1. 3Q11 Results
Conference Call
October 28, 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
3Q11 Operating
Performance
Outlook
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4. 3Q11 HIGHLIGHTS
 Gross revenue of R$ 386.6 million in the quarter (+34.6%);
 Double-digit sales growth for all brands;
 EBITDA at R$ 88.8 million (+54.4%), with EBITDA margin up 3.2 p.p. to 27.7%;
 Net Profit at R$ 63.7 million (+63.0%).
 Hering Store Chain:
 Goal revision: 418 Stores to 433 Stores by the end of 2011
 Total sales of R$ 257.3 million in the quarter (+31.9%);
 Same Store Sales growth at 9.0%;
 Opening of 89 stores since 3Q10, 17 in the quarter;
 Remodeling of 10 stores in the quarter.
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5. AGENDA
Highlights
3Q11 Operating
Performance
Outlook

6. SALES PERFORMANCE
Gross Revenue ( R$ million) Domestic Market ( R$ million)
386.6
34.6%
3Q10 3Q11
278.3
8.2 R$ 207.3 +32.7% R$ 275.0
10.0%
7.5 R$ 21.3 R$ 31.3
+46.8%
35.2%
R$ 26.5 +25.7% R$ 33.3
378.4
279.8
R$ 18.3 +31.3% R$ 24.1
3Q10 3Q11
Domestic Market Foreign Market Total
In the 3Q11, gross sales reached R$ 386.6 million (+34.6%), sales growth
above 25% in all brands.
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7. STORES CHAIN EVOLUTION
+ 17 stores ( + 17 Hering Stores)
+ 96 stores ( + 89 Hering Stores)
489
472
16 1
393 16
1 76
77
15 4
3
75
375 392
303
3Q10 2Q11 3Q11
Hering Store Hering Kids PUC dzarm. Foreign Franchise Total
In the 3Q11 the Company reached 392 Hering Stores in the domestic
market, a yoy increase of 89 stores.
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8. HERING STORE CHAIN PERFORMANCE
Hering Store Chain Performance 3Q10 3Q11 Chg. Acc 3Q10 Acc 3Q11 Chg.
Number of Stores 303 392 29.4% 303 392 29.4%
Franchise 261 347 33.0% 261 347 33.0%
Owned 42 45 7.1% 42 45 7.1%
Sales (R$ thousand) (1) 195,094,144 257,320,961 31.9% 559,617,797 773,276,424 38.2%
Franchise 158,531,932 216,537,088 36.6% 453,329,379 645,312,135 42.3%
Owned 36,562,213 40,783,873 11.5% 106,288,418 127,964,289 20.4%
Same Store Sales growth (2) 33.6% 9.0% -24.6 p.p 26.8% 15.6% -11.2 p.p
Sales Area (m²) 38,763 51,812 33.7% 38,763 51,812 33.7%
Sales (R$ per m²) 5,163 5,091 -1.4% 15,227 16,161 6.1%
Check-Outs 2,196,420 2,626,868 19.6% 6,226,526 7,873,189 26.4%
Units 4,925,048 5,610,529 13.9% 13,792,522 16,747,701 21.4%
Units per Check-Out 2.24 2.14 -4.7% 2.22 2.13 -4.0%
Average Sales Price (R$) 39.61 45.86 15.8% 40.57 46.17 13.8%
Average Sales Ticket (R$) 88.82 97.96 10.3% 89.88 98.22 9.3%
(1)
The amounts referred to the sales to final costumers. (sell out concept)
(2)
Compared to the same period of the previous year
In spite of the challenges faced in the 3Q11, SSS growth of 9.0%, below our
expectations, mainly driven by the increase in average sales ticket.
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9. GROSS PROFIT AND EBITDA
Gross Profit and Gross Margin EBITDA and EBITDA Margin
-0.2 p.p.
49.5% 49.3%
48.4% -0.3 p.p. 48.1%
+3.2 p.p.
27.7%
24.4%
35.6%
54.4%
154.4
113.8 88.8
57.5
3Q10
3T10 3Q11
3T11 3Q10
3T10 3Q11
3T11
Gross Profit % Gross Margin % Cash Gross Margin EBITDA (R$ Million) % EBITDA Margin
(R$ Million)
The high operational leverage, strict expense management and reduction
of raw material costs pressure led to a 320 bps EBITDA margin expansion.
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10. NET PROFIT AND CAPEX
Net Profit (R$ million) Capex (R$ million)
+3.2 p.p.
18.6
19.9%
16.6% 1.2
0.6
28.9%
1.9 13.2
1.7
63.0% 0.2
4.5
14.9
63.7
39.1
6.8
3T10
3Q10 3Q11
3T11 3T10
3Q10 3T11
3Q11
Net Profit (R$ Million) % Net Margin Industry IT Others Stores Total
Expressive net profit growth, due to improved operating performance, increase
in financial revenue (AVP), and establishment of investment grants.
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11. CASH FLOW
Cash Flow - Consolidated (R$ thousand) 3Q10 3Q11 Chg. 9M10 9M11 Chg.
EBITDA 57,499 88,800 31,301 173,604 260,656 87,052
No cash items 777 603 -174 1,254 1,642 388
Current Income tax and Social Contribution -13,070 -23,187 -10,117 -44,780 -65,026 -20,246
Working Capital Capex -23,054 2,010 25,064 -5,606 -37,308 -31,702
Decrease (increase) in trade accounts receivable 6,267 34,599 28,332 -11,493 5,002 16,495
(Increase) in inventories -46,552 -26,047 20,505 -57,268 -46,412 10,856
Increase (decrease) in accounts payable to suppliers 21,181 -1,675 -22,856 48,101 2,670 -45,431
Increase in taxes payable 4,560 4,466 -94 17,038 16,027 -1,011
Others -8,510 -9,333 -823 -1,984 -14,595 -12,611
CapEx -18,593 -13,224 5,369 -52,174 -28,895 23,279
Free Cash Flow 3,559 55,002 51,443 72,298 131,069 58,771
Reconciliation from accounting Cash flow to adjusted Cash flow (R$ thousand) 3Q10 3Q11 Chg. 9M10 9M11 Chg.
DFC - Cash provided by operating activities 24,377 74,217 49,840 129,328 179,712 50,384
Adjustment – Financial items allocated to operating cash -2,225 -5,991 -3,766 -4,856 -19,748 -14,892
Unrealized exchange and monetary variation -1,535 -1,164 371 -4,713 -3,713 1,000
Financial Result -1,994 -5,890 -3,896 -5,585 -19,503 -13,918
Interest paid on loans 1,304 1,063 -241 5,442 3,468 -1,974
DFC - Cash flows from investing activities -18,593 -13,224 5,369 -52,174 -28,895 23,279
Free Cash Flow 3,559 55,002 51,443 72,298 131,069 58,771
Increase of R$ 51.4 million in free cash flow, mostly due to EBITDA growth, and
lower investments and working capital needs.
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12. INDEBTEDNESS
Net Debt ( R$ million) Short Term x Long Term
4.6
3.5
0.1
(0.2) (0.2) Short
(0.7) (0.4)
Term
62.1% Long
201.3 184.6
Term
37.9%
11.0
(33.4) (25.1)
(61.9) (147.4)
Gross Debt = R$ 41.5 million
2005 2006 2007 2008 2009 2010 3Q11
Net Debt/ EBITDA*
* Last 12 months EBITDA
Cia. Hering increased its net cash position by R$ 60.9 million in 3Q11 and
reduced its debt by R$ 2.9 million, mainly due to cash generation.
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13. AGENDA
Highlights
3Q11 Operating
Performance
Outlook

14. OUTLOOK
 Hering Brand still with high growth potential, although we belive recent historic performance
posted a more expressive level:
 Stores opening and SS growth in Hering Store chain.
 Multibrand retail channel: continuous market share increase in existing clients.
 Children’s market :
 Continuity of Hering Kids and PUC brands repositioning.
 Higher confidence in the possibility of the development of a Hering Kids store network -
decision should be made in the near future.
 Evaluation of PUC chain’s alignment to the brand’s new positioning - possible
discontinuation of some operations.
 Continuity of the dzarm. strategy, investing in the brand´s development and evaluating the
possibility of opening more flagship stores.
 Webstore relaunch, with new logistics and technology infraestructure.
 Positive perspectives for 4Q11: reduction of raw material costs, high leverage, and operating
expenses dilution, contributing to the expansion of EBITDA margins for the remainder of the year.
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15. INVESTOR RELATIONS TEAM
Fabio Hering – CEO
Frederico Oldani – CFO and IRO
Patrícia Salem – IR Manager
Tel. +55 (11) 3371-4867
E-mail: ri@hering.com.br
Website: www.ciahering.com.br/ri