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

10.6 Management of financial risks

10.6.1 Credit risk a. Maturity of trade receivables

Of which: neither impaired nor past due at the reporting date

Of which: not impaired at the reporting date but past due, with the following breakdown

between 91 and 180bdays

between 181 and 360bdays

less than 30bdays

Carrying amount

Of which: impaired

between 30 and 60bdays

between 61 and 90bdays

more than 360 days

(in thousands of euros)

Trade receivables (includingbdoubtful debts)

71,090 1,135

47,326 14,053

4,442

1,123

1,139

610

1,263

b. Statement of changes in provisions for doubtful receivables

31/12/2017

31/12/2016

31/12/2015

(in thousands of euros)

Impairment of trade receivables at start of period

874 974

911 778

751 751

Charges Reversals

-666

-810

-615

Changes in scope of consolidation Foreign exchange gains and losses

-

-8 31

-48

-5

Impairment of trade receivables at end of period

1,135

874

911

4

10.6.2 Liquidity risk According to the definition given by the Autorité des marchés financiers , liquidity risk arises when assets are longer term than liabilities. This can result in an inability to repay short-term debt if the Company is unable to sell the asset in question or obtain bank credit lines.

At 31ǾDecember 2017, there was no liquidity risk. On this date, the Group had €89Ǿmillion in credit lines and €20Ǿmillion in unused bank overdrafts, together totaling €109Ǿmillion. Furthermore, the Group had cash and cash equivalent of €28.1Ǿmillion.

The following table shows the non-discounted contractual cash flows of consolidated net debt at 31ǾDecember 2017:

Total contractual flows

Carrying amount 48,762

Less than 1byear 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years

More than 5byears

(in thousands of euros)

Bank loans

51,247

3,493

4,226

3,443

38,315

1,016

754

Finance lease liabilities Employee profit sharing Current bank overdrafts

-

-

-

3,470

3,088

897

658

654

449

430

8

8

8

Financial debt

52,240 54,343

4,397

4,884

4,098 38,764

1,446

754

Cash and cash equivalents Consolidated net debt

-28,146 -28,146 -28,146 24,094 26,197 -23,749

4,884

4,098 38,764

1,446

754

10.6.3 Market risks a. Interest rate risk Interest rate risk is managed by the Group’s Finance Department in liaison with the partner banking institutions. Hedging of borrowings When the multi-currency credit line was opened, a hedging contract was put in place to hedge the risks of a rise in the

interest rate applicable to this line, the three-month Euribor. As of 30ǾJune 2016, this SWAP contract expired and no new hedges were in place inǾ2016 or 2017. Summary of exposure to interest rate risk The table below shows the Group’s exposure to interest rate risk based on commitments at 31ǾDecember 2017.

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AXWAY - 2017 REGISTRATION DOCUMENT