Natura &Co to close acquisition of Avon, creating the world’s fourth-largest pure-play beauty group

January 3, 2020

Senior leadership team to be appointed to drive new chapter of growth

São Paulo, January 3, 2020 – Natura &Co (NTCO3 – B3) announces that it
expects to close today the acquisition of Avon Products, Inc. and appoint the new
senior leadership team to drive the company’s next phase of growth.

The landmark transaction creates the world’s fourth-largest pure-play beauty
company. This marks a major new step in building a purpose-driven group
committed to a different way of doing business. Natura &Co, which trades on the
B3 stock exchange in Sao Paulo, also expects to begin trading through ADRs on
the NYSE (NTCO) on January 6.

The combination of Avon, Natura, The Body Shop and Aesop significantly amplifies
the reach of a multi-channel, multi-brand group that will be an unparalleled leader
in the Direct-to-Consumer space, bringing beauty to over 200 million consumers
across the world anytime, anywhere, every day through multiple channels,
touchpoints and iconic brands.

Natura &Co will hold leading positions in relationship selling, on and offline,
through both Avon and Natura, with over 6.3 million Consultants and
Representatives. The group will also have a strong position in retail with more
than 3,000 stores and an expanded digital presence across all the companies.
Natura &Co will have combined annual gross revenues of over US$10 billion, more
than 40,000 associates, a broad and complementary product portfolio across key
categories and a global footprint in over 100 countries.

As a purpose-driven company, Natura &Co will have a stronger voice to advocate
for causes including female empowerment, fighting the climate crisis, cruelty-free
cosmetics and developing strong ties with local communities, all of which are part
of its belief in a better way of doing business through positive social, economic
and environmental impact.

Luiz Seabra, co-founder of Natura, declared: “Natura has just finished celebrating
its 50th anniversary, and there could be no better way to open this next chapter
in our history than to welcome Avon into our family. We are united by a shared
vision and a passion for beauty and relationships, and together, we will be an even
stronger force for good, striving to build a fairer and more beautiful world.”

Appointment of organizational structure and management team, subject
to applicable corporate approvals:

Roberto Marques, who became Executive Chairman of the Board of Directors of
Natura &Co in 2017, will also serve as Group Chief Executive Officer. Mr. Marques
joined Natura Board of Directors about four years ago. During this period, he
championed the global, multi-channel, multi-brand approach, leading the
acquisition of The Body Shop in 2017 and now the combination with Avon. He has
extensive global experience and a strong transformation track record in the
consumer goods industry, having held, prior to Natura &Co, various senior
leadership roles at Johnson & Johnson and Mondelez International for over 30

Mr. Marques will continue to head a diverse and experienced Group Operating
Committee (GOC), which includes the CEOs of each of the four businesses and
brands as well as key functional positions. The four business units have been
organized based on the Group’s strategic priorities at this stage:

  • Natura &Co Latin America, encompassing responsibility for the P&Ls of
    Natura, Avon, The Body Shop in the region and Aesop in Brazil. This role
    will also have responsibility for the innovation and stewardship globally of
    the Natura brand
  • Avon (excluding Latin America), responsible for the P&L of all the market
    clusters in Europe, Africa, Middle East and Asia. This role will also be
    responsible for the Avon brand innovation and stewardship globally.
    Additionally, in the future, it will have responsibility for the Natura brand’s
    international expansion outside of Latin America
  • The Body Shop
  • Aesop

Joao Paulo Ferreira is assuming the role of CEO Latin America of Natura &Co.
The new organization in Latin America will allow the group’s four brands to maximize their potential, capture significant synergies and accelerate growth across their footprint and multi-channel presence. Mr. Ferreira successfully led Natura’s revitalization of its direct selling model since becoming CEO in October 2016, energizing the new commercial model and digitalization. He had previously been Vice-President Operations and Logistics and Vice-President Commercial at Natura after a long career at Unilever.

Angela Cretu is appointed CEO of Avon, responsible for the business outside of Latin America and for the oversight of the Avon brand globally. A native of Romania, Ms. Cretu has over 20 years of experience at Avon in various senior executive roles, most recently as Group Vice President and General Manager, Central Europe, responsible for 18 countries. Before that she successfully led the Eastern Europe and Africa/Middle East clusters and Global roles. She has a passion for Avon, its employees, Representatives and customers. On top of her recognized management skills, international perspective and industry experience, she has been deeply involved in Avon’s drive for women’s economic empowerment, all of which will be major assets to take Avon and Natura forward.

David Boynton will remain CEO of The Body Shop, continuing driving the
transformation and brand revitalization which is underway and already yielding positive results. He was formerly CEO of Charles Tyrwhitt and CEO for Western Markets for L’Occitane.

Michael O’Keeffe, CEO of Aesop since 2003, also remains in his current position, driving the high growth of this unique and prestigious brand and, with the support
of the rest of the group, transforming it into a true triple bottom line business.

Roberto Marques, Executive Chairman of the Board of Directors and Group CEO of Natura &Co, commented: “Alongside the experienced, diverse and international senior management team we are announcing today, I am proud and privileged to lead Natura &Co’s next steps in its journey. Our aspiration is to build not just the best beauty company in the world, but the best beauty company FOR the world. With the addition of Avon, we have created a family of companies with unrivalled direct-to-consumer reach and a formidable platform for growth. I am looking forward to working together to drive further our triple bottom line approach and write the next chapter in our journey.”

Media enquiries Natura &Co:

Marcelo Behar, Corporate Affairs Officer Natura &Co

Investor Relations Natura &Co:

Viviane Behar de Castro, Investor Relations Director, Natura &Co

About Natura &Co

Natura &Co is a global, purpose-driven, multi-channel and multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. Natura &Co posted net revenues of R$ 13.4 billion in 2018. The four companies that form the group are committed to generating positive economic, social and environmental impact. For 130 years Avon has stood for women: providing innovative, quality beauty products which are primarily sold to women, through women. Founded in 1969, Natura is a Brazilian multinational in the cosmetics and personal care segment, leader in direct sales. Founded in 1976 in Brighton, England, by Anita Roddick, The Body Shop is a global beauty brand that seeks to make a positive difference in the world. The Australian beauty brand Aesop was established in 1987 with a quest to create a range of superlative products for skin, hair and the body.

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