AGENDA: Highlights Operational Performance Stock Market Business Strategy and Outlook

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2 Disclaimer This presentation contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to 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 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. 1

3 AGENDA: Highlights Operational Performance Stock Market Business Strategy and Outlook 2

4 Highlights BEGINNING OF STRATEGIC PLAN IMPLEMENTATION IN AUGUST/07 Hering brand price repositioning Opening of five stores in 3Q07 - four under the Hering Store flag and one PUC store EARNINGS Gross revenue from domestic market sales up 22.2% in 3Q07 (Hering brand up 25.1% and PUC brand up 27.3%) Same-store sales at owned Hering Store up 30.6% and at the franchise stores up 20.7% Gross profit in the domestic market up 15.4% EBITDA in August-September up 17% over the same period in 2006 (-10.7% in 3Q07) CAPEX AND CAPITAL STRUCTURE R$ 8.0 million in investments in 3Q07 Net cash of R$ 42.2 million 3

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6 Gross Revenue - R$ MM DOMESTIC MARKET GROSS REVENUE BY MARKET % % Domestic Market Per Brand Q06 7.4% 5.7% 27.3% 25.1% EXPORT MARKET Q07 Private Label x Owned Brands Others Dzarm PUC Hering Per Channel % 34.4% Q06 Exports by Region Q07 Retail Franchise/ Own Stores Q % Q07 Export Market % 30.3% Private Label Others Europe Latin Am. North Am Q % 4.6 3Q07 Owned Brands 5.8 3Q Q07 Mercosur 5

7 Gross Profit and Adjusted EBITDA - R$ MM Gross Profit and Gross Margin 41.4% 0.9 pp 40.5% 41.2% 3.3 pp 37.9% % 14.7% Export Market % 65.9% % Domestic Market 15.4% Aug-Sep/06 Aug-Sep/07 3Q06 3Q07 Adjusted EBITDA and EBITDA Margin 15.2% 0.3 pp 15.5% 14.9% 3.2 pp 11.7% % % 10.8 Aug-Sep/06 Aug-Sep/07 3Q06 3Q07 6

8 Stores and Expansion Project Sep-06 Sep Hering - Own Store Hering - Franchise Sub-total PUC - Own Store PUC - Franchise Sub-total Brazil Overseas - Franchise Total Number of Stores Exports PUC Hering M06 9M07 7

9 Distribution Channels in Brazil 160 Hering Stores 42 PUC Stores Multi-brand Stores (Hering brand) 8

10 Status of Franchise Store Opening Plan for 2007 State City Location Status Expected Date Franchise SP - São Paulo Rua Vieira de Morais Opened mar/07 SP - São Paulo Al. Nhambiquaras Opened may/07 BA - Salvador Salvador Shopping Opened may/07 RS - Porto Alegre Rua 24 de Outubro Opened jul/07 SP - Guarujá Shopping La Plage Opened sep/07 SP - S. J. Campos Shopping Vale Sul Opened oct/07 PR - Foz do Iguaçu Shopping Cataratas JL Opened oct/07 SP - S. J. Rio Preto Shopping Plaza Avenida Confirmed nov/07 SP - São Paulo Rua Diogo de Faria Confirmed nov/07 SP - São Paulo Rua Carlos Weber Confirmed nov/07 MG - Araxá Rua Capitão José Porfírio Confirmed nov/07 GO - Aparecida de Goiânia Buriti Shopping Confirmed nov/07 SP - Marília Shopping Aquarius Confirmed nov/07 SP - Rio Claro Shopping Center Rio Claro Confirmed nov/07 RS - Porto Alegre Shopping Total Confirmed nov/07 PI - Teresina Riverside Shopping Confirmed nov/07 SC - Florianópolis Shopping Itaguaçu Confirmed nov/07 RN Natal Midway Mall Confirmed nov/07 Status Opened 11 Confirmed Current Franchisee New Franchisee 9

11 Status of Owned Store Opening Plan for 2007 State City Location Status Expected Date SC - Florianópolis Shopping Iguatemi Santa Mônica Opened jun/07 RJ - Rio de Janeiro Norte Shopping Opened aug/07 RJ - Rio de Janeiro Rio Design Barra Opened aug/07 MG - Belo Horizonte Diamond Mall Opened sep/07 PR - Curitiba Shopping Estação Opened oct/07 SP - São Paulo Shop. Market Place Opened oct/07 SC - Balneário Camboriú Balneário Camboriú Shopping Opened oct/07 RJ - Rio de Janeiro Rua Visconde de Pirajá (Ipanema) Confirmed nov/07 SP - São Paulo Santana Parque Shopping Confirmed nov/07 RJ - Rio de Janeiro Rua da Quitanda Confirmed nov/07 RJ - Rio de Janeiro Shopping Aricanduva Confirmed dec/07 SP - Guarulhos Shopp. Intern. Guarulhos Confirmed nov/07 SP - São Paulo Avenida Paulista Confirmed dec/07 SP - São Paulo Shopping Santana (Transference) Confirmed nov/07 SC - Balneário Camboriú Avenida Brasil (Transference) Confirmed nov/07 Status Opened 6 Confirmed 10

12 Franchises Domestic Market Indicators Hering Store 3Q06 3Q07 chg. 9M06 9M07 chg. Number of Store % % Franchises % % Own Stores % % Hering Chain Revenue - R$/thousand 46,577 59,004 27% 143, ,830 17% Same Store Sales % % Sales Area - m² 20,397 21,669 6% 20,397 21,669 6% Revenue per m² - R$ 2,283 2,723 19% 7,032 7,745 10% Customer Servicing 580, ,962 24% 1,796,824 1,971,628 10% Items 1,352,039 1,741,410 29% 4,220,611 4,668,144 11% Average Ticket - R$ % % 11

13 Capex R$ MM 2.6 Other 2.6 Industry 3.2 IT Stores 5 5,4 8,6 20 3Q06 3Q07 9M06 9M E 2008 E 12

14 Debt Profile Net Debt/EBITDA By Maturity - R$ MM Short Term 85.0 Long Term 63.2 Sep/07* Sep/06 * Net Debt - R$ MM Net Debt/EBITDA* (1.7) (42) * Last 12 months EBITDA 13

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16 Stock Market Indicators - HGTX3 9M06 9M07 Chg. Number of Trades , % Participation in Trading Sessions - % 55.6% 94.6% 39.0 p.p. Quantity Traded , % Volume Traded - R$ 000 2, , % Share Price - R$ (¹) % Total Shares Outstanding ,095 53,928 63% Market Cap - R$ MM (¹) 119, , % (¹) 09/28/2007 Cia Hering ON versus Ibovespa (09/29/2006 = 100 basis) HGTX % IBOVESPA + 66 % , Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 IBOVESPA HGTX3 15

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18 Business Strategy and Outlook Launching of Hering Store card Visa flag Many benefits to consumers Strategic tool for increasing sales at the Hering Store chain Increase in number of Hering Stores 182 stores by year end, up 10 from initial plan for 2007 Hiring of new executives An executive for Product and Marketing, with wide experience in the sector An executive for the Hering Store card operations, with wide experience in the financial market 17

19 Investor Relations Team Fabio Hering Deputy-CEO and IR Director Vilmar da Costa CFO Karina Koerich IR Manager Phone +55 (47) Investor Relations Consulting Firm FIRB Financial Investor Relations Brasil Phone: +55 (11)