2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 181 CONSOLIDATED FINANCIAL STATEMENTS Statutory Auditors’ report on the consolidated financial statements (Year ended December 31, 2017) 4 RECOVERABLE AMOUNT OF PROPERTY, PLANT AND EQUIPMENT (Notes 1.4 – Asset impairment testing, 1.5.5 and 3.3 – Property, plant and equipment and 3.1 – Goodwill to the consolidated financial statements) Key audit matter Our audit approach Due to its marine services activity, the group’s property, plant and equipment mainly comprises ships. It represented a net amount of €1,923 million as of December 31, 2017 for total assets of €2,742. Property, plant and equipment is subject to impairment tests once there is an indication of a loss in value, i.e. when specific events or circumstances indicate a risk of impairment for these assets. As of December 31, 2017, ongoing difficult conditions in the Oil & Gas market and a Bourbon Corporation market capitalization (€542 million with a share price of €7.00 as of December 31, 2017) amounting to less than equity as of December 31, 2017 (€840 million before asset impairment) represented indications of impairment in accordance with IAS 36 – Impairment of assets. In this context, the recoverable amount of the ships was determined using the methods described in Notes 3.1 and 3.3 to the consolidated financial statements, mainly by making a distinction between ships that are to be sold under a newstrategic action plan #BOURBON IN MOTION (see Note 2.1 to the consolidated financial statements), and the remaining fleet: - for 41 old ships that cannot be digitally connected as well as 7 other specific decommissioned vessels that are to be sold as is within two years, the recoverable amount corresponds to the fair value less costs to sell; on this basis, an impairment loss of €196.8 million was recognized; - for the other ships, the recoverable amount corresponds to their value in use, calculated for the cash-generating units (CGU) to which they relate using discounted expected future cash flows; no impairment loss was recognized during the year. We considered the valuation of this property, plant and equipment to be a key audit matter due to: - its weight on the Group’s balance sheet and performance; - the indications of impairment existing as of December 31, 2017; - the material judgments made by management to determine the assumptions and estimates underlying the calculation of the recoverable amounts in a cyclical and uncertain market environment. Regarding the ships measured at fair value less costs to sell, we: - verified the compliance of the methodology adopted by the Company with prevailing accounting standards, as described in Note 3.3 to the consolidated financial statements; - reconciled the ship fair values adopted for the impairment calculations with the valuations obtained from independent shipping brokers; - verified the resulting impairment calculations. For the other ships, tested at CGU level, we carried out a critical review of the main parameters taken into account by group management when estimating the recoverable amounts of the various CGUs and in particular: - reconciled the data underlying the net carrying amount of the tested CGUs with the consolidated financial statements; - assessed the quality of the 2018 budget preparation process; - assessed the reasonableness of the forecasts shown in the 2019-2022 business plan compared to the economic and financial context in which the group operates and market outlooks; - assessed the reasonableness of the perpetual growth rate adopted given the countries in which the group operates; - analyzed the relevance of the discount rate used with regard to the rate calculated by a renowned independent expert and those used by the analysts who monitor the group; - tested the calculations performed by the Company, for the recoverable amounts and the assessments of sensitivity to changes in the main assumptions used, as described in Note 3.1 to the consolidated financial statements. Finally, we verified the appropriateness of the disclosures in Notes 3.1 and 3.3 to the consolidated financial statements with regard to IAS 36.