconi
Haroldo
Zago
Alternate: Heldo Jorge dos
Santos Pereira Junior
Mauro César
Medeiros de Mello
Alternate: Nildo Teixeira Freire
Reinaldo
Fujimoto
Alternate: José Aírton Veras
Carvalho
11. SHAREHOLDERS
COMPANY
SHAREHOLDERS
Before Capital Increase
Jul/2014
After Capital Increase
Oct/2014
After Stock Inplit
May/2015
TOTAL ON PN TOTAL ON PN TOTAL ON PN
CBC 6.0% 15.6% 0.9% 27.9% 52.5% 0.9% 31.3% 59.1% 0.9%
ESTIMAPAR 12.8% 37.3% 0.1% 12.1% 23.2% 0.0% 9.0% 17.2% 0.0%
PREVI 26.8% 15.3% 32.7% 19.4% 7.3% 32.7% 17.5% 7.2% 28.9%
FIGI 3.5% 10.1% 0.0% 2.5% 4.8% 0.0% 3.5% 6.6% 0.0%
OTHERS 50.9% 21.7% 66.3% 38.1% 12.2% 66.4% 38.7% 9.9% 70.2%
Capital Stock
Before Capital Increase
Jul/2014
After Capital Increase
Oct/2014
After Stock Inplit (11:1)
May/2015
ON = 44,310,333 (34.4%) ON = 92,832,547 (52.3%) ON = 8,439,322 (52.3%)
PN = 84,666,177 (65.6%) PN = 84,751,880 (47.7%) PN = 7,704,716 (47.7%)
TOTAL = 128,976,510 TOTAL = 177,584,427 TOTAL = 16,144,038
12. SOCIAL COMMITMENT
• Kids of the Future
• Library
• Digital Space
• Sign Language Course
• Educational Benefits
• Impulsor News
COMPANY
13. TAURUS 75 YEARS
COMPANY
Arsenio Frantz – Sales Manager
18 years Protecting People
Lucas Davila – Revolver Assembly
2 years Protecting People
Cheryne M. Makki – Financial Analyst
4 years Protecting People
23. AWARDS
2012
FIELD & STREAM BEST OF THE BEST
AWARD
TAURUS TRACKER 992
2011
NRA: HANDGUN OF THE YEAR
PT 740 SLIM
2013
MANUFACTURER OF THE YEAR
TAURUS INTERNATIONAL MFG, INC.
FIREARMS
& Acessories
25. PUBLIC SECURITY
Source: Public Security 2013 Report (data from 2012)
FIREARMS
& Acessories
- Police Force
Federal Police > 15.000
Civil Police > 120.000
Military Police > 400.000
City Guard * > 100.000
*Law n. 13.022 – August, 2014
- Armed Forces
Armed Forces > 270.000
26. PRIVATE SECURITY
FIREARMS
& Acessories
Vigilants in acitivity
700,000
* Non-considered the patrimonial
organic vigilance
N. Companies
2,400 in 2013
(+5% in relation to 2012)
Sector Revenue
R$ 44 billions in 2013
(2014 guidance = R$ 50 billions/year)
Source: FENAVIST
-
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
7.000.000
8.000.000
9.000.000
-
10.000
20.000
30.000
40.000
50.000
60.000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Evolution of Firearms and Ammunition
Acquisition by Private Security Companies
27. MARKET SHARE
90% OF HANDGUNS MARKET
SHARE IN BRAZIL
PEERS: CBC AND IMBEL 10% OF
MARKET SHARE
FIREARMS
& Acessories
28. TAURUS DEFENSE - Targets
TAURUS
DEFENSE
Act as the link between TAURUS and Defense Ministry and
Armed Forces;
Represent TAURUS in specific forums;
Contribute on the process of consolidation of the TAURUS’
brand to the concepts of quality, safe, security and reliability;
Contribute on the sales growth, in particulary, to Armed Forces;
Manage the work related to the relevant legislation to the EED
(Strategic Defense Companies) and others inherent legal
frameworks of the company’s activity.
29. TAURUS – EED since November 28th, 2013
TAURUS
DEFENSE
30. TAURUS
DEFENSE
Política
Nacional
de Defesa
Prioritize the development of
independent technological
capabilities;
Subordinate commercial
considerations to the
strategic imperatives;
Prevent the polarization of
Defense Industrial Base
between advanced research
and routine production;
Use the development of
defense technologies as a
focus for the development of
operational capabilities.
BRAZILIAN DEFENSE STRATEGY – Legal Base
31. CONCEPTS
TAURUS
DEFENSE
PRODE: all good, service, construction or information, including weapons,
ammunition, transportation or communications, uniforms and individual or
collective materials used in the defense activities, excepts the
administrative use;
PED: all PRODE that, due the technology content, the difficulty to obtaining
or the indispensability, is of strategic interest for national defense;
32. CONCEPTS
TAURUS
DEFENSE
EED: all companies that are certified by the Defense Ministry that meet the
following conditions:
Be aimed at carrying out research activities, projects, development, industrialization,
service, production, repair, maintance, overhaul, conversion, modernization or
maintance of PED in Brazil;
Have the headquarters in Brazil, its management and the industrial establishment;
Dispose, in Brazil, of comproved own technology knowledgement or complemented
by partnership agreement with the Scientific and Technological Institution;
Ensure, that foreign shareholders can not act on General Shareholders Meetings with
number of votes representing more than 2/3 of the total votes exercisable by brazilian
shareholders; and
Ensure production continuity in Brazil.
33. INCENTIVES
TAURUS
DEFENSE
RETID: Special Tax System for Defense Industry
PIS/PASEP and COFINS exemption
IPI exemption
Source: Law N. 12,598/2012
The EED will have access to special tax system and
funding for programs, projects and actions related to
goods and services of national defense under the law terms .
35. ATHLETES SPONSORSHIP
FIREARMS
& Acessories
Alex Larche
Sporting teenager
shooter
Mauro Cauduro
Outstanding positions on
Brazilian competitions
Jessie Duff
Champion of the 2014
World Shoot XVII
Taurus’ team captain
36. CARRY ON MOVEMENT
Considered a breakthrough in shooting sports, Alex Larch is the
new member of Taurus team lead by Jessie Duff
Alex Larche
Taurus offers to its customers a new
concept in packaging, providing
greater security and perceived quality.
White Box
FIREARMS
& Acessories
37. CARRY ON MOVEMENT
Taurus cares about its consumers: new Customer Service
extended to all american territory.FIREARMS
& Acessories
38. EXPORTS TO OTHER COUNTRIES (ex-USA)
EXPORTS FOR
MORE THAN
70 COUNTRIES
FIREARMS
& Acessories
39. GROWTH STRATEGIES
FIREARMS
& Acessories
Specific products for Consumer and Law Enforcement markets
Develop new products for the US market
Improve the after-sale: maintance, retrofit and training
Increase the sales for civilian brazilian market
Improve the Taurus brand perception
41. IMPACT FACTORS
HELMETS
& Acessories
Motorcycles Sales
Car substitution for motorcycle
Mobility and traffic saving
Delivery Services
Motocab
Credit
Defaults’ growth
Restricted credit concession
% of down payments’ value
Number of installments
Motorcycle maintenance X Helmet
acquisition
Inexistence of financing for used low
cilinder motocycles
43. HELMETS MARKET IN NUMBERS
45%
BRAZILIAN MOTORCYCLE
HELMETS MARKET SHARE
4.8
MILLIONS UNITS/YEAR
POTENTIAL MARKET
1.5
HELMETS PER
MOTORCYCLE IN
BRAZIL
6
YEARS: HELMET’S LIFE TIME
ESTIMATED BY THE MARKET
HELMETS
& Acessories
45. PEERS
Nome Logo País Nome Logo País Nome Logo País
AGV Itália HELD Alemanha NAU Portugal
AIROH Itália HELT Brasil NOLAN Itália
ARAI Japão HJC EUA NORISK Brasil
ASTONE França ICON EUA ONE EUA
BELL EUA KRAFT Brasil PEELS Brasil
BIEFFE Brasil LAZER Bélgica PRO TORK Brasil
CRAFT Alemanha LS2 Espanha SHARK França
EBF Brasil MARUSHIN Itália SHOEI Japão
FLY Brasil MHR China STARPLAST Brasil
FOX EUA MIXS Brasil TAURUS Brasil
HARLEY-
DAVIDSON
EUA MT Espanha VAZ Brasil
10%
OTHERS
Market Share
Brazil
HELMETS
& Acessories
45%
45%
46. NEW!
Redesignthe helmet
sales success:
SAN MARINO,
the model is smaller,
lighter,
with better aerodynamics,
maintaining the large peripheral vision.
HELMETS
& Acessories
48. NEW!
“Brazilian leader in helmets manufacturing, Taurus expands its portfolio
with the launchof new features for motorcycles medium and high
displacement. By now, the brand offers a complete TOP line of helmets
developed in partnership with
Italian company Caberg ”
- MOTO.com.br
HELMETS
& Acessories
49. COMPETITIVE ADVANTAGES
Quality
Raw material from recognized suppliers
Compliance with brazilian quality
standard (NBR 7471/2001)
Adaptation to european standards
Production scale
Design
Updated and innovative design
Artwork with excellent finishing
HELMETS
& Acessories
50. GROWTH STRATEGIES
Criate a vintage line of helmets
Explore the foreign market
Evaluate the opportunities of producing helmets
with higher added value
Increase the marketing actions: exhibitions,
specific magazines, others.
Increase the line of helmets for cyclists
HELMETS
& Acessories
61. TAURUS NET REVENUE IN 4Q14 and 1Q15
61
CENTRAL
AMERICA/
LATAM
4Q14 1Q15
FIREARMS R$ 5.9 R$ 3.2
Part. 4% 2%
USA 4Q14 1Q15
FIREARMS R$ 75.9 R$ 98.9
Part. 45% 57%
BRAZIL 4Q14 1Q15
FIREARMS R$ 27.9 R$ 20.8
Part. 17% 12%
HELMETS R$ 33.3 R$ 31.0
Part. 20% 18%
EUROPE 4Q14 1Q15
FIREARMS R$ 1.2 R$ 3.2
Part. 1% 2%
AFRICA 4Q14 1Q15
FIREARMS R$ 8,5 R$ 1,2
Part. 5% 1%
ASIA 4Q14 1Q15
FIREARMS R$ 7.0 R$ 6.2
Part. 4% 4%
In BRL Millions
OCEANIA 4Q14 1Q15
FIREARMS R$ 0.38 R$ 0.24
Part. 0.23% 0.14%
-25%
-86%
-37%
31%
-7%
-47%
-11%
158%
62. MAINLY IMPACTS ON 1Q15 RESULTS
IMPACTS
62
Production
Increase*
Non-Recurring
Expenses and
Judicial Proceedings
Mar/15: 211
Feb/15: 161
Jan/15: 133
Aug/14: 100
Firearms
American Market
1Q15/1Q14
+ 6.5%
OPERATIONAL RESUMPTION
1Q15/4Q14
+ 31.3%
Carter Case
Provision R$ 69.3 mi
Exchange
Impact
Financial Expenses
Exch. Var. - R$ 78.9
R$/USD: 3.14 mar/15
R$/USD: 2.64 dec/14
Financial Income
Exch. Var. + R$ 17.1
*Quantity Produced
Basis 100 in Aug/14
Advising and Consulting
Expenses R$ 1.0 mi
Termination Labor
Contracts R$ 3.8 mi
63. NON-OPERATIONAL OR NON-RECURRING EXPENSES – 1Q15
IMPACTS
63
• Carter Case: R$ 69.3 millions
• Termination Labor Contracts: R$ 3.8 millions
• Advising and Consulting Expenses: R$ 1.0 millions
TOTAL R$ 74.1 millions
COGS: R$ 3.1 millions
Adm. Exp.: R$ 1.7 millions
Sales Exp.: R$ 2.0 millions
Others Exp.: R$ 67.3 millions
ST: 58%
LT: 42%
67. EBITDA and Adjusted EBITDA (in thousands of BRL)
RESULTS
(1) The Company Management considered the results of Taurus Máquinas-Ferramenta Ltda. as non-recurrent in view of its operational divestment.
PERIOD 1Q14 1Q15
= NET LOSS (4.540) (149.893)
(+) IR/CSLL (807) 6.470
(+) Net Financial Expenses 46.965 106.610
(-) Net Interest Income (37.081) (38.284)
= EBITDA CVM Reg. 527/12 12.615 (66.594)
(+) Loss of Taurus Máquinas-Ferramenta Ltda.
(1)
2.047 1.503
(+) Non-recurring Costs and Expenses 14.492 74.120
= ADJUSTED EBITDA 29.154 9.029
68. ADJUSTED EBITDA and Margin EBITDA – Monthly Evolution
RESULTS
(1) The Company Management considered the results of Taurus Máquinas-Ferramenta Ltda. as non-recurrent in view of its operational divestment.
69. NET FINANCIAL INCOME (LOSS)
RESULTS FINANCIAL EXPENSES 1Q15 Part. 1Q14 Part. Var.
Interest -16,238 15% -13,120 28% 23.8%
Exchange Variation -78,916 74% -19,047 41% 314.3%
IOF -389 0% -133 0% 192.5%
Swap on financial operations -8,068 8% -10,216 22% -21.0%
Adjustment to present value -1,744 2% -1,336 3% 30.5%
Other expenses -1,254 1% -3,113 7% -59.7%
TOTAL -106,609 100% -46,965 100% 127.0%
FINANCIAL INCOME 1Q15 Part. 1Q14 Part. Var.
Interest 1,896 5% 2,131 6% -11.0%
Exchange Variation 17,092 45% 25,592 69% -33.2%
Swap on financial operations 15,656 41% 6,065 16% 158.1%
Adjustment to present value 2,487 6% 2,147 6% 15.8%
Other income 1,153 3% 1,146 3% 0.6%
TOTAL 38,284 100% 37,081 100% 3.2%
NET FINANCIAL INCOME (LOSS) 1Q15 Part. 1Q14 Part. Var.
TOTAL -68,325 - -9,884 - 591.3%
70. INDEBTEDNESS - Composition
RESULTS
In millions BRL
03/31/2015 12/31/2014 03/31/2014
Var. Mar/15
x Dec/14
Var. Mar/15
x Mar/14
Short term indebtedness 220,2 258,9 358,6 -15% -39%
Long term indebtedness 255,3 231,8 250,5 10% 2%
Exchange Serves 118,5 57,9 62,3 105% 90%
Debentures 125,7 125,8 54,4 0% 131%
Antecipation Mortages 5,4 8,5 17,0 -36% -68%
Advance on Receivables 36,9 25,1 53,9 47% -32%
Derivatives -34,9 -12,2 -19,7 186% 78%
Gross Indetbetedness 727,1 695,8 777,1 4% -6%
(-) Cash available and financial investments 108,8 159,8 232,8 -32% -53%
Net Indebtedness 618,2 536,1 544,3 15% 14%
Adjusted EBITDA 22,0 42,1 82,2 -48% -73%
Net Indebtedness/Adjusted EBITDA 28,15x 12,74x 6,62x
Adjusted EBITDA/Financial Expenses Net 0,15x 0,46x 1,17x
76. GUIDANCE
GUIDANCE 2015
The Management chose to not provide guidance for Net
Revenue and EBITDA for 2015;
CAPEX: the capital expenditures for 2015 approved in AGM is
BRL 31,2 millions, 15% have been done until 1Q15.
