2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 149 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 4 3.17 INCOME TAX (in € millions) 12.31.2017 12.31.2016 Current income tax (13.4) (29.1) Deferred taxes 0.6 5.1 Tax (expense)/income (12.8) (23.9) As of December 31, 2017, the theoretical corporate income tax of €199.4 million was calculated by applying the prevailing tax rate in France to income before tax, the share in income/loss of affiliates under the equity method, net gains on equity interests sold and net income from discontinued operations: (in € millions) 12.31.2017 12.31.2016 Consolidated net income before tax, net income of companies under the equity method, capital gains on equity interests sold, and net income from discontinued operations: (599.8) (237.7) French domestic income tax prevailing as of 12.31.2015: 33.33% 199.9 79.2 3.30% (0.5) (1.9) Theoretical income tax 199.4 77.4 Income tax expense (12.8) (23.9) DIFFERENCE (212.2) (101.3) The difference between the tax recognized and the theoretical tax is as follows: (in € millions) 12.31.2017 12.31.2016 Companies not liable for corporate income tax (companies subject to tonnage tax, foreign companies not liable for taxation) (112.8) (51.0) Loss-making companies (tax consolidated and non-tax consolidated companies and foreign companies) (65.8) (53.4) Difference in tax rate (1.7) 3.5 Other differences (31.9) (0.3) TOTAL (212.2) (101.3) 3.18 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICY The main risks to which the Group is exposed are credit/counterparty risks, liquidity risks and market risks. The Board of Directors has reviewed and approved the management policies of each of these risks. The policies are summarized below. 3.18.1 Credit/counterparty risk The Group’s policy is to verify the financial health of all customers seeking credit payment terms. Furthermore, the Group continually monitors client balances. The financial soundness of its clients enables BOURBON to avoid the use of COFACE-type credit insurance. Supermajor, major, national and independent oil companies account for nearly 65% of revenue. Nevertheless, the current crisis has impacted our customers, which has led to an increased risk of recoverability for certain receivables from smaller customers. The volume of business conducted with the top five clients represented €364 million (45.9% of revenue) while the top ten clients accounted for nearly 65.8% (€522 million). A statement of anteriority of credits and other debtors is presented in note 3.19.5. to the consolidated financial statements. In 2017, the portion of BOURBON’s revenue generated in countries at risk politically, such as Equatorial Guinea, Libya, and Myanmar, was very marginal (barely 1% of total revenue). Concerning the credit risk on the Group’s other financial assets, i.e . cash and cash equivalents, available-for-sale financial assets and certain derivative instruments, the Group works only with top-ranking banks, particularly with the major French banks, and pays particular attention to the choice of banking institutions. In addition, other counterparty risks are assessed on a case-by-case basis as part of long-term relationships maintained and encouraged by the Group, especially in view of the effects from the current crisis on certain local stakeholders to whom vendor loans were awarded during sales of vessels in past years.