1Q11 1Q11 ConferenceConference Call Call AprilApril 29, 201129, 2011

DISCLAIMER

This presentation contains forward-looking statements regarding the

prospects of the business, estimates for operating and financial results, and

those regarding Cia. Hering's growth prospects. These are merely projections

and, as such, are based exclusively on the expectations of Cia. Hering

management concerning the future of the business and its continued access

This presentation contains forward-looking statements regarding the

prospects of the business, estimates for operating and financial results, and

those regarding Cia. Hering's growth prospects. These are merely projections

and, as such, are based exclusively on the expectations of Cia. Hering

management concerning the future of the business and its continued accessmanagement concerning the future of the business and its continued access

to capital to fund the Company’s business Plan. Such forward-looking

statements depend, substantially, on changes in market conditions,

government regulations, competitive pressures, the performance of the

Brazilian economy and the industry, among other factors and risks disclosed

in Cia. Hering’s filed disclosure documents and are, therefore, subject to

change without prior notice.

management concerning the future of the business and its continued access

to capital to fund the Company’s business Plan. Such forward-looking

statements depend, substantially, on changes in market conditions,

government regulations, competitive pressures, the performance of the

Brazilian economy and the industry, among other factors and risks disclosed

in Cia. Hering’s filed disclosure documents and are, therefore, subject to

change without prior notice.

AGENDAAGENDA

HighlightsHighlights

1Q11 1Q11 OperationalOperational

3

1Q11 1Q11 OperationalOperationalPerformancePerformance

OutlooksOutlooks

� Gross Sales: R$ 338.5 million in the quarter (+44.8%).

� Sales growth above 35% in all Company’s brands.

� Same Store Sales growth in the Hering Store Chain: (+23.4%).

� EBITDA : R$ 74.3 million (+58.0%), with EBITDA Margin of 26.8% (+2.6 p.p)

� Net Profit : R$ 51.0 million (+73.7%)

1Q11 HIGHLIGHTS

4

� Net Profit : R$ 51.0 million (+73.7%)

� Hering Store Chain :

�Opening of 72 stores since 1Q10, three during the 1Q11.

�Seven Hering Stores were remodelated in the quarter.

� Stores Opening - 418 by the end of 2011.

AGENDAAGENDA

HighlightsHighlights

1Q11 1Q11 OperationalOperational1Q11 1Q11 OperationalOperationalPerformancePerformance

OutlooksOutlooks

Gross Revenue (R$ million)

SALES PERFORMANCE

5.3

4.1

22.9%

44.8%233.8

338.5

Domestic Market (R$ million)

R$ 176.0 R$ 254.6+44.7%

R$ 15.7 R$ 24.2+54.1%

1Q10 1Q11

6

In the 1Q11, gross sales reached R$ 338.5 million (+44.8%) and all the Company’s brands grew above 35%.

228.5 334.4 46.4%

R$ 19.4

R$ 12.7

R$ 26.9

R$ 20.7

R$ 15.7 R$ 24.2+54.1%

+38.5%

+63.9%

Domestic Market Foreign Market Total

1Q10 1Q11

350

273

781

15

15

446

366

STORES CHAIN EVOLUTION

278350

1Q10 1Q11

7

TotalHering Store Hering Kids PUC dzarm. Foreign - Franchised

In the domestic market, we ended the 1Q11 with 350 Hering Stores, 78 PUC, 2 Hering Kids and 1 dzarm.

HERING STORE CHAIN PERFORMANCE

Hering Store Chain Performance 1Q10 1Q11 Chg.

Number of Stores 278 350 25.9%Franchise 238 307 29.0%

Owned 40 43 7.5%

Sales (R$ thousand) (1) 137,363 202,409 47.4%

Franchise 108,970 166,019 52.4%

Owned 28,392 36,550 28.7%

Same Store Sales growth (2) 26.6% 23.4% -3.2 p.p.

Sales Area (m²) 35,478 45,439 28.1%

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SSS growth of 23.4% in the 1Q11 mainly driven by the increase in averagesales price, and also by stores traffic.

Sales Area (m²) 35,478 45,439 28.1%

Sales (R$ per m²) 3,878 4,495 15.9%

Check-Outs 1,785,688 2,417,260 35.4%

Units 3,985,723 5,237,956 31.4%

Units per Check-Out 2.23 2.17 -2.9%

Average Sales Price (R$) 34.46 38.64 12.1%

Average Sales Ticket (R$) 76.92 83.74 8.9%(1) The amounts referred to the sales to final costumers. (sell out concept)(2) Compared to the same period of the previous year

GROSS PROFIT AND EBITDA

48.3% 46.7%

49.5% 47.8%

-1.7 p.p.

-1.8 p.p ....

24.2%26.8%+2.6 p.p ....

Gross Profit and Gross Margin EBITDA and EBITDA Margin

9

94.0

129.6

Despite the pressure of raw material costs, the high operational leverage andthe strict expense management led to a 260-bp EBITDA margin expansion.

37.9%

47.0

74.3

58.0%

% Cash Gross Margin% Gross MarginGross Profit(R$ million)

1Q10 1Q11 1Q10 1Q11

% EBITDA MarginEBITDA (R$ million)

NET PROFIT

15.1%18.4%+3.3 p.p ....

10

In the 1Q11, expressive growth in Net Profit , mostly attributable to betteroperational performance and the establishment of investment grants.

73.7%

29.4

51.0

% Net MarginNet Profit (R$ million)

1Q111Q10

By Activity (R$ million)

CAPEX

0.7 0.3 0.7

11.3

5.9

11

In the 1Q11 , Cia. Hering’s investments totaled R$ 5.9 million , mainly focusedin the industry.

9.6

4.0

0.3 0.2

1.5

1Q10 1Q11

47.9%

5.9

TotalIndutry IT Others Stores

CASH FLOW

Cash Flow - Consolidated (R$ thousand) 1Q10 1Q11 Chg.

EBITDA 47,031 74,306 27,275

No cash items 335 365 30

Current Income tax and Social Contribution (8,575) (14,939) (6,364)

Cash Flow Capex 26,735 (17,938) (44,673)

Decrease (increase) in trade accounts receivable 29,616 17,559 (12,057)

(Increase) in inventories (11,722) (27,481) (15,759)

Increase in accounts payable to suppliers 11,281 882 (10,399)

Increase (decrease) in taxes payable 2,228 2,512 284

Others (4,668) (11,410) (6,742)

CapEx (10,093) (5,870) 4,223

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Decrease of R$ 19.5 million in free cash flow, mostly driven by the reduction in working capital due to an increase in inventories.

CapEx (10,093) (5,870) 4,223

Free Cash Flow 55,433 35,924 (19,509)

Reconciliation from accouting Cash flow to adjusted Cash flow (R$ thousand) 1Q10 1Q11 Chg.

DFC - Cash provided by operating activities 66,983 45,804 (21,179)

Adjustment – Financial items allocated to operating cash (1,457) (4,010) (2,553)

Unrealized exchange and monetary variation (1,808) (1,348) 460

Financial Result (2,328) (3,922) (1,594)

Interest paid on loans 2,679 1,260 (1,419)

DFC - Cash flows from investing activities (10,093) (5,870) 4,223

Free Cash Flow 55,433 35,924 (19,509)

Net Debt (R$ million ) Short Term x Long Term

INDEBTEDNESS

Short Term

54.7% Long

4.6

3.5

(0.7)0.1 (0.2) (0.2) (0.2)

2005 2006 2007 2008 2009 2010 1Q11

201.3 184.6

(33.4)

11.0

(25.1)(61.9) (73.8) Gross Debt = R$ 51.0 million

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* Last 12 months EBITDA

Net Debt/ EBITDA*

In line with the Company’s strategy to not renew bank loans with high interest, the debt reduction amounted R$ 2.9 million in the 1Q11.

54.7% Long Term

45.3%

AGENDAAGENDA

HighlightsHighlights

1Q11 1Q11 OperationalOperational

14

1Q11 1Q11 OperationalOperationalPerformancePerformance

OutlooksOutlooks

OUTLOOKS

� Hering brand continues to be the company’s main leverage for growth :

� HS chain - increase in number of stores and growth in same store sales concept.

� Goal to reach at least 418 stores by the end of 2011.

� In the multibrand retail channel, strategy of continuing to qualify distribution, seeking increased market share in existing clients.

� Children’s market – launch of two more Hering Kids pilot stores .

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� Children’s market – launch of two more Hering Kids pilot stores .

� With dzarm. we will move forward with the strategic plan of launching collections in the casual jeans concept, supported by marketing campaigns with celebrities.

� In the online channel , investments in technology infrastructure and webstoresremodeling .

� Cost pressures might persist throughout the coming quarters, however we should at least maintain EBITDA Margins at 2010 levels.

INVESTOR RELATIONS TEAMINVESTOR RELATIONS TEAM

Fabio Hering – CEOFrederico Oldani – CFO and IRO

Karina Koerich – IR ManagerAdmar A. Topazio Junior – IR Analyst

Tel. +55 (47) 3321-3469E-mail: ri@hering.com.br

Website: www.ciahering.com.br/ir