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Fugro generates around 75% of its revenues from clients in the oil and gas business. Hence continued investment by the upstream oil and gas industry in the exploration, development and production life cycle of oil and gas fields is critical to Fugro’s continued success. Various industry investment outlook reports predict that oil companies’ global investments, onshore and offshore, continue to grow albeit no longer at double digit figures seen in much of the last decade. Industry forecasts indicate increasing focus on the Middle East and renewed interest in the USA both onshore and offshore. Deepwater spending, to which Fugro has a broad exposure, is expected to continue its significant growth over the coming years (source: Douglas Westwood World Deepwater Market Forecast 2013-2017). At the same time several of the major oil companies have recently announced their intention to become more disciplined about their investments and returns by stabilising exploration spending, by delaying selected large projects and by asset sales, rather than across the board spending stabilisation or reduction. The deceleration in spending growth by the majors is

expected to be partly compensated by increased spending growth by NOCs to fulfil domestic strategic agendas and smaller oil companies that are acquiring assets from the majors.

The combination of demand for oil and gas and natural depletion of reservoirs as they are produced drives the upstream oil and gas industry. Depletion means that every year less oil and gas is recovered from reservoirs under production.

Demand remains strong and recently the International Energy Agency (IEA) raised its global demand forecast as a result of the strongest growth in the US in a decade. Depletion is a more important long term investment driver. The average depletion rate for oil reservoirs is now estimated to be 6 to 7% per year, and it continues to increase. Current depletion rates imply that around 50% of oil production needs to be replaced every 10 years to cover depletion. As sources of easy oil and gas run out, cover for demand growth and depletion will for a significant part come from offshore fields that must be found, developed and produced. Increasingly this will be from deep water fields. This plays to Fugro’s strengths in all its offshore services offered by the Survey,

Geotechnical, Subsea Services divisions and Seabed Geosolutions.

A further point of reference for Fugro is the level of awards won by the large offshore marine construction contractors. Though the fourth quarter of 2013 showed some tapering off, the overall level of awards in 2013 has been at a record high. The company interprets the recent tapering to be a natural correction balancing the record high level of awards earlier in 2013 rather than a sign of a weakening market. Irrespective, the very high level of awards in 2013 is expected to translate to growth in subsea work in the coming two to three years, which should benefit Fugro.

For the upstream oil and gas segment the company remains confident about the growth scenario

underpinning the strategy update, be it that some of the developments described above becoming more

pronounced could lead to lowering of the growth rate over the short to medium term.

For the short term, the most important market indicator is the oil price. Clients are expected to reduce

expenditure if the oil price drops from its current levels of around USD 110 per barrel (Brent) to below a level of USD 95 - 100 per barrel. Clients will generally first cut exploration spending. Following the divestment of the exploration related activities, Fugro has moved away from exploration to the later part of the field life cycle including the pre-development, development and production phases of the oil and gas field life cycle. Investments by oil and gas companies in this part of the field life cycle are less volatile than exploration.

While the majority of Fugro’s oil and gas revenues comes from the upstream oil and gas industry, the downstream business segment is of increasing interest. In downstream Fugro is involved in construction projects for liquefied natural gas (LNG) plants, refineries and pipelines. Fugro has a small but increasing exposure to this market, where many new LNG facilities, refineries and pipelines are being developed. This will continue to benefit the onshore and nearshore geotechnical and survey activities of Fugro. Driving part of the growth in this market is that projects often tend to be large and multi-disciplinary in nature and can also incorporate offshore work. Fugro is uniquely capable in delivering on large, multi-discipline projects. In addition, many of these projects are in emerging economies, where few other geotechnical and survey companies offer local support.

FUGRO N.V. ANNUAL REPORT 2013 Report of the Board of Management 33 Development sustainable energy,

infrastructure and building, mining and public sector markets

The remaining revenue of Fugro of about 25% is generated in the sustainable energy, infrastructure and building, mining, water management and other public sector markets. In renewable energy Fugro focuses on offshore wind farms, where it is the largest provider of services to optimally locate and provide advice for the foundation design of wind turbines. In addition Fugro provides power cable routing, specialist construction and installation support, and maintenance and repair services. The market for offshore wind farms is best developed in Europe following European Union targets for use of renewable energy. The renewable energy market in Europe is currently slowing down as subsidies are reduced under austerity programs, but in the next few years is expected to recover as economics of the

technologies that are applied improve and to meet sustainable energy targets. In addition, offshore wind farm activity is building up elsewhere. For example in the USA, Fugro is strongly involved in the development of the first offshore wind farm.

Infrastructure and building and water management markets are strongly dependent on the performance of local and regional economies and levels of government spending. As a result we expect to see continued slow markets in Europe for some time, some improvement in the USA, continued buoyant markets in places like Hong Kong, and a positive development in selected emerging markets such as Central Asia, the Middle East and parts of Africa. Fugro is already well placed in many of these emerging markets or is building up positions, for example through the recent opening of an office in Mozambique and entry into a joint venture in Iraq. Fugro’s local presence and capability to take on larger, more complex projects in which a range of survey and geotechnical services are bundled should serve it well in these upcoming markets.

The mining sector is a relatively small but growing market for Fugro, even in the current down cycle in this industry. Fugro supplies a range of survey and

geotechnical services for the infrastructure associated with the mines, and offers exploration drilling services using geotechnical equipment.

Outlook

The outlook for the markets in which Fugro operates in aggregate continues to support the Growth through Leadership strategy as formulated during 2013 and the related 2016 targets.

The backlog supports achieving further growth in 2014. Corrected for exchange rate effects, the backlog is 26% higher than a year ago. Though most of the backlog

growth is in Seabed Geosolutions, the backlog growth for the Survey, Geotechnical and Subsea divisions is a healthy 9%. Recent awards are further strengthening the backlog. Next to supporting growth, the backlog should support stable performance with potential for

improvement. For multi-client we expect to see the normal profile for existing libraries develop, whereby the sales will taper off over time, in particular in the next four to five years.

As described above, the growth in oil and gas investments is decelerating, At this point in time it is too early to determine if this will significantly impact Fugro. Should there be a significant impact on growth, Fugro expects to reduce its investments in its growth, in particular in the expansion of the vessel fleet. This would negatively impact the targeted annual revenue growth rate of at least 10%.

Backlog is strong and supports achieving growth in 2014. There is no indication at this point of deterioration of the E&P market relevant to Fugro. For its full range of activities Fugro sees good opportunities in emerging markets. Management is comfortable that the market outlook supports the ‘Growth through Leadership’ strategy and related 2016 targets.

Board of Management declaration pursuant to section 5:25c of the Financial Markets Supervision Act in the Netherlands

To the best of the Board of Management’s knowledge the financial statements (pages 108 to 201) give a true and fair view of the assets, liabilities, financial position and profit or loss of Fugro N.V. and the companies included jointly in the consolidation, and the annual report gives a true and fair view of the situation on the balance sheet date and the business development during the financial year of Fugro N.V. and the Group companies for which the financial information is recognised in its financial statements. The principal risks and uncertainties with which Fugro N.V. is confronted, are described in this Annual Report.

Leidschendam, 6 March 2014

P. van Riel, Chairman Board of Management / Chief Executive Officer

A. Jonkman, Chief Financial Officer W.S. Rainey, Director Geotechnical division S.J. Thomson, Director Subsea Services/ Geoscience division

Report of the Board of Management

34 FUGRO N.V. ANNUAL REPORT 2013

AMERICAS

Brazil Under a contract awarded by Repsol Sinopec Brazil, Fugro was contracted to deliver geophysical, geotechnical and metocean services to support the development of Block BM-C-33. The multi-disciplinary project includes a marine survey campaign which involves Fugro’s newest offshore survey vessel, Fugro Brasilis, along with the multi-purpose survey vessel, Geo Prospector, and an autonomous underwater vehicle (AUV).

Brazil Fugro was awarded a four year contract starting the first quarter of 2014 to provide a remotely operated vehicle (ROV) and survey and positioning services to Petrobras. The contract has an option for another four year extension. This contract strengthens Fugro’s position as the leading supplier of ROV services in the Inspection, repair and maintenance (IRM) market in Brazil with eight tri-partite contracts for Petrobras.

Brazil Seabed Geosolutions executed an ocean bottom node (OBN) 4D survey, covering 232km² of the Chevron Frade field. This is the first deepwater autonomous node project conducted in Brazil.

Canada Fugro performed onshore and offshore geotechnical and geophysical site investigations in support of the design for the Pacific Northwest’s liquefied natural gas (LNG) export facility on the West coast of Canada.

Mexico Fugro was awarded a contract by PEMEX for ultra deepwater geotechnical and pilot hole drilling and logging services for de-risking of drilling locations and field developments. This contract represents an example of the Fugro synergy employed on deepwater deephole drilling for well support.

United States of America The transportation

department of the State of Pennsylvania awarded Fugro Roadware a multi-year contract for automated pavement data collection. The contract consists of collecting pavement data on nearly 27,000 miles of highways annually.

United States of America Fugro completed preliminary civil and construction land surveys of 350 miles of 20-inch pipeline located in North Texas, that is used for transporting natural gas liquids from the Denver- Julesburg shale basin to the Gulf Coast. Similarly, a 12-inch pipeline from Texas to Louisiana was surveyed; the ecological project scope included wetland delineations and endangered species surveys.