Results for the six months ended 30 September 2013

Copyright © 2013 AVEVA Solutions Limited and its subsidiaries. All rights reserved.

Safe Harbor Statement

During (and in this) presentation we make forward-looking statements. These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Each forward-looking statement speaks only as of today and save to the extent required by the applicable law or regulation, we do not undertake any obligation to update or renew any forward-looking statement.

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Richard Longdon Chief Executive

3


Strategic highlights

Strong growth within Engineering & Design Systems, with revenue +12%

‘AVEVA Everything 3D’ (AVEVA E3D™) on track, with one major EPC announcing plans to migrate in 2014

Continued growth in pipeline in Enterprise Solutions (revenue +5%), although slower growth than anticipated due to customer-specific factors

Cash generated from operations before tax +32%

High recurring revenues maintained at 70% of sales

Innovation and technology leadership – October launch of ‘AVEVA E3D™ Insight’ at AVEVA World Summit in Boston

4


Engineering & Design Systems

EPCs – a number of significant licence deals in the period

AVEVA E3D™ momentum building

Customers widening use of AVEVA design tools – This is an important strategic growth driver for AVEVA

EPC backlogs continue to grow

New product pipeline strong – Mobile & Cloud

– AVEVA E3D™ Insight released in October, and more to come…

88%

EDS

74%

Recurring

95%

Software

Services

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EDS – Recent customer examples

MAN Diesel & Turbo (Germany) – AVEVA IE&D, including AVEVA PDMS, AVEVA Engineering, AVEVA Diagrams and AVEVA Global

Daewoo Shipbuilding & Marine Engineering (Korea) –Building around 70 ships per year with AVEVA tools. First shipbuilder to have achieved revenue >$10 billion from offshore

AVEVA Marine model of an FPSO, and an FPSO now in construction Images Courtesy of DSME. © Copyright DSME

7


Enterprise Solutions

Substantial pipeline and the business continues to grow – Much of the opportunity lies in territories where predicting the timing of revenues

is by nature more difficult; the sales cycle is much longer for ES

Significant milestones reached in H1 on multiple projects – BP NOTIME project, Chevron Gorgon, Shell Carmon Creek, Conoco Phillips CNSO

and ADMA-OPCO

Partner strategy gaining pace, e.g. Capgemini in nuclear

H1 was affected by two customer-specific external factors – A major shipyard in Brazil ran into severe financial difficulties

– Global roll out plans for AVEVA NET abandoned at one Owner Operator

– These factors affected revenue and backlog

48%

52%

Software

Services

12%

ES

34%

Recurring

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ES – Recent customer examples

Promon Engenharia (Brazil) – leading EPC selected and implemented AVEVA NET and AVEVA PDMS on a large mining project for Largo Resources, Brazil’s first vanadium pentoxide production facility

CSC Jinling (China) – shipyard selected AVEVA NET for an integrated design information management system. Distributed, complex operations, AVEVA NET will integrate engineering, design and ERP systems across all geographic locations

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ES Customer focus - ADMA-OPCO

Previously spent >75% of time spent looking for information

AVEVA Laser Scanning plus AVEVA NET to facilitate a vast ‘as built’ operation, creating a full digital replica of all existing assets

Assets include >300 well head towers

Around 129,000 pieces of equipment

Ambitious project with AVEVA NET pulling in information from multiple sources: – 260,000 scanned documents

– >400 3D models

– >20,000 datasheets

Great reference for AVEVA

Complex accommodations asset, ADMA-OPCO © Copyright ADMA-OPCO

This project is expected to drive ‘engineering excellence’ through better management and control of information

10


AVEVA E3D™

More than 30 customers now using the AVEVA E3D™ platform – minimal revenue YTD, though growing rapidly

Superb feedback at AVEVA World Summit – H2’14 offers a number of key strategic marketing opportunities (user groups, etc.)

Siemens Energy

– Four engineering hubs

– Around 2 years ago decided to adopt AVEVA

– Full evaluation of AVEVA E3D™ Draw application was the first major step

– Expect full migration in Q4 2014, with ‘go live’ on all projects

Other discussions with major EPC customers are progressing well

11


James Kidd CFO

12


Financial highlights

Sept 2013

Sept 2012

Total revenue £108.5m £97.6m 11%

Constant currency revenue £106.2m £97.6m 9%

Adjusted* profit before tax £32.3m £28.6m 13%

Adjusted* basic EPS (pence) 35.23p 30.19p 17%

Adjusted profit before tax margin 29.8% 29.3% 46bps

Interim dividend per share (pence) 5.0p 4.5p 11%

Operating cash flow before tax £30.2m £22.9m 32%

* 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 fair value of forward foreign exchange contracts and exceptional items. In addition, adjusted basic earnings per share also include the tax effects of these adjustments.

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Sept 2013 £m

Sept 2012 £m

Reported

Normalised

Total revenue 108.5 97.6 11%

Cost of sales (8.5) (7.4) 15%

Research and Development costs (18.7) (16.2) 15% 8%

Selling and distribution expenses (44.2) (40.5) 9% 6%

Administrative expenses (10.2) (8.3) 23% 31%

Net interest receivable 0.4 0.6

Normalised items 4.9 2.8

Adjusted profit before tax 32.3 28.6 13%

Reported profit before tax 27.3 25.8 6%

Income tax (effective rate 27.6%, 2012 - 29.0%) (7.5) (7.5)

Profit after tax 19.8 18.3 8%

Adjusted profit margin 29.8% 29.3%

Adjusted basic EPS 35.23p 30.19p 17%

Summary income statement (statutory)

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Summary balance sheet

Sept 2013 £m

Sept 2012 £m

Non-current assets 77.1 77.7

Accounts receivable (net of provision £4.7m, 2012 - £4.8m) 54.0 49.6

Prepayments and other receivables 8.0 9.5

Net cash and deposits 95.8 166.4

Total assets 234.9 303.2

Trade and other liabilities 34.4 34.6

Deferred revenue 30.4 31.2

Pension liabilities 13.3 12.1

Shareholders’ equity 156.8 225.3

Total shareholders’ equity and liabilities 234.9 303.2

Payment of £100 million special dividend during first half

Deferred revenue impacted by FX

15


Revenue by category Recurring revenue

maintained at 70% of total sales

Tokens now a major part of rental licence income

Rental licences +14%

ILF growth 11%

Flat services revenue, software revenue now 90% of total sales

Constant currency growth 9%

28.4

47.2

21.6

11.3 108.5

0

20

40

60

80

100

120

Annual fees Rental fees Initial license fees Services Total revenue

25.8

41.3

19.5

11.0 97.6

H1 ’13

H1 ’14

+10%

+14%

+11%

+3% +11%

£m

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AVEVA – revenue by geography

Americas +9% Revenue = £17.8m

(2012 - £16.3m)

EMEA +4% Revenue = £48.4m

(2012 - £46.6m)

Asia Pacific +22% Revenue = £42.3m

(2012 - £34.7m)

Korea was the principal driver of the strong growth seen in Asia Pacific

EMEA negatively affected by the weakness in Enterprise Solutions

Americas saw good growth outside LatAm, encouraging signs in North America

Brazil sizeable long-term opportunity

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Sept 2013 £m

Sept 2012 £m

Revenue 95.7 85.4 12%

Annual fees 25.5 23.4 9%

Rental licence fees 45.7 39.7 15%

Recurring revenue 71.2 63.1 13%

Initial licence fees 19.9 17.0 17%

Services 4.6 5.3 (13%)


Operating costs (23.8) (20.8) 14%

Contribution 71.9 64.6 11%

Engineering & Design Systems

Strong growth in initial licence fees driven by Asia Pacific

Continued strength in rental licence fees

Investment in sales technical and R&D

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Sept 2013 £m

Sept 2012 £m

Revenue 12.8 12.2 5%

Annual fees 2.8 2.5 12%

Rental licence fees 1.5 1.6 (6%)

Recurring revenue 4.3 4.1 5%

Initial licence fees 1.7 2.4 (29%)

Services 6.8 5.7 19%


Operating costs (14.4) (14.0) 3%

Contribution (1.6) (1.8) 11%


Division saw negative impact due to two customers-specific events

Backlog £11.4 million (31 March 2013 £14.7 million), reflecting H1 customer issues

Continue to make good progress with Owner Operators

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Movements in net cash position

Cash from operations pre tax

up 32% to £30.2 million

Strong cash conversion,

112% in H1 (versus 91% H1

2012)

Cash outflow of £100 million

Special Dividend in H1

Negative impact of £2.2

million from ForEx

190.4

30.2 (6.7) (2.5)

(100.0)

(13.3)

(2.3) 95.8

80

100

120

140

160

180

200

220

31-Mar-13 Cash from

Operations Tax Cap Ex Special

Dividend

Final Dividend

FX/Other 30-Sep-13

£m

20


Outlook

Momentum within EDS remains strong underpinned by global breadth, long customer relationships, new products and high recurring revenues

ES opportunity undiminished, the significant pipeline continues to grow

We remain the leading innovator in our industry, beginning to deliver Cloud and Mobile apps using E3D™ as the enabling platform

Broadening our relationship with Global Accounts with broader portfolio of integrated software solutions

Growth indicators across our markets remain positive

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Appendices

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Sept 2013 £m

Sept 2012 £m

Net cash from operating activities 30.2 22.9

Tax paid (6.7) (9.4)

Capital expenditure (net) (2.5) (2.4)

Acquisitions - (11.5)

Interest received (net) 0.6 0.7

Purchase of own shares (0.7) (0.6)

Dividends paid (113.3) (11.5)

Net decrease in cash (92.4) (11.8)

Foreign exchange movement (2.2) (0.8)

Opening cash and deposits 190.4 179.0

Closing cash and deposits 95.8 166.4

Summary cash flow

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Sept 2013 reported

£m

Intangible amortisation

Share based

payments

FX gains/ (losses)

Exceptional items

Sept 2013 - normalised

Sept 2012 normalised

Total revenue 108.5 108.5 97.6

Cost of sales (8.5) (8.5) (7.4)

Research and Development (18.7) 1.9 0.9 (15.9) (14.7)

Selling and distribution (44.2) 0.4 1.2 (42.5) (40.0)

Administrative expenses (10.2) 1.5 (1.1) 0.1 (9.7) (7.4)

Normalised items 4.9 (2.3) (1.5) 1.1 (2.2) 0.0 -

Net interest receivable 0.4 0.4 0.6

Adjusted profit before tax 32.3 - - - - 32.3 28.6

Operating expenditure (normalised)

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AVEVA products and competitive landscape

ASPEN

HEXAGON

BENTLEY

DASSAULT

SIEMENS

ASPEN

SIEMENS

Conceptual Design FEED

Detailed Design

Construction & Commissioning Operations Decommissioning

BENTLEY

HEXAGON

Engineering Design Systems

DASSAULT

SAP

IN-HOUSE SOLUTIONS

IN HOUSE SOLUTIONS POINT SOLUTIONS

Project phase 2-6 years (c.$1.6 billion) Operations phase up to 50 years (>$2 billion)

AUTODESK


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Definition of terms

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 PBT Profit Before Tax 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.

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.

Enterprise Solutions backlog Contracted Enterprise Solutions revenue that has not yet been recognised but which is expected to be recognised in the next 12 months. Revenue backlog also includes 12 months of annual fees.

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