Corporate Presentation

September 2013
 Section I

Business Overview
 Positivo Informática: A Growth and Success Story

 Created to  Strong position with  Leveraging to build an expertise to reach retail • Maintain
supply the government: leadership of
Brazilian price, reliability and the retail
schools’ technical assistance segment
technolog
y needs • Strong
2,416 2,409
position in the
government
segment
1,980 • Strengthen
position in the
1,778 corporate
1,604 1,586 segment

1,389 • Efficiency
gains
+44.6%
1,097 • Vertical
integration
opportunities
835

379

101
19 24 31 21

1989 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H12 1H13

PC and Tablets Sales (thousand units)

3
Business Units

Positivo holds a leadership position in the hardware market in Brazil and has pioneered the
educational technology segment development in the country

Hardware Educational Technology

Cell phones Learning Interactive Max

PCs Tablets
Tables Boards Câmera

Educational Educational
Portals Software

1H13 Revenue of R$ 1,230.6 mm 1H13 Revenue of R$ 14.6 mm

98.8% of Net Revenue 1.2% of Net Revenue
Extensive operations in Brazil and international expansion

Main Unit: Curitiba (PR)

- Production of desktops, notebooks, all-in-ones,
motherboards, cabinets and tablets
- Built-up area of 59,539 m²
- 3,412 factory-floor employees
Manaus (AM)
35,000 PCs/month

BRAZIL

Ilhéus (BA)
10,000 PCs and
70,000 monitors/month

Curitiba (PR)
New Unit: Tierra del Fuego
380,000 PCs and tablets, (Argentina)
180,000 motherboards,
60,000 memory boards and
ARGENTINA 60,000 cabinets/mês. - First PC factory in Argentina
- Joint venture with BGH

Tierra del Fuego (Argentina)

60,000 PCs and
50,000 motherboards/month

5
 Outright market leader in Brazil and outstanding position in
Argentina
Market Share Brazil: Total Market 20121 Market Share Argentina: Total Market 20122

13.5% 15.4%

A: 10.7% I: 12.6%
A: 16.1%

B: 8.0%
G: 11.3%
C: 7.9%
Others + Gray
Market: 48.5% Others + Gray J: 7.2%
D: 7.5% Market: 34.9%
K: 2.5%
E: 3.9%

Relative Advantage Brazil 20121 Relative Advantage Argentina 20122

Relative advantage - Brazil PCs Relative advantage - Argentina Notebooks

Positivo 1st Positivo BGH 1o

Company A 1,3x Company A 1,03x

Company B 1,7x Company G 1,62x

Company C 1,7x Company I 3,65x

1 Source: IDC Brazil

² Source: IDC Argentina, considering notebook market only 6
Solid relations and the most extensive distribution network
in the retail segment

Government Market Share (Brazil) –

Retail Market Share (Brazil) – 20121
20121

20.6% 36.1%

A: 17.2%
Others + Gray
Market: 9.3%
E: 21.6%
Others + Gray C: 9.2%
Market: 36.6% G: 6.8%

B: 6.8% B: 7.0%
H: 4.8% D: 7.9% F: 11.2%

 Undisputed leader for 8 consecutive years  Outright leader in all the main bids for the past
 The most recognized brand 26 consecutive quarters
 Opportunities in the North and Northeast regions of
the country  Team with more than 20 years of experience
 Retail presence with four brands  Exclusive team focused on meeting government
 Products available in more than 9,954 retail points of demands: MEC, Minicom, etc.
sale
 Present in the country’s 25 biggest retail chains
1 Source: IDC Brazil
Competitive Advantages

Greater national
scale

Agile and
Strong relationship
experienced
with retailers
management

Innovative, Deep knowledge of

customized and the Brazilian
creative products consumer
 Section II

Industry Overview
In order to be competitive, computers must be
manufactured in Brazil

Tax Legislation Year of Expiration Imported PC Brazilian PC

1 – Federal Taxes

Import Tax (II) Various federal laws None 16% on average 2% on average
Sales Taxes
Laws 8,248/91,
- IPI¹ Through 2019 15% 0.75%
10,176/00 and 11,077/04
Laws: 11,196/05
- PIS/ COFINS² Through 2014 9.25% 0%
and 12,249/10

2 – State Taxes
Sales Taxes
- ICMS³ Various State Laws None 12% 0%
Total taxes (average) 52.25% 2.75%
¹ Reduction in IPI is a function of compliance with the Basic Productive Process (BPP) norms and R&D investments
² On sales of PCs produced in Brazil, according to BPP, costing up to R$ 4,000. On indirect sales, 9.25% of PIS/COFINS
³ Average effective rate on interstate sales involving the states in the South and Southeast regions

Indicative -49.5%
 Federal benefits unlikely to change: difference
- Creates jobs
- More affordable prices, ensuring greater access to PCs by Brazil’s population
- Oficial market has grown substantially, increasing tax revenue
- Massive (and growing) component imports, reducing the risk of disputes within the WTO
10
Industry Overview

 Jobs created by the industry: 183,000¹

 Local R&D investments of 3% of revenue from

subsidized PCs

 Expansion of the Brazilian PC market²: 15.5 million

units in 2012, 2.5x more than in 2005

 Decline of the grey market²: market share fell from

73% (2005) to 23% (2012)

 Massive (and growing) component imports, reducing

the risk of disputes within the WTO

Only case of a regional player The local production model

leading an important market did not hinder market development

(1) Source: ABINEE. Panorama Econômico e Desempenho Setorial 2013.

(2) Source IDC Brazil
Social mobility, combined with still low penetration, fuel the enormous
potential demand in the PC market

Breakdown of Brazilian Population by Income Group Household PC Penetration

2005 2011 Montlhy

Income¹ (R$) Income
2006* 2008* 2010 2012
Group

A/B 15% 22% 2,907 A 86% 95% 93% 98%

B 63% 70% 76% 84%

C 34% 54% 1,450 C 19% 25% 34% 44%

DE 3% 3% 5% 9%

D/E Total 20% 25% 35% 46%

51% 24% 792
*Excludes the rural population, which was included in 2010 e 2012
Source: TIC 2012

Source: O Observador - IPSOS 2012 ¹ Average per household

Disposable Income:
C Group x Minimum PC Installment (R$) Homes with desktops and notebooks

363.00
86%
72%
59%
49%
122.00
31%
19% 17%
68.0% 83.00 -51.5 p.p. 59.90 16.5% 6%
5% 1% 4% 0%
A B C D/E
2005 2011
Disposable income Minimum PC installment Desktops Notebooks Tablets
Source: O Observador - IPSOS 2012 Source: TIC Domicílios 2012 – CGI

C group disposable income is more than sufficient to cope with a PC installment

12
 Section III
2Q13 Financial Results
Growth of revenue fueled by strong performance in the government
and corporate markets and new business lines
Net Revenue (R$ million) Positivo – Average Price Trends¹ (R$)
+31.9% 1,245
8.3%
+25.3% 944 8.9% 1,287
1,147 1,202 1,170
6.3%
1.3% 1,020
632
504 51.7%
7.3% 55.2% 983 940
7.0% 7.9% 880 915
1.3% 818

56.0% 910
59.4% 811
37.2% 31.1% 541 494 446
32.3% 28.8%
2Q12 2Q13 1H12 1H13
2Q12 3Q12 4Q12 1T13 2Q13
Desktops Notebooks Tablets Others
Desktops Notebooks Tablets

Net Revenue Breakdown

Desktops: -9.1% vs. 1Q13
Hw Retail Hw Retail
• Lower share in the government and corporate markets and
79.6% 62.0%
high volume of sales of desktops without monitor
Notebooks: -2.7% vs. 1Q13
Hw Gov.
Hw Gov.
11.0%
27.1% • Increased share of educational netbooks in the product
+17.6 p.p. mix
Hw Corp.
Hw Corp. • Conventional notebooks fell by 1.9% due to higher share
7.4%
9.7% of secondary brands and entry-level configurations
E.T.
2.0% E.T. Tablets: -9.8% vs. 1Q13
2Q12 1.2% 2Q13 • Greater concentration of low-price equipment related to
agreement with the Ministry of Education
HW: Hardware/ Gov.: Government/ Corp.: Corporate/ E.T.: Educational Technology
(1) Includes only computers sold in the Brazilian market
14
 Gross margin fell to 20.7%, impacted by the appreciation of the
U.S. dollar and deliveries of educational tablets and netbooks

COGS: Raw materials and components and Others1

Raw materials and components: 74.8% of
net revenue in 2Q13
77.6% 78.4% 79.3%
74.3% 75.1% • +5.0 p.p. vs. 2Q12 and +0.7 p.p. vs. 1Q13

69.9% 73.4% 71.1% 74.1% 74.8%  high average imported input dollar price
(R$2.06 in 2Q13)

 greater impact on components with high

inventory turnover ratio such as processors
4.0% 3.7% 3.5% 3.8% 3.9% and operating systems

2Q12 3Q12 4Q12 1Q13 2Q13  increase in memory card prices in the
international market
COGS Raw materials Others
and components
 higher sales of netbooks and tablets for
Gross margin1 educational projects, whose raw material and
component costs account for a larger share of
their cost structure

25.7% 24.9% Other costs: 3.9% of net revenue in 2Q13

22.4% 21.6% 20.7%
• Remained flat over 2Q12 and 1Q13:
 Impact from collective bargaining
agreement as of March offset by efficiency
2Q12 3Q12 4Q12 1Q13 2Q13 gains

(1) In % of net revenue

15
Lower selling expenses due to revision of marketing expenses and
higher revenue from the government and corporate markets

Selling Expenses¹ General and Administrative Expenses (R$ million)

18.1%
16.4% 17.1%
15.0% 15.6% 32.3
26.3 27.1
24.9
7.1%
22.2
6.0% 7.0%
5.6% 5.4%
21.1 22.1 20.4 22.1
6.4% 5.6% 19.2
4.5% 5.3% 5.4%
4.3% 4.2% 5.2% 4.1%
3.4%

2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13
Others Tech. Assist. Marketing Sales Excludes R&D and non-recurring items

Selling expenses: G&A expenses:

● Marketing: 5.4% of net revenue, the lowest level in 6 years
● +8.7% vs. 2Q12 and +3.1% vs. 1Q13:
 revision of commercial conditions with retail to adjust profitability
of the sales after the appreciation of the U.S. dollar
 high share of revenue from government and corporate markets
• Technical Assistance: 5.4% of net revenue (-1.0 p.p. vs. 2Q12)
 lower component scrapping expenses and improved fixed cost
dilution
 effect from the collective bargaining agreement as
of march, with a full impact on 2Q13
 non-recurring amounts related to termination
expenses and consulting services focused on
efficiency-enhancing projects, which, if excluded,
would reduce year-on-year increase to 4.7%

(1) In % of net revenue

16
 Adjusted EBITDA of R$28.4 million in 2Q13 (+16.9%) and net result
impacted by expenses with exchange variation

Adjusted EBITDA (R$ million) and Margin¹ Net Margin¹

4.7% 5.2% 5.1% 4.5%

4.8%

4.1% 3.9% 4.1% 4.5% 1.5% 1.9%

1.4%
3.0% 0.3%
-1.3%

24.3 23.8 33.6 31.0 28.4

2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13
- - - Adjusted
Adjusted EBITDA of R$59.5 million in 1H13 Net Income of R$3.5 million in 1H13

Financial Result (R$ million)

2Q12 3Q12 4Q12 1Q13 2Q13

Financial Result:
(5.7) (5.0) • Net expense of R$21.5 million in 2Q13, impacted by the
exchange variation negative balance of R$14.0 million
(11.8)
(14.6) • hedge instruments covered 43.0% of FX losses in the
period
(21.5)

(1) In % of net revenue

17
Operating cash flow amounted to R$164.8 million in 1H13, despite
strong revenue growth
Operating
Cash Flow – 2Q13 (R$ million) cash
flow

101.9 72.8 (7.5)

65.3

(8.2) 12.5 (33.4)

Depreciation Other assets Working Reduction in

Net income & amortization & liabilities capital Investments net debt

Operating cash flow trends (R$ million)

146.1
127.3
91.9 72.8
55.1 57.0

(14.6)
(76.6) (73.5)
(137.4)

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

18
Improvement of working capital led to a reduction in debt, which was
also stretched after a new loan contracted from BNDES

Cash Cycle Trends3 (days) Net Debt with Banks (R$ million)*
100 374.5

84 85
81 78 75 286.5 290.4
78 86
78 225.1
75 74 65

55 60 131.2
38 50 48
40

103% 44% 31% 37% 73%

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13
Accounts receivable¹ Inventories² Trade accounts Net Debt BNDES loans
payable² *Includes financial instruments
¹In days of net revenue ²In days of COGS ³Excludes materials in transit

Cash Conversion Cycle Trends (days) Working Capital as % of Net Revenue4

33.4% 36.1%
30.5%
131 25.9% 26.7%
120 24.9%
114 109
103
90

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
4 In % of net revenue in the last 12 months

Release of the 1st tranche (out of 3 tranches) of the loan from BNDES in 2Q13, totaling up to R$173.1 million

19
Investments in 1H13 represented half of the 1H12 level, in line
with the Company’s goal of greater focus on cash generation

Capex (R$ million)

Investments made in 2Q13:

65.4
• Expansion of the Manaus plant

• Nominal production capacity increased from

-38.4%
20,000 to 35,000 PCs per month

• Expansion of warehousing area

36.4
40.3 • R$5.8 million in R&D: educational technology
-51.8% solutions, new digital products and contents
31.9
-53.5%
15.5 Investments planned for 2013:
4.6
• R$21.2 million in R&D: due to regulations
18.0 3.6
15.4 • R$19.1 million in other investments: reduction of
-74.5% 53.5% in relation to 2012
2.8 4.2 24.4
1.1 21.2  lower need for further verticalization
11.1 10.1
 Focus on cash generation in the hardware
business
1H12 1H13 2012R 2013E
R&D IT Others

20
Final Comments

The Company continues focused on strengthening its financial position, as well as

entering new segments and diversifying its portfolio through hardware devices

Higher costs to be passed through to PC prices due to the dollar appreciation in 3Q13

Volumes can keep at a satisfactory levels despite the macroeconomic scenario, due to record
government client portfolio

 expectation of more than 350,000 PCs in Brazil, 209,000 of which were delivered in 1H13

 in Argentina, volume should exceed 250,000 notebooks, 147,000 of which were delivered in
1H13

The 2nd tranche of the loan from BNDES is expected to be released in 2H13. The new loan from
BNDES amounts to up to R$173.1 million and matures in six years

Effects from adjustments to the fixed cost structure should be better perceived as of 3Q13

Expectation of leverage by smartphone sales volume with the beginning of manufacturing in Brazil
under the new tax structure that stimulates domestic production

21
 Ricardo Fernandes Pereira
CFO and Head of Investor Relations

Lincon Lopes Ferraz

IR Manager

Phone: 55 41 3316 7887 | Fax: 55 41 3316 7810

Email: ir@positivo.com.br
http://www.positivoinformatica.com.br/ir

This presentation contains forward-looking statements based on Management’s current assumptions and estimates that
may cause material variations in results, performance and future events. Actual results, performance and events may differ
substantially from those expressed or implied in these forward-looking statements as a result of diverse factors, such as
general economic conditions in Brazil and other countries, interest and exchange rates, changes in laws and regulations,
and general competitive factors (whether global, regional, or national).