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Relative CO2 emissions

Dividends

Total net revenue

(kg of CO2e/kg of product)

(R$ per share)

(R$ MM)

2013 7,010.3

1.99

2013

2013

2.79

international operations

- 6%

+ 13%

+ 10%

Number of NCs

Net revenue IOs1

(in 000s)

(R$ MM per share)

2013 1,656.5

2013 1,130.1 2009 4,242.1

2009

+ 40%

2009

1.37

2009

+ 12%

292

3.55

Intensified in 2010, the acceleration of the company’s internationalization strategy is producing significant results. Since 2012, the operations under consolidation (Argentina, Colombia and Chile) have been profitable – meaning the company’s investments are beginning to produce positive returns. The operations being implanted (Peru and Mexico), have already reached breakeven.

2009 1,038.9

1. International Operations. The 2013 figure includes Aesop.

external context

With a more challenging environment in Brazil, Natura’s market share saw a retraction of 1.2 p.p. during the year.The loss in market share was concentrated in cosmetics and fragrances, while share in the personal hygiene market remained practically stable, driven mainly by the launch of the Sou sub-brand. In Latin America, the market continues to grow at rates above the global average.

growing in a competitive environment The cosmetics, personal hygiene and perfumery market grew 10% in 2013, according to Sipatesp (São Paulo Perfumery and Beauty Products Industry Association) and Abihpec (Brazilian Cosmetics, Fragrances and Toiletries Industry Association). Less sensitive to economic fluctuations, the sector is more associated with consumers’ disposable income, which continues to grow, but at a slower pace than in previous years.

accelerated, profitable growth

The direct selling segment in Brazil is the fourth largest worldwide, accounting for 9% of global door-to-door sales volume. According to ABEVD, the Brazilian direct sales association, the model grew 7.2% in the year. In the other countries in which Natura operates in Latin America, the direct sales model is at different levels of maturity, with the company’s NC network growing on average 24% per year since 2009. “This context reinforces our conviction that we have room and opportunities to expand our businesses, responding to the challenge of operating in an increasingly competitive marketplace”, says Alessandro Carlucci, Natura’s executive president.

“Our results in terms of revenue, profitability, service levels and increased brand preference are robust in all the countries in which we operate”, says Erasmo Toledo, vice president, International Businesses. The International Operations’ share of company revenues reached a record of 14.4% in 2013 – 17% if Aesop, the Australian company acquired in 2012, is taken into account. Average growth since 2009 has been 40% per year.

Ebitda (proforma) (R$ MM)

2011 2012 2013 1 Countries under consolidation 43.0 78.4 139.0 Countries under implantation2 (24.2) (8.2) 8.4 3 Total International Operations (51.1) (11.8) 38.1 Gross revenue (R$ MM)

Countries under consolidation1 441.5 649.7 886.8 Countries under implantation2 172.9 263.5 363.1 Total International Operations3 636.9 936.6 1,273.5 Shareholder profile

Share performance 1200

brazilian legal entities 5.2% 594 foreign legal entities 6.8% 781 private individuals 88% 10,111

NATU3 30/12/2013 R$ 41.37

BOVESPA INDEX

1000

NATU3

FOLLOW ON 31/07/2009 R$ 22.47

800

+638.1%

600 400

NATU3 25/05/2004 R$5.61

+173.3%

200

TOTAL 11,486

-

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

NATU3: +87.3% Ibov: +38.9%

+38.0% +27.7%

+51.2% +32.9%

41.4%+43.7%

+18.0% -41.2%

+77.7% +63.9%

+36.7% +1.1%

-20.4% -18.1%

+69.0% +7.3%

-26.6% -15.5%

Source: Bloomberg.

1. Group consisting of the operations in Argentina, Chile and Peru. 2. Group consisting of the operations in Colombia and Mexico. 3. Includes the operations under consolidation, being implanted and other international investments (the operation in France and the international corporate structure based in Buenos Aires).

Natura Report 2013