Grendene is one of the world´s largest footwear producer, 26,000 employees, installed production capacity of 250 million pairs/year, gross revenues of R$1,104.2 mn and 83.5 million pairs sold in 1H14 (Gross revenues of R$2,711.4 mn and 216.2 million pairs sold in 2013). Localization It has 13 footwear factories, one PVC plant and 1 molding unit, distributed in the state of Ceará, in three cities: in Sobral (8), Fortaleza (2) and Crato (1); in the state of Rio Grande do Sul, in two cities: Farroupilha (2) and Carlos Barbosa (molding); and in the State of Bahia: Teixeira de Freitas (1) and two concept stores “Galeria Melissa” – São Paulo and New York – and Showroom Melissa in Milan. Competitive advantages . Verticalization (mold-making and PVC) and in-house technology. Scale, efficiency, speed and versatility in production. Brands with strong personality, and wide recognition; products that are benchmarks in the footwear sector. Innovation in product, and distribution; concentrated use of media; and globalization of our own proprietary brands. Speed and flexibility in increase of installed capacity, for non-significant investment. Solid capital structure. Listed on the Novo Mercado at the BM&FBOVESPA. Good payer of dividends. Products . Grendene produces footwear oriented to domestic market and exports, in the feminine, masculine, kids and mass consumption segments (Income group: A, B, C, D and E). New products/year: 1017 in 2013. World presence: more than 90 countries. Main footwear brands Own brands: Melissa, Rider, Grendha, Ipanema, Ilhabela, Zaxy, Cartago, Pega Forte, Grendene Kids and Baby Third-party brands and licensings: Ivete Sangalo, Paula Fernandes, Shakira, Mormaii, Guga Kuerten, Senninha, Hot Wheels, Barbie, Hello Kitty, Spiderman and the main Disney´s licenses. TOG is the furniture brand of A3NP Indústria e Comércio de Móveis S.A. – Grendene’s subsidiary. Main Financial and Economic Indicators Var.% Var.% (R$ mn) 2012 2013 1H13 1H14 2013/2012 1H14/1H13 Gross Revenues 2,324.5 2,711.4 16.6% 1,108.3 1,104.2 (0.4%) Domestic 1,845.4 2,146.9 16.3% 879.5 833.5 (5.2%) Exports 479.1 564.5 17.8% 228.8 270.7 18.3% Net Sales 1,882.3 2,187.3 16.2% 886.9 890.8 0.4% Gross Profit 882.1 993.7 12.6% 390.3 368.7 (5.5%) Gross margin 46.9% 45.4% (1.5 p.p.) 44.0% 41.4% (2.6 p.p.) EBIT 362.8 399.2 10.0% 145.2 111.3 (23.4%) EBIT margin 19.3% 18.3% (1.0 p.p.) 16.4% 12.5% (3.9%) EBITDA 394.5 435.9 10.5% 162.5 133.6 (17.7%) EBITDA margin 21.0% 19.9% (1.1 p.p.) 18.3% 15.0% (3.3 p.p.) Net Income 429.0 433.5 1.1% 168.5 168.9 0.2% Net margin 22.8% 19.8% (3.0 p.p.) 19.0% 19.0% - EPS (R$ per share) 1.42 1.44 1.1% 0.56 0.56 0.4% Sales Volume (million pairs) 185.0 216.2 16.8% 93.2 83.5 (10.4%) Gross sales revenue – Market % 20.6% 24.5% 13 14 H H 79.4% 75.5% 1 1 Domestic market Exports Domestic market Exports Sales volume – Market % 26.5% 29.8% 13 14 70.2% H H 73.5% 1 1 Domestic market Exports Domestic market Exports Economic and Operating Highlights in 1H14 . Net revenue up 0.4% - R$890.8 mn (R$886.9 mn in 1H13); . Distribution of dividends (1H14) R$71.9 mn (R$0.2395 per share); . Grendene accounted for 39.1% of the total volume of Brazilian footwear exports. Stock Capital . Capital paid-in base on June 30, 2014: R$1,231,301,604.46; . Registered shares: 300,720,000 common shares (400,000 common shares in treasury); . Price in June 30, 2014: R$13.81. Headquarters Av. Pimentel Gomes, 214, Expectativa, Sobral, CE, 62040-125, Brazil Telephone: (5588) 3613-1001 / Fax: (5588) 3613-1002 Administrative office Av. Pedro Grendene, 131, Volta Grande, Farroupilha, RS, 95180-000, Brazil Telephone: (5554) 2109-9000 / Fax: (5554) 2109-9988 Investor relations Telephone: (5554) 2109-9011 / Fax: (5554) 2109-9991 / Email: [email protected] Warning Information in this Fact Sheet may contain statements about expected future conditions. It reflects the current perception and outlook of the company´s management on the development of the business, based on expected developments in the macroeconomic environment, industry conditions, the company´s performance and financial results. Any changes in such expectations and factors may cause results to be materially different from those currently expected and would reflect several risks and uncertainties. .