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 annual financial statements 2017

2 Notes to the balance sheet

2.1 Fixed assets

Intangible assets

Research & Development expenses

Concessions, patents, similarbrights

Business goodwill

Mali Base ClientbSystar

Total

(in thousands of euros) Gross value At 1ǾJanuary 2017

32,055

49,668

36,898

5,667

124,289

Acquisitions

- -

754

- -

- -

754

Disposals

-

-

At 31ǾDecember 2017

32,055

50,422

36,898

5,667

125,043

Depreciation and amortization At 1ǾJanuary 2017

29,765

35,983

35

540 540

66,322

Provisions Reversals

1,554

2,301

- -

4,395

-

-

-

-

At 31ǾDecember 2017 Net value At 1ǾJanuary 2017 At 31ǾDecember 2017

31,319

38,283

35

1,079

70,717

2,291

13,686 12,139

36,863 36,863

5,127 4,588

57,967 54,326

736

Impairment tests of business goodwill show value-in-use, calculated according to the cash flow method, greater than the net carrying amount. The discount rate used is 9.6% and the infinite growth rate is 2.2%.

Software development costs, which totaled €25,574Ǿthousand in fiscal yearǾ2017, were recorded in full as expenses (see NoteǾ1.2). Concessions, patents and similar rights consisted mainly of software contributed by Sopra Group inǾ2001, acquired from Axway Inc. inǾ2010 and 2011, from Access UK inǾ2012, and by the transfer of all of Systar’s assets inǾ2015.

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AXWAY - 2017 REGISTRATION DOCUMENT