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

3 Notes to the income statement 3.1 Revenue Revenue breaks down as follows by business:

2017

2016

(in thousands of euros)

Licenses

22.4% 54.9% 17.9%

26.5% 58.6% 13.0%

Support and maintenance

Integration and training services

Cloud services

4.9%

1.9%

Revenue

100.0%

100.0%

Out of €162.1Ǿmillion in revenue forǾ2017, €83Ǿmillion was generated at the international level.

3.2 Compensation granted to the members of administrative and management bodies Directors’ fees totaling €262Ǿthousand were paid to directors in AprilǾ2017. Compensation paid inǾ2017 to governing and management bodies was €959Ǿthousand.

3.3 Net financial income

2017 7,594 -1,098

2016 4,856 -484 -219 -164

(in thousands of euros)

Dividends received from equity investments Interest on bank borrowings and similar charges

5

Interest on employee profit sharing

-213 -111

Discounting of retirement benefits (provision) Losses on receivables from equity investments Interest received and paid on Group current accounts

-

-

372

56

Positive and negative foreign exchange impact (including provisions)

-5,356 7,087

-3,123 7,765

Other allocations to and reversals of financial provisions before exchange rate differences

Other financial income and expense

-687

-140

Net financial income

7,587

8,547

The breakdown of dividends received is listed in the table of subsidiaries and equity investments (see ChapterǾ4, NoteǾ4.7).

3.4 Exceptional income InǾ 2017, extraordinary losses of €336Ǿ thousand mainly concerned: ● proceeds of the Systar UK Ltd (€372Ǿthousand) and Axway Software SDN BHD (€3.2Ǿthousand) liquidations;

● market value asset liquidation of Systar UK Ltd €572Ǿthousand;

● restructuring costs €490Ǿthousand;

● Losses on disposals of treasury shares €121Ǿthousand; ● Cost of Urssaf reassessment audit €298Ǿthousand; ● reversal of an exceptional impairment (€873Ǿthousand).

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AXWAY - 2017 REGISTRATION DOCUMENT