On May 22, 2019, Avon Products, Inc. (the “Company”) entered into the Agreement and Plan of
Mergers (the “Merger Agreement”) among the Company, Natura Cosméticos S.A., a Brazilian corporation (sociedade anônima) (“Parent”), Natura &Co Holding S.A., a Brazilian corporation (sociedade anônima) (“HoldCo”), Nectarine Merger Sub I, Inc., a Delaware corporation and a wholly owned direct subsidiary of HoldCo (“Merger Sub I”), and Nectarine Merger Sub II, Inc., a Delaware corporation and a wholly owned direct subsidiary of Merger Sub I (“Merger Sub II”), as amended by Amendment Number One, dated as of October 3, 2019, by and among the Company, Parent, HoldCo, Merger Sub I and Merger Sub II, and Amendment Number Two, dated as of November 5, 2019, by and
among the Company, Parent, HoldCo, Merger Sub I and Merger Sub II. Pursuant to the terms of the Merger Agreement, (i) HoldCo will, after the completion of certain restructuring steps, hold all issued and outstanding shares of Parent, (ii) Merger Sub
II will merge with and into the Company, with the Company surviving the merger and (iii) Merger Sub I will merge with and into HoldCo, with HoldCo surviving the merger and as a result of which each of the Company and Parent will become a wholly owned
direct subsidiary of HoldCo (collectively, the “Transactions”).
On November 6, 2019, the Company and Parent received approval without restrictions from the Administrative Council for Economic Defense – CADE in Brazil of the Transactions.
The decision will be published on or about November 7, 2019, in the Federal Official Gazette of Brazil (Diário Oficial da União). The decision will not be final
until it is published in the Federal Official Gazette of Brazil and the 15-day standstill period commencing upon such publication has expired under applicable law.
As previously disclosed, closing of the Transactions is subject to various conditions, including the receipt of certain regulatory approvals specified in the Merger
Agreement.
Cautionary Statements for Purposes of the “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
Statements in this communication that are not historical facts or information may be forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Among other things, these forward looking statements may include statements regarding the proposed combination of the Company (“we” or “us”) and HoldCo (together with Parent, “Natura &Co”); our beliefs relating to value creation as a
result of a potential combination with Natura &Co; the expected timetable for completing the transaction; benefits and synergies of the transaction; future opportunities for the combined company; and any other statements regarding the Company’s and
Natura &Co’s future beliefs, expectations, plans, intentions, financial condition or performance. In some cases, words such as “estimate,” “project,” “forecast,” “plan,” “believe,” “may,” “expect,” “anticipate,” “intend,” “planned,” “potential,”
“can,” “expectation,” “could,” “will,” “would” and similar expressions, or the negative of those expressions, may identify forward looking statements. They include, among other things, statements regarding our anticipated or expected results, future
financial performance, various strategies and initiatives (including our transformation plan, Open Up Avon, stabilization strategies, cost savings initiatives, restructuring and other initiatives and related actions), costs and cost savings,
competitive advantages, impairments, the impact of foreign currency, including devaluations, and other laws and regulations, government investigations, results of litigation, contingencies, taxes and tax rates, potential alliances or divestitures,
liquidity, cash flow, uses of cash and financing, hedging and risk management strategies, pension, postretirement and incentive compensation plans, supply chain and the legal status of the representatives. Such forward-looking statements are based on
management’s reasonable current assumptions, expectations, plans and forecasts regarding our current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks, uncertainties and other
factors, which may cause the actual results, levels of activity, performance or achievement of the Company to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that
actual results will not differ materially from management’s expectations. Therefore, you should not rely on any of these forward-looking statements as predictors of future events. Important factors that could cause our actual results and financial
condition to differ materially from those indicated in the forward-looking statements include, among others, our ability to improve our financial and operational performance and execute fully our global business strategy, the effect of economic
factors, our ability to improve working capital, our ability to reverse declines in active representatives, general economic and business conditions in our markets, our ability to attract and retain key personnel, competitive uncertainties in our
markets, any changes to our credit ratings and the impact of such changes on our financing costs, rates, terms, debt service obligations, access to lending sources and working capital needs, the risk of an adverse outcome in any material pending and
future litigation and those disclosed as risks in other reports filed by us with the Securities and Exchange Commission (“SEC”), including those described in Item 1A of our
most recently filed Annual Report on Form 10-K and subsequent reports on Forms 10-Q and 8-K and those discussed in the definitive proxy statement filed by the Company on October 4, 2019 and any amendments thereto. Other risks and uncertainties include
the timing and likelihood of completion of the proposed combination of the Company and Natura &Co, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the proposed transactions that could
reduce anticipated benefits or cause the parties to abandon the transactions; the possibility that the Company’s shareholders may not approve the proposed transactions; the possibility that Natura &Co’s shareholders may not approve the proposed
transactions; the possibility that the expected synergies and value creation from the proposed transactions will not be realized or will not be realized within the expected time period; the risk that the businesses of the Company and Natura &Co
will not be integrated successfully; disruption from the proposed transactions making it more difficult to maintain business and operational relationships; the risk that unexpected costs will be incurred; the possibility that the proposed transactions
do not close, including due to the failure to satisfy the closing conditions; the possibility that the intended accounting and tax treatments of the proposed transactions are not achieved; the effect of the announcement, pendency or consummation of the
proposed transactions on customers, employees, representatives, suppliers and partners and operating results; as well as more specific risks and uncertainties. We caution readers that any such statements are based on currently available operational,
financial and competitive information, and they should not place undue reliance on these forward-looking statements, which reflect management’s opinion only as of the date on which they were made. Except as required by law, we disclaim any obligation
to review or update these forward-looking statements to reflect events or circumstances as they occur.
Participants in the Solicitation
Natura &Co, the Company, their respective directors and certain of their respective
executive officers and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information about Natura &Co’s directors and executive officers are set forth in the definitive proxy
statement filed by the Company on October 4, 2019 and any amendments thereto, and information about the Company directors and executive officers is set forth in its definitive proxy statement filed with the SEC on April 2, 2019, which also may be
obtained free of charge from the investor relations page of the Company’s website www.Avonworldwide.com. To the extent holdings of Company securities have changed since the amounts contained in the proxy statement for the Company’s 2019 Annual Meeting of Shareholders, such changes have been or will be reflected on
Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of participants in the solicitation of proxies in connection with the proposed transaction is included in the definitive proxy statement
filed by the Company on October 4, 2019 and any amendments thereto and may be included in other relevant materials Natura &Co and the Company file with the SEC.
Additional Information and Where to Find It
The proposed transaction involving Natura &Co and the Company will be submitted to the
Company’s shareholders and Natura &Co’s shareholders for their consideration. In connection with the proposed transaction, HoldCo has filed with the SEC on September 24, 2019 a registration statement on Form F-4 (Reg. No. 333-233910) that
includes a proxy statement for the Company’s shareholders. The registration statement was declared effective by the SEC on September 27, 2019. The definitive proxy statement was filed on October 4, 2019 and the Company mailed the definitive proxy
statement to its shareholders on or about October 8, 2019. The Company and Natura &Co may file other documents regarding the proposed transaction with the SEC. This communication is not intended to be, and is not, a substitute for such filings
or for any other document that Natura &Co or the Company may file with the SEC in connection with the proposed transaction. SECURITY HOLDERS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE REGISTRATION STATEMENT ON
FORM F-4 AND THE DEFINITIVE PROXY STATEMENT AND ANY AMENDMENTS THERETO AND ANY OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. The
registration statement, the definitive proxy statement and any amendments thereto and other relevant materials and any other documents filed or furnished by Natura &Co or the Company with the SEC may be obtained free of charge at the SEC’s web
site at www.sec.gov. In addition, security holders will be able to
obtain free copies of the registration statement, the definitive proxy statement and any amendments thereto from Natura &Co by going to www.NaturaeCo.com and from the Company by going to its investor relations page on its corporate web site at www.Avonworldwide.com.
No Offer or Solicitation
This communication is neither an offer to buy, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote or
approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall
be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
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