Changing Times

The winds of change that blew through our world in 2008 combined the forces of hurricanes, typhoons, and tsunamis, making it a year of turbulence, exposing previously disguised systemic weaknesses and causing us to question previously unquestioned truths.

As a signal that this can be a very constructive moment, we have witnessed the emergence of a new voice in the very country that was hit by the hurricane, crying out for change, denouncing alienation, and offering more humanist and universal visions and aspirations. This wind has aroused a great hope in the international community, which has shown a growing concern with climate change, social inequalities, and planetary challenges. In this summary, we can see the backdrop of what we have been experiencing in the world, especially last year.

We at Natura see the crisis as perhaps representing – through a turn toward sustainability - the beginning of a profound change in the process of civilization, a new cycle, a slow and inexorable reversal of the threats to the future of life on Earth.

This extraordinary year found Natura not only strengthened by our Beliefs and Values, but also reinvigorated by the results of the action plans and in-depth reorganization we put into place at the start of 2008. The financial results, the increase in the number of our consultants (sales representatives), and the strengthening of our brand are all clear evidence of this.

However, in this year of such significant results, we did not achieve the ideal level of services to our consultants and consumers. We are committed to doing everything necessary to see to it that the quality of our products and services continues to be the basis of Natura’s reputation.

Our operations, which are expanding in Brazil and Latin America with a low level of indebtedness, a growing cash flow capacity, a focus on the continuous improvement of our sales model, as well as the possibilities generated by the direct selling system, allow us to see in the turbulence more opportunities than threats. Without, obviously, failing to give the necessary attention and adopt the necessary measures to respond to a potentially more recessive climate.

Most importantly, we know we can work through these world events and moment in our own corporate history vigorously pursuing the broadest expression of our company's identity, of our ideals and dreams. May we be guided by the strength of our unity and by the conviction that, beginning with the microcosm represented by the individual person, we can change the world. It is in the heart and in the eye of each one of us that change is built.

We could not end this message without expressing our deep gratitude to all of you who have joined us in our efforts to continually build our company - employees, shareholders, consultants, suppliers, customers and everyone whose presence in the world contributes to making it a better place. May this moment herald the beginning of a more hopeful future for all.

Antonio Luiz da Cunha Seabra
Co-Chairman of the Board of Directors

Guilherme Peirão Leal
Co-Chairman of the Board of Directors

Pedro Luiz Barreiros Passos
Co-Chairman of the Board of Directors

Alessando Giuseppe Carlucci