dezembro 2008 inglês
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Forjas Taurus S.A.
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Disclaimer
“This presentation contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such information is not merely based on historical fact but also reflects management’s objectives and expectations. The words "anticipate", “wish", "expect", “foresee", “intend", "plan", "predict", “forecast", “aim" and similar words, written and/or spoken, are intended to identify affirmations which, necessarily, involve known and unknown risks.
Known risks include uncertainties which include, but are not limited to, interest rates, product competition, market acceptance of products, the actions of competitors, regulatory approval, currency type and fluctuations and monetary policy, among others.
This presentation is based on events up to December 31, 2008 and Forjas Taurus S.A. is not obligated to update the contents in light of new information and/or future events.
The future results of the issuer may vary from the results expressed in, or implied by, the following forward-looking statements, possibly to a material degree.
Forjas Taurus S.A. takes no responsibility for transactions or investment decisions made on the basis of information contained in this presentation.”
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Executive Summary
The objective of this presentation is to show the general overview of the Company, markets, actual situation, growth and diversification strategies
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Shareholding StructurePolimetal Participações S.A. is the controlling shareholder of Taurus
Source:Company reports
Luis Fernando Costa Estima
Polimetal Participações S.A.
Polinvest Participações e Repres. Ltda.
Others
66,67% 33,33%
12,53%
68,79%
Legend:X.X% = Current Percentage of Common Capital
X.X% = Current Percentage of Total Capital
Estate of Carlos Alberto Paranhos
Murgel
Forjas Taurus S.A.
83,94%
27,98%
3,52%
3,23%
Taurus Holdings, Inc.
Taurus Máquinas – Ferramenta Ltda.
Taurus Blindagens Ltda.
Taurus Properties, Inc.
Famastil Taurus Ferramentas S.A.
Taurus Helmets Indústria Plástica
Ltda.
Taurus International
Manufacturing, Inc.
Taurus Blindagens Nordeste Ltda.
100% 100%
35% 24,2% 99,86%100%
99,99% 99,99%
Taurus Invest. Imobiliarios Ltda.
75,7% 32,9%
67,1%
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Organizational ChartThe Company has implemented Corporate Governance
Chairman of the Board / CEO
Luis F. C. Estima
Strategic Committee
Fiscal Counsel
Source:Company reports
Board of Directors
Senior Vice-President
Ruy F. V. Soares
Human Resources Director
Muciano N. Dias
Executive Vice-President
Jorge Py Velloso
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Company’s Facilities
Taurus Blindagens and Taurus Helmets
Helmets
Bulletproof vests
Anti-riot shields
Plastic containers
Forjas Taurus I
Firearms
Famastil
Hand tools
Garden accessories
Taurus Wotan
Machine tools
Forjas Taurus II
Forged products
Products heat treatment
Metal injection Molding – M.I.M.
TIMI (USA)
Firearms
Metal injection Molding – M.I.M.
The group is comprised by five business units in Brazil, one in the USA and has approximately 4,330 employees1
1As of June, 2008
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The Company
Forjas Taurus S.A. was established in 1939. The Company is a leading Brazilian manufacturer of defense and security products, machine tools and forged products, such as handguns, motorcycle helmets, bullet-proof vests and milling and turning machines. Additionally, it holds a 35% stake at Famastil Taurus Ferramentas S.A.
Taurus has a complete line of products, specially produced for the defense and security markets. The Company is one of the world’s largest handgun manufacturers, with a market share of over 90% in Brazil and a leading position in the U.S. market with over 12%
Taurus also leads Brazilian market of motorcycle helmets (with a share of 50%), bulletproof vests and anti-riot shields. The Company also has a growing insertion in the market of forged products, mainly addressed to automotive industry and energy segment. Additionally, it has recently established its new industrial site in Curitiba for the manufacturing of plastic equipment used for packaging, and transporting materials.
Operational strategy of the Company is based on cost efficiency through a vertically integrated production, focused on profitability and quality.
The Company has an optimistic perspective for the segments in expansion, focusing on motorcycle helmets, machine tools and energy.
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The Company (cont.)
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
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
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SWOT Analysis
Strengths
Largest handgun manufacturer in Latin America and one of the top three in the world
Strong presence in USA since 1981, the largest handgun market worldwide
Implemented practice of Corporate Governance
Increasingly product diversification
Pioneer in manufacturing helmets in Brazil, with a market share of approximately 50% and a revenue CAGR of 25.8% between 2004 and 2008
Opportunities
Increase in investments on public safety by the federal, state and municipal government
Increasing demand for light weapons in the U.S. market
Continuing growth in the segment of motorcycle helmets, enhanced by the significant growth of motorcycle sales in Brazil
Weaknesses
Highly dependent on the firearm segment, currently accounting for 59.3% of the consolidated revenues
Operates in low margin and low growth segments, i.e. plastic containers
Threats
Restrictions on firearm trade by local or international pressure
Entry of foreign manufacturers in Brazil, increasing competition
Sharp devaluation of the dollar, reducing profitability of exports
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Overview
For over 60 years, operates in local and foreign markets
In 2008, 59.7% 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
In May 2008, Taurus was awarded the “Handgun of the Year 2008”, by the National Rifle Association, for its revolver TAURUS JUDGE
Products
Revolvers, pistols, carbines, air guns and police weapons
Products
Firearms – Forjas Taurus and TIMITaurus is one of the world’s largest handgun manufacturer
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Overview
The Company manufactures forged products up to 15Kg, 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
In 2006 and 2007, Taurus increased its installed capacity for machining, which brings a higher added value to the final product, compared to parts that are only forged
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
Products
Forged Products – Forjas TaurusHigh technology in forged and machined products
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Overview
Pioneer in manufacturing helmets in Brazil
Local market leader of bullets-proof vests and motorcycle helmets
Taurus Blindagens was founded in 1983
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
Products
Bullet-Proof Vests and Helmets – Taurus Blindagens and HelmetsTaurus Blindagens and Taurus Helmets lead the segments of bullet-proof vests and motorcycle helmets, respectively
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Overview
The only manufacturer of large machine tools in Latin America
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
Products
Machine Tools – Taurus Máquinas-Ferramenta Ltda.Taurus Máquinas-Ferramenta leads Latin American manufacturing of horizontal and vertical boring and milling machines, vertical turning lathes and machining centers
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Overview
Famastil 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
Products
Hand Tools and Garden Accessories – FamastilFamastil manufacturers tools for engineering, construction and gardening