INSTITUTIONAL PRESENTATION FEB-APR, 2014

Transcription

1 INSTITUTIONAL PRESENTATION FEB-APR, 2014

2 DISCLAIMER The material that follows is a presentation of general background information about TOTVS activities as of the date of the presentation in January This information is given in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors. This presentation may contain statements that express management s expectations and/or forecasts about future events. These expectations and/or forecasts involve risks and uncertainties that could cause actual results to differ materially from those projected in such forward-looking statements. Therefore, the future results of the company may differ from current expectations and readers must not base their expectations exclusively on the information presented herein. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on the accuracy, fairness, or completeness of the information presented herein. This document does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. 2

3 Leading company in Brazil & Latin America World s 6th largest ERP suite provider Absolute leader in the SMBs with more than 50% market share in Brazil R$ 1.6 Billion Net revenue in

4 History of strong growth through innovation NET REVENUE 1,611 R$ 832 million in R&D (in the last 5 years), among top R&D investors in Brazil 1,279 1, % Net Revenue CAGR ( ) +12.7% EBITDA CAGR ( ) +16.1% Net Income CAGR ( ) 988 1,

5 Solutions for companies of all sizes Unique distribution system Specialized solutions across 10 industries SOLUTIONS AND DISTRIBUTION 5

6 Strong corporate governance & brand recognition +68% free float, a corporation with no controlling group 6 out of 7 independent board members Ranked 22 nd most valuable Brazilian brand 6

7 BRAND RECOGNITION Well ranked despite the brand s young age, ahead of major consumer brands Source: Brand Analytics / Millard Brown Istoé Dinheiro, ed.22, June

8 BOARD OF DIRECTORS Pedro Passos Chairman Independent member Germán Quiroga Vice-Chairman Independent member Laércio Cosentino Member Sérgio Foldes Independent member Pedro M. Salles Independent member Luis Afonso Independent member Maria Helena de Santana Independent member 8

9 Business Model SMB oriented Flexible solutions and commercial model Monthly subscriptions providing direct support, with all updates included A model based on strong relationship with clients, avoiding unnecessary complexity 9

10 DISTRIBUTION AND INNOVATION Brazil Americas Active customers Development Centers Channels Branches Branches (MX, ARG, USA) DISTRIBUTION 5 branches + 50 franchises Mutually exclusivity system Focused on the SMBs Private division For the High-End customers +200 TOTVS Distributors INNOVATION Selling to micro enterprises across the country 2 branches Mexico North cone hub Argentina South cone hub + 15 franchises In LatAm 2 Development centers 7 Development centers Structured by vertical expertise +3,000 people on development & support TOTVS Labs - California Mexico for LatAm localization +3 Million people accessing our solutions every day INNOVATION Distributors DISTRIBUTION Franchises 10

11 THE FACTS The TOP PLAYER in business management applications from Emerging Markets Distributors (Micro) +38,000 clinics and medical offices +10,000 stores and small retail shops +6,500 small industries and service providers Branches & Franchises (SMB) Market Leader in Brazil and LatAm 60% of the Brazilian sugarcane harvest +700 Brazilian Educational institutions Present in 39 countries Private (Large) +27% of all listed companies in BM&FBovespa* Source: +46% of all companies awarded for corporate governance excellence in Latin America Source: 11

12 PORTFOLIO ADHERENCE TO THE CORE BUSINESS OF EACH INDUSTRY Agribusiness: Agricultural and Agribusiness Management Cultivation, Cultural Procedures, Harvest Origination of Grains Subcontracting Fleet Maintenance Automation in the Field Manufacturing: MPS MRP CRP APS Shop Floor Control Industrial Automation Asset Maintenance Environmental Management Distribution & Logistics: Supply Chain TMS WMS OMS Fleet Maintenance Shipper Harbor Customs Facilities Retail: Store and POS Magazine Drugstore OMS Credit Management Supply Company Management ERP by Industry Sector & by Company Size Construction and Projects: Work and Project Management Property Development Management Viability Analysis Education: Academic Management Library Distance Learning Academic Portal Selection Process Health: Health Plan and Affiliated Provider Management Hospital Management CCIH Series T Series 3 Series 1 Services: Service Agreement Management and SLA Asset Maintenance Legal: Process Follow-up and Control Schedule Timesheet Agreement, Customer and Team Performance Management Financial Services: Investment Management Core Banking Credit Management 12

13 THE NEW GENERATION AND MARKET TRENDS OPPORTUNITY: MAKE NEW BEHAVIORAL TRENDS HAPPEN 13

14 TOTVS` 3 CONCEPTS FLUID TECHNOLOGY Easy to use and deploy, simple and mobile, which promotes productivity, sharing and cooperation, thus impacting a higher number of individuals and companies. MAKE NEW BEHAVIORAL TRENDS HAPPEN CLOUD/SAAS ESSENTIALITY Specific offers targeting the core business of each market industry with full adherence. AGILE ERP Management systems that work out at the gym to become lighter and naturally focused on their CORE, in CLOUD and MOBILE, providing a natural user interface. 14

15 TOTVS` 3 CONCEPTS PRODUCTIVITY AND COLLABORATION PLATFORM FLUID TECHNOLOGY MAKE NEW BEHAVIORAL TRENDS HAPPEN Identity Document and process management Integration Indicators Business Collaboration Portals ESSENTIALITY AGILE ERP TRANSACTIONAL ENVIRONMENT SYSTEMS New user experiences and full adherence 15

16 TOTVS EVOLUTION AND NEXT STEPS Success is an outcome of wisdom and experiences of the past, knowledge and innovation of the present, and boldness to face the challenges of the future. START UP WARM UP DNA NUMBER 1 BRAZIL THINK TOGETHER Vision of the PCs impact for small and medium companies Regional distribution through franchises Strategic alliances project Corporate governance Global software kick-off Growth Strategy Private equity fund Internationalization Proximity with competitors and market Identification of the Company's DNA A group based on people Mission / Vision / Values Definition of talent and necessary human capital Systems and technology by industry IPO project R$1 billion Project Market consolidation Customer relationship theory To provide solutions and platforms, that are both global and innovative in their nature, across industries To play a key role in our clients management and operations To consolidate and be the leader in strategic industries To become a TOP Americas player, supporting our clients globally 16

17 SPECIALIZATION DRIVERS More Industries in the game New industries have adopted integrated solutions to achieve efficiency gains Both late and early adopters see more value in solutions connected to their core business The development roadmap is aligned with client demand, aiming to increase the adherence 17

18 INTEGRATING VALUE CHAINS The Company s strong market positioning among several market industries allows it to be the best player to integrate value chains with cross industry solutions, such as: Manufacturing Retail Construction & Projects Suppliers Suppliers Credit Production Distributor Distributor Retailer Homebuilders Credit Service Providers 18

19 Financial Performance

20 NET REVENUE (R$ Million) RESILIENT BUSINESS MODEL 20

21 NET REVENUE BY INDUSTRY SECTOR (R$ Million / %) INDUSTRY SECTOR DIVERSITY 21

22 TOTAL RECURRING REVENUE (R$ Million) REVENUE PREDICTABILITY 22

23 ACQUISITIONS OF 4Q13 AND 2013 YEAR Franchise Development TOTVS with over 130 employees and over 8 years of experience in developing management TOTVS solutions used by customers of all sizes in the health sector, especially large health plan operators in Brazil. Platform E-commerce by cloud, with more than 70 employees and 1,000 active online stores, recurrence of more than 80% of the total net revenue, which totaled R$6.3 million in M&A 2013 Company Closing Industry Sector PC Sistemas January 2013 Distribution, Wholesale and Retail PRX April Agrobusiness RMS August Retail and Supermarkets Seventeen November Health Ciashop January 2014 E-commerce Plataform These acquisitions are aligned with the segmentation strategy, adding expertise to our team and highly specialized solutions that increase the essentiality of TOTVS offers to customers. 23

24 INTERNATIONAL MARKET (R$ Million) (R$ Million) (US$ Million)* * Calculated based on the average exchange rate for the respective year 24

25 EBITDA (R$ Million) 25

26 OPERATING COSTS AND EXPENSES (%/Net Revenue) 26

27 NET INCOME (R$ Million) 27

28 CASH FLOW AND DEBT (R$ Million) 28

29 DIVIDEND TRACK RECORD * to be approved in the Annual General Meeting to be held on March 14,

30 INVESTIMENTS FOR NEW GROWTH CYCLES 2013 INVESTMENTS R&D Sales / Implementation Marketing International Market PLATAFORM / SOLUTIONS Segmentation Mobility Process Management (fluig) Cloud MARGIN SIMPLE +AGILE +CONECT +CLOUD +ESSENTIAL 30

31 SOCIAL ACTIONS Conceived and maintained by TOTVS and partner companies since 1998, the IOS - Instituto da Oportunidade Social - have 17 units in Brazil and 1 unit in Angola Focused on supporting and monitoring the employability of young people and people with disabilities, IOS has trained more than 20,000 young professionals in the IT and back office areas 31

32 INVESTOR RELATIONS ir.totvs.com Thank you