NATURA COSMÉTICOS S.A.

Corporate Taxpayer ID (CNPJ/MF) 71.673.990/0001-77 Publicly Held Corporation

Company Registry (NIRE): 35.300.143.183

NOTICE TO THE MARKET

Natura Cosméticos S.A. ("Company") hereby announces that, in accordance to the best corporate governance practices, it will publish, on the date hereof, the call notices, with the respective management´s proposals, for the general meeting of debentures holders of the 5th issue of debenture of the Company to be held on August 13th, 2018, at 9:00am ("5th Issue GMD") and for the general meeting of debenture holders of the 6th issue of debenture of the Company to be held on August 13th, 2018, at 2:00pm ("6th Issue GMD" and, together with the 5th Issue DHGM, the "GMDs").

The GMDs shall be convened so that the relevant debenture holders can decide on the previous consent for the merger, into the Company, of its wholly owned subsidiary Natura Inovação e Tecnologia de Produtos Ltda., a limited liability company with principal place of business located in the City of Cajamar, State of São Paulo, at Via de Acesso Km 30,5, Prédio "A", Itaim Empresarial, CEP 07790-190, registered in the roll of Corporate Taxpayers (CNPJ/MF) under no. 60.883.329/0001-70, with its articles of association registered under NIRE no. 35.216.982.765 with the Commercial Registry of the State of São Paulo - JUCESP ("Natura Inovação e Tecnologia"), with the consequent dissolution of Natura Inovação e Tecnologia ("Merger"), in a way that such corporate transaction does not cause the early maturity of the obligations undertaken by the Company in connection with the debentures and the relevant indentures.

In addition to the previous consent of the debenture holders, the Merger is subject to (i) the previous consent of other creditors, which are usual in such type of transactions ("Creditors Consent"); (ii) approval of the Company´s shareholders in an Extraordinary Shareholders Meeting ("ESM"); and (iii) the Company´s approval in the capacity of Natura Inovação e Tecnologia´s sole partner.

If the approvals at the GMDs and the Creditors Consent are duly obtained, the Company shall disclose further details on the Merger and convene the ESM in due course.

São Paulo, July 2nd, 2018

NATURA COSMÉTICOS S.A.

JOSÉ ANTONIO DE ALMEIDA FILIPPO

Chief Financial and Investor Relations Officer

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Natura Cosméticos SA published this content on 02 July 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 July 2018 10:28:01 UTC