Investor Day São Paulo - April 12, 2019 Co...We build relationships based on transparency,...

Investor Day São Paulo - April 12, 2019

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.

www.natura.net/investor

DISCLAIMER

This presentation

contains forward-looking

statements. Such

statements are not

statements of historical

fact, and reflect the

beliefs and expectations

of Natura's management.

Viviane Behar

Natura Investor Relations Director

Opening

Natura &Co Capital Market

Market cap:

R$ 20 billion(March 29. 2019)

Constituent since2004

60% ofindependent

board members

Shareholders: 13,198(March 29. 2019)

• Internationalshareholders:

76% of free float• (March 29. 2019)

• Average dailytrading volume:

R$91 million(YTD March 29, 2019)

Research coverage:

13 institutions

2018 Natura &Co Report and Natura GRI

Annual Report

4

Natura &Co Stock Performance

NATU3R$45.39

+40.5%

IBOV

+22.5%

NATU3R$32.3

NATU3 x IBOV

5

José Filippo

CFO Natura &Co

Guidance and key takeaways

Very solid underlying performance, excluding the following non-operational adjustments

IFRS 15: Reclassification of late

payment charges in Q4-18,

with impacts on net revenue

and EBITDA for Natura Brazil

and with impact on net

revenue in Latam

Hyperinflation and foreign currency

translation accounting standards

(IAS29 and IAS21, respectively)

in Argentina in Q4-18 with

Tax provision reversals in Natura Brazil

in 2017, with impacts on net

revenue and COGS (IPI and other

tax provision/reversal), and

EBITDA (IPI, PIS & COFINS) and

other provision adjustments in

2017

Tax recoveries related to ICMS

taxes imputed on the base of PIS

and COFINS

The Body Shop’s transformation costs,

which refer to the amounts

allocated to the execution of its

transformation plan, as

previously announced by the

group, with impact on EBITDA

pre-acquisition pro

forma revenue and EBITDA from

January through August were

included in 2017 figures, for

comparison purposes

The figures in this presentation are adjusted for the above effects. Adjusted consolidated -acquisition results from January through August 2017, for comparison purposes. All reported figures can be found in the Natura &Co earnings release and financial statements.

7

Adjusted consolidated Net Revenue: Double-digit growth

(Adjusted1; R$ million)

8.6% constant FX

Natura+9.7%2 in 2018, consolidating market leadership

in Brazil and continuing successful expansion

in Latam

The Body Shop+1.8% LFL-own-store growth in the full year. Healthy

+1.7%2 Net Revenue growth in 2018, consistent across all

regions. Transformation plan delivering solid initial

results

AesopStrong growth in all geographies and channels:

+31.0%2 in 2018. Impressive LFL sales of 17.8% in the

full year

2017 2018

13,272.811,697.1

13.5%

FY 2018

Natura The Body Shop Aesop

1 Adjusted: Excludes IFRS 15 (reclassification of late payment charges) both in Brazil and Latam, hyperinflation

Includes: The Body Shop pre-acquisition figures, for comparable purposes (full year only).2 At constant exchange rates 8

Natura &Co: Revenue by business and currency

% By Business (2018) - Adjusted % By Currency (2018) - Adjusted

9

Adjusted consolidated EBITDA: +23.0% in 2018

(Adjusted1; R$ million)

2018 Consolidated Ajusted EBITDA (R$ million)

1 Adjusted: Excludes IFRS 15 (reclassification of late payment charges) both in Brazil and Latam, hyperinflation

FY 2018 reported EBITDA +6.0%, adjusted +23.0%

+23.0%

10

Cash flow generation more than doubled in Q4; significant deleveraging

(R$ million)

Q4-18 Free Cash Flow

2018 Free Cash Flow

Net-debt-to-EBITDA ratio

Cash flow generation in all three businesses

• Higher consolidated net income

• Lower working capital needs:Natura: Reduced inventory and lower level of accounts payableThe Body Shop: Lower accounts

receivableAesop: Reduced inventory

Strong cash inflow

of

R$708.7 million in

the quarter, thanks

to:

NET-DEBT-

TO-EBITDA RATIO reduced from Q4-17 and Q3-

18 (3.27x), in line with

expectations, on track to

reach 2021 target

296.2

708.7617.2

469.2

3.01x2.71x

1.4x

11

Roberto Marques

Executive Chairman of the Board

A global beauty group with passion and purpose

From a single store to a global, multi-brand, multi-channelbeauty group

The Natura &Co journey

13

• All three brands and businesses contributing to sales growth:

• Natura: Consolidating market leadership in Brazil and continuing successful expansion in Latam

• The Body Shop: Transformation plan delivering solid initial results

• Aesop: Consistent stellar growth and continued expansion

• A solid set of 2018 consolidated results*:

• Revenue: +13.5%

• EBITDA: +23.0%, with EBITDA margin +110 bps

• Underlying operating income: +17.3%

• Deleveraging on track to return to pre-TBS acqusition level of 1.4x in 2021

• Important advances in triple bottom line commitments

*Adjusted: Refer to the Q4-18 earnings release for a reconciliation between reported and adjusted figures

The Group is delivering

14

A lean, agile structure, leveraging scale and expertise

• Creation of Natura &Co - The power of the & and the Co:

• Balancing autonomy with interdependence

• Each business is empowered to create value

• Benefiting from expertise while controlling costs, c. 1% of net sales

• Leveraging knowledge through internal networks and hubs

• Virtual communities (shared/collaboration)

• Networks of Excellence (NEx): Retail, Digital and Sustainability

• Group structures to capture synergies: Procurement, Finance, HR, Legal and Corporate Affairs

• Strong governance and experienced leadership

• An international and diverse Board of Directors

• A Group Operating Committee to oversee group priorities

The Group is advancing

15

Competitive compensation scheme, aligned with shareholder interests

Company, group and individual performance targets, including sustainability

Heavier weight on variable compensation

• Base salary: Positioned at market median

• Performance-based short-term incentive bonus with optional matching

• Performance-based long-term incentive

Compensation plan tied to three guiding principles:

MeritocracySimplicity Ownership

The Group is empowering

16

Embedding our principles in our business

• We do not test on animals

• We promote fair trade with communities

• We seek to make a positive social and environmental impact

8.3 million signatures taken to the UN to ban animal testing

The first co-recipientof UEBT certification

Encouraging our customers to recycle product packaging

The Group is acting

17

Key initiatives:

Leveraging theGroup footprint

Global procurement

Sustainabilitygoals

18

Capturing synergies and leveraging scale

On track to meet our April 2018 commitment of R$ 420 million in cost avoidance and reduction in 3 years

Half of goal already negotiatedIn BRL million

Breakdown by category Breakdown by type of saving

48%

11%

18%

23%

IT Services Fragrances Other

33%

67%

Cost reduction Cost avoidance

57

205

420

Achieved Feb/19 2021 based onconcluded

negotiations

Commitment

To be achieved with

negotiations underway

Key initiatives: Global procurement

19

• Natura Retail will manage The Body Shop in Latam while preserving brand identity

• The Body Shop will benefit from

local production and facilities

•

be strengthened, leveraging The Body

agreements, sell-out planning, etc.)

• 3 countries: Brazil, Chile & Mexico

• 151 stores

Expanding The Body Shop in Latam

Key initiatives: Leveraging the Group footprint

20

• The Body Shop to follow successful entryinto Tmall Global

• Natura piloting multichannel foothold in Southeast Asia, supported by The Bodyfranchisees

• Continue to work with mainland China to eliminate animal testing

Doubling down in Asia

Key initiatives: Leveraging the Group footprint

21

People

Inspire and unlock the full potential of every life we touch

Nature System

Strive to regenerate every ecosystem we touch

Be a catalyst for a shift in global market practices

• Empower through education

• Fair representation: Race, gender, orientation, gender identity and disabilities

• 100% vegan products

• No animal testing

• 100% recyclable packaging

• Full traceability of ingredients

• B Corp certification

• Integrated reporting system

• Actively influence the global sustainability agenda

Key initiatives: Sustainability goals

22

The Group is committing

A purpose-driven GroupOur purpose

To nurture beauty and relationships fora better way of living and doing business

Our beliefs

We are passionate agents of change

We build relationships based on transparency, collaboration and diversity

We are committed to integrity and hold ourselves accountable

We find the courage to challengethe status quo and go beyond

We honor and respect the interdependent nature of all things

Our aspiration

We will dare to innovateto promote positive economic,social and environmental impact

Second global leadership meeting (SP, Feb/19)

Natura &Co working together

24

João Paulo FerreiraNatura CEO

Powering the brand with a digital mindset

Outstanding social and environmental results

#15 most sustainable business in the world - Corporate Knights

R$ 1.5 billion invested in the

Amazon region since 2010

5,700 families in supplier communities;

257,000 hectares of protected standing forest

9 million 2L PET bottles equivalent/yr

recycled for packaging

333,000 tons of CO2 offset in 2018

and 3.4 million tons since 2007

1st Latam company awardedLeaping Bunny certification

1st company in the world awarded UEBT certification (co-recipient)

#24 Great Place To Work (global) and #9 in Latam

R$ 44 million collected through Crer Pra Ver product line:

• 1 million+ students in Brazil positively impacted by Instituto Natura

• 100,000 consultants awardedscholarships

26

2018: Another very strong year

(*) Kantar 2018 and Euromonitor 2017 (**) 2018 estimate

NATURA BRAND

Brazil: Preference

maintained in 2018

Latam: Leadership

in 3 of 5 countries

Improved brand preference

REVITALIZATION OF DIRECT SALES

• 1.7Mconsultants

• Continued momentum of

the Relationship Sellingmodel

• 9th consecutivequarter of productivity gains

• Stabilization in number ofconsultants

• Record-high consultant loyalty

Successful roll-out of new model toChile and Peru

MULTICHANNEL

4%

45

200

3,800

of sales in Brazil

Natura stores (5 countries)

Aqui Tem Naturafranchisees

Drugstores

6MOnline consumers

500,000+Digital Consultants

on Rede Natura

BRANDS& CATEGORIES

Leader in

Fragrance, Body and Gifts

Market share gains in

Skin Care, Makeupand Deodorants

Market Share Brazil CFT*

Market Share Direct Sales in Latam**

#1

#1

27

Our best-everquarter in sales

Results do not consider IFRS15 and hyperinflation in Argentina

4Q18: Largest revenue growth in the last 5 years

2,506

4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18

Naturanet revenue (R$ million)

12.2%12.3%

-0.5%

3.2%

-2.7%

8.0% 10.3%

4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18

Natura

8.9% 9.3%

-3.5%

-8.9%-0.5%

6.5%11.2%

4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18

Brasil

28

2019The first year of the next 50 years

1 2 3 4 6 75

A seven-pillar action plan to revitalize our business model and accelerate growth

NATURA BRANDREVITALIZATION

BRANDS AND CATEGORIES

DIRECT SELLING REVITALIZATION MULTICHANNEL INTERNATIONAL-

IZATIONORGANIZATIONAL TRANSFORMATION

BUSINESS DIGITALIZATION

30

1NATURA BRANDREVITALIZATION

5BUSINESS

DIGITALIZATION

A seven-pillar action plan to revitalize our business model and accelerate growth

31

Digital at Natura in numbers

MOBILE PLATFORMFOR DIRECT SALES

Leader in traffic in cosmetics - Brazil2

Best online store¹2015, 2016, 2017, 2018

500,000+digital consultants; 54% of online sales

REDE NATURA: OUR ONLINE STORE

consultants

2019 target

1.2 million+

860,000active consultants

R$2 bntotal sales 2018

+15% average

productivity gain/

consultant6 million+consumers

30% aged below 30

(vs. 18% in direct sales)

Source: ¹Ebit | ²Source: Similarweb. Cosmetics segments (natura.com.br and rede.natura.net),

32

200 million

consumers connected to the Natura

ecosystem worldwide, consuming content,

products and cosmetic services

20 million consumers in Latam, consuming content,

products and cosmetic services

Network effect: the 2X20X200 opportunity

2 million

connected consultants

The digital opportunity

We are a DIGITAL SOCIAL NETWORK

Technology multiplies our

connections EXPONENTIALLY

and leverages our relationships

DIGITAL AUGMENTATION

is an enabler to transform:

• the empowerment of our consultants

• the experience of our consumers

• the efficiency of our operational

processes to unlock value

33

The Natura platform aggregates the community united by the bem estar bem purpose

Clients

Financial institutions

Franchise

Consultants

Suppliers

Liberal professionals

Contentpartners

Specialist

Online

Service and product partners

Stores

Distributors

Salesforce

NATURAPLATFORM

financial flow

commercial flow

content flow

physical flow

K e y F e a t u r e s

Customizing services to increase number of network

connections

Multiple service levels adapted to each context

Deep knowledgeof the main participants

Give the same importance to buyers and sellers

Curatorship is key to quality

Network effect

A business platform that creates an ecosystem

A digital mindset organization

Logistics

Digital and IT

Product development

Human Resources

Manufacturing

Commercial

Internationalization

Marketing

Up to 14 months reductionin time-to-market and

45% savings in capex

35

387startups interacted

with Natura

60+ startups testedtheir solutions

19startups became partners

3,186 startups

evaluated

Partnerships with startups to accelerate digital transformation and innovation

Pixel Labs

3rd most engaged

company with startups (100 Open Startups)

36

http://testr.com.br/

http://www.rankmyapp.com.br/

http://taqe.com.br/#/taqe/home

CRM: From standard to contextual communication in 6 steps

2. Behavioralsegmentation

4. Assertivecommunication

5. On time and in the best way

6. Continuouslearning

3. Decision-making trees

1. Data collection

37

CRM: Key consultant performance highlights from new approach

Purchasefrequency

Growth plan Churn rate

Digitalization Training & development

Health andeducation benefits

+6.0 p.p +3.8 p.p -5.1 p.p

+3.8 p.p +5.2 p.p +2.5 p.p

All results are compared vs control group 38

Convergence Project: Making our direct sales channel 100% digital

Traditional reselling

Hybrid

Pure online selling

...to one single Beauty Consultant, offeringmultiple shopping experiences

From segregatedselling profiles...

Advantages

• Multiple fulfillment flows

• Broader reach

• Lower debt delinquency

• Social media content

• Customized offerings

• Banking throughNatura mobile platform

June2019

39

1st direct sales company to offer its consultant network access to banking services

Natura Account: Banking services embedded in our mobile platform

Triple inclusion:

• Social• Financial• Digital

40

Quick, easy and direct

Debit card MicrocreditTransfers

Online purchasesBill payment,

phone prepaymentCash withdrawals

No bank fees

POS machineswith competitive

rates

The Natura Account in partnership

with Santander

Natura Account: Multiple banking services in a few clicks

41

Ubeleza: Tap the App, get a cosmetic!

Strengthening brand preference

Innovative brand

Differentiation and uniqueness

Desirability Reconnect with ayounger public

43

A brand grounded in sustainable practices to generate positive impact

Againstanimal testing

since 2006

Safe ingredientsfor human health and

the environment

Carbon-neutral1 million tons

avoided since 2007

Traceable100% organic alcohol

and UEBT-certified

Ecological packagingRefill, recycled or

renovated materials

Natural formulations

On average 90% vegetableand biotech ingredients

100% vegetarian

Innovation cycle based on unique pillars

• 2.2% of net sales

invested

• 233 products

launched (2018)

• 202 scientists(18 PhDs; 84 masters

• 260 partnersOpen innovation

• 320+ publications(since 1983)

• 400 patents(since 1992)

1. Unique ingredientsWith years of field research, we learn from

the traditional knowledge of supplier communities and discover new plants

containing cosmetics benefits.

5. Positive impactShared values betweenthe community (benefit sharing), the consumer

and the planet.

3. Fair tradeFamilies are trained to supplyactive ingredients. Extreme care in fruit harvesting and processing guarantees integrity of functional properties.

4. Product developmentCombination of state-of-the-art cosmetic science and nature to bring high performance and beauty to the consumer.

2. ScientificevidenceGenetic studies to prove the benefits and full characterization of bioactive ingredients.

Innovationcycle

45

Disruptive product launches that rely on cutting-edge science

CHRONOS ACQUA LUMINA NAIL POLISH

Proprietary technology, 3 patents filed:

• Brazilian biodiversity ingredient- Fevillea (stimulates productionof hyaluronic acid)

• Prebiotic (balances microbiota) • BT hyaluronic acid (immediately

increases hydration)

Exclusive technology via open innovation:

• Pro Teia biotechnology: Protein thatreplicates the characteristics of a web, bringing strength and elasticity to hair

• +Blend of Brazilian bioactives• Novel micro CT hair scan to determine

the most effective results

Competitive differentials:

• 9-free formula (uniquein the market)

• Hypoallergenic• Broad variety of colors (12) and

high-quality coating

46

ANTES DEPOIS

Creating brand desirability through consultant stores Aqui Tem Natura

Before

After

47

New store concept: Brand desirability, reconnecting with young and affluent consumers

Rock in Rio: Connecting with a young and engaged audience

Partnership to promotepositive transformationand brand awareness

Natura marketing initiatives linked toRock in Rio will reach60 million people (2019)

Spaceship area createdin the Olympic Velodrome:

• Projections and virtual scenery; special visual, sound and olfactiveeffects

• Total expectedparticipants in theimmersive experience: 200,000 people

49

2019The first year of the next 50 years

Continuing our successful growth storyMichael O’Keeffe, CEO

Natura &Co Day, April 2019

An ongoing success story over the last six years

2012Aesop before Natura Partnership

2018

Sales A$57 million x 7 A$391 million

Signature stores 52 + 175 227

EBITDA A$7 million x 12 A$83 million

Countries 10 + 15 25

Headcount ~300 x 7 2,226

‘Experience is the only prophecy of wise men.’ Alphonse de Lamartine52

‘Experience is the only prophecy of wise men.’ Alphonse de Lamartine 53

Over the last year we have broadened our focus to include people and planet as well as profit

53

54

We have focused on enriching the lives of those in our community and of our staff

Product donations

Aesop launched its strategy to further

support the communities in which it operates

with the donation of products to charitable

causes.

Aesop Foundation

12 charitable projects were supported in

2018, with 6 new partnerships created.

A total of A$2.5 million was contributed to

not-for-profit organisations.

‘Experience is the only prophecy of wise men.’ Alphonse de Lamartine

Learning and development

Aesop launched an internal course called

‘People Matter’. With the intention of

establishing purpose and clarity regarding

people management. Over 160 store

managers and 60 regional business

managers have completed these sessions.

54

55

And have taken further steps towards positively contributing to our environment


Rinse and Return program

This program was launched in Hong Kong in

2018, aiming to reduce the amount of

material ending in landfills. It offers

customers the opportunity to return used

cosmetics packaging to stores.

Replenish trial

A new initiative centered around two of our

highest selling products, Resurrection

Aromatique Hand Wash and Geranium

Leaf Body Cleanser. This initiative

encourages return users to recycle their

pump, and purchase products with a screw

top.

This was rolled out across the ANZ region

in 2018 with plans to expand globally.

PET redesign

The redevelopment process of our 500ml

bottles took place, now using 99.7%

recycled PET, reducing the amount of

plastic in each bottle.

The impact of this redevelopment will save

over 124 tonnes of virgin plastic over 12

months (48% CO2 emissions reduction).

55

56

All whilst continuing to show considerable growth in our 2018 financial performance

A$390M

Sales revenue

31% growth

18%

LFL Retail growth

227

Signature stores

+19 net new stores

15%

EBITDA margin

Countries

+2 countries (Belgium & Russia)

25Skin Care sales

45%


57

Brass Oil Burner & Beatrice Oil Burner Blend Skin Care Kits Atlas of Attraction Gift Kits

Roll On Deodorants (original and herbal) In Two Minds (facial cleanser, toner and hydrator) Aesop & Rimowa collaboration: Köln

Last year 6 new products were launched; the collaborations of the Brass Oil Burner and Köln gift kit being significant



We successfully extended our signature store presence into iconic and culturally aligned cities

Aesop Bath, UK

58



Aesop Getreidegasse, Salzburg

59



Aesop Eaton Centre, Toronto

60



Aesop Park Slope, Brooklyn

61



Aesop Gough Street, Hong Kong

62



Aesop Shibuya II, Tokyo

63

Tmall Global Overview

65

Due to government regulations, China has a unique digital ecosystem that differs from the global landscape


Search Engine

Since April

2017

N/A for

follower count

66

Aesop entered the Chinese digital ecosystem in April 2017, with the successful launch of Aesop’s Tmall store in 2018

0 50 100 150 200 250

000’s

Followers

Since February 2018

250K followers

Since April 2017

21K followers

Since April 2017

20K followers

Social Media / Online Shopping


67

Aesop’s Tmall store operates in a format similar to the shop-in-shop layout of department stores

Aesop Tmall Flagship

Tmall Partner

Warehouse &

Logistics partners

Alipay

Alibaba

Inventory, e-store design, customer service, logistics, pricing managed by Aesop

No discount, no participation in festive

promotions

Full range products offered (excl. Home Range &

Dangerous Goods) at 6%-10% price premium vs

Hong Kong retail prices

Principles of Aesop’s presence on Tmall include:


Aesop consultants for Customer

Service

Delivery time from 3-14 days (3-4 days for tier 1 cities)

67

68

Drawing aesthetic parallels with Aesop.com to maintain brand consistency

Aesop.com Aesop Tmall Global


69

Tmall: Aesop´s gateway to the Chinese customer with strong financial performance and engagement

December 2018

Approximately

70K

transactions

260K

enquiries / live

chat

A$5.6M

sales in first 10 months

Full price,

no promotion or

discount

February 2018

Launch of

Aesop’s Tmall Global Store



Our colleagues

Approach learning and

career growth in line with

our business growth

Our customers

Amplify customer voice

throughout the business

People Profit Planet

Our commerce

To continue to grow and

develop the business

with a focus on deeper

penetration of existing

cities

Our products

Successfully launch new

products, and evolve our

existing packaging with

sustainability at front

of mind

Our systems

Improve how we measure

our carbon footprint and

embed triple bottom-line

reporting throughout the

business

Strengthening our focus on people and planet with continuing financial performance

70

REVITALISE PURPOSE AND BRING IT TO LIFE FOR CUSTOMERSREDUCE PROMOTIONAL INTENSITY, REVIEW PRICING

IMPROVE EVENT & STOCK MANAGEMENT

CREATE A WINNING IN-STORE EXPERIENCE

INVEST IN CRM & MARKETING

DELIVER BODY YOGURT

TURN AROUND KEY MARKETS

RENEW STORE FOOTPRINT

ENTER NEW MARKETS

DRIVE ECOMMERCE IN EXISTING AND NEW MARKETS

DEFINE AND DRIVE GLOBAL CHANNEL STRATEGY

REDUCE OPEX THROUGH INDIRECT & DIRECT SAVINGS

INCREASE CAPEX SPEND EFFICIENCY IT TRANSFORMATION

STRENGTHEN CULTURE & TALENT

RE-DESIGN OPERATING MODEL

AN UPDATED TRANSFORMATION PLAN

1 REJUVENATE

BRAND

2

3

4

5

OPTIMISE

RETAIL OPERATIONS

ENHANCE

OMNI-CHANNEL

IMPROVE

OPERATIONALEFFICIENCY

RE-DESIGN

ORGANISATION

2018 2019 2020

6LIVE

SUSTAINABILITYB CORP CERTIFICATION

DEVELOPING NEW SUSTAINABILITY STRATEGY

Improving efficiencies Platforms for future growth

Driving top-line growth

73

74

2018 2019 2021

SUSTAINABILITY: A KEY PILLAR OF OUR TRANSFORMATION

IN PROGRESS →

74

7676

A REDEFINED PURPOSE

for a fairer

• We see great power & opportunity in usingcommerce to drive positive change in theworld

• We believe in the power and ritual of beautyto promote women’s self esteem

• We fight for equality of rights andopportunities to empower women

76

77

Delivered strong peak seasonal sales especially in key company market stores :

UK stores

+2.5%*

*outperforming the UK beauty market

US stores

+5.2%*

All seasonal product sales vs 2017

+3.1%

A SUCCESSFUL 2018 HOLIDAY SEASON

*Q4 18

7878

£18MDiscount reduction

What we did

• 12 trials undertaken and analysed in company markets• Implemented a global promotions framework and governance

What happened

REDUCTION IN PROMOTIONAL INTENSITY

79

Germany

Closed 8 storesNo openings in 2018

USA

Closed 14 storesOpened 1 strategic store

Global Footprint

Total # Stores at YE*:2017: 3,049 (1,099 C;1,950 F)

2018: 2,935 (1,037 C;1,898 F)

Own store closures in 2018Total: 88Net closures: 62

* Total stores includes Company, Outlet, Sub Franchisee and Franchisee stores

+190bpsEBITDA margin

improvement in own stores channel

Sweden/Denmark

Closed 17 storesNo openings in 2018

OPTIMISING OUR STORE FOOTPRINT IN KEY MARKETS

UK

Closed 21 stores Opened 4 strategic stores

79

80

TOGETHER onPURPOSE

+1.7%Sales growth

+280bpsEBITDA margin

Growth7.6%

+1.8%LFL Retail Sales

growth

+2.3% lfl COMPANY STORES

+4.4% lfl ECOMMERCE

+1.8% lfl

+1.2% lfl

+2.5% lfl

+2.9% lfl

EMEA

APAC

NA

UK

CHANNEL GROWTH CLUSTER GROWTH

2018 RESULTS: AN ENCOURAGING START

2017-18 adjusted EBITDAexcluding transformation costs

10.4%

80


`

`

countries e-commerce sites

innovation lab

TBS AT HOME consultants

distribution centres

30mcustomers

1,037company

stores

1,898franchise

stores

12

43

1

15,500

colleaguesincluding franchise

22,000

69 28wholesale operation customers

THE BODY SHOP IN NUMBERS

250sub-franchise

stores

2head offices

(East Croydon & Littlehampton)

REVITALISE PURPOSE AND BRING IT TO LIFE FOR CUSTOMERSREDUCE PROMOTIONAL INTENSITY, REVIEW PRICING

IMPROVE EVENT & STOCK MANAGEMENT

CREATE A WINNING IN-STORE EXPERIENCE

INVEST IN CRM & MARKETING

DELIVER BODY YOGURT

TURN AROUND KEY MARKETS

RENEW STORE FOOTPRINT

ENTER NEW MARKETS

DRIVE ECOMMERCE IN EXISTING AND NEW MARKETS

DEFINE AND DRIVE GLOBAL CHANNEL STRATEGY

REDUCE OPEX THROUGH INDIRECT & DIRECT SAVINGS

INCREASE CAPEX SPEND EFFICIENCY IT TRANSFORMATION

STRENGTHEN CULTURE & TALENT

RE-DESIGN OPERATING MODEL

AN UPDATED TRANSFORMATION PLAN

1 REJUVENATE

BRAND

2

3

4

5

OPTIMISE

RETAIL OPERATIONS

ENHANCE

OMNI-CHANNEL

IMPROVE

OPERATIONALEFFICIENCY

RE-DESIGN

ORGANISATION

2018 2019 2020

6LIVE

SUSTAINABILITYB CORP CERTIFICATION

DEVELOPING NEW SUSTAINABILITY STRATEGY

Cutting costs, improving efficiencies Creating platforms for future growth

Driving top-line growth

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1REJUVENATE

BRAND

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brand product

customer

empoweringwomen & girls

natural ingredients

that work

‘I want to feel good about my body, my life, my future’

TRANSLATING THE PURPOSE INTO BRAND ACTION

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360º CAMPAIGN CELEBRATING WOMEN EMPOWERMENT

+27% above target

# 1 product line during event

Shea: 12% of Body Care

Shea range performance

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TOGETHER onPURPOSE

Debunk the ageing taboo with our “Enjoyyour age” campaign

Boost young girls and women’s self-esteemde-dramatizing acne and blemishes

1.

2.

REINFORCING SKINCARE

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80% (vs. 62% TBS)

GLOBAL FY 18 LFL

RANGE HERO: DOY concentrate

#1 global sku (value)

DEBUNK THE AGEING TABOO WITH OUR “ENJOY YOUR AGE” CAMPAIGN

Q1 2019 EVENT wk3-7

£46.3m, +3.9%

£6.4m, +10.8%

HIGH loyalty

£1.9m, +22% Q1 2019 EVENT wk3-7

DROPS OF YOUTH

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58% (vs. 46% TBS)

GLOBAL FY 18 LFL

RANGE HERO: Tea Tree oil

BOOST YOUNG GIRLS AND WOMEN’S SELF-ESTEEM DE-DRAMATIZING ACNE AND BLEMISHES

£62.5m, +0.7%

HIGH recruitment

#1 global SKU (volume)

#1 skincare range

2019 new product:Tea Tree peel-off mask

TEA TREE

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REFOCUS ON FRAGRANCE: NEW LAUNCHMIDDLE EAST APRIL 2019

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• Embodies our purpose

• Reconnects with our roots

• Provides a sensorial experience at the heart of every store

• Inspires, engages and educates people to join our activist collective

• Expresses natural, raw and real – enhancing the perception of sustainability

• Provides a culturally relevant local store

DEVELOPING A NEW STORE DESIGN

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Empower women and girls

Partner with Plan International to sponsor 1,500 girls through education and vocational training

Create an immersive, value driven and Christmassy universe inspired by the progressive city of Brighton

Reinforce our sustainability credentials

MAKING 2019 OUR BEST EVER CHRISTMAS

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2OPTIMISE

RETAIL OPERATIONS

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FROM DRIVING SALES THROUGH DISCOUNT

This programme ultimately teaches all store team members about our new

selling technique – The Power of Three – and how successfully to achieve our business goal of driving a UPT of three, which in turn drives ATV, and when to use it

““

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3ENHANCE

OMNI-CHANNEL

9898

Tailor global portfolio for Brazilian market

MARKET LIKELY OPENING DATE

SERBIA END H1

CROATIA END H1

KAZAKHSTAN H2

CAMBODIA H2

NEPAL H2

MONGOLIA H2

ENTERING NEW MARKETS: PLAN FOR 2019

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CHINA: STARTING TO SEIZE THE OPPORTUNITY

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5RE-DESIGN

ORGANISATION

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• Focus on purpose, vision, values, behaviours

• Start with senior leadership and top store managers (UK and US)

STRENGTHEN CULTURE AND TALENT

José Filippo

CFO Natura &Co

Guidance and key takeaways

• Solid sales and EBITDA growththrough 2022:

Net sales1 EBITDA2

2017 2022 2017 2022

High single-digit CAGR Low double-digit

CAGR

• Fast deleveraging, debt

to pre-acquisition

level of 1.4x by 2021

On track to deliver superior performance

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3Source: Bloomberg, April 2019

Three empowered,iconic brands with cleargrowth trajectories

A global, balancedand increasinglymultichannel presencein growth markets

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Robust and fast-growingdigital platforms

4

Leveraging thescale and know-howwith an agile model togenerate efficiencies

5

A unique productportfolio, based oninnovation andsustainability

Higher CAGRscompared to globalomnichannel peers

best global beauty group for the world

1 2 3

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Capture group synergies from procurement, shared resources

and efficiency gains

Focus on profitable growth and cash generation

Strengthen international expansion and sharing of

best practices

Accelerate transformation of Natura's multichannel presence

and international footprint

momentum and expansion

Rejuvenate the iconic brand and capture growth

opportunities in Latam

Focused innovation combining technology with sustainability at its core

A clear strategy to create value

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