Cia Hering : Material Fact - Payment of Interest on Capital

We hereby inform to the Company's Shareholders that the Board of Directors approved the payment of interest on own capital in the amount of R$41,998,423.02 (forty-one million, nine hundred and ninety- eight thousand, four hundred and twenty-three reais and two centavos) corresponding to R$0.2595 per share, at a meeting held on November 22, 2017. Income tax will be withheld from this amount, according to the current legislation, except for shareholders exempted from said tax. The payment will be made on December 13, 2017, based on shareholding positions on November 29, 2017. The Company's shares will be traded ex-interest on own capital as of November 30, 2017. Shareholders will have their credits available according to bank details provided to Banco Itaú S.A. - The Depository Institution of Shares issued by the Company, from the starting date of distribution. For shareholders registered without their taxpayer's ID number (CPF/CNPJ) or "Bank/Branch/Checking account" indication, the interests on own capital will only be paid from the 3rd business day upon updating of registered data at Banco Itaú S.A., which can be done through any Banco Itaú S.A. branch. The shareholders who use the fiduciary custody services will have interest on own capital credited according to the procedures adopted by the Stock Exchange.

Blumenau (SC), November 22, 2017.