AXWAY_REGISTRATION_DOCUMENT_2017

CORPORATE RESPONSIBILITY AXWAY GROUP AND ITS BUSINESS ACTIVITIES General situation in the enterprise software market

CORPORATE GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

2017 ANNUAL FINANCIAL STATEMENTS

CAPITAL AND AXWAY SOFTWARE STOCK

INFORMATIONS ADMINISTRATIVES ETbJURIDIQUES

COMBINED GENERAL MEETING OFb6bJUNEb2018

Thischapter describeschanges in theenterprisesoftwaremarket, includinghowthedigital transformation trends are affecting the middleware sub-segment. Accelerating adoption of cloud computing, the Internet of Things (IoT) and the expanding engagement within business ecosystems with the resulting customer and user behavior change is dramatically impacting the market landscape in which Axway and its customers operate. Through innovation, transformation and potential acquisitions, Axway will offer solutions based on hybrid integration platform capabilities that enable its customers to engage across their ecosystems and build and grow their digital business.

1.1 General situation in the enterprise software market

1.1.1 Enterprise software market Enterprise software is typically packaged for sale to enterprises to install on premise, in the cloud, or in a hybrid model. The Enterprise Software market is segmented into two major categories: Gartner estimates global spending on application and infrastructure software in 2018 will reach almost $388.7 billion, growing 8.5% CAGR from 2016 through 2021 (1) . Axway competes in sub-segments of the “infrastructure software” category, mostly in the application infrastructure and middleware sub-segment, encompassing technologies such as Managed File Transfer, B2B integration, API Management, Mobile App Development, Enterprise File Sync and Share and Integration Platform as a Service. Axway calculates that it operates in an available market of $14.5B and is affected by regional market dynamics. Gartner estimates 2018 application and infrastructure software growth by region as follows: North America 7.9%, Latin America 10.5%, Western Europe 7.1%, and Asia/Pacific 11.3%. ● application software ● infrastructure software

Axway provides its solutions also via a cloud deployment or SaaS-based model in addition to its historical on-premise offering. Gartner estimates the “Cloud Application Infrastructure Services” software market (2) , for the application infrastructure and middleware sub-segment is estimated to reach $7.7 billion in 2018, growing 16.3% CAGR from 2017 through 2022. 2018 regional growth is estimated as: United States 20.4%, France 19.4%, United Kingdom 21.0%, Germany 19.5%, Brazil 25.2%, Australia 21.6%. The market of Integration technologies has evolved in the recent years in mainly two ways: ● the nature of the “endpoints” which need to be integrated within an enterprise ecosystem: it is no longer just applications, databases and businesses, but now it extends to: mobile applications, cloud applications (SaaS), cloud data storage, “things”, spoke endpoints such as wearables, virtual private assistants, bots, etc.; ● the deployment and operation models of the integration solutions: now offered as a “platform as a service”, or deployable on a customer managed private cloud.

(1) “Gartner Forecast: Enterprise Software Markets, Worldwide, 2014-2021, 4Q17 Update”, 15 December 2017. (2) “Gartner Forecast: Public Cloud Services, Worldwide”, 2016-2022, 1Q18 Update, 13bApril 2018.

The Gartner Report(s) described herein, (the “Gartner Report(s)”) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of this Prospectus) and the opinions expressed in the Gartner Report(s) are subject to change without notice.

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AXWAY - 2017 REGISTRATION DOCUMENT

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