þÿ

1969: A small laboratory and two passions:

cosmetics and relationships.

1974: Direct Sales plataform

90s: Commitment with social/environmental responsibility

Current Moment:
Management model evolution
New growth cycle in LatAm
Increase leadership in Brazil

00s: Natura Ekos / Natura Cajamar / IPO / Follow On

Our History

Argentina

Employees: 329 (174 SF)

CNs: 54 thousand

Chile

Employees: 294 (132 SF)

CNs: 30 thousand

Peru

Employees: 281 (174 SF)

CNs: 46 thousand

Mexico

Employees: 341 (250 SF)

CNs: 36 thousand

Colombia

Employees: 172 (110 SF )

CNs: 18 thousand

Available Consultants (C12): 186 thousand

Employees: 1,465 (860 SF)

International

France

Employees: 48 (20 SF)

CNs: 2 thousand

7.4

3.0

1.4

1.7

2.9

Total CF&T Market

Source: Euromonitor 2009

SF - Sales Force (3Q10)

CNs Natura Consultant (3Q10)

Where we are

28.4

Brazil

Employees: 4,821 (948 SF)

CNs: 984 thousand

Key Brands

Children Care

Body

Anti - Wrinkles

Deodorant

Hair

Men's grooming

Facial Make Up

Sunscreen

Fragrances

Oils

Soaps

Main Competitors

Johnson & Johnson Procter and Gamble

Avon

NIVEA

Hypermarcas

NIVEA

Avon

O Boticário

Procter and Gamble

Unilever

LOreal

Unilever

Johnson & Johnson

NIVEA

Unilever

Avon

O Boticário

Avon

Colgate

Unilever

Bertin

Social:

Wealth creation to consultants

R$ 60 million invested in CSR

in 2009

Benefits extended to extractives

communities

Economic:

Strong cash flow generation

Attractive growth and profitability

Consistent dividend payments

Environmental:

Carbon neutral operations

Utilization of refill packages

Sustainable extraction

Use of recycled and recyclable materials

Attractive market with

differentiated growth profile

Corporate and Social Responsibility

Value Proposition

"Triple Bottom Line"

Channel

Products

Corporate

Behavior

Brand

Countries

2009

CAGR %

,,04- ,,09

United States

1.6%

Japan

0.7%

Brazil

14.1%

Mexico

7.4%

Argentina, Chile, Colombia

and Peru

10.8%

Countries in which Natura operates

12.2%

World

351

5.1%

Size of CF&T market

(in US$ billion)

Source: Euromonitor 2009

The markets in which Natura operates represent

12.5%

of the global CF&T market and have a

growth rate of

2.4x

that of the total market

Direct sales share in the CF&T Market

Region

Direct Sales (%)

Latin America

27.3%

Brazil

24.4%

Argentina

23.8%

Chile

19.5%

Colombia

38.5%

Mexico

31.6%

Peru

28.0%

Asia Pacific

11.7%

North America

8.5%

Western Europe

3.2%

Australasia

9.2%

Africa / Middle East

2.3%

Source: Euromonitor 2009

Relevant market with differentiated growth

2008

2009

Natura

2nd place

Brand preference in Brazil

Source: Ipsos Brand Essence

CF&T brand by preference (%)

Ranking

Company

Brand value

(in R$ BN)

Mkt. Cap

(in R$ BN)

1º

Petrobrás (Oil)

19.3

347.1

2º

Bradesco (Bank)

14.9

103.2

3º

Itaú Unibanco (Bank)

13.3

154.4

4º

Banco do Brasil (Bank)

11.0

76.3

5º

Natura (Cosmetics)

6.1

19.5

6º

Skol (Beverages)

5.4

98.2

Most valuable brands among Brazilian public companies ¹

Source: BrandAnalytics and Millward Institute, 2009

Considers Ambev's Market Cap

Preferred Brand

Top 3 preferred

Intention purchase again

Purchased in last 6 months

Considers purchasing

Est. brand recognition

100%

92%

76%

72%

63%

46%

Source: Ipsos Brand Essence

719

850

1.034

2007

2008

2009

119

159

2007

2008

2009

632

731

875

2007

2008

2009

Channel strength

Source: Company, ABEVD (Brazilian Association of Direct Sales Companies)

HAY Consultant annual opinion poll for consultants satisfaction

Available consultants (in thousand)

High productivity

2.2 times higher than

its peers

High satisfaction

90% in 2009

Training

583,000

consultants

trained in 2009

Low

turnover

36% on

average

Consultants are Naturas first consumers

Drive sales through personal relationships

Channels disseminate Natura's values with consultants acting as agents of social transformation

Business model

that generates

income and work

Brazil

3Q10: 984

(+17%)

+19.8%

Int'l

3Q10: 186

(+24% )

+33.9%

Total

3Q10: 1,170

(+18%)

+21.8%

183

123

113

56,7%

68,8%

67,6%

66,8%

67,0%

2007

2008

2009

9M09

9M10

Products and Innovation (R&D)

Innovation index¹ & new products

Source: Company

Note:

Percentage of products launched in the last 24 months in

the companys revenues

* % of net revenue invested in R&D

2.6%*

Number of launches

Innovation Index

Products with

functional, emotional

and philosophical

benefits

Sustainable use of

Brazilian biodiversity

Open Innovation

exceeded 50% of the

projects

2.3%*

Corporate behavior

Evolution on relationship quality

Systematic process of stakeholder engagement:
Consultants, employees, consumers, supplier communities and investors

1,500 people involved

Third company to be publicly listed on the Bovespa Novo Mercado

First Latin American Company to adopt the 2001 Global Reporting Initiative (GRI)

Part of ISE Corporate Sustainability Index

Best company 2009 (Exame); Most admired company 2010 (Carta Capital);
Sustainability Guide 2009 and 2010 (Exame)

On Going...

Brazil

still place for growth

International

more local actions

new growth cycle

People

Leadership and

organization

development

Projects

Logistics for the future

Consistent market growth

GDP

growth

Core market

growth in real

terms

2002

2.7%

2.5%

2003

1.1%

7.0%

2004

5.7%

12.2%

2005

3.2%

9.6%

2006

3.8%

10.1%

2007

5.4%

8.3%

2008

5.1%

10.8%

2009

-0.2%

10.4%

CAGR `02- `09

3.4%

8.9%

2010E

7.5%

Core market growth in real terms vs.

GDP in Brazil

Source: IBGE, Central Bank, Abihpec and FGV

11,1%

15,1%

42,4%

53,0%

16,4%

13,7%

30,2%

18,2%

2003

2004

2005

2006

2007

2008

2009

Brazil- Social Income Classes

Class AB

Class C

Class D

Class E

Increasing purchasing power of C and D income classes

Greater participation of women in the labor market

Cultural emphasis on personal and aesthetic treatments

Demand drivers in Brazil

> R$ 4,808

R$ 1,115 up

to R$ 4,880

R$ 804 up

to R$ 1,115

< R$ 804

Brazil

36 million people will move up to

Classes A,B and C (FGV) until 2020

20 million people left poverty since 2003

10,5

13,2

12,6

9,9

7,9

9,5

2,9

6,7

6,3

7,3

6,1

2003

2004

2005

2006

2007

2008

2009

Natura

Unilever

Avon

Procter & Gamble

O Boticario

Colgate

Natura leadership position in Brazil

Market Share Total CF&T (Euromonitor)

(Percentage)

Natura Market Share per Segment

2009

13.2%

T: 8.9%

CF: 21.3%

Source: Euromonitor 2009

Brazil

¹ Number of households containing at least one product
Source: Kantar Painel

Still place for growth

99,6%

90,8%

89,7%

64,0%

21,5%

13,3%

56,6%

18,0%

37,8%

100

,0%

,
7

,
5

,
7

,
3

Market

Natura

Brazil

Categories Penetration¹

09-2010 Cycle Central Brazil

09-2010 Cycle

São Paulo,

São Paulo State, South

Cover

Inside cover

Back cover

09-2010 Cycle

North/Northeast

Brazil

Regional initiatives: different catalogs

Business Units

Categories

and

Strategies

Key brands

Main goals

Inspiration

Oils

Soaps

Ekos

Amor América

Sève

Face

Makeup

Sunscreen

Chronos

UNA

Aquarela

Faces/Faces ZIP

Fotoequilíbrio

Body, Hair, Beard and

Deodorants

Tododia

Erva Doce

Natura Homem

Plant

- Competition with

retail products

- Daily use products

-Technological

innovation

(protection,

sensations)

- "Beauty" products

Give new meaning to

routines

Reveal beauty

Appreciate diversity

- Use of natural

ingredients

- Innovation in

sensations and

textures

- Sustainable and

recyclable packaging

Fragrance

Childrens

Vertical Strategies

Amó

Humor

Kaiak

Natura Águas

Naturé

Mamãe e Bebê

CPV

-Fragrance and

sample innovation

- Regionalized

fragrances

Strengthen

relationships

INTERNATIONAL

OPERATING PROPOSITION

To be among the

leading

brands in direct CF&T sales

in all Latin America

countries where we

operate in and to be

recognized for its

leadership in sustainability

and with

profitability.

International

Colombia

Mexico

Chile

Peru

Argentina

Latam

LATAM

International

Natura Ranking Evolution

2008 -> 2009

10º-> 8º

11º-> 6º

33º-> 23º

30º-> 22º

10º-> 9º

Total CFT Market (USD)
(global ranking)

3.049

(20º)

7.399

(11º)

1.744

(25º)

2.948

(21º)

1.421

(28º)

Main competitors

Retail

·P&G

·Unilever

·Colgate

Main competitors

Direct sales

·Avon

·Jafra

·Fuller

·Avon

·Natura

·Tsu

·Avon

·Belcorp

·Natura

·Avon

·Jafra

·Fuller

·Belcorp

·Unique

·Avon

·P&G

Unilever

·Colgate

·L´Oréal

·P&G

·Unilever

·P&G

·L´Oréal

·Unilever

·P&G

CFT growth 01-09

(%) CAGR

21%

Sales Natura (at retail prices)¹

(US$ Million)

7.43%

Share Natura 2009

LATAM

245,9

Total

Source: Euromonitor 2009

More local actions new growth cycle

More efficient portfolio management,

including the creation of dedicated

business units (based in Buenos Aires)

Evolution in the commercial model:

stimulate economic, social and

environmental entrepreneurship +

accelerate growth

Increase in advertising /sample: push and

pull (critical mass)

Improvement in cost structure and carbon

emissions, including local third party

manufacturing

Development of local leadership

Create an identity that distinguishes our

corporate performance

International

Mexico, Colombia

2011

Argentina, Chile and Peru

2012

EVOLUTION IN THE COMMERCIAL MODEL

Inspiring leadership

· Agent of change in all aspects life
· Mobilizes people in favor of the common

good

· Shares Naturas beliefs and values
· Consonance between talk and action
· Builds quality relationships
· Innovation capacity
· Global perspective
· Constantly seeks high performance

Engaged Leadership

· Committed to Naturas purpose based

on personal projects

· Responsibility for decision-making
· New challenges
· Successors trainning
· Delivers triple bottom line results
· Personal and professional growth

Well being

Being well

Natura's Leadership Development Program:

Leadership office ("Foco") creation

Carry out the chain of succession for critical positions

Increase the number of leaders developed in-house

Inspiring and engaged leadership development

Leadership Development

People

Expansion of Espaço Natura, Cajamar

4 new DCs in Brazil: Castanhal (PA),

Uberlândia (MG), Curitiba (PR) and São

Paulo, in addition to the expansion of DC

in Canoas (RS)

2 new Hubs in Brazil (Belém and Salvador)

and

3 abroad (Colombia, Chile and Mexico)

Outsourced international production:

Argentina, Colombia, Mexico

Expansion of DCs in Argentina, Chile,

Peru, Colombia and Mexico

Our Network in 2011

Logistics

599

552

447

2007

2008

2009

2007

2008

2009

4,02

3,82

3,63

2007

2008

2009

Social and Environmental Results

emissions

(CO2 emitted / Kg of

product sold)

Power consumption per product

sold

(Kjoules / unit)

Carbon Free since 2007

Ekos 10th anniversary: Sustainable use of biodiversity and cultural heritage.

Engagement with 26 communities, benefiting 2,084 families

Crer Para Ver program improvement of brazilian public education: 7.1% of

the consultants joined the voluntary product selling

CSR Investments

(R$ million)

Corporate and Social Responsibility

706

860

1.008

713

899

2007

2008

2009

9M09

9M10

Economics

Net Revenues

(R$ million)

Source: Company

CAGR ,,07-,,09 = 17.5%

EBITDA and Margin

(R$ million)

CAGR ,,07-,,09 = 19.5%

3.073

3.576

4.242

2.923

3.579

2007

2008

2009

9M09

9M10

23,0%

24,1%

23,8%

24,4%

25,1%

+ 22,5%

23,0%

24,1%

23,8%

24,4%

25,1%

0,2

0,1

0,2

2007

2008

2009

124

103

141

250

2007

2008

2009

2010E

415

500

598

89,0%

96,0%

87,0%

2007

2008

2009

Economics

Dividends paid and pay-out ratio

(in R$ million)

CAGR ,,07-,,09 = 20.0%

Capex

(in R$ million)

Source: Company

Leverage

(Net Debt/EBITDA)

(28)

(38)

(42)

(32)

(25)

2007

2008

2009

9M09

9M10

2007

2008

2009

9M09

9M10

(5)

(1)

2007

2008

2009

9M09

9M10

121

164

219

158

182

2007

2008

2009

9M09

9M10

Economics International operations

Net revenues (R$ million)

EBITDA (R$ million)

ati

ons

i
n cons

oli

dat

i
o

l
l
i
on)

(Argenti

,

Chi

l
e,

P
eru)

ati

ons

i
n i

ple

e
nt

i
on

l
l
i
on)

(Me

Col

ombi

+ 30.4% in

local currency

+ 73.6% in

local currency

Because of its corporate behavior, the

quality of the relationships it establishes and

the quality of its products and services,

Natura will be an international brand,

identified with the community of people who

are committed to building a better world,

based on better relationships among

themselves, with others, with

nature of which they are part,

with the whole.

Vision

Reason for being

Our reason for being is to create and sell

products and services that promote well-

being/being well.

Well-being

is the harmonious, pleasant

relationship of a person with

oneself, with one's body.

Being well

is the empathetic,

successful, and gratifying

relationship of a person

with others, with nature

and with the whole.

Beliefs

Life is a chain of relationships.

Nothing in the universe exists

alone. Everything is

interdependent.

We believe that valuing relationships

is the foundation of an enormous

human revolution in the search for

peace, solidarity, and life in all of its

manifestations.

Continuously striving for

improvement

develops individuals,

organizations,

and society.

Commitment to the truth

is the route to perfecting the quality

of relationships.

The greater the diversity,

the greater the wealth and vitality of the

whole system.

The search for beauty,

which is the genuine aspiration of

every human being, must be free of

preconceived ideas and manipulation.

The company, a living organism, is a

dynamic set of relationships

Its value and longevity are connected to

its ability to contribute to the evolution

of society.

P&L Natura

R$ million

3Q10

3Q09

9M10

9M09

NET REVENUES

1.281,2

1.054,9

3.579,2

2.922,8

Cost of sales

(364,4)

(314,2)

(1.076,2)

(877,6)

GROSS PROFIT

916,8

740,7

2.503,0

2.045,2

Operating expenses

(608,6)

(492,6)

(1.655,3)

(1.405,4)

Financial income (expenses), net

(15,5)

(18,0)

(34,9)

(30,8)

Other operating income (expenses), net

(1,0)

4,8

(14,1)

5,4

INCOME BEFORE INCOME TAX
AND SOCIAL CONTRIBUTION

291,8

234,9

798,7

614,4

Income tax and social contribution

(100,1)

(44,9)

(274,0)

(117,3)

NET INCOME

191,7

190,1

524,7

497,1

Commercial model - CNO

CNO Model

Old Model

CNO

1 CNO : up to 150 CNs

1 GR: 600 CNs

1 GR: up to 15 CNOs

1 GR: up to 2,250 CNs

Hired under CLT regulations

· Platform for channel growth
· Stronger and more productive relationship with our consultants
· Greater emphasis on training

Brazil (2010)

1 GR

12 CNOs

1 CNO

96 CNs

1 GR

1,112 CNs

By the end of the 13

cycle. (3Q10)

Relationship Manager

CNO

Natura Super Consultant

Natura s Consultant

Brazil

Argentina

Brazil

Chile

Peru

Mexico

Colombia

France

Production

Plants: 4 (3 Cajamar + Belem)

Hubs: 1

Distribution Centers: 11

Delivery Points: 1 million

Billed units: 384 million

Total km traveled per year: 1.6 million

Total orders/year: 12.8 million

SKUS: 1,200

Employees: 6,260

Raw material and packaging suppliers: 200

Outsourced (co-producers): 20

*Data as of 2009 source: Natura Annual Report

Our current network

Logistics

Our network in 2011

Logistics

Production

International Production

Hubs

Argentina

Brazil

Chile

Peru

Mexico

Colombia

França

Product Availability

Orders 48-hour

Orders 24-hour

Consultant Cycle (days)

Consumer Cycle (days)

Cost per Order (R$/order)

Non-Conformities

OEE

PPM

Supply Productivity

Gross Margin

Planning Cycle

Supplier Satisfaction

NC/EC Satisfaction

Operational Climate

Inventories (%NR)

Suppliers Terms (%NR)

Accidents w/ absence

Innovation OTIF

Communities

Order Cycle

21 days

Distribution

1,170 thousants

points of sale

Customer Service

CAN, SNAC, Credit and Collection

Separation

Order picking

400 million units year

Production

Plants

Suppliers

Botanic assets extracted

sustainably

66% of the portfolio

is renewed in less

than 2 years

Promotions: around

50% of the sales

volume

Leverage of the

promotional mix:

8 to 15 times

Order Cycle

Logistics