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

c. Actuarial assumptions used to calculate Axway Software’s provision for retirement benefits The main actuarial assumptions used in respect of Axway Software’s plan are as follows:

31/12/2017

31/12/2016

31/12/2015

Benchmark for discounting Discount rate for commitments

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

1.77% 2.50% 65 ans

1.74% 2.50% 65 ans

2.41% 2.50% 65 ans

Future salary growth rate

Age at retirement

Mortality table

INSEE 2013-2015

INSEE 2012-2014

INSEE 2011-2013

Assumptions referring to mortality rates are based on published statistical data. Updating of mortality tables increased the commitment by €8Ǿthousand. Turnover tables are established for each company concerned by five-year age brackets and are updated at each year-end to reflect data on employee departures for the last five years. Updating of five-year workforce turnover rates and assumptions relating to departure procedures reduced the commitment by €486Ǿthousand. Retirement benefit commitments are discounted using a discount rate corresponding to the interest rate of prime corporate bonds (carrying a rating of AA or higher) denominated in the payment currency, the maturity period of which is close to the average estimated length of the retirement obligation concerned. Since 31ǾDecember 2009 and for the euro zone, the Group has used the rates published by Bloomberg as the benchmark for the discounting its retirement benefit commitments. A discount rate of 1.77% was used forǾ2017.

d. Table of changes in Axway Software’s provision for retirement benefits

Present value ofbobligations notbfinanced

Unrecognized actuarial differences

Net commitments recognized in thebbalance sheet

Taken to thebconsolidated statements of income

(in thousands of euros) 31ǾDecember 2015

6,571

- - - - - - - - - - - -

6,571

641

Change in scope of consolidation

-

Past service cost

532 164

532 164

532 164

Financial cost

Benefits paid to employees Change in actuarial differences

-385 -687

-385 -687

-385

-

31ǾDecember 2016

6,196

6,196

312

Change in scope of consolidation

-

Past service cost

317 111

317 111

317 111

Financial cost

Benefits paid to employees Change in actuarial differences

-162

-162

-162

-1,241 5,221

-1,241 5,221

31ǾDecember 2017

-

266

132

AXWAY - 2017 REGISTRATION DOCUMENT

www.axway.com