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São Paulo, July 20, 2011 ­ Natura Cosméticos S.A.
(BM&FBovespa: NATU3) announces today its results for the second quarter
of 2011 (2Q11).


Natura's consolidated net revenue in the second quarter of 2011 was R$1,393.6
million, up 8.6%. EBITDA was down 1.4% year-on-year to R$327.3 million with a
margin of 23.5%, and net income was R$188.1 million.

In the first half of the year, consolidated net revenue was R$2,539.5 million, up
10.5%. EBITDA was R$591.3 million, up 2.8% year-on-year, with a margin of 23.3%
and net income was at R$338.6 million.

In Brazil, Natura gained 46 basis points in market share in its core market during the first four
months of the year, reaching a 25.4 % share, its highest level.

In our international operations, for the first six months of the year, gross revenues increased
36.6% year-on-year in weighted local currency. The operating results of operations in
consolidation (Argentina, Chile and Peru) went up to R$9.5 million (R$1.8 million in 2010) and
we keep on investing on the operations in implementation (Mexico and Colombia).

Our consultant base showed consistent growth rates. In Brazil we reached about 1.1 million
consultants, up 15.6% by the end of the semester, while in international operations we
reached 217 thousand consultants. The total consolidated number of consultants added up to
1.3 million in the period.

The Cosmetics, Fragrances and Personal Care (CFT) market, despite significant growth, has
grown less than in 2010. According to data from Sipatesp/Abiphec
1
, our core market grew
9.5% in the first four months of the year, as compared to 13.5% in the same period last year.
In this context, the market became even more dynamic and competitive.
1
ABIHPEC/SIPATESP ­ core market of cosmetics, fragrances and personal care market in Brazil and Natura's
market share
Introduction
Introduction
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2

Decelerating economic and CFT market growth rates, as well as our performance below
expectations, prompted us to adopt corrective measures necessary to maintain adequate
profitability for the company this year, adjusting expenses and focusing on productivity gains,
which should happen progressively throughout the second half of the year. Investments in
transformative medium- and long-term projects and initiatives such as innovation, logistics
infrastructure, information systems and leadership development will be maintained.

Simultaneously, we are planning marketing campaigns and important product launches. We
began the second half with the launch of a new concept and subsidiary brand, "VôVó," and the
re-launch of the entire Ekos line, including more ingredients from Brazilianbiodiversity and
new packaging. Our marketing investment plan for the second half is aligned to CFT market
momentum.

The more competitive environment and the entrance of new players stimulate growth in our
business and the continuous efforts to increase efficiency. Natura will stand on its solid
foundations, exceptional culture and values, its top-performing leadership team, a strong and
admired brand, opportunities in new categories and price ranges and a sales team that
continues to grow significantly.

Innovation is our chief means of distinction and long-term growth vector. We will continue to
invest in research and development of products and concepts and, in particular, we plan to
increase our efforts for commercial innovation with emphasis on digital means, based on the
believe that our direct sales model offers a major opportunity to increase service quality both
for the sales team and the final consumer.

We reaffirm our confidence that we will continue to grow above the market and to expand our
operations both in Brazil and abroad.

Cosmetics, Fragrances and Personal Care Market

Natura expanded its market share in the first four months of 2011. According to data from
Sipatesp/Abihpec, our core market grew 9.5% in the period while Natura gained 46 basis
points in market share in this segment.
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3
ABIHPEC/SIPATESP ­ core market of cosmetics, fragrances and personal care
in Brazil and Natura's market share
4M11
4M10
Change %
4M11
4M10
Change %
Cosmetics and Fragrances
2,704.2
2,489.7
8.6%
39.6%
38.2%
1.5
Toiletries
3,262.4
2,958.7
10.3%
13.7%
13.9%
(0.2)
Total
5,966.6
5,448.4
9.5%
25.4%
25.0%
0.5
Source: SIPATESP
Market Share - Natura (%)
Core Market (R$ million)

SOCIAL AND ENVIRONMENTAL PERFORMANCE

In this quarter, we highlight the launch of the Programa Amazônia ("Amazon Program"),
created to generate new business and serve as a catalyst for knowledge, ideas and initiatives.
Natura's challenge with this program is to contribute to the sustainable development of the
Amazon through science, technology and innovation, growing productive chains in the region.
One innovation joins several groups and knowledge in a broad network of exchange ­ energy,
materials and information ­ so that these people and find solutions based on products and
services related to the social and biodiversity of the region to unmask the excellent business
potential in the Amazon.

The program is base don three major initiatives: i) Science, Technology and Innovation
(ST&I); ii) Sustainable Production Chains; and iii) Institutional Fortification. In its first stage,
from 2011 to 2013, the program will focus on expanding the company's operations in the CFT
segment through investments in science, technology and innovation. This will be achieved
through the creation of a Knowledge Center in Manaus, Amazonas State and the expansion of
the Industrial Unit in Benevides, Pará State, with the installation of a modern soap factory.

In our ecoefficiency indicators, we saw a significant decrease in greenhouse gas (GHG)
emissions in the first quarter. We reduced relative emissions by 5.8%. This is primarily due to
a favorable sales mix in which emissions from packaging played a major role in the decline.
Other GHG sources fell as well, such as exports and support materials.
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The table below shows some of our commitments for 2011:
Indicator
2010 Commitment
2010 Results
2011 Commitment
2Q11 Results
Greenhouse gases
Reduce greenhouse gas
emissions by 33% by 2013,
considering the inventory we
conducted in 2006.
-7,3%
(21.2% Throughout the
year)
Reduce gas emissions by 2.7%
(over 2009)
-5,8%
(25.8% Throughout the
year)
Water
consumption
Reduce water consumption per
unit billed by 10%.
0.47 liter/unit billed
(10% reduction)
Reduce water consumption per
unit billed by 10%.
0.58 liter/unit billed
Collections CPV
Collect R$ 6 million from the
sales Crer Para Ver line.
R$ 10 million
Collect R$ 6 million from the
sales Crer Para Ver line.
R$ 2.9 million
*Obs. Refers to 1Q11
**Obs. Refers to May




















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(R$ million)
2Q11
2Q10
Change %
6M11
6M10
Change %
Total Consultants - end of period*
(in thousands)
1,296.1
1,111.5
16.6
1,296.1
1,111.5
16.6
Units sold ­ items for resale
(in million)
113.3
98.6
14.9
213.4
193.3
10.4
Gross Revenues
1,885.1
1,736.2
8.6
3,441.2
3,117.7
10.4
Net Revenues
1,393.6
1,283.6
8.6
2,539.5
2,298.0
10.5
Gross Profit
980.6
883.6
11.0
1,783.2
1,586.3
12.4
Sales Expenses
(486.4)
(413.8)
17.5
(909.3)
(762.6)
19.2
General and Administrative Expenses
(192.3)
(150.3)
28.0
(343.3)
(277.3)
23.8
Management compensation
(3.7)
(2.8)
29.7
(6.9)
(6.8)
0.6
Other Operating Income / (Expenses), net
3.0
(12.4)
n/a
16.8
(13.2)
n/a
Financial Income / (Expenses), net
(21.1)
(12.8)
64.7
(31.3)
(19.4)
61.5
Earnings Before Taxes
280.1
291.5
-3.9
509.2
506.9
0.4
Net Income (Losses)
188.1
191.5
-1.8
338.6
333.1
1.7
EBITDA**
327.3
331.8
-1.4
591.3
575.3
2.8
Gross Margin
70.4%
68.8%
1.5 pp
70.2%
69.0%
1.2 pp
Sales Expenses/Net Revenues
34.9%
32.2%
2.7 pp
35.8%
33.2%
2.6 pp
General and Admin. Expenses/Net Revenues
13.8%
11.7%
2.1 pp
13.5%
12.1%
1.5 pp
Net Margin
13.5%
14.9%
-1.4 pp
13.3%
14.5%
-1.2 pp
EBITDA Margin
23.5%
25.9%
-2.4 pp
23.3%
25.0%
-1.8 pp
(**) EBITDA = Income from operations before financial effects + depreciation & amortization.
(*) Positon at the end of the 8th sales cycle
Consolidated net revenue in 2Q11 was R$1,393.6 million, up 8.6% as compared to 2Q10
and up 10.5% to R$2,539.5 million in 1H11. In Brazil, net revenue grew 7.1% year-on-year
to R$1,274.8 million, growing 9.1% to R$2,327.3 million in the half. International
operations
posted net revenue of R$118.8 million, growing 36.0% in local weighted currency
and 28.0% in reais over 2Q10, while in the half this figure reached R$212.2 million, up 36.0%
in local weighted currency and 28.7% in reais.
2. CONSOLIDATED RESULTS
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Cost of Goods Sold (COGS) decreased from 31.2% of net revenue in 2Q10 to 29.6% in
2Q11, representing an improvement of 160 bps in gross margin. Price increases and our
supplier management, together with the real's appreciation against the dollar, were the main
drivers of this decrease.
In the half, COGS declined 120 bps from 31.0% in 1H10 to 29.8% in
1H11.

The table below presents the main components of COGS:
2Q11
2Q10
6M11
6M10
RM/PM*
82.0
84.2
81.1
82.3
Labor
10.6
9.0
10.0
9.0
Depreciation
1.6
2.9
2.5
3.2
Others
5.8
3.9
6.4
5.4
Total
100.0
100.0
100.0
100.0
(*) Raw material and packaging material
> Composition of Cost of Good Sold
Selling expenses represented 34.9% of net revenue in 2Q11, compared to 32.2% in the
same period of the previous year. In this quarter, we saw reduced dilution in fixed logistics
and sales team costs due to increased costs with warehousing and our opening of new
distribution centers (DCs), as well as intensified expansion of super consultant (CNO) groups,
especially in smaller cities. In the half, selling expenses increased from 33.2% in 2010 to
35.8% in 2011, following the same trend.

General and administrative expenses accounted for 13.8% of net revenue in 2Q11 over
11.7% in 2Q10 due to investments in innovation and strategic projects that will permit future
growth, as we have previously reported. In the half, these expenses represented 13.5% of net
revenue in 2011, as compared to 12.1% in 2010.

Other operating revenues and expenses totaled R$3.0 million, reflecting the non-
recurring effects of the recognition of a one-off PIS and COFINS credit on storage. In the half,
the revenue of R$16.8 million is also a reflection of the non-recurring effect of the recognition
of a contingent PIS and COFINS credit on capital gains taxes.

Net income before income tax and social contribution in 2Q11 was R$280.1 million, as
compared to the R$291.5 million in 2Q10. In 1H11, this line reached R$509.2 million,
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compared to R$506.9 million in 2010. Consolidated net income was R$188.1 million in
2Q11, down 1.8% over the R$191.5 million in 1Q10.

Consolidated EBITDA was R$327.3 million in 2Q11, 1.4% lower than the R$331.8 million
posted in 2Q10, with EBITDA margin at 23.5% (25.9% in 2Q10). In 1H11, EBITDA totaled
R$591.3 million, up 2.8% over the R$575.3 million in 1H10. EBITDA margin was 23.3% in
1H11 and 25.0% in 1H10.
(R$ million)
2Q11
2Q10
Change %
6M11
6M10
Change %
Net Revenues
1,393.6
1,283.6
8.6
2,539.5
2,298.0
10.5
(-) Cost of Sales and Expenses
1,092.4
979.4
11.5
1,999.0
1,771.7
12.8
EBIT
301.2
304.3
-1.0
540.5
526.3
2.7
(+) Depreciation/Amortization
26.1
27.6
-5.4
50.8
49.0
3.7
EBITDA
327.3
331.8
-1.4
591.3
575.3
2.8
> EBITDA (R$ million)
The table below shows the reconciliation of consolidated EBITDA by operating segment:
(R$ million)
2Q11
2Q10
Change %
6M11
6M10
Change %
Brazil
341.0
343.8
(0.8)
628.6
610.7
2.9
Argentina, Chile and Peru
8.2
5.3
52.7
9.5
1.8
414.9
Mexico and Colombia
(6.7)
(6.4)
3.9
(13.4)
(12.8)
4.8
Others Investments
(15.2)
(10.8)
40.0
(33.3)
(24.4)
36.3
Total
327.3
331.8
-1.4
591.3
575.3
2.8
> EBITDA pro-forma by areas of operation (R$ million)
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(R$ million)
6M11
6M10
Var %
Net income
338.6
333.1
1.7
(+) Depreciation and amortization
50.8
49.0
3.7
Internal cash generation
389.4
382.1
1.9
Cashflow (Increase) / Decrease
(109.4)
60.6
na
(+) Non-cash
(18.5)
4.1
na
Operating cash generation
261.5
446.9
(41.5)
Capex
(100.7)
(63.0)
59.8
Free cash flow*
160.9
383.9
(58.1)
(*) (Internal cash generation) +/- (changes in working capital and long-term assets and liabilities) ­ (acquisitions of property,
plants, and equipment).
Internal cash flow was up 1.9% to R$389.4 million in 1H11, slightly above the 1.7% increase
in net income. Of this total, R$109.4 million was invested in working capital and R$100.7
million in fixed assets. With this, free cash flow was R$160.9 million, down 58.1% compared
to 1H10.

In the period we saw increased inventory coverage, mitigated by lower accounts receivable
due to lower than expected sales.

We also saw an increased in recoverable taxes due to a Pis/Cofins credit over financial income
and an ICMS credit due to the increase in inventories. We have a coherent action plan to
significantly reduce this amount in the second half.

In 2010, working capital was benefited mainly by recovery of taxes due to an alteration in the
policy for income tax and social contribution payment.
CASH FLOW (Pro-forma)
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The profit margin of Brazilian exports for international operations was subtracted from the
COGS of the respective operations to show the actual impact of these subsidiaries
2
on the
company's consolidated result. Thus, the pro-forma Income Statement for the Brazilian
operations presents only domestic sales figures.
2
This adjustment is fully applied as 100% of the capital of these subsidiaries is held by Natura Cosméticos S.A.
3. Pro-forma INCOME STATEMENTS
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10
(R$ million)
2Q11
2Q10
Change %
6M11
6M10
Change %
Total Consultants -
end of period
*
(in thousands)
1,079.1
933.8
15.6
1,079.1
933.8
15.6
Units sold ­ items for resale
(in million)
97.6
88.5
10.3
187.7
174.8
7.4
Gross Operating Revenues
1,735.5
1,618.9
7.2
3,174.2
2,909.8
9.1
Net Operating Revenues
1,274.8
1,190.8
7.1
2,327.3
2,133.2
9.1
Gross Profit
907.5
827.5
9.7
1,654.8
1,488.1
11.2
Sales Expenses
(422.6)
(363.8)
16.2
(791.5)
(666.7)
18.7
General and Administrative Expenses
(168.6)
(132.0)
27.7
(293.9)
(239.1)
22.9
Management compensation
(3.7)
(2.8)
29.7
(6.9)
(6.8)
0.6
Other Operating Income / (Expenses), net
3.7
(11.3)
n/a
18.4
(11.2)
n/a
Financial Income / (Expenses), net
(21.9)
(12.4)
76.2
(31.7)
(17.7)
78.9
Earnings Before Taxes
294.5
305.2
-3.5
549.1
546.6
0.5
Net Income (Losses)
204.8
207.5
-1.3
383.6
376.8
1.8
EBITDA
341.0
343.8
-0.8
628.6
610.7
2.9
Gross Margin
71.2%
69.5%
1.7 pp
71.1%
69.8%
1.3 pp
Sales Expenses/Net Revenues
33.2%
30.6%
2.6 pp
34.0%
31.3%
2.8 pp
General and Admin. Expenses/Net Revenues
13.2%
11.1%
2.1 pp
12.6%
11.2%
1.4 pp
Net Margin
16.1%
17.4%
-1.4 pp
16.5%
17.7%
-1.2 pp
EBITDA Margin
26.7%
28.9%
-2.1 pp
27.0%
28.6%
-1.6 pp
(*) Number of consultants by the end of the 8th cycle of sales
The number of consultants in Brazil reached 1,079 thousand at the end of 2Q11,
growing 15.6% compared to 2Q10. The productivity
3
of our consultants in the half
declined 6.1% from R$4,498 in 1H10 to R$4,224 in 1H11.
The innovation index remains in adequate levels, reaching 61.1% by the end of the first
semester.
3
Productivity measured at retail prices
3.1 BRAZILIAN OPERATION
(Pro-forma Income Statement)
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11
2Q11
2Q10
Change %
6M11
6M10
Change %
Total Consultants -
end of period
(in thousand)
142.6
123.7
15.3
142.6
123.7
15.3
Unit sold ­ items for resale
(in million)
10.8
6.8
57.8
16.2
12.2
32.2
Gross Revenues
101.6
85.0
19.5
180.4
149.3
20.8
Net Revenues
77.3
64.9
19.1
137.4
114.0
20.5
Gross Profit
48.1
40.1
19.9
84.5
68.8
22.7
Sales Expenses
(35.0)
(29.8)
17.3
(65.0)
(57.1)
13.9
General and Administrative Expenses
(5.6)
(4.6)
21.1
(10.8)
(9.4)
14.9
Others Income / (Expenses), net
(0.2)
(1.1)
-84.5
(0.9)
(2.0)
-53.0
Financial Income / (Expenses), net
0.8
(0.6)
n/a
0.7
(0.3)
n/a
Earnings Before Taxes
8.2
4.0
105.7
8.5
0.1
6732.1
Net Income (Losses)
6.4
2.2
184.2
4.5
(3.0)
n/a
EBITDA
8.2
5.3
52.7
9.5
1.8
414.9
Gross Margin
62.2%
61.8%
0.4 pp
61.5%
60.4%
1.1 pp
Sales Expenses/Net Revenues
45.2%
45.9%
-0.7 pp
47.3%
50.0%
-2.8 pp
General and Admin. Expenses/Net Revenues
7.3%
7.2%
0.1 pp
7.8%
8.2%
-0.4 pp
Net Margin
8.2%
3.4%
4.8 pp
3.3%
-2.7%
5.9 pp
EBITDA Margin
10.6%
8.2%
2.3 pp
6.9%
1.6%
5.3 pp
Net revenue from operations in consolidation was R$77.3 million in 2Q11, for year-on-
year increases of 30.0% in weighted local currency and 19.1% in reais. Net revenue in
1H11 was R$137.4 million, up 30.4% and 20.5% respectively.
The number of consultants grew 15.3%, reaching 143 thousand at the end of 2Q11.
These operations presented positive EBITDA of R$8.2 million in 2Q11 and R$9.5 million
in the half. The increased marketing investments were offset by the dilution of our
administrative and sales team expenditures and more efficient logistics due to more
orders being made via internet, which now represent more than 70% of all operations.
3.2 OPERATIONS IN CONSOLIDATION (Argentina, Chile and
Peru)
Pro-forma Income Statement
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12
2Q11
2Q10
Change %
6M11
6M10
Change %
Total Consultants -
end of period
(in thousand)
71.4
52.1
36.9
71.4
52.1
36.9
Unit sold ­ items for resale
(in million)
4.6
3.2
46.9
9.0
6.0
50.0
Gross Revenues
42.2
27.7
52.0
76.7
50.2
52.7
Net Revenues
36.4
23.9
52.1
66.1
43.3
52.7
Gross Profit
22.5
13.4
67.2
39.2
24.9
57.5
Sales Expenses
(25.1)
(17.1)
47.4
(45.4)
(32.1)
41.4
General and Administrative Expenses
(3.9)
(3.4)
15.3
(7.6)
(6.5)
15.8
Others Income / (Expenses), net
(0.6)
0.2
n/a
(0.7)
(0.0)
n/a
Financial Income / (Expenses), net
(0.0)
0.2
n/a
(0.3)
(1.4)
n/a
Earnings Before Taxes
(7.1)
(6.8)
5.5
(14.7)
-15.1
-2.6
Net Income (Losses)
(7.6)
(7.2)
5.2
(15.7)
(16.0)
-1.7
EBITDA
(6.7)
(6.4)
3.9
(13.4)
(12.8)
4.8
Gross Margin
61.8%
56.2%
5.6 pp
59.3%
57.5%
1.8 pp
Sales Expenses/Net Revenues
69.1%
71.3%
-2.2 pp
68.7%
74.2%
-5.5 pp
General and Admin. Expenses/Net Revenues
10.7%
14.1%
-3.4 pp
11.4%
15.1%
-3.6 pp
Net Margin
n/a
n/a
-
n/a
n/a
-
EBITDA Margin
n/a
n/a
-
n/a
n/a
-
Operations in implementation posted net revenue of R$36.4 million in 2Q11, growing
56.2% in weighted local currency and 52.1% in reais. Net revenue in 1H11 was R$66.1
million, up 56.2% and 52.7%, respectively.
The number of consultants grew 36.9%, reaching 71 thousand at the end of 2Q11.
These operations had negative EBITDA of R$6.7 million in 2Q11, compared to the
negative R$6.4 million in 2Q10.
In April, we introduced in Mexico a new commercial model called the "Red de Relaciones
Sustentables" (Sustainable Relationships Network), a multilevel model that offers career
paths and economic, social and environmental indicators. Our sales team received this
3.3 OPERATIONS IN IMPLEMENTATION (Mexico and Colombia)
Pro-forma Income Statement
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13
new model very positively; however we are still in a period of adaptation and
adjustments. We are confident that the initiative will be successful in Mexico and will
help us expand our sales team and strengthen our brand in that country.
i
Other international investments, which include our French operation and expenditures
with corporate structuring and projects related to international operations, posted losses
(EBITDA) of R$15.2 million in 2Q11, R$33.3 million in 1H11 (R$10.8 million and R$24.4
million in 2010, respectively). In 2011, the non-recurring expenses related to the new
Mexican commercial model totaled R$6.8 million.
In a meeting held on July 20, 2011, the Company's Board of Directors approved the proposal
for payment on August 12 2011 of dividends relative to the earned income for the first half of
2011 and interest on equity relative to the period between January 1 and July 20 of 2011 in
the amount of R$295.3 million and R$37.5 million (R$31.9 million net of withholding income
tax), respectively.

These dividends and interest on capital relative to the first half of 2011 together represent net
remuneration of R$0.758 per share to be paid on August 12 2011 to shareholders based on
positions as of July 26 2011. As of July 27 2011, the Company's shares will be traded ex-
dividends and ex-interest on equity. Interest on equity will be calculated on July 2011.

In a meeting held on July 20, 2011, the Company's Board of Directors approved a Share
Repurchase Program, to be held in treasury for the exercise of shares purchase options by the
beneficiaries of Option Granting Plans or Subscription of Common Shares approved by the
Company, at the limit of four million common shares, representing 2.3% of the total
outstanding shares.
4. DIVIDENDS
5. SHARE REPURCHASE
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14

Acquisition operations will be done at market prices in BM&FBOVESPA's bidding, with
intermediation of the following financial institutions: BTG Pactual and Morgan Stanley CTVM,
no later than 365 days, counting from August 1 2011 to July 31 2012, while the Board is due
to set the dates for the repurchase to be effectively executed.

Portuguese:
Friday, July 22, 2011
10:00 A.M. - Brasília time
English:
Friday, July 22, 2011
12:00 P.M. - Brasília time
Calling from Brazil: +55 (11) 4688-6341
Calling from the U.S.: Toll Free +1 (888) 700 0802
Calling from other countries: +1 (786) 924 6977
Access code: Natura

Live webcast at:
www.natura.net/investidor
CONFERENCE CALL & WEBCAST
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15

Telephone: (11) 4196-1421
Helmut Bossert,
helmutbossert@natura.net
Patrícia Anson,
patriciaanson@natura.net
Bruno Caloi,
brunocaloi@natura.net
Bruno Compagnoli,
brunocompagnoli@natura.net


INVESTOR RELATIONS
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16
ASSETS
Jun/11
Dez/10
LIABILITIES AND SHAREHOLDERS' EQUITY
Jun/11
Dez/10
CURRENT ASSETS
CURRENT LIABILITIES
Cash and cash equivalents
622.4
560.2
Borrowings and financing
347.8
226.6
Trade accounts receivable
437.2
570.3
Trade and other payables
315.2
366.5
Inventories
675.3
571.5
Payroll, profit sharing and related taxes
154.3
162.7
Recoverable taxes
159.0
101.5
Taxes payable
407.9
366.0
Other receivables
96.2
66.4
Derivatives
20.9
4.1
Total current assets
1,990.1
1,869.9
Other payables
57.1
64.7
Total current liabilities
1,303.3
1,190.7
NONCURRENT LIABILITIES
NONCURRENT ASSETS
Borrowings and financing
664.5
465.1
Recoverable taxes
102.4
109.3
Taxes payable
231.2
215.1
Deferred income tax and social contribution
218.8
180.3
Provision for tax, civil and labor risks
67.7
73.8
Escrow deposits
379.9
337.0
Provision for healthcare plan
21.6
19.7
Other noncurrent assets
46.6
44.9
Total noncurrent liabilities
985.0
773.7
Property, plant and equipment
587.1
560.5
Intangible assets
135.5
120.1
Total noncurrent assets
1,470.3
1,352.0
SHAREHOLDERS' EQUITY
Capital
427.0
418.1
Capital reserves
153.7
149.6
Earnings reserves
284.1
282.9
Accumulated income
339.1
-
Proposed additional dividend
-
430.1
Other comprehensive losses
(31.6)
(23.2)
Total equity attributable to owners of the Company
1,172.1
1,257.5
TOTAL ASSETS
3,460.4
3,221.9
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
3,460.4
3,221.9
> Balance Sheets on June 30 2011 and December 31 2010
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17
R$ million
6M11
6M10
NET REVENUE
2,539.5
2,298.0
Cost of sales
(756.3)
(711.8)
GROSS PROFIT
1,783.2
1,586.2
OPERATING (EXPENSES) INCOME
Selling
(909.3)
(762.6)
Administrative and general
(343.0)
(277.3)
Management compensation
(7.2)
(6.8)
Other operating (expenses) income, net
16.8
(13.2)
INCOME FROM OPERATIONS BEFORE FINANCIAL (EXPENSES) INCOME
540.5
526.3
Financial expenses
(81.1)
(57.1)
Financial income
49.8
37.7
INCOME BEFORE INCOME TAX AND SOCIAL CONTRIBUTION
509.2
506.9
Income tax and social contribution
(170.6)
(173.9)
NET INCOME
338.6
333.1
> Accounting Demonstrations of the Results for Quarters ending
on June 30 2011 and 2010
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18
R$ million
6M11
6M10
CASH FLOW FROM OPERATING ACTIVITIES
Net income
338.6
333.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
50.8
49.0
Provision for losses on swap and forward contracts
23.8
(7.9)
Provision for tax, civil and labor contingencies
(5.0)
(1.4)
Interest and inflation adjustment of escrow deposits
(11.9)
(10.1)
Income tax and social contribution
170.6
173.9
(Gain) Loss on sale on property, plant and equipment and intangible assets
5.2
11.5
Interest and exchange rate change on borrowings and financing and other liabilities
14.1
(1.0)
Stock options plans expenses
5.6
3.8
Provision for discount on assignment of ICMS credits
0.1
0.5
Allowance for doubtful accounts
(1.1)
2.8
Allowance for inventory losses
27.1
(27.8)
Provision for healthcare plan
1.8
6.7
Recognition of tax credits related to lawsuit
(16.9)
-
602.9
533.0
INCREASE / DECREASE IN ASSETS AND IN LIABILITIES
Trade accounts receivable
134.1
13.0
Inventories
(130.9)
(3.7)
Recoverable taxes
(33.9)
(4.1)
Other assets
(31.5)
2.2
Domestic and foreign suppliers
(51.3)
4.8
Payroll, profit sharing and related taxes, net
(8.5)
(3.7)
Taxes payable
27.6
2.4
Other payables
(7.7)
8.8
Provision for tax, civil and labor contingencies
(1.1)
(2.3)
Subtotal
(103.1)
17.4
OTHER CASH FLOWS FROM OPERATING ACTIVITIES
499.9
550.3
Payments of income tax and social contribution
(178.7)
(79.3)
Payments of derivatives
(6.9)
1.4
Payment of interest on borrowings and financing
(29.0)
(19.2)
NET CASH PROVIDED BY OPERATING ACTIVITIES
285.2
453.2
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment and intangible assets
(100.7)
(63.0)
Proceeds from sale of property, plant and equipment and intangible assets
2.6
2.1
Escrow deposits
(31.0)
(36.4)
NET CASH USED IN INVESTING ACTIVITIES
(129.1)
(97.3)
CASH FLOW FROM FINANCING ACTIVITIES
Payments of borrowings and financing - principal
(106.0)
(546.0)
Proceeds from borrowings and financing
432.9
497.6
Payment of dividends and interest on capital
(430.1)
(357.6)
Capital increase through subscription of shares
8.9
5.5
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
(94.3)
(400.5)
Gains (losses) on translation of foreign-currency cash and cash equivalents
0.3
0.3
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
62.2
(44.3)
>
Accounting Demonstrations of Cash Flows for Quarters ending
on June 30 2011 and 2010
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19
EBITDA is not used in the accounting practices adopted in Brazil, and thus it does not represent the cash flow for the periods. It
should also not be considered an alternative to net income as an indicator of operating performance or as an alternative to cash
flow as an indicator of liquidity. EBITDA does not have a standardized meaning and its definition by the company may not be
comparable to the Brazilian LAJIDA or to EBITDA as defined by other companies. Although, according to the accounting practices
adopted in Brazil, EBTIDA does not provide a measure of cash flow, the Management utilizes it to measure the Company's
operating performance. Furthermore, we understand that certain investors and financial analysts utilize EBITDA as an indicator of
the operating performance and/or cash flow of companies.

This report contains forward-looking statements. This information represents not only historical facts, but also reflects the wishes
and expectations of Natura's management. The words "anticipate," "wish," "expect," "forecast," "intend," "plan," "predict,"
"project," "aim" and similar terms identify statements that necessarily involve known and unknown risks .Known risks include
uncertainties that are not limited to the impact of price and product competition, product acceptance in the market, product
transitions of the Company and its competitors, regulatory approval, currencies, currency fluctuation, supply and production
difficulties and changes in product sales, among other risks. This report also contains "pro forma" information prepared by the
Company to be used exclusively for information and reference purposes, since it is not audited. This report is current up to the
present date and Natura does not undertake to update it in the event of new information and/or future events.