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Dezembro 2008 inglês


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Dezembro 2008 inglês

  1. 1. Forjas Taurus S.A.
  2. 2. Disclaimer “ This presentation contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such information is not merely based on historical fact but also reflects management’s objectives and expectations. The words "anticipate", “wish", "expect", “foresee", “intend", "plan", "predict", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown risks. Known risks include uncertainties which include, but are not limited to, interest rates, product competition, market acceptance of products, the actions of competitors, regulatory approval, currency type and fluctuations and monetary policy, among others. This presentation is based on events up to December 31, 2008 and Forjas Taurus S.A. is not obligated to update the contents in light of new information and/or future events. The future results of the issuer may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree. Forjas Taurus S.A. takes no responsibility for transactions or investment decisions made on the basis of information contained in this presentation.”
  3. 3. Executive Summary <ul><ul><li>The objective of this presentation is to show the general overview of the Company, markets, actual situation, growth and diversification strategies </li></ul></ul>
  4. 4. Shareholding Structure <ul><li>Polimetal Participações S.A. is the controlling shareholder of Taurus </li></ul>Source: Company reports Luis Fernando Costa Estima Polimetal Participações S.A. Polinvest Participações e Repres. Ltda. Others 66,67% 33,33% 12,53% 68,79% Legend: X.X% = Current Percentage of Common Capital X.X% = Current Percentage of Total Capital Estate of Carlos Alberto Paranhos Murgel Forjas Taurus S.A. 83,94% 27,98% 3,52% 3,23% Taurus Holdings, Inc. Taurus Máquinas – Ferramenta Ltda. Taurus Blindagens Ltda. Taurus Properties, Inc. Famastil Taurus Ferramentas S.A. Taurus Helmets Indústria Plástica Ltda. Taurus International Manufacturing, Inc. Taurus Blindagens Nordeste Ltda. 100% 100% 35% 24,2% 99,86% 100% 99,99% 99,99% Taurus Invest. Imobiliarios Ltda. 75,7% 32,9% 67,1%
  5. 5. Organizational Chart <ul><li>The Company has implemented Corporate Governance </li></ul>Chairman of the Board / CEO Luis F. C. Estima Strategic Committee Fiscal Counsel Source: Company reports Board of Directors Senior Vice-President Ruy F. V. Soares Human Resources Director Muciano N. Dias Executive Vice-President Jorge Py Velloso
  6. 6. Company’s Facilities The group is comprised by five business units in Brazil, one in the USA and has approximately 4,330 employees 1 1 As of June, 2008 <ul><li>Taurus Blindagens and Taurus Helmets </li></ul><ul><ul><li>Helmets </li></ul></ul><ul><ul><li>Bulletproof vests </li></ul></ul><ul><ul><li>Anti-riot shields </li></ul></ul><ul><ul><li>Plastic containers </li></ul></ul><ul><li>Forjas Taurus I </li></ul><ul><ul><li>Firearms </li></ul></ul><ul><li>Famastil </li></ul><ul><ul><li>Hand tools </li></ul></ul><ul><ul><li>Garden accessories </li></ul></ul><ul><li>Taurus Wotan </li></ul><ul><ul><li>Machine tools </li></ul></ul><ul><li>Forjas Taurus II </li></ul><ul><ul><li>Forged products </li></ul></ul><ul><ul><li>Products heat treatment </li></ul></ul><ul><ul><li>Metal injection Molding – M.I.M. </li></ul></ul><ul><li>TIMI (USA) </li></ul><ul><ul><li>Firearms </li></ul></ul><ul><ul><li>Metal injection Molding – M.I.M. </li></ul></ul>
  7. 7. The Company <ul><ul><li>Forjas Taurus S.A. was established in 1939. The Company is a leading Brazilian manufacturer of defense and security products, machine tools and forged products, such as handguns, motorcycle helmets, bullet-proof vests and milling and turning machines. Additionally, it holds a 35% stake at Famastil Taurus Ferramentas S.A. </li></ul></ul><ul><ul><li>Taurus has a complete line of products, specially produced for the defense and security markets. The Company is one of the world’s largest handgun manufacturers, with a market share of over 90% in Brazil and a leading position in the U.S. market with over 12% </li></ul></ul><ul><ul><li>Taurus also leads Brazilian market of motorcycle helmets (with a share of 50%), bulletproof vests and anti-riot shields. The Company also has a growing insertion in the market of forged products, mainly addressed to automotive industry and energy segment. Additionally, it has recently established its new industrial site in Curitiba for the manufacturing of plastic equipment used for packaging, and transporting materials. </li></ul></ul><ul><ul><li>Operational strategy of the Company is based on cost efficiency through a vertically integrated production, focused on profitability and quality. </li></ul></ul><ul><ul><li>The Company has an optimistic perspective for the segments in expansion, focusing on motorcycle helmets, machine tools and energy. </li></ul></ul>
  8. 8. The Company (cont.) Growth Strategy Corporate Governance Technology <ul><ul><li>Cost efficiency through </li></ul></ul><ul><ul><li>a vertical integrated production </li></ul></ul><ul><ul><li>Economies of scale </li></ul></ul><ul><ul><li>Products with high added </li></ul></ul><ul><ul><li>value </li></ul></ul><ul><ul><li>Slightly moving </li></ul></ul><ul><ul><li>from regulated </li></ul></ul><ul><ul><li>to unregulated markets </li></ul></ul><ul><ul><li>Assembly of Shareholders </li></ul></ul><ul><ul><li>Board of Directors </li></ul></ul><ul><ul><ul><ul><li>Strategic Planning </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Committee </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Code of Conduct </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Legal Counsel </li></ul></ul></ul></ul></ul><ul><ul><li>North American </li></ul></ul><ul><ul><li>owned subsidiary in the USA </li></ul></ul><ul><ul><li>Visibility in Brazil and abroad </li></ul></ul><ul><ul><li>Market leader in Brazil in </li></ul></ul><ul><li>different segments </li></ul>Markets <ul><ul><li>State of the Art production </li></ul></ul><ul><ul><li>facilities </li></ul></ul><ul><ul><li>Use of cutting-edge technology </li></ul></ul><ul><ul><ul><li>Products with quality and </li></ul></ul></ul><ul><ul><li>exclusive design </li></ul></ul>
  9. 9. SWOT Analysis Strengths <ul><ul><li>Largest handgun manufacturer in Latin America and one of the top three in the world </li></ul></ul><ul><ul><li>Strong presence in USA since 1981, the largest handgun market worldwide </li></ul></ul><ul><ul><li>Implemented practice of Corporate Governance </li></ul></ul><ul><ul><li>Increasingly product diversification </li></ul></ul><ul><ul><li>Pioneer in manufacturing helmets in Brazil, with a market share of approximately 50% and a revenue CAGR of 25.8% between 2004 and 2008 </li></ul></ul>Opportunities <ul><ul><li>Increase in investments on public safety by the federal, state and municipal government </li></ul></ul><ul><ul><li>Increasing demand for light weapons in the U.S. market </li></ul></ul><ul><ul><li>Continuing growth in the segment of motorcycle helmets, enhanced by the significant growth of motorcycle sales in Brazil </li></ul></ul>Weaknesses <ul><ul><li>Highly dependent on the firearm segment, currently accounting for 59.3% of the consolidated revenues </li></ul></ul><ul><ul><li>Operates in low margin and low growth segments, i.e. plastic containers </li></ul></ul>Threats <ul><ul><li>Restrictions on firearm trade by local or international pressure </li></ul></ul><ul><ul><li>Entry of foreign manufacturers in Brazil, increasing competition </li></ul></ul><ul><ul><li>Sharp devaluation of the dollar, reducing profitability of exports </li></ul></ul>
  10. 10. Overview <ul><ul><li>For over 60 years, operates in local and foreign markets </li></ul></ul><ul><ul><li>In 2008, 59.7% of revenues was generated by exports, mainly from the U.S. market </li></ul></ul><ul><ul><li>Public security market has a positive growth perspective. </li></ul></ul><ul><ul><li>Exports also have positive growth perspectives due to the increase of U.S. demand, and growth indications in other export markets </li></ul></ul><ul><ul><li>In May 2008, Taurus was awarded the “Handgun of the Year 2008”, by the National Rifle Association, for its revolver TAURUS JUDGE </li></ul></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Revolvers, pistols, carbines, air guns and police weapons </li></ul></ul>Products Firearms – Forjas Taurus and TIMI Taurus is one of the world’s largest handgun manufacturer
  11. 11. Overview <ul><ul><li>The Company manufactures forged products up to 15Kg, using materials such as carbon steel, alloy steel, stainless steel, titanium, aluminum and other non-ferrous metals </li></ul></ul><ul><ul><li>Main consumers are the Automotive, Energy, Oil, Motorcycle and Agriculture industries </li></ul></ul><ul><ul><li>In 2006 and 2007, Taurus increased its installed capacity for machining, which brings a higher added value to the final product, compared to parts that are only forged </li></ul></ul><ul><ul><li>There are good perspectives for the company’s revenues growth, due to (i) the increase in machined production, (ii) the addition of new forging machinery and (iii) the growth of M.I.M – Metal Injection Molding sales </li></ul></ul>Products Forged Products – Forjas Taurus High technology in forged and machined products
  12. 12. Overview <ul><ul><li>Pioneer in manufacturing helmets in Brazil </li></ul></ul><ul><ul><li>Local market leader of bullets-proof vests and motorcycle helmets </li></ul></ul><ul><ul><li>Taurus Blindagens was founded in 1983 </li></ul></ul><ul><ul><li>Quality, design and reliability. Products are certified by INMETRO (Brazilian Institute of Metrology, Standards and Industrial Quality) </li></ul></ul><ul><ul><li>Products </li></ul></ul><ul><ul><ul><li>Bullet proof and tactical vests and anti-riot shields </li></ul></ul></ul><ul><ul><ul><li>Motorcycle helmets, rain gear and leather clothing </li></ul></ul></ul><ul><ul><ul><li>Plastic bins and containers </li></ul></ul></ul>Products Bullet-Proof Vests and Helmets – Taurus Blindagens and Helmets Taurus Blindagens and Taurus Helmets lead the segments of bullet-proof vests and motorcycle helmets, respectively
  13. 13. Overview <ul><ul><li>The only manufacturer of large machine tools in Latin America </li></ul></ul><ul><ul><li>More than 3,000 machines installed in over 40 countries </li></ul></ul><ul><ul><li>Main customers are aeronautics and space industry, automotive, steel, construction, power generation, defense, nuclear, oil, among others </li></ul></ul><ul><ul><li>Service Portfolio </li></ul></ul><ul><ul><ul><li>Manufacturing of welding components, job shop, heat treatment, and finishing of structural components </li></ul></ul></ul><ul><ul><ul><li>Machine tool retrofitting </li></ul></ul></ul>Products Machine Tools – Taurus Máquinas-Ferramenta Ltda. Taurus Máquinas-Ferramenta leads Latin American manufacturing of horizontal and vertical boring and milling machines, vertical turning lathes and machining centers
  14. 14. Overview <ul><ul><li>Famastil exports to the five continents, selling its products to wholesalers, dealers and department stores </li></ul></ul><ul><ul><li>The merger of Famastil Ferramentas and Taurus occurred in 2004 </li></ul></ul><ul><ul><li>Products </li></ul></ul><ul><ul><li>Mechanic hand tools </li></ul></ul><ul><ul><li>Household tools </li></ul></ul><ul><ul><li>Construction tools </li></ul></ul><ul><ul><li>Gardening tools </li></ul></ul>Products Hand Tools and Garden Accessories – Famastil Famastil manufacturers tools for engineering, construction and gardening