11

22

Please see our form 10K of February 20, 2009, filed with the SEC, for our cautionary statement

regarding forward-looking comments made in today’s remarks.

Copies of this presentation are available for download in PDF format from avoncompany.com.

The presentation will be archived for 14 days at that site.

3

Avon U.K. Investor Meeting

March 26, 2009

44

Anna Segatti

General Manager, UK and Republic of Ireland

55

AGENDA

• Introduction to U.K. Beauty Market

• Avon U.K. Overview

• The Avon Representative Experience

6

The U.K. Beauty Market

• Population: 61 million• Female population 15-64: 21 million• Per capita CFT spend: £116 in 2008• 5th largest CFT market

77

Ranking of U.K. Market2007 Size of Market (US$B)

Source: Euromonitor

0

10

20

30

40

50

U.S. Japan Brazil France UK

88

Direct Selling Share of U.K. CFT Market

Source: Euromonitor

L’OrealProcter&Gamble

UnileverEstee Lauder

Alliance BootsBeiersdorf

AVONAmway

Virgin Vie

InternetHome shopping

2007 Share of Market

Direct Selling – 5%Retail – 88%

Other – 7%

CAGR 02-07: 4% CAGR 02-07: 4%

CAGR 02-07: 19%

9

Avon U.K.

• Started operations in 1959• Fifth largest Avon Market• Largest market of WEMEA

10

Avon U.K. Is…

• A trusted, relevant, female-friendly brand• Providing an earnings opportunity to more and more

women • Offering value-for-money products to smart shoppers

• A model of success in a developed market• Leveraging core strengths to aggressively follow

playbook in turbulent economic times• A regional centre of excellence, successfully executing

Global turnaround initiatives

1111

CFT 68%

Jewelry 8%

Home 9%

Fashion 15%

Avon U.K. – A Beauty Market

Skin Care 20%

Fragrance 21%

Others 9%

Personal Care 15%

Make Up 35%

12

Regional Centre of Excellence

• Local presence supported by matrix structure • Home to European Brand Management and Supply Chain

• Lead market for Global initiatives• Product Line Simplification• Open To Buy

1313

Avon U.K. – Commercial Structure

• 3-week campaign cycle • 18 campaigns per year

• 4 million brochures per campaign• Seen by two out of three UK

women

14

Supply Chain Structure• CFT mostly sourced from Europe (Poland,

Germany)

• Single distribution center (Corby) • 10,000-15,000 Representative orders/day

• 400,000-1.1million pieces /day

• Home delivery to 100% Representatives

• 99% on-time delivery to Representatives

• 78% Representatives order through internet

• Direct customer service home delivery (3%)

• Piece fill rate superior to retail competitors

15

A Trusted, Relevant, Female-friendly Brand

0

20

40

60

80

100

BodyShop

Dove Avon Nivea Olay BootsNo.7

MaxFactor

Rimmel L'Oreal

Source: Ipsos – Avon Tracking Study Dec 2008

Brand Recognition%

16

A Trusted, Relevant, Female-friendly BrandPenetration and Customer Reach

83%Ever Purchased87%Ever Seen Brochure64%Representative Access

Source: Ipsos – Avon Tracking Study Dec 2008

17

Advertising Has Propelled Brand Awareness

• Increased advertising fivefold since 2006• Representative earnings opportunity• Product and brand awareness

• Supported through aggressive PR campaign

18

Advertising Cut ThroughMarketing – 28th May Marketing – 9th June

19

C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 C13 C14 C15 C16 C17 C18

Advertising Awareness 2008Avon Recall Ranking vs. Key Competitors

Source: Ipsos Campaignly Tracker

6th-

3rd-

2nd-

4th-

5th-

1st-

20

Brand Kudos Boosted by Leverage of Global Alliance Strategy

21

Local Extension of Alliance Strategy Further Promotes Brand

Experts Local celebritiesDesigner equity

22

A Trusted, Relevant, Female-friendly Brand

• Increased brochure space in 2009 to further promote female-friendly credentials

• Resonance: half of UK Representatives are either personally affected by breast cancer (58%) or domestic violence (46%), or know someone who is

• Avon UK launched the Avon Breast Cancer Crusade in 1992 – now active in over 50 markets

Supporting Women’s Causes: A Point of Difference for Representatives and Customers

23

Awareness of Avon’s Support of the Fight Against Breast Cancer is Highest

0

10

20

30

40

50

60

Avon Asda Boots Tesco Flora EsteeLauder

Source: Ipsos – Avon Tracking Study Dec 2008

24

19 concepts

A Model of Success in a Developed Market: Product Line Simplification (PLS)

53 conceptsFROM TO

25

A Model of Success in a Developed Market: PLS Success

+46%-4%913Eyecream

Nail enamel

Mascara

Lipgloss

Fragrance

Category

74

50

71

77

2007 SKUs

41

35

55

57

2008 SKUs

-33%

-15%

-16%

-20%

Decrease

+47%

+16%

+35%

+15%

Sales uplift

26

Open To Buy• Managing inventory by controlling purchases • Key benefits:

• Reduction in inventory: 4Q 2008 10% COG reduction• Maximize cash flow

• Example: Closed to buy – a percentage of the range is cancelled balancing risk of lost sales, total sales, margin and inventory targets

DeletedNew “Ellisia collection”

Replaced Sales

ExtendedExcess flow

convertible bra

2727

These Are Unprecedented Times

Consumer Contraction

Global Recession Credit Squeeze

Job Layoffs Currency Volatility

2828

We Have an Updated Playbook forThese Times

2929

We Have an Updated Playbook forThese Times

3030

Outrun consumer spending contraction and protect market share

NewCustomers

Active Representatives

GROW

+

31

Accelerating Focus on Recruiting: Advertising

• Updated Representative recruitment advertising running from mid-January 2009 – focus on extra earnings in tough times

32

Play recruitment ad –VIDEO30 secs

33

Accelerating Focus on Recruiting: PRWarmed Up Environment to Maximise Advertising Impact in 2008

34

Accelerating Focus on Recruiting: PR• Continued aggressive campaign to showcase success

stories and profile modern Avon• Over 60 pieces of positive media coverage creating over

300,000,000 opportunities to see or hear about the earnings opportunity in 2009

35

Accelerating Focus on Recruiting: PR

• High-profile local radio and TV coverage 2009 includes Sales Leaders such as Angie Winter

36

Play Look EastVIDEO

approx 2 mins

37

Accelerating Focus on Recruiting: Online• ‘Your Dream Job’ section renamed

‘Earn Extra money’ to leverage current economic climate

• Online materials to support Representations, such as downloadable flyer

• Articles on avon.uk.com to offer advice on building your business

• Internet advertising, such as Google and Facebook, with focus on part-time working and earning extra money to beat the recession

• 77.5% of all Representatives placed their order online C18 2008

38

Promoting the Avon Shopping Experience

39

Accelerating Focus on Smart Value: Emphasising Pricing

40

Accelerating Focus on Smart Value: Emphasising Pricing

41

Accelerating Focus on Smart Value: Creating Buzz and Freezing Prices

42

Accelerating Focus on Smart Value: PR

43

Accelerating Focus on Smart Value: Exciting Marketing Offers• Focus on high-unit movers

at exceptional prices: in brochure, online and in promotional flyers

• Key message: Avon is the answer to the recession

• Campaigns 4 and 5 ‘Recession Buster’ flyer: ‘Want to be Beautiful on a Budget?’

44

Accelerating Focus on Smart Value: Exciting Marketing Offers• Focus on high-unit movers

at exceptional prices: in brochure, online and in promotional flyers

• Key message: Avon is the answer to the recession

• Campaigns 4 and 5 ‘Recession Buster’ flyer: ‘Want to be Beautiful on a Budget?’

4545

Outrun consumer spending contraction and protect market share

NewCustomers

Active Representatives

GROW

+

46

Management Q&A

4747

The Representative Experience as Told By…

Sales Leader Yogeeta Mistry

Sales Leader Hannah Cooke

4848

Representative Q&A

49

Avon U.K. Is…

• A trusted, relevant, female-friendly brand• Providing an earnings opportunity to more and more

women • Offering value-for-money products to smart shoppers

• A model of success in a developed market• Leveraging core strengths to aggressively follow

playbook in turbulent economic times• A regional centre of excellence, successfully executing

Global turnaround initiatives

5050