Aug 8th, 2014

2

Company Defense & Security

Metallurgy & Plastics

Guidance Results Strategies

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

• 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

• 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

• 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

Company • Capital Increase – Shareholders before and after*

*still subject to approval at the EGM

2014 Facts

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

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

NATIONAL INSTANT CRIMINAL

BACKGROUND CHECK SYSTEM

10

Defense & Security

Source: FBI adjusted by NSSF

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

PEERS

12

Defense & Security

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

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

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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

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 Motorcycles Fleet Motorcycles Growth Rate Fleet Growth Rate

16

Source: Taurus

Market Share Evolution

TAURUS HELMETS Metallurgy & 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

Metallurgy & Plastics

46%

BRAZILIAN

MOTORCYCLE

HELMETS

MARKET SHARE

1.5 HELMETS PER

MOTORCYCLE

IN BRAZIL

4.8 MILLIONS

UNITS/YEAR

POTENTIAL

MARKET

Redesign the helmet

sales success:

SAN MARINO,

the model is smaller,

lighter,

with better aerodynamics,

maintaining the large peripheral vision.

18

Metallurgy & Plastics

TAURUS HELMETS

FOR CYCLING

19

Metallurgy & Plastics

Urban Mobility

Environmental Consciousness

NEW!

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 CVM nº 527 instruction of October 04, 2012.

NET REVENUE – BY MARKET

21

Results

NET REVENUE – BY GEOGRAPHY

22

Results

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

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

Results

ADJUSTED EBITDA

26

Results

WORKING CAPITAL

27

INVENTORY DAYS x FINANCIAL CYCLE

Results

-

50

100

150

200

250

300

4Q12 2Q13 4Q13 1Q14 2Q14

Inventory Days LTM Financial Cycle

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

Results

DEBT

MATURITY OF DEBT

30

Results

In BRL thousands

FINANCIAL POSITION

31

Results

In BRL millions

32

Results

INVESTIMENTS

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

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%

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

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

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

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