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Progress Exchange

October - 2013 Company Overview - Trajectory

Solid Track Record of Accretive Growth

Foundation Strengthening DNA Leadership

1,557 26.7% 1,343 Market 24.1% 1,233 Integrated 1st IT IPO R$ 1 Billion of Consolidation 25.6%

EBITDA Margin (%) ¹ (%) Margin EBITDA Systems for SMEs in Latin Sales in 2010 1,080 and America 25.2% TOTVS 760 IPO Brand 20.6% International Expansion 490 392 21.9% Franchise System 247 18.4% 173 13.9% 126 Gross Revenues (R$ Million) (R$ Revenues Gross 106 110 12.4% Microsiga 98 Startup 10.6% 12.4% 6.5% 63 8.4% 35 10.0% 17 24 9.8%

1983 1986 1989 1992 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(1) EBITDA Margin does not include extraordinary expenses 2 Company Overview – Who we are

TOTVS is the South-Hemisphere’s largest ERP player

6th largest ERP player worldwide, leader in LatAm and Brazil Market & Absolute leader in Brazilian SME (Small and Medium Enterprise) Market Branding Among 23 Most Valuable Brazilian Brands*

+26,000 clients or +80,000 enterprises (under client’s contracts) Client Base & 57 exclusive distribution channels in Brazil Distribution +6,000 direct employees (+11,500 considering franchises´ workforce)

R$1.5 billion of revenues in the LTM-2Q13 (CAGR LTM 09 -13 of 11.8%) Financial R$389.7 million of EBITDA in LTM-2Q13 (CAGR LTM 09 -13 of 11.6%) Overview R$125.3 million of cash generation in 2012 (+129,7% vs. 2011)

Highest level of Corporate Governance (New Market) Ownership Corporation – 68% in free float with 82% of international investors Structure CEO & Co-Founders hold ~18% of Company’s shares

* Ranked 22nd by Brand Analytics and 23rd by Interbrand studies. 3 Company Overview – Who we are

Ranked 22nd among the Most Valuable Brands in Brazil

• High value despite the brand´s young age • Ranked ahead of major consumer brands • Has become a synonym for Brazilian business software

Source: Brand Analytics/Millard Brown – Istoé Dinheiro ed.22 June 2013 4 Who we are

Largest software 6th provider worldwide

R&D facilities around Americas São Paulo, BR / Porto Alegre, BR Belo Horizonte, BR / Joinville, BR Rio de Janeiro, BR / Assis, BR Queretaro, MX / Mountain View, US Company Overview – Who we are

Strong Fundaments and Business Model

Target Market Portfolio Distribution Revenue model

Leadership on SMB Comprehensiveness Capillarity Flexibility • Low Penetration • by Industry • Franchise Model • SMB Growth • Private Division • by Company Size • Regional Capturing • Formalization of the • Agnostic Entrepreneurship • Installed base with Economy • Process-Oriented • Channel Exclusivity No Concentration • Fragmented Platform • Final Contact with • Strong Recurrence Competition • Hybrid Clients • High Retention Rate (Cloud/On-premises) • Alignment of • Inflation Hedge • Mobility Interests

6 Portfolio Overview

TOTVS Arena

Identity Management Business Platform • Authenticated and • Interaction, Share and Certified Individuals Collaboration and Companies • e-commerce (Store) • Supply Chain

Enterprise Management • Back Office ERP • By Industry ERP

Consumer Management Process, Content and • Customized Attendant Relationship • Self-Service • Behavioral Analysis Management (Social CRM) • Corporate Productivity • Communication • Natural User Interface Human Capital Management Decision Making Support • Enterprise Culture • BI / DW / SGI / BSC / BA • Organization Development Anywhere • Payroll • Smartphones / Tablets • Single Sign-on • Availability • Information Ownership • SaaS (Software as a Service) 7 Portfolio – ERP by Industry

Functional adherence to the core business of each industry

Distribution & Logistics: Supply Chain | TMS | WMS | OMS | Fleet Maintenance |Shipper | Harbor Customs Facilities

Health: Health Plan and Affiliated Provider Management | Hospital Management | CCIH

Series T LATAM Services: Service Agreement Management and SLA | Asset Maintenance Legal: Process Follow-up and Control | Schedule | Timesheet |Agreement, Customer and Team Series 3 Performance Management

Series 1 Financial Services: Investment Management | Core Banking | Credit Management

8 Portfolio – ERP by Industry

Functional adherence to the core business of each industry

Distribution & Logistics: Supply Chain | TMS | WMS | OMS | Fleet Maintenance |Shipper | Harbor Customs Facilities

Health: Health Plan and Affiliated Provider Management | Hospital Management | CCIH

Series 1 Financial Services: Investment Management | Core Banking | Credit Management

9 Portfolio – Facts by Industry

+260 clients = 60% Brazilian sugarcane 12 million lives, +9,700 beds, harvest, +120 grain producers, 1,5 medical registers to 35 specialties million hectares Agribusiness Health

+1,289 clients are international 7 out of 10 top law firms, market, +67 projects, +533 10,000 lawyers engineering and design customers Construction and Projects Legal

+1,700 clients in retail and +1,000 extractive and processing distribution, customers, +1,058 metal and plastic,

+600 freight companies Distribution +1,500 capital goods and Logistics Manufacturing

+1,300 department stores, +350 +700 Brazilian institutions, supermarkets, +500 building +1.5 million students materials distributors Educational Retail

30k portfolios, 6k funds, +2,650 services providers, +400 1.7trillion/day assets processed, Utilities providers, +470 travel and

LatAm Financial Market Top provider Financial passengers transportation Services Services

10 TOTVS Vision

Company transformation into a global standard 5th Phase • Capturing the Brazilian economy internationalization • Geographical selectivity • Brazil remains the cornerstone of our strategy

• Specialization by Industry and by Size • SaaS (Software as a Service) Growth • Mobile • M&A

• Private Division • Revenue Recurrence Loyalty • Branding Recognition • Fluig (Process-Oriented Platform)

• SW Life Cycle & Componentization Margin • Efficiency gains in Services & Development • International Market

11 Who we are

Agribusiness business unit

SaaS and on premises Software for Grains' farm management

More than 3,7 millions of acres managed by TOTVS Solution TOTVS Agribusiness Solution

Productive Chain

Plan Plant Nurture Harvest Deliver Improvement

Sizing of Resources Consumption PIMS® System of Management Information of Agricultural Processes (Management Tool) Follow-up and Control of Operations PIMS® - Wide Platform Support all stages of the agricultural process, from the Monitoring of Levels of Resources Use preparation of the soil to the harvest of raw material

Multi-companies Guarantee Levels of Conformity of Processes and Management of the relationship between several plants with full Products transparency

Managing Production Costs Integration with ERP PIMS® provides integration with the main ERP systems Full Suite - Modules

Central Configuration and Production Sites

Planning of Activities

Activities and Resources Control

Plantation Controls

Harvest Controls

Reception and Analysis of Raw Material

Payment of Services - Third Parties

Agricultural Technical Control

Fleet Maintenance

Budget Planning

Improvement of Raw Material

Management of Production Costs TOTVS Solutions

Our References

SUGAR CITRUS/ SILVICULTURE CANE FLORAL SHOP

 AIMARA  BIOSEV  AGROTERENAS  CORUS  BUNGE  FINOBRASA/  ECOBRASIL  ETH VICUNHA  GRUPO MAGGI  NOBLE  JF CITRUS  MISTRAL  RAIZEN  PANTALEON  SÃO MARTINHO  GRANBIO  CTC

TUBERS/ CEREALS/ PASTURE PALMA [type of GRAINS edible cactus]

 BOM FUTURO  AGROSB  MANUELLITA  CALYX AGRO  CAMPANÁRIO  GRUPO MAGGI  GRENDENE  KOBRA  LUCIO MIRANDA  SEMENTES ADRIANA

15 WHERE WE ARE

SOUTH AMERICA Haiti Active Customers

Bermudas United States Active Customers Onw Units

Dominican Republic Mexico Onw Units Active Customers Cuba Active Customers Nicaragua Active Customers Honduras Active Customers Guatemala Active Customers

Costa Rica Active Customers

Panama Active Customers NORTH AND CENTRAL AMERICA WHERE WE ARE

EUROPE AND AFRICA WHERE WE ARE

ASIA, EURASIA AND MIDDLE EAST WHERE WE ARE

ASIA, EURASIA AND MIDDLE EAST

Japan Bahrein Active Customers Active Customers

China Philippines Active Customers Active Customers

Singapore Russia Active Customers Active Customers WHERE WE ARE

TOTVS AROUND THE WORLD TOTVS Labs

TOTVS Labs

For what?

Innovation Center located at Mountain View, CA Pure Labs concept

OBJECTIVES

Take advantage of the innovation Create a better solution to TOTVS environment of Silicon Valley Customers through technology development or product strategic partnerships. TOTVS Ventures

Strategic Investments

Big Data and Cloud Computing Business Analytics solutions in the cloud with Big Data technology offered in the SaaS mode Investment of US$16.0 million, with a Board seat and distribution exclusivity in Latin America

23 Win Win Strategy TOTVS CHANNEL

High valued software Broad product coverage by industry

Sales opportunities Increase SW portfolio availability for clients

Better professionals Strong training mechanism for services

Recognized channel Attractive sales incentives program Want to improve your Progress sales? Became a TOTVS channel Contacts

THANK YOU

[email protected] [email protected] www.totvs.com