1. Consolidated HighlightsConsolidated HighlightsConsolidated HighlightsConsolidated Highlights
Cia. Hering registers significant results in 3Q10: 36.3Cia. Hering registers significant results in 3Q10: 36.3Cia. Hering registers significant results in 3Q10: 36.3Cia. Hering registers significant results in 3Q10: 36.3%%%%
growth in Gross Revenue and 33.6% in samegrowth in Gross Revenue and 33.6% in samegrowth in Gross Revenue and 33.6% in samegrowth in Gross Revenue and 33.6% in same----store salesstore salesstore salesstore sales
of the Hering Store chainof the Hering Store chainof the Hering Store chainof the Hering Store chain
Highlights (3Highlights (3Highlights (3Highlights (3Q10)Q10)Q10)Q10)
• Gross Revenue totals R$ 287.3 million;
• Two-digit growth in the four brands (Hering, Hering Kids, PUC
and dzarm.);
• 33.6% growth in same-store sales of the Hering Store chain;
• EBITDA of R$ 57.7 million with EBITDA Margin of 24.5%.
Cia. Hering continues to be optimistic in relation to market prospects for
the last quarter of 2010 and revises its expansion goal for the Hering
Store chain for the end of the year, adding 12 stores to the initial plan.
Therefore, the expectation is to end 2010 with 337 stores.
During the 3Q10 a study was presented indicating a greater expansion
potential for the Hering Store chain (604 stores). As a result, the
Management decided to anticipate in one year the goal of Hering Store
openings until 2012 and forecasts 405 stores already by the end of 2011.
The Board of Directors of Cia. Hering called its shareholders to an
Extraordinary General Shareholders’ Meeting, on October 29, 2010, to
vote on the proposal of a stock split, in the proportion of two new shares
for each existing share.
3Q103Q103Q103Q10
Data onData onData onData on – 09/30/201009/30/201009/30/201009/30/2010
HGTX3: R$ 72.80 per share
Market CapitalizationMarket CapitalizationMarket CapitalizationMarket Capitalization
R$ 3.9 billion
US$ 2.3 billion
Conference CallConference CallConference CallConference Call:::: 10/29/201010/29/201010/29/201010/29/2010
Portuguese and English: 11Portuguese and English: 11Portuguese and English: 11Portuguese and English: 11
a.m.a.m.a.m.a.m. (Bras(Bras(Bras(Brasília time)lia time)lia time)lia time)
Tel.: (+55 11) 4688-6361 (Brazil)
Tel.: (+1) 888-700-0802 (USA)
Tel.: (+1) 786-924-6977 (Other
countries)
The live webcast will be available with
the slideshow presentation, at:
www.ciahering.com.brwww.ciahering.com.brwww.ciahering.com.brwww.ciahering.com.br/ir./ir./ir./ir.
Investor RelationsInvestor RelationsInvestor RelationsInvestor Relations
Fábio HeringFábio HeringFábio HeringFábio Hering
CEO
FredeFredeFredeFrederico de Aguiar Oldanirico de Aguiar Oldanirico de Aguiar Oldanirico de Aguiar Oldani
CFO and IR Director
KarinaKarinaKarinaKarina KoerichKoerichKoerichKoerich
IR Manager
Gracila Camargo LopesGracila Camargo LopesGracila Camargo LopesGracila Camargo Lopes
IR Analyst
Admar Topazio JuniorAdmar Topazio JuniorAdmar Topazio JuniorAdmar Topazio Junior
IR Analyst
Tel.: (47) 3321Tel.: (47) 3321Tel.: (47) 3321Tel.: (47) 3321----3469346934693469
ri@heringnet.com.br
Ligia Montagnani
IR Consultant
Tel.: (11) 3897-6857
ligia.montagnani@firb.com
Blumenau, October 28, 2010 – Cia. Hering (BM&FBOVESPA: HGTX3), one of the largest retail and apparel
designers and manufacturers in Brazil, releases its results for the 3
rd
quarter of 2010 (3Q10). The Company
information, except where otherwise indicated, is based on consolidated figures and on thousand Brazilian Reais,
in accordance with Brazilian Corporate Law. All comparisons were made in relation to the same period of 2009
(3Q09), except when otherwise specified.
ChangeChangeChangeChange ChangeChangeChangeChange
3Q10 / 3Q093Q10 / 3Q093Q10 / 3Q093Q10 / 3Q09 9M10 / 9M099M10 / 9M099M10 / 9M099M10 / 9M09
Gross RevenueGross RevenueGross RevenueGross Revenue 210,786210,786210,786210,786 287,295287,295287,295287,295 36.3%36.3%36.3%36.3% 589,242589,242589,242589,242 827,737827,737827,737827,737 40.5%40.5%40.5%40.5%
Domestic Market 206,792 279,820 35.3% 576,828 810,391 40.5%
Foreign Market 3,994 7,475 87.2% 12,414 17,346 39.7%
Net RevenueNet RevenueNet RevenueNet Revenue 175,690175,690175,690175,690 235,180235,180235,180235,180 33.9%33.9%33.9%33.9% 483,294483,294483,294483,294 682,526682,526682,526682,526 41.2%41.2%41.2%41.2%
Gross ProfitGross ProfitGross ProfitGross Profit 83,41083,41083,41083,410 111,766111,766111,766111,766 34.0%34.0%34.0%34.0% 217,047217,047217,047217,047 325,934325,934325,934325,934 50.2%50.2%50.2%50.2%
Gross Margin 47.5% 47.5% 0.0 p.p. 44.9% 47.8% 2.8 p.p.
Adjusted Gross ProfitAdjusted Gross ProfitAdjusted Gross ProfitAdjusted Gross Profit (a)(a)(a)(a)
85,79485,79485,79485,794 116,449116,449116,449116,449 35.7%35.7%35.7%35.7% 224,241224,241224,241224,241 339,012339,012339,012339,012 51.2%51.2%51.2%51.2%
Adjusted Gross Margin (a)
48.8% 49.5% 0.7 p.p. 46.4% 49.7% 3.3 p.p.
Net IncomeNet IncomeNet IncomeNet Income 22,96522,96522,96522,965 33,47933,47933,47933,479 45.8%45.8%45.8%45.8% 66,14366,14366,14366,143 105,966105,966105,966105,966 60.2%60.2%60.2%60.2%
Net Margin 13.1% 14.2% 1.2 p.p. 13.7% 15.5% 1.8 p.p.
EBITDAEBITDAEBITDAEBITDA (b)(b)(b)(b)
38,46438,46438,46438,464 57,70157,70157,70157,701 50.0%50.0%50.0%50.0% 91,80391,80391,80391,803 174,214174,214174,214174,214 89.8%89.8%89.8%89.8%
EBITDA Margin 21.9% 24.5% 2.6 p.p. 19.0% 25.5% 6.5 p.p.
(a)
Gross Profit and Gross Margin without Depreciation allocated to cost
(b)
Earnings before interest, taxes, depreciation, amortization and participations
R$ ThousandR$ ThousandR$ ThousandR$ Thousand 3Q093Q093Q093Q09 3Q103Q103Q103Q10 9M099M099M099M09 9M109M109M109M10

2. 2
1)1)1)1) SALES PERFORMANCESALES PERFORMANCESALES PERFORMANCESALES PERFORMANCE
Cia Hering’s good sales performance in the previous quarters has continued in 3Q10 with two-digit growth
in all channels and in all four brands. The highlight of the period was the Hering brand performance, which
registered a growth in sales in the store chain and in multibrand retail.
Hering BrandHering BrandHering BrandHering Brand
The 37.9% growth registered in 3Q10 was impacted, in the Hering Store chain, by the addition of 11 stores
in relation to 2Q10 (+45 stores as compared with 3Q09) and by the 33.6% growth in the same-store
concept in relation to the same period of the previous year; and, in multibrand retail, by the rising numbers
of clients, as well as in sales to same-clients.
The results posted by the Hering brand in 3Q10 were also enhanced by the launch of the midseason and
summer collections in the stores; by advertising and marketing through the Fathers’ Day and Jeans
Campaign, both aimed at the “I am, I wear Hering since always” concept; and by the continuity of the brand
strategy to offer more accessible fashion, high quality basic products and constant novelties.
Hering Kids BrandHering Kids BrandHering Kids BrandHering Kids Brand
The Hering Kids brand registered an increment of 35.8% in 3Q10, ending the period with a 7.4% share of
the Company’s total sales. The sales performance of multibrand clients (+38.6%) was the main highlight of
this quarter.
The performance of the Hering Kids brand will be commented on separately from the Hering brand as of
3Q10. This will make it easier to evaluate the performance of the brand in its three business channels (store
chain, multibrand retail and webstore), as well as analyze the impact of brand repositioning actions after the
launch of the High Summer collection in the 4Q10.
ChangeChangeChangeChange ChangeChangeChangeChange
3Q10 / 3Q093Q10 / 3Q093Q10 / 3Q093Q10 / 3Q09 9M10 / 9M099M10 / 9M099M10 / 9M099M10 / 9M09
Gross RevenueGross RevenueGross RevenueGross Revenue 210,786210,786210,786210,786 287,295287,295287,295287,295 36.3%36.3%36.3%36.3% 589,242589,242589,242589,242 827,737827,737827,737827,737 40.5%40.5%40.5%40.5%
Domestic Market 206,792 279,820 35.3% 576,828 810,391 40.5%
Foreign Market 3,994 7,475 87.2% 12,414 17,346 39.7%
Domestic Market Gross RevenueDomestic Market Gross RevenueDomestic Market Gross RevenueDomestic Market Gross Revenue 206,792206,792206,792206,792 279,820279,820279,820279,820 35.3%35.3%35.3%35.3% 576,828576,828576,828576,828 810,391810,391810,391810,391 40.5%40.5%40.5%40.5%
HeringHeringHeringHering 150,287150,287150,287150,287 207,268207,268207,268207,268 37.9%37.9%37.9%37.9% 428,823428,823428,823428,823 617,530617,530617,530617,530 44.0%44.0%44.0%44.0%
Multibrand 69,124 91,097 31.8% 187,931 264,777 40.9%
Franchise 53,607 78,572 46.6% 160,376 243,673 51.9%
Webstore 585 1,037 77.3% 1,401 2,792 99.3%
Owned Stores 26,971 36,562 35.6% 79,115 106,288 34.3%
HeringHeringHeringHering 15,70015,70015,70015,700 21,32321,32321,32321,323 35.8%35.8%35.8%35.8% 41,23441,23441,23441,234 57,88057,88057,88057,880 40.4%40.4%40.4%40.4%
Multibrand 13,804 19,133 38.6% 34,818 49,842 43.2%
Franchise (Hering Store) 1,853 2,093 13.0% 6,308 7,786 23.4%
Webstore 43 97 125.6% 108 252 133.3%
PUCPUCPUCPUC 21,80721,80721,80721,807 26,52226,52226,52226,522 21.6%21.6%21.6%21.6% 54,97054,97054,97054,970 68,91468,91468,91468,914 25.4%25.4%25.4%25.4%
Multibrand 15,319 17,613 15.0% 37,497 43,314 15.5%
Franchise 5,946 7,489 26.0% 15,763 21,366 35.5%
Webstore - 132 N.D - 290 N.D
Owned Stores 542 1,288 137.6% 1,710 3,944 130.6%
dzarm.dzarm.dzarm.dzarm. 14,62814,62814,62814,628 18,33718,33718,33718,337 25.4%25.4%25.4%25.4% 38,41938,41938,41938,419 48,98248,98248,98248,982 27.5%27.5%27.5%27.5%
Multibrand 14,628 18,232 24.6% 38,419 48,877 27.2%
Webstore - 105 N.D - 105 N.D
OtherOtherOtherOther 4,3704,3704,3704,370 6,3706,3706,3706,370 45.8%45.8%45.8%45.8% 13,38213,38213,38213,382 17,08517,08517,08517,085 27.7%27.7%27.7%27.7%
3Q093Q093Q093Q09 3Q103Q103Q103Q10 9M099M099M099M09 9M109M109M109M10Gross Revenues - R$ thous.Gross Revenues - R$ thous.Gross Revenues - R$ thous.Gross Revenues - R$ thous.
3Q093Q093Q093Q09 3Q103Q103Q103Q10 3Q093Q093Q093Q09 3Q103Q103Q103Q10 3Q093Q093Q093Q09 3Q103Q103Q103Q10 3Q093Q093Q093Q09 3Q103Q103Q103Q10 3Q093Q093Q093Q09 3Q103Q103Q103Q10
Multibrand Retail 46% 44% 88% 90% 70% 66% 100% 99% 57% 54%
Own Stores and Franchises 54% 56% 12% 10% 30% 33% 0% 0% 43% 45%
Webstores 0% 1% 0% 0% 0% 0% 0% 1% 0% 0%
dzarmdzarmdzarmdzarmRevenues byRevenues byRevenues byRevenues by
Distribution ChannelDistribution ChannelDistribution ChannelDistribution Channel
(Domestic Market)(Domestic Market)(Domestic Market)(Domestic Market)
HeringHeringHeringHering Hering KidsHering KidsHering KidsHering Kids PUCPUCPUCPUC TotalTotalTotalTotal

3. 3
PUC BrandPUC BrandPUC BrandPUC Brand
The PUC brand posted a growth of 21.6% in the quarter, representing 9.2% of the Company's total sales.
The 75 stores (+11 stores in relation to 3Q09) accounted for 33.0% of the brand sales in the period, with
emphasis on same-store sales of the chain, which grew 13.8% in comparison with the same period in the
previous year.
ddddzarm. brandzarm. brandzarm. brandzarm. brand
dzarm. registered a 25.4% growth in 3Q10 as compared with 3Q09 and a 6.4% share in the Company’s
total gross revenue.
This sales increase continues to be driven by the brand repositioning plan initiated in 2009 and aimed at
collections that appeal to a younger market, the launch of marketing campaigns with celebrities and the
qualification of the client portfolio in multibrand retail.
WebstoreWebstoreWebstoreWebstore
Online sales registered a significant increase of 118.3% this quarter with emphasis on the Hering Webstore,
which grew 80.6% in comparison with the same period of 2009.
The dzarm. brand webstore was launched in August 2010, expanding the e-commerce operation for all the
Company’s brands.
Due to the good results achieved until now, the performance of online sales (webstores) will be
commented on separately from the other channels (store chain and multibrand retail) as of 3Q10.
Foreign MarketForeign MarketForeign MarketForeign Market
Sales to the foreign market represented 2.6% of total gross revenue in 3Q10, up 87.2% in the period. The
Company continues aligned to the strategy to strengthen the internationalization of its brands in the Latin
American market.
2) DISTRIBUTION NETWORK2) DISTRIBUTION NETWORK2) DISTRIBUTION NETWORK2) DISTRIBUTION NETWORK
In 3Q10, Cia. Hering posted a growth in its three sales distribution channels (store chain, multibrand retail
and webstore), expanding the distribution reach of the Hering, Hering Kids, PUC and dzarm. brands in the
Brazilian market.
The Hering Store chain ended the quarter with 303 stores, of which 42 are owned. In September, the store
at the Shopping Center Norte mall in São Paulo was remodeled, becoming an owned store, and is now one
of the largest of the chain. In line with the store remodeling plan, there are still another 55 stores to be
remodeled to the new architectural plan.
The PUC chain will end 3Q10 with a total of 68 franchised stores and seven owned stores, representing a
growth of 17.2% in number of stores as compared with 3Q09.
The Company has revised its target of Hering Store openings for 2010, adding 12 stores to the initial plan,
enabling it to reach 337 stores by the end of the year.
The multibrand retail channel ended the quarter with 15,798 clients, of which 12,662 were for the Hering
brand alone.
Number of StoresNumber of StoresNumber of StoresNumber of Stores 3Q093Q093Q093Q09 3Q103Q103Q103Q10 2010*2010*2010*2010*
Hering - Owned 40 42 43
Hering - Franchised 218 261 294
Total Hering StoreTotal Hering StoreTotal Hering StoreTotal Hering Store 258258258258 303303303303 337337337337
PUC - Owned 6 7 6
PUC - Franchised 58 68 72
Total PUCTotal PUCTotal PUCTotal PUC 64646464 75757575 78787878
Brazil 322 378 415
Foreign - Franchised 15 15 15
TOTALTOTALTOTALTOTAL 337337337337 393393393393 430430430430
*estimated

4. 4
3) HERING STORE CHAIN PERFORMANCE3) HERING STORE CHAIN PERFORMANCE3) HERING STORE CHAIN PERFORMANCE3) HERING STORE CHAIN PERFORMANCE
In 3Q10, the sales of the Hering Store chain increased 51.7% in relation to the same period of 2009 due to
the 16.6% growth in the sales area and, mainly, to the 33.6% increase in sales under the same-store
concept.
The significant performance of same-store sales was due to an increase in client traffic in the stores
(+45.7% in number of tickets) and by the greater volume of units sold (+43.6%) in relation to 3Q09. This
result was also reinforced by the launch of the midseason and summer collections, which introduced
novelties to the clients, and by the Fathers’ Day and Jeans marketing campaigns, which boosted sales.
The number of Hering Store cards totaled 126.2 thousand units in the quarter, a growth of 44.2% as
compared with 2Q10, mainly due to the expansion of the membership base. Marketing campaigns
targeted at the cards were also promoted and registered positive results that incremented the average
ticket at the stores of the chain.
4)4)4)4) PRODUPRODUPRODUPRODUCTIVECTIVECTIVECTIVE PROCESSPROCESSPROCESSPROCESS
In order to meet the market’s rising demand, Cia. Hering worked during 3Q10 with 100% of its productive
capacity. In addition, third party production, as well as the purchase of outsourced products also assured
more flexibility and speed to the volume increase that occurred in the period.
For 2010, the Company maintains its plan to invest R$ 48.2 million to expand and update its manufacturing
complex.
Hering Store PerformanceHering Store PerformanceHering Store PerformanceHering Store Performance 3Q093Q093Q093Q09 3Q103Q103Q103Q10 Chg.Chg.Chg.Chg. 9M099M099M099M09 9M109M109M109M10 Chg.Chg.Chg.Chg.
Number of StoresNumber of StoresNumber of StoresNumber of Stores 258258258258 303303303303 17.4%17.4%17.4%17.4% 258258258258 303303303303 17.4%17.4%17.4%17.4%
Franchise 218 261 19.7% 218 261 19.7%
Owned 40 42 5.0% 40 42 5.0%
Sales (R$ thousand)Sales (R$ thousand)Sales (R$ thousand)Sales (R$ thousand)
(1)(1)(1)(1)
128,597128,597128,597128,597 195,094195,094195,094195,094 51.7%51.7%51.7%51.7% 387,949387,949387,949387,949 559,618559,618559,618559,618 44.3%44.3%44.3%44.3%
Franchise 101,624 158,532 56.0% 308,832 453,329 46.8%
Owned 26,973 36,562 35.5% 79,117 106,288 34.3%
Same Store Sales growthSame Store Sales growthSame Store Sales growthSame Store Sales growth
(2)(2)(2)(2)
20.9%20.9%20.9%20.9% 33.6%33.6%33.6%33.6% 12.8 p.p.12.8 p.p.12.8 p.p.12.8 p.p. 23.8%23.8%23.8%23.8% 26.8%26.8%26.8%26.8% 2.9 p.p.2.9 p.p.2.9 p.p.2.9 p.p.
Sales Area (m²)Sales Area (m²)Sales Area (m²)Sales Area (m²) 33,233 38,763 16.6% 33,233 38,763 16.6%
Sales (R$ per m²)Sales (R$ per m²)Sales (R$ per m²)Sales (R$ per m²) 3,956 5,163 30.5% 12,493 15,227 21.9%
Check-OutsCheck-OutsCheck-OutsCheck-Outs 1,507,785 2,196,420 45.7% 4,388,138 6,226,526 41.9%
UnitsUnitsUnitsUnits 3,428,509 4,925,048 43.6% 9,923,321 13,792,522 39.0%
Units per Check-OutUnits per Check-OutUnits per Check-OutUnits per Check-Out 2.27 2.24 -1.3% 2.26 2.22 -1.8%
Average Sales Price (R$)Average Sales Price (R$)Average Sales Price (R$)Average Sales Price (R$) 37.51 39.61 5.6% 39.09 40.57 3.8%
Average Sales Ticket (R$)Average Sales Ticket (R$)Average Sales Ticket (R$)Average Sales Ticket (R$) 85.29 88.82 4.1% 88.41 89.88 1.7%
(1)
The amounts referred to the sales to final costumers. (sell out concept)
(2)
Compared to the same period of the previous year
ProductionProductionProductionProduction 85.5%85.5%85.5%85.5% 88.3%88.3%88.3%88.3% 2.8 p.p.2.8 p.p.2.8 p.p.2.8 p.p. 86.0%86.0%86.0%86.0% 85.3%85.3%85.3%85.3% -0.7 p.p.-0.7 p.p.-0.7 p.p.-0.7 p.p.
Internal 44.8% 44.9% 0.1 p.p. 45.0% 43.5% -1.5 p.p.
Third Party 40.7% 43.4% 2.7 p.p. 41.0% 41.8% 0.8 p.p.
OutsourcingOutsourcingOutsourcingOutsourcing 14.5%14.5%14.5%14.5% 11.7%11.7%11.7%11.7% -2.8 p.p.-2.8 p.p.-2.8 p.p.-2.8 p.p. 14.0%14.0%14.0%14.0% 14.7%14.7%14.7%14.7% 0.7 p.p.0.7 p.p.0.7 p.p.0.7 p.p.
Domestic Market 6.0% 3.9% -2.1 p.p. 5.2% 3.9% -1.3 p.p.
Foreign Market 8.5% 7.8% -0.7 p.p. 8.8% 10.8% 2.0 p.p.
9M109M109M109M10 Chg.Chg.Chg.Chg.
* Referred to the number of item sold.
Production Process*Production Process*Production Process*Production Process* 3Q093Q093Q093Q09 3Q103Q103Q103Q10 Chg.Chg.Chg.Chg. 9M099M099M099M09

5. 5
5) ECON5) ECON5) ECON5) ECONOMICOMICOMICOMIC----FINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCEFINANCIAL PERFORMANCE
EBITDA and EBITDA MarginEBITDA and EBITDA MarginEBITDA and EBITDA MarginEBITDA and EBITDA Margin
The significant results reached in 3Q10 in relation to EBITDA (R$ 57.7 million with a growth of 50.0%) and
the EBITDA margin (24.5% with an increment of 2.6 percentage points) derived mainly from the following
factors:
• Increase of 36.3% in gross revenue from sales;
• Increment in Adjustment to Present Value (AVP in Portuguese) with negative effect in EBITDA margin of
0.3 p.p.;
• Sales growth in industrial plants that have tax incentives;
• Increase of Indirect Cost of Products Sold in view of increment of productive capacity to support an
increase in sales in subsequent quarters;
• Operating expenses in 3Q10, which were negatively impacted by the following non-recurring factors: i)
general and administrative expenses (R$ 1.8 million) in view of donations, celebrations for 130-year
anniversary of Company and sponsorships; and ii) other operating expenses, totaling R$ 3.1 million, of
which R$ 2.4 million refer to the installment plan of recognized taxes. In addition, operating expenses
were also positively impacted by non-recurring factors such as: i) variable sales expenses, totaling R$
3.0 million as a result of the reversal for the allowance for doubtful debtors due to a drop in delinquency;
and ii) by the reversal, of R$ 1.5 million, for the allowance of the profit-sharing program referring to 1H10.
3Q09 3Q10 9M09 9M10
38.538.538.538.5 57.757.757.757.7
91.891.891.891.8
174.2174.2174.2174.2
21.9%21.9%21.9%21.9% 24.5%24.5%24.5%24.5%
19.0%19.0%19.0%19.0%
25.5%25.5%25.5%25.5%
Gross RevenueGross RevenueGross RevenueGross Revenue 210,786210,786210,786210,786 120.0%120.0%120.0%120.0% 287,295287,295287,295287,295 122.2%122.2%122.2%122.2% 589,242589,242589,242589,242 121.9%121.9%121.9%121.9% 827,737827,737827,737827,737 121.3%121.3%121.3%121.3%
Sales Deduction (35,096) -20.0% (52,115) -22.2% (105,948) -21.9% (145,211) -21.3%
Sales Deduction taxes and AVP (44,696) -25.4% (61,151) -26.0% (124,929) -25.8% (176,245) -25.8%
AVP (Adjustment to Present Value) (2,217) -1.3% (5,666) -2.4% (6,954) -1.4% (13,357) -2.0%
Sales Deduction Tax Incentives 11,817 6.7% 14,702 6.3% 25,935 5.4% 44,391 6.5%
Net RevenueNet RevenueNet RevenueNet Revenue 175,690175,690175,690175,690 100.0%100.0%100.0%100.0% 235,180235,180235,180235,180 100.0%100.0%100.0%100.0% 483,294483,294483,294483,294 100.0%100.0%100.0%100.0% 682,526682,526682,526682,526 100.0%100.0%100.0%100.0%
Total Cost of Goods Sold (89,896) -51.2% (118,731) -50.5% (259,053) -53.6% (343,514) -50.3%
Cost of Goods Sold (88,817) -50.6% (120,436) -51.2% (258,776) -53.5% (347,593) -50.9%
AVP (Adjustment to Present Value) 418 0.2% 1,961 0.8% 1,142 0.2% 4,291 0.6%
Subvention for Expenditure (1,079) -0.6% 1,705 0.7% (277) -0.1% 4,079 0.6%
Gross Profit CashGross Profit CashGross Profit CashGross Profit Cash 85,79485,79485,79485,794 48.8%48.8%48.8%48.8% 116,449116,449116,449116,449 49.5%49.5%49.5%49.5% 224,241224,241224,241224,241 46.4%46.4%46.4%46.4% 339,012339,012339,012339,012 49.7%49.7%49.7%49.7%
Depreciation and Amortization (2,384) -1.4% (4,683) -2.0% (7,194) -1.5% (13,078) -1.9%
Gross ProfitGross ProfitGross ProfitGross Profit 83,41083,41083,41083,410 47.5%47.5%47.5%47.5% 111,766111,766111,766111,766 47.5%47.5%47.5%47.5% 217,047217,047217,047217,047 44.9%44.9%44.9%44.9% 325,934325,934325,934325,934 47.8%47.8%47.8%47.8%
Operating ExpensesOperating ExpensesOperating ExpensesOperating Expenses (49,734)(49,734)(49,734)(49,734) -28.3%-28.3%-28.3%-28.3% (61,817)(61,817)(61,817)(61,817) -26.3%-26.3%-26.3%-26.3% (139,208)(139,208)(139,208)(139,208) -28.8%-28.8%-28.8%-28.8% (173,454)(173,454)(173,454)(173,454) -25.4%-25.4%-25.4%-25.4%
Selling Expenses (35,130) -20.0% (40,883) -17.4% (98,709) -20.4% (118,728) -17.4%
Company (25,805) -14.7% (29,635) -12.6% (73,584) -15.2% (87,360) -12.8%
Fixed (12,648) -7.2% (15,588) -6.6% (36,320) -7.5% (42,164) -6.2%
Variable (13,157) -7.5% (14,047) -6.0% (37,264) -7.7% (45,196) -6.6%
Stores (9,325) -5.3% (11,248) -4.8% (25,125) -5.2% (31,368) -4.6%
Administrative and General Exp. and Management Remuneration (7,107) -4.0% (10,058) -4.3% (20,961) -4.3% (25,148) -3.7%
Depreciation and Amortization (2,404) -1.4% (3,069) -1.3% (6,770) -1.4% (8,656) -1.3%
Profit Sharing (4,487) -2.6% (4,237) -1.8% (11,451) -2.4% (15,268) -2.2%
Other Operating Income (Expenses), net (606) -0.3% (3,570) -1.5% (1,317) -0.3% (5,654) -0.8%
Operating Income Before Financial ResultsOperating Income Before Financial ResultsOperating Income Before Financial ResultsOperating Income Before Financial Results 33,67633,67633,67633,676 19.2%19.2%19.2%19.2% 49,94949,94949,94949,949 21.2%21.2%21.2%21.2% 77,83977,83977,83977,839 16.1%16.1%16.1%16.1% 152,480152,480152,480152,480 22.3%22.3%22.3%22.3%
Financial Results, net (15,174) -8.6% (7,498) -3.2% (13,249) -2.7% (3,907) -0.6%
Derivative Financial Instruments Results, net (193) -0.1% - N.D 24,866 5.1% (13) 0.0%
Total Financial Income (Expenses)Total Financial Income (Expenses)Total Financial Income (Expenses)Total Financial Income (Expenses) (15,367)(15,367)(15,367)(15,367) -8.7%-8.7%-8.7%-8.7% (7,498)(7,498)(7,498)(7,498) -3.2%-3.2%-3.2%-3.2% 11,61711,61711,61711,617 2.4%2.4%2.4%2.4% (3,920)(3,920)(3,920)(3,920) -0.6%-0.6%-0.6%-0.6%
Operating IncomeOperating IncomeOperating IncomeOperating Income 18,30918,30918,30918,309 10.4%10.4%10.4%10.4% 42,45142,45142,45142,451 18.1%18.1%18.1%18.1% 89,45689,45689,45689,456 18.5%18.5%18.5%18.5% 148,560148,560148,560148,560 21.8%21.8%21.8%21.8%
Income and Social Contribution Taxes - Current (3,186) -1.8% (13,070) -5.6% (13,894) -2.9% (44,779) -6.6%
Income and Social Contribution Taxes - Deferred (7,344) -4.2% (5,394) -2.3% (24,605) -5.1% (7,311) -1.1%
Interest of Non-Controlling Shareholders - N.D - N.D - N.D 4 0.0%
Reversion of Interest on Shareholders Equity 15,186 8.6% 9,492 4.0% 15,186 3.1% 9,492 1.4%
Net Income for the PeriodNet Income for the PeriodNet Income for the PeriodNet Income for the Period 22,96522,96522,96522,965 13.1%13.1%13.1%13.1% 33,47933,47933,47933,479 14.2%14.2%14.2%14.2% 66,14366,14366,14366,143 13.7%13.7%13.7%13.7% 105,966105,966105,966105,966 15.5%15.5%15.5%15.5%
EBITDAEBITDAEBITDAEBITDA 38,46438,46438,46438,464 21.9%21.9%21.9%21.9% 57,70157,70157,70157,701 24.5%24.5%24.5%24.5% 91,80391,80391,80391,803 19.0%19.0%19.0%19.0% 174,214174,214174,214174,214 25.5%25.5%25.5%25.5%
Part. (%)Part. (%)Part. (%)Part. (%)R$ ThousandR$ ThousandR$ ThousandR$ Thousand 3Q093Q093Q093Q09 Part. (%)Part. (%)Part. (%)Part. (%) 3Q103Q103Q103Q10 Part. (%)Part. (%)Part. (%)Part. (%) 9M099M099M099M09 Part. (%)Part. (%)Part. (%)Part. (%) 9M109M109M109M10

6. 6
Net Profit and Net MarginNet Profit and Net MarginNet Profit and Net MarginNet Profit and Net Margin
The 45.8% growth in Net Profit posted in 3Q10 was a result of the performance shown above and of the
reduction of the effective income tax and social contribution rate in comparison with the same period in
2009.
6) CASH FLOW6) CASH FLOW6) CASH FLOW6) CASH FLOW
Cia. Hering registered a reduction of R$ 25.3 million in free cash flow in 3Q10 due to a greater need to
invest in working capital mostly as a result of the already expected increase of R$ 31.8 million in inventory,
due to restocking, and to meet demand in 4Q10.
EBITDA 3Q09 SalesGrowth Deductions Tax Incentives AVP Net Gross
Margin (ex TI
and ded)
SG&A Dilution EBITDA 3Q10
38.5
14.0
0.2 1.8 1.3
0.8
5.8
57.7
EBITDA - 3Q Variation
EBITDA Margin
3Q09
Deductions Tax Incentives AVP Net Gross
Margin (ex TI
and ded)
SG&A Dilution EBITDA Margin
3Q10
21.9%
0.1% 0.9% 0.3% 0.3%
2.4%
24.5%
EBITDA Margin- 3Q Variation
3Q09 3Q10 9M09 9M10
23.023.023.023.0 33.533.533.533.5
66.166.166.166.1
106.0106.0106.0106.0
13.1%13.1%13.1%13.1% 14.2%14.2%14.2%14.2% 13.7%13.7%13.7%13.7% 15.5%15.5%15.5%15.5%
Reconciliation of EBITDA - R$ thousandReconciliation of EBITDA - R$ thousandReconciliation of EBITDA - R$ thousandReconciliation of EBITDA - R$ thousand 3Q093Q093Q093Q09 3Q103Q103Q103Q10 Chg.Chg.Chg.Chg. 9M099M099M099M09 9M109M109M109M10 Chg.Chg.Chg.Chg.
Net IncomeNet IncomeNet IncomeNet Income 22,96522,96522,96522,965 33,47933,47933,47933,479 45.8%45.8%45.8%45.8% 66,14366,14366,14366,143 105,966105,966105,966105,966 60.2%60.2%60.2%60.2%
(-) Income and Social Contribution Tax (10,530) (18,464) 75.3% (38,499) (52,090) 35.3%
(-) Net Financial Expense (15,367) (7,498) -51.2% 11,617 (3,920) N.D
(-) Depreciation and Amortization (4,788) (7,752) 61.9% (13,964) (21,734) 55.6%
(+) Interest of Non-controlling Shareholders - - N.D - 4 N.D
(+) Reversion of interests on Shareholders Equity 15,186 9,492 -37.5% 15,186 9,492 -37.5%
(=) EBITDA(=) EBITDA(=) EBITDA(=) EBITDA 38,46438,46438,46438,464 57,70157,70157,70157,701 50.0%50.0%50.0%50.0% 91,80391,80391,80391,803 174,214174,214174,214174,214 89.8%89.8%89.8%89.8%
EBITDA MarginEBITDA MarginEBITDA MarginEBITDA Margin 21.9%21.9%21.9%21.9% 24.5%24.5%24.5%24.5% 2.6 p.p.2.6 p.p.2.6 p.p.2.6 p.p. 19.0%19.0%19.0%19.0% 25.5%25.5%25.5%25.5% 6.5 p.p.6.5 p.p.6.5 p.p.6.5 p.p.
Cash Flow - ConsolidatedCash Flow - ConsolidatedCash Flow - ConsolidatedCash Flow - Consolidated 3Q093Q093Q093Q09 3Q103Q103Q103Q10 Chg.Chg.Chg.Chg. 9M099M099M099M09 9M109M109M109M10 Chg.Chg.Chg.Chg.
EBITDAEBITDAEBITDAEBITDA 38,46438,46438,46438,464 57,70157,70157,70157,701 19,23719,23719,23719,237 91,80391,80391,80391,803 174,214174,214174,214174,214 82,41182,41182,41182,411
No cash items 1,629 362 (1,267) 1,944 899 (1,045)
Current IR&CS (3,186) (13,070) (9,884) (13,894) (44,779) (30,885)
Cash Flow CapexCash Flow CapexCash Flow CapexCash Flow Capex 4,1904,1904,1904,190 (22,841)(22,841)(22,841)(22,841) (27,031)(27,031)(27,031)(27,031) 9,1809,1809,1809,180 (5,862)(5,862)(5,862)(5,862) (15,042)(15,042)(15,042)(15,042)
Decrease (increase) in trade accounts receivable 10,089 6,267 (3,822) (2,959) (11,493) (8,534)
(Increase) in inventories (14,355) (46,137) (31,782) (29,830) (56,914) (27,084)
Increase in accounts payable to suppliers 16,448 21,181 4,733 39,667 48,101 8,434
Increase (decrease) in taxes payable (9,429) 4,560 13,989 (8,556) 17,038 25,594
Others 1,437 (8,712) (10,149) 10,858 (2,594) (13,452)
CapExCapExCapExCapEx (12,193)(12,193)(12,193)(12,193) (18,593)(18,593)(18,593)(18,593) (6,400)(6,400)(6,400)(6,400) (23,519)(23,519)(23,519)(23,519) (52,174)(52,174)(52,174)(52,174) (28,655)(28,655)(28,655)(28,655)
Free Cash FlowFree Cash FlowFree Cash FlowFree Cash Flow 28,90428,90428,90428,904 3,5593,5593,5593,559 (25,345)(25,345)(25,345)(25,345) 65,51465,51465,51465,514 72,29872,29872,29872,298 6,7846,7846,7846,784
Reconciliation from accouting Cash flow to adjusted Cash flowReconciliation from accouting Cash flow to adjusted Cash flowReconciliation from accouting Cash flow to adjusted Cash flowReconciliation from accouting Cash flow to adjusted Cash flow 3Q093Q093Q093Q09 3Q103Q103Q103Q10 Chg.Chg.Chg.Chg. 9M099M099M099M09 9M109M109M109M10 Chg.Chg.Chg.Chg.
DFC - Cash provided by operating activitiesDFC - Cash provided by operating activitiesDFC - Cash provided by operating activitiesDFC - Cash provided by operating activities 34,41734,41734,41734,417 25,68125,68125,68125,681 (8,736)(8,736)(8,736)(8,736) 78,10478,10478,10478,104 134,770134,770134,770134,770 56,66656,66656,66656,666
Adjustment – Financial items allocated to operating cashAdjustment – Financial items allocated to operating cashAdjustment – Financial items allocated to operating cashAdjustment – Financial items allocated to operating cash 6,6806,6806,6806,680 (3,529)(3,529)(3,529)(3,529) (10,209)(10,209)(10,209)(10,209) 10,92910,92910,92910,929 (10,298)(10,298)(10,298)(10,298) (21,227)(21,227)(21,227)(21,227)
Unrealized exchange and monetary variation (980) (1,535) (555) (7,776) (4,713) 3,063
Financial Result (13) (1,994) (1,981) (1,938) (5,585) (3,647)
Cash Paid (Received) on Derivatives operations 7,673 0 (7,673) 20,643 0 (20,643)
DFC - Cash flows from investing activitiesDFC - Cash flows from investing activitiesDFC - Cash flows from investing activitiesDFC - Cash flows from investing activities (12,193)(12,193)(12,193)(12,193) (18,593)(18,593)(18,593)(18,593) (6,400)(6,400)(6,400)(6,400) (23,519)(23,519)(23,519)(23,519) (52,174)(52,174)(52,174)(52,174) (28,655)(28,655)(28,655)(28,655)
Free Cash FlowFree Cash FlowFree Cash FlowFree Cash Flow 28,90428,90428,90428,904 3,5593,5593,5593,559 (25,345)(25,345)(25,345)(25,345) 65,51465,51465,51465,514 72,29872,29872,29872,298 6,7846,7846,7846,784

7. 7
7)7)7)7) CAPEXCAPEXCAPEXCAPEX
Cia. Hering’s investments totaled R$ 18.6 million in 3Q10. The largest part (R$ 14.9 million) was allocated to
the industrial area for the acquisition of equipment and for infrastructure improvements needed to boost
the production capacity of the plants.
8) INDEBTEDNESS8) INDEBTEDNESS8) INDEBTEDNESS8) INDEBTEDNESS
Due to the reduction in free cash flow in 3Q10, the Company ended the quarter with R$ 113.0 million in
financial investments and a net cash of R$ 52.5 million.
During this quarter, Cia. Hering continued aligned to its strategy to not renew banking loans with high
interest, settling R$ 5.0 million of its gross debt. In addition, it continued to prioritize its financing operations
linked to productive investments, with more attractive terms and interest conditions, through the acquisition
of funds from the National Economic and Social Development Bank (BNDES) amounting to R$ 14.0 million.
9) EXTRAORDINARY GENERAL SHAREHOLDERS’ MEETING9) EXTRAORDINARY GENERAL SHAREHOLDERS’ MEETING9) EXTRAORDINARY GENERAL SHAREHOLDERS’ MEETING9) EXTRAORDINARY GENERAL SHAREHOLDERS’ MEETING
At the Extraordinary General Shareholders’ Meeting to be held on October 29, 2010, the shareholders of
Cia. Hering will vote, among the matters mentioned in the second Shareholders' Notice, on the proposal for
the stock split of Company-issued shares (HGTX3) in the proportion of two new shares for every existing
share.
10) OUTLOOK10) OUTLOOK10) OUTLOOK10) OUTLOOK
Cia. Hering follows optimistic in relation to the last quarter of 2010 and is revising the target to expand the
Hering Store chain for the year by adding 12 stores to the initial plan. In this way, the expectation is to end
2010 with 337 stores.
In addition, based on the results of a study about the growth potential of the Hering Store chain, the
Company anticipated by a year the target of store openings for 2012, planning to reach 405 stores by the
end of 2011. For 2012, the new number of stores to be opened will be disclosed at the appropriate time, to
the extent in which the expansion plan develops and the market conditions show themselves to be
favorable.
The expectation for the Hering brand continues to be of growth in sales for the store chain and in
multibrand retail, as well as of accelerating the expansion plan of the Hering Store chain and of
incrementing total sales and sales under the same-store concept. For such, the growth strategy continues
centered on exploring Hering’s positioning as a brand that offers affordable fashion, as well as quality basic
products recognized by the consumer for the good cost x benefit ratio of its products and able to meet the
needs of a market of all ages and social classes.
3Q09 3Q10 9M09 9M10
6.3
14.9
10.6
37.0
1.3 1.9 3.4
3,5
0.5
0.6 0.8
1.6
4.1
1.2
8.8
9.4
Industry IT Other Stores
12.212.212.212.2
18.618.618.618.6
23.523.523.523.5
53.353.353.353.3
52.5%52.5%52.5%52.5%
126.8%126.8%126.8%126.8%
Indebtedness - R$ millionIndebtedness - R$ millionIndebtedness - R$ millionIndebtedness - R$ million 2Q092Q092Q092Q09 Chg.Chg.Chg.Chg. 3Q093Q093Q093Q09 Chg.Chg.Chg.Chg. 2Q102Q102Q102Q10 Chg.Chg.Chg.Chg. 3Q103Q103Q103Q10 Chg.Chg.Chg.Chg.
Short Term (52.7) 55% (52.9) 56% (9.5) 19% (14.0) 23%
Long Term (43.8) 45% (42.2) 44% (39.7) 81% (46.4) 77%
TotalTotalTotalTotal (96.5)(96.5)(96.5)(96.5) 100%100%100%100% (95.1)(95.1)(95.1)(95.1) 100%100%100%100% (49.3)(49.3)(49.3)(49.3) 100%100%100%100% (60.4)(60.4)(60.4)(60.4) 100%100%100%100%
(-) Cash & Interest-earning bank deposits 100.5 105.2 121.6 113.0
(=) (Net Debt) Free Cash Flow(=) (Net Debt) Free Cash Flow(=) (Net Debt) Free Cash Flow(=) (Net Debt) Free Cash Flow 4.04.04.04.0 10.110.110.110.1 72.372.372.372.3 52.552.552.552.5
Number of StoresNumber of StoresNumber of StoresNumber of Stores 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010*2010*2010*2010* 2011*2011*2011*2011*
Hering Store 151 181 230 276 337 405
*estimated

8. 8
Even though the Hering brand and Hering Store chain continue to be the main drivers of growth, the
Company will also continue to explore the potential of the Hering Kids, PUC and dzarm. brands, as well as
develop new platforms for growth. With this in mind, the results of a study conducted by Cia. Hering, which
analyzed the behavior of the children’s market in Brazil and that identified opportunities for growth to be
explored by the Hering Kids and PUC brands, was released in August 2010.
The first results of the strategy for the Hering Kids and PUC brands, which foresees adjustments in the
assortment of products and price ranges, backed by investments in the marketing campaigns for both
brands, will be perceived after the launch of the High Summer collection as of 4Q10. In line with this project,
two pilot store projects will be opened in 4Q10, one of which will be exclusively under the Hering Kids brand
and the other will have a sales corner for the PUC brand. In addition, another two pilot stores will be opened
in 1Q11 within the same standard (one exclusive and the other with the PUC corner).
For the dzarm. brand, the Company has positive prospects and plans to open an exclusive pilot store of
the brand in 4Q10.
In the e-commerce operation, considering the good results already achieved, the company will reevaluate
the online business format in order to enhance the potential of this channel.
The Company will continue to grow sustainably, with cost control, strict risk management, attention to
market fluctuations and business opportunities. In order to boost efficiency, the strategy adopted will be to
produce more with the same amount of funds, without affecting product quality and the services offered to
clients.
3Q10 CONFERENCE CALL3Q10 CONFERENCE CALL3Q10 CONFERENCE CALL3Q10 CONFERENCE CALL
Date:Date:Date:Date: October 29, 2010.October 29, 2010.October 29, 2010.October 29, 2010.
National and International (simultaneous translation to English):National and International (simultaneous translation to English):National and International (simultaneous translation to English):National and International (simultaneous translation to English):
Time:Time:Time:Time: 11:00 a.m. (Brasilia time) / 9:00 a.m. (ET)
Dial-in numbers:
Brazil: (11) 4688-6361
US: (1) 888-700-0802
Other countries: (1) 786-924-6977
Audio of the conference call will be transmitted live via internet, together with a slide presentation on our
website www.ciahering.com.brwww.ciahering.com.brwww.ciahering.com.brwww.ciahering.com.br////ir.ir.ir.ir.
About HeringAbout HeringAbout HeringAbout Hering –––– With a background of 130 years, Hering is one of the largest retail and apparel designers and manufacturers in Brazil.With a background of 130 years, Hering is one of the largest retail and apparel designers and manufacturers in Brazil.With a background of 130 years, Hering is one of the largest retail and apparel designers and manufacturers in Brazil.With a background of 130 years, Hering is one of the largest retail and apparel designers and manufacturers in Brazil.
The company has retail activities under four brands:The company has retail activities under four brands:The company has retail activities under four brands:The company has retail activities under four brands: Hering, Hering Kids, PUC and dzarm. In Brazil, the Company’s distribution network is
formed by three sales channels: i) owned and franchised stores for Hering and PUC; ii) multibrand retail for Hering, Hering Kids, PUC and
dzarm. and; iii) Webstores for Hering, PUC and dzarm. Abroad, Cia. Hering exports its own brands to multibrand retail stores as well as
franchise stores. On September 30, 2010, the Company had a store network comprised of 303 Hering Stores, 75 PUC stores in 25 Brazilian
states, in addition to 15,798 clients in multibrand retail nationwide and 15 franchise stores in several countries in Latin America.

9. 9
Balance SheetBalance SheetBalance SheetBalance Sheet
(R$ thousand)(R$ thousand)(R$ thousand)(R$ thousand)
Statement SheetStatement SheetStatement SheetStatement Sheet
(R$ thousand)(R$ thousand)(R$ thousand)(R$ thousand)
Current assetsCurrent assetsCurrent assetsCurrent assets 516,295516,295516,295516,295 475,740475,740475,740475,740
Cash and cash equivalents 105,951 114,773
Interest-earning bank deposits 6,173 6,001
Trade accounts receivable 226,950 233,217
Inventories 146,289 100,152
Recoverable taxes 8,809 5,429
Deferred income and social contribution taxes 9,028 10,652
Other accounts receivable 12,482 4,493
Prepaid expenses 613 1,023
Noncurrent assetsNoncurrent assetsNoncurrent assetsNoncurrent assets 252,873252,873252,873252,873 241,063241,063241,063241,063
Long-term receivablesLong-term receivablesLong-term receivablesLong-term receivables 30,79330,79330,79330,793 29,82429,82429,82429,824
Interest-earning bank deposits 841 820
Other accounts receivable 12,806 12,734
Recoverable taxes 7,338 6,025
Compulsory loans 4,038 4,785
Deferred income and social contribution taxes 5,770 5,460
InvestmentsInvestmentsInvestmentsInvestments 8888 8888
Property, plant and equipmentProperty, plant and equipmentProperty, plant and equipmentProperty, plant and equipment 194,195194,195194,195194,195 182,295182,295182,295182,295
Intangible assetsIntangible assetsIntangible assetsIntangible assets 27,87727,87727,87727,877 28,93628,93628,93628,936
TOTAL ASSETSTOTAL ASSETSTOTAL ASSETSTOTAL ASSETS 769,168769,168769,168769,168 716,803716,803716,803716,803
ASSETSASSETSASSETSASSETS 3Q103Q103Q103Q10 2Q102Q102Q102Q10
Current liabilitiesCurrent liabilitiesCurrent liabilitiesCurrent liabilities 210,563210,563210,563210,563 180,360180,360180,360180,360
Loans and financing 14,016 9,538
Accounts payable to suppliers 102,171 80,990
Salaries and social security charges 32,586 26,942
Taxes in Installments 7,920 7,091
Taxes and social security contributions payable 25,766 24,143
Deferred income and social contribution taxes - -
Provisions for contingencies and other provisions 19,174 22,548
Tax incentives 2,627 2,570
Dividends payable 335 325
Other accounts payable 5,968 6,213
Noncurrent liabilitiesNoncurrent liabilitiesNoncurrent liabilitiesNoncurrent liabilities 160,061160,061160,061160,061 146,364146,364146,364146,364
Noncurrent liabilitiesNoncurrent liabilitiesNoncurrent liabilitiesNoncurrent liabilities 160,061160,061160,061160,061 146,364146,364146,364146,364
Loans and financing 46,430 39,723
Taxes in Installments 30,035 28,627
Taxes and social security contributions payable 798 760
Deferred income and social contribution taxes 30,780 26,700
Provisions for contingencies and other provisions 7,722 6,969
Tax incentives 40,762 40,157
Other accounts payable 3,534 3,428
Shareholder's equityShareholder's equityShareholder's equityShareholder's equity 398,544398,544398,544398,544 390,079390,079390,079390,079
Capital 226,293 224,549
Capital reserve 1,729 1,367
Profit reserve 91,676 91,676
Accumulated Profit 78,846 72,487
TOTAL LIABILITIES AND SHAREHOLDER´S EQUITYTOTAL LIABILITIES AND SHAREHOLDER´S EQUITYTOTAL LIABILITIES AND SHAREHOLDER´S EQUITYTOTAL LIABILITIES AND SHAREHOLDER´S EQUITY 769,168769,168769,168769,168 716,803716,803716,803716,803
2Q102Q102Q102Q10LIABILITIES AND SHAREHOLDER´S EQUITYLIABILITIES AND SHAREHOLDER´S EQUITYLIABILITIES AND SHAREHOLDER´S EQUITYLIABILITIES AND SHAREHOLDER´S EQUITY 3Q103Q103Q103Q10
ChangeChangeChangeChange ChangeChangeChangeChange
3Q10 / 3Q093Q10 / 3Q093Q10 / 3Q093Q10 / 3Q09 9M10 / 9M099M10 / 9M099M10 / 9M099M10 / 9M09
RevenuesRevenuesRevenuesRevenues 210,786210,786210,786210,786 287,295287,295287,295287,295 36.3%36.3%36.3%36.3% 589,242589,242589,242589,242 827,737827,737827,737827,737 40.5%40.5%40.5%40.5%
Domestic Market 206,792 279,820 35.3% 576,828 810,391 40.5%
Foreign Market 3,994 7,475 87.2% 12,414 17,346 39.7%
Sales Deduction (35,096) (52,115) 48.5% (105,948) (145,211) 37.1%
Net RevenueNet RevenueNet RevenueNet Revenue 175,690175,690175,690175,690 235,180235,180235,180235,180 33.9%33.9%33.9%33.9% 483,294483,294483,294483,294 682,526682,526682,526682,526 41.2%41.2%41.2%41.2%
Cost of Goods Sold (92,280) (123,414) 33.7% (266,247) (356,592) 33.9%
Gross ProfitGross ProfitGross ProfitGross Profit 83,41083,41083,41083,410 111,766111,766111,766111,766 34.0%34.0%34.0%34.0% 217,047217,047217,047217,047 325,934325,934325,934325,934 50.2%50.2%50.2%50.2%
Operating ExpensesOperating ExpensesOperating ExpensesOperating Expenses (49,734)(49,734)(49,734)(49,734) (61,817)(61,817)(61,817)(61,817) 24.3%24.3%24.3%24.3% (139,208)(139,208)(139,208)(139,208) (173,454)(173,454)(173,454)(173,454) 24.6%24.6%24.6%24.6%
Selling Expenses (35,130) (40,883) 16.4% (98,709) (118,728) 20.3%
Management Remuneration (1,422) (1,505) 5.8% (3,494) (4,537) 29.9%
Administrative and General Expenses (5,685) (8,553) 50.4% (17,467) (20,611) 18.0%
Depreciation and Amortization (4,788) (7,752) 61.9% (13,964) (21,734) 55.6%
(-) Allocated to Cost 2,384 4,683 96.4% 7,194 13,078 81.8%
Profit Sharing (4,487) (4,237) -5.6% (11,451) (15,268) 33.3%
Other Operating Income (Expenses), net (606) (3,570) 489.1% (1,317) (5,654) 329.3%
Operating Income Before Financial ResultsOperating Income Before Financial ResultsOperating Income Before Financial ResultsOperating Income Before Financial Results 33,67633,67633,67633,676 49,94949,94949,94949,949 48.3%48.3%48.3%48.3% 77,83977,83977,83977,839 152,480152,480152,480152,480 95.9%95.9%95.9%95.9%
Financial Results, net (15,174) (7,498) -50.6% (13,249) (3,907) -70.5%
Derivative Financial Instruments Results, net (193) - N.D 24,866 (13) N.D
Total Financial Income (Expenses)Total Financial Income (Expenses)Total Financial Income (Expenses)Total Financial Income (Expenses) (15,367)(15,367)(15,367)(15,367) (7,498)(7,498)(7,498)(7,498) -51.2%-51.2%-51.2%-51.2% 11,61711,61711,61711,617 (3,920)(3,920)(3,920)(3,920) N.DN.DN.DN.D
Operating Income Before Interest in SubsidiariesOperating Income Before Interest in SubsidiariesOperating Income Before Interest in SubsidiariesOperating Income Before Interest in Subsidiaries 18,30918,30918,30918,309 42,45142,45142,45142,451 131.9%131.9%131.9%131.9% 89,45689,45689,45689,456 148,560148,560148,560148,560 66.1%66.1%66.1%66.1%
Income and Social Contribution Taxes - Current (3,186) (13,070) 310.2% (13,894) (44,779) 222.3%
Income and Social Contribution Taxes - Deferred (7,344) (5,394) -26.6% (24,605) (7,311) -70.3%
Interest of Non-Controlling Shareholders - - N.D - 4 N.D
Reversion of Interest on Shareholders Equity 15,186 9,492 -37.5% 15,186 9,492 -37.5%
Net Income for the PeriodNet Income for the PeriodNet Income for the PeriodNet Income for the Period 22,96522,96522,96522,965 33,47933,47933,47933,479 45.8%45.8%45.8%45.8% 66,14366,14366,14366,143 105,966105,966105,966105,966 60.2%60.2%60.2%60.2%
EBITDAEBITDAEBITDAEBITDA 38,46438,46438,46438,464 57,70157,70157,70157,701 50.0%50.0%50.0%50.0% 91,80391,80391,80391,803 174,214174,214174,214174,214 89.8%89.8%89.8%89.8%
3Q103Q103Q103Q10 9M099M099M099M09 9M109M109M109M10R$ ThousandR$ ThousandR$ ThousandR$ Thousand 3Q093Q093Q093Q09

10. 10
Cash FlowCash FlowCash FlowCash Flow
(R$ thousand)(R$ thousand)(R$ thousand)(R$ thousand)
Statements contained in this release, relative to the business outlook of the Company, forecasts of operating and financial income
and references to growth prospects are mere forecasts and were based on the expectations of Management in relation to future
performance. These expectations are highly dependent on market conduct, the economic situation in Brazil, its industry and
international markets and, therefore, are subject to change.
Cash flow from operating activitiesCash flow from operating activitiesCash flow from operating activitiesCash flow from operating activities
Net income for the period 22,965 33,479 66,143 105,966
Adjustments to reconcile net income to net cash generated by operating activities:
Deferred taxes 7,344 5,394 24,604 7,310
Unrealized exchange and monetary variation 982 1,535 7,778 4,714
Depreciation and amortization 4,788 7,752 13,964 21,734
Provision for doubtful accounts 795 (2,664) 3,271 (2,259)
Result on the sale of fixed assets 1,429 - 1,493 76
Stock option plan 200 362 451 823
Interest of non-controlling shareholders - - - (4)
- -
Changes in assets and liabilitiesChanges in assets and liabilitiesChanges in assets and liabilitiesChanges in assets and liabilities - -
Decrease (increase) in trade accounts receivable 9,294 8,931 (6,230) (9,234)
(Increase) in inventories (14,355) (46,137) (29,830) (56,914)
(Increase) decrease in recoverable taxes (1,093) (4,693) 672 (6,836)
(Increase) decrease in other accounts receivable 295 (6,904) 7,650 (4,405)
Increase in accounts payable to suppliers 16,448 21,181 39,667 48,101
Increase (decrease) in accounts payable and provisions (5,246) 2,885 (42,973) 8,660
Increase (decrease) in taxes payable (9,429) 4,560 (8,556) 17,038
Cash provided by operating activitiesCash provided by operating activitiesCash provided by operating activitiesCash provided by operating activities 34,41734,41734,41734,417 25,68125,68125,68125,681 78,10478,10478,10478,104 134,770134,770134,770134,770
Cash flows from investing activitiesCash flows from investing activitiesCash flows from investing activitiesCash flows from investing activities
- - - 1,178
Purchase of property, plant and equipment (10,015) (18,021) (18,198) (44,037)
Purchase of intangible (2,178) (572) (5,321) (9,315)
Cash used in investing activitiesCash used in investing activitiesCash used in investing activitiesCash used in investing activities (12,193)(12,193)(12,193)(12,193) (18,593)(18,593)(18,593)(18,593) (23,519)(23,519)(23,519)(23,519) (52,174)(52,174)(52,174)(52,174)
---- ----
Cash flows from financing activitiesCash flows from financing activitiesCash flows from financing activitiesCash flows from financing activities - - - -
Capital increase - 1,744 - 2,448
Interest-earning bank deposits 12,444 (193) 41,974 (494)
Interest on shareholders' equity and dividends paid (15,186) (27,110) (25,764) (53,101)
Loans taken out 1,541 14,591 14,219 15,500
Payments of loans (2,215) (3,638) (64,045) (31,884)
Interest paid on loans (1,731) (1,304) (7,953) (5,442)
Changes in related parties balances 9 - 34 130
Cash used in financing activitiesCash used in financing activitiesCash used in financing activitiesCash used in financing activities (5,138)(5,138)(5,138)(5,138) (15,910)(15,910)(15,910)(15,910) (41,535)(41,535)(41,535)(41,535) (72,843)(72,843)(72,843)(72,843)
- -
Decrease in cash and cash equivalentsDecrease in cash and cash equivalentsDecrease in cash and cash equivalentsDecrease in cash and cash equivalents 17,08617,08617,08617,086 (8,822)(8,822)(8,822)(8,822) 13,05013,05013,05013,050 9,7539,7539,7539,753
- -
Decrease in cash and cash equivalentsDecrease in cash and cash equivalentsDecrease in cash and cash equivalentsDecrease in cash and cash equivalents - -
At beginning of the year 60,973 114,773 65,009 96,198
At end of the year 78,059 105,951 78,059 105,951
17,08617,08617,08617,086 (8,822)(8,822)(8,822)(8,822) 13,05013,05013,05013,050 9,7539,7539,7539,753
R$ ThousandR$ ThousandR$ ThousandR$ Thousand 3Q093Q093Q093Q09 3Q103Q103Q103Q10 9M099M099M099M09 9M109M109M109M10