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1
October 23rd, 2009
earning results 3T09
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2
8.7
10.1
11.5
13.0
15.2
6.4
7.7
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2004
2005
2006
2007
2008
6M08
6M09
core market CF&T - Brazil
>
Core Market
1
­ Net Revenues (R$ billion, nominal)
CAGR (2004-2008) = 15,0%
+17.3%
+20.3%
(1) 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/ ABIHPEC.
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3
19.2%
21.4%
22.8%
22.1%
21.6%
21.8%
22.3%
17.0%
18.0%
19.0%
20.0%
21.0%
22.0%
23.0%
24.0%
2004
2005
2006
2007
2008
6M08
6M09
market share - Brazil
>
Natura's Market Share in the Core Market
1
(%)
-0.5pp
+0.5pp
(1) 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/ ABIHPEC.
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4
1,770
2,282
2,757
3,073
3,576
2,442
2,923
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2004
2005
2006
2007
2008
9M08
9M09
net revenue
>
Consolidated Net Revenue (R$ million)
+16.4%
+19.7%
*
*
*
* Reclassification of raw material sales for processing by third parties, previously considered revenue. We emphasize that this
adjustment does not affect the absolute value of the consolidated gross margin.
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5
432
564
654
706
847
605
704
24.4%
24.7%
23.7%
23.0%
23.7%
24.8%
24.1%
-
200
400
600
800
1,000
1,200
2004
2005
2006
2007
2008
9M08
9M09
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Consolidated EBITDA (R$ million)
EBITDA Margin (%)
EBITDA and EBITDA margin
>
consolidated EBITDA
1
(R$ million) and EBITDA margin (%)
+20.0%
+16.3%
*
*
*
(1) Results after 2007 adjusted for Law 11,638/07.
* Reclassification of raw material sales for processing by third parties, previously considered revenue. We emphasize that this
adjustment does not affect the absolute value of the consolidated gross margin.
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6
465
518
379
497
-
100
200
300
400
500
600
2007
2008
9M08
9M09
net income
>
Consolidated Net Income
1
(R$ million)
+11.3%
+31.1%
(1) Results after 2007 adjusted for Law 11,638/07.
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7
15.1%
14.5%
15.5%
17.0%
13.0%
13.5%
14.0%
14.5%
15.0%
15.5%
16.0%
16.5%
17.0%
17.5%
2007
2008
9M08
9M09
net income margin
>
Consolidated Net Income Margin
1
(%)
-0.7pp
+1.5pp
*
*
*
(1) Results after 2007 adjusted for Law 11,638/07.
* Reclassification of raw material sales for processing by third parties, previously considered revenue. We emphasize that this
adjustment does not affect the absolute value of the consolidated gross margin.
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8
433
520
617
719
850
803
988
0
200
400
600
800
1,000
1,200
2004
2005
2006
2007
2008
9M08
9M09
sales channel
>
Total Number of Consultants
1
(thousand)
CAGR (2004-2008) = 18,4%
+18.2%
+23.0%
(1) Consultants in Argentina, Brazil, Chile, Peru, Mexico, Venezuela and Colombia.
Position at the end of the 13
h
sales cycle period
in Brazil operations and 12
th
sales cycle in international operations.
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9
attachments
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10
407
483
561
632
731
692
839
0
100
200
300
400
500
600
700
800
900
2004
2005
2006
2007
2008
3T08
3T09
sales channel - Brazil
>
Total Number of Consultants in Brazil
1
(thousand
)
CAGR (2004-2008) = 15,8%
+15.5%
+21.3%
(1)
Position at the end of the 13
th
sales cycle period
.
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11
9.1
9.7
10.0
10.0
10.1
6.8
6.7
-
2.0
4.0
6.0
8.0
10.0
12.0
2004
2005
2006
2007
2008
9M08
9M09
productivity - Brazil
CAGR (2004-2008) = 2,7%
>
Productivity
1
in Brazil (R$ thousand per average available consultant
)
+1.8%
-0.4%
(1)
At retail prices
.
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12
26
36
51
69
90
86
108
0
20
40
60
80
100
120
2004
2005
2006
2007
2008
9M08
9M09
sales channel ­ operations under consolidation
>
Total Number of Consultants in Argentina, Chile and Peru
1
(thousand
)
CAGR (2004-2008) = 36,1%
+29.6%
+26.5%
(1)
Position at the end of the 12
th
sales cycle period
.
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13
104
88
66.9%
66.8%
0
20
40
60
80
100
120
140
9M08
9M09
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
72.3
72.1
3.0%
2.5%
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
9M08
9M09
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
innovation
>
Investments in Innovation
(R$ million)
>
Number of New Products and
Total Innovation Index
(innovation + improvements)
-0.3%
-15.4%
% of net revenues
Investments
in innovation
Number of new
products
Total innovation
index
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14
111.6
193.6
124.1
102.7
140.0
61.0
76.8
-
50.0
100.0
150.0
200.0
250.0
2005
2006
2007
2008
2009e
9M08
9M09
CAPEX
>
CAPEX (R$ milhões)
-36.3%
26.0%
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15
cash flow pro-forma
9M09
9M08
Change %
Net income
497.3
379.4
31.1
(+) Depreciation and amortization
68.0
64.9
4.8
Internal cash generation
565.3
444.3
27.2
Operating working capital*
(181.1)
65.6
(376.3)
Other assets and liabilities**
(37.2)
(40.2)
(7.6)
Operating cash generation
347.0
469.6
(26.1)
Capex
(76.8)
(61.0)
26.0
Free cash flow***
270.2
408.7
(33.9)
> Consolidated cash flow ­ pro-forma (R$ million)
(*) Assets - Accounts receivable, inventories, and short-term recoverable taxes. Liabilities - Suppliers,
payrolls, profit sharing and social charges, tax liabilities, provisions, and freight payable.
(**) Assets - Advance to employees and suppliers, short-term deferred income and social contribution
taxes, other credits, and long-term assets. Liabilities - Other short and long-term accounts payable and
provisions for tax, civil, and labor losses.
(***) (Internal cash generation) +/- (changes in working capital and long-term assets and liabilities) ­
(acquisitions of property, plants, and equipment).
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3.64
4.37
0.42
0.51
-
1.00
2.00
3.00
4.00
5.00
6.00
6M08
6M09
Market
Natura
2.79
3.35
0.99
1.22
-
1.00
2.00
3.00
4.00
5.00
6.00
6M08
6M09
Market
Natura
CF&T core market¹ ­ Brazil
net revenues per category
>
Cosmetics and Fragrances
(R$ Billion)
>
Personal Hygiene
(
R$ Billion)
+23.3%
+20.3%
+22.5%
+20.3%
(1) 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/ ABIHPEC.
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11.4%
11.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
6M08
6M09
35.4%
36.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
6M08
6M09
CF&T core market¹ ­ Brazil
Natura's market share per category
>
Cosmetics and Fragrances
(%)
>
Personal Hygiene
(
%)
+0,2%
+0,9%
(1) 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/ ABIHPEC.
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18
sustainability
social and environmental performance
Relationship with communities
With the Ekos line, in 2000 we started a new cycle in the company's history, as a way of establishing and
maintaining this relationship network with local communities and incorporating it into Natura´s business
model.
We assume this challenge to
encourage environmental preservation
and
appreciation of folk knowledge
.
Access to these raw materials is obtained through supply agreements with extractivist communities, family
farmers and rural businesspeople.
One recent example of this relationship is the new Açaí product line of Natura Ekos, whose active ingredient,
the Brazilian fruit açaí, is acquired from COFRUTA, a cooperative located in the Abaetetuba community in
Pará State that has been Natura's partner since 2007 and also supplies other botanical inputs.
As a result of this launch, the community sold 2.4 times more açaí by volume purchased from communities.
Approximately 80 families have directly benefited from this partnership.
COFRUTA's açaí is grown according to sustainable management principles and holds the organic certification
seal granted by the Instituto de Mercado Ecológico (IMO in Brazil.)
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19
sustainability
social and environmental performance
Environmental
Water:
In 3T09 there was an 18% reduction in the consumption of water per unit produced
1
.
Energy:
We improved our efficiency in the energy matrix (electricity and solar energy, diesel oil and LP
gas), reducing energy consumption per unit produced
1
by 28%.
Carbon:
In September, the company launched the Edital Carbono Neutro 2009 (2009 Neutral Carbon
Notice) for selecting 2009/2010 emissions compensation projects that it will finance throughout this period.
Voluntary projects for emissions reduction and/or GHG (Greenhouse Gas) removal focusing on Voluntary
Emissions Reductions (VER) will be selected
2
.
1. Data refer to Cajamar unit.
2. Unit for voluntary emissions reductions and/or GHG removal, equal to a metric ton of carbon dioxide equivalent, calculated according to global warming
potentials defined by the Kyoto Protocol).
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20
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.
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