1. | Apresentação do Roadshow
As of June 31, 2012
Aug, 2012
1

2. 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

3. | Company overview

4. 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

5. 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
8.2 million pairs of shoes(1) Net revenues CAGR:
~11,500 models created 31,0% (2007- 2Q12)
85% outsourced production
39 years of experience in per year
521 thousand handbags(1)
the sector
ROIC of 35.8% in 2Q12 Net income CAGR: 38.8%
Lead time of 40 days (2007- 2Q12)
2,575 points of sale
Wide recognition
2,041 employees
7 to 9 launches per year Increased operating
11.1% market share(2)
leverage
Notes:
1. LTM as of June, 2012.
2. Refers to the Brazilian women footwear market (source: Euromonitor, IBGE and Company estimates) . Estimated for 2010.
5

6. 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)

7. .4 Shareholder structure1
1
Float SOP²
47.1% 0.1%
Post-offering
Birman family Management Others
52.6% 0.2% 47.2%
Notes:
1. Arezzo&Co capital stock is composed of 88,587,469 common shares, all nominative, book-entry shares with no par value.
2. Stock Option Plan – Arezzo&Co’s executives
Shareholder structure as of August, 2012.
7

8. 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

9. 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
19 295 878 30 22 6 1,551 119 8 767 1 16 55
%
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$ 25.9 million
R$ 619.1 million R$ 282.6 million R$ 7.1 million
Volume3
% Gross 2.7%
64,4% 29.4% 0.7%
Revenues4
Notes:
1. Points of sales (2Q12 LTM); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports – # multibrand stores
2. % of each brand gross revenues (2011 LTM)
3. (2Q12 LTM) gross revenues, does not include other revenues (not generated by the 4 brands)
4. % total (2Q12 LTM) gross revenues
9

10. 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
301 franchises in 50 owned stores Broad distribution
1.200 cities and
more than 160 being 7 Flagship in every Brazilian
2,500 multi-
cities stores state
brands
Gross Revenue Breakdown – (R$ mn)¹
47% 27% 21% 6% 100%
58²
198
256
962
450
Franchises Multi-brands Owned stores Others Total
Notes:
1. (2Q12 LTM) gross revenues
2. Considers external market and other revenues in the domestic market
10

11. | Business model

12. 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
DISTRIBUTION MANAGEMENT
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

13. 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

14. 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

15. 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

16. 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

17. .3 Flexible production process…
2 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

18. .4 ...leveraged by owned stores…
2 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) 50
45
29 4,754
4,686 Flagship
21
20% Standard Store
20%
10 # stores
2,967
6
2,067 23%
1,044 1,369 19% 80% 80%
9% 77%
Schutz – Iguatemi / SP 12% 81%
88% 91%
Schutz – Oscar Freire / SP
2007 2008 2009 2010 2011 2Q12 18

19. .4 …with efficient management of the
2 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 10%
3 franchises
each city they are located 16% 1 franchise
46%
Best Franchise in Brazil (2005) and in the sector for 7 28%
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
19

20. 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
2,224  Greater brand capillarity
1,612  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
74  Important sales channel for smaller cities
60
 Sales team optimization: internal team and commissioned
2010 2011 2Q11 2Q12 sales representatives
Multi-brand stores
Notes:
1. Domestic market only 20

21. 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 (1Q12)
Size and average sales per mono-brand stores - 2011
295 franchises +
Brand
Average size Net Revenue/ m2 Total GDP³: 5% 19 owned stores(i) +
(m2) (R$ 000s) Stores 1,2 A&C¹: 4%
878 multi-brand clients
5 61 354 328 (i) 4 outlets
133 244 432 GDP³: 18%
A&C¹: 17%
1,904 9 167
6 franchises +
1,031 7 336
22 owned stores(ii) +
2.513 8 145 1,551 multi-brand clients
263 17 104 (ii)1 outlet
Points of sale – average size : new stores are increasing
GDP³: 7% 8 owned stores
network average size A&C¹: 7% GDP³: 55%
A&C¹: 57% 767 multi-brand clients
85 80 GDP³: 15% 1 owned store +
57 sq m sq m A&C¹: 15% 16 multi-brand clients
sq m
TOTAL
2010 2011 new stores 2012 new stores 301 franchises +
Source: IBGE, Companies’ Reports; number of stores according to latest data provided by the Companies 50 owned stores +
Notes:
1. Considers only monobrand stores of Arezzo and Schutz; 2.224 multi-brand clients
2. For Hering, considers only Hering Store chain stores;
3. 2008 data; = 2,575 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; 21

22. 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
39 39  Stock option plan for key executives
CEO
Alexandre Birman
COO
16 16  Performance based compensation package for all
Thiago Borges
employees
12 4
CFO and Investor Relations Officer
Cisso Klaus
46 8
 Independent business units for each brand but unified
Director – Industrial officers (Industrial, Logistics, Financial and HR) for the
Claudia Narciso
23 13
whole company
Director – R&D
Kurt Ritchter
31 10
Director – Strategy and IT
Marcio Jung
27 7
Director – Supply Chain
Marco Coelho
40 29
Director – Internal Auditing
Raquel Carneiro
12 2
Director – HR 22

23. 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 39 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 16 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. 23

24. | Market Overview

25. 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
1.0x 1.7x 3.3x 5.4x
Cigarettes
Electronics
1.0x Class 1.9x Class 4.4x Class 10.1x Class
and Furniture Footwear and
D/E C B A apparel have
Footwear and
1.0x 2.3x 5.4x 12.6x the largest
Apparel
growth
Prescription/OTC drugs 1.0x 1.9x 4.3x 9.3x potential
Hygiene and
1.0x 2.3x 5.3x 11.2x
Personal Care
25
Source: IBGE, FGV, LCA, Bain & Co., BCG, Roland Berger

26. 3
.2 Brazilian footwear market overview
Arezzo&Co has a significant stake of the the women footwear market
and has consistently increased its market share
Footwear consumption (2009) Arezzo&Co‟s market share1
Others
11.1%
Kids 4%
13% 8.6%
8.1%
37%
Sports
Men 17%
4.7%
2007 2008 2009 2010
Women 29% Footwear market (R$ bn)
footwear
+8%
+4% +6%
Income Class
Class A
Class D/E 17%
6% 35.4
32.9
29.7 31.0
33% 44%
9.0 9.5 10.3
8.6
Class B
Class C
2007 2008 2009 2010
Total footwear Women footwear
Source: IBOPE Inteligência (Pyxis), Satra, World Bank, ABICALÇADOS, IEMI, MTE, MDIC, / SECEX, IBGE
Note: 1. Based on Euromonitor research and IBOPE Inteligência (Pyxis). Estimated market share, which includes both Arezzo and Schutz 26

27. 3
.3 Global Industry
Brazil is a major shoe producer with a competitive cost of women leather
shoes for the domestic market
CHINA
Lead time: 120 to 150 days
Production (pairs): 10.000 mi
ITALY
Cost (FOB): US$ 16/pair
Lead time: 70 days
Cost (DDP): US$ 40/pair
Production (pairs): 202 mi
Cost (FOB): US$ 26/pair
Cost (DDP): US$ 38/pair INDIA
Lead time: 160 days
Production (pairs): 2.000 mi
Cost (FOB): US$ 15/pair
Cost (DDP): US$ 23/pair
VIETNA
Lead time: 120 to 150 days
Production (pairs): 682 mi
Cost (FOB): US$ 15/pair
Cost (DDP): US$ 23/pair
BRAZIL
Lead time: 40 days
Production (pairs): 894 mi
Cost (without taxes ): US$
19/pair
Cost (w/ taxes ): US$ 29/pair
Note:
DDP: delivered duty paid
Source: Abilcalçados, Assintecal, Arezzo&Co FOB: free on board
27

28. 3
.4 Brazilian footwear industry Overview
Arezzo&Co mainly sources its products in the South of Brazil, the world‟s
largest footwear manufacturer cluster, specialized in women leather shoes
Brazilian Shoes Production (2010)
Vale dos
South
894 South Region Region
Sinos
(RS)
million
Production - # pairs (million) 302 ~187
pairs
Export - # pairs (million) 32 ~20
Export - (million USD) 733 ~455
Jobs (thousand) 130 ~81
Other Main producer Companies 3.400 ~2.000
66 States
7% Sports  Expertise in the production of women leather shoes
88
10%
Other producer regions:
Rubber
487 Southeast Northeast
Southeast Region Northeast Region
55% Region Region
Leather
253
Production - # pairs (million) 189 Production - # pairs (million) 399
28%
Export - # pairs (million) 9 Export - # pairs (million) 102
Export - (million USD) 152 Export - (million USD) 595
Jobs (thousand) 90 Jobs (thousand) 126
Companies 4.000 Companies 627
Source: Abilcalçados, Assintecal, Arezzo&Co
 Expertise in the production of men leather shoes  Expertise in the production of sports shoes
28

29. | Value Drivers Update

30. .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 – 817 out of 1000 sq m already expanded
 Store remodeling: Schutz new store format significantly improving sales productivity
Store productivity increase
 Same store sales of 11.2% (sell out - owned stores) and 14.5% (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
Revenue growth post-expansion SG&A as % of Net Revenue and Gross Margin
40.5% 40.5% 41.5%
107%¹
AFTER 37.7%
BEFORE
27.0%
70m2 26.2%
24.3%
24.7%
34m2
Store area
¹ Comparison between the sales of Schutz store at Higienópolis Shopping: 2008 2009 2010 2011
Results from August/10 to June/11 and August/11 to June/12
Gross margin SG&A (% of net revenue)
30

31. .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 8.4
 Widening distribution platform for franchises 2.6 1.9
2010 2011 1Q11 1Q12
Alexandre Birman  Concentration on brand’s strengthening
Internationalization
 Structuring brand’s internationalization out of NY
31

32. 05 | 1Q12 Financial Highlights

33. 5
.1 Operational and financial highlights
Gross Revenues per Channel (R$ mn) – Domestic Market
29.2%
450.3
6.5
348.6
35.3% 78.4% 104.7
249.0 2.8
58.7 20.4%
184.0 3.0 129.8
89.3%
107.8 16.7%
60.2
1.0
31.8 22.6%
74.0
60.4 209.3
23.1% 179.4
90.8 111.8
2Q11 2Q12 1H11 1H12
Franchise Multi-brand Owned Stores Others¹
SSS Sell-out (owned stores) 19.2% 11.2% 15.6% 11.6%
SSS Sell-in (franchises) 24.2% 14.5% 19.1% 10.4%
Notes:
1. ¹ Other: Growth of 211.1% in 2Q12 and of 136.9% in 1H12.
33

34. 5
.2 Operational and financial highlights
Key highlights
2Q12 Net Revenue increased by 31.0% year-over-year
2Q12 ended with 351 store chain and Sales area expansion of 26% year-over-year
Strong Gross Revenue growth, especially in the Schutz brand that increased by 62.7% in 2Q12 comparing to 2Q11
Net Revenues (R$ mn) Number of Stores (R$ mn) and Total Area (sq m - „000)
CAGR 07-12 (2Q12 LTM) : 31.0% Area CAGR 07- 12 (2Q12): 14.0%
678.9
571.5 23.9% 21.9%
22.6 21.4
17.7%
412.1 18,0 12.5%
13.2% 17.6
367.1 18.8%
38.7% 13.3 14.9
338 11.7 334
31.1% 296 296
+42 263 +38
193.8 12.3% 50 237 +33 45
31 214 29
199,5 10 +26 21
152,2 6 +23
89.4% 269 301 267 289
208 227 242
2Q11 2Q12 2007 2008 2009 2010 2011 2Q11 2Q12 2007 2008 2009 2010 2011
Owned Stores Franchises Total Area
34

35. 5
.3 Operational and financial highlights
Gross Profit (R$ mn) and Gross Margin (%) EBITDA (R$ mn) and EBITDA Margin (%)
45.1% 43.5% 18.6%
43.2% 42.0% 17.4% 16.9%
28.6% 13.7%
157.1
36.9%
122.2 0.6%
22.4%
89.9
49.0 49.3
65.7 34.6
28.3
2Q11 2Q12 1H11 1H12 2Q11 2Q12 1H11 1H12
EBITDA EBITDA Margin
Adjusted¹ NetProfit
Gross Income (R$ mn) and Net Margin (%)
Gross Margin
15.8%
12.9% 13.3%
10.1%
7.2% -5.6
38.8 36.6
24.0 25.8
2Q11 2Q12 1H11 1H12
Net Income Net Margin 35

36. 5
.4 Operational and financial highlights
Cash Conversion Cycle (R$ thousand) Capex (R$ million)
2Q11 2Q12 Change Growth or Growth or
Cash Conversion Cycle Sumary of investments 2Q11 2Q12 1H11 1H12
#days (R$'000) #days (R$'000) (in days) spread (%) spread (%)
93 139,003 92 173,077 -1 Total Capex 3,578 14,462 304.2% 7,316 31,799 334.7%
Inventory¹ 67 67,699 55 65,718 -11 Stores - expansion and reforming 2,133 7,415 247.6% 4,339 20,993 383.8%
Accounts Receivable² 63 108,576 73 150,687 10 Corporate 1,213 6,775 458.5% 2,526 10,328 308.9%
(-) Accounts Payable¹ 37 37,272 37 43,328 0 Others 232 272 17.2% 451 478 6.0%
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 2Q11 2Q12 1H11 1H12
spread spread
Income before income taxes 30,345 33,695 3,350 51,666 49,331 (2,335)
Depreciation and amortization 961 1,749 788 1,840 3,166 1,326
Others (4,395) (1,518) 2,877 (6,263) (5,647) 616
Decrease (increase) in current assets / liabilities 22,815 16,544 (6,271) 10,747 26,519 15,772
Trade accounts reveivable 42,262 22,801 (19,461) 23,896 28,795 4,899
Inventories (3,114) (108) 3,006 (18,837) (8,687) 10,150
Suppliers (13,629) (12,798) 831 8,528 6,042 (2,486)
Change in other current assets and liabilities (2,704) 6,649 9,353 (2,840) 369 3,209
Change in other non current assets and liabilities (908) (928) (21) (1,171) (1,628) (457)
Tax and contributions (5,974) (11,652) (5,678) (8,340) (11,652) (3,312)
Net cash generated by operating activities 42,844 37,890 (4,955) 48,479 60,089 11,610
36

37. 5
.4 Operational and financial highlights
Indebtedness (R$ thousand)
Indebtedness 2Q11 1Q12 2Q12
Indebtedness totaled R$51.1 million in 2Q12 versus
R$30.8 million in 1Q12
Cash 199,339 166,741 205,819
-
Total indebtedness 32,276 30,844 51,117
Short term 12,547 14,059 25,548
Long-term debt relevance stood at 50.0% in 2Q12 versus As % of total debt 38.9% 45.6% 50.0%
54.4% in 1Q12
Long term 19,729 16,785 25,569
As % of total debt 61.1% 54.4% 50.0%
-
Net debt (167,063) (135,897) (154,702)
-
Indebtedness policy remained conservative, with low
weighted-average cost of Company's total debt EBITDA LTM 104,201 111,662 118,007
Net debt /EBITDA LTM -1.6x -1.2x -1.3x
37

38. Appendix
38

39. A
.1 Key performance indicators
Growth or Growth or
Main financial Indicators 2Q11 2Q12 1H11 1H12
spread (%) spread (%)
Net revenue 152,240 199,468 31.0% 290,835 360,829 24.1%
] ]
(-) COGS (86,532) (109,533) 26.6% (168,682) (203,721) 20.8%
Gross profit 65,708 89,935 36.9% 122,153 157,108 28.6%
Gross margin 43.2% 45.1% 1.9 p.p. 42.0% 43.5% 1.5 p.p.
(-) SG&A (38,380) (57,050) 48.6% (74,969) (110,972) 48.0%
% of Revenues 25.2% 28.6% 3.4 p.p. 25.8% 30.8% 5.0 p.p.
(-) Selling expenses (26,085) (40,895) 56.8% (51,250) (75,152) 46.6%
(-) Owned stores (10,163) (18,543) 82.5% (19,647) (34,042) 73.3%
(-) Sales, logistics and supply (15,922) (22,352) 40.4% (31,603) (41,110) 30.1%
(-) General and administrative expenses (11,397) (14,209) 24.7% (22,300) (25,808) 15.7%
(-) Other operating revenues (expenses)¹ 63 (197) n/a 421 (6,846) n/a
(-) Depreciation and amortization (961) (1,749) 82.0% (1,840) (3,166) 72.1%
EBITDA 28,289 34,634 22.4% 49,024 49,302 0.6%
Ebitda Margin 18.6% 17.4% -1.2 p.p. 16.9% 13.7% -3.2 p.p.
Net income 24,039 25,763 7.2% 38,767 36,615 -5.6%
Net margin 15.8% 12.9% -2.9 p.p. 13.3% 10.1% -3.2 p.p.
Working capital² - % of revenues 20.9% 21.8% 0.9 p.p. 20.9% 21.8% 0.9 p.p.
Invested capital³ - % of revenues 24.5% 29.4% 4.9 p.p. 24.5% 29.4% 4.9 p.p.
Total debt 32,276 51,117 58.4% 32,276 51,117 n/a
4
Net debt (167,063) (154,702) -7.4% (167,063) (154,702) n/a
Net debt/EBITDA LTM -1.6 X -1.3 X n/a -1.6 X -1.3 X n/a
39

40. A
.2 Balance Sheet - IFRS
Assets 2Q11 1Q12 2Q12 Liabilities 2Q11 1Q12 2Q12
Current assets 389,423 426,413 441,382 Current liabilities 79,068 103,212 107,458
Cash and cash equivalents 3,261 6,213 4,799
Loans and financing 12,547 14,059 25,548
Short-term investments 196,078 160,528 201,020 Trade accounts payable 37,272 56,126 43,328
Trade accounts receivables 108,576 173,595 150,687 Dividends and interest on equity capital payable 7,177 6,117 9,701
Inventories 67,699 66,099 65,718 Other liabilities 22,072 26,910 28,881
Taxes recoverable 6,196 9,734 7,393
Other receivables 7,613 10,244 11,765 Non-current liabilities 26,365 23,138 29,984
Loans and financing 19,729 16,785 25,569
Non current assets 63,117 94,836 105,507 Related parties 762 879 975
Long-term assets 21,785 17,896 16,135 Other liabilities 5,874 5,474 3,440
Financial investments 66 88 98
Taxes recoverable 3,170 350 360 Equity 347,107 394,899 409,447
Deferred income and social contribution taxes 13,432 10,473 8,705 Capital 40,917 105,917 105,917
Other receivables 5,117 6,985 6,972 Capital reserve 238,086 172,723 172,830
Property, plant and equipment 22,904 37,627 47,693 Income reserves 37,779 105,407 105,407
Intangible assets 18,428 39,313 41,679 Retained Earnings 30,325 10,852 25,293
Total assets 452,540 521,249 546,889 Total liabilities and shareholders‟ equity 452,540 521,249 546,889
40

41. A
.3 Income Statement - IFRS
Growth or Growth or
Income statement - IFRS 2Q11 2Q12 1H11 1H12
spread (% ) spread (% )
Net operating revenue 152,240 199,468 31.0% 290,835 360,829 24.1%
Cost of sales and services (86,532) (109,533) 26.6% (168,682) (203,721) 20.8%
Gross profit 65,708 89,935 36.9% 122,153 157,108 28.6%
Operating income (expenses): (38,380) (57,050) 48.6% (74,969) (110,972) 48.0%
Selling (26,476) (41,811) 57.9% (52,000) (76,818) 47.7%
Administrative and general (11,967) (15,042) 25.7% (23,390) (27,308) 16.8%
Other operating income, net 63 (197) n/a 421 (6,846) n/a
Income before financial results 27,328 32,885 20.3% 47,184 46,136 -2.2%
Financial income (expenses) 3,017 810 -73.2% 4,482 3,195 -28.7%
Income before income taxes 30,345 33,695 11.0% 51,666 49,331 -4.5%
Income and social contribution taxes (6,306) (7,932) 25.8% (12,899) (12,716) -1.4%
Current (5,298) (6,164) 16.3% (7,265) (11,409) 57.0%
Deferred (1,008) (1,768) 75.4% (5,634) (1,307) -76.8%
Net income for the year 24,039 25,763 7.2% 38,767 36,615 -5.6%
Income per share 0.2715 0.2910 7.2% 0.4473 0.4135 -7.5%
41

42. A
.4 Cash Flow Statement - IFRS
Cash Flow Statement - IFRS 2Q11 2Q12 1H11 1H12
Cash flows from operating activities
Income before income and social contribution taxes 30,345 33,695 51,666 49,331
Adjustments to reconcile to net cash generated by operating activities (3,434) 231 (4,423) (2,481)
Depreciation and amortization 961 1,749 1,840 3,166
Financial Investments (3,794) (2,743) (6,885) (6,604)
Interest and FX variation 398 1,336 987 814
Other (999) (111) (365) 143
Decrease (increase) in assets 41,744 23,523 5,095 22,198
Trade accounts receivable 42,262 22,801 23,896 28,795
Inventories (3,114) (108) (18,837) (8,687)
Taxes recoverable 3,297 2,331 2,426 2,796
Variation in other current assets 701 (1,378) (658) (65)
Judicial deposits (1,402) (123) (1,732) (641)
(Decrease) increase in liabilities (19,837) (7,907) 4,481 2,693
Trade accounts payable (13,629) (12,798) 8,528 6,042
Labor liabilities (3,670) 4,100 (2,613) 1,269
Tax and social liabilities (2,165) 1,268 (1,960) (4,347)
Change in other liabilities (373) (477) 526 (271)
Paid incomes and social contribution taxes (5,974) (11,652) (8,340) (11,652)
Net cash generated by operating activities 42,844 37,890 48,479 60,089
Net cash used in investing activities (15,346) (52,221) (191,477) (68,207)
Net cash used in financing activities with third parties (1,707) 18,937 (15,479) 11,644
Net cash used in financing activities with shareholders (29,339) (6,020) 153,734 (14,255)
Increase (decrease) in cash and cash equivalents (3,548) (1,414) (4,743) (10,729)
Increase (decrease) in cash and cash equivalents (3,548) (1,414) (4,743) (10,729)
42

43. 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
43