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

NoteǾ8 Property, plant and equipment, and intangible assets 8.1 Goodwill

Should the calculation of goodwill result in a negative difference (in the case of an acquisition conducted under advantageous conditions), the Group recognizes the resulting gain as a bargain purchase in profit or loss.

For each business combination, the Group may elect to recognize under its balance sheet assets either proportionate goodwill (corresponding only to its percentage of ownership interest) or full goodwill (also including the goodwill corresponding to non- controlling interests). 8.1.1 Changes in goodwill The principal movements inǾ2016 and 2017 were as follows:

Gross value

Impairment

Net

(in thousands of euros) 31 December 2015

260,658

8,820

251,838

Acquisition of Appcelerator

32,054

32,054

Foreign exchange gains and losses

4,833

-76

4,909

31 December 2016

297,544 76,630 -31,870 342,304

8,744

288,801 76,630 -31,813 333,617

Acquisition of Syncplicity

Foreign exchange gains and losses

-57

31 December 2017

8,687

8.1.2 Determination of goodwill for business combinations Goodwill recognized in FebruaryǾ2017 relates to the acquisition of Syncplicity LLC measured at the acquisition date. This goodwill, however, will be finalized at the end of the stipulated 12-month allocation period. The conversion rate adopted at the date of Syncplicity’s acquisition is EURǾ1 equals USDǾ1.0533. Goodwill recorded in JanuaryǾ2016 concerns the acquisition of Appcelerator Inc. measured at the date of acquisition. This goodwill was finalized as of 31ǾDecember 2016 within the stipulated 12-month allocation period.

As at 31/12/2017

(in thousands of euros)

Acquisition price

56,964

Discounted value of earn-out

0

Acquisition cost Net equity acquired

56,964 -31,154 88,117 11,488 76,630

Difference

Assets and liabilities at fair value net of tax

Goodwill

142

AXWAY - 2017 REGISTRATION DOCUMENT

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