2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 64 MANAGEMENT REPORT 3 Control environment 4. CONTROL ENVIRONMENT Organizing and implementing the internal control system means raising the awareness of all BOURBON’s employees and getting them involved. The control environment thus includes the behaviors of the people responsible for the internal control of accounting and finance. 4.1 GENERAL ORGANIZATION OF INTERNAL CONTROL Under the authority issued by the Board of Directors, the Group is managed by the Chairman and Chief Executive Officer assisted by three committees: 3 the General Management Committee The BOURBON Executive Committee is the decision-making body accountable towards clients, employees and shareholders for implementing the strategy and achieving the objectives of the Group. It examines the best options for achieving the strategy, particularly in the areas of safety, innovation, human resources and cost control. It decides on priorities and allocates the resources and the means necessary for the growth of the Company; 3 the Performance Committee Under the authority of the Executive Committee, the Performance Committee is responsible for the management, analysis and coordination of the Group’s safety, financial and business performance in line with the budget. In addition to the members of the Executive Committee, this committee is composed of nine members representing the Group’s central functions; 3 the Management Committee Under the authority of the Executive Committee, the Management Committee oversees the implementation of the strategic objectives and deals with questions of general interest to the Group in its monthly meetings. In addition to the members of the Executive Committee and Performance Committee, this committee is composed of 18 members representing the Group’s central functions as well as the heads of the main subsidiaries. The central functions involve experts in the business lines specific to the Group or else they involve conventional support functions. They propose the Group strategies and policies in their respective areas and provide assistance to the operating units, ensuring among other things that best practices are disseminated. The Company adopts guidelines and other internal standards which must be followed and implemented within the Group. The operational units of BOURBON are grouped within the Subsea Services, Marine & Logistics and Mobility activities. Each entity implements the strategy in compliance with the budgets assigned to it by their respective management bodies and the guidelines and internal standards of the Group. They have broad authority to ensure the best possible customer satisfaction. They are directly involved and have the proper authority to perform internal control. In addition, the operating units report quarterly to the Executive Committee on their operational and financial performance. 4.1.1 Presentation of the overall organization of the Group’s internal control systems The different internal control activities serve to make certain that the procedures and standards defined by the Group are in line with the guidelines defined by the Management. Operating standards and procedures The Group’s policy in terms of conducting operations and controlling risks is clearly defined by a management system contingent on: 3 empowering Management to implement and monitor this policy; 3 and issuing organizational and management procedures aimed at compliance with regulations, controlling operating risks, managing health and safety and the environment, training and certification of employees, maintenance, purchases, analysis and the treatment of incidents and accidents. Internal control procedures related to the preparation and treatment of financial and accounting information The processes covered fall into two categories: those that enable information to be entered into the accounting data base and financial and accounting information to be generated, and the procedures for year-end closure and financial communication. The reliability of the financial and accounting information that is published is underpinned by a set of mechanisms, rules, procedures and controls. Gradually documenting and formalizing procedures will help to reinforce this reliability. This mainly involves the following: 3 the Group’s planning process. It results in the drafting of the annual budget, which makes it possible to break down the Group’s strategic guidelines into operational action plans. In this spirit, the Management Control Department supervises and coordinates the budget control system using a procedures manual that sets the management rules and methods for preparing the budget and the management report applicable at both the operational level and the Group level; 3 procedures for consolidating the financial statements in accordance with rules established and approved by Management. The Company draws up its consolidated financial statements according to IFRS. An integrated software program is used to consolidate the Group’s financial statements. The interim and annual consolidated financial statements are presented to the Audit Committee prior to their approval by the Board of Directors;