| Apresentação do Roadshow

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Conference Call

3Q17 and 9M15

Important Disclaimer

Information contained in this document may include forward-looking statements and reflect Management’s

current view and estimates of the evolution of the macroeconomic environment, industry conditions, Company’s

performance and financial results. Any statements, expectations, capabilities, plans and assumptions contained

in this document, which do not describe historical facts, such as information about declaration of dividend

payment, future direction of operations, implementation of relevant operating and financial strategies,

investment program and factors or trends affecting the financial condition, liquidity or results of operations, are

forward-looking statements, as set forth in the “U.S. Private Securities Litigation Reform Act of 1995”, and

involve several risks and uncertainties. There is no guarantee that these results will occur. Forward-looking

statements are based on several factors and expectations, including economic and market conditions, industry

competitiveness and operational factors. Any changes in such expectations and factors may cause actual

results to differ from current expectations.

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3Q17 Highlights

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Net income was R$37.7 million, with a 10.2% margin and growth of 6.3%.Net Income

The Company's gross profit totaled R$169.8 million, with a gross margin of 45.8%,and a 11.6% increase against 3Q16 (growth of 190 bps).

Gross Profit

EBITDA for 3Q17 totaled R$65.4 million, with a margin of 17.6% and a 17.1%increase against 3Q16 (growth of 150 bps).

EBITDA

During the quarter, Arezzo&Co’s opened nine stores, with growth of 4.2% in the sales

area over the last 12 months.Sales Area

Net revenue in 3Q17 reached R$370.8 million, a 6.9% increase against 3Q16.Net Revenue

390,1 416,0

1.020,2 1.117,0

36,4 38,9

114,3 113,7

426,5 455,0

1.134,5 1.230,7

3Q16 3Q17 9M16 9M17

Domestic Market External Market

• The Company achieved a gross revenue of R$455.0 million in the 3Q17, a 6.7% growth compared to the 3Q16, with

similar performance in domestic and external markets.

Company Growth

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Gross Revenue – Domestic and Foreign Market (R$ million)

6.7%

7.0%9.5%

-0.6%

9.5%

6.7%

220,1 238,1

585,0 637,3 130,1 125,9

342,8 343,9

33,4 41,5

79,6 107,1

390,1 416,0

1.020,2

1.117,0

3Q16 3Q17 9M16 9M17

Arezzo Schutz Anacapri Others¹

Gross Revenue Breakdown by Brand – Domestic Market (R$ million)

9.5%

5

Gross Revenue Breakdown by Brand –

Domestic Market

8.9%

0.3%

34.6%

• In 3Q17 and 9M17, the highlight goes to the Anacapri brand with growth of 24.2% and 34.6% respectively.

6.7%

8.1%

-3.3%

24.2%

1) Others: Increase of 65.6% in 3Q17 and 123.2% in 9M17 (includes only domestic markets for Alexandre Birman and Fiever brands and other revenues).

• In 3Q17, the highlight goes to the increase of 23.2% (20.2% in 9M17) in the Web Commerce channel and a growth in

franchise channel of 10.8% (9.5% in 9M17).

Gross Revenue Breakdown by Channel –

Domestic Market

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Gross Revenues by channel – Domestic Market (R$ million)

SSS Sell-out (Owned Stores +

franchises)5.6%

2.1%SSS Sell-in (franchises)

1.5%

7.2%

9.5%

0.1%

9.5%

13.8%

20.2%

SSS Sell-out (Owned Stores + web

+ franchises)6.4% 2.7%

1) Others : Decrease of -59.2% in 3Q17 and increase 31.5% in 9M17 (includes domestic market revenues that are not specific for distribution channels).

1

1.4%

1.0%

1.9%

3.2%

6.5%

4.4%

10.8%

-4.8%

6.7%

3.4%

23.2%

182,1 201,7

491,0 537,8 71,3 67,9

206,9 207,2

107,1 110,7

242,8 276,3

28,7 35,3

77,5

93,1

390,1 416,0

1.020,2

1.117,0

3Q16 3Q17 9M16 9M17

Franchise Owned Stores Multi-brands Web Commerce Others

497 515 514 518 525

47 50 48 49 51

37,7 38,8 38,6 38,9 39,4

-

100

200

300

400

500

600

700

3Q16 4Q16 1Q17 2Q17 3Q17

Franchises Owned Stores¹ Area (000 M²)

• Arezzo&Co’s opened nine stores and ends the quarter with growth of 4.2% of sales area over the last 12 months.

Distribution Channel Expansion

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Owned Stores and Franchises Expansion1

1Includes eight outlet type stores with a total area of 1,959 m² and stores overseas.

Number of Stores – Domestic Market 3Q17

Franchises

Multibrand

Owned Stores

62

22

1,200

Multibrand

Owned Stores 4

20

Franchises 89

Multibrand

Owned Stores 4

1,201

Franchises

Multibrand

Owned Stores

369

15

1,136

Owned Stores 4

+18

3.0% 0.8%

+3

Multibrand 296

-2

-1

-0,5%

+1

+4

1.1%

+2

+7

123,2

151,8 13,7%

15,2%

90,0

100,0

110,0

120,0

130,0

140,0

150,0

160,0

170,0

9M16 9M17

5,0%

7,0%

9,0%

11,0%

13,0%

15,0%

55,9

65,4

16,1%

17,6%

50,0

55,0

60,0

65,0

70,0

75,0

80,0

3Q16 3Q17

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

396,1

454,2

44,0%45,6%

330,0

350,0

370,0

390,0

410,0

430,0

450,0

470,0

9M16 9M17

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

152,2

169,8

43,9%45,8%

100,0

110,0

120,0

130,0

140,0

150,0

160,0

170,0

180,0

190,0

200,0

3Q16 3Q17

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

• Gross profit reached R$169.8 million in 3Q17, an increase of 11.6% and growth of 190bps in gross margin versus 3Q16.

• EBITDA grew by 17.1% in 3Q17 to R$65.4 million, with a margin of 17.6% (growth of 150bps).

Gross Profit and EBITDA

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Gross Profit (R$ million) EBITDA (R$ million)

14.7% 23.2%

+ 150 bps+ 190 bps

+ 160 bps

11.6%17.1%

+ 150 bps

80,3

99,1

8,9%

9,9%

29,0

39,0

49,0

59,0

69,0

79,0

89,0

99,0

109,0

119,0

9M16 9M17

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

35,4

37,7

10,2% 10,2%

27,0

29,0

31,0

33,0

35,0

37,0

39,0

3Q16 3Q17

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

• In the quarter, net income totaled R$37.7 million, with a growth of 6.3% and net margin of 10.2%.

• In 9M17, net income totaled R$99.1 million (+23.4%) and net margin of 9.9%.

Net Income and Net Margin

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Net Income (R$ million)

6.3%

+ 110 bps

0 bps

23.4%

Operating Cash Flow

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• Arezzo&Co generated R$33.2 million cash flow from operations in 3Q17, which was greater than the figure observed in

3Q16, as a result of the Company's focus on managing its working capital more efficiently, with a significant

improvement in accounts receivable and inventories, as well as a 10.3% increase in pre-tax profits.

Operating Cash Flow (R$ thousand)

Operating Cash Flow 3Q17 3Q16 Δ 17 x 16

(R$)

Δ 17 x 16

(%) 9M17 9M16

Δ 17 x 16

(R$)

Δ 17 x 16

(%)

58,213 52,769 5,444 10.3% 141,147 110,462 30,685 27.8%

9,218 6,500 2,718 41.8% 22,630 19,282 3,348 17.4%

(2,925) (880) (2,045) 232.4% (4,271) (22,555) 18,284 n/a

(18,260) (21,674) 3,414 (15.8%) (3,655) (31,950) 28,295 (88.6%)

(50,078) (50,634) 556 (1.1%) (30,567) (53,991) 23,424 (43.4%)

5,014 3,741 1,273 34.0% (9,794) (17,917) 8,123 (45.3%)

19,670 21,930 (2,260) (10.3%) 42,575 38,169 4,406 11.5%

7,134 3,289 3,845 116.9% (5,869) 1,789 (7,658) n/a

(13,040) (10,672) (2,368) 22.2% (27,911) (19,209) (8,702) 45.3%

33,206 26,043 7,163 27.5% 127,940 56,030 71,910 128.3%

Income before income tax and

social contribution

Depreciation and amortization

Others

Payment of income tax and

social contribution

Net cash flow generated by

operational activities

Decrease (increase) in assets /

liabilities

Trade accounts receivables

Inventories

Suppliers

Change in other noncurrent and

current assets and liabilities

0,9 1,8

5,8 5,5 3,2 2,5

8,3 6,0

1,3 0,8

6,6

2,5

5,3 5,1

20,8

13,9

3Q16 3Q17 9M16 9M17

Stores Corporate Others

• In 3Q17, Arezzo&Co invested R$5.1 million in capex, with highlight going to the opening of two owned stores, one of

Arezzo brand and other of Alexandre Birman, both the acquisition of software licenses.

• In September/17, Arezzo&Co distributed R$ 88.8 millions in dividends (anticipation and extraordinary), which reduced

the total cash position in the period, that was kept at healthy levels.

CAPEX and Indebtedness

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CAPEX (R$ millions) Indebtedness (R$ millions)

+109.9%

-20.7%

-4.8%

-41.4%

-6.0%

-28.5%

-32.9%

-62.0%

3Q17 2Q17 3Q16

Total debt 93.221 110.847 95.785

Short term 72.946 88.311 66.424

% total debt 78,3% 79,7% 69,3%

Long-term 20.275 22.536 29.361

% total debt 21,7% 20,3% 30,7%

Net debt (125.033) (199.268) (125.806)

Dívida Líquida/EBITDA -0,6x -1,0x -0,7x

218.254 Cash 310.115 221.591

Cash position and Indebtedness

• Once again the return on invested capital (ROIC) posted growth, reaching 23.9% in the 3Q17.

• Among the factors behind this improvement are the 18.9% growth in NOPAT against 3Q16, the actions taken to improve

working capital - with a focus on reducing inventories and accounts receivable - and the reduction of fixed assets as a

result of the lower percentage of owned stores in the Company's mix.

ROIC (Return on Invested Capital)

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(1) Working Capital: current assets minus cash, cash equivalents and financial investments less current liabilities minus loans and

financing and dividends payable.

(2) Less deferred income tax and social contribution.

(3) Average invested capital in the period and same period previous year.

(4) ROIC: NOPAT for the last 12 months divided by average invested capital.

3Q17 3Q16 3Q15Δ 17 x 16

(%)

176,534 142,470 145,373 23.9%

(52,742) (38,381) (46,200) 37.4%

123,792 104,089 99,173 18.9%

314,394 344,943 341,839 (8.9%)

151,562 162,540 168,276 (6.8%)

32,025 31,450 23,276 1.8%

497,981 538,933 533,391 (7.6%)

518,457 536,162 (3.3%)

23.9% 19.4%

Working Capital1

Income from operations

Invested capital

Average invested capital³

ROIC4

EBIT (UDM)

+ IR e CS (UDM)

NOPAT

Fixed assets

Other long-term assets²

Contacts

Telephone: +55 11 2132-4300

ri@arezzoco.com.br

www.arezzoco.com.br

Daniel Levy

CFO and IR Officer

Aline Penna

IR Manager

Victoria Machado

IR Analyst

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Guilherme de Biagi

IR Coordinator