2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 145 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 4 3.14 GROSS FINANCIAL LIABILITIES For the whole of this note, see also point 3.18.2 Liquidity risks On March 8, 2017, BOURBON announced the restructuring of the majority of its financial indebtedness, amounting to €910.8 million, of which the major characteristics are the following: 3 out of long and medium-term debt totaling €692 million, €365 million of repayments due between 2016 and 2018 have been rescheduled and reduced to an amount of €63 million not repayable until 2018. The remainder of the debt, i.e . €629 million, will henceforth be repaid progressively between 2019 and 2025; the weighted average of the spreads applicable to these facilities will initially represent approximately 2.1% from October 1, 2017, then approximately 3.1% from January 1, 2020 and lastly approximately 4% from January 1, 2022; 3 short term facilities amounting to €196.8 million will be refinanced and maintained at this level from 2017 to 2020 inclusive, before being repaid progressively afterwards, while €22 million in short- term credits will be maintained and repaid progressively as from 2018; the weighted average of the spreads applicable to these facilities will initially and from the completion date represent 1.9%, then 2.9% from January 1, 2020 and lastly 3.9% from January 1, 2022. In the context of these agreements, debts with bullet repayments due in 2017 in the amount of €143 million have been rescheduled in order to benefit from progressive repayment until 2022, under the terms of the debt rescheduling agreement. On July 28, 2017, the conditions precedent for the implementation of the debt rescheduling agreement were met and BOURBON confirmed the restructuring of its debt. In accordance with IAS 39.AG62, a qualitative and quantitative analysis of each restructured loan was conducted on that date in order to determine whether there had been a substantial modification of any of the loans. In the event of substantial modification, the former loan would have been considered as extinguished and thus de-recognized, along with the recognition of a new liability. The tests conducted by the Group showed the absence of any substantial modification in any of the loans involved. Consequently, given the absence of any substantial modification, the loans were maintained in the balance sheet and the relevant fees were set off against the loans and amortized over their residual terms. The closing of the debt rescheduling agreement should allow the reclassification of the debts as long and medium-term. At December 31, 2017, under the conditions mentioned in section 1.2, the Group examined all of its existing loans as at that date, in view of the situation of each of these loans: 3 loans with payment defaults; 3 loans with covenant breaches; 3 review of contractual clauses of each loan, in particular cross- default or similar clauses. Following this review, and in accordance with IAS 1.69 d, the non- current portion of the loans for which the Group did not have an unconditional right as of the financial statement closing date to defer payment for more than 12 months were classified in current liabilities. This lack of an unconditional right as of the closing date was noted: 3 for loans with payment defaults: at December 31, 2017 a payment default was recorded on a single balloon loan for an amount of NOK104 million (around €10.6 million), covered by a standstill agreement until January 31, 2018. Since its initial maturity was less than one year, it was not reclassified into the current portion of the debt; 3 for rescheduled borrowings whose covenants were breached: At December 31, 2017, several covenants concerning the debt renegotiated on July 28, 2017 had not been complied with: 3 failure to comply with the repayment schedule for the JACCAR advance to the Group for €6 million, 3 failure to obtain new financing at the expected level, 3 breach of coverage ratio (value to loan) for the 3 Club Deal borrowings (contractual ratio of 125%) and for the syndicated loan set up in the frame of the refinancing of treasury facilities (contractual ratio of 75%), 3 breach of financial covenants, of which the main ones are: (i) a debt-to-equity ratio taking into account certain off-balance sheet items (until the effective date of IFRS 16) that must be lower than 3.2, (ii) a liquidity ratio designed to ensure minimum cash balances within the Group, notably €50 million for the cash centralizing subsidiary, and (iii) a minimum adjusted EBITDAR commitment; In accordance with IAS 1.75, even though stand-stills were requested and granted for certain loans, the non-current portion of these loans was reclassified in current liabilities in the amount of €619.9 million as of December 31, 2017, since the grace period has a duration of less than 12 months following the closing date; 3 for other borrowings whose covenants were breached: For a certain number of bilateral borrowings, in particular foreign loans, the financial ratio covenants defined in the debt rescheduling agreement were breached. Likewise, certain ratios concerning the borrowing companies’ local accounts had not been met at December 31, 2017. In accordance with IAS 1.75, even though stand-still agreements were granted for some of the loans, the non-current portion of these loans was reclassified in current liabilities in the amount of €369.3 million as of December 31, 2017, since the grace period has a duration of less than 12 months following the closing date;