2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 125 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 4 Cash flowhedge A cash flow hedge is a hedge on the exposure to changes in cash flow attributable to a specific risk associated with a recognized asset or liability or with a highly probably planned transaction, which can affect the results. The profit or loss corresponding to the effective part of the hedging instrument is recognized directly as shareholders’ equity whereas the ineffective part is recognized as income/loss. The amounts recognized directly in shareholders’ equity shall be recognized in profit or loss in the same period or periods during which the hedged item affects profit or loss (for example, for assets that are hedged, at the rate of the amortization made). If the hedging instrument reaching maturity is sold, terminated or exercised without being replaced or renewed, or if its designation as a hedging instrument is revoked, the amounts previously recognized as shareholders’ equity are maintained as such until the execution of the planned transaction. If the transaction is no longer planned, this amount is recognized as income/loss. 1.6 TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN SUBSIDIARIES The exchange rates used are as follows: Currencies Average rate for 2017 Closing rate as of 12.31.2017 Closing rate as of 12.31.2016 AON Angolan Kwanza 187.4330 198.9927 174.8784 AUD Australian Dollar 1.4732 1.5346 1.4596 BRL Brazilian Real 3.6054 3.9669 3.4351 CHF Swiss Franc 1.1117 1.1702 1.0739 CNY Yuan 7.6290 7.8044 7.3202 INR Indian Rupee 73.5324 76.6055 71.5935 MXP Mexican Peso 21.3286 23.6612 21.7719 MYR Malaysian Ringgit 4.8527 4.8536 4.7287 NGN Nigerian Naira 381.5597 432.6480 331.4540 NOK Norwegian krone 9.3270 9.8403 9.0863 QAR Qatari Riyal 4.1821 4.3592 3.8101 RON New Romanian Leu 4.5688 4.6585 4.5390 RUB Ruble 65.9383 69.3920 64.3000 SGD Singapore Dollar 1.5588 1.6024 1.5234 TRY Turkish Lira 4.1206 4.5464 3.7072 UAH Ukrainian Hryvnia 30.2267 33.7266 28.4660 USD American Dollar 1.1297 1.1993 1.0541 XAF CFA Franc 655.9570 655.9570 655.9570