Institutional Presentation

| Apresentação do Roadshow
As of September 2015
October 2015
1
Disclaimer
Statements regarding the Company’s future business perspectives and projections of operational and
financial results are merely estimates and projections, and as such they are subject to different risks and
uncertainties, including, but not limited to, market conditions, domestic and foreign performance in general
and in the Company’s line of business.
These risks and uncertainties cannot be controlled or sufficiently predicted by the Company management
and may significantly affect its perspectives, estimates, and projections. Statements on future
perspectives, estimates, and projections do not represent and should not be construed as a guarantee of
performance. The operational information contained herein, as well as information not directly derived from
the financial statements, have not been subject to a special review by the Company’s independent
auditors and may involve premises and estimates adopted by the management.
2
| Company overview
1
.1 Platform of brands of reference
Arezzo&Co is the leading Company in the footwear and accessories industry
through its platform of Top of Mind brands
4
1
.2 Company overview
Arezzo&Co is the reference in the Brazilian retail sector and has a unique
positioning combining growth with high cash generation
Leading company
in the footwear
and accessories
industry with
presence in all
Brazilian states
Controlling
shareholders are
reference in the
sector
10.6 million pairs of shoes (1)
931 thousand handbags (1)
2,787 points of sale
12% market share (2)
More than 43 years of
experience in the sector
Development of
collections with
efficient supply
chain
Asset light: high
operational
efficiency
~11,500 models created
per year
91% outsourced production
Lead time of 40 days
ROIC of 19.8% in 3Q15
12 to 15 launches per
year
2,124 employees
Wide recognition
Strong cash
generation and
high growth
Net revenues CAGR:
25.5% (2007- 3Q15¹)
Net Profit CAGR: 27.8%
(2007- 3Q151)
Increased operating
leverage
Notes:
1. LTM 3Q15.
2. Refers to the Brazilian women footwear market (source: Euromonitor, IBGE and Company estimates). Estimated for 2014.
5
1
.3 Successful track record of
entrepreneurship
The right changes at the right time accelerated the Company's development
Foundation and structuring
Industrial Era
Retail Era
Corporate Era
Industry Reference
70’s
80’s
90’s
00’s
2011 – 2015
 Founded in 1972
 Focused on brand and
product
 Consolidation of industrial
business model located in
Minas Gerais
 1.5 mm pairs per year
and 2,000 employees
 Focus on retail
 R&D and production
outsourcing on Vale dos Sinos
- RS
 Franchises expansion
 Specific brands for each
segment
 Expansion of distribution
channels
 Efficient supply chain
Launch of
new brands
Opening of the first
shoe factory
Consolidate
leadership
position
Opening of the flagship
store at Oscar Freire
+
Merger
First store
Schutz launch
Launch of the
first design with
national success
Strategic Partnership
(November 2007)
Commercial operations
centralized in São Paulo
Fast Fashion
concept
Initial Public Offering
(February 2011)
6
1
.4 Shareholder structure
Shareholder structure1
Others
21.4%
Birman family
52.2%
Aberdeen
HSBC
15.5%
5.2%
Dynamo
5.1%
Management²
0.6%
Float
47.2%
Notes:
1. Arezzo&Co capital stock is composed of 88,735,476 common shares, all nominative, book-entry shares with no par value.
2. Including Stock Option Plan – Arezzo&Co’s executives
Shareholder structure as of October 2015.
7
1
.5 Culture & Management
Principles of success at Arezzo&Co:
01 That which is not transparent should not be done.
02 Always be true, so that at some point you are not false in your job. Always be authentic.
03 Clearly negotiate your goals and responsibilities, and consider compliance as a requirement for
continuity.
04 Do not uncover problems only. Blaming others will never be the solution. Take risks, propose
solutions. In case of doubt, act!
05 Formalize everything, even in an informal way.
06 Always be flexible. Always be willing and ready for changes.
07 Goals met are, at least, the basis for the next goal.
08 United we stand! Divergences are constructive, conflicts are destructive.
09 A humble stance: the key to our success.
10 Enjoy. Like. Get involved. And always be happy!
2154
8
1
.6 Strong platform of brands
Strong platform of brands, aimed at specific target markets, enables the
Company to capture growth from different income segments
1972
1995
2008
2009
Brands
profile
Trendy
New
Easy to wear
Eclectic
Fashion
Up to date
Bold
Provocative
Pop
Flat shoes
Affordable
Colorful
Design
Exclusivity
Identity
Seduction
Women
target
market
16 - 60 years old
18 - 40 years old
12 - 60 years old
20 - 45 years old
Distribution
channel1
Foundation
O
F
MB
EX
O
F
MB
EX
O
F
MB
EX
O
MB
EX
17
365
1,177
32
29
48
1,376
73
4
56
1,038
10
2
8
26
14%
73%
11%
1%
38%
15%
35%
12%
19%
42%
38%
1%
19%
3%
68%
POS 1
%
gross
rev.2
Retail price
point
R$ 189.00/pair
R$ 330.00/pair
R$ 110.00/pair
R$ 960.00/pair
Sales
Volume3
R$ 779.6 million
R$ 544.0 million
R$ 86.9 million
R$ 22.1 million
% Gross
Revenues4
54.0 %
37.7%
6.4%
1.6%
Notes:
1. Points of sales (3Q15); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports
2. % of each brand gross revenues (2014) does not include other revenues (not generated by any of the 4 brands)
3. Gross revenues in 3Q15 (LTM), including external market; does not include other revenues (not generated by any of the 4 brands)
4. % of Company’s total gross revenues in 3Q15
9
1
.7 Multiple distribution channels
Flexible platform through different distribution channels with specific
strategies, maximizing the Company's profitability
Gross Revenues per Channel
469 franchises in
more than 160 cities
in Brazil
About 1,233 cities
and 2,262
multi-brands
51 owned stores of
which 11 flagship
stores
Broad distribution in
every Brazilian state
Gross Revenue Breakdown – (R$ mm)¹
46%
24%
22%
8%
100%
1162
320
347
1,443
660
Franchises
Multi-brands
Notes:
1. LTM 3Q15
2. Also includes other revenues in the domestic market
Owned stores
Exports²
Total
10
| Business model
2
Unique business model in Brazil
Customer focus: we are at the forefront of
Brazilian women fashion and design
1
ABILITY TO
INNOVATE
R&D
2
3
4
5
SOLID MARKETING
AND
COMMUNICATION
PROGRAM
EFFICIENT
SUPPLY CHAIN
NATIONWIDE
DISTRIBUTION
STRATEGY
SEASONED
MANAGEMENT
TEAM WITH
PERFORMANCE
BASED INCENTIVES
Communication &
Marketing
Sourcing & Logistics
Multi-channel
Management
BRANDS OF REFERENCE
12
2
.1 Ability to Innovate
We produce 12 to 15 collections per year
I. Research
II. Development
III. Sourcing
IV. Delivery
Creation:
11,500 SKUs / year
Available for
selection:
63% of SKUs created /
year
Stores:
52% of SKUs created /
year
Activities
JAN
FEV
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Creation
Launch
Orders
Production
Delivery
Normal sale
Discount sale
Winter I
Winter II
Winter III
Summer I
Summer II
Summer III
Summer IV
Arezzo&Co fulfills the various aspirations of women, delivering on average 5 new models at the
stores per day, allowing for consistent desire-driven purchases
13
2
.2 Broad media plan
Each brand has an integrated and expressive communication strategy, from
the creation of campaigns to the point of sales
Presence in electronic media and television
+71 inserts in printed media in 134 pages in 2014 (48 million readers)
Over 1350 exhibition in fashion editorials in 2014
+270 exhibition on Cable TV
+ 4 million impact
Digital communication
+2.2 million accesses to site/month
Celebrity Endorsement
Over 6 million followers/ fans: Facebook, Demi Moore Gisele Bündchen Blake Lively
(+180k monthly access to Schutz’s Blog) Instagram and Twitter (all 4 Brands)
Average navigation time: 8 minutes
* Source: Indexsocial/ Agência Espalhe, 2013
Strong presence in printed media
Arezzo is leader in interactions*
Marketing Events
CRM – VIP sales
Seasonal showroom in Los Angeles near
In-store events – PA
the Red Carpet Season
Stylists Fashion Advisors
14
2
.2 Communication & marketing program
reflected in every aspect of the stores
Stores constantly modified to incorporate the concept of each new collection,
creating desire-driven purchases
POS materials (catalogs, packaging, and others)
Store layout & visual merchandising
Flagship stores
All visual communication at stores is monitored and updated simultaneously throughout Brazil
15
for each new collection
2
.2 Atmosphere of stores: differentiated
concepts for each brand
Niches and lighting
Wall display
Each theme is disposed in different niches
Iguatemi Faria Lima - SP
Closet
Essentials
Distinguished storefront
Combos
Prateleiras, Nichos e Estantes suspensas
Visual merchandising:
 Window related to the brand’s “ZZ”
symbol
 To increase in 50% the number of
models exposed
 Products highlighted in the center
of the stores
 Lights that highlighting the product
 A better distribution of the furniture
offers more comfort for clients
Vídeo Wall




Jackets and accessories
Campaigns and marketing actions
Preeminence for products
Differentiated products
Accessories
Storage
 Display of a large variety of
products
 Inventory at the sales area: lower
necessity of space for storage
Sophisticated lighting
 Atmosphere of a jewelry store
 Private shop experience
 Focus on exclusivity, design and
highly selected materials
16
2
.3 Large distribution network and scale of
store chain
Mono-brand store chain with high distribution network, reaching more than
160 cities and well-positioned among the retail companies
Points of sale (3Q15)
Size and average sales per mono-brand stores - 2013
Average
size (m2)
Brand
4
65
108
Net Revenue/m2
(R$ 000s)
Total
Stores1
37
2
449
21
2
760
1,575
9
277
1,012
6
407
251
12
207
365 franchises +
16 owned stores(i) +
1.177 multi-brand clients
GDP³: 5%
A&C¹: 4%
(i) 6 discount outlet
GDP³: 18%
A&C¹: 17%
48 franchises +
29 owned stores(ii) +
1,376 multi-brand clients
Points of sale – average size: new stores opened
in 2011 and 2012 increased network average size
57
sq m
2010
85
sq m
2011 new
stores
(ii)2 discount outlet
GDP³: 9%
A&C¹: 7%
80
sq m
2012 new
stores
55
sq m
52
sq m
2013 new
stores
2014 new
stores
Source: IBGE, Companies’ Reports; number of stores according to latest data provided by the Companies
Notes:
1.
Considers only mono-brand stores of Arezzo&Co;
2.
Net Revenue (assuming that sales taxes and deduction = 30% of gross revenues);
3.
2010 data;
4.
Considers Arezzo + Schutz, except for outlets, handbags’ stores and Schutz franchise;
5.
Domestic market only
GDP³: 55%
A&C¹: 57%
61 franchises
4 owned stores
1.060 multi-brand clients
GDP³: 17%
A&C¹: 15%
2 owned store +
7 multi-brand clients
TOTAL
474 franchises +
51 owned stores +
2,262 multi-brand clients5
=2,787 points of sales
17
2
.4 Flexible production process…
Production speed, flexibility and scalability to ensure Arezzo&Co’s expected
growth based on asset light model
Sourcing Model
Gains of scale
Owned factory with capacity to produce 1.1 million pairs annually
and a strong relationship with Vale dos Sinos production cluster as
the main outsourcing region
Arezzo’s scale and structure gives flexibility to source a large number
of SKU’s from various factories on a short time frame at competitive
prices
Certification and auditing of suppliers
Joint purchases
In-house certification and auditing ensure quality and punctuality
(ISO 9001 certification in 2008)
Coordination of material purchase jointly with shoe, handbag and
accessories’ suppliers
New Distribution Center
Sourcing model – 91% of production outsourced
9%
Arezzo&Co owned factory
Others
91%
Consolidation and improvement of distribution in
national scale
1
2
3
4
Reception: 100,000 units/day
Storage: 100,000 units/day
Picking: 150,000 units/day
Distribution: 200,000 units/day
18
2
.4 ... sold through owned stores…
Capturing value from the network while developing retail know-how and
brands’ visibility
Greater brand awareness coupled with operational efficiencies
Flagship Stores
 Clustering higher productivity stores in main areas (mainly SP and RJ) improving
operational efficiency and profitability:
Franchise
Owned
Annual Average
Sales per Store
2014
R$3.0 mln
R$5.9 mln
 Direct costumers interaction develops retail assets which are also reflected at
franchised stores
 Flagship stores ensure greater visibility and reinforce brand image
Arezzo – Iguatemi / SP
Total sales area and # of owned stores (m2)
Schutz – Oscar Freire/ SP
8,000
57
1,185
50
1,109
10
904
3,000
847
2,000
3,782
4,585
5,401
6,009
-10
5,295
-70
2010
Arezzo – Oscar Freire/ SP
-30
-50
2,120
0
Anacapri – Eldorado/ SP
30
1,212
4,000
1,000
70
51
1,166
29
5,000
Schutz – Morumbi/ SP
54
45
7,000
6,000
55
2011
Standar stores
2012
2013
Flagship
2014
Set/15
# Owned stores
19
2
.4 … based on a retail oriented
structure...
Structure applied to retail in order to achieve better sales and margin results as well as
to integrate and connect all monobrand stores’ back office
Strong focus on franchise and owned store performance
• All sales team (4,000+) get connected through national internet broadcast for three sales conventions per year,
creating an aligned sales pitch and a great sense of motivation before each season
• Large service program to assist franchisees on sales and profitability goals
• Recurring training programs in products, fashion trends, sales techniques, store management, IT, among others
• Strong visual merchandising, trade marketing and ambiance investments and training
20
2
.4 …with efficient management of the
franchise network...
Model allows rapid expansion with low invested capital by Arezzo&Co and high
profitability to franchisees
Successful Partnership: “Win – Win”

Intense retail training

Ongoing support: average of 6 stores/ consultant and average of
22 visits per store/ year

Strong relationship with and ongoing support to franchisee

IT integration with our franchises amounts to 100%

As mono-brand stores, franchises reinforce branding in each city
they are located
Franchise Concentration per Operator
(# of franchises by # of franchisees)
4 or more
franchises
13%
3 franchises
42%
15%
Best Franchise in Brazil (2005 and 2012) and in the industry
for 7 years since 2004
1 franchise
30%
2 franchises
Excellence in Franchising (ABF). Awarded 13 times | 12
years consecutively.
Notes: 2014 data
1.
96% satisfaction of franchisees1
96% of the current franchisees indicated they would be interested in opening a
franchise if they did not already have one
2.
Annual sales of R$ 3,3 million + average initial investment of R$ 900 thousand +
working capital of R$ 600 thousand
5-year contract and average payback of 40 months2
21
2
.4 ...and of the multi-brand stores
Multi-brand stores widen the distribution network and the brands’ visibility,
resulting in a strong retail footprint
Multi-brand stores’ Gross Revenue¹
3.9%
2,178
2,268
9%
294
3Q14
Multi-brand stores
Notes:
1. Domestic market only
321
3Q15
Improved distribution and brand visibility





Greater brand distribution network
Presence in over 1,216 cities
Rapid expansion at low investment and risk
Main focus: share of wallet
Owner’s loyalty
 Schutz Club – Relationship program that offers
LTM Gross Revenue (R$ million) advantages to the 50 Top Multi-brand stores, such as
# Stores
better products display, training and awards to the best
sales teams.
 Important sales channel for smaller cities
 Sales team optimization: internal team and commissioned sales
representatives
22
2
.5 Seasoned and professional
management team
Alexandre Birman
Internal Auditing
Marco Coelho
Independent business units
Arezzo
Schutz
Anacapri
Alexandre
Birman
Planning
Commercial
US
Operations
Supply Chain/
Sourcing
Technology/
Logistics
CFO
People &
Mgmt
Silvia
Machado
Fabiola
Guimarães
Yumi Chibusa
Milena
Penteado
Cassiano
Lemos
David Python
Fernando
Porto
Cisso Klaus
Kurt Richter
Thiago Borges
Open
Highly qualified management team
Name
Title
Alexandre Birman
CEO
Years of
experience
Years
at Arezzo
13
5
Cisso Klaus
Officer – Supply Chain/Sourcing
47
9
Kurt Ritchter
Officer – CTO and Logistics Officer
32
11
41
30
16
1
David Python
Officer – Commercial
10
4
Fernando Porto
Officer – US Operations
14
3
Years of
experience
Years
at Arezzo
18
18
Name
Title
Thiago Borges
CFO and Investor Relations Officer
15
---
15
8
10
5
15
5
Silvia Machado
Alexandre Birman
Fabiola Guimarães
Schutz
Yumi Chibusa
Anacapri
Milena Penteado
Alexandre Birman
Marco Coelho
Officer – Internal Auditing
Cassiano Lemos
Officer – Collection Planning

Stock option plan for key executives

Performance based compensation package for all employees

Independent business units leveraged on a single shared service structure: Industrial, Logistics, Financial and HR
23
2
.6 Corporate governance
The Board is comprised of 10 members, of which 4 are independent, and has a very
large engagement on the strategic planning of Arezzo&Co
Board of Directors
Name
Title
Anderson Birman
Chairman of the Board
José Bolonha
Vice Chairman of the Board
Welerson Cavalieri
Member
Juliana Rozenbaum
Member
José Murilo Carvalho
Member
Experience
Founder and Chairman of the Board, with over 40 years of
experience in the industry
Founder and CEO of “Ethos Desenvolvimento Humano e
Organizacional“; Board member of the Inter-American
Economic and Social Council (UN, WHO
Name
Title
Fabio Hering
Independent member
Rodrigo C. Galindo
Independent member
Partner at INDG/FALCONI Consultores de Resultados,
where he works for more than 19 years. Previously, was
an executive in big mining companies.
Carolina Faria
Over 13 years of experience as sell side equity research
analyst, focused mainly in retail and consumer companies.
Claudia Soares
President of the Attorney’s Association of Minas Gerais,
Board Member of the Brazilian Bar Association
Guilherme A. Ferreira
Member
Independent Member
Independent Member
Experience
CEO and board member of Cia. Hering, where he has
been working for over 28 years.
CEO of Kroton Educacional S/A, one of the biggest
education companies in the world, with over 500 thousand
students in colleges.
Marketing consultant at True Brand & Business – Soul
Brand Services from 2010 to 2012. Previously, worked as
an executive at Ambev.
Former CFO and IR Officer at Via Varejo S.A. and
Executive Vice-President of Market Strategy at Companhia
Brasileira de Distribuição – GPA.
CEO of Bahema Participações, board member of Pão de
Açúcar, Banco Signatura Lazard, Eternit, Tavex and Rio
Bravo Investimentos
Committees
Risk, Audit and Finance Committee
Welerson Cavalieri (Coordinator)
Strategy Committee
Juliana Rozenbaum (Coordinator)
Members:
Alexandre Birman (CEO), Anderson Birman
(Chairman), Guilherme A. Ferreira, Edward
Ruiz, Marco Antônio Coelho, Thiago Borges
(CFO) e Fernando Caligaris (Board Secretary)
Members:
Alexandre Birman (CEO), Anderson Birman
(Chairman) , Fabio Hering, Fernando Caligaris
(Board Secretary) and Carolina Faria.
People Committee
José Bolonha (Coordinator)
Members:
Alexandre Birman (CEO), Anderson Birman
(Chairman) Claudia Soares, Ligia Martins,
Fernando Caligaris (Board Secretary)
24
| Value Drivers Update
.1 Solid growth fundamentals
3
The Company has ongoing initiatives to unlock value to shareholders
1
DISTRIBUTION NETWORK AND SALES AREA EXPANSION
 Guidance at 30-40 stores openings in 2015
Net revenues CAGR
2007-3T15 LTM
 Strong Schutz’s sales encourages launch of webcommerce channel
for other brands
25.5%
 Multibrand strategy brings strong distribution network
9.3%
11.9%
26.7%
963.0
18.8%
1,052.9
2
 GTM Arezzo project enhancing sell-out performance
860.3
38.7%
12.3%
 New store layout for Arezzo and Anacapri increased sales per m²
 Repositioning of handbags in Schutz presented very positive results
678.9
571.5
89.4%
367.1
 Internal benchmarking allowing for constant identification of
412.1
opportunities for improvement in store productivity
193.8
3
2007
STORE PRODUCTIVITY
2008
2009
2010
2011
2012
2013
2014
PROFITABILITY
 Continuous focus on diluting operating expenses
4
PROCESS EFFICIENCY
 Constant analysis towards improvements in logistics and distribution
26
3
.1 2014/2015 Expansion Plan
Since IPO for 3 consecutive years, stores opening guidance was achieved; 2015
expansion guidance at 30-40 new stores with 5% growth in sales area
546
# Owned stores
5
# Franchises
# Pass-throughs
516
-5
49
30
 58 stores opened in 2014
 In 2015, the Company will
increase its pace of openings with
54
a range of 30-40 planned stores
458
55
-1
59
 Due to multichannel strategy, in
+6%
497
2015 the Company plans to
+13%
462
convert 5 owned stores into
franchises
403
2013
2014
2015
27
3
.1 Web commerce: Entry into the channel
Client profile and fit to online media boosted Schutz entry into the online channel
+
SEGMENT
SCHUTZ CUSTOMER
Ecommerce growth in Brazil, R$ billion
2011
2012
34,6
28,8
14,8
3,9
7,3
22,5
9,8
12% 1º Fashion & Accessories 19%
1º Appliances
15% 1º Appliances
2º Informatics
12% 2º Fashion & Accessories 12% 2º Health care
18%
3º Electronics
8% 3º Health and care
12% 3º Appliances
10%
4º Health care
7% 4º Informatics
9%
4º Books and magazines 9%
5º Informatics
7%
2014
2013
2012
2011
2010
2009
2008
2007
5º Fashion & Accessories 7% 5º Home and decoration 8%
2006
2005
2,8
5,3
18,7
2013
Internet penetration is still very low in Brazil
78%
70%
66%
60%
59%
57%
41%
46%
Europe
Asia
High fit of the product to the relevant global players evidenced by ecommerce operating shoes
28
3
.1 Web commerce: Entry into the channel
Client profile and fit to online media boosted Schutz entry into the online channel
+
SEGMENT
Strength of Schutz in social media
On-line customer profile
50.1% Women
18-24
20%
SCHUTZ CUSTOMER
 > 1.7 MM likes per month
on each network and
30,000 comments
Men
25-34
30%
 60-80 k new followers per
month
>35
+1.2M
A/B 54%
+1.6M
C
MOST COMMENTED
-% revenue is on-line
Benchmarks in mature markets
19%
5%
18%
MOST LIKED
15%
Source: EBIT, Morgan Stanley Research, Clipping, Ibope.
29
3
.1 Web commerce: Channel evolution
Structuring of online channel and initial results confirm channel attractiveness
and alignment
2011
2013
2012

R$ 1 million in 3 months of
operation

Dedicated operational
management within Schutz

Beginning in Sep/2011 with
soft opening

Internal focus on quality of online customer service

Medium size store in physical
network


Proof of the thesis
2014
> 40

Reaches R$24 million revenue

R$44 million in revenues

Structuring of team and
investment in on-line
marketing

Investment in new platform to
improve shopping experience

Prioritization of structuring of
customer service and logistics

Leading brand in fashion
award on Instagram
Unified management of on-line
strategy


Still low investment in on-line
marketing

Seal RA1000 in customer
service
Greater understanding of our
customer/BI/analytics


Great focus with "freshness" of
products available

Growth and profitability
inspired structuring of the
Omni project
Go-live of the new platform
hybris Sep/14

Elected the seventh best ecommerce in Brazil

Start benchmarking with the
best in the industry
24
10
11
Source: Ibope Ecommerce, Clipping
30
3
.2 GTM Arezzo
Under GTM Arezzo the Company expects to increase the product accuracy at
the stores with a new collection calendar and a shorter lead time
Life cycle
Supply model
 More fashion content; largest collections
presented to the franchisees
Showroom
Collection
from the sell out
Fashion
complement
Fast fashion
Continuables
 Fashion complement using information
 Capturing quick trends, not only from
Arezzo’s stores, but also from market
research
 Products automatically replaced in the
Continuables
stores with some season colors
 Open size run replacement
 Products also automatically replaced in
Classic
Classic
the stores; only two colors. Full mark-up
sell-through
31
3
.3 Store productivity increase
Arezzo’s new architectural design highlights our products even more
Window relate to the pattern
used on our products’ soles,
forming the brand’s “ZZ”
symbol
Next to the cashier, a
dedicated shelf for
appliances allows us to add
units to the sale
With new shelves and niches,
we were able to increase in 50%
the number of models
exposed in the stores
Products highlighted in the
center of stores
Suspended shelves around
the entire store with lights
that highlight the products
A better distribution of the
furniture offers more
comfort for clients in the
stores
32
3
.3 Evolution of architectural design and
store model
New architectural design means proper showcasing of the products and a
superior purchasing experience for a low outlay
Tower: on one side, individual
flat shoes are displayed; on the
other side, mirrors; and inside,
an inventory with a pair in each
size
Enchanted Island: at
the front of the store
with the leading new
launches intended to
attract customers
Combo: at the back of
the store, special offers
in order to increase
UPT and provide
women with practical
and quick service
Central Islands: to
display the classical
“must-have” Anacapri
products
33
3
.4 Schutz Handbags
Changes in strategy for Schutz brand handbags resulted in a strong growth in
the product segment
Key Results
Handbags as a percentage of revenues¹
14.0%
1
Executing product strategy
12.0%
10.0%
8.0%
6.0%
2
Structuring supply chain
4.0%
2.0%
0.0%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
189
Volume (in thousands of handbags)
3
Executing marketing and
communication strategy
121
76
20
12
2009
2010
25
2011
2012
2013
2014
NOTES: 1) Handbags as a percentage of Schutz revenues;
34
3
.4 Schutz Handbags
Product line segmentation enables reaching different audiences in different
channels, with the proper branding strategy and meeting clients’ desires
R$350 - R$490*
 Exploring luxury goods code
 Adjusting product mix to different
occasions of use
 Segmenting product mix by label
and price range (Premium,
Mainstream, Pop&Fun)
 Building mix by distribution
channel
 Increasing quality and perceived
value of the products
Difference
between lines
Product technical
standard
CHANNEL
Product strategy
O/F
MB
✔
R$490 - R$790*
✔
✔
R$790 - R$1,100*
✔
Sourcing base
Materials used
Level of exposure of
brand/logo
V.M. in store and
showroom
HANDBAGS
Depth of purchases in
the grids
Training of commercial
teams
Marketing and
communication actions
NOTE: O = OWNED STORES; F = FRANCHISES; MB =MULTIBRAND.
* Suggested Retail Price.
35
3
.4 Schutz Handbags
Focus on supply chain helped to increase perceived quality and desire for the
product
Supply chain strategy
1
Focus on minutious product development
2
Product mix optimization with a
reduction in the number of SKUs
3
Local development of sourcing base
36
3
.4 Schutz Handbags
Communication and marketing strategy consists in replicating the success
reached in footwear based on the pillars product, desire and store
Communication and marketing
strategy
Bloggers and
celebrity
endorsement
Press and
spontaneous
media
Strategy to
create iconic
models
Impact
Social media
Exclusive
windows
37
3
Key takeaways
1
Undisputable category leader
2
Significant growth potential
3
Brands of reference
4
Efficient and market oriented supply chain
5
Scalable platform with operating leverage
6
High return on invested capital
38
| Market Overview and
| Sourcing and Industry Characteristics
4
.1 Social upward mobility driving internal
consumption
Income growth and job creation lead to rapid social upward mobility and
increasing internal consumption
Brazil experiences an accelerated process of social upward migration...
(Millions of people)
Class A/B
13 (8%)
22 (11%)
27 (14%)
+14 mi
(2003-14E)
Class C
66 (38%)
+49 mi
100 (52%)
(2003-14E)
115 (59%)
Class D/E
96 (55%)
70 (36%)
2003
54 (27%)
2011
2014E
Classes A/B: monthly income above R$6,977 | Class C: monthly income between R$1,618 and R$6,977 | Class D: monthly income between R$1,013 and R$1,618 | Class E: monthly income below R$1,013
...Resulting in a significant rise of consumer goods consumption, including Footwear and Apparel
(Consumption growth as a result of the upward mobility in social classes; indexed 100 = class D/E)
Out-of Home Food
1.0x
Furniture
1.0x
4.2x
Class
3.2x
D/E
7.0x
Class
5.6x
C
9.4x
Class
7.9x
B
Class
A
Apparel and
Footwear
1.0x
3.7x
6.6x
9.2x
Prescription/OTC drugs
1.0x
3.4x
5.3x
7.3x
Hygiene and
Personal Care
1.0x
3.4x
5.6x
7.6x
Footwear and
apparel have the
largest growth
potential
Classes A/B: monthly income above R$4,808 | Class C: monthly income between R$1,115 and R$4,408 | Class D: monthly income between R$768 and R$1,115 | Class E: monthly income below R$768
Source: IBGE, FGV, LCA, Bain & Co., BCG, Roland Berger, IPC Maps
40
4
.2 Brazilian footwear market overview
Arezzo&Co has a significant stake of the women footwear market and has
consistently increased its market share
Footwear consumption 2014
Arezzo&Co’s market share1
Men
15%
30%
Children
10%
Sports
11%
11%
12%
2013
2014E
9%
8%
15%
7%
4%
40%
Women
2007
Social Class
Classes D/E
Class C
43%
2009
2010
2011
2012
Total footwear market (R$ bn)
Class A
8%
2008
9%
CAGR (03-14E): +10%
39%
Class B
2014E
Women
footwear
16.8
Total footwear market
43.4
Source: IBOPE Inteligência (Pyxis), Satra, World Bank, ABICALÇADOS, IEMI, MTE, MDIC, / SECEX, IBGE
Note: 1. Based on Euromonitor research and IBOPE Inteligência (Pyxis). Estimated Arezzo&Co market share considering women footwear market
41
4
.3 Brazilian handbags market overview
Arezzo&Co also has a relevant position within the fast growing handbag
market in Brazil
Total handbags market (R$ bn)
Share of handbags and shoes
50-60%
CAGR (03-14E): +10.5%
Women
handbags
4.4
20%
2014E
17%
5.6
Total handbags
Total addressable market (R$ bn)
14%
12%
Brasil
International
benchmarks¹
Arezzo
Schutz
Arezzo&Co
20%
Footwear
21.6¹
80%
 Opportunity to consolidate handbag leading position
Handbags
Source: IBOPE Inteligência (Pyxis), Satra, World Bank, ABICALÇADOS, IEMI, MTE, MDIC, / SECEX, IBGE
Note: 1) 2014E..
Note: 1) Handbags as a percentage of revenues of Coach and Michael Kors.
42
4
.4 Footwear Industry - Global Overview
and competitive advantages
Brazil is the third largest footwear producer, with production mostly destined to supply
the domestic market. Competitive costs, flexibility on minimum production and short
lead time are the pillars to serve the fast fashion market
Pairs
(millions)
Production
World share
China
12,597
62.4%
Índia
2,060
10.2%
Brazil
900
4.4%
Vietnam
760
3,8%
Indonesia
658
3.3%
Pakistan
292
1.4%
Pairs (millions)
Consumption
World share
China
3,279
15.2%
USA
2,285
13.4%
India
2,260
11.7%
Brazil
787
4,5%
Japan
690
4.0%
Indonesia
532
3.6%
Source: IEMI 2013, Footwear News, Company estimates
ITALY
Lead time: 70 days
Minimum/model: 800 pairs
Minimum/construction: 4,000 pairs
Production cap. (pairs): 202 million
Cost (FOB): USD 35/pair
Cost (DDP): USD 49/pair
BRAZIL
Lead time: 40 days
Minimum/model: 800 pairs
Minimum/construction: 4,000 pairs
Production cap. (pairs) 894 million
Cost (w/o tax): USD 21/pair
Cost (w/tax): USD 27/pair
INDIA
Lead time: 160 days
Minimum/model: 5,000 pairs
Minimum/construction: 20,000 pairs
Production cap. (pairs): 2,060
million
Cost (FOB): USD 15/pair
Cost (DDP): USD 23/pair
Note:
Estimate based on Arezzo’s brand products costs
DDP: delivered duty paid
FOB: free on board
CHINA (different clusters)
Lead time: 120 to 150 days
Minimum/model: 5,000 pairs
Minimum/construction: 20,000 pairs
Production cap. (pairs): 12,000 million
Cost (FOB): USD 16-18/pair
Cost (DDP): USD 42-45/pair
VIETNAM
Lead time: 120 to 150 days
Minimum/model: 2,000 pairs
Minimum/construction: 8,000 pairs
Production cap. (pairs): 760million
Cost (FOB): USD 18/pair
Cost (DDP): USD 26/pair
43
4
.5 Footwear Industry - Global footwear
offering
Brazil is recognized by the quality and high specialization within different and complex
categories of shoes. The industry has been qualitatively developed in order to add
value to products and thus increase its competitive advantages over Asian suppliers
Industry segmentation vs. value creation:
Global Footwear Offering: the higher and more centralized the country is
in the pyramid, the more focused it is in fashion, creation, design, luxury market ,
marketing and distribution management, with smaller production scale
Global Brands
B
Manufacturer with
own design and global brand
C
Manufacturer with
own design and mostly local brand
D
Manufacturing operation
E
Equipment assembly
Usually don’t produce;
Creation + own brand management
Design and product specification
Mostly internationally outsourced
Supply chain management
Totally decide over marketing and commercialization
 Receive product and process specifications, as well
as components and raw material
 Assembly activities only
Source: BNDES, Company estimates
+
France
Italy
Spain
Taiwan
China
Thailand
Brazil
Mexico
Indonesia
Vietnam
India
Value added
A






Other global
suppliers
44
4
.6 Arezzo&Co sourcing: Brazilian
competitive advantages
Vale dos Sinos region offer strong competitive advantages, a combination of
production capacity, production flexibility, skilled labor and strong structure to support
incentives for innovation and strengthening of industry’s competitiveness
 Brazil is the world’s third largest
footwear producer
Vale dos Sinos: 26% of Brazilian
footwear production
 The world’s largest cattle: 13% of
the market
BRAZIL

RS: One third (R$ 1 billion) of
Brazilian revenue in leather industry

Vale dos Sinos: one of the world’s
largest footwear manufacturing hubs
Production (million pairs)
900
Jobs (thousands)
353
SOUTHERN REGION
Production (million pairs)
372
190

Abundant skilled and specialized labor
Jobs (thousands)

Production flexibility:
VALE DOS SINOS
volume X variety X speed
 1,700 companies and entities: components,
footwear, machinery, tanneries, trade entities,
research and teaching institutions
Source: IEMI 2013 / ASSINTECAL / FAO / AICSUL.
Production (million pairs)
234
Jobs (thousands)
120
45
4
.8 Arezzo&Co Sourcing Process and
supply chain management
Sourcing process and supply chain management focused on ensuring
flexibility, speed and cost control in the creation of new products
Arezzo&Co sourcing process:
1
2
3
4
5
6
7
Trends and
style
Design
Technical
Design
Engineering
Samples
Showroom
Logistics and
distribution
Raw material price negotiations
Store
Scheduling + Manufacturer negotiation
Coordinated management of production chain associated with Investments in product engineering: specific know
how
Cost control
Chemicals and textile
Cost management efficiency
Finished
products
Arezzo&Co
Quality standard guarantee
Raw
materials
Efficient lead time
Flexibility
Components
Engineering folder
Reuse from collection to collection:
SKU
10%
MODEL
35%
CONSTRUCTION
70%
46
05
| Financial Highlights
5
.1 Operational and financial highlights
Gross Revenue by channel – Domestic Market (R$ million)
5.4%
931.6
982.1
2.6
3.3
8.9%
257.2
14.6%
245.5
236.1
3.1%
365.5
214.3
354.5
5.9%
1.3
96.8
15.7%
87.3
75.4
180.9
0.2
102.5
-3.0%
3Q14
Franchise
-0.2%
477.9
476.8
175.5
3Q15
Owned Stores
9M14
Multi-brand
9M15
Others¹
10.4%
-6.8%
7.5%
-1.3%
SSS Sell-out (owned stores + franchises)
8.0%
-7.2%
6.1%
-2.2%
SSS Sell-in (franchises)
-0.4%
-8.1%
2.7%
-6.2%
SSS Sell-out (owned stores + web + franchises)
In 3Q15, the highlight for the Owned Stores channel, presenting a growth of 15.7%, leveraged by
the web commerce growth.
1)
Others: Decreasing of 81.1% in 3Q15 and 20.4% in 9M15.
48
5
.2 Operational and financial highlights
Key highlights
In 2Q15, gross revenue was R$363.5 million, up by 11.0% against 1Q15.
Sales area increased 8.5% in the LTM.
In 2Q15 increased 8.8% growth in sales area over the last 12 months, excluding outlets.
Number of Stores (R$ mln) and Total Area (m2- ‘000)
Net Revenues (R$ mln)
Area CAGR 07- 3Q15LTM: 15.6%
13.3%
700
18.2%
CAGR 07-2014: 27.4%
600
29.0
24.5
9.3%
500
11.9%
26.7%
18.8%
89.4%
367.1
860.3
400
377
+52
+50
36.1
32.9
479
+46
525
51
52
56
53
38.7%
12.3%
963.0
1,052.9
429
9.7%
678.9
300
571.5
200
412.1
324
193.8
373
427
474
100
-
2007
2008
2009
2010
2011
2012
2013
2014
3Q12
Franchises
3Q13
3Q14
Owned Stores
3Q15
Area
49
5
.3 Operational and financial highlights
Gross revenues (R$ million)
EBITDA (R$ million)
8.7%
15.9%
1,067.6
982.4
50.8
6.5%
68.5%
14.4%
85.5
17.4%
15.8%
-0.2%
121.0
120.8
9M14
9M15
55.7%
379.0
403.7
24.5
38.2
354.5
3.1%
3Q14
931.6
5.4%
982.1
Domestic Market
9M14
9M15
3Q14
External Market
Gross Profit (R$ million)
329.9
124.9
3Q14
3Q15
Net Income (R$ million)
43.2%
10.8%
41.8%
5.9%
10.3%
4.2%
349.5
11.5%
11.3%
42.2%
6.5%
49.7
365.5
3Q15
42.2%
-3.4%
51.4
86.2
82.7
7.4%
133.0
3Q15
9M14
9M15
33.6
36.1
3Q14
3Q15
9M14
9M15
5
.4 Operational and financial highlights
Capex (R$ thousand)
Cash Conversion Cycle (R$ thousand)
Cash Conversion Cycle
Inventory¹
Accounts Receivable²
(-) Accounts Payable¹
3Q14
3Q15
#days
(R$'000)
#days
(R$'000)
Change
(in days)
119
73
100
54
310,918
115,835
281,055
85,972
116
67
106
56
344,997
121,038
325,702
101,743
-3
-6
5
2
Summary of investments
3Q14
Change.
(%)
3Q15
Total capex
9M14
9M15
Change.
(%)
12,325
Stores - expansion and refurbishing
1,347
4,680
-62.0%
36,497
20,763
-43.1%
1,158
-14.0%
7,063
3,197
-54.7%
Corporate
8,877
3,241
-63.5%
24,991
14,820
-40.7%
Other
2,101
281
-86.7%
4,443
2,746
-38.2%
¹ Days of COGS
² Days of Net Revenues
Operational Indicators
Operating Indicators
# of pairs sold ('000)
# of handbags sold ('000)
# of em ployees
# of stores*
Cash Flow From Operating Activities (R$ thousand)
3Q14
3Q15
Growth or
spread%
2,979
2,926
-1.8%
233
247
6.0%
Other556
2.9%
Decrease (increase) in current
2,065
assets
/ liabilities
2,065
2,124
479
525
3Q14
3Q15
Incom e before incom e tax and
social contribution
51,815
53,545
1,730
Depreciation and am ortization
3,293
6,121
2,828
9M14
46
Trade 479
accounts receivables
52
51
-1
427
474
47
427
Change in other noncurrent and
Outsourcing (as % of total production)
91.0%
91.0%
0.0 p.p
SSS2 Sell-in (franchises)
-0.4%
-8.1%
-7.7 p.p
8.0%
-7.2%
-15.2 p.p
SSS Sell-out (ow ned stores + w eb + franchises) 10.4%
-6.8%
-17.2 p.p
Franchises
SSS2 Sell-out (ow ned stores + franchises)
2
Change
in R$
Change
in %
Change
in %
9M14
9M15
3.3%
121,845
122,806
961
0.8%
85.9%
9,599
18,026
8,427
87.8%
7,556
Inventories
Owned Stores
Change
in R$
Operating Cash Flow
52
Suppliers
current assets and liabilities
1,249
1,169
(9,957)
(46,494)
(45,337)
(80)
-6.4%
(181)
(17)
(36,537)
366.9%
(21,610)
(74,957)
(53,347)
164
(29,985)
-90.6%
246.9%
(50,216)
(4,879)
10.8%
(33,645)
(63,630)
4,666
(5,839)
(10,505)
n/a
(31,269)
(25,442)
28,843
15,857
(12,986)
-45.0%
51,113
31,428
(19,685)
-38.5%
1,871
(6,296)
(8,167)
n/a
(7,809)
(17,313)
(9,504)
121.7%
(12,538)
(9,733)
2,805
-22.4%
(33,080)
(23,861)
9,219
-27.9%
33,862
4,608
-86.4%
76,573
41,997
5,827
89.1%
-18.6%
90.4%
Paym ent of incom e tax and
2.7%
social contribution
6.1%
Net cash flow generated by
operational activities
(29,254)
(34,576)
-45.2%
7.5%
51
5
.5 Operational and financial highlights
Indebtedness (R$ thousand)
Cash position and Indebtedness
Indebtedness totaled R$127.0 million in 3Q15 versus
R$ 86.5 million in 3Q14
Cash
Total debt
Short term
% total debt
Long-term debt relevance stood at 22.5% in 3Q15 versus
29.2% in 3Q14
Indebtedness policy remained conservative, with low
weighted-average cost of Company's total debt
Long-term
% total debt
3T14
2T15
3T15
175,856
176,311
193,486
86,473
98,387
126,928
61,249
67,946
98,422
70.8%
25,224
69.1%
30,441
77.5%
28,506
29.2%
30.9%
22.5%
Net debt
(89,383)
(77,924)
(66,558)
-
EBITDA LTM
164,586
162,820
161,091
-0.5x
-0.5x
-0.4x
Net debt/EBITDA LTM
52
Appendix
53
A
.1 Key financial indicators
Growth or
spread%
Growth or
spread%
Key financial indicators
3Q14
3Q15
Net revenues
296,099
315,068
6.4%
763,272
836,760
9.6%
(171,199)
(182,053)
6.3%
(433,403)
(487,290)
12.4%
124,900
133,015
6.5%
329,869
349,470
5.9%
42.2%
42.2%
0.0 p.p.
43.2%
41.8%
-1.4 p.p.
(76,766)
(89,438)
16.5%
(218,471)
(246,708)
12.9%
% of net revenues
25.9%
28.4%
2.5 p.p
28.6%
29.5%
0.9 p.p
Selling expenses
(55,418)
(63,818)
15.2%
(153,243)
(170,592)
11.3%
Ow ned stores
(22,074)
(27,155)
23.0%
(66,936)
(75,221)
12.4%
Selling, logistics and supply
(33,344)
(36,663)
10.0%
(86,307)
(95,371)
10.5%
General and adm inistrative expenses(18,033)
(20,808)
15.4%
(53,012)
(57,366)
8.2%
Other operating revenues (expenses)2 (22)
1,309
n/a
(2,617)
(724)
-72.3%
(3,293)
(6,121)
85.9%
(9,599)
(18,026)
87.8%
51,427
49,698
-3.4%
120,997
120,788
-0.2%
17.4%
15.8%
-1.6 p.p.
15.9%
14.4%
-1.5 p.p.
Net incom e
33,601
36,082
7.4%
82,667
86,163
4.2%
Net margin
11.3%
11.5%
0.2 p.p.
10.8%
10.3%
-0.5 p.p.
Working capital¹ - as % of revenues
29.7%
30.3%
0.6 p.p
29.7%
30.3%
0.6 p.p
Invested capital² - as % of revenues
42.4%
44.4%
2.0 p.p.
42.4%
44.4%
2.0 p.p.
COGS
Gross profit
Gross margin
SG&A
Depreciation and am ortization
EBITDA
EBITDA margin
Total debt
Net debt³
Net debt/EBITDA LTM
9M14
9M15
86,473
126,928
46.8%
86,473
126,928
46.8%
(89,383)
(66,558)
-25.5%
(89,383)
(66,558)
-25.5%
-0.5x
-0.4x
n/a
-0.5x
-0.4x
n/a
Ajustes
1
1
Cresc. Sell-out
Inflação
Cresc. Esper.
Apresentado
Diferença
54
A
.2 History – Franchises and Owned Stores
History of Stores
3Q14
4Q14
1Q15
2Q15
3Q15
Sales area 1,3 - Total (m ²)
32,859
35,641
35,735
35,235
36,053
26,472
28,466
28,337
28,744
29,649
6,387
7,175
7,398
6,491
6,404
472
508
508
511
519
421
455
455
460
469
Arezzo
344
359
356
356
360
Schutz
43
46
46
48
48
Anacapri
34
50
53
56
61
51
53
53
51
50
Arezzo
17
19
19
17
16
Schutz
26
27
28
28
28
Alexandre Birman
2
2
2
2
2
Anacapri
6
5
4
4
4
Total num ber of international stores
7
8
6
6
6
# of franchises
6
7
5
5
5
# of ow ned stores
1
1
1
1
1
Sales area - franchises (m²)
Sales area - Ow ned stores 2 (m²)
Total num ber of dom estic stores
# of franchises
# of ow ned stores
1. Includes areas in square meters of international stores
2. Includes 8 outlet-type stores with a total area of 2,199 m²
3.Includes areas in square meters of stores expansion
55
A
.4 Balance Sheet - IFRS
Assets(R$ thousand)
3Q14
2Q15
3Q15
Liabilities
611,196
628,169
683,153
6,579
5,025
4,788
Financial Investments
169,277
171,286
Trade accounts receivables
281,055
Inventory
(R$ thousand)
3Q14
2Q15
3Q15
Current liabilities
193,602
198,527
246,250
Loans and financing
61,249
67,946
98,422
188,698
Suppliers
85,972
85,886
101,743
291,327
325,702
Other liabilities
46,381
44,695
46,085
115,835
117,496
121,038
Non-current liabilities
32,420
37,499
36,059
Taxes recoverable
20,346
19,725
16,608
Loans and financing
25,224
30,441
28,506
Other credits
18,104
23,310
26,319
Related parties
879
1,107
1,420
Non-current assets
172,174
184,224
199,972
Other liabilities
6,317
5,951
6,133
Long-term receivables
15,937
16,967
31,696
557,348
576,367
600,816
30
71
90
0
0
13,807
220,086
260,197
261,247
Deferred income and social contribution
7,830
7,370
8,420
69,727
33,154
34,159
Other credits
8,077
9,526
9,379
208,174
250,120
250,120
Property, plant and equipment
73,524
74,982
77,227
Adjustments to equity valuation
0
-1,632
-5,831
Intangible assets
82,713
92,275
91,049
Profit
59,361
34,528
61,121
783,370
812,393
883,125
783,370
812,393
883,125
Current assets
Cash and cash equivalents
Financial Investments
Trade accounts receivables
Total Assets
Equity
Capital
Capital reserve
Income reserves
Total liabilities and shareholders' equity
56
A
.5 Income Statement - IFRS
Incom e statem ent - IFRS
3Q14
3Q15
Net operating revenue
296,099
315,068
9M14
9M15
6.4%
763,272
836,760
9.6%
(171,199)
(182,053)
6.3%
(433,403)
(487,290)
12.4%
124,900
133,015
6.5%
329,869
349,470
5.9%
(76,766)
(89,438)
16.5%
(218,471)
(246,708)
12.9%
Selling
(57,137)
(68,039)
19.1%
(158,368)
(182,932)
15.5%
Administrative and general expenses
(19,607)
(22,708)
15.8%
(57,486)
(63,052)
9.7%
1,309
n/a
(2,617)
(724)
48,134
43,577
-9.5%
111,398
102,762
-7.8%
3,681
9,968
170.8%
10,447
20,044
91.9%
51,815
53,545
3.3%
121,845
122,806
0.8%
(18,214)
(17,463)
-4.1%
(39,178)
(36,643)
-6.5%
(19,350)
(18,513)
-4.3%
(41,494)
(40,939)
-1.3%
1,136
1,050
-7.6%
2,316
4,296
85.5%
33,601
36,082
7.4%
82,667
86,163
4.2%
Cost of goods sold
Gross profit
Operating incom e (expenses):
Other operating income net
Incom e before financial result
Financial income
Incom e before incom e taxes
Income tax and social contribution
Current
Deferred
Net incom e for period
(22)
Grow th %
Grow th %
-18026
-72.3%
Alíquota de IR
57
A
.6 Cash Flow Statement - IFRS
Statement of cash flow
3Q14
3Q15
9M14
9M15
Operating activities
Income before income tax and social contribution
Adjustm ents to reconcile net incom e w ith cash from
operational activities
Depreciation and amortization
Income from financial investments
Interest and exchange rate
Other
51,815
53,545
121,845
122,806
4,542
7,290
9,418
18,009
3,293
6,121
9,599
18,026
(3,641)
(5,313)
(8,836)
(14,192)
4,122
1,715
2,369
5,759
768
4,767
6,286
8,416
(45,337)
(50,216)
(33,645)
(63,630)
4,666
(5,839)
(31,269)
(25,442)
1,339
1
Decrease (increase) in assets
Trade accounts receivables
Inventory
Recoverable taxes
(176)
(6,678)
(1,158)
Variation other current assets
(951)
(1,575)
(799)
(12,814)
Judicial deposits
(459)
(360)
(195)
(970)
Decrease (increase) in liabilities
Suppliers
Labor liabilities
28,843
15,857
51,113
31,428
4,766
3,518
6,401
4,727
(4,604)
Fiscal and social liabilities
(2,344)
3,625
(9,313)
Variation in other liabilities
1,035
(4,826)
(2,745)
(4,991)
(12,538)
(9,733)
(33,080)
(23,861)
33,862
4,608
76,573
41,997
(31,321)
(15,949)
(20,369)
(3,056)
1,498
19,769
(14,314)
14,702
(10,017)
(8,126)
(49,097)
(58,870)
Paym ent of incom e tax and social contribution
Net cash flow from operating activities
Net cash used in investing activities
Net cash used in financing activities - third parties
Net cash used in financing activities
Foreign exchange effect on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
(5,978)
(539)
(237)
-
(816)
(7,207)
(6,043)
10,831
Cash and cash equivalents
Cash and cash equivalents - Initial balance
Cash and cash equivalents - Closing balance
Increase (decrease) in cash and cash equivalents
12,557
5,025
13,786
6,579
4,788
6,579
4,788
(7,207)
(6,043)
(5,978)
(237)
58
IR Contacts
CFO and IR Officer
 Thiago Borges
IR Manager
 Leonardo Pontes dos Reis, CFA
IR Analyst
 Leandro M. V. Vieira
Phone: +55 11 2132-4300
[email protected]
www.arezzoco.com.br