2017 REGISTRATION DOCUMENT

BOURBON 2017 Registration Document 74 MANAGEMENT REPORT 3 Risk factors In consideration of the restructuring, the Group agreed to a number of restrictions, in particular regarding its indebtedness, cash flow, asset disposals, investments and the dividend policy. On July 28, 2017, the conditions precedent for the implementation of the debt rescheduling agreement were met and BOURBON confirmed the effective restructuring of its debt. However, the expected recovery in the third quarter of 2017 did not occur, thus making obsolete the Group’s forecasts on which the March negotiation had been based, and the unfavorable market environment weighed heavily on the Group’s revenue and, consequently, on its net income. The cash flows generated by the activity are thus insufficient to service the debt in the short term. The cash generated by the activity enables the Group to cover its current operating requirements for the next 12 months. Furthermore, and for the same reasons, the Group was not able to comply with the various covenants defined in its credit documents. This situation of breach of covenants on the closing date of the fiscal year constrains the Company, in accordance with IFRS standards, to reflect the fact that the debt is due by reclassifying it as a short-term liability, even though its lenders have not demanded payment. In this context, the Group decided to undertake new discussions with its lenders, both in France and abroad, in order to balance the servicing of its debt with the expected gradual recovery in the market and the corresponding upturn in the Group’s performance. The Group has asked its lenders to formally suspend, for the expected duration of the discussions, the exercise of their rights under the credit agreements, in particular their repayment. On the date of writing this report, a number of responses are still pending, but the Group is confident that it will obtain these waivers and stand- stills. Even though this situation brings significant uncertainty concerning the continuity of operations, the Group is confident in its ability to find, with its lenders, who are often long-term partners, a balanced solution that suits all parties in order to best adapt the financing of the Company to its development. In accordance with IAS 1.69 d, as of December 31, 2017: the non- current portion of the borrowings for which as of the closing date the Group does not have an unconditional right to defer payment for a period longer than 12 months was reclassified in current liabilities (see note 3.14 to the consolidated financial statements for details of the reclassifications performed). BOURBON’s gross financial debt amounted to €1,609 million, including €183 million at more than one year. The repayment schedule for the medium and long-term debt is presented in note 3.14 to the consolidated financial statements. The residual term of the long- and medium-term debt is 5 years and 4 months, before taking IAS 1 into account. The following table shows the composition of long and medium-term debt as of December 31, 2017 (excl. accrued interests not yet due): (in € millions) Portion of medium/long-term debt under one year Medium/long-term debt Total CLUB DEAL loan – €320 million 32 - 32 CLUB DEAL loan – €450 million 169 - 169 CLUB DEAL loan – €340 million 326 - 326 EIG/SNC OUTSOURCED 61 67 128 Financing – Norway fleet 70 - 70 48 other bilateral loans 684 115 799 TOTAL 1,341 182 1,523 The Group had cash assets of €244 million as of December 31, 2017. Bank overdrafts and short-term credit lines have been drawn down in the amount of €76 million due to the unit-linked agreements signed with two financial institutions allowing the Group to combine available balances in US with euro balances.