Viridien · EURONEXT:VIRI
Viridien — CGG — FY2015 Earnings Presentation
28 slides from Viridien's earnings presentation, 2016
Slide 1: 4th Quarter & Full-Year 2015 Financial Results
4th Quarter & Full-Year 2015 Financial Results High Q4 multi-client sales Strong 2015 EBITDA at $661m Successful €350m capital increase All results are presented before Non-Recurring Charges (NRC), unless stated otherwise
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including, without limitation, statements about CGG (“the Company”) plans, strategies and prospects. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore,
Slide 3: 2015 Operational Highlights
2015 Operational Highlights Operational performance GGR: a solid 22% operational margin Contractual data Acquisition: impacted by losses in marine in extremely low pricing conditions Equipment: a 6% operational margin in low volumes Solid Group EBITDAs at $ 661m driven by strong Q4 Multi-C
Slide 4: Severe cost-cutting measures implemented over two years
Severe cost-cutting measures implemented over two years Marine cost structure G&A expenses (base) 100 ($m) 216 (64)% (54)% 72 147 99 36 18 13 8 vessels vessels vessels YE 2013 YE 2014 YE 2015 2013 2014 2015 Full cost base including Depreciation & Amortization Headcount(1) Total Capex(2) (number of e
Slide 5: Our Businesses
Our Businesses Passion for Geoscience ec G G
Slide 6: Geoscience Solutions at all scales
Geoscience Solutions at all scales Petroleum reservoir engineering Reservoir modeling Reservoir field and history matching development studies Well log interpretation Seismic reservoir characterization Seismic Licensing round Acquisition & consultancy Interpretation Sedimentology Reservoir Facies an
Slide 7: Geology, Geophysics & Reservoir
Geology, Geophysics & Reservoir
Slide 8: GGR 2015: Sustained profitability despite slowdown in revenue
GGR 2015: Sustained profitability despite slowdown in revenue GGR Revenue SIR ($m) MC Revenue 1,384 1,296 Total revenue at $1,108m, down (20)% y-o-y 1,108 697 676 Multi-Client revenue at $546m, down (21)% y-o-y 562 o With MC Cash Capex cut by half y-o-y 687 546 620 Subsurface Imaging (SI) & Re
Slide 9: Multi-Client 2015: Active in safe harbors
Multi-Client 2015: Active in safe harbors 2015 sales at $546m, with strong Q4 at $243m Multi-Client Dec’-end NBV FY cash prefunding rate at 102% versus 86% in 2014 After-sales at $256m, up 38% Solid demand for offshore high-quality images in traditional legacy basins: GoM 25%, North Sea 25%,
Slide 10: Multi-Client: World's most technically advanced data library in key locations
Multi-Client: World’s most technically advanced data library in key locations will drive cash generation in 2016-2018 Harvest recent programs GoM lease round cycle (number of blocks) Once-in-decade opportunity for clients to Expiration by Areas (EB, AC, GB, KC, GC, WR) Blocks 1 000 acquire block
Slide 11: Subsurface Imaging & Reservoir (SIR): A resilient, growing and profitable business
Subsurface Imaging & Reservoir (SIR): A resilient, growing and profitable business Subsurface Imaging 140 Processing Capability Highly skilled engineers producing new PBytes 45 algorithms - 1,950 staff globally 120 PFlops 40 CPU(1) Expanding computing power to handle large 100 35 data volumes
Slide 12: Equipment
Equipment
Slide 13: Equipment: A leadership position in an unprecedentedly difficult seismic equipment market
Equipment: A leadership position in an unprecedentedly difficult seismic equipment market Marine: a leadership position in a tough market impacted by vessel withdrawal Demand for new streamers sustained by oceanography and hydrography Activity also sustained by replacement and repair of damaged
Slide 14: Historically good profitability impacted by lower volumes in the last two years
Historically good profitability impacted by lower volumes in the last two years Revenue 2015 sales at $437m (In million $) Marine Equipment Land Equipment 1,045 69% Land and 31% Marine 802 453 Low volumes impacted by weak 287 land and marine sales 437 Marine sales levels only sustained 136 5
Slide 15: Contractual Data Acquisition
Contractual Data Acquisition
Slide 16: Marine: A significant fleet downsizing
Marine: A significant fleet downsizing Pre-exploration and new frontier exploration currently halted CGG Average Fleet Trend Reduced demand for deep and ultra deep water programs Significant industry marine overcapacity Recent industry vessels stacked and ready to resume service at limited c
Slide 17: Contractual Data Acquisition 2015: Difficult market conditions
Contractual Data Acquisition 2015: Difficult market conditions Contractual Data Total revenue at $616m Land & MP Acquisition Revenue (In million $) Marine Marine revenue at $439m 2,226 440 Land & Multi-Physics total revenue at $177m 1,057 EBITDAs at $(24)m, a significant y-o-y 1,786 279 redu
Slide 18: Non-Operated Resources (N.O.R)
Non-Operated Resources (N.O.R) Scope Non-Operated Resources OPINC Cold-stacked vessels (In million $) 60 Excess streamers (1) (1) 2014 2015 Maintenance costs Restructuring current costs and liabilities (17) 179 Operating Income at $(28)m in 2015 (28) Amortization of cold-stacked hulls
Slide 19: Financial Structure
Financial Structure Passion for Geoscience ec G G
Slide 20: 2015 Q4 and Full-Year P&L
2015 Q4 and Full-Year P&L In Million $ Q4 2015 FY 2015 Total Revenue 589 2,101 Group OPINC 21 19 Equity from Investments (6) 21 Non-recurring Charges (187) (1,177) Cost of Debt (45) (179) Other Financial Items (45) (54) Taxes 5 (77) Net Income (256) (1,446) Q4 additional Non-Recurring Charges of $
Slide 21: 2015: Efficient cash management throughout the year
2015: Efficient cash management throughout the year EBITDAs EBITDAs at $661m 1,160 ($m) 994 31.4% margin reached in a difficult environment 661 Operating Cash Flow at $529m 30.8% 32.1% 31.4% Capex at $415m, sharply reduced 2013 2014 2015 2015 Multi-Client cash Capex at $285m, 102% CAPEX pr
Slide 22: Managing the debt profile: Successful refinancing plan
Managing the debt profile: Successful refinancing plan with main 2017 instalments postponed to 2019 Group Net Debt at $2,500m as of Dec 2015 from $2,538m as of Sept 2015 Q4 ‘paper to paper’ refinancing with the issue of a 2019 Term Loan In exchange of (i) 94% of the 2017 HYB and (ii) 100% of
Slide 23: Managing the liquidity and the leverage: The new RCF financial covenant sequence
Managing the liquidity and the leverage: The new RCF financial covenant sequence Group Liquidity Group Leverage Gross liquidity of $421m in December 2015 versus Leverage ratio at 3.8x at December-end $440m in September 2015 New covenant sequence: High headroom in 2016 New covenant : $175m mi
Slide 24: A €350m equity increase to finance the transformation of CGG
A €350m equity increase to finance the transformation of CGG New & Previous Transformation Plan: c.$300m of forward cash costs Cost of the November 2015 Transformation Origin of forward cash costs Timing of forward cash out Plan 200 200 $950m non-cash write-off in Q3 2015 100 $187m restructuring
Slide 25: Portfolio of high-value assets
Portfolio of high-value assets $3.86bn Capital Employed by year end 2015 Net debt at $2.5bn / Minority Interests at $0.05bn Equity at $1.3bn post Impairment and write-offs $0.7bn Capital Employed for Contractual Data Acquisition $0.56bn on a pro forma basis (6 vessels cold-stacked) More
Slide 26: Conclusion
Conclusion Passion for Geoscience ec G G
Slide 27: Our Transformation Plan in 2016
Our Transformation Plan in 2016 GGR to represent 60% and Contractual Data Acquisition less than 15% Portfolio Multi-client vessel utilization: 30% in Q1 and 70% in Q2 Rebalancing Focus on high-end added-value businesses and solutions Marine Marine 3D fleet reduced from 11 to 5 vessels by end
Slide 28: A dynamic transformation focused on less capital-intensive businesses to weather the downturn
A dynamic transformation focused on less capital-intensive businesses to weather the downturn A rebalanced portfolio to manage the cycle with the right format Overhead structure reduced by 55% and breakeven lowered in all businesses R&D kept at high levels to maintain clear technology leadersh