Results for Six Months Ended 30 September 2010

Transcription

1 Results for Six Months Ended 30 September 2010 Richard Longdon, Chief Executive James Kidd, Chief Financial Officer

2 Agenda 2 Introduction Review for the six months ended 30 September 2010 Review and outlook of key markets Business review Summary

3 Background 3 AVEVA is the world's leading engineering IT software provider to the Plant, Power and Marine industries. We supply our products and services directly to customers through a network of offices around the world. Our global blue chip customer base continues to entrust us with developing lifecycle engineering data management solutions that will keep their organisations at the forefront of these markets by helping to improve efficiency and productivity, where our products are used for creation, management, protection and sharing of design information from concept to operation. AVEVA remains well positioned to respond to the immediate and future needs of its customers which are increasingly focused on Data Management. The AVEVA NET product has been developed to meet the highly specialised demands imposed by the unusually large data sets used within the Process, Power and Marine industries.

4 Six Months Ended 30 September Return to growth in revenue and profit Recurring revenue remained robust Ongoing R&D investment in new and existing products, AVEVA NET and enterprise solutions Continued emergence of developing countries such as Brazil and China as long-term growth opportunities Demand for more information and increased regulation helping nearterm demand for AVEVA Solutions Acquisitions of ADB and Logimatic being integrated well with growing levels of customer opportunities

5 Financial Highlights Sept 2010 Sept 2010 Sept 2009 Increase/ (decrease) 5 Revenue 78.5m 69.9m 12% Gross profit 60.6m 54.7m 11% Adjusted profit before tax * 24.6m 21.9m 12% Profit before tax 23.1m 23.3m (1%) Adjusted basic earnings per share * 25.14p 21.55p 17% Basic earnings per share 23.17p 22.99p 1% Dividend per share 3.36p 3.00p 12% Net cash 140.1m 133.9m 5% * Adjusted profit before tax and adjusted basic earnings per share are before amortisation of intangibles, sharebased payments, restructuring costs, gains on fair value of forward exchange contracts and acquisition costs

6 Financial Highlights Sept Initial fees increased by 19% to 19.2m ( m) Recurring revenue up 11% to 53.3m ( m) Strong operating margins maintained at 29% ( %) Continued investment in R&D at 12.9m ( m) Net cash generated from operating activities before tax amounted to 24.1m ( m) with cash conversion rate of 106% ( %) Net cash at 30 September 2010 of 140.1m ( 149.7m at March 2010) after acquisitions of 13.4m and payment of 2009/10 final dividend of 9.4m

7 Revenue by Category 7 Six months ended 30 September 2010 m Services Initial Recurring Total revenue % 23% 69% Services Initial Recurring Initial fees increased 19% to 19.2m driven by emerging economies Recurring revenue remains robust accounting for 68% of total revenue Rental income up 12.3% to 31m ( m), in part reflecting ongoing customer cash flow constraints Service revenue amounted to 5.9m driven by new acquisitions Revenue from acquisitions amounted to 1.8m

8 Revenue by Category and by Region 8 Six months ended 30 September 2010 m Services Initial Recurring Growth from plant businesses in Asia (China) and Americas (Brazil) ongoing 5 0 Americas EMEA Asia Pacific Analysis of revenue by region Six months ended 30 September % 41% 40% Asia Pacific EMEA Recurring revenues robust. Existing capacity may serve nearterm demand in more mature regions Growth in rentals driven by Asia Pacific up 74% to 9.6m Americas

9 Revenue by Region 9 Six months ended 30 September 2010 m Americas Asia Pacific EMEA Americas American market remains highly competitive with growth from opportunities in South America and expansion of existing accounts in North America Asia Recovery in region driven by plant solutions for power in China and Oil and Gas more generally EMEA Economic uncertainty still impacting region, particularly across central Europe. Opportunities for growth remain for AVEVA NET to manage existing operations and reemergence of the Middle East

10 Industry profile: Oil and Gas 10 Opportunity remains for new build and management of existing assets More stability within market. Growing Capex demand but customers cautious Project complexity and regulation driving growth Emerging economies creating demand for new build, where local content and resources remain key

11 Industry profile: Power 11 Greater demand driven by under capacity in developing countries Many economies still facing demands for cleaner supply and replacement capacity but slow to respond Nuclear still an emerging opportunity with growing acceptance but near-term driven by demand from Asia Traditional fossil fuel power stations still providing opportunities across all geographies

12 Industry profile: Marine 12 Industry more stable and supported by existing customer order books Existing opportunity for new solutions to existing customers with capacity for design tools constrained in medium term Customers migrating to AVEVA Marine provides cross sell opportunities Strong growth in FPSO and deep water oil projects well suited to AVEVA Solutions

13 Products and Solutions 13 Ongoing investment in R&D for both new products and improved functionality helps to enhance AVEVA s market leading position Investment in AVEVA NET supporting : New and enhanced product Solution Delivery Capacity in Pre Sales Consultancy Implementation Infrastructure including Project Management and relevant processes and systems Acquisitions ADB brings skills and products to support AVEVA NET offering integrity management solutions Logimatic s MARS suite of products enhances material management, construction management and planning solutions for Marine

14 Summary and Outlook 14 Good set of results in markets that remain challenging Result achieved whilst providing high level of investment in supporting both traditional products and new solutions Global positioning allowing us to benefit from new markets whilst some traditional geographies are still recovering from recent economic turbulence Near-term growth will be supported by the introduction of new solutions and developing new geographical opportunities With global demand set to increase in the longer term AVEVA is well positioned to benefit from improving market dynamics

15 Appendix 15

16 AVEVA Products and Competitive Landscape 16 AVEVA PLANT, MARINE and AVEVA NET ASPEN BENTLEY HEXAGON / INTERGRAPH DASSAULT SIEMENS AUTODESK SAP ASPEN Oracle/Primavera PTC DASSAULT SIEMENS (UGS) IN-HOUSE SYSTEMS

17 Consolidated income statement Six months ended Year ended 30 September 31 March Notes (unaudited) (unaudited) (audited) Revenue 78,474 69, ,334 Cost of sales (17,811) (15,169) (30,380) Gross profit 60,663 54, ,954 Operating expenses Selling and distribution costs (31,995) (27,891) (60,027) Administrative expenses (5,884) (3,540) (8,718) Total operating expenses (37,879) (31,431) (68,745) Profit from operations 22,784 23,286 49,209 Finance revenue 1,750 1,266 2,861 Finance expense (1,478) (1,238) (2,496) Analysis of profit before tax 17 Profit before tax, share -based payments, amortisation and restructuring costs 24,584 21,930 50,685 Amortisation of intangibles (excluding software) (1,194) (926) (1,665) Share-based payments (737) (598) (1,184) Gain on fair value of forward foreign exchange contracts 1,108 4,715 3,610 Restructuring costs (1,807) (1,872) Acquisition and integration costs (705) Profit before tax 23,056 23,314 49,574 Income tax expense (7,341) (7,744) (16,134) Profit for the period attributable to equity holders of the parent 15,715 15,570 33,440 Earnings per share basic 23.17p 22.99p 49.36p diluted 23.03p 22.87p 49.08p Proposed dividend per share [ ] 3.00p 13.90p

18 Consolidated statement of income and expense 18 Six months ended 30 September Year ended 31 March (unaudited) (unaudited) (audited) Profit for the period 15,715 15,570 33,440 Other comprehensive income Exchange differences arising on translation of foreign operations 1, ,537 Actuarial gain/(loss) on defined benefit pension schemes 1,047 (4,310) (4,907) Tax on items relating to components of other comprehensive income (452) [ ] 1,277 1,302 Comprehensive income for the period 17,545 13,453 31,372

19 Consolidated balance sheet 19 Non-current assets As at 30 September As at 31 March Notes (unaudited) (unaudited) (audited) Goodwill 26,595 17,800 18,177 Other intangible assets 19,517 10,021 10,571 Property, plant and equipment 7,641 7,612 7,557 Deferred tax assets 4,697 5,808 5,016 Other receivables Current assets 59,208 42,064 42,067 Trade and other receivables 47,567 38,834 44,084 Current tax assets 2, ,801 Financial assets Treasury deposits 106,480 80, ,555 Cash and cash equivalents 33,597 53,784 43, , , ,609 Total assets 249, , ,676 Equity Issued share capital 2,266 2,261 2,264 Share premium 27,288 27,176 27,288 Other reserves 15,579 13,834 14,455 Retained earnings 132, , ,215 Total equity 177, , ,222 Current liabilities Trade and other payables 45,388 41,556 48,869 Financial liabilities 14 1,033 Current tax liabilities 10,836 7,203 4,044 Non-current liabilities 56,224 48,773 53,946 Deferred tax liabilities 3,384 1,575 1,426 Retirement benefit obligations 12,225 13,215 13,082 15,609 14,790 14,508 Total equity and liabilities 249, , ,676

20 Consolidated cash flow statement 20 Cash flows from operating activities Six months ended Year ended 30 September 31 March (unaudited) (unaudited) (audited) Profit for the year 15,715 15,570 33,440 Income tax 7,341 7,744 16,134 Net finance revenue (272) (28) (365) Amortisation of intangible assets 1, ,749 Depreciation of property, plant and equipment ,948 Loss on disposal of property, plant and equipment (49) Share-based payments ,184 Difference between pension contributions paid and amounts recognised in the Consolidated income statement (9) (256) (1,389) Changes in working capital: Trade and other receivables 1,055 18,227 9,684 Trade and other payables (1,339) (14,724) (11,123) Changes to fair value of forward foreign exchange contracts (1,108) (4,715) (3,610) Cash generated from operating activities before tax 24,147 24,368 47,690 Income taxes paid (3,390) (10,738) (22,114) Net cash generated from operating activities 20,757 13,630 25,576 Cash flows from investing activities Purchase of property, plant and equipment (955) (734) (1,479) Purchase of intangible assets (58) (15) (1,305) Acquisition of subsidiar ies and business undertakings, net of cash acquired (13,390) Proceeds from disposal of property, plant and equipmen t Interest received ,114 Purchase of treasury deposits 76 (80,105) (106,555) Net cash used in investing activities (13,724) (80,365) (108,127) Cash flows from financing activities Interest paid (15) (3) (17) Purchase of own share s (430) (653) (653) Proceeds from the issue of shares Dividends paid to equity holders of the parent (9,423) (4,402) (6,436) Net cash flows used in financing activities (9,866) (5,057) (6,990) Net (decrease)/increase in cash and cash equivalent s (2,833) (71,792) 89,541 Net foreign exchange difference (6,739) (588) 6,546 Opening cash and cash equivalents 43, , ,164 Closing cash and cash equivalents 33,597 53,784 43,169

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22 Consolidated income statement 17 Six months ended Year ended 30 September 31 March Notes (unaudited) (unaudited) (audited) Revenue 5, 6 78,474 69, ,334 Cost of sales (17,811) (15,169) (30,380) Gross profit 60,663 54, ,954 Operating expenses Selling and distribution costs (31,995) (27,891) (60,027) Administrative expenses (5,884) (3,540) (8,718) Total operating expenses (37,879) (31,431) (68,745) Profit from operations 22,784 23,286 49,209 Finance revenue 1,750 1,266 2,861 Finance expense (1,478) (1,238) (2,496) Analysis of profit before tax Profit before tax, share-based payments, amortisation and restructuring costs 2 24,584 21,930 50,685 Amortisation of intangibles (excluding software) (1,194) (926) (1,665) Share-based payments (737) (598) (1,184) Gain on fair value of forward foreign exchange contracts 1,108 4,715 3,610 Restructuring costs (1,807) (1,872) Acquisition and integration costs (705) Profit before tax 23,056 23,314 49,574 Income tax expense 7 (7,341) (7,744) (16,134) Profit for the period attributable to equity holders of the parent 15,715 15,570 33,440 Earnings per share 9 basic 23.17p 22.99p 49.36p diluted 23.03p 22.87p 49.08p Proposed dividend per share 3.36p 3.00p 13.90p

23 Consolidated statement of income and expense 18 Six months ended 30 September Year ended 31 March (unaudited) (unaudited) (audited) Profit for the period 15,715 15,570 33,440 Other comprehensive income Exchange differences arising on translation of foreign operations 1, ,537 Actuarial gain/(loss) on defined benefit pension schemes 1,047 (4,310) (4,907) Tax on items relating to components of other comprehensive income (452) 1,277 1,1302 Comprehensive income for the period 17,545 13,453 31,372

24 Consolidated balance sheet 19 Non-current assets As at As at 30 September 31 March Notes (unaudited) (unaudited) (audited) Goodwill 26,595 17,800 18,177 Other intangible assets 19,517 10,021 10,571 Property, plant and equipment 7,641 7,612 7,557 Deferred tax assets 4,697 5,808 5,016 Other receivables ,208 42,064 42,067 Current assets Trade and other receivables 11 47,567 38,834 44,084 Current tax assets 2, ,801 Financial assets Treasury deposits ,480 80, ,555 Cash and cash equivalents 10 33,597 53,784 43, , , ,609 Total assets 249, , ,676 Equity Issued share capital 2,266 2,261 2,264 Share premium 27,288 27,176 27,288 Other reserves 15,579 13,834 14,455 Retained earnings 132, , ,215 Total equity 177, , ,222 Current liabilities Trade and other payables 12 45,388 41,556 48,869 Financial liabilities 14 1,033 Current tax liabilities 10,836 7,203 4,044 56,224 48,773 53,946 Non-current liabilities Deferred tax liabilities 3,384 1,575 1,426 Retirement benefit obligations 13 12,225 13,215 13,082 15,609 14,790 14,508 Total equity and liabilities 249, , ,676

25 Consolidated cash flow statement 20 Cash flows from operating activities Six months ended Year ended 30 September 31 March (unaudited) (unaudited) (audited) Profit for the year 15,715 15,570 33,440 Income tax 7,341 7,744 16,134 Net finance revenue (272) (28) (365) Amortisation of intangible assets 1, ,749 Depreciation of property, plant and equipment ,948 (Gain)/Loss on disposal of property, plant and equipment (49) Share-based payments ,184 Difference between pension contributions paid and amounts recognised in the Consolidated income statement (9) (256) (1,389) Changes in working capital: Trade and other receivables 1,055 18,227 9,684 Trade and other payables (1,339) (14,724) (11,123) Changes to fair value of forward foreign exchange contracts (1,108) (4,715) (3,610) Cash generated from operating activities before tax 24,147 24,368 47,690 Income taxes paid (3,390) (10,738) (22,114) Net cash generated from operating activities 20,757 13,630 25,576 Cash flows from investing activities Purchase of property, plant and equipment (955) (734) (1,479) Purchase of intangible assets (58) (15) (1,305) Acquisition of subsidiaries and business undertakings, net of cash acquired (13,390) Proceeds from disposal of property, plant and equipment Interest received ,114 Purchase of treasury deposits (net) 76 (80,105) (106,555) Net cash used in investing activities (13,724) (80,365) (108,127) Cash flows from financing activities Interest paid (15) (3) (17) Purchase of own shares (430) (653) (653) Proceeds from the issue of shares Dividends paid to equity holders of the parent (9,423) (4,402) (6,436) Net cash flows used in financing activities (9,866) (5,057) (6,990) Net (decrease)/increase in cash and cash equivalents (2,833) (71,792) 89,541 Net foreign exchange difference (6,739) (588) 6,546 Opening cash and cash equivalents 43, , ,164 Closing cash and cash equivalents 33,597 53,784 43,169