TOTVS announces record net profits for 4th quarter of 2011, growing 43%

Its net profit has grown 13.3% between 2010 and 2011, making R$1.279,160 million

São Paulo, January 31, 2012 - TOTVS S.A. (BM&FBOVESPA: TOTS3), leader in developing and commercializing corporate management software, services and technology, announces today its 2011 full-year profits as well as those of 4Q11. TOTVS’ net profit has grown 13.3% between 2010 and 2011, making R$1.279,160 million; and 13.3% between 4Q10 and 4Q11, reaching R$335,066 million.

Its net profit in 2011 jumped 23.2% comparing to the previous year, reaching R$169,383 million; and 42.9% in 4Q11, if compared to 4Q10, making R$60.030 million – the biggest ever in the company history. The growth in the net profits resulted in a dividend sharing proposal to be submitted to deliberations in General Shareholders Meeting, of R$99,511 million, corresponding to R$0,6240 per share, which represents an increase of 12.7% over the dividends per 2010 share.

Profit with licensing fees reached R$328,977 million in 2011, 8.0% over 2010; and R$80,394 million in 4Q11, 6.6% over 4Q10. The profit of services presented a growth of 11.1% between 2010 and 2011, making R$408,545 million. In 4Q11, it reached R$ 111,810 million, 13.7% over 4Q10. But maintenance profit made R$649,381 million in 2011, a jump of 15.7% compared to 2010; and R$ 171,552 million in 4Q11, 17.5% over 4Q10.

TOTVS registered EBITDA (profits before interest rates, taxes, depreciations and amortizations) of R$308,683 million in 2011, growing 6.6% over 2010; and R$87,052 million in 4Q11, 11.9% higher than 4Q10 and 12.8% over 3Q11.

According to the latest edition of the study “Latin America Semiannual ERM Tracker” by IDC, with the information of first semester of 2011, TOTVS has increased its total participation in the Brazilian ERP market to 50% (+ 5,3% over the same period of 2010). But in the Brazilian market of small and mid-sized businesses, according to IDC, the company has a participation of 71.9%, 4.1% above the same period of 2010.

Testimonial:
Laércio Cosentino, president of TOTVS, about the company results:

“TOTVS strives for a global reference, being the natural option for foreign companies settling in Brazil and, at the same time, of Brazilian companies going global, besides being the natural option for companies in countries where the company intends to enter. But we will not pay less attention to the countless opportunities of the Brazilian software market, which presents a low penetration and high growth rate in the mid and long run, mainly when referring to small and mid-sized businesses. This scenario offers TOTVS a great opportunity for the years to come.”

About TOTVS
Absolute leader in Brazil and Latin America, TOTVS is a software, services and technology company. It is ranked the sixth developer of integrated management systems (ERP) globally and the first one in both emerging countries and internationally, being a leader also in the small and mid-sized business segment in Latin America. TOTVS was the first company in the IT segment in Latin America to go public and it is listed in the BOVESPA New Market. Its ERP operations are complemented by a wide portfolio of vertical solutions as well as services like Consultancy, BPO and Cloud Computing. Further information is available at www.totvs.com.