profile who we are
how we operate
Natura believes in the potential of relationships and in the power of cosmetics to expand people’s consciousness, helping them connect with their own body, with the surrounding environment and with other people. This way of thinking and acting is expressed in business conduct aligned with sustainable development, with the creation of products and concepts that promote well being well and the strong connection Natura maintains with its relationship network.
how natura adds value
This network comprises approximately 7,000 employees, 1.6 million Natura Consultants (NCs) and almost 14,000 Natura Consultant Advisors (NCAs) – in addition to more than 5,000 suppliers and outsourced suppliers (companies manufacturing products on behalf of Natura) and 32 extractivist communities. This network reaches around 100 million consumers and is present in 58.5% of Brazilian homes at least once during the course of a year. Today, Natura is the largest company in the personal hygiene, perfumery and cosmetics sector in Brazil and also in the direct selling sector. Based in Cajamar (São Paulo), the company has a strong presence in Latin America, with operations in Argentina, Chile, Mexico, Peru, Colombia and France. Company products are commercialized in Bolivia through local distributors. The structure is completed by eight distribution centers in Brazil and six in the international operations, which handle around 62,300 NC orders per day. The brand is the leader in consumer preference in its segment, with a rate of 44%. In the International Operations, Natura is growing in awareness and preference in all the countries in which it operates. In the last five years, the company’s sales network has expanded, with net revenues growing on average 13% a year.
>> a publicly-traded company listed on BM&FBo-
Natura’s objective of promoting well being well guides the way in which the company operates, its commercial model, product and concept development, and the way in which it relates to its stakeholders.There follows a description of the main resources used, operating differentials and value created.
Business conduct Sustainability topics determined in conjunction with stakeholder groups and incorporated into company processes by means of the Natura Management System: quality of relationships; climate change; social biodiversity; solid waste; water; sustainable entrepreneurship; and education. >>
Products and concepts
innovation process encompassing all aspects of the business: product and concept development, evolution of commercial model and quest for new businesses. >> open innovation platform with a network of around 180 partners. >> research and development centers in Cajamar (São Paulo) and Benevides (Pará), knowledge center in Manaus (Amazonas) and an innovation center in New York (USA). >>
Environmental 2011 2012 2013 Relative GHG gas emissions 3.12 2.99 2.79 (kg CO2e/kg product invoiced)1 2 Absolute GHG gas emissions (000’s of metric t)2 265 280 313 Water consumption (l/unit produced) 0.40 0.40 0.40 Waste generation (g/unit produced) 20 26 22
relationship network commercial model based on generating value in conjunction with consultants, involving incentives for personal and human development and sustainable entrepreneurship in network. >> leadership development program completed by 57% of company managers. >> company-developed relationship and benefit sharing policy with communities supplying socio biodiversity ingredients. >> supplier development program based on environmental, social and financial criteria with tracking of indicators such as CO2 emissions, water consumption and investments in employee education, among others.
vespa, with 59.83% of company shares held by the controlling group, 39.10% outstanding and 1.07% held by managers and the treasury. >> strong cash generation and low net indebtedness, corresponding to 0.73 times Ebitda. >> net revenue of R$ 7.01 billion (+10.5% compared with 2012). >> Capex of R$ 553.9 million. >> Ebitda of R$1.61 billion (+6.4% compared with 2012).
>> eight distribution centers in Brazil. >> factories in Cajamar (São Paulo) and
Benevides (Pará), as well as third-party production in Brazil, Argentina, Mexico and Colombia. >> the company also owns the Australian brand Aesop, commercialized in 11 countries in Oceania, Asia, Europe and North America.
environmental resources >> biodiversity ingredients, a major brand differential. >> water used in the production process and in the use and disposal of products by consumers. human capital >> almost 7,000 employees*: Brazil,Argentina, Chile, Peru, Mexico, Colombia, France and New York (USA). intellectual capital >> innovation rate of 63% (share in sales of products launched within the last two years). >> R$ 181 million invested in innovation (3% of net revenue). our relationships >> network of more than 1.6 million NCs in Brazil, other Latin American countries and France, as well as 14,000 NCAs. >> 100 million consumers **. >> almost 5,000 suppliers. >> 32 extractivist communities. >> communities surrounding our operations.
value and impacts generated
business conduct oriented to sustainable development
relationship network through which we commercialize our products
products and CONCEpTS with innovation to promote well being well
Economic (R$ MM) 2011 2012 2013 Consolidated net revenue 5,591.4 6,345.7 7,010.3 Consolidated ebitda 1,425.0 1,511.9 1,609.0 Consolidated net profit 830.9 874.4 842.6 Internal cash generation3 964.0 1,018.9 1,102.3 Free cash generation 410.4 878.8 378.1 Average daily share trading volume4 43.7 54.3 61.1 Funding for extractivist communities 10.0 12.1 11.2 Business volume in Amazon region5 n/a 121.8 201.5 IO revenue as a percentage of total revenue (%)6 9.0 11.6 14.4 Wealth distribution (R$ million) Shareholders7 Consultants Employees Suppliers Government Total
763 855 856 2.906 3.211 3.390 634 803 917 4.363 4.837 5.425 1.472 1.743 1.804 10.138 11.449 12.392
Social (%) 2011 2012 2013 Climate survey – Employee Favorability8 70 72 78 NC Loyalty Brazil9 19 24 23 NCA Loyalty Brazil9 24 40 38 Supplier Loyalty Brazil9 27 23 30 Consumer Loyalty Brazil9 66 51 52 Believing is Seeing revenue Brazil (R$ MM) 8.4 12.8 17.1 Others Number of NCs Innovation Rate (%) Employee Training (hrs/emp.) Overall evaluation in brand image survey in Brazil10
2011 2012 2013 1,421 1,573 1,657 64.8 67.2 63.4 85.2 87.6 90.3
*Does not include Aesop. **Estimated for Brazil based on 73 79 78 Brazilian household penetration indicator. 1. CO2 e (or CO2 equivalent): measure used to express greenhouse gas emissions, based on each one’s global warming potential. The 2012 result was restated due to changes in the Brazilian electrical energy emission factor. 2. Includes GHG Protocol scopes 1, 2 and 3. 3. Represents operating cash generation before the effects of changes in working capital and Capex. 4. Source: Bloomberg 5. Considers Natura and partners. 6. Including Aesop, IO share in 2013 was 16.1% 7. The amounts represent the dividends and interest on own equity effectively paid out to shareholders. 8. Climate survey: Hay Group. 9. Loyalty survey: Ipsos Institute. 10. Brand Essence Survey: Ipsos Institute.