INSTITUTIONAL PRESENTATION

TOTVS - All Rights Reserved

November 2018

DISCLAIMER

The information contained in this presentation and any forward-looking statements that may be made, related to business outlook, operational and financial projections of TOTVS are based on beliefs and assumptions of the Company's management, as well as information currently available. Forward-looking statements are not guarantee of future performance. They involve risks, uncertainties and assumptions as they refer to future events and, hence, depend on circumstances that may or may not occur. Investors must understand that general economic conditions, industry conditions and other operational factors could affect future performance of TOTVS and could lead to results that differ materially from those mentioned in these forward-looking statements.

WE ARE TOTVS - OVERVIEW

TOTVS supports its clients in their journey into the digital world, offering the best solutions and knowledge necessary for companies of all sizes and industries to take advantage of digital opportunities

~50%

Market Share

ERP leader in Brazil

20th

Most valuable brand in Brazil, according to Interbrand ranking

+R$1bi

Invested in R&D in the last 5 years

10

Strategic Industry Sectors supported by specialized business solutions

#1

The only IT Brazilian player present in the Global Innovation 1000 Ranking, according to Strategy& (PwC)

~7.8k

Participants worldwide

WHY TOTVS?

PRESENCE

PORTFOLIO

BRAND

SUSTAINABILITY

  • • Local and digital presence, based on a highly capillar distribution model

  • • Diversity, Wideness and Flexibility

  • • Reputation and market recognition

  • • Highest Level of Corporate Governance (B3 - Novo Mercado)

  • • Sustainable Financial Results

  • • Social Investment aligned with business strategy

WE ARE TOTVS - JOURNEY INTO THE DIGITAL

Traditional

Realize the revolution

Break the current paradigms

Listen to the customer and update the model

Plan the digital journeyConnect everybody and everything

Digital

SIMPLIFYING THE BUSINESS WORLD

SOFTWARE MARKET REVOLUTION

Traditional License Model

Subscription Model

  • ◉ Sale of Licenses

  • ◉ New versions released every 2-3 years

  • ◉ Technology oriented mainly for desktops

  • ◉ Closed and complex software architecture

  • ◉ Comprehensive and cumbersome solutions

Monthly-basis Subscription ◉

Continuous upgrades ◉

Mobile-first oriented technology ◉ Open, simple, modular and light solutions ◉

Cloud Solutions ◉

GLOBAL TRENDS

US$100bi potential subscription market*

Sources: *Gartner / IDC / CB Insights **Cisco

US$3tri potential

AI market*

50bi of connected things by 2020**

US$309bi estimated market for computational capacity*

WE ARE TOTVS - TRACK RECORD

GROSS REVENUES AND ADJUSTED EBITDA MARGIN (R$ Million and %)

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Disclaimer

TOTVS SA published this content on 22 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 22 November 2018 20:40:01 UTC