background image
1
23 de março de 2005
2Q05 Earnings Results
July 29, 2005
pdfMachine by Broadgun Software - a great PDF writer! - a great PDF creator! - http://www.pdfmachine.com http://www.broadgun.com
background image
2
Target market
1
- Net revenues
R$ billion, nominal
Natura - Market Share
(%)
(1) Skin care, sunscreen, makeup, perfums, fragrances, hair care,
shaving products and deodorant - excludes diapers, nail polishes, sanitary
pads, hair dyes and oral hygiene. Source: Sipatesp/ ABHIPEC
4.7
5.3
6.3
7.2
8.7
2000
2001
2002
2003
2004
historical figures:CF&T target market
and Natura's market share
13.9%
14.3% 14.5%
17.1%
2000
2001
2002
2003
1
2004
18.9%
(1) Natura Empreendimentos figures.
CAGR (00-04) nominal 16.6%
CAGR (00-04) real
2
6.8%
(2) Deflated by IPCA.
background image
3
CF&T target market growth in Brazil
(First four months of 2005)
Net revenues: Target Market*
R$ million
2,435
2,876
1
st
four months
2004
+18.1%
Net revenues: Natura -
R$ million
and Market Share -
%
452
589
18.6%
20.5%
+30.3%
Market Share
1
st
four months
2005
1
st
four months
2004
1
st
four months
2005
(1) Skin care, sunscreen, makeup, perfums, fragrances, hair care, shaving products and deodorant - excludes diapers, nail polishes, sanitary pads, hair dyes
and oral hygiene. Source: Sipatesp/ ABHIPEC. Note: net revenues at industry prices.
background image
4
CF&T target market growth in Brazil
per category
(First Four months of 2005)
Cosmetics and Fragrances
Personal Hygiene
940
1,116
32.2%
36.2%
+18.7%
+33.3%
303
404
1,760
185
1,496
149
10.0%
+17.7%
+24.3%
10.5%
Market
Natura
Market Share
Net revenues in R$ million
1
st
four months
2004
1
st
four months
2005
1
st
four months
2004
1
st
four months
2005
(1) Skin care, sunscreen, makeup, perfums, fragrances, hair care, shaving products and deodorant - excludes diapers, nail polishes, sanitary pads, hair dyes
and oral hygiene. Source: Sipatesp/ ABHIPEC. Note: net revenues at industry prices.
background image
5
Consolidated Total Number of
Consultants -
thousands
Consolidated Gross Revenues
R$ million
gross revenues and total number of
consultants
CAGR (02-04) = 16.1%
(*) number of consultants at the end of the 9
th
sales cycle.
CAGR (02-04) = 34.2%
1,093
1,404
617
2Q04
793
2Q05
1H04
1H05
+28.5%
400
484
Jun-04*
Jun-05*
+21.1%
+28.5%
background image
6
Consultants in Brazil
in thousands
CAGR (02-04) = 15.1%
Jun-04*
Jun-05*
378
454
+20.2%
CAGR (02-04) = 13.0%
2,876 3,085
5,261
5,637
2Q04
2Q05
1H04
1H05
+7.1%
+7.3%
sales channel in Brazil
growth and productivity
Productivity
1
in Brazil
R$ per average active consultant
(*) number of consultants at the end of the 9
th
sales cycle.
(1) Volume of orders per average active consultants in the periods.
background image
7
22.0
29.9
Jun-04*
Jun-05*
+35.9%
CAGR (02-04) = 35.1%
CAGR (02-04) = 24.9%
639
693
1,170
1,252
2Q04
2Q05
1H04
1H05
+7.0%
+8.4%
sales channel in Latin America
growth and productivity
Consultants
1
International
Operations -
thousands
Productivity
2
International
Operations -
US$
(*) number of consultants at the end of 9
th
sales cycle.
(1) Considers the number of available consultants in Argentina, Chile and
Peru.
(2) Volume of orders per average active consultants in the periods.
background image
8
2.9% 2.7% 2.7%
3.0%
2.6%
91
117
2002
2003
2004
182
43.5%
48.8%
63.2%
61.3%
69.7%
28.8
35.5
47.4
19.6
29.5
2002 2003 2004
1H04
1H05
60
81
1H04
1H05
continuous innovation
Investments in Innovation
R$ million
Number of New Products and
Total Innovation Index
Innovation + Improvement
% of net revenues
Number of New
Products
Total Innovation
Index
Investments in
Innovation
background image
9
Social Results: Crer para Ver
1H05
1H04
05 x 04
Gross revenues
(R$ million)
3.8
2.6
46.2%
Sell products from Crer para Ver line:
Environmental Results: Life Cycle Assessment (LCA)
LCA Results in the First Half:
Natura's average environmental impact*
10.2
100 % of launched products under LCA packaging analysis
2005
2004
10.3
social corporate responsibility
(*) This indicator considers weighted average environmental impact and number of items sold.
background image
10
2Q05
2Q04
% change
Units sold - items for resale
(in millions)
48.7
41.6
17.1
Net revenues
557.7
428.5
30.1
Gross profit
383.2
282.6
35.6
Margin (%)
68.7
65.9
-
EBITDA
128.7
102.2
25.9
Margin (%)
23.1
23.9
-
Net income
87.9
78.8
11.5
Margin (%)
15.8
18.4
-
In R$ million - Consolidated
financial summary - quarter
background image
11
1H05
1H04
% change
Units sold - items for resale
(in millions)
94.4
76.3
23.7
Net revenues
984.9
757.7
30.0
Gross profit
665.3
503.4
32.2
Margin (%)
67.6
66.4
-
EBITDA
223.8
184.6
21.3
Margin (%)
22.7
24.4
-
Net income
157.6
123.5
27.6
Margin (%)
16.0
16.3
-
financial summary - accumulated
In R$ million - Consolidated
background image
12
ebitda and margin
EBITDA -
R$ million
EBITDA margin -
%
CAGR (02-04) = 47.3%
102
129
185
224
2Q04
2Q05
1H04
1H05
+21.3%
24.4%
22.7%
1H04
1H05
+25.9%
23.9%
23.1%
2Q04 2Q05
background image
13
operations - Latin America
(Argentina, Chile and Peru)
Net Revenues -
US$ million
Operational Margin
CAGR (02-04) = 59.2%
4.3
6.6
7.6
11.6
2Q04
2Q05
1H04
1H05
-14.6% -15.3%
-19.7%
-18.0%
2Q04
2Q05
1H04
1H05
+52.2%
+55.3%
background image
14
international expansion
1H04
1H05
2004
Total Net Expenses* -
R$ million
(*) considers operating loss from existing operations (Argentina, Chile and Peru) added to, (i) new operations (Mexico and France); and
(ii) exchange rate impact on controlled companies balance sheet translations.
2005E
4.5
18.6
12.2
41.0
background image
15
CAPEX
CAPEX -
R$ million
25.2
23.9
83.1
2002
2003
2004
2005E : R$120 million
53.1
1H05
background image
16
cash flow
R$ million
1H05
1H04
% change
Net income for the period
157.6
123.5
27.6
(+) Depreciation
20.1
17.1
17.5
(+) Other non-cash expenses
7.2
4.6
56.5
(=) Cash generated before working capital,
long-term receivables and long-term liabilities
184.9
145.2
27.2
(-) Changes in working capital, long-term receivables
and long-term liabilities
40.5
11.8
243.2
(=)Operating cash generation
144.4
133.4
8.2
(-) CAPEX
53.1
26.8
98.1
(=)Free cash generation
91.3
106.6
-14.4
background image
17
dividends + interest on
capital net of taxes
1H04
1H05
1.00
1.20
Dividends and Interest on capital,
net -
R$
+20.0%
(*) Dividends + interest on capital net of taxes.
Total -
R$ million
101.8
84.7
Payout*
Net income
64.6
%
68.6
%
Free cash flow 111.5
%
79.5
%
1H05
1H04
Dividends and Interest on capital,
net
background image
18
3Q05 Conference
call and Webcast
3Q05 earnings
release
October 26, 2005
(after São Paulo Stock Exchange trading hours)
next earnings release - 3Q05
October 27, 2005
background image
19
This presentation contains forward-looking statements. Such statements are not statements of historical
fact, and reflect the beliefs and expectations of the Natura's management. The words "anticipates",
"wishes", "expects", "estimates", "intends", "forecasts", "plans", "predicts", "projects", "targets" and
similar words are intended to identify these statements, which necessarily involve known and unknown
risks and uncertainties. Known risks and uncertainties include, but are not limited to, the impact of
competitive products and pricing, market acceptance of products, product transitions by the Company
and its competitors, regulatory approval, currency fluctuations, production and supply difficulties, changes
in product sales mix, and other risks. This presentation also includes pro-forma information prepared by
the Company for information and reference purposes only, which has not been audited. Forward-looking
statements speak only as of the date they are made, and the Company does not undertake any obligation
to update them in light of new information or future developments.
www.natura.net/investor