AXWAY_REGISTRATION_DOCUMENT_2017

AXWAY GROUP AND ITS BUSINESS ACTIVITIES

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 financial statements

4.2 Purchases and external expenses

4.2.1 Purchases

2017

2016

2015

(in thousands of euros)

Purchases of raw materials and other supplies

-

-

-

Purchases of subcontracting services

19,273

13,535

14,054

Purchases held in inventory of equipment and supplies Purchases of merchandise and change in stock of merchandise

1,554 3,782

1,139 3,609

1,263 2,591

Total

24,610

18,282

17,907

Purchases of subcontracted services increased €5.7Ǿmillion fromǾ2016 toǾ2017. This change is mainly explained by the contribution of the Syncplicity expenses of €6.5Ǿmillion. €4.1Ǿmillion of the purchases of subcontracting services inǾ2017 related to subcontracting services provided by Sopra India.

4.2.2 External expenses

2017

2016

2015

(in thousands of euros) Leases and charges

10,317

20.6% 13.6%

10,905

22.7% 11.1% -0.2% 13.4%

10,157

22.8%

Maintenance and repairs External structure personnel

6,807

5,327

3,967

8.9% 0.0%

163

0.3%

-91

-

Remuneration of intermediaries and fees

5,693 4,303

11.3%

6,434 2,746

5,204 3,195

11.7%

4

Advertising and public relations

8.6%

5.7%

7.2%

Travel and entertainment Telecommunications

10,127

20.2%

11,248

23.4%

11,353

25.5%

2,894 9,856

5.8%

3,016 8,547

6.3%

2,853 7,736

6.4%

Sundry

19.6%

17.8%

17.4% 100%

Total

50,160

100% 48,131

100% 44,464

4.3 Depreciation and amortization, provisions and impairment

2017

2016

2015

(in thousands of euros)

Amortization of intangible assets

906

590

488

Depreciation of property, plant and equipment

3,418

2,632

2,619

Depreciation and amortization of non-current assets under finance lease

- -

- -

- -

Depreciation and amortization of deferred charges

Depreciation

4,324

3,223 1,052 1,274 2,326 5,549

3,107 1,557 1,585 3,142 6,249

Impairment of current assets net of unused reversals Provisions for contingencies and losses net of unused reversals

930

1,088 2,017 6,341

Provisions and impairment

Total

4.4 Amortization of allocated intangible assets This item corresponds to the amortization expense for intangible assets obtained in connection with acquisitions of

companies (mainly Vordel, Tumbleweed and Systar inǾ2014, Appcelerator inǾ2016 and finally Syncplicity inǾ2017) amounting to €8,542Ǿ thousand inǾ 2017, €7,863Ǿ thousand inǾ 2016, €6,044Ǿthousand inǾ2015 and €5,318Ǿthousand inǾ2014. The acquisition of Syncplicity explains the increase fromǾ2016 toǾ2017.

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AXWAY - 2017 REGISTRATION DOCUMENT