AVEVA Group PLC Capital Markets Day and Trading Update (7430D)
01 July 2021 - 04:00PM
UK Regulatory
TIDMAVV
RNS Number : 7430D
AVEVA Group PLC
01 July 2021
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 GBP1,196.1
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
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END
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