Interim Results

15 November 2011

AVEVA GROUP PLC

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011

AVEVA Group plc ('AVEVA'; stock code : AVV), one of the world's leading providers of engineering data and design IT systems, today announces its interim results for the six months ended 30 September 2011.

* Adjusted profit before tax, adjusted profit margin 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 addition, adjusted basic earnings per share also include the tax effects of these adjustments.

Commenting on the outlook, Chief Executive Richard Longdon said:

"The fundamental growth drivers across our vertical markets remain strong, particularly in the emerging markets, and we are well positioned to continue to exploit those opportunities. We are pleased with our progress in the first half, especially the development of the Enterprise Solutions business and the continued growth in Latin America and Russia. In addition, we have reorganised the business in China and are now better placed to exploit the opportunities that market presents. We have also seen a strong performance in EMEA in the first half. As we enter the second half, we are well positioned to deliver the Board's expectations for the full year".

Enquiries:

AVEVA Group plc

Richard Longdon, Chief Executive On 15 November 2011 Tel : 020 7796 4133

James Kidd, Chief Financial Officer Thereafter Tel : 01223 556611

Hudson Sandler

Andrew Hayes / Wendy Baker /Alex Brennan Tel : 020 7796 4133

An analysts' briefing will be held at Haberdasher's Hall, 18 West Smithfield Street, London EC1A 9HQ at 9.30 am on 15 November 2011. For further information please contact Anna Domin on 020 7796 4133 or on [email protected].

Business review

Overview

AVEVA continues to exploit its market-leading position in engineering design and information management solutions for the Oil & Gas, Power and Marine industries. In the first six months of the current financial year we have delivered strong progress against our strategic goals whilst posting revenue growth of 9% and adjusted* profit before tax growth of 6%. We have continued to invest in developing our business whilst at the same time maintaining an adjusted* profit margin of 31%. We have a clear strategic focus on exploiting the significant growth opportunities that are open to us over the medium term.

We reorganised our business from 1 April to focus on two lines of business, Engineering & Design Systems and Enterprise Solutions. This new structure has bedded down well allowing us to focus appropriately on two respective product and service portfolios, which are aimed at different aspects of the project lifecycle. In addition, it enables our Research and Development to be more market driven and more agile, allowing faster introduction of new products which are closely matched to the requirements of the industries we serve.

High-growth markets

The economic and structural fundamentals of the emerging economies provide very strong opportunities for AVEVA. The need for natural resources and power generation drive increasing demand for our market-leading technologies in both Engineering & Design and Enterprise Solutions. During the six month period, we saw strong performances from Latin America and Russia. We continue to invest in these fast growing markets to ensure that we are in a leading position to capitalise on these opportunities. We have opened a new sales office in Bogota, Colombia to focus on the growing Oil & Gas industry there, which takes our headcount in Latin America to more than 60 employees.

In Brazil we have continued to work with the engineering contractors on Oil & Gas projects and have several key customers involved with Petrobras including Promon Engenharia and SETAL Óleo e Gás. Latin America has been a key area for AVEVA NET with customers such as Codelco, the state Chilean mining company, being a significant user of the solution. In Russia and CIS, the key drivers behind the growth in the period have been Oil & Gas and Power with further expansion across a broad range of customers and new customer wins.

In China we have restructured our operations to position us better to make the most of the significant growth opportunities open to us in this market. We have combined our previously separate Marine and Plant teams and are now in the process of establishing our own Chinese subsidiary company which will make it easier for us to contract and do business with Chinese customers as well as bringing us tax advantages. These improvements have inevitably caused some short-term disruption, but we are already seeing initial signs of momentum building in the second half of the year.

Enterprise Solutions

The Enterprise Solutions market represents a very significant growth opportunity for AVEVA and in the six months to 30 September 2011 we made excellent progress as our revenue grew 50% to £10.5 million.

The key to our growth in the period has been the successful targeting of the large owner operators, new customer wins and further development within existing accounts. We are building strong relationships that we believe are likely to continue to strengthen our pipeline of both software and services sales.

Progress has continued in building the team and capabilities of our service delivery group. We are leveraging the excellent experience that we gained through our acquisitions of both Logimatic and ADB in 2010 and have some first class examples of cross-border and cross-specialism team working. Our work processes and methodologies for service delivery have been improved to ensure an efficient service organisation. Our model for working with other service partners is also continuing to develop through relationships with Logica and iGATE Patni. In addition we have recently signed a partnership with Capgemini in France to provide information management solutions focused on the nuclear industry. We expect to sign further service partners over the next year to help gear up to provide services on a wider scale.

The Enterprise Solutions sales cycle is longer and more complex compared to our traditional Engineering & Design Systems business and requires more investment upfront in sales effort. In order to address this we have built a business development team who are experienced in this more consultative type of sale. We started making this investment in 2010/11 and have continued in the first half. The result of this investment is that we have seen the pipeline for Enterprise Solutions grow significantly, including development of relationships with the oil super majors, national oil companies and key global accounts. In addition, the backlog of deferred revenue and services for Enterprise Solutions continues to grow and currently stands at approximately £8 million.

Technology and innovation

We continue to invest in Research and Development to ensure that we maintain our technology leadership position and provide real value to our customers. Research and Development costs increased by 18% to £15.2 million in the half year reflecting our continued investment in the product portfolio. The new line of business organisation has further improved our agility and tightly coupled Research and Development with the key market drivers. During the first half, our Engineering & Design business released new versions of our AVEVA Plant and AVEVA Marine products which contain major new enhancements and introduced two new products, AVEVA Engineering and AVEVA Electrical. These new products combined with the success of AVEVA Instrumentation are attracting considerable interest from the market and we are positive about the outlook for these as we continue to expand our footprint across all stages of the project lifecycle.

In October 2011 we acquired Z+F UK Limited for total consideration of £7.3 million which brings a versatile software portfolio for the management of laser scanned data together with a team of people with significant domain experience in the laser scanning market. The integration of the business has gone smoothly and the new team has settled in well. The expanded portfolio now provides us with an unrivalled suite of design, engineering and information management solutions for the brownfield asset market which substantially reduces time and costs to create intelligent 3D models from the laser scanned data compared to competitor offerings.

We continue to look at further acquisition opportunities which will allow us to expand our offerings in both the Engineering & Design and Enterprise Solutions space for the core markets that we serve.

Customer relationships

We continue to maintain very strong customer relationships across the world and this is reflected in the strength of our recurring revenue base which increased by 11% to £59 million and now accounts for 69% of total revenue. Our longstanding customer relationships and our reputation for quality and reliability allows us to develop new products in conjunction with customers which meet the requirements of the market.

Outlook

The fundamental growth drivers across our vertical markets remain strong, particularly in the emerging markets, and we are well positioned to continue to exploit those opportunities. We are pleased with our progress in the first half, especially the development of the Enterprise Solutions business and the continued growth in Latin America and Russia. In addition, we have reorganised the business in China and are now better placed to exploit the opportunities that market presents. We have also seen a strong performance in EMEA in the first half. As we enter the second half, we are well positioned to deliver the Board's expectations for the full year.

Richard LongdonChief Executive15 November 2011

Finance review

Revenue

In the six months ended 30 September 2011, total revenue grew 9% to £85.2 million (2010 - £78.5 million) with recurring revenue continuing to grow strongly to £59.0 million (2010 - £53.3 million), representing 69% of total revenue. Overall foreign currency had a negligible impact on group revenue but did have an impact on Americas and EMEA as noted below. As previously announced, the Group now operates under two lines of business, Engineering & Design Systems and Enterprise Solutions and the segmental disclosures now reflect the new structure.

Revenue by segment

Revenue from Engineering & Design Systems grew by 4% to £74.6 million (2010 - £71.5 million) and was impacted by the reorganisation of the business in China which also accounted for the reduction in initial licence fees compared to 2010. Nevertheless we did see strong growth throughout Europe, Latin America and other parts of Asia.

The recurring revenue base for Engineering & Design Systems continues to grow strongly up £5.8 million (12%) to £55.5 million with rental licences up 17% to £34.2 million continuing to reflect the engineering customers' general preference for the flexibility offered by the rental model.

Revenue from Enterprise Solutions grew by 50% to £10.5 million compared to £7.0 million in 2010. The first half included the benefit from having a full six months' worth of revenue from ADB and Logimatic businesses acquired in 2010. After adjustment for the impact of these acquisitions, revenue grew by approximately 20%. The growth in Enterprise Solutions was driven by initial licence fees and rental licences for new contracts won in the period for AVEVA NET and MARS together with services revenue from the execution of those new contracts and existing projects with owner operators. Most of the growth came from Oil & Gas customers. There are more contract renewals in the second half of the year and therefore revenue for Enterprise Solutions will be more second half weighted. The pipeline for Enterprise Solutions continues to grow strongly and we remain confident about the strong growth opportunity that this business can deliver.

Revenue by geography and end user markets

EMEA performed very strongly in the first half with revenue up 28% to £41.1 million although this includes a £1.0 million benefit from the stronger Euro by £1.0 million on a constant currency basis and from the Enterprise Solutions acquisitions made in 2010. Nevertheless it was a strong performance particularly in Russia and Central Europe with most of the growth coming through rental licences. EMEA also benefitted from the increased Enterprise Solutions revenue in the first half, particularly from services on existing projects.

Revenue from Asia Pacific was down 9% compared to the same period last year due primarily to disruption as a result of the reorganisation in China. Elsewhere in Asia we saw a strong performance in South Korea with a notable customer win with SungDong Shipbuilding & Marine Engineering Co. Limited for AVEVA Marine for use in offshore projects. The other smaller sub-regions were relatively flat compared to 2010 with the marine business remaining stable.

In Americas, revenue grew by 5% to £15.4 million (2010 - £14.7 million) but grew by 11% on a constant currency basis, as Americas was impacted by the weaker US Dollar during the period by approximately £1.0 million. Latin America continued to perform well, with Brazil the main driver behind the performance. In North America conditions remain tough competitively and we continue to see weaker demand for our design tools. We are targeting the North American market with Enterprise Solutions and the organisation is now better positioned to sell those products, which we expect to bring improvements to our performance in the region.

Total revenue from our end user markets was in line with previous periods with Oil & Gas approximately accounting for 45%, Marine 25%, Power 15% and Other consisting of Mining, Petrochemical, Chemical, Pharmaceutical, and Paper and Pulp, 15%. Oil & Gas continued to be the main driver behind the growth in the first half with many of our engineering contractor customers continuing to experience strong demand. Marine remained stable with annual and rental fees being renewed but with limited growth of new design seats. We continue to focus on selling other software in the portfolio which focus on improving productivity. Overall revenue from Power also remained relatively stable during the first half with customers continuing to renew their licences but we did not see any significant new licence sales.

Operating costs

Included within operating costs for Engineering & Design Systems and Enterprise Solutions are all directly attributable costs such as Research and Development, product strategy, line management, service delivery and implementation costs, technical staff and business development. The Group has a direct sales force that sells the product and service portfolios for both lines of business and therefore these costs are not allocated to either line of business. In addition, shared support functions such as finance, human resources, information technology and facilities and certain common Research and Development costs are also not allocated.

Engineering & Design System operating costs increased by 4% in the first half, mainly due to salary increases and also additional investment in technical staff in the sales regions who are involved in pre-sales activities.

Enterprise Solutions operating costs increased 24% to £13.3 million (2010 - £10.7 million). Most of the increase was due to the annualised impact of the investments made in AVEVA NET in 2010/11 and having a full six months' worth of costs from the acquisitions in 2010. In addition we have made some further investments in the first half in business development staff and service delivery staff.

Shared selling and distribution expenses increased by 13% to £20.1 million (2010 - £17.8 million) partly due to salary increases, increase in sales headcount and further geographic expansion such as the opening of a new office in Colombia.

Other shared operating expenses fell by 3% to £7.7 million (2010 - £7.9 million) mainly due to reduced bonuses payable.

Engineering and Design Systems had a segment contribution of £56.3 million in the first half up 5% on the prior year. Enterprise Solutions had a segment loss of £2.8 million, an improvement of £1.0 million on the prior period.

Profit before tax

Adjusted* profit before tax for the six months ended 30 September 2011 was £26.1 million (2010 - £24.6 million) up 6% on 2010. Reported profit before tax was £23.8 million (2010 - £23.1 million). The adjusted* profit margin for the six months was 31%, which was in line with the year ended 31 March 2011.

Taxation

The effective tax rate for the half year 30.3% (2010 - 31.8%) is higher than the underlying UK rate and is predominantly due to irrecoverable withholding tax incurred in Asia. The Group is in the process of establishing a direct subsidiary in China which will help to eliminate this irrecoverable withholding tax in the future.

Earnings per share and interim dividend

Basic earnings per share were 24.46 pence (2010 - 23.17 pence) and diluted earnings per share were 24.32 pence (2010 - 23.03 pence). Adjusted* basic earnings per share were 26.98 pence (2010 - 25.14 pence), an increase of 7%. Diluted adjusted* earnings per share on the same basis were 26.82 pence (2010 - 24.99 pence).

The Board is declaring an increased interim dividend of 4.0 pence per share (2010 - 3.36 pence per share). The dividend will be payable on 3 February 2012 to shareholders on the register on 6 January 2012.

Balance sheet and cash flows

AVEVA continues to have a strong balance sheet with net assets of £202.1 million at 30 September 2011 (2010 - £177.9 million) and there has been little change in the make-up of the balance sheet since 31 March 2011.

Accounts receivable at 30 September 2011 were £51.3 million (2010 - £44.5 million). The Group continues to focus on collection of debts from customers and additional controls have been put in place to ensure our exposure is minimised as far as possible. Deferred revenue at 30 September 2011 was £30.6 million (2010 - £25.1 million), partly reflecting the increased growth in rental licences in the period.

Net cash (including treasury deposits of £116.8 million) at 30 September 2011 was £157.5 million, an increase of £4.3 million from 31 March 2011. This was after increased tax payments of £8.3 million and the increased final 2010/11 dividend of £10.1 million. Total cash and deposits held in the UK at 31 March 2011 represented 84% of the total cash and deposits balance (2010 - 80%). The Group has no debt.

Cash generated from operating activities before tax in the period amounted to £24.4 million (2010 - £24.1 million). Cash conversion, measured by cash generated from operating activities before tax as a percentage of profit from operations, was 104% compared to 91% in the prior year, which continues to reflect the robust quality of earnings.

Risk and uncertainties

The principal risks and uncertainties faced by the Group have not changed from those set out in the annual report for the year ended 31 March 2011. Further details are included in note 4.

James KiddChief Financial Officer15 November 2011

Independent Review Report to AVEVA Group Plc

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 which comprise the Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Consolidated statement of changes in shareholders' equity, the Consolidated cash flow statement and the related notes 1 to 15. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2011 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Ernst & Young LLP

Cambridge

15 November 2011

Consolidated income statement

for the six months ended 30 September 2011

Consolidated statement of comprehensive income

for the six months ended 30 September 2011

Consolidated balance sheet

30 September 2011

Consolidated statement of changes in shareholders' equity

30 September 2011

Consolidated cash flow statement

for the six months ended 30 September 2011

1 The interim report

The interim report was approved by the Board on 15 November 2011. The financial information set out in the interim report is unaudited but has been reviewed by the auditor, Ernst & Young LLP, and their report to the Company is set out as above.

The interim report will be posted to shareholders in due course and copies will be available from the registered office of AVEVA Group plc, High Cross, Madingley Road, Cambridge CB3 0HB and on the Company's website at www.aveva.com.

2 Basis of preparation and accounting policies

The interim report for the six months ended 30 September 2011 has been prepared in accordance with IAS 34 Interim Financial Reporting and the disclosure requirements of the Listing Rules.

The interim report does not include all the information and disclosures required in the annual report and should be read in conjunction with the annual report for the year ended 31 March 2011.

The financial information set out within this report does not constitute AVEVA's Consolidated statutory financial statements as defined in Section 435 of the Companies Act 2006. The results for the year ended 31 March 2011 have been extracted from the Consolidated statutory financial statements for AVEVA Group plc for the year ended 31 March 2011 which are prepared in accordance with IFRS as adopted by the European Union, on which the auditor gave an unqualified report (which made no statement under Section 498 (2) or (3) respectively of the Companies Act 2006 and did not draw attention to any matters by way of emphasis) and have been filed with the Registrar of Companies.

From 1 April 2011, the Group was reorganised so as to place greater emphasis on AVEVA NET and associated products. The Group is now organised into two lines of business being Engineering & Design and Enterprise Solutions. These two lines of business are now considered to be the two reportable segments for the Group and the segment information in note 6 has been presented accordingly and information for the prior periods has been restated.

Similarly, in line with the Group's development and expanding business, the Directors have reconsidered the categorisation of expenses within the Income Statement and have decided to make four discreet amendments. The Directors believe that the revised Income Statement presentation more appropriately reflects the nature of the Group's business and reflects what has become industry practice. The comparative Income Statements for the year ended 31 March 2011 and the six month period to 30 September 2010 have been restated to provide a consistent comparison. Research and Development costs of £28,082,000 for the year ended 31 March 2011 (£12,875,000 for the six months to 30 September 2010) which were previously included within Cost of Sales are now presented separately on the face of the Income Statement. Corporate IT costs of £3,099,000 for the year ended 31 March 2011 (£1,501,000 for the six months to 30 September 2010) that were previously reported within Cost of Sales are now included within Administrative expenses and Corporate Marketing costs of £1,743,000 (£686,000 for the six months to 30 September 2010) that were previously included in Administrative expenses are now included within Selling and Distribution expenses. Solution Consulting labour costs for Enterprise Solutions that were previously disclosed as part of Selling and Distribution expenses are now part of Cost of Sales. These costs amounted to £10,778,000 for the year ended 31 March 2011 and £4,398,000 for the six months ended 30 September 2010.

In all other respects the interim report has been prepared on the basis of the accounting policies set out in the most recently published annual report of the Group for the year ended 31 March 2011.

The Group presents a non-GAAP performance measure on the face of the Consolidated income statement. The Directors believe that this alternative measure of profit provides a reliable and consistent measure of the Group's underlying performance. The face of the Consolidated income statement presents adjusted profit before tax and reconciles this to profit before tax as required to be presented under the applicable accounting standards. Adjusted earnings per share is calculated having adjusted profit after tax for the same items and their tax effect. The term adjusted profit is not defined under IFRS and may not be comparable with similarly titled profit measures reported by other companies. It is not intended to be a substitute for, or superior to, GAAP measures of profit.

3 Going concern

As disclosed in the most recent annual report, the Group continues to have significant financial resources and continues to be profitable. At 30 September 2011, the Group had bank and cash and treasury deposits of £157.5 million (31 March 2011 - £153.2 million) and no debt. The Directors continue to believe that the Group is well placed to manage business risks successfully despite the uncertain economic outlook.

Therefore, after making enquiries and considering the cash flow forecasts for the Group, the Directors have a reasonable expectation that the Group has adequate resources to continue its operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the interim financial statements.

4 Risks and uncertainties

AVEVA has continued to be successful in the period, but as with any organisation there are a number of potential risks and uncertainties which could have a material impact on the Group's long-term performance.

The primary risk and uncertainty related to the Group's performance for the remainder of the year is the challenging macroeconomic environment, which could have a material impact on the Group's performance over the remaining six months of the financial year and could cause actual results to differ materially from expected and historical results.

The other principal risks and uncertainties faced by the Group have not changed from those set out in the annual report for the year ended 31 March 2011. These include:

·; protection of the Group's intellectual property rights;

·; the risks associated with widespread international operations;

·; the continued development of Enterprise Solutions

·; competition;

·; dependency on key markets;

·; identification and successful integration of acquisitions;

·; recruitment and retention of employees; and

·; foreign exchange risk.

These risks are described in more detail on pages 24 and 25 of the 2011 annual report. The Directors routinely monitor all of these risks and uncertainties and appropriate actions are taken where possible to mitigate these risks. Included in the Chairman's statement is a commentary on the outlook of the Group for the remaining six months of the year.

5 Revenue

An analysis of the Group's revenue is as follows:

The operations of the Group are not subject to significant seasonality.

Services consist of consultancy and training fees.

6 Segment information

From 1 April 2011, the Group was reorganised so as to place greater emphasis on AVEVA NET and associated products. The Group is now organised into two lines of business being Engineering & Design and Enterprise Solutions. These two lines of business are now considered to be the two reportable segments for the Group.

Each line of business is managed separately due to the differing requirements of each market. The products of each of the lines of business are taken to market by a shared sales force that is itself organised into three geographical Sales divisions: Asia Pacific; Americas; and Europe, Middle East and Africa (EMEA). Each sales division comprises a number of subsidiary entities and each subsidiary is granted distribution rights to license the Group's software to customers in their respective territories.

The Executive Board, comprising the Chief Executive, Chief Financial Officer, Chief Operating Officer, Chief Technology Officer, Executive Vice President Sales, Executive Vice President Business Strategy and Marketing and Executive Vice President Human Resources and Business Services, monitors the operating results of the lines of business for the purposes of making decisions about performance assessment and resource allocation. Performance is evaluated based on adjusted profit contribution using the same accounting policies as adopted for the Group's financial statements. There is no inter-segment revenue. Balance sheet information is not included in the information provided to the Executive Board. Support functions such as head office departments are controlled and monitored centrally.

Information concerning the Group's segments is set out below. Disclosure for the year ended 31 March 2011 and the six month period to 30 September 2010 has been restated to reflect the new organisational structure and lines of business reporting.

6 Segment information continued

* Normalised adjustments include amortisation of intangible assets (excluding other software), share-based payments and gains on fair value of forward foreign exchange contracts

6 Segment information continued

Analysis of Revenue by geographical location 

6 Segment information continued

7 Income tax expense

The current year income tax expense for the six months ended 30 September 2011 is estimated at 30.3% (2010 - 31.8%) of profit before tax.

The total tax charge of £7.2 million (2010 - £7.3 million) is made up of UK tax of £3.5 million (2010 - £4.0 million) and overseas tax of £3.7 million (2010 - £3.3 million).

At the balance sheet date the UK government had enacted a 1% reduction in the main rate of UK corporation tax from 26% to 25% from 1 April 2012. The government has also proposed reducing the UK corporation tax rate by a further 1% per annum to 23% by 1 April 2014. However, these further rate changes had not been substantively enacted at the balance sheet date and their effects are not, therefore, included in these financial statements. We do not expect that the enactment of these changes will have a material impact on the deferred tax balances of the Group.

8 Ordinary dividends

The proposed interim dividend of 4.0 pence per ordinary share will be payable on 3 February 2012 to shareholders on the register on 6 January 2012. In accordance with IFRS, no provision for the interim dividend has been made in these financial statements.

An analysis of dividends paid is set out below:

9 Earnings per share

The calculation of earnings per share is based on the profit after tax for the six months ended 30 September 2011 of £16.6 million and the following weighted average number of shares:

Details of the calculation of adjusted earnings per share are set out below:

10 Cash and cash equivalents and treasury deposits

Treasury deposits represent bank deposits with an original maturity of over three months.

11 Trade and other receivables

Current

Non-current other receivables consist of rental deposits for operating leases.

12 Trade and other payables

13 Retirement benefit obligations

The movement on the provision for retirement benefit obligations during the period was as follows:

14 Business combinations

On 7 October 2011, the Group acquired 100% of the issued share capital of Z + F UK Limited, a UK software company which develops and markets laser scanning software for the capture and management of laser scan data. The acquisition was satisfied for net consideration of £6.3 million on a debt free/cash free basis. As part of this acquisition, Z+F GmbH, the former parent company of Z+F UK Limited, has also been granted a licence to continue to distribute the Z+F UK software together with Z+F GmbH's laser scanning hardware products. This initial licence has been granted free of royalty up to the value of the first £1 million of royalties over the next 5 years. In view of the timing of the acquisition it has not been practical to complete the fair valuation of the acquired assets and liabilities.

15 Related party transactions

Transactions between Group subsidiaries have been eliminated on consolidation. A list of subsidiaries can be found in the notes to the AVEVA Group plc financial statements in the 2011 Annual Report.

Responsibility statement of the Directors in respect of the interim report

The Directors of the Company confirm that to the best of our knowledge:

• the interim report has been prepared in accordance with IAS 34;

• the interim report includes a fair review of the information required by DTR 4.2.7R, being an indication of the important events that have occurred during the first six months of the financial year and a description of the principal risks and uncertainties for the remaining six months of the year; and

• the interim report includes a fair review of the information required by DTR 4.2.8R, being disclosure of related party transactions and changes therein since the last annual report.

By order of the Board

Richard Longdon James Kidd

Chief Executive Chief Financial Officer

15 November 2011