MEETING WITH SELL

SIDE ANALYSTS

June

A L L R I G H T S R E S E R V E D

2019

TOTVS

Simplifying the Business World

#1 Software

Company in Brazil***

9.9%

98.1%

Recurring Software Revenue

Client Renewal Rate

Growth (1Q19)*

(1Q19)*

~

~50%

Market share

(ERP leader in

Brazil)***

73.8%

of Recurring Revenue

(1Q19)*

R$1.6 Trillion

produced by our clients

(represented by TOTVS' +30k

clients)*,**

63.4% of New Sales

are SaaS

(1Q19)*

BUSINESS MODEL

PORTFOLIO

DISTRIBUTION

M&A

NEW MARKETS

• Recurring Revenue base

Diversity, Deepness and

Local and digital presence,

• 25+ M&A

• Fintech and Performance

• Cloud base

Flexibility

based on a highly capillary

• Main consolidator of Brazilian

opportunities

Source:

distribution model

Tech Market

  1. Company Filings, 2018 / 1Q2019. (**) Company internal estimates
    (***) Enterprise Application Software Worldwide 2018 by Gartner.

TOTVS' WINNING BUSINESS MODEL

Unique Combination Of Predictable And Recurring Revenue Base And Lock-in Approach With Deep Relationship With Clients Throughout Their Lifetime

Post-Sale

Sale

+8.6%

+9.9%

Specialized sales force

Software

Recurring

incentivized to offer

Unique distribution capabilities

Revenue

Software

optimal cross-sell and

upsell solutions to

and broad product offering

Growth

Revenue

existing clients

Growth

Local teams

(1Q19)

provide

(1Q19)

continuous attention

to customers

Customer

Maintenance

Implementation

Full support through highly

Exclusive implementation

experienced and

sources provide lower cost

centralized team from

to final customers

Totvs

Notes:

  1. 1Q19 adjusted EBITDA includes IFRS16 /CPC 06 application which results on R$10.3 MM impact
  2. Without any IFRS16 effect, 1Q19 vs. 1Q18 adjusted EBITDA increase would be 7.3%

98.1%

18.5%

Renewal

Adj. EBITDA

Rate

Increase(1)(2)

(1Q19)

(1Q19 vs. 1Q18)

…POWERED BY A STRONG DISTRIBUTION NETWORK

Local and digital presence for companies of all sizes

# of Companies in Brazil(*)

~10k

TOTVS focus market

~615k

~4.4mn

COMPANY SIZE

HOW WE RELATE

Large Companies

Large Enterprise Division

More than 500 employees

Own team with qualified and specialized staff

by industry, offering personalized service and

consulting support

Small and Medium (SMB)

52 Franchisees and 5 branches

From 10 to 500 employees

Franchised territories according to industry

sector. Local knowledge for SMB customers

Micro Companies

Multichannel

Up to 9 employees

Distribution model through partners from a

multichannel base that provides TOTVS with

unmatched penetration across all regions in

Brazil

DIGITAL CHANNEL - TOTVS STORE

TOTVS store allows us to enable a digital channel to interact with our clients, specially for cloud applications

(*)Source: IBGE - Chart 992.

NOVO CI CLO DE

ACCELERATING

CRESCI MENTO

GROWTH

Muito já foi feito e iniciado e o cenário se How to Reach and Sustain Growth mostra favorável para o próximo passo...

HOUSEKEEPI NG

LEADERSHIP TEAM

  • Cultura e ambiente

CENÁRI O EXTERNO

IMPROVED CURRENT

OPERATION

  • Sinais de otimismo por parte de nosso clientes e mercado

• Ofertas e Portfólio

GROWTH ACCELERATION

• Oportunidades de crescimento

OF CORE AND NEW MARKETS

• Processos e atendimento

e novos investimentos

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Disclaimer

TOTVS SA published this content on 12 June 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 June 2019 21:33:04 UTC