AVEVA GROUP PLC

RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020

 AVEVA delivers a creditable performance in H1 FY21 in a Covid-disrupted trading environment and a strong H2 pipeline gives the Board confidence in its outlook for the full year. OSIsoft’s strong trading has continued.

Summary results

Highlights

• First half results were broadly in-line with the Group’s plan for the shape of the year, save for an increased FX translation headwind and two medium-sized subscription deals slipping from Q2 into Q3
• Adjusting for the previously disclosed early renewal of a significant contract, which caused approximately £20 million pull forward of revenue into September 2019, organic constant currency revenue³ declined 6.8%
• Without this adjustment organic constant currency revenue declined³ by 11.7%
• Recurring revenue as a percentage of total revenue increased to 64.2% (H1 FY20: 61.9%) and grew in three of AVEVA’s four business units 
• Reduction in adjusted costs² of 8.3% (5.8% on a constant currency basis) as a result of tight cost control
• Adjusted EBIT of £56.3m (H1 FY20: £90.6m) was impacted by the decline in revenue
• Strong focus on strategic investments to drive future growth with R&D investment in AI, Cloud and Extended Reality and digital marketing investment increased 
• AVEVA’s position as a global leader in industrial software will be strengthened by the proposed acquisition of OSIsoft, a global leader in real-time industrial data software
• Strong second half order pipeline underpins the Board’s confidence in its outlook for the full year
• Interim dividend maintained at 15.5 pence per share, reflecting confidence in AVEVA’s resilience

OSIsoft update

• OSIsoft has continued to perform strongly in the seven-month period ended 31 July 2020 with revenue increasing by 9.5% compared to the seven months ended 31 July 2019 and operating profit increasing by 110.1%. This positive trading momentum has continued in recent months, with billings increasing by approximately 12% in the first nine months of 2020 compared to the same period last year
• Regulatory approvals on track. Expected to complete between December 2020 and February 2021
• Underwritten Rights Issue to be launched very shortly 

Chief Executive Officer, Craig Hayman said:

“Given the Covid-19 disruption, AVEVA has performed creditably in what has been a relatively tough trading environment in the first half, and against very tough comparatives. We continue to see solid demand from our customers for AVEVA’s software to help them digitize and the long-term trend towards digitalization of the industrial world remains very exciting. Our order pipeline for the remainder of the year is strong and we expect the Group to achieve year-on-year revenue growth in the second half of the financial year. Despite the challenging market conditions, we have continued to make significant investments and progress in strengthening AVEVA’s position as a global leader in industrial software, including agreeing the proposed acquisition of OSIsoft.”

Notes

^{1 Recurring revenue is defined as subscription revenue plus maintenance revenue.
2 Adjusted metrics 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. Adjusted Earnings Per Share also includes the tax effects of these adjustments.
3 Organic constant currency revenue excludes a currency translation impact of £7.1 million; and adjusts for the disposals of Wonderware Italy, Germany and Scandinavia.}

About AVEVA

AVEVA is a global leader in engineering and industrial software, driving digital transformation across the entire asset and operations lifecycle of capital-intensive industries. The company’s engineering, planning and operations, asset performance, and monitoring and control solutions deliver proven results to over 16,000 customers worldwide. AVEVA’s customers are supported by the largest industrial software ecosystem, including 4,200 partners and 5,700 certified developers. AVEVA is headquartered in Cambridge, UK, with over 4,400 employees at 80 locations in over 40 countries. For more details visit: www.aveva.com

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