1. 4Q11 Results
Conference Call
March 02, 2012

2. DISCLAIMER
This presentation contains forward-looking statements regarding the
prospects of the business, estimates for operating and financial results, and
those regarding Cia. Hering's growth prospects. These are merely projections
and, as such, are based exclusively on the expectations of Cia. Hering
management concerning the future of the business and its continued access
to capital to fund the Company’s business Plan. Such forward-looking
statements depend, substantially, on changes in market conditions,
government regulations, competitive pressures, the performance of the
Brazilian economy and the industry, among other factors and risks disclosed
in Cia. Hering’s filed disclosure documents and are, therefore, subject to
change without prior notice.

3. AGENDA
Highlights
4Q11 Operating
Performance
Outlook

4. 4Q11 HIGHLIGHTS
 Gross revenue of up 22.6% in the quarter and 33.4% in 2011;
 Double-digit sales growth for all brands; with highlight to the performance of Hering (+20.9% in 4Q11
and +31.8% in 2011)
 EBITDA of R$ 394.5 million, with EBITDA margin of 29.1% in 2011;
 Net Profit of R$ 297.3 million (+40.2%).
 Hering Store Chain:
 85 store openings and 31 remodelings in 2011, with a network of 432 stores at the end of the year
 Total sales of R$ 1,235.0 million in the year (+33.4% overall growth and 12.7% SSS growth);
 New guidance for store openings - 507 by the end of 2012
 Hering Kids:
 Launch of the expansion of the Hering Kids network, with guidance of 20 stores openings
throughout 2012
4

5. AGENDA
Highlights
4Q11 Operating
Performance
Outlook

6. SALES PERFORMANCE
Gross Revenue ( R$ million)
1,647.3
33.4%
1,235.1 21.4
1.0%
21.2
407.4 22.6% 499.3
33.9%
-15.7%
1,625.9
3.8 3.2 1,214.0
22.9%
403.6 496.1
4Q10 4Q11 12M10 12M11
Domestic Market Foreign Market Total
Gross sales reached R$ 1.6 billion in 2011, with sales growth of 22.6% and 33.4% in
the quarter and year, respectively.
6

7. SALES PERFORMANCE (cont.)
Domestic Market ( R$ million)
2010 2011
R$ 941.1 +31.8% R$ 1,240.5 Hering
Kids
R$ 82.2 7%
+41.6% R$ 116.4 Hering
76%
R$ 98.8 +26.3% R$ 124.7
PUC
8%
R$ 68.9 +42.2% R$ 98.0 dzarm.
Other 6%
3%
Double-digit sales growth in all brands, in 4Q11 and 2011, with highlight to the
performance of the Hering brand (+20.9% and +31.8%).
7

8. STORES CHAIN EVOLUTION
530
16
443 1
76
15
365 1 5
78
311 15
2
248 22 74 Goal: 418
59 Goal: 325 (+14 stores)
23
Goal: 224 Goal: 273 (+22 stores) 432
44 (+3 stores)
(+6 stores) 347
276
230
181
2007 2008 2009 2010 2011
Hering Store Hering Kids PUC dzarm. Foreign - Franchised Total
In the domestic market, the Company ended 2011 with 432 Hering Stores, 76 PUC, 5
Hering Kids and 1 dzarm. store.
8

9. HERING STORE CHAIN PERFORMANCE
Hering Store Chain Performance 4Q09 4Q10 Chg. 12M10 12M11 Chg.
Number of Stores 347 432 24.5% 347 432 24.5%
Franchise 304 384 26.3% 304 384 26.3%
Owned 43 48 11.6% 43 48 11.6%
(1)
Sales (R$ thousand) 366,403 461,680 26.0% 926,021 1,234,956 33.4%
Franchise 298,393 388,183 30.1% 751,722 1,033,495 37.5%
Owned 68,010 73,496 8.1% 174,299 201,461 15.6%
Same Store Sales growth (2) 20.8% 8.2% -12.5 p.p. 24.4% 12.7% -11.7 p.p
Sales Area (m²) 44,815 57,507 28.3% 44,815 57,507 28.3%
Sales (R$ per m²) 8,410 8,200 -2.5% 23,638 24,361 3.1%
Check-Outs (thousand) 4,098 4,773 16.5% 10,324 12,647 22.5%
Units (thousand) 9,237 10,164 10.0% 23,029 26,912 16.9%
Units per Check-Out 2.25 2.13 -5.5% 2.23 2.13 -4.6%
Average Sales Price (R$) 39.67 45.42 14.5% 40.21 45.89 14.1%
Average Sales Ticket (R$) 89.41 96.72 8.2% 89.69 97.65 8.9%
(1)
The amounts referred to the sales to final costumers. (sell out concept)
(2)
Compared to the same period of the previous year
SSS growth decelerated to 12.7% in 2011 vs the previous year due to a more
challenging environment as well as high comparison basis, and it was mainly driven by
the increase in average sales ticket.
9

10. GROSS PROFIT AND GROSS MARGIN
-0.7 p.p.
52.6% 51.9%
-0.5 p.p.
51.5% 51.0% -1.1 p.p.
50.6%
-1.0p.p.
49.5%
49.5%
48.5%
30.7%
655.9
22.1% 501.9
170.5 208.2
4Q10 4Q11 12M10 12M11
Gross Profit (R$ Million) Gross Margin (%) Cash Gross Margin (%)
Gross margin declined by 1.1 p.p. in the year because of raw material price pressures.
10

11. EBITDA AND EBITDA MARGIN
+1.7 p.p. 32.8%
31.1%
27.3% +1.9 p.p. 29.1%
42.7%
394.5
276.5
30.0%
102.9 133.8
4Q10 4Q11 12M10 12M11
EBITDA (R$ Million) EBITDA Margin (%)
The high operational leverage and strict expense management led to a 1.9 p.p.
EBITDA margin expansion.
11

12. NET PROFIT
30.5% - 4.7 p.p.
25.8%
+1.0 p.p.
20.9% 22.0%
40.2%
297.3
4.4% 212.0
100.8 105.2
4Q10 4Q11 12M10 12M11
Net Profit (R$ Million) Net Margin (%)
Net profit growth due to better operating performance, adjustment to present value
(AVP) and lower income tax as a result of the constitution of grants for investment.
12

13. CAPEX
By Activity ( R$ million)
71.0
12.1 -33.1%
2.2
8.1 47.5
10.1
1.7
5.9%
17.6 18.6 48.6 13.4
2.7 2.8 1.2
0.6
2.6 7.3 22.3
11.6 7.2
4Q10 4Q11 12M10 12M11
Industry IT Others Stores
Capex in 2011 totaled R$ 47.5 million of which R$ 22.3 million was aimed at the
industrial area, R$ 13.4 million at IT and R$ 10.1 million was invested in stores.
13

14. CASH FLOW
Cash Flow - Consolidated (R$ thousand) 4Q10 4Q11 Chg. 12M10 12M11 Chg.
EBITDA 102,896 133,808 30,912 276,500 394,464 117,964
No cash items 1,833 680 (1,153) 3,086 2,322 (764)
Current Income tax and Social Contribution (4,553) (35,814) (31,261) (49,332) (100,840) (51,508)
Working Capital Capex (76,421) (21,162) 55,259 (82,027) (58,470) 23,557
(Increase) in trade accounts receivable (68,472) (71,447) (2,975) (79,965) (66,445) 13,520
(Increase) decrease in inventories (43,106) 5,747 48,853 (100,374) (26,965) 73,409
Increase in accounts payable to suppliers 20,299 13,118 (7,181) 68,400 2,088 (66,312)
Increase (decrease) in taxes payable (6,211) 20,884 27,095 10,827 36,911 26,084
Others 21,069 10,536 (10,533) 19,085 (4,059) (23,144)
CapEx (17,585) (18,606) (1,021) (69,629) (47,501) 22,128
Free Cash Flow 6,170 58,906 52,736 78,598 189,975 111,377
Reconciliation from accounting Cash flow to adjusted Cash flow (R$ thousand) 4Q10 4Q11 Chg. 12M10 12M11 Chg.
DFC - Cash provided by operating activities 28,435 87,629 59,194 157,763 267,341 109,578
Adjustment – Financial items allocated to operating cash (4,680) (10,117) (5,437) (9,536) (29,865) (20,329)
Unrealized exchange and monetary variation (1,595) (966) 629 (6,308) (4,679) 1,629
Financial Result (4,526) (10,193) (5,667) (10,111) (29,696) (19,585)
Interest paid on loans 1,441 1,042 (399) 6,883 4,510 (2,373)
DFC - Cash flows from investing activities (17,585) (18,606) (1,021) (69,629) (47,501) 22,128
Free Cash Flow 6,170 58,906 52,736 78,598 189,975 111,377
* Dividend distribution: R$106.2 million have been destined to a proposed account to be distributed upon General
Shareholders’ Meeting approval.
Increase of R$ 111.4 million in free cash flow, mostly due to EBITDA growth,
and lower investments and working capital needs.
14

15. INDEBTEDNESS
Net Debt ( R$ million) Short Term x Long Term
4.6
3.5
0.1
-0.2 -0.2
-0.7 -0.4
201.3 184.6 Short Long
Term Term
33.8% 66.2%
11.0
-33.4 -25.1
-61.9 -165.9
2005 2006 2007 2008 2009 2010 2011 Gross Debt = R$ 34.9 million
Net Debt/ EBITDA*
* Last 12 months EBITDA
Due to the increased operating cash flow, Cia. Hering increased its net cash
position by R$ 104.0 million in 2011 and reduced its debt by R$ 6.6 million.
15

16. AGENDA
Highlights
4Q11 Operating
Performance
Outlook

17. OUTLOOK
 Positive perspectives for 2012, despite more challenging scenario for short term.
 Organic growth potential
 Reduction of raw material costs
 Hering Brand still with high growth potential, although not in the same levels that it has
been posting during the last few years:
 Stores opening (guidance of 75 in 2012) and SSS growth in Hering Store chain
 Multibrand retail channel: continuous market share increase in existing clients
through distribution specialization.
 Children’s market:
 Share increase in the multibrand channel with Hering Kids and PUC brands.
 Expansion of the Hering Kids format – potential of 200 to 250 stores with a size
of 60 m2 and initial plan of opening 20 stores in 2012
 Adjustments in PUC chain, with discontinuation of a few other operations.
 Maintenance of the dzarm. Strategy, investing in the brand though the opening of more
flagship stores and marketing.
 New technological and logistical infrastructures for online sales
 Re-launch of the webstores 17

18. INVESTOR RELATIONS TEAM
Fabio Hering – CEO
Frederico Oldani – CFO and IRO
Patrícia Salem – IR Manager
Tel. +55 (11) 3371-4867
E-mail: ri@hering.com.br
Website: www.ciahering.com.br/ri