2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 116 CONSOLIDATED FINANCIAL STATEMENTS 4 Notes to the consolidated financial statements In this perspective, the Group has maintained its going concern assumption in the preparation of its consolidated financial statements for the year ended December 31, 2017. Statement of compliance BOURBON Corporation’s consolidated financial statements for the year ended December 31, 2017 have been prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted in the European Union. The IFRS standard includes the IFRS, the International Accounting Standards (IAS) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC). The standards and interpretations used to prepare the consolidated financial statements for the year ending December 31, 2017 are those published in the Official Journal of the European Union, the application of which was mandatory as of December 31, 2017. Pursuant to Article 28 of European Regulation No. 809/2004 of April 29, 2004, the following information is included by reference: 3 the consolidated financial statements for the year ended December 31, 2016 and the Statutory Auditors’ report on those statements, provided in the Registration Document filed on April 25, 2017, with the Autorité des marchés financiers (on pages 91 to 163 and 164); 3 the consolidated financial statements for the year ended December 31, 2015 and the Statutory Auditors’ report on those statements, provided in the Registration Document filed on April 22, 2016, with the Autorité des marchés financiers (on pages 83 to 148 and 150). Consolidated financial statements – Basis of preparation The Group’s consolidated financial statements have been prepared on the historical cost basis, with the exception of derivative instruments and available-for-sale financial assets, which are measured at fair value. The consolidated financial statements are presented in millions of euros. The subsidiaries are consolidated from the effective date of acquisition, which is the date on which the Group obtains control, until the date on which this control ceases to be exercised. Non-controlling interests represent the share of profit or loss and net assets which are not held by the Group. They are presented in the income statement and in shareholders’ equity on the consolidated balance sheet separately from the Group’s share of income/loss and shareholders’ equity. All intercompany balances and transactions as well as the income, expenses and gains or losses included in the book value of assets which come from internal transactions, are fully eliminated. Pursuant to IAS 1, assets are presented as current assets on the consolidated balance sheet when they meet one of the following criteria: 3 the expected liquidation date is less than 12 months, or less than the Group’s normal business cycle; 3 they are essentially held for trading. All other assets are classified as non-current assets. Liabilities are presented as current liabilities on the consolidated balance sheet when they meet one of the following criteria: 3 the expected settlement date is less than 12 months, or less than the Group’s normal business cycle; 3 they are essentially held for trading; 3 the Group does not have an unconditional right to defer payment for a period of at least 12 months after closing. All other liabilities are classified as non-current liabilities. 1.3 ADOPTION OF THE NEW IFRS STANDARDS The accounting policies applied as of December 31, 2017 are consistent with those of the previous year. The application of standards and interpretations that have become mandatory since January 1, 2017 has not had a significant impact on the Group’s financial statements. In connection with the application of the rules on alternative performance indicators (ESMA Guideline – AMF Position No. 2015- 12), the Group has included a financial glossary in its disclosure since June 30, 2016. In this Registration Document, the Financial Glossary is included in note 6 hereto. The Group also decided not to opt for the early application of the standards and interpretations for which application was not mandatory as of January 1, 2017, namely: 3 IFRS 15 “Revenue from contracts with customers”. This new mandatory standard effective as from January 1, 2018 has replaced the previous revenue related standards. IFRS 15 defines revenue recognition according to a five-step process: i) identify the contract, ii) identify the performance oblig- ations, iii) determine the transaction price, iv) allocate the trans- action price, v) recognize revenue. According to this model, revenue is recognized when a company transfers control of goods or services to a client, in the amount it expects to receive. Depending on the criteria, revenue will either be recognized over time representing the Company’s performance, or at a given date when control of the goods or services is transferred to the client. However, the application of this mandatory standard as from January 1, 2018, will have no significant impact on the Group’s financial statements. The Group recognizes more than 85% of its revenue over time, based on a day-rate reflecting the transfer of control to clients. Moreover, the Subsea business still has a moderate number of turnkey projects, accounting for around 10% of its revenue. The revenue from those projects, which is spread over relatively short periods (less than six months), is already recognized over time through a stage of completion method, in particular via costs in accordance with the new IFRS 15.