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1
October 26, 2007
3Q07 Earnings Results
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2
CF&T core market ­ Brazil
>
Core Market
1
­ Net Revenues (R$ billion, nominal)
CAGR (2001-2006) = 16.5%
2002
2003
2004
2005
6.3
7.2
8.7
10.1
+13.4%
2006
11.4
5.0
1H06
5.7
1H07
+14.2%
(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/ ABHIPEC.
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3
market share ­ Brazil
>
Natura`s Market Share in the Core Market
1
(%)
2002
2003
2004
2005
14.5
17.1
19.2
21.4
+1.4 pp
2006
22.8
22.8
1H06
22.5
1H07
-0.3pp
(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/ ABHIPEC.
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CF&T market ­ Latin America
Source: Euromonitor
(1) Market share, excluding Brazil, estimate by Natura
>
CF&T market ­ 2006 (US$ billion, nominal)
Brazil
Mexico
Argentina
Venezuela
Colombia
Chile
18.2
7.2
2.0
1.8
1.9
1.3
Peru
0.9
Total LA excluding Brazil = US$ 15.2 billion in 2006
Natura's Market Share
1
= 0.6% in 2006
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consolidated gross revenues and
number of consultants
>
Consolidated Gross Revenues
(R$ million)
>
Total Number of Consultants
1
(thousands)
2,689
9M06
985
3Q06
1,052
3Q07
+6.8%
2,989
9M07
+11.2%
+17.2%
3Q06
3Q07
699
597
(1) Consultants in Argentina, Brazil, Chile, Peru, Mexico, Venezuela and Colombia.
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consolidated EBITDA
>
EBITDA (R$ million)
>
EBITDA Margin (%)
477
9M06
183
3Q06
179
3Q07
-2.3%
503
9M07
+5.4%
25.0
9M06
26.3
3Q06
23.8
3Q07
-2.5 pp
23.5
9M07
-1.5 pp
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consolidated net income
>
Net Income ­ (R$ million)
>
Net Income Margin ­ (%)
344
9M06
133
3Q06
117
3Q07
-12.1%
327
9M07
-5.0%
18.1
9M06
19.1
3Q06
15.5
3Q07
-3.6 pp
15.3
9M07
-2.8 pp
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innovation
>
Investments in Innovation
R$ million
>
Number of New Products and Total
Innovation Index ­
innovation + improvements
3.2%
61
74
3.5%
9M06
9M07
160
147
66.8%
54.2%
9M06
9M07
Number of new
products
Total innovation
index
% of net revenues
Investments in
innovation
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attachments
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10
sales channel ­ Brazil
>
Consultants in Brazil
1
(thousands)
>
Productivity in Brazil (R$ thousand
per average active consultant)
+13.9%
3Q06
3Q07
622
547
8.9
9M06
3.1
3Q06
2.9
3Q07
-5.9%
8.6
9M07
-3.3%
(1)
Position at the end of the 13
th
sales cycle period
.
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sales channel ­
operations under consolidation
>
Consultants in Argentina, Chile
and Peru
1
(thousands)
>
Productivity in Argentina, Chile e Peru
(US$ thousand per average active consultant)
+41.9%
3Q06
3Q07
65
46
2.0
9M06
0.7
3Q06
0.7
3Q07
+2.6%
2.1
9M07
+4.7%
(1)
Position at the end of the 12
th
sales cycle period
.
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CAPEX
>
CAPEX (R$ million)
112
2005
194
2006
130
2007E
135
9M06
73
9M07
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13
9M06
9M07
Change %
326.7
344.0
- 5.0%
53.8
40.6
32.5%
380.5
384.6
- 1.1%
- 82.4
- 68.2
- 20.7
- 10.7
277.3
305.7
- 9.3%
- 73.4
- 134.9
203.9
170.8
19.4%
consolidated cash flow ­
pro forma
R$ million
Net income
(+) Depreciation and amortization
Internal cash generation
Operating working capital
1
Other assets and liabilities
2
Operating cash generation
Capex
Free cash flow
(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
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>
Cosmetics and Fragrances
­
R$ Million
2,132
2,475
1H06
1H07
820
941
>
Personal Hygiene
­
R$ Million
2,889
3,258
1H06
1H07
323
350
Market
Natura
+16.1%
+14.7%
+12.8%
+8.2%
CF&T target market ­ Brazil
net revenues per category
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CF&T target market ­ Brazil
Natura's market share per category
38.5%
38.0%
11.2%
10.7%
>
Cosmetics and Fragrances
­
%
>
Personal Hygiene
­
%
-0.5pp
-0.5pp
1H06
1H07
1H06
1H07
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16
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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