1. 2Q11 Conference Call
July 29, 2011

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
2Q11 Operational
Performance
Outlooks
3

4. 2Q11 HIGHLIGHTS
Gross revenue of R$ 422.9 million in the quarter (+37.9%);
Double-digit sales growth for all brands;
EBITDA at R$ 97.6 million (+41.2%), with EBITDA margin up 0.8 p.p. to 28.1%;
Net Profit at R$ 77.3 million (+80.8%).
Hering Store Chain:
Total sales of R$ 313.4 million in the quarter (+38.0%);
Same Store Sales growth at 16.3%;
Opening of 83 stores since 2Q10, 25 in the quarter;
Remodeling of 5 stores.
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5. AGENDA
Highlights
2Q11 Operational
Performance
Outlooks

6. SALES PERFORMANCE
Gross Revenue ( R$ million) Domestic Market ( R$ million)
37.9% 422.9 2Q10 2Q11
5.8 R$ 234.3 +36.5% R$ 319.7
306.7
28.0%
4.6 R$ 20.8 +38.7% R$ 28.9
38.1%
417.1 R$ 23.0 +26.5% R$ 29.1
302.1
R$ 18.0 +51.5% R$ 27.2
2Q10 2Q11
Domestic Market Foreign Market Total
In the 2Q11, gross sales reached R$ 422.9 million (+37.9%), sales growth
above 25% in all brands.
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7. STORES CHAIN EVOLUTION
+ 26 stores ( + 25 Hering Stores)
+ 90 stores ( + 83 Hering Stores)
472
446 16
382 15 1
1 77
15 78 3
75 2
350 375
292
2Q10 1Q11 2Q11
Hering Store Hering Kids PUC dzarm. Foreign Franchise Total
In the 2Q11 the Company reached 375 Hering Stores in the domestic market,
a yoy increase of 83 stores.
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8. HERING STORE CHAIN PERFORMANCE
Hering Store Chain Performance 2Q10 2Q11 Chg. 1H10 1H11 Chg.
Number of Stores 292 375 28.4% 292 375 28.4%
Franchise 251 330 31.5% 251 330 31.5%
Owned 41 45 9.8% 41 45 9.8%
Sales (R$ thousand) (1) 227,161 313,449 38.0% 364,524 515,955 41.5%
Franchise 185,827 262,818 41.4% 294,797 428,775 45.4%
Owned 41,334 50,631 22.5% 69,726 87,181 25.0%
Same Store Sales growth (2) 21.7% 16.3% -5.4 p.p 23.5% 19.0% -4.5 p.p
Sales Area (m²) 37,168 48,665 30.9% 37,168 48,665 30.9%
Sales (R$ per m²) 6,186 6,573 6.2% 10,064 11,070 10.0%
Check-Outs 2,244,418 2,829,678 26.1% 4,030,106 5,246,321 30.2%
Units 4,881,751 5,898,040 20.8% 8,867,474 11,137,172 25.6%
Units per Check-Out 2.18 2.08 -4.2% 2.20 2.12 -3.5%
Average Sales Price (R$) 46.53 53.14 14.2% 41.11 46.33 12.7%
Average Sales Ticket (R$) 101.21 110.77 9.4% 90.45 98.35 8.7%
(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 of 16.3% in the 2Q11, mainly driven by the increase in average
sales price, and also by increased stores traffic.
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9. GROSS PROFIT AND EBITDA
Gross Profit and Gross Margin EBITDA and EBITDA Margin
-1.8 p.p.
49.9%
.
48.1%
48.9% -1.7 p.p.
47.2%
+0.8 p.p.
28.1%
27.3%
32.4%
163.7 41.2%
123.6
97.6
69.1
2Q10 2Q11 2Q10 2Q11
Gross Profit % Gross Margin % Cash Gross Margin EBITDA (R$ Million) % EBITDA Margin
(R$ Million)
Despite the pressure of raw material costs, the high operational leverage and
strict expense management led to a 80bps EBITDA margin expansion.
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10. NET PROFIT AND CAPEX
Net Profit (R$ million) Capex (R$ million)
+5.4 p.p.
. 22.3%
16.9%
23.5
80.8% 7.5 47.9%
0.7
77.3 2.8
9.8
42.8 12.5 4.1 0.1
1.3
4.3
2Q10 2Q11 2Q10 2Q11
Net Profit (R$ Million) % Net Margin Indutry IT Others Stores Total
Expressive net profit growth, mainly due to improved operating performance,
non-recurring effects of R$ 4.8 million related to taxes, as well as the
establishment of investment grants.
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11. CASH FLOW
Cash Flow - Consolidated (R$ thousand) 2Q10 2Q11 Chg.
EBITDA 69,074 97,550 28,476
No cash items 141 674 533
Current Income tax and Social Contribution (23,134) (26,900) (3,766)
Working Capital Capex (9,287) (21,380) (12,093)
(Increase) in trade accounts receivable (47,376) (47,156) 220
Decrease in inventories 1,006 7,116 6,110
Increase in accounts payable to suppliers 15,639 3,463 (12,176)
Increase in taxes payable 10,250 9,049 (1,201)
Others 11,194 6,148 (5,046)
CapEx (23,488) (9,801) 13,687
Free Cash Flow 13,306 40,143 26,837
Reconciliation from accounting Cash flow to adjusted Cash flow (R$ thousand) 2Q10 2Q11 Chg.
DFC - Cash provided by operating activities 37,968 59,691 21,723
Adjustment – Financial items allocated to operating cash (1,174) (9,747) (8,573)
Unrealized exchange and monetary variation (1,370) (1,201) 169
Financial Result (1,263) (9,691) (8,428)
Interest paid on loans 1,459 1,145 (314)
DFC - Cash flows from investing activities (23,488) (9,801) 13,687
Free Cash Flow 13,306 40,143 26,837
Increase of R$ 26.8 million in free cash flow, mostly due to EBITDA growth,
lower investments and increased working capital needs.
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12. INDEBTEDNESS
Net Debt ( R$ million) Short Term x Long Term
4.6
3.5
Curto
0.1 (0.2) (0.3) Prazo
(0.7) (0.2)
59.3%
201.3 Longo
184.6
Prazo
40.7%
11.0
(33.4) (25.1)
(61.9) (86.5)
Gross Debt = R$ 44.4 million
2005 2006 2007 2008 2009 2010 2Q11
Net Debt/ EBITDA*
* Last 12 months
In 2Q11, Cia Hering’s debt increased by R$ 12.7 million, mostly due to cash
generation, net of shareholders remuneration paid during the period.
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13. AGENDA
Highlights
2Q11 Operational
Performance
Outlooks
13

14. OUTLOOKS
Hering Brand - high growth potential yet to be explored:
Hering Store chain – store openings and same store sales growth.
Goal to reach at least 418 stores by the end of 2011.
In the multibrand retail channel, strategy focused on continued improvement of distribution, seeking
increased market share in existing clients.
Children’s market:
Continuity of the strategy that reinforces the brand positioning for Hering Kids at the "Value and
Moderate" segment and, for PUC, at the "Better and Premium“ market segment.
Launch of two more Hering Kids pilot stores.
Analysis of the Hering Kids pilot project and further definition of expansion possibilities.
Continuity of the dzarm. strategy, with the launch of collections in the casual jeans concept, supported by
marketing campaigns with celebrities.
In the online channel, logistic and technological infraestructure improvement and webstores remodeling.
Reduced pressure of raw material costs, combined with the dilution of operating expenses, should
contribute to the expansion of EBITDA margins for the remaining of 2011.
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15. INVESTOR RELATIONS TEAM
Fabio Hering – CEO
Frederico Oldani – CFO and IRO
Karina Koerich – IR Manager
Admar A. Topazio Junior – IR Analyst
Tel. +55 (47) 3321-3469
E-mail: ri@hering.com.br
Website: www.ciahering.com.br/ir