AXWAY_REGISTRATION_DOCUMENT_2017

CORPORATE GOVERNANCE AXWAY GROUP AND ITS BUSINESS ACTIVITIES Comments on the Group’s 2017 consolidated financial statements CORPORATE RESPONSIBILITY

CONSOLIDATED FINANCIAL STATEMENTS

2017 ANNUAL FINANCIAL STATEMENTS

CAPITAL AND AXWAY SOFTWARE STOCK

INFORMATIONS ADMINISTRATIVES ETbJURIDIQUES

COMBINED GENERAL MEETING OFb6bJUNEb2018

1.9 Comments on the Group’s 2017 consolidated financial statements

1.9.1 Consolidated income statement

Group results

2017 299.8

2016 301.1

2015 284.6

(in millions of euros)

Revenue EBITDA

43.9 40.5

49.6 50.8

40.3 44.5

Profit on operating activities

As % of revenue

13.5%

16.9%

15.6%

Profit from recurring operations

30.7

41.8

37.9

As % of revenue Operating profit As % of revenue

10.2%

13.9%

13.3%

27.7 9.2%

35.1

27.4 9.6% 27.9 9.8%

11.7%

Net profit − Group share

4.4

31.5

As % of revenue

1.5%

10.5%

This fall in license and service revenues was nevertheless offset by a strong increase in our cloud activities and solid growth in maintenance. Overall, total revenue declined by 3.8% in the fiscal year on an organic basis. This year ended with net income of €4.4Ǿmillion, down fromǾ2016, and equivalent to €0.21 per share compared with €1.51 per share inǾ2016.

InǾ2017, Axway generated profit from operations of €40.5Ǿmillion, compared to €50.8Ǿmillion inǾ2016. This profit from operations is a 3.4Ǿpercentage point drop at 13.5% inǾ2017, compared with 16.9% inǾ2016, and falling below the growth in profit from operations observed fromǾ2015 toǾ2016. Total revenue declined 0.4% inǾ2017 owing to the fall in license and service revenues.

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AXWAY - 2017 REGISTRATION DOCUMENT

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