AVEVA GROUP PLC

Capital Markets Day

Current trading update

Five-year financial targets set

Revenue synergies of at least $100m expected from OSIsoft acquisition in FY26

AVEVA Group plc ('AVEVA' or 'the Group') will host a virtual capital markets day this afternoon starting at 2pm BST. The event will be webcast live and details can be found at https://investors.aveva.com.

In relation to this, the Group provides an update on current trading and sets new five-year financial targets.

Current trading

AVEVA has had a good start to FY22, achieving approximately 10% revenue growth in the first two months of the financial year on an organic constant currency basis.

Five-year financial targets

AVEVA is introducing new financial targets. These are to the financial year ending 31 March 2026 (FY26) on an organic constant currency basis. They assume that the global economic outlook is stable to moderately growing and that trends toward digitalisation continue at current rates. The targets are:

·    a revenue Compound Annual Growth Rate (CAGR) of around 10%;

·    recurring revenue at over 80% of total revenue;

·    adjusted EBIT margin of at least 35%; and,

·    cash conversion of 100%.

AVEVA targets a revenue CAGR of around 10% between FY21⁽¹⁾ and FY26. AVEVA's revenue growth will be supported by revenue synergies relating to the OSIsoft acquisition, which are expected to be at least $100 million in FY26.

The Group targets recurring revenue over 80% of total revenue in FY26. Recurring revenue growth is expected to be driven by a continued transition to Subscription and the accelerated adoption of Cloud by customers. Recurring revenue is calculated as Subscription revenue, including Cloud revenue, plus Maintenance revenue.

AVEVA targets an adjusted EBIT margin of at least 35% in FY26. Adjusted EBIT is 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.

The Group targets conversion of adjusted net profit to free cash flow of 100% across the target period. Adjusted net profit is calculated on the same basis as adjusted EBIT and includes the tax effects of these adjustments. Free cash flow is calculated as cash generated from operating activities before tax, less income taxes paid, capital expenditure, lease repayments and interest.

⁽¹⁾ Pro forma revenue for AVEVA and OSIsoft was £1,196.1 million in FY21.

Enquiries:

AVEVA Group plc

Matt Springett, Head of Investor Relations

Tel: +44 (0)7789 818 684

FTI Consulting LLP

Edward Bridges / Dwight Burden

Tel: 020 3727 1000