#BOURBONINMOTION

Strategic action plan

Conference transcript

English version

13th of February, 2018

Paris

2

1. Introduction

Jacques de Chateauvieux, Executive Chairman, BOURBON Corporation

Good morning, ladies and gentlemen. Thank you for responding to this invitation to the

presentation of the #BOURBONINMOTION strategic plan. The global and sectoral context is

characterized by the transformation of business models under the influence of the digital

revolution, which is changing the behavior of all players. I am pleased that you will be able to share

in BOURBON'S dynamic vision and its new configuration, which is illustrated by the speakers

present here today with Gaël for this presentation.

2. Strategic Plan: #BOURBONINMOTION

Gaël Bodénès, Chief Executive Officer, BOURBON Corporation

Thank you, Jacques. Ladies and gentlemen, good morning. There are indeed several new faces

here today, and they are present for a specific purpose. We are facing the worst crisis in our

industry, and our current model no longer corresponds to an increasingly demanding market

focused on optimizing costs. We need to reinvent ourselves, and we need to accelerate that

development. That is why business as usual is no longer possible, and that is why we are

presenting the #BOURBONINMOTION plan to you this morning.

2.1 Market Context

The market has contracted sharply (Slide 4), and 30-40% of the market has simply vanished. This

has now been going on for 3 years, and we are facing the worst crisis ever in our industry. We are

in a cyclical market (left chart), which experiences a downturn every 5 years on average (the red

bars). Thus, following the fall in the price of oil (divided by 3 or 4 in 2014), the market contracted

sharply in 2015. We are well beyond the Lehman Brothers crisis of 2009. Even the 1980s oil crisis

was not as violent as the situation we are facing today. This has obviously impacted on our

offshore operations, which have been shrinking for the past 3 years – even more so in 2018.

Hopefully, however, things will begin to pick up in 2019.

However, not everything is negative and there are, fortunately, some positive signals to be seen

(Slide 5).

- The first is the price of the barrel. It has been stable for a year now at over US$50. However, US$50 is the threshold at which oil companies continue to reinvest, as that is where shale oil and deep offshore begin to make sense.

- You can see that oil companies have indeed begun to regain some leeway (right-hand chart), and once again generate a positive cash flow. It is necessary to go back to 2008 in see that level of room for maneuver.

3

Another piece of good news relates to offshore oil (Slide 6). No, offshore oil is not dead and, yes,

we still need it.

- The first reason is that offshore oil (26 million barrels/day) accounts for more than 25% of the world's oil production. We will need offshore in the future (over 23%) to meet demand and the depletion of oil fields.

- Oil companies are well aware of this: final investment decisions (Fids) are starting to rise again, and that was the case as early as 2017 (right-hand graph).

As a result, our market is beginning to be positively impacted (Slide 7). We believe that we reached

a low point in 2017, and that the activity is gradually starting to recover. Various estimates for the

future are shown to the right of the graph. BOURBON’s estimate (in green) is slightly more

conservative. However, everyone agrees that global activity will gradually resume.

In reality, the issue stems from supply (Slide 8), and will continue to exert pressure on prices.

Today, more than 30% of the world's fleet (1,200 ships) is stacked, and prices will remain low until

these ships find work. There are two opposing scenarios on this subject.

- Optimists believe that two-thirds of this stacked fleet will never return to activity. Prices could therefore start to rise again at end 2018-early 2019.

- Other observers (including BOURBON) consider that the fleet will gradually return to activity as prices start to rise. In that case, we can envisage an increase in prices in the next 2-3 years (2020-2021).

Beyond operations, the real issue is therefore price (Slide 9). The diagram shows the operational

and financial cash out on average hull costs. The red curve represents average working day rates

(down over the last 4 years). You can see that we were able to adapt to the rates in 2014-2015,

but were not able to keep up in 2016-2017. We reduced our costs by 30-40% over 2.5 years.

However, if we want to reach breakeven and become a sustainable company today, we would

have to further reduce costs by 20-30%. This represents a 60-70% reduction in costs compared

to 2014. That is the challenge we face today.

As a result, everyone is suffering (Slide 10).

- Several companies have gone bankrupt, notably in Asia. - Others have been restructured under Chapter 11, in particular in the United States: certain

US companies have cleaned up their balance sheets, but they have done so to the detriment of their shareholders and financial partners.

- Another approach was taken in the North Sea: Norwegian companies have consolidated with each other in order to achieve a volume effect and further reduce costs. However, even with consolidation, they were not able to reduce costs by more than 30-40%. BOURBON was already aware of that as it already had critical size.

BOURBON is suffering like all the other players (Slide 11). Today:

- Vessels in operation are no longer profitable. - Stacked vessels, which initially helped us to adapt very quickly by lowering our operating

costs, now have a negative impact on our income statement. A stacked vessel costs approximately US$1,000 a day, and the crisis is still ongoing.

- Some vessels have lost value because they no longer meet market demands (they are too

4

old, use conventional propulsion systems, and do not have dynamic positioning systems).

2.2 What we have Done, What we have Learnt

In this difficult context, we first focused on what we do best: deliver operational excellence (Slide

13). This is a key issue, and a prerequisite for getting vessels back into operation.

- In terms of safety results, we achieved our best result in 2017 (a TRIR rate of 0.53 per million hours worked). The BOURBON teams should be congratulated on that performance.

- We were able to maintain a technical objective availability rate of more than 95% (above target). This was not easy in the current market context. Many competitors have cut maintenance costs but we believe that technical availability is crucial.

In addition, we outperformed the market overall (Slide 14). Our utilization rate is 5-10 percentage

points higher than the average. Today, however, it is imperative that our vessels return to

operation. We must be able to generate revenues, and we will do that thanks to:

- Our key agreements with our main customers (such as Technip, BP, Total, Exxon, Chevron).

- Our local partnerships, which make it possible to continue working even in countries that have closed their markets in order to protect their local industries.

As a result, our utilization rates are gradually increasing as of Q4 2017.

“Cash Is King”, and we therefore monitor cash very closely (Slide 15).

- We have focused in particular on cash collection, working with customers to reduce payment delays by over 30%.

- All investment, maintenance and vessel reactivation expenses are now managed directly by the Executive Committee.

We have drastically reduced our costs (Slide 16). We have cut overheads by 25%, operating costs

by 35% and investments by 60%:

- By reorganizing our processes. - By closing down certain companies, unfortunately. - By stopping ships (stacked vessels).

Unfortunately, we realized that this is not sufficient. We still have to reduce costs by a further 20-

30%. The first option is to wait for prices to come back up again as quickly as possible. The second

option is to accelerate, transform and try to find new solutions: that is precisely what the

#BOURBONINMOTION plan is all about.

2.3 Way Forward Strategy: #BOURBONINMOTION

Our market analysis has revealed 2 principal criteria for strategic segmentation (Slide 18).

- The first is market attractiveness. a) Can we increase barriers to entry? Can we specialize ourselves further in order to

5

generate increased revenues and margins? b) Can we achieve better access to the market, through stronger partnerships in the

countries in which we operate? c) Finally, can we improve our business model?

- The second key strategic focus is operational competitiveness. In this area, the driver is cost. Can we continue to lower our costs? a) Can we focus on specific regions? b) Can we promote a franchise mode? c) Can we enhance technology by connecting our fleet?

The prerequisite is being a first mover, as the first mover has a clear advantage.

Let us now look at our activities from the perspective of this dual segmentation (Slide 19). Regarding

market attractiveness:

- On the one hand, BOURBON carries out a number of specialized activities: (a) Mobility. (b) Subsea. (c) Activities carried out for the French Navy (coastal protection). (d) Mooring & Towing. (e) Tanker lifting operations.

Differentiation is key in this segment, and these activities are holding up well despite the

crisis.

- The problem stems in fact from the Marine & Logistics activity, which has been hard hit by the overcapacity in vessels, and is thus in the process of commoditization. In this specific activity, cost is the main driver, and those costs can be lowered by connecting our fleet – what we call the smart fleet. Unfortunately, it is not worth connecting certain vessels – those of the traditional fleet (or non-smart fleet).

With respect to the respective weight of these segments, we see that we have 3 main activities

(Slide 20):

- 2 specialty activities (Mobility and Subsea), where the main driver is differentiation. - A commodity activity (Marine & Logistics), where the main driver is cost. Interestingly, in

Marine & Logistics, the percentage of stacked vessels (or even the operating margin) is more or less the same as for traditional and modern vessels. That is because, today, the driver is cash. We are therefore in a good position in the very short-term, but less so in the medium-term. We should therefore give priority to the modern fleet, for which we can reduce our costs in the long-term and achieve the 20-30% cost reduction that we need.

Let us now consider these 3 activities in more detail, starting with Mobility (Slide 21).

- In this business, we have a strong barrier to entry through our historical Surfer concept comprising: (a) A technical basis for reliability. (b) A vessel to transport passengers in a high speed and comfortable manner. (c) A vessel landing system that allows passengers to be transferred safely to offshore

installations.

6

The second barrier to entry is the size of our fleet (over 250 vessels in operation). Today,

that is a strong barrier to competition.

- The second point is market access. The Crew Boat business is a local one, based on key partnerships such as the ones we have developed in Gabon, Congo or Nigeria.

- The driver of the Mobility business is differentiation. Can we change our business model? Today, we are very proud to offer our customers a technical availability rate of over 95%. However, no passenger is happy to find themselves in the 5% breakdown rate. When people take a flight, they do not think, “I hope I'm not in the 3% breakdown rate for AIR FRANCE". The approach here is exactly the same: how can we move from a 95% technical availability rate to a 100% passenger-centered service rate? That is what is at stake in this segment.

- Consequently, we will have to be innovative: a) We could perhaps envisage managing passenger terminals. b) We could perhaps envisage providing new passenger services in particular by

connecting our vessels. We will come back to this point later.

The same challenge is faced by the Subsea segment, which is also driven by differentiation (Slide

22). Here, we have a high barrier to entry, with:

- Standardized vessels in the right place. - In-house capacities, be it in terms of vessel management, engineering, ROV management

or project management.

Would it be possible to move from a day rate model to a more integrated service model here?

Such integrated services would generate more revenues and margins from the same assets. It is

therefore necessary to be innovative. In October 2017, we received our first award from TOTAL

(after 30 years of operations with them) for our ability to perform well-stimulation from a vessel

rather than an offshore rig. As a result, TOTAL reduced its costs by a factor of 2 to 3, and

BOURBON increased its sales. We need to do more of that in Subsea in the future.

Let us now turn to the Marine & Logistics activity (Slide 23). The barriers to entry here are

operational excellence, and modern, standardized fleets. Unfortunately, these barriers to entry are

now becoming a prerequisite, and the business is being commoditized. In fact, the challenge is to

reduce costs. That is why we have distinguished between the non-smart fleet and smart fleet

approach. Interestingly, connecting the fleet enables us to know our customers' operations almost

better than they do. We know the location of the vessel, its consumption, the type of operation in

progress, the equipment on board, and the deck area used. All of this information is available in

real time. Given that we collect all that information, we may as well try to provide integrated

services and thereby raise the entry barrier (supply of marine logistics under an integrated

contract). This would represent a novelty in this segment that is becoming more and more

commoditized.

I now propose to focus on the Marine & Logistics business (Slide 24). Yes, we are evolving in a

difficult environment. Yes, it is war. Yes, it is a crisis. However, there are still opportunities to be

found.

- The first is the digital revolution. The technologies used for autonomous cars or autonomous trucks can also be applied to our industry.

7

- The second opportunity is that, in this crisis market, our customers have never been so open to change. They are expecting us to offer new solutions, and that is exactly what we are trying to do.

For example, TOTAL has already connected its FPSOs and is using new technologies in the North

Sea, Angola and Qatar. Following the Macondo accident, BP has connected all of its well-plugging

systems. In the event of a problem, it is able to operate them remotely from Houston instead of

from the rig. This is what we want to do with our fleet: capitalize on these new technologies. That

is why we have identified two types of fleet.

The smart fleet of vessels that qualify for the Smart shipping program (Slide 25):

- This represents approximately 132 vessels. - It responds to client needs: redundancy, maneuverability, and energy savings through

diesel-electric power. - The vessels are 5-6 years old on average, and were built in series.

To connect this fleet, we have developed the Smart shipping Program (Slide 26). We have been

working on this program for 2 years, and it is therefore more than a theoretical concept. It consists

of connecting the vessel, country-based operations, and a central remote support system in

Marseille (South France). The program is based on a simple principle: today, we need 14-15

people to operate our vessels. We intend to reduce the number of people on board, to transfer

certain functions onshore, and operate our ships with a crew of 9-10 people.

- We will need to invest approximately €500,000 per ship to connect these vessels, representing a total CAPEX investment of €75 million.

- We can connect about 30-40 vessels per year. Deployment will therefore take about 3 years, and we will see the full impact of these savings by 2020-2021.

This program is structured around 4 main projects:

- Dynamic positioning automation. - Simplification of on-board processes. - Maintenance. - Operational support centers.

Let us begin with the dynamic positioning system project (Slide 27). This system was developed

20-30 years ago to allow vessels to operate in close proximity to rigs in very safe conditions. The

system consists of 2 consoles installed on the ship deck, operated by 4 DP officers in order to

achieve 24/7 operations. The challenge is that we do not spend all of our time close to the rig:

vessels operate the dynamic positioning systems 10-15% of their time, but we need to have 4 full-

time staff just in case. The idea was to try pooling those functions, which we did in conjunction

KONGSBERG and BUREAU VERITAS. We pooled a machine function (automation process), and

sent those functions to the bridge where they can now be operated jointly by a single operator. I

will not go into more detail but suggest you hear from Master Alexandre Motte, who commands

the Bourbon Explorer 508, the first vessel to be equipped with the system. He is currently based

in Trinidad, where he works for BP.

Alexandre Motte, Master, Bourbon Explorer 508

8

[Video presentation] Hello. My name is Alexandre Motte. I am 32 years old. I joined BOURBON in

2007, starting as a student and rapidly becoming a General-Purpose Lieutenant (embarking in

both the deck and engine department). I then spent 6 years as First Mate before being promoted

to Captain in 2017.

How has the DP system project impacted your organization on board?

Kongsberg Maritime and BOURBON jointly developed the modifications for this project.

- The 2 dynamic positioning control chairs at the rear of the bridge have been modified. Today, they can each control both the automation of the machinery and the dynamic positioning system.

- The other modification concerns the main navigation system. The radar, ECDIS, GPS and autopilot have been centralized for monitoring from the Dynamic Positioning Control Station.

These modifications are certified by BUREAU VERITAS, BOURBON’s partner in the DPO Flex

project. Traditionally, to operate a vessel in 24-hour dynamic positioning, we needed 4 bridge

officers (certified in dynamic positioning) and 2 mechanics (who worked in engine-room shifts).

Today, thanks to the KONGSBERG system upgrades and the new BUREAU VERITAS rating, we

are able to operate the vessel with 3 certified dynamic positioning bridge officers and 1 mechanic

(who is certified to take part in dynamic positioning shifts). The rest of the crew remains on standby

in the event of an alarm. This new work environment is very collaborative. Both operators use

aviation-type checklists. In other words, one operator responds to the other in order to check the

system parameters. This promotes operational safety and guides operators during emergency

situations.

What are the advantages of such a development?

This is a digital revolution that has been used to enhance the efficiency and safety of operations.

Feedback shows that 80% of incidents are the result of human error. It was therefore urgent to

take action, both for BOURBON and for its customers. The DPO Flex project improves the human-

machine interface and reduces the risk of incidents due to human error.

What has the customer feedback been on this modernization?

BP is very much in favor of these developments. They are also in the process of digitizing their

documentation and procedures. For example, we work with online loading manifests and digital

checklists.

Does this project represent progress for your business?

This project represents real progress of our business. It is an honor for me to have been chosen

and recognized as the person who could make it happen.

Gaël Bodénès, Chief Executive Officer, BOURBON Corporation

An important point to note is the approval of the system by our customer, BP. Our main focus is

on the technological dimension of the modification. In this project, the technological innovation

took 6-8 months of work (in-house and with KONGSBERG). It then took 6-8 months to convince

BP. Before approaching a platform in complete safety, it is necessary to go through all the

9

processes and qualification stages with the customer. That is a key point, and one that we have

succeeded in carrying out. Qualifying with BP is a real references we could have. It will help us to

deploy the system on the market.

Another Smart shipping project is the simplification of onboard processes (Slide 28). 10 specialists

were trained in-house in the Lean Six Sigma methodology, and then sent onboard to measure and

observe how we operate our processes onboard. We concentrated on 20 of these processes (the

most important ones), and learnt some very important lessons. We thought we were the best. We

thought we were doing things in the best possible manner. However, we realized, for example,

that during cement transfer operations (which our vessels carry out on a regular basis), we asked

our crews to go through 21 different steps before being able to unload. During those 21 steps,

they had to fill out 15 different documents, often repeating the same information a number of times.

The aim was therefore to simplify these processes. In the example above, we could move to 5-6

steps only, and have only 1 form to be filled out. With a connected vessel, much of the information

could be pre-filled automatically. Here again, we believe we could reduce a junior officer's position

per vessel by deploying the simplification project on the fleet.

The third key project is maintenance (Slide 29).

- The idea is, first of all, to further strengthen our maintenance processes, by moving towards conditional or predictive maintenance: once the equipment is connected, spare parts can be changed just before they break down and no longer according to the supplier's recommendations. That will save us money on spare parts.

- Once the fleet is connected, the other advantage is that we can transfer certain functions onshore. Today, maintenance is carried out by 5-6 people on board who perform machine control functions, provide support for customer operations, carry out routine maintenance, and are able to intervene in the event of a problem. Going forward, if we are able to transfer the screens of our machines ashore, we should be able to send 2 people ashore. We tell our teams that they do not need to worry, as these 2 people will be available onshore and will be classified to intervene when the vessel is docked. Indeed, we operate in cabotage and in the territorial waters of each country. Vessels hit the dock every 2-3 days, and we can thus change to a Formula 1 type organization (in "pit stop" mode).

- The principle is that if we have 3 people on shore per vessel, we arrive at a total of 30 people for 10 vessels. Of course, we do not need 30 people to do pit stop maintenance on our vessels when they dock. This is an equation we have to solve1.

The last project is the operational support center (Slide 30). Once the fleet is connected, we will

be able to track our fleet's deviation from nominal operations. Here, I particularly want to thank

Adeline Challon-Kemoun (a member of the BOURBON Board of Directors), who allowed us to

visit the operational support centers of AIR FRANCE and the SNCF. Rather than reinventing the

wheel, we are going to open an identical center by the end of this year. The idea is to have referent

officers available permanently (24 hours a day) to share their know-how in all the functions

necessary for our vessels: maintenance, crewing, safety, operations, and response to customers.

This operational center will therefore be available from the end of 2018.

1 Read also page 20-21 the answer to the question of Mr J-L Romain.

10

As you can see, the Smart shipping program is not merely a concept or an idea. It is real and

concrete today. The objective is to improve operational excellence on board our vessels, while

drastically reducing our costs.

Let us now turn to the non-smart fleet (Slide 31). We are not able to connect the non-smart fleet

because the vessels are too old (12 years old on average). Given today’s market conditions, we

believe it is very likely that these vessels will remain stacked for the next 2-3 years, which means

they will be 15 years old by the time they are back in operation. The reactivation costs for these

vessels would be considerable, as would the cost of connecting them. That does not make sense

for a 15-year-old vessel (in view of its remaining life span). We have therefore decided divest this

part of the fleet.

At the same time, there is a market for this fleet of vessels. 40% of vessels owned by competitors

with less than 10 vessels are over 23 years old on average. These competitors are interested in

replacing their ageing fleets, providing an opportunity for us to sell our vessels. As noted in my

introduction, the issue is that the value of these vessels has dropped drastically (from –50% to –

70% of their value). We have therefore decided to bear an impairment loss of approximately €170

million in 2017, to enable us to sell this fleet.

New Organization to Support Our Strategy

The above strategic analysis shows that these 3 activities have their own criteria and strategic

issues. We have therefore decided to split BOURBON into 3 stand-alone companies (Slide 33).

- Bourbon Marine & Logistics. - Bourbon Subsea Services. - Bourbon Mobility.

These affiliates will report directly to BOURBON Corporation. Each affiliate will have its own

customers, its own fleet, and its own teams. We have indicated the relevant figures for 2017. You

will understand that marine logistics (optimizing fuel consumption) is quite different from well

stimulation or passenger transport, and all the other services we can provide for passengers.

In addition, where critical size permits, we intend to replicate this organization in our geographies

(Slide 34). To that end, a pilot project is currently underway in Nigeria:

- Petromarine Engineering could represent Subsea in Nigeria. - Petromarine could represent Marine & Logistics. - Bourbon Interoil (BINL) could represent Mobility.

In this context, BOURBON would provide shared services through a franchise agreement, and

ensure that standards are met.

We have decided to accelerate and deploy the new organization as of 2018 (Slide 35). Each of

the 3 companies will have its own governance structure, with its own CEO reporting to its own

Board (composed of 4 BOURBON members and 3 non-executive members).

- Victor Chevallier will be CEO of Bourbon Marine & Logistics.

11

- Patrick Belenfant will be CEO of Bourbon Subsea Services. - François Leslé will be CEO of Bourbon Mobility.

For its part, BOURBON Corporation will:

- Focus on the brand, since each subsidiary will bear the name of BOURBON. - Remain in charge of major accounts. - Be responsible for operational standards. - Maintain responsibility for innovation, focusing on data management. - Maintain the strategy and partnership agreements. - Drive overall performance through the boards of directors. - Provide shared services when this makes sense.

Let us now learn more about the 3 companies through their respective CEOs. We will start with

Bourbon Marine & Logistics, with Victor Chevallier, who was Vice President of Transformation. He

joined us 1 year ago, and will take charge of Bourbon Marine & Logistics in autumn this year.

A. Bourbon Marine & Logistics

Victor Chevallier, CEO, Bourbon Marine & Logistics

Thank you very much. Bourbon Marine & Logistics covers the current scope of the supply vessels

activity. As Gaël told you, the current context is very difficult. However, the company will be able

to take advantage of 4 major strengths.

These 4 assets are solid supports in unfolding the plan that Gaël has referred to. Our ambition is

not simply to maintain our current position but to recreate value in this segment.

Our first asset is therefore solidity (Slide 37).

- The strength of our assets, with a young fleet, built in series, of 210 vessels (including the 130 smart fleet vessels that Gaël described).

- Robust resources and operations, with 4,500 employees (including 3,800 seafarers) and 8 ship owners around the world who manage day-to-day operations.

- The strength of our geographical footprint. In 2017, we had operations in 39 countries, generating sales of over €400 million. This footprint allows us to address any risks that emerge in this market.

- The strength of our customer base. Our customer portfolio features all the big names, with supermajors, international companies, contractors, and national oil companies.

The second strength of Bourbon Marine & Logistics is the ongoing confidence of our customers

in the service we provide (Slide 38). Today, our expertise lies in supplying, towing and anchoring

our clients' offshore installations. We deploy this expertise on both the continental shelf and deep

offshore; and both in exploration and production. We have developed that expertise in all the

countries where we operate. For this service, the offshore chartering model is the commonly used

model. We provide our customers with a vessel and its crew. They are responsible for using them

as they see fit, and for managing all other costs (fuel or ancillary costs). Our customers’ confidence

is reflected in:

12

Technical availability: Gaël showed you the results (over 95% in 2017). The first thing that matters to the customer is that the vessel is available when they need it.

Safety: in offshore, the safety of people and assets is a top priority. Safety is paramount, and is a prerequisite for all operations. Today, our results continue to improve, and I congratulate the teams for their efforts, and for all the work they have done in this difficult market.

The relationship: this relationship is ongoing over time (working with our customers) and in space (from the Soyo base in Angola to our customers' towers in Houston).

In summary, customer confidence means knowing that if a problem emerges we are able to

resolve it rapidly and robustly.

The third strength of BOURBON is the brand (Slide 39). The market is complicated – to say the

least – due to overcapacity, and also because of fragmentation (which means that there is

currently no market or sector response to that overcapacity). Most of our competitors (400 in total)

are suffering enormously in terms of cash flow and cash reserves. The few who are nevertheless

faring better (including BOURBON) generally meet the following 3 key criteria.

- A fleet of adapted vessels, which enable them to meet the contractual requirements of their customers. Let us note 2 examples on this point: a) Age: calls for tenders increasingly specify vessels that are less than 15 years old or

even less than 10 years old. Age is therefore a key factor that will result in a number of vessels from the 3,500 OSVs currently on the market exiting that market.

b) Daily efficiencies: the example on which BOURBON has invested is fuel oil. Today, our ships are fuel-efficient, enabling our customers to operate at a lower cost.

- Secondly, operations cost control: BOURBON has been working for years (continuity of operations, cost control), and has succeeded in lowering structural costs, operational costs and capital expenditure.

- At least, market access, which is an important factor in many countries where we operate. It makes it possible to be more resilient when the market contracts in volume. It makes it possible to survive and continue our relationship with our customers.

BOURBON's fourth strength is its business model (Slide 40). Our business model is unique. We

are international, and our fleet is located in most offshore areas, whether in the Americas, Africa,

the Middle East or Asia. This international presence allows us to diversify our risk, and to not be

dependent on a particular client or on the vagaries of a particular oil field. This is very important in

today's volatile price and market environment.

However, as well as being international, we are also very local. This is the result of BOURBON's

strategy over the years. This strategy consisted of gradually setting up operations, generating

growth in partnership with strong local partners (who know their market, and who are there for the

long-term). It is thanks to this strategy that, in many geographies undergoing declines in volumes

and price decreases, BOURBON has fared better than the competition, which does not have this

local know-how and understanding.

The current situation of the Marine & Logistics activity is thus summed up in these 4 assets:

- Solidity (assets, human resources, geographical footprint, customer confidence). - Trust in our ability to meet customer needs (supplying, towing, anchoring).

13

- A recognized brand (the strongest in the industry). - A unique model, that is both international and local.

Is that sufficient? It would be sufficient if we were in a buoyant, value-generating market, and if we

were not BOURBON. However, BOURBON has a pioneering spirit – the spirit of moving forward,

of proposing new ideas, of innovating, of seeking out what does not yet exist. Consequently, the

challenge today is to innovate, to get out of our comfort zone, to go beyond what exists, and to

recreate value in this sector.

Our challenge is to go beyond a system where everyone operates on the basis of vessel-centered

activities, with an obligation on means but not on results (Slide 41). To do that, it is necessary to

follow a consistent logic:

- Fleet, not ship. - Digital, not paper. - Cooperation, not a rigid contractual relationship between customer and supplier. - Value-added service, with an obligation on results and not on means.

Smart shipping is the first step in this process. It will allow us to:

- Connect all our vessels. - Work as a fleet. - To ensure that maintenance allows us to better plan our operations.

In other words, this will enable us to cope on the market. However, it is not sufficient. To advance

further, we have to go beyond the day rate relationship – the charter model in which we put

everything at the customer's disposal for use as they wish. For example, in fleet management,

Gaël talked about the use of the bridge or fuel consumption. Our analysis of over 1 million data

points has indicated a high level of heterogeneity in the BOURBON fleet, and in the fleets of our

competitors.

- In terms of use: vessels are not being used to their full capacity. - In terms of fuel oil consumption. - In terms of the fleet mix compared to customer needs.

As a result, BOURBON is prepared to take more risks today (in terms of chartering, fuel oil

consumption). Today, we control those risks: we have the data, the skills and the assets to manage

them more effectively. There is therefore an issue at stake here: playing more of a role in the

management of our customers' fleets.

The second challenge we face is the fact that the logistics chain does not stop at the vessel but

consists of a multitude of interfaces. Today, from our customers' point of view, the critical asset is

the vessel. It is therefore the vessel that should set the pace for the rest of the supply chain. What

have we seen? Since 2014 and with respect to the entire BOURBON fleet, a vessel that arrives

at port spends 60-80% of its time waiting for something to happen. Meanwhile, the customer pays

a charter fee, and BOURBON pays a crew. At the same time, there are orders and counter-orders:

the warehouse has not understood that it was supposed to supply pipelines, trucks are not

available, cranes are not positioned, and so on. By planning in a different manner, we can reduce

these costs and improve the efficiency of the supply chain. As a player positioned on this most

14

critical of assets, BOURBON is able to play a valuable role here. That is our intention going

forward.

Concerning exploration, as I stated, BOURBON is very local. It has a footprint in many of the

countries where we operate (logistics bases, shore-based structures). Today, we are able to offer

our customers fully integrated services that include both a shore-based structure and a vessel.

We will be relying on Subsea to make progress in this area.

To sum up, we have the fundamentals, we have a plan, and we have an ambition. We will move

forward, and we will succeed because we have the men and women who want to move forward.

They have the necessary enthusiasm, willingness and skills (both marine and in terms of services).

I will now give the floor to Patrick, who is indeed one step ahead of us in terms of turnkey services.

B. Bourbon Subsea Services

Patrick Belenfant, CEO, BOURBON SUBSEA SERVICES

Thank you, Victor. Ladies and gentlemen, good morning. Victor said that BOURBON Subsea

Services is one step ahead. We have 14 years of history, having started in 2004 with 1 vessel and

€2 million of turnover. Today (Slide 44):

- We have 22 vessels, €220 million in turnover and 25 ROVs. - We launched an industrial approach in 2008, when we ordered 10 Bourbon Evolution 800

(see photo, Slide 43). - We have 1,000 men and women around the world, 100 of whom work in our engineering

offices to find the best solutions for our customers.

We first became interested in the supermajors. We therefore approached the supermajors in 2004

to provide assistance for maintenance and oilfield production (which represents 25 years of

service life). We then diversified to independent operators (small and large), and we gained

credibility with contractors, to whom we supply vessels and ROVs. Based on all this, our

operational excellence is demonstrated in our track record.

- 500 subsea connections were made in up to 3,000 meters of water (10 times the Eiffel Tower), for 60-meter long loads weighing 20-100 tonnes. This is a technique and a niche market. As Gaël advised, it is part of our differentiation.

- Operational excellence also means installing 350 wellheads (valves that prevent pollution at the bottom of the sea). These loads weigh 50-100 tonnes and the associated surface movements are relatively significant. We therefore need state-of-the-art teams.

- Operational excellence also includes the vessels that we have ordered in series to ensure that we have the right vessel at the right price.

We therefore provide a service (Slide 45). To whom? To producers, first of all, for the 25 years

that their field will be in operation, 365 days per year, and 24 hours per day. We offer them an

availability exceeding 95%. To that end, we must have:

- Robots, i.e. arms and cameras. We are the eyes of our customers at the bottom of the sea, enabling them to maintain their production.

15

- Vessels: we have chosen to have 40 tonne, 100 tonne, 150 tonne, and 250 tonne vessels. I will later explain why we went into the latter segment and who our competitors are.

- Engineering teams that provide solutions from our assets (vessels and ROVs).

Our activities can therefore be broken down as follows:

- We provide support for Oil & Gas production. - We carry out inspections, that is to say:

a) Visual inspections (check-lists to see if everything is fine). b) Maintenance (programmed repairs). c) Repairs on the basis of daily rates or flat fees (we will come back to this later).

- By necessity, we have also won over the contractors.

We are not alone in this market (Slide 46). There are three types of players on this market:

- Global ship owners, primarily based in the North Sea. - Service companies, which charter ships. - Local actors, who fly a local flag, an area in which BOURBON can also excel. Last year,

we flagged our BE 800s under the Indonesian flag. This year we are reflagging a Malaysian fleet. Indeed market access is often a question of the flag. Thanks to our partners, we are sometimes able to change our flags or fly a double flag.

We therefore find players that do not have the same geographical footprint as we do.

- There is the North Sea, which we also find in Brazil and Australia. - There are players in national flags, including the Jones Act (US players). - There are local players you see in Asia, in the Middle East. - Service companies tend to have a much more global footprint.

The important thing is to have the right resources at the right price and in the right place (Slide

47). BOURBON Subsea has positioned its fleet throughout the world. We focused on our initial

business, our comfort zone: Africa, in conjunction with our partners. We also rely on our partners

in Marine & Logistics, in Africa. We have grown in Asia, in the Middle East, and recently in India.

In India (an emerging country in the gas sector), we signed a 3-year deepwater contract with

Reliance. A few years ago, Reliance would have taken a vessel with a 250-tonne crane; we gave

them one with a 25-tonne crane. The concept of the right resources at the right price also applies

to maintenance. One euro is also worth one euro for oil tankers.

We have therefore developed through our partnerships, and we are very close to our customers.

This means that we provide them with solutions for maintaining production over a 25-year period.

You are aware that the production capacity of reservoirs has been reduced. In particular, we have

developed flexible hoses to inject chemicals into the well to stimulate production. You could say

that we are cardiologists or well doctors, although that may be pretentious. Nevertheless, it earned

us an award from TOTAL in October 2017. After nearly 30 years of good and loyal service, our

teams can be very proud that our expertise has been recognized.

So what is BOURBON Subsea Services (Slide 48)? Today, it is made up of engineers who bring

solutions, ROVs and vessels. Tomorrow will be all that, but also a little more. We reached a

turnover of €220 million in 2017 in Subsea. That figure is more or less stable compared to 2016

(€217 million). However, it was reached in a different manner. Indeed, since we began this

16

transformation, 10% of our 2017 revenues were generated by turnkey projects. That means we

have an obligation on results and an risk taking in 3 areas:

- Pipelines. - Renewable energies, because we want to participate in the energy transition. - A spectacular pumping operation of a wreck in the Singapore Strait, with 1,000 ships

passing on either side each week.

We therefore know how to take on turnkey projects of reasonable size and with a measured risk.

So what will BOURBON Subsea Services be tomorrow? A mix of chartering and risk, with turnkey

projects, and with assets that include vessels, ROVs, and also human capital. Our vision, the

vision I want to share with my teams, is that we must:

- Participate in the energy transition, with floating wind turbines and tidal turbines. - Provide our customers with solutions that enable them to maintain production (stimulation

of wells). - Have turnkey projects in line with the size of Bourbon Subsea Services. - Maintain our assets in operation and continue with our operational excellence.

Finally, you can see a team aboard our 802 vessel (Slide 49). It is necessary to bring these teams

onto the vessels. Fortunately, François will be able to tell you about the mobility and transportation

of all offshore passengers and technicians. Thank you, François.

C. Bourbon Mobility

François Leslé, CEO, Bourbon Mobility

Thank you, Patrick. Good morning everyone. Indeed, the business of Bourbon Mobility is all about

travel, transportation: bringing crew members to their workplaces and accompanying them during

their activities. We make 2 main types of trips:

- Long trips (up to 100 or even 150 miles): in terms of the level of service, these trips are very similar to air transport.

- Our clients also rent our vessels on a daily basis for transport to their operating sites. Our job is then to transport their crewmembers on a daily basis to their daily activities (transporting technicians and engineers who have to move from one barge or vessel to another). You can see one of our vessels here (Slide 50), carrying passengers on board.

We have been present in this activity for more than 30 years (Slide 51).

- We have acquired an undisputed leadership position in the market of high-speed passenger transport at sea for tankers and contractors. That recognition is translated by the fact that we work with the full range of players.

- Today we carry more than 3 million passengers (a significant figure). - We generate turnover of €216 million (2017). - That turnover is generated in over 10 countries, and we have over 2,300 employees based

in these countries. We therefore have a very strong local presence. - This turnover is achieved with a unique fleet of nearly 270 high-speed crew boats, the so-

called Surfers. They have made it possible for us to reach a leadership position in our

17

business over time.

Our fleet is unique in addressing the very strong barriers that exist to enter this market (Slide 52):

- Customer demands with respect to availability. (a) A fleet of a certain size is necessary to be able to provide the 24/7 service expected

by our customers. The BOURBON fleet has that necessary size. (b) With the Surfers, we have also developed a very standardized concept that allows for

maintenance at very low cost, but also at a very fast pace (vessel downtime reduced to a minimum). You can see here how we replace an engine: in the event of a failure, we are able to carry out the repair so that the vessel can return to service and continue to serve our customers.

- Technologies. Passenger transport at sea must be rapid. We must be able to offer speeds of 40 knots, and few operators are able to make that claim. BOURBON was visionary and innovative in choosing its propulsion system several years ago. That allowed us to gain a head start on the competition.

- Safe transfers. We are involved in transporting people to the high seas, and we have been very innovative in inventing a unique vessel landing concept. That is the key to success. It is also one of the main reasons why our customers choose us: we enable them to transfer their passengers safely and quickly on the open seas, sometimes on rough seas. Thanks to our teams’ perfect control of this process, we are able to transfer up to 50 passengers in less than 10 minutes.

All of this makes our Surfer concept unique, enabling us to achieve a leading position in this

market.

Nevertheless, we are not alone (Slide 53). We have competitors both in the air and the sea.

- On long distances (long distance transport), our main competitor remains the helicopter. Helicopters are more expensive, and face technical issues that have led to some passengers preferring our vessels. Nevertheless, some people still prefer helicopters. In transforming this activity, we will have to make sure that we are able to respond to those passengers and bring them back to our vessels.

- At sea, a US competitor (Seacor) has recently acquired a technology that allows it to transfer passengers at fast speeds (40 knots). Seacor has opted for a different technology from ours: large catamarans that are far more expensive. It currently operates a fleet of 6 vessels, 3 of which are in West Africa.

- In the daily transport (inter field) market, we find a multitude of small local competitors. The size of their fleets ranges from 3 vessels to 25 (for our main competitor). They take an opportunistic approach: they seek out contracts, but without having all the infrastructure we have at our disposal via the Surfer concept (maintenance facilities, local presence). These operators tend to come and go. However, there are still many on the market.

We have therefore achieved our leadership position through innovation.

We pushed that innovation to the maximum in the Gulf of Guinea, in West Africa. As a result, our

business is now highly concentrated in this region (Slide 54). This is due to the technical

characteristics of our vessels. However, in the future, we may have to think about possible

adaptations that would allow us to move into other markets.

18

As Gaël stated, the crisis represents an opportunity for us to reinvent our models (Slide 55). Being

the leader is not enough; we have to ensure that we can remain leaders in the future. As you have

seen in the presentations, this is especially true for Mobility: we are leaders in this activity because

we defined the standards ourselves 30 years ago, by being innovative and visionary. If we want

to remain leaders, we will have to change our business model by being innovative and visionary,

bringing new services to our users and our 3 million passengers. We believe that this revolution

will require more attention, by developing:

- Enhanced onboard services. Today, when people take a plane or train, the standard for boarding procedures is to be able to use your mobile phone. You may even have used your phone to book your ticket, choose your seat, and even request a gluten-free meal before boarding. In the future, our users will expect those same services from us. We must therefore transform our activities in this direction.

- Services that go beyond our current activities (diversification). Exiting our current core business will involve being innovative along the entire passenger transport chain. Today, maritime passenger transfer terminals are not as good as they should be in terms of innovation. We clearly have an opportunity to find partners to structure this activity and take positions in these markets. This is another area that we are looking at today.

- Services that we will develop by investing in new tools (digitalization). I think we will respond to a real need if, in the future, we can tell our customers that we can pick them up at Charles de Gaulle airport to take them to the platform and then bring them back, and allow them to buy their tickets for all of that on the Internet. Today, a passenger travelling to an oil rig from France has to deal with up to 10 different people, and planning a trip is a cumbersome process. Our objective is therefore to simplify the travel experience for our passengers and users by providing them with new tools.

To conclude, a picture speaks a thousand words (Slide 56). This photo shows one of our

passengers boarding a vessel. He is still using pen and paper. I am convinced that for Mobility,

the #BOURBONINMOTION plan will be able to build on what has always made this business a

success, namely its ability to be visionary and innovative.

3. Conclusion

Gaël Bodénès, Chief Executive Officer, BOURBON Corporation

Thank you, François. We can see that the Mobility business has new ambitions indeed. François

is the perfect illustration of this new #BOURBONINMOTION that is accelerating: he joined the

Group yesterday and is already presenting the business 24 hours later. Thank you very much.

As you can see, our roadmap is crystal clear (Slide 57):

- Set up as soon as possible the two companies that will differentiate us on the market: Bourbon Subsea Services and Bourbon Mobility.

- Facilitate the transformation of the Marine & Logistics activity, so that it becomes a stand-alone company in the second half of 2018:

19

a) By investing in Smart shipping. b) By reactivating our smart fleet which is currently stacked. Because, yes, the activity is

picking up again. c) By divesting our non-smart fleet. d) By, as Victor explained, beginning to develop and provide integrated services to our

customers. - In parallel, we will adapt the Group's organization and governance structure.

In conclusion, waiting is not an option. The future will not be the same as the past. We have to

evolve. We have to reinvent ourselves. That is what the #BOURBONINMOTION plan is all about.

#BOURBONINMOTION means better serving our clients through 3 companies that can (Slide

59):

- Deploy their own strategies, with their own teams and resources. - Move their model gradually towards more integrated services. Not simply by adding

functions, but pragmatically, step-by-step, taking measured risks thanks to technology.

#BOURBONINMOTION means enhancing operational excellence while optimizing cost (Slide

60):

- By relying on our Smart shipping program. - By capitalizing on the digital revolution. - By using our technological partnerships (Kongsberg or Veritas, for example).

Finally, #BOURBONINMOTION means taking up the challenge of human evolution (Slide 61),

which is clearly the most complex and exciting aspect of this business. Everyone's roles and

responsibilities, skill-sets and organizations are changing. No, the machine is not going to replace

the human being. The graph on the left shows what happens when a human has to perform an

operation today: they capture the information themselves (with their eyes and ears); they analyze

that information; they make decisions; and then, perhaps, they take action. Little by little:

- The machine or artificial intelligence (in green) will take on certain functions: the analysis of information and, why not, in the long term, decision-making and taking action.

- In parallel, the roles and responsibilities of humans will also evolve towards more action, management, risk analysis and monitoring of global activities.

This is therefore a major change, and the path that is being taken by the men and women of

BOURBON. Change has always been in BOURBON's DNA and, once again, we are confident in

our ability to deliver on it.

Thank you very much. We will have microphones available in the room, and are at your disposal

to answer any questions you may have.

4. Q&A Session

Guillaume Delaby, Société Générale

20

Congratulations Gaël. The presentation was excellent and, above all, not complacent about the

current situation. I would like to try my luck with some financial questions.

- With regard to the capital gains from the sale of the vessels, would a range of €100 million to €150 million be a reasonable estimate?

- I would like to get an idea of what you will have to pay the partners over the next few years under the former Asset Smart plan (cash flow visibility).

- Finally, I am going to be a little unpleasant: in principle, you will not have much equity at the end of 2019. What are you planning at that point?

Thank you very much. I am taking my chances.

Gaël Bodénès

It is a good idea to try your luck. However, today is not concerned with presenting our results. I

propose to answer your questions in mid-March, when we publish our results in detail.

Jean-Luc Romain, CM-CIC Market Solutions

Good morning. I have 3 questions.

- For Marine Services, how long will it take to shift from a day rate model to a dollar or tonne model?

- Having 4 fewer sailors per ship on 130 ships represents a total of 520 sailors. Will they all go ashore for distance control activities, or will this involve a downsizing in headcount?

- Separating out the 3 divisions would eventually open the door to strategic alliances for one or other of them. Are there any plans along those lines?

Gaël Bodénès

First, the time it takes will depend on the activity.

- Subsea has already undertaken turnkey projects. I would therefore say it is already there. - On the Marine & Logistics side, since we connected our fleet we have increasingly been

able to provide information to our customers. So maybe they will drive this process, asking us to provide a more integrated service offer on the Marine & Logistics side. We are in fact currently working on such projects, and hope to have some concrete references as of 2018.

- Mobility is perhaps the activity that will take the most time. However, once again, the idea is to move fast and start running some tests this year.

Second, should we or should we not have a restructuring plan with respect to the development of

skill-sets? No, not at all. Some of the crews will be transferred ashore. However, the utilization

rate of this smart fleet is already increasing today. Therefore, we should find a balance between

the number of people who will be landed and the ships that will be reactivated. Therefore, no

restructuring plans. On the contrary, with integrated services, I think we are going to need to recruit

additional skill-sets, and we can expect the reverse to occur.

Third, with respect to strategic alliances, by creating these 3 companies, each with their own

strategies, the goal is that they can do what makes sense according to what their respective

boards of directors decide. So, yes, I will be the first to challenge our 3 CEOs to come up with

ideas, in so far as they make sense (either in terms of market access or new services). Therefore,

21

I reiterate that the aim of creating these stand-alone companies is for them to have their own

autonomy, in particular, in terms of strategy.

Jean-François Granjon, ODDO BHF

Like Guillaume, I am frustrated by your previous answer. So I will also take my chance on a

financial question.

Gaël Bodénès

And you will obtain the same answer.

Jean-François Granjon

I would like to come back to the trends you expect to see in 2018 by division (according to the new

organization you presented). We understood that your project was a long-term one. Nonetheless,

as shareholders, we owe it to ourselves to have a somewhat more short-term view. I therefore

have the following questions.

- We saw that 2017 was a difficult year, and you referred to a “low point”. Can we nevertheless envisage a start of recovery, or not (by division)?

- We have understood that you are taking a cautious approach, considering that the return to market of stacked vessels will not allow any price increases before 2020-2021. However, are you still expecting continued price pressure for 2018-2019?

- What is the situation with respect to your debt levels, which are quite substantial? I would like to know what measures are being taken to reduce that level of debt.

- You talk about the need to reduce costs by a further 20-30% in order to be profitable. Could you elaborate? We understood that there would probably be some downsizing in headcount. Could you provide some more detail as to how you envisage achieving that 20-30% reduction?

Thank you very much.

Gaël Bodénès

I propose to meet again on 15 March to respond to your requests for financial information.

As far as the current forecasts are concerned, you have seen that 2018 will again see a drop in

oil investments. 2018 will therefore remain a difficult year, even though the business is gradually

starting to recover.

As far as prices are concerned, we do not see them increasing until 2020-2021. It is possible that

there could be some differences at the local or regional level. I am thinking in particular of the

North Sea. Last year, 24 drilling rigs were in operation at the peak of activity (summer). Today, 36

are already due to start operations in the North Sea next summer, representing a 30% increase

in activity. Therefore, on average, the pressure on prices will remain strong, with some variations

at the regional level.

As Victor stated, we have an international footprint. We will therefore try to take full advantage of

these regional effects. However, it is precisely because we believe that prices will not change for

2-3 years that we cannot wait: we have to reduce our costs without waiting for prices to rise. To

22

achieve this, the basic principle is to go from 14-15 people onboard to 10. We will be able to

connect about 30 to 40 vessels per year as part of our smart fleet. That represents an investment

of €0.5 million per vessel, with the process running through 2018-2019-2020. Therefore, we will

see the first full impact of this cost reduction in 2021. However, because the change is made

gradually, that means that there will be fewer people on board as soon as a vessel is modified.

The effects will therefore be visible immediately.

Tiffany Berteaux, Financière de la Cité

Good morning. I will also take my chances, but come at it from another direction. Your plan seems

quite ambitious to us. May I ask how you are planning to fund it?

Gaël Bodénès

As far as being ambitious is concerned, it is in fact €75 million over 3 years, or €25 million per

year. There was a time when we took delivery of a €20 million vessel every fortnight. I therefore

do not think this is an ambitious investment plan. I think it is a reasonable one. However, as far as

the financial aspects are concerned, once again, even though I live in Marseille, I do in fact come

from Brittany. Therefore my answer remains the same.

If there are no further questions, I would like to thank you for your attention. Thank you for being

so numerous today, and see you all very soon.