2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 189 PARENT COMPANY FINANCIAL STATEMENTS Notes to the Company financial statements 5 NOTES TO THE COMPANY FINANCIAL STATEMENTS Notes to the balance sheet before appropriation of earnings for the fiscal year ended December 31, 2017, showing a total of €947,937 thousand and to the income statement for the fiscal year, presented in the form of a list and showing a profit of €71,925 thousand. The fiscal year covered a period of 12 months from January 1, 2017 to December 31, 2017. The notes and tables presented below form an integral part of the annual financial statements. The annual financial statements were approved by the Board of Directors on March 14, 2018 and again on April 20, 2018, to take into account events after the reporting date. 1/ Accounting policies and methods The annual financial statements for the fiscal year ended December 31, 2017 have been prepared and presented in accordance with the provisions of the French Commercial Code, the Accounting Decree of November 29, 1983, respecting the principle of prudence and independence of fiscal years and assuming a going concern basis. BOURBON provides support services to the oil industry; as a result, its business is significantly influenced by that of its clients. However, since October 2014, the price of oil per barrel has dropped significantly. The price of Brent crude fell from USD99 per barrel in 2014 to less than USD40 in late 2015, reaching a low of USD27 in the first quarter of 2016. The collapse in oil price triggered an immediate response from oil companies, which cut global spending on exploration and production for the second consecutive year, by 25% in 2015 and 24% in 2016 (source: IFP Energies nouvelles). This cyclical downturn in the market affected the companies that provide services to oil companies. In the face of this economic slowdown in oil activity, BOURBON was able to remain resilient thanks to its targeted positioning and strong operational measures (in particular, its cost control policy). To manage this cyclical low point, the Group had conducted discussions with its financial partners in order to restructure its financing for the coming years. These discussions resulted in the signature of an agreement on March 6, 2017 with a number of financial institutions and partners to restructure its principal debt in the amount of €910.8 million. At the same time as these negotiations, which led to the restructuring of its principal debt, BOURBON also reached an agreement to reorganize lease payments on the vessels covered by the sale and bareboat chartering contracts concluded with ICBC Financing Leasing in 2013 and 2014. The agreement entered into with the Group’s principal financial partners, described in detail in the notes to the 2016 financial statements, thus restructured the repayments of its club deal loans, its bilateral loans, its finance leases, and its short-term loans, while also providing for a progressive increase in the loan margins over the extended payment schedule, as well as the granting of additional sureties. In consideration of the restructuring, the Group had agreed to a number of restrictions, in particular regarding its indebtedness, cash flow, asset disposals, investments and the dividend policy. On July 28, 2017, the conditions precedent for the implementation of the debt rescheduling agreement were met and BOURBON confirmed the effective restructuring of its debt. However, the expected recovery in the third quarter of 2017 did not occur, thus making obsolete the Group’s forecasts on which the March negotiation had been based, and the unfavorable market environment weighed heavily on the Group’s revenue and, consequently, on its net income. The cash flows generated by operations, although their circulation was not fully unrestricted due to the Group’s legal structure and limitations relating to some of its geographic locations, remain positive. However, they are insufficient to service its debt in the near future. The cash generated by operations nevertheless enables the Group to cover its current operating requirements for the next 12 months. Furthermore, and for the same reasons, the Group was not able to comply with various covenants defined in its credit documentation, which could have allowed the relevant banks to demand immediate repayment of their loans. This situation on the closing date requires the Company, in accordance with IFRS standards, to reflect the payability of its debt by reclassifying it as a short-term liability, even though its lenders have not requested repayment. In this context, the Group decided to undertake new discussions with its lenders, both in France and abroad, in order to balance the servicing of its debt with the expected gradual recovery in the market and the corresponding upturn in the Group’s performance. The Group has asked its lenders to formally suspend, for the expected duration of the discussions, the exercise of their rights under the credit agreements, in particular their repayment. On the date of writing this report, a number of responses are still pending, but the Group is confident that it will obtain these waivers and stand- stills. Even though this situation brings significant uncertainty concerning the continuity of operations, the Group is confident in its ability to find, with its lenders, who are often long-term partners, a balanced solution that suits all parties in order to best adapt the financing of the Company to its development. In this perspective, the Group has maintained its going concern assumption in the preparation of its statutory company financial statements for the year ended December 31, 2017. The presentation of the annual financial statements takes into account the provisions of ANC Regulation 2016-07 relating to the French General Accounting Plan. The method used when stating the value of items in the financial statements is the historical cost method.