Trading Update

14 October 2011

AVEVA Group plc

Trading Update

AVEVA Group plc ("AVEVA"), one of the world's leading providers of engineering data and design IT systems, announces the following trading update for the six months ended 30 September 2011 as well as historic segmental disclosures relating to the Enterprise Solutions and Engineering and Design Systems divisions.

Trading Update

The Board is pleased to announce that AVEVA made good progress in the first half. The business has continued to perform well in Latin America, South Korea and Central and Eastern Europe with Oil and Gas continuing to be the main driver. In North America, we have continued to see weak demand for our Engineering and Design tools, while in China, as anticipated, the reorganisation announced earlier this year has had a short term impact on revenue in that region.

There has been no significant change to the trends in the end user markets of Oil and Gas, Power or Marine during the first half with Oil and Gas continuing to perform strongly.

In line with our development plans, we have continued to make good progress with Enterprise Solutions during the first half with revenue from that division substantially ahead of the same period last year. As planned, the cost base for the Enterprise Solutions division has increased as a result of the annualised effect of the investment made in 2010/11 together with the additional investments this year facilitating our revenue growth.

As highlighted in the Interim Management Statement of 7 July 2011, we expected revenue to be more heavily weighted to the second half, primarily as a result of a reorganisation of our business in China which will allow us to better exploit the significant longer term opportunities in that market. Accordingly, adjusted profit before tax for the first half was slightly ahead of the same period in 2010. Once the benefits of the new China organisation are realised, we expect further momentum to be gained in the second half of the financial year.

Richard Longdon, Chief Executive of AVEVA, said:

"Following the change in our organisation to bring more focus on Enterprise Solutions, we are delighted to see further progress in this area with significant rates of growth in the first half. This progress, along with the continued strength in Latin America, means we approach the second half of the year well positioned and we expect to deliver the Board's expectations in the second half".

Historic segmental disclosures

From 1 April 2011, the group now operates under the two lines of business, Engineering and Design Systems and Enterprise Solutions. Following this change to the organisation, the interim results will contain new segmental disclosures reflecting the new structure. Attached to this announcement are the new disclosures showing the comparative results for the six months ended 30 September 2010 and year ended 31 March 2011 together with details concerning a re-categorisation of certain operating costs.

AVEVA will be announcing its interim results for the six months ended 30 September 2011 on 15 November 2011.

For further information, please consult the AVEVA website: www.aveva.com

Enquiries:

Segment information

From 1 April 2011, the Group was reorganised so as to place greater emphasis on AVEVA NET and associated products. These market offerings now form the new Enterprise Solutions Group. As a consequence 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.

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.

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

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

Income statement presentation

Following the restructure of the Group into two lines of business (Engineering & Design and Enterprise Solutions) and the realignment of our segmental reporting, we have also considered the presentation of the Group's Income statement.

We have re-aligned our income statement format with both the changing shape of our business as well as with common practice within the technology sector. The following changes to the Income Statement will be first presented in our results for the six months ended 30 September 2011:

·; Research and development costs will be presented separately on the face of the income statement (rather than being included as a component of Cost of sales).

·; Solution Consulting costs will be included in Cost of sales (previously included in Selling and distribution expenses).

·; Central IT costs will also be removed from Cost of sales and will be presented within Administrative expenses

·; Corporate marketing and business strategy costs will be included as a component of Selling and distribution expenses (previously Administrative expenses).

The Consolidated Income statements for the year ended 31 March 2011 and six months ended 30 September 2010 have been restated accordingly: