2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 23 MANAGEMENT REPORT Results 3 2.1.2. For the balance sheet Consolidated Capital Employed (in € millions) 12.31.2017 12.31.2016 Net non-current Assets 2,028.3 2,654.5 Working capital 102.0 198.0 TOTAL CAPITAL EMPLOYED 2,130.3 2,852.5 Shareholders’ equity 643.6 1,255.5 Non-current liabilities (provisions and deferred taxes) 121.5 128.7 Net Debt 1,365.2 1,468.2 TOTAL CAPITAL EMPLOYED 2,130.3 2,852.5 The decrease in capital invested of €722.2 million in 2017 is the consequence of: 3 a decrease in the value of fixed assets for €626.1 million, following the recognition of exceptional impairment losses, asset disposals and regular depreciation and amortization; 3 a reduction in the working capital requirement due to lower revenue and a reduction in customer payment delays for €96.1 million. As a result, shareholders’ equity now amounts to €643.6 million compared to €1,255.5 million at the end of 2016. In addition, there was a slight reduction in net debt of €103 million year-on-year. Furthermore, as of December 31, 2017, the Group was unable to comply with various covenants defined in its credit documentation. This situation of breach of covenants on the closing date of the fiscal year constrains the Company, in accordance with IFRS standards, to reflect the fact that the debt is due by reclassifying it as current liabilities, even though its lenders have not demanded payment. The amount thus reclassified totals €1,121 million as of December 31, 2017. BOURBON 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. To date, a number of responses are still pending, but the Group is confident that these postponement agreements can be obtained. As a result, the Group decided to undertake new discussions with its lenders, both in France and abroad, in order to match its debt service with the expected but gradual recovery in the market and therefore its performance. 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. The cash generated by business activity enables the Group to meet its current operating needs. In this context, it prepared the consolidated financial statements as of December 31, 2017 according to the going concern principle. 2.1.3. For cash flows Simplified Cash Flow Statement (in € millions) 2017 2016 Cash flow from operating activities Consolidated net income (loss) (608.9) (263.0) Cash flow from operating activities 759.6 476.8 Net cash flow from operating activities (A) 150.7 213.8 Cash flow from investing activities Acquisition of property, plant and equipment and intangible assets (47.1) (154.3) Sale of property, plant and equipment and intangible assets 24,2 5.2 Other cash flow from investing activities 20.6 (28.9) Net cash flow from investing activities (B) (2.3) (178.0) Cash flow from financing activities Net increase (decrease) in borrowings 94.1 (16.2) Perpetual bond issue - - Dividends paid to parent company shareholders (8.5) (25.5) Dividends paid to non-controlling interests (7.6) (18.5) Cost of net debt (56.2) (47.2) Other cash flow from financing activities (0.2) (4.4) Net cash flow used in financing activities (C) 21.6 (111.8) Impact from the change in exchange rates and other reclassifications 9.0 0.4 Change in net cash (A) + (B) + (C) + (D) 179.0 (75.6)