Avon 2015 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 (or in the documents it incorporates by reference) that are not historical facts or information may be 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,” “could,” “will,”
“would” and similar expressions, or the negative of those expressions, may identify forward-looking statements. They include, among other
things, statements regarding our anticipated or expected results, future financial performance, various strategies and initiatives (including
our transformation plan, stabilization strategies, cost savings initiatives, restructuring and other initiatives and related actions), costs and cost
savings, competitive advantages, impairments, the impact of foreign currency, including devaluations, and other laws and regulations,
government investigations, internal investigations and compliance reviews, results of litigation, contingencies, taxes and tax rates, potential
alliances or divestitures, liquidity, cash flow, uses of cash and financing, hedging and risk management strategies, pension, postretirement
and incentive compensation plans, supply chain and the legal status of our Representatives. Such forward-looking statements are based on
management’s reasonable current assumptions, expectations, plans and forecasts regarding the Company’s current or future results and
future business and economic conditions more generally. 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 improve our financial and operational performance and execute fully our global business strategy, including our ability to
implement the key initiatives of, and/or realize the projected benefits (in the amounts and time schedules we expect) from, our
transformation plan, stabilization strategies, cost savings initiatives, restructuring and other initiatives, product mix and pricing strategies,
enterprise resource planning, customer service initiatives, sales and operation planning process, outsourcing strategies, Internet platform
and technology strategies including e-commerce, marketing and advertising strategies, information technology and related system
enhancements and cash management, tax, foreign currency hedging and risk management strategies, and any plans to invest these
projected benefits ahead of future growth;
• our broad-based geographic portfolio, which is heavily weighted towards emerging markets, a general economic downturn, a recession
globally or in one or more of our geographic regions or markets, such as Brazil, Mexico or Russia, or sudden disruption in business
conditions, and the ability to withstand an economic downturn, recession, cost inflation, commodity cost pressures, economic or political
instability (including fluctuations in foreign exchange rates), competitive or other market pressures or conditions;
• the effect of economic factors, including inflation and fluctuations in interest rates and foreign currency exchange rates;
• the possibility of business disruption in connection with our transformation plan, stabilization strategies, cost savings initiatives, or
restructuring and other initiatives;
• our ability to reverse declining revenue, margins and net income, and to achieve profitable growth, particularly in our largest markets,
such as Brazil, and developing and emerging markets, such as Mexico and Russia;
• our ability to improve working capital and effectively manage doubtful accounts and inventory and implement initiatives to reduce
inventory levels, including the potential impact on cash flows and obsolescence;
• our ability to reverse declines in Active Representatives, to enhance our sales Leadership programs, to generate Representative activity, to
increase the number of consumers served per Representative and their engagement online, to enhance branding and the Representative
and consumer experience and increase Representative productivity through field activation and segmentation programs and technology
tools and enablers, to invest in the direct-selling channel, to offer a more social selling experience, and to compete with other direct-
selling organizations to recruit, retain and service Representatives and to continue to innovate the direct-selling model;
• general economic and business conditions in our markets, including social, economic and political uncertainties, such as in Russia and
Ukraine, and any potential sanctions, restrictions or responses to such conditions imposed by other markets in which we operate;
• our ability to successfully complete (i) the planned separation of our North America business into a privately-held company that will be
majority-owned and managed by Cleveland NA Investor LLC (an affiliate of Cerberus Capital Management L.P. (“Cerberus”)) (the
“Separation”) and (ii) the preferred stock investment by Cleveland Apple Investor LLC (an affiliate of Cerberus) in the Company and the
resulting interest Cerberus will have in our Company, as described herein in each case;
• developments in or consequences of any investigations and compliance reviews, and any litigation related thereto, including the
investigations and compliance reviews of Foreign Corrupt Practices Act (“FCPA”) and related United States (“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, including the retention of a compliance monitor as required by the deferred prosecution agreement with the
U.S. Department of Justice and a consent to settlement with the Securities and Exchange Commission (“SEC”), any changes in Company
policy or procedure suggested by the compliance monitor or undertaken by the Company, the duration of the compliance monitor and
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