DisclaimerDisclaimerDisclaimerDisclaimer

This presentation contains forward-looking statements regarding theprospects of the business, estimates for operating and financial results, andthose regarding Cia. Hering's growth prospects. These are merely projectionsand, as such, are based exclusively on the expectations of Cia. Heringmanagement concerning the future of the business and its continued accessto capital to fund the Company’s business plan. Such forward-lookingstatements depend, substantially, on changes in marketstatements depend, substantially, on changes in marketconditions, government regulations, competitive pressures, the performanceof the Brazilian economy and the industry, among other factors and risksdisclosed in Cia. Hering’s filed disclosure documents andare, therefore, subject to change without prior notice.

AGENDA

Highlights

OperationalPerformancePerformance

Economic-Financial

Performance

Outlooks

MAIN INDICATORSMAIN INDICATORSMAIN INDICATORSMAIN INDICATORS

Total Gross Revenue Total Gross Revenue Total Gross Revenue Total Gross Revenue totaled R$ 233.8 million R$ 233.8 million R$ 233.8 million R$ 233.8 million in the 1Q10 (+38.2%) (+38.2%) (+38.2%) (+38.2%)

SameSameSameSame----store sales in the HS chain:store sales in the HS chain:store sales in the HS chain:store sales in the HS chain: + 26.6%

TwoTwoTwoTwo----digit sales growth for the three brandsdigit sales growth for the three brandsdigit sales growth for the three brandsdigit sales growth for the three brands

EBITDA up 126.5% (R$ 47.2 million EBITDA up 126.5% (R$ 47.2 million EBITDA up 126.5% (R$ 47.2 million EBITDA up 126.5% (R$ 47.2 million with 24.3% of EBITDA margin)

HighlightsHighlightsHighlightsHighlights

Cash Gross Margin Cash Gross Margin Cash Gross Margin Cash Gross Margin of 49.5%49.5%49.5%49.5% with expansion of 6.2 p.p. 6.2 p.p. 6.2 p.p. 6.2 p.p.

OTHER HIGHLIGHTSOTHER HIGHLIGHTSOTHER HIGHLIGHTSOTHER HIGHLIGHTS

Opening of 2 Hering Stores in the 1Q10

Same Store Sales Same Store Sales Same Store Sales Same Store Sales of 14.4% 14.4% 14.4% 14.4% in the PUC chainPUC chainPUC chainPUC chain

2010 CapEx: R$ 58.7 million

1Q10 1Q10 1Q10 1Q10 ends up with Free Cash Flow Free Cash Flow Free Cash Flow Free Cash Flow of +R$ 77.0 million+R$ 77.0 million+R$ 77.0 million+R$ 77.0 million

AGENDA

Highlights

OperationalPerformancePerformance

Economic-Financial

Performance

Outlooks

169,2 169,2 169,2 169,2

233,8 233,8 233,8 233,8 38,2%38,2%38,2%38,2%

Gross Gross Gross Gross RevenueRevenueRevenueRevenue (R$ million)

7,7%7,7%7,7%7,7%

Sales PerformanceSales PerformanceSales PerformanceSales Performance

228,5

4,9

5,3

Gross Revenue with 38.2%38.2%38.2%38.2% growth in the 1Q101Q101Q101Q10, reaching RRRR$ $ $ $ 228.5 228.5 228.5 228.5 millionmillionmillionmillion, , , , with highlight for the domesticdomesticdomesticdomestic marketmarketmarketmarket (+ 39.1%).(+ 39.1%).(+ 39.1%).(+ 39.1%).

39,1%39,1%39,1%39,1%

7,7%7,7%7,7%7,7%

Total

1Q09 1Q10

164,3

228,5

Domestic Market Foreign Market

R$ R$ R$ R$ 132.5132.5132.5132.5 R$ R$ R$ R$ 191.7191.7191.7191.7

Sales Performance Sales Performance Sales Performance Sales Performance (cont.)(cont.)(cont.)(cont.)

1Q091Q091Q091Q09 1Q101Q101Q101Q10

+44.7%+44.7%+44.7%+44.7%

DomesticDomesticDomesticDomestic MarketMarketMarketMarket (R$ million)

R$ R$ R$ R$ 16.316.316.316.3

R$ R$ R$ R$ 11.211.211.211.2

Two-digit sales growth for the threethreethreethree brandsbrandsbrandsbrands in the chainchainchainchain storesstoresstoresstores(+44.2%) (+44.2%) (+44.2%) (+44.2%) as well as in the multibrandmultibrandmultibrandmultibrand retailretailretailretail (+ 34.6%) (+ 34.6%) (+ 34.6%) (+ 34.6%) withhighlight for HeringHeringHeringHering, which represented 84% 84% 84% 84% ofofofof thethethethe salessalessalessales....

R$ R$ R$ R$ 19.419.419.419.4

R$ R$ R$ R$ 12.712.712.712.7

+

+

+19.1%+19.1%+19.1%+19.1%

+13.0%+13.0%+13.0%+13.0%

84%84%84%84% 9%9%9%9%

6%6%6%6%

DistributionDistributionDistributionDistribution ChainChainChainChain ---- Hering Hering Hering Hering StoreStoreStoreStore andandandand PUCPUCPUCPUC

314314314314

366366366366

420420420420

DistributionDistributionDistributionDistribution ChainChainChainChain EvolutionEvolutionEvolutionEvolution

61

73

80

22

15

15

8

In comparison with the 1Q09, 47 HS 47 HS 47 HS 47 HS and 12 PUC 12 PUC 12 PUC 12 PUC wereopened, maintaining the estimate of 325 HS for 2010325 HS for 2010325 HS for 2010325 HS for 2010.

* estimated

Total

1Q09 1Q10 2010*

231278

325

Total Hering Store Total PUC Foreign - Franchised

Hering Hering Hering Hering StoreStoreStoreStore ChainChainChainChain PerformancePerformancePerformancePerformance

Hering Hering Hering Hering StoreStoreStoreStore PerformancePerformancePerformancePerformance 1Q091Q091Q091Q09 1Q101Q101Q101Q10 Chg.Chg.Chg.Chg.

NumberNumberNumberNumber ofofofof StoresStoresStoresStores 231 231 231 231 278 278 278 278 20,3%20,3%20,3%20,3%

Franchise 194 238 22,7%

Own 37 40 8,1%

Sales (R$ Sales (R$ Sales (R$ Sales (R$ thousandthousandthousandthousand) ) ) ) (1)(1)(1)(1) 96.363 96.363 96.363 96.363 137.363 137.363 137.363 137.363 42,5%42,5%42,5%42,5%

Franchise 76.324 108.970 42,8%

Own 20.039 28.392 41,7%

Same Store Sales growthSame Store Sales growthSame Store Sales growthSame Store Sales growth (2)(2)(2)(2) 19,0%19,0%19,0%19,0% 26,6%26,6%26,6%26,6% 7,6 p.p.7,6 p.p.7,6 p.p.7,6 p.p.

Sales Sales Sales Sales AreaAreaAreaArea ((((m²m²m²m²)))) 29.893 29.893 29.893 29.893 35.478 35.478 35.478 35.478 18,7%18,7%18,7%18,7%

9

SSS SSS SSS SSS ofofofof +26.6% +26.6% +26.6% +26.6% in the Hering Store chain in the 1Q10 is mainly dueto the increase in check-outs (+40.2%).(+40.2%).(+40.2%).(+40.2%).

Sales Sales Sales Sales AreaAreaAreaArea ((((m²m²m²m²)))) 29.893 29.893 29.893 29.893 35.478 35.478 35.478 35.478 18,7%18,7%18,7%18,7%

Sales (R$ per Sales (R$ per Sales (R$ per Sales (R$ per m²m²m²m²)))) 3.236 3.236 3.236 3.236 3.878 3.878 3.878 3.878 19,8%19,8%19,8%19,8%

CheckCheckCheckCheck----OutsOutsOutsOuts 1.273.230 1.273.230 1.273.230 1.273.230 1.785.688 1.785.688 1.785.688 1.785.688 40,2%40,2%40,2%40,2%

UnitsUnitsUnitsUnits 2.896.772 2.896.772 2.896.772 2.896.772 3.985.723 3.985.723 3.985.723 3.985.723 37,6%37,6%37,6%37,6%

UnitsUnitsUnitsUnits per per per per CheckCheckCheckCheck----OutOutOutOut 2,28 2,28 2,28 2,28 2,23 2,23 2,23 2,23 ----2,2%2,2%2,2%2,2%

AverageAverageAverageAverage Sales Sales Sales Sales PricePricePricePrice (R$)(R$)(R$)(R$) 33,27 33,27 33,27 33,27 34,46 34,46 34,46 34,46 3,6%3,6%3,6%3,6%

Average Sales Ticket (R$)Average Sales Ticket (R$)Average Sales Ticket (R$)Average Sales Ticket (R$) 75,68 75,68 75,68 75,68 76,92 76,92 76,92 76,92 1,6%1,6%1,6%1,6%(1) The amounts reffered to the sales to final costumers. (sell out concept)

(2) Compared to the same period of the previous year

AGENDA

Highlights

OperationalPerformancePerformance

Economic-Financial

Performance

Outlooks

Gross Gross Gross Gross ProfitProfitProfitProfit (R(R(R(R$ $ $ $ millionmillionmillionmillion) ) ) ) andandandand Gross Gross Gross Gross MarginMarginMarginMargin (%)(%)(%)(%)

Gross Gross Gross Gross ProfitProfitProfitProfit andandandand Gross Gross Gross Gross MarginMarginMarginMargin

41.6%41.6%41.6%41.6%

47.5%47.5%47.5%47.5%

43.4%43.4%43.4%43.4%

49.5%49.5%49.5%49.5%

+5.9 +5.9 +5.9 +5.9 p.pp.pp.pp.p....

+6.2 +6.2 +6.2 +6.2 p.p.p.p.p.p.p.p.

11

Gross Margin CashGross Margin

Highlight for the Gross Gross Gross Gross ProfitProfitProfitProfit CashCashCashCash (without depreciation) which rose 6.2 p.p. when compared to 2009 and reached 49.5% in the 1Q10.

41.6%41.6%41.6%41.6%

1Q09 1Q10

57,2 57,2 57,2 57,2

92,4 92,4 92,4 92,4

0000 0000

61,6%61,6%61,6%61,6%

15,2%15,2%15,2%15,2%

24,3%24,3%24,3%24,3%

126,5%126,5%126,5%126,5%

EBITDA EBITDA EBITDA EBITDA andandandand EBITDA EBITDA EBITDA EBITDA MarginMarginMarginMargin

EBITDA (REBITDA (REBITDA (REBITDA (R$ $ $ $ millionmillionmillionmillion) ) ) ) andandandand EBITDA EBITDA EBITDA EBITDA MarginMarginMarginMargin (%)(%)(%)(%)

+9.1 +9.1 +9.1 +9.1 p.pp.pp.pp.p....

1Q09 1Q10

20,8 20,8 20,8 20,8

47,2 47,2 47,2 47,2

126,5%126,5%126,5%126,5%

12

EBITDA EBITDA EBITDA EBITDA reachedreachedreachedreached R$ R$ R$ R$ 47.2 47.2 47.2 47.2 millionmillionmillionmillion in the 1Q10, with +126.5%+126.5%+126.5%+126.5% growthand EBITDA EBITDA EBITDA EBITDA MarginMarginMarginMargin ofofofof 24.3%24.3%24.3%24.3% (+ 9.1 p.p.).

EBITDA Margin

8,8

4,4

EBITDA EBITDA EBITDA EBITDA ---- 1Q10 Variation1Q10 Variation1Q10 Variation1Q10 Variation

2,4%

4,5%

2,3%

EBITDA Margin EBITDA Margin EBITDA Margin EBITDA Margin ---- 1Q10 Variation1Q10 Variation1Q10 Variation1Q10 Variation

EBITDA EBITDA EBITDA EBITDA andandandand EBITDA EBITDA EBITDA EBITDA MarginMarginMarginMargin (cont.)(cont.)(cont.)(cont.)

EBITDA (REBITDA (REBITDA (REBITDA (R$ $ $ $ millionmillionmillionmillion) ) ) ) andandandand EBITDA EBITDA EBITDA EBITDA MarginMarginMarginMargin (%) (%) (%) (%) –––– QuarterQuarterQuarterQuarter VariationVariationVariationVariation

EBITDA 1Q09

Sales Growth

Deduction Tax Incentives

Net Gross Margin (ex

TI and ded.)

SG&A Dilution

EBITDA 1Q10

20,8

8,0

0,2 5,4

47,2

EBITDA Margin 1Q09

Deduction Tax Incentives

Net Gross Margin (ex

TI and ded.)

SG&A Dilution

EBITDA Margin 1Q10

15,2%

0,1% 2,4%

24,3%

13

EBITDA EBITDA EBITDA EBITDA andandandand EBITDA EBITDA EBITDA EBITDA MarginMarginMarginMargin expansionexpansionexpansionexpansion are explained, mainlydue to the (i) salessalessalessales growthgrowthgrowthgrowth and (ii) increase in the Gross Gross Gross Gross ProfitProfitProfitProfitCashCashCashCash (exluding tax incentives and deductions).

Net Net Net Net ProfitProfitProfitProfit

23,5%23,5%23,5%23,5%

15,415,415,415,4%%%% ----8.1 8.1 8.1 8.1 p.p.p.p.p.p.p.p.

Net Net Net Net ProfitProfitProfitProfit (R(R(R(R$ $ $ $ millionmillionmillionmillion) ) ) ) andandandand Net Net Net Net MarginMarginMarginMargin (%)(%)(%)(%)

1Q09 1Q10

32,3 32,3 32,3 32,3 29,9 29,9 29,9 29,9

14

The Net Profit in the 1Q09 was positively affected by the reversion of reversion of reversion of reversion of R$ 22 million derivatives provision in Dec/08R$ 22 million derivatives provision in Dec/08R$ 22 million derivatives provision in Dec/08R$ 22 million derivatives provision in Dec/08. If this effect is not considered, the Net Profit growth would have reached 191.4% growth.191.4% growth.191.4% growth.191.4% growth.

7,3%7,3%7,3%7,3%

Margem Líquida

0,7 0,3

2,3

0,7

6,5 6,5 6,5 6,5

11,3 11,3 11,3 11,3

73,0%73,0%73,0%73,0%

CapExCapExCapExCapEx

ByByByBy ActivityActivityActivityActivity (R$ (R$ (R$ (R$ millionmillionmillionmillion) ) ) )

1Q09 1Q10

3,2

9,6

0,8 0,1 2,3

Industry IT Other Stores

15

RRRR$ $ $ $ 11.3 11.3 11.3 11.3 millionmillionmillionmillion were invested, mainly in the productionproductionproductionproduction areaareaareaarea (R$ (R$ (R$ (R$ 9.6 9.6 9.6 9.6 millionmillionmillionmillion) ) ) ) to updateupdateupdateupdate ourourourour unitsunitsunitsunits....

CashCashCashCash FlowFlowFlowFlow

CashCashCashCash FlowFlowFlowFlow (R(R(R(R$ $ $ $ milllionmilllionmilllionmilllion))))

Cash Flow Cash Flow Cash Flow Cash Flow ---- ConsolidatedConsolidatedConsolidatedConsolidated 1Q091Q091Q091Q09 1Q101Q101Q101Q10 Chg.Chg.Chg.Chg.

EBITDAEBITDAEBITDAEBITDA 20.846 20.846 20.846 20.846 47.226 47.226 47.226 47.226 26.380 26.380 26.380 26.380

No cash items 156 286 130

Current IR&CS (2.765) (8.575) (5.810)

Cash Flow CapexCash Flow CapexCash Flow CapexCash Flow Capex 20.881 20.881 20.881 20.881 26.589 26.589 26.589 26.589 5.708 5.708 5.708 5.708

Increase in trade accounts receivable 11.021 29.616 18.595

16

The Free Cash Flow reached RRRR$ $ $ $ 55.4 55.4 55.4 55.4 millionmillionmillionmillion in the 1Q10 due to theEBITDA EBITDA EBITDA EBITDA growthgrowthgrowthgrowth and the reductionreductionreductionreduction onononon thethethethe accountsaccountsaccountsaccounts receivablereceivablereceivablereceivable....

Increase in trade accounts receivable 11.021 29.616 18.595

Increase in inventories (17.191) (11.673) 5.518

Increase in accounts payable to suppliers 13.591 11.281 (2.310)

Increase in taxes payable 7.166 2.228 (4.938)

Others 6.294 (4.863) (11.157)

CapExCapExCapExCapEx (6.516)(6.516)(6.516)(6.516) (10.093)(10.093)(10.093)(10.093) (3.577)(3.577)(3.577)(3.577)

Free Cash FlowFree Cash FlowFree Cash FlowFree Cash Flow 32.602 32.602 32.602 32.602 55.433 55.433 55.433 55.433 22.831 22.831 22.831 22.831

IndebtednessIndebtednessIndebtednessIndebtedness

Net Net Net Net DebtDebtDebtDebt (R$ (R$ (R$ (R$ millionmillionmillionmillion)))) Short Short Short Short TermTermTermTerm x x x x LongLongLongLong TermTermTermTerm

4,64,64,64,6 3,53,53,53,5

----0,70,70,70,7 0,10,10,10,1 ----0,20,20,20,21,61,61,61,6

Short Term; 30,3%

Long Term; 69,7%

201,3 184,6

* Last 12 months EBITDA

Gross Gross Gross Gross DebtDebtDebtDebt = = = = R$ R$ R$ R$ 58.4 58.4 58.4 58.4 millionmillionmillionmillion

17

Net Debt / EBITDA*

The management maintains the strategy focused on low leverage low leverage low leverage low leverage and new financing new financing new financing new financing with lower interest rate lower interest rate lower interest rate lower interest rate and longer termslonger termslonger termslonger terms.

2005 2006 2007 2008 2009 1T10

184,6

-33,4 11,0 -25,1-77,0

1Q10

AGENDA

Highlights

OperationalPerformancePerformance

Economic-Financial

Performance

Outlooks

HeringHeringHeringHering

• New growth plan – 405 405 405 405 storesstoresstoresstores until 2012 (+42 in 2011 and +38 in 2012)

• HighHighHighHigh perceivedperceivedperceivedperceived valuevaluevaluevalue products and the concept ““““RetailRetailRetailRetail is is is is detaildetaildetaildetail””””;

• Continuity of the marketing campaign with new approach: “Eu sou/eu uso “Eu sou/eu uso “Eu sou/eu uso “Eu sou/eu uso Hering” (“I Hering” (“I Hering” (“I Hering” (“I amamamam / I / I / I / I wearwearwearwear Hering”)Hering”)Hering”)Hering”)

• Actions with the Hering Hering Hering Hering StoreStoreStoreStore CardCardCardCard and Hering Hering Hering Hering WebstoreWebstoreWebstoreWebstore.

OutlooksOutlooksOutlooksOutlooks

Children market with opportunitiesopportunitiesopportunitiesopportunities to be exploredexploredexploredexplored::::

• MultibrandMultibrandMultibrandMultibrand retailretailretailretail growth

• FlagshipFlagshipFlagshipFlagship storestorestorestore projectprojectprojectproject for HeringHeringHeringHering KidsKidsKidsKids (2H10)

• AssortmentAssortmentAssortmentAssortment adjustmentadjustmentadjustmentadjustment focused on each brandbrandbrandbrand targettargettargettarget publicpublicpublicpublic

dzarmdzarmdzarmdzarm....

• Continuity of the repositioningrepositioningrepositioningrepositioning planplanplanplan:

• Casual jeans Casual jeans Casual jeans Casual jeans concept

• Marketing CampaignCampaignCampaignCampaign

• DistributionDistributionDistributionDistribution channel qualification.19

INVESTOR RELATION TEAMINVESTOR RELATION TEAMINVESTOR RELATION TEAMINVESTOR RELATION TEAM

Fabio HeringFabio HeringFabio HeringFabio Hering – CEO and IR DirectorFrederico de Aguiar OldaniFrederico de Aguiar OldaniFrederico de Aguiar OldaniFrederico de Aguiar Oldani – Finance Director

Karina Karina Karina Karina KoerichKoerichKoerichKoerich – IR ManagerGracila Gracila Gracila Gracila Camargo LopesCamargo LopesCamargo LopesCamargo Lopes – IR Analyst

FIRB – Financial Investor Relations BrasilTel. +55 (11) 3897-6857

E-mail: ligia.montagnani@firb.com

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

Website: www.ciahering.com.br/ir