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1
October 24th, 2008
earning results 3Q08
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2
core market CF&T - Brazil
>
Core Market
1
­ Net Revenues (R$ billion, nominal)
(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.
CAGR (2003-2007) = 15.9%
2
4
6
8
10
12
14
+13.2%
+12.0%
7.2
8.7
10.1
11.4
13.0
5.7
6.4
2003
2004
2005
2006
2007
6M07
6M08
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3
market share - Brazil
>
Natura's Market Share in the Core Market
1
(%)
-0.7pp
5
10
15
20
25
17.1
19.2
21.4
22.8
22.1
22.5
21.8
2003
2004
2005
2006
2007
6M07
6M08
-0.7pp
(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
>
Consolidated Net Revenue (R$ billion)
net revenue
753
921
2,135
2,472
1,000
2,000
3,000
3Q07
3Q08
9M07
9M08
22.
3%
15.
8%
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5
>
Consolidated EBITDA (R$ million)
EBITDA
27.
0%
19.
4%
179
227
503
600
200
400
600
3Q07
3Q08
9M07
9M08
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6
>
Consolidated EBITDA Margin (%)
EBITDA margin
10
20
30
23.5
24.3
23.8
24.7
9M07
9M08
3Q07
3Q08
0.9pp
0.7pp
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7
>
Consolidated Net Income (R$ million)
net income
31.
6%
16.
2%
117
154
327
380
100
200
300
400
3Q07
3Q08
9M07
9M08
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8
>
Consolidated Net Income Margin (%)
net income margin
5
10
15
20
15.3
15.4
15.5
16.7
9M07
9M08
3Q07
3Q08
0.1pp
1.2pp
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9
>
Total Number of Consultants
1
(thousand)
sales channel
CAGR (2003-2007) = 17.7%
(1) Consultants in Argentina, Brazil, Chile, Peru, Mexico, Venezuela and Colombia.
Position at the end of the 13
th
sales cycle period
in Brazil operations and 12
th
sales cycle in international operations.
+16.4%
+14.6%
200
400
600
800
375
433
520
617
719
702
804
2003
2004
2005
2006
2007
3Q07
3Q08
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attachments
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11
>
Total Number of Consultants in Brazil
1
(thousand)
sales channel - Brazil
CAGR (2003-2007) = 15.5%
+12.7%
+11.1%
(1)
Position at the end of the 13
th
sales cycle period
.
200
400
600
800
355
407
483
561
632
622
692
2003
2004
2005
2006
2007
3Q07
3Q08
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productivity - Brazil
CAGR (2003-2007) = 3.8%
-2.6%
2.0%
>
Productivity in Brazil (R$ thousand per average active consultant)
4
8
12
14
10.5
11.5
12.3
12.5
12.2
2.9
3.0
2003
2004
2005
2006
2007
3Q07
3Q08
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sales channel ­ operations under consolidation
CAGR (2003-2007) = 36.3%
+35.5%
+31.2%
>
Total Number of Consultants in Argentina, Chile and Peru
1
(thousand)
(1)
Position at the end of the 12
th
sales cycle period
.
20
26
36
51
69
65
86
20
40
60
80
100
2003
2004
2005
2006
2007
3Q07
3Q08
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produtivity - operations under consolidation
CAGR (2003-2007) = 8.4%
+5.2%
11.7%
>
Productivity in Argentina, Chile e Peru (US$ thousand per
average active consultant)
1
2
3
4
2.1
2.5
2.7
2.8
2.9
0.7
0.8
2003
2004
2005
2006
2007
3Q07
3Q08
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innovation
% of net revenues
Investments
in innovation
1.0
2.0
3.0
4.0
>
Investments in Innovation (R$ million)
%
74.3
72.3
3.5
2.9
20
40
60
80
9M07
9M08
R$ million
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Number of new
products
Total innovation
index
40
80
120
20
40
60
80
%
units
>
Number of New Products and Total Innovation Index
(innovation + improvements)
147
153
54.2
66.9
9M07
9M08
innovation
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CAPEX
>
CAPEX (R$ million)
100
200
300
112
194
121
90
73
61
2005
2006
2007
2008E
9M07
9M08
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cash flow pro-forma
(1) Assets ­ Accounts receivable, inventories and recoverable taxes short term. Liabilities - suppliers, salaries, profit sharing and related
charges, taxes payable, provisions and accrued freight.
(2) Assets ­ Advances to employees and suppliers, short term deferred income tax and social contribution, other credits and long term
receivables. Liabilities: other short and long term payables and reserve for taxes, civil and labor contingencies
(3) (Internal cash generation) +/- (changes in working capital and long-term assets and liabilities) ­ (acquisitions of property, plants,
and equipment).
9M08
9M07
Change %
Net income
379.6
326.7
16.2
(+) Depreciation and amortization
63.7
53.8
18.5
Internal cash generation
443.3
380.5
16.5
Operating working capitalą
67.8
(82.4)
Other assets and liabilities˛
(28.5)
(20.7)
Operating cash generation
482.6
277.3
74.0
Capex
(61.0)
(73.4)
Free cash flowł
421.7
203.9
106.8
> Consolidated cash flow ­ pro-forma (R$ million)
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CF&T core marketą ­ Brazil
net revenues per category
>
Cosmetics and Fragrances
(R$ Billion)
>
Personal Hygiene
(
R$ Billion)
+11.6%
2.47
2.79
0.94
0.99
1
2
3
4
6M07
6M08
1
2
3
4
3.26
3.64
0.35
0.42
6M07
6M08
+18.9%
+12.6%
+4.8%
Market
Natura
(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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CF&T core marketą ­ Brazil
Natura's market share per category
>
Cosmetics and Fragrances
(%)
>
Personal Hygiene
(
%)
-2.6pp
+0.7pp
10
20
30
40
10
20
30
40
(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.
38.0
35.4
6M07
6M08
10.7
11.4
6M07
6M08
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sustainability
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carbon neutral
Our target
Reduce Greenhouse gas emissions by 33% from 2006 until 2011.
Redesigned Sales Catalog
Reduction on the environmental impact of Sales Catalog of
32.0%
compared to the
previous version;
Change in the type of paper and remodelling the graphical design decreased in the amount
of raw materials used in the production and the reduction in the number of pages;
Economy of 3.5 thousand tons/year of paper and a reduction of 4.5 thousand ton CDE/year
in the atmosphere.
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Energy
Target of reduction: 2%
Reached in our energy matrix (Electricity, Diesel and LPG) a reduction of
5.8%
in the nine
months of 2008 compared with the same period of 2007.
Water
Target of reduction: 2%
We reached a reduction in the total volume of cubic meters of
6.8%
in the nine months of
2008 compared with the same period of 2007.
energy and water
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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