Results Presentation - 2Q14

1. Aug 8th, 2014

2. 2
Company
Defense &
Security
Metallurgy &
Plastics
GuidanceResults Strategies

3. 2014 Facts
• Election of the Board of Directors by the multiple voting process at the
AGM realized on 06/27/14 and amend the Bylaw, increasing from 7 to 9
members with names linked to a strong experience in Corporate
Governance and Management;
• Tenure of the new Board of Directors on 07/17/14, elected Mr. Jório
Dauster and Mr. Ruy Lopes Filho as Chairman and Vice-Chairman,
respectively; also appointed the members of the Advisory Statutory
Committees of the Board: Audit and Risk, Remuneration and People
Development and Management and Corporate Governance Committee.
3
Company

4. • Actions for operational improvement: a process and products review in
order to reduce costs and expenses, measured by indicators that show a
reduction in staff and product portfolio (from 5,500 SKUS on Dec/13 to 400
on Dec/14);
• Actions for administrative improvemet: implementation of new ERP
modules, review of the entire value chain, balancing costs and the structure
of products and local and international sales, aiming to better internal
controls and compliance with market requirements;
4
Company
2014 Facts

5. • Trends and benefits of these transformations:
• Results-oriented strategic focus in the medium and long term;
• Resumption slow but gradual and continuos of the Company’s
perfomance, according to market conditions and productivity;
• Projects seeking greater productivity, quality and profitability;
• Recovery of margins and profitability;
• Continuos pursuit of maximazing shareholder value added; and
• Benefits will come through structural changes, causing the Company
to re-grow consistently and sustainably.
5
Company
2014 Facts

6. • Capital Increase
6
Company
• After two rounds of leftovers and period of review, 48,522,214
common shares and 85,703 preferred shares have been
subscribed, of the total of 48,528,020 common shares and
97,056,038 preferred shares, without par value, to be issued by
the Company;
• With the end of the review period, the subscribed shares
totaled BRL 67.078.925,46;
• The process of capital increase was completed and an
Extraordinay General Meeting has been convened for 08/20/14
in order to resolve their approval.
2014 Facts

7. 7
Company
• Capital Increase – Shareholders before and after*
*still subject to approval at the EGM
2014 Facts

8. Capital Increase
Schedule Part 1
8
Company EVENT DATE
EGM – capital increase approval 04/29/2014
Notice to Shareholders on CVM system 05/05/2014
Notice to Shareholders on newspapers 05/06/2014
Cutoff date of the shareholders still had preemptive rights 05/27/2014
Beginning of the period of preemptive rights 05/28/2014
Date that the shares were ex-subscription rights 05/28/2014
End date of preemptive rights 06/27/2014
Beginning of 1st apportionment of leftovers 07/04/2014
End of 1st apportionment of leftovers 07/10/2014

9. Capital Increase
Schedule Part 2
9
Company EVENT DATE
Beginning of 2nd apportionment of leftovers 07/14/2014
End of 2nd apportionment of leftovers 07/18/2014
Beginning of Review Period of Subscriptions 07/24/2014
End of Review Period of Subscriptions 07/30/2014
Convening the EGM for approval of the capital increase –
CVM system
08/04/2014
Convening the EGM for approval of the capital increase –
newspapers
08/05/2014
08/06/2014
08/07/2014
EGM capital increase confirmation 08/20/2014

10. NATIONAL INSTANT CRIMINAL
BACKGROUND CHECK SYSTEM
10
Defense &
Security
Source: FBI adjusted by NSSF

11. 22% 22% 23% 24% 24% 22% 22% 23% 24% 24% 22% 22%
12% 12% 12% 12% 11%
10% 12% 10%
13% 12%
12% 11%
44% 44% 45% 43% 46%
48% 45% 47% 41% 41% 42% 44%
22% 22% 20% 20% 19% 21% 21% 20% 21% 23% 23% 23%
jul/13 ago/13 set/13 out/13 nov/13 dez/13 jan/14 fev/14 mar/14 abr/14 mai/14 jun/14
Midwest Northeast Other South West
NICS GEOGRAPHIC
DISTRIBUTION
11
Defense &
Security
Source: FBI adjusted by NSSF

12. PEERS
12
Defense &
Security

13. IMPACT FACTORS
13
Metallurgy
& Plastics Motorcycle Sales
Car substition 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

14. 0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
0
50.000
100.000
150.000
200.000
250.000
300.000
dez/02
abr/03
ago/03
dez/03
abr/04
ago/04
dez/04
abr/05
ago/05
dez/05
abr/06
ago/06
dez/06
abr/07
ago/07
dez/07
abr/08
ago/08
dez/08
abr/09
ago/09
dez/09
abr/10
ago/10
dez/10
abr/11
ago/11
dez/11
abr/12
ago/12
dez/12
abr/13
ago/13
dez/13
abr/14
Emplacamentos FENABRAVE Venda Capacetes Taurus Frota Circulante Frota Circulante Ajustada (-15%)
2008
Crisis
14
Motorcycles (new motorcycles e fleet)
x Helmets (Taurus sales)
Source: Fenabrave
Metallurgy
& Plastics
New motorcycles Helmets sales Fleet Adjusted Fleet (-15%)

15. 15
Source: Denatran and FENABRAVE
Motorcycles (new motorcycles e fleet)
Metallurgy
& Plastics
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
Motorcycles
Fleet x New Motorcycles
Frota Circulante Emplacamentos FENABRAVE
7%
15%
25%
33%
13%
-16%
12%
8%
-16%
-7%
-2%
14% 14% 16%
18% 17%
12% 12% 12%
9% 8%
3%
-20%
-10%
0%
10%
20%
30%
40%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
Growth Rates
New Motorcycles x Fleet
Crescimento de Emplacamentos Crescimento da Frota
*2014 new motorcycles LTM until June/2014
New MotorcyclesFleet Motorcycles Growth Rate Fleet Growth Rate

16. 16
Source: Taurus
Market Share Evolution
TAURUS HELMETSMetallurgy
& Plastics
43.4%
42.9%
43.5%
45.1%
46.7% 46.7%
45.8% 45.7%
dez/08 dez/09 dez/10 dez/11 dez/12 dez/13 mar/14 jun/14

17. 17
Metallurgy
& Plastics
46%
BRAZILIAN
MOTORCYCLE
HELMETS
MARKET SHARE
1.5
HELMETS PER
MOTORCYCLE
IN BRAZIL
4.8
MILLIONS
UNITS/YEAR
POTENTIAL
MARKET

18. Redesignthe helmet
sales success:
SAN MARINO,
the model is smaller,
lighter,
with better aerodynamics,
maintaining the large peripheral vision.
18
Metallurgy
& Plastics

19. TAURUS HELMETS
FOR CYCLING
19
Metallurgy
& Plastics
Urban Mobility
Environmental Consciousness
NEW!

20. ECONOMIC AND FINANCIAL
INDICATORS
20
Results
In BRL millions
Variation %
Ratios 2Q14 1Q14 2Q13 2Q12 1H14 1H13 1H12 1H14/1H13 1H14/1H12 2Q14/2Q13 2Q14/1Q14 2Q14/2Q12
Net revenue 132.9 168.1 203.9 175.4 301.1 432.6 353.8 -30.4% -14.9% -34.8% -20.9% -24.2%
Domestic market 59.9 62.4 71.9 74.8 122.3 128.1 144.6 -4.6% -15.4% -16.8% -4.0% -19.9%
Foreign market 73.1 105.8 132.0 100.6 178.8 304.5 209.2 -41.3% -14.5% -44.6% -30.9% -27.4%
COGS 106.8 122.4 143.4 101.5 229.3 294.1 213.7 -22.1% 7.3% -25.5% -12.7% 5.2%
Gross Profit 26.1 45.7 60.5 73.9 71.8 138.5 140.0 -48.1% -48.7% -56.9% -42.9% -64.7%
Gross Margin - % 19.6% 27.2% 29.7% 42.1% 23.9% 32.0% 39.6% -8.2 p.p. -15.7 p.p. -10.0 p.p. -7.6 p.p. -22.5 p.p.
Operating Expenses -37.5 -41.2 -52.2 -36.4 -78.7 -93.1 -72.1 -15.5% 9.1% -28.1% -8.8% 3.3%
Operating Profit (EBIT) -11.4 4.5 8.3 37.5 -6.9 45.3 67.9 -115.2% -110.2% -237.7% -352.2% -130.5%
EBIT Margin - % -8.6% 2.7% 4.1% 21.4% -2.3% 10.5% 19.2% -12.8 p.p. -21.5 p.p. -12.7 p.p. -11.3 p.p. -30.0 p.p.
Net Financial Income -16.4 -9.9 -19.0 -18.0 -26.3 -32.0 -19.9 -17.9% 32.3% -13.6% 66.2% -8.5%
Depreciation and amortization (1) 8.2 8.1 9.6 7.9 16.3 17.7 15.4 -8.0% 5.4% -14.7% 1.3% 3.9%
Net Income - Continuing Operations -25.6 -4.5 -20.4 12.1 -30.2 -11.2 29.4 169.2% -202.5% 25.6% 464.1% -311.5%
Net Income Margin - Cont. Operations -19.3% -2.7% -10.0% 6.9% -10.0% -2.6% 8.3% -7.4 p.p. -18.3 p.p. -9.3 p.p. -16.6 p.p. -26.2 p.p.
Net Income - Descontinuing Operations 0.0 0.0 0.0 -127.1 0.0 0.0 -132.2 - - - - -
Net Income - Consolidated -25.6 -4.5 -20.4 -114.9 -30.2 -11.2 -102.8 169.2% -70.7% 25.6% 464.1% -77.7%
Net Income Margin - Consolidated -19.3% -2.7% -10.0% -65.5% -10.0% -2.6% -29.1% -7.4 p.p. 19.0 p.p. -9.3 p.p. -16.6 p.p. 46.3 p.p.
Adjusted EBITDA(2) -2.0 14.3 30.1 44.5 12.4 77.1 80.7 -84.0% -84.7% -106.5% -113.7% -104.4%
Adjusted EBITDA Margin - % -1.5% 8.5% 14.8% 25.4% 4.1% 17.8% 22.8% -13.7 p.p. -18.7 p.p. -16.2 p.p. -10.0 p.p. -26.8 p.p.
Total Assets 1,091.1 1,089.2 1,266.9 1,059.8 1,091.1 1,266.9 1,059.8 -13.9% 3.0% -13.9% 0.2% 3.0%
Equity 104.1 134.7 204.8 228.9 104.1 204.8 228.9 -49.2% -54.5% -49.2% -22.7% -54.5%
Investiments (CAPEX) 5.1 3.1 6.3 31.3 8.1 17.2 52.5 -52.7% -84.5% -20.3% 64.6% -83.8%
(1) Depreciation and amortization: these amounts include total depreciation and amortization based on cash flow for ITR
(2) Adjusted EBITDA: Earnings before interest, tax, depreciation and amortization and net earnings from non-recurring operations. The
computing process was developed acording the CVMnº 527 instruction ofOctober 04, 2012.

21. NET REVENUE – BY MARKET
21
Results

22. NET REVENUE – BY GEOGRAPHY
22
Results

23. 23
FIREARMS (72%)
BRAZIL (19%)
USA (70%)
FOREIGN (11%)
HELMETS (21%)
BRAZIL (99%)
OTHERS (7%)
BRAZIL (91%)
USA (9%)
Public Security (50%)
Private Security (45%)
Dealers (5%)
Consumer Market
Public Security (50%)
Dealers (50%)
46% of Market Share
NET REVENUE – BY SEGMENT
Results
M.I.M. (Metal Injection Molding)
M.I.M., plastic products, bulletproof vests

24. 24
Results
RESULTS BY BUSINESS SEGMENT
Consolidated amount in BRL millions
1H14 Part. % 1H13 Part. % Var. 1H14 1H13 Var. 1H14 1H13 Var.p.p 1H14 1H13 Var.
Firearms 218.1 72.4% 333.2 77.0% -34.6% 45.0 108.5 -58.5% 20.6% 32.6% -11.9 (44.1) 14.2 NS
Helmets 62.9 20.9% 63.5 14.7% -0.9% 21.5 23.8 -9.5% 34.2% 37.5% -3.2 13.8 15.4 -10%
Others 20.1 6.7% 35.9 8.3% -44.1% 5.3 6.2 -14.0% 26.5% 17.2% 9.3 (3.0) (16.2) -82%
Total 301.1 100.0% 432.6 100.0% -30.4% 71.8 138.5 -48.1% 23.9% 32.0% -8.2 (33.2) 13.3 NS
2Q14 Part. % 2Q13 Part. % Var. 2Q14 2Q13 Var. 2Q14 2Q13 Var.p.p 2Q14 2Q13 Var.
Firearms 94.1 70.8% 151.8 74.5% -38.0% 14.8 44.8 -67.0% 15.7% 29.5% -13.8 (31.7) (6.4) NS
Helmets 30.3 22.8% 33.6 16.5% -9.8% 9.9 13.5 -26.4% 32.7% 40.1% -7.4 6.6 9.5 -31%
Others 8.6 6.4% 18.5 9.1% -53.6% 1.4 2.3 -38.1% 16.4% 12.3% 4.1 (2.7) (13.8) -80%
Total 132.9 100.0% 203.9 100.0% -34.8% 26.1 60.5 -56.9% 19.6% 29.7% -10.0 (27.9) (10.7) NS
2Q14 Part. % 1Q14 Part. % Var. 2Q14 1Q14 Var. 2Q14 1Q14 Var.p.p 2Q14 1Q14 Var.
Firearms 94.1 70.8% 124.0 73.8% -24.2% 14.8 30.2 -51.0% 15.7% 24.3% -8.6 (31.7) (12.3) NS
Helmets 30.3 22.8% 32.6 19.4% -7.1% 9.9 11.6 -14.6% 32.7% 35.6% -2.9 6.6 7.3 -10%
Others 8.6 6.4% 11.5 6.8% -25.4% 1.4 3.9 -64.1% 16.4% 34.0% -17.6 (2.7) (0.3) NS
Total 132.9 100.0% 168.1 100.0% -20.9% 26.1 45.7 -42.9% 19.6% 27.2% -7.6 (27.9) (5.3) NS
Net Revenue Gross Income Gross Margin Income before taxes
Comparative Quarter - Year over Year
Net Revenue Gross Income Gross Margin Income before taxes
Comparative Quarter - Current Quarter x Previous Quarter
Comparative Six months - Year over Year
Net Revenue Gross Income Gross Margin Income before taxes

25. 25
Results
ADJUSTED EBITDA

26. 26
Results
WORKING CAPITAL

27. 27
INVENTORY DAYS x FINANCIAL CYCLE
Results
-
50
100
150
200
250
300
4Q12 2Q13 4Q13 1Q14 2Q14
Inventory Days LTM Financial Cycle

28. 28
WORKING CAPITAL NEEDS
Results
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

29. 29
Results
DEBT

30. MATURITY OF DEBT
30
Results
In BRL thousands

31. FINANCIAL POSITION
31
Results
In BRL millions

32. 32
Results
INVESTIMENTS

33. INVESTIMENTS IN NON-CURRENT ASSETS
33
Results
(1.000)
1.000
3.000
5.000
7.000
9.000
11.000
Expansion of Capacity Modernization of Industrial Park Continous Improvement Others
1H13 1H14

34. CAPITAL EXPENDITURES FOR 2014
34
Results
CAPEX
BRL
Thousands
US$
Thousands
Part %
P&D 10,837 4,516 20%
Modernization 28,939 12,058 52%
IT 10,854 4,522 20%
Branch 5 Transfer 4,553 1,897 8%
Total 55,182 22,993 100%

35. GUIDANCE 2014
35
Guidance
The Management chose to not provide Net Revenue
and EBITDA for 2014;
CAPEX: the capital expenditures for 2014 approved in
AGM is BRL 55,2 millions, 14,7% have been done
until 1H14.

36. 36
Update and introduce new modules on ERP system,
improving internal controls and management reports;
Integrate the operations between Brazil and the USA;
Expand M.I.M. markets to other markets, promoting
profitability increase of the segment;
MAIN ACTIONS FOR 2014

37. 37
Reduce dependence on the american market by increasing
the volume of exports to other countries;
Expand supply the armed forces, taking advantage of our
condition of Strategic Defense Company;
Preparing the Company to provide services of products
maintanance.
MAIN ACTIONS FOR 2014

38. FELIPE G. OLIVEIRA
Investor Relations
Analyst
felipe.oliveira@taurus.com.br
DORIS B. F. WILHELM
Investor Relations
Officer
doris.wilhelm@taurus.com.br
38
EDUARDO F. COSTA
Vice-President
Administrative & CFO
eduardo.costa@taurus.com.br
FORJAS TAURUS S.A.
55 51 3021 3001
ri@taurus.com.br
www.taurusri.com.br