1 / 35

Natura Cosméticos S.A. - Strategy, Innovation, and Sustainability

Learn about Natura Cosméticos S.A.'s strategy, medium-term goals, financials, and adherence to the "Novo Mercado" rules. Discover their focus on innovation, sustainable development, and their strong sales channel. Explore their brand attributes and target market.

smithwarren
Télécharger la présentation

Natura Cosméticos S.A. - Strategy, Innovation, and Sustainability

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Merrill Lynch Global Emerging Markets Conference June 6th – 8th 2006

  2. Agenda Introduction Strategy Medium Term Goals Financials

  3. Natura Cosméticos S.A. CF&T target market : fragrances, make-up, skin care, sun care and toiletries Direct Sales Distribution Operations in Brazil, Argentina, Chile, Peru, Mexico and France Adherence to the “Novo Mercado” rules

  4. Natura Cosméticos S.A.

  5. strategy Back to Agenda

  6. Our strategy Products Innovation Sales Channel Brand

  7. Brand Essencial attributes of our brand Product design based on the Well being Well concept Sustainable exploration of natural resources and creation of value to all stakeholders Transparency and factual communication building stronger relationship with consultants and consumers Premium products and high value

  8. Brand perception 2nd in rank 2005 2004 2005 Top of mind 27% 25% 27% Preference 42% 43% 19% Innovation 68% 64% 49% Quality 71% 56% 70% 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).

  9. Life celebration

  10. refills sustainable development

  11. Brazil has one of the richest biodiversities in the world: • 22% of all species on Earth • Encompasses a wide range of different ecosystems: “Amazônia” (the largest rain forest in the world), “Pantanal” (the largest flooded plain in the world), “Cerrado” (steppe-like vegetation), “Caatinga” (desert-like vegetation), “Atlantic Forest” (tropical forest) and “South Fields” (prairie-like vegetation). Innovation Strong investments in R&D -3% of net sales Open Innovation – leverage of R&D investments through a network of research partners Biodiversity as a research platform

  12. Innovation Number of New Products Number of New Products 213 182 165 117 91 2001 2002 2003 2004 2005

  13. Innovation Total Innovation Index (innovation+improvements) 69.8% 63.2% 48.8% 44.9% 43.5% 2001 2002 2003 2004 2005

  14. Channel Consultants are provided with: Marketing support Flexible and fast logistics services Full Portfolio available 100% of the time Transparent rules with freedom of choice Itau First Annual Brazil Conference

  15. Consolidated sales channel Consolidated Number of Consultants* (thousand) CAGR (2001-2005) = 14.7% 529 519 450 433 375 321 300 +19.8% +17.7% 1Q05 1Q06 2001 2002 2003 2004 2005 (*) Number of consultants at Argentina, Brazil, Chile and Peru.

  16. Productivity in Brazil (R$ per average active consultant) 12,288 1.7 X 7,262 Direct sales except Natura 2005 Natura´s consultants 2005 *source ABVED Consultant’s productivity-Brazil Productivity in Brazil (R$ thousand per average active consultant per year) CAGR (2001-2005) = 9.7% 12.3 11.5 10.5 9.0 8.5 +6.6% 2.54 2.53 +0.3% 1Q05 1Q06 2001 2002 2003 2004 2005

  17. Channel Consultants Turnover1 (Brazil) 33% 30% 28% 26% 2002 2003 2004 2005 (1) Number of consultants who stopped activity in relation to the average total consultants figures.

  18. Natura’s sustainability: some initiatives and results EJA (Young and Adults Educacional Program) 66,600 students Effective enrolments in 2005 Life Cycle Assessment (LCA) 100% of launched products under LCA packaging analysis 2004 2005 Natura´s average environmental impact 10.6 10.1 Sales of refills 2004 2005 % of refills over total items sold 15.3 17.4

  19. Natura’s sustainability: some initiatives and results Soap noodle plant project (Pará State) 2600 families 2600 families Combination of innovation, sound investment, strong social impact and environmental protection Oil extraction Oil estraction • Start up in october/2006 • ROI = 19,6% • Research and development based on • exotic oils • Up to 2600 families benefited • Present forested areas protected and • future recovering of degraded areas Exotic oils (special soaps) Palm oil Soap noodle manufacturing Model manufacturing Natura

  20. Medium term goals Back to Agenda

  21. Medium term goals 1. Thoroughly explore the growth potential in Brazil - investment in R&D up to 3.5% of net sales Gains of scale and savings from higher productivity transfered to: - brand building- channel support - marketing- IT projects

  22. Growth drivers Ageing population – CFT total consumers growing at 2,2% per year throught 2014 Increasing participation of women in workforce and income Strong investments in R&D throughout CF&T industry Migration of consumers to higher classes (D to C and C to B) Brazilian target market CFT market grows three times faster than GDP Target market growth 1 GDP growth 1.4% 2001 4.7% 1.5% 2002 5.7% 0.5% 2003 4.6% 5.2% 2004 12.3% 2.3% 2005 9.7% 2.2% 7.4% CAGR( 2000-2005) Sources: IBGE and Sipatesp. (1) In real terms deflated by IPCA.

  23. Market share CF&T target market - Brazil Natura’s Market Share – Target Market1(%) 21.4 21.0 19.2 18.6 17.1 14.5 14.3 2001 2002 2003 2004 1B05 1B06 2005 • Target market: Skin care, sunscreen, make-up, fragrances, hair care, shaving products and deodorants - excludes diapers, nail polishes, sanitary pads, hair dyes and oral hygiene. Source: Sipatesp/ ABHIPEC.

  24. CF&T market in Latin America (excluding Brazil) Retail prices - US$ billion Natura’s market share 2005 = 0.3% 18 1 CAGR = 3.7% 15 2005 2009E Source: Euromonitor (Cosmetics and Toiletries). 1. Real terms Medium term goals 2. • Complete expansion in the main markets in Latin America • - Venezuela – 2006 • - Colombia – 2007 • - Others Latin America countries – 2010

  25. Medium term goals 3. Assess the potential of Natura’s opportunities in other CF&T markets - Eastern Europe - Western Europe and USA

  26. Financials Back to Agenda

  27. Our size Consolidated Gross Revenues (R$ million) CAGR (2001-2005) = 29.1% 3,244 2,540 1,910 +27.7% 1,411 1,168 723 611 +18.3% 2001 2002 2003 2004 2005 1Q05 1Q06

  28. Our results EBITDA (R$ million) 564 CAGR (2001-2005) = 42.7% 432 296 +30.8% 199 136 113 95 +19.1% 1Q05 1Q06 2001* 2002 2003 2004 2005 (*) Natura Empreendimentos figures.

  29. Our profitability EBITDA Margin (%) 24.7 24.4 22.3 22.2 22.1 20.1 16.6 -0.2pp 2001 2002 2003 2004 2005 1Q05 1Q06

  30. CAPEX CAPEX (R$ million) 180 112 83 26 16 +62.8% 1Q06 2004 2005 1Q05 2006E Itau First Annual Brazil Conference

  31. Capacity (million of units) manufacturing separation 2005 290 320 2006E 370 345 CAPEX breakdown 2005 2006E R$ Million Manufacturing and Logistics 69 90 Facilities 3 42 IT 20 33 Vehicles 9 11 Others 11 4 Total 112 180

  32. Cash flow consolidated figures R$ million 2005 397 Net income for the period (+) Depreciation and amortization 44 (+) Other non-cash expenses 42 482 (=) Gross cash flow 35 (-) Working capital 112 (-) CAPEX (=) Free cash flow 336 Dividends + Interest on capital 314 95 % of free cash flow

  33. Dividends Total Dividends and Interest on Capital, net (R$ million) 314 216 Payout (%) 2004 2005 Net income 72 81 Free cash generation 107 95 +48.0% 2005 2004

  34. www.natura.net/investor This presentation contains forward-looking statements.  Such statements are not statements of historical fact, and reflect the beliefs and expectations of the Natura'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.

  35. Glossary Commercial cycles – 3 week period of sales where new products, campaigns and promotions are developed. Consultants – number of sales representatives who have placed at least one order in the last 4 commercial cycles. Active Consultans - number of sales representatives who have placed at least one order in the last commercial cycle. ABEVD – Brazilian direct sales association Sipatesp/Abhipec – Brazilian syndicate of CF&T companies IBGE – Official Brazilian statistics institute IPCA – Official retail price index

More Related