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Quarterly Information 3Q12

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WORLD´S FOREMOST FIREARMS MAKER

FORJAS TAURUS’ DNA IS

LEADERSHIP AND

INNOVATION EVEN IN

DIFFERENT MARKETS

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TAURUS IS CONCERNED WITH

QUALITY, INNOVATION,

PROFISSIONALISM AND SECURITY

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2000 – Taurus Capacetes 2004 – Famastil 2004 – Máquinas-Ferramenta 2006 – Taurus Helmets 2006 – Lançamento do “The Judge” 2008 – Taurus Inv. Imobiliários 2008 – Rossi – Armas longas 2008 – Metus 2010 – Taurus Blindagens Nordeste 2011 – Jul:IAdmission to Nível 2 BM&FBOVESPA – Oct: Acquisition ofSteelInject – Dec: Segregation of business industries

into guns and metallurgy and plastics – Election of new IRO. 2012 – Acquisition of Heritage Manufacturing

Inc. – Sell of TMFL – Aproval of realocation of M.I.M. and

long weapons industrials sites at São Leopoldo

00´s

30´s

70´s

80´s

90´s

6

1980 – Beretta

1982 – IPO

1983 – Internationalization: Taurus

International

1985 – Taurus Ferramentas

1986 – Induma

1988 – Taurus Holdings

1939 – Forjas Taurus

1970 – Control to foreign investors

1977 – Forjas Taurus by Polimetal

1991 – Champion’s assets

1997 – Rossi – Revólver

(use of the brand,

technology, assets and

productive processes)

1999 – Pollymer and titanium guns

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4 Units 2 Units 1 Unit

1 Unit

7 Units

1 Unit

Paraná Bahia Rio Grande do Sul

Florida

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• 73 YEARS OF

OPERATIONS

• LISTED

COMPANY

SINCE 1982

• SIGNATORY TO CORPORATE

GOVERNANCE LEVEL 2 FOR A

YEAR

• LONG TERM RATING A-(BRA)

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100% OF TAG

ALONG (ORDINARY AND PREFERRED)

35% PAYOUT (SEMESTRAL)

PREFERRED

VOTING RIGHTS (IMPORTANT SUBJECTS)

Co

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rate

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30%

0% 6%

6%

10%

48%

PN

PREVI

Invespar/LFCE

FIGI FIA

Geração Futuro

Advis Investimentos

Tesouraria

Free Float14%

44% 9%

7%

0% 6%

20%

ON

ON 47.137.539 33,3%

PN 94.275.078 67,3%

TOTAL 141.412.617 100,0%

October 31, 2012

24%

15%

3% 6% 4%

9%

39%

Total

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MAINLY SHAREHOLDERS C

om

pa

ny

28%

33%

31%

8% ASSETS / FUNDS / CLUBS

FOUNDATION AND SECURITIES

INDIVIDUALS

OTHER / COPORATIONS / FOREX

September 28, 2012

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SHAREHOLDERS COMPOSITION C

om

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ny

NUUMBER OF

TRADES: GROWTH

OF 99%

PREFERRED FINANCIAL VOLUME GROWTH

144% COMPARING TO DEC/11

AVERAGE BRL 622

THOUSANDS PER

DAY

2012, October average over 2011, December average

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Taurus and the market in 2012 C

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Taurus and the market in 2012

IN 21 SEP, 2012, FJTA4-BR

REACHED NOMINAL

APPRECIATION OF 133%

DURING THE CURRENT YEAR.

IT´S THE 1st SHARE MOST

PROFITABLE IN BMF&BOVESPA

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CORPORATE GOVERNANCE IS

SOMETHING RELEVANT FOR US

Taurus was one of the 6 finalists of 2012 JBGC Award

competing in the Greater Evolution on Corporate Governance

of Listed Companies category. All 372 listed companies were

running for the award.

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SHAREHOLDERS

BOARD OF DIRECTORS

CHIEF EXECUTIVE

OFFICER

CHIEF ADMINISTRATIVE

OFFICER

CHIEF FINANCIAL

OFFICER

INVESTOR RELATIONS

OFFICER

CHIEF OPERATIONAL

OFFICER

TIMI CEO

DEFENSE COMERCIAL EXECUTIVE

OFFICER

DEFENSE INDUSTRIAL EXECUTIVE

OFFICER

HELMETS AND BULLET PROOF

GENERAL MANAGER

FORJARY GENERAL

MANAGER

TAX BOARD INTERNAL AUDIT COMITEES

AUDIT AND RISK

COMPENSATION AND PERSONEL

DEVELOPMENT

MANAGEMENT AND

CORPORATE GOVERNANCE

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Taurus Holding Inc.

Taurus International Manufacturi

ng Inc.

Taurus Properties

Inc

Taurus Invest.

Imobiliários Ltda.

Polimetal

Taurus Blindagens

Ltda.

Taurus Blindagens Nordeste

Ltda.

Taurus Helmets Ind.

Plás. Ltda.

Famastil Taurus

Ferramentas S.A.

SteelInject Injeção de Aços Ltda.

Taurus Máquinas-Ferramenta

Ltda.*

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WORLD´S FOREMOST FIREARMS MAKER

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DEFENSE AND SECURITY

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National Instant Criminal Background

Check System – NICS USA buying intentions

Fonte: Federal Bureau of Investigation

CAGR: 7% p.a.

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0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2.000.000

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2008 2009 2010 2011 2012

Public Secutiry

Private Security

Others

Consumer Hobby / Collector

Sport / Hunt individuals/Others

Public Securty

Private Securty

MARKETS

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Domestic Market Foreign market

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Civil and Military Police Federal Police

State Police

Municipal Police

Armed Force

PUBLIC SECURITY

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PRIVATE

SECURITY

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90% BRAZILIAN SMALL ARMS

MARKET SHARE

PEERS: CBC AND IMBEL TOGETHER

ANSWER FOR10% OF MARKET

SHARE

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FOREIGN MARKET

20% OF THE

REVOLVERS USA

MARKET.

USA REPRESENTS

90% OF

COMPANY’S

EXPORTS

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2012 Speed Shooting World

Champion

Jessie Harrison

Athlete – Capitain of

Team Taurus

TAURUS FOR HOBBY

AND PERSONAL

SECURITY IN THE USA,

CANADA AND MEXICO

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EXPORTS FOR OVER 70 COUNTRIES

6% of net sales 27

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WORLD´S FOREMOST FIREARMS MAKER

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Metallurgy & Plastics

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HISTORICAL LICENSE PLATENING

Fonte: Fenabrave

0

20

40

60

80

100

120

140

160

180

200

jan feb mar apr may jun jul aug sep oct

2011 2012

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In thousands

1.804 1.940

1.434

1.243

2010 2011 9M11 9M12

In thousands

-13,3%

+12,4%

Fonte: Fenabrave

MOTORCYCLE SALES IN BRAZIL

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1.910

2.414

1.760

1.976

2010 2011 9M11 9M12

In thousands

+12,3% +26,4%

Fonte: Dados da Companhia

HELMETS SALES IN BRAZIL

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55% OF BRAZILIAN

MOTORCYCLE HELMETS

MARKET SHARE

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4.8 MILLONS

UNITS/YEAR

POTENTIAL MARKET

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SAN MARINO

REFERENCE IN QUALITY AND

SECURITY FOR LOW COST

FÓRMULA 1 M

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A NEW COUNSCIOUSNESS

WASTE COLLECTOR

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TO PROTECT

YOUR LIFE,

COUNT WITH

TAURUS

PROTECTION

VESTS

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M.I.M – METAL INJECTION MOLDING -

TECHNOLOGY & PRECISION IN

TAURUS’ COMPONENTS

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TAURUS TOOLS

PREMIUM, QUALITY

AND INNOVATION

35% STAKE AT

FAMASTIL

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ls

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WORLD´S FOREMOST FIREARMS MAKER

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RES

ULT

AD

OS

Earnings

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net sales by market

1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 9M11 9M12

Domestic Market Foreign Market

In millions of BRL

155.9 178.4

147.8 175.4

+ 14,4% + 18,7%

58%

44%

56%

39%

61%

42% 43%

57%

+ 7,9%

+ 13,8%

140.0 151.1

443.7

504.8

58%

42%

61%

39%

56% 57%

47% 64%

54% 61%

44% 43% 53% 36%

46% 39%

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2006 2007 2008 2009 2010 2011 Forecast 2012

FOREIGN

DOMESTIC

49% 39%

47% 59%

53% 53% 55%

51% 61%

53% 41% 47% 47% 45%

408.9 429.3

599.2 609.1 618.0

700.1

+ 5,0%

+ 39,6%

+ 13,4%

- 10,3% + 1,5%

+ 13,3%

CAGR + 8 %

679.4

historical net sales by market Ea

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46%

48%

6%

39%

55%

6%

Brazil

USA, Canada, Mexico

Other Countries

9M12

9M11

net sales by geography Ea

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EXPORTS ACCOUNTS

FOR AROUND 61% OF

TOTAL NET SALES

net sales by market Ea

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net sales by segment

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72%

20%

08%

72%

18%

09%

Guns Helmets Others

9M11 9M12

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21% 55% 9%

27%

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30,1 36,5

28,5

44,0

35,1 38,2

93,7

118,8

30,125 36,518 28,467 44,011 35,102 38,245 93,694 118,774

1Q11 1Q12 2Q11 2Q12 3Q11 3Q12 9M11 9M12

EBITDA

19,3% 20,5% 19,3%

25,1%

In millions of BRL

ebitda and margin ebtida Ea

rnin

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25,1% 25,3%

21,1%

23,5%

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CAGR EBITDA: 17.8% p.a.

CAGR CAPEX: 14.4% p.a.

adj. ebitda Vs capex

56

89

129 137 137

142 150

35 35

53 46

58 47

79

2006 2007 2008 2009 2010 2011 Forecast 2012

EBITDA

CAPEX

% EBITDA

% CAPEX

+ 3.9%

+ 5.8%

+ 57.7 %

+ 45.1% + 6.3% - 0.01%

+ 1%

+ 50% - 14% + 27%

- 18%

+ 67%

Millions of BRL

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Others

Helmets

Guns

Total

16%

44%

45%

42%

50%

42%

40%

41%

9M12 9M11

gross margin by product Ea

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financial position

In millions of BRL

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31/06/2012 30/09/2012 Var. Sep/12 x Jun/12

Short term indebtedness 158.7 174.4 10%

Long term indebtedness 315.1 371.4 18%Exchange Serves 49.8 50.0 0%Debentures 110.1 112.0 2%

Antecipation Mortages 32.6 30.8 -6%

Derivatives -15.2 -20.0 31%

Gross Indetbetedness 651.1 718.6 10%

(-) Cash available and financial investments 134.3 187.3 39%

Net Indebtedness 516.8 531.3 3%

EBITDA 162.9 164.6 1%

Net Indebtedness/EBITDA 3.17 x 3.23 x

EBITDA/Financial Expenses Net 3.09 x 4.19 x

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CONSOLIDATED INVESTMENTS ON

PROPRETY, PLANT AND EQUIPMENT

CONSOLIDATED INVESTMENTS

Expansion of Capacity 16,900 44% 23,492 59%

Modernization of Industrial Park 7,992 21% 8,997 23%

Cintinous Improvement 7,820 20% 4,457 11%

Others 5,616 15% 2,812 7%

Total

9M11 9M12

38,328 39,758

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WORLD´S FOREMOST FIREARMS MAKER

STRATEGIES

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PROSPECT AND

EXPAND TO NEW

MARKETS AND

PRODUCTS

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RELOCATION,

MODERNIZATION AND

CENTRALIZATION

OF INDUSTRIAL

FACILITIES

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DEBT EXTENSION

AND REDUCTION

OF ITS COSTS

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EXPANSION THROUGHT

ACQUISITIONS Str

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INCREASE 10% OF USA

MARKET NET SALES AND 10%

OF OTHER COUNTRIES

ENLARGE MIAMI UNIT AND EXPAND IN 50% HERITAGE

PRODUCTION FOR THE NEXT THREE YEARS

INTERNATIONAL FORECAST 2012

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LEADERSHIP IN BRAZILIAN

MOTORCYCLE HELMETS MARKET

(OVER 55% OF SHARE).

SHOULD GROW 18% IN 2012.

HELMETS FORECAST 2012

GUIDANCE 2012 G

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NET SALES MUST BE OVER BRL 700 MILLIONS

ACCOMPLISHED:

9M12: 72,1%

9M11: 71,8%

EBITDA MUST BE OVER BRL 150 MILLIONS

ACCOMPLISHED

9M12: 79,1%

9M11: 71,1%

CAPEX MUST BE 78,6 MILLIONS BRL (INCLLUDING ACQUISITIONS)

ACCOMPLISHED:

9M12: 92,6%

9M11: 81,6%

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GREAT MACROECONOMICS OUTLOOK

COMPANY ´S POTENCIAL GROWTH

HIGH DIVIDEND YIELD

STRATEGIC PLANNING BEING DEVELOPED FOR NEXT 3 YEARS

MORE EMPHASIS ON NEW MARKETS AND NEW PRODUCTS

EXPAND MARKET SHARE BY ACQUISITIONS AND DEVELOPMENT

OF NEW PRODUCT MIX (HANDGUNS+HUNTING RIFLES +

MARKET NICHS+ MILITARY GUNS+LESS LETAL GUNS)

INVESTMENT FUNDAMENTALS