Celebrating 10 Years at BM&FBOVESPA

Despite this, Lojas Renner S.A. went in the opposite direction and kept growing in 2015, regarding the size of its operation (number of stores) and its results (read more on pages 47 to 52). This growth has been intense, continuous and, if compared to its local and global peers, above the market average. Market Comparison (CAGR 2011-2015) RENNER 17.1% 13.6% 5.7% Net Revenue Total Adjusted EBITDA 20.4% 18.4% 13.2% 10.9% local peers global peers 5.0% -9.1% Gross Profit 14.5% 9.6% 9.0% local peers global peers Net Result 12.5% 10.3% 2.7% introduction Main sectoral impacts ENVIRONMENTAL The life cycle of fashion retail products is extensive, going from the extraction of raw materials to the lifetime duration of the product and its degradation in the environment. The disposal of the pieces is done by end users and usually happens in landfills that, in the big cities, do not absorb the amount of waste generated daily by society in a timely manner. To contribute to the reduction of this impact, Lojas Renner S.A. seeks to promote attentive and strict environmental management, especially regarding its waste management and mapping of its greenhouse gas emissions, stimulating a more sustainable chain and reducing the consumption of natural resources in its stores. Find out more about the environmental management of the Company and initiatives such as the Sustainability in the Jeans Chain Project, on page 87, and the construction of sustainable stores in Manufactured Capital, on pages 65 to 68. 11.8% SOCIAL With the growing demand for agility, efficiency and cost control, in a chain with various levels of outsourcing and involvement of many suppliers throughout the cycle, controlling compliance with labor rights has been a challenge for the large retailers in the sector. In Brazil and throughout the world, the large fashion retail industry seeks to forcefully act in monitoring their chains to promote, throughout its supply network, fair and regular conditions. Lojas Renner S.A. is radically contrary to irregular work, represented by child labor, slave labor or similar conditions, and the informal management of human resources. This theme is of vital importance to the sustainability of the Company's operations, since such violations cause profound social and economic damage to society and damage the business reputation. Therefore, since 2013, Lojas Renner is a signatory of the Pact for the Eradication of Slave Labor, doing a strict inspection of all its productive chain. In this context, since 2013, Company is also signatory of the UN Global Compact, which aims to mobilize the business community to adopt good business practices related to Human Rights, Labor Relations, Environmental Preservation and Combating Corruption in all its forms. local peers global peers 10.2% 7.2% -1.0% N/A* local peers global peers Source: companies releases *Non applicable - from R$ 177 MM in 2011 to -R$ 336 MM in 2015 The Company believes that this historical path reflects the accuracy of its business strategy, the appreciation for its differentials and the continuous search for the evolution of the pillars that support the business. In this sense, the Company promotes a careful management of operational, economic, social and environmental aspects that may affect its support and the sector, in order to take preventive and proactive measures, with responsibility for human and labor rights and for the environment, mitigating risk and generating value to its stakeholders. ECONOMIC The Brazilian retail sector, in general, is impacted by a high employee turnover rate, which means human resource management teams have to handle a high volume of terminations and new hires every year, which consequently brings economic impacts with the increase in personnel expenses. This factor happens as the sector is the entry door for many professionals to the labor market who, through time and the evolution of their training, eventually end up leaving for other careers. The turnover rate in the retail sector in 2015, according to the Brazilian Institute of Retail Business and Consumer Market (Ibevar) reached 30%, and, if looked specifically at the stores - excluding distribution centers and administrative areas - it reached 46%. At Renner, the turnover rate in 2015 was 42.90%, showing a significant decrease compared to 2014, which was 50.80%. Renner seeks to mitigate this impact by keeping its employees engaged with the business. The engagement index of 87% in 2015, the highest since the annual research started, reflects an employee framework committed to improving the results achieved by the Company, directly influencing Renner's growth rate. Learn more about the Engagement Management on page 54, in Human Capital. In 2015, the Brazilian retail sector was also impacted by tax changes on the payroll and by the devaluation of the Brazilian Real against other currencies, especially the dollar. Both factors have initiated in 2015, however the main effects to products costs and to the Company's operating expenses will occur in 2016. In such a context, Lojas Renner works in a consistent manner to train its employees in order to increase productivity and develop its supply chain to minimize these impacts on the Company's results. 13

View entire presentation