3. - Pistols
- Revolvers
- Long Guns
- Accessories
- Helmets for
Motorcyclists
- Motorcycle case
- Accessories
HELMETSFIREARMS OTHERS
- Plastic Containers
- Metal Injection
Molding (M.I.M.)
LARGEST
MANUFACTURER OF
REVOLVERS
LEADING NATIONAL
HELMETS’
PRODUCTION
BRAZILIAN COMPANY
WITH METAL
INJECTION MOLDING
TECHNOLOGY
COMPANY
OVERVIEW
4. FACILITIES
Taurus Holdings Inc,
Miami – Florida
Firearms and M.I.M.
Forjas Taurus S,A,
São Leopoldo – RS
Handguns, Forgery, Machining and M.I.M.
Taurus Blind. Nordeste
Simões Filho – BA
Helmets
Taurus Blindagens
Mandirituba – PR
Helmets and Plastics
COMPANY
3,200
Employees
5. 1980 - Beretta operational acquisition
1982 - IPO
1983 - Taurus International
1939 –Forjas Taurus Foundation
1970 - Foreign investors control
1977 – Management buyout
1999 – Pollymer and titanium guns
1997 – Rossi – Revolver
2015 – Beginning of restructuring process
- 100% of production increase
- Beginning of debt renegotiation
- SAP Implementation
- Beginning of plants consolidation
2014 – New Shareholder: Companhia Brasileira de Cartuchos (CBC)
2012 - Heritage Manufacturing Inc. Acquisition
- Acquisition of SteelInject
2011 - Admission to Level 2 of BM&FBOVESPA (Corporate Gov,)
10´s
30´s
70´s
80´s
90´s
00´s2008 – Rossi – Long Guns
2004 – Famastil participation acquisition
2016A NEW COMPANY
New Headquarter
in São Leopoldo
New products
portfolio
New production
increase
SAP
Go live
TIMELINE
COMPANY
6. CBC
Global View:
• Net Revenue: R$ 2.3 Bi (2015)
• Plants in Brazil, Germany and Republic Czech Republic
• Present in over 100 countries
• 3 Distribution centers
• Over 3,600 employees
• 4 brands: CBC, MEN, Magtech e Sellier & Bellot
Potential Synergies
• Customer portfolio
• Distribution Channels
• Management Synergies
• Production cost reduction
• International expansion
• Technology and know-how transferring
• Brand strength
CBC – The Company
8. BOARD AND COMMITTEES
Jorio Dauster
Magalhães e Silva
Fernando
José Soares
Estima
João Verner
Juenemann
Chairman
(Independent)
Vice – Chairman
Independent
40%
of Independent
Members
Audit and Risks
Committee
João Verner Juenemann
Fábio Luiz Munhoz Mazzaro
Thiago Piovesan (CFO & IRO)
COMPANY Fábio Luiz Munhoz
Mazzaro
Thiago
Piovesan
9. STATUTORY AND EXECUTIVE BOARD OF DIRECTORS
COMPANY
CEO*
Marco Aurélio Salvany
CFO and IRO*
Thiago Piovesan
CHIEF OF SALES
MARKETING*
Salésio Nuhs
INTEGRATED
ENGINEERING
DIRECTOR
Cristiano Macedo
MARKETING
DIRECTOR
Eduardo Minghelli
CEO – TAURUS
HOLDINGS INC,
Anthony Acitelli
OPERATIONS
DIRECTOR
Jeferson Nargony
PURCHASING
DIRECTOR
Ricardo Machado
*Statutory Board elected in 06.29.2016
SALLES
DIRECTOR
Luiz Antônio M.
de Freitas Horta
10. FISCAL COUNCIL
PERMANENTLY
INSTALLED
COMPANY
Amoreti Franco
Gibbon
Alternate: Edson Pereira Ribeiro
Haroldo
Zago
Alternate: Heldo Jorge dos
Santos Pereira Junior
Mauro César
Medeiros de Mello
Alternate: Nildo Teixeira Freire
Juliano Puchalski
Teixeira
Suplente: Carlos Eduardo
Bandeira de Mello Francesconi
Rafael de Souza
Morsch
Suplente: Tarso Padua Dutra
11. SHAREHOLDERS
COMPANY
SHAREHOLDERS
PARTICIPAÇÃO
TOTAL ON PN
CBC PARTICIPAÇÕES S.A. 70.99% 91.91% 2.51%
MARCOS BODIN DE SAINT ANGE COMNENE 5.60% 0.02% 23.84%
ANTONIO MARCOS MORAES BARROS 3.84% 0.15% 15.91%
PREVI 2.07% 1.28% 4.64%
ESTIMAPAR 2.50% 3.26% 0.00%
ZENITH ASSET MANAGEMENT 1.29% 0.00% 5.50%
OTHERS 13.71% 3.38% 47.60%
CAPITAL STOCK QUANTITY
ORDINARY SHARES 44,642,459
PREFERRED SHARES 13,636,110
TOTAL 58,278,569
12. EMPRESA
LAST CORPORATE EVENTS
• Exercise of (i) 10.060.829 subscription bonus ON owned by CBC and (ii) 634.489 subscription
bonus PN owned by Marcos Bodin de Saint Ange Comnene approved in 06.02.2016
Capital Increase of R$ 17.5 million;
Issuance of 10.060.829 new common shares and 634.489 preferred shares;
New social capital consists of 58,278,566 shares, being 44,642,456 common shares and 13.636.110 preferred shares;
• Exercise of 7.135.000 subscription bonus ON owned by CBC approved in 01.06.2016
Capital Increase of R$ 11.7 million;
Issuance of 7,135,000 new common shares;
New social capital consists of 47,583,248 shares, being 34,581,627 common shares and 13,001,621 preferred shares;
• Statutory reform approved at SGM in 12.22.2015
• Headquarter transferring to São Leopoldo/RS/Brazil approved at SGM in 12.04.2015
• Capital increase approved in 09.29.2015
Capital increase of R$ 39.9 million;
• Board members and statutory directors election
Board members elected at SGM in 07.15.2015;
Statutory directors elected at board meeting in 06.29.2015.
20. 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
& Accessories
22. PUBLIC SECURITY
Source: Public Security 2015 Report (data from 2014)
FIREARMS
& Accessories
- Police Force
Federal Police > 14,000
Civil Police > 118,000
Military Police > 425,000
City Guard * > 100,000
*Law nº 13,022 – August, 2014
- Armed Forces
Armed Forces > 327,000
23. MARKET SHARE
90% OF HANDGUNS MARKET
SHARE IN BRAZIL
PEERS: CBC AND IMBEL 10% OF
MARKET SHARE
FIREARMS
& Accessories
24. 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 particularly, 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,
25. TAURUS – EED since November 28th, 2013
TAURUS
DEFENSE
26. 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
27. 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;
28. 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, maintenance, overhaul, conversion, modernization or
maintenance of PED in Brazil;
Have the headquarters in Brazil, its management and the industrial establishment;
Dispose, in Brazil, of proved own technology knowledge 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,
29. 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 ,
32. EXPORTS TO OTHER COUNTRIES (ex-USA)
EXPORTS FOR
MORE THAN
70 COUNTRIES
FIREARMS
& Accessories
33. GROWTH STRATEGIES
FIREARMS
& Accessories
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
35. IMPACT FACTORS
HELMETS
& Accessories
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
37. 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
45%
45%
HELMETS
& Accessories
38. COMPETITIVE ADVANTAGES
Quality
Raw material from recognized suppliers
Compliance with brazilian quality standard
(NBR 7471/2001)
Production scale
Market Leadership with San Marino Product
Design
Updated and innovative design
Artwork with excellent finishing
HELMETS
& Accessories
39. GROWTH STRATEGIES
Explore the foreign market
Evaluate the opportunities of producing helmets
with higher added value
Increase the marketing actions: exhibitions,
specific magazines, others,
HELMETS
& Accessories
47. 3Q16 FINANCIAL RESULTS
HIGHLIGHTS
47
EBITDA 3Q16
EBITDA : (R$ 20.5) million
Inventories Impairment provision: R$ 35.0 million
Provision Adjusted EBITDA: R$ 14.5 million X 2Q16: (R$ 11.9) million
Net Revenue
R$ 223.0 million 12.5% (3Q16/2Q16)
Firearms Market
US Market: R$ 149.9 million 6.5% (3Q16/2Q16)
Domestic Market: R$ 33.5 million 132.6% (3Q16/2Q16)
Others Markets: R$ 9.1 million 13.8% (3Q16/2Q16)
Highlights
Production increase over 20% in the 3Q16 x 2Q16
Final step of agreements for about USD150 million debt renegotiation
7.4% average US Dollar depreciation in the 3Q16 x 2Q16
1.2% closing US Dollar appreciation in the 3Q16 x 2Q16
Inventories Impairment provision of R$ 35.0 million
50. 2016: A NEW CYCLE
RESUMPTION OF
COMPANY
FUNDAMENTALS
REDUCING
COMPANY
COMPLEXITY
FOCUS
ON
PROFITABILITY
RESIZE THE
INDUSTRIAL
PROCESS
REESTRUCTURING
51. 2016: A NEW CYCLE
OPERATIONAL RESTRUCTURING
- New production concept
- Higher production capacity
- Greater efficiency and quality
FINANCIAL
RESTRUCTURING
- Cash generation
- Debt renegotiation
- Capital increase
- Operations transferring to SL
- Long guns consolidation
- Respect for the environment
SAP
REESTRUCTURING
52. 2016: A NEW CYCLE
New Firearms Production Concept
Gunsmith Production Line
Interchangeability of parts
Higher production capacity
Greater efficiency and quality
Plants Consolidations
Long guns operations consolidation
Operations transferring to São Leopoldo – RS – Brazil
Respect for the environment
SAP Implementation
Process based
Greater management control
Greater integration among departments
Sinergy gains
REESTRUCTURING
53. REESTRUCTURING
2016: A NEW CYCLE
New Headquarter
Address: Av. São Borja, 2181 – CEP: 93.032-000 – São Leopoldo – RS – Brazil
54. JULIAN BATISTA
IR Analyst
+55 51 3021 3079
www.taurusri.com.br
ri@taurus.com.br
THIAGO PIOVESAN
CFO & IRO
MARCO AURÉLIO SALVANY
CEO
