1. Arezzo&Co’s Investor Day
Schutz Brand
David Python
BU Officer

2. Schutz brand presented strong growth in the past 2 years, doubling revenues
between 2010 and 2012
Brand overview
Update
2
O F MB EX
Fashion
Up to date
Bold
Provocative
18 to 40 years of age
R$305.00/pair
R$439.1 million
36.5%
1995
28 29 1,509
7% 49%36%
132
8%
Extremely loyal consumers
High innovation, always bringing the latest fashion trends
Both offline and online integrated marketing and communication
Innovative store design




 Multichannel strategy implemented
Brand Profile
Target
Woman
Public
Sales Volume 3
% of Gross
Revenue 4
Price at Point
of Sale
Foundation
Distribution
channel
POS1
% Gross
Rev.2
Notes:
1. Points of sales (2Q13); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports
2. % of each brand gross revenues (FY 2012)
3. 2Q13 (LTM) gross revenues, internal market only: does not include other revenues (not generated by the brand)
4. % total (2Q13 LTM) gross revenues

3. Strong growth, consolidating as the second brand of the group
Schutz
History: Brand evolution
Owned stores27 Franchises
Present in multibrand stores>1500
Opening of Flagship Store in NY1st
29
Owned store1
1995 - 2000
2001 - 2008
2009 - 2013
Focus on product development and search of
a national best seller
Factory in
Vale dos
Sinos
Beginning:
Male public
Focus on exports and great expansion in the
multibrand channel
Opening of flagship store on Oscar Freire
with innovative architectural design
Pilot project in the US
Entry into franchise
channel and
monobrand stores
roll-out with
continuous focus on
multibrands
3
Launching of web commerce

4. Distribution focused on
multibrand channel
Flagship stores for brand
strengthening
2010 2Q13
· Complementarity between multibrand and monobrand channels
· Strong growth and exposure to retail through monobrand stores
· +1500 multibrand points of sale, 27 owned stores and 35 franchises
Multibrand
channel
Owned
stores
+MB
Schutz expanded its monobrand stores with 46 openings since 2010
Stores
4
Schutz
History: Brand evolution

5. Brand update
Sell-out actions
5
Attraction
Conversion
Loyalty

6. Brand update
Sell-out actions
6
Actions aligned to the store brand profile to attract the final customer
 Social media daily fed with information on product
and fashion
 Partnerships with bloggers, artists and opinion
makers in all places
 Relationship actions, entertainment and theme
events
 Weekly renovation of visual merchandising,
bringing novelty
 Presence in main fashion vehicles and country
daily life
 Local partnerships
SCHUTZ
FOR AMFAR
SCHUTZ SUMMER 2014
@SCHUTZOFICIAL
Attraction
Conversion
Loyalty

7.  Sales convention to motivate and inform
the sales team
 Sales team with individual goals and daily
follow up
 Constant training in sale technique and
products
 Stores receive magazine with product
trends and information
 Occult client with focus on service quality
Brand update
Sell-out actions
7
SCHUTZ CONVENTION
SCHUTZ ECOBAG
SCHUTZ MAG
Focus on conversion by training the sales team and impressing clients
Attraction
Conversion
Loyalty
MOTHERS’ DAY ACTION
SCHUTZ PREMIER

8.  Differentiated treatment for
Schutz Lovers
 Activation of clients base in
brand events
 Always in touch with clients
through social medias
 E-mail marketing and post sales
card
 CRM action Christmas 2013
8
Final client loyalty is related to post sales experience
Attraction
Conversion
Loyalty
PARTY NIGHT
655 MADISON ACTION AMFAR INVITATION
NYC LUNCH
Brand update
Sell-out actions
CRM ACTION CHRISTMAS 2013
ACTION WITH VIPs

9. Web commerce
Entry into the channel
Source: Euromonitor
Client profile and adhering to online media boosted Schutz entry into the online
channel
Attractiveness of online
commerce, especially in the
fashion segment
Brand adhesion and profile of
Schutz client
 Schutz clients are connected and use
social media to obtain information, to
express themselves and to consume
 Biggest fashion brand on Instagram
 Brand enjoys high online audience and
engagement
 Since 2009, Schutz has a strong
relationship with fashion bloggers
 Strong growth in online sales
 Highest growth in footwear and clothing
segments
 Forecast is maintenance of strong growth
10,387
14,641
20,89395
312
1,444
2008 2010 2012
Other Online Retail Clothing and Footwear
CAGR
08-12
97.4%
19.1%
17.6%
15.0%
CAGR
12-17E
9

10. Web commerce
Entry into the channel
Data: September/2013
Brand strength in the online world and alignment with client profile
Attractiveness of online
commerce, especially in the
fashion segment
Brand adhesion and Schutz client
profile
Audience
Engagement
exame.com award
Recognized as the most active
brand on Instragram
• Likes: 8999
• Comments: 168
• Date: 18.49 – Sep 23, 2013
• Likes: 8461
• Comments: 115
• Date: 11.15 – Aug 8,
2013
August 2013 average
• Pictures: in the month 133 / 4.2 pictures per day
• Likes – TOTAL: 565 thousand/ Per pictures: 4,252
• Comments – TOTAL: ~10 thousand/ Per picture: 75
• Engagement: 56.6

11. 11
 R$1 million sales
 Thesis test
 R$10 million sales
 Internal strengthening to better serve
our clients
 Dedicated management
 Estimated sales of R$23 million
 Preparation to expand channel
potential
 Evolution of technological platform
worldwide
 Dedicated logistic operator
 Improvement of online marketing
actions
Sep-Dec 2011 2012 2013
FACEBOOK/INSTAGRAM 2013
WEBCOMMERCE BEGINNING
Web commerce
Channel evolution
Structuring of online channel and initial results confirm channel attractiveness
and alignment
CRM Action
Online
Schutzlovers

12. 12
Brand update
Handbags
5%
9%
2T12 2T13
1
2
3
Note: handbags as percentage of owned stores revenues
Segmentation by product and channel to
meet final client’s needs
Development of products, increasing
their perceived value
Reduction in the number of models,
favoring supply chain and creating
identity for in-store product
Changes in strategy for Schutz brand handbags resulted in a strong growth in
the product segment
Handbags % of Schutz Revenue

13. 13
Brand update
Handbags
SCHUTZ
PREMIUM
SCHUTZ
POP & FUN
SCHUTZ
✔
R$790 - R$1,100*
R$490 - R$790*
R$350 - R$490*
O / F
Difference
between lines
Product technical
standard
Sourcing base
Used materials
Level of exposure of
brand/logo
V.M. in store and
showroom
Depth of purchases in
the grids
Training of commercial
teams
Marketing and
communication actions
✔ ✔
✔
MB SAMPLES
Main channel
Product line segmentation enables reaching different audiences in different
channels, with the proper branding strategy and meeting clients’ desires
Note: POS values
O = Owned Stores; F = Domestic Franchises; MB = Multibrand store (domestic market)

14. Focus on product development increased perceived quality and desire for the
product
14
Brand update
Handbags
 Detailed product development
 Desire and spontaneous reaction
of opinion makers
 Over 2,100 pieces sold

15. Optimization of product line provided productive viability, better development
and assertive store exposure
15
Brand update
Handbags
*Evolution of indicators in post-strategy change period
Average
sale of
models per
launch
+ 44%
255
370
2012 2013
 A better assertiveness in the
average number of models per
launch
 Total increase of sold models per
launch
 An assertive mix provides differentiated
exposure in the store and showroom
 More depth per model reinforces
identity at the store and less rupture
 A better sale per model benefits all the
channel

16. After one year of operation, pilot store in New York enables learning and
continues to be an important laboratory
16
Brand update
International operation
Operation Highlights
 Store revenue in line with local
benchmarks
 Initial interest of US wholesalers
(brick-and-mortar and online)
 Positive product feedback due to
quality
 Increased knowledge of local
customers
 Ongoing product test and
adjustment

17. Proper organic marketing strategy to stir desire
17
Brand update
International operation

18. Marketing actions with store in the US leverage branding and desire in Brazil
18
Brand update
International operation
INSTAGRAM MADISON 1 YEAR AVERAGE -
@SCHUTZOFICIAL (BR)
• PHOTOS: 51 PHOTOS
• OPINION MAKERS PHOTOS: 63 PHOTOS
• LIKES @SCHUTZOFICIAL: 177,300 / AVERAGE OF 3,476 PER PHOTO
• COMMENTS – TOTAL: 1,637 / AVERAGE OF 32 PER PHOTO
• ENGAGEMENT: 108.30