AVEVA Group PLC: Results For The Year Ended 31 March 2017

AVEVA Group Plc
Results for the year ended James Kidd, CEO

David Ward, CFO
31 March 2017 23 May 2017
| Copyright © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
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

forward-looking statements to reflect events or circumstances
occurring after the date on which they are made or to reflect the
occurrence of future events.
Strategic progress
James Kidd, CEO
3 | Copyright © 2017 AVEVA Solutions Limited and its subsidiaries. All rights reserved.
Summary
• Resilient performance in the context of challenging end

markets of Oil & Gas and Marine
• Revenue up 7.1%, assisted by currency translation
• Strong execution against growth strategy in other markets,
such as Power
• Organisational changes complete
• Well positioned for growth evidenced by a number of important
wins
• Total dividend up 11% to 40p/share – final dividend 27p/share
For Every
Physical Asset
there should be a
Digital Asset
Market developments
• Oil & Gas

• Weak end market demand with global industry
capital expenditure falling by over 40% FY17 revenue by end market
• Significant impact on the workloads of our EPC
customers Petrochemical &
Chemical
Other*
• AVEVA’s 2017 revenue was resilient
• Marine
• Limited new ship orders in 2016/17 Oil & Gas
• Over-capacity in world’s fleet Power
• AVEVA’s performance was resilient, recurring

revenue flat
Marine
• Power
• Positive market trends
• Market share gains, particularly in North America *Other includes Mining, Paper
& Pulp and Pharmaceutical
• Petrochemical & Chemical
• Ongoing investment in the sector, particularly in Asia
• Stable market conditions on a global basis
• Success in winning new OO customers
Strategic foundations
AVEVA’s industry-leading software is used by our customers to create

digital assets, that allow them to manage continual change as they design,
build and operate some of the world’s most complicated physical assets
MT3D Substantial cross-selling opportunity
Owner Operators Regulatory compliance and operational efficiency
High growth and strategic significance

Growth Markets
Extend presence across all process industries
Broaden Market Exposure
Unify applications onto common platform
SaaS and the Cloud
Strategic progress: MT3D
• Leveraging EPC customer base to

cross-sell MT3D products Revenue by Product Area (FY17)
• Steady progress in sales

• 26.5% of total revenue (FY16 25.2%) MT3D
• Constant currency growth of 2.1%

3D
• MT3D is central to our concept of the

Digital Asset
• MT3D products were core to our key
OO wins
Strategic progress: Owner Operators
• Significant incremental revenue AVEVA OO Revenue (FY17)

opportunity
• Solid progress with growth of 5.4% constant
currency
OO
• 9 new OO customers
• Represent 16.2% of total revenue (FY16 14.9%)
• Over 30 mandates from OOs
• Strong interest in SaaS to deliver the Digital
Asset
• New SaaS offerings of Asset Visualisation and
Information Standards Manager have oil majors
as early adopters
9
Strategic progress: Growth markets – North America
• Good progress with constant currency revenue

growth of 19%
• Focus on winning new logos
• Revenue from OOs >40% of revenue
• Strong progress in Power and Chemicals
• Leveraging the success of Southern
Company (Power) and Eastman (Chemical)
• Actively looking for M&A opportunities
10
Strategic progress: Broaden market exposure
• Excellent progress in Power market

• Constant currency revenue growth 11%
• Market share gains
• Significant new wins in Power

• KEPCO E&C (South Korea)
• Southern Company (USA)
• TerraPower (USA)
• Japan Nuclear Fuel (Japan)
• Strong progress in other target markets

• Key OO wins in Chemicals and Pharma in Europe
and the US
• Revenue from the steel fabrication sector grew
10% constant currency
• Important reference win with Jacobs for BIM
project
• Growth in Paper & Pulp
11
Operational highlights (1)
• Regional performance
• North America strong
• Asia and Europe mixed but broadly stable
• Latin America weak
• EPCs
• Some reduction in rental seats due to lower activity
• Strong push to drive efficiency on projects
• Organisational changes
• Appointed Chief Revenue Officer (starts 1 June)
• More customer facing people on Executive committee
• Simplified regional structure implemented
• Important competitive wins

• Over 30 new customers including Owner Operators, major shipyards and EPCs
Operational highlights (2) key customer wins
• Sinopec Engineering Group

• Adopted AVEVA IE&D solution for effective design, collaboration and improved efficiency
• Indian Oil Company
• Selected AVEVA E3D as its strategic design platform for brownfield projects
• Southern Company
• Chose entire AVEVA portfolio to improve project execution efficiency and asset
performance
• KEPCO E&C
• Adopted AVEVA IE&D solution for new nuclear power plant projects
• Japan Nuclear Fuel
• Nuclear energy company chose AVEVA E3D
• Bharat Petroleum
• Indian state owned Oil & Gas company chose AVEVA E3D
• MV Werften Wismar
• A developer and builder of luxurious river ships, polar mega yachts and the world’s largest
cruise liners chose AVEVA Marine
13
Operational highlights (3) – AVEVA E3D
• Strong momentum continues Group revenue contribution from E3D

(£m)
• Constant currency growth of 35% 30.0
• Almost 13% of revenue (FY16 <10%) 25.0
20.0
• Price premium of 15% achieved 15.0
10.0
• Around a quarter of the Plant 3D base
converted 5.0
0.0
• Profits from AVEVA E3D qualify for FY 2015 FY 2016 FY2017
lower tax rate through Patent Box
Technology update
• Ongoing focus on developing MT3D

• Continual development of platform
• New Electrical and Instrumentation applications
• Development of materials management
solution
• Launch and deployment of Cloud platform

• Launch of AVEVA Connect™ and AVEVA NET
Connect™ in October 2016
• SaaS based Asset Visualisation and Information
Standards Management
• Vision for Digital Assets is becoming ever-more

compelling as enabling technology evolves
• Continuous improvements to AVEVA Engage
• Microsoft HoloLens prototype attracting lots of
interest
15
50 year anniversary
• Industry-leading software that is used

to design, build and operate some of
the world’s most complicated physical
assets
• Founded in 1967 by Ministry of
Technology at Cambridge University
• Fifty years of innovation and building
trust with our customers
• Continuing to invest in R&D (15% of
revenue, approximately £300m
invested in 10 years)
16
Finance review
David Ward, CFO
Financial highlights
• Revenue up 7.1% to £215.8 million

• Constant currency revenue down 3.8% - H2 declined 2.1% with
LatAm continuing to impact
• High proportion of recurring revenue at 76.9%
• Adjusted profit before tax up 7.4% to £55.0 million
• Cash at year end of £130.9 million (2016 – £107.9 million)
despite increased dividend payments
• Total dividend of 40.0 pence per share up 11.1% (FY16 – 36.0
pence per share)
Financial highlights – Income statement
Constant
2017 2016 Change
currency
Revenue £215.8m £201.5m 7.1% (3.8)%
Total costs £161.2m £150.3m 7.3% (2.0)%
Net interest receivable £0.4m - - -
Adjusted* profit before tax £55.0m £51.2m 7.4% (8.5)%
Adjusted* profit before tax

25.5% 25.4% +10bps -
margin
Adjusted* diluted EPS 66.81p 61.91p 7.9%
Total dividend per share 40.0p 36.0p 11.1%
*Adjusted profit before tax, adjusted profit margin and adjusted diluted 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 diluted earnings per share also includes the tax
effects of these adjustments.
Resilient recurring revenue
2017 2016 Constant

£m £m Change currency
Annual fees 71.8 63.4 13.4% (0.4)%
Rental licence fees 94.2 90.6 3.9% (4.6)%
Recurring revenue 166.0 154.0 7.8% (2.9)%
Initial licence fees 32.2 29.4 9.7% (2.5)%
Training & services 17.6 18.1 (3.0)% (14.0)%
Total 215.8 201.5 7.1% (3.8)%
• Recurring revenue up to 76.9% of overall revenue (FY16 – 76.4% million)

• Annual fees broadly flat year-on-year
• Rental revenue declined 4.6% in constant currency terms, but only 0.6% in H2, assisted by deals delayed
from H1
• Initial fees resilient in tough market conditions. New OO customers favoured Initials
• Training & services revenue down due to fewer large customer implementation projects
Strong focus on cost control
2017 2016 Constant

£m £m Change currency
Cost of sales 14.2 14.7 (3.1)% (12.1)%
Research & Development 27.2 25.7 5.7% (1.0)%
Selling & distribution 89.2 83.2 7.3% (3.1)%
Administrative 30.6 26.7 14.4% 6.6%
Total opex 147.0 135.6 8.4% (0.9)%
Total costs 161.2 150.3 7.3% (2.0)%
• Restructuring has increased efficiency in R&D and Selling & Distribution

• Selling & distribution costs benefited from a lower bad debt charge of £0.6m (2016 - £3.4m)
• Tight administrative cost control offset in the year by minor investments and small increase in staff
bonuses
* Costs are 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. Constant currency is defined as the period’s reported costs restated to reflect the previous year’s average exchange
rates.
Exceptional items
2017 2016
£m £m
Restructuring costs 4.2 4.5
Acquisition and integration costs – 10.5
Indemnified receivable claim – 8over8 (1.8) –
Interest on sales taxes exposure (0.5) 0.2
Net charge 1.9 15.2
• 2017 restructuring costs related to the rationalisation of offices and reduction in

headcount in specific areas of the business. Also included are the redundancy
costs incurred in eliminating the Regional Operations layer of management
• 2016 acquisition and integration costs relate to the aborted transaction with
Schneider Electric
Strong balance sheet
2017 2016
£m £m
Non-current assets 89.9 87.5
Accounts receivable 85.0 88.6
Other receivables 11.9 12.1
Net cash and deposits 130.9 107.9
Total assets 317.7 296.1
Other liabilities 47.3 43.0
Deferred revenue 45.9 46.9
Pension liabilities 3.8 5.2
Shareholders’ equity 220.7 201.0
Total shareholders’ equity and liabilities 317.7 296.1
• The Board believes that it is important to maintain a strong balance sheet

• This allows us to provide confidence in the strength of our business to our customers and have at hand
sufficient resources to invest in AVEVA’s future growth
Strong financial foundations
• Net cash up 21% Net cash Operating cashflow

to £130.9m
£130.9m £57.2m
• Operating
cashflow before
tax increased by
58.2% to £57.2m Progressive dividend Effective tax rate*
• Progressive 45p 35.0%
dividend policy – 40p 30.0%
total dividend up 35p
25.0%
11% to 40p 30p
25p 20.0%
• Effective tax rate 20p 15.0%
down a further 15p 10.0%
40bp to 22.1% as 10p
5.0%
first benefits from 5p
UK Patent Box are 0p 0.0%
FY FY FY FY FY FY2017
FY FY FY FY FY FY
realised 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016
Interim Final *effective tax rate on adjusted profit,

adjusting for exceptional items and other
normalised items
Regional performance
Reinvestment in organic growth
Americas EMEA Asia Pacific

FY17 Revenue FY17 Revenue FY17 Revenue
£32.9m
Value accretive acquisitions £106.7m £76.3m
Regional execution: Americas
2017 2016
Change
£m £m
Americas Regional revenue 32.9 28.3 15.9%

£32.9m
Regional costs (20.5) (20.0) 2.5%
(2016 - £28.3m)
Regional contribution 12.3 8.3 48.2%
Performance Focus
• Very strong growth in North America, with important • Continue to focus on Owner Operators
wins against the competition in North America
• Owner Operator strategy reaping rewards • Power is a key opportunity
• Weak performance in LatAm with regional revenue now • Closely monitor possible opportunities
down to low single digit levels in LatAm
• Overall revenue grew 3.8% in constant currency terms
Regional execution: Asia Pacific
2017 2016 Change

£m £m
Asia Pacific Regional revenue 76.3 71.5 6.6%

£76.3m
Regional costs (30.3) (27.6) 9.6%
(2016 - £71.5m)
Performance Focus
• Good performance with OOs with several major new • Improved performance in China
customer wins • Focus on large OOs in South East Asia
• Revenue declined 6.3% in constant currency terms • Some Marine opportunities in Japan
• Stronger performance in Japan and South East Asia
• Marginally weaker in S. Korea and India, in tough
market conditions for Marine
Regional execution: EMEA
2017 2016
Change
£m £m
EMEA Regional revenue 106.7 101.6 5.0%

£106.7m
Regional costs (42.3) (42.8) (1.1)%
(2016 -
£101.6m)
Performance Focus
• Solid performance in the context of tough • Central & Eastern Europe: Chemicals and Pharma
market conditions for our key Oil & Gas EPC • Southern Europe: Power and BIM
customers
• Northern Europe: Marine, Pharma, Power, Oil &
• Overall revenue declined 4.2% in constant Gas
currency terms
• Stronger performance in Germany and Finland
• All other territories broadly flat or only marginal
declines
Outlook
James Kidd, CEO
Summary and outlook
• Resilient performance in challenging markets in FY17, with

demonstrable progress against strategy
• Strong market opportunity over the longer-term
• Demand cycles within our end markets have had an impact on growth
in the short term
• As end market headwinds lessen, the growth resulting from our

strategic initiatives will begin to show at the Group level
• Board remains confident in outlook for the business
Appendices
Summary income statement
2017 2016 Constant

Change
£m £m currency
Total revenue 215.8 201.5 7.1% (3.8)%
Cost of sales (14.2) (14.7) (3.1)% (12.1)%
Gross profit 201.6 186.8 7.9% (3.2)%
Operating expenses (147.0) (135.6) 8.4% (0.9)%
Net interest receivable 0.4 – - -
Adjusted profit before tax 55.0 51.2 7.4% (8.5)%
Exceptional items (1.9) (15.2) - -
Other normalised items (6.2) (6.6) - -
Reported profit before tax 46.9 29.4 59.5% -
Tax (8.8) (9.0) - -
Profit after tax 38.1 20.5 85.9% -
Adjusted effective tax rate 22.1% 22.5% - -
* Revenue on a constant currency basis is defined as the period’s reported revenue restated to reflect the previous year’s average exchange rates.
Improving H2 performance
H1 17 vs. H2 17 vs. Full year

H1 16 H2 16 change
H117 H217 2017 Full year constant constant constant
£m £m £m change FX FX FX
Annual fees 34.7 37.2 71.8 13.4% 2.6% (3.1)% (0.4)%
Rental licence fees 29.4 64.8 94.2 3.9% (12.8)% (0.6)% (4.6)%
Recurring revenue 64.1 102.0 166.0 7.8% (5.3)% (1.5)% (2.9)%
Initial licence fees 11.6 20.6 32.2 9.7% (8.0)% 1.0% (2.5)%
Training & services 8.6 9.0 17.6 (3.0)% (11.1)% (15.1)% (14.0)%
Total 84.3 131.6 215.8 7.1% (6.3)% (2.1)% (3.8)%
Strong cash generation
2017 2016
£m £m
Net cash from operating activities 57.2 36.1

Tax paid (9.3) (11.8)
Capital expenditure (net) (2.4) (2.1)
Interest received (net) 0.7 0.6
Dividends paid (27.5) (19.8)
Other (0.4) 1.7
Net increase in cash 18.3 4.7

Foreign exchange movement 4.7 (0.6)
Opening cash and deposits 107.9 103.8
Closing cash and deposits 130.9 107.9
Reported costs
Research & Selling &

2017 Development Distribution Admin
(£m) (£m) (£m) Total
As reported 31.9 93.0 31.9 156.8
Normalised adjustments (4.7) (3.8) (1.3) (9.8)
Normalised costs 27.2 89.2 30.6 147.0
2016 25.7 83.2 26.7 135.6
Change 5.8% 7.2% 14.6% 8.4%
Constant currency change (1.2)% (3.1)% 6.0% (0.9)%
• Normalised items include amortisation of intangibles (excluding other software) of

£5.8 million (2016 – £5.6 million), share-based payments of £1.1 million (2016 –
£0.5 million), gains on fair value of forward foreign exchange contracts of £0.7
million (2016 – loss of £0.4 million) and exceptional items of £3.6 million (2016 –
£15.2 million)
Major currencies
Average rate Average rate

Currency % of 2016/17 year to 31 year to 31 Impact on
revenue March 17 March 16 Change revenue
EUR 1.19 1.37 (12.8)%
NOK 10.91 12.48 (12.5)%
RUB 82.64 96.33 (14.2)%
EMEA 50% +9.6%
CNY 8.79 9.54 (7.8)%
INR 87.66 98.60 (11.1)%
JPY 141.50 181.26 (21.9)%
KRW 1,502.6 1,743.3 (13.8)%
AUD 1.74 2.05 (15.2)%
Asia Pacific 35% +13.8%
USD 1.31 1.51 (13.3)%
BRL 4.32 5.41 (20.0)%
MXP 25.10 25.05 0.2%
Americas 15% +11.7%
Total 100% +11.4%
Definition of terms
Item Definition Item Definition
Initial Licence Fee (ILF) - users are charged an initial licence fee per seat together with Architecture, engineering and
Initial Licence Fee AEC
an obligatory annual fee. construction
Charged in association with an ILF providing customer support and maintenance, Engineering, Procurement &
Annual Fee which includes core updates. Users must pay the annual fee in order to maintain the EPC
Construction company
right to use the software.
OO Owner-operator company
An alternative to the ILF plus annual fee model, there are three different types of
Rental licence rental licence: Monthly invoicing, contractual period (typically one year, invoiced up More than 3D: refers to the
front) or token licensing. software applications in the
The user pays for a 'basket of tokens' representing licences to use different software AVEVA portfolio that sit outside of
MT3D
Tokens products over a defined period of time. The customer can draw down on these the core 3D platforms, PDMS and
licences as required. AVEVA E3D. This includes AVEVA
NET
ILFs – recognised upfront after usual delivery and acceptance conditions are met.
Annual fees – recognised ratably over the period (typically 12 months). Rental ERM Enterprise Resource Management
Revenue recognition licences - an estimated licence element is recognised up front, and the remaining
maintenance element is recognised ratably over the contracted period. Services are OIM Operations Integrity Management
recognised on a percentage complete basis.
AVEVA Everything3D™, the next
AVEVA
The sales force is organised into three geographic regions. Revenue is allocated based generation 3D design platform
E3D™
Revenue by geography on where the contracting entity of the customer is based. AVEVA's Global Accounts from AVEVA.
often choose to purchase software in one geography for use in another.
BIM Building Information Modelling
Recurring revenue Annual fees plus rental fees.
Strategic incentive to standardise
Profit Before Tax adjusted to exclude the effects of amortisation of intangibles the sales process of holistic
‘One
Adjusted PBT (excluding software), share-based payments, gain/loss on fair value of forward foreign AVEVA Solutions across all
AVEVA’
exchange contracts and exceptional items. industry sectors. (current wording
exposes historic internal politics)
The period’s reported result restated to reflect the previous year’s average exchange
Constant currency
rates, for the purpose of a constant currency comparison. Integrated Engineering & Design
Adjusted PBT is used to calculate the adjusted earnings per share, after an adjustment portfolio that enables highly
Adjusted EPS AVEVA productive and collaborative
for the tax effect of the items adjusted.
IE&D™ working across multiple
Cash flow from operations divided by the operating profit for the period, measured as engineering and design
Cash conversion disciplines.
a percentage.
www.aveva.com
@avevagroup
Linkedin.com/company/aveva
About AVEVA
AVEVA software and services enables our customers to solve the world’s most
complex engineering and design challenges. Discover how we can help you
redefine engineering possibilities to successfully create and manage world-class
capital-intensive assets. Headquartered in Cambridge, England, AVEVA employs
more than 1,600 staff in 50 offices around the world.

AVEVA Group PLC: Results For The Year Ended 31 March 2017

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AVEVA Group PLC: Results For The Year Ended 31 March 2017

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AVEVA Group Plc

Results for the year ended James Kidd, CEO

The Company shall not be obliged to disclose any revision to these

• Resilient performance in the context of challenging end

• Oil & Gas

• AVEVA’s performance was resilient, recurring

AVEVA’s industry-leading software is used by our customers to create

MT3D Substantial cross-selling opportunity

Owner Operators Regulatory compliance and operational efficiency

High growth and strategic significance

• Leveraging EPC customer base to

• Steady progress in sales

• Constant currency growth of 2.1%

• MT3D is central to our concept of the

• Significant incremental revenue AVEVA OO Revenue (FY17)

• Good progress with constant currency revenue

• Excellent progress in Power market

• Significant new wins in Power

• Strong progress in other target markets

• Important competitive wins

• Sinopec Engineering Group

• Strong momentum continues Group revenue contribution from E3D

• Almost 13% of revenue (FY16 <10%) 25.0

lower tax rate through Patent Box

• Ongoing focus on developing MT3D

• Launch and deployment of Cloud platform

• Vision for Digital Assets is becoming ever-more

• Industry-leading software that is used

• Revenue up 7.1% to £215.8 million

Revenue £215.8m £201.5m 7.1% (3.8)%

Total costs £161.2m £150.3m 7.3% (2.0)%

Net interest receivable £0.4m - - -

Adjusted* profit before tax £55.0m £51.2m 7.4% (8.5)%

Adjusted* profit before tax

Adjusted* diluted EPS 66.81p 61.91p 7.9%

Total dividend per share 40.0p 36.0p 11.1%

2017 2016 Constant

Annual fees 71.8 63.4 13.4% (0.4)%

Rental licence fees 94.2 90.6 3.9% (4.6)%

Recurring revenue 166.0 154.0 7.8% (2.9)%

Initial licence fees 32.2 29.4 9.7% (2.5)%

Training & services 17.6 18.1 (3.0)% (14.0)%

Total 215.8 201.5 7.1% (3.8)%

• Recurring revenue up to 76.9% of overall revenue (FY16 – 76.4% million)

2017 2016 Constant

Cost of sales 14.2 14.7 (3.1)% (12.1)%

Research & Development 27.2 25.7 5.7% (1.0)%

Selling & distribution 89.2 83.2 7.3% (3.1)%

Administrative 30.6 26.7 14.4% 6.6%

Total opex 147.0 135.6 8.4% (0.9)%

Total costs 161.2 150.3 7.3% (2.0)%

• Restructuring has increased efficiency in R&D and Selling & Distribution

• 2017 restructuring costs related to the rationalisation of offices and reduction in

Non-current assets 89.9 87.5

Accounts receivable 85.0 88.6

Other receivables 11.9 12.1

Net cash and deposits 130.9 107.9

Total assets 317.7 296.1

Other liabilities 47.3 43.0

Deferred revenue 45.9 46.9

Pension liabilities 3.8 5.2

Shareholders’ equity 220.7 201.0

Total shareholders’ equity and liabilities 317.7 296.1