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

Comments on the Group’s 2017 consolidated financial statements

Revenue by business line

2016 Published

2016 Restated

2017 65.3 37.5 145.4

Total Growth Organic Growth (1)

(in millions of euros)

Licenses

81.3

80.3 32.8

-19.6%

-18.7% 14.4%

Cloud

0.0

0.0% 1.7%

Maintenance

143.0

141.4

2.8%

1

Services Axway

51.6

76.8

57.1

-32.9% -0.4%

-9.6% -3.8%

299.8

301.1

311.6

(1) At comparable scope and exchange rate.

License revenue of €65.3Ǿmillion, representing organic growth of -18.7%, nevertheless rebounded in the 4 th Ǿquarter with +8.0% growth compared to the 4 th Ǿquarter ofǾ2016. The Cloud activity, with 14.4% organic growth in its first full year, is on track to fulfilling the new Axway product strategy with a hybrid offer of Licenses and private or public Cloud. To this 2017 figure should be added the value of contracts signed for the year – ACV – amounting to €7.3Ǿmillion for a full year’s subscription, which will be recognized in the 2018 fiscal year.

Maintenance, with organic growth of 2.8%, remains on a significant uptrend despite the fall in demand for licenses. The strongest increases in organic growth were noted in Germany (+10.3%), the United Kingdom (+9.1%), the Americas zone (+4.1%) and the Asia-Pacific region (+12.0%). Lastly, the Services activity fell 9.6% across all regions except Asia and Germany where service growth exceeded 10%.

Revenue by region

2016 Published

2016 Pro Forma

2017 83.8 71.7 128.8

Total Growth Organic Growth (1)

France

94.2 68.8

94.2 67.4

-11.0%

-11.0%

Rest of Europe

4.3% 4.8% 1.8%

6.5%

Americas

122.9

134.9

-4.5%

Asia/Pacific

15.6

15.3

15.2

2.7%

Axway

299.8

301.1

311.6

-0.4%

-3.8%

(1) At comparable scope and exchange rate.

Germany and Benelux zone contributing characteristic digital transformation projects. The Asia-Pacific region grew overall by 1.8% due to customer demand, particularly for API offers in projects to accelerate Digital Business Enablement.

The United States contributed revenue of €128.8Ǿmillion (+4.8% total growth) and remained Axway’s largest market. France, with revenue of €83.8Ǿmillion, showed a decline of -11.0% due to a fall in licenses in the region, and despite growth of over 40% in the Cloud activity. Total growth for the Rest of Europe was 4.3%, with

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AXWAY - 2017 REGISTRATION DOCUMENT