RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2023

The following tables present the related party transactions with Natura &Co and its affiliates:


	Three Months Ended March 31,
	2023		2022
Statement of Operations Data
Revenue from affiliates of Natura &Co(2)(1)	$	13.7	$	3.7
Cost of sales from affiliates of Natura &Co(2)(1)	$	(13.4)	$	(4.2)
Gross profit from affiliates of Natura &Co(2)(1)	$	0.3	$	(0.5)



Interest expense on Loan from affiliates of Natura &Co(4)	$	(38.0)	$	(15.3)
Interest income on Loan to affiliates of Natura &Co(4)	$	1.6	$	0.7


	March 31, 2023		December 31, 2022
Balance Sheet Data
Trade Receivables due from affiliates of Natura &Co(1)	$	42.5	$	30.7
Derivative Receivables due from affiliates of Natura &Co(7)	$	8.2	$	9.5
Other receivables due from affiliates of Natura &Co(6)	$	37.9	$	32.7
Loans to affiliates of Natura &Co maturing within one year(6)	$	93.9	$	72.2
Loans to affiliates of Natura &Co maturing after one year(6)	$	50.3	$	54.8
Right-of-use asset from affiliates of Natura &Co(8)	$	6.0	$	6.0
Trade Payables due to affiliates of Natura &Co(6)	$	(36.9)	$	(33.7)
Derivative Payables due to affiliates of Natura &Co(7)	$	(8.9)	$	(12.9)
Other payables due to affiliates of Natura &Co(3)	$	(12.0)	$	(11.5)
Loans from affiliates of Natura &Co maturing within one year(4)	$	(599.4)	$	(537.2)
Loans from affiliates of Natura &Co maturing after one year(4)	$	(1,437.5)	$	(1,427.2)
Lease liability to affiliates of Natura &Co(8)	$	(6.0)	$	(6.0)
Investments in affiliates of Natura &Co(5)	$	0.1	$	0.1

(1) During the second quarter of 2020, the Company entered into manufacturing agreements with affiliates of Natura &Co Holding. The Company recorded revenue from related party of $13.7 and $3.5 associated with these agreements during the three months ended March 31, 2023 and 2022, respectively. The Company recorded gross profit (loss) from related party of $0.3 and $(0.7) associated with these agreements during the three months ended March 31, 2023 and 2022, respectively. Trade receivables due from affiliates of Natura &Co primarily relate to these manufacturing agreements.

(2) The Company is party to a license agreement with Avon Mexico, whereby Avon Mexico pays the Company a variable royalty. The Company recorded revenue and gross profit from related party of nil associated with these agreements during the three months ended March 31, 2023, respectively. The Company recorded revenue and gross profit of $0.2 and $0.2, respectively, from related parties associated with these agreements during the three months ended March 31, 2022, respectively.

(3) The amount payable to Natura &Co mainly relates to the vesting and settlement of various share-based compensation awards denominated in Natura &Co American Depository Receipts.

(4) Loans from affiliates of Natura &Co Holding at March 31, 2023 of $2,036.9 include $702.5 outstanding under a Promissory Note with Avon Beauty Limited with a maturity date of December 6, 2028, $405.0 outstanding under a Promissory Note with Avon Products, Inc. with a maturity date of May 17, 2029 and $330.0 outstanding under two Promissory Notes with Avon Cosmetics Limited with maturity dates of May 17, 2029 and June 28, 2029. In addition, loans from affiliates of Natura &Co Holding at March 31, 2023 of $599.4 include a number of intercompany loans between Avon Luxembourg and Avon Products, Inc. affiliates that, following the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding on July 1, 2021, were

redesignated as loans from affiliates of Natura & Co Holding. Loans from affiliates of Natura &Co Holding at December 31, 2022 of $1,964.4 include $692.2 outstanding under a Promissory Note with Avon Beauty Limited with a maturity date of December 6, 2028, $405.0 outstanding under a Promissory Note with Avon Products, Inc. with a maturity date of May 17, 2029 and $330.0 outstanding under two Promissory Notes with Avon Cosmetics Limited with maturity dates of May 17, 2029 and June 28, 2029. In addition, loans from affiliates of Natura &Co Holding at December 31, 2022 of $537.2 include a number of intercompany loans between Avon Luxembourg and Avon Products, Inc. affiliates that, following the sale of Avon Luxembourg to a subsidiary of Natura &Co Holding on July 1, 2021, were redesignated as loans from affiliates of Natura & Co Holding.

(5) During the second quarter of 2021, Avon Cosméticos LTDA., made an investment of R$0.5 in Natura &Co Pay Holding Financeira S.A., representing a 10% holding in the company. This is presented in other assets in our Consolidated Balance Sheets.

(6) On July 1, 2021, the Company sold Avon Luxembourg, including our Mexican business, to a subsidiary of Natura &Co Holding. As a result, transactions and balances between Avon International and Avon Luxembourg are no longer eliminated on consolidation and instead are treated as transactions and balances with Related Parties.

(7) During the first quarter of 2022, the Company entered into foreign exchange forward contracts with Natura &Co Luxembourg, a subsidiary of Natura &Co Holding, to manage a portion of its foreign currency exchange rate exposures. At March 31, 2023, we had outstanding related party foreign exchange forward contracts with notional amounts totaling approximately $523.4 for various currencies for up to 12 months, of which $185.7 were designated as cash flow hedges. In addition we had $8.2 of Accounts Receivable and $8.9 of Accounts Payable recorded in our Consolidated Balance Sheets associated with these transactions, all of which are expected to be reclassified into earnings within the next 12 months. At December 31, 2022, we had outstanding related party foreign exchange forward contracts with notional amounts totaling approximately $546.3 for various currencies for up to 12 months, of which $289.7 were designated as cash flow hedges. In addition we had $9.5 of Accounts Receivable and $12.9 of Accounts Payable recorded in our Consolidated Balance Sheets associated with these transactions, all of which are expected to be reclassified into earnings within the next 12 months.

(8) On December 20, 2022, the Company entered into a lease arrangement with a subsidiary of Natura &Co Holding. At March 31, 2023, we had a right-of-use asset and lease liability of $6.0. At December 31, 2022, we had a right-of-use asset and lease liability of $6.0.