Arezzo day site ing

Arezzo&Co’s Investor Day
2014

SCHEDULE
SCHEDULE ACTIVITIES
13:30 - 14:00 Welcome and Registration
14:00 - 14:10 Instructions and Schedule of the Day
14:10 - 14:20 Initial Considerations
FIRST PART
14:20 - 14:35 Arezzo
14:35 - 14:50 Schutz
14:50 - 15:05 Anacapri
15:05 - 15:15 Alexandre Birman
15:15 - 15:40 Q&A
15:40 - 16:00 Coffe Break
SECOND PART
16:00 - 16:15 People
16:15 - 16:55 Operational Efficiency
16:55 - 17:25 CRM and Webcommerce
17:25 - 17:45 Development of New Businesses
17:45 - 18:15 Q&A
18:15 - 18:30 Final Considerations

Initial Considerations
Alexandre Birman
CEO
November 13, 2014

Arezzo&Co
Platform of Benchmark Brands
The Company has an exclusive portfolio of brands that are top-of-mind in the markets where it
operates
4

Arezzo&Co
Flexible Business Model
Arezzo&Co has total control over its Value Chain, from creation of the product, to the consumer’s in-store
experience
1 2 3 4 5
People & Management
Customer-focused: we seek to anticipate what Brazilian
women want
Sourcing and Logistics Multichannel
BENCHMARK BRANDS
Communication and
Marketing
EXPERIENCED
MANAGEMENT
TEAM WITH
RESULTS-BASED
INCENTIVES
NATIONAL
DISTRIBUTION
STRATEGY
STREAMLINED
AND EFFICIENT
SUPPLY CHAIN
SOUND
COMMUNICATION
AND MARKETING
PROGRAM
ABILITY TO
INNOVATE
R&D
5

6
Arezzo&Co
Key Message
The Arezzo & Co continues to evolve and investing to ensure the improvement of its business model
and its sustainable growth
Focus on product and brand, with constant actions of sell-out by
1 stimulating the desire to buy
Organic growth boosted by multi-brand and multi-channel strategy, in
shoes and handbags 2
Increasing focus on sell-out to have the right product, at the right price, at
3 the right time
Important investments in people, processes and infrastructure allow you to
add analytical insight to creative business DNA, enabling sustainable
growth 4
Leading brands and proven business model enable test and capture
growth options in different fronts 5

AREZZO&CO INVESTOR DAY
CLAUDIA NARCISO
BU OFFICER
1

OVERVIEW OF THE BRAND 01 UPDATE
BRAND
FOUNDATION
PROFILE
TARGET FEMALE
1972
TRENDY
NEW
EASY TO WEAR
ECLECTIC
AUDIENCE AGED 6 – 60
DISTRIBUTION
CHANNEL
POS1
%GROSS
REVENUES2
PRICE AT THE POINT
OF SALE
SALES VOLUME3
O
17
14%
% GROSS REVENUES4 57.5 %
Arezzo is the top of mind brand in Brazil for over 5 years.
EX
44
1%
F
344
73%
MB
1.057
12%
R$ 189,00/PAIR
R$ 752.3 MILLION
“Top of mind brand” in the sector among the
30 most valuable brands in Latin America.
Uniform distribution throughout the
national territory, with the largest network
of women’s footwear stores in Brazil.
Eclectic brand, with good penetration in
several social classes and age grades.
Continuous focus on product innovation
enables high turnover in different price
ranges.
New and more productive store model, with
strong acceptance by the target audience.
Notes
1 Points of Sale (3Q14): P = Owned Stores; F = National Franchises; MM = Multibrand Stores (domestic market); EX = Exports.
2 % gross revenues (last 12 months – 3Q14)
3 (UDM = last twelve months – 3Q14). Gross revenue do not include Other Revenues (not generated by the brand).
4 % gross revenues (last twelve months – 3Q14)
2

HISTORY 02 BRAND EVOLUTION
Right changes at the right moments set the construction of the leading brand in the Brazilian women footwear market and main brand of the group.
Verticalized industrial
model, with production
of 1.5 million pairs/year.
1986 – First franchise.
Opening of the first
flagship store at Rua
Oscar Freire, in São Paulo.
Transfer of R&D and
production outsourcing in
Vale dos Sinos.
Professional management with
Tarpon.
Consolidation of marketing and
communication strategy.
Innovation in store with chameleon
project.
Expansion of distribution channels.
Fast Fashion – 7 to 9 collection per
year.
Focus on sell-out with POS systems
implementation.
New store supply model.
New store layout.
Awarded as the Best Franchise
Network in Brazil. Consolidation
of its position as market leader.
17 Owned Stores
344 Franchises
1,057 Multibrand stores
70
Founded in 1972, always
focused on products and
brands, launching the first
national best-selling product.
80
90
2000 - 2007 2008 - 2014
3

BRAND PROFILE 03 BRAND PILLARS
The brand’s three pillars are its resilient growth, its product and 42-year brand legacy.
RESILIENT
GROWTH PRODUCT
Democratic Brand
Wide Distribution
Network
Focus on Sell Out
Innovative Supply Model
Basics | Classic | Fast Fashion
High sales in the network
LEGACY
30-year Franchise
Focus on the Health
of the Network
Productive Store Model
4

BRAND PROFILE 03 BRAND PILLARS
The brand’s three pillars are its resilient growth, its product and 42-year brand legacy.
RESILIENT
GROWTH PRODUCT
Democratic Brand
Wide Distribution
Network
Focus on Sell Out
Innovative Supply Model
Basics | Classic | Fast Fashion
High sales in the network
LEGACY
30-year Franchise
Focus on the Health
of the Network
Productive Store Model
5

The Arezzo brand kept prices stable since 2009.
RESILIENT GROWTH 04 CONSTANT PRICES
CONSTANT PRICES AREZZO BRAND REVENUES
Continuous investment in research
and development.
Allocation of production of continuables
in periods of industry downturn.
Production scale.
• INCREASE IN VALUE PERCEPTION
BY CONSUMERS
• HEALTHIER GROWTH
• CAPTURE OF MARKET SHARE
CAGR 2009 – 2013
350,8
VOLUME OF AREZZO FOOTWEAR
CAGR 2009 – 2013
1
2
3 2009
479,2
566,9
663,3 716,6
2010 2011 2012 2013
19,6%
18,2%
2009 2010 2011 2012 2013
6

RESILIENT GROWTH 04 DEMOCRATIC AND AFFORDABLE
Arezzo presents a complete mix of categories and price ranges, providing a variety of choices for different types of consumers.
PRICE AT THE POINT OF SALE R$ 129,90 R$ 159,90 R$ 219,90 R$ 239,90 R$ 399,90
FULL PRICE TURNOVER 78% 76% 83% 79% 86%
7

31%
PURCHASED AREZZO IN THE PAST 3 MONTHS
NEXT PURCHASE WILL BE AREZZO
21%
A1
18-24
FOOTWEAR PURCHASE
FREQUENCY
EACH
MONTH
TOP OF MIND
TOP 3
CONSIDERS
KNOWS
TOP OF MIND
42%
19%
B1
45-60
EACH
3 MONTHS
EACH
6 MONTHS
ONCE
A YEAR
15%
21%
A2
25-44
EACH
2 MONTHS
PREFERS
PREFERS
TOP 3
CONSIDERS
KNOWS
ALL CLASSES
ALL
AGES
CLASS A1
18-24 YEARS
OLD
CLASS A2
25-44 YEARS
OLD
CLASS B1
25-65 YEARS
OLD
29%
22%
41%
23%
14%
18%
SOCIAL CLASS
AGE
9%
23%
23%
49%
24%
29%
25%
18%
21%
23%
16%
16%
34%
12%
19%
16%
13%
19%
36%
36%
58%
34%
45%
37%
30%
36%
89%
89%
100%
90%
91%
91%
87%
85%
98%
98%
100%
90%
99%
99%
98%
97%
37%
29%
2%
THE AREZZO BRAND IS KNOWN IN ALL
SOCIAL CLASSES AND AGES…
…WHO INTEND TO REPEAT THE
PURCHASE MADE 3 MONTHS AGO
RESILIENT GROWTH 04 ECLECTIC BRAND
In a market with high purchase frequency by customers, the Arezzo brand is top of mind and attractive for different social classes and ages.
98% OF HIGHER CLASS CONSUMERS
BUY SHOES EVERY 6 MONTHS
BEING PRESENT AT ALL TIMES IN THE MIND OF CONSUMERS IS ESSENTIAL
8

JANUARY
Sale
eCall
January 10
FEBRUARY MARCH
Pre Fall
Sales Team’s Product
Training
More than 1,500 sales
assistants trained.
eCall
February 20
Winter Campaign with
Fernanda Lima
More than 150 thousand
mentions on the Web.
Winter Launch
March 12
Fernanda Lima Tour
4 domestic events.
Simultaneous event
throughout Brazil.
More than 5,000 pics
with #arezzomobparty3
More than 50,000 mentions
on Google.
More than 3,000 new
followers on Instagram.
Motivational Sell
In MOB Party for
Consultants
Motivational Sell Out
World Cup Arezzo
RESILIENT GROWTH 04 FOCUS ON SELL OUT
9

APRIL MAY JUNE
Mother’s
Best-selling day in
Arezzo’s history.
“Mothers and Arezzo:
a Love Affair” Event
Strong growth in sales
compared to same period
of last year.
Motivational Sell In
Inventory
Eternal Ties
Valentine’s Day
“Buy and Win” Action
May 30 to June 12
“Due Amori” Action
June 5 to 12
“Brahma Boteco Arezzo”
Co-Branding Action
June 11
World Cup
“Buy and Win” Action,
Fan’s Kit – June 13
to July 13
Winter Convention
Participants present - 500
in São Paulo, 300 in Rio
de Janeiro, 50 in Belo
Horizonte, 30 in Rio Grande
do Sul, 30 in Paraná -
convention repeated in
the Franchise Channel
with approximately 5,000
persons trained in Brazil.
eCall
April 22
Action involving Gol and
Azul airlines – 17,000
people impacted.
“Brazil, I Love You”
VIP SALE
June 16, June 20, June 27
Sweet April
10

JULY AUGUST SEPTEMBER
Spring
“High Summer” and
Award of “Arezzo’s
Best” Trophies
Motivational Sell
Out – Warm up – High
Summer
Sales Team’s Product
Training
1,500 sellers trained.
awards the Coordinator
a trip to NY
eCall
July 3
Thunderbolt
Cruise Collection
Sale
Mais Moda Convention
Participants present - 600
in São Paulo (managers)
- convention repeated in
the Franchise Channel
with some 5,000 persons
trained in Brazil.
Summer Campaign
with Leandra Leal
Summer Launch
Leandra Leal Tour – 2
events with the presence
of the actress.
Simultaneous event
throughout Brazil -
#minhaselfiearezzo
Special Action.
More than 5,000 pictures
with #arezzomobparty4
hash tag.
with #arezzoverao2015
hash tag.
with #minhaselfiearezzo
hash tag.
More than 6,000 new
followers on Instagram.
for Consultants and
Coordinators
MOB Sweet August
Hot Award August 30,
Best MOB Party
11

OCTOBER NOVEMBER DECEMBER
Children’s Day
Sales Team’s
Product Training
1,500 sales assistant
trained.
Motivational Sell
In – Gift Guide for
Coordinators and
Consultants
eCall
October 20
October is All
High Summer Launch
November 5, simultaneous
event in Brazil; November
6, Oscar Freire Flagship
Store.
Still Campaign
1st phase
Christmas
Launch of “Arezzo Por
Elas” Collection
Christmas Promotion
#2015razõesprasorrir
Christmas
12

05 PRODUCT
INNOVATIVE MODEL OF SUPPLY
The new strategy provides better feedback from the sell out, higher frequency of best sellers in stores and assertiveness in the collections.
COLLECTIONS INCREASINGLY
ASSERTIVE
Greater agility to incorporate
sell out data on the replacements and
product development increases
the efficiency of the collection.
1
3
FOCUS ON THE SELL OUT
New sell in dynamics with purchase map
suggested provides greater agility in the
process, allowing an even bigger focus on
the sell out.
2
FLEXIBLE SUPPLY TO THE
FASHION PROFILE
Quantity and frequency of collections takes
into consideration product life cycle, with
increased availability of best-sellers.
13

Champion models with excellent performance of sell-out in the colors of the season with low fashion risk.
The main change of collection, with greater
fashion content, presented on fashion show.
Complement based on latest fashion data,
offered via e-showroom.
Automatic replacement of best sellers and their
variants based on the reading of the sell-out.
Selection of existing models with good sell out
performance history, in the season colors for
automatic replacement with open size run.
SKUs with great sales history and spin to
automatic replacement with open grid.
LIFE CYCLE SUPPLY MODEL
SHOWROOM
COMPLEMENT
FASHION
FAST FASHION
BASICS
CLASSIC
COLLECTION
CONTINUABLE
PERENNIALS
05 PRODUCT
BASICS - REGULAR SALE, CONSTANT REPLACEMENT, MAJOR MARK UP
14

The renewal of Basics products happens at every new release, always favoring sales champions models and details
SUMMER
2014
HIGH SUMMER
2014
WINTER
2014
SUMMER
2015
HIGH SUMMER
2015
that highlight the enchantment factors of the moment.
05 PRODUCT
BASICS - REGULAR SALE, CONSTANT REPLACEMENT, MAJOR MARK UP
Consistent participation in share of all collections, representing 6-8% of sell out sales.
15

The main change of collection, with greater
fashion content, presented on fashion show.
Complement based on latest fashion data,
offered via e-showroom.
Automatic replacement of best sellers and their
variants based on the reading of the sell-out.
Selection of existing models with good sell out
performance history, in the season colors for
automatic replacement with open size run.
SKUs with great sales history and spin to
automatic replacement with open grid.
LIFE CYCLE SUPPLY MODEL
SHOWROOM
COMPLEMENT
FASHION
FAST FASHION
BASICS
CLASSIC
COLLECTION
CONTINUABLES
PERENNIALS
05 PRODUCT
FAST FASHION
The new supply model is a reality in the brand’s routine and results are relevant in sell out performance.
16

05 PRODUCT
FAST FASHION
In the winter, we had the second implementation experience of replacement with Fast Fashion model, with excellent sales results ¹
INITIAL PURCHASE
9 THOUSAND PAIRS +
=
FAST FASHION REPLACEMENT
60 THOUSAND PAIRS
SELL OUT = 130 THOUSAND
PAIRS
TURN = 88%
10% OF TOTAL SELL OUT
OF THE COLLECTION
GROWTH
OF 47%
IN SELL OUT
¹The sales for winter collection of 1404 of 02/01/14 until 07/31/14 - of all the stores of the chain.
17

05 PRODUCT
GROWTH OPPORTUNITY HANDBAGS
The handbags represent 17% of revenues of the brand Arezzo, offering an opportunity for future growth.
SHARE HANDBAGS AND SHOES
HANDBAGS
50-60%
20% 17%
BRAZIL
INTERNATIONAL
BENCHMARKS2
The current market size of handbags and women’s
footwear is R$ 20 billion, of which handbags represent
20%, or R$ 4 billion, in a more fragmented market.
n the Arezzo brand, handbags represent R$124 million3
in the 12 months ended in the 3Q14.
In international benchmarks, the category gets to
represent up to 60% of revenues.
20%
R$
20 bi1
80%
BRAZIL FOOTWEAR
Notas: 1) In 2013 2) Handbags as a percentage of revenues of Michael Kors and Coach 3) National Revenue.
AREZZO
18

In order to capture the opportunity of handbags, the brand launched an internal process taking a product attractive enough to the point of sale.
A bigger investment in Research and
Development to increase expertise in the
category.
1
2
3
4
5
A greater focus on internal modeling
with the creation of a Samples Factory,
developing products icons.
A greater control of engineering cost in
order to introduce even more attractive
prices at the point of sale.
An unique communication and marketing
in order to increase the perception of the
category.
Complementary initiatives having
the final customer as a focus, such
as market research.
05 PRODUCT
GROWTH OPPORTUNITY HANDBAGS
19

SUCCESSFUL PARTNERSHIP: “WIN-WIN”
Intense retail training.
Constant support: average of 6 stores per
consultant and 22 visits per store per year.
Solid relationship and constant support to the franchisee.
Integration of IT systems achieves 100% of the network.
As monobrand shops, franchises reinforce branding in every
city in which they are located.
BEST FRANCHISE IN BRAZIL (2005) AND OF THE
SEGMENT FOR 7 YEARS SINCE 2004
SEAL OF EXCELLENCE IN FRANCHISES
IN THE LAST 8 YEARS (ABF)
96% OF SATISFACTION OF FRANCHISEES1
LOW DELINQUENCY RATES
5-YEAR CONTRACT AVERAGE
PAYBACK IN 40 MONTHS
4 OR MORE
FRANCHISES
3 FRANCHISES
15%
16%
2 FRANCHISES
1 FRANCHISE
CONCENTRATION OF FRANCHISES PER OPERATOR
(AMOUNT OF OPERATORS BY NUMBER OF FRANCHISES HELD)
38%
31%
Notes
1 96% of current franchisees indicated that would open a franchise if they were not franchisees.
2 Annual sales of R$ 3.3 millions + average initial investment of R$ 900 thousand + initial working capital of R$ 600 thousand.
06 LEGACY
HIGH SATISFACTION OF FRANCHISEES
The model allows rapid expansion with low investment from Arezzo&Co.
.
20

06 LEGACY
EXPANSION PLAN -RENOVATIONS AND EXPANSIONS
Change in store layout generated
freshness, reinvigorating Arezzo
stores, putting the brand further
away from competition
New store model allows 50%
more products exposed per m2
In renovated stores, average
increase in sales was 15%
In expanded stores, sales presented
expressive growth, following the
brand’s historical maturation curve
The plan to open, expand and
refurbish stores is a key pillar to
grow sales and increase penetration
Until the end of 2014, more than 50 stores under the new Contemporary layout model
21

INNOVATION IN THE MANAGEMENT MODEL 07 2013 | 2014
The result is being built based on various structured actions with focus and discipline in the execution.
2013
PREV
NEW SUPPLY MODELS
NEW SERVICE MODEL
GOAL PLANNING
BASED ON SELL OUT
2014 + FOCUS ON SELL OUT
PLANNING BASED ON
PERFORMANCE GAPS
STRUCTURED ACTION PLANS
BASED ON IDENTIFIED
OPPORTUNITIES
+ DISCIPLINE IN
EXECUTION
+ ASSERTIVENESS IN
ACTION PLANS
22

08
1 Eclectic and democratic brand with the right product at the right price for all consumers.
2
3
4
5
Learnings of GTM and benchmarking of the chain with a focus on expanding the sell out.
Supply chain and logistics management to shorten deadlines and allow fast responses,
that reduce risks and stimulate sell out.
Additional opportunities for growth in handbags and accessories, multi-brand stores and
online channel.
Continuous focus on strengthening the brand.
AREZZO
KEY MESSAGES
23

SCHUTZ
LIVING
FOR
PLEASURE
AREZZO&CO'S INVESTOR DAY 2014
FABIOLA GUIMARÃES
BU OFFICER

THE SCHUTZ BRAND CONTINUES TO INNOVATE IN ITS MARKETING COMMUNICATION STRATEGY
RETAINING CONSUMERS AND DOMINATING ITS SEGMENT
FOUNDATION
BRAND
PROFILE
FEMALE
TARGET
SEGMENT
DISTRIBUTION
CHANNEL
POS1
%
GROSS
REV.2
POINT OF
SALE PRICE
VOLUME
SALES3
% GROSS
REVENUE4
SCHUTZ BRAND OVERVIEW
1995
FASHION
UP TO DATE
AUTHENTIC
BOLD
AGED 18 - 40
O F MB EX
27 48 1,490
37% 12% 41%
R$330.00/PAIR
R$478.0 million
36.5%
168
10%
● HIGHLY INNOVATIVE, LAUNCHING DIFFERENTIATED COLLECTIONS
AROUSING CONSUMER DESIRE
● MARKETING AND COMMUNICATION INTEGRATING ONLINE AND
PHYSICAL STORES
● MODERN HI-TEC STORE DESIGN HIGHLIGHTING THE PRODUCTS
● EXTREMELY LOYAL CONSUMERS WITH STRONG BRAND
IDENTIFICATION
● MULTI-CHANNEL STRATEGY IMPLEMENTED
NOTES:
1 - POINTS OF SALE (3Q14): O = OWNED STORES; F = FRANCHISEES BRAZIL; MB = MULTIBRAND STORES (DOMESTIC MARKET); EX = EXPORTS.
2 -% OF BRAND’S GROSS REVENUE (LAST TWELVE MONTHS - 3Q14)
3 - (LTM = LAST TWELVE MONTHS - 3Q14). GROSS REVENUE DOES NOT INCLUDE OTHER REVENUES (NOT PRODUCED BY THE BRAND).
4 -% OF COMPANY’S TOTAL GROSS REVENUE (LAST TWELVE MONTHS - 3Q14)

1ST FLAGSHIP IN NY STORE OPENED
OWNED STORES FRANCHISEES
SCHUTZ BRAND HISTORY
INNOVATION TRACK RECORD, KEEPING THE BRAND AHEAD
OF THE MAIN TRENDS
INITIATIVES IN >1,500 MULTI-BRAND STORES
43
WEB-COMMERCE ROLLOUT
1 OWNED STORE
27
1995 - 2000
2009 - 2014
FOCUS ON PRODUCT DEVELOPMENT AND
PURSUIT OF A NATIONAL CHAMPION
START:
TARGET
MALE
FACTORY IN
VALE DOS
SINOS
FOCUS ON EXPORTS AND MAJOR GROWTH
IN MULTI-BRAND STORES
OSCAR FREIRE FLAGSHIP OPENING
INNOVATIVE ARCHITECTURAL DESIGN
AND PILOT PROJECT IN THE USA
ENTERING FRANCHISE CHANNEL AND
ROLLING OUT MONOBRAND STORES WITH
CONTINUING MULTI-BRAND PRESENCE
2009 - 2014

4
SCHUTZ BRAND IMPACT
WITH INTEGRATED INNOVATIVE STRATEGIES, SCHUTZ IS BASED ON THREE PILLARS TO
IMPACT AND RELATE TO ITS CONSUMERS
● MARKETING AND BRANDING COMBINED WITH SELL-OUT INITIATIVES
● CUSTOMER IDENTIFICATION AND LOYALTY | SCHUTZLOVERS
● OUTREACH, SOCIAL AND SPONTANEOUS MEDIA
● PRODUCT AND TREND DIFFERENTIATION
● FAST FASHION "MUST HAVE"
● TRANSFER KNOW-HOW TO HANDBAGS
IMPACT
● VISUAL MERCHANDISING
● TEAM AND TRAINING
THE SHOW
(DESIRE)
THE STAR
(PRODUCT)
THE STAGE
(STORE)

●
BY CONSTANTLY
RENOVATING STORES
AMBIANCE, SCHUTZ
WOWS CUSTOMERS
AND KEEPS THE
DELIGHTED-CUSTOMER
FACTOR
THE STAGE

SCHUTZ
INCREASINGLY INNOVATIVE VISUAL
MERCHANDISING
● HIGHER IMPACT WINDOW DISPLAYS ADDING NEW
CONCEPTS, COMPONENTS, SHAPES AND
COLORS. USE OF LIGHTS, TECHNOLOGY AND BIG
FITTINGS ALIGNED WITH THE BRAND'S
POSITIONING
● SHOWCASES TO HIGHLIGHT AND ENHANCE
PRODUCTS DRIVING CONSUMER DESIRE
● CREATIVITY AND INNOVATION TO BEAT THE
COMPETITION WITH THE ONLINE MARKET
● CONSTANTLY STUDYING STORE HEAT MAP TO
ENHANCE KNOWLEDGE OF CUSTOMER'S EYE
● PILOT PROJECT TO TRAIN STORE AND RECYCLE
STORE TEAM
● CONSTANTLY RENOVATING STORE PERSONNEL
UNIFORMS, ALWAYS ALINGNED WITH VUSAL
MERCHANDISING PROPOSAL
THE STAGE

SCHUTZ
FOCUS ON CONVERSION BY SUPPORTING
AND TRAINING THE TEAM
● CONSTANT TRAINING IN SELLING
TECHNIQUES AND PRODUCT, WITH 3
SALES CONVENTIONS EACH YEAR TO
MOTIVATE AND INFORM IN-STORE
TEAMS
● MAGAZINES AND NEWSLETTERS SENT
TO ALL STORES MONTHLY CONTAINING
FASHION TRENDS AND NEWS
● SALES TEAM RESULTS MONITORED ON
A DAILY BASIS
● CREATED WHATSAPP PROJECT,
STRUCTURING USE OF APP AS SALES
TOOL THROUGH WEEKLY MESSAGES
CONTAINING IMAGES, STANDARDIZING
AND ENHANCING THE QUALITY OF
COMMUNICATION WITH THE BRAND'S
CUSTOMERS
THE STAGE

●
IN 2014 SCHUTZ
CONSOLIDATED AS
PIONEER BRAND TO
LAUNCH
MACROTRENDS IN
MARKETING
INITIATIVES
THE SHOW

ALWAYS TO THE FORE, SCHUTZ BRAND DEVELOPS
INITIATIVES ALIGNED TO THE BRAND'S PROFILE TO
ATTRACT END CONSUMERS TO STORES
● LONG HISTORY IN PRESENTING NEW IDEAS IN ITS
MARKETING COMMUNICATION PLAN
● NEW FORMAT OF IN-STORE EVENTS FOCUSED ON
PROVIDING UNIQUE EXPERIENCES FOR
CUSTOMERS
● STRONG SOCIAL MEDIA RECOGNITION WITH
THOUSANDS OF INSTAGRAM "LIKES"
● STORES INITIATIVES ALSO FOCUSING ON
ADDITIONAL REVENUES, WITH EVENT-DAY SALES
MORE THAN DOUBLING A NORMAL DAY'S SALES
MARKETING AND BRANDING FOR SELL-SCHUTZ
OUT

FINAL-CONSUMER RELATIONSHIP INITIATIVES RELATED TO
POST-PURCHASE EXPERIENCE AND INTERACTIONS WITH THE
BRAND
● THE BRAND RUNS FREQUENT RELATIONSHIP INITIATIVES
EXCLUSIVE FOR SCHUTZLOVER CUSTOMERS, STRENGTHENING
THE BRAND IDENTIFICATION
● SCHUTZ IS PRESENT IN CONSUMER'S DAY-BY-DAY THROUGH
BRANDING INITIATIVES AT KEY POINTS FOR ITS TARGET AUDIENCE
● WITH AN EXCLUSIVE GIFT, THE CHRISTMAS CRM INITIATIVE
STRENGTHENS THE BOND WITH CLIENTS AND CULTIVATES LOYAL
CUSTOMERS ALL YEAR ROUND
● SCHUTZ'S LIVE STREAMING INITIATIVE REASSERTED ITS
INNOVATIVE CHARACTER AS THE FIRST BRAZILIAN BRAND TO
BROADCAST ITS LAUNCH EVENTS LIVE, ESTABLISHING AN
INTERCHANGE BETWEEN PHYSICAL STORES AND WEB COMMERCE
● LIVE STREAMING HAD 15,000 ACCESSES AND WAS VIDEOWALLED
AT EVERY STORE
SCHUTZ BRAND IDENTIFICATION AND LOYALTY

SCHUTZ SCHUTZLOVERS
BY SEGMENTING ITS BASE, SCHUTZ IDENTIFIED
LOYAL CUSTOMER PROFILES AND FORMULATED NEW
UPSELL STRATEGIES FOR OTHER CUSTOMERS
● SCHUTZLOVERS AVERAGE 9 PURCHASES A YEAR,
QUITE ABOVE AN AVERAGE CUSTOMER PURCHASE
FREQUENCY
● STRONG CUSTOMER IDENTIFICATION WITH THE
BRAND IS CONSTANTLY REINFORCED THROUGH
POINT OF SALE ACTIVATIONS, SOCIAL MEDIA AND
RELATIONSHIP INITIATIVES
● BASED ON RESULTS SEEN WITH SCHUTZLOVERS,
MARKETING DEVISES STRATEGIES TO CAPTIVATE
AND RETAIN THE BRAND'S OTHER CUSTOMERS
● 23% OF CUSTOMERS MAKE ONLY ONE PURCHASE
PER YEAR, UNDERLINING THE IMPORTANCE OF
INNOVATIVE RELATIONSHIP INITIATIVES TO
REPLICATE THE SUCCESS ACHIEVED WITH
SCHUTZLOVERS

12
NEW CAMPAIGN FORMAT
SCHUTZ CAMPAIGN
● CREATING THE SCHUTZGIRL CONCEPT
ASSOCIATED TOP MODEL ALESSANDRA
AMBRÓSIO WITH THE BRAND'S IMAGE
THROUGHOUT 2014 BECOMING A BRAND
AMBASSADOR WITH A LIFESTYLE ALIGNED
WITH THE “LIVING FOR PLEASURE” SLOGAN
● SCHUTZ INNOVATED ONCE AGAIN BY
CHOOSING A CELEBRITY WHO IS A USER AND
FAN OF THE BRAND, WITH STRONG SOCIAL
MEDIA APPEAL - 2.6 MILLION FOLLOWERS ON
INSTAGRAM @ALESSANDRAAMBROSIO -
LOCALLY AND INTERNATIONALLY RENOWNED
● FIRST YEAR IN WHICH SCHUTZ PRESENTED A
MEDIA PLAN WITH FULL RANGE COVERAGE OF
THE MAIN FASHION VEHICLES - PRINTED AND
ONLINE CHANNELS - AND DIRECT MAILING
CATALOGUE OF THE COLLECTION TO 15
THOUSAND CUSTOMERS

SCHUTZ CAMPAIGN
BRANDING FOCUSED ON SELL-OUT
● PRODUCTS USED IN CAMPAIGNS
SELL ON AVERAGE TWICE WHAT
OTHERS PRODUCTS DO
● IN ITS FIRST MEDIA PLAN, SCHUTZ
KEEPS TALKING DIRECTLY WITH ITS
CONSUMER, WHAT CAN BE STATED
BY SALES RESULTS
● TURNOVER NUMBERS SHOW THAT
CAMPAIGN PRODUCTS POSITIVELY
AFFECT THE PERFORMANCE OF
SIMILAR OR SAME-FAMILY
PRODUCTS
● REREADING OF BEST-SELLERS
GENERATE HIGH BRAND
IDENTIFICATION AND PRESENT
GOOD SALES PERFORMANCE
13

SCHUTZ SOCIAL MEDIA
BIGGER ON INSTAGRAM THAN ANY OTHER
BRAZILIAN FASHION BRAND, NEARING
900K FOLLOWERS WITH SIGNIFICANT
INCREASE IN ENGAGEMENT
● SEAMLESS PLANNING ACROSS ALL
SOCIAL MEDIA - FACEBOOK,
INSTAGRAM, SNAPCHAT AND TWITTER
● AVERAGING 3 TO 4 POSTS A DAY, MORE
FREQUENT POSTS DRIVE BRAND
AWARENESS
● STREET STYLE SHOOTINGS WITH
LEADING SOCIAL MEDIA OPINION
MAKERS PICK UP THE BIGGEST TRENDS
AND BOOST BRANDING
● PRODUCT MIX FOR POSTS BASED ON
STUDIES OF WEEKLY TURNOVER
GENERATE ADDITIONAL TRAFFIC TO THE
STORES
● SOCIAL MEDIA TEAM AND CUSTOMER
SERVICE MONITOR COMMENTS TO
STRENGTHEN INTERACTION WITH
CONSUMERS
1000
800
600
400
200
0
out/13
nov/13
dez/13
jan/14
fev/14
mar/14
abr/14
mai/14
jun/14
jul/14
ago/14
set/14
out/14
THOUSANDS
INSTAGRAM FOLLOWERS
14

SCHUTZ SOCIAL AND SPONTANEOUS MEDIA
SCHUTZ DOMINATES ITS SEGMEN IN
RELATION TO COMPETITOR BRANDS AND
REMAINS # 1 IN:
● NUMBER OF FOLLOWERS
● ENGAGEMENT
● SPONTANEOUS MEDIA
1.000.000
800.000
600.000
400.000
200.000
-
SCHUTZ
Santa Lola
Luiza
Barcelos
Carmen
Steffens
My Shoes
INSTAGRAM
2.000.000
1.500.000
1.000.000
500.000
-
SCHUTZ
Santa Lola
Luiza
Barcelos
Carmen
Steffens
My Shoes
FACEBOOK
100
80
60
40
20
-
SCHUTZ
Santa Lola
Luiza
Barcelos
Carmen
Steffens
My Shoes
SPONTANEOUS MEDIA
1,6M
15

SCHUTZ INITIATIVES IN NY ARE BOTH
DRIVING DESIRE AMONG NY
CONSUMERS AND MAKING IMPACT IN
SOCIAL MEDIA TO STRENGTHEN
SCHUTZ BRANDING IN BRAZIL
● ALESSANDRA'S IMAGE AS SCHUTZ
GIRL BOOSTS BRANDING IN BRAZIL
AND ELSEWHERE
● SINCE IT IS A START-UP OPERATION,
FOCUS IS ON INITIATIVES TO
ATTRACT NEW CUSTOMERS
● GUERRILLA MARKETING
ACTIVATIONS TO DRIVE BRAND
OUTREACH STILL BUILDING REP IN
NEW MARKETPLACE
● SCHUTZ TRIP TAKES OPINION
MAKERS TO NY EVENTS AND THEY
PUBLICIZE THEM IN BRAZIL
● STREET STYLES MADE IN NY
GENERATE DIFFERENTIAL CONTENT
FOR THE BRAND'S PUBLICITY
SCHUTZ 655 MADISON
AREZZO&CO INVESTOR DAY 16

●
DEVELOPING
PRODUCTS THAT ADD
TREND AND
EXCLUSIVITY
THE STAR

SCHUTZ PRODUCT
SPECIAL COLLECTIONS: CAPSULE
COLLECTIONS SIGNED BY THÁSSIA
NAVES AND LALÁ RUDGE, THE TOP TWO
BLOGGERS ON BRAZILIAN MEDIA
● INCREASING SALES WITH IN-STORE
EVENT REINFORCING THE BRAND
● SCHUTZ WAS THE FIRST BRAZILIAN
FOOTWEAR BRAND TO PARTNER
BLOGGERS AND SET A NEW TREND IN
THE MARKET
● CO-BRANDING IS A WORLDWIDE
TREND FOR MAJOR RETAILERS,
REINFORCING BRANDING BY
ASSOCIATING WITH WOMEN WHO ARE
POINTS OF REFERENCE IN STYLE FOR
OUR CONSUMERS
● HIGHER VISIBILITY ON SOCIAL
NETWORKS REACHED OVER 2
MILLION USERS DRIVING ADDITIONAL
TRAFFIC TO THE BRAND

SCHUTZ PRODUCT | HANDBAGS STRATEGY
HANDBAGS STRATEGY - STRUCTURING SUPPLY CHAIN, MARKETING AND COMMUNICATION, DROVE 7X
GROWTH IN VOLUME OF SCHUTZ BRAND HANDBAGS SOLD
HANDBAGS AS PERCENTAGE OF REVENUE¹
12%
10%
8%
6%
4%
2%
NOTES: 1) HANDBAGS AS A PERCENTAGE OF BRANDS REVENUES; 2) LAST TWELVE MONTHS
ENDED ON 3Q14.
1
2
3
EXECUTING PRODUCT STRATEGY
STRUCTURING SUPPLY CHAIN
EXECUTING STRATEGY
FOR COMMUNICATION AND MARKETING
KEY RESULTS
VOLUME (IN THOUSANDS OF HANDBAGS)
KEY INITIATIVES
0%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
20 12
25
76
121
170
2009 2010 2011 2012 2013 3Q14 2
19

SCHUTZ HANDBAGS | PRODUCT DIFFERENTIATION
HANDBAGS PRODUCT MIX BASED ON
OCCASIONS OF USE, SEGMENTING BY
LABEL IN DIFFERENT PRICE RANGES AND
PRIORITIZING CHANNELS R$350 - R$490* R$790 - R$1,100*
PRODUCT STRATEGY
● PROSPECTING LUXURY GOODS CODE
● ADJUSTING PRODUCT MIX TO
OCCASION
● SEGMENTING PRODUCT MIX BY LABEL
AND PRICE RANGE (PREMIUM,
MAINSTREAM, POP&FUN)
● BUILDING MIX BY DISTRIBUTION
CHANNEL
● INCREASING PRODUCTS' QUALITY AND
PERCEIVED VALUE
O / F
MB
CHANNEL
HANDBAGS
R$490 - R$790*
✔ ✔
✔ ✔
NOTA:
O = OWNED STORES; F = FRANCHISEES; MM =MULTIBRAND.
20

SCHUTZ HANDBAGS | SUPPLY
1
2
3
FOCUS ON MINUTIOUS PRODUCT DEVELOPMENT
PRODUCT MIX OPTIMIZATION WITH
REDUCTION OF SKU NUMBERS
LOCAL DEVELOPMENT OF SOURCING BASE
21

HANDBAGS | COMMUNICATION AND
SCHUTZ MARKETING STRATEGY
COMMUNICATION AND MARKETING STRATEGY CONSISTS IN REPLICATING SUCCESS IN FOOTWEAR BASED ON
PILLARS PRODUCT - DESIRE - STORE
CELEBRITY
AND BLOGGER
ENDORSEMENT
IMPACT
STRATEGY TO
CREATE ICON
MODELS
EXCLUSIVE
STOREFRONT
WINDOWS
PRESS AND
SPONTANEOUS
MEDIA
SOCIAL MEDIA

SCHUTZ HANDBAGS | OPPORTUNITIES
OPPORTUNITY FOR SCHUTZ BRAND HANDBAGS ALLOWS CATEGORY TO GROW AT ABOVE BRAND’S AVERAGE
RATES
SHARE OF HANDBAGS AND SHOES
BOLSAS
CALÇADOS
HANDBAGS
R$
20 bln 1
● CURRENT SIZE OF FEMALE FOOTWEAR AND HANDBAG MARKET IS
R$20 BILLION, OF WHICH HANDBAGS ACCOUNT FOR 20% OR R$4.0
BILLION
● HANDBAGS ACCOUNT FOR 12% OF SCHUTZ BRAND SALES
REVENUES OR R$53 MILLION³ IN THE LAST 12 MONTHS
● HANDBAGS ACCOUNT FOR 17% OF AREZZO BRAND SALES
REVENUES, WHILE INTERNATIONAL BENCHMARKS THE CATEGORY
CAN ACCOUNT FOR UP TO 60% OF SALES
NOTAS: 1) 2013; 2) HANDBAGS AS % OF MICHAEL KORS AND COACH SALES; 3) NATIONAL SALES.
20%
50-60%
17%
12%
BRASIL BENCHMARKS
INTERNACIONAIS
AREZZO SCHUTZ
20%
80%
23
SHOES
BRAZIL INTERNATIONAL
BENCHMARKS
2

SCHUTZ HANDBAGS | MARKET IN BRAZIL
THE BRAND'S POSITIONING IN THE BRAZILIAN MARKET
NOTE: ILLUSTRATIVE INTERNAL FORECAST
OF A SIMILAR PRODUCT
24

SCHUTZ HANDBAGS | PERSONALIZATION
TO GROW MARKET SHARE IN THE CATEGORY, THE
BRAND WILL CONTINUE TO INVEST TO BOOST
PERCEPTION OF ITS PRODUCT DIFFERENTIATION
● FIRST TIME EVER FOR A BRAZILIAN BRAND,
PERSONALIZING HANDBAGS IS A STRONG TREND
WORLDWIDE, ESPECIALLY FOR INTERNATIONAL
LUXURY BRANDS
● SINCE PETS FEATURE AMONG THE MOST
POPULAR SOCIAL MEDIA 'LIKES', SCHUTZ
INNOVATED WITH A COMPREHENSIVE OUTREACH
PLAN THAT INCLUDED PERSONALIZING COLLARS
● THE ROLLOUT INITIATIVE DROVE MAJOR
CUSTOMER TRAFFIC TO STORES AND MANY
BRAND MENTIONS ON SOCIAL MEDIA
● ON THE LAUNCH EVENT DAY 944 OSCAR FREIRE
FLAGSHIP SOLD 2.5 TIMES MORE THAN ON A
REGULAR DAY, OF WHICH 24% WERE HANDBAGS

SCHUTZ HANDBAGS | NEXT STEPS
NEXT STEPS
1
2
3
MAJOR FOCUS ON BOOSTING BRAND
RECOGNITION IN CATEGORY IN ORDER TO GRASP
THE OPPORTUNITY
MORE IN-STORE DISPLAY BY ADAPTING
FURNISHINGS
CONTINUOUS DEVELOPMENT OF NEW ICON
PRODUCTS FOCUSED ON CUSTOMER NEEDS
4 QUALITY EVOLUTION IN ORDER TO INCREASE
PERCEIVED VALUE, GENERATING GREATER
DIFFERENTIATION AND MORE RECOGNITION
SEARCH VOLUME TREND
RECENT FOCUS AND LESSONS TO CONTRIBUTE TO
MORE MARKET SHARE GAINS IN CATEGORY
Source: Google Trends, Brazil only
Research:
Michael Kors Handbags
SCHUTZ Handbags

SCHUTZ KEY MESSAGES
1
DOMINANT BRAND IN ITS SEGMENT, WITH
WELL DEFINED PUBLIC, STYLE AND BRANDING
2
3 GROWTH OPPORTUNITY IN THE ONLINE CHANNEL AND
DIRECT AND INNOVATIVE COMMUNICATION WITH
CUSTOMERS THROUGH DIFFERENT CHANNELS, WITH A
HIGH IMPACT ON SELL-OUT
IN HANDBAGS DUE TO GREAT CUSTOMER AND BRAND
GRIP
4 BENCHMARKING OF ENGAGEMENT ACTIONS TO
AMPLIFY THE SUCCESS REACHED WITH MORE LOYAL
BRAND CUSTOMERS
5 BECAUSE OF THE BRAND’S HIGH LEVEL OF
LOYALTY, POSSIBILITY TO EXPAND PRODUCT
MIX

Yumi Chibusa
BU ANACAPRI Officer

With its motto "Uncomplicate it" the ANACAPRI brand consolidated its market
positioning
The focus on flat footwear is being reinforced by new
product lines alway without heels
Achieved clear positioning, retaining clients and forming a
solid portfolio of customers with the common "uncomplicated"
purpose
Business model tested and proven as efficient for expansion
Product with few constructions, generating production
flexibility and rapid replacement of stock
2008
Pop
Flat shoes
Accessible
Colorful
12 to 60 years old
O F MB EX
6 34 982 11
46% 9% 44% 1%
R$ 110.00/pair
R $ 65.6 million
5.0%
Notes:
1. Points of Sale (3Q14): Q = Owned Stores; F = National Franchises; MB = Multi-brand Shops (domestic market); EX = Exports.
2. (LTM = last 12 months – 3Q14). Gross income does not include Other Revenues (not produced by the brand).
3. Last 12 months – 3Q14
4. % total gross revenue (last 12 months – 3Q14)

Roll-out in the Franchises channel in 2013/14 prompted strong brand growth
Entry in the Multi-brand channel
2010 – 2012 2 owned Stores
2008 – 2009
2013 - 2014
Evolution of store design and beginning of
the franchise channel
Definition of the business model
Services and Convenience
40 stores and flagship
8 owned Stores
Notes:
1. Up to 3T14.
Partnerships with brands and designers
Sales in 982 multi-brand
Opening of 32 franchises LTM¹

Product, Branding and Operating Model built together a consistent value proposal
PRODUCT
Comfortable, practical and democratic
Smaller seasonality in the collection
changes
Line extension aligned with the flats
universe
BRANDING
Initiatives directed to a simple lifestyle
and high spirit
Promotion focused on on-line media
OPERATING MODEL
Practical store, flexible and replicable
Self-service
Supply and visual merchandising uncomplicated

From ballerinas to the world of flat shoes
Well defined concept: flat, comfortable
and colorful
Anacapri is democratic. Everybody
wears it: from 6 to 60-year-olds
Every women is a potential client,
despite the price having better appeal
to classes AB
9 shoe new lines were introduce,
amounting to 16
20% of 2014 summer collection sales
were generated by new constructions

Collection structure allows an excellent cost-benefit
The production scale and relevant
continuables e-mix allow a smaller
production cost
More friendly sourcing and R&D processes
result in greater agility in creation and
replacement
About 30% of sell-out sales come from
classic products group which never go on
sales and has a constant and automatic
replacement
Minor collection risks, better mark-down
and gross margin control
The same product attracts different women

The handbag category has potential to become a
relevant component in the brand revenue
Category in the development
stage
Concept follows the
uncomplicated and simple
line of the brand
Cost-benefit follows the
shoes. R$ 250 Average price
Category still with a small
sales share, with exciting
summer collection results
Notes:
1. 9M results of 2014/2013

The brand continues performing strategic partnerships
focused on generating revenue and media.
Special collections accounts for 10% of sales

Initiatives directed to a simple lifestyle and high spirit
achieve Anacapri’s target audience
Carnival 2014
Coachella 2014
Winter launching 2014
Arraiá Anacapri
World Cup Ju Amora
2015 Summer Launch Party

The first ANACAPRI campaign impersonated its target
audience and reached 4,4 million people through on-line
media

The pictures convey ANACAPRI woman soul: happy,
feeling good about life, safe and uncomplicated

Besides increase in sales and in traffic in the stores, the
public acceptance came through followers, e-mails and
likes in our social medias

Simple and thought to stimulate the purchase
Small shops = wide
possibility for growth in
cities of different sizes
Practical architecture =
self-service and less staff in
the store
Uncomplicated operation=
franchisee at the counter, flexible
VM and easy to apply
Replicable model and very
fitting to the franchise
model.
Products “destiny” =
Colecione e o “Must-have”
stimulate purchase, make
the sales easier and bring
traffic to store
Sell-in on line from pre order =
lower operational cost and better
agility closing purchases

2014 openings followed a spiral movement in line with the team development and the
cost to serve
Initial focus on Southeast expansion,
aiming to increase to the other country
regions
Belo Horizonte
Santos
Rio de Janeiro
Juíz de Fora
São Caetano

We will finish the year 10 stores above previous guidance and with the chain economics
as expected
GUIDANCE
GIVEN IN 2013 REAL 2014
45 Final number
of stores/14
Store size
(in sq m)
Sales
(in R$ mn)
55
30-40 38
ANNUALIZED SALES (IN R$ THOUSAND)
3.500
3.000
2.500
2.000
1.500
1.000
500

1,0-2,0 1,7 0
2.000
1.000
1 4 7 10 13 16 19 22 25 28 31 34 37 40
Note: Stores (3Q14).



The expansion plan includeS 40 stores openings in 2015, in a stage of advanced planning
ANACAPRI EXPANSION PLAN | 2013 - 2015
Expansion focused on
franchise model
95
55
40
23
12
10 8 6 5 4
2
15
34
50
91
3T13 2013 3T14 2014 2015
Initial
Negotiation
Intermediate
Negotiation1
62% 38%
New operators
Advanced
Negotiation2
Signed
Contract
Total
9
10
17
2
2 40
OPENINGS STAGES 20153
OPERATORS’ PROFILE AND CITY
Existent operators
70% 30%
New cities
Existents cities
Prospect
Notes: 1) Intermediate Negotiation: franchise or POS defined; 2)Advanced negotiation: franchise
and POS defined; 3) Company estimates.
Franchises Owned stores

Tested and proved business model; profitable and efficient
for expansion
Product with excellent cost-benefit attracts and retains
clients, while marketing aligned with the brand profile
strengthens positioning
New products (always flat) and categories (handbags)
diversify the store and boost sales, preserving the DNA
Uncomplicated and attractive operation to franchisEes.
“Pocket sized” investment, “at the counter” and great
potential to the stores
Open franchises with good results enhance the necessary
confidence to expansion acceleration

2009
Design / Exclusivity
Identity / Seduction
20 to 45 years
2 7 47
47% 4% 49%
Notes:
1. Points of Sales (3Q14): P = Own Stores; MB = Multibrands (domestic market); EX = Export.
2. % Gross Revenue (last twelve months– 3Q14)
3. (LTM = last twelve months- 3Q14). Gross revenue does not include other revenues (not generated by the brand)
4. % Total Gross Revenue (last twelve months– 3Q14)
3
Foundation
Brand
Profile
Target
Distribution
Channel
POS 1
%Gross
Rev.2
POS Price
Sales Volume3
% Gross
Revenue4
O MB EX
R$960,00/pair
R$ 12,9 million
1%
 Handcrafted shoes assuring high quality
 Only brazilian brand figuring on the
international luxury market
 Sofisticated store ambience with
exclusive costumization service
 Development of unique products that
predict trends
 Showroom and sales office in New York
Brand Vision

2008 - 2009 2010 - 2012
•
•
•
•
•
2013 - 2014
•
•
•
•
•
•
•
•
•
•
•
c c
4

5
•
•
•
•
•
•
•
•
•
•

•
•
•
Pre-Fall / 2013
Inverno / 2014
Verão / 2013
9

12
VS
Old Logo New Logo
Box Silk Bag

14
into in a small way, but the price points are certainly
more accessible on elaphe and water snake, which
means that a much wider cross-section of our
clients are able to invest in these pieces.”
The lower cost of elaphe also frees up designers
to become more creative, without fear of ruining
something prohibitively expensive. “I love that
designers are embracing colour using elaphe,” says
Net-a-Porter’s shoe buyer Ida Petersson, noting
that shoes made from this skin typically
retail for under £1,000. “Instead of just
seeing the usual neutral palette, there’s
a rainbow of exciting hues.”
Designer Chrissie Morris agrees that it
isn’t just the price that makes elaphe so
appealing. More, it’s the neater results achieved
because of its “homogenous scales” and a
wider range of fantastical finishes offered by
tanneries. Designer Alessandra Lanvin of Aperlai
likes it because “the prints are amazing”.
At Jimmy Choo, creative director Sandra Choi
says that snakeskins are part of the brand’s DNA,
and while she likes the exotic whip snake for
its glossy natural finish, she increasingly also uses
elaphe on a variety of shoes, such as this season’s
Clockwise from top left:
Nicholas Kirkwood elaphe
and suede loafers, £460.
Paul Andrew whip-snake
Babylon stilettos, £725.
Alexandre Birman python
and suede Brunna sandals,
£598. Aquazzura elaphe and
PVC Positano pumps, £598
Dido (£775, pictured on previous page), Mute (£650)
and Vuka (£595). “It is a very durable material to
work with and we have fun applying it in differ ent
colours and finishes: matte, glossy, neon. I especially
like the diversity of patterns you get within one skin,
which results in a unique product.”
One thing’s for sure: the pleasing textures and
finishes of these lesser -known skins, coupled
with this season’s verve for mixing snakeskins
with different materials, are resulting in
shoes that are more vivid, tactile and
innovative than ever before. ✦
u n d er t h e sk i n
Alexandre Birman, 855 Rua Oscar Freire,
São Paulo (+5511-3068 8677; www.
alexandrebirman.com) and see Harvey
Nichols and other stockists. Aquazzura, www.aquazzura.com and
see Browns, Matchesfashion.com and other stockists. Browns, 27-29
South Molton St, London W1 (020-7514 0000; www.brownsfashion.
com) and branches. Céline, 103 Mount St, London W1 (020-7491
8200; www.celine.com) and see Harrods. Christian Louboutin, 7
Mount St, London W1 (020-7491 0033; www.christianlouboutin.com)
and branches and see Harrods and other stockists. Gianvito Rossi,
108 Mount St, London W1 (020-7499 9133; www.gianvitorossi.com)
and see Harvey Nichols and Net-a-Porter. Harrods, 87-135 Brompton
Rd, London SW1 (020-7730 1234; www.harrods.com). Harvey
Nichols, 109-125 Knightsbridge, London SW1 (020-7235 5000; www.
harveynichols.com). Jimmy Choo, 32 Sloane St, London SW1 (020-
7823 1051; www.jimmychoo.com) and branches/stockists.
Matchesfashion.com, 87 Marylebone High St, London W1 (020-
7487 5400; www.matchesfashion.com) and branches. Net-a-Porter,
0800-044 5700; www.net-a-porter.com. Nicholas Kirkwood, 5
Mount St, London W1 (020-7290 1404; www.nicholaskirkwood.com)
and see Harrods, Matchesfashion.com and other stockists. Paul
Andrew, www.paulandrew.com and see Harvey Nichols,
Matchesfashion.com and other stockists.
“ I love that designers
are embracing
colour using elaphe.
Instead of just
seeing the usual
neutral palette,
there’s a rainbow
of exciting hues”
with patent finishes on his Diane mules
(£680, pictured on previous page),
while edgy styles are also available from
Céline and Nicholas Kirkwood.
This experimentation is cer tainly helping
emerging designers get noticed. Alexandre
Birman, whose family operates Arezzo & Co, the
largest shoe company in Latin America, launched
his eponymous collection in 2008, working closely
with a tannery located in the Brazilian shoemaking
region of Vale do Rio dos Sinos. He has become
known for offering outstanding exotics and for
mixing them with satin, kid leather or suede. His
Brunna sandals (£598 , pictured above centre), for
example, combine a python heel with suede uppers
and a fringed, feather-shaped flourish.
“It’s a fairly new idea to juxtapose a textur ed
snakeskin with a material such as suede, satin or
patent,” explains British designer Paul Andrew, who
has combined whip snake with patent leather on his
elegant Babylon (£725, pictured top right), Bodhi
(£625) and Persica designs (£575). “Unlike other exotic
skins, whip snake absorbs deep, saturated colour during
the dyeing process, while retaining the natural black
markings that surround each scale.”
The New York-based designer’s other styles, such as
Zenadia (£795), Aristata (£635) and Kimura (£795), are
crafted from python that is handpainted, a special
process attempted by only a handful of Italian exotics
tanneries. “The skins are bleached until they are almost
white. Then they are laid out on long tables wher e
artisans hand-paint ever y scale – a process that can take
up to five weeks and results in shoes where the
markings are individual to each pair.”
In countries where sales of python and some other
reptile products are prohibited, designers are increasingly
using alternatives such as elaphe, karung and ayers (the
latter two are often described as water snake). Crucially,
these skins are not included in the Convention on
International Trade in Endangered Species (CITES), a
treaty put into force in 1975 to protect wildlife from
over-exploitation. CITES regulates the impor t and export
of crocodile, alligator and python through a licensing
system, whereby they require a passport of sorts.
Some parts of the world are even more prohibitive,
banning the use of some exotics altogether. In
California, for example, where the sale of products
manufactured from python has been
outlawed since 1970, designers such as Nicholas
Kirkwood and Aquazzura’s Colombian-born president
and creative director Edgardo Osorio substitute it
with ayers, a “puff-faced” or “masked” water snake
that has similar natural markings. Both designers also
work in elaphe, as seen this season in Kirkwood’s
yellow and turquoise pointed elaphe flats (£460,
pictured top left) and Aquazzura’s multicoloured elaphe
and PVC Positano pumps (£598, pictured above).
They are not alone in crafting shoes from this
lesser-known skin. To wit: luxury shoe brands from
Jimmy Choo and Dolce & Gabbana to Tabitha Simmons,
Saint Laurent and many more. Its widespread usage
has caught the eye of Natalie Kingham, buying director
at Matchesfashion.com. “Many more footwear
designers are using elaphe in their collections because
it looks luxurious, it is available dyed in vibrant colours
and it is hardwearing,” she says. “We have seen it
across collections from Balenciaga to Chloé. Obviously
fashion houses still offer python, which we do buy
26 howtospendit.com
get t y images/ phot oal t o. r ichar d val encia
FE54_ExoticSkinShoes.PRESS.indd 4 07/05/2014 15:43
Products
•
•

16
Bergdorf / Montaigne / Market Printemps

People
Fabiane Meireles
People & Management Officer

3
Focus on People
Introduction
Our vision is to have people prepared
for the present and the future.
Arezzo&Co levers
CULTURE
PEOPLE
DEVELOPMENT

PRODUCT IS OUR
DIFFERENTIAL
RESULT-ORIENTED
WE BREATHE
FASHION
BOLD AND
ENTREPRENEURIAL
VISION
WE HAVE THE
DINAMICS AND
RETAIL AGILITY
BRAND PRIDE CHALLENGING
BUSINESS
OWNERSHIP
ENVIRONMENT
Culture
Pillars of Arezzo&Co Culture
CULTURE
PEOPLE
DEVELOPMENT

CULTURE
That which cannot be transparent should not be done.
Be always true so that at some point you are not fake with
your business. Always be authentic.
Negotiate your targets and duties clearly and consider that
adhering to them is a precondition for continuity.
Do not find problems only. Blaming others is never a solution.
Take risks and propose solutions. If you do not agree, take
action!
Formalize everything, even if informally.
Always be flexible. Be continuously willing and prepared
for changes.
Targets achieved are the basis for your next targets.
United we stand! Divergences are constructive, conflicts
are destructive.
Humbleness with positioning: the raw material for our
success.
Enjoy it. Like it. Get involved. And always be happy!
5
Culture Principles
Arezzo&Co’s Principles
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
PEOPLE
DEVELOPMENT

6
People Development
Main initiatives
We have structured initiatives to develop people in fundamental aspects for
our business:
 Focus on developing leaders
 Constant training in our specialties
LOOK INTO
THE
PRESENT
 Development of new leadership
 Development of new skills and mentality
LOOK INTO
THE
FUTURE
CULTURE
PEOPLE
DEVELOPMENT

7
People Development
Main initiatives
our business:
o Results Management
o Competence and Leadership tools
o Retail Leadership
LOOK INTO
THE
PRESENT
 Development of new skills and mentoring
LOOK INTO
THE
FUTURE

8
People Development
Leadership training
RESULT
MANAGEMENT
 Strategic guideline
meetings
• Lectures and Chatting on the
dissemination of the results-oriented
culture
 Meritocracy

9
People Development
Leadership training
COMPETENCES
AND LEADERSHIP
TOOLS
 Structured Program
3 modules:
 Awareness about the
Leadership role
 Tools for People
Management
 Leadership in practice

10
People Development
Leader Training
LEADERSHIP
IN RETAIL
 Planning and
implementation of new
sales strategies
 Proximity to the
store operation
 Direct contact with
our client

11
People Development
Main initiatives
our business:
o Retail
o Footwear techniques
o Comercial Conferences
o AIR – Our knowledge platform
LOOK INTO
THE
PRESENT
LOOK INTO
THE
FUTURE

12
People Development
Training in our specialties
RETAIL
 Stores manager training
 Team trainings:
o Store operation
o Sales technician
o Product technician
o Inventories
o Fashion and Trend
o Training on the job:
salesperson, cashier and inventory-keepers
 4,000 trained people
(franchises, Owned and MB Stores)
 35,000 hours of training

13
People Development
TECHNICAL TRAINING IN
FOOTWEAR
 Structured Program
for the training of shoemakers:
o Technical improvement
o Training and quality control
o Partnership with SENAI
o Scholarships for
training and specialization
 550 employees trained
 Over 4.000 hours of training

14
People Development
SALES CONVENTION
More Fashion Event For All
 Training:
o Fashion content
o Trends and products for the season
o Kits and tools for the team trainings
 Motivational initiatives
 600 participants, between
managers and franchisees

15
People Development
AIR
Learning Platform
 On-line training for retailers
 E-learning with situations and
actual retail routine simulations
 National range
 Collaborative environment with
blogs, forums, communities and
best practices
 Over 4,000 active users

16
People Development
Main initiatives
our business:
LOOK INTO
THE
PRESENT
 Trainees programme
 Internal Talents programme
LOOK INTO
THE
FUTURE

People Development
Training of New Leadership
TRAINEE PROGRAM
 External Selection Process
TALENT PROGRAMME
 Internal Selection Process
o Behavioral and technical training in
key areas and processes in the Co.
o 24 graduates in 2014
o 45% already took leadership positions
17
2 CLASSES
CONCLUDED
2011/2012
11 PROFESSIONALS
100% IN LEADERSHIP POSITIONS
80% RETENTION
2 CLASSES IN
PROGRESS
2013/2014
5 TRAINEES – GRADUATION FEB/15
8 TRAINEES – GRADUATION FEB/16

18
People Development
Main initiatives
our business:
LOOK INTO
THE
PRESENT
 2154 Project Training
LOOK INTO
THE
FUTURE

19
People Development
New Skills and Mindset
PROJECT 2154
 Dedicated team to the project :
o 42 employees from all areas
o On average 7.5 years in the Co.
o Training in Project Management
and new business processes
o Over 1,700 hours of training
 Training for the Co.:
o Over 89 courses for about 700
participants

Operational Efficiency
Cassiano Lemos
Planning Officer
Thiago Borges
CFO and DRI
Kurt Richter
Officer of IT and Logistics
Alexandre Birman
CEO

Investment History
The company has a history of investments in systems, process, people and infrastructure in order to ensure
future growth and its sustainability
... 2011 2012 2013 2014 ...
Systems
Processes
People
Infra-structure
2154 Project: implementation of the new ERP
Unification systems franchises network
Beginning PDTI
IT retail: obtaining data and management of the sell-out, ZZNET and
Schutz Roll-out process
Portal of the factories (integration
Continuable items
Standard store operation
Beginning trainee program
National convention sale
DC capacity expansion
Architectural design
Schutz
request manufacturers)
2154 Project: implementation of the new ERP
IT retail: obtaining data and management of the sell-out, ZZNET and retail
indicators reports
Automatic reset tool (B2B)
GTM project: new supply model
Structuring sell-out driven
collection (prev process)
Quality management
system
Partner plan
Strengthening retail culture: Living Retail, Product Training,
Operation of Shops and Sales
People Cycle
Reinforcing meritocracy: 360°
assessment, deployment of targets
New headquarters South
Factory modernization
Deploying E-Showroom
Design
planning/merchandising
New platform
e-commerce
Continuous reinforcement of the principles
and development of leaders
Architectural design
Arezzo and Anacapri
 New platform
e-commerce
Release of AIR
Tool
New factory AB
CRM
VPL ²: Internal benchmarking and monitoring of result
matrix
National store managers convention
(More Fashion)
Corporate multi-brand
Training of designers and
the Shoemaker School
Result-oriented culture: PDCA training
method
Investments in logistics: Ex.: fitness DC (picking continuable products)
retail indicators reports
GTM project: new supply model
New headquarters VPL ²: Internal benchmarking and monitoring of
result matrix
21

65 DIFFERENT
SYSTEMS
Beginning of the
project unified retail
systems Arezzo & CO
Project
Consolidation
Owned Stores
and pilot with
franchised stores
System Roll-out
for Network
Project
Conclusion
Investment History
Evolution of Technology Applied to Retail
The Evolution of Technology Applied to Retail resulted in the conversion of 65 Systems of Network
Stores for a Single Platform
YEAR 2009 2010 2011 2012
% Integrated Stores 5% 46% 87% 95%
Main actions on IT
area
Process Review of stores
and customizations of
Integrated System for
franchise network
Improvement of reports of Management Stores and
Development of New Technologies for Supply based
on sell out
Consolidation of
information capture
tools from the point of
sale
New solutions and
process
Consolidation B2B for open size run, closed size run,
selling products under Production
Beginning of the Project in continuable products ,
replacement actions and sale of products based on sell
out. Effective use of sell out information, R&D,
collection planning and Point of Sale management.
22

23
Investment History
Unification of Network stores
In 2012, network stores unification built the foundations for the next projects of the company
New site at Campo Bom (Vale dos Sinos – RS)
 Team closer, allowing greater interaction between the
members
 Reduction of 7 to 2 addresses, generating savings
 Increased capacity and speed of product development
and sample manufacturing
 The teams’ proximity solidified the basis for the following
projects to make it possible to identify opportunities for
productivity gains

GTM Project Deployment
Initiatives and Objectives
The changes implemented with the GTM project allow a better feedback from the sell-out, higher
frequency of best sellers in stores and greater assertiveness in collections
1
2
3
Collections increasingly assertive
 Better reading of the performance in the planning of the
collections
 Greater agility to incorporate information from the sell-out in
collections
Increased availability of best sellers and
continuable products
 Continuable items - Can't be missed. Automatic replenishment
with sell-out reading
 Fast Fashion – increased availability of best-sellers on the
network. Collections calendar provides reading moments and
reaction of each collection
Agility, efficiency and focus on the sell-out
 E-showroom provides greater agility and efficiency in the
process of purchase, allowing even greater focus on the sell-out.
In addition, it enables more of smaller collections
Collection Planning("PREV")
 New timetable and new method for constructing
collections ("PREV")
 Development of the teams and Planning and
Merchandising processes
New supply models
 Expansion of the continuable product mix
 Design of "Fast Fashion" supply for reading and reacting
upon products with greater fashion content
New service model
 E-showroom
 Reduction of on-the-spot events to launch
collection
24
Initiatives Goals

New supply models
Supply aligned with life cycle
Planning of products’ life-cycle and supplies according to the cycle of fashion presented
React quickly to replenish the
products that sell fast. Increase of
% of sales at full price
Ensure that products with
constant demand do not lack in
stores, increasing sales
Life cycle Supply model
Continuable
items
Perennial items
Showroom
Fashion
Complement
Fast fashion
Arezzo Basics
Anacapri Basic
Arezzo Classic
Schutz Essentials
Anacapri Classics
1
2
3
4
5
Collection
25

Project VPL²
Goals
The main objective of the VPL² project was to deploy the PDCA method, in alignment of the goals at all
levels of the organization
Main goals
 Deploying PDCA method
 Alignment and breakdown of goals at all levels
 Identification of gaps through internal
benchmarking
 Discipline in capturing results
 Training of employees in management of results
The implementation of these goals fosters a result-oriented culture, which involves people and
aligns organizational needs with creativity that marks the history of Arezzo & Co.
26

Management Method and System
PDCA
The PDCA Method for troubleshooting focuses the efforts of the team and assists in the prioritization
of resources, being an effective way to achieve goals
PLAN STRATEGIES
Management method (PDCA) Management system
BREAKDOWN
OF GOALS
PROJECTS AND
PROCESSES
RESULTS
TACTICAL
OPERATIONAL
ROUTINE
INCREASE
REVENUE
OPTIMIZE
EXPENSES
MANAGE
PROJECTS
OPTIMIZE
PROCESSES
STRATEGIC
MANAGE THE ROUTINE
A P
C D
Identificação do problema
2
Análise de Fenômeno
3
1
4
Elaboração dos
Planos de Ação
5
Execução dos
Padronização 8
6 Planos de Ação
7
Tratamento dos
desvios
Verificação dos
Resultados
Process
Analysis
Project focus
27

C A D
P
Effort to achieve the goals of working hours
SITUATION
1
SITUATION
2
Attempt
and error
Ideal Situation
Doing the right thing
Planning
Purpose of the application of the method
The method is the path to improve results and the dedication to the planning phase is essential to
achieve the proposed results efficiently
28

Alignment and deployment of goals
Involvement of all levels of the company
1) Alinhamento de iniciativas
De: Projetos e planos divergentes
From the alignment of strategic guidelines, the goal of Arezzo & Co is built in a participative manner
and assigns responsibilities to all levels, so that everybody understands their contribution to the
result
Breakdown of targets for all
Alignment of initiatives organizational levels
1) Alinhamento de iniciativas
De: Projetos e planos divergentes
Para: Projetos e planos alinhados
Para: Projetos e planos alinhados
Projetos / Planos alinhados com
Desdobramento de Metas
2) Desdobramento de metas para
todos os níveis organizacionais
From: Divergent projects and initiatives
To: Aligned projects and initiatives
Projetos / Planos alinhados com
Desdobramento de Metas
2) Desdobramento de metas para
todos os níveis organizacionais
Projects/initiatives aligned with breakdown of goals.
29

Discipline in controlling results
Cycles of meetings and analysis of deviations
The method implements discipline in cycles of meetings to control and capture economic and
operational results, involving all levels of the company
EXECUTIVE BOARD MEETING (N1)
MEETING OF RESULT AREAS (N2)
Weekly Monthly Monthly
PARTICIPANTS (REVENUE AND EXPENSES)
- CEO
- Arezzo & Co Executive Board;
PARTICIPANTS (REVENUE AND EXPENSES)
- Arezzo & Co Executive Board;
- Package, U.O. and Channel Managers
TACTICAL RESULT MEETING (N3)
Monthly
PARTICIPANTS (REVENUE)
- Package and channel managers;
- Arezzo & Co Coordinators
OPERATING ROUTINE (N4)
PARTICIPANTS (REVENUE)
- Arezzo & Co Coordinators
- Arezzo & Co Consultants
FLOW OF MONTHLY MONITORING
PARTICIPANTS (EXPENSES)
-Managers of U.O/Package;
-CFO/Controller;
CEO
Dir. A Dir. B
Man. A Man. B
Coord. A
Cons. A
Cons. B
Cons. C
Dir. C
Man. C
Coord. B Coord. C
Coord. A
Monitoring of results
at all levels of the
organization.
Consultant A Consultant B Consultant C
Strengthening the result-oriented management culture, through discipline in control.
30

IT strategic plan is closely aligned with the Company's long-term vision
DIAGNOSIS AND PLAN
2012 2013-2014 2015
SELECTION OF
SUPPLIERS
ERP PROOF OF
CONCEPT
IMPLEMENTATION
DELIVERY OF
RESULTS
IT: Project 2154
Strategic Plan
The Information Technology Master Plan contains the strategy and the key guidelines to
make the Company's processes even more effective

Adopting best practices and
technologies to increase productivity
Developing appropriate solutions for the
core business
IT Strategic Plan
Arezzo&Co
31

The IT strategic plan is focused on making the Company's processes more effective, in order to
improve results
EFFICIENT
SELL IN
SELL OUT
MANAGEMENT
 Prompt capturing of orders, which are then sent for production and logistics planning
 Commercial tools supporting replacement and promotion decisions and better guidance to the stores
 Execution of "Go To Market" strategies for all brands
 Information analysis dynamics enabling increased product turnover
 Optimizing allocation of products and ensuring stores' supply
 Systems and processes for monobrand stores, supporting a better management of stores and inventories
 Customer relationship management
GTM
BUSINESS
INTELLIGENCE
TURNOVER
MANAGEMENT
INCREASED
RESULTS
IT: Project 2154
Strategic Plan
32

IT: Project 2154
Project History and Status
Implementation of an ERP system at Arezzo&Co is the result of project management, risk management
and change management, combined with strong discipline of the dedicated team
ERP Proof
of Concept
Dec/11
ERPs
Aug/12
Dec/12
Feb/13
Selection of
Dedicated
Team
May/13
Jun/13
Jul/13
Process
Mapping
Aug/13
Nov/13
Dec/13
Jan/14
Feb/14
Mar/14
Apr/14
May/14
Jul/14
Jun/14
Users Training
Aug/14
Sep/14
Nov/14
We are
here
Dec/14
Jan/15
Construction
of PDTI
Acquisition
of SAP
RFP
Implementation
Consultancies
Kick off
Initial training
Conclusion
Business Blue
Print
Completion of
Development,
Configuration, Data
Migration, Integration
Stages End of Integrated Tests
Cycle I Cycle II
Cycle III
Technical and Business
Cut over
GO LIVE
Scheduled
for Jan 2015
INITIAL
PREPARATION
BBP EXECUTION FINAL PREPARATION
PLANNING
The second fortnight of
December and the first week
of January are usually
periods of vacation shutdown,
which reduces the risk of
impact on operations
The project was planned in our PDTI (IT Director Plan) and started in 2012 conducting a
concept proof with the main market ERP’s, the SAP ERP acquisition in December 2012, and
project kick off in June 2013.
The Company adopted the implementation methodology proposed by SAP (named ASAP)
33

IT: Project 2154
Operational efficiency
The Company has been adopting a very diligent approach to implementing the new ERP system, with a
dedicated staff having an average of 10 years' experience at Arezzo&Co
1 DIRETOR
3 GERENTES
1 TRAINEE G&G
4 ANALISTAS
DE NEGÓCIO
16
KEYUSERS 2 CONSULTORES
1 GP FH
15
CONSULTORES
7 DIRETORES
1 GERENTE G&G
1 GERENTE TI
26
BPOs
1 DIRETOR EY
2 DIRETORES FH
1 GERENTE EY
BPOs
FULL-TIME PART-TIME
 Dedicated team with broad knowledge of the business
 Strict selection of partners
 ASAP methodology implementation with focus on quality
assurance
 Low level of customization
 Risk and change management to mitigate impacts
Room dedicated to the project
Strategic partners
34

The project initiatives will support growth and seek additional benefits
Improved back-office processes such as enhanced controls, determination of results
and integration of budgeting process, thus increasing efficiency
35
Information Technology
Operational efficiency
Integrated information for quicker decision making regarding the right product at the
right time

 Increased product availability, reducing sell-in and sell-out disruption and reducing mark
down
 Production cycle management, reducing lead time with more frequent collections
Trends and
style
Design
Seeking gains  in margins with greater markup

Technical
drawing
Engineering Samples Showroom
Logistics and
distribution Store
Strategic objective:
TECHNOLOGY
focused on building
results
 Seeking increased value throughout the production chain, from product creation to serving the final consumer

36
Key Messages
The company has a history of investments in operating efficiency
initiatives aligned with its long-term vision 1
Increasing focus on sell-out across the value chain optimization,
internal processes and the sourcing model strengthening: right
product, at the right price, at the right time 2
Culture oriented for results, committed people and aligning
organizational needs with the creativity that marks the history of
Arezzo&Co 3
Strong use of information of sell-out of nearly 500 stores allows to
constantly identify opportunities for improvement and increase the
productivity of the company 4
Permanent goal of greater efficiency throughout the supply chain
by providing responsive information, reducing the lead time and
greater assertiveness of the collections 5

CRM and Webcommerce
David Nery Python
Commercial Officer

CRM: Valorizza Project
A new concept of relationship
38

39
Valorizza came out of the strategic direction of greater focus on sell-out with the improvement of the
service to stores, and consequently, to end consumers
Customer
 Best practices scattered
 Low discipline/consistency
of relationship actions
 Focus on revenue OR cost
 Low coordination of
points/stores of contact
with customers
 Relationship with sellers
and high turnover
Valorizza Project
Focus on sell-out
 Sales Convention
 7 steps of sale
 Itinerant trainings
 Retail indicators
 Sales techniques
 Management training
 Coaching report
 Team development
binder
 Coaching and training
feedback
 G&G Consulting
 Monitoring/shadow
 Management of
turnover
 Internal focus groups
 Stock and cashier training
 Operational manuals
 Processes Training
 Integration of new
franchisees
 Consulting in the shop
 Inventories/procedure
 Standardization of
indicators
People
Operation
Product
Sales

Pilot Project
Main goals and timeline
Valorizza project, in the pilot phase, is a method for targeted and profitable activation of customers
Pilot Network Roll-out
2014 2015/2016
Pilot in selected places:
37 Arezzo and 13 Schutz stores
14 stores and 36 franchises
Base of 1 million customers in the pilot
Goals Project Timeline
Planning
Preparation
Pilot operation
Planning
Preparation
Roll-out
40
 Offer best practices in customer
activation:
– Science with discipline
– Targeted/relevant
– Based on facts and data
– Consistent with branding
 Measuring ROI of direct marketing
actions
 Create culture of improvement
cycle/continuous update of actions
 Improve knowledge about the end
consumer
Proof of impact

Initial Analyses
Improvement and data analyses
Pilot is monitoring the impact of the method and training the team for roll-out to network
 Part of the customers are inactive and haven't
purchased in over a year (48% Arezzo, 39%
Schutz)
RESCUE
FREQUENCY
CROSS-SELL
RETAIN
CUSTOMERS
 Many active customers only make one purchase
in the year (33% Arezzo, 45 Schutz)
 Many active customers only purchase within
input price range (Arezzo 49%, 26% Schutz)
 Former customers' annual expenditure is 200%+
higher than new customers'
41
Customer
segmentation
Rule of
relationship
Data on over 3 million customers were
assessed... ... and initial analysis already showed great potential
Roll-out
for network
Today
Improvement and
analysis of
data
Operational weekly PDCA
Monthly adjustment rule
Training
Operating Store
 If the new customers' second purchase does not
happen in 3 months it is highly likely that they
won't come back
Data valid before and after the
improvement of the database
43%
18%
24%
61%
33%
76%
BAenftoerse DAeftepro is
@
Hand over
current model
to UNs

1st stage of evolution
 Registration of store level client: fill form or direct-controlled
cashier indicator
 Sales Association dependent of operation of cashier
controlled by indicator
 Segmentation and ruler of relationship based on
quantitative criteria
 Periodic hygiene information
2nd stage of evolution
Where
we are
 Registration of client integrated with its social
networking profile
 Association of sales encouraged by the customer
(for example: app, preference in program)
 Behavior segmentation and possibility of analysis of
connections and social preferences
 Focus on customer loyalty and profitability of customers
 Search for institutionalization of the relationship with
customers Arezzo$Co
 Even greater focus on the sell-out
 Meeting with the OMNI project
 Search for customization of the relationship with the
client
 In line with global benchmarks
Where do we get in
the future
Next Steps
Evolution
42

The entrance of Schutz in ecommerce motivated by customer profile along with the foundations of the segment
43
Webcommerce
Schutz adherence
Internet penetration is still very low in Brazil
+
Ranking segment (2011 – 2013)
2011
1º Eletrodomésticos 15%
2º Informática 12%
3º Eletrônicos 8%
4º Saúde e beleza 7%
5º Moda e acessórios 7%
2012
4º Informática 9%
5º Casa e decoração 8%
High adhesion of the product to the relevant global players evidenced by ecommerce operating shoes
Source: Nielsen, EBIT
THREAD SCHUTZ CUSTOMER
Ecommerce growth in Brazil, R$ billion
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2,8 3,9 5,3 7,3
9,8
14,8
18,7
22,5
28,8
34,6
46%
78%
70% 66% 60% 59% 57%
2013
41%
BRA USA Europe ARG COL CNI Asia
4º Livros e revistas 9%
5º Informática 7%

Webcommerce
Schutz adherence
The entrance of Schutz in ecommerce motivated by customer profile along with the foundations of the segment
THREAD
44
On-line customer profile Strength of Schutz in social media
Benchmarks in mature markets
15%
Source: EBIT, Morgan Stanley Research, Clipping, Ibope.
-% revenue is on-line
 > 1.2 MM of likes per month
on each network and
30,000 comments
 60-80 k new followers per
month
+ 900
k
+1,4
mm
19% 5% 18%
SCHUTZ CUSTOMER
50,1% Feminino Masculino
25-34
30%
>35
18-24
20%
A/B 54% C
+

Webcommerce
Schutz History
In the last 3 years of operation, the pillars of on-line single brand operation were structured.
Webcommerce channel revenue, R$ million
2011 2012 2013 2014e
Source: Ibope Ecommerce, Clipping
> 40
24
10
1
45

Webcommerce
Schutz History
In these 3 years of operation the pillars of on-line single brand operation were structured…
2014
> 40
2013
24
2012
10
2011
 R$ 1 million in 3 months of
 Beginning in Sep/2011 with
soft opening
 Medium size store in
physical network
 Proof of the thesis
1
1
operation
Source: Ibope Ecommerce, Clipping
 Dedicated operational
management within Schutz
 Internal focus on quality of
on-line customer service
 Prioritization of structuring
of customer service and
logistics
 Still low investment in on-line
marketing
 Great focus with "freshness"
of products available
 Reaches R$24 million
revenue
 Structuring of team and
investment in on-line
marketing
 Leading brand in fashion
award on Instagram
 Seal RA1000 in customer
service
 Growth and profitability
inspired structuring of the
Omni project
 Over R$40 million estimated
revenue
 Investment in new platform
to improve shopping
experience
 Unified management of on-line
strategy
 Greater understanding of
our customer/BI/analytics
 Go-live of the new platform
hybris Sep/14
 Elected the seventh best e-commerce
in Brazil
 Start benchmarking with the
best in the industry
46

Webcommerce
Current scenario
... and today we have a unique team, dedicated B2C fulfillment operation and world-class platform
People Technology Logistics
47

Webcommerce
Findings – New platform
Adopted the world's leading platform to achieve desired buying experience
"Magic Quadrant" in Gartner
Source: Gartner (September 2014)
Responsive site
48

We've gathered important information about the profile of our new on-line customers.
41%
59%
YES NO
Do you prefer to buy at physical
or on-line stores?
13%
87%
49
... and on-line presence influences the customers of
physical stores to buy even more
We expanded the trademark stakeholders consistently:
customers of on-line and physical stores have the same profile...
Was your purchase influenced by
the on-line presence of Schutz?
 Two-thirds (64%) of on-line customers never bought in a
physical Schutz store
 Low overlap, representing increasing share of brand
 On-line customer has profile similar to traditional
customer, stating consistent branding/brand work
n = 7600
The web is a tool to generate desire in physical stores
("webrooming")
Average Ticket (R$/customer)
Physical store
Used to increase web traffic in physical stores, where customers
have a higher ticket
Webcommerce
Learning - Consumer profile
ON-LINE PHYSICAL
319
392
On-line
+23%
Produto Região Idade
Loja Online Lojas físicas
3%
15%
24%
22%
15-25 21-25 26-30 31-35
3%
10% 10%
16%
63%
N NE CO S SE
32%
14% 13% 13%
6%
CA1 CAT3 33%
13% 12% 12%
5%
3%
16%
11%
16%
54%
3%
14%
20%
18%
CAT1 CAT2 CAT3 CAT4 CAT5

Webcommerce
Next steps
Next steps reinforce the importance of on-line/omni for the strategy of Arezzo & Co
Webcommerce
stand-alone:
solid margin
channels for
brands
Marketing:
emergence of
additional
marketing
possibilities
Maximum
Impact
 Growth and expressive potential
 Single brand business model
 On-line team specialist/expert, but sensitive to branding
 Consistency of branding, customer and product
 Performance Marketing
 Customer Analytics and future merger with CRM
 App as 1-on-1 marketing platform and new
shopping experience
 Strengthening of possibilities of video marketing
of engagement
Integration:
The greatest
potential with
integration
between
channels
50

Webcommerce
Omnicommerce
"Webrooming" seen in Schutz is trend reinforced by international studies...
80%
60%
40%
20%
Source: Deloitte digital, "The New Digital Divide," 2014
% of customers in the segment of shoes, clothing
and accessories
Omnichannel Retail: % American sales influenced by
digital experience
50%
Browsers/Researchers Shoppers/Buyers
37%
54%
49%
32%
42%
34%
28%
57%
26%
North America Europe Latin America Asia Africa
50%
36%
14%
100%
0%
2009
Mar/Set/Set/Purchase influenced
by the on-line
presence of Schutz?
2017
Source: Nielsen Global Survey of E-commerce, Q1 2014
2009
Mar/12
Sep/13
Sep/14
2021
2017
41%
59%
YES NO
51

Webcommerce
Omnicommerce
Because our customers are increasingly OMNI
Image adapted from http://jameskaskade.com/wp-content/uploads/2012/01/Screen-shot-2012-01-10-at-8.47.12-PM.png
52

We see an initial road map of channel integration aligned with each brand DNA
 Bold brand, greater content set
 digitally-savvy customers who easily adopt
innovations
 Important to keep in touch outside of the store,
capturing the multi-screener customers' share of
attention
 Universal brand, with appeal to any woman's
profile
 Over 360 stores in the country
 Consolidated network of franchisees with
extensive knowledge of their local public
SCHUTZ
AREZZO
Key elements
SCHUTZ NOW
 Synergy with franchise
network
 Model under definition
 Wide optionality
Webcommerce
Prioritization of the omnicommerce vision for our brands
 Uncomplicated
 Booming, still with a strong brand presence in
the Southeast
 Public adheres to the on-line world, watching
news
ANACAPRI
 New brand showcase
 Simple navigation, fun
and uncomplicated
 Replication of the Schutz
"Webrooming"
53

Schutz Now will strengthen webrooming, customer engagement and bond with the store
Webroom with Schutz
experience
Direct channel
Calendar of events
Wish list and
personal closet
Unique experience of
purchase
Webcommerce
Omnicommerce
54

Valorizza and Webcommerce
Key messages
Valorizza project brings science and discipline to direct marketing
actions, with sales growth potential 1
Webcommerce Schutz was consolidated as channel relevant to
revenue, margin and branding 2
New platform allows us to offer superior shopping experience and
seek omnichannel journey 3
Planning the roll-out of the online shop of Anacapri and then
4 Arezzo
Valorizza and OMNI reinforce culture of results and implementation
with the customer's vision, focus on sell out and sensitive to
branding 5
55

Development of New Businesses
Alexandre Birman
CEO

Organic Growth
Multichannel and multi-brand strategy
Organic growth boosted by multi-brand and multi-channel strategy, in shoes and handbags
Development of intelligence on triad product-price-branding
Current focus on completing the mix offered
Franchises
 New store design
 Focus on the SSS (VPL²)
 GTM
Footwear New supply model with greater assertiveness of the collections
Handbags
Accessories
Multi-brand
Owned
Stores
Webcommerce
Export
 Handbags Cross-sells
 Corporate commercial
team integration
 Activation MKT POS
 Launch of channel with
great potential
 Focus on key accounts
 Handbag category
 GTM - continuable items
 Increase share of wallet
 Attracting new customers
 Handbags Cross-sells
 Growth with focus on the
SSS (VPL²)
 Finish transfers
 New platform enables
continuous expansion
 Pilot project USA
 National Roll-out
 New lines of flats
 Expansion of Handbags
 Recent recognition of the
brand in the channel
 Increase penetration
 Finish pilot stores transfers
keeping the maximum of 5
flagships
 New showcase for brand
 Launch of the channel in
the short term
 Sold at selected points
and aligned with the
branding
 Present in the main world
retailers
 New plant will meet the
demands of international
customers
57

Next steps in the United States involve team structuring, alignment of the production chain and new
tests
Structuring
of the team
 Transfer of top
executive with
proven in house
experience
 Consolidation of the
Schutz culture
 Greater focus on
operation
Second wave of
tests
Alignment of
production chain
 R&D in the United
States and production
in Brazil, fast and
competitive even for
small volumes
 In-store product
reflecting the trend at
the same time its
launched
 Improvement of
product mix, between
impulse and
replacement
demands
 Accelerate learning,
given the new
dedicated team
 Improvement in
products and price
points
 Economic viability
testing of non-flagship
store
United States Operation
Next steps
Evolution
Timeline
58

United States Operation
Key messages
1 The North American market is relevant and pro-business
The "white space" in the United States exists for structural
reasons of the footwear industry worldwide 2
The business model of Arezzo&Co can offer competitive
differentiators for the brand, given the speed and fashion
content to capture the "white space" 3
Team building, with the transfer of a key executive, will
bring more focus to the operation in the USA 4
The alignment of supply chain towards the North American
market is crucial for a mix of attractive products 5
6 New tests should allow for the definition of the next steps
59

New Business
Key competences
Identify and prioritize new paths should ensure the sustainability of long-term growth
1 2 3 4 5
Management
Customer focus: we seek to anticipate
Brazilian women's consumer desires
Multichannel
Sourcing and
Logistics
Communication
and Marketing
EXPERIENCED
ADMINISTRATION
AND WITH
INCENTIVES BASED
ON RESULTS
NATIONAL
DISTRIBUTION
STRATEGY
SUPPLY CHAIN
AGILE AND
EFFICIENT
SOLID
COMMUNICATION
AND MARKETING
PROGRAM
SKILLS
TO INNOVATE
R&D
 New brands, threads, categories, geographies and
channels can offer additional growth opportunities
 The company's key competences in R&D, marketing,
supply chain, national distribution and a pipeline of talent
makes it possible to explore each optionality at different
levels of expertise, exploiting the possibilities that may
offer better return rates
 Recent examples of applicability of key competences in
the company were:
- New brands: Anacapri and Alexandre Birman
- New categories: Schutz handbags
- New Geography: opportunity test in the United
States
- New channels: Online at Schutz brand and Franchise
channels at Anacapri

Shared corporate strucuture, with independent business units for every brand, enable to insert new
brands, adapting quickly to the business model and growing with operating leverage
New brand
R&D
Marketing
Retail
Shopping
Financial
People and management
Sourcing and Planning
IT and Logistics
Corporate Commercial
Arezzo
R&D
Marketing
Retail
Shopping
Schutz
R&D
Marketing
Retail
Shopping
Anacapri
R&D
Marketing
Retail
Shopping
Alexandre
Birman
R&D
Marketing
Retail
Shopping
New Business
Structured company
61

New Business
Basis for identifying new opportunities growth
The company's history of development of new brands, coupled with the current moment for talent
pipeline, allows to assess opportunities while maintaining the focus on operation
The company's expertise and timing
 Expertise in designing new greenfield brands, from
project design until the roll-out of the stores in less than
five years
 Multi-functional team today dedicated to Project 2154 that
could be allocated for new projects
 Quantitative analysis of relevance and return of each
market segment to guide the identification of new
opportunities
 Organic opportunities countered to a potential M&A
strategy, placed on the Strategy Committee maintaining
the focus of the management on the operation
62

Guidance of 62 openings in 2015
63
Existing Businesses
Consistent organic growth opportunities
1
2
2
3
4
5
Owned Stores
# Franchises
# Transfers
458 24
55
Source: Arezzo&Co. Escala ilustrativa
479
52
427
516
54
3Q14 2014
403
2013
35
462
5 -5
62
578
49
529
2015
+5%
+8%
+12%
-3
 Maintaining the guidance of 2014 of 58 net openings, mainly due to the expansion project of the Anacapri brand with 32
openings in the year
 In 2015, the company will increase its pace of openings with a total of 62 stores planned
 Following the multichannel strategy, 5 stores are planned to be transferred to franchisees

64
New Business
Key Messages
Internal projects allow the company to continue increasing
revenue and profitability 1
Company attentive to seize opportunities, multi-brand,
multi-channel, multi-categories, multi-segments and multi-geography
2
Ready to receive new business structure with operating
leverage 3
Organic and M&A opportunities are analyzed without
diverting the focus of the management 4
Pipeline of people to manage and operationalize new
projects 5

Final considerations
Anderson Birman
Chairman
Alexandre Birman
CEO

67
Final Considerations
Key Messages
Arezzo&Co continues to evolve and invest to ensure the improvement of its business model and its
sustainable growth
Focus on product and brand, with constant actions of sell-out
 Product is always a pillar of brands, with recent handbags strategy execution
 Consistent branding and marketing actions
 Valorizza Project 1
Organic growth boosted by multi-brand and multi-channel strategy
 Roll-out of Anacapri in the Franchise channel
 Webcommerce channel consolidation
 New architectural design Arezzo 2
Increasing focus on sell-out
 Model of agile supply reduces deadlines, decreases risks focusing on network health
 GTM: Basics, Essentials, Fast fashion
 Internal Benchmarking with retail indicators 3
Investments allow sustainable growth
 2154 project
 Project VPL²
 GTM Project 4
Leading brands and business model enable new avenues of growth
 Consistent market share gain
 Structure by UN allows plug-and-play new brands
 Robust pipeline of people
5

68
Final Considerations
Board Messages
Optimize governance 1 is a constant challenge
Initial steps in learning about active governance, in Arezzo&Co, in Brazil
and in the world 2
The Board's involvement in the development of long-term actions allowing
3 the administration focus on execution
The Board's involvement in the structuring of social responsibility and
4 sustainability
Constant analysis of scenarios, taking advantage of the different and
complementary expertise of the members of the Board, promoting
longevity and continuity of Arezzo&Co 5

IR Contacts
CFO and IR Officer
Thiago Borges
IR Managment
Leonardo Pontes dos Reis, CFA
Phone number: 11 2132-4300
ri@arezzoco.com.br
www.arezzoco.com.br

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