2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 80 MANAGEMENT REPORT 3 Risk factors Equity risks As of December 31, 2017, the Group had no cash investments. As indicated in note 3.12 to the consolidated financial statements, BOURBON Corporation held 127,140 treasury shares as of December 31, 2017. Treasury shares are presented as a deduction from consolidated shareholders’ equity. A 10% change either up or down in the BOURBON Corporation share price would result in a change in the market value of the treasury shares of €0.1 million. Supplyprice risk The Group’s exposure to price risk is minimal. The change in the price of raw materials does not constitute a risk of significant increase in operating costs. Clients generally take direct charge of the cost of fuel. 5.6 INSURANCE COVER FOR RISKS Nature and extent of cover For its marine activities, BOURBON has a comprehensive insurance program for ordinary risks and war risks covering damage that could be incurred by its fleet (“hull, machinery and equipment” insurance) as well as its liabilities as a ship management company (“Protection & Indemnity” or “P&I” insurance). BOURBON supplements this insurance program with civil liability insurance covering risks not directly related to its Marine activity, through a “top-up” policy that comes into play for surpluses and condition differences. BOURBON has also taken out civil liability insurance for its management. BOURBON has a “pecuniary loss” insurance policy that comes into play for condition differences and limits on its ordinary risks and war risks, civil liability and P&I policies. The levels of cover of these insurance policies have all been taken at levels of guarantees and franchises appropriate to the risks of the organization. BOURBON does not wish to disclose them for reasons of confidentiality. Since January 1, 2016, the Group has retained part of the risk of damage to the fleet and the “pecuniary loss” risks referred to above through a captive reinsurance company formed at the end of December 2015. The Company, known as BOURBON CAP RE, is wholly owned by BOURBON and is based in Luxembourg. Its management was entrusted to a captive manager approved by the Luxembourg Insurance Commission. This captive insurer underwrites high-frequency risks with a maximum annual commitment of USD11.25 million in regular risks and USD2 million in war risks. An annual stop-loss agreement protects the captive insurer from any change in risk frequency and/or intensity. Above these amounts, the risks are transferred to the Group’s insurers. Insurance management Subject to constraints in local legislation or due to the Group’s organizational structure, insurance management is centralized, which helps optimize coverage, both in terms of quality and value, and provides greater clarity of insurance costs. BOURBON uses leading international insurance companies to insure its “hull, machinery and equipment” risk. BOURBON is also a member of shipowners’ mutual insurers such as the Shipowners’ Club, Gard and Standard, which are all members of the International Group of P&I Clubs, covering its civil liability as a shipowner. The civil liability policy covering the non-marine activity is with Axa Corporate Solutions and Helvetia Assurances SA. Civil liability insurance for the senior management of BOURBON Corporation is with AIG Europe Ltd. The period of insurance coverage is generally 12 months. It should be noted that some BOURBON policies contain an escape clause allowing it to terminate the policy if Standard & Poor’s marks down the insurer’s financial rating below a certain level.