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

Investments inb2017

1.5 Investments inǾ2017

1.5.1 Investment policy Software development is not a sector that requires significant investment to be made on a routine basis. In addition, Axway does not own any of its facilities. Axway regularly invests in IT equipment, office furniture, fixtures and fittings. Moreover, the Group’s R&D expenses are recognized as operating expenses, and not as investments. As a result, Axway’s main investments comprise acquisitions or purchases of shareholdings or 1.5.2 Main acquisitions The acquisition of Syncplicity in FebruaryǾ2017 significantly enhanced the digital portfolio of Axway’s product offerings. 1.5.3 Research & Development The Group continued its R&D efforts inǾ2017 and allocated €59Ǿmillion (versus €53Ǿmillion inǾ2016) to develop, improve and expand its software solutions. 1.5.4 Facilities A total of €6.0Ǿmillion was invested in infrastructure and technical facilities inǾ2017, compared with €10.5Ǿmillion inǾ2016. These investments break down as follows:

intangible assets, particularly with a view to gaining new client portfolios and software, entering new markets or consolidating its existing presence in a certain region. At the date of this Registration Document, the Company’s management has not made any firm commitments regarding significant investment.

1

Syncplicity is recognized for its EFSS (Enterprise File Sharing and Synchronization) technologies.

These R&D expenses, which relate mainly to the direct cost of staff dedicated to developing Axway Software’s software packages and solutions, have been recognized in full as operating expenses.

Further information on property, plant and equipment and intangible assets, as well as changes, is presented in NotesǾ8.3 and 8.4 (ChapterǾ4) to the 2017 consolidated financial statements.

● furniture, fixtures and fittings: €2.2Ǿmillion;

● IT facilities: €3.8Ǿmillion.

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AXWAY - 2017 REGISTRATION DOCUMENT