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February 29, 2008
2007 Fourth Quarter
and Full Year
Earnings Results
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CF&T core market Brazil
>
Core Market
1
Net Revenues (R$ billion, nominal)
(1) Core market: Skin care, sunscreen, makeup, fragrances, hair care, shaving products and deodorant - excludes diapers, nail polishes, sanitary
pads, hair dyes and oral hygiene. Source: Sipatesp /ABHIPEC.
CAGR (2002-2007) = 15.5%
2004
8.7
2003
7.2
2002
6.3
2005
10.1
+13.4%
2006
11.4
10.3
10M07
9.1
10M06
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market share Brazil
>
Natura's Market Share in the Core Market
1
(%)
(1) Core market: Skin care, sunscreen, makeup, fragrances, hair care, shaving products and deodorant - excludes diapers, nail polishes, sanitary
pads, hair dyes and oral hygiene. Source: Sipatesp /ABHIPEC.
2004
2003
2002
2005
2006
19.2
17.1
14.5
21.4
22.8
-0.3 pp
21.9
10M07
22.2
10M06
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consolidated gross revenues
429
1995
587
1996
688
1997
806
1998
833
19991
1,016
20001
1,168
2001
1,411
2002
1,910
2003
2,540
2004
3,244
2005
3,890
2006
4,302
2007
+10.6%
>
Consolidated Gross Revenues (R$ million)
CAGR (1995-2007) = 21.2%
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consolidated number of
consultants
>
Total Number of Consultants
1
(thousands)
321
+16.4%
433
2004
375
2003
2002
520
2005
617
2006
2007
2007
719
(1) Consultants in Argentina, Brazil, Chile, Peru, Mexico, Venezuela and Colombia.
CAGR (2002-2007) = 17.5%
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consolidated Ebitda
>
EBITDA margin (%)
>
EBITDA (R$ million)
2006
2007
4Q06
4Q07
655
702
178
199
+12.3%
+7.3%
2006
2007
4Q06
4Q07
23.7
22.8
20.8
21.3
+0.5 pp
-0.9 pp
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consolidated net income
>
Net income margin (%)
>
Net income (R$ million)
2006
2007
4Q06
4Q07
461
462
117
136
+16.2%
+0.3%
2006
2007
4Q06
4Q07
16.7
15.0
13.7
14.5
+0.8 pp
-1.7 pp
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innovation
>
Number of New Products and Total
Innovation Index
innovation + improvements
>
Investments in Innovation
(R$ million)
2007
2006
87
109
2007
2006
225
183
2005
67
3.2%
3.5%
3.4%
2005
213
69.8%
58.4%
56.8%
Number of new
products
Total innovation
index
% of net revenues
Investments in
innovation
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CAPEX
>
CAPEX (R$ million)
2005
2008E
135
112
2006
194
2007
121
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consolidated cash flow
pro forma
>
Consolidated cash flow pro forma (R$ million)
2006
2007
Change %
462.3
460.8
0.3
74.9
54.6
37.2
537.2
515.4
4.2
(209.1)
(73.1)
(46.6)
(46.7)
281.4
395.6
(28.9)
(120.9)
(193.6)
160.5
202.0
(20.5)
(37.5)
186.2
(0.1)
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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dividends and interest on capital
Pay-out 2007
Net income
89%
Free cash flow
255%
Dividends + Interest on capital, net,
per share
2007
409
354
2006
+15.5%
>
Dividends and Interest on Capital, net (R$ million)
2005
R$ 0.74
2006
R$ 0.83
2007
R$ 0.95
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sustainability
Carbon neutral Over the next five years, we will reduce our emissions throughout the
productive chain by 33%, and, starting in 2008, we will compensate for Natura's 2007
emissions.
Organic alcohol In 2007, we started replacing common alcohol used in our products to
organic alcohol, prioritizing the use of natural resources instead of chemical inputs.
Vegetable Oil We continue making progress in the substitution of animal and oil-made
components by vegetable ones in our products.
These initiatives can be evidenced in our Environmental Table, an initiative started in 2007.
Based on the nutrition facts table, which is mandatory for food products, we have made
available on the packages and on the Internet six indicators detailing the origin and destination
of the materials used in our products.
Refills Participation of refills over total billed items grew from 19.8% in 2006 to 21.4% in
2007, above the target of 20% for the period.
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attachments
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sales channel Brazil
>
Productivity in Brazil (R$ thousand
per average active consultant)
>
Consultants in Brazil
1
(thousands)
2006
2007
561
632
+12.7%
2006
2007
4Q06
4Q07
12.5
12.2
3.5
3.5
-0.4%
-2.6%
(1) Number of consultants at the end of the 17
th
sales cycle.
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sales channel
operations under consolidation
>
Productivity (US$ thousand per
average active consultant)
>
Consultants in Argentina,
Chile and Peru
1
(thousands)
2006
2007
51
69
+35.5%
2006
2007
4Q06
4Q07
2.8
2.9
0.8
0.8
+5.8%
+5.2%
(1) Number of consultants at the end of the 17
th
sales cycle.
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CF&T core market Brazil
net revenues per category
>
Toiletries (R$ million)
>
Cosmetics and Fragrances
(R$ Million)
Market
Natura
10M06
10M07
10M06
10M07
1,465
1,642
555
613
5,004
5,559
4,077
4,741
+11.1%
+10.5%
+12.1%
+16.3%
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CF&T core market Brazil
Natura's market share per category
>
Toiletries (%)
>
Cosmetics and Fragrances
(%)
35.9%
34.6%
11.1%
11.0%
-1.3 pp
-0.1 pp
10M06
10M07
10M06
10M07
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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.
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