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8.6
Consultants´ Productivity
(R$ thousand/year)
2001
4.8
Natura
Market (including Natura)
9.0
2002
5.2
10.4
2003
5.6
Fact Sheet 3Q04
Corporate Profile
One of the leading companies in the Brazilian
cosmetic, fragrance and toiletry industry.
Founded in 1969 as a laboratory and a single store in
São Paulo.
In 1974, it decided to concentrate on direct sales,
setting up the Natura Consultants network.
In the 80s, the company launched a major drive to
expand its product lines and its presence in the
Brazilian market growing by over 30 times in the
period
In 1994, Natura began to look abroad, strengthening
its position in Argentina, Chile and Peru.
In 2000, the Ekos line was launched, based on the
sustainable use of Brazilian biodiversity.
In May 2004, IPO on the São Paulo Stock
Exchange´s (BOVESPA) New Market (NATU3).
,
.
300
2001
2002
2003
321
375
Consolidated Number of Consultants
(Brazil and Latin America)
(thousand)
429
Gross Revenue (R$ million)
1995
1996
1997
1998
1999*
2000*
2001
2002
2003
587
688
806
833
1,016
1,168
1,411
1,910
* Refer to Natura Empreendimentos
CAGR
21%
EBITDA (R$ million)
EBITDA Margin (%)
17%
20%
136
2001
2002
199
2003
296
22%
Growth
Direct Sales
Why Natura?
Sector growth in Brazil has been outpacing
the global sector and brazilian GDP
Direct sales growth higher than that of
convention channels
Excellent expansion prospects in Latin
America
Greater distribution reach
Low product launch costs
Natura Consultants' productivity level
above market average
Sound Finances
Innovation
EBITDA margin of 24% in 9M04
Strong and consistent free cash flow
Low capex needs
High potential dividend payments
New products account for a high
proportion of revenues
Constant renewal of product portfolio
Increasing recourse to the sustainable use
of brazilian biodiversity
Brazil's biggest cosmetics R&D center,
employing over 100 scientists
(1) Position at the end of the 13 sales cycle
(2) Argentina, Chile and Peru
th
Financial Summary
(1)
(1) Pro-forma
R$ million
3Q04
3Q03
% Change
9M04
9M03
Units Sold (million)
47.4
35.9
32.2
131.7
101.4
29.8
Gross Revenues
645.7
481.8
34.0
1.738.4
1.289.4
34.8
Net Revenues
448.2
331.7
35.1
1.205.9
893.8
34.9
Gross Profit
306.3
222.5
37.7
809.7
576.1
40.6
Gross Margin (%)
68.4
67.1
-
67.1
64.5
-
EBITDA
104.5
75.7
38.0
289.0
186.0
55.4
EBITDA Margin (%)
23.3
22.8
-
24.0
20.8
-
Net Income
77.4
18.4
319.8
200.9
35.4
467.8
Net Debt/(Investments)
(32.0)
54.2
n/a
(32.0)
54.2
n/a
Available Consultants in Brazil (thousand)
392.1
340.2
15.3
392.1
340.2
15,3
1
Available Consultants in Latin
24.0
18.3
31.6
24.0
18.3
31.6
America (thousand)
1
2
% Change
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Markets
Products
Operations
Sales Channels
Market Share
97,5% of sales in Brazil and 2.5% in Latin America
Creams, lotions, eaus de toilette and fragrances, make-
up and toiletry items
600 individual products
In the first 8 months of 2004, according to Sipatesp,
Natura accounted for:
Brazil´s biggest cosmetics R&D center
State-of-the-art equipment and installations
142 millions units sold in 2003 (9M04: 132 million)
Direct, via 392 thousand consultants covering more
than 5,000 Brazilian municipalities
Approximately 24,000 consultants in other Latin
American countries
12,2% of the total revenues of the Brazilian cosmetic
sector and
18,7% of the categories where it operates
More than 40% of cosmetics´direct sales
* September 2004
Company's Performance
Investor Relations Team
José David Vilela Uba
Helmut Bossert
Ricardo Capella
Sandra Matsumoto
Vice President of Finance and Investor
Relations Officer
Investor Relations Manager
Tel. (11) 4446-2180
helmutbossert@natura.net
Tel. (11) 4446-2712
ricardocapella@natura.net
Tel. (11) 4446-2932
sandramatsumoto@natura.net
Equipe de Relações com Investidores
www.natura.net/investor
*
Corporate Governance
Natura maintains a constant
commitment to the highest standards of
corporate governance, emphasized by
the company's listing on the Bovespa's
New Market in June, 2004:
Tag-along rights for all shareholders
Only common shares with voting rights
*
Core Product Lines
Natura Ekos ( Brazilian
biodiversity assets )
Mamãe & Bebê ( products for
mothers and babies )
Make-up items
Chronos (anti wrinkle products )
Eaus de Toilette
Social Responsibility
*
Natura´s sustainable development
initiatives include
Natural or Plant Resource Certification Program
(green tea, cocoa and
)
Sustainable Development Program with those
communities supplying raw materials
guaraná
Social and Environmental Initiatives
and Partnerships
Biodiversity Brazil Project
Canguçu Project
Which aims to encourage issues related to
Biodiversity
Which consists in the creation of parameters for
measuring the impact of carbonic dioxide
emissions
Vale do Rio Doce Atlantic Rainforest
Environmental Education and
Recovery Project
Trilhas Project
Rio de Janeiro Botanical Gardens
Pomar Project
Which aims the reconstruction of the
Rainforest ecosystem
Which consists in the recovery and
implementation of eco-tourism tracks in
the city of Ilhabela, São Paulo
Which aims to support the improvement
and maintanance of medicinal plants beds
in the Botanical Gardens
Which consists in the environmental
recovery of the borders of the Pinheiros
River in São Paulo
This Fact Sheet contains foward-looking information, which involves risks and
uncertainties. For further details, please refer to information recently filed at
CVM (Brazilian SEC) or access the company's website.