Avon 2010 Annual Report Download - page 13

CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR”
STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
Statements in this report that are not historical facts or information are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “forecast,” “plan,” “believe,” “may,” “expect,”
“anticipate,” “intend,” “planned,” “potential,” “can,” “expectation” and similar expressions, or the negative of those expressions, may
identify forward-looking statements. Such forward-looking statements are based on management’s reasonable current assumptions and
expectations. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of
activity, performance or achievement of Avon to be materially different from any future results expressed or implied by such forward-looking
statements, and there can be no assurance that actual results will not differ materially from management’s expectations. Such factors
include, among others, the following:
• our ability to implement the key initiatives of, and realize the gross and operating margins and projected benefits (in the amounts and
time schedules we expect) from, our global business strategy, including our multi-year restructuring initiatives, product mix and pricing
strategies, enterprise resource planning, customer service initiatives, product line simplification program, sales and operation planning
process, strategic sourcing initiative, outsourcing strategies, zero-overhead-growth philosophy, Internet platform and technology
strategies, information technology and related system enhancements and cash management, tax, foreign currency hedging and risk
management strategies;
• our ability to realize the anticipated benefits (including any projections concerning future revenue and operating margin increases) from
our multi-year restructuring initiatives or other strategic initiatives on the time schedules or in the amounts that we expect, and our plans
to invest these anticipated benefits ahead of future growth;
• the possibility of business disruption in connection with our multi-year restructuring initiatives or other strategic initiatives;
• our ability to realize sustainable growth from our investments in our brand and the direct-selling channel;
• our ability to transition our business in North America, including optimizing our product portfolio and enhancing field fundamentals;
• a general economic downturn, a recession globally or in one or more of our geographic regions, such as North America, or sudden
disruption in business conditions, and the ability of our broad-based geographic portfolio to withstand an economic downturn, recession,
cost inflation, competitive or other market pressures, or conditions;
• the effect of political, legal, tax and regulatory risks imposed on us, our operations or our Representatives, including foreign exchange or
other restrictions, adoption, interpretation and enforcement of foreign laws including any changes thereto, as well as reviews and
investigations by government regulators that have occurred or may occur from time to time, including, for example, local regulatory
scrutiny in China;
• our ability to effectively implement initiatives to reduce inventory levels in the time period and in the amounts we expect;
• our ability to achieve growth objectives or maintain rates of growth, particularly in our largest markets and developing and emerging
markets, such as Brazil or Russia;
• our ability to successfully identify new business opportunities and identify and analyze acquisition candidates, secure financing on
favorable terms and negotiate and consummate acquisitions as well as to successfully integrate or manage any acquired business;
• the effect of economic factors, including inflation and fluctuations in interest rates and currency exchange rates, as well as the designation
of Venezuela as a highly inflationary economy, foreign exchange restrictions and the potential effect of such factors on our business,
results of operations and financial condition;
• our ability to successfully transition and evolve our business in China in connection with the development and evolution of the direct-
selling business in that market, our ability to operate using a direct-selling model permitted in that market and our ability to retain and
increase the number of Active Representatives there over a sustained period of time;
• general economic and business conditions in our markets, including social, economic and political uncertainties in the international
markets in our portfolio;
• any developments in or consequences of investigations and compliance reviews, and any litigation related thereto, including the
ongoing internal investigation and compliance reviews of Foreign Corrupt Practices Act and related U.S. and foreign law matters in
China and additional countries, as well as any disruption or adverse consequences resulting from such investigations, reviews, related
actions or litigation;
• information technology systems outages, disruption in our supply chain or manufacturing and distribution operations, or other sudden
disruption in business operations beyond our control as a result of events such as acts of terrorism or war, natural disasters, pandemic
situations and large scale power outages;
• the risk of product or ingredient shortages resulting from our concentration of sourcing in fewer suppliers;
• the quality, safety and efficacy of our products;
• the success of our research and development activities;
• our ability to attract and retain key personnel and executives;
A V O N 2010 1