Institutional presentation 2017

1. TAURUS 2017

2. GROUP

3. INSTITUTIONAL
Brazilian
Company with
Metal Injection
Molding
technology
National leader in
sales of motorcycle
helmets
The biggest
revolver
manufacturer in
the world
Fourth biggest
pistol
manufacturer in
the world

4. PATENTS & AWARDS
16 NATIONAL Patents
30 INTERNATIONAL Patents
International Awards for
the high quality
Seven times winner of
“Handgun of the year”, the
most important award of
guns industry in the USA

5. STRATEGIC DEFENSE COMPANY

6. TIMELINE
19451939 1981
Companhia
Brasileira de
Cartuchos
(CBC) became
controlling
shareholder
2015
20 million guns
sold
2016
Pistols
Start of
production
Beretta Brazil
Acquisition
1980
Foundation
Small tool shop in
the south of Brazil
Revolvers
Start of
production
32 SWL
38SPL
Taurus
International USA
opening

7. NEW PLANT & PRODUCTION MODEL

8. NEW PLANT IN SÃO LEOPOLDO

9. NEW PRODUCTION MODEL
High
technology
embedded in
the process
(RFID)
Suitability in the
supply chain
Interchangeability of
parts to meet market
demand
Immediate post
sale and
customer service
results
Assembly Line
Lean
Manufacturing
Concept

10. SAP
Traceability and
quality
management
Better
management
controls
Greater
integrations
among
departments
Synergy
gains
Based on
processes
Assembly Line

11. QUALITY
Standard Guarantee
Focus on
total quality
Material
efficiency
gains
Significant
loss reduction
Productivity
gains
Continuous
improvement
processes

12. NEW PLANT IN SÃO LEOPOLDO

13. NEW PLANT IN SÃO LEOPOLDO

14. NEW PLANT IN SÃO LEOPOLDO

15. NEW PLANT IN SÃO LEOPOLDO

16. RESPECT TO THE ENVIRONMENT
New waste
facility
New effluent
treatment system
Compliance
with
environment
regulations
Management Benchmark

17. CORPORATE GOVERNANCE

18. CORPORATE GOVERNANCE
CORPORATE
GOVERNANCE
LEVEL 2
PERMANENT
FISCAL
COUNCIL
60%
INDEPENDENT
BOARD MEMBERS
VOTING RIGHTS TO
PREFERRED SHARES
(In Relevant Topics)
100%
TAG ALONG
NEW
COMPLIANCE
PROGRAM

19. BOARD OF DIRECTORS
CEO*
Marco Aurélio Salvany
CFO & IRO*
Thiago Piovesan
CHIEF OF SALES
MARKETING*
Salésio Nuhs
INTEGRATED
ENGINEERING
DIRECTOR Cristiano
Macedo
MARKETING
DIRECTOR
Eduardo Minghelli
CEO – TAURUS
HOLDINGS INC.
Anthony Acitelli
PURCHASING
DIRECTOR
Ricardo
Machado
PRODUCT
DIRECTOR
Luiz Antônio
M. de Freitas Horta
*Statutory Board
OPERATIONS
DIRECTOR
Sérgio Hartman

20. CAPITAL INCREASE - 2016 e 2017
• Exercise of 7,135,000 subscription bonus ON, approved in 01/06/2016
 Capital increase of R$ 11.7 million;
 Issuance of 7,135,000 new common shares;
• Exercise of (i) 10,060,829 subscription bonus ON and (ii) 634,489 subscription bonus PN,
approved in 06/02/2016
 Capital increase of R$ 17.5 million;
 Issuance of 10,060,829 new common shares and 634,489 new preferred shares;
• Exercise of (i) 1,802,855 subscription bonus ON and (ii) 4,606,788 subscription bonus PN,
approved in 01/31/2017
 Capital increase of R$ 10.5 million;
 Issuance of 1,802,855 new common shares and 4.606.788 new preferred shares;
SHARES REALIZED CAPITAL MARKET CAP*
COMMON 46,445,314 R$ 89,6 million
PREFERRED 18,242,898 R$ 35,6 million
TOTAL 64,688,212 R$ 125,2 million
*Closing quotes on 05/17/2017

21. SHAREHOLDERS
SHARE
TOTAL ON PN
CBC PARTICIPAÇÕES S.A. 66.93% 91.90% 3.37%
MARCOS BODIN DE SAINT ANGE COMNENE 7.98% 0.02% 28.23%
ANTONIO MARCOS MORAES BARROS 6.92% 0.29% 23.79%
ESTIMAPAR 2.25% 3.13% 0.00%
PREVI 1.86% 1.23% 3.47%
ZENITH ASSET MANAGEMENT 1.16% 0.00% 4.11%
OTHRES 12.90% 3.43% 37.03%

22. PRODUCTS LINE

23. Tactical WeaponsRevolvers Pistols
Long Guns
PRODUCTS LINE

24. PRODUCTS - REVOLVERS
CALIBERS
.22 LR
.38 SPL
.357 MAG
.410 GA
.44 MAG
454 CASULL
.500 MAG

25. PRODUCTS - PISTOLS
Millennium Series 800 SeriesSlim Series
Metallic Series
9mm
.40 S&W
9mm
.40 S&W
1911
.45 ACP9mm
.40 S&W
.380 ACP
9mm
.40 S&W
.380 ACP

26. SMT/CTT
CT
9mm
.40 S&W
9mm
.40 S&W
PRODUCTS – TACTICAL WEAPONS

27. PRODUCTS – LONG GUNS
PUMA
.38 SPL
.357 MAG
.44 MAG
454 CASULL
CIRCUIT
JUDGE
36 GA
RIO
GRANDE
30-30 WIN
.410 GA
45-70 GOV

28. EXPANSION STRATEGY
HAMMER SERIES
PISTOLS
STRIKER SERIES
PISTOLS
RIFLE T4
 HAMMER
 AMBIDEXTROUS
 EXTERNAL SAFETY KEYS
 STRIKER
 AMBIDEXTROUS
 NO EXTERNAL SAFETY KEYS
 EASY HANDLING
 LARGE ACCESS PLATFORM
REGIONS
 EUA
 BRAZIL
 OTHER
COUNTRIES
ALL SEGMENTS
COVERED
 LAW ENFORCEMENT
 PRIVATE SECURITY
 CIVIL MARKET
 COLLECTORS
 SPORTING SHOOTERS

29. LAUNCHING 2017 - BRAZIL
2017
HAMMER
STRIKER
RIFLEPISTOLS
T4

30. PISTOLS
HAMMER STRIKER
T 380 H
T 380 Hc
T9 H
T9 Hc
T40 H
T40 Hc
T 380 S
T 380 Sc
T9 S
T9 Sc
T40 S
T40 Sc
12 NEW PISTOLS
LAUNCHING 2017 - BRAZIL

31. 11,5” 14,5”
RIFLE – T4
LAUNCHING 2017 - BRAZIL

32. • Bringing industrial design to the emerging target consumer;
• Innovate within the concealed carry experience;
• Re-define the user interface while addressing all aspect of comfort;
• Create user appeal through exploring colors and textures;
• 380 auto (2017); 9mm (2018) & 22lr (2019).
TAURUS SPECTRUM
LAUNCHING 2017 - EUA

33. FINANCIAL PERFORMANCE

34. KEY EVENTS - 2016
• Start of São Leopoldo operation;
• SAP implementation;
• High investments combined with cash restrictions;
• Limited production mix at the 1S16: lower margins pistols;
• Limited market mix at the 1S16: US concentration;
• Non-ordinary effects:
 Carter Case: R$ 10.3 million;
 Infrastructure & environment investments: R$ 10.0 million
 Assets write-offs & adjustments: R$ 8.1 million;
 Obsolete inventories write-off: R$ 10.0 million;
 Famastil goodwill investment write-off: R$ 4.9 million;
 Brand attacks: R$ 3.0 million;
 Product guarantee: R$ 5.0 million;

35. 430,0
684.3 707.3
124.5
110.5 100.5
37.1
29,0 22.5
2014 2015 2016
Firearms Helmets Others
65.0 42.4 37.1
279.1
547.8 581.6
247.5
233.6 211.6
2014 2015 2016
Other Markets US Market Domestic Market
NET REVENUE
830.3823.8
591.6
830.3823.8
591.6
PER MARKET PER SEGMENT
In Million of R$

36. -59.5
-25.7
-63.9
-10.1%
-3.1%
-7.7%
-24.0%
-14.0%
-4.0%
6.0%
16.0%
26.0%
-70
-60
-50
-40
-30
-20
-10
0
2014 2015 2016
EBITDA EBITDA Margin
591.6
823.8 830.3
23.9%
29.4%
23.3%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
2014 2015 2016
Net Revenue Gross Margin
OPERATING MARGINS
GROSS MARGIN EBITDA MARGIN
In Million of R$

37. 231.4
303.0 291.4
2014 2015 2016
SG&A
Main Extraordinary Expenses 2015 2016
Carter Case R$ 59.1 R$ 10.3
Infrastructure & Environment - R$ 10.0
Assets Write-off & Adjustments R$ 12.4 R$ 8.1
Obsoletes Inventories - R$ 10.0
Labor Processes R$ 17.9 -
External Consultancies R$ 5.6 -
Famastil goodwill investment write-off - R$ 4.9
Brand Attacks - R$ 3.0
Products Guarantee - R$ 5.0
In Million of R$

38. -185.4
-253.8
-103.0
2014 2015 2016
-92.2
-218.6
-2.7
2014 2015 2016
INCOMES
FINANCIAL INCOME NET INCOME
In Million of R$

39. JULIAN BATISTA
IR Analyst
+55 51 30213079
julian.batista@taurus.com.br
THIAGO PIOVESAN
CFO
IRO
thiago.piovesan@taurus.com.br