1Q17 Omni Presentation Safe harbor statement The information - PowerPoint PPT Presentation

1Q17 Omni Presentation

Safe harbor statement The information contained herein has been prepared by Linx S.A. (“Linx”or the “Company”) and this material does not constitute offering material in whole or part. This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving investment advice. It is not targeted to the specific investment objectives financial situation or particular needs of any recipient. No representation or warranty either express or implied is made as to the accuracy completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without notice and Linx is not under obligation to update or keep current the information contained herein. The Company their respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. This material is intended solely for the use of persons who are market counterparties of intermediate customers (as detailed in the FSA Rules) and is only available to such persons. The information contained herein does no apply to and should not be relied upon by private customers. You should consult your own legal regulatory tax business. Investment, financial and accounting advisers to the extent that you deem necessary and you must make your own investment hedging or trading decision based upon your own judgment and advice from such advisers as you deem necessary and not upon any view expressed in this material. 2

LINX at a glance: Largest and Broadest Retail Technology Platform Apparel H I G H L I G H T S 2 0 1 6 ~45,000 Clients eCommerce Drugstores 84% Recurring Revenues 100% ~99% Client Retention Rates Gas Retail Food Service Stations Focus 19% 4-Year Net Revenue CAGR Department Car Dealers Stores 25.1% Adjusted EBITDA Margin* 37.5% Market Share Service Retail 3 * Adjusted for: (i) partial reversion of an earn-out of Neemu and Chaordic; (ii) an adjustment related to the acquisition of Rezende; (iii) the duplicated condominium and maintenance expenses in São Paulo and Recife due to the move to new locations in these cities.

Our progress since IPO A T I P O T O D AY 850 Leadership Market Share 29% 37.5% bps 1,500 Cloud % of Cloud on Recurring Revenues 30% 45% bps +4 Retail Business Units Number of Retail Business Units 5 9 271% Clients 12,000 44,467 Scale LTM Gross Revenue R$ ‘000) 224,478 586,462 161% LTM EBITDA (R$ ‘000)* 67,037 129,971 94% Profitability LTM Cash Earnings (R$ ‘000)* 47,474 118,839 150% Acquisitions Number of Acquisitions 11 22 +11 “At IPO” adjusted for CSI earn out. 4 “Today” adjusted for: (i) partial reversion of an earn-out of Neemu and Chaordic; (ii) an adjustment related to the acquisition of Rezende; (iii) the duplicated condominium and maintenance expenses in São Paulo and Recife due to the move to new locations in these cities.

Mission ENABLE RETAILERS TO BECOME MORE PROFITABLE, COMPETITIVE AND SUSTAINABLE THROUGH TECHNOLOGY IN-STORE ONLINE 5

Broadest retail technology platform 6

LINX is uniquely positioned to capture the opportunity UNIQUELY POSITIONED ACROSS COMPETITIVE LANDSCAPE LEADING MARKET SHARE New International Regional Entrants Companies Providers Scale and Leadership Expertise and Focus in Brazil Retail 37.5% Breadth of Retail Verticals Market Share Geographical Coverage 850 bps Increase Across Brazil Since 2011 Company Sizes Integrated Technology Platform 7

Multiple drivers of growth 1 2 3 4 5 Driver New products & Acquisitions Cross-sell IT spending Client’s growth partnerships New Share of Wallet Opportunity to Increased software Retail growth Opportunity capacities: access marketing penetration Expansion of the technologies, and trade Omni-channel Formalization, verticals, marketing in geographic digitalization process geographical addition to IT footprint as and spending retailers professionalization Multiple drivers of growth 8

Acquisition strategy 1 Omni-Channel Technology Geographies Verticals 9

Acquisition strategy 1 Acquisition Strategy Status Estimated What do we seek? NOR Reinforce Add Retail Add Add Target Negotiating Target (R$ 000’s) Vertical Vertical Segment Technology Example: Target A 50 - 100 Company Year 1 Year 3 Target B 50 - 100 Revenue 10M 14M Target C 25 - 50 EBITDA 1.5M 3.6M Target D 25 - 50 Important Answers Target E 0 - 25 Stand alone growth between 15 and 20%? Margin expansion for Linx average? Target F 25 - 50 Target G 25 - 50 We pay an Target H 0 - 25 Versus average of 2.5X 5x Linx LTM Revenue 10

Cross-sell 2 Omni-Channel platform in the Cloud ENABLE RETAILERS TO SELL MORE PERSONALIZATION BIG DATA INCREASED TRANSACTIONAL ENGAGEMENT CAPABILITIES IN-STORE WEB STORE DEVICES MOBILE APPS KIOSKS ONLINE & TARGETED ANALYTICS MARKETING MARKET PLACES IN-STORE SOCIAL MEDIA Internal processes productivity ERP POS CRM TEF ELECTRONIC INVOICING CONNECTIVITY 11

3 New products and partnerships Cloud Systems transmit, process, analyze and deliver online data to the retail industry daily Drugstore Retailers Food & Beverage and HPC Companies Clients will be able to: Retail Intelligence  Make real time decisions  Perform ROI analysis  Focus on stores with the Linx technology can directly make real time decisions with promotions, largest return potential sales, training and general communication with the retail industry New market with large number of stores  Integration of Linx’s software to Itaú’s financing system DMS Partnership - Automate the process of lead generation with Itaucard - Provide a differentiated customer experience  Multi-brand car dealerships: Currently not served by Linx; development of a specialized ERP product, which will be distributed by Itaú, creates an unique opportunity Generate value in two new markets: payments and software to small and micro retailers  Development of Linx´s applications related to payment solutions Partnership with  Efforts of both parties to promote: Redecard - Payment solutions of Rede - Linx´s management solutions, including the TEF 12

Large, high growth, & underserved market opportunity 4 Continued Growth in Brazil Retail Management Software Large and Underpenetrated Total Addressable Market in Brazil Retail Management Software (R$ MM) 10,8% 1.294 12,0% 1.184 1.029 876 777 661 77,2% 556 Total Addressable Market: R$9.5 billion 2011 2012 2013 2014 2015 2016E 2017E Current Spend on Management software Current Spend on Other software Potential Spend 13 Source: Gartner, IDC

LINX’s customers provide validation of leadership 5 PRESENCE IN BRAZILIAN LEADING RETAIL CHAINS INTERNATIONAL RETAILERS (50%+ Share) 14 Source: Euromonitor, Abras, Abrafarma, IBEVAR

Large, high growth, & underserved market opportunity 5 Ipiranga Partnership Boticário (Linx UX) Partnership Habib’s and Volkswagen Partnership Important Client in the Retail Why Linx as a Partner ? Habib’s Segment  Know-how in retail and capillarity  Long-term strategic alignment of customer experience and innovation  With ~400 stores, Habib’s is currently  Boticário is the largest retailer in Brazil  Partnership concept the largest fast-food retailer in Brazil  Owned stores to initially receive the  Service recognized by the market product and the largest Arabic fast-food retailer in the  Significant growth potential into other World stores Ipiranga: Unique Opportunity  400 stores in 2016 with potential of Volkswagen ~4,000 stores  Second largest fuel distributor in Brazil  The largest convenience store network and loyalty program in Brazil  With more than 600 stores,  Excellence in the implementation of Volkswagen is currently the largest 400 Stores Potential of retail business model in 2016 ~4,000 stores automotive company in Brazil 15 Source: Gartner, IDC

Proven leadership team and solid organizational structure Organizational Structure VERTICAL DIRECTORS Connectivity Gas Car Service Apparel Drugstores Food Service Big Retail eCommerce and Cross Stations Dealers Retail Offers Sales CORPORATE DIRECTORS Customer support Services / Implementation R&D Shared Services Bureau (Marketing, Human Resources, Billing, Finance, Legal, Back Office...) 16

Financial Highlights

Strong and consistent revenue growth GROSS REVENUE GROWTH RECURRING REVENUE GROWTH (R$ ‘000) (R$ ‘000) 569.205 505.233 89.455 95.468 413.271 87.403 331.334 479.750 74.049 409.765 479.750 153.341 409.765 325.868 136.084 23.940 325.868 257.285 20.104 257.285 129.401 115.980 115.980 129.401 1Q16 1Q17 1Q16 1Q17 2013 2014 2015 2016 2013 2014 2015 2016 Recurring Revenues Service Revenues 18

High profitability EBITDA (R$ ‘000) AND EBITDA MARGIN 28,3% 27,9% 27,1% 25,6% 25,8% 25,1% 126.491 121.630 104.362 82.457 33.596 30.116 1Q16* 1Q17* 2013 2014 2015 2016* EBITDA EBITDA margin * Adjusted EBITDA 19