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Tuesday 25th September 2012
Today’s agenda
14:00 Registration & AVEVA product workshop
Coffee; demo terminals available with G Myatt, P. Burton, R. Padhiar
Richard Longdon – Chief Executive Officer
Welcome; introductory remarks; agenda
Phil Aiken – Chairman
Video message
Mat Truche-Gordon – EVP Business Strategy & Marketing
‘Business Strategy’
Dave Wheeldon – CTO and Head of Engineering & Design Systems
‘Growing our EDS Business – Why our technology matters’
Future Plant Product demo on Windows 8 tablet
Q&A
Coffee break
Paul Eveleigh – EVP Greater China
‘AVEVA China – Our New Way Forward’
Derek Middlemas – COO and Head of Enterprise Solutions
‘ES Strategy’
Q&A Panel
Richard Longdon, James Kidd, Derek Middlemas, Hans van der Drift (EVP Sales), Paul
Eveleigh, Dave Wheeldon, Mat Truche-Gordon; Derek Brown
Richard Longdon – Chief Executive Officer
Wrap up
17:00 Drinks and canapés
Chance for an informal chat with the team; further opportunity to view product demo terminals
Business Strategy
Mat Truche-Gordon
EVP Business Strategy & Marketing
1976
Launched
PDMS
1967
CADCentre
established from
Cambridge University
1979
Launched
Intelligent P&ID
1999
Launched world’s 1st
Engineering Information
Management Solution
2002
Launch
AVEVA NET
2011
Acquired
LFM Software
1988
Launched
AVEVA Review
2001
Launched
AVEVA Global
2004
Acquired Tribon
2006
AVEVA Laser
model Interface
launched
2010
Acquired
Logimatic MARS
& ADB Systemer
2012
Acquired
bocad
A History of Innovation
So what about the future?
Emerging Markets
Plant Operations
Global Accounts
Accelerating Enterprise Solutions
3D
Extending Design Footprint
New Business Models
Growth map
Catalyst for CAPEX spend over coming
decade
0
10
20
30
40
50
60
70
2009 2010 2011 2012 2013 2014 2015
BRIC Offshore Capital Expenditure 2009-2015 ($bn)
45% of total
CAPEX
Emerging markets
Emerging Markets
Plant Operations
Global Accounts
Accelerating Enterprise Solutions
3D
Extending Design Footprint
New Business Models
Growth map
Catalyst for CAPEX spend over coming
decade
2x addressable
market
Plant operations
Emerging Markets
Plant Operations
Global Accounts
Accelerating Enterprise Solutions
3D
Extending Design Footprint
New Business Models
Growth map
Catalyst for CAPEX spend over coming
decade
2x addressable
market
Increasing share of spend
• Acting locally, co-coordinating globally
• Building stronger relationships
• Barometer for key industry trends
• Partner of choice for global project execution
• Helping our customers standardisation efforts
Future strength in global accounts
Emerging Markets
Plant Operations
Global Accounts
Accelerating Enterprise Solutions
3D
Extending Design Footprint
New Business Models
Growth map
Build on the Digital Information Hub concept to transform efficiency and quality
Digital Information Hub
Emerging Markets
Plant Operations
Global Accounts
Accelerating Enterprise Solutions
3D
Extending Design Footprint
New Business Models
Growth map
Build on the Digital Information Hub concept to transform efficiency and quality
Extending the value we bring existing customers & complete portfolio for emerging markets
Laser data processing
Drawing
Production
P&ID/ Diagrams
Instrumentation & Electrical
Structural detailing
Collaboration &
Visualisation
Engineering data
Management
3D
So much more than 3D…
Emerging Markets
Plant Operations
Global Accounts
Accelerating Enterprise Solutions
3D
Extending Design Footprint
New Business Models
Growth map
Build on the Digital Information Hub concept to transform efficiency and quality
Extending the value we bring existing customers & complete portfolio for emerging markets
Extending our reach and continually innovating WITH our customers
New Business Models
New Products
Growing our EDS Business - Why our technology matters
Dave Wheeldon
CTO & Head of EDS
Original vision of AVEVA PDMS
Error-free design
Integrated Engineering & Design
Extending the vision
Plant Design for LEAN Construction
Challenges
No physical prototype to prove the assembly
Challenges
Engineering and design is still evolving after fabrication and construction
has started
Challenges
Construction remote from fabrication and design
Challenges
Construction work with “snap-shots” of information not the whole evolving
picture
Challenges
Feed-back from construction to design is forced by crisis not routine
Opportunity
Mobile & Cloud technologies enabling the construction teams to see the whole
picture and contribute as equal stakeholders
Opportunity
Availability of low-cost of laser-scanning allows the still-evolving design to be adapted to what has already been
fabricated and constructed
Plant design for LEAN construction
Extending our mission - to create the most comprehensive and efficient 3D plant modelling system for designing and constructing new plant and for making modifications
“Future of Plant Design”
• No.1 for Rapid Project Start Up
• No.1 for Design Efficiency
• No.1 for Compliance
• No.1 for Removing Rework in Construction New 3D product architecture combining advances in Laser
Scanning, Mobile and Cloud technology with AVEVA’s proven object data modelling and management capabilities
Plant design for LEAN construction
FABRICATE DESIGN CONSTRUCT
DESIGN FABRICATE CONSTRUCT
Reduce overall project duration
Redistribute project budget
$
How are we developing
“The Future of Plant Design” ?
Always the leading innovator and our customers’ most trusted partner
Continual Progression
Mutually Supportive Aligned System Elements
Lean
Product
Development
Process
Continual progression
Collaborating with customers with real problems to solve
brings the best people together
Building on what has been done before so that each
advance is an increment not wasting time and effort by
having to restart. Introducing technology shift to deliver step change but doing so with maximum compatibility. Rejecting
technology fashions
Modelling terminology of real world objects and behaviour familiar to engineers enabling customers to model their work
processes without dependency on us to make changes
Lean Product
Development
Process
Inventing, acquiring & integrating
Extended AVEVA object management technology
New AVEVA 3D graphics
Acquired drafting engine
Acquired laser-scanning technology (LFM)
Acquired structural steel detailing (bocad)
Applications for Mobile and Cloud
Fully data-compatible with our Integrated Engineering & Design portfolio (including PDMS)
Mobile / CLOUD demo
Fresh from the lab ...
AVEVA Greater China Our New Way Forward
Paul Eveleigh EVP, Head of Greater China
Paul Eveleigh – EVP Greater China
British-Canadian
– University major: Finance
– 11 Years in Securities Trading & Portfolio Management
– Fluent in Chinese
2004 – founded Honiton Energy
– 1st producing WOFE
– 2nd Largest land area
Raised over $300m in Equity and Debt financing
2011 – joined AVEVA
Why did we change China organisation?
Why did we re-organise a well established Chinese Business?
Inefficient , legacy set-up run from Hong Kong
AVEVA needed greater control, integration and direction for the China operation
How was the reorganisation achieved?
After a 6 month assessment - complete management makeover
Headcount increased from 60+ to almost 100 in less than 2 years
WOFE created for direct selling (no withholding tax)
Increased agility in the region for delivery and face
Sales redefined to industry rather than geography
– Now focusing on higher-up decision-making in SOE Groups
– Recognising growth potential of ES - change staff skill-sets
Unusual characteristics of China market
State Owned Entities – 95% of our market – Pinpointing the right part of the food chain
– Desire for big deals (vs our previous focus)
– Need to make the right decisions (or career threat)
– Budget cycle
– The usefulness & annoyance of contract
– They will always pay
Why MOUs? – Intent
– Building walls & respect
Why be the most Chinese British company? – Prestige but respect
– Speed & ease to deal with
危机
China – Power
Inevitable lifting of nuclear-freeze
– Fukushima effect
– More engineering design with increased safety requirements
– Areva, Westinghouse design allegiances
Positioning for eventual pick up
– Building a wall around Power Engineering Market
AVEVA Net brownfield opportunity
“China will consume more energy than India, Brazil and the EU
combined by 2035.” (World Energy Outlook, IEA 2011)
China – Plant
Growing market share
– PetroChina
– Sinopec
– CNOOC
Chemical opportunity
– Aggressively pursuing the downstream opportunity
Moving quickly in new markets
– Metals & Mining, Steel
“US giant Exxon Mobil has lost its crown as the world’s biggest
producer of oil to PetroChina...” (BBC News, 29 March 2012)
China - Marine
Second year of downturn
– Outlook still bleak
New management
– Focus on customer service
Opportunities lie in Navy and Offshore
Not anticipating a near term pick up
Market share still strong
– Opportunity to ‘build walls’
“A recovery is unlikely to happen within the next three years...” (China
Shipbuilding Industry Corp., quoted in China Daily 14 Sep 2012)
SEDIN – customer example
SEDIN Engineering co., Ltd, – China’s 2nd largest Chemical Engineering Institute
– Focused on technological efficiency since 1988
– Offered a trial use of AVEVA products
– SEDIN purchased one PDMS license in the same year, and used it only in one project
The final outcome: SEDIN is now 100% AVEVA
– Further cooperation between SEDIN and AVEVA ensued, including further products like VPRM and Diagrams
– SEDIN signed a strategic cooperation agreement with AVEVA in March 2012
– Will use AVEVA solutions in all projects, including an AVEVA NET engineering information solution
Summary
AVEVA now has a truly local presence on mainland China
The end market outlook,…
– Strengthening AVEVA’s competitive position in Power
– Also growing market share in Oil & Gas, Chemical
– Significant opportunities in other industries
– Expect Marine to remain subdued over medium term
Management action to reshape the business
– Executed rapidly, back on track operationally
China is clearly a top priority for AVEVA
Enterprise Solutions Strategy
Derek Middlemas COO and Head of Enterprise Solutions
Digital Information Hub
Information engineering
Enterprise resource management
Construction
Materials
Production
Control
Design
Control
Cost
Planning
Purchase
Inspection
Availability
Commission
Enterprise asset management
Information-centric – Digital Information Hub
Delivery Model
Addressable market
Capital Project HO Operations
ERM to EPC’s and Shipyards - £400million
DIH/OIMS to OO’s £1300million
Number one Priority
Operations
Construction & materials management
Strategic wins this year
Pipeline and backlog
Licencing model
Wrap up
Richard Longdon Chief Executive Officer
Thank you www.aveva.com/investors
