REGISTRATION DOCUMENT - Bourbon

4NotesCONSOLIDATED FINANCIAL STATEMENTSto the consolidated financial statementsAs of December 31, 2011, based on the principle of prudence and based on the tax position of the companies concerned, no deferred taxasset was recognized on the tax losses, which were €223.5 million.3.18 INCOME TAXES(in € millions) 12.31.2011 12.31.2010Current income tax (6.7) (14.5)Deferred income tax (4.0) (0.5)Tax (expenses)/income (10.7) (15.0)As of December 31, 2011, the theoretical corporate income tax of €6.9 million is calculated by applying the prevailing tax rate in France toincome before tax, the share in income/loss of associates, gains on equity interests sold and net income from discontinued operations:(in € millions) 12.31.2011 12.31.2010Consolidated income before taxes, share in income/loss of associates, gains on equity interests soldand net income from discontinued operations: 13.6 21.1French domestic income tax prevailing as of 12.31.2011:33.33% (4.5) (7.0)3.30% (2.4) (1.8)Theoretical income tax (6.9) (8.8)Income tax expense (10.7) (15.0)DIFFERENCE (3.8) (6.2)The difference between the tax recognized and the theoretical tax is as follows:(in € millions) 12.31.2011 12.31.2010Tax savings (Tax EIGs, Pons Law) (0.1) (0.6)Tonnage tax 30.3 19.1Companies in defi cit excluded from tax consolidation (15.3) (1.1)Non-taxable foreign companies 19.1 13.6Other differences (37.8) (37.2)TOTAL (3.8) (6.2)The other differences are mainly due to the fact that deferred taxes on the treasury shares restatement were not recognized, nor were taxlosses capitalized in the tax consolidation scope.3.19 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICYThe main risks to which the Group is exposed are credit/counterpartyrisks, liquidity risks and market risks. The Board of Directors hasreviewed and approved the management policies of each of theserisks. The policies are summarized below.3.19.1 Credit/counterparty riskThe Group’s policy is to verify the fi nancial health of all customersseeking credit payment terms. Furthermore, the Group continuallymonitors client balances. The fi nancial soundness of its clients enablesBOURBON to avoid the use of COFACE-type credit insurance.Supermajor, major, national and independent oil companies accountfor nearly 80% of revenues. The Group has not therefore taken outthis type of credit insurance agreement.The volume of business conducted with the top fi ve clientsrepresented €459 million (45.5% of revenues) while the top tenclients accounted for nearly 63.7% (€642 million).A statement of anteriority of credits and other debtors is presentedin note 3.20.5.In 2011, BOURBON did not conduct any contracts with national oilcompanies in countries with a high political risk such as Venezuela,Iran, Iraq or Burma.Concerning the credit risk on the Group’s other fi nancial assets, i.e.cash and cash equivalents, available-for-sale fi nancial assets andcertain derivative instruments, the Group works only with top-rankingbanks, particularly with the major French banks, and pays particularattention to the choice of banking institutions.94BOURBON - 2011 Registration Document