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

31/12/2017

31/12/2016

31/12/2015

(in thousands of euros)

Investment securities

-

-

-

Cash

28,146 28,146

51,716 51,716

44,664 44,664

Cash and cash equivalents Current bank overdrafts

-8

-9

-798

Total

28,138

51,707

43,866

c. Financial debt Financial debt essentially comprises:

Net cash and cash equivalents include available liquid funds (cash and positive bank balances), investment securities that meet the definition of cash equivalents, bills of exchange presented for collection and due before the reporting date and temporary bank overdrafts.

● bank loans: bank loans are initially recognized at fair value less transaction costs. Bank borrowings are subsequently recognized at amortized cost; any difference between the capital amounts borrowed (net of transaction costs) and the amounts repayable is recognized in the income statement over the duration of the borrowings using the effective interest rate method; ● the liability for employee profit-sharing, recognized in blocked current accounts: these liabilities are subject to adjustment to take into account the differential between the contractual interest rate applied and the applicable regulatory floor rate. For any given year, this difference applies to liabilities requiring the recognition of an additional charge under employee costs. This difference reduces the financial expenses over the following five years. Axway Software’s employee profit-sharing reserves are managed in current accounts that cannot be accessed for five years, on which interest accrues at a fixed rate. An agreement struck inǾ2002 also enables employees to opt for external management in multi-company mutual funds. Pursuant to the application of IASǾ32 and IASǾ39, liabilities in respect of profit sharing were restated: ● current bank overdraft facilities. Financial debt payable within 12Ǿmonths of the reporting date is classified within current liabilities.

10.4 Financial liabilities − Net debt

a. Finance leases Leases on property, plant and equipment under which the Group retains substantially all the risks and rewards incidental to ownership of the assets are treated as finance leases. The related assets are recognized at the fair value of the leased assets, or if lower, at the present value of the minimum payments due under the leases. Axway does not have any finance lease contracts in its own name; however it uses certain assets that are held by the Sopra Stéria Group under finance leases. b. Operating leases Leases under which the Group retains substantially all the risks and rewards incidental to ownership of the assets are treated as operating leases. Payments under these contracts are recognized as an expense on a straight-line basis over the duration of the applicable leases.

Current 3,560

Non-current

31/12/2017

31/12/2016

31/12/2015

(in thousands of euros)

Bank loans

45,203

48,762

35,434

4,342

Current account − Sopra Group

- -

- -

- -

-

-

Finance lease liabilities Employee profit sharing Other financial liabilities Current bank overdrafts

7

40

914

2,556

3,470

3,686

3,803

-

-

-

8

8

9

798

Financial debt

4,481

47,759

52,240

39,136

8,983

Investment securities

-

-

-

-

-

Cash and cash equivalents

-28,146 -23,665

-28,146 24,094

-51,716 -12,580

-44,664 -35,681

Net debt

47,759

150

AXWAY - 2017 REGISTRATION DOCUMENT

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