Mid-term outlook

In 2014 Fugro formulated mid-term targets.

mid- term targets
EBIT margin for the group 8-12%
EBIT margin Geotechnical onshore  8-11%
EBIT margin Geotechnical offshore  11-15%
EBIT margin Survey division  12-15%
EBIT margin Subsea division  6-9%
EBIT margin Seabed Geosolutions  5-10%
Return on Capital Employed[1] for the group 8-12%

The timeframe in which Fugro will realise these targets is dependent on a recovery of the oil and gas market. In the current challenging market, Fugro will continue to de-lever the balance sheet. Reduced investment levels contribute to this objective.

For 2016 and going forward, until the oil and gas services market improves, the company will limit its capital expenditure to around EUR 100 million per year. This level can be maintained until market conditions improve and a good level of opportunities for organic growth returns. When the market improves, it is anticipated that capital expenditures will gradually increase, however not to the level of the past few years.

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