march 05th-07th, 2007

UBS Pactual Eighth Annual CEOs Conference

highlights2

Gross Revenues: R$ 3.9 billion in 2006

Market share: 22.8% in Brazilian core market in 2006

Total consultants: 617 thousand in December 2006

International presence: Brazil, Argentina, Chile, Peru, Mexico, France and Venezuela

Opening of the first Casa Natura in Brazil, in the city of Campinas, state of São Paulo

Expansion of the Distribution Center located in the city of Mathias Barbosa, state of Minas Gerais

Start up direct sales tests and opening a research laboratory in Paris – France

highlights2006

3

CF&T market4

CF&T core market – Brazil

> Core Market1 – Net Revenues (R$ billion, nominal)

CAGR (2001-2006) = 16.5%

2001 2002 2003 2004 2005

5.3

6.3

7.2

8.7

10.1

+13.4%

(1) Target market: Skin care, sunscreen, makeup, perfums, fragrances, hair care, shaving products and deodorant - excludes diapers, nail polishes, sanitary pads, hair dyes and oral hygiene. Source: Sipatesp/ ABHIPEC.

2006

11.4

5

market share – Brazil

> Natura’s Market Share in the Core Market1 (%)

2001 2002 2003 2004 2005

14.3% 14.5%

17.1%

19.2%

21.4%

+1.4 pp

(1) Target market: Skin care, sunscreen, makeup, perfums, fragrances, hair care, shaving products and deodorant - excludes diapers, nail polishes, sanitary pads, hair dyes and oral hygiene. Source: Sipatesp/ ABHIPEC.

2006

22.8%

6

4Q06 and FY06 results

7

consolidated gross revenues

> Consolidated Gross Revenues (R$ million)

CAGR (2001-2006) = 27.2%

1,168

1,411

1,910

2001 2002 2003 2004

2,540

3,244

2005

1,030

4Q05

1,201

4Q06

+16.6%

3,890

2006

+19.9%

8

consolidated gross revenues

• Significant change in our merchandising strategy at the end of the year

• Higher promotional kits sales (lower margins)

• Cannibalization of regular products

4Q06 gross revenues were R$1.2 billion, frustrating our expectation (+16.6% over 4Q05). Main drivers that contributed for this performance:

9

consolidated EBITDA

> EBITDA (R$ million)

CAGR (2001-2006) = 36.9%

136

199

296

432

564

195178

2001* 2002 2003 2004 2005 4Q05 4Q06

-8.9%

(*) Natura Empreendimentos.

+16.0%

655

2006

10

consolidated EBITDA margin

20.1

22.2

24.4 24.7

26.8

20.8

2002 2003 2004 2005 4Q05 4Q06

> EBITDA Margin (%)

-6.0 pp

23.7

2006

-1.0 pp

11

• Increase on promotional kits sales (lower margins)

• Increase on discounts and promotions in the total sales mix

• Some administrative expenses above expectations in the 4Q06

consolidated EBITDA

4Q06 EBITDA was R$178 million (-8,9% compared to 4Q05), as a result of:

12

CAPEX

> CAPEX (R$ million)

83

2004

112

2005

194

2006

190

2007E

13

consolidated cash flow – pro forma

Net income

(+) Depreciation and amortization

(=) Internal cash generation

(-) Operating working capital1

(-) Other assets and liabilities2

(=) Operating cash generation

(-) Capex

(=) Free cash flow

R$ million 2006 2005 Change %

460.8

54.6

515.4

-73.1

-46.7

395.5

202.0

-193.6

396.9

44.0

440.9

-3.7

1.5

438.7

327.1

-111.6

16.1

24.0

16.9

-9.8

-38.3

(1) Assets – Accounts receivable, inventories and recoverable taxes short term. Liabilities - suppliers, salaries, profit sharing and related charges, taxes payable, provisions and accrued freight.

(2) Assets - Advances to employees and suppliers, short term deferred income tax and social contribution, other credits and long term receivables. Liabilities: other short and long term payables and reserve for contingencies

14

channelinnovation

brand15

consolidated number of consultants

> Total Number of Consultants1 (thousands)

CAGR (2001-2006) = 15.5%

300321

375

433

520

2001 2002 2003 2004 2005

+18.6%

617

2006

(1) Consultants in Argentina, Brazil, Chile, Peru e Mexico.16

productivity

CAGR (2001-2006) = 8.0%

+1.9%

> Productivity in Brazil (R$ thousand per average active consultant)

8.59.0

10.5

11.512.3

3.6 3.5

2001 2002 2003 2004 2005 4Q05 4Q06

-1.8%

12.5

2006

17

productivity

> Productivity in Brazil – Natura vs. Direct Sales Industry (R$ thousand per average active consultant in 2006)

Source: ABVED

8,2

12,5

Industry (except Natura)

Natura

1.5x

18

brand perception

Source: Survey commissioned by Natura. Conducted with 1,200 people across different social classes in three large Brazilian cities (São Paulo, Porto Alegre and Recife).

70%

68%

20062005

73%

70%

2006

2nd in rank

Innovation

Quality 61%

52%

Preference 43%43% 19%

19

innovation

117

182

2003 2004 2005

213

2006

225

> Number of New Products – innovation + improvements

48.8

63.2

69.8

2003 2004 2005

> Total Innovation Index – innovation + improvements %

58.4

2006

20

internationalexpansion

21

> Financial Highlights – Argentina, Chile and Peru (US$ million)

(1) Position at the end of the 17th sales cycle period.

4Q06 4Q05 Change%

Units sold – items for resale

(in millions)

Net Revenues

Ebitda

Ebitda Margin

Gross Revenues

20052006 Change%

Total de Consultants1

4.0 2.2 83.3%

13.5 8.9 51.6%

17.6 11.6 52.0%

-3.4 -1.5 135.9%

-25.4% -16.3%

51.2 36.2 41.7%

11.6 7.0 65.0%

42.0 27.8 51.1%

54.9 36.2 51.8%

-6.8 -4.5 51.1%

-16.3% -16.3%

51.2 36.2 41.7%

highlights – operations under consolidation

22

> Financial Highlights – Mexico, Venezuela and France (US$ million)

4Q06 4Q05

Units sold – items for resale

(in millions)

Net Revenues

Ebitda

Gross Revenues

20052006

Total de Consultants1

0.23 0.05

1.7 0.6

2.0 0.7

-5.4 -3.3

5.0 1.4

0.58 0.06

4.4 1.1

5.1 1.2

-16.7 -10.0

5.0 1.4

(1) Position at the end of the 17th sales cycle period.

highlights – operations under implementation

23

international expansion

> Total Net Expenses1 (R$ million)

2007E

48.0

31.8

39.6

2005 2006

(1) Considers operating loss from operations under consolidation (Argentina, Chile and Peru) added to operations under implementation (Mexico,Venezuela and France); and exchange rate impact on controlled companies balance sheet translations, excluding reported gains in trading from Brazil to these companies.

24

perspectives25

perspectives

• Improve efficiency in our marketing actions, and better balance between short and long-term actions

• Freeze on administrative structure expenses for the coming two years

• Search for productivity gains – operational processes

• Maintain autonomous administrative structure dedicated to Brazilian and international operations

Maintain the strategy with adjustments in the implementation

26

perspectives

• Continue to invest in Argentina, Chile and Peru, focused on the achievement the break even

• Consolidate our presence in Latin America, opening operations in Venezuela and Colombia in 2007

• Search for new markets, starting with new operations in the United States and Russia, in 2008

• Triple Bottom Line and quality in relations

Focus on the international operations, based on the following aspects:

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This presentation contains forward-looking statements. Such statements are not statements of

historical fact, and reflect the beliefs and expectations of the Matura's management. The words

"anticipates“, “wishes”, “expects”, "estimates“, “intends“, "forecasts“, "plans“, "predicts“,

"projects“, "targets" and similar words 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.

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