| Apresentao do Roadshow 4Q10 and 2010 Conference Call 1 Important - PowerPoint PPT Presentation

| Apresentação do Roadshow 4Q10 and 2010 Conference Call 1

Important Disclaimer The information contained here may include forward-looking information and reflects the executive office’s current perception and prospects for the macroeconomic environment, the industry situation, the Company's performance and financial results. Any statements, expectations, capacities, plans and projections contained here which do not describe historical facts, such as information about the dividend payment statement, the future course of operations, the introduction of relevant financial strategies, the investment program and the factors or trends affecting the financial condition, liquidity or the operating results are considered forward-looking information as defined by the “U .S. Securities Litigation Reform Act” of 1995 and involve a number of risks and uncertainties. These results are not guaranteed to materialize. These statements are based on several factors and expectations, including the economic and market conditions, level of competition in the industry and operating factors. Any changes in these expectations and factors may lead to real results materially different from the current expectations. The consolidated financial information of Arezzo Indústria e Comércio S/A – Arezzo&Co presented here complies with the International Financial Reporting Standards – IFRS, issued by the International Accounting Standards Board – IASB, based on audited financial information. The non-financial information, as well as other operating information, was not audited by the independent auditors. 2

4Q10 and 2010 Highlights Net Net Revenues increased by 26.6% in 4Q10 and 38.7% year-over-year Revenues Area 33 new stores in 2010 , leading to a 296 store chain at 2010-close. Sales area expanded by Expansion 17.7% in 2010 17.7% EBITDA Margin in 4Q10. In 2010, EBITDA amounted to R$95.5 million , a 57.7% year- EBITDA over-year rise combined with 16.7% margin Net Income Net Income amounted to R$64.5 million, up 32.4% from 2009 ROIC ROIC stood at 42.5% in 2010, compared to 39.9% in 2009 3

Company Growth Gross Revenues – DM¹ and EM² (R$ milllion) 712.9 39.0% 50.4 14.0% 513.0 44.2 662.5 28.0% 218.9 41.3% 171.0 468.8 13.9 34.4% 10.4 27.5% 204.9 160.7 4Q09 4Q10 2009 2010 DM EM The Company’s Gross Revenues amounted to R$712.9 million, a 39.0% year -over-year rise ¹ DM:Domestic Market. 4 ² EM: Export Market.

Gross Revenues Breakdown by Channel Gross Revenues by channel – Domestic Market (R$ million) 662.5 5.4 41.3% 188.4 468.8 40.9% 3.7 110.0 133.7 56.2% 27.5% 70.4 204.9 160.7 26.1% 0.3 37.5% 358.7 56.0 1.6 44.4 34.9% 37.5 260.9 27.8 27.9% 111.1 86.8 4Q09 4Q10 2009 2010 SSS² Franchises Own Stores Multi-Brand Others - DM¹ Own Stores 48.2% 4.7% 28.9% 17.6% Franchise 13.0% 17.2% 3.7% 29.1% Significant growth among all the distribution channels, both in 4Q10 and 2010 ¹Others: Others channels in Domestic Market. Growth of -79,8% and 46,5% from 4Q09-4Q10 and 2009-2010. 5 ²SSS Own Stores (Sell out); SSS Franchisees (Sell In).

Gross Revenues Breakdown by Brand Gross Revenues by brand – Domestic Market (R$ million) 662.5 10.2 41.3% 173.1 468.8 6.9 111.1 55.8% 204.9 27.5% 160.7 36.6% 479.2 1.9 2.2 53.7 350.8 30.5% 41.1 27.3% 149.4 117.4 4Q09 4Q10 2009 2010 Arezzo - DM Schutz - DM Other Brands - DM¹ Strong growth for the main brands with special performance delivered by Schutz, presenting a 55.8% year-over-year gross revenues increase 6 ¹Others: Other Brands in Domestic Market. Growth of -13,8% and 49,1% from 4Q09-4Q10 and 2009-2010

Distribution Channel Expansion Own Stores and Franchises Expansion Note: area given in thousand m² 266 franchises+ 10 Own Stores + 17.6 17.7% 3 outlets + 12.5% 14.9 715 Multi-brand clients 13.2% 13.3 296 +33 11.7 TOTAL 263 29 +26 1 franchise + 237 267 Franchises 21 +23 10 Own Stores + 214 10 + 26 Own Stores 1343 Multi-brand clients 6 + 3 outlets + 1,585 Multi-brand clients 267 1 Own Stores + 242 208 227 = 1,881 points of sale 18 Multi-brand clients 5 Own Stores 2007 2008 2009 2010 Franchisees Own Stores Area We ended 2010 with a 296 store chain. Sales area expanded by 17.7%, totaling an increase of 2.6 thousand m² 7

Gross Profit and Gross Margin Gross Income (R$ million) and Gross Margin (%) 41.7% 40.5% 40.5% 39.0% 231.6 38.9% 166.8 68.2 18.3% 57.6 4Q09 4Q10 2009 2010 Gross Margin in 4Q10 decreased by 2.7 p.p. as a result of exports margin fluctuation and year-end CRM initiatives. In 2010 Gross Margin stood stable compared to 2009 8

EBITDA and EBITDA Margin EBTIDA (R$ million) and EBITDA Margin (%) 17.7% 16.7% 15.3% 14.7% 95.5 57.7% 60.5 31.0 47.1% 21.1 4Q09 4Q10 2009 2010 Expressive EBITDA and EBITDA Margin growth, both in 4Q10 and 2010 (2.47 p.p. and 2.02 p.p, respectively) 9

Net Income and Net Margin Net Income (R$ million) and Net Margin (%) 15.2% 12.3% 11.8% 11.3% 64.5 32.4% 48.7 20.9 21.5 2.8% 4Q09 4Q10 2009 2010 2010 Net Income amounted to R$64.5 million, a year-over-year increase of 32.4% 10

Cash Generation Operating Cash Generation (R$ thousand) Cash flows from operating activities 4Q09 4Q10 Variation 2009 2010 Dif. Income before income taxes 20,085 29,531 9,446 58,852 89,289 30,437 Depreciation and amortization 483 823 340 1,655 2,670 1,015 Other (1,560) 976 2,536 (7,261) 1,735 8,996 Decrease (increase) in assets (13,752) (24,533) (10,781) (25,743) (57,730) (31,987) Trade accounts receivable (14,405) (20,709) (6,304) (13,218) (29,170) (15,952) Inventories 3,125 2,536 (589) (6,914) (27,657) (20,743) Recoverable taxes (1,333) (5,410) (4,077) (1,810) (4,063) (2,253) Other current assets (391) (510) (119) (2,387) 3,108 5,495 Judicial deposits (335) (491) (156) (1,382) 47 1,429 Other receivables (413) 51 464 (32) 5 37 (Decrease) increase in liabilities 3,917 (5,700) (9,617) 24,889 9,035 (15,854) Trade accounts payable (7,652) (14,615) (6,963) 12,483 (330) (12,813) Labor liabilities 5,314 (2,084) (7,398) 6,052 2,843 (3,209) Tax and contributions 6,194 10,696 4,502 6,077 7,719 1,642 Other current liabilities 61 303 242 277 (1,197) (1,474) Tax and contributions (2,966) (11,695) (8,729) (12,481) (24,542) (12,061) Net cash generated by operating activities 6,207 (10,598) (16,805) 39,911 20,457 (19,454) Operating cash consumption in 4Q10 is a result of the increase of sales and higher working capital needs due to strategic inventories and imports 11

Capital Expenditure (CAPEX) CAPEX (R$ million) 15.4 1.7 11.1 0.3 5.8 1.9 6.1 5.8 0.4 0.1 0.9 8.9 3.0 7.9 4.7 2.7 4Q09 4Q10 2009 2010 Own Stores Corporate Others In 2010, capital expenditure amounted to R$15.4 million, out of which R$7.9 million in Own Stores expansion 12

ROIC ROIC¹ (%) 42.5% 39.9% +2.6 p.p 2009 2010 Increase of 2.6pp in ROIC as a result of our conservative business model and capital discipline 13 ¹ Return over Invested Capital

Perspectives We are confident on 2011 perspectives:  Expansion plan with 38 new openings in 2011;  Arezzo brand continues to perform as expected:  Increase of Same Stores productivity;  Area expansion of existing stores;  Ongoing product line diversification growth;  Launch of Schutz Go-to-Market project:  Assess full potential of retail and Own Stores and Franchises’ strategy;  Increase share-of-wallet and capillarity within Multi-Brand distribution channel;  Launch of Anacapri Multi-Brand distribution initiative and Own Store pilot project maturation. 14

Contacts CFO and IR Officer  Thiago Borges IR Manager  Daniel Maia Phone: +55 11 2132-4300 ri@arezzoco.com.br www.arezzoco.com.br 15