AXWAY_REGISTRATION_DOCUMENT_2017

CORPORATE RESPONSIBILITY AXWAY GROUP AND ITS BUSINESS ACTIVITIES General situation in the enterprise software market

CORPORATE GOVERNANCE

CONSOLIDATED FINANCIAL STATEMENTS

2017 ANNUAL FINANCIAL STATEMENTS

CAPITAL AND AXWAY SOFTWARE STOCK

INFORMATIONS ADMINISTRATIVES ETbJURIDIQUES

COMBINED GENERAL MEETING OFb6bJUNEb2018

change in how businesses and consumers think about purchasing and deploying IT, as well as how they interact with each other in today’s changing market; 2. Mobile − Gartner says, “Application leaders must embrace new ways of interacting with mobile apps to keep consumers engaged as mobility becomes the gateway to digital business” (1) . Mobile has become nearly ubiquitous. Access points for exposing and consuming data and services are moving, meaning that any participant in the ecosystem can be “productive” from anywhere at any time. Productivity is the ability for a customer to place orders at any time and track them in real-time, enabled by a collaborative ecosystem of suppliers who can dynamically adjust shipment routing, re- schedule transportation, and allow service personnel to check their next stop on demand. This level of customer or business productivity is shifting to span all channels of delivery and interaction; 3. Internet of Thingsb – All market studies show that tens ofǾbillions of “things” will be connected byǾ2020.ǾNot only the number of connected “things” will increase over time, but the scope of what can be accomplished through this connectivity is also increasing. There is a continuum of capability from monitoring through control. Initially “things” such as cars, industrial equipment, healthcare devices, smart cities will be monitored, primarily capturing and transferring data to be used by a person or within a specific business process. However, the increasing sophistication of sensors and controllers, along with their declining costs, have enabled an increasing capability to control and make changes to the thing based on the context and the activity that is happening in real-time; 4. Artificial Intelligence – going mainstream in many application areas, starting with virtual assistants and bots, which revolutionize the way people interact with systems. We see also more and more use cases based on machine learning, leveraging inferential statistics and probability, to provide predictive analytics based on learning from historical records; 5. Platform – Most successful businesses nowadays are platform businesses. “Platform” here means a business model which enables the exchange of value between peer producers and consumers. Platforms disintermediate relationships and interactions. Blockchain is a kind of

platform technology which removes the central authority to govern the transactions within an ecosystem. Platforms also enable ecosystem participants to leverage one another. In the API domain, for example, platforms allow businesses to create new services from their own data assets but also from the data assets from third party suppliers. Ecosystems become a key success factor in the digital economy. In a company digital ecosystem, as much as two thirds of the information is created and used by consumers: a. searching, researching and comparing their options on one website before they buy on another; b. shopping on a website, continuing from their mobile devices, and picking up what they orderedǾ– and perhaps a few things that were recommended to themǾ– at a store (often from a different brand, a phenomenon known as showcasing); c. reading and posting user reviews for products and services they purchase, from homes and cars to food and travel; d. sharing their lifestyle choices, daily habits, work experiences, and wish lists with their family, friends, and coworkers on social networks; e. staying connected with all their “things”Ǿ– homes, cars, thermostats, phones, TVs, washers, refrigerators and almost everything elseǾ– around the clock, conveniently wherever they are; f. keeping their skills fresh through e-learning services, video content, and open forums. As a result, digital business interactions are exploding, putting tremendous pressure on businesses to respond in order to take advantage of the opportunities or be left behind. The primary challenges and opportunities for business and their information technology capabilities driven by these trends are: ● expectations of customers, employees, suppliers, and partners for increased digital interactions and experiences; ● new opportunities to “expose” and “consume” new data flows and services across the ecosystem in order to decrease time to market for new services and improve customer experience; ● interactions within the ecosystem will become increasingly agile/flexible and collaborative, allowing more real-time engagement and agility in managing the lifecycle of participants (partners, things, services,Ǿetc.) in ecosystem;

(1) Gartner, Predicts 2018: Mobile Apps and Their Development, 04 December 2017.

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AXWAY - 2017 REGISTRATION DOCUMENT

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