institutional presentation - ir.totvs.com.br presentation_totvs... · fluig & mobile 2 years*...
TRANSCRIPT
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
* 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
totvs.com
@totvs
blog.totvs.comcompany/totvs
fluig.com
#WEARETOTVERS
The success of our client is our success
We value competent people who are nice people
Technology + Knowledge are our DNA
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