Interim Management Statement

26 January 2015

AVEVA Group plcInterim Management Statement

AVEVA Group plc ('AVEVA'; stock code: AVV), one of the world's leading providers of engineering data and design IT systems, today announces the following Interim Management Statement for the period from 1 October 2014 to 23 January 2015 ('the period').

Trading Update

During the period, the performance in Engineering & Design Systems ('EDS') was broadly in line with our expectations as set out at the time of our interim results (10 November 2014). Importantly, our recurring revenue was on track with the revised plan with a number of rental renewals completed at similar levels to last year. Despite some important new customer wins, the backdrop for Enterprise Solutions has been significantly more challenging due to the well-documented budget constraints among Owner Operator customers in the Oil & Gas industry.

For the Group as a whole the final quarter remains the most significant with a number of key rental renewals. At this point we expect these to renew in line with our historical experience.

We are experiencing increased uncertainty and reduced visibility in the Oil & Gas market, which drives c.45% of our revenues. This has been exaggerated recently by the sharp decline in oil price. Outside of Oil & Gas, the trends in our other end markets have not changed with steady growth in Power and Marine subdued.

We are on track with the second-half cost efficiency programme outlined in our interim results.

Innovation

Encouragingly, we have seen continued traction for AVEVA Everything3D™ (E3D) within our customer base as a result of the efficiencies it offers, with continued growth in revenue during the period.

Acquisitions

On 5 January 2015, we announced the acquisition of 8over8 Limited, which extends our capabilities further into operations through enabling customers to manage the impact of changes on their project costs and scheduling, which we see as a key focus for Owner Operators in challenging market conditions. Although in the early stages, the integration is progressing well.

The Group continues to maintain a strong balance sheet and closed with net cash of £120 million at 31 December 2014.

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