AXWAY_REGISTRATION_DOCUMENT_2017

AXWAY GROUP AND ITS BUSINESS ACTIVITIES Notes to the financial statements

CORPORATE RESPONSIBILITY

CORPORATE GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

2017 ANNUAL FINANCIAL STATEMENTS

CAPITAL AND AXWAY SOFTWARE STOCK

INFORMATIONS ADMINISTRATIVES ETbJURIDIQUES

COMBINED GENERAL MEETING OFb6bJUNEb2018

Notes to the consolidated financial statements This is the seventh publication for the Axway Group following its IPO on the NYSE Euronext in Paris on 14ǾJune 2011. The consolidated financial statements were prepared in accordance with the accounting policies and principles in force at 31ǾDecember 2017, on the bases described below in order to provide an overview of the business activities included in Axway’s scope of consolidation. Axway (Euronext: AXW.PA) opens up a world of digital experiences by connecting clients’ people, systems, businesses and customer ecosystems to digital infrastructure solutions. Axway AMPLIFY™, our hybrid data integration platform, connects data from anywhere, develops collaboration, fuelsǾmillions of apps and delivers real-time analytics to build customer experience networks. From concept to execution, Axway’s API management expertise, coupled with secure file exchange and B2B/EDI integration, has enabled it to meet the major data integration challenges of over 11,000Ǿorganizations in 100Ǿcountries. Axway Software (historically the parent company of the Axway Group) is a public listed company (société anonyme) . Its registered office is located at Parc des Glaisins 74940 Annecy-le-Vieux (France) and the Executive Management is based in Phoenix, Arizona. The consolidated financial statements of Axway Software for the fiscal year ended 31ǾDecember 2017 were approved by the Board of Directors meeting of 14ǾFebruary 2018.

NoteǾ1 Accounting principles The main accounting policies applied for the preparation of the consolidated financial statements are presented below. They have been applied consistently for all of the fiscal years presented. 1.1 Basis of preparation The consolidated financial statements for the fiscal year ended 31ǾDecember 2017 were prepared in accordance with: ● IFRS standards as adopted by the European Union. This standard is available on the European Commission website: http://ec.europa.eu/internal_market/accounting/ias_ fr.htm#adopted-commission; The financial statements were prepared mainly using the historical cost convention, except for employee benefits, payments in shareholders’ equity instruments, and financial debt and derivatives, which are measured at fair value. ● IFRS standards as published by the IASB.

impact on the Group’s financial statements and income. These primarily relate to:

● Amendments to IASǾ7 Disclosure initiative;

● Amendments to IASǾ12 Accounting for deferred tax assets due to unrealized losses; b. Standards and interpretations adopted by the European Union and applicable in advance at 31bDecember 2017 Application of IFRSǾ9 Financial Instruments is compulsory as of 1ǾJanuary 2018. The Group has analyzed the new rules and diagnosed their impact, identifying the following changes: A new model for impairment of trade receivables requires statistical provisioning of credit risk at the issuance of the receivables. Given both the nature of the Group’s customers, who exhibit a low credit risk, and the policy of systematically provisioning receivables beyond a certain maturity, in the Group’s view the application of this new rule will have no material impact on its financial statements. The new standard changes the accounting treatment of refinancing transactions to the extent that they are not considered as a repayment, but as an amendment of the previous terms. In the Group’s view, the changes to its borrowings prior to the application of the new rule will have no material impact. ● IFRSǾ9 Financial Instruments,

1.2 Application of new standards andbinterpretations

a. New mandatory standards and interpretations The new standards, amendments to existing standards and interpretations, which must be applied for the accounting periods beginning on or after 1ǾJanuary 2017 did not have any material

122

AXWAY - 2017 REGISTRATION DOCUMENT

www.axway.com