AVEVA Group plc Interim report 2008 AVEVA Worldwide 24/7 AVEVA – Engineering technology providers for the Plant and Marine industries. AVEVA technology is used around the world by leading businesses in key industries such as Oil and Gas, Power Generation, Process Plant, and Naval and Commercial Shipbuilding. It supports the entire project lifecycle, from early concept, through design, engineering and construction, to commissioning and on into operational life. AVEVA solutions maintain their dominance of these industries, being used on or by: 80% of the offshore platforms in the Gulf of Mexico and the North Sea; 86% of the world’s top 50 shipyards; 80% of the Class A Certified Chinese Electrical Power Design Institutes; The world’s biggest chemical companies, 90% of whom operate plant designed with AVEVA technology; and The world’s five biggest pulp and paper producers. Highlights 1 Chairman’s statement 2 Independent review report to AVEVA Group plc 4 Consolidated income statement 5 Consolidated statement of recognised income and expense 6 Consolidated balance sheet 7 Consolidated cash flow statement 8 Notes to the interim report 9 Company information and advisers IBC 1 Strong growth in revenue, profit and cash reflecting the leadership position of our products in Marine, Oil and Gas and Power markets Revenue increased by 32% to £74.8 million (2007 – £56.8 million) Recurring revenue up 43% to £40.9 million (2007 – £28.6 million) Investment in Research and Development up 26% to £12.9 million (2007 – £10.2 million) Adjusted profit before tax increased by 67% to £31 million (2007 – £18.6 million)* Profit before tax up 73% to £29.2 million (2007 – £16.9 million) Adjusted basic earnings per share up 66% to 33.11p (2007 – 19.97p)* Basic earnings per share up 74% to 30.50p (2007 – 17.50p) Interim dividend increased by 73% to 2.86p (2007 – 1.65p) Excellent cash flow with net cash at the period end of £101 million (2007 – £54.5 million) + 3 2 % + 7 1 % + 6 7 % + 8 5 % Highlights revenue (£m) 74.8 56.8 45.9 29.0 24.1 04 05 06 07 08 profit from operAtions (£m) 27.7 16.2 12.5 3.1 04 4.5 05 06 07 08 *Adjusted profit before tAx (£m) 31 18.6 14.1 06 07 08 101 2.3 04 5.4 05 net cAsh (£m) 54.5 30.4 9.3 04 17.8 05 06 07 08 * Adjusted profit before tax is calculated before amortisation of intangible assets, share-based payments, goodwill adjustments, restructuring costs and past service credit on the defined benefit pension scheme in the relevant year. AVEVA Group plc Interim report 2008 Highlights 2/3 Chairman’s statement recurring revenue increased by 43% adjusted eps increased by 66% investment in research and development increased by 26% 73% interim dividend increased by Overview The excellent results achieved for the six months ended 30 September 2008 again demonstrate AVEVA’s core strengths in the markets we serve, where our technology, industry knowledge, geographical presence and understanding of customers’ developing requirements position us as a market leader. The performance in the first half was driven by the continuing demand for large, complex projects across all our major markets. Our investment in new products and our ability to service these through our regional network of offices will continue to keep us close to the developing requirements of our customers. Financials AVEVA’s strong trading in the first six months has seen revenue increase by 32% to £74.8 million (2007 – £56.8 million). The pull through of recurring licence fees generated in prior periods has seen recurring fees increase by 43% over last year. Recurring revenue amounted to 55% of total revenue broadly in line with previous periods. Initial fees amounted to £28.8 million (2007 – £24.4 million), and service revenue totalled £5.1 million (2007 – £3.8 million). Adjusted profit before tax increased by 67% to £31 million (2007 – £18.6 million), which is before amortisation of intangibles, share-based payments and adjustment to goodwill of £1.8 million (2007 – £1.7 million). Adjusted earnings per share amounted to 33.11p, an increase of 66% on prior year (2007 – 19.97p). Profit before tax was £29.2 million (2007 – £16.9 million) resulting in an increase in basic earnings per share of 74% to 30.50p (2007 – 17.50p). Operating margins increased by 9% to 37% over the same period last year. The improvement in margins as in previous periods reflects the operational leverage achieved from strong sales growth and in particular from increases in initial licence fees. At the same time Research and Development expenditure has increased by 26% to £12.9 million, spent on both enhancing existing products and developing new products that will help generate future revenue growth. Cash AVEVA continues to be very cash generative with strong cash flow in the period resulting in net cash of £101 million (2007 – £54.5 million). Dividend Given the strong first half performance the Board is declaring an increased interim dividend of 2.86p per share (2007 – 1.65p). Payment will be made on 9 February 2009 to all shareholders on the register on 9 January 2009. Operating review The Group continued to see strong trading across all its markets and geographies in the first half of the year. Asia Pacific Sales in Asia Pacific continued to grow strongly with good performances across all regions but in particular in China, India and Australia. Initial fees remained the predominant form of licensing in Asia. Recurring revenue increased by 58% which helped deliver overall growth in sales of 31% to £31.1 million. Sales success was achieved in all our major AVEVA Group plc Interim report 2008 Chairman’s statement 2/3 market sectors and from both existing and new customers. Opportunities in the region remain good as requirements for Power remain high and developments in the Marine markets have continued, with growing emphasis being placed on lifecycle management tools such as AVEVA NET. Central, Eastern and Southern Europe (CES) Another period of sustained growth in our CES region, driven by new customer wins and increased orders from our existing user base, delivered revenue of £22 million, up 46% on prior year (2007 – £15.1 million). We have continued to see high levels of activity from within the Power market and Russia has been one of our largest growth contributors. New opportunities within Southern Europe have also been a factor in our success in the half year. Our success in the nuclear market within this region over the last few years has continued with customers now looking to use our products in new territories with local partners, thereby providing an opportunity for AVEVA to grow its customer base. Western Europe, Middle East and Africa (WEMEA) WEMEA is our most mature market and sales to existing customers remain the primary driver for growth within this region. Our customers remain very busy but a shortage of skilled resources continues to be a constraining factor in the industry, and this has restricted short term opportunities. In the first six months of the year our investment has been focused on developing our capabilities to deliver new products and services to meet our customer requirements. Revenue for the period amounted to £11.4 million (2007 – £10.8 million) with recurring revenue amounting to £9.4 million, 82% of total revenue (2007 – £8.7 million and 80% respectively). Americas We saw good growth from the Americas in the first half of the year driven by new product sales to new customers and growing momentum in Canada and South America. The Americas market has remained robust and linked to global demands, but it is also a very competitive market, being the home market for many of AVEVA’s competitors. We continue to expand our presence in both Canada and South America and have recently opened a direct sales office in Brazil. South America presents opportunities to serve owner operators as they look to manage their high value plants. Total revenue in the Americas grew by 44% to £10.4 million (2007 – £7.2 million). Overall, sales opportunities remain positive across all our regions and markets but we expect to see customers increasingly purchase the tools that help manage the whole lifecycle of the assets they own (PLM) and not just the design phase. Our expanding suite of products positions us well to benefit from these evolving customer requirements. Research and Development The focus for our development efforts has continued to be on both enhancements to existing products and new products which will help our customers with the key issues involved in managing large complex projects where skilled resources are limited and management of these assets through the lifecycle becomes ever more important. In particular during the last six months we have seen new releases of AVEVA NET offering integrated operations capability and AVEVA Global allowing customers to maximise productivity with multi-site design. Outlook AVEVA is one of the leading providers of engineering IT solutions to many of the world’s largest companies in the Plant, Power and Marine businesses. These solutions help our customers from early stage concept and design through to operation and maintenance. Whilst our products and the markets in the last few years have been focused on the early stages within the project lifecycle, more recent developments and opportunities relate to the management and maintenance of these high value assets throughout the production cycle. Our existing relationships and product offering position us well to benefit from this next stage. We acknowledge that recent and rapid developments within the world economy have created less certainty about future demand and whilst there has been little impact on our current trading we continue to monitor the situation closely. Nick Prest Chairman 11 November 2008 AVEVA Group plc Interim report 2008 Chairman’s statement 4/5 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 interim financial report for the six months ended 30 September 2008 which comprise the Consolidated income statement, the Consolidated statement of recognised income and expense, the Consolidated balance sheet, the Consolidated cash flow statement and the related notes 1 to 12. We have read the other information contained in the interim 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 interim financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim 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 interim 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 interim 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 interim financial report for the six months ended 30 September 2008 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 Registered auditor Cambridge 11 November 2008 AVEVA Group plc Interim report 2008 Independent review report Consolidated income statement For the six months ended 30 September 2008 Revenue Cost of sales Gross profit Operating expenses Selling and distribution costs Administrative expenses Total operating expenses Profit from operations Finance revenue Finance expense Analysis of profit before tax Profit before tax, share-based payments, amortisation and goodwill adjustment Share-based payments Amortisation of intangibles (excluding software) Adjustment to carrying value of goodwill in respect of utilisation of tax losses Profit before tax Income tax expense Profit for the period attributable to equity holders of the parent Earnings per share – basic – diluted Proposed dividend per share Notes 4,5 5 6 8 4/5 Year ended 31 March 2008 £000 (audited) 127,561 (29,793) 97,768 (39,025) (15,582) (54,607) 43,161 3,785 (1,979) 47,949 (315) (2,276) (391) 44,967 (10,721) Six months ended 30 September 2008 £000 (unaudited) 74,837 (17,507) 57,330 (23,332) (6,273) (29,605) 27,725 2,669 (1,148) 31,012 (526) (1,240) — 29,246 (8,623) 2007 £000 (unaudited) 56,815 (14,563) 42,252 (16,248) (9,853) (26,101) 16,151 1,718 (972) 18,562 (161) (1,129) (375) 16,897 (5,110) 20,623 11,787 34,246 30.50p 30.34p 2.86p 17.50p 17.43p 1.65p 50.80p 50.38p 5.0p AVEVA Group plc Interim report 2008 Consolidated income statement 6/7 Consolidated statement of recognised income and expense For the six months ended 30 September 2008 Tax on items recognised directly in equity Exchange differences arising on translation of foreign operations Actuarial (loss)/gain on defined benefit pension schemes Net (expense)/income recognised directly in equity Profit for the period Total recognised income and expense relating to the period attributable to equity holders of the parent Six months ended 30 September 2008 £000 (unaudited) 2007 £000 (unaudited) 548 (148) (2,729) (2,329) 20,623 82 1,196 (110) 1,168 11,787 Year ended 31 March 2008 £000 (audited) (389) 5,782 3,427 8,820 34,246 18,294 12,955 43,066 AVEVA Group plc Interim report 2008 Consolidated statement of recognised income and expense Consolidated balance sheet 30 September 2008 Non-current assets Goodwill Other intangible assets Property, plant and equipment Deferred tax assets Other receivables Current assets Trade and other receivables Current tax assets Financial assets Cash and cash equivalents Total assets Equity Issued share capital Share premium Other reserves Retained earnings Total equity Current liabilities Trade and other payables Financial liabilities Current tax liabilities Non-current liabilities Deferred tax liabilities Financial liabilities Retirement benefit obligations As at 30 September Notes 2008 £000 (unaudited) 2007 £000 (unaudited) 9 9 11 10 16,288 9,563 6,417 2,583 568 35,419 42,802 983 — 100,953 144,738 180,157 2,260 27,150 8,379 83,540 121,329 41,298 1,403 9,929 52,630 1,828 — 4,370 6,198 15,206 11,154 4,886 3,710 385 35,341 39,274 774 109 55,646 95,803 131,144 2,247 26,444 3,941 43,881 76,513 34,241 1,321 10,889 46,451 2,895 58 5,227 8,180 6/7 As at 31 March 2008 £000 (audited) 16,689 10,806 5,403 2,743 737 36,378 43,184 751 — 82,849 126,784 163,162 2,250 26,522 8,527 68,447 105,746 45,223 1,048 7,488 53,759 2,065 — 1,592 3,657 Total equity and liabilities 180,157 131,144 163,162 AVEVA Group plc Interim report 2008 Consolidated balance sheet 8/9 Consolidated cash flow statement For the six months ended 30 September 2008 Six months ended 30 September 2008 £000 (unaudited) 2007 £000 (unaudited) Year ended 31 March 2008 £000 (audited) Cash flows from operating activities Profit for the year Income tax Net finance revenue Depreciation of property, plant and equipment Amortisation of intangible assets Profit on disposal of non-current assets Share-based payments Difference between pension contributions paid and amounts recognised in the income statement Adjustment to carrying value of goodwill Changes in working capital: Trade and other receivables Trade and other payables Fair value of forward contracts Cash generated from operating activities before tax Income taxes paid Net cash generated from operating activities Cash flows from investing activities Purchase of property, plant and equipment Interest received Proceeds from disposal of property, plant and equipment Purchase of intangibles Net cash used in investing activities Cash flows from financing activities Interest paid Purchase of own shares Proceeds from the issue of shares Payment of finance lease liabilities Dividends paid to equity holders of the parent Net cash flows from financing activities Net increase in cash and cash equivalents Net foreign exchange difference Opening cash and cash equivalents 20,623 8,623 (1,521) 703 1,268 5 526 (90) — 546 (3,932) 431 27,182 (5,912) 21,270 (1,737) 1,672 54 (38) (49) (12) (495) 638 (77) (3,380) (3,326) 17,895 209 82,849 Closing cash and cash equivalents 100,953 AVEVA Group plc Interim report 2008 Consolidated cash flow statement 11,787 5,110 (746) 587 1,156 — 161 210 375 (2,449) 1,333 (141) 17,383 (1,954) 15,429 (730) 726 — (72) (76) (16) — 65 (70) (1,980) (2,001) 13,352 (178) 41,287 54,461 34,246 10,721 (1,806) 1,243 2,336 14 315 135 391 (6,475) 12,632 874 54,626 (11,325) 43,301 (1,781) 1,772 34 (136) (111) (13) — 146 (133) (3,093) (3,093) 40,097 1,465 41,287 82,849 8/9 Notes to the interim report 1 The interim report The interim report was approved by the Board on 11 November 2008. 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 on page 4. 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 2008 has been prepared in accordance with IAS 34 Interim Financial Reporting and the disclosure requirements of the Listing Rules. 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 2008 except for the adoption of the following standards which are mandatory for accounting periods beginning on or after 1 January 2008: IFRIC 12: Service Concession Arrangements; and IFRIC 14 IAS 19: The limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The adoption of these standards did not affect the Group results of operations or financial position in the six months ended 30 September 2008. 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 2008. The financial information set out within this report does not constitute AVEVA’s Consolidated statutory financial statements as defined in Section 240 of the Companies Act 1985. The results for the year ended 31 March 2008 have been extracted from the statutory Consolidated financial statements for AVEVA Group plc for the year ended 31 March 2008 which are prepared in accordance with IFRS as adopted by the EU, on which the auditor gave an unqualified report (which made no statement under Sections 237 (2) or (3) of the Companies Act 1985) and have been filed with the Registrar of Companies. The Group presents adjusted profit before tax on the face of the Consolidated income statement disclosing those material items of operating income and expense which materially impact on the underlying performance of the business. The items that are added back in deriving adjusted profit before tax are share-based payments, amortisation of intangible assets and adjustment to the carrying value of goodwill. The Directors believe that adjusted profit before tax allows shareholders to understand better the elements of financial performance in the period, so as to facilitate comparison with prior periods in assessing trends in financial performance. AVEVA Group plc Interim report 2008 Notes to the interim report 10/11 Notes to the interim report continued 3 Risks and uncertainties As with all businesses, the Group is affected by certain risks, not wholly within our control, which could have a material impact on the Group’s long term performance and could cause actual results to differ materially from forecast and historical results. The primary risk and uncertainty related to the Group’s performance for the remainder of the year is the challenging macro economic 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 facing the Group have not changed from those set out in the annual report for the year ended 31 March 2008. These include: protection of the Group’s intellectual property rights; dependency on key markets; timing of contract signing; foreign exchange risk; recruitment and retention of employees; identification and successful integration of acquisitions; Research and Development; and compliance with overseas laws and regulations. These risks are described in more detail in the most recently published annual report. The Directors routinely monitor all of these risks and uncertainties and appropriate actions are taken where possible to mitigate these risks. 4 Revenue An analysis of the Group’s revenue is as follows: Annual fees Rental fees Recurring services Total recurring revenue Initial licence fees Services Total revenue Finance revenue Six months ended 30 September 2008 £000 (unaudited) 2007 £000 (unaudited) 14,998 25,009 866 40,873 28,844 5,120 74,837 2,669 77,506 10,660 17,039 920 28,619 24,437 3,759 56,815 1,718 58,533 Year ended 31 March 2008 £000 (audited) 23,120 40,558 2,426 66,104 52,903 8,554 127,561 3,785 131,346 Services consist of consultancy and training fees. The operations of the Group are not subject to significant seasonality. AVEVA Group plc Interim report 2008 Notes to the interim report 10/11 Six months ended 30 September 2008 (unaudited) Asia Pacific £000 WEMEA £000 CES Americas Unallocated £000 £000 £000 Total £000 5,138 6,421 — 18,530 963 1,671 7,687 41 947 1,031 6,602 4,794 — 8,302 2,308 1,587 6,107 825 1,065 818 — 14,998 — 25,009 — 866 — 28,844 5,120 — 31,052 11,377 22,006 10,402 — 74,837 21,048 6,989 14,565 6,667 — 49,269 (8,643) (8,643) (12,901) (12,901) 27,725 2,669 (1,148) 29,246 (8,623) 20,623 5 Segment information Geographical segments Income statement Revenue Annual fees Rental fees Recurring services Initial licence fees Services Segment revenue Result Segment result Unallocated expenses Corporate overheads Research and Development costs Profit from operations Finance revenue Finance expense Profit before tax Income tax expense Net profit for the period AVEVA Group plc Interim report 2008 Notes to the interim report 12/13 Notes to the interim report continued 5 Segment information continued Geographical segments Income statement Revenue Annual fees Rental fees Recurring services Initial licence fees Services Segment revenue Result Segment result Unallocated expenses Corporate overheads Research and Development costs Profit from operations Finance revenue Finance expense Profit before tax Income tax expense Net profit for the period Six months ended 30 September 2007 (unaudited) Asia Pacific £000 WEMEA £000 CES Americas Unallocated £000 £000 £000 Total £000 3,462 3,847 — 15,762 590 1,419 7,212 50 879 1,272 4,673 2,568 — 6,441 1,412 1,106 3,412 870 1,355 485 23,661 10,832 15,094 7,228 — — — — — — 10,660 17,039 920 24,437 3,759 56,815 16,096 7,042 10,171 4,121 — 37,430 (11,066) (11,066) (10,213) (10,213) 16,151 1,718 (972) 16,897 (5,110) 11,787 AVEVA Group plc Interim report 2008 Notes to the interim report 12/13 Year ended 31 March 2008 (audited) Asia Pacific £000 WEMEA £000 CES Americas Unallocated £000 £000 £000 Total £000 7,807 7,652 — 33,789 1,564 2,929 17,955 154 2,662 2,557 10,095 6,146 — 13,114 3,329 2,289 8,805 2,272 3,338 1,104 — 23,120 — 40,558 — 2,426 — 52,903 8,554 — 50,812 26,257 32,684 17,808 — 127,561 34,486 18,554 20,003 11,109 — 84,152 (19,690) (19,690) (21,301) (21,301) 43,161 3,785 (1,979) 44,967 (10,721) 34,246 5 Segment information continued Geographical segments Income statement Revenue Annual fees Rental fees Recurring services Initial licence fees Services Segment revenue Result Segment result Unallocated expenses Corporate overheads Research and Development costs Profit from operations Finance revenue Finance expense Profit before tax Income tax expense Net profit for the year AVEVA Group plc Interim report 2008 Notes to the interim report 14/15 Notes to the interim report continued 6 Income tax expense The current year income tax expense for the six months ended 30 September 2008 is estimated at 29.5% (2007 – 30%) of profit before tax. The total tax charge of £8.6 million (2007 – £5.1 million) is made up of UK tax £5.5 million (2007 – £4.4 million) and overseas tax of £3.1 million (2007 – £0.7 million). 7 Interim ordinary dividend The proposed interim dividend of 2.86p per ordinary share will be payable on 9 February 2009 to shareholders on the register on 9 January 2009. 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: Final 2006/07 paid at 2.94p per share Interim 2007/08 paid at 1.65p per share Final 2007/08 paid at 5.0p per share Six months ended 30 September 2008 £000 (unaudited) 2007 £000 (unaudited) — — 3,380 — 3,380 1,980 — — 1,980 Year ended 31 March 2008 £000 (audited) 1,980 1,113 3,093 8 Earnings per share The calculations of earnings per share from continuing operations are based on the profit after tax for the six months to 30 September 2008 of £20,623,000 and the following weighted average number of shares: Weighted average number of ordinary shares Weighted average number of shares held by the employee benefit trust Weighted average number of ordinary shares for basic earnings per share Effect of dilution: employee share options Weighted average number of ordinary shares adjusted for the effect of dilution Six months ended 30 September 2008 Number of shares (unaudited) 2007 Number of shares (unaudited) Year ended 31 March 2008 Number of shares (audited) 67,627,783 67,371,268 67,412,779 (15,534) — — 67,612,249 371,418 67,371,268 246,471 67,412,779 567,686 67,983,667 67,617,739 67,980,465 AVEVA Group plc Interim report 2008 Notes to the interim report 8 Earnings per share continued Details of the calculation of adjusted earnings per share are set out below: Profit for the period Intangible amortisation (excluding software) Share-based payments Adjustment to carrying value of goodwill Adjusted profit after tax Adjusted earnings per share: – basic – diluted 9 Trade and other receivables Current Trade receivables Prepayments and other receivables Accrued income Non-current Other receivables 10 Trade and other payables Trade payables Social security, employee and sales taxes Other payables Accruals Deferred income Six months ended 30 September 2008 £000 (unaudited) 2007 £000 (unaudited) 20,623 1,240 526 — 22,389 33.11p 32.93p 11,787 1,129 161 375 13,452 19.97p 19.89p As at 30 September 2008 £000 (unaudited) 39,929 1,773 1,100 42,802 2007 £000 (unaudited) 37,203 1,797 274 39,274 As at 30 September 2008 £000 (unaudited) 568 2007 £000 (unaudited) 385 As at 30 September 2008 £000 (unaudited) 2007 £000 (unaudited) 1,405 3,275 221 13,810 22,587 41,298 649 3,155 63 12,343 18,031 34,241 14/15 Year ended 31 March 2008 £000 (audited) 34,246 2,276 315 391 37,228 55.22p 54.76p As at 31 March 2008 £000 (audited) 40,804 2,277 103 43,184 As at 31 March 2008 £000 (audited) 737 As at 31 March 2008 £000 (audited) 1,795 4,411 26 18,944 20,047 45,223 AVEVA Group plc Interim report 2008 Notes to the interim report 16 11 Reconciliation of movements in equity (unaudited) Share capital £000 Share premium £000 Cumulative Merger translation reserve adjustments £000 £000 Total other Retained earnings £000 reserves £000 Total equity £000 At 1 April 2007 Total recognised income and expense for the period Issue of share capital Share-based payments Equity dividends 2,245 26,381 — 63 — — — 2 — — At 30 September 2007 Total recognised income and expense for the period Issue of share capital Share-based payments Equity dividends 2,247 26,444 — 78 — — — 3 — — At 31 March 2008 Total recognised income and expense for the period Issue of share capital Share-based payments Investment in own shares Equity dividends 2,250 26,522 — 628 — — — — 10 — — — 3,921 — — — — 3,921 — — — — 3,921 — — — — — (1,176) 1,196 — — — 20 4,586 — — — 4,606 (148) — — — — 2,745 1,196 — — — 33,941 65,312 11,759 12,955 65 161 (1,980) — 161 (1,980) 3,941 43,881 4,586 25,525 — 154 (1,113) — — — 76,513 30,111 81 154 (1,113) 8,527 68,447 105,746 (148) 18,442 18,294 638 526 (495) (3,380) (3,380) — 526 (495) — — — — At 30 September 2008 2,260 27,150 3,921 4,458 8,379 83,540 121,329 During the six months ended 30 September 2008 the Company issued a total of 291,549 ordinary shares pursuant to the exercise of share options by employees. The total consideration was £638,000 and the share premium was £628,000. On 15 July 2008, the AVEVA Group Employee Benefit Trust 2008 purchased 36,448 ordinary shares in AVEVA Group plc for consideration of £495,000. The shares are held by the Trust to satisfy options under the Group’s share option schemes and the cost of these shares is included within retained earnings in the balance sheet. 12 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 Chief Executive 11 November 2008 Paul Taylor Finance Director AVEVA Group plc Interim report 2008 Notes to the interim report Company information and advisers Directors Nick Prest CBE Chairman David Mann Non-Executive Director and Senior Independent Director Jonathan Brooks Non-Executive Director Philip Dayer Non-Executive Director Richard Longdon Chief Executive Paul Taylor Finance Director Secretary Paul Taylor Registered office High Cross Madingley Road Cambridge CB3 0HB Registered number 2937296 Auditor Ernst & Young LLP Compass House 80 Newmarket Road Cambridge CB5 8DZ Bankers Barclays Bank plc 15 Bene’t Street Cambridge CB2 3PZ Solicitors Mills & Reeve LLP Francis House 112 Hills Road Cambridge CB2 1PH Ashurst LLP Broadwalk House 5 Appold Street London EC2A 2HA Stockbroker and financial advisers RBS Hoare Govett Limited 250 Bishopsgate London EC2M 4AA Registrars Capita Registrars Limited Northern House Woodsome Park Fenay Bridge Huddersfield West Yorkshire HD8 0LA AVEVA Group plc High Cross Madingley Road Cambridge CB3 0HB UK Tel +44 (0)1223 556655 Fax +44 (0)1223 556622 www.aveva.com