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February 2005
2004 Earnings
Results
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2
2
content
Opening Remarks
Core Business
Financial Performance
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3
3
CF&T target market growth
Brazil
Net revenues in R$ million
Target Market*
Target Market* - by Category
7,217
8,652
1,235
1,632
17.1%
18.9%
2004
2003
+19.9%
(*) Considers only segments where Natura operates. Excludes diapers, oral hygiene items, hair dye, nail polishes, sanitary pads among others.
Note: net revenue at industry prices.
Source: Sipatesp, ABIHPEC.
Market
Natura
Market Share
Cosmetics and
fragrances
Personal
hygiene
3,039
3,698
4,954
883
1,142
490
29.0%
30.9%
9.9%
4,178
352
8.4%
2004
2003
2004
2003
+32.2%
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continuous growth
Consolidated Gross Revenues
R$ million
Consolidated Total Number of
Consultants -
thousands
CAGR (00-04) = 25.7%
CAGR (00-04) = 11.3%
1,168
1,411
1,910
2,540
1,016
2000
2001
2002
2003
2004
+15.0%
+20.8%
+35.4%
+33.0%
282
300
321
375
+6.4%
+7.0%
+16.8%
+15.5%
433
2000
2001
2002
2003
2004
Note: data for 2000 refers to Natura Empreendimentos.
Note: number of consultants at the end of 17th sales cycle.
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strategy
Sales
Channel
Brand
Products
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continuous innovation
Number of New Products and
Total Innovation Index
Innovation + Improvement
Investments in Innovation
R$ million
27.2
28.8
35.5
47.4
10.0
15.1
3.3%
2.9% 2.7%
2.7%
2.3%
2.7%
2001
2002
2003
2004
4Q03
4Q04
165
91
117
2001
2002
2003
2004
182
44.9%
43.5%
48.8%
63.2%
18
38
49.6%
69.2%
4Q03
4Q04
Investments in
Innovation
Number of New
Products
Total Innovation
Index
% Net Revenues
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sales channel in Brazil
growth and productivity
Productivity
1
in Brazil
R$ thousand per average active consultant
Average Active Consultants
thousands
CAGR 01-04
10.8%
Natura
Direct Sales in Brazil
(excludes Natura)
8.5
9.0
10.5
4.8
5.2
5.8
2001
2002
2003
CAGR 01-04
16.4%
11.5
6.6
2004
189
211
247
298
2001
2002
2003
2004
Source: Natura, ABEVD (Brazilian Direct Sales Association)
(1) Volume of orders per average active consultants in the periods.
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sales channel in Latin America
growth and productivity
In Latin America, excluding Brazil, the sales channel has been growing in a
strong pace.
Consultants
1
International
Operations -
thousands
Productivity
2
International
Operations -
US$ thousands
13.0
14.4
20.0
26.3
2001
2002
2003
2004
CAGR 01-04
26.5%
CAGR 01-04
3.1%
2.1
2.3
2003
2004
1.5
2002
2.1
2001
(1) Considers the number of available consultants in Argentina,
Chile and Peru by the end of the 17th sales cycle.
(2) Volume of orders per average active consultants in the periods.
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9
brand - top of mind award
Source: DataFolha
Top of Mind
Ranked 1
st
in "Product
and Beauty Moisturizer"
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10
environmental indicators
0.67
0.87
2003
2004
Water consumption per unit sold
(liters/unit)
39.5%
29.0%
2004
2003
2003
2004
Water re-usage (%)*
Energy consumption per unit sold
(tjoules/unit)
2.6
2.9
2003
2004
603.7
785.2
In 2004, Natura applied to 100% of its product portfolio, the packaging Life Cycle Assessment.
Generation of waste per unit sold
(gram/unit)
-23.0%
-30.1%
-10.3%
* % of treated water re-usage
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social indicators
Natura Consultants - Income Generation
2003: 258
thousands
average active
consultants
R$3.1
thousands
per average
consultant
2004: 313
thousands
average active
consultants
R$3.4
thousands
per average
consultant
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content
Opening Remarks
Opening Remarks
Opening Remarks
Core Business
Core Business
Core Business
Financial Performance
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revenues and gross profit
R$ million - Consolidated
4Q04
4Q03
% change
2004
2003
% change
54
41
33.8
Units resold
1
177
129
36.7
(million of units)
564
435
29.6
Net revenues
1,770
1,329
33.2
385
294
30.7
Gross profit
1,194
871
37.2
68.2
67.7
0.5pp
Margin (%)
67.5
65.5
2.0pp
(1) Total consolidated number of CFT products resold by consultants. Therefore, excludes samples, gifts, resale support material, Crer para Ver product line among others.
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operating expenses
Profit sharing and
management compensation
General and administrative
expenses
1.4%
2.0%
2.5%
34.8%
32.4%
14.7%
34.5%
30.3%
13.6%
32.5%
30.3%
11.7%
2.0%
36.0%
33.8%
14.8%
86.6%
83.3%
80.4%
77.0%
% o
f
net
revenues
Selling expenses
Cost of sales
2001
2002
2003
2004*
Note: For 2001 Natura Empreendimentos figures.
(*) General and administrative expenses exclude R$9.3 million from IPO expenses, in 2004.
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ebitda growth
EBITDA Margin -
%
EBITDA -
R$ million
136
199
296
432
2001
2002
2003
2004
1
4Q03 4Q04
110
143
17%
20%
22%
24%
2001
2002
2003
2004
4Q03 4Q04
25% 25%
1
CAGR 01-04
47%
Note: 1. Pro forma
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international operations
Net Revenues x Losses from
Operations - US$ million
Operational Margin
8.9
7.3
-7.7
-3.4
12.2
-3.2
18.5
-3.3
CAGR 01-04
27.6%
Net revenues
Losses from operations
2001
2002
2003
2004
-86.9%
2001
-46.5%
2002
-26.0%
2003
-17.7%
2004
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CAPEX
CAPEX -
R$ million
120.0
83.4
38.8
25.2
23.9
2005E
2004
2003
2002
2001*
* In 2001 Natura Empreendimentos.
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cash flow
R$ million
2004
2003
% change
Net income for the period
300.3
63.9
370.0
(+) Depreciation
34.3
33.7
1.8
(+) Other non-cash expenses
51.0
142.6
-64.2
(=) Cash generated before working capital,
long-term receivables and long-term liabilities
385.6
240.2
60.5
(-) Changes in working capital, long-term receivables
and long-term liabilities
99.4
38.6
157.5
(=) Operating cash generation
286.2
201.6
42.0
(-) CAPEX and Investments
83.1
23.9
247.7
(=) Free cash generation
203.1
177.7
14.3
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dividends and interest on
capital
Dividends and Interest on capital,
gross -
R$ million
Pay-out
Net income
72.0%
Free cash generation
106.5%
216.3
73.3
113.6
186.9
13.4
16.0
29.4
86.7
129.6
2004 Dividends + Interest on
capital per share:
Gross R$2.55
Net
R$2.50
1S04
2S04
TOTAL
Interest on
capital, gross
Dividends
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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.

Document Outline