Institutional Presentation

November / December 2009

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 2008PF

941

21.2%

24x EBITDA10x Revenue

LTM²

12.4%

126

2003

Growth:14x EBITDA

7.5x Revenue

24.8%

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

1,048

(1) EBITDA Margin does not include extraordinary expenses(2) Last Twelve Months. from Oct’08 to Sep’09

Success Track Record

2

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

Core

Digital TV

Synergies Synergies

TOTVS Customer Service and Relationship

Software – Base and New Clients ServicesExpanded Business

Technology

ERP CRMBusiness

Intelligence

VerticalModules

Consulting

Value-Added Service2

3

TOTVS

+ 135 DistributionChannels

+ 24,200 customers~ 5,000 direct employees¹

Flexible Technology

4

Fundamentals

1) Companies’ Basic need

2) Under-penetrated

market

3) Environment

4) Macro/Marketchanges

Eletricity, water, telephone and software

Brazilian SMB marketis 7.0% penetrated

according to Gartner

Latin America

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

TOTVS 2009 Success EquationStrong

Fundamentals

Technology and Product

Fundamentals and Business Model

Distribution

5

TOTVS’ Differentials

Catalysts

• Low penetrated market

• Digital Bookkeeping (SPED)

• Software as Utility

• Efficiency gains

• Higher complexity

• Added valueServices offering

• Digital Bookkeeping (SPED)

• Fiscal changes

• Features Enhancement

• Low average ticket

• Software as Utility

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 2008

6

Market

Estimates

Latin America ERP spend

3.7% 3.2% 3.0%

8.9% 8.4%8.0%

38.5%41.1% 41.0%

14.6%

16.2%18.3%

15.3%

13.3% 12.3%

2006 2007 2008

Market Share LA

A

B

C

D

8th Worldwide and leadership in Brazil

7

Source: IDC Latin America Semiannual ERM Applications Tracker 2008

163

179

186

208

210

216

247

284

353

458

796

1,313

1,696

2,719

5,732

Kenexa

IBM

Epicor

Cegid

Agresso

Concur

Exact

TOTVS

Lawson

Kronos

Microsoft

Infor

Sage

Oracle

SAP

License and maintenance revenues, in USD million

Source: Gartner - ERP Software, Worldwide, 2008.

Market

4.0% 3.3% 2.9%

5.7% 5.4% 5.0%

10.6%9.0% 8.4%

32.6% 34.2%32.0%

33.5%35.3%

38.7%

2006 2007 2008

2008 ERP Worldwide Ranking Market Share Brazil

A

BCD

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)

~ 24,200Active customers

64.2%Market Share

~ 37,700‘using’ ERP

468,000SMB market size

~ 8.0 %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

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

12

Distribution

TOTVS 2009 Success Equation

Fundamentals + Focus

+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

13

Distribution Logistics

Financial Services

Agrobusiness

Manufacturing

Constructionand Projects

Services

Educational

Health

Legal

Small BusinessRetail

Strong Fundamentals

SegmentApproach

TOTVS 2009 Success Equation

Fundamentals + Focus

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

14

Distribution Logistics

Financial Services

Agrobusiness

Manufacturing

Constructionand Projects

Educational

Health

Legal

Small BusinessRetail

Strong Fundamentals

SegmentApproach

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

passengers transportation

Services

TOTVS 2009 Success Equation

Results 3Q09

ConsistentResults

► Historical record in all revenue lines:

Net Revenue: organic growth of 15.6% compared to 3Q08, reaching R$252.596 million in

3Q09.

Licenses Revenue: R$65.782 million in 3Q09, 10.9% above 3Q08.

Services Revenue: growth of 15.8% (3Q09 vs. 3Q08). amounting to R$87.064 million.

Maintenance Revenue: R$123.268 million. Growth of 14.0% in comparison to 3Q08.

► Costs and Expenses: once again lower than revenue’s growth (3Q09 vs. 3Q08).

► EBITDA: R$66.450 million in 3Q09. 49.8% over 3Q08. Margin reached 26.3% in the quarter.

+600 basis points (3Q09 vs. Q08). 9M09 closes with margin over 25%.

► 4,676 clients served (new + existing clients) in the quarter. 17.6% over 2Q09.

► 827 new clients in 3Q09. additional 260 compared to 2Q09 and 45.9% over 2Q09. New record.

► Client base amounts approximately 24.2 thousand active clients.

Financial Highlights

OperationalHighlights

► Franchising Model Evolution = TOTVS Franchises

► TOTVS FINANCIAL SERVICES = YMF + TOOLS + TOTALBANCO

► 2008 Marketshare growth in Brazil (38.7%, +340b.p. vs 2007) and Latin America (18.3%, +210

b.p.): the only company in the top5 to post growth in both markets.

RecentEvents

15

Strong Fundamentals

SegmentApproach

Gross and Net Revenue (R$ million) 1

136.5152.2

187.6

242.6

276.1

120.2136.2

168.5

218.6

252.6

3Q05 3Q06 3Q07 3Q08 3Q09

Gross Revenue Net Revenue

New Record in Revenue...

242.6259.9 249.8

262.5276.1

218.6233.4 228.4

240.3252.6

3Q08 4Q08 1Q09 2Q09 3Q09

Gross Revenue Net Revenue

16

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.

HistoricalRecord

License Revenue (R$ million) 1

Financial Performance

17

31.5 34.5

42.5

59.3

65.8

3Q05 3Q06 3Q07 3Q08 3Q09

705

603

457

567

827

3Q08 4Q08 1Q09 2Q09 3Q09

New Clients

3099

3321

3822

3409

3849

3Q08 4Q08 1Q09 2Q09 3Q09

Clients Served

Base Clients

... with licenses surpassing 2Q09...

(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.

HistoricalRecord

70.375.2

88.4

108.1

123.3

3Q05 3Q06 3Q07 3Q08 3Q09

34.8 42.5

56.6

75.2

87.1

3Q05 3Q06 3Q07 3Q08 3Q09

18

…maintenance and services climbing significantly…

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

Financial Performance

HistoricalRecord

(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.

EBITDA (R$ milhões) 1

44.4

51.5

59.9 58.7

66.520.3%

22.1%

26.2%

24.4%

26.3%

3Q08 4Q08 1Q09 2Q09 3Q09

21.8 26.1

37.0

44.4

66.5 18.1%19.2%

21.9%20.3%

26.3%

3Q05 3Q06 3Q07 3Q08 3Q09

19

Financial Performance

... delivering EBITDA growth

EBITDA Margin EBITDA Margin

HistoricalRecord

(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.

3Q08 3Q09

242.6

276.1

2005 2006 2007 2008

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%

30.2%

9M08 9M09

680.9

788.4

45.3% 46.1%

29.6%

30.6%

23.3%

25.1%24.4%

31.0%

44.6%

23.8%

31.5%

44.7%

20

Revenue Breakdown

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.

Gross Revenue (R$ million) 1

Licences Services Maintenance

Scalability 1

18.0%

15.7%

9.6%

0.6%

-15.6%

Net Revenue

Cost of Services (+) R&D

G&A (+) Management fees

Selling expenses

Licenses Costs

Growth 9M09 x 9M08

21

G&A as % of the Net Revenue

Scalability

Financial Performance

13.0%

12.0%

11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

3Q06 3Q07 3Q08 3Q09

(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.

24.2

32.311.1%

12.8%

3Q08 3Q09

18.717.5

8.6%

6.9%

3Q08 3Q09

8.8 8.1

4.0%

3.2%

3Q08 3Q09

55.357.0

9.0%7.9%

9M08 9M09

20.2 20.4

3.3% 2.8%

9M08 9M09

484.0 536.2

9M08 9M09

174.2 186.1

3Q08 3Q09

65.3

87.910.7%

12.2%

9M08 9M09

22

Financial Performance

Costs and Expenses 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) Excluding depreciation. amortization expenses and non-recurring expenses.

R&D (R$ million) x R&D / NR

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

Costs and Expenses2 (R$ million)

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 Performance

23

R$ million 3Q08 3Q09 Δ Q/Q 9M08 9M09 Δ 9M/9M

Net Revenue 218.559 252.596 15.6% 611.427 721.252 18.0%

Gross Profit 142.868 173.340 21.3% 397.591 492.335 23.8%

EBITDA 44.355 66.450 49.8% 127.391 185.066 45.3%

EBITDA Margin 20.3% 26.3% 600 p.b. 20.8% 25.7% 490 p.b.

Net Income

Adjusted 2 34.024 40.570 19.2% 96.741 114.429 18.3%

Cash by the end of the period: R$232.1 million

► When: 3Q08

► Source: BNDES

► Amount: R$ 212.5 million

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

► Period: 2 + 5 years

Debt by the end of the period: R$423.6 million

Cash and debt on 30th September

Prosoft

► When: 3Q08

► Source: debentures holders (BNDES and others)

► Amount: R$ 211.1 million

► Current estimated cost: 10% p.a.

► Period: 8 + 3 years

Debentures

Net debt by the end of the period: R$191.5 million

Net Debt

24

Current scenario

Scenario

25

» REVENUE RECORD• Licenses: R$65.8 million• Services: R$87.1 million• Maintenance: R$123.3 million

» OPERACIONAL RECORD1

• New clients: 827; +46%• Base clients: 3,849; +12.9%

» EBITDA RECORD• R$66.5 million• Margin of 26.3%

3Q09 Results

(1) Growth over 2Q09

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

presentation in November 2009.

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

26