TOTVS (TOTS3) investor relations material

Company evolution and milestones

• Founded in 1983, expanded internationally in 1997, and went public in 2006.

• Pioneered exclusive franchise distribution and developed its own programming language.

• Acquired major players like RM Sistemas and Datasul, consolidating the Brazilian ERP market.

• Launched cloud operations in 2014 and subscription models in 2015.

• Recent focus on AI, with the launch of LYNN, Brazil's first B2B AI foundation, and a JV with Itaú for Techfin.

Financial performance and scale

• Achieved 16% YoY revenue growth in 1Q26, with over 90% recurring revenue.

• Adjusted EBITDA reached R$455 million (24% YoY growth) and a 28.7% margin.

• Adjusted net income was R$252 million (17% YoY growth), with a 15.8% margin.

• EPS increased 21% YoY to 1.63 in 1Q26.

• Serves over 70,000 clients, with a significant presence across Latin America and the US.

Business model and governance

• Recurring revenue and high client loyalty drive high retention rates.

• Offers a broad portfolio beyond ERP, including Techfin and RD Station for sales and customer experience.

• Growth strategy combines organic expansion, M&A, and partnerships.

• Operates with high corporate governance standards, no controlling shareholder, and a majority independent board.

• Nearly half of B3-listed companies are clients, with 62% of them for over 10 years.