2. With 141 openings and 82 stores remodeled since 2007, Hering Store
chain will reach 325 stores by the End of the Year.
Goal: 172
Goal: 224
Goal: 273
230
276 278
292
148
130
113
81 74 66
3 51
117 195 204 226
2006 2007 2008 2009 1T10 2T10
2
66 stores to
be remodeled.
Goal: 172
151
181
Old Project New Project
3. The HS chain has been presenting Expressive Growth in Total Sales as
Well as in the Same Store Sales (SSS).
438.8
646.0
+32.4%
+27.2%
+23.5%
3
107.4
276.1 259.4
364.5
2006 2007 2008 2009 1S09 1S10
+29.0%
Hering Store Sales (R$ million) SSS Growth
4. The Hering Store Chain is Present in All Regions of Brazil, but Most
Concentrated in the South and Southeast.
6
3
3
2
1
1 1
2
4 5
1
2
1
269.9%
30.1%
Shopping Mall Street
4
8
22
19
14
16
2
137
4
6
31
5
3
193
49
25
20 5
Southeast South Northeast Midwest North
* Base 2Q10
5. Mid and Large Cities
In Despite of the Growth already Presented, the HS Chain Still Has Great
Expansion Capacity – The Actual Potential is Estimated in 604 Stores...
*
*
*
Mid and Large Cities
With a high consumer potential consume
in the AB social classes.
Benchmark with other stores chains.
Shopping Mall openings
5
*estimated.
...but the Potential is based on actual consumption and brand penetration premises. An eventual
evolution on theses premisses tend to increase the Chains growth potential.
2007 2008 2009 2010 Plan 2011 Plan 2012 Plan Expansion
Potential
6. + 142 HS
Expressive Growth Potential in all Brazilian geographic regions.
354
Hering Store Chain Potential
6
+19 HS
+ 54 HS
+ 14 HS
+ 51 HS
6
29 22
55
212
25
83
36
106
354
North Nothest Midwest South Southeast
2010 Plan Expansion Plan
Hering Store Chain Potential
(number of stores)
7. There were Identified 277 cities with potential to have a HS. By the End
of the Year, We Will be only Present in 147 of them.
Regions
Current
Present
New Stores Potential
Total
Present New cities TOTAL
North 5 5 9 14 14
Cities with Hering Stores
7
North 5 5 9 14 14
Northeast 16 12 26 38 42
Midwest 10 7 5 12 15
Southeast 88 41 63 104 151
South 28 17 27 44 55
TOTAL 147 82 130 212 277
8. The Store Potential by Region is in Line with the Population and Actual
Consume Potential Distribution
4%
14%
6%
6%
19%
5%
17%
NORTE
NORDESTE
CENTRO OESTE 604 Stores
NORTH
NORTHEST
MIDWEST
8
6%
17%
59% 7%
13%
55%
7%
14%
57%
CENTRO OESTE
SUL
SUDESTE Consumer Potential
Population
Stores
604 StoresMIDWEST
SOUTH
SOUTHEST
9. Final Considerations
• The study about Hering Store Potential (604 stores) reinforces the
positives outlooks for the Hering brand growth.
– The stores potential does not include Hering Kids – Additional Potential
– Consume premises and Hering brand penetration improvements tends to
increase the store potential.
• The Company management is analyzing the impacts of an
eventual Hering Store Chain expansion plan acceleration
– As the expansion shows it is doable, the Store expansion plan can be
revised.
– For now, the Hering Store growth plan is maintained : 325 and 405 stores by
the end of 2010 and 2012, respectively.
9
10. INVESTOR RELATION TEAM
Fabio Hering -CEO
Frederico Oldani – CFO and IR Director
Karina Koerich – IR Manager
Gracila Camargo Lopes – IR Analyst
Admar A. Topazio Junior – IR Analyst
FIRB – Financial Investor Relations Brasil
Tel. +55 (11) 3897-6857
E-mail: ligia.montagnani@firb.com
Tel. +55 (47) 3321-3469
E-mail: ri@heringnet.com.br
Website: www.ciahering.com.br/ir
