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

5.3 Retirement benefits and similar commitments a. Short-term employee benefits and defined- contribution post-employment benefits The Group recognizes the amount of short-term employee benefits, as well as the contributions due in respect of mandatory state-sponsored pension plans, under employee costs. As the Group has no commitments beyond these contributions, no provision was recognized for these plans. b. Defined-benefit post-employment plans and other long-term employee benefits These plans relate mainly to France, for the payment of pensions in accordance with collective bargaining agreements. The defined-benefit plans are borne directly by the Group, which provides for the cost of the future benefits based on conditions below. The Group uses the projected unit credit method to determine the value of its defined-benefit obligation: this method stipulates that each period of service gives rise to an additional unit of benefit rights and separately values each of the units to obtain the final commitment. The above calculations reflect various actuarial assumptions relating to matters such as the estimated periods of future

service of employees, future salary levels, life expectancy and employee turnover. The resulting benefit obligation is then discounted using an appropriate interest rate for first-rate corporate bonds denominated in the currency of payment of benefits and with a maturity approximating with the estimated average maturity of the benefit obligation. A change in these estimates and hypotheses may lead to a significant change in the amount of the commitment. The amount of the provision recognized for retirement benefit commitments and similar corresponds to the present value of the obligation in respect of defined benefits. Actuarial differences resulting from changes in the value of the discounted obligation in respect of defined benefits include on the one hand, the effects of differences between previous actuarial assumptions and actual data, and on the other hand, the effect of changes in actuarial assumptions. Actuarial differences are fully recognized in shareholders’ equity for all of the Group’s defined-benefit plans, pursuant to IASǾ19 revised. There are no pension commitments, medical coverage, or long service awards. No new benefits or changes in regime resulting from legal, collective-bargaining or contractual provisions occurred during the fiscal year. Retirement provisions primarily concern the defined-benefit plan in France which was not financed by hedging assets.

4

Reversals for the year (provisions used)

Reversals for the year (unused provisions)

Change in scope of consolidation

Change in actuarial differences 31/12/2017

Provisions for the year

Others movements

01/01/2017

(in thousands of euros)

France

6,196

428

-162

-1,241

5,221

Germany Bulgaria

102

83

-1

-150

35 43

33

6

4

Total

6,331

-

518

-163

-

-150 -1,237 5,299

Impact (net of expenses incurred) Profit from recurring operations

370 148 518

Net financial income

Total

-

-

-

-

-

-

-

In France, the defined-benefits scheme relates to the payment of retirement benefits. The Group provides for its commitments to employees in accordance with the provisions of the Syntec collective bargaining agreement with respect to the retirement scheme modified inǾ2004 pursuant to the retirement reformmeasures introduced by the Loi Fillon of 21ǾAugust 2003. The provision for retirement benefits is assessed on an actuarial basis.

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AXWAY - 2017 REGISTRATION DOCUMENT