The document summarizes Cia. Hering's 3Q15 results conference call. It discusses gross revenues which were influenced by retail channel retraction. EBITDA declined 26.6% due to operational deleveraging and additional selling expenses. Net income increased 37.9% due to a non-recurring tax gain. Cash flow declined due to lower EBITDA generation and working capital erosion, partially offset by lower taxes. Priorities going forward include sales growth through improved assortment, supply and products while recovering margins through reductions in inventory, imports and promotions. Expenses will also be controlled while building new growth fronts.

1. 3Q15 Results
Conference Call
October 30th, 2015 – 11:30 am (BrT)
9:30 am (NY)/ 1:30 pm (London)

2. This presentation contains forward-looking statements
regarding the prospects of the business, estimates for
operating and financial results, and those regarding
Cia. Hering'sgrowth 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’sfiled
disclosure documents and are, therefore, subject to
change without prior notice.
DISCLAIMER

3. Pictures of DZARM. store, opened in September, illustrates this presentation.

4. 3Q15
Outlook
Q&A
AGENDA

5. 3Q15 Results
5
GROSS REVENUES AND BREAKDOWN BY BRAND
R$ MILLION – DOMESTIC MARKET
Gross revenues of R$ 422.0 million influenced by the multibrand retraction given
environment deterioration and better performance at the franchise channel.
GROSS REVENUES BREAKDOWN PER CHANNEL
DOMESTIC MARKET EX-‘OTHER REVENUES’
3Q15, R$ MILLION- CHANGE 3Q15 x 3Q14
3Q15 3Q14 Change 9M15 9M14 Change
413.1 422.8 -2.3% 1,261.8 1,372.1 -8.0%
306.8 308.2 -0.5% 939.6 1,007.6 -6.7%
49.8 49.8 0.1% 146.4 156.2 -6.3%
30.0 36.4 -17.5% 94.3 114.9 -17.9%
19.9 22.4 -11.3% 65.0 74.0 -12.1%
6.6 6.0 9.4% 16.6 19.4 -14.6%Others

6. 3Q15 Results
6
HERING STORE NETWORK
GROSS SALES ‘SELL-OUT’, R$ MILLION
Gross revenues of R$ 323.8 million (-1.7%),
favored by the net addition of 36 stores
which partially offsets SSS decline.
¹ Stores opened in the last twelve months net from closings.
Concluded in October the inventory
reduction campaign that boosted selling
of past collections items, therefore
reducing inventory network.
Better supply and stores organization to
the period preceding christmas.

7. 3Q15 Results
7
LAUNCH OF THE FIRST DZARM. STORE AFTER REPOSITIONING – SEP’2015
 Pátio Higienópolis Mall, in São Paulo
 Visual and Concept totally renewed
 Contemporary and urban project
 Store experience: finishing details, lighting and furniture translates brand’s sensuality

8. Pátio Higienópolis Mall – São Paulo State

9. 3Q15 Results
9
DZARM.: PORTFÓLIO DIVISION AND STYLE ADVISORY
WorkDay JeansAccessoriesParty
Product line focused on women of 18-30 years-old and
organized by occasion of usage.

10. 3Q15 Results
10
GROSS PROFIT
R$ MILLION
EBITDA
R$ MILLION
26.6% retraction in EBITDA mainly due to
operational deleveraging and additional
R$ 4.7 million in Selling Expenses, related
to the inventory reduction campaign.
Cash gross margin contraction of 120 bp due to
higher promotional activity, especially maked-down
items (‘saldos’), and sales retraction, insufficient to
dilute fixed costs.

11. 3Q15 Results
11
NET INCOME
R$ MILLION
CAPEX
R$ MILLION
New investments made in plants located in
Goiás. SAP implementation scheduled for early
2016.
Net income of R$ 97.8 million (+37.9%). Lower
operating income offset by non-recurring gain of
R$ 53.5 million in Income Tax and Social
Contribution¹.
¹ On 10.02.2015 was announced the Eurobonds liquidation issued by the Company and held by its subsidiary Hering Overseas Ltd.,
with subsequent subsidiary dissolution and liquidation. For further details see the Material Fact released on the day.

12. 3Q15 Results
12
CASH FLOWS
R$ MILLION
Cash flow of R$ 5.2 million in 3Q15, R$ 19.9 million less than 3Q14 due to
lower EBITDA generation and working capital erosion, partially offset
by lower Income Tax and Social Contribution.
Cash Flow - Consolidated 3Q15 3Q14 Chg. 9M15 9M14 Chg.
EBITDA 54,829 74,725 (19,896) 168,527 266,116 (97,589)
Non cash items 4,946 1,286 3,660 20,020 13,963 6,057
Current Income tax and Social Contribution 12,925 (1,744) 14,669 1,738 (51,504) 53,242
Working Capital Capex (44,031) 16,171 (60,202) (44,020) 12,324 (56,344)
Decrease in trade accounts receivable 15,846 61,767 (45,921) 109,352 92,029 17,323
(Increase) in inventories (71,000) (56,819) (14,181) (102,231) (50,132) (52,099)
Increase (decrease) in accounts payable to suppliers 18,307 33,702 (15,395) (7,966) 29,104 (37,070)
(Decerease) in taxes payable (3,248) (17,028) 13,780 (31,214) (56,094) 24,880
Others (3,936) (5,451) 1,515 (11,961) (2,583) (9,378)
CapEx (23,443) (25,992) 2,549 (66,586) (59,388) (7,198)
Free Cash Flow 5,226 64,446 (59,220) 79,679 181,511 (101,832)
Reconciliation from accounting Cash flow to adjusted Cash flow (R$ thousand) 3Q15 3Q14 Chg. 9M15 9M14 Chg.
DFC - Cash provided by operating activities (accounting) 40,124 99,871 (59,747) 176,702 264,761 (88,059)
Adjustment – Financial items allocated to operating cash (11,455) (9,433) (2,022) (30,437) (23,862) (6,575)
Unrealized exchange and monetary variation (24) (441) 417 (618) (1,318) 700
Financial Result (11,467) (9,434) (2,033) (30,647) (23,847) (6,800)
Interest paid on loans 36 442 (406) 828 1,303 (475)
DFC - Cash flows from investing activities (23,443) (25,992) 2,549 (66,586) (59,388) (7,198)
Free Cash Flow 5,226 64,446 (59,220) 79,679 181,511 (101,832)

13. 3Q15
Outlook
Q&A
AGENDA

14. 3Q15 Results
14
Priority for actions that combine sales growth and margin recovery…
• Sales Growth - Focus on improving assortment and stores supply
:: Assortment
:: Supply
:: Product
• Margin Recovery
:: Reduction of leftovers inventories
:: Reduction of imported mix
:: Pricing strategy
• Expenses Control
... without losing focus on building new growth fronts

15. AGENDA
3Q15
Outlook
Q&A

16. INVESTOR RELATIONS TEAM
Fabio Hering – CEO
Frederico Oldani – CFO and IRO
Bruno Salem Brasil – IR Manager
Caroline Luccarini – IR Analyst
www.ciahering.com.br/ir
+ 55(11) 3371-4867/4805
ri@hering.com.br