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

8.4 Property, plant and equipment Property, plant and equipment essentially comprise fixtures and fittings, office furniture and equipment and IT facilities. Items of property, plant and equipment are measured at acquisition cost less accumulated depreciation and any impairment losses. No amounts have been revalued. Depreciation is calculated following the straight-line method according to the expected useful economic lives of each non- current asset category as follows:

Intangible assets essentially include non-proprietary software packages used in the Group’s ordinary course of business as well as software and client and distributor relations acquired as part of external growth transactions. These mainly consist of: ● technologies belonging to Vordel and Tumbleweed, for which the amortization periods are 10 years and 15Ǿyears respectively (from NovemberǾ2012 for Vordel and SeptemberǾ2008 for Tumbleweed); ● Systar technologies and customer-base for which the amortization periods vary between 8 and 12Ǿyears (from AprilǾ2014); ● Appcelerator technologies and customer-base for which the amortization periods vary between 5 and 9Ǿyears (from JanuaryǾ2016); ● Syncplicity technologies and customer-base for which the amortization periods vary between 10 and 15Ǿyears (from MarchǾ2017). No expense incurred in developing the Group’s solutions and software packages was capitalized, either inǾ2017 or in previous years.

● fittings and fixtures ● equipment and tooling

10 years;

3 to 5 years;

● furniture and office equipment 5 to 10 years. Depreciation is applied against asset acquisition costs after deduction of any residual value. Residual asset values and expected useful lives are reviewed at each balance sheet date.

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AXWAY - 2017 REGISTRATION DOCUMENT

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