R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Arezzo&Co Investor Day

Multibrand Strategy and Expansion

Maicon Moraes

Commercial Officer

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Multibrand channel accounted for 27% of the Company’s revenues in 2012,

presenting a growth of 28%per year in the last 4 years

Multibrand Channel Context

2

133.7

188.4

234.0

285.8

2009 2010 2011 2012

Multibrand Sales (R$ mm)

332 franchises +

17 owned stores(i) +

994 multbrand clients (i) 4 outlets

23 franchises +

28 owned stores(i) +

1.546 multibrand clients (i)1 outlet

TOTAL

9 owned stores 858 multibrand clients

2 owned stories +

7 multibrand clients

361 Franchises +

56 Owned Stories +

2,425 Multibrand Clients

= 2,842 Points of Sale

Points of Sale (2Q13)

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Arezzo&Co multibrand strategy design has 4 dimensions

3

Integrated studies to map cross-sell

among brands

Validation of Arezzo brand potential per

city and creation of scenarios

Adjustment to Schutz brand potential

by considering market growth and

knowledge acquired in implementing

brand growth strategy

Refining of Anacapri targets

Union of commercial policies

Unified commercial policies for Key

Accounts and large clients

Commercial intelligence and

centralized support for brands

Definition of shared structure

principles

Coordination and central structure

Support model for Key Accounts

Mapping of sales territories

Definition of variable compensation for

multibrand commercial staff

Multibrand strategy of

2

3

Development of a specific sell-in calendar for

the multibrand channel

Support model per supply model::

Showroom vs. In field

Made-to-order vs. made-to-stock 1

4

Multibrand Channel Strategy

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

The mapping of areas to be supported by Multibrand channel involves a

detailed feasibility study

The starting point to map potential clients

was Schutz brand, which has the highest

penetration in the channel

Analysis of lower potential areas, so as to

make them profitable, both in client

attractiveness and logistic costs

Cross-selling opportunities were identified,

increasing the potential of each area

Each region has a structure of

representatives and consultants

Example of mapping of the

South Region

Multibrand Channel Potential

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

The new support model increases synergy among brands and reduces

dependence on fairs

Antes

Each brand with its own sell-in calendar

Same supply model for all types of products

Greater reliance on fairs

Depois

Greater coordination of sell-in calendar

among brands

Differentiated supply model depending on

footwear fashion content

Client support model reduces dependence

on fairs

Multibrand Channel Sell-in model

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

New sell-in Multibrand model aims to adjust sales to new types of supply and

to optimize results

6

Fast

Fashion

Collection

Classic

Continuables

Replenishment

of renewed

Fashion

Complement

(Summer II,

Winter II, Resort/

Cruise*)

Showroom

(Summer I and

III, Winter I)

Automatic

replenishment

Life Cycle Scenario Compatibility

Major Launches

New supply models with

purchase of available

inventory

Multibrand Channel Sell-in model

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Launches are divided into major launches and new supply models

7

Major lauches (Winter, Summer, High Summer, Fairs and Cruise/Resort)

New supply models (Fast-Fashion, Classic/Essentials, Basics/AllDay)

Growth in portfolio coverage

Speed in field sales using electronic

tools

Brands coordinated in the showroom to

increase cross-selling

Fast Fashion will replace minor collections,

keeping the same frequency of purchases

Specific sell-in mechanism for

Classic/Essentials and Basics/ AllDay-

EveryDay lines

Efficiency gain

Focus

Open sale in regional

showrooms

Complementary ready fashion

Closed sale in field + contact

center + web

Multibrand Channel Sell-in model

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Fonte: Arezzo&Co. Escala ilustrativa

# Owned Stores

# Franchises

365

3T13 2013

55

420

334

2012

56

390 31

29

394

55

449 58

2014

464

43

507

+8%

+7%

+13%

8

-1

Increase in 2013 guidance for net openings of 59 stores, particularly as a result of the

Anacapri brand expansion project with 10 franchises in 2013

In 2014 the Company will maintain its pace of openings with a total of 58 planned stores

Considering Anacapri roll-out in the franchise channel and following the multichanel

strategy, in 2014 the Company plans to convert12 owned stores into franchises

12 -12

# Conversion

Expansion Plan Guidance update 2013 and 2014

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

Strong franchise growth plan, with a significant part of the 2014 plan

already identified

9

33

58

10

7 5

Prospecting Initial

negociation

Intermediate

negociation

Advanced

negociation

Contract

signed

Total

3

1 2

Arezzo&Co Stores 2012

Notas:

1. Intermediate negotiation: franchisee or point defined

2. Advanced negotiation: franchisee and point defined

3. Company estimate

Current

Operators

40%

New

Operators

60%

Arezzo&Co owned Store and Franchise Opening Stage (2014)³

Arezzo&Co Stores Regional Distribution (%)

Operators Profile

Arezzo&Co Stores 20133

GDP: 5%

4% 5%

GDP: 9%

8% 9%

GDP: 17%

14% 14%

GDP: 14%

22% 20%

GDP: 55%

52% 52%

Expansion Plan Detailed Expansion Plan 2014

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

In 2013, 8 stores are were expanded, adding 338 m², in line with the goal of expanding sales area by 1,000 m² in sales area in 2013 and 2014, repeating 2011-2012 performance

435m²

564m²

512m²

825m²

3T13

999m²

1,337m²

261m²

77m²

Owned stores Franchises

2011

Area expansion of existing stores since 2011:

10

Expansion Stores Area Expansion

152m²

268m²

2012

Goal to expand 1,000m² at every 2 years

412m²

167m²

579m²

R:152

G:216

B:218

R:80

G:179

B:207

R:216

G:181

B:163

R:177

G:181

B:121

R:119

G:119

B:119

R:217

G:217

B:217

R:160

G:160

B:160

R:208

G:240

B:232

24 stores expected under the new Arezzo brand architectural project in 2013

11

Expansion New store layout roll-out

11

Iguatemi Ribeirão Preto - SP

Ilha Plaza - RJ

Shopping Iguatemi -SP

Diamond Mall - MG

Aldeota - CE

Shopping Goiabeiras - MT

BH Shopping - MG

Shopping Moinho dos Ventos - RS

Shopping Natal - RN

Pátio Batel - PR

Shopping Buriti - GO

Manauara Shopping - AM

Araras - SP

Plaza Niterói - RJ

Ipatinga - MG

Rua Catalão - GO

Salvador Shopping - BA

Shopping Metropolitano - RJ

Ariquemes - RO

Shopping Ibirapuera - SP

Cadima Shopping - RJ

Shopping Morumbi - SP

Shopping Anália Franco - SP

Key Opened Project in execution

Praia do Canto - ES