background image
12
th
Annual Latin
American Conference
January 15-18, 2008
background image
|
company
overv
iew
|
value proposition
|
financial results
|
strategic actions
a g e n d a
2
background image
c o m p a n y
o v e r v i e w
background image
|
CF&T core market
fragrances, make-up, skin care and toiletries
|
direct sales ­ single level
700 thousand consultants
1
|
market share
21.4% of the target market
2
|
innovation expenses
3.5% of net sales
3
(1) Consultants in Argentina, Brazil, Chile, Peru, Mexico, Venezuela and Colombia
(2) Market share in 10M07; Source:SIPATESP
(3) Innovation Investment in 9M07
4
background image
Peru
1994
Chile
1982
Argentina
1994
Brasil
1969
Paris
2005
México
2005
Venezuela
2007
Colômbia
2007
i n t e r n a t i o n a l
o p e r a ti o n s
EUA
2008E
5
50.4
7.2
1.9
1.8
0.9
1,3
2.0
18,2
14,1
Total CF&T Market Size
Retail Prices, 2006 (US$ billion)
Source: Euromonitor
background image
00's
80's
90's
70's
company foundation
direct sales model
pioneer in refill products in Brazil
first operation abroad (Chile)
reasons for being and beliefs
truly beautiful women concept
preparing for expansion
Ekos line launch
Cajamar Plant
IPO NATU3
opening of Casa Natura
(Paris, Campinas, Mexico City
and Bogotá)
o u r h i s t o r y
business start-up
regional and portfolio expansion
social and corporate responsibility
sustainable development
6
background image
Cajamar plant
Area: 700 thousand square meters
background image
r e a s o n f o r
b e i n g
create and sell products
& services that promote
well-being
being well
the harmonious,
pleasant relationship of
a person with oneself,
with one's body
the empathetic, successful,
and gratifying relationship
of a person with others,
with nature, and with the
whole
well-being
being well
background image
v a l u e
p r o p o s i t i o n
background image
10
Brand
Corporate behavior
Products & Concepts
Channel
First and foremost,
our consultants are individuals
Our consultants are our
first consumers
Sales through relationships
Dissemination of well
being well
·
Low turnover rate:
28%
Sustainable development
· Consistent economic
results
· Greater generation and
distribution of wealth
· Care with the environment
Relationship quality
Carbon Free,
since 2007
v a l u e p r o p o s i t i o n
· With the whole
Science and popular tradition
Products that drive a better
relationship:
· With your body
· With yourself
· With others
Low environmental impact
Safety and quality
Pleasure in use
Expenses with R&D
· 3.5% of net revenues
background image
f i n a n c i a l
r e s u l t s
background image
gross revenues ­ consolidated
R$ million
CAGR (2002-2006) = 28.9%
3.4%
2.9%
2.6%
2.5%
2.5%
3,890
3,244
2,540
1,910
1,411
2002
2003
2004
2005
2006
gross revenues - Brazil
gross revenues - International
+19.9%
4.4%
3.3%
2,989
2,689
9M06
9M07
+11.2%
background image
consultants
1
­ consolidated
in thousands
520
2005
321
2002
375
2003
433
2004
2006
617
+18.6%
(1) Consultants in Argentina, Brazil, Chile, Peru e Mexico
CAGR (2002-2006) = 17.7%
699
597
9M06
9M07
+17.2%
background image
EBITDA margin ­ consolidated
(%)
20.1
2002
22.2
2003
24.4
2004
24.7
2005
23.7
2006
-1.0 pp
23.5
25.0
9M06
9M07
-1.5 pp
background image
innovation index ­ Brazil
(%)
2002
43.5
2003
48.8
2004
63.2
2005
69.8
2006
58.4
2002
2003
2004
2005
2006
-11.4 pp
(1) Innovation index: Gross Revenues from innovating products (launched or improved in the last 24 months) of the year /
Total Gross Revenues of the year
54.2
66.8
9M06
9M07
-1.5 pp
background image
market share ­ Brazil
(%)
14.3
14.5
2001
2002
17.1
2003
2004
19.2
2005
21.4
21.4
22.2
10M06
10M07
-0.8 pp
(1) Market share in the core market: Skin care, sunscreen, makeup, perfumes, fragrances, hair care, shaving products and deodorant -
excludes diapers, nail polishes, sanitary pads, hair dyes and oral hygiene. Source: Sipatesp/ ABHIPEC.
background image
s t r a t e g i c
a c t i o n s
17
background image
c o r p o r a t e s t r u c t u r e
greater simplicity and focus
|
Latin America
|
Brazil
|
Brazil
|
other markets
guaraná
18
background image
avelã
restart and acceleration of growth
|
organizational structure
|
integration of innovation, marketing and sales areas
|
optimization of innovation structure
|
marketing
|
rebalancing of marketing mix
|
higher investments, offset by productivity gains
|
innovation
|
decrease the number of sku's
|
focus on breakthroughs
B r a z i l
19
background image
avelã
evolution in our commercial model
B r a z i l
|
CNO project
1
|
improve relationship with consultants
|
Casa Natura
|
brand experience
|
enhance integration with consultants
|
distribution decentralization
|
reduction of delivery time
(1) CNO: Consultora Natura Orientadora (super reps).
20
background image
C N O p r o j e c t
Single level model
Bi-level model CNO
Sales
Supervisor
CN
Final
Consumer
Sales
Supervisor
Final
Consumer
CNO
CNO
21
pitanga
CN
CN
CN
CN
background image
C a s a N a t u r a
background image
d i s t r i b u t i o n
d e c e n t r a l i z a t i o n
For illustrative purposes, does not represent the real distribution pattern;
São Paulo
Minas Gerais
Pernambuco
background image
fast growth plan for the next 5 years
L a t i n A m e r i c a
|
consolidation of LATAM
|
increase in efficiency and profitability
|
targets in 2012
|
estimated market size US$17,6 billion
1
|
4% ­ 5% market share
2
camomile
(1) Euromonitor International (retail prices)
(2) Natura's market share forecasted for total CFT market in Latin America, excluding Brazil.
24
background image
new opportunities
o t h e r m a r k e t s
|
start up in the USA
|
autonomous structure
|
segregated budget
|
consolidation in France
|
direct sales model
|
flagship store
cotton
25
background image
in our strategy
c o n f i d e n c e
|
Strong brand
|
values and beliefs aligned to sustainability
|
Engaged channel
|
low turnover rate
|
Scale and productivity gains
|
frozen overhead
|
International growth
consistently high
|
(2002-2006 CAGR of 59% and 61% in 9M07 x 9M06)
1
26
(1) In US$
background image
This presentation contains forward-looking statements. Such statements are not statements of
historical fact, and reflect the beliefs and expectations of the Matura'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
27