2. Notes:
1. Women’s footwear market in Brazil; Source: Euromonitor. Chart base 100= 2009
2. Based on Euromonitor research and IBOPE Inteligência (Pyxis). Estimate of Arezzo&Co market share for the women’s footwear market
Growth: Arezzo&Co Sell-out Net Sales Vs. Market
2
Leader in the women shoe industry, growing 4x faster than the domestic
market growth in the last 4 years
4% growth in Market Share
over the last 5 years
Financial Performance
Solid growth history
Arezzo&Co Market Share² Evolution
28,4%
33%
Market CAGR
Arezzo&Co CAGR
8%
44.2%
101.9%
144.6%
210.9%
13.9%
31.8% 29.8% 36.5%
2009 2010 2011 2012
4.3x
Arezzo&Co (invoice sell-out) Market¹
3. 8,4%
Notes:
1. The adjustments to the EBITDA figures for 2012 and 1H2012 relate to the extraordinary expense of R$8 million incurred in changing a sourcing agent. This expense is shown in
Income, net of tax effects.
3
Solid growth has been sustainably executed with maintenance of high margins
Financial Performance
Maintenance of high margins
EBITDA (R$ MM) and EBITDA Margin (%) Evolution
48,5%
57,7%
23,3%
22,1%
20,6%
Net Income (R$ MM) and Net Margin (%) Evolution
118,3%
32,4%
42,0%
11,5%
15,6%
41
61
95
118
144
57
69
11.1%
14.7%
16.7% 17.3% 16.7%
15.9% 15.8%
EBITDA Margem EBITDA
48.5%
57.7%
23.3%
22.1%
22
49
65
92
102
42
48
6.1%
11.8%
11.3%
13.5%
11.9% 11.6%
11.0%
Lucro Líquido Margem Líquida
15.6%
EBITDA Margin Net Profit Net Margin
4. Notes:
1. Includes Anacapri, Alexandre Birman, and the exports market
2. Includes the exports market and other revenues from the domestic market
4
Diversification of revenues by brand and by channel strengthens the business
model
Financial Performance
Diversified Revenues
Sales by Brand Breakdown Sales by Channel Breakdown
Other Brands
5. 21.4%
24.8%
28.2%
27.4%
23.3%
25.4%
78 90 103 100 81 97
9 8
23
37
21
7
2 6
6
18
10
12
2
1
2
2
11
16
30
57
32
20
Lojas (Expansão e Reformas) Corporativo Outros
5
Financial Performance
2011 – 2013: Period of investment
Major investments in recent years to maintain Company growth, especially on
the owned store model
CAPEX (R$ MM) Working Capital (% of Revenues and Turnover in days)
1.9x
1.9x
Days of working capital
6. Changes in ROIC 2009 2010 2011 2012¹ CAGR
(+) EBIT 59 93 114 136 32.3%
(-) Income & Social Contribution Taxes -10 -25 -34 -39
Proforma NOPLAT 49 68 80 97 25.7%
(+) Working Capital 88 142 192 236 38.7%
(+) Permanent Assets 23 36 61 109 66.9%
(+) Other Non-Current Assets 22 8 7 8
Capital Employed (End of Year) 134 186 260 353
Capital Employed (Average) 122 160 223 306 35.8%
ROIC 39.9% 42.5% 35.8% 31.6%
6
Financial Performance
Level of ROIC
Level of ROIC reflects the Company’s significant investments in recent years
Notes:
1. NOPLAT for 2012 has been adjusted for the impact of an extraordinary expense of R$8 million incurred in changing a sourcing agent, net of tax effects.
CAPEX for opening owned
stores, strengthening the
logistics structure, IT, etc.,
and the increase in working
capital, affected the level of
capital employed by the
Company, temporarily
reducing its profitability
indicators (ROIC).
The solid structure resulting
from these investments will
reinforce the Company’s
growth in the years ahead,
and profitability indicators will
rise again.
7. 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%
7
-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
