Avon Products : Announces Additional Details in Execution of 3-Year Transformation Plan

NEW YORK, March 14, 2016/PRNewswire / -- Avon Products, Inc. (NYSE: AVP) today announced additional details on the execution of the Company's three-year transformation plan that was outlined at the Investor Day in January 2016.

'Today, we are taking another important step forward in the execution of Avon'stransformation plan. With the recent completion of the sale of the North American business, our commercial operations are now fully outside of the United States, allowing us to dramatically rethink our operating model,' said Sheri McCoy, Chief Executive Officer. 'The actions we are taking today will bring our corporate and commercial businesses closer together, which will drive efficiencies, improve operational effectiveness and deliver significant cost savings.'

Avonis implementing significant changes in its operating model, including:

• Revising Avon'scommercial business to ensure that all markets have consistent roles, responsibilities and processes. This will drive significant cost efficiencies and improved effectiveness.

• Further streamlining of Avon'scorporate functions to align with the current and future needs of the business. The Company will reduce corporate infrastructure and will transition, over time, the location of Avon'scorporate headquarters to the United Kingdom, where the Company has significant commercial operations. To realize benefits of scale, core enterprise functions will be located in the United Kingdomwith direct connection to the operations throughout the world.

As a result of these operating model changes, Avonwill reduce its headcount by approximately 2,500 positions across multiple geographies. This includes both filled and open positions.

The Company expects to record total charges associated with these actions of approximately $60 millionbefore taxes in the first quarter of 2016. These charges are expected to be comprised primarily of employee-related costs. The Company expects to realize pre-tax savings of approximately $30 millionin 2016 associated with an approximate 1,700 headcount reduction, and expects to achieve annualized pre-tax savings of approximately $65 million - $70 millionbeginning in 2017.

In addition, the Company expects to realize annualized pre-tax savings of approximately $20 millionin 2016 related to the elimination of the open positions.

Avonwill maintain its current facilities in Suffern, NYand Rye, NY. The Company will also continue to be incorporated in New Yorkand trade on the New York Stock Exchange under the symbol AVP.

As announced previously, Avonseparated its North American business into a privately-held Company in which Avonmaintains a minority interest. The North American business is not impacted by any of today's actions.

About Avon Products, Inc.

Avonis the Company that for 130 years has proudly stood for beauty, innovation, optimism and, above all, women. Avonproducts include well-recognized and beloved brands such as ANEW, Avon Color, Avon Care, Skin-So-Soft, and Advance Techniques. Sold through nearly 6 million active independent Avon Sales Representatives, Avonproducts delight consumers in approximately 70 countries worldwide. Learn more about Avonand its products at www.avoncompany.com.

Forward-Looking Statements

Statements in this release that are not historical facts may be forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by Avon Products, Inc. with the Securities and Exchange Commission, including Forms 8-K, 10-Q, and 10-K. Some forward-looking statements in this release include and concern our transformation plan and operating model changes. These forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of Avonto be materially different from any future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to improve our financial and operational performance, our ability to achieve the anticipated benefits of our strategic partnership with Cerberus, the impact of a continued decline in our business results, the possibility of business disruption, competitive uncertainties, and general economic and business conditions in our markets, including fluctuations in foreign currency exchange rates. Any forward-looking statements speak only as of the date they are made. The Company does not undertake to update any such forward-looking statements.

SOURCE Avon Products, Inc.

Avon Products Inc. issued this content on 14 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 March 2016 21:27:35 UTC

Original Document: http://media.avoncompany.com/2016-03-14-Avon-Announces-Additional-Details-in-Execution-of-3-Year-Transformation-Plan