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

NoteǾ9 Provisions

A provision is recognized when an obligation exists with respect to a third party originating as of the balance sheet date and when the loss or liability is probable and may be reliably estimated.

To the extent that this loss or liability is not probable or may not be reliably estimated, a contingent liability is disclosed by the Group among its commitments given.

Changes inb2017 provisions (in current and non-current liabilities)

Reversals for the year (provisions used)

Reversals for the year (unused provisions)

Change in scope of consolidation

Provisions for the year

Other movements

01/01/2017

31/12/2017

(in thousands of euros)

Provisions for disputes Provisions for guarantees

735 110

- - - - - - - - -

611

-623

-70

- - - - - -

653 130

20

- -

-

Other provisions for contingencies Subtotal provisions for contingencies

77

-4

73

922

631

-623

-74

856 427 112 708

Provisions for tax

1,140

- -

-

-713

Restructuring provision Other provisions for losses Subtotal provisions for losses

699 802

-761

-10

89 89

-

-

2 2 2

2,641 3,563

-761

-723 -796

1,247 2,103

Total

720

-1,385

Impact (net of expenses incurred) Profit from recurring operations

631

-80

Operating profit

86

-2 -1

Net financial income

3

Tax expense

-

-713 -796

Total

720

● The €130Ǿthousand guarantee provision concerned Axway GmbH in Germany. ● Provisions for disputes mainly relate to labor arbitration proceedings and severance pay, chiefly in France. The €693Ǿthousand reversal of a provision for disputes is explained by disputes provisioned inǾ2016 and during the 1 st Ǿhalf ofǾ2017, which were resolved in the 2 nd Ǿhalf ofǾ2017. New disputes were provisioned for €611Ǿthousand at 31ǾDecember 2017. ● The provision for tax related to the tax audit of Axway Software forǾ2009, 2010 and 2011, for which Court of Appeal proceedings are pending.

● The other provision for charges, of €112Ǿthousand, concerns reorganization actions. ● A provision for charges of €614Ǿthousand is recognized in the financial statements of Axway Srl in Italy. This provision concerns a defined-benefits plan pertaining to the payment of regulatory termination benefits (trattamento di fine rapporto). These payments are calculated as a proportion of the employee’s gross annual salary and are linked to the price index issued by the Italian Institute of Statistics (ISTAT). A €93Ǿthousand seniority provision was also recognized in the financial statements of Axway GmbH in Germany.

NoteǾ10 Financing and management of financial risks

10.1 Costs of net financial debt

2016

2015

2014

Income from cash management

192

128

286

Interest expense

-1,285 -1,093

-508 -380

-648 -361

Total

148

AXWAY - 2017 REGISTRATION DOCUMENT

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