| Apresentao do Roadshow As of September 2015 October 2015 1 - - PowerPoint PPT Presentation

SLIDE 1

| Apresentação do Roadshow

1

As of September 2015

October 2015

SLIDE 2

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

SLIDE 3

| Company overview

SLIDE 4

.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

4

SLIDE 5

.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 3Q15. 2. Refers to the Brazilian women footwear market (source: Euromonitor, IBGE and Company estimates). Estimated for 2014.

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

10.6 million pairs of shoes (1) 931 thousand handbags (1) 2,787 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 12 to 15 launches per year 91% outsourced production ROIC of 19.8% in 3Q15 2,124 employees Net revenues CAGR: 25.5% (2007- 3Q15¹) Net Profit CAGR: 27.8% (2007- 3Q151) Increased operating leverage

SLIDE 6

• 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

Merger

Commercial operations centralized in São Paulo

Strategic Partnership (November 2007)

Industry Reference Foundation and structuring Industrial Era Corporate Era Retail Era 2011 – 2015

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

SLIDE 7

Shareholder structure1

.4 Shareholder structure

Notes: 1. Arezzo&Co capital stock is composed of 88,735,476 common shares, all nominative, book-entry shares with no par value. 2. Including Stock Option Plan – Arezzo&Co’s executives Shareholder structure as of October 2015. 7

52.2% 47.2%

Birman family Float

1

Management²

5.2%

Others

21.4%

Aberdeen

15.5%

HSBC Dynamo

5.1% 0.6%

SLIDE 8 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. In case of doubt, 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

SLIDE 9

.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 (3Q15); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports 2. % of each brand gross revenues (2014) does not include other revenues (not generated by any of the 4 brands) 3. Gross revenues in 3Q15 (LTM), including external market; does not include other revenues (not generated by any of the 4 brands) 4. % of Company’s total gross revenues in 3Q15

Trendy New Easy to wear Eclectic Fashion Up to date Bold Provocative 16 - 60 years old 18 - 40 years old

R$ 330.00/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 Women target market Sales Volume3 % Gross Revenues4 Retail price point Foundation

1972 1995 2008 2009

MB O O F MB

R$ 189.00/pair

O F MB Distribution channel1

POS 1 % gross rev.2

EX EX EX 8 2 17 365 29 48 1,376 73% 11% 14% 15% 35% 38% 32 1% 73 12% 26 19% 3% 68% 4 56 10 42% 38% 19% 1% O F MB EX

R$ 779.6 million R$ 544.0 million R$ 86.9 million R$ 22.1 million 54.0 % 37.7% 6.4% 1.6%

1,177 1,038

SLIDE 10

.7 Multiple distribution channels

1

10

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

Gross Revenues per Channel 51 owned stores of which 11 flagship stores About 1,233 cities and 2,262 multi-brands 469 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

Notes: 1. LTM 3Q15 2. Also includes other revenues in the domestic market

46% 24% 22% 8% 100% 660 347 320 1162 1,443

SLIDE 11

| Business model

SLIDE 12

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

SLIDE 13

.1 Ability to Innovate

We produce 12 to 15 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

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

SLIDE 14

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

.2 Broad media plan

2

14

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 1350 exhibition 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 exhibition on Cable TV + 4 million impact

* Source: Indexsocial/ Agência Espalhe, 2013

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

SLIDE 15

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, and others)

SLIDE 16 Distinguished storefront

.2 Atmosphere of stores: differentiated concepts for each brand

2

16 Vídeo Wall Closet Essentials Niches and lighting

• Jackets and accessories
• Campaigns and marketing actions
• Preeminence for products
• Differentiated products
• Display of a large variety of

products

• Inventory at the sales area: lower

necessity of space 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 Iguatemi Faria Lima - SP Prateleiras, Nichos e Estantes suspensas

Visual merchandising:

• Window related to the brand’s “ZZ”

symbol

• To increase in 50% the number of

models exposed

• Products highlighted in the center
• f the stores
• Lights that highlighting the product
• A better distribution of the furniture
• ffers more comfort for clients

SLIDE 17

.3 Large distribution network and scale of store chain

2

17

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

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

365 franchises + 16 owned stores(i) + 1.177 multi-brand clients

(i) 6 discount outlet

48 franchises + 29 owned stores(ii) + 1,376 multi-brand clients

(ii)2 discount outlet

Points of sale (3Q15)

TOTAL 61 franchises 4 owned stores 1.060 multi-brand clients 2 owned store + 7 multi-brand clients

474 franchises + 51 owned stores + 2,262 multi-brand clients5 =2,787 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. Domestic market only

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

SLIDE 18

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

18

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 1.1 million 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

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

1 2 3 4

9% 91%

Arezzo&Co owned factory Others

SLIDE 19

.4 ... sold through owned stores…

Capturing value from the network 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
• 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$3.0 mln R$5.9 mln

Owned Franchise

Annual Average Sales per Store 2014

Total sales area and # of owned stores (m2)

Arezzo – Oscar Freire/ SP Schutz – Morumbi/ SP

2,120 3,782 4,585 5,401 6,009 5,295 847 904 1,212 1,185 1,166 1,109 29 45 57 55 54 51

• 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 Set/15 Standar stores Flagship # Owned stores

SLIDE 20

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

20

.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

SLIDE 21

• 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

42% 13% 30% 15%

.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)

Notes: 2014 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

SLIDE 22

294 321 3Q14 3Q15

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

2

22

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

• Greater brand distribution network
• Presence in over 1,216 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

Notes: 1. Domestic market only

Multi-brand stores

LTM Gross Revenue (R$ million) # Stores

2,178 2,268

9% 3.9%

SLIDE 23

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 Silvia Machado Alexandre Birman Fabiola Guimarães Schutz Yumi Chibusa Anacapri Thiago Borges CFO and Investor Relations Officer 18

• 18

15 8 15 5 10 5 13 Schutz Fabiola Guimarães Cassiano Lemos Supply Chain/ Sourcing Cisso Klaus CFO Thiago Borges Technology/ Logistics Kurt Richter

Marco Coelho Internal Auditing

Arezzo

Alexandre Birman

Anacapri Yumi Chibusa Alexandre Birman Milena Penteado 23 Name Title Kurt Ritchter Officer – CTO and Logistics Officer 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

David Python Officer – Commercial 4 10 People & Mgmt Open US Operations Fernando Porto Fernando Porto Officer – US Operations 3 14 Silvia Machado Planning Milena Penteado Alexandre Birman 5 15

SLIDE 24

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), 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

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

Welerson Cavalieri (Coordinator)

SLIDE 25

| Value Drivers Update

SLIDE 26

.1 Solid growth fundamentals

3

26

The Company has ongoing initiatives to unlock value to shareholders

Net revenues CAGR 2007-3T15 LTM 25.5%

• Guidance at 30-40 stores openings in 2015
• 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 2007 2008 2009 2010 2011 2012 2013 2014 89.4% 12.3% 38.7% 18.8% 26.7% 11.9% 9.3%

SLIDE 27

.1 2014/2015 Expansion Plan

Since IPO for 3 consecutive years, stores opening guidance was achieved; 2015 expansion guidance at 30-40 new stores with 5% growth in sales area

3

• 58 stores opened in 2014
• In 2015, the Company will

increase its pace of openings with a range of 30-40 planned stores

• Due to multichannel strategy, in

2015 the Company plans to convert 5 owned stores into franchises

27 # Owned stores # Franchises

2014

403

2013

55 458 59 462 54 516 30

2015

497 49 546

+13%

+6%

• 1

5

• 5

# Pass-throughs

SLIDE 28 28

.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 very low in Brazil High fit of the product to the relevant global players evidenced by ecommerce operating shoes

SCHUTZ CUSTOMER SEGMENT

Ecommerce growth in Brazil, R$ billion

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2,8 3,9 5,3 7,3 9,8 14,8 18,7 22,5 28,8 34,6 1º Appliances 15% 2º Informatics 12% 3º Electronics 8% 4º Health care 7% 5º Fashion & Accessories 7% 2011 1º Appliances 12% 2º Fashion & Accessories 12% 3º Health and care 12% 4º Informatics 9% 5º Home and decoration 8% 2012 1º Fashion & Accessories 19% 2º Health care 18% 3º Appliances 10% 4º Books and magazines 9% 5º Informatics 7% 2013

+

46% 78% 70% 66% 60% 59% 57% 41% Europe Asia

SLIDE 29 29

.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

Source: EBIT, Morgan Stanley Research, Clipping, Ibope.

15%

• % revenue is on-line
• > 1.7 MM likes per month
• n each network and

30,000 comments

• 60-80 k new followers per

month +1.2M +1.6M

19% 5% 18%

On-line customer profile

50.1% Women Men 25

• 34

30% >35 18

• 24

20% A/B 54% C

MOST COMMENTED MOST LIKED

SCHUTZ CUSTOMER SEGMENT

+

Strength of Schutz in social media

SLIDE 30 30

.1 Web commerce: Channel evolution

3

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

> 40 24 10 1 1 10 24 > 40

• R$ 1 million in 3 months of
• peration
• 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 of on-

line customer service

• Prioritization of structuring of

customer service and logistics

• Still low investment in on-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 on-line

strategy

• Greater understanding of 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

Source: Ibope Ecommerce, Clipping

SLIDE 31 31

.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

SLIDE 32

.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

SLIDE 33

.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

• 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

SLIDE 34

20 12 25 76 121 189 2009 2010 2011 2012 2013 2014

34

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

NOTES: 1) Handbags as a percentage of Schutz revenues;

Handbags as a percentage of revenues¹

Key Results

Volume (in thousands of handbags)

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

SLIDE 35 35

.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

R$790 - R$1,100* R$350 - R$490*

O / F MB CHANNEL HANDBAGS

✔ ✔ ✔ ✔

R$490 - R$790* NOTE: O = OWNED STORES; F = FRANCHISES; MB =MULTIBRAND. * Suggested Retail Price.

Product strategy

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

SLIDE 36 36

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

SLIDE 37 37

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

SLIDE 38

Key takeaways

38

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

SLIDE 39

| Market Overview and | Sourcing and Industry Characteristics

SLIDE 40

.1 Social upward mobility driving internal consumption

4

40

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

SLIDE 41 41

.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

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)

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

SLIDE 42

.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

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

42

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

Brasil International benchmarks¹ Arezzo Schutz Arezzo&Co Note: 1) Handbags as a percentage of revenues of Coach and Michael Kors. Note: 1) 2014E..

SLIDE 43

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%

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: IEMI 2013, Footwear News, Company estimates 43 Note: Estimate based on Arezzo’s brand products costs DDP: delivered duty paid FOB: free on board

SLIDE 44

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

 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

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

Source: BNDES, Company estimates 44

SLIDE 45

.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

45

SLIDE 46

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

46

SKU MODEL CONSTRUCTION 10% 35% 70%

Reuse from collection to collection:

SLIDE 47

| Financial Highlights

05

SLIDE 48

.1 Operational and financial highlights

5

48

In 3Q15, the highlight for the Owned Stores channel, presenting a growth of 15.7%, leveraged by the web commerce growth.

SSS Sell-out (owned stores + franchises)

8.0%

• 0.4%

SSS Sell-in (franchises)

• 7.2%
• 8.1%

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

10.4%

• 6.8%

6.1% 2.7% 7.5%

• 2.2%
• 6.2%
• 1.3%
• 3.0%

5.9% 3.1%

• 0.2%

8.9% 5.4% 14.6% 15.7%

1) Others: Decreasing of 81.1% in 3Q15 and 20.4% in 9M15.

180.9 175.5 477.9 476.8 75.4 87.3 214.3 245.5 96.8 102.5 236.1 257.2 1.3 0.2 3.3 2.6

354.5 365.5 931.6 982.1

3Q14 3Q15 9M14 9M15 Franchise Owned Stores Multi-brand Others¹

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

SLIDE 49

324 373 427 474 53 56 52 51 24.5 29.0 32.9 36.1

• 100

200 300 400 500 600 700

3Q12 3Q13 3Q14 3Q15 Franchises Owned Stores Area 193.8 367.1 412.1 571.5 678.9 860.3 963.0 1,052.9 2007 2008 2009 2010 2011 2012 2013 2014

5

49

.2 Operational and financial highlights

Key highlights

In 2Q15 increased 8.8% growth in sales area over the last 12 months, excluding outlets. Sales area increased 8.5% in the LTM. In 2Q15, gross revenue was R$363.5 million, up by 11.0% against 1Q15.

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

CAGR 07-2014: 27.4%

Net Revenues (R$ mln)

Area CAGR 07- 3Q15LTM: 15.6%

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

13.3% 9.7% 18.2% 429 479 525

+52 +50 +46

377

SLIDE 50

51.4 49.7 121.0 120.8

3Q14 3Q15 9M14 9M15

5

.3 Operational and financial highlights

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

124.9 133.0 329.9 349.5 3Q14 3Q15 9M14 9M15

6.5% 5.9% 42.2% 42.2% 43.2% 41.8%

• 3.4%
• 0.2%

17.4% 15.8% 15.9% 14.4%

33.6 36.1 82.7 86.2 3Q14 3Q15 9M14 9M15

7.4% 4.2% 11.3% 11.5% 10.8% 10.3%

354.5 365.5 931.6 982.1 24.5 38.2 50.8 85.5 379.0 403.7 982.4 1,067.6 3Q14 3Q15 9M14 9M15 Domestic Market External Market

3.1% 55.7% 6.5% 5.4% 8.7% 68.5%

SLIDE 51 51

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

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

119 310,918 116 344,997

• 3

Inventory¹ 73 115,835 67 121,038

• 6

Accounts Receivable² 100 281,055 106 325,702 5 (-) Accounts Payable¹ 54 85,972 56 101,743 2

Cash Conversion Cycle 3Q14 3Q15 Change (in days)

Summary of investments 3Q14 3Q15 Change. (%) 9M14 9M15 Change. (%) Total capex 12,325 4,680

• 62.0%

36,497 20,763

• 43.1%

Stores - expansion and refu 1,347 1,158

• 14.0%

7,063 3,197

• 54.7%

Corporate 8,877 3,241

• 63.5%

24,991 14,820

• 40.7%

Other 2,101 281

• 86.7%

4,443 2,746

• 38.2%

Operating Indicators 3Q14 3Q15 Growth or spread%

# of pairs sold ('000) 2,979 2,926

• 1.8%

# of handbags sold ('000) 233 247 6.0% # of employees 2,065 2,124 2.9% # of stores* 479 525 46 Owned Stores 52 51

• 1

Franchises 427 474 47 Outsourcing (as % of total production) 91.0% 91.0% 0.0 p.p SSS2 Sell-in (franchises)

• 0.4%
• 8.1%
• 7.7 p.p

SSS2 Sell-out (owned stores + franchises) 8.0%

• 7.2%
• 15.2 p.p

SSS2 Sell-out (owned stores + web + franchise 10.4%

• 6.8%
• 17.2 p.p

Operating Cash Flow 3Q14 3Q15 Change in R$ Change in R$ 9M14 9M15 Change in % Change in % 51,815 53,545 1,730 3.3% 121,845 122,806 961 0.8% 3,293 6,121 2,828 85.9% 9,599 18,026 8,427 87.8% Other 1,249 1,169 (80)

• 6.4%

(181) (17) 164

• 90.6%

(9,957) (46,494) (36,537) 366.9% (21,610) (74,957) (53,347) 246.9% (45,337) (50,216) (4,879) 10.8% (33,645) (63,630) (29,985) 89.1% Inventories 4,666 (5,839) (10,505) n/a (31,269) (25,442) 5,827

• 18.6%

Suppliers 28,843 15,857 (12,986)

• 45.0%

51,113 31,428 (19,685)

• 38.5%

1,871 (6,296) (8,167) n/a (7,809) (17,313) (9,504) 121.7% (12,538) (9,733) 2,805

• 22.4%

(33,080) (23,861) 9,219

• 27.9%

33,862 4,608 (29,254)

• 86.4%

76,573 41,997 (34,576)

• 45.2%

Income before income tax and social contribution Depreciation and amortization Change in other noncurrent and current assets and liabilities Payment of income tax and social contribution Net cash flow generated by

• perational activities

Decrease (increase) in current assets / liabilities Trade accounts receivables

SLIDE 52 52

5

.5 Operational and financial highlights

Indebtedness (R$ thousand)

Indebtedness totaled R$127.0 million in 3Q15 versus R$ 86.5 million in 3Q14 Long-term debt relevance stood at 22.5% in 3Q15 versus 29.2% in 3Q14 Indebtedness policy remained conservative, with low weighted-average cost of Company's total debt

3T14 2T15 3T15

Cash 175,856 176,311 193,486 Total debt 86,473 98,387 126,928 Short term 61,249 67,946 98,422 % total debt 70.8% 69.1% 77.5% Long-term 25,224 30,441 28,506 % total debt 29.2% 30.9% 22.5% Net debt (89,383) (77,924) (66,558)

• EBITDA LTM

164,586 162,820 161,091 Net debt/EBITDA LTM

• 0.5x
• 0.5x
• 0.4x

Cash position and Indebtedness

SLIDE 53 53

Appendix

SLIDE 54 54

.1 Key financial indicators

A

Key financial indicators

3Q14 3Q15 Growth or spread% 9M14 9M15 Growth or spread%

Net revenues 296,099 315,068 6.4% 763,272 836,760 9.6% COGS (171,199) (182,053) 6.3% (433,403) (487,290) 12.4% Gross profit 124,900 133,015 6.5% 329,869 349,470 5.9% Gross margin 42.2% 42.2% 0.0 p.p. 43.2% 41.8%

• 1.4 p.p.

SG&A (76,766) (89,438) 16.5% (218,471) (246,708) 12.9% % of net revenues 25.9% 28.4% 2.5 p.p 28.6% 29.5% 0.9 p.p Selling expenses (55,418) (63,818) 15.2% (153,243) (170,592) 11.3% Ow ned stores (22,074) (27,155) 23.0% (66,936) (75,221) 12.4% Selling, logistics and supply (33,344) (36,663) 10.0% (86,307) (95,371) 10.5% General and administrative expen (18,033) (20,808) 15.4% (53,012) (57,366) 8.2% Other operating revenues (expen (22) 1,309 n/a (2,617) (724)

• 72.3%

Depreciation and amortization (3,293) (6,121) 85.9% (9,599) (18,026) 87.8% EBITDA 51,427 49,698

• 3.4%

120,997 120,788

• 0.2%

EBITDA margin 17.4% 15.8%

• 1.6 p.p.

15.9% 14.4%

• 1.5 p.p.

Net income 33,601 36,082 7.4% 82,667 86,163 4.2% Net margin 11.3% 11.5% 0.2 p.p. 10.8% 10.3%

• 0.5 p.p.

Working capital¹ - as % of revenues 29.7% 30.3% 0.6 p.p 29.7% 30.3% 0.6 p.p Invested capital² - as % of revenues 42.4% 44.4% 2.0 p.p. 42.4% 44.4% 2.0 p.p.

In

Total debt 86,473 126,928 46.8% 86,473 126,928 46.8% Net debt³ (89,383) (66,558)

• 25.5% (89,383) (66,558)
• 25.5%

Net debt/EBITDA LTM

• 0.5x
• 0.4x

n/a

• 0.5x
• 0.4x

n/a

D

SLIDE 55 55

.2 History – Franchises and Owned Stores

A

• 1. Includes areas in square meters of international stores
• 2. Includes 8 outlet-type stores with a total area of 2,199 m²

3.Includes areas in square meters of stores expansion

History of Stores 3Q14 4Q14 1Q15 2Q15 3Q15

Sales area 1,3 - Total (m²) 32,859 35,641 35,735 35,235 36,053 Sales area - franchises (m²) 26,472 28,466 28,337 28,744 29,649 Sales area - Ow ned stores 2 (m²) 6,387 7,175 7,398 6,491 6,404 Total number of domestic stores 472 508 508 511 519 # of franchises 421 455 455 460 469 Arezzo 344 359 356 356 360 Schutz 43 46 46 48 48 Anacapri 34 50 53 56 61 # of owned stores 51 53 53 51 50 Arezzo 17 19 19 17 16 Schutz 26 27 28 28 28 Alexandre Birman 2 2 2 2 2 Anacapri 6 5 4 4 4 Total number of international store 7 8 6 6 6 # of franchises 6 7 5 5 5 # of owned stores 1 1 1 1 1

SLIDE 56 56

.4 Balance Sheet - IFRS

A

(R$ thousand)

(R$ thousand) Assets 3Q14 2Q15 3Q15 Current assets 611,196 628,169 683,153 Cash and cash equivalents 6,579 5,025 4,788 Financial Investments 169,277 171,286 188,698 Trade accounts receivables 281,055 291,327 325,702 Inventory 115,835 117,496 121,038 Taxes recoverable 20,346 19,725 16,608 Other credits 18,104 23,310 26,319 Non-current assets 172,174 184,224 199,972 Long-term receivables 15,937 16,967 31,696 Financial Investments 30 71 90 Trade accounts receivables 13,807 Deferred income and social contribution 7,830 7,370 8,420 Other credits 8,077 9,526 9,379 Property, plant and equipment 73,524 74,982 77,227 Intangible assets 82,713 92,275 91,049 Total Assets 783,370 812,393 883,125 Liabilities 3Q14 2Q15 3Q15 Current liabilities 193,602 198,527 246,250 Loans and financing 61,249 67,946 98,422 Suppliers 85,972 85,886 101,743 Other liabilities 46,381 44,695 46,085 Non-current liabilities 32,420 37,499 36,059 Loans and financing 25,224 30,441 28,506 Related parties 879 1,107 1,420 Other liabilities 6,317 5,951 6,133 Equity 557,348 576,367 600,816 Capital 220,086 260,197 261,247 Capital reserve 69,727 33,154 34,159 Income reserves 208,174 250,120 250,120 Adjustments to equity valuation

• 1,632
• 5,831

Profit 59,361 34,528 61,121 Total liabilities and shareholders' equity 783,370 812,393 883,125

SLIDE 57 57

.5 Income Statement - IFRS

A

Income statement - IFRS 3Q14 3Q15 Growth % 9M14 9M15 Growth % Net operating revenue 296,099 315,068 6.4% 763,272 836,760 9.6% Cost of goods sold (171,199) (182,053) 6.3% (433,403) (487,290) 12.4% Gross profit 124,900 133,015 6.5% 329,869 349,470 5.9% Operating income (expenses): (76,766) (89,438) 16.5% (218,471) (246,708) 12.9% Selling (57,137) (68,039) 19.1% (158,368) (182,932) 15.5% Administrative and general expenses (19,607) (22,708) 15.8% (57,486) (63,052) 9.7% Other operating income net (22) 1,309 n/a (2,617) (724)

• 72.3%

Income before financial result 48,134 43,577

• 9.5%

111,398 102,762

• 7.8%

Financial income 3,681 9,968 170.8% 10,447 20,044 91.9% Income before income taxes 51,815 53,545 3.3% 121,845 122,806 0.8% Income tax and social contribution (18,214) (17,463)

• 4.1%

(39,178) (36,643)

• 6.5%

Current (19,350) (18,513)

• 4.3%

(41,494) (40,939)

• 1.3%

Deferred 1,136 1,050

• 7.6%

2,316 4,296 85.5% Net income for period 33,601 36,082 7.4% 82,667 86,163 4.2%

SLIDE 58 58

.6 Cash Flow Statement - IFRS

A

Statement of cash flow 3Q14 3Q15 9M14 9M15 Operating activities Income before income tax and social contribution 51,815 53,545 121,845 122,806 4,542 7,290 9,418 18,009 Depreciation and amortization 3,293 6,121 9,599 18,026 Income from financial investments (3,641) (5,313) (8,836) (14,192) Interest and exchange rate 4,122 1,715 2,369 5,759 Other 768 4,767 6,286 8,416 Decrease (increase) in assets Trade accounts receivables (45,337) (50,216) (33,645) (63,630) Inventory 4,666 (5,839) (31,269) (25,442) Recoverable taxes (176) (6,678) (1,158) 1,339 Variation other current assets (951) (1,575) (799) (12,814) Judicial deposits (459) (360) (195) (970) Decrease (increase) in liabilities Suppliers 28,843 15,857 51,113 31,428 Labor liabilities 4,766 3,518 6,401 4,727 Fiscal and social liabilities (2,344) 3,625 (9,313) (4,604) Variation in other liabilities 1,035 (4,826) (2,745) (4,991) Payment of income tax and social contribution (12,538) (9,733) (33,080) (23,861) 33,862 4,608 76,573 41,997 Net cash used in investing activities (31,321) (15,949) (20,369) (3,056) 1,498 19,769 (14,314) 14,702 Net cash used in financing activities (10,017) (8,126) (49,097) (58,870) Foreign exchange effect on cash and cash equivalents

• (539)
• (816)

Increase (decrease) in cash and cash equivalents (5,978) (237) (7,207) (6,043) Cash and cash equivalents Cash and cash equivalents - Initial balance 12,557 5,025 13,786 10,831 Cash and cash equivalents - Closing balance 6,579 4,788 6,579 4,788 Increase (decrease) in cash and cash equivalents (5,978) (237) (7,207) (6,043) Adjustments to reconcile net income with cash from

• perational activities

Net cash flow from operating activities Net cash used in financing activities - third parties

SLIDE 59

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

 Leandro M. V. Vieira

IR Analyst