2016 01-08 - 3 q15-institucional [eng] logo regular

INSTITUTIONAL PRESENTATION

3Q15

January 08th, 2016

COMPANY

FIREARMS &

Accessories

3Q15 FINANCIAL

RESULTS STRATEGIES

HELMETS &

Accessories

- Pistols

- Revolvers

- Long Guns

- Air Guns

- Accessories

- Helmets for

Motorcyclists

- Motorcycle case

- Accessories

HELMETS FIREARMS OTHERS

- Containers

- Bins

- Metal Injection

Molding

LARGEST MANUFACTURER OF

REVOLVERS

LEADING NATIONAL HELMETS’

PRODUCTION

BRAZILIAN COMPANY WITH METAL

INJECTION MOLDING TECHNOLOGY

COMPANY

OVERVIEW

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

2,800 Employees

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´s 2008 – Rossi – Long Guns 2004 – Famastil participation acquisition

2016 A NEW COMPANY

New Headquarter in São Leopoldo

New products portfolio

New production increase

SAP Go live

TIMELINE

COMPANY

CORPORATE GOVERNANCE

PUBLIC OFFERING IN CASE OF CHANGE

OF COMPANY’S CONTROL

DIVIDENDS 35%

MINIMUM OF 40% INDEPENDENT

BOARD MEMBERS

VOTING RIGHTS TO PREFERRED SHARES

(In Relevant Topics)

COMPANY

BOARD AND COMMITTEES

Jorio Dauster Magalhães e Silva

Fernando José Soares

Estima

João Verner Juenemann

Chairman (Independent)

Vice – Chairman

Independent

60% of Independent

Members

Audit and Risks Committee

João Verner Juenemann Fábio Luiz Munhoz Mazzaro Thiago Piovesan (CFO & IRO)

COMPANY Fábio Luiz Munhoz Mazzaro

Marcos Bodin

Comnene

Independent

STATUTORY AND EXECUTIVE BOARD OF DIRECTORS

COMPANY

CEO* Marco Aurélio Salvany

CFO and IRO* Thiago Piovesan

CHIEF OF SALES MARKETING* Salésio Nuhs

DIRECTOR OF INTEGRATED

ENGINEERING Cristiano Macedo

DIRECTOR OF MARKETING

Eduardo Minghelli

CEO – TAURUS HOLDINGS INC, Anthony Acitelli

DIRETOR OF QUALITY

Raul Kriedt

DIRECTOR OF OPERATIONS

Jeferson Nargony

DIRECTOR OF METALLURGY OPERATIONS

Ricardo Machado

*Statutory Board elected in 06.29.2016

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

SHAREHOLDERS

COMPANY

SHAREHOLDERS PARTICIPAÇÃO

TOTAL ON PN

COMPANHIA BRASILEIRA DE CARTUCHOS - CBC 65.80% 89.55% 2.64%

MARCOS BODIN DE SAINT ANGE COMNENE 5.52% 0.03% 20.14%

ANTONIO MARCOS MORAES BARROS 4.70% 0.20% 16.69%

PREVI 3.70% 1.66% 9.12%

ESTIMAPAR 3.06% 4.21% 0.00%

OTHERS 17.22% 4.35% 51.41%

CAPITAL STOCK QUANTITY

ORDINARY SHARES 34,581,627

PREFERRED SHARES 13,001,621

TOTAL 47,583,248

COMPANY

FIREARMS &

Accessories

3Q15 FINANCIAL

RESULTS STRATEGIES

HELMETS &

Accessories

FIREARMS & Accessories

IMPACT FACTORS

SEASONALITY

DEMAND

ECONOMICS

COSTS

• Trade Fairs • Hunting Season

• Innovation • Quality • Actions

• Currency • Macroeconomics

• Labour • Raw Material

FIREARMS TAURUS’ MARKET – 85% Consolidated Net Revenue-3Q15


Law Enforcement (13%)

Consumer Market (87%) CONSUMER

Market

Law Enforcement (60%)

Consumer Market (40%)

17% Firearms Revenue

75% Firearms Revenue

8% Firearms Revenue

NICS – NATIONAL INSTANT CRIMINAL BACKGROUND CHECK SYSTEM

Fonte: NSSF


PEERS


PRODUCT GENERATIONS

4th Generation • Long Guns (restricted use)

3rd Generation • Long Guns

2nd Generation • Pistols

1st Generation • Revolvers


MARKETING & SALES


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,


BRAZILIAN MARKET


PUBLIC SECURITY

Source: Public Security 2015 Report (data from 2014)


- 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

MARKET SHARE

90% OF HANDGUNS MARKET SHARE IN BRAZIL PEERS: CBC AND IMBEL 10% OF MARKET SHARE


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,

TAURUS – EED since November 28th, 2013

TAURUS

DEFENSE

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

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;

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,

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 ,

FOREIGN MARKET


ATHLETES SPONSORSHIP


Mauro Cauduro

Outstanding positions on

Brazilian competitions

Jessie Duff

Champion of the 2014

World Shoot XVII

Taurus’ team captain

EXPORTS TO OTHER COUNTRIES (ex-USA)

EXPORTS FOR

MORE THAN

70 COUNTRIES


GROWTH STRATEGIES


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

COMPANY

FIREARMS &

Accessories

3Q15 FINANCIAL

RESULTS STRATEGIES

HELMETS &

Accessories

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

CLIENTS

Fleet Owners Wholesale Magazines Retail Governments

Trade Representatives

HELMETS

& Accessories

HELMETS MARKET IN NUMBERS

44% BRAZILIAN MOTORCYCLE HELMETS MARKET SHARE

5 MILLION UNITS/YEAR POTENTIAL MARKET

1,5 HELMETS PER

MOTORCYCLE IN

BRAZIL

6 YEARS: HELMET’S LIFE TIME ESTIMATED BY THE MARKET

HELMETS

& Accessories

Source: Taurus

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-

DAVIDSONEUA MT Espanha VAZ Brasil

10%

OTHERS

Market Share Brazil

45%

45%

HELMETS

& Accessories

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

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

CONTEINERS PLASTICS

A NEW

CONSCIOUSNESS

IN COLLECTION

METALLURGY

& PLASTICS

CONTEINERS PLASTICS - CLIENTS

Trade Representatives

Contractors Resale Residentail Condominums

Industries Prefectures

METALLURGY

& PLASTICS

CONTEINERS PLASTICS – PEERS

Other manufacturers not standardized and

imported

Contemar e Omnium

METALLURGY

& PLASTICS

M.I.M. – METAL INJECTION MOLDING

M.I.M. IS TECHNOLOGY ON TAURUS’ PRODUCTS

METALLURGY

& PLASTICS

M.I.M. – PROCESS

METALLURGY

& PLASTICS

M.I.M. – CLIENTS

DEFENSE & SECURITY

OTHERS

METALLURGY

& PLASTICS

FAMASTIL

TAURUS TOOLS PREMIUM LINE,

QUALITY AND INNOVATION

PARTICIPATION OF 35% IN

ASSOCIATED

METALLURGY

& PLASTICS

COMPANY

FIREARMS &

Accessories

3Q15 FINANCIAL

RESULTS STRATEGIES

HELMETS &

Accessories

HIGHLIGHTS 3Q15 FINANCIAL RESULTS

HIGHLIGHTS

47

NET REVENUE

20.9% CONTINGENCIES

Extra Provisions of

R$ 10,8 million

GROSS MARGIN

4.3p.p.

Domestic Market

26.2%

Foreign Market

18.8%

Firearms

5.1p.p.

Helmets

8.6p.p.

Adjusted EBITDA

62.1%

FOREIGN EXCHANGE

IMPACT

US$ 28.1% (CLOSING)

Financial Income:

Negative foreign

exchange impact

R$ 121.9 million

ECONOMIC AND FINANCIAL INDICATORS

3Q15 RESULTS

(1) Adjusted EBITDA: Earnings before interest, tax, depreciation and amortization and net earnings from non-recurring operations. The computing process was developed according the CVM nº 527 instruction of October 04, 2012.

COMPANY

FIREARMS &

Accessories

3Q15 FINANCIAL

RESULTS STRATEGIES

HELMETS &

Accessories

STRATEGIES

2016: A NEW CYCLE

RESUMPTION OF COMPANY

FUNDAMENTALS

REDUCING COMPANY

COMPLEXITY

FOCUS ON

PROFITABILITY

RESIZE THE INDUSTRIAL

PROCESS

STRATEGIES

2016: A NEW CYCLE

OPERATIONAL RESTRUCTURING

- New production concept

- Higher production capacity

- Greater efficiency and quality

FINANCIAL

RESTRUCTURING

- Cash generation

- Debt renegotiation

- Capital increase R$ 39.9 mm

- Operations transferring to SL

- Long guns consolidation

- Respect for the environment

SAP

STRATEGIES

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

STRATEGIES

2016: A NEW CYCLE

New Headquarter Address: Av. São Borja, 2181 – CEP: 93.032-000 – São Leopoldo – RS – Brazil

JULIAN BATISTA

IR Analyst

+55 51 3021 3001

www,taurusri,com,br

ri@taurus,com,br

THIAGO PIOVESAN

CFO & IRO

MARCO AURÉLIO SALVANY

CEO

http://www.taurusri.com.br/

mailto:[email protected]

2016 01-08 - 3 q15-institucional [eng] logo regular

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