| Apresentação do Roadshow

1

Institutional Presentation1Q18

Statements regarding the Company’s future business perspectives and projections of operational and

financial results are merely estimates and projections, and as such they are subject to different risks and

uncertainties, including, but not limited to, market conditions, domestic and foreign performance in general

and in the Company’s line of business.

These risks and uncertainties cannot be controlled or sufficiently predicted by the Company management

and may significantly affect its perspectives, estimates, and projections. Statements on future

perspectives, estimates, and projections do not represent and should not be construed as a guarantee of

performance. The operational information contained herein, as well as information not directly derived from

the financial statements, have not been subject to a special review by the Company’s independent

auditors and may involve premises and estimates adopted by the management.

2

Disclaimer

| COMPANY OVERVIEW

Platform of brands of reference

Arezzo&Co is the leading Company in the footwear, handbags and accessories industry through its platform of Top of Mind brands

1

4

5

The 6th Brand – OWME (“Own + Me”) 1

TARGET“MINDSET MATTERS –

NOT YOUR AGE”

SEGMENT

WELLNESS

AB1 Classes

35+

COMFORT

+

STYLE

@owmeoficial

TIMELESS

CONSTRUCTIONS

Company overview

Arezzo&Co is the reference in the Brazilian retail sector and has a unique positioning combining growth with high cash generation

1

61. As of 2017

2. Refers to the Brazilian women footwear market (source: Company estimates).

Leading company

in the footwear

and accessories

industry with

presence in all

Brazilian states

Controlling

shareholders are

reference in the

sector

Development of

collections with

efficient supply

chain

Asset light: high

operational

efficiency

Strong cash

generation and

high growth

12.1 million pairs of shoes (1)

1,2 million handbags (1)

More than 2,500 points of

sale

~12% total market share and

~25% market share on AB

classes

More than 45 years of

experience in the sector

Wide recognition

~11,500 models created

per year

Average lead time of 40

days

15 to 18 launches per year

90,9% outsourced

production (1)

ROIC of 30.2% in 1Q18

2,419 employees

Net revenues CAGR:

7.9% (2012-2017)

Net Profit CAGR: 8.1%

(2012- 2017)

Increased operating

leverage

Founded in 1972

Focused on brand and

product

Consolidation of industrial

business model located in

Minas Gerais

1.5 mm pairs per year

and 2,000 employees

Focus on retail

R&D and production

outsourcing on Vale dos Sinos

- RS

Franchises expansion

Specific brands for each

segment

Expansion of distribution

channels

Efficient supply chain

First store

Fast Fashion

concept

Launch of the

first design with

national success

+

Schutz launch

Launch of

new brands

Merger

Commercial operations

centralized in São Paulo

Strategic Partnership

(November 2007)

Industry ReferenceFoundation and structuring Industrial Era Corporate EraRetail Era

2011 – 2018 70’s 80’s 90’s 00’s

Opening of the first

shoe factory

Opening of the flagship

store at Oscar Freire

Successful track record of

entrepreneurship

The right changes at the right time accelerated the Company's development1

Consolidate

leadership

position

Initial Public Offering

(February 2011)

7

Shareholder Structure

1. Arezzo&Co capital stock is composed of 90,302,408 common shares, all nominative, book-entry shares with no par value

2. Shareholder structure as of May 25th 2018

3. Includes Stock Options plan8

51.1% 48.8%

Birman Family Float

1Management²Others

30.5%

Aberdeen

7.5% 0.07%

BTG Pactual

5.7%

JP Morgan

5.2%

Foundation 1972 1995 2008 2009 2015

Brands profile

Trendy

New

Easy to use

Eclectic

Fashion

Up to date

Bold

Provocative

Pop

Flat shoes

Affordable

Colorful

Design

Exclusivity

Identity

Seduction

Casual

Young

Urban

Modern

Female target

market16 – 60 years 18 – 40 years 12 – 60 years 20 – 45 years 15 – 30 years

% Web Gross

RevenueR$64.3MM (7%) R$58.7MM (11%) R$10.7MM (6%) R$1.6MM (3%) R$1.8MM (10%)

Retail price

pointR$220 / pair R$380 / pair R$110 / pair R$1,500 / pair R$280 / pair

Sales

Volume3 R$912MM R$558MM R$172MM R$55MM R$18MM

% Gross

Revenues4 53.2% 32.6% 10.0% 3.2% 1.0%

Strong platform of brands

Strong platform of brands, aimed at specific target markets, enables the Company to capture growth from different income segments

1D

istr

ibu

tio

n

ch

an

nel1 POS 1

9

% gross

rev.2

O F MB EX

14

65%13%

70

2%

22 67

17% 29%25% 18%

3

49% 34%9%

23

2%

O MB EX

4

5%30%

39

62%

25

O MB EX

4

40%50%

2

0%

363124

O F MB EX O F MB EX

1,187385

13%

1,163 1,323

Notes:1. Points of sales (LTM); O = Owned Stores; F = Franchised Stores; MB = Multi-brand Stores; EX = Exports (including US and ROW wholesalers).

2. % of each brand gross revenues (LTM) does not include other revenues (not generated by any of the 6 brands).

3. Gross revenues LTM, including external market; does not include other revenues (not generated by any of the 6 brands).

4. % of Company’s total gross revenues as of March 31th, 2018.

119

Multiple distribution channels

Flexible platform through different distribution channels with specific strategies, maximizing the Company's profitability

1

Notas:

1. Without store overlap between brands

2. LTM

3. Domestic Market – multibrand without overlap. 10

Gross Revenue Breakdown by Channel2 – (R$ mm)

Broad distribution

network

throughout Brazil

385 franchises +

14 owned stores +

1.187 multibrand clients

67 franchises +

22 owned stores +

1.163 multibrand clients

Points of Sale (1Q18)2

119 franchises +

3 owned stores +

1.323 multibrand clients

4 owned stores +

25 multibrand clients

4 owned stores +

363 multibrand clients

47 owned

stores in

Brazil

2,379 multibrand¹

clients in more

than 1,250 cities

571 franchises in

more than 220

cities in Brazil

44,6% 20,5% 17,6% 8,0% 0,2% 9,2% 100%

766

352

302 137 4

157 1.718

Franchises Multibrand Owned Stores Web commerce Other Foreign Market Total

| BUSINESS MODEL

Management

BRANDS OF REFERENCE

Customer focus: we are at the forefront of Brazilian women fashion and design

Multi-channelSourcing & LogisticsCommunication &

Marketing

SEASONED

MANAGEMENT

TEAM WITH

PERFORMANCE

BASED INCENTIVES

NATIONWIDE

DISTRIBUTION

STRATEGY

EFFICIENT

SUPPLY CHAIN

SOLID MARKETING

AND

COMMUNICATION

PROGRAM

ABILITY TO

INNOVATE

R&D

1 4 5

12

Unique business model in Brazil

2

2 3

Ability to Innovate

We develop 15 to 18 collections per year2I. Research

Creation: 11,500 SKUs / year

II. Development III. Sourcing IV. Store Delivery

Arezzo&Co delivers on average 5 new models at the stores per day, allowing for consistent desire-driven purchases

Available for selection:

63% of SKUs created / year

13

Stores:52% of SKUs created /

year

Creation

Launch

Orders

Production

Delivery

Normal sale

Discount sale

Winter I Winter II Winter III Summer I Summer II Summer III Summer IV

Activities JAN FEV MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Broad Media Plan

2

14

Each brand has an integrated and expressive communication strategy, from the creation of

campaigns to the point of sale

LIVE MARKETING AND EXPERIENCE AT POINT OF SALESTRONG PRESENCE IN SOCIAL, DIGITAL AND PRINT MEDIA

DIGITAL COMMUNICATION

INTERNATIONAL CELEBRITIES ENDORSEMENT AND

STRONG PRESENCE IN THE PRESSCUSTOMIZED CONTENT FOR DIFFERENT CLIENTS

OVER 12 MILLION FOLLOWERS

OVER 4 MILLION MONTHLY WEBSITE ACCESSCUSTOMER ACTIVATION THROUGH FASHION AND

LIFESTYLE EVENTS

PUBLIC RELATIONS

Stores are constantly changed to incorporate the concept of each new collection, resulting in a higher level of desire-driven purchases

Communication & Marketing Program

reflected in every aspect of the stores2

15

All visual communication at stores is monitored and updated simultaneously throughout Brazilfor each new collection

Flagship storesStore layout & visual merchandising

POS materials (catalogs, packaging, and others)

15

Distinguished storefront

Atmosphere of Stores: differentiated

concepts for each brand2

16

New Store Concept

Smart Mirror Mobile Checkout

“Home Feeling”

New store concept being

tested in flagship stores

New digital experience: mobile

check out, RFID mirror and

touch tv

Expected roll out for 2018/19

Display of a large variety of

products

Inventory at the sales area:

lower necessity of additional

space for storage

Atmosphere of a jewelry

store

Private shop experience

Focus on exclusivity, design

and high quality materials

Wall display

Combos

Each theme is disposed in different niches

Accessories

Sophisticated lightingStorage

Iguatemi Faria Lima - SP

Shelves, Niches and Suspended shelves

Visual merchandising:

Increased number of

models exposed

Products highlighted in the

center of the stores

Favorable lighting project

Distribution of the furniture

provides more comfort to

the customers

Suspended Shelves

Experimental and creative

space

Interaction with the customer

Experimental and creative

Oscar Freire St 1128

Reception: 100,000 units/day

Storage: 100,000 units/day

Picking: 150,000 units/day

Distribution: 200,000 units/day

Flexible Production Process

2

17

Production speed, flexibility and scalability to ensure Arezzo&Co’s expected growth based on asset light model

Arezzo’s scale and structure gives flexibility to source a large number

of SKU’s from various factories on a short time frame at competitive

prices

Owned factory with capacity to produce 1,1mm pairs annually and a

strong relationship with Vale dos Sinos production cluster as the

main outsourcing region

Sourcing Model Gains of scale

Joint purchasesCertification and auditing of suppliers

In-house certification and auditing ensure quality and punctuality

(ISO 9001 certification in 2008)

Coordination of material purchase jointly with shoe, handbag and

accessories’ suppliers

New Distribution Center – Espirito Santo State Sourcing model – 90% of production outsourced¹

Consolidation and improvement of distribution in

national scale

12

34

10%

90%

Arezzo&Co OwnedFactories

Others

Operation composed by flagship stores in

key Brazilian locations

Owned stores are key to develop retail know-how and increase brands’ visibility2Flagship Stores

18

Greater brand awareness coupled with operational efficiencies

Owned stores are larger and more productive than average and

are located in key cities of Brazil (mainly SP and RJ)

The direct customer interaction enables the development of retail

capabilities, which are also reflected at franchised stores

Flagship stores ensure greater visibility and reinforce brand

image

R$ 6.3MM

Ow

ned

Fra

nchis

e

Average Annual

Sales per Store

LTM

R$ 1.3MM

Arezzo – Iguatemi / SP

Schutz – Iguatemi/ SP Arezzo – Oscar Freire/ SP

Schutz – Oscar Freire/ SP

Anacapri – Oscar Freire/ SP

Structure applied to retail in order to achieve better sales and margin results as well as to integrate and connect all monobrand stores’ back office

2

19

Strong focus on performance in both

owned and franchised stores

Strong focus on franchise and owned store performance

• All sales team (4,000+ people) get connected through national internet broadcast for three sales conventions peryear, creating an aligned sales pitch and a great sense of motivation before each season

• Large service program to assist franchisees on sales and profitability goals

• Recurring training programs in products, fashion trends, sales techniques, store management, IT, among others

• Strong visual merchandising, trade marketing and ambiance investments and training

56%24%

10%

10%

Intense retail training

Ongoing support: average of 6 stores/ consultant and average of

22 visits per store/ year

Strong relationship with and ongoing support to franchisee

IT integration with our franchises amounts to 100%

As mono-brand stores, franchises reinforce branding in each city

they are located

24 or more

franchises

1 franchise

2 franchises

3 franchises

Efficient management of the franchise

network

Model allows fast expansion with low invested capital

Successful Partnership: “Win – Win” Franchise Concentration per Operator

96% satisfaction of franchisees1

Seal of Excellence from ABF (Brazilian Association of Franchising)

(# of franchises by # of franchisees)

Notes:

1. 96% of the current franchisees indicated they would be interested in opening a

franchise if they did not already have one

2. For a regular Arezzo brand store, with expected annual sales of R$ 2,2 million, the

average investment is approximately R$ 670 thousand, including store capex,

franchise fee, WC and initial inventory)

20

5-year contract and average payback of 36-48 months2

78 86

2.229

2.379

1.800

1.900

2.000

2.100

2.200

2.300

2.400

2.500

–

20

40

60

80

100

120

140

160

180

200

1Q17 1Q18

Gross Revenue

# Stores MB

Multibrand stores as tool for increased

capilarity2

21

Multibrand stores’ gross revenue¹ Improved distribution and brand visibility

Greater brand distribution network

Presence in over 1,250 cities

Fast expansion at low investment and risk

Main focus: increase share of wallet, through the sale of more

brands at the same POS and also handbags as part of the mix

Important sales channel for smaller cities and the Brazilian

countryside

Sales team optimization: internal team and commissioned sales

representatives

Multibrand stores widen the distribution network and the brands’ visibility, resulting in a stronger retail footprint

Notes:

1. Domestic market only

Multi-brand stores

10.0%

6.7%

Board of DirectorsRisk, Audit and

Finance Committee

People Committee

Strategy Committee

Internal Auditing

CEO/CCO

The new structure presents a reduction in the number of CEO reports, value chain integration and higher speed

in decision making, with an increased focus on people and sustainability

New Organizational Structure

2

BU Arezzo

BU Schutz

BU Anacapri

LAB

BU Fiever

BU OWME

Sourcing

Engineering

Quality

Industry

Planning

Logistics

People

Sustainability*/PR

Non productive

purchase

Management

(Method, goals and

indicators)

Finance/Legal/Fiscal

Controller

Investor Relations

Risk Management

Strategic

Planning/PMO

BrandsSilvia Machado

Industrial and OperationsCisso Klaus and Cassiano

Lemos

Administrative & Finance

Rafael Sachete

HR & ExpansionMarco Aurélio Vidal

IT

Innovation

Valorizza (CRM)

WEB (BR/USA)

Digital TransformationMaurício Bastos

Schutz USA

BU Alexandre

Birman

Exports

InternationalBusiness

Wayne Kulkin

José Bolonha (Coordinator)Juliana Rozenbaum (Coordinator)

Corporate governance

2

23

Risk, Audit and Finance Committee

Committees

Strategy and Brands Committee People Committee

Members:

Alessandro Carlucci, Guilherme A. Ferreira and

Edward Ruiz

Members:

Alexandre Birman, Paula Bellizia and Juliana

Rozenbaum

Members:

Luiz Fernando Giorgi, José Bolonha and Cláudia

Falcão

The Board is comprised of 7 members, of which 2 are independent, and has a very large engagement on the strategic planning of Arezzo&Co

Name Experience Name Experience

Title Title

Board of Directors

Alessandro CarlucciChairman of the Board

Natura’s CEO for over a decade and former Board

Member of Lojas Renner, Redecard, Alcoa Latam and

Itau-Unibanco

Luiz Fernando Giorgimember

28 years of experience in Management and Leadership.

Current member of people committees for Santander, Sul

América and Grupo Martins

Alexandre BirmanMember

Current CEO of Arezzo&Co and part of the controlling group.

Founder of Schutz brand, with over 18 year of experience on

the footwear industry.

Juliana RozenbaumMember

Over 13 years of experience as sell side equity research

analyst, focused on retail and consumer sector

Paula BelliziaIndependent member

CEO of Microsoft Brasil. Former CEO for Apple Brasil and

Facebook Latam Sales Diretor. Member of the Economic

and Social Development Council (CDES).

Guilherme A. FerreiraIndependent Member

CEO of Bahema Participações, current board member of

Petrobras, Valid, Sul América, Gafisa and T4F

José BolonhaVice Chairman of the Board

Founder and CEO of “Ethos Desenvolvimento Humano e

Organizacional“; Board member of the Inter-American

Economic and Social Council (UN, WHO)

Guilherme A. Ferreira (Coordinator)

Multibrand and multichannel strategy

2Organic growth leveraged by multi-brand, multichannel strategy in footwear and handbags

FRANCHISES

MULTIBRANDS

OWNED STORES

WEB COMMERCE

OVERSEAS MARKET

REPRESENTATIVENESS

OF THE BRAND LTM1,2

REVENUE

BREAKDOWN

LTM1,2

FOCUS ON SSS

FOCUS ON BAGS

SERVICES SEGMENTATION

CROSS-SELL OF BAGS

ACTIVATION POS MKT

FOCUS ON SSS

CHANNEL BOOST, EX.: APP

PILOT STORE SHIPPING

FOCUS ON KEY ACCOUNTS

53.2%

R$912 MM

32.6%

R$558 MM

10.0%

R$172 MM

3.2%

R$55 MM

1.0%

R$18 MM

100%

R$ 1,7 BN

USA PROJECT

MULTIBRAND STORES

FASHION INFO SHOP

NEW APP

GROWTH WITH FOCUS ON

SSS

REFRESH FLAGSHIP

INCREASE IN SHARE OF

WALLET CUSTOMERS

ATTRACTION

CROSS-SELL OF BAGS

NEW CATEGORIES FOCUS

ON SSS

LIFE STYLE

NATIONAL ROLL-OUT

ON-GOING INVEST. EM

MKT

RECENT RECOGNITION OF

THE BRAND IN THE

CHANNEL

INCREASE PENETRATION

FINALIZE TRANSFER OF

PILOT STORES RETAINING

A MAXIMUM OF 2

FLAGSHIPS

BOOST DIGITAL PRESENCE

INCREASE TRAFFIC AND

CONVERSION

NOT A CURRENT FOCUS

NEW FACTORY WILL

ENABLE SERVICING OF

GROWING DEMAND

LAUNCH IN 2017 IN BRAZIL

AND 2018 USA AND

EUROPE

TOOL FOR ENHANCING

BRAND AWARENESS AND

PENETRATION

NOT A CURRENT FOCUS

FOCUS ON SSS

OPENING OF MADISON

STORE

OPENING OF FLAGSHIP

STORES

SOLD AT SELECTED

POINTS AND IN LINE WITH

THE BRANDING

EXPANSION IN NEW

POINTS OF SALE

LAUNCH OF FRANCHISES FIRST FRANCHISE IN 2018 44.7%

R$ 766 MM

9.2%

R$ 157 MM

8.0%

R$ 137 MM

20.5%

R$ 352 MM

17.6%

R$ 302 MM

Notes:1. % of each brand gross revenues (LTM) does not include other revenues (not generated by any of the 5 brands).

2. Gross revenues LTM, including external market; does not include other revenues (not generated by any of the 5 brands).

Information as of March 31th, 2018

25

Clear focus of the future

2

Adjacencies

Core

Brands

Categories

Geography

Female

Children

Teenager

Wellness

Male

White soles

Full plastic

Footwear

Leather accessories

Other accessories

Clothing

Other categories

Brazil

North America

Latin America

Europe

Middle East

Owned stores

Multi-brand

Exports

Online

OutletsKiosks

Department stores

Channels

Franchises

Handbags

Segment

Positioning

Class A1

Class B1

Class C2

Arezzo

Alexandre Birman

Anacapri

Schutz

Class A2

Class B2

Class C1

Other brands

Owme

Fiever

Ownership of the value chain, greater competitive advantage• More agile and collaborative model• Sell-out oriented to boost results in the value chain

26

Key messages

2Arezzo&Co keeps developing its business model in a sustainable way

Consolidated business model with multiple growth opportunities• Sustainable growth and improvement in the profitability of existing brands.• Launch of a new brand Owme and encouraging results in Fiever brand1Staff management an ongoing development• Shareholders value creation sustained by leadership and training of talents• Strengthening of Company’s culture2

3

Multi-channel management know-how, excellent platform to lift brands• Digital transformation and Omni channel growth as key priorities• Strong knowledge in franchises’ management coupled with efficiency opportunities • Multibrand channel boosting the growth of new brands

5

Company’s resilient financial growth• Consistent dividend payout combined with a strong cash flow• Expenses optimization in line with growing revenues4

| FINANCIAL HIGHLIGHTS03

719 767 738 804874

199 219

400434 467

458451

98 103

41

72 93119

157

34 45

10

9 921

42

910

1.1701.282 1.307

1.4021.524

341377

-3.000, 0

-2.500, 0

-2.000, 0

-1.500, 0

-1.000, 0

-500,0

-

500 ,0

1.00 0,0

1.50 0,0

2.00 0,0

-

200 ,0

400 ,0

600 ,0

800 ,0

1.00 0,0

1.20 0,0

1.40 0,0

1.60 0,0

1.80 0,0

2.00 0,0

2013 2014 2015 2016 2017 1Q17 1Q18

Arezzo Schutz Anacapri Others

28

Operational and financial highlights

3Gross Revenue Breakdown by Brand – Domestic Market (R$ million)

CAGR: 6.8%

10.7%

Others: includes only domestic markets for Alexandre Birman and Fiever brands and other revenues.

62 76 128 152 15428 30

583661

638686 748

173 191

289

300 305304

344

78 86

268

272292

301

299

63 66

23

4469

108

129

25

33

7

53

3

5

2 1

1.2321.358 1.435

1.5541.679

368

408

(3.000, 0)

(2.500, 0)

(2.000, 0)

(1.500, 0)

(1.000, 0)

(500,0)

–

500 ,0

1.00 0,0

1.50 0,0

2.00 0,0

–

200 ,0

400 ,0

600 ,0

800 ,0

1.00 0,0

1.20 0,0

1.40 0,0

1.60 0,0

1.80 0,0

2.00 0,0

2013 2014 2015 2016 2017 1Q17 1Q18

Foreign Market Franchise Multibrands Owned Stores Web commerce Others Total

29

Operational and financial highlights

3Gross Revenue Breakdown by Channel – Domestic and External Market (R$ million)

CAGR: 8.0%

10.7%

Others: includes domestic market revenues that are not specific for distribution channels.

3

30

Operational and financial highlights

Key highlights

Sales area increased 7.4% in the last twelve months.

Gross revenue reached R$ 408 million in 1Q18, a increase of 10.7% over 1Q17.

Number of Stores (R$ mln) and Total Area (m2- ‘000)

CAGR 2007-2017: 21.5%

Net Revenues (R$ mln)

Area CAGR 2008-2017: 13.4%

194

367 412

572

679

860

963

1.053

1.121

1.239

1.360

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

89,4%

12,3%

38,7%

18,8%

26,7%

11,9%

9,3%

6,4%

10,6%9,8%

514 518 525 568 576

48 49 51 50 49

38.6 38.9 39.441.2 41.5

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

-100

100

300

500

700

900

1.100

1.300

1.500

1Q17 2Q17 3Q17 4Q17 1Q18

Franchises Owned Stores Area (000 m2)

0.7%4.7%

+2

+8

1.1%0.8%

+4

+1

+7 +43

-1 -1

111120 120 116

154

22 27

11,5% 11,4%10,7%

9,4%

11,4%

7,5%8,2%

0,0 %

2,0 %

4,0 %

6,0 %

8,0 %

10, 0%

12, 0%

14, 0%

-

50,0

100 ,0

150 ,0

200 ,0

250 ,0

2013 2014 2015 2016 2017 1Q17 1Q18

Net Profit Net Margin

426 456

476

549

624

130 147

44,2% 43,3% 42,5%44,3%

45,8%43,8% 44,4%

–

5,0%

10,0 %

15,0 %

20,0 %

25,0 %

30,0 %

35,0 %

40,0 %

45,0 %

50,0 %

–

100

200

300

400

500

600

700

800

2013 2014 2015 2016 2017 1Q17 1Q18

Gross Profit Gross Margin

3Operational and financial highlights

Gross Profit Evolution (R$ MM) and Gross Margin (%) Net Profit Evolution (R$ MM) and Net Margin (%)

31

22.3%

+70 bps+ 60 bps

12.7%

*In 4Q17 the company obtained an injunction exempting it from the payment of income and social contribution taxes (IR and CSLL) on an ICMS tax benefit , which remained

valid during 1Q18.

**

159170 165

177

206

36 41

16,6% 16,1%

14,8%14,3%

15,2%

12,1% 12,3%

0,0 %

2,0 %

4,0 %

6,0 %

8,0 %

10, 0%

12, 0%

14, 0%

16, 0%

18, 0%

-

50,0

100 ,0

150 ,0

200 ,0

250 ,0

300 ,0

2013 2014 2015 2016 2017 1Q17 1Q18

EBITDA Margem EBITDA

62 76 128 152 15428 30

1.170 1.282

1.307 1.402

1.524

341 377

1.232

1.3581.435

1.554

1.679

368 408

–

200 ,0

400 ,0

600 ,0

800 ,0

1.00 0,0

1.20 0,0

1.40 0,0

1.60 0,0

1.80 0,0

–

200 ,0

400 ,0

600 ,0

800 ,0

1.00 0,0

1.20 0,0

1.40 0,0

1.60 0,0

1.80 0,0

2.00 0,0

2013 2014 2015 2016 2017 1Q17 1Q18

Foreign Market Domestic Market

3Operational and financial highlights

Gross Revenue (R$ MM) EBITDA Evolution (R$ MM) and EBITDA Margin (%)

32

+20 bpsCAGR: 8.0%

13,1%

10,7%

3Operational and financial highlights

33

Arezzo&Co has a solid balance sheet with a healthy net cash position, coupled with a strong ability to generate operating cash flow and dividend payments

Operating cash flow yield¹ 3.9%

Capex / Depreciation LTM -0.7x

Net Debt / EBITDA -0.8x

Working Capital (% of Net

Revenue)24.8%

Increase in working capital needs by 70 bps from 1Q18

to 1Q17.

Dividend Payout (YTD) 86.8%Consistent dividend payments, with a payout of more

than 86.8% of net profit in 2017 (or 100% payout

considering the distributable income).

Arezzo&Co generated R$150MM in operating cash flow

in the last twelve months, translating into cash flow yield

of 3.9%.

From 2015 onwards capex trended roughly in line or

below depreciation.

The Company has a strong balance sheet and a net

cash/EBITDA ratio of -0.8x in March/18.

1) Operating cash flow yield = LTM Operating cash flow / Firm value. Considered Firm Value of R$ 3.872,69MM (as of 03/31/2018)

34

3Operational and financial highlights

Cash Conversion Cycle (R$ thousand)

Cash Flow From Operating Activities (R$ thousand)

Capex (R$ thousand)

¹ Days of COGS

² Days of Net Revenues

Operational Indicators

* Include international stores

Operating Indicators 1Q18 1Q17Δ

18 x 17

# of pairs sold ('000) 2.742 2.560 7,1%

# of handbags sold ('000) 358 267 34,1%

# of employees 2.419 2.307 4,9%

# of stores* 625 562 63

Owned Stores 49 48 1

Franchises 576 514 62

Outsourcing (as % of total production) 90,3% 89,2% 1,1 p.p

SSS² Sell-in (franchises) 3,7% 13,6% -9,9 p.p

SSS² Sell-out (owned stores + franchises + web) 8,4% 2,5% 5,9 p.p

35

3Operational and financial highlights

Indebtedness (R$ thousand)

Total indebtedness of R$172.1 million in 1Q18 against R$97.2 million in 1Q17.

Long term indebtedness of 9.2% of total debt in 1Q18, compared to 25.5% in 1Q17.

The weighted average cost of the company’s total debt in 1Q18 remained at low levels.

36

Appendix

37

Key financial indicators

A

(1) Working Capital: current assets minus cash, cash equivalents and financial investments less from current liabilities minus loans and financing and dividends payable.

(2) Invested Capital: working capital plus fixed assets and other long term assets less income tax and deferred social contributions.

(3) Net debt is equal to total interest bearing debt position at the end of a period less cash, cash equivalents and short-term financial investments.

38

History – Franchises and Owned Stores

A

(1) Includes areas in square meters of the stores overseas

(2) Includes seven outlet type stores with a total area of 2,100 m²

(3) Includes areas in square meters of stores expanded

39

Balance Sheet - IFRS

A

40

Income Statement - IFRS

A

41

Cash Flow Statement - IFRS

A

42

Cash Flow Statement - IFRS

A

Contacts

Telephone: +55 11 2132-4303

ri@arezzoco.com.br

www.arezzoco.com.br

Rafael Sachete da Silva

CFO

Aline Penna

IR Officer

Victoria Machado

IR Coordinator

Rafaella Nolli

IR Analyst