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Creatingthe bestbeautygroup FORthe world2019 report1

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PurposeTo nurture beauty and relationships fora better way of living and doing business.BeliefsWe are passionate agents of change.We build relationships based on transparency,collaboration and diversity.AspirationWe will dare to innovateto promote positive economic, socialand environmental impact.We are committed to integrity and holdourselves accountable.We find the courage to challengethe status quo and go beyond.We honor and respect theinterdependent nature of all things.45

Natura &Co 2019 SummaryNatura &Co08 Who we are12 Global footprint16 Message from the Board of DirectorsxxHighlights20 Financial highlights24 Environmental highlights26 Social highlights28 Governance and strategyOur businesses30 Natura &Co mobilizing against COVID-1934 Message from the CEOs36Natura38 2019 highlightsPhoto: Matt Anderson Photography / Getty Images42 Major launches644The Body Shop46 2019 highlights50 Major launches52Aesop54 2019 highlights58 Major launches60Avon62 Welcome to the family66 Iconic products7

Whowe are8Natura &Co is a purpose-drivengroup made up of four iconic beautycompanies: Avon, Natura, The Body Shopand Aesop. We are a global direct-toconsumer relationship business, presentin more than 100 countries. We are unitedin the belief that there is a better way ofliving and doing business, committed togenerating positive economic, social andenvironmental impact.9

Natura &Co 2019 Who we areFounded over 50 years ago in Brazil,Natura today has 1.8 million direct sellingconsultants as well as 490 stores (ownedand franchised) and a growing onlineplatform. Known for the way it integratessustainability into its business model, Naturawas the first publicly traded company toachieve B Corp certification in 2014.Founded in the United States in 1886,Avon joined Natura &Co in January2020. Its products are sold primarily towomen, through women. With over fivemillion representatives in more than55 countries, Avon supports women'sempowerment, entrepreneurship andwellbeing and has donated overUS 1 billion to women's causes.10Aesop was established in Melbourne,Australia in 1987 and is now presentin 23 countries, with more than 240unique stores worldwide. Fiercelyindependent from the outset, Aesop isrenowned for products created withmeticulous attention to detail andsensory pleasure in mind. Since theinception of the Aesop Foundation in2016, it has supported over 30 notfor-profit literacy and storytellinginitiatives in Australia.Founded in the UK in 1976, The BodyShop became a certified B Corp in 2019.The Body Shop seeks to make positivechange in the world by offering highquality, naturally-inspired productsproduced ethically and sustainably.Having pioneered the philosophy thatbusiness can be a force for good, thecompany still has this ethos as its drivingforce. The Body Shop operates about3,000 retail locations (owned andfranchised) in more than 70 countries.11

Natura &Co 2019 Global footprintNatura &Coin numbersconsultants andrepresentatives 3,000stores andfranchisees 100consumersaround the worldcountries 40,0001.8 mUS 10hectares billion US 1billionemployees andassociatesof rainforestconserveddonated towomen’s causesgrossrevenuePhoto: xxxxxxxxx 6.3million200million1213

Natura &Co 2019 Global footprintFrom all fourcorners of theworld, FOR theworldAvonNaturaThe BodyShopAvonNaturaThe BodyShopAesopEurope6,900AesopAsia2,800North America980AvonNaturaThe BodyShopOceaniaFrom the Americasto Asia, Natura &Coemployees workaround the world,nurturing beautyand relationships.800The BodyShopAfricaLatin America73018,000Avon14NaturaThe BodyShopAesopAvon15AesopAesop

Natura &Co 2019 Message from the Board of DirectorsIt is time tocare. It is timeto choose!Antonio Luiz da Cunha Seabra,Guilherme Peirão Leal and Pedro Luiz Barreiros PassosCo-chairmenRoberto de Oliveira MarquesExecutive Chairman and CEO of Natura &CoA report such as this is, by definition, a journeythrough time. Bound by projects, facts, actions andresults achieved during the course of 12 months,it is underpinned by the inescapable past and thefuture that beckons. 2019 was an unforgettable yearfor Natura &Co. We had cause to celebrate manyachievements. The current moment, however, iscomplex in a way that was unthinkable a short whileago. Consequently, we will begin by examining thepresent.consultants and representatives, providing support inthe challenge of maintaining their business activitiesand keeping their morale up, while respecting thenecessary physical distancing. Through cooperationand empathy and by taking care of each and everyindividual, we are certain that we will overcome theseturbulent times. More than ever, what motivates us isthat which has united us since the beginning: “Life isa chain of relationships. Nothing stands alone, everything is interdependent”.On the eve of the publication of this message in May2020, the pandemic caused by the new coronavirushas forced us to reflect on our role as individuals, families, companies, countries and as a civilisation. It hasbecome even more important to be clear about ourpriorities and about how interdependent we all are.It is a time to take care. For the parts and for thewhole. Taking care of oneself, of others and of therelations we establish with the world. It is a time toprioritize investment in public health, in supportingthe economy and small businesses, in stimulating thegeneration of income and in meeting the needs of themore fragile, of whom there are many. The needs ofthe existing and the ever-growing high-risk groups.There should be no doubt about the path to be chosen. We must act rapidly in order to preserve life.The feeling of unity and solidarity that is emerging inthis historic moment is a reminder that concertedsolutions are possible, particularly in the face of another immediate challenge: the climate crisis, the fullextent of which has yet to be understood.In this challenging context, we are determined to playour part. We have expanded production of personalcare products essential in combating the pandemic.We have done this taking the necessary care to safeguard the health of our co-workers. For those not directly involved in production and distribution, we haveencouraged and supported our associates as theywork from home. We have made donations to publicand medical institutions and engaged in continuousdialogue with local, national and global institutions toensure we are in line with best practices. We have doneeverything possible to safeguard project stability, andwe continue to generate opportunities for many.Evidently, based on love, we have sought to remainas close as possible to our millions of independent16In our origins and in our purpose, we find the strengthto face challenges on this scale. Natura, built on thecollaboration of millions of people, has developed bydiscovering meaning and disseminating purpose.With a commitment to pursuing happier individuallives and a fairer society, the preservation of the planet.In short, the creation of a better world.Our union with Aesop and The Body Shop in recentyears represented the beginning of our internationalexpansion beyond Latin America. Under the umbrellaof the Natura &Co group, we harbor different brandidentities and business models, united by purpose,activism and ethical principles.In May 2019, we announced the historical agreementfor the acquisition of Avon, which was concluded inJanuary 2020. This 134-year-old company, which created the direct selling model in cosmetics and is oneof the best-known brands on the planet, is now partof Natura &Co, expanding its reach to 200 million customers in 100 countries. In addition to countless newbusiness opportunities, we now have the chance tofurther extend the causes that we advocate – including the campaign against domestic violence, promoting women’s rights, and celebrating the invaluablerole women have in the construction of society.17Natura and Avon together represent the transformational power of the positive cultivation of humanrelations, the basis of direct selling. Now with over sixmillion people, hungry for good business opportunities, personal development, knowledge and greaterself-esteem – for themselves and for their personal network. It is time to care for and strengthen this network.Now as a larger group, we have taken on the challenge of being the best FOR the world at a time when,more than ever, companies are expected to take onthe role of building a more reassuring future. “Thesunrise is slow, but it advances,” the poet once said.And we will continue to run our companies on thishope leveraged by the growth in solidarity in theworld. We have no way of knowing what the postcrisis world will be like, but we believe that this is themoment to choose who we want to be, as individuals,as companies, as countries and as a world.The intolerable inequalities, the hunger and the manyinjustices in the world have gained greater exposuresince the outbreak of this pandemic. Based on thistransformational experience, we clearly have choices tomake. This crisis has shown that the world of radical nationalism, of intolerance towards diversity and the denialof science is fragile, even for those who thought theywere above it all. We at Natura &Co have always believedin the power of developing deeper relations betweencountries, of open immigration, of cultural interaction,of a world that creates consensus based on renewedglobal governance, anchored in democratic values.We have a new social and world order to build to replace the one that is vanishing. Its nature will dependon the choices we make and on the values that willunderpin this new construction. It will depend on ourcapacity to use our intelligence, our creativity and thetechnologies at our disposal as well as the ones we areyet to develop, to construct a new green economythat is sustainable and inclusive.This choice is imposed by the crisis. And our hoperesides in making generous choices.

Board of Directors(from left to right)Gilberto MifanoCarla SchmitzbergerNancy KilleferW. Don CornwellRoberto deOliveira MarquesIan Martin BickleyPedro LuizBarreiros PassosJessica DiLullo HerrinGuilherme Peirão LealThose who weren't ableto be with us on thisoccasion:Antonio Luizda Cunha SeabraAndrew GeorgeMcMaster Jr.Fábio Colletti Barbosa1819

Natura &Co 2019 HighlightsfinancialhighlightsConsolidated net revenue (R million)Faced with a challenging conjuncture in diverse14,444regions in which we operate, Natura &Co achie-13,397ved important results in the economic, social7.8%Annualgrowthand environmental spheres in the course ofAdjusted EBITDA (R billion)32019. During the year 1, both sales and adjustedoperating income2 performed robustly, drivenby growth in all the businesses. The group’s sha-1,8541,99420182019res (NTCO3), traded on the São Paulo B3 stockAdjusted operating income (R hexchange, appreciated 71.9% during the year.20182019For further information and detailed analysisof Natura &Co’s financial results, accesshttps://ri.naturaeco.com/en/201820191For purposes of comparison, the results in this document exclude the IFRS 16 new accounting standard for lease agreements. The reported results, including theimpact of IFRS 16, are disclosed in the company’s financial statements.2Excludes all non-operating effects, such as the expenses related to acquisitions, transformation costs, financial earnings/expenses and Brazilian income tax rate.3Adjusted results exclude effects that are not considered recurring or comparable between the periods under analysis.2021

Natura &Co 2019 HighlightsNet revenue (R billion)9,0128,4476.7%Annualgrowth2018EBITDA (R Annualgrowth40%Annualgrowth2018201923