Institutional presentation v_final

| Apresentação do Roadshow
As of September 30, 2012
Oct, 2012

1

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
.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

4

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

Leading company in Controlling Development of Asset light: high Strong cash
the footwear and shareholders are the collections with operational efficiency generation and high
accessories sector reference in the sector efficient supply chain growth
with presence in all
Brazilian states

8.6 million pairs of shoes(1) Net revenues CAGR:
~11,500 models created 26.8% (2007- 3Q12)
89% outsourced production
40 years of experience in per year
525 thousand handbags(1)
the sector
ROIC of 31.9% in 3Q12 Net Profit CAGR: 32.0%
Lead time of 40 days (2007- 2Q12)
2,697 points of sale
Wide recognition
2,105 employees
7 to 9 launches per year Increased operating
12% market share(2)
leverage

Notes:
1. LTM as of September, 2012.
2. Refers to the Brazilian women footwear market (source: Euromonitor, IBGE and Company estimates) . Estimated for 2011.
5

1
.3 Successful track record of
entrepreneurship
The right changes at the right time accelerated the Company's
development
Foundation and structuring Industrial Era Retail Era Corporate Era Industry Reference

70’s 80’s 90’s 00’s 2012

Founded in 1972 Consolidation of Focus on retail Specific brands for each
Focused on brand and industrial business model R&D and production segment
product located in Minas Gerais outsourcing on Vale dos Sinos - Expansion of distribution
1.5 mm pairs per year RS channels
and 2,000 employees Franchises expansion Efficient supply chain

Launch of new
brands Consolidate
Opening of the first Opening of the flagship leadership
shoe factory store at Oscar Freire
position
+ Merger

First store

Schutz launch Strategic Partnership
(November 2007)
Launch of the first Commercial operations
design with centralized in São Paulo
national success
Fast Fashion
concept Initial Public Offering
(February 2011)

.4 Shareholder structure1
1 Post-offering

Float Management²

47.1% 0.3%

Birman family Others

52.6% 47.4%

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 August, 2012.
7

1
.5 Culture & Management:
Arezzo towards 2154
Meritocratic culture based on best practices makes Arezzo a
company prepared to reach 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

8

1
.6 Strong platform of brands

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

Foundation 1972 1995 2008 2009
Trendy Fashion Pop Design
Brands New Up to date Flat shoes Exclusivity
profile Easy to wear Bold Affordable Identity
Eclectic Provocative Colorful Seduction
Female
target 16 - 60 years old 18 - 40 years old 12 - 60 years old 20 - 45 years old
market

O F MB EX O F MB EX O MB O MB EX
Distribution

POS 1
channel1

19 300 911 30 24 16 1,601 119 7 768 2 13 70

%
gross 14% 73% 12% 1% 26% 1% 65% 8% 41% 59% 14% 7% 79%
rev.2

Retail price
R$ 180.00/pair R$ 285.00/pair R$ 99.00/pair R$ 960.00/pair
point

Sales R$ 31.3 million
R$ 650.9 million R$ 317.2 million R$ 4.4 million
Volume3

% Gross 3.0%
62.7% 30.6% 0.4%
Revenues4
Notes:
1. Points of sales (3Q12 LTM); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports – # multibrand stores
2. % of each brand gross revenues (2011 LTM)
3. (3Q12 LTM) gross revenues, does not include other revenues (not generated by the 4 brands)
4. % total (3Q12 LTM) gross revenues
9

1
.7 Multiple distribution channels

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

Reach about
316 franchises in 52 owned stores Broad distribution
1,200 cities and
more than 160 being 7 Flagship in every Brazilian
2,329 multi-
cities stores state
brands

Gross Revenue Breakdown – (R$ mn)¹

46% 26% 22% 6% 100%

61²
227

270
1,038

480

Franchises Multi-brands Owned stores Others Total

Notes:
1. (3Q12 LTM) gross revenues
2. Considers external market and other revenues in the domestic market
10

2
Unique business model in Brazil

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

1
ABILITY TO
2
SOLID MARKETING
3
EFFICIENT
4
NATIONWIDE
5
SEASONED
MANAGEMENT
DISTRIBUTION
INNOVATE AND SUPPLY CHAIN TEAM WITH
STRATEGY
COMMUNICATION PERFORMANCE
PROGRAM BASED INCENTIVES

Communication &
R&D Sourcing & Logistics Multi-channel Management
Marketing

BRANDS OF REFERENCE

12

2
.1 Ability to Innovate

We produce 7 to 9 collections per year
I. Research II. Development III. Sourcing IV. Delivery
Creation:
11,500 SKUs / year

Available for selection:
63% of SKUs created /
year

Stores:
52% of SKUs created / year

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

Creation
Launch
Orders
Production
Delivery
Normal sale
Discount sale

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

Arezzo&Co fulfills the various aspirations of women, delivering on average 5 new
models per day, allowing for consistent desire-driven purchases 13

2
.2 Broad media plan

The brand has an integrated and expressive communication strategy, from the
creation of campaigns to the point of sales
Presence in eletronic media and television Strong presence in printed media

+1000 exhibition on TV e 620 exhibition in cinema in 2011 150 inserts in printed media in 300 pages in 2011 (45 million readers)
+ 40 million impact 78 exhibition in fashion editorials in 1Q12

Digital communication Celebrity Endorsement Marketing Events

549k accesses to site/month 115 k Facebook fans: leader in Demi Moore Gisele Bündchen Blake Lively CRM – VIP sales
Average navigation time: 8 minutes interactions Seasonal showroom in Los Angeles near the In-store events – PA
51 k Twitter followers : category leader 30 k monthly access to Schutz’s Blog Red Carpet Stylists Fashion Advisors
Season
14

2
.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
POS materials (catalogs, packaging, among others)

Store layout & visual merchandising Flagship stores

All visual communication at stores is monitored and updated simultaneously throughout Brazil
for each new collection 15

2
.2 Atmosphere of stores: differentiated
concepts for each brand

Niches and lighting

Summer – Flagship Oscar Freire Wall display Each theme is disposed in different niches

Chameleon project: constant
modification to incorporate the new
collection’s concept
Closet Essential

Sophisticated lighting

Combos

Winter – Flagship Oscar Freire Video Wall Acessories Storage Distinguished storefront Special collections

Visual merchandising:
Updates at low cost investment Jaquets and accessories Exposure of a large variety of Atmosphere of a jewelry store
Brings relevant information from Campaigns and marketing actions products Private shop experience
each collection to stores’ level Preeminence for products Selling area inventory: lower Focus on exclusivity, design and
3 main updates per year Differentiated products necessity of area for storage highly selected materials
16

2
.3 Flexible production process…

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

Owned factory with capacity to produce 1.2 million pairs
annually and strong relationship with Vale dos Sinos Arezzo’s size allows for large scale purchases from each
production cluster as the outsourcing represents 85% of total supplier
production

Certification and auditing of suppliers Joint purchases

In-house certification and auditing ensure quality and
Negotiation of raw material jointly with local suppliers
punctuality (ISO 9001 certification in 2008)

New Distribution Center Consolidation and improvement of distribution in national
scale

1 Reception: 100,000 units / day

2 Storage: 100,000 units / day

3 Picking: 150,000 units / day

4 Distribution: 200,000 units / day

5 Replacement of milky run strategy

17

2
.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:

Inauguration of the
Founding of the 1st Arezzo Arezzo reaches new Anacapri store
Arezzo brand Franchise 200 franchises format

1972 1975 1987 2000 2008 2010 2011

1st Store
1st Arezzo Flagship
GTM Schutz: focus on
store
mono-brand stores
Flagship store
strategy for Schutz

18

2
.4 ...through owned stores…

Capturing value from the chain while developing retail know how and
brands’ visibility
Flagship Stores Greater brand awareness coupled with operational efficiencies

Clustering higher productivity stores in main areas (mainly SP and RJ) improving
operational efficiency and profitability:

Franchise Owned
R$ 3,292 M
Annual Average
Sales per Store
2011 R$ 5,249 M

Direct costumers interaction develops retail competences which are also reflected
Arezzo – Ipanema / RJ at franchised stores
Arezzo – Cid. Jardim / SP Flagship stores ensure greater visibility and reinforce brand image

Total sales area and # of stores (sq m) 52
50
45

4,754 4,754
29
4,686 Flagship
21
25% 25%
20% Standard store
10 2,967 # stores
6
2,067 23%
1,369 75%
1,044 19% 80% 75%
9% 77%
Schutz – Iguatemi / SP 12% 81%
88% 91%
Schutz – Oscar Freire / SP
2007 2008 2009 2010 2011 2Q12 3Q12 19

2
.4 …with efficient management of the
franchise network...
Model allows rapid expansion with little invested capital by
Arezzo&Co and high profitability to franchisees
Successful Partnership: “Win – Win” Franchise Concentration per Operator

Intense retail training (# of Franchisees by # of Franchises)

Ongoing support: average of 6 stores/ consultant and
average of 22 visits per store/ year 4 or more
franchises
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 11%
3 franchises
each city they are located 15% 1 franchise
43%

Best Franchise in Brazil (2005) and in the sector for 7 31%
years since 2004

Excellency in Franchising Award in the last 8 years (ABF) 2 franchises

96% satisfaction of franchises1

Notes: FY2011 data
100% of on-time payments 1. 96% of the current franchisees indicated they would be interested in opening a
franchise if they did not already have one

Average payback of 39 months2 2. Annual sales of R$ 2,330 thousand + average initial investment of R$ 600 thousand
+ working capital of R$ 414 thousand
20

2
.4 … information technology, people
management...
Information technology and people management applied to retail in order to
support improvements on the whole managing process

The use of technology to support the A holistic approach for sales training
management process... teams in the various fronts of the retail
operation

Training Tools
1 2 3 • Product
• Fashion and trends
• Sales technique
To manage
To optimize • Store operations
performance To get to know
supply and • Visual merchandising
indicators of the profile of
stock
both the store consumers • Sales systems
management
and the team • Integration New operators
• Management Training
• Sales Conventions
• Sales Incentives (motivational)

Over BRL 1M invested in training in the first half of
…to sell more, have no overstock … and
2012
achieve goals! 20% Retail turnover in Company Owned Stores
during the first half of 2012
21

2
.4 ...and of the multi-brand stores

Multi-brand stores widen the distribution capillarity and the brands’
visibility, resulting in a strong retail footprint
Multi-brand stores’ Gross Revenue¹ (R$ mn) Improved distribution and brand visibility
2,329 Greater brand capillarity
1,783 Presence in over 1,200 cities
# Store
Rapid expansion at low investment and risk
Gross Revenue1
(R$ mn)
Main Focus: share of wallet
188 234 Owner’s loyalty
83 Important sales channel for smaller cities
69
Sales team optimization: internal team and commissioned
2010 2011 3Q11 3Q12 sales representatives

Multi-brand stores

Notes:
1. Domestic market only 22

2
.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
Points of sale (3Q12)

Size and average sales per mono-brand stores - 2011
300 franchises +
Brand
Average size Net Revenue/ m2 Total GDP³: 5% 19 owned stores(i) +
(m2) (R$ 000s) Stores 1,2 A&C¹: 4%
911 multi-brand clients
5 61 354 328 (i) 4 outlets

133 244 432 GDP³: 18%
A&C¹: 17%
1,904 9 167
16 franchises +
1,031 7 336
24 owned stores(ii) +
2.513 8 145 1,601 multi-brand clients
263 17 104 (ii)1 outlet

Points of sale – average size : new stores are increasing
GDP³: 7% 7 owned stores
network average size A&C¹: 7% GDP³: 55%
A&C¹: 57% 768 multi-brand clients

85 80 GDP³: 15% 2 owned store +
57 sq m sq m A&C¹: 15% 13 multi-brand clients
sq m
TOTAL
2010 2011 new stores 2012 new stores 316 franchises +
Source: IBGE, Companies’ Reports; number of stores according to latest data provided by the Companies 52 owned stores +
Notes:
1. Considers only monobrand stores of Arezzo and Schutz; 2.329 multi-brand clients
2. For Hering, considers only Hering Store chain stores;
3. 2008 data; = 2,697 points of sales
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; 23

2
.5 Seasoned and professional
management team
Anderson Birman
Internal Auditing
Marco Coelho

Schutz and Alexandre
Arezzo and Ana Capri Industrial Supply Chain Strategy and IT Financial HR
Birman
Anderson Birman
Alexandre Birman Cisso Klaus Marcio Jung Kurt Richter Thiago Borges Raquel Carneiro
Claudia Narciso

Highly qualified management team
Name Years of Years
Title experience at Arezzo
Anderson Birman Stock option plan for key executives
40 40
CEO
Alexandre Birman
COO
17 17 Performance based compensation package for all
Thiago Borges
employees
13 5
CFO and Investor Relations Officer

Cisso Klaus
47 9
Independent business units for each brand but unified
Director – Industrial officers (Industrial, Logistics, Financial and HR) for the
Claudia Narciso
24 14
whole company
Director – R&D

Kurt Ritchter
32 11
Director – Strategy and IT

Marcio Jung
28 8
Director – Supply Chain

Marco Coelho
41 30
Director – Internal Auditing

Raquel Carneiro
13 3
Director – HR 24

2
.6 Corporate governance

Board is composed by 8 members being 4 appointed by controlling shareholders
Board of directors
Name Experience Name Experience

Title Title
Tarpon’s partner since 2003, member of the Board of Directors of
Anderson Birman Arezzo’s CEO since its foundation, with over 40 years of Pedro Faria Direcional Engenharia, Omega Energia Renovável, Cremer and
Chairman of the Board experience in the industry Board Member Comgás

Alexandre Birman Arezzo’s COO and founder of Schutz, with 17 years of Eduardo Mufarej Tarpon’s partner since 2004, member of the Board of Directors of
Vice-Chairman of the Board experience in the industry Board Member Tarpon, Omega Energia Renovável and Coteminas

Founder and CEO of “Ethos Desenvolvimento Humano e
José Murilo Carvalho President of the Attorney’s Association of Minas Gerais, José Bolonha
Organizacional“; Board member of the Inter-American Economic
Board Member Board Member of the Brazilian Bar Association Board Member and Social Council (UN, WHO)

CEO of Bahema Participações, board member of Pão de CEO of Grupo Boticário (largest franchise company in Brazil) and
Guilherme A. Ferreira Açúcar, Banco Signatura Lazard, Eternit, Tavex and Rio
Artur N. Grynbaum
Vice-President at Abihpec (Brazilian Association of Industries in the
Independent Board Member Bravo Investimentos Independent Board Member
field of Personal Hygiene, Perfumes, and Cosmetics )

Committees
Audit Committee Strategy Committee People Committee
Ana Luiza Franco* (Coordinator) Pedro Faria (Coordinator) José Bolonha (Coordinator)
Members: Members:
Members:
Anderson Birman, Alexandre Birman, Guilherme A. Pedro Faria and Alexandre Birman
Jose Murilo and Guilherme A. Ferreira
Ferreira and Arthur N. Grynbaum

*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. 25

| Market Overview and
| Sourcing and Industry Characteristics

3
.1 Social upward mobility driving internal
consumption
Income growth and job creation lead to rapid social upward mobility and
increasing internal consumption
Brazil experiences an accelerated process of social upward migration...
(Millions of people)
Class A/B 13 (8%) 20 (11%) 31 (16%) +18 mi
(2003-14E)
Class C 66 (37%)
95(50%) +47 mi
113 (56%) (2003-14E)

Class D 47 (27%)
44 (24%)
40 (20%)
Class E 49 (28%)
29 (15%) 16 (8%)
2003 2009 2014E

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

Food, Drinks and
Cigarettes
1.0x 1.7x 3.3x 5.4x Footwear and apparel
have the largest
Electronics
1.0x Class 1.9x Class 4.4x Class 10.1x Class growth potential
and Furniture
D/E C B A
Footwear and
1.0x 2.3x 5.4x 12.6x
Apparel

Prescription/OTC drugs 1.0x 1.9x 4.3x 9.3x
Footwear and apparel
consumption
Hygiene and potential index: 4,8%
1.0x 2.3x 5.3x 11.2x
Personal Care

27
Source: IBGE, FGV, LCA, Bain & Co., BCG, Roland Berger, IPC Maps

3
.2 Brazilian footwear market overview

Arezzo&Co has a significant stake of the women footwear market and has
consistently increased its market share
Arezzo&Co’s market share1

11% 12%

8% 9%

5%

2007 2008 2009 2010 2011

Total footwear market (R$ bn)
CAGR (03-11): + 7.7%

Women footwear 11.6
2011
Total footwear 30.4

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 28

3
.3 Brazilian handbags market overview

Arezzo&Co also has a relevant position within the fast growing handbag market in
Brazil
Total handbags market (R$ bn) Arezzo&Co current sell out breakdown (R$ mn)
Breakdown based on Schutz and Arezzo owned stores

CAGR (03-11): + 10.7%

10%
Women handbags 3.3
2011 Calçados
Bolsas
Total handbags 4.2 195.9

Total addressable market (R$ bn) 90%

22%

Footwear
14.9 Handbags Consolidated (including handbags and shoes)
market share: 10%
78%
Opportunity to consolidate handbag leading position

Source: IBOPE Inteligência (Pyxis), Satra, World Bank, ABICALÇADOS, IEMI, MTE, MDIC, / SECEX, IBGE
29

3
.4 Footwear Industry - Global Overview
and competitive advantages
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
Pairs (millions) Production World share
ITALY
China 12,597 62.4% Lead time: 70 days
Minimum/model: 800 pairs CHINA (different clusters)
Minimum/construction: 4,000 pairs Lead time: 120 to 150 days
Índia 2,060 10.2% Production cap. (pairs): 202 million Minimum/model: 5,000 pairs
Cost (FOB): USD 35/pair Minimum/construction: 20,000 pairs
Brazil 894 4.4% Cost (DDP): USD 49/pair Production cap. (pairs): 12,000 million
Cost (FOB): USD 16-18/pair
Cost (DDP): USD 42-45/pair
Vietnam 760 3,8%
Indonesia 658 3.3%
VIETNAM
Lead time: 120 to 150 days
Pakistan 292 1.4% Minimum/model: 2,000 pairs
Minimum/construction: 8,000 pairs
Production cap. (pairs): 760million
Pairs (millions) Consumption World share Cost (FOB): USD 18/pair
INDIA Cost (DDP): USD 26/pair
Lead time: 160 days
China 2,700 15.2% Minimum/model: 5,000 pairs
USA 2,335 13.4% BRAZIL
Production cap. (pairs): 2,060 million
Cost (FOB): USD 15/pair
Lead time: 40 days
India 2,034 11.7% Minimum/model: 800 pairs
Cost (DDP): USD 23/pair
Brazil 780 4,5% Production cap. (pairs) 894 million
Cost (w/o tax): USD 21/pair
Japan 693 4.0% Cost (w/tax): USD 27/pair

Indonesia 627 3.6%

30

3
.5 Footwear Industry - Global footwear
offering
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
Industry segmentation vs. value creation: 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
Global Brands

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

Manufacturer with Italy
B own design and global brand Spain

Manufacturer with Brazil

Value added
C own design and mostly local brand
Taiwan
Mexico

D Manufacturing operation China Indonesia India

E Equipment assembly Thailand Vietnam Other global
suppliers
Receive product and process specifications, as well
as components and raw material
Assembly activities only -
+ Minimum volumes +
(production)
31

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
Brazil is the world’s third largest Vale dos Sinos: 26% of Brazilian
footwear producer footwear production

The world’s largest cattle: 13% of BRAZIL
the market
Production (million pairs) 819
RS: 1 third (BRL 1 billion) of
Jobs (thousands) 338
Brazilian revenue in leather industry

Vale dos Sinos: one of the world’s SOUTHERN REGION
largest footwear manufacturing hubs
Production (million pairs) 270

Abundant skilled and specialized labor Jobs (thousands) 138

Production flexibility:
VALE DOS SINOS
volume X variety X speed

1,700 companies and entities: components, Production (million pairs) 216
footwear, machinery, tanneries, trade entities,
research and teaching institutions Jobs (thousands) 110
Source: Abicalçados, 2012 / ASSINTECAL / FAO / AICSUL. 32

3
.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
Women’s leather footwear production: Vale dos Sinos’ component manufacturing:
(million of pairs) 31% of Brazilian companies in the category
# of # of
Segment Segment
companies companies
Women’s leather
Women’s leather
footwear
footwear Outsole
27 Upper materials 78
complements

Upper complements 197 Insoles 33
Leather footwear
Leather footwear
Footwear production
Packaging 46 47
chemicals
Leather production
Brazilian footwear
Brazilian footwear Tools, dies/moulds 152
chemicals
37

Heels, outsoles and
160 Chemicals 83
high heels
134

237 Distribution of components and tanneries per region:

819 South Southeast Northeast Midlewest North
Components: Components: Components: Components: Components:
- Micro: 54% - Micro: 38% - Micro: 4% - Micro: 1% - Micro: 3%
Nearly 70% of Brazil’s leather footwear - Small: 51% - Small: 40% - Small: 4% - Small: 3% - Small: 2%
- Medium: 41% - Medium: 44% - Medium: 5% - Medium: 3% - Medium: 4%
production - Large: 33% - Large: 60% - Large: 7%
Tanneries: 41% Tanneries: 34% Tanneries: 12% Tanneries: 10% Tanneries: 4%

Source: Abicalçados, 2012 / ASSINTECAL / FAO / AICSUL./ Arezzo&Co 33

3
.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:

1 2 3 4 5 6 7
Trends and Technical Logistics and
style
Design
Design
Engineering Samples Showroom
distribution Store

Raw material price negotiations Scheduling + Manufacturer negotiation

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

Chemichals and textile

Cost control

Cost management efficiency

Quality standard guarantee
Finished Raw
products
Arezzo&Co materials
Efficient lead time

Engineering folder Flexibility

Components
34

3
.9 Understanding shoes

A non-complex shoe has 61 raw materials managed by the industrial unit. R&D
optimization ensures greater management of costs and deadlines.
Anklet (8 parts)
Buckle (2 parts)
Upper (11 parts)

Spike rivet (2 parts)
Assembly insole
(11 parts)
Toecap (2 parts)

High Heel (7 parts)

Half sole (3 parts)
Reuse from collection to collection:
Heel (2 parts)
SKU 10%
Outsole (3 parts) MODEL 35%

CONSTRUCTION 70%

Packaging (10 parts)

35

.1 Solid growth fundamentals
4 Key drivers of growth

Store openings in 2011 – 38 out of 38
Expand distribution footprint Store openings in 2012E – increase from 40 to 58
Same store expansion in 2011 and 2012 – 922 out of 1,000 sq m already expanded

Store remodeling: Schutz new store format significantly improving sales productivity
Store productivity increase
Same store sales of 6.8% (sell out - owned stores) and 14.2% (sell in – franchises)
and additional upsides
IT integration between our franchises: about 80% of our stores network in the same platform

Gross margin expansion: 100bps in 2011
Increase operational
EBITDA margin expansion: 60bps in 2011
efficiencies and margins
Net income CAGR reached 47% (2005-2011) and net margin rose by 7p.p. in the same period

Schutz – Leblon Schutz – Higienópolis Schutz – Iguatemi SP
Date of expansion: Nov/11 Date of renovation: Aug/11 Date of renovation: Apr/12
Sales Increase post-expansion 1
Sales Increase1 Sales Increase1
+198% +107% +115%

106% 150%
148%
109m² 70m² 110m²
44m² 34m² 44m²

Before After Before After Before After
¹Period studied: end of the renovation until jun/12 compared to the same period the previous year 37

.2 What’s new for 2012
4
Key drivers of growth

Opening of 58 stores in 2012:
• 11 owned stores
Expanding Footprint • 47 franchises
Webcommerce: Schutz and Anacapri started marketing a wide range of models to Brazil

Brand assessment:
GTM Arezzo • Reevaluation of Arezzo’s current distribution and supply model in Brazil
• Solid planning of brand growth for the next years

Anacapri Gross
Consistent sales growth since 2010 Revenue
Anacapri (R$ million)
Focus on new store format 21.6
Consolidation 5.8 9.2
Widening distribution platform for franchises 2.6
2010 2011 3Q11 3Q12

Alexandre Birman Concentration on brand’s strengthening
Internationalization
Structuring brand’s internationalization out of NY

38

.3 2013 Expansion Plan
4
2013 pipeline expansion is committed to the opening of 53 new stores with
15% growth in total sales area
# Owned stores

# Franchises
445

47
392 6 60

54
+13%

385
338

2012 2013

39

5
.1 Operational and financial highlights

Gross Revenues per Channel (R$ mn) – Domestic Market

30.6% 751. 8
10.7
575.5 167.7
79.6%
32.8% 4.8
301.4 93.3 20.3%
212.9
226.9
81.8% 177.1
20.0%
4.2
2.0 20.1% 63.0
34.6 83.2 360.5
69.2 300.4
24.9%
121.0 151.1

3Q11 3Q12 9M11 9M12
Franchise Multi -brand Owned Stores Others¹
SSS Sell-out (owned stores ) 0.4% 6.8% 9.6% 9.9%
SSS Sell-in (franchises ) 11.6% 14.2% 15.6% 11.9%

Notes:
1. Other: Growth of 103.4% in 3Q12 and of 122.6% in 9M12.

41

5

Key highlights

3Q12 Net Revenue increased by 30.6% year-over-year

3Q12 ended with 368 store chain and Sales area expansion of 24% year-over-year

Strong Gross Revenue growth, especially in the Schutz brand that increased by 67.5% in 3Q12 comparing to 3Q11

Net Revenues (R$ mn) Number of Stores (R$ mn) and Total Area (sq m - ‘000)
CAGR 07-12 (3Q12 LTM) : 26.8% Area CAGR 07- 12 (3Q12): 12.7%
678.9
24.2% 23.9
571.5 21.9%
19.3 17.7% 21.4
412.1 12.5%
13.2% 17.6
18.8%
367.1 14.9
38.7% 368 13.3
11.7 334
30.6% 311 296
+42 52 263 +38
193.8 12.3% 36 237 +33 45
246.7 214 29
188.9 10 +26 21
6 +23
89.4% 316 267 289
275 208 227 242

3Q11 3Q12 2007 2008 2009 2010 2011 3Q11 3Q12 2007 2008 2009 2010 2011
Owned Stores Franchises Total Area
42

5

Gross Profit (R$ mn) and Gross Margin (%) EBITDA (R$ mn) and EBITDA Margin (%)

43.5% 18.8%
43.4% 41.9% 17.3% 17.6%
41.8% 264.2
15.1%
201.1 31.4%
92.0
84.6
35.6% 8.8%
107.0 20.0%

78.9 42.7
35.5

3Q11 3Q12 9M11 9M12 3Q11 3Q12 9M11 9M12
Net Income (R$ mn) and Net Margin (%)
13.7% 13.5%
11.6% 10.7%
64.7 65.2
10.2% 0.8%

28.6
25.9

3Q11 3Q12 9M11 9M12

Net Income Net Margin
43

5

Cash Conversion Cycle (R$ thousand) Capex (R$ million)
3Q11 3Q12 Change Growth or Growth or
Cash Conversion Cycle Sumary of investments 3Q11 3Q12 9M11 9M12
#days (R$'000) #days (R$'000) (in days) spread (%) spread (%)

110 181.780 105 218.631 -5 Total Capex 9,611 16,479 71.5% 16,927 48,278 185.2%
Inventory¹ 68 71.941 65 82.543 -3 Stores - expansion and reforming 7,879 10,306 30.8% 12,218 31,299 156.2%
Accounts Receivable² 89 159.889 91 201.253 2 Corporate 1,455 5,399 271.1% 3,981 15,727 295.1%
(-) Accounts Payable¹ 47 50.050 51 65.165 4 Others 277 774 179.4% 728 1,252 72.0%

¹ Days of COGs
² Days of Net Revenues

Cash Flows From Operating Activities (R$ thousand)
Growth or Growth or
Cash flows from operating activies 3Q11 3Q12 9M11 9M12
spread spread
Income before income taxes 38,854 42,289 3,435 90,520 91,620 1,100
Depreciation and amortization 1,050 2,043 993 2,890 5,209 2,319
Others (1,680) (1,032) 648 (7,943) (6,679) 1,264

Decrease (increase) in current assets / liabilities (38,949) (36,065) 2,884 (28,200) (9,546) 18,654

Trade accounts receivable (51,314) (50,566) 748 (27,418) (21,771) 5,647
Inventories (3,983) (17,341) (13,358) (22,820) (26,028) (3,208)
Suppliers 12,778 21,837 9,059 21,306 27,879 6,573
Change in other current assets and liabilities 3,570 10,005 6,435 732 10,374 9,642

Change in other non current assets and liabilities (946) (757) 189 (2,119) (2,385) (266)

Tax and contributions (6,363) (10,166) (3,803) (14,703) (21,818) (7,115)

Net cash generated by operating activities (8,034) (3,688) 4,346 40,445 56,401 15,956
44

5

Indebtedness (R$ thousand)

Indebtedness 3Q11 2Q12 3Q12
Indebtedness totaled R$55.2 million in 3Q12 versus
R$51.1 million in 2Q12
Cash 178,999 205,819 175,605

Total indebtedness 35,065 51,117 55,199
Short term 16,270 25,548 30,626
Long-term debt relevance stood at 44.5% in 3Q12 versus As % of total debt 46.4% 50.0% 55.5%
50.0% in 2Q12
Long term 18,795 25,569 24,573
As % of total debt 53.6% 50.0% 44.5%

Net debt (143,934) (154,702) (120,406)
Indebtedness policy remained conservative, with low
weighted-average cost of Company's total debt EBITDA LTM 115,562 118,007 125,128
Net debt /EBITDA LTM -1.2x -1.3x -1.0x

45

A
.1 Key performance indicators

Growth or Growth or
Main financial Indicators 3Q11 3Q12 9M11 9M12
spread (%) spread (%)

Net revenue 188,901 246,655 30.6% 479,736 607,484 26.6%
(-) COGS (109,976) (139,606) 26.9% (278,658) (343,327) 23.2%
Gross profit 78,925 107,049 35.6% 201,078 264,157 31.4%
Gross margin 41.8% 43.4% 1.6 p.p. 41.9% 43.5% 1.6 p.p.
(-) SG&A (44,440) (66,436) 49.5% (119,409) (177,408) 48.6%
% of Revenues 23.5% 26.9% 3.4 p.p. 24.9% 29.2% 4.3 p.p.
(-) Selling expenses (31,756) (48,631) 53.1% (83,006) (123,783) 49.1%
(-) Owned stores (10,898) (20,092) 84.4% (30,544) (54,134) 77.2%
(-) Sales, logistics and supply (20,858) (28,539) 36.8% (52,462) (69,649) 32.8%
(-) General and administrative expenses (11,871) (15,303) 28.9% (34,171) (41,111) 20.3%
(-) Other operating revenues (expenses)¹ 237 (459) n/a 658 (7,305) n/a
(-) Depreciation and amortization (1,050) (2,043) 94.6% (2,890) (5,209) 80.2%
EBITDA 35,535 42,656 20.0% 84,559 91,958 8.8%
Ebitda Margin 18.8% 17.3% -1.5 p.p. 17.6% 15.1% -2.5 p.p.
Net income 25,945 28,586 10.2% 64,712 65,201 0.8%
Net margin 13.7% 11.6% -2.1 p.p. 13.5% 10.7% -2.8 p.p.

Working capital² - % of revenues 25.0% 24.3% -0.7 p.p. 25.0% 24.3% -0.7 p.p.
Invested capital³ - % of revenues 27.9% 32.8% 4.9 p.p. 27.9% 32.8% 4.9 p.p.

Total debt 35,065 55,199 57.4% 35,065 55,199 n/a
4
Net debt (143,934) (120,406) -16.3% (143,934) (120,406) n/a
Net debt/EBITDA LTM -1.2 X -1.0 X n/a -1.2 X -1.0 X n/a

47

A
.2 Balance Sheet - IFRS

Assets 3Q11 2Q12 3Q12 Liabilities 3Q11 2Q12 3Q12

Current assets 423,739 441,382 475,879 Current liabilities 97,635 107,458 134,590
Cash and cash equivalents 6,229 4,799 8,373
Loans and financing 16,270 25,548 30,626
Short-term investments 172,770 201,020 167,232 Trade accounts payable 50,050 43,328 65,165
Trade accounts receivables 159,889 150,687 201,253 Dividends and interest on equity capital payable - 9,701 -
Inventories 71,941 65,718 82,543 Other liabilities 31,315 28,881 38,799
Taxes recoverable 3,647 7,393 3,971
Other receivables 9,263 11,765 12,507 Non-current liabilities 25,697 29,984 29,025
Loans and financing 18,795 25,569 24,573
Non current assets 72,282 105,507 120,042 Related parties 894 975 979
Long-term assets 22,816 16,135 17,437 Other liabilities 6,008 3,440 3,473
Financial investments 78 98 98
Taxes recoverable 3,170 360 360 Equity 372,689 409,447 432,306
Deferred income and social contribution taxes 13,646 8,705 9,392 Capital 40,917 105,917 106,857
Other receivables 5,922 6,972 7,587 Capital reserve 237,723 172,830 173,149
Property, plant and equipment 24,901 47,693 56,788 Income reserves 37,779 105,407 98,421
Intangible assets 24,565 41,679 45,817 Retained Earnings 56,270 25,293 53,879

Total assets 496,021 546,889 595,921 Total liabilities and shareholders’ equity 496,021 546,889 595,921

48

A
.3 Income Statement - IFRS

Growth or Growth or
Income statement - IFRS 3Q11 3Q12 9M11 9M12
spread (% ) spread (% )

Net operating revenue 188,901 246,655 30.6% 479,736 607,484 26.6%
Cost of sales and services (109,976) (139,606) 26.9% (278,658) (343,327) 23.2%

Gross profit 78,925 107,049 35.6% 201,078 264,157 31.4%
Operating income (expenses): (44,440) (66,436) 49.5% (119,409) (177,408) 48.6%
Selling (32,203) (49,714) 54.4% (84,203) (126,532) 50.3%
Administrative and general (12,474) (16,263) 30.4% (35,864) (43,571) 21.5%
Other operating income, net 237 (459) n/a 658 (7,305) n/a

Income before financial results 34,485 40,613 17.8% 81,669 86,749 6.2%
Financial income (expenses) 4,369 1,676 -61.6% 8,851 4,871 -45.0%

Income before income taxes 38,854 42,289 8.8% 90,520 91,620 1.2%

Income and social contribution taxes (12,909) (13,703) 6.2% (25,808) (26,419) 2.4%
Current (12,936) (14,390) 11.2% (20,201) (25,799) 27.7%
Deferred 27 687 2444.4% (5,607) (620) -88.9%

Net income for the year 25,945 28,586 10.2% 64,712 65,201 0.8%

49

A
.4 Cash Flow Statement - IFRS

Cash Flow Statement - IFRS 3Q11 3Q12 9M11 9M12

Cash flows from operating activities
Income before income and social contribution taxes 38,854 42,289 90,520 91,620
Adjustments to reconcile to net cash generated by operating activities (630) 1,011 (5,053) (1,470)
Depreciation and amortization 1,050 2,043 2,890 5,209
Financial Investments (4,921) (2,927) (11,806) (9,531)
Interest and FX variation 2,806 (310) 3,793 504
Other 435 2,205 70 2,348

Decrease (increase) in assets (55,214) (65,848) (50,119) (43,650)
Trade accounts receivable (51,314) (50,566) (27,418) (21,771)
Inventories (3,983) (17,341) (22,820) (26,028)
Taxes recoverable 2,549 3,421 4,975 6,217
Variation in other current assets (1,952) (974) (2,610) (1,039)
Judicial deposits (514) (388) (2,246) (1,029)

(Decrease) increase in liabilities 15,319 29,026 19,800 31,719
Trade accounts payable 12,778 21,837 21,306 27,879
Labor liabilities 3,766 4,656 1,153 5,925
Tax and social liabilities (1,106) 545 (3,066) (3,802)
Change in other liabilities (119) 1,988 407 1,717

Paid incomes and social contribution taxes (6,363) (10,166) (14,703) (21,818)

Net cash generated by operating activities (8,034) (3,688) 40,445 56,401

Net cash used in investing activities 18,606 20,235 (172,871) (47,972)

Net cash used in financing activities with third parties (17) 4,392 (15,496) 16,036

Net cash used in financing activities with shareholders (7,587) (17,365) 146,147 (31,620)

Increase (decrease) in cash and cash equivalents 2,968 3,574 (1,775) (7,155)

Increase (decrease) in cash and cash equivalents 2,968 3,574 (1,775) (7,155) 50

IR Contacts

CFO and IR Officer

Thiago Borges

IR Manager

Daniel Maia

Phone: +55 11 2132-4300
ri@arezzoco.com.br
www.arezzoco.com.br
51

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