Slide presentation 1 q09

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Disclaimer

This presentation contains forward-looking statements regarding the prospects of thebusiness, estimates for operating and financial results, and those regarding Cia. Hering'sgrowth prospects. These are merely projections and, as such, are based exclusively onthe expectations of Cia. Hering management concerning the future of the business andits continued access to capital to fund the Company’s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, governmentregulations, competitive pressures, the performance of the Brazilian economy and theindustry, among other factors and risks disclosed in Cia. Hering’s filed disclosuredocuments and are, therefore, subject to change without prior notice.

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AGENDA:AGENDA:AGENDA:AGENDA:

• Highlights• Operating Performance• Operating Performance• Business Strategy and Outlook

1Q09 Highlights

CIA. HERING ENDS UP 1Q09 WITH GROWTH

• Gross revenue in domestic market increased 42.6%

• Hering brand sales rose 48.3%

• Same-store sales growth of 19.0% in the Hering Stores

• EBITDA Margin of 15.2%

CONTINUED GROWTH PLAN

• 1 Hering Store opened in the 1Q09

• Marketing campaign “eu uso Hering desde sempre” with new cel ebrities

• Actions focused on store operating performance optimizati on

• 2 PUC stores opened in the new architectural project

SUSTAINABLE GROWTH

• Capex of R$ 6.5 million

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• Highlights

• Operating Performance• Operating Performance• Business Strategy and Outlook

By Market

Gross Revenue (R$ million)

Foreign Market

10.0

4.9

50.5%

35.2%125.2

169.2

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Domestic Market

164.3

115.2

1Q08 1Q09

42.6%

Domestic Market represented 97.1% of the total gross reve nue in the 1Q09.

11.24.3

164.342.6% 164.342.6%

Gross Revenue – Domestic Market (R$ million)

PUC

dzarmOthers

Multi -

By Brand By Distribution Channel

89.3

132.5

16.3

12.610.72.6

1Q08 1Q09

48.3%

29.9%

4.3%115.2

84.355.3

80.0

59.9

1Q08 1Q09

115.2

52.4%

33.6%

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Hering

Franchise/Own Store

Multi -Brand

Relevant franchise and owned stores growth in the domestic market.

50.5%10.0

3.0

10.0

Private Label vs. Own Brands By Destination

Private

Gross Revenue – Foreign Market (R$ million)

4.9 4.9

5.1

1Q08 1Q09

1.8%

4.9

0.31.0 1.1

0.4

1.0

3.3

4.7

3.0

1Q08 1Q09

4.9

8

North America

MercosulEurope

Others

Latin America

Private Label

Own Brands

Own brands are the focus on exports, specially for Latin A merica.

41.6%42.2%

8 0

1 00

1 2 0

0 .3

0 .3 5

0 .4

0 .4 5-0.5p.p

15.2%14.3%

8 0

1 00

1 2 0

0 .1

0 .1 2

0 .1 4

0 .1 6

0.9 p.p

Gross Profit and EBITDA (R$ million)

Gross Profit (R$ million) andGross Margin (%) EBITDA (R$ million) and EBITDA Margin (%)

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43.657.2

0

2 0

4 0

6 0

1Q08 1Q09

0

0 .05

0 .1

0 .1 5

0 .2

0 .2 5

31.0%

14.8 20.80

2 0

4 0

6 0

1Q08 1Q09

0

0 .02

0 .04

0 .06

0 .08

0 .1

41.2%

Excluding the AVP, the gross margin would reach 42.4% in t he 1Q09.The higher EBITDA margin is due to the increase of the dome stic marketrevenue and the dilution of the operational expenses.

Stores Distribution

1 franchise Hering Store and 2 PUC Stores were opened in thequarter and we have 122 Hering Stores and 8 PUC Stores in the

respective new archictetural project.10

Expansion Plan

Hering Store Expansion

226274

151181

230268

325

182

231

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* estimated

10 25 37 42 51 25 37

141

193226

157194

156

2006 2007 2008 2009* 2010* 1Q08 1Q09

Owned Stores Franchises

The remodeling of the owned stores is the priority for 2009 .The goal of 325 stores is kept for 2010.

Goal:172

Goal:57

Goal:224

Distribution Network Evolution

Distribution Network (number of stores)

5967

75

23

22

22

23

209248

311

423

357

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Goal:172Goal:224

Goal of 38 Hering Stores and 8 PUC stores opening for 200 9.

151 181230

26832539

192344

2006 2007 2008 2009* 2010*

Hering PUC Abroad

209

Expansion Plan 2009 – Franchise

Status

1Q09

1 Franchise opened

2Q09

11 Franchises forecasted

Period State City Location Status

1Q09 SP São Paulo Rua São Bento Opened

2Q09 SP Bauru Bauru Shopping Forecasted

2Q09 AM Manaus Shopping Manauara U.C. Forecasted

2Q09 CE Fortaleza Shopping Via Sul Forecasted

2Q09 DF Taguatinga Shopping Taguatinga Forecasted

2Q09 RS Caxias Do Sul Shopping Iguatemi Forecasted

2Q09 RS Pelotas Galeria Malcom Forecasted

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11 Franchises forecasted2Q09 RS Pelotas Galeria Malcom Forecasted

2Q09 SP São Paulo Rua Damasceno Vieira Forecasted

2Q09 SP Diadema Shopping Praça Da Moça U.C. Forecasted

2Q09 SP São B.do Campo Rua Joao Pessoa Forecasted

2Q09 SP Itatiba Rua Rui Barbosa Forecasted

2Q09 SP Araraquara Centro Forecasted

Expansion Plan 2009 – Franchise

Status

3Q09


4Q09



3Q09 PB Petrolina Shopping River / Rua Forecasted

3Q09 PR Maringa Shopping Catuaí U.C. Forecasted

3Q09 SC Lages Rua Forecasted

3Q09 SP Spaulo / Ribeirão Preto Novo Shopping Ribeirão Forecasted

3Q09 SP São Paulo Rua Cardoso De Almeida Forecasted

3Q09 MG Varginha Rua Forecasted

3Q09 RJ Cabo Frio Rua Forecasted

3Q09 SP Sorocaba Shopping Villagio Forecasted

3Q09 SP São Paulo Tatuapé (Rua) Forecasted

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3Q09 SP São Paulo Tatuapé (Rua) Forecasted

4Q09 BA Salvador Shopping Paralela Forecasted

4Q09 DF Brasilia Shopping Iguatemi Forecasted

4Q09 PA Belem Doca Boulevard Forecasted

4Q09 RS Canoas Shopping Canoas Forecasted

4Q09 SP Bertioga Centro Forecasted

4Q09 SP São Paulo Av. Cantareira Forecasted

4Q09 SP Sto Andre Rua Das Figueiras Forecasted

4Q09 SP Guarulhos Centro (Rua) Forecasted

4Q09 RJ Rio De Janeiro Shopping Botafogo Forecasted

4Q09 SP Jundiai Centro (R Barao De Jundiai) Forecasted

4Q09 SP Campinas Rua Cel. Quirino Forecasted

4Q09 PE Recife Centro, Rua Nova Forecasted

Expansion Plan 2009 – Own Stores

Status

2Q09

3 Stores forecasted

3Q09

1 Store forecasted


2Q09 SP Itupeva Premium Outlet São Paulo Forecasted

2Q09 SP Osasco Shopping União Osasco Forecasted

2Q09 SP São Paulo Avenida Paulista Forecasted

3Q09 RJ Niteroi Rua Moreira Cesar Forecasted

4Q09 SP São Paulo Metro Tucuruvi Forecasted

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1 Store forecasted

4Q09

1 Store forecasted

Hering Store Indicators

Hering Store Performance 1Q08 1Q09 Var.

Number of Stores 182 231 26.9%

Franchise 157 194 23.6%

Own 25 37 48.0%

Sales (R$ thousand) 68,652 96,457 40.5%

Same Store Sales growth 39.9% 19.0% -20.9 p.p.

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Same store sale growth of 19.0%

Same Store Sales growth 39.9% 19.0% -20.9 p.p.

Sales Area (m²) 24,399 29,893 22.5%

Sales (R$ per m²) 2,826 3,240 14.6%

Check-Outs 915,577 1,274,257 39.2%

Units 2,150,542 2,899,517 34.8%

Average Sales Ticket (R$) 75.00 75.70 0.9%

IT

Other

By activity

Capex (R$ million)

0.8 0.1

29.3% 6.5

5.0

Industry

Stores

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1.12.32.0

3.21.6

0.3

1Q08 1Q09

15.0%

190.9%

50.0%

Investments in the industry with the ampliation and update of theunits, including the new one in Parnamirim - RN

Indebtedness Evolution Short Term x Long Term

Indebteness

Short Term55%

201.3

184.6

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Long Term45%

Total Debt in 03/31/09 = R$ 116.2 million

* Last 12 months EBITDA

Net Debt/EBITDA*

Net Debt (R$ million)

-33.4

11.0

-17.3

4.63.5

-0.70.1

-0.2

2005 2006 2007 2008 1Q09

Financial Result

• Positive Financial Result

- On 03/31/09, Cia. Hering registered a revenue of R$ 22.4 million due to thereversal of part of the expense accrued at the end of 2008, referring to the fair

R$ thousand 1Q08 1Q09 Var.

Net Financial Revenues (Expenses) (1,222) (1,098) -10.1%

Net Financial Derivative Instruments Results - 22,038 -

Total Financial Revenues (Expenses) (1,222) 20,940 -1813.6%

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reversal of part of the expense accrued at the end of 2008, referring to the fairvalue of derivatives.

• Swap with 19 dollar verifications (April/09 to Oct/10)

– April/09 and May/09 verifications: exchange rate lower than R$/USD 2.80

– On 05/04/09, Cia. Hering renegotiated the contract, eliminating nine monthlyverifications, from June/09 up to Feb/10 (included), at a R$ 3.1 million cost.

• The Company will remain searching alternatives to minimize and/or to eliminate theexchange risk of the remaining derivatives operations.

Payment to Shareholders

Dividends

� The payment of dividends amounting to R$ 10.6 million (R$ 0.1 9616/share),

related to the year ended on December 31, 2008, was proposed a nd approved

at the General Shareholders’ Meeting held on April 28, 2009.

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at the General Shareholders’ Meeting held on April 28, 2009.


• Highlights• Operating Performance

• Business Strategy and Outlook

Strategy & Outlook

Hering Store chain

� Continue expansion plan – 325 stores by the end of 2010

� Maximize operation performance

– Store space allocation review and optimization

– Automatic replenishment for basic items

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– Fast response for best sellers and continuous promotional s ales for slow movers

� Promote the Hering Store credit card

Marketing campaign “eu uso Hering porque”

Opening of PUC Stores in the new architectural project

Implementation of dzarm. relaunching plan

InvestorInvestor RelationsRelations

Fabio Hering Fabio Hering –– PresidentPresident andand IR IR DirectorDirectorFrederico de Aguiar Oldani Frederico de Aguiar Oldani –– Financial Financial DirectorDirectorKarina Koerich Karina Koerich –– IR ManagerIR ManagerGracila Camargo Lopes Gracila Camargo Lopes –– IR IR AnalystAnalyst

Tel.: +55 (47) 3321Tel.: +55 (47) 3321--3469 3469 EE--mailmail: [email protected]: [email protected]: www.ciahering.com.br/ir: www.ciahering.com.br/ir

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Investor Relations Consulting Firm

FIRB – Financial Investor Relations Brasil

Ligia Montagnani – IR Consultant

Tel: +55 (11) 3897-6857

E-mail: [email protected]

Documents

Slide presentation 1 q09