3. Our reason for being is to create and sell
products and services that promote
well-being/being well.
WELL-BEING
is the individual's harmonious, agreeable relationship
with himself/herself, with his/her body.
BEING WELL
is the individual's empathetic, successful and
pleasurable relationship with others, with the nature
he/she is part of, with the whole
REASON
FOR BEING
4. Commitment to the truth is the path to
quality relationships.
With greater diversity of parts, to whole
is richer and more vital.
The pursuit of beauty, a legitimate
longing of every human being, should be
free from prejudice and manipulations.
The company, a living organism, is a
dynamic web of relationships. Its value
and longevity are tied to its ability to
contribute to society's evolution and its
sustainable development.
Life is a chain of relationships.
Nothing in the universe exists on its
own; everything is interdependent.
We believe that perceiving the
importance of relationships is the
foundation for the great human
revolution, acknowledging the value of
peace, solidarity and life in all
of its manifestations.
The constant pursuit of improvement is
what drives the development of
individuals, organizations and society.
BELIEFS
5. Natura, through its corporate conduct,
through the quality relationships it establishes,
and through its products and services, will be a
globally significant brand, identified with the
community of people committed to building a
better world by means of a better relationship
with themselves, with others, with the nature
they are part of, with the whole.
well-being / being well
VISION
7. Ekos Line
Natura Cajamar Space
Initial Public Offering on
Bovespa â New Market
Incorporation of the life
cycle assessment (ACV)
for packages.
1969 - beginning in a small
laboratory and two passions:
_The option for direct selling
_Natural ingredients
in its formulas
Strong growth based on
regional expansion and
the
product portfolio
Refillable cosmetic
products
International
Expansion
Founding of the
Ethos Institute
Crer Para Ver
Program
our
story
time line
Increase in sales volume
(in US$ million)
Increase in the number of Sales
Consultants (in thousands)
Leadership in Brazil
Carbon Neutral
Green PE
Expansion of the operations
and logistics network,
and 25% of orders delivered
within 48 hours
Internationalization:
Latin America represents
11.6% of Natura's revenue
Acquisition of the
Australian brand Aesop
AmazĂ´nia Program (Launch
of the Natura Amazonia
Innovation Center (NĂşcleo
de Inovação Natura Amazônia
-NINA);
start of construction on
the Ecopark in Benevides
70âs 80âs
through
2005
through
2012
180 433657 1523
62601572
1 5
32 170
90âs
9. Brazilian market
context
natura today
Casa Natura Argentina
Abihpec/Sipatesp 2012 data
*Cosmetics, Toiletries and Fragrances *Source: FGV survey, data from 2011
Direct Selling
Fourth biggest
global market
Moves R$ 50
billion/year*
2.3 million active
professionals in the
Country (companies
associated with ABEVD).
CT&F Market
Job opportunities
4.5 million
Profile 70% women
Third biggest
market in the world
(1st in perfumery
and deodorants;
2nd in hair)
8.9% Growth in 2012
10. Overall assessment
of brand image survey
in Brazil (%)1
1.Source: Brand Essence 2012; 2. IstoĂ/ Dinheiro, BrandAnalytics, Millward
Brown and WPP Group 2012; 3. Exame/Merco and IBOPE 2013; 4. Direct
Selling News 2013; 5. Corporate Knight 2012.
natura profile
It has been a leading company in
Brazil's cosmetics market for 8 years.
The 6th most valuable
brand in the country2.
The brand with the best
Corporate Reputation in Brazil3.
The 5th largest direct
selling company in the world4.
The 2nd most sustainable
company on the planet5.
natura today
11. natura today
natura profile
Consolidated
net revenue:
R$ 6,345.7 million
Consolidated
Ebitda:
R$ 1,510.7 million
Business model:
Direct Selling
Penetration
in Brazilian homes 1 :
60%
Market share 2:
(Brazil) 22.5%
2012 data
Source: 1. Kantar WorldPanel, 2. Sipatesp/Abhipec
Number of orders:
70 thousand per day
12. natura today
natura profile
Factories:
Cajamar (SP) and Benevides (PA)
Number of NCs: 1.5 million
Number of employees:
5,354 in Brazil and 1,329 in IOs
International Operations:
Argentina, Chile, Colombia,
Mexico, Peru and France
Local IO* production
(via partners):
Argentina, Mexico and Colombia
IOs share in net
revenue: 11,6%
AESOP:
Acquisition of 65% of the
Australian brand, with
operations in Asia, North
America and Europe,
60 concept stores
in 11 countries,
300 employees,
sales for 2013 estimated at
AUD $64 million.28% growth per year in IOs
in weighted local currency
2012 data
* International Operations
Regional Offices:
Salvador (BA), Alphaville (SP),
Rio de Janeiro (RJ) and
Porto Alegre (RS).
8 Distribution Centers and 2
Technology Centers.
13. NCs: 52.100
NCs: 1.268.000
France
NCs: 2.500
Mexico
NCs: 74.200
Argentina
NCs: 74.800
Chile
Peru
NCs: 63.500
Colombia
NCs: 37.000
Brazil
Australia
AESOP brand
(also present in Asia, North
America and Europe)
Natura Consultants (NCs):
304,400
International
market
our
14. DC SĂŁo Paulo
DC Curitiba
DC Canoas
DC SimĂľes Filho
DC+ hub
JaboatĂŁo
DC Castanhal
DC Uberlandia
DC Matias Barbosa
new logistical
network to
handle up to
90% of demand
within 48 hours
in 2014
Brazil
17. expand the
connection
of our network
and deepen
our relationships,
promoting a unique
experience
enablers:
technology as
business driver
efficiency in
resource use
development
of leaders
18. introduce new
offerings of
brands, products,
services and business
the first step
_more than 60 concept
stores in 11 countries
_present in major
department stores, hotels,
restaurants and airlines
_products for the hair, skin,
body, perfumery and for
pets
Founded in 1987,
with headquarters in Australia.
Closely aligned with our values.
20. social indicators
Natura Institute receives 0.5%
of Natura's net profit, in
addition to funds from the
Natura Crer ParaVer Line
Crer Para Ver fund-raising
Brazil: R$ 12.8 million
IOs: R$ 4.5 million
Crer ParaVer Penetration
Brazil: 12%
IOs: 18%
176.3 thousand NCs
engaged in the Natura Movement
1.1 million NC* participations
in training in Brazil
8% increase in training
hours per employee, over the year's target.
R$ 12 million invested in supplier
communities (20% higher than 2011)*
* Natura Consultant
** amount passed on as payment for input purchases, benefit sharing, training, certification and
management, funds and support, use of image in studies and the like.
21. social indicators
Relationship quality
72% employee climate survey
NC loyalty reached 24%,
and NCA* loyalty, 40%**
Among suppliers, 23% loyalty
(compared to 27% in 2011)*
51% loyalty of Brazilian consumers
*Natura Consultant Advisers
**data for Brazil
24. 7.4% reduction in absolute
emissions from 2008 to 2012
(Natura internal processes)
28.4% reduction in relative
emissions,including value chain,
from 2006 to 2012
67% increase in water reuse
Refill percentage over
sold items: 14%
25.56 g of waste generated
per produced unit
environmental indicators
26. Characteristics:
_activity adapted
to the local reality
_consolidated team
_acceptance of direct
selling
_brand gaining ground
Strategy:
_rapid growth
of the NC network
_local production
_improve service level
_increase brand
awareness and prestige
operations
international
27. Net revenue:
Consolidated Operations
R$ 154.6 million Argentina, Chile and Peru
Operations in Deployment
R$ 69.2 million Mexico and Colombia
Ebitda (R$ million):
Consolidated: 78,4
In Deployment: (8,2)
10% of need produced locally
30% in 2015 (expectation)
NCs: 304.4 thousand
1. Operational profit data before depreciation, amortization and financial
result consider Latam (excluding Brazil) and France
International
Shares
(% Consolidated Net Revenue)
Operational
Profit1
(R$ million, nominal)
Rapid growth with
profitability in Latin America
29. Investment in Innovation:
R$154 million
Net revenue invested
in innovation: 2.6%
Innovation index:
67.2%
Number of
products launched:
104
innovation
30. innovation
Natura Innovation
Differentiators â
research fronts
_classic and advanced sciences
in skin and hair
_sustainable technologies
_senses and interaction design
_well-being-well and relationships
Open and networked
innovation:
sharing challenges with the
scientific community
in Brazil and abroad
31. innovationMain launches:
SOU eco-efficient productive chain with 70% less plastic and
60% less CO2 emissions compared to market packaging
materials.
Natura UNA Perfume 600 thousand products in
the first cycle
TodoDia Body Spray 3.5 million units sold
Chronos: ultra-light facial protection fluid
and toner with foundation effect
Other highlights:
New packages for MamĂŁe e BebĂŞ (valves that facilitate
application and lighter fragrances)
Higher UVA protection factor, anticipating
Brazilian law.
More complete labeling in 2013 in all countries, as per new
European regulations.
32. INNOVATION
Natura Campus
Relaunched in 2011, the
portal enables interaction
with researchers and the
exchange of information
about ST&I
In 2012:
245 proposals
for partnership received
94 different institutions
7 projects contracted
Launch of the Natura
Campus AmazĂ´nia 82
project registered and 6 projects
selected via public notice
40 thousand people impacted
34. Natura is born
with a proposition
of using natural
ingredients in its
formulas.
Refillable
cosmetic
products.
Reason for Being,
Beliefs andValues
Natura plays a part
in founding Ethos
Crer ParaVer
Natura Ekos Line â
sustainable use
of Brazilian
biodiversity.
Global Compact
Incorporation of the
life cycle assessment
(ACV) for packages in the
product development
process.
The 1960s The 1980s The 1990s 2000 2001
time line
sustainability management
35. Vegetable-based
ingredients
in the soap line.
Natura Movement.
Benevides (PA)
Industrial Facility
End of animal testing.
Carbon Neutral
Vegetable-based
ingredients in oils
Organic Alcohol
EnvironmentalTable
Recycled PET.
Organic alcohol used in
100% of products
First Brazilian company
to join Climate
Defenders â WWF
2006 20092005 20072004
ISO 14.001
Certification
IPO in the New
Market
time line
sustainability management
36. New PEVERDE
(Green Foot)
Corporate Movement
for Biodiversity
BIOQLICAR
Natura Institute
2010 2011
AmazĂ´nia Program
Water footprint
Sustainable
Sourcing
AmazĂ´nia Program
_Advisory Board
_NINA
_Ecopark (ecological
principles and industrial
symbiosis)
Sustainable
Entrepreneurship
Education:Trails
Project
Waste inventory
2012
time line
Sustainable Productive
Chains
Reduction in CO2
Sustainable palm oil
sustainability management
39. priority sustainability issues
Context:
Challenge for all of society,
companies, the public power,
consumers and other links
of the consumption and
production chain, given the
increase in solid waste on a
global scale.
Performance:
Total weight of waste
generated per sold unit
increased by 30%
1.The waste/produced unit indicator is the sum, in grams, of all direct
and indirect Natura waste divided by the total number of units directly
and indirectly produced by Natura.
solid
waste
TOTAL WASTE PER
PRODUCED UNIT1 (g/unit)
40. Initiatives and Projects:
New management strategy for:
_increasing the use of post-
consumption recycled material
_fostering the structurization of
efficient and inclusive recycled
supply chains
_reducing waste generation
in the value chain
_raising awareness and engaging
our relationship audiences
SOLID WASTE
priority sustainability issues
Innovation:
new packages (ecodesign)
and refill use
Waste generation
inventory throughout the
product's entire life cycle
Sector:
Support for Abihpec
actions to meet the
National Policy
on Solid Waste
41. priority sustainability issues
2013 Target:
To achieve water consumption of 0.39
liter per unit produced in Brazil
Initiative:
to pursue supplementary methodologies
to the Water Footprint
first cosmetic company
to perform diagnostics
considers the product use phase and the
company's potential to pollute water
resources
4 methodologies tested in the year
water
Context:
780 million people in the world suffer
from scarcity of water*
*Source: Progress on Drinking Water and Sanitation 2012,WHO and Unicef
42. priority sustainability issues
1. To direct suppliers;
2. Process and transport to Natura;
3. Industrial and internal process;
4. Internal processes refer
to fixed sources, exports,
business travel, effluent
treatment, International
Operations.
5. Transport and distribution
climate
change
43. 2013Targets:
Reduce relative GHG
emissions by 33% by 2013
Achieve 5,511t CO2e,
reducing absolute emissions
by 12.4%
Achieve the rate of 16.5%
eco-efficient packages,
including refill
CLIMATE CHANGE
ongoing reduction
(relative emissions kg of CO2
And per kg of product sold)
priority sustainability issues
44. priority sustainability issues
education
Natura Institute
expands its activity, investing
R$ 15.5 million in
actions to help improve the
quality of public education
Trails, in partnership
with the Ministry of
Education, became public
policy and reached
3 million students in 2012
Cajamar School Network
(support for 1st job):
327 young people trained
Cosmos: development
for 600 managers in 3 years
Employees:
Investment in
education and training:
R$ 21,008 (compared to
R$ 27,870 in 2011)
45. sustainable entrepreneurship
priority sustainability issues
Context:
The business model based on
direct selling enables a higher rate
of entrepreneurship and social
transformation.
Acolher Program:
26 NC finalists and 9 received technical and
financial resources, among more than 680
registrations.
Sustainable Relationship Network (Mexico):
NCs have levels of involvement according to
commercial results and engagement in social and
environmental projects and initiatives.
Some NCs already have a network with over 3
thousand sales consultants. Network grew 35% in 2012
46. SOCIOBIODIVERSITY
priority sustainability issues
sociobiodiversity
Natura Policy
on Sustainable Use of
Biodiversity and
Traditional Knowledge
Benefit sharing with communities
for access to genetic heritage and
the associated traditional knowledge
Environmental certification program
AmazĂ´nia Program
Context:
Since 2000 we have been
developing a production
model that involves relations
with supplier communities to
stimulate productive chains
defined by fair price,
remuneration for use of
genetic heritage and valuing
traditional knowledge.
47. New text proposal
submitted by a group of
companies to the Ministry of the
Environment in 2012
Main issues under discussion:
_Prior authorization
for access
_Benefit sharing
Regulatory framework
_Imperfect provisional measure,
which offers no assurance to
companies and researchers
_For over 10 years Natura has been
fighting for progress in laws on
access to biodiversity and the
associated traditional knowledge
_It is possible to generate
competitive advantages for the
country through the sustainable use
of such resources
SOCIOBIODIVERSITY
priority sustainability issues
sociobiodiversity
48. SOCIOBIODIVERSITY
programAmazĂ´nia
priority sustainability issues
Engagement
with stakeholders:
dialogue opened with local players
and creation of the Advisory Board
2012 Results:
NINA
Ecopark
Sustainable palm oil research
R$ 121.8 million including
resources from Natura and partners
Context:
Launched in 2011 to expand and
deepen presence in the region
and to promote local
development
Fronts:
Science, technology and
innovation (CT&I)
Sustainable productive chains
Institutional strengthening
50. Connect 1000 researchers in a network
Generate local value and business development
Move around R$ 1 billion
in Natura resources
Go from 10% to 30% in consumption of
input from the region
Increase the number of families in supplier
communities, from 3.5 thousand to
10 thousand
Commitments for 2020
SOCIOBIODIVERSITY
program
AmazĂ´nia
priority sustainability issues
51. relationship
quality
Context
Our challenge is to foster care,
connection and trust
in relationships, intensifying bonds.
Priority audiences: employees, sales
consultants, NCAs, collaborators and
suppliers
Initiatives
Engagement panels:
_multi-stakeholder to gather input
for strategic projects
_more than 400 people in 15 physical
gatherings, and 250 more via social networks
_Topics: conscientious consumption;
establishment of a new area in
SĂŁo Paulo, among others
priority sustainability issues
52. RELATIONSHIP QUALITY
1. Data related to Brazil Operation.
2. Consolidated results of all
Natura operations.
priority sustainability issues
relationship
with natura
indicators
monitor
quality of
relationships
with strategic
audiences
54. employees
Number of
Natura
employees: 6.785
Total
employees
in Brazil: 5.354
Climate survey:
72% favorability
(+2pp and repositioning
of MQ3*)
Average training
hours: 88 hours
*higher position in analysis
that ranks the best
companies on this issue
relationship quality
key-topics
_leaders with high potential
_new competencies
_accelerate the performance
of people
_relationship quality
_Education
initiatives
_clearer strategy
_succession map
for strategic positions
_cosmos
_leader office
_global trainee program
_natura education
_my path
(operational audience)
55. Investment in employee
education and training
in the Brazil operation:
R$ 21,008 thousand
Natura Education Program
(R$ thousand)
1,218 thousand
Internal use: 67%
54% of strategic positions with
identified successors
% women among employees:
64%
Number of disabled employees:
219 (4.1% of total)
Brazil operation
employee loyalty (%)
1. Equivalent to the percentage of
employees who answered
5 (top 1 box) on a scale
from 1 to 5 points.
EMPLOYEES
relationship quality
56. Sales Consultants
and NCAs
110
initiatives:
_connectivity pilot
_I like natura
(since April/13)
_new digital Natura Magazine
_faster deliveries
_customer committee
_NCA model in Latam
_Acolher program
_entrepreneur model
in Mexico
key-topics:
_expand connection
_training
_service levels
_productivity
_relationship quality
_international expansion
_entrepreneurship
NCAs
in Brazil: 12,125
NCAs
in IOs: 1,876
NCs per operation
(in thousands):
Brazil: 1,268.5
Argentina: 74.9
Chile: 52.1
Mexico: 74.3
Peru: 63.6
Colombia: 37.0
France: 2.6
Total: 1,572.9
relationship quality
57. NC loyalty: 24% (19% in 2011)
NCA loyalty: 40% (24% in 2011)
Best service rates
in the past seven years
40% of orders
delivered within 48 hours (1Q13)
Average delivery time:
4.1 days
Percentage of orders placed
via internet: 94%
Annual average income:
NCs: R$ 3,912
(R$ 3,904 in 2011)
NCAs: R$ 11,515
(R$ 9,521 in 2011)
NCs engaged in the
Natura Movement:
176,331 (43% increase)
Brazil operation data
relationship quality
SALES CONSULTANT AND NCAs
58. natura
Acolher Program
recognizes and supports NCs
who undertake social and
environmental actions 680
initiatives registered in 2012
28 finalists attended the
entrepreneur training
9 projects received technical
and financial support
movement
_develops measures to
encourage and mobilize
NCs to citizen action
_stimulates
sustainable
entrepreneurship
relationship quality
SALES CONSULTANT AND NCAs
59. consumers
Penetration in Brazilian
homes: 60%
Customer loyalty
in Brazil: 51%
Results attest to
heightened competition
in the sector.
Publicity investments in
recent years have reflected
positively in overall brand
evaluations
Overall assessment
of brand image
survey in Brazil (%)1
1. Source: Brand Essence.
relationship quality
60. closer
to people
TV Record
Weekly program on Wednesdays, during
commercial breaks of the Hoje em Dia show,
with contend about well-being, health, beauty,
sustainability and social entrepreneurship,
when we have the opportunity to tell
inspiring stories.
Watch: tv.natura.net
relationship quality
CONSUMERS
Weâre back to present
61. CONCEPT SPACE
closer
to people
relationship quality
CONSUMERS
A venue with ambience created to bring the customer closer to
our brand, integrating conceptual, sensorial and commercial
factors so as to provide a multi-sense experience.
_1 year at Oscar Freire Street (SP)
_72 thousand visitors; 10% foreigners; average
consumption R$ 82.
_new venues in SP and other cities in the country
62. AMĂ
A unforgettable
flight
2.5 million
views in 15 days
UNA
Virtual
Makeup Mirror
1 million views
in 2 weeks
relationship quality
actions that inspire
EKOS
We are a product
of Nature
PLANT in the movie
theater Surprise tribute
20 thousand
views/day for
3 weeks
CONSUMERS
63. suppliers
Number of partners:
190 producer and
finished product suppliers, and
over 4.7 thousand service and
indirect input providers
relationship quality
SUPPLIERS
64. relationship quality
SUPPLIERS
Sustainable
Productive Chains
Supplier selection and
development platform
that considers social
and environmental
criteria
R$ 2.8 million
in social and
environmental
benefits over 2 years
_CO2
_water consumption
_waste generation
_investment in education
_employee training
_work accidents
_social inclusion
_private social investment
8 indicators monitored
quarterly:
87% of the supplier
base participates in
the program
National Innovation
Award Winner 2013,
Business Model category
(CNI)
65. Direct relationship
with communities
that extract inputs
from biodiversity: 36
suppliers
communities
Families benefitted:
3,571 families
Funds for supplier
communities:
R$ 12 million
last year, 15% increase
Target for 2020: involve
10 thousand families
relationship quality
66. Investment: R$ 729 thousand
Guidelines
_ Establish bonds of trust
_ Identify and acknowledge the value of
leaders
_ Establish a positive agenda with the
public power
communities
surrounding
_ Identification and strengthening of spaces for
democratic social participation and for
collective development of the action
_ Building the identity of each individual
through this action
relationship quality
67. Transmit Natura's
unique values
Meetings with shareholders
Natura Day
Perception Study
AUG: 350 people
Rio+20: international
investors meet with Natura's
sustainability team
Average daily volume
of shares traded (R$ thousand)1
1. Source: EconomĂĄtica
NATU3: +67.8%
IBOV: +7.2%
Accumulated appreciation
since IPO:
916%
Total traded volume:
R$ 13,394 million
shareholders
relationship quality
69. 88 regional, national and
international awards/
acknowledgements, a 34%
increase over 2011
130 press articles that
reinforce the brand with
regard to issues such as
sustainability, innovation,
people management,
products and brand,
technology
top awards and
acknowledgements
70. 1st place in the National
Innovation Award for
Business Model, with the
Sustainable Supply Chain case,
2nd most sustainable
company in the world, in the
Global 100 Most Sustainable
Corporations in the World, by
Corporate Knights, 2011 and
2012
Only Brazilian company in the
World's Most Ethical
Companies Award ranking, by
Ethisphere Institute 2011 and
2012
Company with
bestcorporate reputation
in Brazil, ranking by Exame,
Merco and IBOPE.
Company of theYear, Ăpoca
360Âş Award
2nd place in the Finep
InnovationAward
Ranking of the 50 most
valuable brands in Latin
America,
by Brandz,WPP and Millward
Brown
Among the 20 Model in
Sustainability companies, a
ranking elaborated by Exame
top awards and
acknowledgements