INSTITUTIONAL PRESENTATION

Transcription

1 INSTITUTIONAL PRESENTATION

2 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.

3 WE ARE TOTVS BUSINESS SOLUTIONS Way beyond technology WHO WE ARE: WE DEVELOP TECHNOLOGY... To make companies even more complete and competitive through intelligent, integrated and scaled solutions. The ERP leader in Brazil, with more than 50% market share #1 in Latin America and one of the largest in the world 21 st most valuable brand in Brazil, according to Interbrand BUSINESS SOLUTIONS AND SERVICES Highest level of Corporate Governance (Novo Mercado) PLATFORM Clients in 41 countries CONSULTING 12,000 TOTVERS, including franchisees Sustainable financial results

4 WE ARE TOTVS MARKET SHARE IN BRAZIL ERP (%) Source: Gartner - Market Share: All Software Markets, Worldwide, Total Worldwide Software Revenue for All Software Segments and Regions, (Millions of U.S. Dollars)

5 GROSS REVENUES AND ADJUSTED EBITDA MARGIN (R$ Million and %) WE ARE TOTVS START UP WARM UP DNA NUMBER 1 BRAZIL THINK TOGETHER PEOPLE, THINGS & BUSINESS 2519 Solutions for the SMB Market Biggest ERP Player in Brazil 1 st IT Company to go public Revenues of R$1.0 billion in Fluig Intera TOTVS % Digital Model % % 24.6% % % % Microsiga Franchisees Proprietary Technology Argentina 63 Results Management 8.9% % % % % Mexico % % 126 Specialization by 13.9% 18.4% industry sector 10.5% 11.0% ICMM Company of the Year by Exame Magazine Fluid Technology Essentiality Agile ERP

6 WE ARE TOTVS BOARD OF DIRECTORS STRONG CORPORATE GOVERNANCE 8 out of 9 members of the Board are independent Pedro Passos Chairman Independent member Co-founder and member of the Natura Board of Directors Germán Quiroga Vice-Chairman Independent member Laércio Cosentino Member Founder and CEO of TOTVS Sérgio Foldes Independent Member International Division Director of BNDES Pedro Moreira Salles Independent Member Itaú Unibanco Chairman Maria Helena de Santana Independent Member Former president of CVM (Brazilian SEC) Danilo Silva Independent Member CFO of Petros (Petrobras Pension Fund) Wolney Betiol Independent Member Co-founder of Bematech S.A. Mauro Cunha Independent Member President of AMEC (Associação dos Investidores do Mercado de Capitais)

7 WE ARE TOTVS MAIN EXECUTIVES LAÉRCIO COSENTINO CEO & FOUNDER GILSOMAR MAIA CFO 10 YEARS* FLAVIO BALESTRIN MARKETING, CHANNELS & HR 15 YEARS* ALEXANDRE APENDINO SALES AND SERVICES 3 YEARS* WEBER CANOVA TECNOLOGY 21 YEARS* MÁRIO ALMEIDA FLUIG & MOBILE 2 YEARS* GUSTAVO BASTOS HEAD SUPPLY CHAIN 18 YEARS* RONAN MAIA HEAD CONSUMER 15 YEARS* EROS JANTSCH HEAD MICROENTERPRISES & HARDWARE 23 YEARS* MARCELO EDUARDO HEAD SERVICES 15 YEARS* * Time working for TOTVS or acquired companies

8 WE ARE TOTVS OWNERSHIP STRUCTURE 66.9% OF FREE-FLOAT: A CORPORATION WITH NO CONTROLLING GROUP 97% of the free-float held by institutional investors 95% of the free-float held by non-brazilian investors

9 WE ARE TOTVS PRO-FORMA REVENUE BY SEGMENT (R$ MM) SPECIALIZED BUSINESS SOLUTIONS FOR COMPANIES OF ALL SIZES IN 11 MARKET INDUSTRIES Agribusiness Construction and Projects Distribution Logistics Educational Financial Services Legal Manufacturing Healthcare Services Retail

10 WE ARE TOTVS HOW WE SELL IN BRAZIL # Employees # Companies in Brazil Large Companies Private More than 500 employees ~6.6 thousand companies Small and Medium (SMB) 57 channels 52 franchisees 5 branches From 10 to 499 employees ~587 thousand companies Micro Companies ~5 thousand resellers Up to 9 employees ~4.2 million companies Source: IBGE

11 WE ARE TOTVS OUR PRESENCE TOTVS is present in the main business centers in Brazil and Latin America to be always near you and your company. All of this because BY THINKING TOGETHER, WE DO BETTER. USA TOTVS Labs 2 Development Centers 1 Branch LATIN AMERICA 4 Branches: 2 Argentina, 1 Colombia, 1 Mexico 25 Franchises 1 Development Center Mexico 1 Branch 3 Franchises EUROPE AFRICA 2 Franchises TAIWAN 1 Development Center CHINA 1 Branch 1 Development Center BRAZIL 15 Branches: 3 (SP), 2 (RJ), 3 (MG), 2 (PR), 1 (CE), 1 (GO), 1 (SC), 1(PE), 1(DF) 52 Franchises in the country 5,000 distributors INNOVATION 10 Development Centers structured by segmented knowledge Development Centers Branches TOTVS TOTAL 22 Branches 82 Franchises 15 Development Centers 5 thousand distributors

12 NEW BEHAVIORS AND TECHNOLOGY THINK ABOUT TOMORROW, BUT DO IT TODAY The speed of the changes in the world challenges companies to be prepared for what's new. See how TOTVS works for providing answers to questions still being asked: Fluid Technology Fluid Technology easy to use and implement, simple and mobile, promoting productivity, sharing, and collaboration, impacting a greater number of individuals and companies. Fluid Technology PRODUCTIVE AND COLLABORATIVE AGONOSTIC PLATFORM Essentiality Specific offers focused on "Core Business" for each segment with total adherence. Agile ERP Lighter Management systems and naturally focused on his/her "CORE, in "CLOUD", and "MOBILE", promoting a natural use interface. Essentiality Agile ERP TOTVS V12 MANAGEMENT SYSTEM BY INDUSTRY SECTOR New operating experience and complete adherence. Transactional interface of open systems

13 TOTVS DIGITAL MODEL - COMPONENTS ID Distribution Interface TOTVS DIGITAL MODEL TDM Information & AI Productivity & Collaboration Cloud Business

14 TOTVS DIGITAL MODEL Single Subscription Company LICENSE BASED DIGITAL MODEL Connecting People, Things and Businesses

15 FINANCIALS

16 NET REVENUE (R$ MM)* THE RECURRING REVENUE REPRESENTED 61.8% OF THE NET REVENUE IN 2016, VERSUS 55.6% IN 2015 * Pro-forma information for the periods of 2015, since they include the results of Bematech

17 NET REVENUE (R$ MM)* DURING THE TRANSITION TO SUBSCRIPTION, TOTVS PRESERVED THE SOFTWARE REVENUE * Pro-forma information for the periods of 2015, since they include the results of Bematech

18 SOFTWARE (R$ MM)* MAINLY DUE TO THE ACCELERATION OF THE SUBSCRIPTION GROWTH OVER THE YEAR * Pro-forma information for the periods of 2015, since they include the results of Bematech The Annual Recurring Revenue (ARR) is a metric widely used in the SaaS model to measure the growth of recurring revenue for the next 12 months referring to contracts already signed up to the end of the current period, excluding cancellations already requested.

19 SOFTWARE (R$ MM) 2,795 UNITS OF BEMACASH WERE SOLD AND MORE THAN 300 RESELLERS WERE CERTIFIED IN 2016 RETAIL TRADE FASHION BAR & RESTAURANT FOOD TRUCK

20 SOFTWARE (R$ MM)* 3Q16 4Q16 Δ 4Q/3Q 4Q15 Δ 4Q/4Q Δ 16/15 SOFTWARE REVENUE % % 1, , % COST OF SOFTWARE (19.7) (19.3) -2.0% (22.2) -12.9% (83.5) (77.3) -7.4% COST OF SUPPORT (32.2) (33.8) 4.7% (28.8) 17.1% (111.5) (130.4) 17.0% R&D (79.0) (87.7) 11.0% (77.6) 13.0% (282.4) (314.4) 11.3% ADJUSTED RESULT % % % ADJ. CONTRIBUTION MG. 62.1% 60.1% -190 bp 63.2% -300 bp 65.9% 62.6% -330 bp * Pro-forma information for the periods of 2015, since they include the results of Bematech

21 SERVICES (R$ MM)* 3Q16 4Q16 Δ 4Q/3Q 4Q15 Δ 4Q/4Q Δ 16/15 SERVICES REVENUE % % % COST OF SERVICES (123.3) (126.7) 2.8% (143.4) -11.6% (541.6) (504.5) -6.8% ADJUSTED RESULT % % % ADJ. CONTRIBUTION MG. 6.4% 1.5% -490 bp 2.4% -90 bp 8.8% 6.9% -190 bp * Pro-forma information for the periods of 2015, since they include the results of Bematech

22 HARDWARE (R$ MM)* 3Q16 4Q16 Δ 4Q/3Q 4Q15 Δ 4Q/4Q Δ 16/15 HARDWARE REVENUE % % % COST OF HARDWARE (39.2) (42.6) 8.6% (47.5) -10.3% (168.1) (160.1) -4.8% R&D (3.3) (3.3) 1.8% (2.2) 51.5% (7.9) (11.2) 42.3% GOV. SUBSIDIES % % % ADJUSTED RESULT % % % ADJ. CONTRIBUTION MG. 35.1% 37.5% 240 bp 35.1% 240 bp 40.3% 34.2% -610 bp * Pro-forma information for the periods of 2015, since they include the results of Bematech

23 ADJUSTED COMMERCIAL AND ADM. EXPENSES (%/NR)* * Pro-forma information for the periods of 2015, since they include the results of Bematech

24 ADJUSTED EBITDA (R$ MM)* * Pro-forma information for the periods of 2015, since they include the results of Bematech

25 ADJUSTED NET INCOME (R$ MM)* * Pro-forma information for the periods of 2015, since they include the results of Bematech

26 CASH FLOW AND DEBT (R$ MM)

27 GROSS DEBT AMORTIZATION SCHEDULE (R$ MM)

28 Investor Relations +55 (11) (11) (11) (11) Technology + Knowledge are our DNA The success of our client is our success We value competent people who are nice people totvs.com company/totvs blog.totvs.com fluig.com