| Apresentação do Roadshow As of September 2014 November 2014 1
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
| Company overview
1 .1 Platform of brands of reference Arezzo&Co is the leading Company in the footwear and accessories industry through its platform of Top of Mind brands 4
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 the footwear Development of Asset light: high Strong cash Controlling and accessories collections with operational generation and shareholders are industry with efficient supply efficiency high growth reference in the presence in all chain sector Brazilian states Net revenues CAGR: 10.4 million pairs of shoes (1) ~11,500 models created 91% outsourced production 27.9% (2007- 3Q14 1 ) per year More than 42 years of 746 thousand handbags (1) experience in the sector ROIC of 23.5% in 3Q14 Net Profit CAGR: 32.4% Lead time of 40 days (2007- 3Q14 1 ) 2,657 points of sale Wide recognition 2,065 employees 7 to 9 launches per year Increased operating 12% market share (2) leverage Notes: 1. LTM as of September 2014. 2. Refers to the Brazilian women footwear market (source: Euromonitor, IBGE and Company estimates). Estimated for 2014. 5
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 – 2014 Founded in 1972 Consolidation of industrial Focus on retail Specific brands for each business model located in segment Focused on brand and R&D and production Minas Gerais product 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 Consolidate new brands leadership Opening of the flagship Opening of the first store at Oscar Freire shoe factory position Merger + First store Schutz launch Strategic Partnership (November 2007) Commercial operations Launch of the centralized in São Paulo first design with national success Fast Fashion Initial Public Offering concept (February 2011) 6
1 .4 Shareholder structure Shareholder structure 1 Float Management² 1.1% 46.8% Birman family Others 52.1% 47.9% Notes: 1. Arezzo&Co capital stock is composed of 88,682,735 common shares, all nominative, book-entry shares with no par value. 2. Including Stock Option Plan – Arezzo&Co’s executives Shareholder structure as of October 2014. 7
1 .5 Culture & Management Principles of success at Arezzo&Co: 01 That which is not transparent should not be done. 02 Always be true, so that at some point you are not false in your job. Always be authentic. 03 Clearly negotiate your goals and responsibilities, and consider compliance as a requirement for continuity. 04 Do not uncover problems only. Blaming others will never be the solution. Take risks, propose solutions. If you disagree with something, act! 05 Formalize everything, even in an informal way. 06 Always be flexible. Always be willing and ready for changes. 07 Goals met are, at least, the basis for the next goal. 08 United we stand! Divergences are constructive, conflicts are destructive. 09 A humble stance: the key to our success. 10 Enjoy. Like. Get involved. And always be happy! 2154 8
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 1972 1995 2008 2009 Foundation Trendy Fashion Pop Design New Up to date Flat shoes Exclusivity Brands Easy to wear Bold Affordable Identity profile Eclectic Provocative Colorful Seduction Women 16 - 60 years old 18 - 40 years old 12 - 60 years old 20 - 45 years old target market O F MB EX O F MB EX O F MB EX O MB EX Distribution channel 1 POS 1 17 350 1,057 44 27 43 1,348 168 6 34 982 11 2 7 47 % gross 14% 73% 12% 1% 37% 12% 41% 10% 46% 9% 44% 1% 47% 4% 49% rev. 2 Retail price R$ 189.00/pair R$ 330.00/pair R$ 110.00/pair R$ 960.00/pair point R$ 65.8 million Sales R$ 12.9 million R$ 478.0 million R$ 752.3 million Volume 3 5.0% % Gross 57.5 % 36.5% 1.0% Revenues 4 Notes: 1. Points of sales (3Q14); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports 2. % of each brand gross revenues (last twelve months - 3Q14) 3. Gross revenues of last twelve months ended on 3Q14, including external market; does not include other revenues (not generated by any of the 4 brands) 9 4. % of Company’s total gross revenues of last twelve months ended on 3Q14
1 .7 Multiple distribution channels Flexible platform through different distribution channels with specific strategies, maximizing the Company's profitability Gross Revenues per Channel 421 franchises in About 1,169 cities 51 owned stores of Broad distribution in more than 160 cities and 2,178 which 11 flagship every Brazilian state in Brazil multi-brands stores Gross Revenue Breakdown – (R$ mm)¹ 49% 23% 22% 6% 100% 71 2 294 306 1,313 642 Franchises Owned stores Multi-brands Exports² Total Notes: 1. 3Q14 LTM gross revenues 2. Also includes other revenues in the domestic market 10
| Business model
2 Unique business model in Brazil Customer focus: we are at the forefront of Brazilian women fashion and design 1 2 3 4 5 SEASONED NATIONWIDE ABILITY TO SOLID MARKETING EFFICIENT MANAGEMENT DISTRIBUTION 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
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 at the stores per day, allowing for consistent desire-driven purchases 13
2 .2 Broad media plan Each brand has an integrated and expressive communication strategy, from the creation of campaigns to the point of sales Presence in electronic media and television Strong presence in printed media +100 inserts in printed media in 180 pages in 2013 (32 million readers) +200 exhibition on Cable TV + 3 million impact Over 1350 exhibition in fashion editorials in 2013 Digital communication Celebrity Endorsement Marketing Events Demi Moore Gisele Bündchen Blake Lively 830k accesses to site/month Over 3 mm followers/ fans: Facebook, CRM – VIP sales (180k monthly access to Schutz’s Blog) Instagram and Twitter (all 4 Brands) Seasonal showroom in Los Angeles near In-store events – PA Average navigation time: 8 minutes Arezzo is leader in interactions* the Red Carpet Season Stylists Fashion Advisors 14 * Source: Indexsocial/ Agência Espalhe, 2013
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, and others) Flagship stores Store layout & visual merchandising All visual communication at stores is monitored and updated simultaneously throughout Brazil for each new collection 15
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