2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 21 MANAGEMENT REPORT Activities and highlights 3 3 capitalizing on the digital revolution to stand out through a connected fleet. With the aim of improving operational excellence at the optimum cost, the “Smart Shipping” program will connect Bourbon Marine & Logistics’ fleet of 132 modern supply vessels (called the “smart fleet”). This program represents an investment of €75 million over a period of three years. It will reduce the vessels’ operating costs over the long term. The three new subsidiaries will benefit from privileged market access thanks to the numerous partnerships already in place in the main countries where BOURBON currently operates, in compliance with the rules of the countries involved, particularly in terms of local content. Within BOURBON Marine & Logistics’ traditional fleet of 65 vessels, the 41 oldest vessels, which cannot be connected (known as the “non-smart fleet”), will be sold “as is where is” at the current market price. This planned sale of 41 fully-owned vessels generated an impairment charge of -€167.2 million in the 2017 financial statements (see note 3.3 to the consolidated financial statements). Note that a provision of €1.4 million was consequently booked for these vessels’ spare parts recorded in inventories (see note 3.6 to the consolidated financial statements). Under this strategy, the Group also decided to dispose of seven specialized vessels considered as non-strategic for the Group. These vessels will also be sold “as is where is” and according to the same process, generating an impairment charge of -€29.6 million (see note 3.3 to the consolidated financial statements). 1.2 SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD A vessel sale and lease-back agreement amounting to €50 million for 5 Les Abeilles vessels started in January 2018 for a period of 10 years, to replace the financing obtained in July 2017 for these vessels under less favorable conditions. Moreover, on February 12, 2018, BOURBON Corporation’s Board of Directors approved the new strategic action plan – #BOURBONINMOTION – initiated at the end of 2017. It should enable the Group to meet the need for competitiveness and to respond to customers’ new demands, in the context of a market that has challenged all market players in the Oil & Gas industry. BOURBON’s goal is therefore to accelerate its transformation in order to be ready for the expected recovery (see note 2.1 to the consolidated financial statements). As announced in its annual results press release dated March 15, 2018, BOURBON has initiated discussions with its main financial partners, both in France and abroad, in order to balance the servicing of its debt with the expected gradual market recovery and the corresponding upturn in the group’s performance. As a consequence, a general waiver should be finalized with BOURBON’s leasers and debt holders in order to allow the group to withhold all payments. Aiming at enabling all parties to negotiate quickly within a secured legal framework, this general waiver, that the group is confident to obtain, also demonstrates the goodwill of all parties to achieve a satisfactory debt reshaping. In this context, the group has suspended servicing both its leases and debt commitments, during the negotiation period. This allows BOURBON to focus on its operational priorities and market turnaround and should encourage all parties to make negotiations as short as possible. The group continues to implement its #BOURBON IN MOTION strategic plan, notably through its “Smart Shipping” program and re- activation of vessels, thanks to a preserved cash situation. As part of the abovementioned negotiation, BOURBON has requested the consent of the general meeting of the Bondholders to defer by one year the next interest payment date due under the Bonds for an approximate amount of €3.9 million due on April 24, 2018 on April 24, 2019, which shall bear interest from October 24, 2018 (included) to April 24, 2019 (excluded) at the rate corresponding to the applicable rate to the Bonds. The general meeting held on April 20 has authorized BOURBON to postpone this interest payment by one year, demonstrating once again the confidence of its financial partners in its capability to benefit from market recovery and implement the new and innovative strategy #BOURBON IN MOTION . The company is confident in its ability to find before year end a balanced solution with all its lenders - often long-standing partners - that suits all parties and allows the company to adapt its financing to its future development.