AVEVA HYR Presentation 2015

AVEVA Group plc
Results for the six months

ended 30 September 2015
10 November 2015
This presentation may include predictions, estimates, intentions, beliefs and

other statements that are or may be construed as being forward-looking. While
these forward-looking statements represent our current judgment on what the
future holds, they are subject to risks and uncertainties that could result in
actual outcomes differing materially from those projected in these statements.
No statement contained herein constitutes a commitment by AVEVA to perform
any particular action or to deliver any particular product or product features.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which reflect our opinions only as of the date of this presentation.
The Company shall not be obliged to disclose any revision to these forwardlooking statements to reflect events or circumstances occurring after the date
on which they are made or to reflect the occurrence of future events. This
presentation concerns AVEVA's latest financial results. This morning, AVEVA
released an announcement providing an update on AVEVA's proposed
acquisition of selected industrial software assets from Schneider Electric. For
regulatory reasons, we are not able to provide you with any additional new
details on (or answer questions relating to) that transaction. Therefore, if you
have any questions regarding the proposed transaction, please refer to this
morning's update announcement.
Copyright 2015 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
CEO review
Richard Longdon, CEO
3
Highlights
Resilient financial performance
Significant Forex impact on revenue and profit in H1
Underlying growth in recurring revenue
AVEVA Everything3D (AVEVA E3D) revenue doubled* in the period
Good growth in schematics, fabrication and laser modelling
Good progress against strategic objectives

Sales execution was strong in the first half
Growing presence onshore and downstream

Diversifying our end markets
Growth of new product and solution-sales
Update on proposed Schneider Electric software acquisition

* Excluding acquisitions and at constant currency
4
Resilient financial performance

Sept 2015
Solid first half with revenue in line with expectations at
85.1m* (2014 - 85.9m)
Recurring revenue increased to 64.3m* (2014 - 61.8m)
Forex impact was material in the period
Growth in EMEA, lower activity in Asia and the Americas

Revenue from AVEVA E3D +97%* in H1, with 320 customers
New business helped offset weakness in Oil & Gas segment
* Excluding acquisitions and at constant currency

5
Strategic progress
Sales execution
One AVEVA and More than 3D initiatives are delivering
measurable results
New business
Sales to new customers
Cross-sales to existing customers
Future business development

New product pilots
Pipeline improved during the second fiscal quarter
Strategic progress
Onshore and downstream
Diversifying end markets
Oil & Gas now <40% of total sales (2014 c.45%)
Engineering data management

Solution spans all industry sectors
Growing usage within EPC Global Accounts
AVEVA Engineering, AVEVA NET and AVEVA ISM
Brownfield engineering
Thought leadership on the Digital Asset
AVEVA E3D, AVEVA Laser Modeller and AVEVA NET
Strategic progress
Diversifying our end markets
Food processing
Integrated design and workflow management solution for one of the
largest global suppliers of process plant to the industry
Dairy, beverage, brewery, food, pharmaceutical and chemical processing
Building Information Management (BIM)

Strong proposition in UK infrastructure
AVEVA information management solutions have been proven over many
years in the process industries
Strategic progress
New product and solution sales
Fabricators
AVEVA E3D combined with FabTrol and Bocad
Full integration across the steel fabrication value chain
Increasing market share
Increasing sales of AVEVA Integrated Engineering & Design

Schematics
AVEVA Laser technologies
Dubai, October 2015

Update from the AVEVA World Summit
Key themes this year
Decision Support
Design in Context
Cloud
The Digital Asset
Highlights
Major Norwegian OO asset visualisation and information management
EDF/NNB GenCo meeting the BIM challenge for Hinkley Point C
Hitachi-GE Nuclear developing IE&D for overseas nuclear projects
Jacobs creating a Digital Asset for brownfield projects
10
AVEVA Engage
The future of decision support
11
The Trusted Living Pointcloud

Enhanced brownfield working
12
AVEVA Cloud Services

Powerful architecture for engineering design
13
End markets
Other 15-20%*
Recent successes in
Food Processing and
other process plant
Oil and Gas 35-40%

Expanding downstream
and onshore, brownfield
plays to laser modelling
strengths, investing in
North America, robust LT
drivers
Chemical/PetroChem 5-10%
North America a particularly
active market, projects typically
lower complexity but good
opportunity for LT growth
Shipbuilding 15-20%
Stable outlook but no
signs of a sustained
recovery, global GDP
remains the key
industry driver
Power 10-15%
Positioned for newbuild in developing
countries, replacement
& life extension
elsewhere, nuclear a
significant LT
opportunity
* All revenue percentage ranges are approximations

14
Proposed Schneider assets acquisition

As announced on 20 July, AVEVA has signed a non-binding
term sheet to acquire the software assets of Schneider
Electric
Transformational acquisition for AVEVA
Both parties are working towards finalising due diligence and
agreeing the detailed terms in December 2015, with
completion expected to occur by mid 2016
15
Financial review
James Kidd, CFO
16
Financial highlights
Sept
2015
Sept
2014
Change
Total revenue
82.0m
85.9m
5%
Organic constant currency revenue*
85.1m
85.9m
1%
Adjusted** profit before tax
9.3m
17.1m
46%
Adjusted** profit before tax*
13.7m
17.1m
20%
Adjusted** basic EPS
10.06p
20.50p
51%
Adjusted** profit before tax margin
11.3%
19.9%
6.0p
5.5p
9%
105.7m
116.4m
9%
30.9m
22.5m
37%
Interim dividend per share

Net cash
Operating cash flow before tax
*Organic constant currency revenue/profit is defined as the periods reported revenue/profit restated to reflect the previous years average exchange rates and
excludes the revenue/profit from acquisitions.
**Adjusted profit before tax, adjusted profit margin and adjusted basic earnings per share are calculated before amortisation of intangible assets (excluding other
software), share-based payments, gain/loss on the fair value of forward foreign exchange contracts and exceptional items. In addition, adjusted basic earnings per
share also includes the tax effects of these adjustments.
17
Summary income statement

Organic
m
Acqns
m
Sept 2015
m
Sept 2014
m
Total revenue
78.7
3.3
82.0
85.9
Cost of sales
(6.4)
(0.5)
(6.9)
(7.5)
Gross profit
72.3
2.8
75.1
78.4
(62.9)
(2.9)
(65.8)
(61.6)
0.3
9.4
(0.1)
9.3
17.1
(10.1)
(2.9)
Reported PBT
(0.8)
14.2
Income tax
(1.8)
(3.5)
(Loss)/profit after tax
(2.6)
10.7
Adjusted profit margin
11.3%
19.9%
Adjusted basic EPS (pence)
10.06p
20.50p
Operating expenses
Net interest receivable
Adjusted PBT
Normalised items
18
Organic revenue by category

Sept 2015
Reported
m
Sept 2015
Constant
currency*
m
Sept 2014
Reported
m
Constant
currency
change
Annual fees
29.0
31.4
29.7
6%
Rental licence fees
30.4
32.9
32.1
2%
Recurring revenue
59.4
64.3
61.8
4%
Initial licence fees
11.0
11.9
14.6
(18%)
Services
8.3
8.9
9.5
(6%)
Total
78.7
85.1
85.9
(1%)
Annual fees up 6% following ILF sales in 2014/15 and price increases

Rental licences grew 2% - growth in non-3D products and AVEVA E3D offsetting some volatility
ILF decrease reflects difficult market conditions in Oil & Gas and shipbuilding
* Revenue on a constant currency basis is defined as the periods reported revenue restated to reflect the previous years average exchange rates and excludes the
revenue from acquisitions of 8over8 and FabTrol.
19
Global performance
Rental fees
Initial fees
EMEA
46.3m*
Annual fees
Training and services
(Reported 40.9m)
(2014 - 43.7m)
Americas
10.8m*
Asia Pacific
(Reported 10.4m)
(2014 - 12.4m)
28.0m*
(Reported 27.4m)
(2014 - 29.8m)
Solid performance in NA
Brazil market continues
to be tough
Growth of 6%
Weak conditions in
Oil & Gas
Upselling of non-3D
Recurring revenue
solid
ILFs impacted
China market weak
* Revenue is stated on an organic, constant currency basis.
20
Organic cost base

Sept
2015
Reported
m
Sept 2015
Constant
currency
m
Sept
2014
Reported
(Restated**)
m
6.4
6.8
7.5
(9%)
Research & Development
11.9
12.4
13.9
(11%)
Selling and distribution
37.3
39.1
37.1
5%
Administrative
13.7
13.1
10.6
24%
Total opex
62.9
64.6
61.6
5%
Total costs
69.3
71.4
69.1
3%
Cost of sales
Constant
currency
change
Costs are stated on an adjusted basis*
Research & Development benefited from in-house facility in India and lower discretionary spend
Selling and distribution up due to increased commission and annualised cost of 2014/15 hires
Administrative expenses increased due to investment in IT and NI on share options. PY includes a FX gain of 1.5m
* After adjusting for amortisation of intangible assets (excluding other software), share-based payments, gain/loss on the fair value of forward foreign exchange
contracts and exceptional items. This also excludes the costs from acquisition of 8over8 and FabTrol.
** The allocation of costs between selling and distribution and administrative expenses has been amended to allocate costs on a functional basis rather than a
geographic basis. There has been no impact on profit.
21
Reporting
As highlighted at the FY15 results, segments have changed
Primary segments are the geographic regions
Revenue and profit reported by region
Classification of costs has been updated

Split of costs between selling & distribution and administrative amended
Costs now allocated on a functional basis rather than geographic

Comparatives restated; no impact on profit
22
Movement in net cash position

250
200
150
million
30.9
(6.1)
(0.8)
(3.1)
(16.0)
(3.0)
103.8
105.7
100
50
0
31-Mar-15
23
Cash from
operations
Tax
Cap Ex
Acquisitions
Dividends
FX/other
Strong cash collection in H1 driving 37% increase in cash from operations before tax
Cash flow includes the cost of FabTrol (3.1m)
30-Sep-15
Summary balance sheet
24
Sept 2015
m
Sept 2014
m
Non-current assets
90.5
69.5
Accounts receivable (net of provision 6.0m (2014 - 6.0m))
40.6
46.0
Other receivables
11.3
7.5
Net cash and deposits
105.7
116.4
Total assets
248.1
239.4
Other liabilities
30.9
24.6
Deferred revenue
35.1
30.9
Pension liabilities
8.0
12.7
Shareholders equity
174.1
171.2
Total shareholders equity and liabilities
248.1
239.4
Non-current assets increased due to acquisitions of FabTrol and 8over8
Strong cash collection in H1
Pension liabilities decreased 4.7m lower UK DB scheme liabilities due to higher discount rate
Summary and outlook

Richard Longdon, CEO
25
Outlook
Core strengths continue to deliver success
Industry-leading technology
First-class customer service
Resilient business model
Focus on new business

Supported by One AVEVA and More than 3D
Further diversify end-markets

Expect to achieve full year result in line with
Boards expectations
26
Copyright
2015
AVEVA
Solutions
Limited
and
subsidiaries.All
Allrights
rights reserved.
reserved.
Copyright
2015
AVEVA
Solutions
Limited
and
itsits
subsidiaries.
Appendices
27
Revenue by category
Annual
fees
m
Rental
fees
m
Recurring
revenue
m
Initial
licence
fees
m
Training
and
services
m
Total
m
Reported
30.6
31.2
61.8
11.2
9.0
82.0
Acquisitions
(1.6)
(0.8)
(2.4)
(0.2)
(0.7)
(3.3)
Organic, reported
29.0
30.4
59.4
11.0
8.3
78.7
Currency effect
2.4
2.5
4.9
0.9
0.6
6.4
Organic, constant
currency*
31.4
32.9
64.3
11.9
8.9
85.1
Sept 2014
29.7
32.1
61.8
14.6
9.5
85.9
6%
2%
4%
(18%)
(6%)
(1%)
Organic, constant
currency* change
* Organic constant currency revenue is defined as the periods reported revenue restated to reflect the previous years
average exchange rates and excludes the revenue from acquisitions of 8over8 and FabTrol.
28
Revenue by geography
29
Asia Pacific
m
EMEA
m
Americas
m
Total
m
Reported
28.1
41.8
12.1
82.0
Acquisitions
(0.7)
(0.9)
(1.7)
(3.3)
Organic, reported
27.4
40.9
10.4
78.7
Currency effect
0.6
5.4
0.4
6.4
Organic, constant currency
28.0
46.3
10.8
85.1
Sept 2014
29.8
43.7
12.4
85.9
Organic, constant currency

change
(6%)
6%
(13%)
(1%)
Cost analysis
Cost of
sales
m
Research &
Development
m
Selling and
distribution
m
Administrative
expenses
m
Total
m
6.9
16.8
40.0
19.0
82.7
Normalised
adjustments
(3.6)
(1.3)
(5.1)
(10.0)
Acquisitions
(0.5)
(1.3)
(1.4)
(0.2)
(3.4)
Organic reported
6.4
11.9
37.3
13.7
69.3
Currency effect
0.4
0.5
1.8
(0.6)
(2.1)
Adjusted, organic
constant currency
6.8
12.4
39.1
13.1
71.4
Sept 2014 adjusted*
7.5
13.9
37.1
10.6
69.1
Organic constant
currency change
(9%)
(11%)
5%
24%
3%
Reported
* The allocation of costs between selling and distribution and administrative expenses has been amended to allocate costs
on a functional basis rather than a geographic basis. There has been no impact on profit.
30
Summary cash flow

Sept 2015
m
Sept 2014
m
Net cash from operating activities
30.9
22.5
Tax paid
(6.1)
(7.9)
Acquisitions
(3.1)
Capital expenditure (net)
(0.8)
(1.7)
0.3
0.4
(0.1)
(0.3)
(16.0)
(14.0)
5.1
(1.0)
(3.2)
(0.1)
Opening cash and deposits
103.8
117.5
Closing cash and deposits
105.7
116.4
Interest received (net)

Purchase of own shares
Dividends paid
Net increase/(decrease) in cash
Foreign exchange movement
31
Currency translation effect on revenue FY16

Currency
A: Average
rate FY15
B: Spot rate
30/09/15
Delta
(A / B)
EUR
1.274
1.349
(5.6%)
NOK
10.779
12.898
(16.4%)
RUB
72.436
99.896
(27.5%)
EMEA
50%
Indicative
impact on
FY16
revenue
(10-12%)
CNY
9.927
9.651
+2.9%
INR
98.530
100.416
(1.8%)
JPY
176.760
181.620
+2.7%
KRW
1709.880
1814.280
(5.8%)
AUD
1.846
2.174
(15.1%)
Asia Pacific
32
% of FY15
revenue
32%
(2-3%)
USD
1.614
1.517
+6.0%
BRL
3.975
6.218
(36.1%)
MXP
22.094
25.899
(14.7%)
Americas
18%
(6-7%)
Total
100%
(6-7%)
Definition of terms
33
Item
Definition
Initial Licence Fee
Initial Licence Fee (ILF) - users are charged an initial licence fee per seat together with an obligatory
annual fee.
Annual Fee
Charged in association with an ILF providing customer support and maintenance, which includes core
updates. Users must pay the annual fee in order to maintain the right to use the software.
Rental licence model
An alternative to the ILF plus annual fee model, there are three different types of rental licence:
Monthly invoicing, contractual period (typically one year, invoiced up front) or token licensing.
Token-based licensing
The user pays for a 'basket of tokens representing licences to use different software products over a
defined period of time. The customer can draw down on these licences as required.
Revenue recognition
ILFs recognised upfront after usual delivery and acceptance conditions are met. Annual fees
recognised ratably over the period (typically 12 months). Rental licences - an estimated licence
element is recognised up front, and the remaining maintenance element is recognised ratably over the
contracted period. Services are recognised on a percentage complete basis.
Revenue by geography
The sales force is organised into three geographic regions. Revenue is allocated based on where the
contracting entity of the customer is based. AVEVA's Global Accounts often choose to purchase
software in one geography for use in another.
Recurring revenue
Annual fees plus rental fees.
Adjusted costs/PBT
Adjusted to exclude the effects of amortisation of intangibles (excluding software), share-based

payments, gain/loss on fair value of forward foreign exchange contracts and exceptional items.
Constant currency
The periods reported revenues and costs restated to reflect the previous years average exchange
rates, for the purpose of a constant currency comparison.
Adjusted EPS
Adjusted PBT is used to calculate the adjusted earnings per share, after an adjustment for the tax
effect of the items adjusted.
Cash conversion
Cash flow from operations divided by the operating profit for the period, measured as a percentage.

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AVEVA Group plc

Results for the six months

This presentation may include predictions, estimates, intentions, beliefs and

Good progress against strategic objectives

Growing presence onshore and downstream

Update on proposed Schneider Electric software acquisition

Resilient financial performance

Growth in EMEA, lower activity in Asia and the Americas

* Excluding acquisitions and at constant currency

Future business development

Engineering data management

AVEVA E3D, AVEVA Laser Modeller and AVEVA NET

Building Information Management (BIM)

Increasing sales of AVEVA Integrated Engineering & Design

Dubai, October 2015

The Trusted Living Pointcloud

AVEVA Cloud Services

Oil and Gas 35-40%

* All revenue percentage ranges are approximations

Proposed Schneider assets acquisition

Organic constant currency revenue*

Adjusted** profit before tax

Adjusted** profit before tax*

Adjusted** basic EPS

Adjusted** profit before tax margin

Interim dividend per share

Summary income statement

(Loss)/profit after tax

Adjusted profit margin

Adjusted basic EPS (pence)

Organic revenue by category

Rental licence fees

Initial licence fees

Annual fees up 6% following ILF sales in 2014/15 and price increases

* Revenue is stated on an organic, constant currency basis.

Organic cost base

Research & Development

Selling and distribution

Costs are stated on an adjusted basis*

Classification of costs has been updated

Costs now allocated on a functional basis rather than geographic

Movement in net cash position

Cash flow includes the cost of FabTrol (3.1m)

Summary balance sheet

Accounts receivable (net of provision 6.0m (2014 - 6.0m))

Net cash and deposits

Total shareholders equity and liabilities

Non-current assets increased due to acquisitions of FabTrol and 8over8

Strong cash collection in H1

Summary and outlook

Focus on new business

Further diversify end-markets

Organic, constant currency

Organic, constant currency

Sept 2014 adjusted*

Summary cash flow

Net cash from operating activities

Capital expenditure (net)

Opening cash and deposits

Closing cash and deposits

Interest received (net)

Currency translation effect on revenue FY16

Initial Licence Fee

Rental licence model