AXWAY_REGISTRATION_DOCUMENT_2017

AXWAY GROUP AND ITS BUSINESS ACTIVITIES

CORPORATE RESPONSIBILITY

CORPORATE GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

2017 ANNUAL FINANCIAL STATEMENTS

CAPITAL AND AXWAY SOFTWARE STOCK

INFORMATIONS ADMINISTRATIVES ETbJURIDIQUES

COMBINED GENERAL MEETING OFb6bJUNEb2018

Notes to the financial statements

InǾ2017, interest expenses were related to fees for non-use of medium-term borrowing, and to the interest expense related to the revolving credit facility (RCF). 10.2 Other financial income and expense Foreign exchange gains and losses mainly relate to commercial transactions denominated in foreign currencies.

Foreign exchange differences relating to intercompany loans are considered as an integral part of the Group’s net investment in the foreign subsidiaries concerned and are recognized as a distinct component of shareholders’ equity under “Foreign exchange gains and losses” in application of IASǾ21.

2016

2015

2014

Foreign exchange gains and losses

2,281

795

-1,220

Reversal of provisions

137

32

86

Proceeds from disposal of financial assets sold

- -

- -

- -

Other financial income

Total foreign exchange gains/losses and other financial income

2,418

827

-1,134

Charges to provisions

-0

-

-41

Discounting of retirement benefit commitments Discounting of employee profit-sharing Discounting of employee profit sharing Change in the value of derivatives Net carrying amount of financial assets sold

-152

-203

-167

- -

- -

- -

198

47

162

-

-

-

-680 -634

-149 -305 522

-113 -158

Other financial expenses

Total other financial expenses

4

Total other financial income & expense

1,784

-1,292

Discounting of retirement benefit commitments : see NoteǾ5.3. Discounting of employee profit-sharing : see NoteǾ10.4.

reasonable basis for recognition by the Autorité des marchés financiers (AMF) in its position No.Ǿ2012-13 on the classification of UCITS as cash equivalents: ● UCITS classified by the AMF as “euro-denominated” money- market instruments are presumed to satisfy the four key criteria already mentioned. In accordance with AMF Recommendation No.Ǿ2011-13 on the classification of UCITS as cash equivalents, a regular assessment of historical performance is performed to confirm that the risk of a change in the value of these instruments is negligible, especially in times of crisis or market tension; ● eligibility of the other cash UCITS as “cash equivalents” has not been presumed: an analysis of compliance with the four criteria cited is required. Cash equivalents are recognized at their fair value; changes in fair value are recognized in the income statement under Other financial income and expenses. The statement of cash flows is presented on pageǾ3.

10.3 Cash and cash equivalents Cash and cash equivalents comprise cash, bank demand deposits, other highly liquid investments with maturities not exceeding three months and bank overdrafts. Bank overdrafts are included as part of Financial debt – short-term portion. Under IASǾ7, cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The Group applies the classification of UCITS as updated by the Association française de gestion (AFG), the Association française des tr e (AFTE) and the Association française des investisseurs institutionnels (AF2I), adopted as a

149

AXWAY - 2017 REGISTRATION DOCUMENT