Institutional presentation 1_q13

| Apresentação do Roadshow
1
As of March 31, 2012
April, 2013

Disclaimer
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

.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

.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 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
9.4 million pairs of shoes(1)
588 thousand handbags(1)
2,841 points of sale
12% market share(2)
More than 40 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 33.1% in 1Q13
2,105 employees
Net revenues CAGR:
34.0% (2007- 1Q13¹)
Net Profit CAGR: 41.0%
(2007- 1Q13¹)
Increased operating
leverage
Notes:
1. LTM as of March, 2013.
2. Refers to the Brazilian women footwear market (source: Euromonitor, IBGE and Company estimates) . Estimated for 2011.
5

 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 ReferenceFoundation and structuring Industrial Era Corporate EraRetail Era
2012 and 201370’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)

.4 Shareholder structure1
Notes:
1. Arezzo&Co capital stock is composed of 88,587,469 common shares, all nominative, book-entry shares with no par value.
2. Including Stock Option Plan – Arezzo&Co’s executives
Shareholder structure as of March, 2013.
7
Post-offering
52.4% 47.4%
Birman family Others
1
Management²
0.2%
Float
47.1%

8
.5 Culture & Management:
Arezzo towards 2154
Code of Ethics
 “Our behavior is a positive example for all activities and internal or external interactions; and we treat everyone with respect, equality and cooperation”
 “We properly protect the confidentiality of our information, documents, trademarks, intellectual property and cherish the proper use of our assets”
 “The Arezzo Group’s interests prevail over personal or third party interests and guide any decision-making in the company”
 “We act with fairness in our relationships with suppliers, franchisees and customers, eliminating any situation that may generate expectations of bias in
the context of receipt of gifts and invitations”
 “Our suppliers are evaluated and contracted based on clear criteria and in line with our ethical standards and conduct”
 “We are committed to ensure a responsible environmental stewardship by ensuring and establishing high standards for the purposes of protecting the
environment and conserving its resources”
 “We have a socially responsible conduct and do not use any resources for unethical or illegal purposes, or that violates local or international laws”
 “It is our duty to report any breach of the Code of Ethics irrespective of the public involved”
2010
2154
Meritocratic culture based on best practices makes Arezzo a
company prepared to reach 2154
1

Notes:
1. Points of sales (1Q13); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports – # multibrand stores
2. % of each brand gross revenues (2012 LTM)
3. 1Q13 gross revenues, does not include other revenues (not generated by the 4 brands)
4. % total (1Q13) gross revenues
.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
Fashion
Up to date
Bold
Provocative
16 - 60 years old 18 - 40 years old
R$ 285.00/pair
R$ 689.9 million R$ 394.4 million
Pop
Flat shoes
Affordable
Colorful
12 - 60 years old
R$ 99.00/pair
R$ 36. 3 million
Design
Exclusivity
Identity
Seduction
R$ 960.00/pair
R$ 4.2 million
20 - 45 years old
61.3% 35.1% 3.2% 0.4%
Brands
profile
Female
target
market
Sales
Volume3
% Gross
Revenues4
Retail price
point
Foundation 1972 1995 2008 2009
MB
7
O
2
O
19
F
320
MB
963
9
R$ 180.00/pair
O
28
F
23
MB
1,546
Distribution
channel1
POS 1
%
gross
rev.2
72% 15%12% 7% 49%36%
EX
17
1%
EX
130
8%
EX
48
49% 9% 42%
MB
865
O
8
EX
5
46% 53% 1%

.7 Multiple distribution channels
1
10
532
290
273
62²
1,157
Flexible platform through three distribution channels with
differentiated strategies, maximizing the Company's profitability
Gross Revenue Breakdown – (R$ mn)¹
Gross Revenues per Channel
57 owned stores
being 7 Flagship
stores
Reach about 1,152
cities and 2,441
multi-brands
343 franchises in
more than 160
cities
Broad distribution
in every Brazilian
state
Franchises Multi-brands Owned stores Others Total
Notes:
1. 1Q13 gross revenues
2. Considers external market and other revenues in the domestic market
46% 25% 24% 5% 100%

Management
BRANDS OF REFERENCE
Customer focus: we are at the forefront of
Brazilian women fashion and design
Multi-channelSourcing & 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

.1 Ability to Innovate
We produce 7 to 9 collections per year
2I. 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

.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
85 inserts in printed media in 170 pages in 2012 (32 million readers)
78 exhibition in fashion editorials in 1Q12
Digital communication
Presence in eletronic media and television
+750 exhibition on TV e 150 exhibition in cinema in 2012
+ 80 million impact
Demi Moore
Seasonal showroom in Los Angeles near the
Red Carpet
Season
CRM – VIP sales
In-store events – PA
Stylists Fashion Advisors
Celebrity Endorsement Marketing Events
1 mn Facebook fans: leader in
interactions
30 k monthly access to Schutz’s Blog
606k accesses to site/month
Average navigation time: 8 minutes
66 k Twitter followers : category leader
Gisele Bündchen Blake Lively

.2 Communication & marketing program
reflected in every aspect of the stores
Stores constantly modified to incorporate the concept of each new
collection, creating desire-driven purchases
2
All visual communication at stores is monitored and updated simultaneously throughout Brazil
for each new collection
Flagship storesStore layout & visual merchandising
15
POS materials (catalogs, packaging, among others)

.2 Atmosphere of stores: differentiated
concepts for each brand
2
16
Summer – Flagship Oscar Freire
Winter – Flagship Oscar Freire Video Wall
Closet Essential
Niches and lighting
 Jaquets and accessories
 Campaigns and marketing actions
 Preeminence for products
 Differentiated products
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
 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
Storage
Each theme is disposed in different niches
Acessories
Sophisticated lighting
Distinguished storefront Special collections

.3 Flexible production process…
2
17
Arezzo’s size allows for large scale purchases from each
supplier
Production speed, flexibility and scalability to ensure Arezzo&Co’s
expected growth based on asset light 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) Negotiation of raw material jointly with local suppliers
Consolidation and improvement of distribution in national
scale
Reception: 100,000 units / day
Storage: 100,000 units / day
Picking: 150,000 units / day
Replacement of milky run strategy
1
2
3
4
5
Distribution: 200,000 units / day
4
Sourcing Model
Owned factory with capacity to produce 1.1 million pairs
annually and strong relationship with Vale dos Sinos
production cluster as the outsourcing represents 89% of total
production
New Distribution Center

.3 …leveraged by a multichannel
distribution strategy…
Arezzo&Co follows a detailed process in defining the opportunity pipeline. This
multichannel distribution strategy has been consolidated throughout the Company’s
history:
18
1972 1975 1987 2000 2008 2010
2011
2012
Inauguration of the
new Anacapri store
format
Founding of the
Arezzo brand
1st Store
1st Arezzo
Franchise
Arezzo reaches
200 franchises
GTM Schutz: focus on
mono-brand stores
Flagship store
strategy for Schutz
1st Arezzo Flagship
store
2

.3 ...through owned stores…
Capturing value from the chain while developing retail know how and
brands’ visibility
2
Greater brand awareness coupled with operational efficienciesFlagship Stores
19
 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
Arezzo – Ipanema / RJ
Schutz – Iguatemi / SP
Arezzo – Cid. Jardim / SP
R$ 3,289M
R$ 5,119 M
OwnedFranchise
Annual Average
Sales per Store
2012
Total sales area and # of owned stores (sq m)
Schutz – Oscar Freire / SP
88% 91% 81%
77%
80%
78% 78%
12%
9%
19%
23%
20%
22% 22%
2007 2008 2009 2010 2011 4Q12 1Q13
Flagship
Standard store
6
10
21
29
45
50
52
57 57
1,044
1,369
2,067
2,967
4,686
5,897 5,928
# owned Stores

 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 to more than 80%
 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%
20
.3 …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
Average payback of 39 months2
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 in the sector for 7
years since 2004
(# of Franchisees by # of Franchises)
Notes: FY2012 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$ 2,330 thousand + average initial investment of R$ 600 thousand
+ working capital of R$ 414 thousand

To get to know
the profile of
consumers
To manage
performance
indicators of
both the store
and the team
To optimize
supply and
stock
management
…to sell more, have no overstock … and
achieve goals!
1 2 3
The use of technology to support the
management process...
.3 … information technology, people
management...
Information technology and people management applied to retail in order to
support improvements on the whole managing process
21
A holistic approach for sales training
teams in the various fronts of the retail
operation
Training Tools
• Product
• Fashion and trends
• Sales technique
• Store operations
• Visual merchandising
• Sales systems
• Integration New operators
• Management Training
• Sales Conventions
• Sales Incentives (motivational)
 Over R$1M invested in training in the first half of
2012
 20% retail turnover in Company Owned Stores
during the first half of 2012
2

.3 ...and of the multi-brand stores
2
Multi-brand stores
22
Multi-brand stores’ Gross Revenue¹ (R$ mn) Improved distribution and brand visibility
 Greater brand capillarity
 Presence in over 1,452 cities
 Rapid expansion at low investment and risk
 Main Focus: share of wallet
 Owner’s loyalty
 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
# Store
2,177
2,441
286
2012
60
1Q13
Gross Revenue1
(R$ mn)
234
2011 1Q12
56

.4 Large capillarity and scale of store
chain
Mono-brand store chain with high capillarity, reaching more than 160
cities and well-positioned among the retail companies
2
23
Size and average sales per mono-brand stores - 2012
Brand
Average size
(m2)
Net Revenue/ m2
(R$ 000s)
Total
Stores 1,2
67 104 399
111 64 638
1,650 3 214
1,030 2 368
234 4 206
5
320 franchises +
19 owned stores(i) +
963 multi-brand clients
(i) 4 outlets
23 franchises +
28 owned stores(ii) +
1,546 multi-brand clients
(ii)1 outlet
Points of sale (1Q13)
TOTAL
8 owned stores
2 owned store +
343 franchises6 +
57 owned stores6 +
2,441 multi-brand clients
=2,841 points of sales
Source: IBGE, Companies’ Reports; number of stores according to latest data provided by the Companies
Notes:
1. Considers only monobrand stores of Arezzo and Schutz;
2. For Hering, considers only Hering Store chain stores;
3. 2008 data;
4. Net Revenue (assuming that sales taxes and deduction = 30% of gross revenues);
5. Considers Arezzo + Schutz, except for outlets, handbags’ stores and Schutz franchise;
6. Including export market
GDP³: 18%
A&C¹: 17%
GDP³: 55%
A&C¹: 57%
GDP³: 15%
A&C¹: 15%
GDP³: 7%
A&C¹: 7%
GDP³: 5%
A&C¹: 4%
57
sq m
85
sq m
80
sq m
Points of sale – average size : new stores are increasing
network average size
2010 2011 new stores 2012 new stores

Schutz
David Python
Industrial
Cisso Klaus
Supply Chain
Marcio Jung
Financial
Thiago Borges
Strategy and IT
Kurt Richter
HR
Raquel Carneiro
Marco Coelho
Internal Auditing
Arezzo
Claudia Narciso
.5 Seasoned and professional
management team
2 Alexandre Birman
Years
at Arezzo
17
14
2
14
11
8
9
30
3
Years of
experience
17
24
10
24
32
28
47
41
13
Name
Title
Alexandre Birman
CEO
Claudia Narciso
Arezzo
David Python
Schutz
Claudia Narciso
Director – R&D
Kurt Ritchter
Director – Strategy and IT
Marcio Jung
Director – Supply Chain
Cisso Klaus
Director – Industrial
Marco Coelho
Director – Internal Auditing
Raquel Carneiro
Director – HR
Highly qualified management team
 Stock option plan for key executives
 Performance based compensation package for all
employees
 Independent business units for each brand but unified
officers (Industrial, Logistics, Financial and HR) for the
whole company
Anacapri
Yumi Chibusa
Alexandre Birman
Erica Navarro
510
Yumi Chibusa
Anacapri
09
Erica Navarro
Alexandre Birman
313
Thiago Borges
CFO and Investor Relations Office

.6 Corporate governance
Board is composed by 8 members being 4 appointed by controlling shareholders
2
Name Experience Name Experience
Title Title
Anderson Birman
Chairman of the Board
Arezzo’s founder and Chairman, with over 40 years of
experience in the industry
Alexandre Birman
Vice-Chairman of the Board
Arezzo’s CEO and founder of Schutz, with 17 years of
experience in the industry
Pedro Faria
Board Member
Tarpon’s partner since 2003, member of the Board of Directors of
Direcional Engenharia, Omega Energia Renovável, Cremer and
Comgás
Eduardo Mufarej
Board Member
Tarpon’s partner since 2004, member of the Board of Directors of
Tarpon, Omega Energia Renovável and Coteminas
José Murilo Carvalho
Board Member
President of the Attorney’s Association of Minas Gerais,
Board Member of the Brazilian Bar Association
José Bolonha
Board Member
Founder and CEO of “Ethos Desenvolvimento Humano e
Organizacional“; Board member of the Inter-American Economic
and Social Council (UN, WHO)
Guilherme A. Ferreira
Independent Board Member
CEO of Bahema Participações, board member of Pão de
Açúcar, Banco Signatura Lazard, Eternit, Tavex and Rio
Bravo Investimentos
25
Artur N. Grynbaum
Independent Board Member
CEO of Grupo Boticário (largest franchise company in Brazil) and
Vice-President at Abihpec (Brazilian Association of Industries in the
field of Personal Hygiene, Perfumes, and Cosmetics )
Ana Luiza Franco* (Coordinator)
Audit Committee
Pedro Faria (Coordinator) José Bolonha (Coordinator)
Committees
Strategy Committee People Committee
Board of directors
Members:
Jose Murilo and Guilherme A. Ferreira
Members:
Anderson Birman, Alexandre Birman, Guilherme A.
Ferreira and Arthur N. Grynbaum
Members:
Pedro Faria and Alexandre Birman
*Mrs Franco is former partner at Machado Meyer Law firm in Brazil
and currently acts as member for corporate risk and audit
committees in various relevant companies in the country.

| Market Overview and
| Sourcing and Industry Characteristics

.1 Social upward mobility driving internal
consumption
Income growth and job creation lead to rapid social upward mobility and
increasing internal consumption
3
27
2003
44 (24%)
29 (15%)
40 (20%)
16 (8%)
47 (27%)
49 (28%)
+18 mi
(2003-14E)
+47 mi
(2003-14E)
2014E2009
31 (16%)20 (11%)13 (8%)
66 (37%)
95(50%)
113 (56%)
...Resulting in a significant rise of consumer goods consumption, including Footwear and Apparel
(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$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
Class
D/E
Class
C
Class
B
Class
A
Food, Drinks and
Cigarettes
Electronics
and Furniture
Footwear and
Apparel
Prescription/OTC drugs
Hygiene and
Personal Care
5.4x
10.1x
12.6x
9.3x
11.2x
Footwear and apparel
have the largest
growth potential
3.3x
4.4x
5.4x
4.3x
5.3x
1.7x
1.9x
2.3x
1.9x
2.3x
1.0x
1.0x
1.0x
1.0x
1.0x
Class C
Class A/B
Class D
Class E
Brazil experiences an accelerated process of social upward migration...
(Millions of people)
Footwear and apparel
consumption
potential index: 4,8%

5%
8% 9%
11% 12%
2007 2008 2009 2010 2011
28
.2 Brazilian footwear market overview
3
Total footwear market (R$ bn)
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, including Company’s handbags and considering only total footwear market
37%
29%
17%
13%
4%
Others
Sports
Men
Kids
Women
footwear
Income Class
17%
44%33%
6%
Class B
Class A
Class D/E
Class C
Footwear consumption (2009)
Women footwear
Total footwear
2011
CAGR (03-11): + 7.7%
11.6
30.4

29
.3 Brazilian handbags market overview
3Arezzo&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
Total handbags market (R$ bn)
Women handbags
Total handbags
2011
CAGR (03-11): + 10.7%
3.3
4.2
Total addressable market (R$ bn)
78%
22%
Footwear
Handbags14.9
Arezzo&Co current sell out breakdown (R$ mn)
Breakdown based on Schutz and Arezzo owned stores
 Consolidated (including handbags and shoes)
market share: 10%
 Opportunity to consolidate handbag leading position
90%
10%
Calçados
Bolsas
195.9

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, minimum production and lead time to
better serve the Brazilian fast fashion demand
.4 Footwear Industry - Global Overview
and competitive advantages
30
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
Production cap. (pairs): 12,000 million
Cost (FOB): USD 16-18/pair
Cost (DDP): USD 42-45/pair
INDIA
Lead time: 160 days
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
Production cap. (pairs): 202 million
VIETNAM
Lead time: 120 to 150 days
Production cap. (pairs): 760million
3

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
31
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
Valueadded
+
-
France
Italy
Spain
Taiwan
Brazil
Mexico
China India
Thailand Vietnam Other global
suppliers
Minimum volumes
(production)
++
Indonesia
B
A
C
D
E
Industry segmentation vs. value creation:
3

.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
32
Production (million pairs)
Jobs (thousands)
819
338
Jobs (thousands)
270
138
Jobs (thousands)
216
110
BRAZIL
SOUTHERN REGION
VALE DOS SINOS
Vale dos Sinos: 26% of Brazilian
footwear production
3

South
.7 Arezzo&Co Sourcing: Competitive
Advantages
Arezzo&Co is a leader in the Brazilian leather fashion footwear sector, with great
growth potential through domestic sourcing
Source: Abicalçados, 2012 / ASSINTECAL / FAO / AICSUL./ Arezzo&Co
Women’s leather footwear production:
(million of pairs)
33
Vale dos Sinos’ component manufacturing:
 31% of Brazilian companies in the category
# of
companies
27
197
46
152
83
Outsole
complements
Upper complements
Packaging
Tools, dies/moulds
Chemicals
Segment
# of
companies
78
33
47
37
134
Upper materials
Insoles
Footwear production
chemicals
Leather production
chemicals
Heels, outsoles and
high heels
Segment
Components:
- Micro: 38%
- Small: 40%
- Medium: 44%
- Large: 60%
Tanneries: 34%
Distribution of components and tanneries per region:
Components:
- Micro: 4%
- Small: 4%
- Medium: 5%
- Large: 7%
Tanneries: 12%
Components:
- Micro: 1%
- Small: 3%
- Medium: 3%
Tanneries: 10%
Components:
- Micro: 3%
- Small: 2%
- Medium: 4%
Tanneries: 4%
Components:
- Micro: 54%
- Small: 51%
- Medium: 41%
- Large: 33%
Tanneries: 41%
Southeast Northeast Midlewest North
Women’s leather
footwear
Leather footwear
Brazilian footwear
160
237
819
Brazilian footwear
Leather footwear
Women’s leather
footwear
 Nearly 70% of Brazil’s leather footwear
production
3

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
34
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
Chemichals and textile
Components
3

.9 Understanding shoes
Spike rivet (2 parts)
Buckle (2 parts)
Anklet (8 parts)
Toecap (2 parts)
Half sole (3 parts)
Upper (11 parts)
Assembly insole
(11 parts)
High Heel (7 parts)
Heel (2 parts)
Outsole (3 parts)
SKU
MODEL
CONSTRUCTION
10%
35%
70%
Reuse from collection to collection:
Packaging (10 parts)
A non-complex shoe has 61 raw materials managed by the industrial unit. R&D
optimization ensures greater management of costs and deadlines.
35
3

.1 Solid growth fundamentals
4Key drivers of growth
37
Store productivity increase
and additional upsides
Expand distribution footprint
 Store openings in 2012 – 58 out of 58 (47 franchises and 11 owned stores)
 Same store expansion in 2011 and 2012 – 1,000 out of 1,000 sq m already expanded
 Store remodeling: Schutz new store format significantly improving sales productivity
 Same store sales in 2012 of 6.3% (sell out - owned stores) and 12.2% (sell in – franchises).
 IT integration between our franchises: about 100% of our stores network in the same platform
 Gross margin expansion: 220bps in 2012
 EBITDA Growth: 15.3% in 2012
 Net income CAGR reached 41% (2007-2012) and net margin rose by 5p.p. in the same period
Increase operational
efficiencies and margins
Schutz – Leblon
Date of expansion: Nov/11
44m²
109m²
148%
+198%
Sales Increase post-expansion 1
Before After
44m²
110m²
Schutz – Iguatemi SP
Date of renovation: Apr/12
34m²
70m²
106% 150%
Schutz – Higienópolis
Date of renovation: Aug/11
+107%
Sales Increase1
+115%
Sales Increase1
Before After Before After
¹Period studied: end of the renovation until jun/12 compared to the same period the previous year

.2 What’s new for 2013
GTM Arezzo
Expanding Footprint
Key drivers of growth
 Opening of 53 stores in 2013:
• 6 owned stores
• 47 franchises
 Web commerce: Schutz and Anacapri started marketing a wide range of models to Brazil
 Expansion of 15% in total sales area
38
 Brand assessment:
• Reevaluation of Arezzo’s current distribution and supply model in Brazil
• Solid planning of brand growth for the next years
 Consistent sales growth since 2010
 Focus on new store format
 Widening distribution platform for franchises
Anacapri
Consolidation
Schutz Handbags
 Subdivision of use categories
 Product mix by channel
 Focus on product development
2011
21.6 34.0
2012
Anacapri Gross
Revenue
(R$ million)
4

.3 2013 Expansion Plan
2013 pipeline expansion is committed to the opening of 53 new stores with
15% growth in total sales area
39
4
57
342
63
389
# Owned Store
# Franchises
+13%
6
47
2012 2013
399¹
452
1) Include 9 international stores.

| 2012 Financial Highlights
05

.1 Operational and financial highlights
5Gross Revenues per Channel (R$ mn) – Domestic Market
41
Sales increased in all channels, particularly Owned Stores, with 38.1% in 1Q13. Franchises opened
43 stores in the last twelve months and SSS sell in increased 8.3% in the quarter.
n/a
6.5%
6.7%
8.3%
97.6 116.9
44.5
61.4
55.7
60.03.5
3.3
1Q12 1Q13
19.8%
7.6%
20.0%
38.1%
201.3
241.5
Franchise Multi-brand Owned Stores Others¹
SSS Sell-out (owned stores + franchise )
SSS Sell-in (franchises)
1) Other: decreasing of 7.9% in 1Q13.

5
42
Key highlights
Strong Gross Revenue growth, especially in the Schutz brand that increased by 25.2% in 1Q13 compared to 1Q12
1Q13 ended with 400 store chain and Sales area expansion of 20.7% year-over-year
1Q13 Net Revenue increased by 24.6% year-over-year
Number of Stores (R$ mn) and Total Area (sq m - ‘000)
CAGR 07-13 (1Q13 LTM): 34,0%
Net Revenues (R$ mn)
Area CAGR 07- 13 (1Q13LTM): 17.0%
161.4
201.0 193.8
367.1
412.1
571.5
678.9
860,3
1Q12 1Q13 2007 2008 2009 2010 2011 2012
24.6%
89.4%
12.3%
38.7%
26.7%
18.8%
252 274 299
343
22
29
46
5715.8
18.0
22.1
26.7
1Q10 1Q11 1Q12 1Q13
Franquias Lojas Próprias Total m²
+55
345
400
274
303 +42
+29
20.7%
14.2%
22.6%

5Gross Profit (R$ mn) and Gross Margin (%)
43
Net Income (R$ mn) and Net Margin (%)
EBITDA (R$ mn) and EBITDA Margin (%)
67.2
89.4
1Q12 1Q13
33.1%
44.5%
41.6%
Gross Profit Gross Margin
14.7
28.6
14.0%
1Q12 1Q13
8.0
22.7
14.2%
26.3%
9.6%
5.3
10.9
1Q12 1Q13
20.0%
19.4
16.1
10.0%
Net Income Net Margin
‘

# of pairs sold ('000) 1.713 2.110 23,2%
# of handbags sold ('000) 105 141 34,3%
# of employees 1.952 2.105 7,8%
# of stores 345 400 15,9%
Owned Stores 46 57 23,9%
Franchises 299 343 14,7%
Outsorcing (as % os total production) 86,0% 90,0% 4,0 p.p
SSS Sell-in (franchises) 6,5% 8,3% 1,8 p.p.
SSS Sell-out (owned stores + franchises) n/a 6,7% n/a
Operational Indicators 1Q12 1Q13
Growth ou
spread (%)
44
5
Cash Conversion Cycle (R$ thousand)
Cash Flows From Operating Activities (R$ thousand)
Capex (R$ million)
¹ Days of COGS
² Days of Net Revenues
Total capex 17.337 11.227 -35,2%
Stores - expansion and refurbishing 13.578 2.388 -82,4%
Corporate 3.553 8.032 126,1%
Other 206 807 291,7%
Summary of investments 1Q12 1Q13 Var. (%)
#days (R$'000) #days (R$'000)
99 183.568 187 347.109 87
Inventory¹ 59 66.099 154 211.251 95
Accounts Receivable² 90 173.595 83 204.879 -7
(-) Accounts Payable¹ 50 56.126 50 69.021 0
Cash Conversion Cycle
1Q12 1Q13 Change
(in days)
Income before income tax and social contribution 15.636 28.091 79,7%
Depreciation and amortization 1.417 2.585 82,4%
Other (4.129) (818) -80,2%
Decrease (increase) in current assets / liabilities 9.975 7.899 -20,8%
Trade accounts receivables 5.994 (2.374) n/a
Inventories (8.579) (11.474) 33,7%
Suppliers 18.840 33.513 77,9%
Change in other current assets and liabilities (6.280) (11.766) 87,4%
Change in other noncurrent assets and liabilities (700) 338 n/a
Payment of income tax and social contribution - (3.663) n/a
Net cash flow generated by operational activities 22.199 34.432 55,1%
Operating Cash Flow 1Q12 1Q13 Var. (%)
Operational Indicators

45
5
Indebtedness (R$ thousand)
Indebtedness totaled R$ 87.9 million in 1Q13 versus
R$ 94.1 million in 4Q12
Long-term debt relevance stood at 53.1% in 1Q13 versus
54.5% in 4Q12
Indebtedness policy remained conservative, with low
weighted-average cost of Company's total debt
Cash and cash equivalents and financial investments166.741 202.154 213.306
Total debt 30.844 94.084 87.880
Short term 14.059 42.843 41.226
% total debt 45,6% 45,5% 46,9%
Long-term 16.785 51.241 46.654
% total debt 54,4% 54,5% 53,1%
Net debt (135.897) (108.070) (125.426)
Cash position and Indebtedness 1Q12 4Q12 1Q13

47
.1 Key financial indicators
A
Net revenues 161.361 201.039 24,6%
COGS (94.188) (111.606) 18,5%
Gross profit 67.173 89.433 33,1%
Gross margin 41,6% 44,5% 2,9 p.p.
SG&A (53.922) (63.382) 17,5%
% of Revenues -33,4% -31,5% 1,9 p.p
Selling expenses (34.257) (43.863) 28,0%
Ow ned stores (15.499) (22.337) 44,1%
Selling, logistics and supply (18.758) (21.526) 14,8%
General and administrative expenses (11.599) (17.329) 49,4%
Other operating revenues (expenses)1
(6.649) 395 n/a
Depreciation and amortization (1.417) (2.585) 82,4%
Ebitda 14.668 28.636 95,2%
Ebitda margin 9,1% 14,2% 5,1 p.p.
Net income 10.852 19.366 78,5%
Net margin 6,7% 9,6% 2,9 p.p.
Working capital2
- as % of revenues 25,2% 24,6% -0,6 p.p
Invested capital3
- as % of revenues 32,9% 33,7% 0,8 p.p.
Total debt 30.844 87.880 184,9%
Net debt4
(135.897) (125.426) n/a
Net debt/EBITDA LTM -1,2 X -0,8 X n/a
Key financial indicators 1Q12 1Q13
Growth or
spread%
1 - Includes non-recurring expense in 1Q12 in Other Operating Revenues and
Expenses: Arezzo&Co terminated its contract with Star Export Assessoria e
Exportação Ltda. (“Star”), which had been providing technical support and advice
services for procurement and inspection of independent factories and workshops
contracted to make products. As part of the termination, a payment of R$ 8 million
was made and Star signed a five-year non-compete agreement. On the same date,
a contract was signed with another company that has the same technical capability,
providing the same type of services on special commercial terms to reduce costs
while maintaining the same quality of services.
2 - Working Capital: current assets minus cash, cash equivalents and marketable
securities less current liabilities minus loans and financing and dividends payable.
3 - Invested capital: working capital plus fixed assets and other long-term assets
less income tax and deferred social contribution.
4 - 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.

48
.2 History – Franchises and Owned Stores
A
1. Includes areas in square meters of 9 international stores
2. Includes 5 outlet-type stores with a total area of 1,227 m2
3. Includes areas in square meters of stores expansion
Sales area
1,3
- Total (m²) 22,085 23,112 24,531 26,543 26,659
Sales area - franchises (m²) 17,331 18,005 19,125 20,646 20,731
Sales area - Owned stores
2
(m²) 4,754 5,107 5,406 5,897 5.928
Total number of domestic stores 338 351 368 390 391
# of franchises 292 301 316 334 335
Arezzo 290 295 300 311 312
Schutz 2 6 16 23 23
# of owned stores 46 50 52 56 56
Arezzo 18 19 19 19 19
Schutz 19 22 24 27 27
Alexandre Birman 1 1 2 2 2
Anacapri 8 8 7 8 8
Total number of international stores 7 8 9 9 9
# of franchises 7 8 8 8 8
# of owned stores 0 0 1 1 1
History - Franchises and Owned Stores 1
1Q12 2Q12 3Q12 4Q12 1Q13

49
.3 Balance Sheet - IFRS
AAssets 1Q12 4Q12 1Q13
Current assets 426.413 513.562 539.360
Cash and cash equivalents 6.213 11.518 8.427
Financial Investments 160.528 190.636 204.879
Trade accounts receivables 173.595 208.756 211.251
Inventory 66.099 76.133 87.481
Taxes recoverable 9.734 14.280 15.797
Other credits 10.244 12.239 11.525
Non-current assets 94.836 123.029 132.558
Long-term receivables 17.896 14.117 15.657
Financial Investments 88 20 178
Taxes recoverable 350 377 377
Deferred income and social contribution 10.473 6.264 8.007
Other credits 6.985 7.456 7.095
Property, plant and equipment 37.627 61.090 63.338
Intangible assets 39.313 47.822 53.563
Total Assets 521.249 636.591 671.918
Liabilities 1Q12 4Q12 1Q13
Current liabilities 103.212 127.418 146.211
Loans and financing 14.059 42.843 41.226
Suppliers 56.126 35.507 69.021
Dividends and interest on equity capital payable 6.117 8.945 0
Other liabilities 26.910 40.123 35.964
Non-current liabilities 23.138 55.274 52.102
Loans and financing 16.785 51.241 46.654
Related parties 879 973 969
Other liabilities 5.474 3.060 4.479
Equity 394.899 453.899 473.605
Capital 105.917 106.857 106.857
Capital reserve 172.723 173.498 173.838
Income reserves 116.259 153.162 192.910
Additional proposed dividend 0 20.382 0
Total liabilities and shareholders' equity 521.249 636.591 671.918

50
.4 Income Statement - IFRS
A Income statement - IFRS 1Q12 1Q13 Var.%
Net operating revenue 161.361 201.039 24,6%
Cost of goods sold (94.188) (111.606) 18,5%
Gross profit 67.173 89.433 33,1%
Operating income (expenses): (53.922) (63.382) 17,5%
Selling (35.007) (45.299) 29,4%
Administrative and general expenses (12.266) (18.478) 50,6%
Other operating income net (6.649) 395 n/a
Income before financial result 13.251 26.051 96,6%
Financial income 2.385 2.040 -14,5%
Income before income taxes 15.636 28.091 79,7%
Income tax and social contribution (4.784) (8.725) 82,4%
Current (5.245) (10.468) 99,6%
Deferred 461 1.743 278,1%
Net income for period 10.852 19.366 78,5%

51
.5 Cash Flow Statement - IFRS
A Cash flow Statement 1Q12 1Q13
Operating activities
Income before income tax and social contribution 15.636 28.091
Adjustments to reconcile net income with cash from operational activities (2.712) 1.767
Depreciation and amortization 1.417 2.585
Income from financial investments (3.861) (3.269)
Interest and exchange rate (522) 10
Other 254 2.441
Decrease (increase) in assets
Customer receivables 5.994 (2.374)
Inventory (8.579) (11.474)
Recoverable taxes 465 (1.516)
Variation other current assets 1.313 171
Judicial deposits (518) 904
Decrease (increase) in liabilities
Suppliers 18.840 33.513
Labor liabilities (2.831) (4.519)
Fiscal and social liabilities (5.615) (6.304)
Variation in other liabilities 206 (164)
Payment of income tax and social contribution - (3.663)
Net cash flow from operating activities 22.199 34.432
Net cash used in investing activities (15.986) (22.360)
Net cash used in financing activities - third parties (7.293) (6.214)
Net cash used in financing activities (8.235) (8.949)
Increase (decrease) in cash and cash equivalents (9.315) (3.091)
Increase (decrease) in cash and cash equivalents (9.315) (3.091)

52
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

Institutional presentation 1_q13

More Related Content

What's hot (19)

Viewers also liked (20)

Similar to Institutional presentation 1_q13 (20)

More from Arezzori (20)

Recently uploaded (20)

Institutional presentation 1_q13