Results for the six months ended 30 September 2012

Transcription

1 Results for the six months ended 30 September 2012 Richard Longdon Chief Executive James Kidd Chief Financial Officer

2 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 forwardlooking 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.

3 Agenda Group overview Financial review Everything 3D update Summary Q&A session

4 AVEVA interim results Group overview Richard Longdon Chief Executive Officer

5 Strategic progress Strongly positioned in global growth markets Everything 3D (E3D) successfully launched Increased footprint within customer base Long-term relationships driving recurring revenue Further penetration of the Operator space Bocad integration on track Investment in India underway, new Mumbai hub Global presence Industryleading technology Long-term customer relationships Long-term Cap Ex plans drive the industries our customers serve

6 Global growth markets Oil & Gas Power Marine Other Oil & Gas Cap Ex expected to exceed $1 trillion in 2012 * Complexity, difficulty of extraction, construction EPC backlogs remain strong Safety & compliance key drivers Focus on India and China China restarted nuclear Strategic partnerships in China Global energy demand is expected to rise by 30-40% by 2030 ** Energy mix not expected to change short term Offshore projects remain strong, particularly outside China Commercial shipbuilding market is weak as expected Naval shipbuilding increasing Fuel efficiency in design Metals & Mining Petrochemical Chemical Pulp & Paper Pharmaceutical % of total sales *Global Data, Oil & Gas Capital Expenditure Outlook H **Based on public data from IEA, Chevron, Exxon Mobil, BP (2012)

7 Engineering & Design Systems Demand sustained Further competitive wins with major EPCs E3D launch very positively received H2 weighting due to the phasing of rental contracts Bocad integration progressing well EDS as % of total group revenue % EDS = recurring revenue % EDS = software revenue 0% 88% 0% 74% 0% 94%

8 EDS recent customer examples Multi-year rental deal for AVEVA design tools and AVEVA NET with Worley Parsons Rental extension deal with TECHNIP Extension for AVEVA Plant portfolio for EDF Major global Power EPC chooses AVEVA over incumbent vendor AVEVA Bocad 3D for full fabrication detailed design at KESZ Hungary

9 Enterprise Solutions Progress with the oil Super Majors, AVEVA NET mandated by O/Os for data handover Extending sales into the engineering companies Expanded partner program with Infosys Regulatory/compliance a major driver Improved revenue mix; total backlog +20% ES as % of total group revenue % ES = recurring revenue % ES = software revenue 0% 25% 50% 75% 100% 0% 25% 50% 75% 100% 0% 50% 100%

10 ES recent customer examples Control of Work solution sale for major European Green Energy project AVEVA MARS & AVEVA NET for a major Brazilian shipyard AVEVA NET, AVEVA Change Manager for oil Super Major AVEVA NET & AVEVA PDMS for OIM at major Polish Chemical operator AVEVA MARS extension for major US shipyard operator

11 AVEVA - Global operational performance Americas - Good growth in North America - Brazil saw some project delays, opportunity undiminished - Chile MMCoE on track EMEA - Maintained strong momentum - Engineering contractors busy - Further growth in Enterprise Solutions revenue - Bocad Asia Pacific - China returned to growth - Oil & Gas and Power the drivers - Marine weak, particularly China - New office in Mumbai, expansion in Hyderabad 57 offices around the globe (44 sales & support plus 13 technical centres)

12 E3D a new standard for the design industry E3D update Very positive customer response Migration cycle in installed base expected to extend over several years E3D sets the bar very high for the competition E3D is a major opportunity for market share gains

13 Raising the benchmark for plant design AVEVA E3D Laser scanning integrated in modelling 3D Graphics optimised for modelling User Interfaces Easy to use 2D and 3D geometry interfaces Drafting integrated with the model High performance for large networks Parallel running with PDMS, Engineering, Diagrams Cost SAVINGS

14 Migration options for PDMS customers PDMS Adopt E3D Run E3D & PDMS together

15 AVEVA interim results Financial review James Kidd Chief Financial Officer

16 Financial summary H1 Sept 2012 Sept 2011 Total revenue 97.6m 85.2m 15% Underlying revenue (ex. acquisitions) 94.6m 85.2m 11% Adjusted* profit before tax 28.7m 26.1m 10% Adjusted* basic EPS (pence) 30.19p 26.98p 12% Adjusted profit before tax margin 29.4% 30.6% - Interim dividend per share (pence) 4.5p 4.0p 13% Net cash 166.4m 157.5m 6% * Adjusted profit before tax, adjusted profit margin and adjusted basic earnings per share are calculated before amortisation of intangible assets, share based payments, gain/loss on fair value of foreign exchange contracts and exceptional items in the relevant year. In addition, adjusted basic earnings per share also includes the tax effects of these adjustments.

17 Summary income statement H1 Sept 2012 m Sept 2011 m Total revenue Costs of sales (7.4) (7.2) Research and Development costs (16.2) (15.2) Selling and distribution expenses (40.4) (32.3) Administrative expenses (8.3) (7.1) Net interest receivable Normalised items Adjusted profit before tax Reported profit before tax Income tax (7.4) (7.2) Profit after tax Adjusted profit margin 29.4% 30.6% Adjusted basic EPS 30.19p 26.98p 15% 10% 8% 12%

18 Summary balance sheet H1 Sept 2012 m Sept 2011 m Mar 2012 m Non-current assets Accounts receivable Prepayments and other receivables Net cash and deposits Total assets Trade & other liabilities Deferred revenue Pension liabilities Shareholders equity Total shareholders equity and liabilities

19 Underlying revenue growth H1 million Headline revenue +15% in H Organic, constant currency revenue +13% (2.1) month contribution from Bocad of 2.1 million (0.9) 94.6 LFM adjustment of 0.9 million Negative ForEx impact of 2.1 million 92 Reported revenue Bocad LFM Organic revenue ForEx Constant Currency

20 Revenue by category H1 million % +15% Recurring revenue +14%, solid at 69% of total sales Rental licence income +17% % % % 40 20% % 11% Annual fees Rental fees Initial licence fees Services Total revenue Recurring Initial fees Services

21 Engineering & Design Systems Sept 2012 m Sept 2011 m Revenue Annual fees Rental licence fees Recurring revenue Initial licence fees Services Total revenue Operating costs (20.8) (18.3) Contribution Continued shift in the mix towards rental Growth in ILF partly driven by improvement in China 14% 14% 15%

22 Enterprise Solutions Sept 2012 m Sept 2011 m Revenue Annual fees Rental licence fees Recurring revenue Initial licence fees Services Total revenue Operating costs (14.0) (13.3) Contribution (1.8) (2.8) 17% 16% Improvement in the revenue mix towards software and rental agreements New global partner in place Backlog +20% to 15.2 million

23 Movements in net cash position H1 million (9.4) Operating cash conversion at 91% (H %) H1 factors include: (2.4) (11.5) (11.5) (0.7) Increase in Cap Ex and timing of FY12 bonus and commission payments Movements in working capital Phasing of sales invoicing in H Mar-12 Cash from operations Tax Cap Ex Acquisitions (net) Dividend FX/Other 30-Sep-12

24 AVEVA - Global financial performance Americas 16.3m ( m) +6% Regional revenue fluctuations not particularly meaningful Our global accounts serve global industries EMEA 46.6m ( m) +13% Asia Pacific 34.7m ( m) +21%

25 AVEVA interim results Summary Global presence Industryleading technology Long-term customer relationships Long-term Cap Ex plans drive the industries our customers serve AVEVA has continued to benefit from a global presence, insulated from short term regional variations Continuing AVEVA s rich history of innovation, E3D launch is a new benchmark for the engineering design industry These strong relationships provide AVEVA with the opportunity to sell more products into installed base Cap Ex plans across all areas of major plant investment are long-term and are the fundamental driver of demand

26 AVEVA interim results Q&A session

27 Thank you

28 AVEVA interim results Appendix

29 Summary cash flow Sept 2012 m Sept 2011 m Net cash from operating activities Tax paid (9.4) (8.3) Capital expenditure (net) (2.4) (1.4) Acquisitions (11.5) - Interest received (net) Purchase of own shares (0.6) (0.5) Dividends paid (11.5) (10.1) Net (decrease)/increase in cash (11.8) 4.6 Foreign exchange movement (0.8) (0.3) Opening cash and deposits Closing cash and deposits

30 Long-term customer relationships AVEVA has >2,000 customers Enduring relationships span decades This year Shell celebrates 25 years as an AVEVA customer 25 years an AVEVA customer

31 AVEVA Products and Competitive Landscape Conceptual Design FEED Detailed Design Construction & Commissioning Operations Decommissioning Project phase 2-6 years (c.$1.6 billion) Engineering Design Systems Operations phase up to 50 years (>$2 billion) Enterprise Solutions ASPEN ASPEN BENTLEY HEXAGON SIEMENS SIEMENS HEXAGON BENTLEY SAP AUTODESK DASSAULT DASSAULT IN HOUSE SOLUTIONS IN-HOUSE SOLUTIONS POINT SOLUTIONS

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