#1INSTITUTIONAL PRESENTATION / Investor Relations ALL RIGHTS RESERVED TOTVS TOTVS Braz Len O September/ 2020#2DISCLAIMER 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. 2 0#33 0 R$1.6 Trillion produced by our clients (represented by TOTVS' +30k clients)¹ E LOHI TOTVS Technology Tonovation 222 AXA Simplifying the business world #1 Software Company in Brazil³ +50% +50% Market share (ERP leader in Brazil) 3 SaaS 2 13.1% Technology Recurring Revenue Growth (2020)1 & BUSINESS MODEL Recurring Revenue base Cloud base 80.7% of Technology Recurring Revenue (2Q20) 1 DISTRIBUTION Local and digital presence, based on a highly capillary distribution model 74.8% of New Sales are SaaS (2020) 1 BUSINESS PORTFOLIO Ecosystem of solutions covering 3 dimensions: Management, Techfin and Business Performance M&A +25 M&A 99.0% Client Renewal Rate (2020)1 Main consolidator of Brazilian Tech Market GOVERNANCE Highest Level of Corporate Governance (B3 - Novo Mercado) Social Investment aligned with business strategy Source: (1) Company Filings, 2020. (2) Company internal estimates. (3) Software Market Share Enterprise Application 2020 by Gartner.#4III IV V BUSINESS MODEL ADDRESSABLE MARKET BY COMPANY SIZES (R$) R$11.0 tri Market Revenues: Production + Intermediate Consumption (1) 3.7% IT Spending as a % of Revenues (2) 21% IT Spending: Software Share (2) X Large Companies Small and Medium 29% % Addressable to TOTVS (4) Micro Companies R$24.8 bi Potential Software Market (Addressable to TOTVS) (SMB) Up to employees From 10 to 500 employees Above 500 employees 12.6 bi 8.0 bi 4.3 bi 10k companies (3) 638k companies (3) 4.5MM companies (3) Global IT Spending as a % of Revenue (2) 2013: 2.6% > 2019: 3.7% Global IT Spending Software Share (2) 2013: 20% > 2019: 21% Enterprise Application Software Growth - Brazil (5) CAGR 17/23: 8.5% Sources: (1) IBGE 2017 - Board of Research, Coordination of National Accounts, Table 5; (2) Gartner - IT Key Metrics Data 2019; IT Key Metrics Data 2019: Midsize Enterprise; (3) IBGE 2018 - Central Companies Register, Table 992; (4) TOTVS Analysis (EAS) - Enterprise Application Software excluding Office Suites and Other Non-Core Application); (5) IDC - LA Semiannual Software Tracker (July-2020) 4 0#5III IV V 5 0 BUSINESS MODEL Presence and partnership in all stages of the Customer Journey Cycle Post-Sale Specialized sales force incentivized to offer optimal cross-sell and upsell solutions to existing clients Local teams provide continuous attention to customers Sale Unique distribution capabilities and broad product offering Complete horizontal offering Business solutions for companies of all sizes in 12 business segments Flexibly deployed Cloud O On-premise Maintenance Full support through highly experienced and centralized team from TOTVS 3 CUSTOMER Implementation Exclusive implementation sources provide lower cost to final customers Distribution Model 09-09 Franchisees & Branches Partnership Across media Own sales force#6TOTVS GROUP eleve ။ III IV V DISTRIBUTION PHYSICAL CHANNELS 10 k TOTVS COMPANY SIZE Large Companies More than 500 employees 8-8 HOW WE RELATE Large Enterprise Division Own team with qualified and specialized staff by industry, offering personalized service and consulting support 638 k Small and Medium (SMB) From 10 to 500 employees 52 Franchised Territories and 5 Branches Franchised territories according to industry sector. Local knowledge for SMB customers 4.5 mm TOTAL NUMBER OF COMPANIES IN BRAZIL BY SIZE Micro Companies Up to 9 employees Multichannel Distribution model through partners from a multichannel base that provides TOTVS with unmatched penetration across all regions in Brazil DIGITAL CHANNEL - TOTVS STORE TOTVS Store is the digital medium for interacting with customers, especially for cloud applications Source: IBGE 2018 - Central Companies Register, Table 992 6 0#7III IV V BUSINESS PORTFOLIO OUR ECOSYSTEM GOES WAY BEYOND THE ERP... T Service Providers Distribution Legal ! $ Retail Financial Services We want to increase the EFFICIENCE and PROFITABILITY of our clients through TECHNOLOGY. Diversity, deepness and flexibility are the characteristics of our portfolio based on ecosystem that cover three dimensions боя MANAGEMENT Robust ERP and technologies that automate key processes and integrate all areas of the business. TECHFIN Credit and payments solutions to simplify, expand and cheapen the acess of its clientes to financial services through technology and data. BUSINESS PERFORMANCE Products that helps our clients to sell more and better, leveraging their results and performance. Construction Logistics Healthcare Education 7 Hospitality Manufacturing Agribusiness 0#8UNIQUE PLAYBOOK BASED ON FOUR KEY PILLARS III IV V M&A & PARTNERSHIPS 1st PILLAR Reinforcing/ Defending the Core 2nd PILLAR Deepening into Segments 3rd PILLAR Cross-Sell Solutions 4th PILLAR New Markets OPPORTUNITIES IN MANAGEMENT 1 ERP / HR MANAGEMENT 2 Verticals consinco CO OPPORTUNITIES IN TECHFIN 1 B2B Credit Supplier plier 3 Payments crédito para Impulsionar negócios TECHFIN 2 Payroll Credit B√ © creditas Retail Education rede OPPORTUNITIES IN BUSINESS PERFORMANCE BUSINESS PERFORMANCE 1 E-Commerce 2 OMS More than 60% of the proceeds of the Follow-on were already used to acquire Supplier, Consinco e Wealth Systems. MODDO VTEX 3 CRM wealthsystems 4 Other initiatives 8 0#9CORPORATE GOVERNANCE G#10။ III IV 1 GOVERNANCE Highest level of Corporate Governance - (B3 Novo Mercado) BOARD OF DIRECTORS COMPOSITION Laércio Cosentino Chairman Co-Founder of TOTVS and board member of Brasscom Maria Letícia Costa Vice-Chairman Independent Member Partner of Prada Assessoria Empresarial ans board member of Localiza Eduardo Vassimon Independent Member Chairman of the Board of Directors of Votorantim S.A and Board Member of B3* Gilberto Mifano Independent Member Ex-presidente da B3* Board member of Natura and Cielo Guilherme Stocco Filho Independent Member Member of B3* Technology Committee Mauro Cunha Independent Member Chairman of the Board of Directors of Caixa Econômica and Board Member of BRMalls Sylvia Leão Independent Member Board Member of Sodimac Brasil and Mendelics 10 6 out of 7 board members are independent 0 Audit monitors the procedures for compliance with legal provisions, evaluates risk management policies and recommends improvements to internal policies ADVISORY COMMITTEES Personnel and Compensation responsible for advising the Board of Directors in establishing the terms of compensation and other benefits Strategy studies, debates, evaluates, proposes and monitors the main guidelines of the corporate and technological strategy Governance and Nomination promotes the development of the Company's corporate governance and ESG strategy, evaluates the adoption of good practices and selects members to the Board of Directors and the Executive Board *B3-Brazilian Stock Exchange#11။ III IV 1 GOVERNANCE SHAREHOLDERS' STRUCTURE* Management and related parties 15.1% *As of June 30, 2020. Treasury Stocls 1.8% Free-Float Management 16.9% Free-Float 83.1% Foreign Investors Local Investors 35.1% 64.9% 83.1% free-float 64.9% of free-float held by foreign investors 11 83.1% 0#12။ III IV 1 OUR ENVIRONMENT AND OUR PEOPLE We attract professionals with a sense of ownership; • We are passionate for challenges and focused on results; • • We establish the market rhythm providing technology that transforms; We promote a serene, collaborative, inclusive and respectful culture; • We reward meritocracy, efficiency and productivity; • • We have a transparent and balanced environment; Our focus is on clients, ensuring their success; We recognize the importance of all stakeholders in TOTVS ecosystem. SOMOSTOTVERS SANT Ch EEP#13II III IV CULTURE #WEARETOTVERS defines our essence 13 0 TECHNOLOGY + KNOWLEDGE ARE OUR DNA We have built a legacy for an ever-changing-world. We are always thinking about how to combine technology and knowledge to keep boosting innovation now and forever. We are creative and not afraid of making mistakes. THE SUCCESS OF OUR CLIENT IS OUR SUCCESS We anticipate the needs of our customers. We deliver quality in solutions that are more essential, simpler and more agile for businesses. Always there and nearby. WE VALUE COMPETENT PEOPLE WHO ARE NICE PEOPLE Curious, collaborative, digital and driven by results. We are driven by our own style, and we are restless. We are TOTVERS. By geographic location 6.716 in Brasil 255 abroad As of December 31, 2019. ARG MEX USA RUS COL CHL PORT By gender 66% jj 34% By leadership position j-j 68% 32% By age Up to 30 From 30 to 50 Older than 50 62% 6% 11% By activity 9% 32% 48% Services R&D Sales 32% Adm / Others#14။ III IV 00000000 SOCIAL INVESTIMENT TOTVS MAINTAINS IOS AND BELIEVES THAT SOCIAL INVESTMENT DRIVES TRANSFORMATION IOS 14 0 INSTITUTO DA OPORTUNIDADE SOCIAL 100 Free professional training for youth and disabled people, in the areas of Administration and Information Technology focused on employing skilled professionals in the economy of the future. Indication of preselected graduating students to partner companies, and assistance in complying with the Law on Learning and the Law on Quotas for Disabled People. 38,000+ students graduated under a 22 years track record 2,000+ students have completed IOS courses 46% increase in household income of students 1,400 students employed with IOS assistance 100+ partners Source: 2019 IOS Annual Report#15FINANCIAL PERFORMANCE 2020 15#16MAIN RECENT EVENTS LAUNCH OF NEW TECHFIN PRODUCTS Launch of TOTVS Painel Financeiro, TOTVS Mais Negócios and TOTVS Mais Prazo showing the evolution of the strategy and adding innovation to the portfolio, strengthening the strategy of expanding, simplifying and making access to financial services cheaper through technology. T 16 RELEASE OF 2019 INTEGRATED REPORT TOTVS 2019 RELATO INTEGRADO TOTVS As part of the ESG Agenda, the fourth edition of the Integrated Report was released, referring to 2019, voluntarily adopting the GRI and IIRC guidelines and integrating the advances ins the 10 principles of the United Nations Global Pact and the and the Sustainable Developments Goals (SDG). ACTIONS WITH THE ECOSYSTEM - COVID-19 In addition to not adopting measures to reduce wages in the period, working hours or teams, actions were also made for its ecosystem, including: the TOTVS Talks Live Marathon and the "TOTVERS that DO" campaign, the latter to support students from Instituto da Oportunidade Social (IOS) and their families during the pandemic, providing food and hygiene items, and sponsored internet to access their content. TOTVERS QUE FAZEM QUE#17TOTAL REVENUE TECH (R$ MN) RECURRING REVENUE MAINTAINED DOUBLE-DIGIT GROWTH LEADING THE ADVANCE OF 6.5% OF THE TOTAL REVENUE IN THE 2019 1,127.6 282.9 25.1% -0.1% 6.5% 600.7 564.0 601.4 600.7 116.0 135.5 -14.3% 130.9 116.0 19.3% 21.8% 24.0% -11.3% 19.3% 844.7 74.9% 428.5 76.0% 13.1% 484.7 80.7% 470.5 78.2% 484.7 3.0% 80.7% 6.6% -12.7% 1,202.2 246.9 20.5% 13.1% 955.2 79.5% 2Q19 2Q20 1Q20 2Q20 1H19 1H20 17#18RECURRING REVENUE I TECH (R$ MN) IN A CHALLENGING SCENARIO, THE ARR GREW 14.7% VERSUS 2019, AND THE RENEWAL RATE OF 99% WAS THE HIGHEST HISTORICAL LEVEL ANNUALIZED RECURRING REVENUE (ARR) CLIENT RENEWAL RATE 2Q20 VS 2019 = 14.7% 2Q20 VS 1Q20= 2.6% 2,029.5 2,082.0 +11.4 + 41.1 +54.0 1,920.3 +55.2 1,860.6 + 59.7 1,816.0 +44.6 2,029.5 98.1% 98.9% 98.7% 98.3% 99.0% 1,920.3 +49.8 1,860.6 1,816.0 1,766.2 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 18#19EBITDA TECH (R$ MN) 20.6% 116.2 CONTINUOUS GROWTH OF RECURRING REVENUE COMBINED TO COST CONTROL INITIATIVES LEAD TO THE NEW EBITDA EXPANSION 17.9% 22.8% 21.0% 22.8% 20.5% 231.0 137.0 126.5 8.4% 137.0 14.0% 21.9% 263.5 2Q19 2Q20 1Q20 2Q20 1H19 1H20 EBITDA EBITDA MARGIN 19#20RESULTS I CREDIT PRODUCTS - SUPPLIER (R$ MN) THE REDUCTION IN THE TRANSACTIONED VOLUME, CONSEQUENCE OF THE PANDEMIA, IMPACTED DIRECTLY SUPPLIER'S REVENUE AND EBITDA IN THE MAY-JUNE/20 BIMESTER CREDIT PRODUCTS REVENUE 33.0 -19,2% 26.7 2Q19 2Q20 27,8% 9.2 2Q19 EBITDA -96,6% 1,2% 0.3 2Q20 EBITDA EBITDA MARGIN 20#21PRODUCTION AND CREDIT PORTFOLIO I CREDIT PRODUCTS - SUPPLIER (R$ MN) THE FALL CREDIT PRODUCTION, LED THE REDUCTION OF CREDIT PORTFOLIO AND NET REVENUES... CREDIT PRODUCTION 501.1 503.1 1,639.4 476.5 1,480.7 501.0 1,768.2 1,788.9 1,440.1 1,262.9 405.5 356.4 1Q 2Q 3Q 4Q April 2019 -2020 21 CREDIT PORTFOLIO 1,159.5 1,198.1 1,147.4 1,089.9 970.0 445.2 467.8 393.4 468.0 752.0 374.4 15.5 714.3 730.3 754.0 736.5 621.9 595.5 May June 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 FIDC Credit Portfolio Supplier Credit Portfolio#22BAD DEBTS, DELINQUENCY AND LOSS I CREDIT PRODUCTS - SUPPLIER 22 ...AND THE CASH EXCESS PREVENTED THE FALL OF THE COSTS IN LINE WITH REVENUES, AND THE ALLOWANCE FOR DOUBTFUL ACCOUNT DID NOT REFLECT THE RETURN OF DEFAULT AND LOSS TO PRE COVID-19 LEVELS CASH POSITION 240.7 EFFECTIVE LOSS 0.70% 0.55% 0.37% 0.32% 0.32% 0.24% 448.0 0.25% 0.20% 0.22% 0.23% 0.23% 0.24% 152.9 Jan Feb Mar Apr May Jun 2019 -2020 167.1 165.7 140.1 104.8 33.1 295.1 83.6 68.3 50.9 134.0 82.1 37.6 100.6 53.9 30.7 1Q19 2Q19 3Q19 4Q19 1Q20 2020 ■■FIDC Cash and Equivalents ■Supplier Cash and Equivalents DELINQUENCY 4.76% 1.59% 1.83% 1.99% 1.43% 1.14% 1.96% 1.55% 1.65% 0.92% 1.18% 1.34% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Up to 30 days From 31 to 60 days From 61 to 90 days From 91 to 360 days#23(1) CASH EARNINGS (R$ MN) CASH EARNINGS ADVANCE YEAR-ON-YEAR AND YEAR TO DATE REFLECTED MAINLY EBITDA GROWTH Cash Earnings - Initial 67.3 EBITDA Depreciation and Amortization Financial Result Income Tax and Social Contribution +6.0% Cash Earnings -Final 71.3 2Q20 vs. 1Q20 (6.6) 1.0 (1.3) 10.9 61.6 +15.8% 71.3 (i) Net Income without the effects of expenses with amortization of intangible assets arising from acquisitions 2Q20 vs. 2Q19 (2.3) (12.8) 21.1 3.8 110.1 1H20 vs. 1H19 +25.9% 138.6 (3.8) 23 (20.3) 32.8 19.7#24FINAL REMARKS 24 Continuous Financial and Operational Evolution Even in challenging period, the Company was able to maintain its level of Revenue and Profitability, showing the resilience of its business model. Advance in TECHFIN Strategy New TECHFIN products and the integration with Supplier's differentiated business model brings more products that add innovation in financial services, strengthening the purpose of increasing the efficiency and profitability of our customers. Covid-19 TOTVS still believes in Brazil that makes it Happen. In addition to not making reductions in the hours, salaries of its employees, and teams in the period, also developed actions to support its ecosystem during the crisis. We are still watching cautiously for any developments that may occur due to the COVID-19 pandemic and focused on continuing to implement medium and long-term strategies.#25THANK YOU INVESTOR RELATIONS +55 (11) 2099 - 7773 +55 (11) 2099 - 7097 +55 (11) 2099 - 7089 [email protected] ri.totvs.com.br Technology + Knowledge are our DNA The success of our client is our success We value competent people who are nice people totvs.com totvs.store @totvs O @totvs f /totvs in company/totvs #WEARETOTVERS