INSTITUTIONAL PRESENTATION

DISCLAIMER

The information contained in this presentation and any forward-looking statements that may bemade, related to business outlook, operational and financial projections of TOTVS are based onbeliefs 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 circumstancesthat may or may not occur. Investors must understand that general economic conditions, industryconditions and other operational factors could affect future performance of TOTVS and could lead toresults that differ materially from those mentioned in these forward-looking statements.

WE ARE TOTVS

To make companies even more complete and competitive through

intelligent, integrated and scaled solutions.

WE DEVELOP TECHNOLOGY...

BUSINESS

SOLUTIONS

AND SERVICES

PLATFORM

CONSULTING

WHO WE ARE:

The ERP leader in Brazil, with more than 50% market share

#1 in Latin America and one of the largest in the world

21st most valuable brand in Brazil, according to Interbrand

Highest level of Corporate Governance (Novo Mercado)

Clients in 41 countries

12,000 TOTVERS, including franchisees

Sustainable financial results

BUSINESS SOLUTIONS Way beyond technology

MARKET SHARE IN BRAZIL – ERP (%)

Source: Gartner - Market Share: All Software Markets, Worldwide, 2015.

Total Worldwide Software Revenue for All Software Segments and Regions, 2013-2015 (Millions of U.S. Dollars)

WE ARE TOTVS

START UP WARM UP DNA NUMBER 1 BRAZIL THINK TOGETHER PEOPLE, THINGS

& BUSINESS

1983 1986 1989 1992 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20142013

GR

OS

S R

EV

EN

UE

S A

ND

AD

JUS

TE

D E

BIT

DA

MA

RG

IN (

R$

Mill

ion

an

d %

)

Microsiga Argentina

ICMM

Franchisees

Proprietary

Technology

Results

Management

Mexico

Specialization by

industry sector

Company of the

Year by

Exame Magazine

Fluid Technology

Essentiality

Agile ERP

Solutions

for the SMB

Market

Biggest ERP

Player in Brazil

1st IT

Company

to go public

Revenues of

R$1.0 billion

in 2010

Fluig Intera TOTVS

Digital

Model

63

95

8.9%

7.8%

106

6.3%

126173

247392

490

760

1080

1233

110

9.4%11.0%

10.5%13.9%

18.4%

21.9%

20.6%

25.2%

25.6%

1387

1539

1775

1957

26.7%

2117

24.1%

24.9%

24.6%

20.2%

2015

2519

16.4%

2016

WE ARE TOTVS

WE ARE TOTVS

STRONG CORPORATE

GOVERNANCEPedro

PassosChairman

Independent member

Co-founder and member

of the Natura Board

of Directors Germán

QuirogaVice-Chairman

Independent member

Sérgio FoldesIndependent Member

International

Division Director of

BNDES

Pedro

Moreira

SallesIndependent Member

Itaú Unibanco Chairman

Maria Helena de Santana

Independent Member

Former president of

CVM (Brazilian SEC)

Danilo SilvaIndependent Member

CFO of Petros

(Petrobras

Pension Fund)

Wolney BetiolIndependent Member

Co-founder

of Bematech S.A.

Mauro CunhaIndependent Member

President of AMEC

(Associação dos

Investidores do

Mercado de Capitais)

LaércioCosentino

Member

Founder and CEO

of TOTVS

8 out of 9 members of the Board

are independent

BOARD OF DIRECTORS

WE ARE TOTVS

MAIN EXECUTIVES

LAÉRCIO

COSENTINO

CEO &

FOUNDER

GUSTAVO

BASTOS

HEAD SUPPLY

CHAIN

18 YEARS*

RONAN

MAIA

HEAD

CONSUMER

15 YEARS*

MARCELO

EDUARDO

HEAD

SERVICES

15 YEARS*

MÁRIO

ALMEIDA

FLUIG &

MOBILE

2 YEARS*

ALEXANDRE

APENDINO

SALES AND

SERVICES

3 YEARS*

WEBER

CANOVA

TECNOLOGY

21 YEARS*

FLAVIO

BALESTRIN

MARKETING,

CHANNELS &

HR

15 YEARS*

GILSOMAR

MAIACFO

10 YEARS*

* Time working for TOTVS or acquired companies

EROS

JANTSCH

HEAD

MICROENTERPRISES

& HARDWARE

23 YEARS*

WE ARE TOTVS

• 97% of the free-float held by institutional investors

• 95% of the free-float held by non-Brazilian investors

66.9% OF FREE-FLOAT: A CORPORATION

WITH NO CONTROLLING GROUP

OWNERSHIP STRUCTURE

WE ARE TOTVS

SPECIALIZED BUSINESS SOLUTIONS FOR COMPANIES

OF ALL SIZES IN 11 MARKET INDUSTRIES

AgribusinessConstruction

and ProjectsDistribution Logistics Educational

Financial

ServicesLegal Manufacturing Healthcare Services Retail

PRO-FORMA REVENUE BY SEGMENT (R$ MM)

WE ARE TOTVS

~5 thousand resellers

Private

57 channels52 franchisees

5 branches

# Employees # Companies in

Brazil

Up to 9

employees

From 10 to 499

employees

More than 500

employees

~4.2 million

companies

~587

thousand

companies

~6.6 thousand

companies

Source: IBGE

Micro

Companies

Small and

Medium (SMB)

Large Companies

HOW WE SELL IN BRAZIL

WE ARE TOTVS

Development Centers Branches

USA – TOTVS Labs2 Development Centers

1 Branch

LATIN AMERICA

4 Branches: 2 Argentina, 1 Colombia, 1 Mexico

25 Franchises

1 Development Center – Mexico

BRAZIL15 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

INNOVATION10 Development Centers structured by segmented knowledge

EUROPE

1 Branch

3 Franchises

AFRICA2 Franchises

CHINA

1 Branch

1 Development CenterTAIWAN

1 Development Center

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.

TOTVS TOTAL • 22 Branches

• 82 Franchises

• 15 Development Centers

• 5 thousand distributors

OUR PRESENCE

NEW BEHAVIORS AND TECHNOLOGY

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.

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.

Fluid Technology

Agile ERP

Essentiality

MANAGEMENT SYSTEM BY INDUSTRY SECTOR

PRODUCTIVE AND COLLABORATIVE AGONOSTIC PLATFORM

TOTVS V12

New operating experience and complete

adherence. Transactional interface

of open systems

THINK ABOUT TOMORROW, BUT DO IT TODAY

TOTVS DIGITAL MODEL - COMPONENTS

TOTVS DIGITAL MODEL

TDM

ID

Information & AI

Distribution

Cloud Productivity & Collaboration

Business

Interface

TOTVS DIGITAL MODEL

DIGITAL MODELLICENSE BASED

Connecting People, Things and

Businesses

Single Subscription

Company

FINANCIALS

* Pro-forma information for the periods of 2015, since they include the results of Bematech

NET REVENUE (R$ MM)*THE RECURRING REVENUE REPRESENTED 61.8% OF THE NET REVENUE IN 2016, VERSUS

55.6% IN 2015

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

* Pro-forma information for the periods of 2015, since they include the results of Bematech

SOFTWARE (R$ MM)*

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.

…MAINLY DUE TO THE ACCELERATION OF THE SUBSCRIPTION GROWTH OVER THE YEAR

RETAIL TRADE FASHION BAR &

RESTAURANT

FOOD TRUCK

SOFTWARE (R$ MM)2,795 UNITS OF BEMACASH WERE SOLD AND MORE THAN 300 RESELLERS WERE

CERTIFIED IN 2016

SOFTWARE (R$ MM)*

3Q16 4Q16 Δ 4Q/3Q 4Q15 Δ 4Q/4Q 2015 2016 Δ 16/15SOFTWARE REVENUE 345.2 353.2 2.3% 349.8 1.0% 1,400.7 1,397.7 -0.2%

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 214.3 212.4 -0.8% 221.1 -3.9% 923.2 875.6 -5.2%

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

SERVICES (R$ MM)*

3Q16 4Q16 Δ 4Q/3Q 4Q15 Δ 4Q/4Q 2015 2016 Δ 16/15

SERVICES REVENUE 131.7 128.6 -2.3% 147.0 -12.5% 593.6 541.9 -8.7%

COST OF SERVICES (123.3) (126.7) 2.8% (143.4) -11.6% (541.6) (504.5) -6.8%

ADJUSTED RESULT 8.4 1.9 -77.5% 3.5 -45.9% 52.0 37.4 -28.2%

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

HARDWARE (R$ MM)*

3Q16 4Q16 Δ 4Q/3Q 4Q15 Δ 4Q/4Q 2015 2016 Δ 16/15

HARDWARE REVENUE 60.7 68.1 12.3% 74.7 -8.8% 268.0 244.2 -8.9%

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 3.1 3.4 8.4% 1.2 168.7% 16.0 10.6 -33.5%

ADJUSTED RESULT 21.3 25.5 20.0% 26.2 -2.7% 107.9 83.5 -22.6%

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

ADJUSTED COMMERCIAL AND ADM. EXPENSES (%/NR)*

* Pro-forma information for the periods of 2015, since they include the results of Bematech

ADJUSTED EBITDA (R$ MM)*

* Pro-forma information for the periods of 2015, since they include the results of Bematech

ADJUSTED NET INCOME (R$ MM)*

* Pro-forma information for the periods of 2015, since they include the results of Bematech

CASH FLOW AND DEBT (R$ MM)

GROSS DEBT AMORTIZATION SCHEDULE (R$ MM)

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#WEARETOTVERS

The success of our client is our success

We value competent people who are nice people

Technology + Knowledge are our DNA

Investor Relations

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