3Q07 Earnings Results. October 26, 2007

Transcription

1 Earnings Results October 26,

2 CF&T core market Brazil > Core Market 1 Net Revenues (R$ billion, nominal) CAGR ( ) = 16.5% % % H06 1H07 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.

3 market share Brazil > Natura`s Market Share in the Core Market 1 (%) pp -0.3pp H06 1H07 3 (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.

4 CF&T market Latin America > CF&T market 2006 (US$ billion, nominal) 18.2 Total LA excluding Brazil = US$ 15.2 billion in 2006 Natura s Market Share 1 = 0.6% in Brazil Mexico Argentina Colombia Venezuela Chile Peru Source: Euromonitor (1) Market share, excluding Brazil, estimate by Natura 4

5 consolidated gross revenues and number of consultants > Consolidated Gross Revenues (R$ million) > Total Number of Consultants 1 (thousands) 699 2,989 2, % +17.2% 985 1, % (1) Consultants in Argentina, Brazil, Chile, Peru, Mexico, Venezuela and Colombia. 5

6 consolidated EBITDA > EBITDA (R$ million) > EBITDA Margin (%) % -2.5 pp pp -2.3% 6

7 consolidated net income > Net Income (R$ million) > Net Income Margin (%) % -3.6 pp pp -12.1% 7

8 innovation > Investments in Innovation R$ million > Number of New Products and Total Innovation Index innovation + improvements 3.5% 3.2% 66.8% 54.2% % of net revenues Investments in innovation Total innovation index Number of new products 8

9 attachments 9

10 sales channel Brazil > Consultants in Brazil 1 (thousands) > Productivity in Brazil (R$ thousand per average active consultant) % -3.3% % (1) Position at the end of the 13 th sales cycle period. 10

11 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) % +4.7% % (1) Position at the end of the 12 th sales cycle period. 11

12 CAPEX > CAPEX (R$ million) E 12

13 consolidated cash flow pro forma R$ million Change % 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 13

14 CF&T target market Brazil net revenues per category > Cosmetics and Fragrances R$ Million > Personal Hygiene R$ Million 3,258 2,889 2,475 2, % +16.1% % % 350 1H06 1H07 1H06 1H07 Market Natura 14

15 CF&T target market Brazil Natura s market share per category > Cosmetics and Fragrances % > Personal Hygiene % 38.5% 38.0% -0.5pp 11.2% 10.7% -0.5pp 1H06 1H07 1H06 1H07 15

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. 16