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23 de março de 2005
3Q05 Earnings Results
October 28, 2005
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Target Market
1
- Net Revenues
(R$ billion, nominal)
historical figures: CF&T target
market - Brazil
CAGR (FY00-FY04) nominal 16.6%
CAGR (FY00-FY04) real
2
6.8%
4.7
5.3
6.3
7.2
8.7
2000
2001
2002
2003
2004
5.2
8M04
6.1
8M05
+17.1%
(1) Skin care, sunscreen, makeup, perfums, fragrances, hair care, shaving products and deodorant - excludes
diapers, nail polishes, sanitary pads, hair dyes and oral hygiene. Source: Sipatesp/ ABHIPEC
(2) Deflated by IPCA.
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Natura - Market Share
(%)
historical figures: Natura's market share
CF&T target market - Brazil
(1) Natura Empreendimentos figures.
13.9%
14.3%
14.5%
17.1%
2000
2001
2002
2003
1
2004
18.6%
8M04
8M05
18.9%
21.0%
Target market: Skin care, sunscreen, makeup, perfums, 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 target market Brazil vs. Natura
Net Revenues by category
(accumulated 8 months 2005)
Cosmetics and Fragrances
R$ million
Personal Hygiene
R$ million
2,133
2,537
8M05
8M04
+18.9%
+30.3%
681
888
3,544
391
3,061
298
+15.8%
+30.9%
Market
Natura
8M05
8M04
Target market: Skin care, sunscreen, makeup, perfums, 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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Cosmetics and Fragrances -
%
Personal Hygiene -
%
Natura's market share
CF&T target market Brazil
by category
30.9%
32.0%
35.0%
2004
8M04
8M05
9.9%
9.7%
11.0%
2004
8M04
8M05
Target market: Skin care, sunscreen, makeup, perfums, 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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CAGR (2002-2004) = 16.1%
(*) number of consultants at the end of the 13
th
sales cycle.
CAGR (2002-2004) = 34.2%
1,738
2,214
646
3Q04
810
3Q05
9M04
9M05
+27.4%
416
509
Sep-04*
Sep-05*
+22.3%
+25.4%
Natura's gross revenues and total
number of consultants - consolidated
Consolidated Total Number of
Consultants -
thousands
Consolidated Gross Revenues
R$ million
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(1) Volume of orders per average active consultants in the periods.
CAGR (2002-2004) = 15.1%
Sep-04*
Sep-05*
392
475
+21.2%
CAGR (2002-2004) = 13.0%
2,966
2,837
7,998
8,476
3Q04
3Q05
9M04
9M05
+6.0%
+4.5%
Natura's sales channel in Brazil
growth and productivity
Consultants in Brazil
in thousands
Productivity
1
in Brazil
R$ per average active consultant
(*) number of consultants at the end of the 13
th
sales cycle.
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24.2
34.0
Sep-04*
Sep-05*
+40.9%
(*) number of consultants at the end of the 13
th
sales cycle.
(1) Considers the number of consultants in Argentina, Chile, Peru and
Mexico.
CAGR (2002-2004) = 35.1%
CAGR (2002-2004) = 24.9%
666
690
1,836
1,942
3Q04
3Q05
9M04
9M05
+5.8%
+3.5%
Natura's sales channel in Latin
America - growth and productivity
Consultants
1
International
Operations -
thousands
Productivity
2
International
Operations -
US$
(2) Volume of orders per average active consultants in Argentina, Chile
and Peru, during the periods.
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2.9% 2.7% 2.7%
2.9%
2.7%
91
117
2002
2003
2004
182
43.5%
48.8%
63.2%
61.1%
69.6%
28.8
35.5
47.4
32.3
45.4
2002 2003 2004
9M04
9M05
144
130
9M04
9M05
continuous innovation
Investments in Innovation
R$ million
Number of New Products and
Total Innovation Index
(Innovation + Improvement)
% of net revenues
Number of New
Products
Total Innovation
Index
Investments in
Innovation
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Life Cycle Assessment (LCA) and Selling of Refill:
Social Results: Crer para Ver
9M05
9M04
05 x 04
5.56
4.89
13.7%
Natura's average environmental impact*
9.6
100 % of launched products under LCA packaging analysis
(*) This indicator considers weighted average environmental impact and number of items sold.
9M05
9M04
10.1
% of refill over total items sold
16.5
9M05
9M04
16.1
social corporate responsibility
Selling of Products from Crer para Ver Line:
Gross revenues
(R$ million)
Social Results: EJA
(Young and Adults Education Program)
Number of Enrollments:
Effective enrollments for the Second semester:
Effective enrollments for FY05:
35,000 students
67,000 students
Environmental Results:
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3Q05
3Q04
% change
Units sold - items for resale
Brazil
(in millions)
54.1
43.6
24.1
Net revenues
571.4
448.2
27.5
Gross profit
391.7
306.3
27.9
Margin (%)
68.6
68.4
-
EBITDA
145.7
104.5
39.4
Margin (%)
25.5
23.3
-
Net income
100.9
77.4
30.4
Margin (%)
17.7
17.3
-
In R$ million
financial summary - quarter
consolidated figures
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9M05
9M04
% change
Units sold - items for resale
Brazil
(in millions)
148.4
119.9
23.8
Net revenues
1,556.2
1,205.9
29.1
Gross profit
1,057.0
809.7
30.5
Margin (%)
67.9
67.1
-
EBITDA
369.6
289.0
27.9
Margin (%)
23.7
24.0
-
Net income
258.4
200.9
28.7
Margin (%)
16.6
16.7
-
financial summary - nine months
consolidated figures
In R$ million
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ebitda and margin
consolidated figures
EBITDA -
R$ million
EBITDA margin-
%
CAGR (2002-2004) = 47.3%
105
146
289
370
3Q04
3Q05
9M04
9M05
+27.9%
24.0%
23.7%
9M04
9M05
+39.4%
23.3%
25.5%
3Q04 3Q05
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Net revenues -
US$ million
Operational margin* -
%
CAGR (2002-2004) = 59.2%
5.1
7.3
12.7
18.9
3Q04
3Q05
9M04
9M05
+48.9%
+44.1%
operations - Argentina, Chile and Peru
-12.5%
-10.2%
-16.3%
-12.9%
3Q04
3Q05
9M04
9M05
(*) We started excluding new operations structuring expenses from
operating results, in order to better reflect the performance of those
more mature operations (Argentina, Chile and Peru).
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international expansion
9.9
28.5
12.2
9M04
9M05
2004
Total net expenses* -
R$ million
41.0
2005E
(*) considers operating loss from existing operations (Argentina, Chile and Peru) added to, (i) new operations (Mexico and France); and
(ii) exchange rate impact on controlled companies balance sheet translations.
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CAPEX
CAPEX
-
R$ million
25.2
23.9
83.1
2002
2003
2004
2005E : R$120 million
83.8
9M05
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cash flow
consolidated figures
R$ million
9M05
9M04
% change
Net income for the period
258.4
200.9
28.7
(+) Depreciation
31.3
25.8
21.3
(+) Other non-cash expenses
38.4
12.8
200.0
(=) Cash generated before working capital,
long-term receivables and long-term liabilities
328.2
239.5
37.0
(-) Changes in working capital, long-term receivables
and long-term liabilities
54.8
52.8
3.8
(=)Operating cash generation
273.4
186.6
46.5
(-) CAPEX
83.8
44.1
90.0
(=)Free cash generation
189.6
142.5
33.1
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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 Natura'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