março 2010 inglês

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FORJAS TAURUS FORJAS TAURUS S.A. S.A. MARCH, 2010 MARCH, 2010

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Page 1: Março 2010   inglês

FORJAS TAURUS S.A.FORJAS TAURUS S.A.MARCH, 2010MARCH, 2010

Page 2: Março 2010   inglês

SHAREHOLDING STRUCTURESHAREHOLDING STRUCTUREPOLIMETAL PARTICIPAÇÕES S.A. is the controlling shareholder of TaurusPOLIMETAL PARTICIPAÇÕES S.A. is the controlling shareholder of Taurus

Legend:Forjas

Taurus S.A.

Polimetal *94,1%

Ações Ordinárias Ações Preferenciais

Outros5,9%

Geração Futuro40,3%

PREVI29,4%

Outros30,3%

31,4% 26,7% 19,6% 20,3%2,0%

Capital Stock: R$ 201.000.000,00Number of shares:

ON: 42.744.720 PN: 85.489.440

X.X% = Current Percentage of Total Capital* In Consolidation

Taurus InternationalManufacturing, Inc.

Taurus Holdings, Inc.

Taurus Máquinas-Ferramenta Ltda.

Taurus Blindagens Ltda.

Taurus Properties, Inc.

Famastil TaurusFerramentas S.A.

Taurus Helmets Ind.Plástica Ltda.

Taurus BlindagensNordeste Ltda.

100% 100%

35% 24,2% 99,86%100%

99,99% 99,99%

Taurus Invest.Imobiliários Ltda.

75,8% 30,6%

69,4%

BraztechInternational, L.C.

100%

Polimetal Participações S.A.

Invespar72%

LFCE28%

Pentágono0,00011%

X.X% = Current Percentage of Common Capital

Page 3: Março 2010   inglês

ORGANIZATIONAL CHARTORGANIZATIONAL CHARTThe Company has implemented Corporate GovernanceThe Company has implemented Corporate Governance

Chairman of the Board / CEOLuis F. C. Estima

Strategic Committee Fiscal Counsel

Board of Directors

Senior Vice-PresidentRuy F. V. Soares

Human Resources DirectorMuciano N. Dias

Executive Vice-PresidentJorge Py Velloso

Source:Company reports

Page 4: Março 2010   inglês

COMPANY´S FACILITIES COMPANY´S FACILITIES The group is comprised by five business units in Brazil, The group is comprised by five business units in Brazil,

one in the USA and has approximately 4,601 employessone in the USA and has approximately 4,601 employess1

Forjas Taurus I• Firearms

Taurus Blindagens and Taurus Helmets•Helmets• Bulletproof vests• Anti-riot shields• Plastic containers

Famastil• Hand tools• Garden accessories

Forjas Taurus II• Forged products• Products heat treatment• Metal Injection Molding – M.I.M.

Taurus Wotan•Machine tools

TIMI (USA)• Firearms• Metal Injection Molding – M.I.M.

1As of March, 2010

Page 5: Março 2010   inglês

FIREARMS – FORJAS TAURUS and TIMITaurus is one of the world´s largest handgun manufacturer

Overview

For over 70 years, operates in local and foreign markets Market share: 90% in Brazil and 15% EUA

In 1st Quart. 10, 54,5% of revenues was generated by exports, mainly from the U.S. market

Public security market has a positive growth perspective

Exports also have positive growth perspectives due to the increase of U.S. demand, and growth indications in other export markets

Products: Revolvers, pistols, carbines, air guns and police weapons

Products

Page 6: Março 2010   inglês

Overview Products

FORGED PRODUCTS – FORJAS TAURUSHigh technology in forged and machined products

The Company manufactures forged products up to 25kg, using materials such as carbon steel, alloy steel, stainless steel, titanium, aluminum and other non-ferrous metals

Main consumers are the Automotive, Energy, Oil, Motorcycle and Agriculture industries

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

Page 7: Março 2010   inglês

Overview Products

HELMETS AND BULLET-PROOF VESTS - TAURUS BLINDAGENS and HELMETSTaurus Blindagens and Helmets lead the segments of bullet-proof vests

and motorcycle helmets, respectively

Pioneer in manufacturing helmets in Brazil

Local market leader of bullets-proof vests and motorcycle helmets

Quality, design and reliability. Products are certified by INMETRO (Brazilian Institute of Metrology, Standards and Industrial Quality)

Products

- Bullet proof and tactical vests and anti-riot shields

- Motorcycle helmets, rain gear and leather clothing

- Plastic bins and containers

Page 8: Março 2010   inglês

Overview Products

MACHINE TOOLS – TAURUS MÁQUINAS-FERRAMENTATaurus Máquinas-Ferramenta leads Latin American manufacturing of horizontal and vertical boring and milling machines, vertical turning lathes and machining centers

The only manufacturer of large machine tools in Latin American

More than 3,000 machines installed in over 40 countries

Main customers are aeronautics and space industry, automotive, steel, construction, power generation, defense, nuclear, oil, among others

Service Portfolio– Manufacturing of welding components,

job shop, heat treatment, and finishing of structural components

– Machine tool retrofitting

Page 9: Março 2010   inglês

Overview Products

HAND TOOLS AND GARDEN ACCESSORIES - FAMASTIL TAURUSFamastil manufacturers tools for engineering, construction and gardening

Exports to the five continents, selling its products to wholesalers, dealers and department stores

The merger of Famastil Ferramentas and Taurus occurred in 2004

Products

Mechanic hand tools Household tools Construction tools Gardening tools

Page 10: Março 2010   inglês

THE COMPANYTHE COMPANY

Growth Strategy Corporate Governance

Technology

Cost efficiency through a vertical integrated production

Economies of scale Products with high added value Slightly moving from regulated to

unregulated markets

Assembly of Shareholders Board of Directors

Strategic Planning Committee Code of Conduct Legal Counsel 2010: New Market and

intensification of the best practices of Corporate Governance

North American owned subsidiary in the USA

Visibility in Brazil and abroad Market leader in Brazil in

different segments

Markets State of the Art production facilities

Use of cutting-edge technology Products with quality and

exclusive design

Page 11: Março 2010   inglês

Net RevenuesR$ MM

Net ProfitR$ MM

Net Revenues Breakdown per Product – Acumulated until march - % R$ MM

2009 2010

TAURUS COMPANY´STAURUS COMPANY´SFINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS

Local Market Exports

61%

2004 2005 2006 2007 2008 2009 1Q10

39%

CAGR +22%

61%

54%

46%

49%

51%

39%

61%

47%

53%

59%

41%

54,5%

45,5%

250,4

333,2

408,9 429,3

599,2

679,4

153,9

2004 2005 2006 2007 2008 2009 1Q10

30,4

43,6

55,1

23,3

CAGR + 16,8%

18,2

50,8

14,9

GunsR$ 158,3 76,2%

Forged products

R$ 5,3 2,6%

Others productsR$ 3,5 2,0%

HelmetsR$ 15,5 7,5%

Machines toolsR$ 19,5 9,4%

Hand toolsR$ 5,5 2,6%

GunsR$ 105,8 68,6%

Forged productsR$ 7,5 4,9%

Others productsR$ 2,9 2,0%

HelmetsR$ 21,4 13,9%

Machines toolsR$ 9,7 6,3%

Hand toolsR$ 6,6 4,3%

Page 12: Março 2010   inglês

TAURUS COMPANY´S TAURUS COMPANY´S INFORMATION PER BUSINESS SEGMENT INFORMATION PER BUSINESS SEGMENT

Consolidated amounts in thousand of reaisConsolidated amounts in thousand of reais

Selected items1Q09 1Q10 Var. 1Q09 1Q10 Var. 1Q09 1Q10 Var. 1Q09 1Q10 Var. 1Q09 1Q10

Net revenue 158,3 105,8 -33,2% 15,5 21,4 38,1% 19,5 9,7 -50,3% 14,3 17,0 18,9% 207,6 153,9% age net revenue 76,2% 68,6% -7,6 p.p 7,5% 13,9% +6,4 p.p 9,4% 6,3% -3,1 p.p 7,0% 11,0% +4,0 p.p 100% 100%Gross results 80,2 65,4 -18,5% 7,5 10,2 36,0% 0,0 0,8 4,1 3,6 -12,2% 91,8 80,0Gross margin 50,7% 61,8% +12,1 p.p. 48,4% 47,7% -0,7 p.p. 0,0% 8,2% +8,2 p.p. 28,7% 21,2% -7,5 p.p. 44,2% 52,0%Net results 11,6 13,0 12,1% 5,2 5,5 5,8% -4,1 -3,6 -12,2% -0,1 0,0 0,0% 12,6 14,9Net margin 7,3% 12,3% +5,0 p.p 33,5% 25,7% -7,8 p.p -21,0% -37,1% -16,1 p.p -0,7% 0,0% -0,7 p.p 6,1% 9,7%

Guns Motorcycle helmets Machine tools Others Total

Page 13: Março 2010   inglês

TAURUS COMPANY´S TAURUS COMPANY´S EBITDA AND % MARGIN – R$ MMEBITDA AND % MARGIN – R$ MM

R$ 38,0R$ 43,2

R$ 56,2

R$ 88,6

R$ 128,6R$ 136,7

R$ 38,2

15% 13%14%

21% 21% 20%

25%

2004 2005 2006 2007 2008 2009 1T10