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1
Quarterly Information
                        3Q12



                               2
Company




    Defense &
    Security




    Metallurgy &
    Plastics




    Earnings
                   WORLD´S FOREMOST FIREARMS MAKER




    Strategies




    Guidance
3
FORJAS TAURUS’ DNA IS
          LEADERSHIP AND
          INNOVATION EVEN IN
          DIFFERENT MARKETS
Company




                                  4
TAURUS IS CONCERNED WITH
          QUALITY, INNOVATION,
          PROFISSIONALISM AND SECURITY
Company




                                         5
00´s
          1991 – Champion’s assets                     2000 – Taurus Capacetes
          1997 – Rossi – Revólver                      2004 – Famastil
                     (use of the brand,                2004 – Máquinas-Ferramenta
                     technology, assets and            2006 – Taurus Helmets
                     productive processes)      90´s   2006 – Lançamento do “The Judge”
Company




          1999 – Pollymer and titanium guns            2008 – Taurus Inv. Imobiliários
                                                       2008 – Rossi – Armas longas
          1980 – Beretta
          1982 – IPO
                                                       2008 – Metus
          1983 – Internationalization: Taurus          2010 – Taurus Blindagens Nordeste
          International
          1985 – Taurus Ferramentas
                                                80´s   2011 – Jul:IAdmission to Nível 2 BM&FBOVESPA
                                                            – Oct: Acquisition ofSteelInject
          1986 – Induma                                     – Dec: Segregation of business industries
          1988 – Taurus Holdings                                into guns and metallurgy and plastics
                                                             – Election of new IRO.
                                                       2012 – Acquisition of Heritage Manufacturing
                                                70´s            Inc.
          1970 – Control to foreign investors               – Sell of TMFL
          1977 – Forjas Taurus by Polimetal                 – Aproval of realocation of M.I.M. and
                                                                long weapons industrials sites at São
                                                30´s            Leopoldo
          1939 – Forjas Taurus


                                                                                           6
Rio Grande do Sul   Paraná    Bahia


          7 Units       4 Units         2 Units   1 Unit
Company




                         Florida

          1 Unit        1 Unit




                                                           7
•   73 YEARS OF
              OPERATIONS
          •   LISTED
              COMPANY
              SINCE 1982
Company




          •   SIGNATORY TO CORPORATE
              GOVERNANCE LEVEL 2 FOR A
              YEAR

          •   LONG TERM RATING A-(BRA)

                                         8
100% OF TAG
                                   ALONG

          Corporate Governance
                                  (ORDINARY AND PREFERRED)




                                  35% PAYOUT
                                        (SEMESTRAL)
Company




                                  PREFERRED
                                 VOTING RIGHTS
                                    (IMPORTANT SUBJECTS)



                                                             9
ON     47.137.539 33,3%
          MAINLY SHAREHOLDERS                                                     PN     94.275.078 67,3%
                                                                                  TOTAL 141.412.617 100,0%

                                            Total


                                                      24%

                             39%


                                                                                             PREVI
                                                           15%
                                                                                             Invespar/LFCE
                                                     3%                                      FIGI FIA
                                       9%
                                             4% 6%
Company




                      ON                                         PN                          Geração Futuro
                                                                                             Advis Investimentos
                                                                                             Tesouraria
                           14%
                20%                                                                          Free Float
                                                                       30%

           6%                                        48%
           0%
           7%                                                                0%
                                                                            6%
                9%               44%
                                                                       6%
                                                                 10%



                                                                                        October 31, 2012

                                                                                                           10
SHAREHOLDERS COMPOSITION



                  8%
                                   ASSETS / FUNDS / CLUBS
                             28%
                                   FOUNDATION AND SECURITIES
Company




            31%

                                   INDIVIDUALS


                                   OTHER / COPORATIONS / FOREX
                       33%




                                        September 28, 2012

                                                             11
Taurus and the market in 2012


             NUUMBER OF
                                      AVERAGE BRL 622
           TRADES: GROWTH
                                      THOUSANDS PER
               OF 99%
                                           DAY
Company




           PREFERRED FINANCIAL VOLUME GROWTH
                144% COMPARING TO DEC/11


                  2012, October average over 2011, December average

                                                              12
Taurus and the market in 2012


          IN 21 SEP, 2012, FJTA4-BR
          REACHED NOMINAL
          APPRECIATION OF 133%
          DURING THE CURRENT YEAR.
Company




          IT´S THE 1st SHARE MOST
          PROFITABLE IN BMF&BOVESPA




                                          13
CORPORATE GOVERNANCE IS
           SOMETHING RELEVANT FOR US
Company




          Taurus was one of the 6 finalists of 2012 JBGC Award
          competing in the Greater Evolution on Corporate Governance
          of Listed Companies category. All 372 listed companies were
          running for the award.                                  14
SHAREHOLDERS
                                                                          AUDIT AND RISK




                                         BOARD OF                         COMPENSATION AND
TAX BOARD         INTERNAL AUDIT                             COMITEES         PERSONEL
                                         DIRECTORS
                                                                            DEVELOPMENT



                                                                           MANAGEMENT
                                                                               AND
                                           CHIEF                            CORPORATE
                                         EXECUTIVE                         GOVERNANCE
                                          OFFICER




         CHIEF                 CHIEF                    CHIEF           INVESTOR
     ADMINISTRATIVE          FINANCIAL               OPERATIONAL        RELATIONS
        OFFICER               OFFICER                  OFFICER           OFFICER



                       DEFENSE         DEFENSE
                                                        HELMETS AND     FORJARY
                      COMERCIAL      INDUSTRIAL
    TIMI CEO                                            BULLET PROOF    GENERAL
                      EXECUTIVE       EXECUTIVE
                                                          GENERAL       MANAGER
                       OFFICER         OFFICER
                                                         MANAGER                    15
Taurus
                                                               Invest.
                                                             Imobiliários
                                                                Ltda.




                        Taurus
Company




                                                                                          Polimetal
                      Holding Inc.


             Taurus                                                           Famastil                    Taurus
                                 Taurus                    Taurus                         SteelInject
          International                                                        Taurus                   Máquinas-
                               Properties                Blindagens                       Injeção de
           Manufacturi                                                      Ferramentas                 Ferramenta
                                   Inc                      Ltda.                         Aços Ltda.
             ng Inc.                                                            S.A.                      Ltda.*

                                              Taurus
                                                                   Taurus
                                            Blindagens
                                                                Helmets Ind.
                                             Nordeste
                                                                 Plás. Ltda.
                                               Ltda.




                                                                                                         16
Company




     Defense &
     Security




     Metallurgy &
     Plastics




     Earnings
                    WORLD´S FOREMOST FIREARMS MAKER




     Strategies




     Guidance
17
DEFENSE AND SECURITY




                   18
National Instant Criminal Background
                  Check System – NICS                         USA buying intentions

            2.000.000

            1.800.000

            1.600.000

            1.400.000

            1.200.000

            1.000.000
Defense &




             800.000
Security




             600.000

             400.000
                                                    CAGR: 7% p.a.
             200.000

                   0
                        JAN   FEB   MAR    APR   MAY    JUN   JUL   AUG       SEP      OCT       NOV        DEC
                                    2008     2009      2010     2011        2012
                                                                          Fonte: Federal Bureau of Investigation


                                                                                                       19
MARKETS
              Domestic Market     Foreign market
Defense &
Security




                Public Secutiry      Consumer
                                   Hobby / Collector
               Private Security      Sport / Hunt
                                  individuals/Others
                    Others
                                   Public Securty

                                  Private Securty
                                                       20
21
PUBLIC SECURITY
              Civil and Military Police
              Federal Police
              State Police
              Municipal Police
              Armed Force
Defense &




            PRIVATE
Security




            SECURITY



                                          22
90% BRAZILIAN SMALL ARMS
            MARKET SHARE

            PEERS: CBC AND IMBEL TOGETHER
            ANSWER FOR10% OF MARKET
            SHARE
Defense &
Security




                                        23
FOREIGN MARKET




            24
20% OF THE
            REVOLVERS USA
            MARKET.
            USA REPRESENTS
            90% OF
            COMPANY’S
            EXPORTS
Defense &
Security




                             25
TAURUS FOR HOBBY
            AND PERSONAL
            SECURITY IN THE USA,
            CANADA AND MEXICO

            Jessie Harrison
Defense &
Security




            Athlete – Capitain of
            Team Taurus




            2012 Speed Shooting World
                           Champion     26
Defense &   EXPORTS FOR OVER 70 COUNTRIES
Security




                     6% of net sales        27
Company




     Defense &
     Security




     Metallurgy &
     Plastics




     Earnings
                    WORLD´S FOREMOST FIREARMS MAKER




     Strategies




     Guidance
28
Metallurgy & Plastics




                    29
HISTORICAL LICENSE PLATENING
                                                                       In thousands
               200
               180
               160
               140
               120
Metallurgy &




               100
                80
Plastics




                60
                40
                20
                 0
                     jan   feb   mar   apr    may    jun   jul   aug   sep        oct
                                             2011   2012
                                                                             Fonte: Fenabrave


                                                                                   30
MOTORCYCLE SALES IN BRAZIL

                          +12,4%
                                           In thousands


                                   1.940           -13,3%
                  1.804
Metallurgy &




                                           1.434
                                                            1.243
Plastics




                   2010            2011    9M11             9M12

                                                              Fonte: Fenabrave

                                                                      31
HELMETS SALES IN BRAZIL

                                            In thousands
                           +26,4%
                                                    +12,3%


                                    2.414
Metallurgy &




                   1.910                                      1.976
                                            1.760
Plastics




                   2010             2011    9M11              9M12
                                                        Fonte: Dados da Companhia


                                                                         32
55% OF BRAZILIAN
               MOTORCYCLE HELMETS
               MARKET SHARE
Metallurgy &
Plastics




                                    33
4.8 MILLONS
               UNITS/YEAR
               POTENTIAL MARKET
Metallurgy &
Plastics




                                  34
Metallurgy &   SAN MARINO   FÓRMULA 1
Plastics




               REFERENCE IN QUALITY AND
                SECURITY FOR LOW COST

                                        35
A NEW COUNSCIOUSNESS
               WASTE COLLECTOR
Metallurgy &
Plastics




                                      36
TO PROTECT
               YOUR LIFE,
               COUNT WITH
               TAURUS
               PROTECTION
Metallurgy &




               VESTS
Plastics




                            37
M.I.M
                   – METAL INJECTION MOLDING -


               TECHNOLOGY & PRECISION IN
               TAURUS’ COMPONENTS
Metallurgy &
Plastics




                                                 38
TAURUS TOOLS
        PREMIUM, QUALITY
        AND INNOVATION

        35% STAKE AT
        FAMASTIL
Tools




                           39
Company




     Defense &
     Security




     Metallurgy &
     Plastics




     Earnings
                    WORLD´S FOREMOST FIREARMS MAKER




     Strategies




     Guidance
40
RESULTADOS
Earnings




              41
net sales by market


                  In millions of BRL
                                                                                                 + 13,8%


                                                                                                           504.8

                                                                                           443.7
                              61%                        57%
            58%                         56%
Earnings




            42%                39%      44%              43%
                                                                                                           61%
                                                                                           54%
                    + 14,4%
                                               + 18,7%
                                                                          + 7,9%
                              178.4                  175.4
            155.9                      147.8                      140.0            151.1
            58%               61%                        57%
                                        56%                        47%             64%     46%             39%

            42%               39%       44%              43%       53%             36%

            1Q11              1Q12     2Q11              2Q12     3Q11             3Q12    9M11            9M12

                                                Domestic Market   Foreign Market




                                                                                                       42
historical net sales by market

                FOREIGN
                                                  CAGR + 8 %
                DOMESTIC



                                                    + 13,4%                             + 13,3%

                                    + 39,6%                    - 10,3%   + 1,5%

                                                       679.4                                700.1

                      + 5,0%                                     609.1       618.0
Earnings




                                          599.2

                            429.3
              408.9                                   59%                                 55%
                                         47%                   53%         53%

                           39%
              49%

                                         53%                     47%                       45%
                                                      41%                    47%
              51%           61%



              2006         2007         2008         2009      2010       2011       Forecast 2012



                                                                                                     43
net sales by geography




                                            6%               9M12

                                            6%
Earnings




                                                             9M11
                                                       39%
              Brazil
                                                 46%
              USA, Canada, Mexico     48%
              Other Countries       55%




                                                             44
net sales by market


            EXPORTS ACCOUNTS
            FOR AROUND 61% OF
            TOTAL NET SALES
Earnings




                                 45
net sales by segment


               72%   72%
Earnings




                           20%    18%

                                         08%   09%



                 Guns       Helmets        Others
                           9M11   9M12

                                                     46
ebitda and margin ebtida

               In millions of BRL

                                                                                             27%
                                                                                                     118,8



                                                                                            93,7




                                             55%                             9%
                      21%
Earnings




                                                    44,0                                            23,5%
                            36,5                                                   38,2
                                                                     35,1
            30,1                                                                           21,1%
                                     28,5
                                                   25,1%
                                                                     25,1%        25,3%
                        20,5%       19,3%
              19,3%


           30,125       36,518      28,467         44,011        35,102           38,245   93,694   118,774
           1Q11          1Q12       2Q11           2Q12              3Q11         3Q12     9M11     9M12




                                                            EBITDA


                                                                                                       47
adj. ebitda Vs capex

            Millions of BRL                                                                              + 5.8%
                                                       + 6.3%                       + 3.9%
                                                                      - 0.01%
                                        + 45.1%



                                                                                                   150
                                                                                   142
                                                       137           137                                          EBITDA
                      + 57.7 %           129
                                                                                                                  CAPEX
                                                                                                                  % EBITDA
Earnings




                           89                                                                                     % CAPEX
                                                                                                          79

            56                                                             58
                                                53
                                                             46                          47              + 67%
                 35              35
                                                                           + 27%
                                               + 50%         - 14%                       - 18%
                                 + 1%




             2006          2007           2008          2009          2010          2011         Forecast 2012


                            CAGR EBITDA: 17.8% p.a.
                            CAGR CAPEX: 14.4% p.a.
                                                                                                                   48
gross margin by product


                                         41%
             Total
                                         42%

                                        40%
             Guns                              45%
Earnings




                                         42%
           Helmets                        44%

                                                 50%
            Others
                          16%


                          9M12   9M11

                                                49
financial position



                                                          31/06/2012    30/09/2012      Var. Sep/12 x Jun/12
           Short term indebtedness                             158.7         174.4                    10%
           Long term indebtedness                              315.1         371.4                    18%
           Exchange Serves                                       49.8          50.0                    0%
           Debentures                                          110.1         112.0                     2%
           Antecipation Mortages                                 32.6          30.8                   -6%
Earnings




           Derivatives                                          -15.2         -20.0                   31%
           Gross Indetbetedness                                651.1         718.6                    10%
           (-) Cash available and financial investments        134.3         187.3                    39%
           Net Indebtedness                                    516.8         531.3                     3%
           EBITDA                                              162.9         164.6                     1%
           Net Indebtedness/EBITDA                             3.17 x        3.23 x
           EBITDA/Financial Expenses Net                       3.09 x        4.19 x


                                                                                      In millions of BRL




                                                                                                  50
CONSOLIDATED INVESTMENTS ON
           PROPRETY, PLANT AND EQUIPMENT




           CONSOLIDATED INVESTMENTS                9M11                9M12
           Expansion of Capacity              16,900        44%   23,492         59%
           Modernization of Industrial Park   7,992         21%   8,997          23%
Earnings




           Cintinous Improvement              7,820         20%   4,457          11%
           Others                             5,616         15%   2,812           7%
                         Total                     38,328              39,758




                                                                                51
Company




     Defense &
     Security




     Metallurgy &
     Plastics




     Earnings
                    WORLD´S FOREMOST FIREARMS MAKER




     Strategies




     Guidance
52
STRATEGIES




             53
PROSPECT AND
             EXPAND TO NEW
             MARKETS AND
             PRODUCTS
Strategies




                             54
RELOCATION,
             MODERNIZATION AND
             CENTRALIZATION
             OF INDUSTRIAL
             FACILITIES
Strategies




                                 55
DEBT EXTENSION
             AND REDUCTION
             OF ITS COSTS
Strategies




                              56
EXPANSION THROUGHT
             ACQUISITIONS
Strategies




                                  57
Company




     Defense &
     Security




     Metallurgy &
     Plastics




     Earnings
                    WORLD´S FOREMOST FIREARMS MAKER




     Strategies




     Guidance
58
INTERNATIONAL FORECAST 2012


           INCREASE 10% OF USA
           MARKET NET SALES AND 10%
           OF OTHER COUNTRIES
Guidance




             ENLARGE MIAMI UNIT AND EXPAND IN 50% HERITAGE
             PRODUCTION FOR THE NEXT THREE YEARS




                                                             59
HELMETS FORECAST 2012



                        LEADERSHIP IN BRAZILIAN
                        MOTORCYCLE HELMETS MARKET
                        (OVER 55% OF SHARE).
Guidance




                        SHOULD GROW 18% IN 2012.




                                              60
GUIDANCE 2012
           NET SALES MUST BE OVER BRL 700 MILLIONS
           ACCOMPLISHED:
           9M12: 72,1%
           9M11: 71,8%

           EBITDA MUST BE OVER BRL 150 MILLIONS
           ACCOMPLISHED
           9M12: 79,1%
Guidance




           9M11: 71,1%

           CAPEX MUST BE 78,6 MILLIONS BRL (INCLLUDING ACQUISITIONS)
           ACCOMPLISHED:
           9M12: 92,6%
           9M11: 81,6%




                                                                61
INVESTMENT FUNDAMENTALS

           GREAT MACROECONOMICS OUTLOOK

           COMPANY ´S POTENCIAL GROWTH

           HIGH DIVIDEND YIELD

           STRATEGIC PLANNING BEING DEVELOPED FOR NEXT 3 YEARS
Guidance




           MORE EMPHASIS ON NEW MARKETS AND NEW PRODUCTS

           EXPAND MARKET SHARE BY ACQUISITIONS AND DEVELOPMENT
           OF NEW PRODUCT MIX (HANDGUNS+HUNTING RIFLES +
           MARKET NICHS+ MILITARY GUNS+LESS LETAL GUNS)




                                                            62
2012 10-16 - 3 t12 conference call- en
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2012 10-16 - 3 t12 conference call- en

  • 1. 1
  • 3. Company Defense & Security Metallurgy & Plastics Earnings WORLD´S FOREMOST FIREARMS MAKER Strategies Guidance 3
  • 4. FORJAS TAURUS’ DNA IS LEADERSHIP AND INNOVATION EVEN IN DIFFERENT MARKETS Company 4
  • 5. TAURUS IS CONCERNED WITH QUALITY, INNOVATION, PROFISSIONALISM AND SECURITY Company 5
  • 6. 00´s 1991 – Champion’s assets 2000 – Taurus Capacetes 1997 – Rossi – Revólver 2004 – Famastil (use of the brand, 2004 – Máquinas-Ferramenta technology, assets and 2006 – Taurus Helmets productive processes) 90´s 2006 – Lançamento do “The Judge” Company 1999 – Pollymer and titanium guns 2008 – Taurus Inv. Imobiliários 2008 – Rossi – Armas longas 1980 – Beretta 1982 – IPO 2008 – Metus 1983 – Internationalization: Taurus 2010 – Taurus Blindagens Nordeste International 1985 – Taurus Ferramentas 80´s 2011 – Jul:IAdmission to Nível 2 BM&FBOVESPA – Oct: Acquisition ofSteelInject 1986 – Induma – Dec: Segregation of business industries 1988 – Taurus Holdings into guns and metallurgy and plastics – Election of new IRO. 2012 – Acquisition of Heritage Manufacturing 70´s Inc. 1970 – Control to foreign investors – Sell of TMFL 1977 – Forjas Taurus by Polimetal – Aproval of realocation of M.I.M. and long weapons industrials sites at São 30´s Leopoldo 1939 – Forjas Taurus 6
  • 7. Rio Grande do Sul Paraná Bahia 7 Units 4 Units 2 Units 1 Unit Company Florida 1 Unit 1 Unit 7
  • 8. 73 YEARS OF OPERATIONS • LISTED COMPANY SINCE 1982 Company • SIGNATORY TO CORPORATE GOVERNANCE LEVEL 2 FOR A YEAR • LONG TERM RATING A-(BRA) 8
  • 9. 100% OF TAG ALONG Corporate Governance (ORDINARY AND PREFERRED) 35% PAYOUT (SEMESTRAL) Company PREFERRED VOTING RIGHTS (IMPORTANT SUBJECTS) 9
  • 10. ON 47.137.539 33,3% MAINLY SHAREHOLDERS PN 94.275.078 67,3% TOTAL 141.412.617 100,0% Total 24% 39% PREVI 15% Invespar/LFCE 3% FIGI FIA 9% 4% 6% Company ON PN Geração Futuro Advis Investimentos Tesouraria 14% 20% Free Float 30% 6% 48% 0% 7% 0% 6% 9% 44% 6% 10% October 31, 2012 10
  • 11. SHAREHOLDERS COMPOSITION 8% ASSETS / FUNDS / CLUBS 28% FOUNDATION AND SECURITIES Company 31% INDIVIDUALS OTHER / COPORATIONS / FOREX 33% September 28, 2012 11
  • 12. Taurus and the market in 2012 NUUMBER OF AVERAGE BRL 622 TRADES: GROWTH THOUSANDS PER OF 99% DAY Company PREFERRED FINANCIAL VOLUME GROWTH 144% COMPARING TO DEC/11 2012, October average over 2011, December average 12
  • 13. Taurus and the market in 2012 IN 21 SEP, 2012, FJTA4-BR REACHED NOMINAL APPRECIATION OF 133% DURING THE CURRENT YEAR. Company IT´S THE 1st SHARE MOST PROFITABLE IN BMF&BOVESPA 13
  • 14. CORPORATE GOVERNANCE IS SOMETHING RELEVANT FOR US Company Taurus was one of the 6 finalists of 2012 JBGC Award competing in the Greater Evolution on Corporate Governance of Listed Companies category. All 372 listed companies were running for the award. 14
  • 15. SHAREHOLDERS AUDIT AND RISK BOARD OF COMPENSATION AND TAX BOARD INTERNAL AUDIT COMITEES PERSONEL DIRECTORS DEVELOPMENT MANAGEMENT AND CHIEF CORPORATE EXECUTIVE GOVERNANCE OFFICER CHIEF CHIEF CHIEF INVESTOR ADMINISTRATIVE FINANCIAL OPERATIONAL RELATIONS OFFICER OFFICER OFFICER OFFICER DEFENSE DEFENSE HELMETS AND FORJARY COMERCIAL INDUSTRIAL TIMI CEO BULLET PROOF GENERAL EXECUTIVE EXECUTIVE GENERAL MANAGER OFFICER OFFICER MANAGER 15
  • 16. Taurus Invest. Imobiliários Ltda. Taurus Company Polimetal Holding Inc. Taurus Famastil Taurus Taurus Taurus SteelInject International Taurus Máquinas- Properties Blindagens Injeção de Manufacturi Ferramentas Ferramenta Inc Ltda. Aços Ltda. ng Inc. S.A. Ltda.* Taurus Taurus Blindagens Helmets Ind. Nordeste Plás. Ltda. Ltda. 16
  • 17. Company Defense & Security Metallurgy & Plastics Earnings WORLD´S FOREMOST FIREARMS MAKER Strategies Guidance 17
  • 19. National Instant Criminal Background Check System – NICS USA buying intentions 2.000.000 1.800.000 1.600.000 1.400.000 1.200.000 1.000.000 Defense & 800.000 Security 600.000 400.000 CAGR: 7% p.a. 200.000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 2011 2012 Fonte: Federal Bureau of Investigation 19
  • 20. MARKETS Domestic Market Foreign market Defense & Security Public Secutiry Consumer Hobby / Collector Private Security Sport / Hunt individuals/Others Others Public Securty Private Securty 20
  • 21. 21
  • 22. PUBLIC SECURITY Civil and Military Police Federal Police State Police Municipal Police Armed Force Defense & PRIVATE Security SECURITY 22
  • 23. 90% BRAZILIAN SMALL ARMS MARKET SHARE PEERS: CBC AND IMBEL TOGETHER ANSWER FOR10% OF MARKET SHARE Defense & Security 23
  • 25. 20% OF THE REVOLVERS USA MARKET. USA REPRESENTS 90% OF COMPANY’S EXPORTS Defense & Security 25
  • 26. TAURUS FOR HOBBY AND PERSONAL SECURITY IN THE USA, CANADA AND MEXICO Jessie Harrison Defense & Security Athlete – Capitain of Team Taurus 2012 Speed Shooting World Champion 26
  • 27. Defense & EXPORTS FOR OVER 70 COUNTRIES Security 6% of net sales 27
  • 28. Company Defense & Security Metallurgy & Plastics Earnings WORLD´S FOREMOST FIREARMS MAKER Strategies Guidance 28
  • 30. HISTORICAL LICENSE PLATENING In thousands 200 180 160 140 120 Metallurgy & 100 80 Plastics 60 40 20 0 jan feb mar apr may jun jul aug sep oct 2011 2012 Fonte: Fenabrave 30
  • 31. MOTORCYCLE SALES IN BRAZIL +12,4% In thousands 1.940 -13,3% 1.804 Metallurgy & 1.434 1.243 Plastics 2010 2011 9M11 9M12 Fonte: Fenabrave 31
  • 32. HELMETS SALES IN BRAZIL In thousands +26,4% +12,3% 2.414 Metallurgy & 1.910 1.976 1.760 Plastics 2010 2011 9M11 9M12 Fonte: Dados da Companhia 32
  • 33. 55% OF BRAZILIAN MOTORCYCLE HELMETS MARKET SHARE Metallurgy & Plastics 33
  • 34. 4.8 MILLONS UNITS/YEAR POTENTIAL MARKET Metallurgy & Plastics 34
  • 35. Metallurgy & SAN MARINO FÓRMULA 1 Plastics REFERENCE IN QUALITY AND SECURITY FOR LOW COST 35
  • 36. A NEW COUNSCIOUSNESS WASTE COLLECTOR Metallurgy & Plastics 36
  • 37. TO PROTECT YOUR LIFE, COUNT WITH TAURUS PROTECTION Metallurgy & VESTS Plastics 37
  • 38. M.I.M – METAL INJECTION MOLDING - TECHNOLOGY & PRECISION IN TAURUS’ COMPONENTS Metallurgy & Plastics 38
  • 39. TAURUS TOOLS PREMIUM, QUALITY AND INNOVATION 35% STAKE AT FAMASTIL Tools 39
  • 40. Company Defense & Security Metallurgy & Plastics Earnings WORLD´S FOREMOST FIREARMS MAKER Strategies Guidance 40
  • 42. net sales by market In millions of BRL + 13,8% 504.8 443.7 61% 57% 58% 56% Earnings 42% 39% 44% 43% 61% 54% + 14,4% + 18,7% + 7,9% 178.4 175.4 155.9 147.8 140.0 151.1 58% 61% 57% 56% 47% 64% 46% 39% 42% 39% 44% 43% 53% 36% 1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 9M11 9M12 Domestic Market Foreign Market 42
  • 43. historical net sales by market FOREIGN CAGR + 8 % DOMESTIC + 13,4% + 13,3% + 39,6% - 10,3% + 1,5% 679.4 700.1 + 5,0% 609.1 618.0 Earnings 599.2 429.3 408.9 59% 55% 47% 53% 53% 39% 49% 53% 47% 45% 41% 47% 51% 61% 2006 2007 2008 2009 2010 2011 Forecast 2012 43
  • 44. net sales by geography 6% 9M12 6% Earnings 9M11 39% Brazil 46% USA, Canada, Mexico 48% Other Countries 55% 44
  • 45. net sales by market EXPORTS ACCOUNTS FOR AROUND 61% OF TOTAL NET SALES Earnings 45
  • 46. net sales by segment 72% 72% Earnings 20% 18% 08% 09% Guns Helmets Others 9M11 9M12 46
  • 47. ebitda and margin ebtida In millions of BRL 27% 118,8 93,7 55% 9% 21% Earnings 44,0 23,5% 36,5 38,2 35,1 30,1 21,1% 28,5 25,1% 25,1% 25,3% 20,5% 19,3% 19,3% 30,125 36,518 28,467 44,011 35,102 38,245 93,694 118,774 1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 9M11 9M12 EBITDA 47
  • 48. adj. ebitda Vs capex Millions of BRL + 5.8% + 6.3% + 3.9% - 0.01% + 45.1% 150 142 137 137 EBITDA + 57.7 % 129 CAPEX % EBITDA Earnings 89 % CAPEX 79 56 58 53 46 47 + 67% 35 35 + 27% + 50% - 14% - 18% + 1% 2006 2007 2008 2009 2010 2011 Forecast 2012 CAGR EBITDA: 17.8% p.a. CAGR CAPEX: 14.4% p.a. 48
  • 49. gross margin by product 41% Total 42% 40% Guns 45% Earnings 42% Helmets 44% 50% Others 16% 9M12 9M11 49
  • 50. financial position 31/06/2012 30/09/2012 Var. Sep/12 x Jun/12 Short term indebtedness 158.7 174.4 10% Long term indebtedness 315.1 371.4 18% Exchange Serves 49.8 50.0 0% Debentures 110.1 112.0 2% Antecipation Mortages 32.6 30.8 -6% Earnings Derivatives -15.2 -20.0 31% Gross Indetbetedness 651.1 718.6 10% (-) Cash available and financial investments 134.3 187.3 39% Net Indebtedness 516.8 531.3 3% EBITDA 162.9 164.6 1% Net Indebtedness/EBITDA 3.17 x 3.23 x EBITDA/Financial Expenses Net 3.09 x 4.19 x In millions of BRL 50
  • 51. CONSOLIDATED INVESTMENTS ON PROPRETY, PLANT AND EQUIPMENT CONSOLIDATED INVESTMENTS 9M11 9M12 Expansion of Capacity 16,900 44% 23,492 59% Modernization of Industrial Park 7,992 21% 8,997 23% Earnings Cintinous Improvement 7,820 20% 4,457 11% Others 5,616 15% 2,812 7% Total 38,328 39,758 51
  • 52. Company Defense & Security Metallurgy & Plastics Earnings WORLD´S FOREMOST FIREARMS MAKER Strategies Guidance 52
  • 54. PROSPECT AND EXPAND TO NEW MARKETS AND PRODUCTS Strategies 54
  • 55. RELOCATION, MODERNIZATION AND CENTRALIZATION OF INDUSTRIAL FACILITIES Strategies 55
  • 56. DEBT EXTENSION AND REDUCTION OF ITS COSTS Strategies 56
  • 57. EXPANSION THROUGHT ACQUISITIONS Strategies 57
  • 58. Company Defense & Security Metallurgy & Plastics Earnings WORLD´S FOREMOST FIREARMS MAKER Strategies Guidance 58
  • 59. INTERNATIONAL FORECAST 2012 INCREASE 10% OF USA MARKET NET SALES AND 10% OF OTHER COUNTRIES Guidance ENLARGE MIAMI UNIT AND EXPAND IN 50% HERITAGE PRODUCTION FOR THE NEXT THREE YEARS 59
  • 60. HELMETS FORECAST 2012 LEADERSHIP IN BRAZILIAN MOTORCYCLE HELMETS MARKET (OVER 55% OF SHARE). Guidance SHOULD GROW 18% IN 2012. 60
  • 61. GUIDANCE 2012 NET SALES MUST BE OVER BRL 700 MILLIONS ACCOMPLISHED: 9M12: 72,1% 9M11: 71,8% EBITDA MUST BE OVER BRL 150 MILLIONS ACCOMPLISHED 9M12: 79,1% Guidance 9M11: 71,1% CAPEX MUST BE 78,6 MILLIONS BRL (INCLLUDING ACQUISITIONS) ACCOMPLISHED: 9M12: 92,6% 9M11: 81,6% 61
  • 62. INVESTMENT FUNDAMENTALS GREAT MACROECONOMICS OUTLOOK COMPANY ´S POTENCIAL GROWTH HIGH DIVIDEND YIELD STRATEGIC PLANNING BEING DEVELOPED FOR NEXT 3 YEARS Guidance MORE EMPHASIS ON NEW MARKETS AND NEW PRODUCTS EXPAND MARKET SHARE BY ACQUISITIONS AND DEVELOPMENT OF NEW PRODUCT MIX (HANDGUNS+HUNTING RIFLES + MARKET NICHS+ MILITARY GUNS+LESS LETAL GUNS) 62