2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 123 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 4 These calculations include the following assumptions: 3 retirement age: legal age prevailing in each country; 3 average life expectancy: based on the mortality table applicable to each country; 3 discount rate; 3 inflation rate; 3 turnover: established for each company using the average turnover observed over the last five years; 3 assumptions on salary increases; 3 calculation of the rights based on collective agreements or specific agreements in force in each entity/country. Pursuant to IAS 19, the Group recognizes it actuarial differences directly in shareholders’ equity. Incentives Incentives are based on several types of criteria: 3 profitability criteria; 3 cost control criteria; 3 operational criteria such as the availability of vessels, the speed of intervention and the reliability of operations; 3 the results for the relevant year in terms of personal safety. Two calculations are currently used: 3 the first method incorporates a progressive incentive rate by salary category. The amount of the incentive is then calculated by applying the corresponding percentage to the annual payroll; 3 the second method consists in directly determining an overall bonus by combining several criteria. The amount thus calculated is then distributed uniformly according to employment longevity, or by a combination of longevity and a percentage of gross annual salary. Profit sharing Profit sharing agreements are in place in all French subsidiaries in accordance with current legislation. Employee savings plan Most French subsidiaries on French soil have implemented employee savings plans such as the Plan d’Épargne Entreprise (Enterprise Savings Plan) and the Plan d’Épargne Retraite Collectif (Collective Retirement Savings Plan). Employees may use these to deposit their incentives and profit sharing and, for certain subsidiaries, to bank days in their work time savings account, subject to the statutory limits. These employee savings plans are topped up by employer’s contributions. Stock option plans The cost of equity-settled share-based payment transactions with employees, granted after November 7, 2002, is measured at the fair value of the equity instruments granted at the grant date using the “Black & Scholes” method. This cost is recognized as personnel expenses as a contra entry to an equivalent increase in shareholders’ equity, using the straight-line method over the vesting period. This period ends on the date on which the employees obtain an unconditional right to the instruments (“the rights acquisition date”). The cumulative expense recorded for these transactions at the end of each year until the rights acquisition date takes into account the Group’s best estimate, on that date, of the number of equity instruments that will be acquired. When stock subscription options are exercised by their beneficiaries, the shares issued on that occasion will be remitted to them. The exercise price of the shares will be recognized as cash by the counterparty of the shareholders’ equity. In the case of stock purchase options, income from the sale at the time the options are exercised will be recognized as shareholders’ equity. Bonus shares The cost of equity-settled share-based payment transactions with employees, granted after November 7, 2002, is measured at the fair value of the equity instruments granted at the grant date. This cost is recognized as personnel expenses as a contra entry to an equivalent increase in shareholders’ equity, using the straight-line method over the vesting period. This period ends on the date on which the employees obtain an unconditional right to the instruments (“the rights acquisition date”). 1.5.14 Financial liabilities Financial liabilities include borrowings and financial debts, trade payables, derivative instruments and other current and non-current liabilities. All borrowings are initially recorded at fair value less directly chargeable transaction costs. After initial recognition, interest-bearing loans are measured at amortized cost, using the effective interest rate method. Profits and losses are recorded on the income statement when the debts are derecognized, and through the amortized cost mechanism. Derivative instruments are carried at their fair value at the closing date. The accounting methods for derivative instruments are described in note 1.5.18.