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

Strategy and activities

No ecosystem blooming without highly productive connectivity and integration. For enterprises to develop their ecosystems, they need to change paradigm. From “high control” to “high productivity”. Past integration technologies were “high control” driven, with integration specialists managing the end-to-end connectivity and integration with applications (enterprise application integration), businesses (B2B integration) and databases (data integration). Now the shift is twofold. On one hand, the “what you have to integrate with” in order to develop your ecosystem has multiplied:

businesses need now to integrate with SaaS applications, mobile applications, cloud object stores, “things”, client endpoints such as wearables, virtual private assistants, bots,Ǿetc., and microservices. On the other hand, no single team can handle all these integration scenarios: vendors like Axway need to offer “high productivity” solutions to enable people with different levels of skills (from the non-specialist to the occasional user of integration technologies to the integration specialist) to realize these integrations. And the only way to “enable” those integration users is through a platform approach: hence the strategic direction of Axway to deliver a “Hybrid Integration Platform”. ● Axway allows for hybrid deployment options: we leave the customers with the freedom to use the public cloud service or to deploy the product in their own private cloud infrastructure; Some integration specialists come more from a “cloud” background (Dell/Boomi, Jitterbit) and some from a “ground” background (Software AG, Tibco). Some integration specialists come more from a “service/API”-driven integration background (Progress, Salesforce/Mulesoft), and some from a data/file-driven integration background (Talend, Informatica). Axway’s differentiators against those integration specialists are: ● our roots in file exchange and file-based integration, with Managed File Transfer (MFT) and Enterprise File Sync and Share (EFSS). Many, if not most, of enterprise data are files, which need to be moved and shared within and beyond the walls of the enterprise, ● our API-based governance which allows our customers to create their own experience on top of Axway products as well as on top of third-party non-Axway products; ● Axway allows for ecosystem enablement, whether for file-based interactions or for API-based interactions. We offer a simple, safe and cost-effective solution enabling a company to share its files and folders with the members of its ecosystem; we give the company scope for creating new services to support the company’s own services and those of its ecosystem partners in a simple, safe and cost- optimized environment. ● the integration specialists:

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1.3.3 Industry and competitive landscape Software-enabled platform businesses are achieving the highest market cap of any company. Platform businesses create value which they can then monetize by hosting an environment for producers and consumers to engage in high-value exchanges, typically flows of data. These interactions, amassed over time, become a strategic source of business model innovation, growth, and competitive advantage.

As of mid-April 2018, certain companies that have platform-based business models achieve high stock exchange capitalizations: Alphabet and Amazon are around $750 billion, Apple around $870 billion and Microsoft $740 billion. Axway is moving towards such a platform business model. Axway’s competitors can be classified in two categories: Some platform generalists come more from a “cloud” background (Amazon, Google) and some from a “ground” background (IBM, Redhat). Some platform generalists come more from an application background (SAP, Oracle, Microsoft), and some from an “infrastructure” background (IBM, Computer Associates). In general, those platform generalists provide a “good enough” integration “commodity”. Axway’s differentiators against those platform generalists are: ● our specialization in the integration domain; and our deeper solution expertise to meet large customer integration requirements, ● our independence: we leave the customers with the freedom to choose the infrastructure of their choice, ● the platform generalists:

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AXWAY - 2017 REGISTRATION DOCUMENT