Good morning, everyone, and thank you for joining us for AVEVA's first half results call. I'm Peter Herweck, AVEVA CEO. Before I start, I should remind you that on 21st of September 2022, the board of Schneider Electric and Ascot Acquisition Holding Limited and the AVEVA independent committee announced the terms of a recommended cash offer for AVEVA. The offer remains conditional on, among other things, shareholders voting to approve the transaction at the shareholder meeting scheduled for the 17th November 2022. The terms and conditions of the offer are outlined in the scheme document sent to shareholders dated the 18th of October 2022. That said, let's move on to look at AVEVA's results for the first six months ended the 30th of September. On slide two, you find the normal usual disclaimer, which I'd like you to look at. Let's move straight to the summary of the H1 results on page five. AVEVA made good progress with its transition to subscription during the first half of the financial year. On an organic constant currency basis, ARR increased by 11.6%, SaaS revenue grew strongly and pro forma recurring revenue as a proportion of total revenue increased to over 70%, up nearly 600 basis points. At the same time as this, both absolute cash flow and cash conversion improved. Notwithstanding this positive progression, overall revenue reduced slightly on a constant currency basis and margins were impacted by both planned investments and the phasing of cost increases within the financial year. We continue to expect further improvements in AVEVA's ARR growth in the second half due to a greater weighting of contract wins and renewals on which previously announced list price increases will also take effect. On a constant currency basis, AVEVA expects to achieve some revenue growth in the second half, notwithstanding a tough comparative in the third quarter, driven by a large contract win in this prior year period. Cost increases are expected to be significantly lower in the second half. In addition, if current rates for FX persist, AVEVA second half revenues will continue to benefit from a significant currency translation gain relative to the prior year due to the strength of the U.S. dollar versus the sterling. Now over to our CFO, Brian DiBenedetto, to take us through the financials. Brian? Thank you, Peter. As you can see from the slide, the H1 results were mixed. I would remind you that the first half for AVEVA is smaller in revenue terms than half 2, and this can mean relatively small movements in revenue and cost result in large year-over-year changes in profitability in a way that is not necessarily indicative of the full year outturn. ARR, a key metric for us to track the progress of our transition to subscription, grew 11.6%. Although this is solid growth, we do expect more growth in H2 due to the greater volume of renewals and new business that we tend to win later in the year. Reported revenue grew 7%, assisted by currency translation from the U.S. dollar, which accounts for the majority of our revenue in our reporting currency sterling. Constant currency revenue growth was -2.5%. I'll provide more detail on that shortly. EBIT reduced substantially, however. This was principally due to the significant increase in costs, particularly the investment in R&D and sales to drive subscription and SaaS transition, combined with the underlying small decline in revenue. It's important to note that our increase in cost started in H2 last fiscal year, impacting our H1 run rate. I'll speak to this phasing issue in the baseline comparator for costs in a minute. Operating cash flow improved substantially, albeit from a position last year that was somewhat distorted by the OSIsoft transaction close. Cash conversion began to trend in the right direction. We will pay an interim dividend of GBP 0.13 to shareholders on the register on November 18th, 2022. The record date and payment date for the interim dividend have been brought forward for FY 2023 to ensure payment in the event that Schneider Electric's recommended offer for AVEVA completes early in the new year. Moving on, let's take a look at the pro forma income statement. I don't want to spend a long time on this slide. You can study it for yourselves, the key things to point out are, firstly, on a top-line basis, FX translation added nearly 10 percentage points to growth. Secondly, total costs were up substantially and were also impacted by FX translation, resulting in a significant year-on-year reduction in margin. Thirdly, interest costs, although not significant in absolute terms, were impacted by an increase in LIBOR. Now let's take a look at the revenue breakdown. Subscription revenue growth was driven by sales of on-premise rental contracts, which grew 17% on an organic constant currency basis as the transition to a recurring revenue model continued, particularly at OSIsoft, as it accelerated its business model transition. Within subscription, SaaS revenue grew 86% on the same basis. Although that base was relatively small, it's starting to become meaningful in absolute terms. Maintenance revenue declined on an organic constant currency basis due to a focus on selling subscription and conversions from maintenance to subscription in both the prior and current financial years. This led to an increase in total recurring revenue of 7%, taking it to 70% of total revenue, up from 64% last half year. The decline in perpetual licenses was primarily due to AVEVA's focus on selling subscription contracts, together with the decline in monitoring and control through the indirect channel. The increase in services revenue was due to project delivery for certain growth areas of the business, such as asset performance management. Overall, a positive trend in the quality of our revenue, with more over time subscription revenue and less lumpy point-in-time recognition. Moving on now to look at cost. You can see on the slide overall costs increased at a double-digit rate on an organic constant currency basis. Costs were impacted by wage inflation and the return of certain costs that were suppressed during the COVID pandemic, such as travel and in-person events. These factors impacted H2 last year, but didn't impact the first half so much, therefore leading to a significant year-on-year increase for the reporting period from a phasing standpoint. On a reporting basis, GBP costs were further affected by currency translation as the GBP has weakened versus some other currencies, particularly the U.S. dollar, and it accounts for a relatively small proportion of AVEVA's costs. Cost of sales increased primarily due to the higher costs associated with delivering services in line with the increase in service revenue and higher costs relating to the delivery of SaaS solutions as this area of the business grew. R&D costs increased due to the investment in the development of cloud products and higher employment costs, while selling and distribution expenses grew due to the increased investment in the sales force and in marketing, together with this already mentioned, higher travel costs and the in-person sales and customer events. Admin expenses increased due to higher costs in support functions, particularly legal, finance, and HR. Finally, before I hand it back to Peter, let's take a look at the balance sheet. You can see that there's been an increase in net debt in the half in GBP terms. This was largely due to the impact of FX translation on our $900 million term loan, and of course, due to the payment of the full-year dividend in the period. Looking at key factors impacting cash conversion, the increase in contract assets was due to the impact of new on-premise subscription contract wins with point-in-time revenue recognition and foreign exchange translation. While the change in contract liabilities reflects the unwinding of the deferred revenue haircut, which arose from the acquisition of OSIsoft. Thank you for listening. Now back over to you, Peter. Thank you, Brian, and let's move to page 13. During the half year on a constant currency organic basis, AVEVA grew SaaS revenue strongly by circa 86% to over GBP 20 million. The growth in SaaS revenue was, of course, primarily driven by orders won in the last year. Important to point out, our R&D spend was up significantly, as we said before, reflecting continued investment into our cloud portfolio. This slide captures in detail some of our recent cloud product developments and launches. Just to pick out a few, AVEVA Data Hub continues to evolve progressively with a lot more capabilities to serve the demands now of larger customers. AVEVA Unified Operations is in the cloud, was accelerated to be released in early calendar year 2023. This further advances product will enable hundreds of team members at the clients to view the full operations of the enterprise without having to be in the physical control room, thus expanding the user base significantly. Lastly, the first version of our Operations Control was released last quarter, which enables most of our HMI/SCADA software to be purchased and available via the group's SaaS platform, AVEVA Connect. This is all part of the hybrid strategy where AVEVA's on-prem software is interwoven with AVEVA Connect on the cloud. Let's look in more detail at two core divisions of the overall group. Engineering business unit to date consists of engineering and simulation software. Engineering contributes just over 30% of pro forma revenue in the period. On an organic constant currency basis, revenue increased by 6%. Market conditions were helped by stronger energy prices and the need to build and operate industrial assets more sustainably, both of which have driven capital investment. Although supply chain and limits on access to materials are somewhat disruptive for AVEVA's customers, revenue growth was solid across AVEVA's product areas. On the simulation side, we saw good growth with new customer wins through our enterprise learning solutions, which help customers improve process safety and our value chain optimization product, helping optimize and drive value from supply chains. We're making further progress with our cloud transition driven by owner-operators managing their industrial asset information in our AVEVA Connect platform. At the bottom of the slide, you can see a few logos for some of our new contract wins. A unified engineering cloud solution at Técnicas Reunidas and NP, LG Chem and a couple others. Moving to page 15. Operations to date consists of asset performance, monitoring and control, and information management. This is our PI System business. Operations contributed some 70% of the pro forma revenue in the period. On an organic constant currency basis, revenue decreased by 7%. Market conditions were mixed, with increased energy prices putting pressure on some manufacturing margins. The PI System revenue recognition was impacted by a move away from perpetual licenses, although the business was robust on an order win basis, and asset performance saw strong growth. Monitoring and control was relatively weak, primarily due to the factors including business model transition and the decline in HMI/SCADA licenses sold through the indirect channel. Similarly to engineering, you can see some of the contract wins at the bottom of the slide. Let's look at a few examples of our customer case studies. Let me start off with Técnicas Reunidas. Here we can see a case study of Técnicas Reunidas, one of the Spain largest EPCs, and they're using AVEVA's engineering solution in the cloud. They're developing engineering digital twin using AVEVA Asset Information Management and our AVEVA solution to increase project margins and reduce project timelines. LG Chem, let's look at how they, one of the largest chemical companies in South Korea, bring the digital twin strategy to life in their vinyl chloride plant with us. For those who are not familiar with chemical terms, vinyl chloride is the feedstock used to produce the very common plastic material, PVC. This is the first digital twin platform in LG Chem with our full portfolio, developing both an asset digital twin and a process digital twin to deliver a complete decision support platform for their business. This adds to LG Chem's existing AVEVA solutions, which now spans across the whole portfolio. Moving on. Here is a good example of our largest offshore fleet owner and operator in the Middle East, called Zamil. They are using our cloud-based SaaS AVEVA Unified Operations Center together with the PI System, to monitor their growth fleet of 65 marine vessels to optimize resources and logistics for offshore operations. The PI System will collect data from the ship to shore and unify with other sources. As always, these are just a few examples of our successful customer wins, which tend to lead to long-term and meaningful customer relationships. Moving on. Let's look at the last slide, page 19, in the results deck, the summary and outlook. AVEVA serves a range of end markets. Within these, some such as energy, power, and infrastructure are relatively strong. Others face a more uncertain economic and geopolitical outlook. We continue to expect further improvements in AVEVA's ARR growth rate in the second half due to a larger weighting of contract wins and contract renewals, on which previously announced list price increases will also take effect. On a constant currency basis, AVEVA expects to achieve some revenue growth in the second half, notwithstanding, of course, a tough comparative in the third quarter, driven by a large contract win in the prior year. Cost increases are expected to be significantly lower in the second half. In addition, if the current rates of FX persist, AVEVA second half revenues will continue to benefit from the significant currency translation gains relative to the prior year, due to the strength of the US dollar versus the sterling. Thank you very much for listening. Bye-bye.
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