| Apresentao do Roadshow As of March 2016 May 2016 1 Disclaimer - - PowerPoint PPT Presentation

| Apresentação do Roadshow

As of March 2016

May 2016

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.

Disclaimer

| Company overview

.1 Platform of brands of reference

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

1

.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

Leading company in the footwear and accessories industry with presence in all Brazilian states Controlling shareholders are reference in the sector Development of collections with efficient supply chain Asset light: high

• perational

efficiency Strong cash generation and high growth

10.5 million pairs of shoes

906 thousand handbags (1) 2,657 points of sale 12% market share (2) More than 43 years of experience in the sector Wide recognition ~11,500 models created per year Lead time of 40 days 15 to 18 launches per year 91.0% outsourced¹ production ROIC of 19.8% in 1Q16 2,200 employees Net revenues CAGR: 24.0% (2007- 2016¹) Net Profit CAGR: 25.9% (2007- 20161) Increased operating leverage

• 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
• utsourcing 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

Commercial operations centralized in São Paulo

Industry Reference Foundation and structuring Industrial Era Corporate Era Retail Era 2011 – 2016

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)

Shareholder structure1

.4 Shareholder structure

52.2% 47.8%

Birman family Float

1

Management Others

27.4%

Aberdeen²

14.9%

Dynamo²

5.1% 0.4%

.5 Culture & Management

1

01 That which cannot be transparent should not be done. 02 Always be true, so that at any point you are not false in your job. Always be authentic. 03 Clearly negotiate your goals and responsibilities, and consider achievement as a requirement for continuity and prosperity. 04 Do not uncover problems only. Blaming others will never be the solution. Take risks, propose

• solutions. In case of doubt, act!

05 Formalize everything, even if in an informal way. 06 Always be flexible. Be 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. Appreciate. Get involved. And always be happy!

Principles of success at Arezzo&Co:

2154

.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

Trendy New Easy to wear Eclectic 16 - 60 years old

Brands profile Women target market Sales Volume3 % Gross Revenues4 Retail price point Foundation

1972

O F MB

R$ 189.00/pair

Distribution channel1

EX 15 68% 14% 16% 67 2%

R$ 755.1 million 52.6 %

Fashion Up to date Bold Provocative 18 - 40 years old 1995

O F MB

R$ 330.00/pair

EX 26 52 15% 30% 40% 15%

R$ 549.5 million 38.3 %

Pop Flat shoes Affordable Colorful 12 - 60 years old 2008

O F MB

R$ 110.00/pair

EX 4 70 45% 35% 17% 21 4%

R$ 96.5 million 6.7 %

Design Exclusivity Identity Seduction 20 - 45 years old 2009

O MB

R$ 960.00/pair

EX 2 2% 17% 43 81%

R$ 30.1 million 2.1 %

12

15 - 30 years old 2015

R$ 248.00/pair R$ 126.1 thousand 0.0 %

O MB EX 1 0% 100% 0%

Casual Young Urban Modern

1,050 1,300 1,163 366 169

.7 Multiple distribution channels

1

Flexible platform through different distribution channels with specific strategies, maximizing the Company's profitability

Gross Revenues per Channel 48 owned stores of which 11 flagship stores About 1,230 cities and 2,114 multi-brands 488 franchises in more than 160 cities in Brazil Broad distribution in every Brazilian state Gross Revenue Breakdown – (R$ mm)¹

Franchises Multi-brands Owned stores Exports² Total

44% 20% 20% 10% 100% 6% 641 300 293 149² 1,464 81

Web Commerce

| Business model

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 4 5

Unique business model in Brazil

2

2 3

.1 Ability to Innovate

We produce 15 to 18 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 at the stores per day, allowing for consistent desire-driven purchases

Available for selection: 63% of SKUs created / year

Stores: 52% of SKUs created / year

Creation Launch Orders Production Delivery Normal sale Discount sale

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

CRM – VIP sales In-store events – PA Stylists Fashion Advisors

.2 Broad media plan

2

Each brand has an integrated and expressive communication strategy, from the creation of campaigns to the point of sales

Strong presence in printed media

+71 inserts in printed media in 134 pages in 2014 (48 million readers) Over 1,350 exhibitions in fashion editorials in 2014

Digital communication Presence in electronic media and television

Demi Moore Seasonal showroom in Los Angeles near the Red Carpet Season

Celebrity Endorsement Marketing Events

+2.2 million accesses to site/month +180k monthly access to Schutz’s Blog Average navigation time: 8 minutes Gisele Bündchen Blake Lively +270 exhibitions on Cable TV + 4 million impact

Over 6 million followers/ fans: Facebook, Instagram and Twitter (all 4 Brands) Arezzo is leader in interactions1

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

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, and others)

.2 Atmosphere of stores: differentiated concepts for each brand

2

• Jackets and accessories
• Campaigns and marketing

• Preeminence for products
• Differentiated products
• Display of a large variety of

• Inventory at the sales area:

• Atmosphere of a jewelry

• Private shop experience
• Focus on exclusivity, design

• Window related to the

• To increase in 50% the

• Products highlighted in the

• Lights that highlighting the

• A better distribution of the

• Experimental and creative

• Interaction with the customer
• Collaborative experience (in-

.3 Large distribution network and scale of store chain

2

Brand Average size (m2) Net Revenue/m2 (R$ 000s) Total Stores1

69 30 537 140 17 653 1,404 10 380 1,035 6 409 184 20 328

Mono-brand store chain with high distribution network, reaching more than 160 cities and well-positioned among the retail companies

Points of sale (1Q16)

TOTAL

488 franchises + 48 owned stores + 2,114 multi-brand clients3 =2,650 points of sales

GDP³: 14% A&C¹: 17% GDP³: 55% A&C¹: 55% GDP³: 17% A&C¹: 14% GDP³: 9% A&C¹: 9% GDP³: 5% A&C¹: 5%

85 sq m 80 sq m Points of sale – average size: new stores opened since 2011 increased network average size

2011 new stores 2012 new stores 2013 new stores

55 sq m

2014 new stores

52 sq m

2015 new stores

69 sq m

Size and average sales per mono-brand stores – 2015FY

Reception: 100,000 units/day Storage: 100,000 units/day Picking: 150,000 units/day Distribution: 200,000 units/day

.4 Flexible production process…

2

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

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

prices Owned factory with capacity to produce 955 thousand pairs annually and a 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

Distribution Center Sourcing model – 91% of production outsourced¹ Consolidation and improvement of distribution in national scale

1 2 3 4

9% 91%

Arezzo&Co owned factory Others

• 1. 1Q16 (LTM)

.4 ... sold through owned stores…

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

2

Flagship Stores

Greater brand awareness coupled with operational efficiencies

• Clustering higher productivity stores in main areas (mainly SP and RJ) improving
• perational efficiency and profitability:
• Direct costumers interaction develops retail assets which are also reflected at

franchised stores

• Flagship stores ensure greater visibility and reinforce brand image

R$2.5 mln R$5.6 mln

Annual Average Sales per Store 2015

Total sales area and # of owned stores (m2)

2,120 3,782 4,585 5,401 6,009 5,146 847 904 1,212 1,185 1,166 1,109 29 45 57 55 54 48

• 70
• 50
• 30
• 10

10 30 50 70 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2010 2011 2012 2013 2014 2015 Standar stores Flagship # Owned stores

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

2

.4 … based on a retail oriented structure...

Strong focus on franchise and owned store performance

• All sales team (4,000+) get connected through national internet broadcast for three sales conventions per year,

creating an aligned sales pitch and a 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

57% 24% 9% 9%

• 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 amounts to 100%
• As mono-brand stores, franchises reinforce branding in each city

they are located

2

4 or more franchises 1 franchise 2 franchises 3 franchises

.4 …with efficient management of the franchise network...

Model allows rapid expansion with low invested capital by Arezzo&Co and high profitability to franchisees

Successful Partnership: “Win – Win” Franchise Concentration per Operator

96% satisfaction of franchisees1 Excellence in Franchising (ABF). Awarded 13 times | 12 years consecutively. Best Franchise in Brazil (2005 and 2012) and in the industry for 7 years since 2004

(# of franchises by # of franchisees)

5-year contract and average payback of 48 months2

310 299 1Q15 1Q16

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

2

Multi-brand stores’ Gross Revenue¹ Improved distribution and brand visibility

• Greater brand distribution network
• Presence in over 1,230 cities
• Rapid expansion at low investment and risk
• Main focus: share of wallet
• Owner’s loyalty

 Schutz Club – Relationship program that offers 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 network and the brands’ visibility, resulting in a strong retail footprint

Multi-brand stores

Gross Revenue - LTM (R$ million) # Stores

2,281 2,214

(3.3%) (0.2%)

Years at Arezzo Years of experience

.5 Seasoned and professional management team

2

Years at Arezzo Years of experience

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

• 20

Marco Coelho Internal Auditing

Alexandre Birman

Independent business units

José Bolonha (Coordinator) Juliana Rozenbaum (Coordinator)

.6 Corporate governance

2

Risk, Audit and Finance Committee

Committees

Strategy Committee People Committee

Members: Alexandre Birman (CEO), Anderson Birman (Chairman), Guilherme A. Ferreira, Edward Ruiz, Marco Antônio Coelho, Thiago Borges (CFO) e Fernando Caligaris (Board Secretary) Members: Alexandre Birman (CEO), Anderson Birman (Chairman) , Fabio Hering, Fernando Caligaris (Board Secretary) and Carolina Faria. Members: Alexandre Birman (CEO), Anderson Birman (Chairman) Claudia Soares, Ligia Martins, Fernando Caligaris (Board Secretary)

The 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

Carolina Faria

Fabio Hering

Rodrigo C. Galindo

Welerson Cavalieri

Juliana Rozenbaum

Claudia Soares

José Murilo Carvalho

Guilherme A. Ferreira

José Bolonha

Welerson Cavalieri (Coordinator)

| Value Drivers Update

.1 Solid growth fundamentals

3

The Company has ongoing initiatives to unlock value to shareholders

Net revenues CAGR 2007-2015 24.5%

• Guidance at 20-25 stores openings in 2016
• Strong Schutz’s sales encourages launch of webcommerce channel

for other brands

• Multibrand strategy brings strong distribution network

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
• Internal benchmarking allowing for constant identification of
• pportunities for improvement in store productivity

STORE PRODUCTIVITY

2

• Continuous focus on diluting operating expenses

PROFITABILITY

3

• Constant analysis towards improvements in logistics and distribution

PROCESS EFFICIENCY

4 1

193.8 367.1 412.1 571.5 678.9 860.3 963.0 1,052.9 1,120.6 2007 2008 2009 2010 2011 2012 2013 2014 2015

89.4% 12.3% 38.7% 18.8% 26.7% 11.9% 9.3% 6.4%

.1 2015/2016 Expansion Plan

Arezzo&Co will open between 20 and 25 stores in Brazil in 2016

3

4

469

3T15 2015

50 519 455

2014

53 508 13 17 489 48 537 20-25

2016

45 557-562

• 2

3

• 3

1 1

• 1

3

• 3

512-517

 In 2015, the Company will open 29 stores in Brazil, of which 19 are Anacapri’s  In 2016, initial guidance is 20-25 openings  Following the multichannel strategy, in 2015/16 seven owned stores are planned to be transferred to franchisees

.1 Web commerce: Entry into the channel

3

Client profile and fit to online media boosted Schutz entry into the online channel

Internet penetration is still low in Brazil1 High fit of the product to the relevant global players evidenced by e-commerce operating shoes

SCHUTZ CUSTOMER SEGMENT

Ecommerce growth in Brazil, R$ billion

+

Europe

18.7 22.5 28.8 35.8 41.3 2011 2012 2013 2014 2015

63.7% 88.2% 83.7% 67.8% 54.7% 76.1% 57.5%

.1 Web commerce: Entry into the channel

3

Client profile and fit to online media boosted Schutz entry into the online channel

Benchmarks in mature markets

15%

• % revenue is on-line
• > 1.9 MM likes per month
• n each network and

20,000 comments

• 70-80 k new followers per

month +2.6M +1.8M

19% 18%

On-line customer profile

50% Women Men 25-34 21% >35 <24 8% A/B 61% C

MOST COMMENTED MOST LIKED

SCHUTZ CUSTOMER SEGMENT

+

Strength of Schutz in social media

.1 Web commerce: Channel evolution

3

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

24 10 1 1 10 24

• R$ 1 million in 3 months
• f operation
• Beginning in Sep/2011

with soft opening

• Medium size store in

physical network

• Proof of the thesis

2011

• Dedicated operational

management within Schutz

• Internal focus on quality
• f on-line customer

service

• Prioritization of

structuring of customer service and logistics

• Still low investment in
• n-line marketing
• Great focus with

"freshness" of products available

2012

• Reaches R$24 million

revenue

• Structuring of team and

investment in on-line marketing

• Leading brand in

fashion award on Instagram

• Seal RA1000 in

customer service

• Growth and profitability

inspired structuring of the Omni project

2013

• R$44 million in revenues
• Investment in new

platform to improve shopping experience

• Unified management of
• n-line strategy
• Greater understanding
• f our

customer/BI/analytics

• Go-live of the new

platform hybris Sep/14

• Elected the seventh best

e-commerce in Brazil

• Start benchmarking with

the best in the industry

2014

• R$ 69 million in

revenues

• Anacapri go-live
• App Schutz Now
• Arezzo go-live
• Expand the scope of

service through channels

• Expand the knowledge
• f our clients

2015

.2 GTM Arezzo

3

Under GTM Arezzo the Company expects to increase the product accuracy at the stores with a new collection calendar and 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

.3 Store productivity increase

3

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

.3 Evolution of architectural design and store model

3

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

• ther 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

25 76 121 189 230 2011 2012 2013 2014 2015

CAGR 2011-2015 75% Volume (in thousands of handbags)

3

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

.4 Schutz Handbags

1 2 3

Executing product strategy Structuring supply chain Executing marketing and communication strategy

• 1. Handbags as a percentage of Schutz sell-out sales;

Handbags as a percentage of revenues¹

Key Results 24.5%

0% 5% 10% 15% 20% 25% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

.4 Schutz Handbags

3

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

• Exploring luxury goods code
• Adjusting product mix to different
• ccasions of use
• Segmenting product mix by label

and price range (Premium, Mainstream, Pop&Fun)

• Building mix by distribution

channel

• Increasing quality and perceived

value of the products

O / F MB CHANNEL HANDBAGS

✔ ✔ ✔ ✔

Product strategy

Product line segmentation enables reaching different audiences in different channels, with the proper branding strategy and meeting clients’ desires

3

Focus on supply chain helped to increase perceived quality and desire for the product

.4 Schutz Handbags

1 2 3

Focus on minutious product development Product mix optimization with a reduction in the number of SKUs Local development of sourcing base

Supply chain strategy

3

Communication and marketing strategy consists in replicating the success reached in footwear based on the pillars product, desire and store

.4 Schutz Handbags

Impact

Bloggers and celebrity endorsement Strategy to create iconic models Exclusive windows Social media Press and spontaneous media

Communication and marketing strategy

Key takeaways

Undisputable category leader

1

Significant growth potential

2

Brands of reference

3

Scalable platform with operating leverage

5

Efficient and market oriented supply chain

4

High return on invested capital

6

3

| Market Overview and | Sourcing and Industry Characteristics

.1 Social upward mobility driving internal consumption

4

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

2003 70 (36%) 54 (27%) 96 (55%) +14 mi

+49 mi

2014E 2011

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

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

D/E

C

B

A

Apparel and Footwear

Footwear and apparel have the largest growth potential

Brazil experiences an accelerated process of social upward migration...

(Millions of people)

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

.2 Brazilian footwear market overview

4

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

Arezzo&Co’s market share1

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

Total footwear market (R$ bn)

CAGR (03-14E): +10% 30% 40% 15% 15%

Footwear consumption 2014

9% 39% 43% 8%

Social Class

Men Children Women Class A Classes D/E Class C Sports Class B

Women footwear Total footwear market

2014E

16.8 43.4

4% 7% 8% 9% 10% 11% 11% 12% 2007 2008 2009 2010 2011 2012 2013 2014E

.3 Brazilian handbags market overview

4

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

Share of handbags and shoes

 Opportunity to consolidate handbag leading position

Total handbags market (R$ bn)

Women handbags Total handbags

2014E

CAGR (03-14E): +10.5%

4.4 5.6 Total addressable market (R$ bn)

80% 20% Footwear Handbags

21.6¹

20% 50-60% 17% 12% 14%

Pairs (millions) Production World share China 12,597 62.4% Índia 2,060 10.2% Brazil 900 4.4% Vietnam 760 3,8% Indonesia 658 3.3% Pakistan 292 1.4%

Brazil is the third largest 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 3,279 15.2% USA 2,285 13.4% India 2,260 11.7% Brazil 787 4,5% Japan 690 4.0% Indonesia 532 3.6%

4

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

• ffering

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

• wn design and mostly local brand

Manufacturer with

• wn design and global brand

Global Brands

Value added

+

• 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

.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: IEMI 2013 / ASSINTECAL / FAO / AICSUL.

 Brazil is the world’s third largest footwear producer  The world’s largest cattle: 13% of the market  RS: One 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) 900 353 Production (million pairs) Jobs (thousands) 372 190 Production (million pairs) Jobs (thousands) 234 120

BRAZIL SOUTHERN REGION VALE DOS SINOS

Vale dos Sinos: 26% of Brazilian footwear production

4

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

.7 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

SKU MODEL CONSTRUCTION 10% 35% 70%

Reuse from collection to collection:

| Financial Highlights

05

146.0 149.4 58.1 59.9 66.1 60.6 12.5 24.5 283.7 295.1 1Q15 1Q16 Franchise Owned Stores Multi-brand Web Commerce Others¹

In 1Q16, monobrand stores (franchises, owned stores and web commerce) sales increased 8.0%, with web commerce being a highlight, which sales grew 96.1% this quarter.

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

SSS Sell-out (Owned Stores + franchises) 0.6% (4.0%) SSS Sell-in (franchises) (4.3%) (1.4%) SSS Sell-out (Owned Stores + web + franchises) 2.2% (3.7%)

1Q15 1Q16 2.3% 4.0% 3.2% 96.1% (8.3%)

.1 Operational and financial highlights

5

5

.2 Operational and financial highlights

Key highlights

In 1Q16 increased 6.6% growth in sales area over the last 12 months, excluding outlets. Sales area increased 4.5% in 1Q16. Gross revenue reached R$367.0 million in the 4Q15, a decrease of 2.3% over 4Q14.

Number of Stores (R$ mln) and Total Area (m2- ‘000)

CAGR 07-2015: 24.5%

Net Revenues (R$ mln)

Area CAGR 07- 1Q16 LTM: 15.6%

• 100

400 +61 20.6% 461 +53 11.2% 4.5% 514 +29 543

193.8 367.1 412.1 571.5 678.9 860.3 963.0 1,052.9 1,120.6 2007 2008 2009 2010 2011 2012 2013 2014 2015

89.4% 12.3% 38.7% 18.8% 26.7% 11.9% 9.3% 6.4%

5

.3 Operational and financial highlights

Gross Profit (R$ million) EBITDA (R$ million) Net Income (R$ million) Gross revenues (R$ million)

283.7 295.1 16.8 35.2 300.4 330.2 1Q15 1Q16 Domestic Market External Market 109.9% 9.9% 4.0%

Gross Profit Gross Margin 16.5% 40.6% 43.4%

EBITDA EBITDA Margin (6.3%) 11.9% 10.2%

Net Margin Net Income 7.7% 5.7% (19.1%)

Summary of investments

1Q15 1Q16

Δ 15 x 16 (%) Total CAPEX 10,292 7,904 (23.2%) Stores - expansion and refurbishing 468 4,183 794.3% Corporate 7,496 1,873 (75.0%) Other 2,328 1,848 (20.6%)

5

.4 Operational and financial highlights

Cash Conversion Cycle (R$ thousand) Cash Flow From Operating Activities (R$ thousand) Capex (R$ thousand)

¹ Days of COGS ² Days of Net Revenues

Operational Indicators

1Q15 1Q16 Δ 15 x 16

• 3,019

Cor

110 313,472 100 305,015

• 10

Inventory¹ 71 121,079 69 122,611

• 2

Accounts Receivable² 101 296,838 94 293,052

• 7

(-) Accounts Payable¹ 61 104,445 62 110,648 1

5

.5 Operational and financial highlights

Indebtedness (R$ thousand)

Indebtedness totaled R$249.2 million in 1Q16 versus R$ 210.1 million in 1Q15 Long-term debt relevance stood at 30.2% in 1Q16 versus 33.0% in 1Q15 Indebtedness policy remained conservative, with low weighted-average cost of Company's total debt 1Q15 4Q15 1Q16

Cash 210,149 225,762 249,158 Total debt 98,138 123,153 114,349 Short term 65,718 85,336 79,799 % total debt 67.0% 69.3% 69.8% Long-term 32,420 37,817 34,550 % total debt 33.0% 30.7% 30.2% Net debt (112,011) (102,609) (134,809)

• EBITDA LTM

162,122 165,496 163,728 Net debt/EBITDA LTM

• 0.7x
• 0.6x
• 0.8x

Cash position and Indebtedness

Appendix

.1 Key financial indicators

A

1Q15 Part% 1Q16 Part% Δ (%) 15 x 16

Total Gross Revenue 300,444 330,236 9.9% Exports market 16,760 5.6% 35,176 10.7% 109.9% Domestic market 283,684 94.4% 295,060 89.3% 4.0% By brand Arezzo 166,448 58.7% 175,651 59.5% 5.5% Schutz 99,389 35.0% 94,251 31.9% (5.2%) Anacapri 15,885 5.6% 22,577 7.7% 42.1% Others¹ 1,962 0.7% 2,581 0.9% 31.5% By channel Franchises 146,017 51.5% 149,431 50.6% 2.3% Multibrand 66,057 23.3% 60,575 20.5% (8.3%) Owned Stores 58,053 20.5% 59,923 20.3% 3.2% Web Commerce 12,489 4.4% 24,487 8.3% 96.1% Others² 1,068 0.4% 644 0.2% (39.7%)

Gross Revenue

.2 History – Franchises and Owned Stores

A

1Q15 2Q15 3Q15 4Q15 1Q16

Sales area 1,3 - Total (m²) 35,735 35,235 36,053 37,342 37,296 Sales area - franchises (m²) 28,337 28,744 29,649 31,087 31,033 Sales area - ow ned stores² (m²) 7,398 6,491 6,404 6,255 6,264 Total number of domestic stores 508 519 519 537 536 # of franchises 455 469 469 489 488 Arezzo 356 360 360 367 366 Schutz 46 48 48 52 52 Anacapri 53 61 61 70 70 # of owned stores 53 50 50 48 48 Arezzo 19 16 16 15 15 Schutz 28 28 28 26 26 Alexandre Birman 2 2 2 2 2 Anacapri 4 4 4 4 4 Fiever 1 1 Total number of international stor 6 6 6 6 7 # of franchises 5 5 5 5 5 # of owned stores 1 1 1 1 2

History of Stores

.3 Balance Sheet - IFRS

A

1Q15 4Q15 1Q16

1Q15 4Q15 1Q16

• 2,120
• 5,502
• 3,420

.4 Income Statement - IFRS

A

Income statement - IFRS

1Q15 1Q16 D %

Net operating revenue 236,242 257,547 9.0% Cost of goods sold (140,342) (145,828) 3.9% Gross profit 95,900 111,719 16.5% Operating income (expenses): (73,573) (91,648) 24.6% Selling (54,966) (69,660) 26.7% Administrative and general expenses (17,794) (21,666) 21.8% Other operating income net (813) (322)

• 60.4%

Income before financial result 22,327 20,071

• 10.1%

Financial income 8,023 3,403

• 57.6%

Income before income taxes 30,350 23,474

• 22.7%

Income tax and social contribution (12,207) (8,795)

• 28.0%

Current (14,237) (9,497)

• 33.3%

Deferred 2,030 702

• 65.4%

Net income for period 18,143 14,679

• 19.1%

.5 Cash Flow Statement - IFRS

A

• 24,187

IR Contacts

 Thiago Borges  Fernando Caligaris

Phone: +55 11 2132-4300 ri@arezzoco.com.br www.arezzoco.com.br

CFO and IR Officer IR Manager

 Leandro Vieira

IR Analyst

 Lucas Pontes

IR Analyst