3Q15 Results Conference Call

October 30th, 2015 – 11:30 am (BrT) 9:30 am (NY)/ 1:30 pm (London)

This presentation contains forward-looking statements regarding the prospects of the business, estimates for operating and financial results, and those regarding Cia. Hering'sgrowth 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’sfiled disclosure documents and are, therefore, subject to change without prior notice.

DISCLAIMER

Pictures of DZARM. store, opened in September, illustrates this presentation.

3Q15

Outlook

Q&A

AGENDA

3Q15 Results

5

GROSS REVENUES AND BREAKDOWN BY BRAND R$ MILLION – DOMESTIC MARKET

Gross revenues of R$ 422.0 million influenced by the multibrand retraction given

environment deterioration and better performance at the franchise channel.

GROSS REVENUES BREAKDOWN PER CHANNEL DOMESTIC MARKET EX-‘OTHER REVENUES’ 3Q15, R$ MILLION- CHANGE 3Q15 x 3Q14

3Q15 3Q14 Change 9M15 9M14 Change

413.1 422.8 -2.3% 1,261.8 1,372.1 -8.0%

306.8 308.2 -0.5% 939.6 1,007.6 -6.7%

49.8 49.8 0.1% 146.4 156.2 -6.3%

30.0 36.4 -17.5% 94.3 114.9 -17.9%

19.9 22.4 -11.3% 65.0 74.0 -12.1%

6.6 6.0 9.4% 16.6 19.4 -14.6% Others

3Q15 Results

6

HERING STORE NETWORK GROSS SALES ‘SELL-OUT’, R$ MILLION

Gross revenues of R$ 323.8 million (-1.7%),

favored by the net addition of 36 stores

which partially offsets SSS decline.

¹ Stores opened in the last twelve months net from closings.

Concluded in October the inventory

reduction campaign that boosted selling

of past collections items, therefore

reducing inventory network.

Better supply and stores organization to

the period preceding christmas.

3Q15 Results

7

LAUNCH OF THE FIRST DZARM. STORE AFTER REPOSITIONING – SEP’2015

Pátio Higienópolis Mall, in São Paulo

Visual and Concept totally renewed

Contemporary and urban project

Store experience: finishing details, lighting and furniture translates brand’s sensuality

Pátio Higienópolis Mall – São Paulo State

3Q15 Results

9

DZARM.: PORTFÓLIO DIVISION AND STYLE ADVISORY

Work Day Jeans Accessories Party

Product line focused on women of 18-30 years-old and organized by occasion of usage.

3Q15 Results

10

GROSS PROFIT R$ MILLION

EBITDA R$ MILLION

26.6% retraction in EBITDA mainly due to

operational deleveraging and additional R$ 4.7 million in Selling Expenses, related

to the inventory reduction campaign.

Cash gross margin contraction of 120 bp due to

higher promotional activity, especially maked-down items (‘saldos’), and sales retraction, insufficient to

dilute fixed costs.

3Q15 Results

11

NET INCOME R$ MILLION

CAPEX R$ MILLION

New investments made in plants located in

Goiás. SAP implementation scheduled for early 2016.

Net income of R$ 97.8 million (+37.9%). Lower

operating income offset by non-recurring gain of R$ 53.5 million in Income Tax and Social

Contribution¹.

¹ On 10.02.2015 was announced the Eurobonds liquidation issued by the Company and held by its subsidiary Hering Overseas Ltd., with subsequent subsidiary dissolution and liquidation. For further details see the Material Fact released on the day.

3Q15 Results

12

CASH FLOWS R$ MILLION

Cash flow of R$ 5.2 million in 3Q15, R$ 19.9 million less than 3Q14 due to

lower EBITDA generation and working capital erosion, partially offset by lower Income Tax and Social Contribution.

Cash Flow - Consolidated 3Q15 3Q14 Chg. 9M15 9M14 Chg.

EBITDA 54,829 74 ,725 (19 ,896) 168,527 266,116 (97,589)

Non cash items 4,946 1,286 3,660 20,020 13,963 6,057

Current Income tax and Social Contribution 12,925 (1,744) 14,669 1,738 (51,504) 53,242

Working Capital Capex (44,031) 16 ,171 (60 ,202) (44 ,020) 12 ,324 (56 ,344)

Decrease in trade accounts receivable 15,846 61,767 (45,921) 109,352 92,029 17,323

(Increase) in inventories (71,000) (56,819) (14,181) (102,231) (50,132) (52,099)

Increase (decrease) in accounts payable to suppliers 18,307 33,702 (15,395) (7,966) 29,104 (37,070)

(Decerease) in taxes payable (3,248) (17,028) 13,780 (31,214) (56,094) 24,880

Others (3,936) (5,451) 1,515 (11,961) (2,583) (9,378)

CapEx (23,443) (25 ,992) 2 ,549 (66 ,586) (59 ,388) (7 ,198)

Free Cash Flow 5,226 64 ,446 (59 ,220) 79 ,679 181,511 (101,832)

Reconc i l iation from accounting Cash f low to adjusted Cash f low (R$ thousand) 3Q15 3Q14 Chg. 9M15 9M14 Chg.

DFC - Cash provided by operating activ ities (accounting) 40 ,124 99 ,871 (59 ,747) 176,702 264,761 (88,059)

Adjustment – Financ ial items al located to operating cash (11 ,455) (9 ,433) (2 ,022) (30 ,437) (23 ,862) (6 ,575)

Unrealized exchange and monetary variation (24) (441) 417 (618) (1,318) 700

Financial Result (11,467) (9,434) (2,033) (30,647) (23,847) (6,800)

Interest paid on loans 36 442 (406) 828 1,303 (475)

DFC - Cash f lows from investing activ ities (23,443) (25 ,992) 2 ,549 (66 ,586) (59 ,388) (7 ,198)

Free Cash Flow 5,226 64 ,446 (59 ,220) 79 ,679 181,511 (101,832)

3Q15

Outlook

Q&A

AGENDA

3Q15 Results

14

Priority for actions that combine sales growth and margin recovery…

• Sales Growth - Focus on improving assortment and stores supply

:: Assortment

:: Supply

:: Product

• Margin Recovery

:: Reduction of leftovers inventories

:: Reduction of imported mix

:: Pricing strategy

• Expenses Control

... without losing focus on building new growth fronts

AGENDA

3Q15

Outlook

Q&A

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