1. 4Q13 Results
Conference Call
February 21, 2014

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
4Q13 Operating
Performance
Outlook

4. HIGHLIGHTS 4Q13 AND 2013
 Gross Revenues growth of 10.2% in the quarter and 12.6% in 2013;
 EBITDA of R$137.7 million if 4Q13, 3.5% growth, and R$ 439.0 million in 2013, 7.8% growth;
 Net income of R$ 101.7 million (+0.7%) in 4Q13 and R$ 318.2 million in 2013 (+2.3%);
 Hering Store Network:
 Addition of 77 stores to the network, ending the year with 592 stores;
 10.1% sales growth in the quarter and in the year, reaching R$ 584.0 million and R$1,572.0
million respectively
 70 stores openings guidance – 662 until the end of 2014
 Hering Kids:
 Stores network expansion, with 43 openings in 2013
 Stores openings guidance of 30 stores – 100 until the end of 2014
4

5. 4Q13 OVERVIEW
Revenues per Brand (R$ million)
Revenues per Channel (R$ million)
2.6%
2012
R$ 1,335.3
2013
+12.0%
16.8%
16.8
R$ 1,495.7
226.6
19.5
R$ 158.5
+25.5%
R$ 199.1
R$ 141.5
+10.9%
R$ 156.9
17.7%
17.7
652.1
232.5
22.7
767.5
11.6%
11.6
834.1
2012
R$ 97.0
+5.0%
930.8
2013
R$ 101.8
*Domestic Market
Multibrand Retail
Distribution Network
Franchise
Webstore
Own Stores
EBITDA (R$ million)
2012
2013
% Domestic
Market 2013
% Growth
Multi-brand
Retail
17,119
clients
17,898
clients
47.6%
11.6%
Franchises
556
Stores
672
Stores
39.3%
17.7%
Webstore
3 stores
3 stores
1.2%
16.8%
Own Stores
65 stores
71 stores
11.9%
2.6%
Channel
27.3%
26.1%
7.8%
439.0
407.4
2012
2013
EBITDA
EBITDA Margin
5

6. STORES NETWORKS
Stores Evolution
760
17
80
638
530
16
76
17
78
70
1
27
1
5
592
515
432
2011
Hering Store
1
2012
Hering Kids
PUC
2013
dzarm.
Total Foreign Market
In the domestic market, the Company ended 2013 with 592 Hering Stores, 80 PUC, 70
Hering Kids and 1 dzarm store.
6

7. HERING STORE NETWORK PERFORMANCE
Hering Store Network (Sell Out R$ Millions)
Promotional Campaigns
+10.1%
+77 stores
-0.6%
1,428.1
135
135
2012
Expansão
Expansion
SSS
1,572.0
2013
SSS growth acceleration to +1.1% in 4Q13, ending the year with a 0.6% in comparison to
2012. In the quarter was promoted the “Anticipate your Christmas” campaign, stimulating
sales both before and after christmas.
7

8. AGENDA
Highlights
4Q13 Operating
Performance
Outlook

9. SALES PERFORMANCE
12.6%
1,793.7
27.1
2,019.4
31.8
12.5%
17.3%
1,987.6
10.2%
1,766.6
608.9
552.8
7.2
545.6
8.5
10.0%
600.4
18.1%
4Q12
4Q13
Domestic Market
2012
2013
Foreign Market
Gross Revenues reached R$ 2.0 billion in 2013, with growth of 10.2% and 12.6% in
4Q13 and in the year, respectively.
9

10. GROSS PROFIT AND GROSS MARGIN
47.3%
45.9%
46.3%
44.9%
6.5%
46.7%
45.5%
11.7%
679.2
212.1
4Q13
45.2%
758.5
225.9
4Q12
46.2%
Gross Profit
2012
Gross Margin
2013
Cash Gross Margin
Gross margins of 45.2% (0.3 p.p.) in 2013 and 44.9% (-1.4 p.p.) in 4Q13, due to higher
costs pressure, lower level of fiscal incentives and challenging sales scenario.
10

11. EBITDA AND EBITDA MARGIN
29.0%
27.4%
27.3%
26.1%
7.8%
407.4
439.0
3.5%
133.0
137.7
4Q12
4Q13
EBITDA
2012
2013
EBITDA Margin
EBITDA of R$ 137.7 million in 4Q13, totalling R$ 439.0 million in the year with EBITDA
margin of 26.1% (-1.2 p.p.), mainly due to the drop in gross margin.
11

12. NET INCOME AND NET MARGIN
22.1%
20.2%
20.9%
18.9%
311.0
101.0
4Q12
0.7%
2.3%
318.2
101.7
4Q13
Net Income
2012
2013
Net Margin
Net income of R$ 318.2 million (+2.3%) with net margin of 18.9% (-2.0 p.p.) in the year,
as a consequence of the reduction in EBITDA margin and higher income and social
contribution taxes.

13. CAPEX
Per Activity ( R$ millions)
13.7%
63.5
6.0
1.8
72.2
8.4
2.6
26.6
22.3
23.9
21.7
2.5
0.3
8.8
2.6
1.3
7.8
33.4
34.6
2012
2013
-9.2%
12.3
10.0
4Q12
4Q13
Industry
IT
Others
Stores
CAPEX in 2013 totalled R$ 72.2 million, with a 13.7% growth in the year, mainly due to
the increase in IT investments.
13

14. CASH FLOW
Cash Flow - Consolidated (R$ thousand)
4Q12
4Q13
Chg.
2012
EBITDA
Non cash items
Current Income tax and Social Contribution
Working Capital Investment
(Increase) in trade accounts receivable
(Increase) decrease in inventories
Increase (decrease) in accounts payable to suppliers
Increase (decrease) in taxes payable
Others
CapEx
Free Cash Flow
132,982
1,680
(33,340)
(95,442)
(106,716)
7,352
5,627
(248)
(1,457)
(23,893)
(18,013)
137,666
1,214
(34,752)
(110,814)
(104,859)
10,956
(18,411)
16,204
(14,704)
(21,691)
(28,377)
4,684
(466)
(1,412)
(15,372)
1,857
3,604
(24,038)
16,452
(13,247)
2,202
(10,364)
407,396
4,236
(95,911)
(43,506)
(67,615)
6,361
30,130
(16,895)
4,513
(63,489)
208,726
2013
438,994
4,701
(116,654)
(131,139)
(48,805)
(84,573)
(1,550)
(1,132)
4,921
(72,217)
123,685
Chg.
31,598
465
(20,743)
(87,633)
18,810
(90,934)
(31,680)
15,763
408
(8,728)
(85,041)
* Dividends distribution: R$ 49.9 million were destined as a proposal to be distributed through the approval of the General Shareholders
Meeting.
Free cash flow in the year reached R$ 123.7 million, a decrease of R$ 85 million in
comparison to 2012, as a function of the increase in EBITDA compensated by the
increases in inventory levels and higher income and social contribution taxes increase.
14

15. DIVIDENDS
1.8
300000.0
1.59
1.6
250000.0
1.4
1.05
200000.0
1.2
0.84
1
0.84
150000.0
0.64
0.8
261,921
0.6
100000.0
171,602
138,504
0.4
50000.0
82,446
0.2
34,558
0
-
2009
2010
2011
Dividends (R$ Thousands)
2012
2013*
$/Share
*Considering the amount of R$ 49,993 thousand destined to be approved by the
General Shareholder´s Meeting in 04/24/2014 as dividends payment
The dividends and interest on capital payments proposed for 2013 totalled R$ 138.5 million, in
line with the year´s free cash flow.
15

16. AGENDA
Highlights
4Q13 Operating
Performance
Outlook

17. OUTLOOK
 Challenging scenario in 1H14, both in sales and margins
 Hering brand:
 New strategy should begin generating results starting in 2H14
 Opening of 70 Hering Stores in 2014
 Market share increase in the multi-brand retail and in the north and northeast regions
 Hering For You – Launching in the winter collection and opening of the first store in the 1st semester
 Children Market – Focus on the Hering Kids network expansions (30 openings in 2014)
 New dzarm.´s business plan under development
 Besides the short term challenges, we remain optimistic with the potential of our brands and the new
management structure should allow us to accelerate growth in our current brands as well as
developing new growth platforms
17

18. INVESTOR RELATIONS TEAM
Fabio Hering – CEO
Frederico Oldani – CFO and IRO
Daniel Popovich – IR Analyst
Tel. +55 (11) 3371-4867
E-mail: ri@hering.com.br
Website: www.ciahering.com.br/ri