DECLARATION BY THE PERSON RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT STATUTORY AUDITORS’ REPORT ON THE INTERIM FINANCIAL STATEMENTS MANAGEMENT REPORT HALF-YEAR FINANCIAL STATEMENTS CONDENSED INTERIM CONSOLIDATED 2 Notes to the consolidated income statement 23 AXWAY - 2021 INTERIM FINANCIAL REPORT Purchases and external expenses Note 6 (in thousands of euros) H1 2021 H1 2020 Purchases of subcontracting services 13,401 10,854 Purchases not for inventory of equipement and supplies 73 816 Purchases and change in stock of merchandise 178 4,242 Total purchases 13,652 15,912 Purchases of subcontracting services mainly comprise cloud hosting costs that were considerable given the growth of the Subscription activity. In the first half of 2021, the Group optimised purchases saving €1.4 million. An amount of €4.1 million was reclassified from Purchases and change in stock of merchandise to Purchases of subcontracting services. (in thousands of euros) H1 2021 H1 2020 Rent and rental charges 4,344 4,784 Lease expenses – IFRS 16 adjustment -2,861 -3,441 Maintenance and repairs 4,484 4,230 External structure personnel 36 54 Remuneration of intermediaries and fees 2,813 3,022 Advertising and public relations 1,883 1,801 Travel and entertainment 412 1,643 Telecommunications 890 1,306 Sundry 3,167 4,223 Total external expenses 15,168 17,621 With the optimisation of its expenses and lockdowns in France and worldwide, the Group reported a €1.1 million decline in costs relating to marketing events and seminars and a €1.2 million decline in travel expenses. Share-based and similar payment expenses Note 7 In H1 2021, no new free share grant plans were set up. The current plans are described in Chapter 5, Note 5.4, “Consolidated financial statements” of the 2020 Universal Registration Document. Expenses relating to free performance share grant plans totalled €2.3 million in H1 2021, compared to €2.0 million in H1 2020. This increase was primarily due to the recognition of a new plan granted in the second half of 2020 (€0.7 million) and the update at 30 June of grants based on presence and performance criteria for existing plans. The June 2018 free share grant plan, “LTI PLAN C”, was settled in the first half of 2021 with the presentation of 154,865 shares to the Axway Leadership team, members of the Executive Committee and other persons regarded as key for the Axway Group. The shares allocated to the various beneficiaries comprise 141,881 new shares issued by the Group in H1 2021 and 12,984 shares purchased on the market in 2020.
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