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Company summary

09.21.2011

CLB US

The Company
• • The two major businesses of Core Laboratories are reservoir description and production enhancement. While major oil companies can provide the same services, CLB differentiate itself in that they can replicate actual conditions in different reservoir extracting and using the same type of rocks and liquids to run tests while its competitors focus on computer-based simulations. CLB represents a niche player within the industry, recognized by the excellence of its scientists and geologists. While the workforce represents their biggest assets, coupled with the proprietary technology, on the flip-side it might turn out to be the biggest threat in case a company like EXXON decided to hire their team to develop further that kind of business in house. o The consequences for CLB would still be confined to the loss of EXXON as a client but it would not affect the business relation established with other customers. The singular peculiarity of CLB business is that major oil companies are both competitors and clients. As already mentioned, although oil giants can run their own tests, it would be the case for new headline reservoirs while CLB services would be adopted to increase efficiency of older wells.

Through-the-cycle resiliency
• The focus on reservoir analysis/description and production enhancement, rather than on exploration, confers CLB a safer role within the oil industry investment universe. During downturns oil companies focus will switch from exploration, which requires heavy upfront investments, to production enhancement that provides immediate cash revenues. It’s more of an OPEX than CAPEX related business that along with higher pricing stability makes of CLB a solid through-the-cycle play.

Low Correlation to Stock Market and Oil price
• CLB relation to oil price is weak, especially compared to its peers. Below there is data about the company (and its peers) correlation to oil price. Also, there is data (and ranking) about correlation in both bullish and bearish markets and excess return for the industry. The exercise of page 2 clearly shows that CLB offers the highest alpha generation while retaining a low market and oil price correlation.

Shareholder Friendly
• Last but not least, the financial summary in page 3 shows the steady improvement of the company’s financial situation thanks to its strong cash generation that has enabled a constant deleveraging. CLB has shown a shareholder-friendly stance over the past years through aggressive shares buyback programmes.

Recommendation
Niche player recognized internationally thanks to the excellence of their services, with exceptional cash generation and through-the-cycle business resiliency. Current (and historical) premium valuations are justified by the strength of both business and financial profiles. BUY.

OIL SERVICES CORRELATION WITH OIL
CLB Investor Relations: "Regarding your second question – project economics are different from field to field and project to project, so there is not a hard-and-fast number for you. Generally speaking, however, the cost of the incremental barrel is usually about one-half the cost of a new found barrel - so if you were a “robotic” engineer, you’d use our services throughout changes in commodity prices. Crude dropped under $40 during the last cycle and our revenues were down only 11% in 2009 vs 2008 compared to SLB, HAL, and BHI who dropped 16%, 20%, and 19%, respectively." The following exercise is to verify the extent of exactitude of Co's IR statement and at the same time compare CLB correlation to oil and beta/alpha with the MSCI World vs. CL1 Cmdty BETA R² 0.355 0.187 0.587 0.316 0.705 0.257 0.669 0.554 0.652 0.261 0.518 0.142 0.679 0.290 0.632 0.299 0.643 0.317 0.474 0.179 0.515 0.288 0.720 0.343 0.649 0.251 vs. GDDLWI Index CONVEXITY BETA ALPHA -0.154 0.849 0.735 -0.054 1.516 0.172 0.053 1.842 0.405 -0.316 1.785 0.425 -0.147 1.581 0.341 0.068 1.491 -0.279 0.167 1.731 0.318 -0.272 1.314 0.200 0.239 1.595 0.045 -0.023 1.233 -0.011 0.073 1.053 -0.253 0.049 1.772 0.475 0.067 1.790 0.294
CLB 0.6 RDC NOV HAL CAM DRQ

CLB SLB HAL NOV BHI RIG CAM ESV FTI NE DO RDC DRQ
0.6

COMPANY CORE LABORATORIES N.V. SCHLUMBERGER LTD HALLIBURTON CO NATIONAL OILWELL VARCO INC BAKER HUGHES INC TRANSOCEAN LTD CAMERON INTERNATIONAL CORP ENSCO PLC-SPON ADR FMC TECHNOLOGIES INC NOBLE CORP DIAMOND OFFSHORE DRILLING ROWAN COMPANIES INC DRIL-QUIP INC

Rank 1 5 12 10 9 4 11 6 7 2 3 13 8

3 10 5 13 6 1 8 9 11 2 7 12 4
0.8

3 5 8 1 4 10 12 2 13 6 11 7 9

Rank 1 6 13 11 7 5 9 4 8 3 2 10 12

1 9 4 3 5 13 6 8 10 11 12 2 7

NOV 0.5

0.4 SLB DO RDC FTI ESV CAM BHI HAL DRQ

0.4

#N/A BHI #N/A
ESV SLB FTI NE 0.4 0.6 0.8 1.0 1.2 1.4 1.6

0.3

0.2

0.2

CLB

NE RIG

0.0

1.8

2.0

0.1

-0.2 DO RIG

0.0 0.3 0.4 0.4 0.5 0.5 0.6 0.6 0.7 0.7 0.8

-0.4

CONCLUSION CLB appears obviously the lowest correlated stock to Oil, within the analyzed stock market sample, over the past two years. At the same time CLB offers the best excess return coupled with one of the lowest correlation to the market.

CLB US Equity Summary Data

CORE LABORATORIES N.V.
12/31/2006 576 growth 141 growth 17 124 6 29.8% 83 12/31/2007 671 16.5% 203 44.4% 19 184 3 33.2% 121 12/31/2008 781 16.4% 229 12.5% 22 207 22 30.6% 131 12/31/2009 696 -10.9% 211 -8.0% 24 187 16 33.4% 114 12/31/2010 795 14.2% 250 18.7% 23 227 16 30.2% 145 6/30/2011 31.12.2012 LTM 840 1,103 5.7% 31.3% 259 359 3.7% 38.4% 23 236 13 24.9% 165 Average Growth 12% 18% CAGR 13% 23%

(mil. USD ) SUMMARY P&L Revenues EBITDA D&A EBIT Interest expense Tax rate Net income

SUMMARY BALANCE SHEET Cash and equivalents Short-term debt Long-term debt Total debt Net debt Stockholders' equity Preferred stocks Minority interests Total Market Capitalization Enterprise Value Total assets Pension liabilities SUMMARY CASH FLOW Capital expenditure (CAPEX) Free cash flow FCF/Net debt Shares buy back Cash dividend Unfunded pensions plan Leases Net change in debt PROFITABILITY MEASURES Gross Margin EBITDA margin Operating Profit ROA ROE Asset Turnover BALANCE SHEET Total debt/total capitalization Total debt/equity Debt/total assets CASH FLOW RATIOS Funds from Operation/Total debt Total Debt/Retained Cash Flow Net Debt/EBITDA EBITDA/Interest Expense (Retained Cash Flow + Interest Expense)/Inte Retained Cash Flow/CAPEX Cash conversion

54 3 300 303 249 73 0 1 --501 -1

26 3 300 303 277 64 0 1 3,234 3,513 505 3

36 0 195 195 158 188 0 2 1,582 1,742 522 -3

181 0 209 209 28 282 0 2 2,806 2,836 658 -5

134 148 9 156 23 292 0 3 4,081 4,107 636 -5

Last Quarter 25 90 0 90 65 252 0 3 5,220 5,288 552 -5 LTM

-24 96 38.6% 78 0 -1 9 210

-24 102 36.7% 47 0 3 12 0

-31 124 78.4% 12 28 -3 15 -56

-17 165 586.4% 1 26 -5 14 17

-28 178 789.2% 1 40 -5 14 -82

-27 165 253.3% 0 57 -3 14 -147 LTM 32.0% 30.9% 28.1% 24.2% 58.0% 130.2% Average 30.4% 29.4% 26.4% 22.0% 85.9% 130.4% Trend up up up up down stable Volatility 0.1% 0.1% 0.2% 1.0%

26.3% 24.5% 21.5% 18.5% 57.8% 128.5%

30.1% 30.3% 27.4% 24.1% 180.8% 133.3%

31.3% 29.3% 26.5% 25.6% 105.7% 152.2%

30.8% 30.3% 26.9% 19.3% 48.8% 117.9%

32.4% 31.5% 28.6% 22.4% 51.0% 122.8%

80.8% 421.5% 69.3%

83.0% 487.6% 71.4%

51.1% 104.5% 51.9%

42.8% 74.9% 43.5%

35.1% 54.0% 36.7%

26.5% 36.0% 29.3% LTM 213.9% 0.4 0.3 20.7 20.9 9.3 24%

43.0% 77.8% 44.0% Average 94.1% 1.1 0.5 22.9 18.8 8.6

up up up Trend up up up down up up Volatility 8.8% 4.3% 43.3% 1.3% 3.7% 12.8%

39.7% 2.5 1.8 24.3 21.7 4.9 0%

41.5% 2.4 1.4 79.7 50.3 5.3 0%

79.8% 1.1 0.7 10.6 9.5 5.9 13%

87.0% 1.0 0.1 13.6 14.4 12.0 14%

131.3% 0.6 0.1 15.8 16.5 8.9 18%