AVON PRODUCTS, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share data) Three Months Ended December 31 2012 2011 Percent Change Twelve Months Ended December 31 2012 2011 Percent Change

Net sales Other revenue Total revenue Cost of sales Selling, general and administrative expenses Impairment of goodwill and intangible asset Operating profit Interest expense Interest income Other (income) expense, net Total other expenses Income (loss) from continuing operations, before tax Income taxes (Loss) income from continuing operations, net of tax Discontinued operations, net of tax Net (loss) income Net income attributable to noncontrolling interests Net (loss) income attributable to Avon

2,955.7 43.4 2,999.1 1,204.5 1,574.9 209.0 10.7 27.5 (4.6) (21.4) 1.5 9.2 (170.3) (161.1) (161.1) (1.1) (162.2)

2,997.9 45.8 3,043.7 1,182.5 1,585.3 263.0 12.9 23.4 (3.2) 10.0 30.2 (17.3) 17.6 0.3 0.3 (0.7) (0.4)

(1)% (1)%

10,546.1 171.0 10,717.1 4,169.3 5,980.0 253.0 314.8 104.3 (15.1) 7.0 96.2

11,112.0 179.6 11,291.6 4,148.6 6,025.4 263.0 854.6 92.9 (16.5) 35.6 112.0 742.6 (216.2) 526.4 (8.6) 517.8 (4.2) 513.6

(5)% (5)%

(17)%

(63)%

(153)%

218.6 (256.8) (38.2) (38.2) (4.3) (42.5)

(71)%

(107)%

(108)%

(Loss) earnings per share: Basic Basic EPS from continuing operations Basic EPS from discontinued operations Basic EPS attributable to Avon Diluted Diluted EPS from continuing operations Diluted EPS from discontinued operations Diluted EPS attributable to Avon Weighted-average shares outstanding: Basic Diluted

(1)

$ $ $

(.37) (.37)

$ $ $

* *

$ $ $

(.10) (.10)

$ $ $

1.20 (.02) 1.18

(108)% (108)%

$ $ $

(.37) (.37)

$ $ $

* *

$ $ $

(.10) (.10)

$ $ $

1.20 (.02) 1.18

(108)% (108)%

432.1 432.1

430.9 431.8

431.9 431.9

430.5 432.1

* Calculation not meaningful

(1) Under the two-class method, (loss) earnings per share is calculated using net (loss) earnings allocable to common shares, which is derived by reducing net (loss) earnings by the (loss) earnings allocable to participating securities. Net (loss) earnings allocable to common shares used in the basic and diluted (loss) earnings per share calculation were ($159.2) and ($0.1) for the three months ended December 31, 2012 and 2011, respectively. Net (loss) earnings allocable to common shares used in the basic and diluted (loss) earnings per share calculation were ($42.2) and $508.1 for the twelve months ended December 31, 2012 and 2011, respectively.

AVON PRODUCTS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions) December 31 2012 Assets Current Assets Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other Total current assets Property, plant and equipment, at cost Less accumulated depreciation Property, plant and equipment, net Goodwill Other intangible assets, net Other assets Total assets Liabilities and Shareholders' Equity Current Liabilities Debt maturing within one year Accounts payable Accrued compensation Other accrued liabilities Sales and taxes other than income Income taxes Total current liabilities Long-term debt Employee benefit plans Long-term income taxes Other liabilities Total liabilities Shareholders' Equity Common stock Additional paid-in-capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost Total Avon shareholders' equity Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity December 31 2011

1,209.6 751.9 1,135.4 832.0 3,928.9 2,711.8 (1,161.6) 1,550.2 374.9 120.3 1,408.2 7,382.5

1,245.1 761.5 1,161.3 930.9 4,098.8 2,708.8 (1,137.3) 1,571.5 473.1 279.9 1,311.7 7,735.0

572.0 920.0 266.6 661.0 211.4 73.6 2,704.6 2,623.9 637.6 52.0 131.1 6,149.2

849.3 850.2 217.1 663.6 212.4 98.4 2,891.0 2,459.1 603.0 67.0 129.7 6,149.8

$ $

188.3 2,119.6 4,357.8 (876.7) (4,571.9) 1,217.1 16.2 1,233.3 7,382.5

$ $

187.3 2,077.7 4,726.1 (854.4) (4,566.3) 1,570.4 14.8 1,585.2 7,735.0

AVON PRODUCTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Twelve Months Ended December 31 2012 2011 Cash Flows from Operating Activities (Loss) income from continuing operations, net of tax Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Provision for doubtful accounts Provision for obsolescence Share-based compensation Deferred income taxes Impairment of goodwill and intangible asset Other Changes in assets and liabilities: Accounts receivable Inventories Prepaid expenses and other Accounts payable and accrued liabilities Income and other taxes Noncurrent assets and liabilities Net cash provided by operating activities of continuing operations Cash Flows from Investing Activities Capital expenditures Disposal of assets Purchases of investments Proceeds from sale of investments Acquisitions and other investing activities Net cash used by investing activities of continuing operations Cash Flows from Financing Activities Cash dividends Debt, net (maturities of three months or less) Proceeds from debt Repayment of debt Interest rate swap termination Proceeds from exercise of stock options Excess tax benefit realized from share-based compensation Repurchase of common stock Net cash used by financing activities of continuing operations Net cash used by investing activities of discontinued operations Net cash used by discontinued operations Effect of exchange rate changes on cash and equivalents Net change in cash and equivalents Cash and equivalents at beginning of year Cash and equivalents at end of period

(38.2) 229.6 251.1 122.1 41.1 (49.2) 253.0 35.5

526.4 239.6 247.2 128.1 36.6 (196.6) 263.0 52.7

(241.1) (89.7) 58.5 84.5 (28.7) (72.4) 556.1

(241.5) (210.3) 24.6 (55.7) (50.7) (107.6) 655.8

(228.8) 15.4 (1.5) 1.2 (213.7)

(276.7) 17.1 (28.8) 33.7 (13.0) (267.7)

(329.3) (710.5) 735.8 (138.3) 43.6 8.6 (2.4) (8.8) (401.3) 23.4 (35.5) 1,245.1 1,209.6

(403.4) 635.7 88.9 (614.6) 16.8 (0.2) (7.7) (284.5) (1.2) (1.2) (37.2) 65.2 1,179.9 1,245.1

$ $

$ $

AVON PRODUCTS, INC. SUPPLEMENTAL SCHEDULE (Unaudited) (In millions) THREE MONTHS ENDED 12/31/12 REGIONAL RESULTS $ in Millions Total Revenue US$ % var. vs 4Q11 $ 1,330.5 2% 905.8 1 516.2 (12) 246.6 (3) 2,999.1 (1) $ 2,999.1 (1)% C$ % var. vs 4Q11 7% 2 (12) (6) 1 1% Units Sold % var. vs 4Q11 6% 5 (11) (9) 2 2% Price/Mix C$ % var. vs 4Q11 1% (3) (1) 3 (1) (1)% Active Reps (1) % var. vs 4Q11 6% 1 (13) (8) 1 1% Average Order C$ (1) % var. vs 4Q11 1% 1 1 2 -%

Latin America Europe, Middle East & Africa North America Asia Pacific (1) Total from operations Global and other Total

Latin America Europe, Middle East & Africa North America Asia Pacific Total from operations Global and other Total

2012 GAAP Operating Profit (Loss) % var. vs 4Q11 US$ $ 136.0 6% 131.4 (4) (201.4) 17 8.8 (64) 74.8 57 (64.1) (83) $ 10.7 (17)%

2012 GAAP Operating Margin US$ 10.2% 14.5 (39.0) 3.6 2.5 0.4%

2012 Non-GAAP Operating Profit US$ (2) $ 143.7 131.5 26.6 21.8 323.6 (46.3) $ 277.3

2011 Non-GAAP Operating Profit US$ (2) $ 134.8 138.7 21.3 24.4 319.2 (34.6) $ 284.6

2012 Non-GAAP Operating Margin (2) 10.8% 14.5 5.2 8.8 10.8 9.2%

2011 Non-GAAP Operating Margin (2) 10.3% 15.5 3.6 9.6 10.5 9.4%

CATEGORY SALES (US$) Consolidated US$ % var. vs 4Q11 (2)% (1) (1)% (5) (1)% C$ % var. vs 4Q11 1% 2 1% (6) 1%

Beauty (color cosmetics/fragrances/skincare/personal care) Fashion (jewelry/watches/apparel/footwear/accessories/children's) Home (gift & decorative products/housewares/entertainment & leisure/children's/nutrition) Net sales Other revenue Total revenue Beauty Category: Fragrance Color Skincare Personal care

$ $

2,109.2 538.3 308.2 2,955.7 43.4 2,999.1

-% (1) (5) (1)

2% 2 (2) 1

(1) Asia Pacific's decline in Active Representatives and increase in average order are impacted by the transition to a retail compensation model in China. Due to this transition, the Active Representatives and average order performance metrics are not a relevant indicator of the underlying business trends. (2) For a further discussion on our Non-GAAP financial measures, please refer to our discussion of Non-GAAP financial measures in this release and reconciliations of our Non-GAAP financial measures to the related GAAP financial measure in the following supplemental schedules.

AVON PRODUCTS, INC. SUPPLEMENTAL SCHEDULE (Unaudited) (In millions) TWELVE MONTHS ENDED 12/31/12 REGIONAL RESULTS $ in Millions Total Revenue US$ % var. vs 12M11 $ 4,993.7 (3)% 2,914.2 (7) 1,906.8 (8) 902.4 (4) 10,717.1 (5) $ 10,717.1 (5)% C$ % var. vs 12M11 5% (1) (8) (5) -% Units Sold % var. vs 12M11 2% (6) (7) -% Price/Mix C$ % var. vs 12M11 3% (1) (2) 2 -% Active Reps (1) % var. vs 12M11 3% (12) (9) (1) (1)% Average Order C$ (1) % var. vs 12M11 2% (1) 4 4 1 1%

Latin America Europe, Middle East & Africa North America Asia Pacific (1) Total from operations Global and other Total

Latin America Europe, Middle East & Africa North America Asia Pacific Total from operations Global and other Total

2012 GAAP Operating Profit (Loss) % var. vs 12M11 US$ $ 443.9 (30)% 312.8 (35) (214.9) (14) 5.1 (94) 546.9 (46) (232.1) (53) $ 314.8 (63)%

2012 GAAP Operating Margin US$ 8.9% 10.7 (11.3) 0.6 5.1 2.9%

2012 Non-GAAP Operating Profit US$ (2) $ 463.5 324.6 24.6 67.3 880.0 (187.5) $ 692.5

2011 Non-GAAP Operating Profit US$ (2) $ 637.1 484.2 99.7 81.1 1,302.1 (144.5) $ 1,157.6

2012 Non-GAAP Operating Margin (2) 9.3% 11.1 1.3 7.5 8.2 6.5%

2011 Non-GAAP Operating Margin (2) 12.3% 15.5 4.8 8.6 11.5 10.3%

CATEGORY SALES (US$) Consolidated US$ % var. vs 12M11 (5)% (5) (4) (5)% (5) (5)% C$ % var. vs 12M11 1% (2) 2 -% (3) -%

Beauty (color cosmetics/fragrances/skincare/personal care) Fashion (jewelry/watches/apparel/footwear/accessories/children's) Home (gift & decorative products/housewares/entertainment & leisure/children's/nutrition) Net sales Other revenue Total revenue Beauty Category: Fragrance Color Skincare Personal care

$ $

7,642.7 1,891.7 1,011.7 10,546.1 171.0 10,717.1

(4)% (6) (7) (6)

2% 1 (1) -

(1)

Asia Pacific's decline in Active Representatives and increase in average order are impacted by the transition to a retail compensation model in China during the latter half of 2012. Due to this transition, the Active Representative and average order performance metrics are not a relevant indicator of the underlying business trends.

(2) For a further discussion on our Non-GAAP financial measures, please refer to our discussion of Non-GAAP financial measures in this release and reconciliations of our non-GAAP financial measures to the related GAAP financial measure in the following supplemental schedules.

AVON PRODUCTS, INC. SUPPLEMENTAL SCHEDULE NON-GAAP FINANCIAL MEASURES (Unaudited) This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the difference between the Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. $ in Millions (except per share data) Reported (GAAP) Cost of sales Selling, general and administrative expenses Operating profit Income from continuing operations before taxes Income taxes (Loss) income from continuing operations Diluted EPS from continuing operations Gross margin SG&A as a % of revenues Operating margin Effective tax rate $ 1,204.5 1,574.9 10.7 9.2 (170.3) (161.1) (0.37) 59.8% 52.5% 0.4% 1845.3% CTI restructuring initiatives $ 1.3 56.3 57.6 57.6 (19.9) 37.7 0.09 (1.9) 1.9 (0.4) $ THREE MONTHS ENDED 12/31/12 Impairment charge 209.0 209.0 (76.7) 132.3 0.31 7.0 14.1 $ Venezuelan special items (23.8) 8.1 (15.7) (0.03) 0.3 $ Special tax items 168.3 168.3 0.39 (1823.3) $ Adjusted (Non-GAAP) 1,203.2 1,518.6 277.3 252.0 (90.5) 161.5 0.37 59.9% 50.6% 9.2% 35.9%

SEGMENT OPERATING PROFIT (LOSS) Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total SEGMENT OPERATING MARGIN Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total

136.0 131.4 (201.4) 8.8 (64.1) 10.7

7.7 0.1 19.0 13.0 17.8 57.6

209.0 209.0

143.7 131.5 26.6 21.8 (46.3) 277.3

10.2% 14.5% (39.0)% 3.6% 0.4%

0.6 3.7 5.3 1.9

40.5 7.0

10.8% 14.5% 5.2% 8.8% 9.2%

Amounts in the table above may not necessarily sum because the computations are made independently.

AVON PRODUCTS, INC. SUPPLEMENTAL SCHEDULE NON-GAAP FINANCIAL MEASURES (Unaudited) This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the difference between the Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. $ in Millions (except per share data) Reported (GAAP) Cost of sales Selling, general and administrative expenses Operating profit Income from continuing operations before taxes Income taxes (Loss) income from continuing operations Diluted EPS from continuing operations Gross margin SG&A as a % of revenues Operating margin Effective tax rate $ 4,169.3 5,980.0 314.8 218.6 (256.8) (38.2) (0.10) 61.1% 55.8% 2.9% 117.5% CTI restructuring initiatives $ 4.5 120.2 124.7 124.7 (42.0) 82.7 0.19 (1.1) 1.2 (0.3) $ TWELVE MONTHS ENDED 12/31/12 Impairment charges 253.0 253.0 (76.7) 176.3 0.40 2.4 (5.5) $ Venezuelan special items (23.8) 8.1 (15.7) (0.04) 0.1 $ Special tax items 168.3 168.3 0.39 (77.0) Adjusted (Non-GAAP) $ 4,164.8 5,859.8 692.5 572.5 (199.1) 373.4 0.85 61.1% 54.7% 6.5% 34.8%

SEGMENT OPERATING PROFIT (LOSS) Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total SEGMENT OPERATING MARGIN Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total

443.9 312.8 (214.9) 5.1 (232.1) 314.8

19.6 11.8 30.5 18.2 44.6 124.7

209.0 44.0 253.0

463.5 324.6 24.6 67.3 (187.5) 692.5

8.9% 10.7% (11.3)% 0.6% 2.9%

0.4 0.4 1.6 2.0 1.2

11.0 4.9 2.4

9.3% 11.1% 1.3% 7.5% 6.5%

Amounts in the table above may not necessarily sum because the computations are made independently.

AVON PRODUCTS, INC. SUPPLEMENTAL SCHEDULE NON-GAAP FINANCIAL MEASURES (Unaudited) This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the difference between the Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. $ in Millions (except per share data) Reported (GAAP) Cost of sales Selling, general and administrative expenses Operating profit Income from continuing operations before taxes Income taxes Income from continuing operations Diluted EPS from continuing operations Gross margin SG&A as a % of revenues Operating margin Effective tax rate $ 1,182.5 1,585.3 12.9 (17.3) 17.6 0.3 61.1% 52.1% 0.4% 101.7% THREE MONTHS ENDED 12/31/11 CTI restructuring initiatives $ 3.0 5.7 8.7 8.7 (2.8) 5.9 0.01 0.1 (0.2) 0.3 $ Impairment charge 263.0 263.0 (96.8) $166.2 0.38 8.6 (69.9) Adjusted (Non-GAAP) $ 1,179.5 1,579.6 284.6 254.4 (82.0) 172.4 0.39 61.2% 51.9% 9.4% 32.2%

SEGMENT OPERATING PROFIT (LOSS) Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total SEGMENT OPERATING MARGIN Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total

128.4 137.1 (241.7) 24.1 (35.0) 12.9

6.4 1.6 0.3 0.4 8.7

263.0 263.0

134.8 138.7 21.3 24.4 (34.6) 284.6

9.8% 15.3% (41.3)% 9.5% 0.4%

0.5 0.2 0.1 0.3

45.0 8.6

10.3% 15.5% 3.6% 9.6% 9.4%

Amounts in the table above may not necessarily sum because the computations are made independently.

AVON PRODUCTS, INC. SUPPLEMENTAL SCHEDULE NON-GAAP FINANCIAL MEASURES (Unaudited) This supplemental schedule provides adjusted Non-GAAP financial information and a quantitative reconciliation of the difference between the Non-GAAP financial measure and the financial measure calculated and reported in accordance with GAAP. $ in Millions (except per share data) Reported (GAAP) Cost of sales Selling, general and administrative expenses Operating profit Income from continuing operations before taxes Income taxes Income from continuing operations Diluted EPS from continuing operations Gross margin SG&A as a % of revenues Operating margin Effective tax rate $ 4,148.6 6,025.4 854.6 742.6 (216.2) 526.4 1.20 63.3% 53.4% 7.6% 29.1% TWELVE MONTHS ENDED 12/31/11 CTI restructuring initiatives $ 11.2 28.8 40.0 40.0 (13.9) 26.1 0.06 0.1 (0.3) 0.4 0.1 $ Impairment charge 263.0 263.0 (96.8) $166.2 0.38 2.3 2.0 Adjusted (Non-GAAP) $ 4,137.4 5,996.6 1,157.6 1,045.6 (326.9) 718.7 1.64 63.4% 53.1% 10.3% 31.3%

SEGMENT OPERATING PROFIT (LOSS) Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total SEGMENT OPERATING MARGIN Latin America Europe, Middle East & Africa North America Asia Pacific Global and other Total

634.0 478.9 (188.0) 81.4 (151.7) 854.6

3.1 5.3 24.7 (0.3) 7.2 40.0

263.0 263.0

637.1 484.2 99.7 81.1 (144.5) 1,157.6

12.3% 15.3% (9.1)% 8.6% 7.6%

0.1 0.2 1.2 0.4

12.7 2.3

12.3% 15.5% 4.8% 8.6% 10.3%

Amounts in the table above may not necessarily sum because the computations are made independently.