2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 117 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 4 3 IFRS 9 “Financial instruments”. For the Group, the main potentially significant impacts of IFRS 9, whose application became mandatory on January 1, 2018, concerned the treatment of its debt restructuring, which was agreed on July 28, 2017. This enters into the scope of the new provisions for the recognition of restructured debts specified by IFRS 9 and applicable retroactively. However, since the adjusted debt is immediately due on the closing date, it must be recognized at par and is therefore not affected by the application of the aforementioned provisions. In conclusion, the application of IFRS 9 will not have any significant impact on the Group’s opening balance-sheet position on January 1, 2018. 3 IFRS 16 “Leases”. This standard which introduces the concept of control of the leased asset, fundamentally changes the way that lessees account for leases. At this point, the Group believes that application of IFRS 16, which becomes mandatory on January 1, 2019, will have a significant impact on its consolidated financial statements, on the balance sheet, with respect to the value of property, plant, and equipment, and on the income statement with respect to an improvement in EBITDA through a decrease in rent and, on the other hand, an increase in depreciation. As of December 31, 2017, leases relating to 57 vessels are liable to be affected by the application of this standard. 1.4 USE OF ESTIMATES AND ASSUMPTIONS Preparation of the financial statements in accordance with the conceptual framework of the IFRS involves the use of estimates, assumptions and assessments that affect the amounts presented in those financial statements. These estimates are based on past experience and on other factors considered to be reasonable given the circumstances. As the assumptions and assessments used and the circumstances existing on the date the statements are established may prove to be different in reality, the future results achieved may differ from the estimates used. The principal assumptions concerning future events, and other sources of uncertainty related to the use of estimates on the closing date, changes in which during a year could generate a risk of a change in the net book value of assets and liabilities, are presented below. Retirement benefit obligations The cost of defined benefit plans and other post-employment medical coverage benefits is determined on the basis of actuarial valuations. Those valuations are based on assumptions about discount rates, salary increase rates, mortality rates, and the probability of employment in the Group at the time of retirement. The method for calculating discount rates has remained unchanged from previous years. The rates are calculated based on global indices such as Reuters. Because of the long-term nature of such plans, the uncertainty of those estimates is significant. The net liabilities built up for these benefits granted to employees as of December 31, 2017 were €14.4 million (€14.3 million in 2016). Further details are given in note 3.13. Financial instruments measured at fair value For most of the instruments traded over the counter, the valuation is made using models that use observable market data. For example, the fair value of interest rate swaps is generally determined using rate curves based on the market interest rates observed on the closing date. The fair value of buying forward exchange contracts is calculated by reference to the current forward exchange rates for contracts with similar maturities. The discounting future cash flows method is used to value other financial instruments. Impairment test on goodwill At least once a year, the Group assesses whether it is necessary to depreciate goodwill by using impairment tests (see note 1.5.2). Those tests require an estimate of the recoverable value of the Cash Generating Units (CGUs) to which the goodwill is allocated. Recoverable value is defined as the higher of the useful value and the fair value (net of disposal costs). A CGU (cash-generating unit) is the smallest identifiable group of assets whose continued use generates cash inflows that are largely independent of cash inflows from other assets or groups of assets. The determination of CGUs must be consistent with the way in which management manages and controls the Group’s activities and with the level at which strategic decisions or asset acquisition/disposal decisions are made. Accordingly, the Group identified 4 distinct CGUs: 3 Marine Services – DEEP for all of our deep offshore operations; 3 Marine Services – SHALLOW for our Continental Offshore operations; 3 Marine Services – CREW for our personnel transport operations; 3 Subsea Services. Our main assets, the vessels, are both geographically mobile and interchangeable within a single CGU. For example, a vessel within a CGU does not generate cash inflows that are largely independent of the cash inflows of other vessels. As such, as defined by IAS 36.67, the recoverable value can only be estimated at the CGU level. Due to the large number of leased ships, the fair value of CGUs (net of disposal costs) can no longer be determined solely on the basis of the fair value of the vessels attached to these CGUs. As a result, the recoverable value of the CGUs corresponds to their useful value. Useful value, defined as discounted total future cash flows, is determined based on the economic, business, and income assumptions deemed by the Group’s management to be the most probable.