Hering reported its financial results for the fourth quarter and full year of 2014. Gross revenues for the quarter were R$612 million, a slight increase of 0.5% year-over-year. For the full year, gross revenues were R$2.01 billion, a small decrease of 0.4% compared to 2013. EBITDA for 2014 reached R$395.8 million, down 9.8% due to lower sales growth and increased organizational expenses. Net income was R$318.9 million, a slight increase of 0.2% from the prior year. For 2015, Hering aims to resume same-store sales growth, increase multibrand sales to existing customers, and focus on implementing

1. 4Q14 and 2014 Results
Conference Call
February 27rd – 11 a.m. (Brt)

2. 4Q14 & 2014 Results
2
4Q14 and 2014 Results
Outlook
Q&A
AGENDA
DZARM. brand, relauched in 2015, illustrates this presentation.
Images from Autumn’15 collection. More details on slide 12.

3. 4Q14 & 2014 Results
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GROSS REVENUES AND BREAKDOWN BY BRAND
R$ MILLION
Gross revenues of R$ 2.0 billion, influenced by macro scenario deterioration, which still does not
reflect the advances implemented in new organizational structure in 2014.
4Q13 4Q14 Change 2013 2014 Change
608.9 612.0 0.5% 2,019.4 2,011.0 -0.4%
469.8 475.0 1.1% 1,495.7 1,482.6 -0.9%
55.0 57.1 3.8% 199.1 213.3 7.1%
41.8 40.9 -2.2% 156.9 155.8 -0.7%
24.7 25.6 3.7% 101.8 99.5 -2.2%
8.5 8.1 -4.1% 31.8 24.7 10.3%
International
Market
GROSS REVENUES BREAKDOWN PER CHANNEL
DOMESTIC MARKET EX- ‘OTHER REVENUES’
2014, IN R$ MILLION, CHANGE 2014 x 2013

4. 4Q14 & 2014 Results
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HERING STORE NETWORK
GROSS SALES SELL-OUT, R$ MILLION
Gross revenues of R$ 1,582.7 million (+0.7%), as a
result of stores’ net addition, which compensated
growth decline in stores opened up to 2013.
¹ Stores opened in the last twelve months net from closings.
:: New communication and marketing plan
Brand relaunch and new communication with the
consumer;
:: Basics relaunch and product offering
improvement
New models, fabrics, washes and items;
:: New store design
Already used in more than 50 stores. Conversion
advances in 2015.

5. 4Q14 & 2014 Results
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GROSS PROFIT
R$ MILLION AND GROSS MARGIN
EBITDA
R$ MILLION AND EBITDA MARGIN
EBITDA reached R$ 395.8 million, down 9.8%
due to lower sales growth and increase of
organizational structures.
Gross margin contraction of 150 bp due to higher
promotional activity and modest sales growth,
insufficient to dilute fixed costs.

6. 4Q14 & 2014 Results
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NET INCOME
R$ MILLION AND NET MARGIN
CAPEX
R$ MILLION
Net income of R$ 318.9 million (+ 0.2%) favored by fiscal
benefit of R$ 30.7 million impact in income tax related to
the fiscal agreement in Goiás and 19.4% increase of net
interest income in 2014.
Investments for the year concentrated in plants and IT:
SAP implementation and new platform for webstores. In
stores, stands out the beginning of the Hering reforms and
the opening of Hering for you.

7. 4Q14 & 2014 Results
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CASH FLOWS
R$ MILLION
Cash flow of R$ 166.8 million in 2014 lead by lower working
capital (specially inventories).
Cash Flow - Consolidated 2013 2014 Chg.
EBITDA 439.0 395.8 (43.2)
Non-cash items 8.9 18.1 9.2
Current Income tax and Social Contribution (116.7) (74.0) 42.6
Working Capital Capex (135.3) (76.6) 58.8
(Increase) in trade accounts receivable (54.3) (37.6) 16.7
(Increase) decrease in inventories (83.2) (3.7) 79.4
Increase (decrease) in accounts payable to suppliers (1.6) 18.2 19.8
Increase (decrease) in taxes payable (1.1) (50.7) (49.6)
Others 4.9 (2.7) (7.6)
CapEx (72.2) (96.6) (24.3)
Free Cash Flow 123.7 166.8 43.1

8. 4Q14 & 2014 Results
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PAYOUT
Solid cash flow and dividends paid quarterly
2Q14: IOC
R$22.9 MM
R$0.14 per share
3Q14: Dividends
R$50.0 MM
R$0.30 per share
4Q14: IOC
R$22.9 MM
R$0.14 per share
577 thousand shares repurchased in 4Q14 at an average price of R$ 20.59 per share, totaling R$ 11.9 million.
Additional dividends¹
R$50.0 MM
R$0.30 per share
¹ To be confirmed at General Shareholders’ Meeting.
TOTAL
R$145.8 MM
R$ 0.89 per share
BUYBACK PROGRAM
45.7%Payout
Alternative source of value creation to shareholders

9. 4Q14 & 2014 Results
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4Q14 and 2014 Results
Outlook
Q&A
AGENDA

10. 4Q14 & 2014 Results
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OUTLOOK
:: Challenging economic environment
Expectations of weak GDP and low consumption growth;
Exchange rate pressures may lead to adjustments in our Supply chain.
:: Priorities in 2015
Store network: resume same-store sales growth;
Multibrand: sales growth in existing customers (same-customers);
Implementation of new growth endeavors : Hering for you and DZARM.;

11. 4Q14 & 2014 Results
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Hering: resume growth in both stores and multibrand retail
:: Assortment and supply improvements
:: Stores refurbishments
:: Qualified retail initiatives

12. 4Q14 & 2014 Results
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New Growth Fronts:
:: Positioning evolution and distribution strategy
Focus on the female public;
Product portfolio expansion with product segmentation per occasion
and support for the look composition;
Brand strengthening communication, starring in 2015 by Alessandra
Ambrosio model.
:: Opportunities
Brand leverage the in regions where it is already recognized;
More premium positioning but with better price than peers;
Develop stores network and better develop retail (currently 3,500
multi-brand)
:: Challenges
Compensate ~30% sales decline from discontinued male lines;
New customers addition (no longer be seen as ‘a sophisticated
complement to Hering');
Increase share in cities up to 500 thousand through multibrand (low
investment, high return)

13. 4Q14 & 2014 Results
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:: Stores opened in 2014 presented good consumer acceptance. Excellent cost-benefit perception;
:: Network expansion in 2015: owned stores, possibly franchises in 2016;
:: Further development in both store model and product line. Close relationship with consumers.
New Growth Fronts:

14. 4Q14 & 2014 Results
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AGENDA
4Q14 and 2014 Results
Outlook
Q&A

15. 4Q14 & 2014 Results
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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.

16. 4Q14 & 2014 Results
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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