2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 71 MANAGEMENT REPORT Risk factors 3 requirements, tightening of regulations or their implementation would be likely to lead to new operating conditions for BOURBON’s activities and could lead to increased operating expenses, limitations on the scope of its business with certain clients or in certain geographical areas or, more generally speaking, may slow down its growth. BOURBON cannot guarantee that significant and/or rapid changes to current regulations would not, in the future, have a significantly prejudicial effect on its business, financial position, results or outlook. BOURBON’s activities may cause damage to people, property or the environment. This could also lead to it having to bear significant costs where such events are not covered either by the contract or by insurance. The risks of an environmental or human disaster largely relate to the presence of the vessel in an operational situation and the potential consequences of accidents associated with the cargo or the voyage. Although the accident rate has been cut by around half in the last 20 years, marine shipping is not risk-free. BOURBON applies the regulations detailed above and has adopted a set of procedures, charters and codes of conduct which cover practices on-board the vessels. As BOURBON is a service company, it is not directly responsible for any manufacturing processes except for the operation of its marine resources. BOURBON does, however, follow good marine practice and complies with its clients’ demands whenever its vessels draw near to offshore installations, port facilities or any other sensitive or protected areas. In particular, BOURBON rigorously adheres to the ISM Code as well as to industry standards including, in particular, those defined by the IMCA (International Marine Contractors Association), an association of which BOURBON is a member and which is an umbrella body for companies active in offshore and marine and subsea engineering. Oil and gas clients have prepared an increasingly sophisticated regulatory framework via the OCIMF (Oil Companies International Marine Forum), which includes more than 80 oil and gas companies worldwide, by implementing third-party ship inspections, including the existing “vetting” on board tankers or supertankers. In 2017, BOURBON continued developing its vessel operational management system so as to meet the requirements of the OCIMF (Oil Companies International Marine Forum) in more effective ways. BOURBON thus places the concerns of its clients at the heart of its strategy. BOURBON firmly believes that accidents can be avoided by prevention and that it is possible to avoid pollution. Training and exercises are designed to give personnel the best possible preparation for emergencies. Due respect by all BOURBON employees to best work practices and procedures derived from the above principles is regularly verified via internal audits. BOURBON’s performance regarding the safety of individuals is constantly monitored. According to a survey by the International Support Vessel Owner’s Association (ISOA), which incorporates the leading players in offshore oil and gas marine services, BOURBON’s safety performances are among the best in the market. In 2017, BOURBON’s recordable incidents rate (TRIR) was 0.52 per million hours worked. BOURBON’s strategy in this area is described in section 6.1.3 of the management report. Improving and centralizing fleet maintenance management has made it possible to roll out industrial maintenance, greatly reducing technical unavailability, and thus the likelihood of emergency situations arising which could lead to a collision or wreck. Although it is not possible to completely nullify the impact of transport activities on the environment, BOURBON makes every effort to improve its record through technical solutions and by acting to improve the attitudes of all those involved. The decision to opt for the diesel-electric propulsion system on its most recent vessels is thus aimed at significantly reducing the consumption of fossil fuels, and consequently, the level of polluting air emissions. BOURBON’s strategy concerning the environment is described in section 5.3 of the management report. The activities of offshore services are governed by contracts placing a general obligation of due care on BOURBON and shared responsibility with the client. This so-called “knock for knock” system is based on an agreement between a supplier of resources such as BOURBON and its client, under the terms of which each agrees to bear the cost of damages that may be caused to its property and/or personnel during the performance of the supply contract. It is accompanied by a waiver of reciprocal recourse between the parties, extended to their respective insurance companies. This mechanism is essential in the Offshore activity, in particular by enabling each of the operators to keep its risks in proportion to the value of the assets it uses and/or owns as well as to its own financial scope and consequently to limit the costs of the corresponding insurance. Despite the measures and mechanisms put in place, we cannot discount the possibility that, in the future, claims made against BOURBON could result in a significant level of liability for BOURBON. BOURBON cannot guarantee that all the claims made against it or all the losses that may be incurredwill be effectively or sufficiently covered by its insurance policies, this being to the detriment of BOURBON’s reputation and image and having a significantly prejudicial effect on its business, financial position, results and outlook. Marine risk Maritime piracy has been a major concern for all marine operators for several years now and BOURBON has very rapidly put in place a number of measures and collaborative arrangements in order to assess this risk in its vessels’ operating and transit regions, all under the control of the Group’s Safety Manager.