NATURA COSMÉTICOS S.A.

CNPJ/MF nº 71.673.990/0001-77 Publicly held Company NIRE 35.300.143.183

NOTICE TO THE MARKET Natura restructures its business in France

We hereby inform to the shareholders and to the market that a Natura is restructuring its business model in France to ensure the sustainable growth of its brand in the country. The plan supports the company's internationalization strategy for developed markets, that focuses on 3 key channels: its own stores, e-commerce and beauty specialists. As such, the direct selling channel with its 1,100 consultants, will be wound up in France by December 31, 2016.

This decision affects the French Market only and is a result of the purchase habits of the local consumers. Unlike Latin America where sales through relationships account for approximately 30% of the CFT market, in France its participation is only 2%. In Brazil and in Latin America, Direct Selling is and will continue to be the main channel for Natura.

The focus on channels that are more relevant in the French Market will strengthen Natura's business in the country. The internationalization of the brand is a strategic objective for the next few years. Currently the international operations already represent 30% Natura's consolidated sales.

São Paulo, November 14, 2016.

NATURA COSMÉTICOS S.A. JOSÉ ROBERTO LETTIERE

Chief Financial and Investor Relations Officer

Natura Cosméticos SA published this content on 14 November 2016 and is solely responsible for the information contained herein.
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