Sustainability at Grupo Boticário

“To be a leader in value

creation in the business of

beauty”

Vision

Brazil’s largest franchise network in retail sales (around R$ 6.6 billion/2012). The world’s largest perfumery and cosmetics franchise network considering the number of stores (3.550 in Brazil in 2012). Presence in 1.712 cities in Brazil. Creates more than 22,000 jobs in its stores chain. Presence in 9 countries.

Started-up in 2011.

More than 300 items of perfumery,

makeup, body and bath, accessories.

1st Brazilian cosmetics company to go to market with a multichannel strategy:

- Direct Sales (main channel)

- E-commerce integrated with social

networks

- Exclusives stores

Located in São Paulo (SP), Rio de Janeiro

(RJ), Belo Horizonte (MG), Fortaleza (CE),

Recife (PE), Curitiba (PR), Porto Alegre

(RS) and Salvador (BA).

Started-up in August 2012. For women who do not follow beauty rules. 10 franchising stores in São Paulo (SP) and e-commerce all over Brazil. More than 60 stores to be opened by the end of 2013. More than 500 items – focus in make up but also nail polish, perfumery, accessories and kits for presents.

This business unit offers products from internacional and national brands !The Beauty Box transforms the brazilian shopping experience in retail multibrand cosmetics. The brand alludes to drawers that keep the beauty secrets of women, and brings together in one place national and imported products. The stores concentrate more than 60 brands products in ten categories - fragrance, makeup, nails, face care, bath and body, hair, moms and babies, solar, and accessories, and even men's products. 6 stores in São Paulo: 3 in the capital and one in São José dos Campos, Campinas and Ribeirão Preto. E-commerce will be launched in the first half of 2013

More than 5.700 employees.

Head Office in São José dos Pinhais (PR)

Offices in Curitiba (PR) and São Paulo (SP).

Distribution Center in Registro (SP).

New factory and Distribution Center in Bahia (under construction).

Sustainability at

Grupo Boticário

Insertion of sustainability

observing social and environmental issues

together with economic and

financial aspects

Sustainability in business

and business with sustainability

Grupo Boticário Foundation for Nature

Protection

Risk Legal Basis

Social Inductions Situations and Trends

Return Efficiency Innovation Reputation

Values Beliefs

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Sustainability at Grupo Boticário

Sustainability at Grupo Boticário

Grupo Boticário Strategy

Sustainability Management

Inclusion of Sustainability in Corporate

Processes

Value Chain Engagement

!! O Boticário !! Eudora !! quem disse, berenice? !!The Beauty Box

Sustainability Management

Inclusion of Sustainability in Corporate

Processes

Value Chain Engagement

! O Boticário ! Eudora ! quem disse, berenice? !The Beauty Box

Inclusion of Sustainability in

Business Units

!! O Boticário and quem disse, berenice? Franchisees !! Suppliers !! Eudora’s Representatives !! Community

!! Supply Chain !! Research and Development !! Industrialization !! Human Resources

Executive Board

Board of Directors

Organization areas

Sustainability Governance

Strategy implementation and results monitoring

Definition of the sustainability strategy

and follow of its evolution

Sustainability Management

Packages / Raw Materials Sales channels Ecoefficiency

Expression

Strategic Pilars (2013 – 2024)

Packages / Raw Materials

!! In packages and raw materials subjects we act to fully implement the concepts of Life Cycle Analysis in our products, from design until post consumer, from strategy to operation.

Sales Channels

!! Our sales channels reflect our sustainability position. They show our beliefs and our practice, teach and engage our consumers in our purposes of building a better society to all people and also of the Group awareness about the planet’s challenges.

Pilars statements

Ecoefficiency

!! Our entire operation is continuously built to improve its efficiency, including the reduction of using non-renewable natural resources and the reduction of our impact in the environment.

Initiatives

Sales Channels

Packages & Raw Materials

Ecoeficiency

•! Development of sales representatives;

•! Stores (point of sales): building and communicating

•! Life Cycle of Products;

•! Packages Recycle Program

•! Product and Packages Development

•! Consumption reduction of water and energy;

•! Reduction of GHG emissions;

•! Reduction of waste

Initiatives

Community Suppliers Franchisees

•! Professional education in Industry;

•! Sectorial Guides and Workshops;

•! General Guide for Suppliers;

•! Audits;

•! Sustainability Workshops;

•! Sustainability Books;

•! International methodology GRI (Global Reporting Initiative)

•! Main communication tool of the sustainability strategy of Grupo Boticário: transparency on performance, dialogue with stakeholders and stimulus to the results integration

•! Main audience: Grupo Boticário employees, suppliers, clients and consumers, franchisees and consultants, Eudora and O Boticário resellers, the government and industry associations.

•! Available on www.grupoboticario.com.br/relatoriosustentabilidade www.grupoboticario.com.br/relatoriosustentabilidade

Accountability for sustainability performance

www.grupoboticario.com.br/relatoriosustentabilidadewww.grupoboticario.com.br/relatoriosustentabilidade

Thank you!