Santander11th Annual ConferenceSão Paulo, BR | August, 2010

Company Overview

3

70‟s 80‟s 90‟s 00‟s Current Moment

170

657

4.300

3

A small laboratory and two passions: cosmetics and relationships (1969)

Choice to purse a direct sales platform(1974)

Strong growth based on regional expansion and products portfolio

Commitment with social and environmental responsibility

Seek to excel in management

Sustainable development focus

Natura Ekos Line developed (2000)

Natura Space,Cajamar site opened (2001)

IPO on the Bovespa(2004)

Follow on BOVESPAFree Float to 40% (2009)

Management model evolution

New circle of growth among other Latin American countries

Increased leadership in Brazil

Sales Volume Evolution (retail) in US$ million

Our History

5

4

Size of CF&T Market Retail Price, 2009 (US$ billion)

Source: Euromonitor

Peru

Chile

Argentina

France

Mexico

Colombia

7.4

3.0

1.4

1.7

2.9

Brazil28.4

Where we are…

Value Proposition

Social:› Wealth creation to consultants› R$ 60 million invested in CSR 1 in 2009› Benefits extended to extractives

communities

Delivery of “Triple Bottom Line”:

Economic:› Strong cash flow generation› Attractive growth and profitability› Consistent dividend payments

Environmental:› Carbon neutral operations › Utilization of refill packages› Sustainable extraction› Use of recycled and recyclable materials

6

Attractive market with differentiated growth profile

1 Corporate and Social Responsibility

Differentiated Value Proposition

channel products

corporatebehavior

brand

7

Countries 2009 CAGR %„04- „09

United States 59 1.6%

Japan 40 0.7%

Brazil 28 14.1%

Mexico 7 7.4%

Argentina, Chile, Colombia and Peru

9 10.8%

Countries in which Natura operates 44 12.2%

World 351 5.1%

Size of CF&T market (in US$ billion)

Source: Euromonitor 2009

The markets in which Natura operates

represent 12.5% of the global CF&T

market and have a growth rate of 2.4x that

of the total market

Direct sales share in the CF&T Market

Region Direct Sales (%)

Latin America 27.3%

Brazil 24.4%

Argentina 23.8%

Chile 19.5%

Colombia 38.5%

Mexico 31.6%

Peru 28.0%

Asia Pacific 11.7%

North America 8.5%

Western Europe 3.2%

Australasia 9.2%

Africa / Middle East 2.3%

Source: Euromonitor 2009

Relevant market withdifferentiated growth in LatAm…

... leveraged in the Brazilian context

GDP growth

Core market growth in real

terms

2002 2.7% 2.5%

2003 1.1% 7.0%

2004 5.7% 12.2%

2005 3.2% 9.6%

2006 3.8% 10.1%

2007 5.4% 8.3%

2008 5.1% 10.8%

2009 -0.2% 10.4%

CAGR ‘02- ‘09 3.4% 8.9%

2010E 6.9%

Core market growth in real terms vs. GDP in Brazil

Source: IBGE, Central Bank and Abihpec

Demand drivers in Brazil

› Increasing purchasing power of C

and D income classes

› Greater participation of women in

the labor market

› Cultural emphasis on personal and

aesthetic treatments

8

10,5

13,212,6

9,9

7,9

9,5

2,9

6,7

6,3 6,37,3

6,1

2003 2004 2005 2006 2007 2008 2009

Natura Unilever Avon

Procter & Gamble O Boticario Colgate

Leadership position in Brazil..

9

Market Share Total CF&T (Euromonitor)(Percentage)

Core Market (ABIHPEC / SIPATESP)Natura Market Share per Segment

1st Bi 10

23.7%

T: 12.7%

CF: 38.8%

Source: Euromonitor 2009

3.7383.984

244.5

Total NaturaBrazilLATAM

(Natura)ArgentinaChileMexicoColombia Peru

..gaining share in LATAM

10

Sales Natura (at retail prices)¹(US$ Million)

¹ Source: Euromonitor 2009

10

7,43%

Share Natura 2009 0.45% 0.45% 2.99% 2.75% 13.16%

Evolução Share

2008 -> 2009+0.28pp +0.15pp +0.78pp +0.55pp +0.24pp

Ranking Natura 2009 8º 6º 1º

Ranking Evolution

Natura 2008 -> 2009 10º-> 8º 11º-> 6º Steady

Top 3 Players (mkt share)

P&G (15.7%) Unilever (9.8%)

Belcorp (8.3%)

Unilever (18.2%) Avon (12.2%)

P&G (10.9%)

Natura (13.2%)Unilever (9.9%)

Avon (9.5%)

4.52%

+0.67pp

Avon (11.1%) P&G (10.9%)

Colgate (9.4%)

23º

33º-> 23º

22º

P&G (16.2%)Colgate (11.3%)

Unilever (8.3%)

30º-> 22º

9º

10º-> 9º

Unilever (15.5%) P&G (12.3%)

L'Oréal (10.1%)

Total sales at retail price

(global ranking)3.049 (20º)

7.399 (11º)

1.744 (25º)

2.948 (21º)

28.415 (3º)

1.421 (28º)

1.46%

+0.40pp

12º

16.734

P&G (13.7%) Unilever (10.5%)

Avon (9.1%)

16º-> 12º

7,43%

Total Market (LATAM²) : US$53,6 billion

Share Natura 2009

LATAM

42

47 46

18 16 16

2007 2008 2009

Natura 2nd place

11

Brand recognition in Brazil

Source: Ipsos Brand Essence

CF&T brand by preference (%)

42

47 46

18 16 16

2007 2008 2009

Natura 2nd place

Ranking CompanyBrand value

(in R$ BN)

Mkt. Cap

(in R$ BN)

1º Petrobrás (Oil) 19.3 347.1

2º Bradesco (Bank) 14.9 103.2

3ºItaú Unibanco(Bank)

13.3 154.4

4ºBanco do Brasil(Bank)

11.0 76.3

5ºNatura(Cosmetics)

6.1 15.6

6ºSkol2

(Beverages) 5.4 98.2

Most valuable brands among Brazilian public companies (2009)¹

1 Source: BrandAnalytics and Millward Institute

2 Considers Ambev's Market Cap

Presti

ge

Massti

ge

Massiv

e

12Source: Booz & Company research, 2009

Brand Position

R$ 4.95 /each3 unit package

R$ 2.94 each5 unit package

R$ 10.50 /each1 unit package

13

86 119

159 140

177

2007 2008 2009

632

731

875

799

942

2007 2008 2009 1H09 1H10

719

850

1.034

939

1.119

2007 2008 2009 1H09 1H10

Channel strength

1 Source: Company, ABEVD (Brazilian Association of Direct Sales Companies)2 HAY Consultant annual opinion poll for consultants satisfaction

Available consultants (in thousands) Channels differentiations

High productivity1

2.2 times higher than its peers

High satisfaction2

90% in 2009

Training583,000

consultants trained in 2009

Low turnover

36% on

average

› Consultants are Natura‟s first consumers

› Drive sales through personal relationships

› Channels disseminate Natura's values with consultants acting as agents of social transformation

› Natura reached 1 million consultants in October, 2009

Business model that generates

income and work

14

Brazil

2Q: 941.9(+17.9%)

+19.8%

Int’l

2Q: 177.7(+26.8% )

+33.9%

Total

2Q: 1,119.6(+19.3%)

+21.8%

Commercial model - CNO

CNO ModelOld Model

GR

CN

CNCN

CN

CN

CN

CN

CN

CN

CNO

CNO CNO

CN

CNCN

GR

CN

CN

CN

1 CNO : up to 150 CNs

1 GR: 600 CNs

15

1 GR: up to 15 CNOs

1 GR: up to 2,250 CNsHired under CLT regulations

• Platform for channel growth

• Stronger and more productive relationship with our consultants

• Greater emphasis on training

Brazil (2010)

1 GR 11 CNOs

1 CNO 96 CNs

1 GR 1,048 CNs

By the end of the 9th cycle.

GR – Relationship ManagerCNO – Natura Super ConsultantCN – Natura s Consultant

183

123113

38 52

56,7%

68,8% 67,6% 64,6% 68,1%

2007 2008 2009 1H09 1H10

Innovation

16

Number of new products & innovation index¹

Source: Company

Note:1 Percentage of products launched in the last 24 months in

the company‟s revenues

* Percentage of net revenue invested in innovation

3.5%* 2.9%* 2.6%*

Number of launches Innovation Index

› Products with functional, emotional and philosophical benefits

› Sustainable use of Brazilian biodiversity

› Open Innovation exceeded 50% of the projects

Launches 2010

17

Summer Winter

Ekos Line Chronos Line

Corporate behavior

18

»Evolution on relationship quality

»Systematic process of stakeholder engagement:

Consultants, employees, consumers, supplier communities and investors

»1,500 people involved

»Third company to be publicly listed on the Bovespa Novo Mercado

»First Latin American Company to adopt the 2001 Global Reporting Initiative (GRI)

»Part of ISE – Corporate Sustainability Index

» Best company (Exame); Most admired company in Brazil, 2009 (Carta Capital)

18

19

Triple Bottom Line Results

598,9 552,1

447,3

2007 2008 2009

4,02

3,82

3,63

2007 2008 2009

Social and Environmental Results

20

CO2 emissions(CO2 emitted / Kg of

product sold)

Power consumption per product sold

(Kjoules / unit)

» Carbon Free since 2007

» Ekos 10th anniversary: Sustainable use of biodiversity and cultural heritage.

Engagement with 26 communities, benefiting 2,084 families

» Crer Para Ver program – improvement of brazilian public education: 7.1% of

the consultants joined the voluntary product selling

» Climate research

» consultants: 90% in 2009

» employees: 74% in 2009

» suppliers: 82% in 2009

465 518

684

307 333

2007 2008 2009 1H09 1H10

Consolidated net income

706

860

1.008

439

575

2007 2008 2009 1H09 1H10

23,0%

24,1%23,8%

23,5%

25,0%

3.073

3.576

4.242

1.868

2.298

2007 2008 2009 1H09 1H10

Economics

21

Net Revenues (R$ million)

Source: Company

CAGR „07-„09 = 17.5%

EBITDA and Margin (R$ million)

CAGR „07-„09 = 19.5%

23.0%

17.2%

31.0%

32.0%

8.5%

Net Income and Margin (R$ million)

CAGR „07-„09 = 21.2%

18.6% 15,1% 14,5%

16,1%16,4% 14,5%

0,2

0,1

0,2

2007 2008 2009

415500

598

89%

96%

87%

2007 2008 2009

136

110

141

250

2007 2008 2009 2010E

Economics

Leverage

(Net debt / EBITDA)

Dividends paid and pay-out ratio(in R$ million)

CAGR „07-„09 = 20.0%

Capex

(in R$ million)

Source: Company

22

(28,0)

(37,9)

(42,3)

(25,4)

(12,8)

2007 2008 2009 1H09 1H10

(5,1)

(1,4)

8,9

5,2

1,8

2007 2008 2009 1H09 1H10

21,7

44,0

66,5

31,6

43,3

2007 2008 2009 1H09 1H10

121,2

164,4

218,5

100,9114,0

2007 2008 2009 1H09 1H10

Economics – International operations

Net revenues (R$ million)

EBITDA (R$ million)

Opera

tions in c

onsolidation (

R$ M

illion)

(A

rgentina, Chile, Peru

)

Opera

tions in im

ple

menta

tion (

R$ M

illion)

(Mexic

o a

nd C

olo

mbia

)

23

+ 32.7% in local currency

+ 67.0% in local currency

24

Looking Ahead

Looking ahead

Management Model

Managing through processes

Strengthening organizational

culture

Leadership development

Business and regional unitsLatin America

New growth cycle

Business model focused on

increased customization

Corporate behavior

Brazil

Continue enhancing leadership via

brand and channel strength

Opportunity to gain its market

share in sub-categories

Consistent investments: Increase in CAPEX

IT (commercial and logistic processes)

Logistic Model

Production capacity

25

Management model

› Leadership development

› Strengthening of corporate culture based on Natura's core values

› Implementation of regional and business units

26

A B C D

São Paulo Metro

São Paulo Countryside

Mid West1

North/Northeast

South

Regio

nal U

nit

Channels

Business UnitsManagement by Category and Brands

› Proximity to market

› Regionalization of marketing mix

› Increased autonomy and accountability

› Leadership development opportunities

Note:1 Includes the Mid West region and the following states: Minas Gerais, Rio de Janeiro and Espírito Santo

Because of its corporate behavior, the

quality of the relationships it establishes and

the quality of its products and services,

Natura will be an international brand,

identified with the community of people who

are committed to building a better world,

based on better relationships among

themselves, with others, with

nature of which they are part,

with the whole.

Vision

IR Team +55 11 4196-1421

www.natura.net/investidor

Helmut Bossert

Patricia Anson

Bruno Caloi

Back Up

30

Beliefs

Life is a chain of relationships. Nothing in the universe exists

alone. Everything is interdependent.

We believe that valuing relationshipsis the foundation of an enormous

human revolution in the search for peace, solidarity, and life in all of its

manifestations.

Continuously striving for improvement

develops individuals, organizations,and society.

Commitment to the truthis the route to perfecting the quality

of relationships.

The greater the diversity,the greater the wealth and vitality of the

whole system.

The search for beauty, which is the genuine aspiration of

every human being, must be free of preconceived ideas and manipulation.

The company, a living organism, is adynamic set of relationships

Its value and longevity are connected to its ability to contribute to the evolution

of society.

Reason for being

Our reason for being is to create and sell products and services that promote well-

being/being well.

Well-being

is the harmonious, pleasant relationship of a person with

oneself, with one's body.

Being well

is the empathetic, successful, and gratifying relationship of a person with others, with nature

and with the whole.

Beliefs

Ekos

sustainable use

of biodiversity

Chronos

a truly beautifulwoman

Todo Dia

(every day)

caring for bodyand mind

Mamãe e Bebê

(mom and baby)

the importance ofthe bond between parents andtheir children

15,3

17,5

21,5% 22,6%

2008 2009

8,1

9,3

11,2% 12,4%

2008 2009

7,2 8,3

33,0% 33,9%

2008 2009

(1) Core market: Skin care, sunscreen, makeup, perfumes, fragrances, hair care, shaving products and deodorant - excludes diapers, nailpolishes, sanitary pads, hair dyes and oral hygiene. Source: Sipatesp/ ABIHPEC.

Core Market CF&T - Brazil

36

CF&T Market¹ (R$ billion)

Cosmetics and Fragrances(R$ billion)

Toiletries(R$ billion)

+ 111 bps+ 121 bps+ 93 bps

+14.7% +14.1%

+14.4%

9.495 9.622 9.493

2.391 2.457

4.386 4.498

2007 2008 2009 2Q09 2Q10 1H09 1H10

Productivity - Brazil

Consultant Productivity1 in Brazil (R$ per average available consultant)

2.8%

(1) At retail prices.

37

2.5%

NATU3 Performance

38

Natu3 Ibovespa

NATU323/07/2010

R$41.10

NATU326/04/2004

R$6.67

2004 2005 2006 2007 2008 2009

NATU3: +87.2%Ibov: +33.0%

NATU3: +37.9%Ibov: +28.3%

NATU3: +51.1%Ibov: +29.1%

NATU3: -41.4%Ibov: +47.4%

NATU3: +18.0%Ibov: -41.4%

NATU3: +101.6%Ibov: +82.7%

2010

NATU3: 15.9%Ibov: -3.6%

632%

251%

P&L Natura

R$ million 2Q10 2Q09 1H10 1H09

NET REVENUES 1.283,6 1.034,3 2.298,0 1.867,9

Cost of sales (400,1) (301,8) (711,8) (563,4)

GROSS PROFIT 883,6 732,5 1.586,2 1.304,6

Operating expenses (566,9) (505,6) (1.046,8) (912,9)

Financial income (expenses), net (12,8) (19,7) (19,4) (12,8)

Other operating income (expenses), net (12,4) 0,7 (13,2) 0,6

INCOME BEFORE INCOME TAX

AND SOCIAL CONTRIBUTION 291,5 207,9 506,9 379,5

Income tax and social contribution (100,0) (39,7) (173,9) (72,5)

NET INCOME FOR THE YEAR 191,5 168,2 333,1 307,0

Ratios

Gross Margin 68,8% 70,8% 69,0% 69,8%

G&A / Net revenues 10,3% 11,8% 10,6% 11,6%

Selling Expenses / Net revenues 32,2% 35,3% 33,2% 35,4%

Net Margin 14,9% 16,3% 14,5% 16,4%

Purchasing power is increasing in Brazil..

11,1%

15,1%

42,4%

53,0%

16,4%

13,7%

30,2%

18,2%

2003 2004 2005 2006 2007 2008 2009

Brazil- Social Income Classes

Class AB Class C Class D Class E

› 36 million people will move up to

Classes A,B and C (FGV) until

2020

› 20 million people left poverty

since 2003

Class Income (R$)

AB More than 4.808

C 1.115 – 4.808

D 804 -1.115

E Up to 804Source: FGV 2009