Results for the year ended 31 March 2012 -...
Transcript of Results for the year ended 31 March 2012 -...
Results for the year ended 31 March 2012
James Kidd, Chief Financial Officer
Richard Longdon, Chief Executive
Copyright 2012 AVEVA Solutions Limited. 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.
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Strategic highlights
Strong performance in Engineering & Design Systems
Significant growth in Americas (+24%) and EMEA (+21%)
Enterprise Solutions strong momentum
China successfully re-organised, growth back on track
Strong financials - cash conversion 115%, recurring revenue 70%
Increased investment in new technology & products
Focused M&A strategy
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Fundamental drivers
CAPEX plans for deep-water dominate future spend
Complexity is increasing
EPC backlogs surpass 2008 levels
Safety & compliance key drivers
Trend to modular construction
Mining & Metal – very strong growth from a small base
New Centre of Excellence for mining established in Chile
Pulp & Paper, Chemical, petrochemical, pharmaceutical are also areas of growth
Investment delivery & momentum
A true differentiator for AVEVA
Backlog reflects business momentum
Expect break even in FY’13
Domain expertise a barrier to entry
Oil & Gas
Other Enterprise Solutions Brazil expansion continues, more large deals signed
China reorganised and back on growth path
New focus on India in FY’13
Russia gaining momentum
Emerging Markets
Closed large ILF deals with major ship builders for offshore projects
Still see backlog in very large shipbuilders
Naval shipbuilding increasing
Offshore
Focus on India and China (nuclear)
$2 trillion investment in power generation (2007-2015)
Dash for gas
Energy mix not seen changing short term
Marine Power
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Positioned for growth
Regional expansion – (Latin America, India, China)
New product launches – extending competitive lead
Focused M&A strategy
Strong track record of execution
Customer driven solutions
Market leading products
Local customer support
Global presence
Exposed to multiple growth markets
Oil & Gas
Metal & Mining
Marine
Power
AVEVA
Petro Chem
Pulp & Paper
Representative only, not to scale
£
Time
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Strong growth
Engineering hours in design phase for large projects are increasing and driving demand
Investment in new Centres of Excellence in Chile (Mining), Belgium & Germany (Structural Design), UK (3D Data Capture)
High level of cross-sales with existing customers
Extending technology lead through on-going R&D
Engineering & Design Systems
8
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ES grew strongly
• Expect break even in FY’13
• Over 20 new customers
Momentum building rapidly
• Backlog +59% in the year (including licenses, services & maintenance)
More focused development as separate line of business
New dedicated owner-operator sales force
Enhanced service delivery model
Expanding partner network
Enterprise Solutions
Project
management
FEED
Decommissioning
Revamp Maintenance Operations
Construction
Materials
management
Procurement
Engineering
9
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Innovation remains the lifeblood of AVEVA
R&D investment +14% in the year to £32 million
• Engineering, Electrical and Laser Scanning successfully launched in FY’12
Very exciting product pipeline in EDS over next 12 months
LFM revolutionising 3D creation
• c.50% reduction in man-hours
Further development of AVEVA NET and ERM
CADCentre
World’s first 3D plant design system – PDMS
World’s first intelligent P&ID launched
World’s first plant walk-through visualisation
World’s first automatic clash detection
World’s most powerful solution for multi-site projects
World’s first Deployment of AVEVA NET
World’s first integrated 3D Laser scanning solution
World’s first integrated marine & plant design
World’s first open, standards-based integration of P&ID and 3D
design
World’s most comprehensive 3D laser scanning solution
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Strong recurring revenue base (70%)
Plant Exec Council to partner with key customers
Co-developed products with strategic customers
Enduring customer relationships
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Strategic acquisition of Bocad adding world class structural detailing capability
LFM fully integrated, further extending AVEVA’s substantial technology lead
Pipeline of acquisition opportunities remains healthy
Focused and disciplined approach
M&A strategy update
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
* Adjusted profit before tax and adjusted basic earnings per share are calculated before amortisation of intangible assets, share-based payments, gain/loss on
fair value of forward 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.
Financial highlights
March 2012 March 2011
Total revenue £195.9m £174.0m 13%
Adjusted* profit before tax £62.3m £54.7m 14%
Adjusted* basic EPS (pence) 63.81p 56.08p 14%
Adjusted profit before tax margin 31.8% 31.4%
Final dividend per share (pence) 17.0p 14.89p 14%
Net cash £178.9m £153.2m 17%
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Summary income statement (statutory) March 2012
£m
March 2011
£m
13%
14%
14%
14%
Total revenue 195.9 174.0
Costs of sales (16.1) (18.7)
Research and Development costs (32.1) (28.1)
Selling and distribution expenses (75.0) (62.7)
Administrative expenses (16.2) (15.3)
Net interest receivable 1.3 0.6
Normalised items 4.5 4.9
Adjusted profit before tax 62.3 54.7
Reported profit before tax 57.7 49.8
Income tax (17.7) (15.3)
Profit after tax 40.0 34.5
Adjusted profit margin 31.8% 31.4%
Adjusted basic EPS 63.81p 56.08p
20%
6%
16%
16%
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
March
2012
£m
March 2011
£m
Summary balance sheet
Non-current assets 62.3 58.4
Accounts receivable 63.7 68.4
Other receivables 5.2 5.8
Net cash and deposits 178.9 153.2
Total assets 310.1 285.8
Other liabilities 45.2 44.0
Deferred revenue 33.5 36.4
Pension liabilities 9.9 3.0
Shareholders’ equity 221.5 202.4
Total shareholders’ equity and liabilities 310.1 285.8
Strong focus on cash collection – cash conversion 115%
Deferred revenue included significant contract in prior year
UK pension scheme impacted by discount rate
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Revenue by category
Organic revenue growth rate 11% - strong H2
Recurring revenue up 18% to £138m
Rental licences up 26%, mix changing
Initial licenses recovered in H2, China back on track
Enterprise Solutions driving services (+31%)
No overall FX impact (constant currency basis)
Split at 31 March 2012
Initial 19%
11%
70%
Services
Recurring
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Engineering & Design Systems
March 2012
£m March 2011
£m
Revenue
Annual fees 43.1 42.0
Rental licence fees 86.9 66.6
Recurring revenue 130.0 108.6
Initial licence fees 33.2 37.9
Services 9.3 8.6
Total revenue 172.5 155.1
Operating costs (39.0) (38.6)
Contribution 133.5 116.5
EPCs driving recurring revenue +20%
H2 initial licences £18.5m
Cost base stable
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Enterprise Solutions
Strong backlog up 59% to £12.7m (2011
£8m)
March 2012
£m
March 2011
£m
Revenue
Annual fees 4.7 3.7
Rental licence fees 3.3 4.7
Recurring revenue 8.0 8.4
Initial licence fees 4.1 3.1
Services 11.4 7.4
Total revenue 23.5 18.9
Operating costs (27.9) (24.8)
Contribution (4.4) (5.9)
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
AVEVA – global performance
Americas
£38.2m
(2011 - £30.8m) Growth 24%
EMEA
£93.3m (2011 - £76.9m)
Growth 21% Asia Pacific
£64.4m (2011 - £66.3m)
Growth -3%
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Extending technology leadership • Exciting product pipeline in core EDS
• Focused and disciplined approach to acquisitions
Enterprise Solutions a $2 billion market opportunity • Material positive momentum in backlog entering FY’13
Sustainable growth • Complexity and safety driving investment in design
• Broad exposure across multiple growth markets – Oil & Gas, China, India, Brazil, Mining, Power…
• High recurring revenues, margins and cash conversion
Outlook
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Net cash from operating activities 64.7 44.7
Tax paid (16.9) (13.8)
Capital expenditure (net) (3.1) (2.6)
Acquisitions (5.7) (13.4)
Interest received (net) 1.4 1.2
Purchase of own shares (0.6) (0.4)
Dividends paid (12.8) (11.7)
Net increase in cash 27.0 4.0
Foreign exchange movement (1.3) (0.5)
Opening cash and deposits 153.2 149.7
Closing cash and deposits 178.9 153.2
Summary cash flow
March 2011
£m
March 2012
£m
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
ASPEN
HEXAGON / INTERGRAPH
BENTLEY
DASSAULT
IN-HOUSE SYSTEMS
Oracle
SAP
PTC
DASSAULT
SIEMENS (UGS)
ASPEN
SIEMENS
AUTODESK
AVEVA products and competitive landscape
Engineering Design Systems Enterprise Solutions
Project Phase 2-6 years ($1.6bn market)*
Operations up to 50yrs ($2.1bn market)
*Source: Arc
Engineering Design Systems Enterprise Solutions
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
First rental sale
Example AVEVA NET model (yearly rental fees)
Ongoing services
Additional modules
Software/services split moves from 40/60 to 75/25 by year 5
Stronger annuity stream for maintenance fees in operations
Services impact margin initially
Services may be partly outsourced
Y0 6m 12m 18m 24m 36m 48m 60m
Software
Services
Additional modules
Copyright 2012 AVEVA Solutions Limited. All rights reserved.
Technology leadership based on well-invested platform and unrivalled capabilities
Virtuous Cycle of AVEVA’s Continual Progression model
Key Technological Edge
Object based 3D from the start
Open standards
No limit to data size
Flexible and extendable
Easy to understand and use
Recurring
Revenue
Continual
Investment
Improved
Product
Leader NOT Follower
Concurrent multi-discipline design
Integrated Hull & Top-side design
3D navigation at the heart of Asset Management
Fast track modelling from laser data
Global work share