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Avon Turkey Investor MeetingMarch 8, 2007

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Please see our 10-K for the year ended December 31, 2006, for our cautionary statement

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

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Agenda

• Welcome

• Overview of Avon Turkey

• The Representative Experience

• Luncheon with Representatives

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Avon Turkey Overview

Ron GriffithsGeneral Manager

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Turkey – A Growing Beauty Market

• Brief overview of market– Population: 72 million– Female population 15-64:

24 million– 3-year 10% CAGR CFT market growth

• Per capita CFT spend was $14 in 2006

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Strengths of Turkish Market• Largest economy of the region

• Only democratic Muslim nation

• Young, well educated population

• Large variety of industrial sectors

• Developed energy, communications, transportation infrastructure

• Dynamic entrepreneurial spirit

• Elastic labor market

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Risks of Turkish Market• Political instability and populism

– Unproductive central administration– Ineffective public sector enterprises– Slow legal system– Presidential elections: May, 2007

• Lack of confidence in Turkish Lira– Chronic high inflation– Low foreign direct investment– High account deficit and public debt– Inadequate market regulation / Unregistered economy

• Vulnerable to external shocks– Unexpected external shocks / global fund movements– Changes in internal political environment

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Avon Turkey• Entered through joint

venture in 1993

• Bought out JV interest in May, 2003

• Rationale for JV buy out:– Prospect for growth in CFT– Prospect for growth in

Direct Selling – Strategic gateway to Middle

East and Central Asia

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Avon Turkey – Key Messages• The beauty market leader • Avon: a powerful beauty brand• The premier direct selling company • Dedicated to building on Representative Value

Proposition• Positions Avon to launch into Middle East &

Central Asia

A Growth Engine in Avon’s Portfolio

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Avon Turkey Overview

AVON TURKEY

WEMEA

SUPPLY CHAIN

IT

MARKETING

SALES LEADERSHIP

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Supply ChainSupply Chain

• Products are sourced mainly from Avon’s Poland and Germany facilities

• 4 week campaign cycle; 13 campaigns per year• 100% home delivery to Representatives • Local delivery network capable of delivering

more than 86% of Representatives within 24 hours

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Total Revenue ($MM)

Avon Turkey

2003 2006

55%CAGR

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Healthy Representative Base

2006May 2003 Added Since 2003

152%

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Healthy Mix of BusinessHealthy Mix of Business

Fragrance38%

Skin Care23%

Colour21%

Personal Care18%

CFT Category Shares

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Solid Growth in All CategoriesSolid Growth in All Categories

0%

20%

40%

60%

Colour Skin Care Fragrance PersonalCare

TOTAL

2006 vs 2005 in LC

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Solid Growth in All CategoriesSolid Growth in All Categories

0%

20%

40%

60%

Make Up Skin Care Fragrance PersonalCare

TOTAL

2006 vs 2005 in LC

#1Market ShareRank

#1 #1

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219

175

Supported by a Strong Beauty Image…

TurkeyAvonAverage

Beauty Image Index

Source: Avon Global Consumer Tracking Study 2005

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That is Highest in Turkish MarketBeauty Image Index

Source: Avon Global Consumer Tracking Study 2005

219

165141

129106

94 89 83

Avon Max Factor Nivea Dove L'Oreal Arko Maybelline Oriflame

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Advertising

• First time advertising in 2006

• In beauty market– share of voice in Colour #1– share of voice in Skin Care #2– share of voice in all categories #4

• Continued higher level advertising investment in 2007

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The Representative Experience

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Avon Turkey as a Direct Seller

• Premier direct seller

• Balanced topline growth from both number of Representatives and productivity of Representatives

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RepresentativeEarnings Representative

EffortRepresentative

Key Actions• Compelling Consumer

Proposition• Sales Leadership• Field Training• Increased Advertising

“Tip the Scale” for RVP

• Webenablement

• Enhanced service levels

• Flexible payment options

Turkey RVP Improvements

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RVP: Web Enablement• 96% on-line ordering

– despite low Internet penetration (14%)

• Continuously improving functionality, ease of use and flexibility

– Differentiated functionalities to Zone Managers, Sales Leaders, and Representatives

– Effective and up-to-date communications– Personalized, Representative-specific alerts and

prompts– Value-added “Intelligent” ordering

• Removal of the mail-plan: Internet orders are shipped within 24 hours

• For public, offer PR site enhanced by the local web shopping with up-selling, cross selling functionalities

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RVP: Enhanced Service Capability

• One central branch on the Anatolian side of Istanbul

• No mail plan; all Representatives send their orders any time during the campaign

• More than half of the orders are processed and shipped to Representatives within the same day that they are received.

• Local delivery network capable to deliver more than 86% of Representative within 24 hours

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RVP: Enhanced Service Capability

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RVP: Flexible Payment Options• 92% pay through automated means

Installment Cards14%

Credit Cards18%

Direct Debit System

60%

Bank Transfer

8%

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Avon Turkey – Key Messages• The beauty market leader • Avon: a powerful beauty brand• The premier direct selling company • Dedicated to building on Representative Value

Proposition• Positions Avon to launch into Middle East &

Central Asia

A Growth Engine in Avon’s Portfolio

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The Representative Experience

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The Representative Experience

Didem Anıl13 years Avon

Representative

As told by..

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The Representative Experience

Sevda Demirbaş7 years Avon

Representative

As told by..

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The Representative Experience

Tülin Bayrak7 years Avon

Representative

As told by..

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Avon Turkey Investor MeetingMarch 8, 2007