1

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company overview

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our vision

Through our business practices, the quality of our

products and the relationships we establish, we seek to

make Natura a brand ultimately recognized worldwide

and identified with a community of people who are

committed to constituting a better world, through a

better relationship with themselves, with the others, with

nature and as a whole.

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our principles

to create and sell products and and services that promote

is the harmonious, pleasant relationship with oneself and one´s body

is the concept of rewarding, empathetic relationships with the others, with nature and as a whole

well-being

being-well

well-being/being-well

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natura’sprofile

Products

Market Share

Operations

Sales Channel

Creams, lotions, perfumes and fragrances, make-up and e personal care products

510 different items

In 20031: — 12% of the total Brazilian CF&T sector and 17% within the

categories it operates— more than 40% of cosmetic sales via direct sales in Brazil

Largest cosmetics R&D center in Brazil

State-of-the-Art facility in Cajamar

142 million units sold in 2003 (1S04: 84.3 million)

Direct sales, through 367,000 consultants reaching over 5,000 municipalities in Brazil

Around 22,000l consultants in Latin America

Markets 97% of sales in Brazil and 3% in Latin America

With approximately 3,000 employees, net revenues of R$1.3 billion

and EBITDA of R$296 million in 2003.

Note: 1. Based on Sipatesp (“São Paulo State Cosmetics Industry Association”)

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business strategy

Natura’s business strategy is based on six main aspects:

Growth in the Brazilian Market

Brand strength as business driver

Brazil is the main expanding vector

Direct Sales growth

Independent sales channel

Close relationship with independent sale representatives

Professional training and relationship programs

Loyal sales channel

Ongoing Innovation

Focused on products and concepts that confirm the values of the brand

Sustainable use of the Brazilian biodiversity

International Operations

Excellent growth opportunities in Latin America

Testing the Brazilian Biodiversity concept in Europe

Focus on management efficiency

Improvement of existing infrastructure

Managing excellence

Brand Recognition Products, sales channel, marketing and business

presence

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6

sales channel, innovation & brand

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Solid market positioning and strong brand recognition

Market Positioning Brand Strength1

Source: TSB&BNote:1 Survey requested by Natura in 2003, conducted with 2,200 people

across different social classes in 6 large Brazilian cities

Transparency

SocialResponsibility

Preference for Brand

Recommends

Credibility

Innovation

Quality

Criteria

Mass Consumption

Premium

Market Reach

Johnson &Johnson

Unilever P&G

L’Oréal Nivea Avon

O Boticário

Clinique

Lancôme

AvonO

Boticário Nivea

35%

29%

48%

43%

13%

11%

51%

54%

45%

37%

45%

54%

47%

61%

18%

12%

23%

63%

59%

70%

17%24% 3%41%

47%43% 18%60%

brand and market positioning in Brazil

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8

ongoing innovationInvestments in innovation are important to renew our product portfolio. The return on such investments is made clear by the share of new products in the Company’s total revenue.

Investments in Innovation (R$ MM)Number of launchings and Natura’s Innovation Index*

165

4491

117

2001 2002 2003 1H03 1H04

17.119.6

35.5

28.827.2

2.6%

3.0%2.9%3.3%

2001 2002 2003 1H03 1H04

2.7%

64

% Net Revenue Research and DevelopmentInvestments

Number of Launchings

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9

our product lines

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• Around 510 different items, including cosmetics, fragrances, hygiene and health products

• Main product lines– Natura Ekos– Mamãe & Bebê– Make-up– Chronos– Fragrances

products

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– draw from the integration of Brazilian’s nature to each Brazilian human being’s own nature

– use of active ingredients obtained from Brazil’s biodiversity– 61 items (bath, moisturizers and fragrances - keeping with

the concept of sustainability)

natura ekos

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mamãe & bebê

– Designed to meet the special needs of pregnant women and their babies

– 17 items

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natura chronos

– Skin treatment options for the face designed for women over 30– affirms the beauty of women at every stage of their lives– Aligns skin treatment technology with the rejection of

stereotypes about beauty– 24 items

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perfume doBrasil

Unique fragrances combining the wealth of the Brazilian forest and the tradition of its communities

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naturachannel

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• 389,000 independent sales representatives*• 680 sales promoter• 31 sales manager• 6 regional managers

• Growth opportunities

• Being part of the community

• Search for success

relationship with our independent

sales representatives

* Available independent sales representatives in Brazil and Latin America, in June/04.

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who is who?

CommercialDirector

Regional Manager

Regional Manager

Sales Manager

Sales Manager

SalesPromoter

Sales Promoter

Independent Sales

Independent Sales

Employees

Independent Sales Representatives

6 regional managers

31 sales managers

680 sales promoter

367,000independentsales rep.

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sales channel in Brazil

size & productivity growth

The brand equity combined to the relationship kept with Natura Consultants develop the sales channel, both in size and productivity.

Growth in the Number of Natura Available Consultants in Brazil(thousand)

Productivity Growth (R$ thousand per active consultant)

CAGR 01-03 11%

+16% CAGR 01-03 10%

+10,1%287307

355

316

367

2001 2002 2003 1H03 1H04

8.6 9.0

10.4

4.85.3

2001 2002 2003 1H03 1H04

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social responsibility

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“For Natura, Corporate Responsibility is a

management skill based on an ethical and

transparent relationship towards all parties

involved in the business as a way to create

solutions for building a sustainable world. It

believes the development of this skill is part of

a continuous process, which involves the whole

company, as well as, the society.”

Extract from the text

Corporate Responsibility

Strategic Options

our belief

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human resources

Natura seeks to create ideal conditions to attract and retain creative and talented employees, standing among the best companies to work for in Brazil

Employees Profile (2003) Organizational Climate 1

1st

Source: HayGroup, 2003Note:1 Independent research requested by Natura

5870

76

57

2001 2002 2003 Market in 2003

Men38%

Women62%

Top 100 Companies to Work Forin BrazilExame Magazine - 2000 and 2002

Best Company for Women toWork in BrazilExame Magazine - 2003

Top 10 Companies to Work Forin BrazilExame Magazine - 2003

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Some examples:

• Development of relationships with communities

that supply Brazilian biodiversity assets

Encouragement to local sustainable development

• Quality when communicating with consumers

Positioning against beauty stereotypes

• “Crer para Ver” Program

Mobilization of Consultants

our experience

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Brazilian biodiversity assets:suppliers chain

nº Area Assets

1 Médio Juruá - AMAndiroba Murumuru

2 Iratapuru - AP

Castanha Copaíba

Breu Branco

3 Entorno de Belém - PA (3) Priprioca

4 RECA - RO Cupuaçu

5 Ilhéus - BAGuaranáCacau

6 Palmeira do Piauí - PI Buriti

7 Ervateira Putinguense - RS Mate

8 Chamel - PR Camomila

9 Fazenda Alpina - SP Pitanga

10 Flora do Brasil - MG Maracujá

11 Mil Madeireiras - AM Louro Rosa

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1 11

2

3

6

5

10

9

8

7

Brazilian ecosystem

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24

Iratapuru - State

of Amapá

Certified by the

Forest Stewardship

Council for

cropping Brazil

Nut, after

performing a

three-year jointly

job with local

communities.

our experience

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our experience

Boa Vista: 26 families

Formalization of the community association

Training in organic culture

Campo Limpo: 16 families

Culture diversification

Use of income provided by “priprioca” for remodeling houses

Cotijuba: 8 families

Formalization of the community association (“Movimento de Mulheres” – Women Motion)

Income resulting from images used to purchase the Motion headquarters

Entorno de Belém – State of Pará

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26

High standard communication process

ourexperience

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27

Natura Consultants voluntarily sell products whose

proceeds are allocated to projects aiming to improve the

public education (in an association with Abrinq Foundation)

Results since its implementation, in 1995:

• 147 projects supported

• 3,600 public schools in 21 states involved

• 900 thousand children participating

• R$ 15 million raised

• 2004: Launching of the campaign “Crer para Ver EJA”

“Crer para Ver” Program

ourexperience

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social responsibility

The more incorporated actions are to business strategy the more relevant they get

Greater integration with related parties

Positive impact on the competitive environment

Broader condition for business growth

financial performance overview

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consistentgrowth

Consistent revenue growth, as a result of a solid market positioning, brand strength and optimized distribution system

Gross Revenues (R$ MM, nominal)

Note:1 Data refers to Natura Empreendimentos

429587

688

1,0161,168

1,411

833806

1,910

1995 1996 1997 1998 1999 2000 2001 2002 2003

Nominal CAGR 95-03: 21%

Real CAGR 95-03: 12%

1 1

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31

110116

142

65

83

2001 2002 2003 1H03 1H04

813

993

1,329

562

758

2001 2002 2003 1H03 1H04

operational performance

Sales volume(million units)

Net revenues(R$ MM, nominal)

CAGR 01-03: 14%

CAGR 01-03: 28%

1

+35%+28%

Note: 1. Pro forma

Sales volume has exhibited strong growth, driving net revenues

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37% 34%

31%30%

14%13%

36% 35% 34%

33% 32% 30%

16% 15% 14%

2001 2002 2003 1H03 1H04

COGS Sales ExpensesGeneral and Administrative Expenses

cost and expenses

Costs and Expenses Breakdown as a % of Revenues

85% 82% 79% 77%82%

Note: 1. Pro forma

1

The new plant has led to a significant dilution of fixed costs,

enhanced by an efficient expense control by management

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33

184136

199

296

110

2001 2002 2003 1H03 1H04

EBITDA

1

CAGR 01-

03: 4

8%

+67%

EBITDA(R$MM, nominal)

EBITDA Margins(%)

24%

17%

20%22%

20%

2001 2002 2003 1H03 1H04

1

Note: 1. Pro forma

Increasing EBITDA and EBITDA margins due to the consolidation

of market position and significant productivity gains

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indebtedness

After BNDESPAR converted debentures amounting to R$ 34.4 million and cash generation in the period, Natura ended the semester with net cash of R$ 84.6 million.

Net Debt /(Cash) Evolution (R$ MM)Indebtedness Breakdown

R$104 MM

2.8-year average maturity

1.8-year average maturity

(85)

22

(19)

119

205

2001 2002

2003

1Q04

2Q04

BNDESFinep

IFC

65%

35%

international operations

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36

LATAM

• 3,583 independent sales representative

• 7,001 independent sales representative

Replication of the commercial model used in Brazil

Peru

Chile

• 11,459 independent sales representative

Argentina

Bolivia

Commercial presence

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37

11.99.4

15.8

6.3

9.9

-7.7

-3.4 -2.8 -1.4 -1.5

2001 2002 2003 1H03 1H04

Gross Revenues Operating Income

internationalpresence

Natura has been achieving strong growth in Latin America, a market with total size of around US$10.7 billion in 2002

Sales Volume - Argentina, Chile and Peru (million of units)

Gross Revenue vs. Operating Income(US$MM)

Replicable business model in other Latin American countries

CAGR 01-0

3: 48%

+62%

CAGR 01-03: 15%

+57%

1,060

1,445

2,318

932

1,514

2001 2002 2003 1H03 1H04

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ekos internationalproject

Main goal is to test the Brazilian biodiversity concept and brand expansion abroad

The natural products market has a promising growth profile

Ekos InternationalPersonal Care, Natural Market Value (US$ billion)

Initial focus on Ekos product line— Brazilian biodiversity

Opening of the first store in Paris expected by early 2005

Expected investments of US$16 million in 3 years

Source: Datamonitor, “Natural Beauty Revolution”

CAGR 01-06E - Europe: 1

7%

CAGR 01-06E - Global: 2

0%

1.53.4

2.9

7.5

4.4

10.9

2001 2006E

Europe Others

manufacturing & logistics

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40

theorder cycle

TELEMARKETING

PICKING

PRODUCT PROCESSBILLINGSHIPPING

DELIVERY TO SALES REPRESENTATIVE

Full capacity = 42,000 boxes/day

Municipalities covered = more than 5,000

~35%

~65%

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cajamarfacility

Vertical Automatic Warehouse

Picking

Factory

Offices

Training rooms

Club

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logistics

• More than 5,000 municipalities covered

• 7 shipping companies representing 87% of the deliveries

• 20,000 to 30,000 orders per day

• 98% of orders are shipped within 24 hours

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suppliers

approximately 95% of our expenses for raw materials are from Brazilian suppliers and only 5% are imported

Raw materials% of total

2003Number of suppliers

Plastic packaging 24% 29

Fragrances 17% 8

Glass packaging 12% 9

Spray tops 11% 7

Packaging labels and boxes 8% 13

Others 28%

Total 100%

128

194

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CAPEX

Capital expenditures in fixed assets reached R$ 22.7 million in the first half of 2004. Most of it was concentrated on the construction of the new Vertical Storehouse.

CAPEX - R$ MM 2004 Estimated CAPEX

38.8

25.2 23.9 22.7

2001* 2002 2003 1H04

Maintenance

Expansion

Process Improvements 14%

65%

21%

* Natura Empreendimentos in 2001

R$ 75 MM

15%

61%

24%

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45

Capacity ( million of units)

Current 170 140

Early 2005 200 300

Mid 2005 220 300

expansion of capacity production

150

150

290

Manufacturing PickingStorage

• By mid 2005, we estimate an investment of R$300 million (at current prices) in order to reach 450 million units in three stages of the process

• 2003 : production of 136 million of units

Capacity Utilization (million of units)

Manufacturing Storage Picking

2003 80% 101% 95%

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financial summary

EBITDA margins of 24.3% in 1H04

Net indebtedness close to zero (post-dividends)

Low Capex - state-of-the-art facility allows 200% growth

Strong dividend distribution policy

- by-laws: 30% pay-out- 45% is the minimum pay-out approved by the Board

corporate governance

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corporategovernance

Commitment to the highest corporate governance standards, reaffirmed with the Novo Mercado listing

Beliefs andValues

ExternalAuditors

1989

1991 1999

Audit andRisk

Management Committee

2001

Management Reports

HumanResources Committee

2003

“Best Annual Report

Issued by a Private

Company” (ABRASCA)1

20041998

Board ofDirectors

Novo Mercado Listing

100% tag along rights

One class of shares with voting rights

Note: 1. Brazilian Listed Companies Association

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99.99%

operatingcompanies structure

NATURA COSMÉTICOS S/A

NaturaInovação e

Tecnologia deProdutos Ltda.

Indústria eComércio deCosméticosNatura Ltda.

NaturaCosméticos

Soc. AnônimaPeru

NaturaCosméticos

Soc. AnônimaArgentina

NaturaCosméticos

Soc. AnônimaChile

NaturaLogística e

Serviços Ltda.

99.99%

99.76% 99.93% 99.99% 99.99%

Shareholders

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50

shareholder

structure

Shareholder Number of shares Percentage

Controllers 62,637,886 73.9%

Float 22,112,876 26.1%

Total shares* 84,750,762 100%

* Not considering 687,849 treasury shares.

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dividend policy

Dividend Policy

Minimum dividend pay-out : 45% of annual net income

Frequency: semi-annual

Interest on Capital

Maximize tax efficient use of interest on capital

In 1H04, Natura distributed the amount of R$ 86.8 million in dividends and interest on capital (70% pay-out)

Strong free cash generation allows for an aggressive dividend policy

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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 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.