ITR Quarterly Information Form 6/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1. Statement of Capital 1.

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1 ITR Quarterly Information Form 6/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Table of Contents Company Information Statement of Capital 1 Dividends Paid 2 Parent Company Financial Statements Statement of Financial Position Assets 3 Statement of Financial Position Liabilities 4 Statement of Operations 5 Statement of Comprehensive Income 6 Statement of Cash Flows 7 Statement of Changes in Equity 01/01/2016 to 06/30/ /01/2015 to 06/30/ Statements of Value Added 10 Financial Statements Statement of Financial Position Assets 11 Statement of Financial Position Liabilities 12 Statement of Operations 13 Statement of Comprehensive Income 14 Statement of Cash Flows 15 Statement of Changes in Equity 01/01/2016 to 06/30/ /01/2015 to 06/30/ Statements of Value Added 19 Comments on the Company s Performance 20 Notes to Financial Statements 34 Reports and Statements Unqualified Report on Special Review 57

2 ITR Quarterly Information Form 6/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Company Information / Statement of Capital Number of Shares (in thousands) Current Quarter 06/30/2016 Paid-up Capital Common 349,863 Preferred 0 Total 349,863 Treasury Shares Common 23,223 Preferred 0 Total 23,223 PAGE: 1 of 57

3 ITR Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Company Information / Dividends Paid Event Approval Type Date of Payment Type of Share Class of Share Amount per Share (Reais / Share) Board of Directors Meeting Special Shareholders Meeting 03/05/2013 Dividend 04/03/2013 Common /21/2014 Dividend 12/23/2014 Common PAGE: 2 of 57

4 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Financial Position Assets (R$ thousand) Code Description Current Quarter 06/30/2016 Total assets 1.01 Current assets Cash and cash equivalents Financial investments Financial investments at fair value Certificates of Deposit Accounts receivable Trade accounts receivable Trade accounts receivable Other accounts receivable Accounts receivable from shopping malls Other receivables Inventories Taxes recoverable Current taxes recoverable Taxes recoverable Prepaid expenses Other current assets Other Derivative financial instruments 1.02 Non-current assets Long-term assets Accounts receivable Other accounts receivable Deferred taxes Prepaid expenses Prepaid expenses Other non-current assets Derivative financial instruments Investments Shareholding interests Interests in subsidiaries Property and equipment Property and equipment in operation Construction in progress Intangible assets Intangible assets Previous Year 12/31/2015 PAGE: 3 of 57

5 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Financial Position Liabilities (R$ thousand) Code Description Current Quarter 06/30/2016 Total liabilities 2.01 Current liabilities Payroll and labor charges Trade accounts payable Domestic trade accounts payable Foreign trade accounts payable Tax liabilities Loans and borrowings Loans and borrowings In local currency In foreign currency Debentures Finance lease Other liabilities Liabilities with related parties Other Other accounts payable Sundry advances Other accounts payable with derivatives 2.02 Non-current liabilities Loans and borrowings Loans and borrowings In local currency Debentures Finance lease Other liabilities Other Other accounts payable Provisions Other provisions Provision for contingencies 2.03 Equity Paid-up capital Capital reserves Profit reserves Treasury shares Previous Year 12/31/ Retained earnings/ accumulated losses -56,559-19, Equity valuation adjustments PAGE: 4 of 57

6 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Operations (R$ thousand) Code Description Current Quarter 04/01/2016 to 06/30/ Revenue from sales of goods and/or services YTD Current Year 01/01/2016 to 06/30/2016 Same Quarter Previous Year 04/01/2015 to 06/30/ Cost of goods and/or services sold -76, Gross profit 3.04 Operating expenses/income -82, Selling expenses -62, General and administrative expenses -33,781 YTD Previous Year 01/01/2015 to 06/30/ Other operating expenses , Other operating expenses , Equity in the earnings of subsidiaries 3.05 Earnings before financial result and taxes 3.06 Financial result -41, Financial income Financial expenses -61, Earnings before taxes on income 3.08 Income and social contribution taxes Deferred 3.09 Result from continuing operations 3.11 Profit/loss for the period 3.99 Earnings per share (Reais/Share) Basic earnings per share Common shares Diluted earnings per share Common shares PAGE: 5 of 57

7 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Comprehensive Income (R$ thousand) Code Description Current Quarter 04/01/2016 to 30/06/ Profit/loss for the period YTD Current Year 01/01/2016 to 06/30/2016 Same Quarter Previous Year 04/01/2015 to 06/30/2015 YTD Previous Year 01/01/2015 to 06/30/ Other comprehensive income Comprehensive income for the period PAGE: 6 of 57

8 ITR Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Cash Flows Indirect Method (R$ thousand) Code Description YTD Current Year 01/01/2016 to 06/30/2016 YTD Previous Year 01/01/2015 to 06/30/ Net cash from operating activities -25, Cash generated from operations Earnings before taxes -61, Depreciation and amortization Net cost from property and equipment and intangible assets written-off Provision for labor and tax risks Interest expenses -1, Exchange rate variation on financing -17, Allowance for doubtful accounts Stock option plan Present value adjustments of finance lease Provision for inventory losses -1, NDF expenses -16, Equity in the earnings of subsidiaries -28,034-39, Changes in assets and liabilities -8,728-97, Trade accounts receivable -6,753-25, Inventories -33,737-18, Taxes recoverable -19,689-10, Prepaid expenses -12, Other receivables Judicial deposits Trade accounts payable -11, Tax liabilities -22,354-8, Labor liabilities Other accounts payable -3,487-12, Sundry advances 6.02 Net cash from investing activities Increase in property and equipment -6,663-26, Increase in intangible assets -21,106-19, Redemption of securities Financial investments Proceeds from property and equipment and intangible assets sold 6.03 Net cash from financing activities Loans and debentures, net Payment of bank financing Interest paid -53,596-56, Financial lease Treasury shares -44, (Loss)/gain from sale of treasury shares Dividends paid -2, Swap derivatives received Dividends received 6.05 Increase (decrease) in cash and cash equivalents -68, Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period PAGE: 7 of 57

9 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Changes in Equity - 01/01/2016 to 06/30/2016 (R$ thousand) Code Description Paid-up Capital Capital Reserves, Options Granted and Treasury Shares Profit Reserve Retained Earnings and Accumulated Losses Other Comprehensive Income 5.01 Opening balances 1,494, ,742, Adjusted opening balances 1,494, ,742, Capital transactions with partners Options granted recognized 5.05 Total comprehensive income Profit/loss for the period Other comprehensive income Adjustment to financial instruments 5.07 Closing balances 1,494, ,706,006 Equity PAGE: 8 of 57

10 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Changes in Equity - 01/01/2015 to 06/30/2015 (R$ thousand) Code Description Paid-up Capital Capital Reserves, Options Granted and Treasury Shares Profit Reserve Retained Earnings and Accumulated Losses Other Comprehensive Income 5.01 Opening balances 1,538,390 1,803, Adjusted opening balances 1,538,390 1,803, Capital transactions with partners Treasury shares acquired 5.05 Total comprehensive income 16, , Profit (loss) for the period 16,729 16, Other comprehensive income Adjustment to financial instruments Closing balances 1,493,726 14, ,776,351 Equity PAGE: 9 of 57

11 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Parent Company Financial Statements / Statement of Value Added (R$ thousand) Code Description YTD Current Year 01/01/2016 to 06/30/2016 YTD Previous Year 01/01/2015 to 06/30/ Revenues Sales of goods, products and services Other revenues Allowance for /reversal of doubtful accounts Inputs acquired from third parties Cost of goods sold and services rendered Materials, energy, outsourced services and others -32,442-36, Other -8,582-12, Gross value added 7.04 Retentions -47,753-41, Depreciation, amortization and depletion -47,753-41, Net value added produced by the entity 7.06 Value added received through transfer Equity in the earnings of subsidiaries Financial income 7.07 Total value added to distribute 7.08 Distribution of value added Employees Direct compensation Benefits Government Severance Fund for Employees (FGTS) Taxes, fees and contributions Federal State Local Value distributed to providers of capital Interest Rental Value distributed to shareholders -37, Retained Earnings/ Accumulated Losses for the Period -37,001 PAGE: 10 of 57

12 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Financial Position Assets (R$ thousand) Code Description Current Quarter 06/30/2016 Total assets 1.01 Current assets Cash and cash equivalents Financial investments Financial investments at fair value Certificates of Deposit Accounts receivable Trade accounts receivable Trade accounts receivable - related parties Trade accounts receivable Other accounts receivable Inventories Taxes recoverable Current taxes recoverable Taxes recoverable Prepaid expenses Other current assets Other Derivative financial instruments 1.02 Non-current assets Long-term assets Accounts receivable Other accounts receivable Deferred taxes Deferred income and social contribution taxes Recoverable taxes Prepaid expenses Other non-current assets Derivative financial instruments Property and equipment Property and equipment in operation Construction in progress Intangible assets Previous Year 12/31/2015 PAGE: 11 of 57

13 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Financial Position Liabilities (R$ thousand) Code Description Current Quarter 06/30/2016 Total liabilities 2.01 Current liabilities Payroll and labor charges Trade accounts payable Domestic trade accounts payable Foreign trade accounts payable Tax liabilities Loans and borrowings Loans and borrowings In local currency In foreign currency Debentures Finance lease Other liabilities Liabilities with related parties Debits with other related parties Other Minimum mandatory dividend payable Other accounts payable Sundry advances Other accounts payable with derivatives Tax financing and incentives 2.02 Non-current liabilities Loans and borrowings Loans and borrowings In local currency Debentures Previous Year 12/31/ Finance lease Other liabilities Other Other accounts payable Tax financing and incentives Trade accounts payable Deferred taxes Deferred income and social contribution taxes Provisions Other provisions Provision for contingencies 2.03 equity Paid-up capital Capital reserves Profit reserves Treasury shares Retained earnings/ accumulated losses -56,559-19, Equity valuation adjustments PAGE: 12 of 57

14 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Operations (R$ thousand) Code Description Current Quarter 04/01/2016 to 06/30/2016 YTD Current Year 01/01/2016 to 06/30/2016 Same Quarter Previous Year 04/01/2015 to 06/30/2015 YTD Previous Year 01/01/2015 to 06/30/ Revenue from sales of goods and/or services 3.02 Cost of goods and/or services sold 3.03 Gross profit 3.04 Operating expenses/income Selling expenses -80, General and administrative expenses -48, Other operating revenue Other operating expenses -4, Earnings before financial result and taxes 3.06 Financial result -41, Financial income Financial expenses -62, Earnings before taxes on income Income and social contribution taxes Current -4,699-8,382-8, Deferred 3.09 Result from continuing operations 3.11 profit/loss for the period Attributed to Parent Company s partners 3.99 Earnings per share (Reais/Share) Basic earnings per share Common shares Diluted earnings per share Common shares PAGE: 13 of 57

15 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Comprehensive Income (R$ thousand) Code Description Current Quarter 04/01/2016 to 06/30/ profit/loss for the period YTD Current Year 01/01/2016 to 06/30/2016 Same Quarter Previous Year 04/01/2015 to 06/30/2015 YTD Previous Year 01/01/2015 to 06/30/ Other comprehensive income comprehensive income/loss for the period Attributed to Parent Company s partners PAGE: 14 of 57

16 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Cash Flows Indirect Method (R$ thousand) Code Description YTD Current Year 01/01/2016 to 06/ YTD Previous Year 01/01/2015 to 06/30/ Net cash from operating activities -10, Cash generated from operations Earnings before taxes -47, Depreciation and amortization Net cost of property and equipment and intangible assets written-off -1, Provision for labor and tax risks -19, Interest expenses Exchange rate variation -17, Allowance for doubtful accounts Provision for profit sharing Stock option plan Present value adjustment of finance lease Provision for losses with inventories -1, NDF gains/ losses -16, AVP Prodec Changes in assets and liabilities -50, Trade accounts receivable -22,236-30, Inventories -30,982-25, Taxes recoverable -19,218-9, Prepaid expenses -10, Other receivables Judicial deposits Trade accounts payable -7, Tax liabilities -22,188-12, Labor liabilities -13, Other accounts payable -6,212-24, Sundry advances Income tax and social contribution paid -8,423-9, Net cash from investing activities Increase in property and equipment Increase in intangible assets Redemption of securities Financial Investments Proceeds from property and equipment and intangible assets sold 6.03 Net cash from financing activities Net loans and debentures Payment of loans and debentures Interest paid Financial lease Treasury shares (Loss)/gain from sale of treasury shares -8,522-28,046-26,896-19,677-53,766-57,765-44, Dividends paid -2, Swap derivatives received 6.05 Increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period PAGE: 15 of 57

17 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Changes in Equity - 01/01/2016 to 06/30/2016 (R$ thousand) Code Description Paid-up Capital Capital Reserves, Options Granted and Treasury Shares Profit Reserves Retained Earnings and Accumulated Losses Other Comprehensive Income Equity Non-Controlling Interest Equity 5.01 Opening balances 268, Adjusted opening balances 268, Capital transactions with partners Options granted recognized 5.05 Total comprehensive income Profit/loss for the period Other comprehensive income Adjustments to financial instruments Closing balances 268,898 PAGE: 17 ofe 57

18 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Changes in Equity - 01/01/2015 to 06/30/2015 (R$ thousand) Code Description Paid-up Capital Capital Reserves, Options Granted and Treasury Shares Profit Reserves Retained Earnings and Accumulated Losses Other Comprehensive Income Equity Non-Controlling Interest Equity 5.01 Opening balances 268, Adjusted opening balances 268, Capital transactions with partners Capital increases 5.05 Total comprehensive income Profit/loss for the period Other comprehensive income Adjustments to financial instruments 5.07 Closing balances 268,898 PAGE: 18 ofe 57

19 ITR Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Financial Statements / Statement of Value Added (R$ thousand) Code Description YTD Current Year 01/01/2016 to 06/30/2016 YTD Previous Year 01/01/2015 to 06/30/ Revenues Sales of goods, products and services Other revenues Allowance for /reversal of doubtful accounts -1, Inputs acquired from third parties Cost of goods sold and services rendered Materials, energy, outsourced services and others -54,973-62, Other -12,312-12, Gross value added 7.04 Retentions -54,879-45, Depreciation, amortization and depletion -54,879-45, Net value added produced by the entity 7.06 Value added received through transfer Financial income Other 7.07 Total value added to distribute 7.08 Distribution of value added Employees Direct compensation Benefits Government Severance Fund for Employees (FGTS) Taxes, fees and contributions Federal State Local Value distributed to providers of capital Interest Rental Value distributed to shareholders -37, Retained Earnings/ Accumulated Losses for the Period -37,001 PAGE: 19 of 57

20 2T16 São Paulo, Brasil, 11agosto de A Restoque Comércio e Confecções de Roupas S.A. ( Companhia ) (LLIS3), empresa do setor de vestuário e acessórios de alto padrão no Brasil, apresenta seus resultados do segundo trimestre de 2016 (2T16)de acordo com as normas internacionais de contabilidade (IFRS). Maiores detalhes acerca das demonstrações financeiras podem ser encontradas no site da Companhia ( São Paulo, Brazil, May 9, Restoque Comércio e Confecções de Roupas S.A. ( Company ) (LLIS3), a company of the highstandard clothing and accessories industry in Brazil, presents its results for the first quarter of 2016 (1Q16) according to the international financial reporting standards (IFRS). Further details regarding the financial statements may be found on the Company s website ( x

21 2Q16 São Paulo, Brazil, August 10, Restoque Comércio e Confecções de Roupas S.A. ( Company ) (LLIS3), leading company in the premium clothing and apparel retail industry in Brazil, presents its results for the second quarter of 2016 (2Q16) and first six months of 2016 (1H16) according to the international financial reporting standards (IFRS). Figures compared to the second quarter 2015 (2Q15) and the first six months of 2015 (1H15), or as indicated. Highest quarterly Gross Margin (58.2%) and EBITDA (21.9%) since 3Q % Improvement in the operating cash flow after investments +R$ 38.6 million of cash after investments (1H16 vs 1H15) Results Conference Call Date: August 11, 2016 (Thursday) Time: noon thirty (UTC-3) Phone for connection: +55 (11) Access code: Restoque Phone for replay: +55 (11) (code: Restoque) Conference Call in Portuguese with simultaneous translation into English Phone for connection: +55 (11) (646) Access code: Restoque CEO: Paulo José Marques Soares IRO: Rafael Camargo Investor Relations Phone.: +55 (11) Rua Othão, n. 405, CEP , São Paulo, SP, Brazil Aligned to inventory levels and product novelties frequency improvement, the 2Q16 results showed a gross margin (58.2%) and EBITDA margin (21.9%) similar to those of 2Q15 (-0.3p.p. in both cases). Sales, gross margin and EBITDA trend improvement, compared to the first quarter of 2016, surpassing the quarter seasonality (+14.7% sales increase, +5,3p.p. gross margin, and +6,5p.p. EBITDA vs 1Q16). Achievement of the highest margins since 3Q15, overcoming 2015 Christmas (+0,8p.p. gross margin and +1,9p.p. EBITDA vs 4Q15) and denoting company s improvement potential through internal operational enhancements. In addition, after recycling the inventory surplus of 2015 during 1Q16, the discount channels presented +35.9% in sales vs 2Q15, with a significant margin improvement vs 1Q16. Despite gross sales (-2.9%) and EBITDA (-5.9%), still impacted by inadequate inventory levels during the beginning of the quarter, the company successfully increased its operating cash flow after investments, reaching R$ 37.1 million (+8.6%). Our net revenue was negatively impacted by an increased payroll burden. In thousand of R$ 2Q15 2Q16 %Change 2Q16/ 2Q15 1H15 1H16 %Change 1H16/ 1H15 Gross Sales (excluding returns) 388, , % 773, , % Net Operating Revenue 1 296, , % 592, , % Le Lis Blanc 2 117, , % 239, , % Bo.Bô 25,862 20, % 47,349 38, % John John 26,306 32, % 56,941 62, % Rosa Chá 8,599 7, % 16,180 17, % Dudalina Brands 3 101,837 98, % 202, , % Estoque 4 16,252 22, % 30,702 41, % Gross Profit 173, , % 348, , % Gross Margin 58.5% 58.2% -0.3 p.p. 58.8% 55.7% -3.1 p.p. EBITDA 65,960 62, % 142, , % EBITDA Margin 22.2% 21.9% -0.3 p.p. 24.1% 18.9% -5.2 p.p. Net Income 1,748 (12,794) n.a 16,727 (37,001) n.a % of Net Revenue 0.6% -4.5% n.a 2.8% -7.0% n.a (1) The net operating revenue of 2016 was impacted by the 1.5% additional deduction due to the increased INSS burden as compared to 2015 (2) Le Lis Blanc s net revenue also includes brand Noir s net revenue; (3) Represents all Dudalina brands; (4) Estoque channel refers to the Company s physical and e-commerce stores that sell past collections of the brands.

22 2Q16 Highlights In this 2Q16, we highlight the Company s margin recovery compared to recent results, showing a significant gross margin improvement, contrary to the negative trend which started in the 3Q15, aligned to inventory levels normalization. 70% 65% Figure 01: Gross margin quarterly evolution (%) 60% 59,0% 58,5% 57,6% 57,4% 58,2% 55% 52,9% 50% 45% 40% 1Q15 1T15 2Q15 2T15 3Q15 3T15 4Q15 4T15 1Q16 1T16 2Q16 2T16 The Company s gross margin increased by +5.3p.p. vs 1Q16, recovering a level close to the 2Q15 (-0.3p.p.) and overcoming a cycle of 3 consecutive quarters below 58.0%. Additionally, it is worth mentioning that the 2Q16 was also affected by issues related to the product offer, and the performance was progressively better along the months, in line with the progressive inventory level recovery. Figure 02: Retail gross margin 16 vs 15 (p.p.) Figure 03: Sales increase 2Q vs 1Q (%) 14,7% 5,2% 6,7% 0,1% 1,0% -4,7% Apr May Jun 2Q14 2Q15 2Q16 In parallel with a better margin performance, sales trend also had a significant improvement, and although it has not yet overcome the 2Q15 (-2.9%), the 2Q16 increased 14.7% vs1q16, surpassing the seasonality of the second quarter (increase of +1.0% in 2015 and +6.7% in 2014). Therefore, we are confident that the operating problems faced in 2015 were correctly diagnosed and the Company has potential to resume sales and margins growth, even in an adverse macro environment.

23 2Q16 In the wholesale channel, we also experienced a significant sales trend improvement, achieving an adjusted growth of +2.5% vs 2Q15, excluding sales to online discount stores. Considering channel total sales, there was a decrease of 7.5%. The positive impact of retail and the wholesale channels also reflected in the discount channel operation, which, after a cycle of inventory renewal during the 1Q16, reaching its lowest historical margin, the channel was able to sustain its growth rate (35.9% in the 2Q16 against 35.0% in the 1Q16), with a significant margin improvement vs 1Q16. It is also worth emphasizing our commitment to expenses rationalization and cash generation, even in an inflationary and negative macro environment, we attained positive results in both items. The sales, general and administrative expenses (SG&A), excluding depreciation and amortization, were reduced by -4.6%, maintaining its proportion to the net revenue and not affecting the EBITDA margin, exposed only to the gross margin effects. As a result, the EBITDA was R$ 62.0 million (-5.9%) in the 2Q16, with a margin of 21.9% (-0.3 p.p.). Concerning cash generation, 89.6% of the EBITDA was converted into operating cash flow, evidencing the resilience of the Company s business model. In spite of the negative pressure on sales, the Company had an operating cash flow after investments of 8.6% above that of the 2Q15 and, although gross sales were 8.7% below those of the first half of 2015, in the 1H16 the generation of cash after investments was R$ 38.6 million above that of the previous year. 4

24 2Q16 Operating Summary The table below shows the main operating indicators of the Company: Combined Company 2Q15 2Q16 Change % 2Q16/ 2Q15 1H15 1H16 %Change 1H16/ 1H15 Total number of company stores % % Total sales area of company stores (m²) 59,686 59, % 59,686 59, % Average sales area of company stores (m²) 59,364 59, % 58,562 59, % Sales per Square Meters (R$/m²) 3,084 2, % 5,953 5, % Average ticket % % SSS -2.1% -5.9% n.a -2.3% -10.5% n.a (1, 2) Le Lis Blanc Total number of company stores % % Total sales area of company stores (m²) 37,411 36, % 37,411 36, % Average sales area of company stores (m²) 37,444 36, % 37,249 36, % Sales per Square Meters (R$/m²) 2,781 2, % 5,566 4, % Average ticket % % SSS -1.0% -8.7% n.a 0.7% -15.0% n.a Dudalina S.A Total number of company stores % % Total sales area of company stores (m²) 4,634 5, % 4,634 5, % Average sales area of company stores (m²) 4,614 5, % 4,591 5, % Sales per Square Meters (R$/m²) 6,704 7, % 11,201 11, % Average ticket % % SSS -8.2% 8.8% n.a -12.0% 2.9% n.a Bo.Bô Total number of company stores % % Total sales area of company stores (m²) 3,252 3, % 3,252 3, % Average sales area of company stores (m²) 3,252 3, % 3,234 3, % Sales per Square Meters (R$/m²) 6,053 5, % 11,386 10, % Average ticket 1,244 1, % 1,249 1, % SSS 4.6% -9.2% n.a 2.5% -9.5% n.a John John Total number of company stores % % Total sales area of company stores (m²) 11,207 10, % 11,207 10, % Average sales area of company stores (m²) 11,045 10, % 10,867 11, % Sales per Square Meters (R$/m²) 1,953 1, % 3,869 3, % Average ticket % % SSS -6.1% -3.2% n.a -11.0% -4.7% n.a Rosa Chá Total number of company stores % % Total sales area of company stores (m²) 3,008 3, % 3,181 3, % Average sales area of company stores (m²) 2,233 3, % 2,621 3, % Sales per Square Meters (R$/m²) 2,233 1, % 4,184 3, % Average ticket % % SSS % n.a % n.a (1) From the 4Q13, the operating information of Le Lis Blanc includes brand Noir, Le Lis. Therefore, of the 112 Le Lis Blanc stores in the 2Q16, 36 refer to Noir, Le Lis operations, i.e., 31 insertions of brand Noir, Le Lis ( corners ) in Le Lis Blanc stores, 4 hybrid stores (where the attached sale area of Noir, Le Lis has its own entrance and shop window) and one stand-alone store). (2) Of the total 36,741-m 2 sales area of Le Lis Blanc Stores, 34,614 m 2 refer to the brand Le Lis Blanc and 2,074m 2 to Noir, Le Lis hybrid stores, and insertions of Noir, Le Lis corners in the Le Lis Blanc stores, and 53 m² refer to 1 Noir stand-alone store. 5

25 2Q16 Stores and Sales Area In 2016, the Company continues reducing the number of stores openings and refurbishment, focusing on the Capex control with cash preservation. By the end of 2Q16, the average sales area per owned store was 181.6m 2 with 328.0m 2 as the average area of the stores of brand Le Lis Blanc (including Noir, Le Lis), 63.8m 2 as the average area of Dudalina stores, 76.0m 2 as the average area of Bo.Bô stores, 175.2m 2 as the average area of John stores, and 117.6m 2 as the average area of Rosa Chá stores. Gross revenue (excluding returns) Gross sales in the 2Q16 totaled R$377.4 million, a 2.9% decrease in regard to the 2Q15. Gross sales in the 1H16 totaled R$ million, a 8.7% decrease in regard to the 1H15. Graph 04: Gross sales by channel (R$ million) Own stores In the 2Q16, gross sales dropped 3.7% with same stores sales (SSS) of -5.9%. This performance is connected to a substantial reduction in the availability of new products during the first quarter of the year, which was progressively improved during the 2Q16, but started from a lower level. Thus, although we still face a negative performance in comparison to 2015, the 2Q16 clearly shows an improvement in relation to the result of the first quarter, with an revenue increase of 14.7%, overcoming the seasonality of the previous years (+1.0% growth in 2015 and a +6.7% growth in 2014). 6

26 2Q16 Multibrand stores Adjusted sales for the 2Q16 increased +2.5%, excluding revenues for online discount stores. The Company decided to restrict sales to discount clients due to the low inventory levels, favoring the offer to our main clients. Considering total sales, the channel achieved R$ 99.8 million in comparison to R$ million in the 2Q15, decreasing 7.5%. In spite of the 9.2% drop vs 2Q15, the sales of the Dudalina brands also had a trend improvement in comparison with the 1Q16, which presented a decline of 22.8%. We believe that the initiatives for the implementation of the Full Closet Provider" concept, with the product portfolio expansion have potential to improve sales. Other channels Comprising the Estoque channel (physical and online stores that sell products from past collections), franchises and ecommerce, this channel increased sales by 18.1%. The Estoque stores grew 35.9% in regard to 2Q15, with a significant higher margin in relation to the 1Q16. Gross Profit The gross profit in the 2Q16 was R$ million (-5.1%), representing a 58.2% gross margin (-0.3p.p.). Therefore, the Company s gross margin increased +5.3 p.p. compared to the 1Q16, overcoming a cycle of 3 consecutive quarters with a gross margin below 58.0%. We think that this result reflects the gradual improvement in the products availability but were still affected by the poor performance in the beginning of the 2Q16. The gross profit in the 1H16 was R$ million (-15.0%), representing a 55.7% gross margin (-3.1p.p.). Figure 05: Gross Profit and Gross Margin (in R$ million and %) 7

27 2Q16 Sales, General and Administrative Expenses (SG&A) The sales, general and administrative expenses, not including depreciation and amortization, totaled R$ million. Such expenses compared to the total amount of R$ million in the 2Q15 were reduced by 4.6% and represented 36.6% of the net operating revenue (stable in regard to the 2Q15). We highlight that this was achieved despite the highly inflationary scenario of Brazil and despite a negative sales result. In the first half of 2016, SG&A expenses, not including depreciation and amortization, amounted to R$ million. Such expenses, compared to the total expenses of R$ million in the 1H15, were reduced by 4.8% and represent 37.2% of the net operating revenue (35.0% in the 1H15). EBITDA and EBITDA Margin As a result, the EBITDA for 2Q16 reached R$ 62.0 million (-5.9%), with a 21.9% margin. As explained earlier, we are committed to recover our novelties pace, products availability and the quality of our collections. With these initiatives, we expect to improve our gross profit. We believe that our efforts to reduce SG&A combined with to the synergies from the integration with Dudalina will further generate benefits when we regain our sales and gross profit levels. In the 1H16 our EBITDA achieved R$ million (-29.6%), with an 18.9% margin (-5.2 p.p.). Financial results, amortization and depreciation The financial result showed an increase in expenses from R$ 41.9 million in 2Q15 to R$ 54.9 million in 2Q16, a growth of 31.0% (increment of R$ 13.0 million). An impact of R$ 6.8 million was caused by the poor performance of NDFs to protect imports in foreign currency. Additionally, the 2Q16 was also impacted by an increase in the Company s indebtedness, CDI rate and debt costs, with a rise of R$ 5.3 million in interest expenses. In the year to date, the financial result showed an increase in expenses from R$ 82.1 million in the 1H15 to R$ 93.1 million. Expenses with depreciation and amortization raised from R$ 22.8 million in the 2Q15 to R$ 25.8 million in the 2Q16, and from R$ 43.2 million in the 1H15 to R$ 53.0 million in the 1H16. Net Profit (Loss) In the 2Q16, the net loss was R$ 12.8 million, compared to the profit of R$ 1.7 million in the 2Q15. In the 1H16, the net loss was R$ 37.0 million, compared to the profit of R$ 16.7 million in the 1H15. 8

28 2Q16 Investments During the 2Q16, R$ 18.6 million were invested, a 31.2% reduction in comparison to R$ 27.0 million in the 2Q15. These investments refer to the maintenance and renovation of existing stores and back office, as well as investments in product development and intangibles. The 2Q16 reduction is a result of fewer stores opened and refurbished. We intend to keep the reduced pace of stores opening and focus on productivity improvement of our current stores. In the 1H16, R$ 32.9 million were invested, a 29.3% reduction as compared to the R$ 46.5 million spent in the 1H15. Cash flow The adjusted operating cash flow totaled R$ 55.7 million during the 2Q16, representing an 89.7% conversion of the EBITDA for the quarter and reaching cash generation after an investment of R$ 37.1 million (+8.6%). Such gain was positively impacted by the smaller number of stores opened and stores renovations in 2016, according to the strategy for cash preservation and focus on profitability of the already established channels. 2Q15 2Q16 Change R$ 2Q16/ 2Q15 Change % 2Q16/ 2Q15 1H15 1H16 Var R$ 1H16/ 1H15 Change % 1H16/ 1H15 In thousand of R$ EBITDA 65,960 62,048 (3,912) -5.9% 142, ,379 (42,184) -29.6% Current Income tax and Social Contribution (5,670) (4,719) (9,991) (8,423) Δ Receivable 1,723 (18,112) (30,419) (22,236) Δ Inventories 8,491 (19,456) (25,041) (30,982) Δ Suppliers 3,578 51,158 (7,094) 50,503 Δ Others (12,941) (15,267) (64,693) (58,949) Adjusted operating cash flow 61,141 55,652 (5,489) -9.0% 5,326 30,292 24, % Capex (27,019) (18,595) 8, % (46,484) (32,877) 13, % Adjusted operating cash flow after investments 34,122 37,057 2, % (41,158) (2,585) 38, % Adjusted operating cash flow after investments 34,122 37,057 2, % (41,158) (2,585) 38, % Financial transactions (9,544) (12,247) (16,039) (15,476) Financial Investments 6,490-4,806 35,247 Retirement of securities 6,462-50,443 - Accounting operating cash flow after investments 37,530 24,810 (12,720) -33.9% (1,948) 17,186 19,135 n.a Indebtedness The consolidated Net Debt of 2Q16 remained stable, and at the end of the quarter it was R$ million. In thousand of R$ 2Q15 1Q16 2Q16 Cash and cash equivalents 251, , ,911 Loans and financings, short-term (552,263) (499,792) (491,419) Loans and financings, long-term (438,642) (530,620) (417,817) Net Debt (739,643) (747,510) (761,325) 9

29 2Q16 About Restoque Restoque is the leading designer and specialty retailer of women s premium fashion apparel and accessories in Brazil. We currently have 7 brands: Le Lis Blanc, Dudalina, Bo.Bô, John John, Individual, Base e Rosa Chá. Our customers are mainly women and men in the higher income brackets, of a broad age group. We develop a wide product line for a variety of occasions and lifestyles, designing our products. We currently sell our products through company stores, online sales and multi-brand stores. We project our image through all aspects of our business, including our premium products, the shopping experience in our stores, and our superior customer service. Dudalina gained notoriety by the quality of its shirts, its main product, combining impeccable cut and a differentiated material. Focused in a high-income public, Dudalina is synonymous of high standards and premium products, whose technology was developed over more than 57 years of history Legal Disclaimer The statements hereby made about future events are subject to risks and uncertainties. Such statements are based on beliefs and suppositions of the Management and information to which the Company has presently access. Statements about future events include information on current intentions, beliefs, or expectations of the Company. The exceptions regarding the statements and information about the future also include information about the possible or presumable operational results, as well as statements that have the following words, or similar expressions, before or after them, or included therein: believes, may, will, continues, expects, anticipates, intends, plans, estimates. The statements and information about the future are not guarantee of performance. They involve risks, uncertainties and suppositions because they refer to future events, depending, therefore, on circumstances that may occur or not. The future results and the creation of value to the shareholders may significantly differ from those expressed or suggested by the statements regarding the future. Many factors that will determine these results and values are beyond the Company s control or prevision ability. 10

30 2Q16 Balance Sheet () - Assets In thousand of R$ 2Q15 % of Total 1Q16 % of Total 2Q16 % of Total Change % 2Q16/ 2Q15 Change % 2Q16/ 1Q16 Current assets Cash and cash equivalents 203, , , (27.2) (34.3) Accounts receivable from clients 143, , , Inventories 326, , , (8.5) 7.0 Recoverable taxes 25, , , Financial derivative instruments 14, , (100.0) (100.0) Prepaid expenses 17, , , (51.7) (18.9) Other accounts receivable 23, , , (44.3) (15.4) Total current assets 755, , , (12.2) (11.6) Noncurrent assets Long-term assets Judicial deposits 3, , , (12.6) Tax credits 14, , , Prepaid expenses 1, (100.0) - Recoverable taxes (63.4) (11.8) Fixed assets 439, , , (9.0) (2.3) Financial Assets 32, (100.0) - Financial derivative instruments (100.0) (100.0) Intangible 1,894, ,889, ,892, (0.1) 0.1 Total noncurrent assets 2,386, ,361, ,365, (0.9) Total Assets 3,141, ,111, ,028, (3.6) (2.7) 11

31 2Q16 Balance Sheet () - Liabilities In thousand of R$ 2Q15 % of Total 1Q16 % of Total 2Q16 % of Total Change % 2Q16/ 2Q15 Change % 2Q16/ 1Q16 Current liabilities Loans and financing 329, , , (1.2) 12.7 Debenture 222, , , (25.5) (21.4) Accounts payable to suppliers 133, , , Tax liabilities 30, , , (4.0) (21.6) Labor liabilities 47, , , Tax financing and tax incentives 4, , , Dividends payable (100.0) - Other accounts payable 29, , , (10.9) (1.3) Capital lease , Financial derivative instruments , ,044.8 Other advances (14.6) Total current liabilities 796, , , Noncurrent liabilities Long-term liabilities Loans and financing 222, , , (21.3) Debenture 215, , , (47.6) (21.1) Provision f or contingencies 84, , , (27.6) (5.0) Accounts payable to suppliers (100.0) - Tax financing and tax incentives 22, , , (28.6) (4.7) Other accounts payable 1, (100.0) - Capital lease 15, , , (6.9) (2.1) Income tax and social contribution taxes 5, , , (1.4) (0.3) Total noncurrent liabilities 567, , , (9.3) (18.5) Shareholders equity Capital stock 268, , , Capital reserve 1,678, ,679, ,679, Treasury shares (184,661) (5.9) (185,319) (6.0) (185,319) (6.1) Reserve fund from prof it 14, (100.0) - Retained earnings - - (43,766) (1.4) (56,559) (1.9) AAC (663) (0.0) (528) (0.0) (376) (0.0) (43.3) (28.8) Total shareholders equity 1,776, ,718, ,706, (4.0) (0.7) Total Liabilities and Shareholders Equity 3,141, ,111, ,028, (3.6) (2.7) 12

32 2Q16 Cash Flow () In thousand of R$ 1H15 1H16 From operating activities Income before income and social contribution taxes 15,380 (47,595) Reconciliation of income before income and social contribution taxes to net cash provided by operating activities 113, ,236 Depreciation and amortization 45,056 54,879 Fixed assets and Intangible w rite-off 400 (1,638) Non deliverable forw ard expense (16,005) 28,087 Provision f or contingencies (338) (19,547) Interest expenses 59,826 68,405 Foreign exchange variation on financings 21,868 (17,235) Bad debts 1, Variable compensation provision 2,168 - Stock options plan - 4 Interest expense on capital lease Provision for inventory losses (1,230) - Ajusted Present Value - PRODEC - (843) Changes in assets and liabilities (139,841) (50,825) Accounts receivable from clients (30,419) (22,236) Inventories (25,041) (30,982) Recoverable taxes (9,837) (19,218) Prepaid expenses (10,530) 243 Related parties accounts payable 4,623 2,644 Judicial deposits (657) 497 Accounts payable to suppliers (7,094) 50,503 Tax liabilities (12,704) (22,188) Labor liabilities (13,029) 4,509 Income tax and social contribution tax (9,991) (8,423) Other accounts payable (24,643) (6,212) Advances (519) 38 Net cash generated from operating activities (10,713) 14,816 From investment activities Increase in fixed assets (28,046) (8,522) Sale of fixed assets 1,239 2,541 Increase in intangible assets (19,677) (26,896) Financial Investments 4,806 35,247 Retirement of securities 50,443 - Net cash used in investment activities 8,765 2,370 From financing activities with shareholders Loans and financing 205, ,095 Loans and financing repayments (380,763) (401,152) Paid interests (57,765) (53,766) Sw ap Derivatives Reception - 49,879 Treasury shares (44,064) - Gain on sale of treasury shares (600) - Capital leasing (699) (698) Dividends distribution (2,880) (258) Net cash used in financing activities with shareholders (281,669) (126,900) Increase (decrease) in cash and cash equivalents (283,617) (109,714) Cash and cash equivalents At the beginning of the period 445, ,625 At the end of the period 162, ,911 Increase (decrease) in cash and cash equivalents (283,617) (109,714) 13

33 2Q16 Income Statement In thousands of R$ 2Q15 % of Net Revenue 2Q16 % of Net Revenue Change % 2Q16/ 2Q15 1H15 % of Net Revenue 1H16 % of Net Revenue Change % 1H16/ 1H15 Net operating revenue 296, , (4.6) 592, , (10.3) COGS (122,041) (41.2) (117,413) (41.5) (3.8) (242,421) (40.9) (233,615) (43.9) (3.6) D&A COGS (936) (0.3) (934) (0.3) (0.2) (1,866) (0.3) (1,864) (0.4) (0.2) Gross Profit 173, , (5.1) 348, , (15.0) Operating revenues (expenses) Administrative and general expenses (37,888) (12.8) (38,447) (13.6) 1.5 (73,579) (12.4) (80,835) (15.2) 9.9 Selling expenses (68,674) (23.2) (65,670) (23.2) (4.4) (130,567) (22.0) (122,421) (23.0) (6.2) Depreciation and amortization expenses (22,779) (7.7) (25,833) (9.1) 13.4 (43,190) (7.3) (53,015) (10.0) 22.8 Financial Results (41,928) (14.1) (54,922) (19.4) 31.0 (82,130) (13.9) (93,095) (17.5) 13.4 Other revenues and expenses (2,009) (0.7) n.a (3,521) (0.6) 5, n.a EBT (19,641) (6.9) n.a 15, (47,594) (9.0) n.a Taxes 1, , , , Net income 1, (12,794) (4.5) n.a 16, (37,001) (7.0) n.a EBITDA 65, , (5.9) 142, , (29.6) 14

34 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 1 Operations Restoque Comércio e Confecções de Roupas S.A. (the "Company" or the parent company ), a publicly held company headquartered at Rua Oscar Freire, 1119 and 1121, in the city and state of São Paulo, was incorporated in Brazil on April 19, 1984 and is listed on the BM&FBOVESPA S.A. Securities, Commodities and Futures Exchange under the ticker symbol LLIS3. The purposes of the Company and subsidiary (jointly, consolidated or the Group ) include the development, exploration, trade, import and export of fashion apparel and accessories; and the trade of home decor items, hygiene articles and cosmetics. On June 30, 2016, the Group had 328 own stores (328 on December 31, 2015), of the following brands: Le Lis Blanc Deux, Dudalina, Bo.Bô - Bourgeois Bohême, John John, Noir Lelis, Individual and Rosa Chá; one multi-brand store, 22 outlets and 20 franchises, in addition to five manufacturing units in the states of Santa Catarina and Paraná and two distribution centers in the states of São Paulo and Santa Catarina. 2 Presentation of the financial statements The parent company and consolidated financial information for the quarter ended June 30, 2016 has been prepared in all relevant respects in accordance with CPC 21 and IAS 34 applicable to the preparation of interim financial information and presented in compliance with the standards issued by the Brazilian Securities and Exchange Commission applicable to the Quarterly Information Form. The Board of Directors Meeting held on August 10, 2016 gave its final approval to the issue of the financial information. 3 Basis of preparation of the parent company and consolidated financial information The parent company and consolidated financial information has been prepared pursuant to the accounting practices adopted in Brazil issued by the Accounting Pronouncements Committee (CPC), and in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The Company has adopted all standards, amendments to standards and interpretations issued by CPC, the IASB and other regulatory bodies that were in effect on June 30, The presentation of the parent company and consolidated statement of value added is required by Brazilian corporate law and by the accounting practices adopted in Brazil applicable to publicly held companies. The IFRS does not require the presentation of this statement. As a result, under the IFRS, this statement is reported as additional information, without prejudice to the set of financial statements. a) Basis of preparation This financial information has been prepared based on historic cost, which, in the case of financial assets available for sale and other financial assets and liabilities (including derivative instruments), is adjusted to reflect the measurement at fair value. The preparation of the financial statements requires the use of certain critical accounting estimates and the exercise of judgment by the Company s Management when applying the Group s accounting policies. Those areas requiring a high level of judgment and of greater complexity, as well as those areas in which 1

35 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated assumptions and estimates are significant for the financial statements, are reported in Note of the annual financial statements for the year ended December 31, Accounting practices used to prepare the financial statements The interim quarterly financial information was prepared in accordance with the accounting practices described in Note 2 to the annual financial statements for the year ended December 31, The interpretations and new or revised standards that came into force in 2016 did not exert an impact on the Company s quarterly information. 5 Cash and cash equivalents Parent Company 6/30/ /31/2015 6/30/ /31/2015 Cash 1,162 1,543 1,491 1,967 Banks domestic currency 1,935 1,994 3,900 3,646 Banks foreign currency Financial investments domestic currency (i) 119, , , , , , , ,625 (i) The financial investments mainly correspond to Certificates of Deposit indexed to the variation in the Interbank Certificates of Deposit (CDI) rate. The rates of interest on these investments vary between 97.25% and 101.3% of the CDI variation (95% 105% in 2015). There are no restrictive covenants regarding immediate redemption, nor are there any restrictions on early redemption; these investments are considered, therefore, as cash. 6 Financial investments Parent Company 6/30/ /31/2015 6/30/ /31/2015 Current - 35,247-35,247 Non-current Total financial investments - 35,247-35,247 Financial investments, which substantially corresponded to Certificates of Deposit remunerated by the CDI variation, with restrictive covenants for immediate redemption, were fully settled in the first quarter of

36 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 7 Accounts receivable Parent Company 6/30/ /31/2015 6/30/ /31/2015 Credit cards 4,716 10,074 5,353 11,012 Domestic corporate customers 63,772 51, , ,805 Foreign customers - - 5,592 7,162 Allowance for doubtful accounts (5,913) (5,822) (12,786) (12,040) 62,575 55, , ,939 The balance for corporate customers mainly represents sales to multi-brand stores, which are subject to selective credit analyses. At December 31, 2015 and June 30, 2016, the allowance for doubtful accounts was assessed for invoices over 180 days overdue. Below are the receivables, net of the allowance for doubtful accounts, by aging, at June 30, 2016: Parent Company 6/30/2016 6/30/2016 Falling due 56, ,634 Overdue 6,331 12,795 Up to 30 days 1,833 5,709 From 31 to 60 days 1,414 1,903 From 61 to 90 days 768 1,457 Over 90 days 2,316 3,726 62, ,429 8 Inventory Parent Company 6/30/ /31/2015 6/30/ /31/2015 Finished goods 181, , , ,979 Raw materials 12,722 7,713 42,999 31,840 Consignment stock 22,401 17,064 22,401 17,064 Products in progress - - 6,568 7,867 Imports in progress 1,587 1,402 2,346 11,197 Packaging 3,222 3,308 7,235 6,654 (-) Provision for losses (128) (128) (128) (128) 221, , , ,473 3

37 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 9 Investments Parent Company 6/30/ /31/2015 Investments 161, ,139 Acquisition adjustment 53,657 42,242 Goodwill on acquisition 1,603,957 1,603,957 1,819,343 1,811,338 Parent Company Balance at December 31, ,811,338 Equity in the earnings of subsidiaries recognized in profit or loss 16,619 Amortization related to the realization of fair value (i) 17,296 Deferred income tax on the realization of fair value (5,881) Dividends received (20,029) Balance at June 30, ,819,343 (i) Amortization of fair value allocated in the purchase price. 10 Property and equipment Item Pa ren t Com pa n y Balance on Balance on Additions Writeoffs n Depreciatio Transfer Furniture and Fixtures 96,879 1,213 - (10,192) ,080 Machinery and Equipment 14, (507) - 14,167 Facilities (79) Vehicles (40) (15) IT Equipment 5, (1,397) - 5,060 Leasehold improvements (i) 194,981 2,521 - (12,940) 1, ,782 Construction in progress 2,994 2, (1,437) 3,567 Property (ii) 13, (645) - 13,118 Other (iii) 5, (1,243) 37 4, ,886 6,663 (40) (27,018) - 314,491 4

38 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated (i) (ii) (iii) Relates to store improvements, which are depreciated according to the useful life or contractual term (considering renewals) whichever is the shortest. Since December 1, 2014, these assets have been depreciated over 15 years on average (previously, depreciation was over ten years) as a result of a useful life review. Relates to a contract entered into on September 30, 2011 by the parent company that has the characteristics of a finance lease. In the consolidated accounts it includes the subsidiary s manufacturing units. Relates to mannequins, hangers and related items. Depreciation is fully allocated to profit or loss, when incurred. On June 30, 2016, the Company had recorded financial charges amounting to R$264 (R$758 at December 31, 2015) relating to the improvements made to new stores during the investment phase. Interest and charges in profit or loss for the period are recorded in accordance with the period of depreciation, amortization or write-off of financed assets. The financial charges were based on the weighted average rate relating to debentures costs of 16.75% p.a. (14.8% p.a. at December 31, 2015). 11 Intangible assets Consolida t ed Item Balance on Balance on Additions Writeoffs n Depreciatio Transfer Land 21, ,361 Furniture and Fixtures 100,991 1,415 (5) (10,481) ,100 Machinery and Equipment 29, (170) (1,915) - 28,390 Facilities 1, (494) - 1,482 Vehicles (41) (98) IT Equipment 7, (7) (1,608) - 6,031 Leasehold improvements (i) 209,566 3,066 - (13,786) 1, ,066 Construction in progress 3,298 2, (1,437) 3,963 Property (ii) 42, (1,041) - 41,812 Other (iii) 5, (1,255) 37 4, ,434 8,522 (223) (30,678) - 400,055 Useful life Item Parent Com pany Balance on Writeoffs Balance on Additions Amortization Identifiable Collection development expenses (i) 18,331 17,169 - (16,402) 19,098 Identifiable Non-compete clause (ii) 4, (2,109) 3,192 Identifiable Software implementation and license (iii) 10,984 3,425 - (2,224) 12,185 Indefinite Trademarks and patents (iv) 16, ,337 Indefinite Goodwill (v) 74,695 - (680) - 74,015 Indefinite Goodwill due to future profitability (vi) 17, , ,953 21,106 (680) (20,735) 142,644 5

39 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated Consolidat ed Useful life Item Balance on Writeoffs Balance on Additions Amortization Identifiable Collection development expenses (i) 21,507 21,567 - (19,577) 23,497 Identifiable Non-compete clause (ii) 4, (2,109) 3,192 Identifiable Software implementation and license (iii) 12,701 3,648 - (2,515) 13,834 Indefinite Trademarks and patents (iv) 133, ,373 Indefinite Goodwill (v) 96,632 1,169 (680) - 97,121 Indefinite Goodwill due to future profitability (vi) 1,621, ,621,773 1,890,775 26,896 (680) (24,201) 1,892,790 (i) (ii) (iii) (iv) (v) (vi) Relates to specific expenditure incurred in the development of future collections to be amortized in their effective sales period (usually between six and 24 months). Relates to the goodwill separation from the Foose Cool Jeans Ltda. acquisition, partially amortized over 56 months for the customer portfolio and 60 months for the non-competition clause as of July The non-competition agreement signed in May 2014 with the former Chief Executive Officer of the Company is being amortized over 36 months. In May 2016, there was the addition of a non-competition agreement with a former stylist of the Company, amortized over 12 months. Amortization carried out over 60 months. In the parent company table, this relates substantially to the acquisition of Bo.Bô, John John and Rosa Chá brands. In the consolidated table, the Dudalina brand is included. Relates to prime location deposits paid to the owners of point-of-sale locations the useful life of which was classified by the Company as indefinite since recovery will occur upon contractual termination by the Company or the possible disposal, where applicable, of points-of-sale or impairment. The write-off basically relates to the sale of commercial points, the amount of which is nearly the carrying amount, due to store shutdown. In the parent company table, R$17,817 is composed of R$4,604 of goodwill due to expected future profitability generated on the acquisition of CF Comércio de Roupas Ltda., SH Recife Comércio de Roupas Ltda. and Marthi Comércio do Vestuário Ltda., acquired in 2009, and R$13,213 from the 2011 business combination arising from the acquisition of Foose Cool Jeans Ltda., which owns the John John brand. In the consolidated table, the amount includes goodwill from the acquisition of Dudalina S.A. Asset impairment testing As mentioned in Note 11 to the annual financial statements at December 31, 2015, the Company tests its assets with undefined useful life for impairment annually, using, initially, the value in use concept, through discounted cash flow models. If the amount is lower than the carrying amount, the net sale price is also calculated to determine if there is loss to record. No evidence of value loss in the quarter ended June 30, 2016 was identified by the Management. 6

40 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 12 Borrowings Parent Company 6/30/ /31/2015 6/30/ /31/2015 Loans domestic currency 621, , , ,938 Loans foreign currency - 155, , , , , ,793 Contract Fees Maturities Current Noncurrent Total on 6/30/2016 Loans - reais Working capital (parent company) % to 126.7% CDI Jul/16 to May/19 323, , ,977 Finep 3.9% p.a. Jan/21 1,821 6,417 8,238 Total - domestic currency (consolidated) 325, , ,215 The amounts recorded under non-current liabilities at June 30, 2016 mature as follows: Maturity Parent Company ,378 94, , , ,556 36, , , ,654 The working capital loans aim at raising funds for the Company's operations and are collateralized by a Company promissory note. Given that loans are indexed to the CDI interbank rate, the fair amounts approximate the book amounts. Covenants The Company has loans containing a covenant related to compliance with financial ratios, as follows: (a) The consolidated net debt/consolidated EBITDA ratio for 12 months must be equal to or less than three. Measurement is made annually (December) based on the respective audited consolidated financial statements. On December 31, 2015, the Company was in compliance with the aforementioned restrictive covenant. 7

41 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 13 Debentures The Board of Directors has approved fundraising by issuing debentures on different dates. All debentures issued are non-convertible into shares, registered, subordinated and book-entry, and can be summarized as follows: Second issuance Third issuance Fourth issuance Fifth issuance Total amount R$200,000 R$150,000 R$150,000 R$130,000 Guarantee Unsecured, without guarantee Unsecured, without guarantee Maturity June 2017 (five years) April 2016 (three years) Amortization Three annual installments as of the third year (ii) Single installment (iii) Unsecured, without guarantee June 2017 (three years) Single installment (iv) Unsecured, without guarantee April 2019 (three years) Nine annual installments as of the first year (ii) Remuneration 120% of CDI 115% of CDI 113% of CDI % of CDI Payment of remuneration Ratio covenant (i) Half-yearly Half-yearly Half-yearly Quarterly Net debt/consolidated EBITDA 3.0 Net debt/consolidated EBITDA 3.5 Net debt/consolidated EBITDA 3.0 Net debt/consolidated EBITDA 3.5 Balance at 6/30/2016* 43, , ,377 *Amounts excluding transaction costs (i) Measured annually on December 31. (ii) The Company has amortized the first and second annual installments and, on September 29, 2015, there was an early amortization of R$50,003. The remaining balance amounts to R$43,306 (iii) The third issuance was settled on April 30, (iv) On September 28, 2015, there was an early amortization totaling R$47,980. The remaining balance amounts to R$102,884. The long- and short-term maturities of debentures are as follows: Parent Company 6/30/ /31/2015 6/30/ /31/2015 Current 165, , , ,844 Non-current 113, , , , , , , ,096 The amounts recorded under non-current liabilities at June 30, 2016 mature as follows: Maturity Parent Company/ , , ,423 8

42 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 113,163 Funding transaction costs incurred decrease the balances of debentures, evidencing the net amount raised. These costs incurred are amortized by debentures maturity term. On June 30, 2016, the balance to be amortized totaled R$2,546. In the six-month period then ended, the Company amortized R$1,231 (R$1,569 in 2015). The effective interest rate for all the debentures in 2016 was % p.a. of the CDI (116% p.a. of the CDI in 2015). 14 Derivative financial instruments a) Receivables derivatives Parent Company 6/30/ /31/2015 6/30/ /31/2015 Current - 56,844-56,844 Non-current - 15,084-15,084-71,928-71,928 b) Payables derivatives Parent Company 6/30/ /31/2015 6/30/ /31/2015 Current 6,038-6,038 - Non-current ,038-6,038 - On June 30, 2016, the contracted amounts of derivative financial instruments are shown in the table below: Risk Factor Foreign currency (USD x CDI) (i) Foreign currency (USD) Financial Instrument Notional Value Fair Value Receivable Fair Value Payable Recognized in Profit or Loss Gains/(Losses) Recognized in Equity Hedge/swap (21,240) - Non-deliverable forward (NDF) 40,985-6,038 (6,847) - The purpose of the outstanding derivative is to hedge imports in foreign currency. (i) Operation settled in 2Q16, upon payment of the loan. 9

43 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 15 Trade accounts payable These are mainly represented by accounts payable from purchases of finished products, inputs used in production such as fabrics, trimming and accessories, and clothing production services. Parent Company 6/30/ /31/2015 6/30/ /31/2015 Domestic suppliers of raw materials and products 143,945 76, , ,036 Foreign suppliers of raw materials and products 10,009 4,889 19,082 24,277 Other suppliers 3,960 4,925 4,188 5, ,914 86, , , Tax liabilities Parent Company 6/30/ /31/2015 6/30/ /31/2015 PIS/COFINS 2,244 5,943 7,588 11,404 ICMS 7,647 26,258 13,081 31,782 IR/CSLL - - 7,028 7,509 Other ,320 1,217 10,177 32,531 29,017 51, Tax financing and incentives 6/30/ /31/2015 Refis - Law 9,964/00 5,878 7,068 Refis - Law 11,941/09 2,755 2,856 ICMS - PRODEC 21,302 20,990 Present value adjustment - PRODEC (2,907) (3,750) 27,028 27,164 Current 11,075 7,832 Non-current 15,953 19,332 27,028 27,164 The values under non-current are due between 2017 and The present value of the ICMS - PRODEC financing is calculated by discounting the future flow contracted at the SELIC interest rate in effect on the date of the financing. 10

44 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 18 Labor liabilities Parent Company 6/30/ /31/2015 6/30/ /31/2015 Payroll payable 6,613 7,157 11,134 11,132 Income tax on payroll 1,331 1,943 2,296 3,018 Social security liabilities - FGTS/INSS 5,390 5,995 7,000 8,125 Provision vacation pay, 13th-month pay and charges 18,391 11,860 28,513 19,374 Provision profit-sharing ,339 Other ,877 27,553 49,095 44, Other accounts payable Parent Company 6/30/ /31/2015 6/30/ /31/2015 Rent payable 9,215 12,023 11,098 14,507 Provision for rent on a straight-line basis 2,946 3,603 2,946 3,603 Goodwill payable 2,013 2,013 4,137 4,895 Other accounts payable 1, ,147 2,862 Commission for representatives - - 4,286 4,168 Accounts payable non-competition (ii) 1,387 2,178 1,387 2,178 16,807 20,294 26,001 32,213 (i) Relates to a non-competition agreement executed in May 2014 with the Company s former Chief Executive Officer, to be paid in 36 monthly installments and the addition, in May 2016, of the agreement entered into with a former stylist of the Company, to be paid in 12 monthly installments (Note 11). 20 Financial leases Parent Company 6/30/ /31/2015 6/30/ /31/2015 Current 1, , Non-current 14,322 14,927 14,322 14,927 15,387 15,707 15,387 15,707 The amounts recorded under non-current liabilities at June 30, 2016 mature as follows: 11

45 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated Maturity Parent Company/ , to ,305 14, Related Parties 21.1 Related-party transactions Related-party transactions include: Parent Company 6/30/ /31/2015 6/30/ /31/2015 Current assets Customers (i) Current liabilities: Rent payable (ii) Trade accounts payable (v) - - 5,468 5,069 Trade payables Dudalina S.A. 8, , ,512 5,113 Result Revenue (i) , ,639 Expenses/COGS: Rent (ii) Expenses of other services (iv) Raw materials consumption (v) - - 6,058 7, ,466 8,200 (i) to (v) The details of the types of transactions and relationships are described in Note 21.1 to the annual financial statements as at December 31, 2015 and, since the second quarter of 2016, the group of shareholders associated with these transactions has had an insignificant shareholding position. Accordingly, the balances presented correspond to transactions occurring until March 31, There were no transactions with new related parties Management compensation Management compensation expenses (Board Members and Executive Officers) of the Company in the semester are summarized below: 12

46 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated Board of Executive Officers Board of Directors 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Salaries and fees 3,164 3, ,896 Payroll charges Bonus 2,306 4,931-2,400 Stock option plan (Note 23.5) ,988 8, , Provision for contingencies The Company and the subsidiary are parties to legal and administrative proceedings in view of the regular course of their operations, involving tax, civil, labor and social security matters. Management, based on the individual analysis of these risks and processes, supported by the opinion of the lawyers conducting these proceedings, recorded provision in an amount deemed sufficient to cover the estimated probable future cash disbursements in relation to the lawsuits in progress, as follows: Parent Company 12/31/2015 Additions/ Interest Payments /Reversals 6/30/2016 FAP/RAT/Labor 3, (595) 3,297 Civil (25) 87 Tax , (620) 3,465 12/31/2015 Additions/ Interest Payments /Reversals 6/30/2016 (i) FAP/RAT/Labor 22, (15,156) 8,140 Civil (25) 194 Tax 58,248 - (5,356) 52,892 80, (20,537) 61,226 (i) Mainly relates to the limitation of contingencies related to the fair value identified in the acquisition of Dudalina. 23 Equity 23.1 Paid-up capital Paid-in and issued capital stock at June 30, 2016 is R$268,898 (R$268,898 at December 31, 2015), represented by 349,862,508 non-par, registered common shares. The Company is authorized to increase the capital stock up to the limit of 500,000,000 non-par common shares. 13

47 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated The Company s ownership structure at June 30, 2016 was as follows: Shareholder Number of shares Marcio da Rocha Camargo (i) 87,796, % Marcelo Faria de Lima (i) 66,283, % Funds managed by Warburg Pincus 78,083, % Funds managed by Advent International 77,538, % Other 40,161, % Total 349,862, % % (i) Directly and indirectly held positions, including interests in subsidiaries, investment funds and portfolios under management. The Company does not have a controlling shareholder or group of shareholders with shareholding control Treasury shares On March 5, 2015, the Board of Directors approved a new share buyback program to repurchase the Company s common shares to be held in treasury or subsequently cancelled, without decreasing the Company s capital stock, up to the limit of 10% of the outstanding shares, which correspond to thirty-four million, nine hundred and eighty-six thousand, two hundred and fifty (34,986,250) common shares. The Company shares quoted on the BM&FBOVESPA at June 30, 2016 and December 31, 2015 were R$3.17 and R$1.85, respectively. Average Number of shares Value price/cost - R$ per share Gain/loss R$ At December 31, ,110, ,997 - Buyback 195,600 1, Sale (643,300) (4,390) At March 31, ,662, ,018 (600) Buyback 5,446,500 47, At June 30, ,109, ,661 (600) Buyback 113, At September 30, ,222, ,319 (600) Buyback At June 30, ,222, , Earnings (loss) per share 14

48 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated The statement below reconciles the net result with the amounts used to calculate the basic and diluted earnings (losses) per share on June 30, Parent Company/ 6/30/2016 6/30/2015 Basic numerator: Earnings (losses) allocated to common shares (37,001) 16,729 Basic denominator: Weighted average of common shares (in thousands) 326, ,063 Earnings (losses) per share basic ( ) In 6M16, there was no potential increase in common shares nor was there any other dilutive element. In 2016, as the potential shares derive from the stock option plan and the Company recorded a loss, the effect of these potential shares is anti-dilutive. As a result, basic and diluted earnings per share are equal Equity valuation adjustment In the first quarter of 2015, the Company contracted foreign exchange derivatives, authorized by the Financial Risk Management Policy. These derivatives are used as cash flow hedge instruments for highly probable transactions. These instruments were contracted to minimize the Company's exposure to fluctuations in exchange rates and the prices of raw materials and finished products to be purchased abroad. In 6M16, the Company realized derivatives for hedging purposes (NDF) and decided to apply hedge accounting. In the second quarter, due to the mismatching of terms, the hedge was ineffective. Gains and losses on transactions classified as effective are recognized under equity valuation adjustment and are recognized in the statement of income when the originally envisaged hedged transaction affects the result. For transactions classified as ineffective, the hedging effects are directly recorded in profit or loss. 6/30/ /31/2015 Derivative financial instruments IR/CSLL (194) (237) Total Stock option plan In 2015, the Board of Directors approved the granting of five million (5,000,000) stock options for non-par, registered common shares issued by the Company, within the scope of the Stock Option Plan approved at the Special Shareholders Meeting of April 26, The fair value was calculated on the stock option grant date, based on the Black & Scholes model, to be recorded on a pro rata temporis basis, while services are being rendered, until the beneficiary acquires the right to exercise the option. This model is calculated based on the market value of the Company s shares on the grant date, the option exercise price, the price volatility of the Company s shares, the risk-free interest rate, the term of the agreement and length of service. Length of service is recorded as the term of the agreement, beginning on the grant date and ending when the beneficiary acquires the right to exercise the option. 15

49 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated On March 5, 2015, the Board approved the granting of two million (2,000,000) stock options totaling R$1,614, with a dividend rate between 9.53% and 10.16%, volatility between 40.97% and 41.30%, a risk-free interest rate ranging from 13.02% to 13.43%, fair value between and and vesting period from April 30, 2015 to March 5, The total recognized in profit or loss up until June 30, 2016 was R$230. On September 30, 2015, the Board approved the granting of another two million (2,000,000) stock options totaling R$870, with a dividend rate of 10.02%, volatility of between 40.89%, a risk-free interest rate ranging from 15.35% to 15.53%, fair value of between and and vesting period from October 1, 2016 to October 1, The total recognized in profit or loss up until June 30, 2016 was R$194. On October 2, 2015, the Board approved the granting of one million (1,000,000) stock options totaling R$484, with a dividend rate of 10.02%, volatility between of 40.89%, a risk-free interest rate ranging from 15.35% to 15.87%, fair value of between and and vesting period from October 1, 2016 to October 1, The total recognized in profit or loss up until June 30, 2016 was R$93. On June 30, 2016, the Company had recorded administrative expenses, with a corresponding entry in equity, in the amount of R$4. 24 Net sales revenue Parent Company 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Gross selling revenue 525, , , ,560 Sales deductions (34,918) (34,666) (51,205) (48,801) Taxes levied (136,912) (143,425) (174,554) (181,107) 353, , , , General and administrative expenses Parent Company 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Occupation expenses (56,277) (34,681) (68,431) (45,118) Depreciation and amortization expenses (22,867) (23,811) (23,284) (24,203) Others (6,742) (16,049) (12,368) (27,404) (85,886) (74,541) (104,083) (96,725) 26 Selling expenses Parent Company 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Personnel expenses (86,535) (83,887) (88,724) (93,404) Marketing expenses (13,144) (14,373) (33,699) (37,164) Depreciation and amortization expenses (24,887) (17,287) (29,731) (18,989) (124,566) (115,547) (152,154) (149,557) 27 Expenses by nature Parent Company 16

50 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Occupation expenses (56,277) (34,681) (68,431) (45,118) Personnel expenses (86,535) (83,887) (88,724) (93,404) Marketing expenses (13,144) (14,373) (33,699) (37,164) Depreciation and amortization expenses (47,754) (41,098) (53,015) (43,192) Others (6,742) (16,049) (12,368) (27,404) (210,452) (190,088) (256,237) (246,282) 28 Financial Result Parent Company 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Financial expenses Exchange losses (i) (6,976) (43,690) (8,673) (45,921) Gain (loss) on derivatives (NDF) (28,087) 12,600 (28,087) 12,600 Interest (74,338) (63,944) (76,729) (65,346) Credit card commission (ii) (7,137) (7,777) (8,437) (8,882) Bank expenses (579) (517) (898) (866) Present value adjustment of financial expenses (378) (393) (378) (393) Passive fines (1,773) (125) (1,773) (125) Amortization of transaction cost - debentures (1,231) (1,254) (1,231) (1,254) Others (2,039) (1,121) (3,461) (1,199) (122,538) (106,221) (129,667) (111,386) Financial income Exchange gains (i) 25,579 19,022 28,406 19,850 Income from financial investments 5,424 7,019 6,283 8,178 Others ,883 1,228 31,724 26,190 36,572 29,256 Financial result (90,814) (80,031) (93,095) (82,130) (i) Relates to the exchange rate variation on foreign currency-denominated loans and bank balances and the exchange rate variation on purchases from foreign suppliers. (ii) Relates to commission paid to credit card acquirers and operators, credit cards being a payment method used to receive significant amounts of revenue. 29 Income and social contribution taxes 29.1 Current income and social contribution taxes Income and social contribution taxes are calculated and recorded based on the taxable income, considering the rates provided for in the applicable tax laws Deferred income and social contribution taxes 17

51 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated Parent Company 6/30/ /31/201 12/31/201 6/30/ Deferred tax assets Temporary differences Provision for labor and tax contingencies 1,178 1,264 1,178 1,264 Provision for inventories Deferred exchange rate variation - 24,523-24,523 Provision for rent on a straight-line basis 1,002 1,225 1,002 1,225 Other provision 1,648 1,897 1,648 1,897 Stock option plan Present value adjustment of financial expenses 3,027 2,898 3,027 2,898 Depreciation of property lease 1,708 1,490 1,708 1,490 Tax loss and social contribution tax loss carry-forwards 113,174 89, ,174 89,688 Total deferred tax assets 122, , , ,359 Deferred tax liabilities Difference of depreciation rates (12,840) (15,407) (12,840) (15,407) Goodwill amortization (4,747) (4,747) (4,747) (4,747) Accounts receivable - derivatives 2,053 (24,456) 2,053 (24,456) Others (10,269) (7,294) (10,269) (7,294) Total deferred tax liabilities (25,803) (51,904) (25,803) (51,904) Net deferred tax assets 96,310 71,455 96,310 71,455 Deferred assets recognized in equity Acquisition s fair value (i) - - (27,642) (21,761) Total deferred tax assets 96,504 71,692 68,862 49,931 (i) These relate to deferred income tax, calculated based on the amounts identified to determine the difference between the accounting acquisition amount and the fair value of Dudalina S.A. The amount recorded under deferred assets at June 30, 2016 is scheduled to be realized as follows: Year of realization Parent Company ,317 6, ,894 19, ,519 31, ,774 11,468 96,504 68, Reconciliation between nominal and effective rates 18

52 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated The reconciliation of the expenses calculated based on the combined rate and income and social contribution tax expense is as follows: Parent Company 6/30/2016 6/30/2015 6/30/2016 6/30/2015 Profit (loss) before taxes (61,858) 5,187 (47,595) 15,380 Nominal rate - % Income and social contribution taxes at nominal rate 21,031 (1,764) 16,182 (5,229) Non-temporary additions (943) (94) (943) (94) Non-temporary exclusions - equity in the earnings of Dudalina S.A. 9,532 13, Difference between taxable income and presumed profit ,670 Others (4,763) 3 (4,894) 2 24,857 11,542 10,594 1,349 Income and social contribution taxes on profit for the period Current - - (8,382) (8,493) Deferred 24,857 11,542 18,976 9,842 Income and social contribution tax expenses 24,857 11,542 10,594 1, Charges, possible liabilities and commitments (a) Commitments related to property lease agreements The Company has commitments with the lessors of several stores, including operational stores and stores under development, already contracted at June 30, 2016, the agreements of which contain specific clauses providing for cancellations. Rental is composed of fixed adjustable monthly values or as a percentage of the store s revenue, with the highest value prevailing. In some cases in December, the minimum fixed rent is doubled. The known amounts of these commitments are: Parent Company ,204 36, ,111 43, ,316 27,692 As of ,989 33, , ,580 (b) Financial leases 19

53 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated The Company a lease commitment for one item of property and equipment. This lease has a renewal term including a purchase option and price adjustment clauses. Renewal is at the lessor s discretion. Under the finance lease conditions, the future minimum lease payments and present value of minimum lease payments are as follows: Minimum payments Present value of payments Within one year 1,789 1,065 Between one and five years 7,680 5,411 More than five years 10,080 8,911 Total minimum finance lease payments 19,549 15,387 (-) Finance charges (4,162) Present value of minimum lease payments 15, Financial risk management The Company s financial instruments are represented by cash and cash equivalents, financial assets at fair value through profit or loss, accounts receivable and payable, and loans and borrowings. The main purpose of the financial liabilities is to finance the growth of the Company s operations. The main risks connected with the Company s operations are related to the U.S. dollar variation for the acquisition of goods, the CDI variation for financial investments, debentures and financial assets at fair value through profit or loss. Thus, the Company is basically exposed to currency risk, interest rate risk and credit risk. (a) Currency risk Currency risk arises from the possibility of the fair value of future cash flows of a financial instrument floating due to exchange rate variations. Exchange rate sensitivity Our next reporting base date will be September 30, The Company considers an increase of exchange rate from R$3.20 to R$3.40 as a reasonably possible change. 20

54 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated Balance on Possible stress Parent Com pany Scenario 25% 50% Non-Deliverable Forward (i) 40,985 2,429 3,036 3,643 Foreign suppliers - USD (10,009) (593) (741) (890) Net exposure (ii) 30,976 1,836 2,295 2,753 Balance on Possible stress Scenario 25% 50% Foreign customers - US$ 5, Non-Deliverable Forward (i) 40,985 2,429 3,036 3,643 Foreign suppliers - USD (19,082) (1,131) (1,413) (1,696) Net exposure (ii) 27,495 1,629 2,037 2,444 (i) (ii) The amount indicated as the balance at June 30, 2016 corresponds to the notional value related to NDFs on imports not yet due. This corresponds to the additional net expense or revenue that would affect results and equity if the change had already occurred on June 30, (b) Interest rate risk Interest rate risk arises from the possibility of the fair value of the future cash flows of a financial instrument floating due to variations in the market interest rates. The Company s exposure to the risk of changes in market interest rates mainly affects the Company s long-term liabilities subject to variable interest rates. Interest rate sensitivity The table below shows the sensitivity to a possible change in CDI interest rates, while keeping all the other variables constant. The Company considers an increase of CDI rate from 14.13% to 14.63% as a reasonably possible change, in a possible upside scenario, until the next reporting date of September 30, Balance on Possible stress Parent Com pany Scenario 25% 50% Financial investments pegged to the CDI interbank rate 119, Loans in domestic currency (621,977) (3,110) (3,887) (4,665) Debentures (Liabilities) (279,021) (1,395) (1,744) (2,093) Net exposure (1) (781,553) (3,908) (4,884) (5,862) Balance on Possible stress Scenario 25% 50% Financial investments pegged to the CDI interbank rate 141, ,065 Loans in domestic currency (630,215) (3,151) (3,939) (4,727) Debentures (Liabilities) (279,021) (1,395) (1,744) (2,093) Net exposure (1) (767,301) (3,836) (4,796) (5,755) 21

55 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated (1) This corresponds to the annual (i.e. 12-month) additional net expense that would affect results and equity if the change had already occurred on June 30, (c) Credit risk TCcredit risk is minimized since part of the Company s sales (approximately 70%) are made through credit cards administered by third parties. Sales policies for corporate customers (approximately 5,500 customers with no concentration) are subject to credit policies set out by Management and aim at minimizing any problems arising from customer default. (d) Liquidity and capital management The Company s capital management aims at ensuring an efficient capital structure to support the business and maximize shareholder value. The management of working capital to deal with investments considers operating cash generation and, when applicable, other funding sources, historically, on a long-term basis, i.e. debenture issues, bank loans and others. Below is the Company s leverage. Parent Company 6/30/ /31/2015 6/30/ /31/2015 Loans/debentures 900,998 1,024, ,236 1,033,889 (-) Cash and cash equivalents (123,127) (191,978) (147,911) (257,625) (-) Financial investments - (35,247) - (35,247) (-) Accounts receivable derivatives - (71,928) - (71,928) Net debt 777, , , ,089 Equity 1,706,006 1,742,917 1,706,006 1,742,917 Equity and net debt 2,483,877 2,468,463 2,467,331 2,412,006 Financial leverage 31% 29% 31% 28% (e) Fair value estimate Trade payables and receivables approximate their fair value, considering term and nature. For reporting purposes, the fair value of financial liabilities is estimated by discounting contractual future cash flows at the effective market interest rate, which is available to the Company for similar financial instruments. The fair values of the debentures are close to their carrying amounts especially considering and comparing with the funds raised in The other financial assets and financial liabilities, considering their short-term nature, have their fair values close to their carrying amounts. Fair value measurements are classified by the following hierarchy levels:. Inputs other than quoted prices included in level 1 that are adopted by the market for assets or liabilities, either directly (i.e. such as prices) or indirectly (i.e. deriving from prices) (level 2). This was the case of the derivative balance outstanding at June 30, 2016 and 2015, and some securities.. Inputs to assets or liabilities that are not based on data adopted by the market (non-observable inputs) (level 3). 22

56 Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated (f) Financial instruments by category Loans and receivables Parent Company 6/30/ /31/2015 6/30/ /31/2015 Trade bills receivable and other receivables, excluding prepayments 62,575 55, , ,939 Cash and cash equivalents and financial investments 123, , , ,872 Financial assets measured at fair value through profit or loss Derivatives receivable - 71,928-71, , , , ,739 Other financial liabilities Borrowings and debentures 900,998 1,024, ,236 1,033,889 Trade payables and other obligations 157,914 86, , ,878 Financial liabilities at fair value through profit or loss Derivatives payable 6,038-6,038-1,064,950 1,111,228 1,108,655 1,176,767 (g) Credit quality of financial assets The credit quality of financial assets that are not yet due or impaired may be evaluated based on the past counterparty default rate: Parent Company 6/30/ /31/2015 6/30/ /31/2015 Trade bills receivable Counterparties whose credit was not rated externally Regarding risk Group 1 Null risk 4,716 10,074 5,353 11,012 Group 2 Minimum risk Group 3 Low risk 51,946 40, , ,887 Group 4 Significant risk Group 5 High risk 5,913 5,822 12,786 12,040 62,575 55, , , Negotiations with InBrands S.A. On June 2, 2016, the Company and InBrands S.A. entered into a non-binding Memorandum of Understanding to analyze the potential business combination of 100% of the companies operations ( Operation ). On July 19, the Brazilian Antitrust Authority announced its decision to approve, without restrictions, the potential business combination between the Company and InBrands S.A. The financial statements do not consider any effect associated with the future completion of the Operation. * * * 23

57 ITR - Quarterly Information Form 06/30/ RESTOQUE COMERCIO E CONFECÇÕES DE ROUPAS S.A. Version : 1 Notes to the financial information Restoque Comércio e Confecções de Roupas S.A. and Subsidiary Notes to the Parent Company and Financial Information In thousands of reais, unless otherwise stated (g) Credit quality of financial assets Credit quality of financial assets that are not yet due or impaired may be evaluated based on past rating of counterparty default rate: Parent Company 6/30/ /31/2015 6/30/ /31/2015 Trade bills receivable Counterparties whose credit were not rated externally Regarding risk Group 1 Null risk 4,716 10,074 5,353 11,012 Group 2 Minimum risk Group 3 Low risk 51,946 40, , ,887 Group 4 Significant risk Group 5 High risk 5,913 5,822 12,786 12,040 62,575 55, , , Negotiations with InBrands S.A. On June 2, 2016, the Company and InBrands S.A. entered into a non-binding Memorandum of Understanding (MoU) to analyze a potential business combination of 100% of the Companies operations ( Operation ). On July 19, 2016, the Brazilian antitrust authority (CADE) announced its decision to approve, without restrictions, a potential business combination between the Company and InBrands S.A. The financial statements do not consider any effect associated with the future completion of the Operation. * * * 23 PAGE: 56 of 57

58 (A free translation of the original in Portuguese) Report on review of quarterly information To the Board of Directors and Stockholders Restoque Comércio e Confecções de Roupas S.A. Introduction We have reviewed the accompanying parent company and consolidated interim accounting information of Restoque Comércio e Confecções de Roupas S.A. ("Parent company" or "Company"), included in the Quarterly Information Form (ITR) for the quarter ended June 30, 2016, comprising the balance sheet at that date and the statements of operations and comprehensive income (loss) for the quarter and six-month period then ended, and the statements of changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory information. Management is responsible for the preparation of the parent company and consolidated interim accounting information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC) and International Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review. Scope of review We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists in making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the interim information Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM. 1 PricewaterhouseCoopers, Av. Francisco Matarazzo 1400, Torre Torino, São Paulo, SP, Brasil , Caixa Postal T: (11) ,

59 Restoque Comércio e Confecções de Roupas S.A. Other matters Statements of value added We have also reviewed the parent company and consolidated statements of value added for the six-month period ended June 30, These statements are the responsibility of the Company s management, are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information, and are considered supplementary information under the International Financial Reporting Standards (IFRS), which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the parent company and consolidated interim accounting information taken as a whole. São Paulo, August 10, 2016 PricewaterhouseCoopers Auditores Independentes CRC 2SP000160/O-5 Tadeu Cendón Ferreira Contador CRC 1SP188352/O-5 2