R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

| Apresentação do Roadshow

1

As of June, 2014 August, 2014

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B:232

Statements regarding the Company’s future business perspectives and projections of operational and

financial results are merely estimates and projections, and as such they are subject to different risks and

uncertainties, including, but not limited to, market conditions, domestic and foreign performance in general

and in the Company’s line of business.

These risks and uncertainties cannot be controlled or sufficiently predicted by the Company management

and may significantly affect its perspectives, estimates, and projections. Statements on future

perspectives, estimates, and projections do not represent and should not be construed as a guarantee of

performance. The operational information contained herein, as well as information not directly derived from

the financial statements, have not been subject to a special review by the Company’s independent

auditors and may involve premises and estimates adopted by the management.

2

Disclaimer

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| Company overview

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B:232 .1 Platform of brands of reference

Arezzo&Co is the leading Company in the footwear and accessories sector through its platform of Top of Mind brands

1

4

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B:232 .2 Company overview

Arezzo&Co is the reference in the Brazilian retail sector and has a unique positioning combining growth with high cash generation

1

5

Notes:

1. LTM as of June, 2014.

2. Refers to the Brazilian women footwear market (source: Euromonitor, IBGE and Company estimates). Estimated for 2012.

Leading company

in the footwear

and accessories

sector with

presence in all

Brazilian states

Controlling

shareholders are

the reference in

the sector

Development of

collections with

efficient supply

chain

Asset light: high

operational

efficiency

Strong cash

generation and

high growth

10.2 million pairs of shoes (1)

696 thousand handbags (1)

2,748 points of sale

11% market share (2)

More than 41 years of

experience in the sector

Wide recognition

~11,500 models created

per year

Lead time of 40 days

7 to 9 launches per year

90% outsourced production

ROIC of 24.0% in 2Q14

2,135 employees

Net revenues CAGR:

28.5% (2007- 2Q141)

Net Profit CAGR: 34.6%

(2007- 2Q141)

Increased operating

leverage

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B:232

Founded in 1972

Focused on brand and

product

Consolidation of industrial

business model located in

Minas Gerais

1.5 mm pairs per year

and 2,000 employees

Focus on retail

R&D and production

outsourcing on Vale dos Sinos

- RS

Franchises expansion

Specific brands for each

segment

Expansion of distribution

channels

Efficient supply chain

First store

Fast Fashion

concept

Launch of the

first design with

national success

+

Schutz launch

Launch of

new brands

Merger

Commercial operations

centralized in São Paulo

Strategic Partnership

(November 2007)

Industry Reference Foundation and structuring Industrial Era Corporate Era Retail Era

2012 – 2014 70’s 80’s 90’s 00’s

Opening of the first

shoe factory

Opening of the flagship

store at Oscar Freire

.3 Successful track record of

entrepreneurship

The right changes at the right time accelerated the Company's development 1

Consolidate

leadership

position

Initial Public Offering

(February 2011)

6

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Post-offering

.4 Shareholder structure 1

Notes:

1. Arezzo&Co capital stock is composed of 88,682,735 common shares, all nominative, book-entry shares with no par value.

2. Including Stock Option Plan – Arezzo&Co’s executives

Shareholder structure as of Augustl, 2014. 7

52.3% 47.7%

Birman family Others

1 Management ²

1.1%

Float

46.6%

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B:232

8

.5 Culture & Management

1 01 That which is not transparent should not be done.

02 Always be true, so that at some point you are not false in your job. Always be authentic.

03 Clearly negotiate your goals and responsibilities, and consider compliance as a requirement for

continuity.

04 Do not uncover problems only. Blaming others will never be the solution. Take risks, propose

solutions. If you disagree with something, act!

05 Formalize everything, even in an informal way.

06 Always be flexible. Always be willing and ready for changes.

07 Goals met are, at least, the basis for the next goal.

08 United we stand! Divergences are constructive, conflicts are destructive.

09 A humble stance: the key to our success.

10 Enjoy. Like. Get involved. And always be happy!

Principles of success at Arezzo&Co:

2154

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B:232 .6 Strong platform of brands

Strong platform of brands, aimed at specific target markets, enables the Company to capture growth from different income segments

1

9

Notes:

1. Points of sales (2Q14); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports

2. % of each brand gross revenues (FY 2013)

3. 2Q14 gross revenues, including external market: does not include other revenues (not generated by the 4 brands)

4. % total 2Q14 gross revenues

Trendy

New

Easy to wear

Eclectic

Fashion

Up to date

Bold

Provocative

16 - 60 years old 18 - 40 years old

R$ 305.00/pair

Pop

Flat shoes

Affordable

Colorful

12 - 60 years old

R$ 110.00/pair

Design

Exclusivity

Identity

Seduction

R$ 960.00/pair

20 - 45 years old

Brands

profile

Female

target

market

Sales

Volume 3

% Gross

Revenues 4

Retail price

point

Foundation 1972 1995 2008 2009

MB O O F MB

R$ 189.00/pair

O F MB

Dis

trib

uti

on

ch

an

ne

l 1

POS 1

%

gross

rev.2

EX EX EX

9 2 17 348 26 43 1,383

73% 14% 12% 13% 43% 39%

33

1%

162

6%

45

49% 9% 42%

6 26 987 5

0% 53% 46% 1%

O F MB EX

R$ 740.7 million R$ 439.2 million R$ 52.8 million R$ 6.0 million

59.8 % 36.0% 4.3% 0.5%

1,040

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B:232 .7 Multiple distribution channels

1

10

Flexible platform through three distribution channels with differentiated strategies, maximizing the Company's profitability

Gross Revenues per Channel

51 owned stores

being 7 Flagship

stores

Reach about 1,172

cities and 2,280

multi-brands

417 franchises in

more than 160 cities

Broad distribution in

every Brazilian state

Gross Revenue Breakdown – (R$ mm)¹

Franchises Owned stores Multi-brands Exports² Total

Notes:

1. 2Q14 LTM gross revenues

2. Also includes other revenues in the domestic market

49% 24% 22% 5% 100%

629

299

280

652

1,273

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B:232

| Business model

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B:232

Management

BRANDS OF REFERENCE

Customer focus: we are at the forefront of Brazilian women fashion and design

Multi-channel Sourcing & Logistics Communication &

Marketing

SEASONED

MANAGEMENT

TEAM WITH

PERFORMANCE

BASED INCENTIVES

NATIONWIDE

DISTRIBUTION

STRATEGY

EFFICIENT

SUPPLY CHAIN

SOLID MARKETING

AND

COMMUNICATION

PROGRAM

ABILITY TO

INNOVATE

R&D

1 2 3 4 5

12

Unique business model in Brazil

2

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B:232 .1 Ability to Innovate

We produce 7 to 9 collections per year 2 I. Research

Creation: 11,500 SKUs / year

II. Development III. Sourcing IV. Delivery

Arezzo&Co fulfills the various aspirations of women, delivering on average 5 new models per day, allowing for consistent desire-driven purchases

Available for selection:

63% of SKUs created / year

13

Stores: 52% of SKUs created /

year

Creation

Launch

Orders

Production

Delivery

Normal sale

Discount sale

Winter I Winter II Winter III Summer I Summer II Summer III Summer IV

Activities JAN FEV MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

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G:217

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G:160

B:160

R:208

G:240

B:232

CRM – VIP sales

In-store events – PA

Stylists Fashion Advisors

.2 Broad media plan

2

14

The brand has an integrated and expressive communication strategy, from the creation

of campaigns to the point of sales

Strong presence in printed media

+100 inserts in printed media in 180 pages in 2013 (32 million readers) Over 1350 exhibition in fashion editorials in 2013

Digital communication

Presence in electronic media and television

Demi Moore

Seasonal showroom in Los Angeles near

the Red Carpet Season

Celebrity Endorsement Marketing Events

830k accesses to site/month

(180k monthly access to Schutz’s Blog)

Average navigation time: 8 minutes

Gisele Bündchen Blake Lively

+200 exhibition on Cable TV + 3 million impact

* Source: Indexsocial/ Agência Espalhe, 2013

Over 3 mm followers/ fans: Facebook,

Instagram and Twitter (all 4 Brands)

Arezzo is leader in interactions*

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B:163

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B:121

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G:119

B:119

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B:217

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B:232

Stores constantly modified to incorporate the concept of each new collection, creating desire-driven purchases

.2 Communication & marketing program

reflected in every aspect of the stores 2

15

All visual communication at stores is monitored and updated simultaneously throughout Brazil for each new collection

Flagship stores Store layout & visual merchandising

POS materials (catalogs, packaging, among others)

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G:217

B:217

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G:160

B:160

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B:232

Distinguished storefront

.2 Atmosphere of stores: differentiated

concepts for each brand 2

16

Verão – Flagship Oscar Freire

Inverno – Flagship Oscar Freire

Visual merchandising:

Updates at low cost investment

Brings relevant information from

each collection to stores’ level

3 main updates per year

Chameleon project: constant

modification to incorporate the new

collection’s concept

Vídeo Wall

Closet Essentials

Niches and lighting

Jackets and accessories

Campaigns and marketing actions

Preeminence for products

Differentiated products

Exposure of a large variety of

products

Selling area inventory: lower

necessity of area for storage

Atmosphere of a jewelry store

Private shop experience

Focus on exclusivity, design and

highly selected materials

Wall display

Combos

Each theme is disposed in different niches

Accessories Sophisticated lighting Storage

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B:232

Reception: 100,000 units/ day

Storage: 100,000 units/ day

Picking: 150,000 units/ day

Distribution: 200,000 units/ day

.3 Flexible production process…

2

17

Production speed, flexibility and scalability to ensure Arezzo&Co’s expected growth based on asset light model

Arezzo’s scale and structure gives flexibility to source a large number

of SKU’s from various factories on a short time frame at competitive

prices

Owned factory with capacity to produce 1.1 million pairs annually

and strong relationship with Vale dos Sinos production cluster as

the main outsourcing region

Sourcing Model Gains of scale

Joint purchases Certification and auditing of suppliers

In-house certification and auditing ensure quality and punctuality

(ISO 9001 certification in 2008)

Coordination of material purchase jointly with shoe, handbag and

accessories’ suppliers

New Distribution Center Sourcing model – 90% of production outsourced

Consolidation and improvement of distribution in

national scale

1 2

3 4

10%

90%

AREZZO&CO OWNED FACTORY

OTHERS

R:152

G:216

B:218

R:80

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B:207

R:216

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B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232 .4 Large distribution network and scale of

store chain 2

18

Brand Average

size (m2)

Net Revenue/ m2

(R$ 000s)

Total

Stores 1

65 37 449

108 21 760

1,575 9 277

1,012 6 407

251 12 207

Mono-brand store chain with high distribution network, reaching more than 160 cities and well-positioned among the retail companies Size and average sales per mono-brand stores - 2013

348 franchises +

17 owned stores(i) +

1.040 multi-brand clients

(i) 5 discount outlet

43 franchises +

26 owned stores(ii) +

1,383 multi-brand clients

(ii)1 discount outlet

Points of sale (2Q14)

TOTAL

26 franchises

6 owned stores

987 multi-brand clients

2 owned store +

9 multi-brand clients

417 franchises5 +

51 owned stores5 +

2,280 multi-brand clients

=2,748 points of sales

Source: IBGE, Companies’ Reports; number of stores according to latest data provided by the Companies Notes: 1. Considers only mono-brand stores of Arezzo&Co; 2. Net Revenue (assuming that sales taxes and deduction = 30% of gross revenues); 3. 2010 data; 4. Considers Arezzo + Schutz, except for outlets, handbags’ stores and Schutz franchise; 5. Including export market

GDP³: 18%

A&C¹: 17%

GDP³: 55%

A&C¹: 57%

GDP³: 17%

A&C¹: 15%

GDP³: 9%

A&C¹: 7%

GDP³: 5%

A&C¹: 4%

57 sq m

85 sq m

80 sq m

Points of sale – average size: new stores opened

in 2011 and 2012 increased network average size

2010 2011 new

stores

2012 new

stores

2013 new

stores

55 sq m

2

2

4

2014 new

stores

52 sq m

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

88% 91% 81% 77%

80% 78%

79%

12% 9%

19%

23%

20%

22%

21%

1044 1369

2067

2967

4686

5897

6586

2007 2008 2009 2010 2011 2012 2013

Flagship

Standard store

.4 ...through owned stores…

Capturing value from the chain while developing retail know how and brands’ visibility

2 Flagship Stores

19

Arezzo – Iguatemi / SP

Schutz – Oscar Freire/ SP

Anacapri – Eldorado/ SP

Greater brand awareness coupled with operational efficiencies

Clustering higher productivity stores in main areas (mainly SP and RJ) improving

operational efficiency and profitability:

Direct costumers interaction develops retail competences which are also reflected at

franchised stores

Flagship stores ensure greater visibility and reinforce brand image

R$ 3,200M

R$ 5,300M

Ow

ned

Fra

nchis

e

Annual Average

Sales per Store

2013

Total sales area and # of owned stores (sq. m)

# owned Stores

Arezzo – Oscar Freire/ SP

Schutz – Morumbi/ SP

6 10

21 29

45

57 54

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Structure applied to retail in order to achieve better sales and margin results as well as integrating and connecting all monobrand stores’ back office

2

20

.4 … based on a retail oriented

structure...

Strong focus on Franchise & Owned Store performance

• All sales team (4000+) get connected through national internet broadcast for 3 Sales Conferences per year, creating an aligned sales pitch and great sense of motivation before each season

• Large service program to assist franchisees on sales and profitability goals

• Recurring training programs in products, fashion trends, sales techniques, store management, IT, among others

• Strong visual merchandising, trade marketing and ambiance investments and training

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Intense retail training

Ongoing support: average of 6 stores/ consultant and average of

22 visits per store/ year

Strong relationship with and ongoing support to franchisee

IT integration with our franchises amount 100%

As mono-brand stores, franchises reinforce the branding in each

city they are located

2

4 or more

franchises

1 franchise

2 franchises

3 franchises

49%

10%

27%

15%

.4 …with efficient management of the

franchise network...

Model allows rapid expansion with little invested capital by Arezzo&Co and high profitability to franchisees Successful Partnership: “Win – Win” Franchise Concentration per Operator

100% of on-time payments

96% satisfaction of franchises1

Excellency in Franchising Award in the last 8 years (ABF)

Best Franchise in Brazil (2005 and 2012) and in the sector for 7 years since 2004

(# of Franchisees by # of Franchises)

Notes: 1Q14 data

1. 96% of the current franchisees indicated they would be interested in opening a

franchise if they did not already have one

2. Annual sales of R$ 3,3 million + average initial investment of R$ 900 thousand +

working capital of R$ 600 thousand

21

5-year contract and average payback of 40 months2

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

88 84

2Q13 2Q14

.4 ...and of the multi-brand stores

2

22

Multi-brand stores’ Gross Revenue¹ Improved distribution and brand visibility Greater brand distribution net work

Presence in over 1,172 cities

Rapid expansion at low investment and risk

Main focus: share of wallet

Owner’s loyalty

Schutz Club – Relationship program that gives

advantages to the 50 Top Multi-brand stores, such as

better products display, training and awards to the best

sales teams.

Important sales channel for smaller cities

Sales team optimization: internal team and commissioned sales

representatives

Multi-brand stores widen the distribution capillarity and the brands’ visibility, resulting in a strong retail footprint

Notes:

1. Domestic market only

Multi-brand stores

-4.5%

Net Revenue (R$ million) # Stores

2,452

2,280

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Years

at Arezzo

Years of

experience

.5 Seasoned and professional

management team 2

Years

at Arezzo

Years of

experience Name

Title

Highly qualified management team

Stock option plan for key executives

Performance based compensation package for all employees

Independent business units leveraged on a single shared service structure: Industrial, Logistics, Financial and HR

Alexandre Birman

CEO

Claudia Narciso

Arezzo

Fabiola Guimarães

Schutz

Yumi Chibusa

Anacapri

Milena Penteado

Alexandre Birman

Thiago Borges

CFO and Investor Relations Officer 18

14

8

18

24

15

5 10

5 15

5 13

Schutz

Fabiola Guimarães

Supply Chain/

Sourcing

Cisso Klaus

CFO

Thiago Borges

Technology/ Logistics

Kurt Richter

Marco Coelho

Internal Auditing

Arezzo

Claudia Narciso

Alexandre Birman

Anacapri

Yumi Chibusa

Alexandre

Birman

Milena Penteado

23

Name

Title

Kurt Ritchter

Officer – CTO

Cisso Klaus

Officer – Supply Chain/ Sourcing

Marco Coelho

Officer – Internal Auditing

Cassiano Lemos

Officer – Collection Planning

11

9

30

1

32

47

41

16

Commercial

David Python

Independent business units

Cassiano Lemos

Collection Planning

David Python

Officer Commercial 2 10

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

José Bolonha (Coordinator)

Juliana Rozenbaum (Coordinator)

.6 Corporate governance

2

24

Risk, Audit and Finance Committee

Committees

Strategy Committee People Committee

Members:

Alexandre Birman (CEO), Guilherme A.

Ferreira, Edward Ruiz, José M. Carvalho, Marco

Antônio Coelho e Thiago Borges (CFO)

Members:

Alexandre Birman (CEO), Anderson Birman

(Chairman) , Fabio Hering, Fernando Caligaris,

Carolina Faria and Arthur N. Grynbaum¹

Members:

Alexandre Birman (CEO), Claudia Soares and

Ligia Martins

The new Board is comprised of 10 members, of which 4 are independent, and has a very large engagement on the strategic planning of Arezzo&Co

Name Experience Name Experience

Title Title

Board of Directors

Anderson Birman Chairman of the Board

Founder and Chairman of the Board, with over 40 years of

experience in the industry

Carolina Faria Member

Marketing consultant at True Brand & Business – Soul

Brand Services from 2010 to 2012. Previously, worked as

an executive at Ambev.

Fabio Hering Independent member

CEO and board member of Cia. Hering, where he has

been working for over 28 years.

Rodrigo C. Galindo Independent member

CEO of Kroton Educacional S/A, one of the biggest

education companies in the world, with over 500 thousand

students in colleges.

Welerson Cavalieri

Member

Partner at INDG/FALCONI Consultores de Resultados,

where he works for more than 19 years. Previously, was

an executive in big mining companies.

Juliana Rozenbaum Member

Over 13 years of experience as sell side equity research

analyst, focused mainly in retail and consumer companies.

Claudia Soares Independent Member

Former CFO and IR Officer at Via Varejo S.A. and

Executive Vice-President of Market Strategy at Companhia

Brasileira de Distribuição – GPA.

José Murilo Carvalho Member

President of the Attorney’s Association of Minas Gerais,

Board Member of the Brazilian Bar Association

Guilherme A. Ferreira Independent Member

CEO of Bahema Participações, board member of Pão de

Açúcar, Banco Signatura Lazard, Eternit, Tavex and Rio

Bravo Investimentos

José Bolonha Vice Chairman of the Board

Founder and CEO of “Ethos Desenvolvimento Humano e

Organizacional“; Board member of the Inter-American

Economic and Social Council (UN, WHO

1- CEO of Grupo Boticário (largest franchise company in Brazil)

and Vice-President at Abihpec (Brazilian Association Personal

Hygiene, Perfumes & cosmetics Industries)

Welerson Cavalieri (Coordinator)

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| Value Drivers Update

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B:232 .1 Solid growth fundamentals

3

26

The Company has ongoing initiatives to unlock value to shareholders

Net revenues CAGR

2007-2013

30.6%

Store openings guidance for 2014 reaffirmed

Strong Schutz’s sales encourages launch of webcommerce channel

for other brands

Multibrand strategy brings capillarity

DISTRIBUTION NETWORK AND SALES AREA EXPANSION

GTM Arezzo project enhancing sell-out performance

New store layout for Arezzo and Anacapri increased sales per m²

Repositioning of handbags in Schutz presented very positive results

STORE PRODUCTIVITY 2

Continuous focus on diluting operating expenses

PROFITABILITY 3

Constant analysis towards improvements in logistics and distribution

PROCESS EFFICIENCY 4

1

193.8

367.1

860.3

412.1

571.5

678.9

2007 2008 2009 2010 2011 2012 2013

89.4%

12.3%

38.7%

18.8%

26.7%

11.9%

963.0

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B:232 .1 2014 Expansion Plan

Since IPO, for 2 consecutive years, store opening guidance was achieved; 2014 expansion is committed to 58 new stores with 13% growth in sales area

3

1) Includes international store operation – Schutz NY

In addition to the store

openings, the company is

committed to expand existing

stores by a total of 1,000 sqm

in 2013 and 2014

90% of the contracts already

signed

51 stores opened in the last

12 months (2Q14)

27

# Owned Stores

# Franchises

365

3T13 2013

55

420

334

2012

56

390 31

29

395

55

450 58

2014

464

43

507

+8%

+7%

+13% -1

12 -12

# Conversion

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28

.1 Web commerce: Entry into the channel

3 Client profile and adhering to online media boosted Schutz entry into the online

channel

Source: Euromonitor

Attractiveness of online

commerce, especially in the

fashion segment

Brand adhesion and profile of

Schutz client

Schutz clients are connected and use

social media to obtain information, to

express themselves and to consume

Biggest fashion brand on Instagram

Brand enjoys high online audience and

engagement

Since 2009, Schutz has a strong

relationship with fashion bloggers

Strong growth in online sales

Highest growth in footwear and clothing

segments

Forecast is maintenance of strong growth

10,387 14,641

20,893 95

312

1,444

2008 2010 2012

Other Online Retail Clothing and Footwear

CAGR

08-12

97.4%

19.1%

17.6%

15.0%

CAGR

12-17E

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29

3 Brand strength in the online world and alignment with client profile

.1 Web commerce: Entry into the channel

Data: September/2013

Attractiveness of online

commerce, especially in the

fashion segment

Brand adhesion and Schutz client

profile

Au

die

nce

En

ga

ge

me

nt

exame.com award

Recognized as the most active

brand on Instragram

• Likes: 8461

• Comments: 115

• Date: 11.15 – Aug 8,

2013

August 2013 average • Pictures: in the month 133 / 4.2 pictures per day

• Likes – TOTAL: 565 thousand/ Per pictures: 4,252

• Comments – TOTAL: ~10 thousand/ Per picture: 75

• Engagement: 56.6

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30

.1 Web commerce: Channel evolution

3 Structuring of online channel and initial results confirm channel attractiveness and

alignment

R$1 million sales

Thesis test

R$10 million sales

Internal strengthening to better serve

our clients

Dedicated management

R$24 million sales

Preparation to expand channel

potential

Evolution of technological platform worldwide

Dedicated logistic operator

Improvement of online marketing actions

FACEBOOK/INSTAGRAM 2013

WEBCOMMERCE BEGINNING

CRM Action

Online

Schutzlovers

Set-Dez/2011 2012 2013

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31

.2 GTM Arezzo

3 Under GTM Arezzo the Company expects to increase the product accuracy with new collection calendar a shorter lead time

Life cycle More fashion content; largest collections

presented to the franchisees

Collection

Continuables

Classic

Showroom

Fashion complement

Fast fashion

Continuables

Classic

Supply model

Fashion complement using information

from the sell out

Capturing quick trends, not only from

Arezzo’s stores, but also from market

research

Products automatically replaced in the

stores with some season colors

Open size run replacement

Products also automatically replaced in

the stores; only two colors. Full mark-up

sell-through

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B:232 .3 Store productivity increase

3

32

Arezzo’s new architectural design highlights our products even more

With new shelves and niches,

we were able to increase in 50%

the number of models

exposed in the stores

Window relate to the pattern

used on our products’ soles,

forming the brand’s “ZZ”

symbol

Suspended shelves around

the entire store with lights

that highlight the products

Products highlighted in the

center of stores

Next to the cashier, a

dedicated shelf for

appliances allows us to add

units to the sale

A better distribution of the

furniture offers more

comfort for clients in the

stores

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B:232 .3 Evolution of architectural design and

store model 3

33

New architectural design means proper showcasing of the products and a superior

purchasing experience for a low outlay

Combo: at the back of the store, special offers in order to increase UPT and provide women with practical and quick service

Tower: on one side, individual flat shoes are displayed; on the other side, mirrors; and inside, an inventory with a pair in each size

Central Islands: to display the classical “must-have” Anacapri products

Enchanted Island: at the front of the store with the leading new launches intended to attract customers

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34

3 Changes in strategy for Schutz brand handbags resulted in a strong growth in the

product segment

.4 Schutz Handbags

10.4%

17.5%

1Q13 1Q14

1

2

3

Note: handbags as percentage of owned stores revenues

Segmentation by product and channel

to meet final client’s needs

Development of products, increasing

their perceived value

Reduction in the number of models,

favoring supply chain and creating

identity for in-store product

Handbags % of Schutz Revenue

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35

.4 Schutz Handbags

3 Product line segmentation enables reaching different audiences in different channels,

with the proper branding strategy and meeting clients’ desires

SCHUTZ

PREMIUM

SCHUTZ

POP & FUN

SCHUTZ

✔ R$790 - R$1,100*

R$490 - R$790*

R$350 - R$490*

O / F Difference

between lines

Product technical

standard

Sourcing base

Materials used

Level of exposure of

brand/logo

V.M. in store and

showroom

Depth of purchases in

the grids

Training of commercial

teams

Marketing and

communication actions

✔ ✔

✔

MB SAMPLES

Main channel

Note: POS values

O = Owned Stores; F = Domestic Franchises; MB = Multibrand store (domestic market)

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36

3 Focus on product development increased perceived quality and desire for the product

Detailed product development

Desire and spontaneous reaction

of opinion makers

Over 2,100 pieces sold

.4 Schutz Handbags

Exemplo

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B:232 Key takeaways

37

Undisputable category leader 1

Significant growth potential 2

Reference brands 3

Scalable platform with operating leverage 5

Efficient and market oriented supply chain 4

High return on invested capital 6

3

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| Market Overview and

| Sourcing and Industry Characteristics

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B:232 .1 Social upward mobility driving internal

consumption 4

39

Income growth and job creation lead to rapid social upward mobility and increasing internal consumption

2003 70 (36%) 54 (27%) 96 (55%)

+14 mi (2003-14E)

+49 mi (2003-14E)

2014E 2011

27 (14%) 22 (11%) 13 (8%)

66 (38%)

100 (52%)

115 (59%)

(Consumption growth as a result of the upward mobility in social classes; indexed 100 = class D/E)

Source: IBGE, FGV, LCA, Bain & Co., BCG, Roland Berger, IPC Maps

Classes A/B: monthly income above R$6,977 | Class C: monthly income between R$1,618 and R$6,977 | Class D: monthly income between R$1,013 and R$1,618 | Class E: monthly income below R$1,013

Class

D/E Class

C Class

B Class

A

Out-of Home Food

Furniture

Apparel and

Footwear

Prescription/OTC drugs

Hygiene and

Personal Care

Footwear and

apparel have the

largest growth

potential

Class C

Class A/B

Class D/E

Brazil experiences an accelerated process of social upward migration... (Millions of people)

1.0x

1.0x

1.0x

1.0x

4.2x

3.2x

3.4x

3.4x

7.0x

5.6x

5.3x

5.6x

9.4x

7.9x

7.3x

7.6x

Classes A/B: monthly income above R$4,808 | Class C: monthly income between R$1,115 and R$4,408 | Class D: monthly income between R$768 and R$1,115 | Class E: monthly income below R$768

...Resulting in a significant rise of consumer goods consumption, including Footwear and Apparel

1.0x 3.7x 6.6x 9.2x

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30%

40%

15%

15%

Footwear Consumption 2013

10%

40% 42%

8%

Income Class

40

.2 Brazilian footwear market overview

4 Arezzo&Co has a significant stake of the women footwear market and has consistently increased its market share

Sports

Men

Kids

Women

Footwear

Class A Class D/E

Class C Class B

Arezzo&Co’s market share1

Source: IBOPE Inteligência (Pyxis), Satra, World Bank, ABICALÇADOS, IEMI, MTE, MDIC, / SECEX, IBGE

Note: 1. Based on Euromonitor research and IBOPE Inteligência (Pyxis). Estimated Arezzo&Co market share considering women footwear market

Total footwear market (R$ bn)

Women footwear

Total footwear

2013E

CAGR (03-13E): + 9.2%

15.9

40.3

4%

7% 8%

9% 10%

11%

2007 2008 2009 2010 2011 2012

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B:232 .3 Brazilian handbags market overview

4 Arezzo&Co also has a relevant position within the fast growing handbag market in Brazil

Source: IBOPE Inteligência (Pyxis), Satra, World Bank, ABICALÇADOS, IEMI, MTE, MDIC, / SECEX, IBGE

Arezzo&Co current sell out breakdown 2013 (R$ mn) Breakdown based on owned stores

Consolidated (including handbags and shoes) market

share: 9.3%

Opportunity to consolidate handbag leading position

88%

10%

Footwear

Handbags291.4

Note: 2% accessories

Total handbags market (R$ bn)

Women handbags

Total handbags

2013E

CAGR (03-13E): + 10.7%

4.0

5.1

Total addressable market (R$ bn)

80%

20%

Footwear

Handbags

19.9

41

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Pairs

(millions)

Production World share

China 12,597 62.4%

Índia 2,060 10.2%

Brazil 894 4.4%

Vietnam 760 3,8%

Indonesia 658 3.3%

Pakistan 292 1.4%

Brazil is the third biggest footwear producer, with production mostly destined to supply

the domestic market. Competitive costs, flexibility on minimum production and short

lead time are the pillars to serve the fast fashion market

.4 Footwear Industry - Global Overview

and competitive advantages

Pairs (millions) Consumption World share

China 2,700 15.2%

USA 2,335 13.4%

India 2,034 11.7%

Brazil 780 4,5%

Japan 693 4.0%

Indonesia 627 3.6%

BRAZIL

Lead time: 40 days

Minimum/model: 800 pairs

Minimum/construction: 4,000 pairs

Production cap. (pairs) 894 million

Cost (w/o tax): USD 21/pair

Cost (w/tax): USD 27/pair

CHINA (different clusters)

Lead time: 120 to 150 days

Minimum/model: 5,000 pairs

Minimum/construction: 20,000 pairs

Production cap. (pairs): 12,000 million

Cost (FOB): USD 16-18/pair

Cost (DDP): USD 42-45/pair

INDIA

Lead time: 160 days

Minimum/model: 5,000 pairs

Minimum/construction: 20,000 pairs

Production cap. (pairs): 2,060

million

Cost (FOB): USD 15/pair

Cost (DDP): USD 23/pair

ITALY

Lead time: 70 days

Minimum/model: 800 pairs

Minimum/construction: 4,000 pairs

Production cap. (pairs): 202 million

Cost (FOB): USD 35/pair

Cost (DDP): USD 49/pair

VIETNAM

Lead time: 120 to 150 days

Minimum/model: 2,000 pairs

Minimum/construction: 8,000 pairs

Production cap. (pairs): 760million

Cost (FOB): USD 18/pair

Cost (DDP): USD 26/pair

4

Source: Abicalçados, Footwear News, Company estimates 42

Note:

Estimate based on Arezzo’s brand products costs

DDP: delivered duty paid

FOB: free on board

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Brazil is recognized by the quality and high specialization within different and complex

categories of shoes. The industry has been qualitatively developed in order to add

value to products and thus increase its competitive advantages over Asian suppliers

.5 Footwear Industry - Global footwear

offering

Global Footwear Offering: the higher and more centralized the country is

in the pyramid, the more focused it is in fashion, creation, design, luxury market ,

marketing and distribution management, with smaller production scale

Equipment assembly

Manufacturing operation

Manufacturer with own design and mostly local brand

Manufacturer with own design and global brand

Global Brands

Receive product and process specifications, as well as components and raw material

Assembly activities only

Usually don’t produce; Creation + own brand management Design and product specification Mostly internationally outsourced Supply chain management Totally decide over marketing and commercialization

Valu

e a

dd

ed

+

-

France

Italy Spain

Taiwan Brazil

Mexico

China India

Thailand Vietnam Other global

suppliers

Indonesia

B

A

C

D

E

Industry segmentation vs. value creation:

4

Source: BNDES, Company estimates 43

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B:232 .6 Arezzo&Co sourcing: Brazilian

competitive advantages

Vale dos Sinos region offer strong competitive advantages, a combination of production capacity, production flexibility, skilled labor and strong structure to support incentives for innovation and strengthening of industry’s competitiveness

Source: Abicalçados, 2012 / ASSINTECAL / FAO / AICSUL.

Brazil is the world’s third largest

footwear producer

The world’s largest cattle: 13% of

the market

RS: 1 third (R$ 1 billion) of

Brazilian revenue in leather industry

Vale dos Sinos: one of the world’s

largest footwear manufacturing hubs

1,700 companies and entities: components,

footwear, machinery, tanneries, trade entities,

research and teaching institutions

Abundant skilled and specialized labor

Production flexibility:

volume X variety X speed

Production (million pairs)

Jobs (thousands)

819

338

Production (million pairs)

Jobs (thousands)

270

138

Production (million pairs)

Jobs (thousands)

216

110

BRAZIL

SOUTHERN REGION

VALE DOS SINOS

Vale dos Sinos: 26% of Brazilian footwear production

4

44

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Trends and style

Design Technical

Design Engineering Samples Showroom

Logistics and distribution Store

Raw material price negotiations Scheduling + Manufacturer negotiation

1 2 3 4 5 6 7

.8 Arezzo&Co Sourcing Process and

supply chain management

Sourcing process and supply chain management focused on ensuring flexibility, speed

and cost control in the creation of new products Arezzo&Co sourcing process:

Coordinated management of production chain associated with Investments in product engineering: specific know

how

Arezzo&Co Raw materials

Finished products

Cost control

Engineering folder

Cost management efficiency

Quality standard guarantee

Efficient lead time

Flexibility

Chemicals and textile

Components

4

45

SKU

MODEL

CONSTRUCTION

10%

35%

70%

Reuse from collection to collection:

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| Financial Highlights 05

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B:232 .1 Operational and financial highlights

5

47

Gross Revenue by channel – Domestic Market (R$ million)

134.5 151.1

251.4 297.0

69.8 74.9

131.3

138.8

87.6 83.6

147.6

139.2

1.9 1.2

5.2

2.1

293.9

310.8

535.4 577.1

2Q13 2Q14 1H13 1H14

Franchise Owned Stores Multi-brand Others¹

In 2Q14, monobrand stores (Franchises and Owned Stores) increased sales, namely a 12.3% growth in

Franchise channel, leveraged by the opening of 58 stores and expansion of 14 in the last twelve months.

SSS Sell-out (owned stores + franchises)

SSS Sell-in (franchises)

1) Others: Decreasing 38.7% in 2Q14 and 60.2% in 1H14.

SSS Sell-out (owned stores + web + franchises)

1.2%

5.5%

6.7%

1.1%

2.5% 7.7%

3.7%

6.7%

5.3 %

5.1%

4.7%

5.9 %

18.1%

5.8%

7.8%

12.3%

7.3%

5.8%

-4.5%

-5.7%

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

237.6 253.7 193.8

367.1 412.1

571.5

678.9

860.3 963.0

2Q13 2Q14 2007 2008 2009 2010 2011 2012 2013

276 309 361

417

31 50

56

51

18.4 23.1

28.0 32.4

2Q11 2Q12 2Q13 2Q14

Franchises Owned Stores Area

5

48

.2 Operational and financial highlights

Key highlights

In 2Q14, Arezzo&Co opened nine stores and expanded six stores, with 15.7% growth in sales area over the last 12 months

The sales area increased 15.7% in the 2Q14, due to the opening of nine stores and expansion of six stores in the LTM.

In 2Q14, gross revenue was R$327.5 million, up by 7.2% against 2Q13.

Number of Stores (R$ mn) and Total Area (sq m - ‘000)

CAGR 07-2Q14LTM: 28.5%

Net Revenues (R$ mn) Area CAGR 07- 2Q14LTM : 16.9%

89.4%

12.3%

38.7%

18.8%

26.7%

11.9%

6.8%

21.1% 15.7%

25.6%

+45

+50 +51

307

359

417

468

1

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232 5

49

.3 Operational and financial highlights

Gross Profit (R$ million) EBITDA (R$ million)

Net Income (R$ million)

106.1 112.9

195.5 205.0

2Q13 2Q14 1H13 1H14

Gross profit Gross Margin

6.5%

44.6% 44.5%

4.8%

44.6% 43.9%

40.5 42.3

69.1 69.6

2Q13 2Q14 1H13 1H14EBITDA EBITDA Margin

4.5%

17.0% 16.7%

15.8% 14.9%

0.7%

29.1 31.6

48.4 49.1

2Q13 2Q14 1H13 1H14

Net Margin Net Income

8.9%

12.2% 12.5%

1.3%

11.0% 10.5%

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

50

5 .4 Operational and financial highlights

Cash Conversion Cycle (R$ thousand)

Cash Flows From Operating Activities (R$ thousand)

Capex (R$ million)

¹ Days of COGS

² Days of Net Revenues

Operational Indicators

Summary of

investments2Q13 2Q14 Growth % 1H13 1H14 Growth %

Total capex 8,942 14,312 60.1% 20,169 24,172 19.8%

Stores - expansion

and refurbishing 4,151 2,534 -39.0% 6,539 5,716 -12.6%

Corporate 3,974 10,028 152.3% 12,006 16,114 34.2%

Other 817 1,750 114.2% 1,624 2,342 44.2%

1H13 1H14 Change

in R$

Change

in %

66,850 70,030 3,180 4.8% 27,928

4,970 6,306 1,336 26.9% -6,306

(286) (1,430) (1,144) 400.0% 6,328

(11,285) (11,653) (368) 3.3% 14,717

9,097 11,692 2,595 28.5% 5,292

(14,190) (35,935) (21,745) 153.2% -11,121

8,049 22,270 14,221 176.7% 30,963

(14,241) (9,680) 4,561 -32.0% -10,418

(17,598) (20,542) (2,944) 16.7% -9,337

42,651 42,711 60 0.1% 33,329

Operating Cash Flow

Income before income tax and

social contribution

Depreciações e amortizações

Change in other noncurrent and current

assets and liabilities

Payment of income tax and social

contribution

Net cash flow generated by

operational activities

Other

Decrease (increase) in current

assets / liabilities

Trade accounts receivables

Inventories

Suppliers

Operating Indicators 1H13 1H14Growth or

spread%

# of pairs sold ('000)34,290 4,577 6.7%

# of handbags sold ('000)3264 323 22.3%

# of employees 2,014 2,135 6.0%

# of stores * 417 468 51

Owned Stores 56 51 -5

Franchises 361 417 56

Outsorcing (as % os total production) 89.9% 90.0% 0.1 p.p

SSS 2 Sell-in (franchises) 6.7% 4.7% -2.0 p.p

SSS 2 Sell-out (owned stores + franchises) 3.7% 5.1% 1.4 p.p

SSS 2 Sell-out (owned stores + web + franchises) 5.3% 5.9% 0.6 p.p

#days (R$'000) #days (R$'000)

110 246,493 128 299,143 18

Inventory¹ 63 89,821 79 120,458 16

Accounts Receivable² 78 200,229 87 235,814 9

(-) Accounts Payable¹ 30 43,557 37 57,129 7

Cash Conversion Cycle2Q13 2Q14 Change

(in days)

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

51

5 .5 Operational and financial highlights

Indebtedness (R$ thousand)

Indebtedness totaled R$ 80.9 million in 2Q14 versus

R$ 107.9 million in 2Q13

Long-term debt relevance stood at 38.5% in 2Q14 versus

43.7% in 2Q13

Indebtedness policy remained conservative, with low

weighted-average cost of Company's total debt

2Q13 1Q14 2Q14

Cash 214,411 207,553 159,196

Total debt 107,862 96,652 80,853

Short term 60,763 59,680 49,753

% total debt 56.3% 61.7% 61.5%

Long-term 47,099 36,972 31,100

% total debt 43.7% 38.3% 38.5%

Net debt (106,549) (110,901) (78,343)

EBITDA LTM 155,575 158,113 159,916

Net debt/EBITDA LTM -0.7X -0.7x -0.5X

Cash position and Indebtedness

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

52

Appendix

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

53

.1 Key financial indicators

A

1 - Working Capital: current assets minus cash, cash equivalents and marketable securities less current liabilities minus loans and financing and dividends payable.

2 - Invested capital: working capital plus fixed assets and other long-term assets less income tax and deferred social contribution.

3 - Net debt is equal to total interest-bearing debt position at the end of a period less cash and cash equivalents and short-term financial investments.

2Q13 2Q14Growth or

spread% 1H13 1H14

Cresc. ou

spread (%)

Net revenues 237,639 253,748 6.8% 438,678 467,173 6.5%

COGS (131,581) (140,840) 7.0% (243,187) (262,204) 7.8%

Gross profit 106,058 112,908 6.5% 195,491 204,969 4.8%

Gross margin 44.6% 44.5% -0.1 p.p. 44.6% 43.9% -0.7 p.p.

SG&A (67,965) (73,724) 8.5% (131,347) (141,705) 7.9%

% of Revenues 28.6% 29.1% 0.5 p.p 29.9% 30.3% 0.4 p.p

Selling expenses (48,582) (51,903) 6.8% (92,445) (97,824) 5.8%

Ow ned stores (22,020) (22,291) 1.2% (44,357) (44,862) 1.1%

Selling, logistics and supply (26,562) (29,612) 11.5% (48,088) (52,962) 10.1%

General and administrative expenses (17,891) (17,065) -4.6% (35,220) (34,980) -0.7%

Other operating revenues (expenses) 893 (1,659) n/a 1,288 (2,595) n/a

Depreciation and amortization (2,385) (3,097) 29.9% (4,970) (6,306) 26.9%

Ebitda 40,478 42,281 4.5% 69,114 69,570 0.7%

Ebitda margin 17.0% 16.7% -0.3 p.p. 15.8% 14.9% -0.9 p.p.

Net income 29,057 31,633 8.9% 48,423 49,066 1.3%

Net margin 12.2% 12.5% 0.3 p.p. 11.0% 10.5% -0.5 p.p.

Working capital1 - as % of revenues 26.1% 30.2% 4.1 p.p 26.1% 30.2% 4.1 p.p

Invested capital2 - as % of revenues 33.9% 41.9% 8.0 p.p. 33.9% 41.9% 8.0 p.p.

Total debt 107,862 80,853 -25.0% 107,862 80,853 -25.0%

Net debt3 (106,549) (78,343) -26.5% (106,549) (78,343) -26.5%

Net debt/EBITDA LTM -0.7x -0.5x n/a -0.7x -0.5x n/a

Key financial indicators

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

54

.2 History – Franchises and Owned Stores

A

1. Includes areas in square meters of 9 international stores

2. Includes 6 outlet-type stores with a total area of 2,217 m2

3. Includes areas in square meters of stores expansion

2Q13 3Q13 4Q13 1Q14 2Q14

Sales area 1,3 - Total (m²) 27,996 28,999 31,848 32,138 32,381

Sales area - franchises (m²) 22,154 23,174 25,262 25,498 26,056

Sales area - Ow ned stores 2 (m²) 5,842 5,825 6,586 6,640 6,325

Total number of domestic stores 408 420 449 452 461

# of franchises 353 365 395 399 411

Arezzo 324 328 340 341 342

Schutz 29 35 40 41 43

Anacapri 0 2 15 17 26

# of owned stores 55 55 54 53 50

Arezzo 17 16 17 17 17

Schutz 27 27 27 27 25

Alexandre Birman 2 2 2 2 2

Anacapri 9 10 8 7 6

Total number of international stores 9 9 9 9 7

# of franchises 8 8 8 8 6

# of owned stores 1 1 1 1 1

History of Stores

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

55

.3 Major awards received

A Organizer Award Category

Exame Magazine The Best and Biggest (Arezzo&Co) Textiles

InterbrandBrazil’s Most Valuable Brands

(Arezzo brand and Schutz brand)All Sectors

Bittencourt GroupTOP 1 Brazilian Franchising

(Arezzo&Co)

The 25 Biggest and Best Franchise

Network

Social Index Most Social Brands (Schutz brand)Top 10 in engagement on social

networks

IR MagazineGrand prix for best overall investor

relations (small & mid-cap)Investor Relations

O Globo NewspaperMaking a Difference (Alexandre

Birman)Fashion

GQ Magazine Man of the year (Alexandre Birman) Entrepreneurship

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

56

.4 Balance Sheet - IFRS

A Assets 2Q13 1Q14 2Q14

Current assets 537,059 596,400 552,254

Cash and cash equivalents 7,515 10,973 12,557

Financial Investments 206,896 196,580 146,639

Trade accounts receivables 200,229 244,997 235,814

Inventory 89,821 102,756 120,458

Taxes recoverable 18,460 24,775 20,170

Other credits 14,138 16,319 16,616

Non-current assets 137,303 156,635 162,328

Long-term receivables 15,530 16,743 14,876

Financial Investments 21 27 27

Taxes recoverable 377 0 0

Deferred income and social contribution 6,898 8,292 6,694

Other credits 8,234 8,424 8,155

Property, plant and equipment 65,014 69,435 72,123

Intangible assets 56,759 70,457 75,329

Total Assets 674,362 753,035 714,582

Liabilities 2Q13 1Q14 2Q14

Current liabilities 148,087 175,809 142,906

Loans and financing 60,763 59,680 49,753

Suppliers 43,556 74,259 57,129

Dividends and interest on equity capital payable 9,346 0 1

Other liabilities 34,422 41,870 36,023

Non-current liabilities 54,386 43,996 38,629

Loans and financing 47,099 36,972 31,100

Related parties 978 355 725

Other liabilities 6,309 6,669 6,804

Equity 471,889 533,230 533,047

Capital 156,000 219,186 219,186

Capital reserve 125,190 67,543 68,856

Income reserves 153,162 229,068 208,174

Additional proposed dividend 0 0 0

Profit 37,537 17,433 36,831

Total liabilities and shareholders' equity 674,362 753,035 714,582

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

57

.5 Income Statement - IFRS

A Income statement - IFRS 2Q13 2Q14 Growth % 1H13 1H14 Growth %

Net operating revenue 237,639 253,748 6.8% 438,678 467,173 6.5%

Cost of goods sold (131,581) (140,840) 7.0% (243,187) (262,204) 7.8%

Gross profit 106,058 112,908 6.5% 195,491 204,969 4.8%

Operating income (expenses): (67,965) (73,724) 8.5% (131,347) (141,705) 7.9% -6306

Selling (49,709) (53,510) 7.6% (95,008) (101,231) 6.5%

Administrative and general expenses (19,149) (18,555) -3.1% (37,627) (37,879) 0.7%

Other operating income net 893 (1,659) n/a 1,288 (2,595) n/a

Income before financial result 38,093 39,184 2.9% 64,144 63,264 -1.4%

Financial income 666 3,849 477.9% 2,706 6,766 150.0%

Income before income taxes 38,759 43,033 11.0% 66,850 70,030 4.8%

Income tax and social contribution (9,702) (11,400) 17.5% (18,427) (20,964) 13.8%

Current (8,593) (9,802) 14.1% (19,061) (22,144) 16.2%

Deferred (1,109) (1,598) 44.1% 634 1,180 86.1% Alíquota de IR

Net income for period 29,057 31,633 8.9% 48,423 49,066 1.3%

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

58

.6 Cash Flow Statement - IFRS

A Statement of cash flow 2Q13 2Q14 1H13 1H14

Operating activities

Income before income tax and social contribution 38,759 43,033 66,850 70,030

3,358 4,851 4,684 4,876

Depreciation and amortization 2,385 3,097 4,970 6,306

Income from financial investments (2,896) (885) (6,165) (5,195)

Interest and exchange rate 5,057 (800) 5,067 (1,753)

Other (1,188) 3,439 812 5,518

Decrease (increase) in assets

Customer receivables 11,471 9,189 9,097 11,692

Inventory (2,716) (18,161) (14,190) (35,935)

Recoverable taxes (2,663) 4,606 (4,179) (982)

Variation other current assets (3,394) 269 (3,223) 152

Judicial deposits (359) (298) 545 264

Decrease (increase) in liabilities

Suppliers (25,464) (17,130) 8,049 22,270

Labor liabilities 4,338 4,135 (181) 1,635

Fiscal and social liabilities (2,467) (596) (8,771) (6,969)

Variation in other liabilities 1,732 (2,869) 1,568 (3,780)

Payment of income tax and social contribution (13,935) (18,200) (17,598) (20,542)

Net cash flow from operating activities 8,660 8,829 42,651 42,711

Investing activities

Disposal of f ixed and intangible assets 3,781 2,204 4,222 4,667

Acquisitions of f ixed and intangible assets (8,942) (14,312) (20,169) (24,172)

Financial Investments (86,316) (93,137) (168,455) (177,722)

Redemption of f inancial investments 87,352 143,963 158,358 208,179

Increased Investments - - - -

Net cash used in investing activities (4,125) 38,718 (26,044) 10,952

14,926 (14,999) 8,712 (15,812)

Net cash used in financing activities (20,373) (30,964) (29,322) (39,080)

Increase (decrease) in cash and cash equivalents (912) 1,584 (4,003) (1,229)

Cash and cash equivalents

Cash and cash equivalents - Initial balance 8,427 10,973 11,518 13,786

Cash and cash equivalents - Closing balance 7,515 12,557 7,515 12,557

Increase (decrease) in cash and cash equivalents (912) 1,584 (4,003) (1,229)

Adjustments to reconcile net income with cash from

operational activities

Net cash used in financing activities - third parties

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232 IR Contacts

Thiago Borges

Leonardo Pontes dos Reis, CFA

Phone: +55 11 2132-4300

ri@arezzoco.com.br

www.arezzoco.com.br

CFO and IR Officer

IR Manager