Vulcabras Azaleia : Presentation 3Q17

Earnings Release - 3Q17‌‌‌‌‌‌‌‌‌‌‌ Conference call: 11/16/2017 at 10:00 (GMT)

This presentation contains statements that can represent expectations about future events or results. These statements are based on certain suppositions and analyses made by the company in accordance with its experience, with the economic environment and market conditions, and expected future developments, many of which are beyond the company's control. Important factors could lead to significant differences between real results and the statements on expectations about future events or results, including the company's business strategy, Brazilian and international economic conditions, technology, financial strategy, developments in the footwear industry, conditions of the financial market, and uncertainty on the company's future results from operations, plans, objectives, expectations and intentions - among other factors. In view of these aspects, the company's results could differ significantly from those indicated or implicit in any statements of expectations about future events or results.

In 3Q17, sales totaled R$ 343.9 million, an increase of 11.5% compared to the same period of the

previous year. R$ 135.7 million

in 3Q17,

increase of 21.3% against 3Q16.

39.5% in 3Q17, increase of 3.2 percentage points

R$ 65.9 million in 3Q17 compared to a income of R$

19.8 million in 3Q16.

R$ 84.0 million in 3Q17, 49.9% increase against 3Q16 and EBITDA margin 24.4%. Sales (Net Revenue)

Gross Income

Gross Margin

Net Income

EBITDA

Pairs and pieces thousand	3Q17 Share 3Q16 Share Var. % % % 3Q17/3Q16	9M17 Share 9M16 Share Var. % % % 9M17 / 9M16
Athletic footwear	4,018 61.2% 3,471 53.3% 15.8%	11,157 60.4% 9,512 55.7% 17.3%
Women footwear	1,592 24.3% 2,070 31.8% -23.1%	4,293 23.2% 4,836 28.3% -11.2%
Other footwear and other	788 12.0% 841 12.9% -6.4%	2,573 13.9% 2,367 13.9% 8.7%
Clothing	162 2.5% 126 1.9% 28.1%	449 2.4% 370 2.2% 21.2%
Total	6,560 100.0% 6,509 100.0% 0.8%	18,472 100.0% 17,086 100.0% 8.1%

3,471

Gross revenue (pairs and pieces K)

4,018

3Q16

3Q17

9,512

Gross revenue (pairs and pieces K)

11,157

9M16

9M17

2,070

1,592

841

788

126

162

4,836

4,293

2,367 2,573

370

449

Athletic	Women	Other footwear	Clothing		Athletic	Women	Other footwear	Clothing
footwear	footwear	and other	footwear	footwear	and other