The document discusses Cia. Hering's 4Q08 and full year 2008 operating performance. Some key highlights include gross revenue increasing 53.0% in the domestic market in 4Q08, with Hering brand sales rising 63.7%. For the full year, domestic market revenue grew 52.5% led by a 64.3% increase in Hering brand sales. The number of Hering stores increased by 27.1% in 2008, with same store sales growth of 32.4%. Adjusted EBITDA margin expanded to 31.6% in 4Q08 from 19.6% in 4Q07.

1. 1

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.
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3. AGENDA:
• Highlights
• Operating Performance
• Business Strategy and Outlook

4. 4Q08 Highlights
CIA. HERING ENDS UP 4Q08 WITH GROWTH
• Gross revenue in domestic market increased 53.0%
• Hering brand sales rose 63.7%
• Same-store sales growth of 29.1% in the Hering Stores
• Ajusted EBITDA Margin of 31.6% (Comparable EBITDA Margin: 23.1%)
CONTINUED GROWTH PLAN
• 21 Hering Stores opened in the 4Q08 with the new architectural project
• Marketing campaign “eu uso Hering…” with new celebrities
• Actions focused on store operating performance optimization
• New store architectural project for PUC brand
• New business plan for dzarm. brand
SUSTAINABLE GROWTH
• Capex of R$ 10.5 million 4

5. AGENDA:
•Highlights
• Operating Performance
• Business Strategy and Outlook

6. Gross Revenue (R$ million)
By Market
629.2
33.0
596.2
200.6 42.1%
43.9% 5.1
442.6
Foreign
195.5 Market 51.7
391.0
139.4
11.6
36.2%
55.4%
127.8
Domestic
Market 52.5%
53.0%
4Q07
4Q07 4Q08
4T08 12M07 12M08
Domestic Market represented 94.7% of the total gross revenue in 2008.
6

7. Gross Revenue – Domestic Market (R$ million) – 4Q08
By Brand By Distribution Channel
195.5
53.0% Others
3.9
11.7 dzarm
19.8 195.5
PUC
200
127.8 160.0 99.3
3.3 2.0% Multi-
11.5 150 127.8
Brand
15.3
29.7% Hering 63.0 57.7%
97.7
100
96.2
63.7% Franchise/
50 64.8
Own Store
48.4%
0
4Q07 4Q08 4Q07 4Q08
Multi-brand sales rose more than the franchises and own
stores together.
7

8. Gross Revenue – Domestic Market (R$ million) – 2008
By Brand By Distribution Channel
596.2 596.2
52.5% 600
Others
12.9 314.2
47.6 dzarm
61.9 500
PUC
391.0 473.8
391.0
400 44.9%
10.9 8.8% 216.9 Multi-
43.7 Brand
48.0 29.2% 300
Hering
288.4
200
64.3% Franchise/
282.0
100 174.1 62.0% Own Store
0
12M07 12M08 12M07 12M08
Relevant growth for Hering brand and Franchise and Own
Store in the domestic market.
8

9. Gross Revenue – Foreign Market (R$ million) – 4Q08
Private Label vs. Own Brands By Destination
11.6
7.5 11.6
55.4%
4.2
100.0%
5.2 Private 5.2
Label 3.6 North America
5.2 -
4.1 26.8% 2.5 Mercosul
Own 1.0
Brands Europe
2.0 2.1 Latin America
0.8 0.5
Others
4Q07 4Q08 4T07
4Q07 4Q08
4T08
Own brands are the Export focus .
9

10. Gross Revenue – Foreign Market (R$ million) – 2008
Private Label vs. Own Brands By Destination
53 51.6
51.6
35.9 36.0%
43
18.4
33.0 33.0
33 59.9%
14.4
Private 6.7 North America
23 Label 15.4
Mercosul
18.6 18.5
Own 5.9
13 15.7
Brands Europe
18.2%
8.1 1.1 Latin America
3 5.1 Others
3.8 1.6
12M07 12M08 12M07 12M08
-7
Descontinuity of the private label production had an
impact on the export commercial results in 2008.
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11. Gross Profit and EBITDA (R$ million) – 4Q08
Gross Profit and Gross Margin Ajusted EBITDA and Adjusted EBITDA Margin
6.5 p.p. 12.0 p.p.
51.0%
44.5% 31.6%
83.2
51.5
19.6%
51.4 61.8%
127.5%
22.7
4Q07
4T07 4Q08
4T08 4Q07
4T07 4Q08
4T08
More participation of the own stores and cost dilution rose
up the gross profit and EBITDA margins. 11

12. Gross Profit and EBITDA (R$ million) – 2008
Gross Profit and Gross Margin Ajusted EBITDA and Adjusted EBITDA Margin
7.0 p.p. 46.3%
238.5 6.7 p.p.
39.4%
20.5%
145.3 64.2% 13.8%
105.4
106.3%
51.1
12M07 12M08 12M07 12M08
EBITDA growth reflects the increase in revenue of the domestic market and the
improvement of the Company’s operating margins. The reversals in 2008 for
expense and tax provisions set up in previous years also impacted this growth. 12

13. Comparable EBITDA and EBITDA Margin (R$ million)
127.5% 106.3%
31.6% 20.5% 79.2%
17.8%
66.4%
105.4
23.1% 13.8% 13.8%
91.5
19.6% 19.6%
51.5
51.1 51.1
37.7
22.7 22.7
EBITDA
Adjusted EBITDA EBITDA comparável
Comparable EBITDA EBITDA
Adjusted EBITDA EBITDA comparável
Comparable EBITDA
4T07
4Q07 4T08
4Q08 2007 2008
Significant Comparable EBITDA growth of 79.2% even without
considering the impacts neither of Law no. 11,638 nor of the
reversals in 2008 for expense and tax provisions set up in previous
years. 13

14. Stores Distribution
Brands present in 23 brazilian states with 230 Hering Store, 59
PUC Stores and 14,748 multi-brand clients. 14

15. Hering Store Expansion
Expansion Plan
325
57
268
38
230
181
151
* *
* estimated Franchise Own Stores
Review of the Hering own Stores opening, adapting the priorities to
the expansion and remodeling of the existing stores, as well as
possible acquisitions of franchises.
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16. Distribution Network (number of stores)
Distribution Network Evolution
Goal: 57
311
22
248
59
23
209
19 44
Goal: 224
39
Goal: 172
230
181
151
2006 2007 2008
Hering PUC Abroad
Cia. Hering surpassed the opening plan in 6 Hering
Stores and 2 PUC stores estimated for the year.
16

17. Expansion 2008 – Franchise
Period State City Location Status
Status
1Q08 PI Teresina Shopping Riverside Walk Opened
1Q08 SP São Paulo Bourbon Shopping Pompéia Opened
2Q08 SP São Paulo Rua Dr. Diogo de Farias Opened
1Q08
2Q08 SP Santa B.D'Oeste Tivoli Shopping Opened
2Q08 SP São Paulo Rua Juventus Opened 2 Franchises Opened
2Q08 MG Juiz de Fora Independência Shopping Opened
2Q08 SP Guaratinguetá Shopping Buriti Guará Opened
2Q08 PB João Pessoa Shopping Tambiá Opened 2Q08
2Q08 SE Aracaju Shopping Jardins Opened 10 Franchises Opened
2Q08 PR Maringá Shopping Avenida Center Opened
2Q08 PE Caruaru Shopping Caruaru Opened
2Q08 DF Brasília Liberty Mall Opened 3Q08
3Q08 MG Divinópolis Rua A.Olimpio de Morais Opened
10 Franchises Opened
3Q08 SP Botucatu Rua Monsenhor Ferrari Opened
3Q08 SC Florianópolis Floripa Shopping Opened
3Q08 SP São Vicente Brisamar Shopping Opened
3Q08 SP Campinas Campinas Shopping Opened
3Q08 BA Feira de Santana Shopping Iguatemi Opened
3Q08 MG Patos de Minas Rua Agenor Maciel Opened
3Q08 SP Jau Rua Amaral Gurgel Opened
3Q08 PR S. José dos Pinhais Shopping São José Opened
3Q08 SP São Paulo Rua Bernardino de Campos Opened
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18. Expansion 2008 – Franchise
Period State City Location Status
Status
4Q08 SP São Paulo Shopping Metrô Blvd. Tatuapé Opened
4Q08 SP São Paulo Rua Min. Roberto Cardoso Alves Opened
4Q08 PE Recife Shopping Plaza Casa Forte Opened 4Q08
4Q08 SP Votuporanga Rua Pernambuco Opened
21 Franchises Opened
4Q08 SC Criciuma Shopping Della Giustina Opened
4Q08 MG Três Corações Rua Julião Arbex Opened
4Q08 GO Rio Verde Shopping Rio Verde Opened
4Q08 SP Limeira Center Plaza Shopping Opened
4Q08 SC Jaraguá do Sul Shopping Center Breithaupt Opened
4Q08 MG Montes Claros Montes Claros Shopping Center Opened
4Q08 SP São Paulo Shopping Central Plaza Opened
4Q08 RO Porto Velho Porto Velho Shopping Opened
4Q08 RS Porto Alegre Barra Shopping Sul Opened
4Q08 MG Sete Lagoas Rua Santa Helena Opened
4Q08 GO Anápolis Brasil Park Shopping Opened
4Q08 SC Itajaí Itajaí Shopping Opened
4Q08 MG Uberaba Rua Arthur Machado Opened
4Q08 PR Curitiba Shopping Jardins das Américas Opened
4Q08 PR Londrina Royal Plaza Shopping Opened
4Q08 SP Pindamonhangaba Rua Bicudo Leme Opened
4Q08 SP Taubaté Taubaté Shopping Opened
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19. Expansion 2008 – Own Stores
Period State City Location Status
2Q08 RJ Rio de Janeiro Ilha Plaza Shopping Opened Status
2Q08 SP São Paulo Shopping Taboão Opened
2Q08 PR Curitiba Palladium Shopping Center Opened 2Q08
3Q08 SP São Paulo Shopping Penha Opened 3 Stores Opened
3Q08 SP São Paulo Shopping Metrô Itaquera Opened
3Q08 RJ Rio de Janeiro Shopping Tijuca Opened
3Q08
3Q08 PR Curitiba Rua XV de Novembro Opened
4 Stores Opened
4Q08 RJ Rio de Janeiro Shopping Grande Rio Opened
4Q08
1 Store Opened
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20. Hering Store Indicators
Hering Store Performance 4Q07 4Q08 Var. 2007 2008 Var.
Number of Stores 181 230 27.1% 181 230 27.1%
Franchise 156 193 23.7% 156 193 23.7%
Own 25 37 48.0% 25 37 48.0%
Sales (R$ thousand) 108,242 169,028 56.2% 276,121 438,844 58.9%
Same Store Sales Growth 29.0% 29.1% 0.1 p.p. 29.0% 32.4% 3.4 p.p.
Sales Area (m²) 24,106 29,791 23.6% 24,106 29,791 23.6%
Sales (R$ per m²) 4,619 5,776 25.0% 12,625 16,256 28.8%
Check-Outs 1,380,553 2,040,928 47.8% 3,353,403 5,225,865 55.8%
Units 3,303,859 4,760,440 44.1% 7,973,839 12,222,332 53.3%
Average Sales Ticket (R$) 78.40 82.82 5.6% 82.34 83.98 2.0%
Sales per square meter in 2008 reached its goal of R$ 16,100/ m².
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21. Capex (R$ million)
By activity
35.8
35 1.2
6.1
30 25.3
10.3 10.5
25
Others 0.3
4.7
IT 13.0
10 0,1
1,7
0,4
1,2
20
Stores
8 2,2
5,5 15 11.8 15.5
6 6,6
10
4
8.4
2 3,1 5
Industry
0 0
4Q07 4Q08
2007 2008
In 2008, capex was mainly for store remodeling and
opening as well as updating of industrial technology.
21

22. Indebtedness
Indebtedness Evolution Short Term X Long Term
201.3
184.6 Short Term
58%
Long Term
42%
4,6
3,8
11.0
.-0,7
0.1 Total Debt= R$ 145.1 million
2005 2006 2007 2008
-33.4
Net Debt/EBITDA*
Net Debt (R$ million)
* Last 12 months EBITDA
22

23. Financial Result
R$ thousand 2007 2008 Var.
Net Financial Expenses (30,571) (42,345) 38.5%
Net Foreign Exchange Variation 13,198 (3,894) -129.5%
Total Financial Expenses (17,373) (46,239) 166.2%
- In 2008, Law no. 11,638/07 changed the method of measuring financial
instruments, generating an atypical effect in the financial expense.
-On 12/31/08, Cia. Hering registered an expense of R$ 46.7 million as derivatives’
fair value.
- Main derivative: Swap with 19 verifications (Apr/09 to Oct/10), amounts between
R$ 25 to 30 million, with effective losses if the exchange rate rises above R$/US$
2.80.
- The Company is actively monitoring the exchange market in order to minimize
the exchange risk arising from derivative transactions.
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24. Payment to Shareholders
Interest on Shareholders Equity
Payment amounting to R$ 4.8 million (R$0.09/share) on February 22, 2008,
related to the year ended on December 31, 2007;
Payment amounting to R$ 4.8 million (R$ 0.09/share) on September 19,2008,
related to the year ended on December 31, 2008.
Dividends
The payment of dividends amounting to R$ 10.6 million (R$ 0.19616/share),
related to the year ended on December 31, 2008, will be proposed at the
General Shareholders’ Meeting to be held on April 28, 2009.
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25. AGENDA:
• Highlights
• Operating Performance
• Business Strategy and Outlook

26. Strategy & Outlook
Hering Store chain
Continue expansion plan – 325 stores by the end of 2010
Maximize operation performance
– Store space allocation review and optimization
– Automatic replenishment for basic items
– Fast response for best sellers
– Continuous promotional sales for slow movers
Promote the Hering Store credit card
Marketing campaign “eu uso Hering desde sempre”
New architectural project for the PUC Stores
Implementation of dzarm. brand relaunching plan
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27. Investor Relation Team
Fabio Hering – Vice President and IR Director
Frederico de Aguiar Oldani – Financial Director
Karina Koerich – IR Manager
Gracila Camargo Lopes – IR Analyst
Tel.: +55 (47) 3321-3469
3321-
E-mail: ri@heringnet.com.br
mail:
Website:
Website: www.ciahering.com.br/ir
Investor Relations Consulting Firm
FIRB – Financial Investor Relations Brasil
Ligia Montagnani – IR Consultant
Tel: +55 (11) 3897-6857
E-mail: ligia.montagnani@firb.com
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