Hering reported its 3Q17 results with the following highlights: - Gross revenues increased 5.1% to R$433.7 million, influenced by own stores, webstores, and foreign market performance. - EBITDA was R$63.8 million with 310 basis point margin expansion due to sales growth and gross margin increase. - Net income decreased 9.8% to R$51.9 million due to a financial income gain in 3Q16 impacting comparisons. - ROIC increased 130 basis points to 16.7% mainly due to recovery in operating results.

1. 3Q17 Results
Conference Call
October 27th, 2017 – 12:00 pm (BrT)
10:00 am (NY)/ 3:00 pm (London)

2. 3Q17 Results
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.
• Financial Performance
• Outlook
• Q&A
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3. FINANCIAL PERFORMANCE
GROSS REVENUES AND BREAKDOWN BY BRAND
R$ MILLION
GROSS REVENUES BREAKDOWN PER CHANNEL
DOMESTIC MARKET EX-OTHER REVENUES
3Q17, R$ MILLION – CHANGE 3Q17 X 3Q16
Gross Revenue of R$ 433.7 million in 3Q17, influenced by own stores,
webstores and foreign market’s performance
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3Q17 3Q16 Chg. 9M17 9M16 Chg.
433.7 412.8 5.1% 1,304.0 1,233.3 5.7%
305.2 294.2 3.8% 923.1 885.8 4.2%
59.4 54.4 9.1% 180.4 153.8 17.3%
30.4 31.7 -3.9% 88.0 86.9 1.3%
17.2 16.3 5.4% 52.4 49.0 7.0%
12.8 9.0 41.7% 35.7 31.9 12.0%International
Market
* Cia. Hering total sales also includes ‘Other Revenues’: 2nd quality products, raw materials, among others.

4. HERING STORE NETWORK
GROSS SALES
SELL-OUT, R$ MILLION
Gross revenues of R$ 299.4 million (+3.6%), influenced by SSS
resumption (+3.5%) and better operational execution
¹ Change in store count over the last 12 months.
HERING STORE REFURBISHMENT PLAN
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Shopping Iguatemi Florianópolis – Santa Catarina State
• Renovated points of sale coupled with best practices
has favored its performance
• Company will reinforce initiatives adhesion, by the
network, favoring inventory turnover and minimizing
the negative effects caused by stockout and
leftovers

5. FINANCIAL PERFORMANCE
EBITDA of R$ 63.8 million, 310 bp of margin expansion
due to sales growth and gross margin increase, partially
offset by higher operating expenses (includ. bonus)
Gross margin gain (+590 bp) due to the exclusion of ICMS from the PIS
and Cofins calculation basis, lower volume of past-season items, mix
of channels and fixed costs dilution
GROSS PROFIT
R$ MILLION
EBITDA
R$ MILLION
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6. FINANCIAL PERFORMANCE
NET INCOME
R$ MILLION
CAPEX
R$ MILLION
Net income of R$ 51.9 million (-9.8%), due to financial income retraction
explained by a gain from a lawsuit, in 3Q16, impacting comparison basis
and higher Income Tax and Social Contribution effective rate
It stands out the new wave of the sorter implementation and
investments in technology for omnichannel initiatives and
sales systems’ integration
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0.2

7. FINANCIAL PERFORMANCE
Cash flow of R$ 27.9 million, similar to 3Q16.
Company’s higher profitability (EBITDA) was offset by greater need of working capital, mainly in
inventories, explained by manufacture anticipation of the High Summer collection aiming at
optmizing Company’s manufacturing process
CASH FLOWS
R$ MILLION
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Cash Flow - Consolidated (R$ thousand) 3Q17 3Q16 Chg. 9M17 9M16 Chg.
EBITDA 63,817 48,751 15,066 179,434 146,618 32,816
Non cash items 3,871 (5,475) 9,346 15,553 (3,409) 18,962
APV (Adjustment to Present Value) - Clients and Suppliers 6,821 3,858 2,963 17,585 14,715 2,870
Current Income tax and Social Contribution (7,591) (4,365) (3,226) (18,974) (6,010) (12,964)
Working Capital Capex (25,587) (10,636) (14,951) (49,448) 74,142 (123,590)
(Increase) decrease in trade accounts receivable 19,989 7,102 12,887 54,829 99,824 (44,995)
(Increase) decrease in inventories (50,075) (32,013) (18,062) (108,060) (19,443) (88,617)
Increase (decrease) in accounts payable to suppliers (8,814) 25,329 (34,143) (25,810) 12,581 (38,391)
(Decrease) in taxes payable 1,672 (4,418) 6,090 (8,104) (21,043) 12,939
Refurbishment Project - Franchisee Financing 3,144 (6,117) 9,261 9,146 (8,612) 17,758
Others 8,497 (519) 9,016 28,551 10,835 17,716
CapEx (13,386) (4,303) (9,083) (34,682) (14,258) (20,424)
Free Cash Flow 27,945 27,830 115 109,468 211,798 (102,330)

8. FINANCIAL PERFORMANCE
ROIC
R$ MILLION
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ROIC of 16.7%, 130 bp higher compared to 3Q16, mainly due to the recovery
in Company’s operating result
Return on Invested Capital (ROIC) - R$ thousands 3Q17 2Q17
Chg.
3Q17 / 2Q17
3Q16
Chg.
3Q17 / 3Q16
EBITDA 240,385 225,319 6.7% 240,967 -0.2%
(-) Depretiation and Amortization (59,244) (58,151) 1.9% (54,183) 9.3%
(+) Amortization - Right of use properties ¹ 6,371 5,726 11.3% 4,199 51.7%
(+) Financial Results - Adjust to Present Value ² 23,105 20,120 14.8% 19,692 17.3%
(-) IR&CS - Nominal Rate (34%) ³ (81,553) (82,646) -1.3% (83,554) -2.4%
(+) IR&CS - IOC Tax Benefit ³ 43,517 28,898 50.6% 25,932 67.8%
Operating Income 172,581 139,266 23.9% 153,053 12.8%
Fixed Assets 419,365 418,760 0.1% 427,448 -1.9%
Accumulated amortization - Right of use properties 40,045 38,452 4.1% 34,367 16.5%
Working capital 571,489 547,967 4.3% 534,545 6.9%
Average Invested Capital* 1,030,899 1,005,179 2.6% 996,360 3.5%
ROIC 16.7% 13.9% 280 bp 15.4% 130 bp
Notes to the financial statements: (1) Nr. 15; (2) Nr. 33; (3) Nr. 34
(*) Last 4 quarters average

9. OUTLOOK
• Economic scenario improvements, although high volatility in sales remains in the 4Q
• Opportunity to reduce inventory levels in the coming periods
• Hering Store Refurbishments shows that the best results are derived by the combination of the point of sales’
renovation with store improvement initiatives
• Start of the 2018 budget process with business environment recovery premises due to the maturation of
initiatives implemented in the last quarters related to Product and Store fronts (P&S)
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10. INVESTOR RELATIONS TEAM
Fabio Hering – CEO
Rafael Bossolani– 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