Cia Hering : Notice to Shareholders - Payment of Interest on Capital

NATIONAL CORPORATE TAXPAYERS REGISTER No. (CNPJ) 78.876.950/0001-71

PUBLICLY-HELD COMPANY

Blumenau - Santa Catarina

NOTICE TO SHAREHOLDERS PAYMENT OF INTEREST ON EQUITY

We hereby notify the shareholders that the Board of Directors of Cia. Hering ("Company"), at a meeting held on December 21, 2018, with the approval of the Annual Shareholders Meeting, approved the distribution of interest on equity in the amount of Thirty-Nine Million, Nine Hundred and Ninety-Five Thousand, Six Hundred and Sixty-Three Reais, and Twenty-Four Cents (R$39,995,653.24), equal to the amount of R$0.2478 per share. The income tax withheld at source shall be withheld pursuant to the applicable law, except for the shareholders exempt from said taxation. The amount paid by way of interest on equity shall be attributed to the mandatory dividends of fiscal year 2018. The payment of the interest on equity shall be made to the shareholders on January 15, 2019, using as base date for calculation the share status of January 3, 2019, except for the treasury shares. The shares of the Company shall be traded "ex-rights to interest on equity" as from January 4, 2019.

The interest on equity shall be paid through the Depositary Institution of the shares issued by the Company - Banco Itaú S.A., upon automatic credit in the account of the shareholders who have informed to Banco Itaú their Taxpayer ID number (CPF/CNPJ) and their respective bank account. For shareholders who have not provided such information, Banco Itaú shall send the respective notice of payment, which shall be presented in one of its branches, together with information relating to the subject, for the respective credit to be processed, from the 3rd business day after the updating of the data records. For shareholders who have their shares deposited with B3, the interest on equity shall be paid through their custodians.

São Paulo (SP), December 21, 2018.

Rafael Bossolani

CFO and Investor Relations Officer

Phone: [phone]/4805 email:[e-mail]