Meeting with Investors

2Q07 earnings

2

Adjusted net income

24% 25%

-15%

-35% -36%

-24%

38%

24% 13%

-3%

14%

45%

31% 31% 31%

8%

-60%

-40%

-20%

0%

20%

40%

60%

4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

12-month result: change year-on-year (*) 12-month result: change year-on-year

(*) without non-recurring revenues

3

2Q07 YoY highlights 1H07

• Gross revenue, R$ 580.2mn, 8.4% higher• Sales volume 2.2% up • Average price 6% higher• Domestic revenue: 5% up, volume 4.2% lower• Exports revenue 34% higher in dollar, average

price 14% up and volume 4.2% lower• Gross profit 5.9% higher, gross margin flat,

~37%• Adjusted EBITDA at R$ 95.7mn, 7% up, margin

flat (around 21%)• Adjusted net income at R$ 78.7mn, 5.5% lower,

margin 17.2% (R$ 83.3 mm, 19.6%), without non-recurring revenue: 8% higher, R$ 77mn (R$ 71.3 mn), net margin flat (around 17%)

• Net cash in June 30, 2007 at R$ 602.4mn, 59% up from December 31, 2006.

• Interim dividends: R$ 30mn will be paid from August 22, 2007 (Ex-dividend on August 07, 2007)

• Gross revenue, R$ 253.7 mn, 1.6% up

• Sales volume 13% higher• Average price 10% lower• Domestic revenue flat and volume

10% higher• Exports revenue 23.6% up in dollar,

average price flat in dollar and volume 23% higher

• Gross profit flat, gross margin around 37%

• Adjusted EBITDA at R$ 34.5 mn,9.1% lower, margin 17.4% (R$ 38mn, margin 19.3%)

• Adjusted net income at R$ 31.2mn,25.3% lower, margin 15.7% (R$ 41.8 mn, 21.2%), without non-recurring revenue: flat at R$ 29.5mn, margin 15%

4

Main financial and economic indicatorsGuidance

Guidance given to market Actual• Gross revenue in 1H07 higher than 1H06 + 8.4%• Sales volume in 1H07 slightly higher than 1H06 + 2.2%• Average price in 1H07 higher than 1H06 + 6.0%

Gross Revenues 249.7 253.7 1.6% 535.2 580.2 8.4% Domestic 217.3 217.5 0.1% 446.4 468.9 5.0% Exports 32.4 36.2 11.7% 88.8 111.3 25.3%

Net Sales 197.1 198.8 0.9% 425.3 457.2 7.5% Gross Profit 72.9 72.7 (0.4%) 158.6 168.1 5.9% Adjusted EBITDA 38.0 34.5 (9.1%) 89.4 95.7 7.0% Net Financial Result 14.8 6.2 (58.3%) 21.8 8.0 (63.3%) Adjusted Net Income 41.8 31.2 (25.3%) 83.3 78.7 (5.5%) Adjusted Net Income (*) 29.8 29.5 (0.9%) 71.3 77.0 8.0% EPS (R$ per share) 0.42 0.31 (25.3%) 0.83 0.79 (5.5%) Sales Volume (million pairs) 22.3 25.2 12.8% 55.7 56.9 2.2% Average Price (R$) 11.17 10.06 (9.9%) 9.62 10.20 6.0%

Adjusted Margins – as a % of net sales 1Q06 1Q07 Var.(bps) 1H06 1H07 Var.(bps) Gross 37.0% 36.5% (50) 37.3% 36.8% (50) EBITDA 19.3% 17.4% (190) 21.0% 20.9% (10) Net 21.2% 15.7% (550) 19.6% 17.2% (240) Net (*) 15.1% 14.9% (20) 16.8% 16.8% 7 (*) without non-recurring revenue

5

Shares evolution and dividend distribution

R$ 0.6415 R$ 0.8118R$ 1.2826

R$ 0.3000

R$ 3.0359

US$ 1.4084

US$ 0.1622

US$ 0.6097

US$ 0.3770

US$ 0.2595

2004 2005 2006 2007 Dividends paidsince the IPO

(2004-07)

Dividend per share (R$) Dividend per share (US$)

-

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

10/28/04 05/16/05 12/02/05 06/20/06 01/06/07 07/25/07

GRND3 - R$ GRND3 - US$Source: Bovespa / Bacen

IPO´s price: US$ 10.82 per share Current price: US$ 13.95 per share

IPO´s price: R$ 31.00 per share Current price: R$ 26.00 per share

Grendene paid in dividends 13% since the IPO (2004 – 2007) takingin account the price in US$ issuedon October 28, 2004.

6

Operational performanceGross revenues (in mn of Reais)

740973

1,290 1,170 1,204

229 251 217 218446 469

167

303

235183 188

57 75 33 36

89 111

907

1,276

1,525

1,353 1,392

285 326250 254

535 580

2002 2003 2004 2005 2006 1Q06 1Q07 2Q06 2Q07 1H06 1H07

Domestic Exports

CAGR: 11.3%

Var.%

2Q07/2Q06:

1.6%

Var.%

1H07/1H06:

8.4%Var.%

1Q07/1Q06:

14.4%

7

Operational performanceSales volume (in mn of pairs)

100 94116

102 100

22 19 17 1939 37

16 27

2928 32

11 13 5 6

17 20

116 121

145130 132

33 3222 25

56 57

2002 2003 2004 2005 2006 1Q06 1Q07 2Q06 2Q07 1H06 1H07

Domestic Exports

CAGR: 3.3%

Var.%

2Q07/2Q06:

12.8%

Var.%

1H07/1H06:

2.2%Var.% 1Q07/1Q06: (5%)

8

Operational performanceAverage price (in Reais)

7.41

10.32

11.0711.40

11.99

10.49

13.59

12.63

11.51 11.43

12.54

10.14

11.24

8.20

6.635.98

4.92

5.716.30

5.725.35

5.71

7.80

10.52 10.50 10.39

8.57

10.31

11.17

10.069.62

10.2010.55

2002 2003 2004 2005 2006 1Q06 1Q07 2Q06 2Q07 1H06 1H07

Domestic Exports Total

CAGR: 8%Var.% 2Q07/2Q06: (9.9%)

Var.%

1H07/1H06:6%

Var.%

1Q07/1Q06:

20.3%

9

Operational performanceGross profit (R$ mn) and gross margin (%)

333

504 526444

493

86 95 73 73159 168

44.1%47.5%

43.4%41.5%

44.7%

37.6% 36.9% 37.0% 36.5% 37.3% 36.8%

2002 2003 2004 2005 2006 1Q06 1Q07 2Q06 2Q07 1H06 1H07

Gross profit Gross margin

10

Operational performanceAdjusted Ebitda (R$ mn) and Ebitda margin (%)

212

354320

267317

51 6138 35

89 96

28.0%

22.5%23.7%

19.3%17.4%

21.0% 20.9%

28.8%

25.0%26.4%

33.4%

2002 2003 2004 2005 2006 1Q06 1Q07 2Q06 2Q07 1H06 1H07

Adjusted Ebitda Ebitda margin

11

Operational performanceAdjusted net income (R$ mn) and net margin (%)

117

238202 195

256

42 47 42 31

83 79

15.5%

18.2% 18.4%

21.2%

15.7%

19.6%

17.2%

22.4%

16.7%18.3%

23.2%

2002 2003 2004 2005 2006 1Q06 1Q07 2Q06 2Q07 1H06 1H07

Adjusted net income Net margin

12

Operational performanceAdjusted net income (R$ mn) and net margin (%)

117

238202 195

256

42 4730 30

71 77

15.5%

18.2% 18.4%

15.1% 14.9%

16.8% 16.8%

22.4%

16.7%18.3%

23.2%

2002 2003 2004 2005 2006 1Q06 1Q07 2Q06 (*) 2Q07 (*) 1H06 (*) 1H07 (*)

Adjusted net income Net margin

(*) Without non-recurring revenue

13

Domestic market highlightsWell-successed repositioning of mass-market products in the 2Q07, contributed on sales volume 9.8% higherHiring of ads agency Africa for Ipanema brand repositioning with the beginning of the flip-flops ads campaign “Only Ipanema has the Anatomics” (“As Anatômicas, só a Ipanema tem”) from July of 2007 onThe average price 8.9% lower reflected the higher weighting of lower added value products in the product mix in 2Q07Maintaining the strategy of launching peoducts with higher perceived valueExpansion of licensings and acessories in the children´ssegmentIncreased promotional campaignsReduction in the average cost per pair in 10.2%, following the average price decrease

14

Exports highlights• Grendene accounted for 21.3% market share in 1H07 to vis-a-vis 17.6% in 1H06 (Decex)• Brands globalization: Melissa & Ipanema Gisele Bündchen• Consumption growth in Europe, South America, Middle East and Africa• Exports breakdown by volume and region

2006/052006 % 2005 % Var. %

North America 13,457 42.7% 12,169 44.0% 10.6% South America 12,211 38.8% 9,786 35.4% 24.8% Europe 3,408 10.8% 3,607 13.0% (5.5%) Others 2,427 7.7% 2,094 7.6% 15.9% Total 31,503 100.0% 27,656 100.0% 13.9%

1H07/1H061H07 % 1H06 % Var. %

North America 6,579 33.8% 8,883 53.5% (25.9%) South America 5,450 28.0% 3,810 22.9% 43.0% Europe 4,762 24.5% 2,666 16.0% 78.6% Others 2,686 13.8% 1,252 7.5% 114.5% Total 19,477 100.0% 16,611 100.0% 17.3%

Pairs (in '000)

Pairs (in '000)

15

Outlook and guidance

2007• Gross revenue in 2007 higher than 2006• Sales volume in 2007 higher than 2006• Average price in 2007 in line with 2006• Capex R$ 10 mn in 2007, including the new plant in Bahia (5% of

current installed capacity of 176 mn pairs per year)• Teixeira de Freitas (BA) startup in September, 2007.• Advertising expenditure between 8% to 9% of net sales in 2007 • Maintaining of the dividends policy of up 100% of distributable net

income• Small improvement in gross margin, EBITDA margin and net

margin.

16

Reasons for the guidance• Domestic market was based e estimates on the following factors:

(i) new spring-summer collection (Francal in July 2007), with new technologies and novelties in design and materials(ii) new marketing campaigns with linked to sustainability: Agua (Water)

project of Ipanema G2B (continuity from Y Ikatu Xingu project) and MormaiiNeoCycle (recycled sandals and flip-flops)

(iii) widening of licensing, accessories and campaigns in the kid´s segmentwith associted campaigns

(iv) Still higher competitiveness with the Bahia plant star-up(v) well-successed repositioning of mass-market products and the beginning of “As

Anatômicas, só a Ipanema tem”(vi) maintaining the strategy of launching products with higher added value(vii) increase in the real disposable income and recovring of domestic consumption

• Exports good outlook maintained: (i) strategy of globalization of brands with good results: Melissa and Ipanema GB(ii) widening the number of countries with sales of the brand Ipanema GB (iii) new collection and campaign of Ipanema G2B in 2H07; and (iv) sustained growth in all markets

17

Seasonality is part of the business

Seasonality

21.0%17.0%

31.8% 30.2%

19.4%14.9%

26.2%

39.4%

19.0% 18.5%24.1%

38.4%

22.1%17.6%

27.3%33.1%

23.2%19.3%

28.0% 29.4%

20.5%17.9%

26.8%

34.7%

0%

15%

30%

45%

60%

1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06

Quarter

Gross sales revenues Adjusted EBITDA Adjusted Net Income

18

Medium and long term strategy• Top line recovery emphasis: to present growth in the revenue and sales

volume indicators, with defined strategies for domestic and export markets• Objective to grow structurally, developing in its differentiated business model• Enough room for organic growth and value and volume market share gains,

evaluating opportunities that can be a good deal for the Company• Constant costs and expenses control, looking for productivity and margin

gains• Globalization in some brands to improve revenues and volume in exports• Exports improving with sustained growth (nine quarters in a row)• Products launching validation: retailers, traders and consumers (research)• Investment in differentiated evolution in the plastic technology = Grendene´s

DNA• Emphasis in increase more and more the competitiveness• Tripod: (i) low-end and high-end product mex in the portfolio; (ii) market and

segments diversification; and (iii) ideal product mix: cost / price / marketing

19

“GRND3” Share evolution

Basis 100 = Dec. 31, 2006

70

80

90

100

110

120

130

140

12/31/06 01/31/07 03/05/07 04/03/07 05/04/07 06/04/07 07/04/07 08/06/07

Grendene Ibovespa IGC ITAG

20

Evolution in the average daily trading and numberof trades

Per trade Var. % Daily Var. % Per trade Var. % Daily Var. %

Acummulated 2004 (Nov-Dec 4,213 718,616 139,788 24,013,037

Average (montly) 1,404 239,539 46,596 8,004,346

Acummulated 2005 19,735 1,830,560 384,026 37,748,688

Average (montly) 1,645 17.1% 152,547 (36.3%) 32,002 (31.3%) 3,145,724 (60.7%)

Acummulated 2006 22,906 1,734,000 438,830 34,029,417

Average (montly) 1,909 16.1% 144,500 (5.3%) 36,569 14.3% 2,835,785 (9.9%)

Acummulated 2007 (Jan-Jul) 16,277 644,395 406,674 16,136,600

Average (montly) 2,325 21.8% 92,056 (36.3%) 58,096 58.9% 2,305,229 (18.7%)

average volume of shares (#) Average volume (in R$)

21

• Rigid management discipline in costs and expenses reduction• Raw material management and use of alternative materials• National and international coverage in terms of logistic and distribution• Human resources: Grendene Academy, IDP, management earning-oriented

• Presence in both markets: domestic ~86% in revenues (R$) and 76% in volume; exports ~14% in revenues (R$) and 24% in volume (2006)

• Segmentation: feminine, masculine, kids and mass consumption• Constant innovation, product differentiation and value recognition,

launching more than 400 products per year

Grendene is one of the world’s largest producer of synthetic footwear, in house technology, approximately 180 mn pairs / year of installed capacity and 18 thousand actives employees.

• Strong marketing culture, strong national and global brands and the most important licenses

• Marketing campaigns associated to a sustainability projects and celebrities• Alternative media, marketing segmentation, market niches, actions with

traders and points of sales

Brands / marketing

Diversification / Products

Management improvements

Company’s Overview

• 100% common shares and tag long• Dividends policy to distribute up 100% of net income distributable• Independent members in the board of directors• Sustainability approach: triple bottom line (economic result, maximizing

social impact and minimizing environmental impact

Corporate governance

22

Own brands

23

Main licenses

24

Grendene´s IR Team

• Alexandre Grendene BartelleChairman and IRD

• Doris WilhelmIROdoris@grendene.com.br(5554) 2109.9036

Analysts• Alexandre Vizzotto

avizzotto@grendene.com.br(5554) 2109.9011

• Lenir Barettalbaretta@grendene.com.br(5554) 2109.9026

WARNING

This presentation contains statements that might represent projections of future events and results. These statements are based upon certain assumptions and analyses performed by the company according to its experience, economic environment, market conditions, and expected future developments that might be out of the company’s control. Important facts that may lead to significant differences between expected and actual results, including the company’s business strategy, local and international economic condition, technology, financial strategy, developments in the shoes industry, equity market conditions, uncertainties concerning future results, plans, expectations and intentions, and other facts. As a consequence of these facts, the actual results may significantly differ from the ones indicated and/or implied in the statements of projections concerning future events and results.