content_image/201817.jpg content_image/201819.jpg
<img src='content_image/201817.jpg'>

Source: Bloomberg, 2 April 2014 

## 1) Maximize Free Cash Flow (FCF) through fiscal discipline. 

Core follows a strict discipline for allocating capital for investment in growing our business. Unless certain Return on Invested Capital (ROIC) standards are met or exceeded, the capital expenditure is disallowed. On average over the past 30 years, the Company has determined that an appropriate capital allocation for a business generally equals the amount of annual depreciation. However, when clients request 

Core to increase capital for high-return projects, as was the case in 2013, the Company will increase capital alloca- tions. This discipline produced our industry-leading Revenue to Free Cash Conversion Rate of 24.5% during 2013 (Table 3). Core will continue to demonstrate strict fiscal discipline in 2014 and beyond. 

## 2) Maximize Return on Invested Capital. 

Core’s Board established an incentive compensation program for the executive and senior management teams based on the Company’s producing an ROIC in the top decile for the oilfield service industry. 

<img src='content_image/201819.jpg'>

Source: Bloomberg, 4 April 2014 

