Institutional Presentation

February 2010

10.6%

1983 1986 1989 1992 1995 1996 1997 1998 1999 2000 2001 2002

9.8%

10.0%

8.4%

6.5%

11010698

63

3524

17

CMMI 12.4%

IPO

13.9%

392

247

173

18.4%

490

21.9%

2004 2005 2006 2007 2008

33x EBITDA11x Revenue

2009

12.4%

126

2003

Growth:17x EBITDA

8.5x Revenue

Operating LeverageStrengthening / ExpansionFoundation

ProprietaryTechnology

Startup ofMicrosiga

Franchising System

ISO 9001

Argentina

ISO 9001: 2000(Franchises)

Mexico

Acquisition

Focus on management

and results

Growth inMargin

Midbyte and BCSAcquisitions

Acquisition

Gro

ss R

eve

nu

e (

R$

mill

ion

) an

d E

BIT

DA

Mar

gin

(%

) 1

(1) EBITDA Margin does not include extraordinary expenses.

Success Track Record

2

760

20,6%

25.2%

1,080

Cross-Selling

Structure of Business Model

(1) Does not include close to 4,000 employees of our franchises(2) Inclues Infrastructure, HR BPO, Education and Service Desk

CoreSynergies Synergies

TOTVS Customer Service and Relationship

Software – Base and New Clients ServicesExpanded Business

Technology

ERP CRMBusiness

Intelligence

VerticalModules

Consulting

Value-Added Service2

3

TOTVS

62 Full TOTVS Distribution Channels

+ 24,800 customers~ 5,000 direct employees¹

Flexible Technology

Digital TV

4

Macro/Marketchanges

… and in 2010!

Companies’ basicneed

Under-penetrated

market

Environment

Strong Fundmentals

Fundamentals

TOTVS Success Equation in 2009…

Eletricity, water, telephone and software

SPED, WC 2014, Olympics 2016, PAC (infra-structure)

Brazilian SMB marketis 7.0% penetrated

according to Gartner

Latin America

Technology and Product

Fundamentals and Business Model

Distribution

5

TOTVS’ Differentials

LICENÇALicences Services Maintenance

Market

Latin America – growth and TOTVS’ market share

Sou

rce:

Fo

reca

st:

Gar

tner

En

terp

rise

So

ftw

are

Mar

kets

, Wo

rld

wid

e, 2

00

8-2

013

, 1Q

09

Up

dat

e 11.9%

11.5%

10.5%

7.4%

5.0%

2.3%

Latin America

Asia/Pacific

Japan

N. America

Middle East

Europe

ERP 2008-2013 estimated growth

Brazil46%

Mexico 28%

Argentina 10%

Venezuela8%

Chile3%

Peru3%

Colombia 2%

Source: IDC Latin America Semiannual ERM Applications Tracker 1H09

6

Market

Estimates

Latin America ERP spend

Market Share LA

A

B

C

D

38.8%40.9% 40.7%

38.8%

14.6%

16.0%18.1%

20.4%

15.4%

13.2% 12.2% 12.8%

8.4% 7.8% 7.9% 8.6%

3.7% 3.2% 2.9% 2.5%

2006 2007 2008 1H09

LatestUpdate

7th Worldwide and leadership in Brazil

7

Source: IDC Latin America Semiannual ERM Applications Tracker 1H09

163

179

186

208

210

216

247

284

353

796

1313

1,313

1,696

2,719

Kenexa

IBM

Epicor

Cegid

Agresso

Concur

Exact

TOTVS

Lawson

Microsoft

Infor

Sage

Oracle

SAP

License and maintenance revenues, in USD million

Source: Gartner - ERP Software, Worldwide, 2008.

Market

2008 ERP Worldwide Ranking Market Share Brazil

32.9%34.4%

37.9%

41.7%

33.2% 34.1%32.0%

30.0%

10.5%8.8% 8.3% 8.5%

5.6%5.2% 4.9% 5.5%

3.9% 3.2% 2.9% 2.3%

2006 2007 2008 1H09

LatestUpdate

A

B

C

DE

Revenue/Business Model

New Customers

Base Customers

NewCustomers

BasicImplementation

Base Customers

New Licenses

New Modules

Consultingand

VAS+

Licences

Services

Maintenance

New Licenses

CorporateModel

TOTVS’ Business

8

Updates Upgrades(New version)

Help-desk

0.34 0.34 0.34 0.34 0.34 0.34 0.341.00

0.34

2.00

Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8

Traditional model Corporate model

No new licenses sold1 new licensesold per year

Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12… …

(1) IBGE estimates about the Brazilian market. (2) Source: Gartner “Dataquest Insight: TOTVS and the Brazilian SMB ERP Landscape”, mar’09

646

468,000

5,297,000

250 +

50 - 250

0 - 5

Large

Medium

Small

Micro

5 - 50(revenues of over

R$15 million/ year)

~ 24,800Active customers

64.2%Market Share

~ 38,700‘using’ ERP

468,000SMB market size

~ 8.2 %Penetrated

9

Market

Positioning Users # Companies1

Penetration

Gartner Estimates2 7.0 %

Penetrated

Industrial 46%

Services 21%

Retail10%

Financial 11%

Other 12%

Diversified client base

Datasul and RM Sistemas contributed to diversify even more the company’s client base

(1) Based on TOTVS 2008 revenue.(2) Industrial sector includes: chemicals, food, plastic, rubber and metallurgy industries as well as others.

Client Breakdown by Sector 1 Revenue Concentration 1

11-100 Largest

12%

Others83%

10 Largest

5%

10

TOTVS’ Business

Flexible middleware allows product integration

User View.

The language is responsible for communicating application commands, as ERP, to the next technological layer, the middleware.

The middleware acts as an interpreter and facilitator, “translating” and connecting the language commands with the framework. TOTVS Tec, the middleware developed by

TOTVS, translates and communicates the ADVPL and 4GL languages to a wide range of operating systems, working with any hardware. It provides platform independence and

access to the most advanced resources, such as SOA and Web Services.

The middlewares available in the market work based on a framework. TOTVS Tec’s framework is developed in C++ and is able to operate on any operating system, giving the

customer flexibility in the choice of the technology platform.

Middleware TOTVS Tecflexibility

O.S

.

Dat

abas

e

ERP

ADVPL 4GLProgress

ABL

Unix Windows OthersLinux

Oracle DB2

SQL Others

Framework

Languages

Har

dw

are

Intel OthersPowerPC

(Intel)

.NET

11

Technology

Segment approach

Strategy

+700 Brazilian institutions, +1.5 million students, choice of 67% of the consolidating groups

50 out of 100 biggest Brazilian

and 20 international builders, 450engineering and design customers

22k portfolios, 4k funds,

120k/day consumer credit

transactions, R$1.5 tri assets under custody, LA Financial Market Top provider

+200 sugar cane producers =

50% national crop, 120 grain

producers = 1 million hectares

+1,110 extractive and processing

customers, +1,000 metal and

plastic, +1,400 capital goods

12

Distribution Logistics

Financial Services

Agrobusiness

Manufacturing

Constructionand Projects

Services

Educational

Health

Legal

Small BusinessRetail

Specific offering : Vitrine, First, Personal Med and 4Transport+900 department stores, +140

supermarkets, +280 building materials distributors

7 out of 10 top law firms,

10,000 lawyers

+1,600 wholesaler distributors,

20% of shippers customers also have CRM

12 million lives, +9,700 beds,

medical registers to 35 specialties

13

Distribution Logistics

Financial Services

Agrobusiness

Manufacturing

Constructionand Projects

Educational

Health

Legal

Small BusinessRetail

2,300 services providers, 400Utilities providers, 470 travel and

passengers transportation

Services

Segment approach

Strategy

International Market

Subsidiaries

Products only

Source: Forecast: Enterprise Software Markets, Worldwide, 2008-2013, 1Q09 Update

►Gartner: expected growth: 12% 2008-2013 CAGR

►IDC: TOTVS’ SMB Market Share: 31% in 2007 vs 27% in

2006 – 1st company!

► Products over 17 countries

►Excluding Brazil:

+600 clients,

+25 distribution channels,

+380 employees.Franchises

►1 subsidiary, Portugal

►1 franchisees, Angola

►+30 clients, over 6 countries

Latin America

Other geographies

14

Distribution

15

2009 Abstract

Success equation

Consistent ResultsStrong

FundamentalsSegmentApproach

Main challenges

Brand Datasul integration Distribution channels

• Investments in several brands

• Strengthening of a unique brand

• Bigger acknowledgement

• Different processes and politicsbetween Companies

• Unique Corporate ERP• Processes unification

• Negociation with Datasul development franchisees

• Distinct models and politics to each product

• Alignment of 95% of theBrazilian channels

• Uniformization of thetotality of Latin America

channels

4Q

08

4Q

09

16

Distribution channels

Evolution in TOTVS products distribution

2007

Channels divided by brand

77 direct channels

1H08

Multi-brand channels

39 TOTVS franchisees

2009

Unification concluded and newchannels in Latin America

62 Full TOTVS channels

2H08

New integration withDatasul

+47 new franchisees

4Q09 and 2009 Results

► Historical record in all revenue lines:

Net Revenue: organic growth of 14.6% compared to 4Q08, reaching R$267.427 million in 4Q09.

The year totaled R$ 988.7 million, 17% higher than 2008.

Licenses Revenue: R$65.954 million in 4Q09, 5.4% over 4Q08. Considering 2009, growth of

6,7% over last year, equivalent to R$249.4 million.

Services Revenue: growth of 8.7% (4Q09 vs. 4Q08), amounting to R$90.475 million. The

progress of 16.6% between 2009 e 2008 corresponds to R$332.1 million in 2009.

Maintenance Revenue: R$135.526 million. Growth of 18.7% in comparison to 4Q08. The year

amounted R$498.8 million or 18.1% superior to 2008.

► Costs and Expenses: lower than revenue’s growth between 4Q09 vs. 4Q08 and 2009 vs. 2008.

► EBITDA: R$64.199 million in 4Q09, 24.5% over 4Q08. 2009 Margin is 25.2%, 400 basis-point bigger

than 2008.

Financial Highlights

OperationalHighlights

► According to Gartner, TOTVS is already the 7th largest ERP Company in the world.

► Interest on Capital amouting to R$22.5 million.

► Acquisition of distribution channels, M2I and M2S in Salvador/BA.

RecentEvents

17

► License sales to 4,823 clients (new + existing clients) in the quarter. 22.9% superior to 4Q08. In the

year, 17,754 clients bought new licenses, growth of 22.1% over 2008.

► 740 new clients in 4Q09, growth of 22.7% over 4Q08.

► Client base amounts approximately 24.8 thousand active clients.

4Q09 and 2009: Revenue record in all lines

143.8167.3

204.5

259.9

292.0

128.3151.7

184.9

233.4

267.4

4Q05 4Q06 4Q07 4Q08 4Q09

Gross Revenue Net Revenue

In 4Q09, new revenue record is reached...

18

530.3611.9

734.0

940.8

1080.3

472.5549.1

662.3

844.9

988.7

2005 2006 2007 2008 2009

Gross Revenue Net Revenue

Gross and Net Revenue (R$ million) 1

(1) Values are pro forma as they include the numbers of RM Sistemas, acquired in April 2006 and Datasul, consolidated in September 2008 in the period analyzed.

Financial Performance

The gross and net revenues reached historical record in both 4Q09 and 2009.

2007 2008 2009

2,358

...with operational indicators improvement...

19

2007 2008 2009

126.5 147.1170.8

233.7

249.4

2005 2006 2007 2008 2009

... Such as the mark of 2,591 new clients in the year...

Clients Served License Revenue (R$ million) 1

Financial Performance

New Clients Base Clients

(1) Values are pro forma as they include the numbers of RM Sistemas, acquired in April 2006 and Datasul, consolidated in September 2008 in the period analyzed.

The number of served clients reached historical record in both 4Q09 and 2009.

The licenses revenue reached historical record in both 4Q09 and 2009.

2,476

2,591

8,017

12,069

15,163

…and robust growth of services and maintenance.

273.4298.0

347.1

422.3

498.8

2005 2006 2007 2008 2009

130.5 166.8

216.1

284.8

332.1

2005 2006 2007 2008 2009

20

Services Revenue (R$ million) 1 Maintenance Revenue (R$ million) 1

Financial Performance

(1) Values are pro forma as they include the numbers of RM Sistemas, acquired in April 2006 and Datasul, consolidated in September 2008 in the period analyzed.

The maintenance revenue reached historical record in both 4Q09 and 2009.

The services revenue reached historical record in both4Q09 and 2009.

EBITDA and margin grow leading to guidance review

EBITDA (R$ million) 1

88.0112.7

144.2

178.9

249.318.6%

20.5%

21.8%21.2%

25.2%

2005 2006 2007 2008 2009

Margem EBITDA

(1) Values are pro forma as they include the numbers of RM Sistemas, acquired in April 2006 and Datasul, consolidated in September 2008 in the period analyzed.(2) To complete information about the margin EBITDA guidance update. consult the 4Q09 Earnings Release.

21

Integration gains

17.0%

15.9%

5.5%

7.3%

-15.3%

Net Revenue

Cost of Services (+) R&D

G&A (+) Management fees

Selling expenses

Licenses Costs

Growth 2009 x 2008

New guidance2: EBITDA margin from 27% to 30% between 2013 and 2016

Financial Performance

2005 2006 2007 2008 2009

530.3

940.8

734.0

611.9

23.8%

24.6%

51.6%

27.3%

24.0%

48.7%

23.3%

29.4%

47.3%44.9%

30.3%

24.8%

1080.3

23.1%

30.7%

46.2%

22

Revenue Breakdown

Gross Revenue (R$ million) 1

Financial Performance

Licences Services Maintenance

(1) Values are pro forma as they include the numbers of RM Sistemas, acquired in April 2006 and Datasul, consolidated in September 2008 in the period analyzed.

90.7

118.410.7%

12.0%

2008 2009

(1) Values are pro forma as they include the numbers of RM Sistemas, acquired in April 2006 and Datasul, consolidated in September 2008 in the period analyzed.

(2) Excluding depreciation. amortization expenses and non-recurring expenses.

25.4 30.5

10.9%11.4%

4Q08 4Q09

19.2 19.3

8.2%7.2%

4Q08 4Q09

5.8

10.3 2.5%

3.8%

4Q08 4Q09

74.5 76.3

8.8%

7.7%

2008 2009

26.030.7

3.1% 3.1%

2008 2009

665.9 739.4

2008 2009

181.9 203.2

4Q08 4Q09

23

R&D (R$ million) x R&D / NR Costs and Expenses2 (R$ million)

G&A (R$ million) x G&A / NR Marketing Expenses (R$ million) x Mkt. Exp. / NR

Financial Performance

Costs and Expenses Dashboard 1

Financial Dashboard 1

(1) Values are pro forma as they include the numbers of RM Sistemas, acquired in April 2006 and Datasul, consolidated in September 2008 in the period analyzed.

(2) Net income adjusted refers to net income excluding the effects of goodwill, amortization, net of tax. Hence, it can be understood as net income from the Company’s regular operations.

Financial and Operational Performances

24

R$ million 4Q08 4Q09 Δ Q/Q 2008 2009 Δ Y/Y

Net Revenue 233.427 267.427 14.6% 844.854 988.679 17.0%

Gross Profit 152.594 176.757 15.8% 550.185 669.092 21.6%

EBITDA 51.545 64.199 24.5% 178.936 249.265 39.3%

EBITDA Margin 22.1% 24.0% 190 b.p. 21.2% 25.2% 400 b.p.

Net Income

Adjusted 2 32.552 45.495 39.8% 129.292 159.924 23.7%

(-) Cash: R$207.7 million

PROSOFT: 3Q08, BNDES

► Amount: R$ 209.8 million

► Current estimated cost: 8.5 ~ 9% p.a.

► Period: 2 + 5 years

Debt by the end of the period : R$427.2 million

Cash and Debt on 12/31/2009

Debentures: 3Q08, Debentures holders (BNDES and others)

► Amount: R$ 217.4 million

► Current estimated cost: 10% p.a.

► Period: 8 + 3 years

= Net debt by the end of the period: R$(11.5) million

Net Debt

25

(-) Short-term trade accounts receivable: R$231.0 million

= Net debt by the end of the period: R$219.5 million (0.9 x EBITDA 2009)

What it was like in 2009

Challenges

26

» REVENUE RECORD1

• Licenses: R$249.4 million, +7%• Services: R$332.1 million, +17%• Maintenance: R$498.8 million, +18%

» OPERATIONAL RECORD1

• New clients: 2,588, +5%• Base clients: 15,163, +26%

» EBITDA RECORD1

• R$249.3 million, +39%• Margin of 25.2% , +400 basis-point

2009 ResultsIn 4Q08

2010 Main drivers(1) Growth over 2008

Fundamentals + Execution

The material that follows is a presentation of general background information about TOTVS and Datasul activities as of the date of the

presentation in February 2010.

It is information 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.

Contacts

ir@totvs.com

www.totvs.com/ir

QUESTIONS

Safe harbor

27