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Viridien — CGG — Q3 2013 Earnings Presentation

18 slides from Viridien's earnings presentation, Nov 7, 2013

  1. Slide 1: Third Quarter 2013 Results

    Third Quarter 2013 Results November 7, 2013

  2. Slide 2: Agenda

    Agenda  Third Quarter 2013 and Year to Date Financial Review  Year to Date Operational Review  Year to Date Financial Figures  2013 Outlook 2

  3. Slide 3: Third Quarter 2013 and Year to Date Figures

    Third Quarter 2013 and Year to Date Figures

  4. Slide 4: Third Quarter 2013

    Third Quarter 2013  Financial Performance:  Group Revenue at $908m, up 6%  Group EBIT at $95m EBIT not-including $(21)m* of Non-Recurring Items related to the Fugro Geoscience transaction, down 26% with a 10.4% margin  Operational Performance:  Low marine equipment sales due to temporary weakne

  5. Slide 5: YTD Key Figures: Growth and Profitability Improvement

    YTD Key Figures: Growth and Profitability Improvement (In million US$) Revenue EBIT EPS +14% +25% +56% 2810 350* 2473 Q3 2013 $908m $0.64 Q3 2012 280 Q3 2013 $855m $95m $0.41 Q3 2013 $0.01 Q3 2012 H1 2013 $127m Q3 2012 $1902m $0.28 H1 2012 H1 2013 H1 2013 $1618m $255m $0.63m H1 2012 $153m H1 2012 $0

  6. Slide 6: End of September 2013 Overview

    End of September 2013 Overview Market Changes CGG Achievements  Delays in big marine contract awards  Successful integration of Fugro for the winter season Geoscience  Softer marine market conditions  CGG’s technology differentiation is accelerating with BroadSeisTM,  More CGG vessels dedicated

  7. Slide 7: 2013 End of September Operational Review

    2013 End of September Operational Review

  8. Slide 8: Equipment: Strong Resilience in a Year of Transition

    Equipment : Strong Resilience in a Year of Transition (In million US$) Q3 Overview Revenue  Q3 Total Revenue at $223m down 21% y-o-y  Temporary weakness in demand for seismic equipment 916  Total sales driven 34% by marine and 66% by land products Mega Crews  External Revenue at $187m, down 15%

  9. Slide 9: Acquisition: Good Operational Performance in a Challenging Market

    Acquisition : Good Operational Performance in a Challenging Market Q3 Overview (In million US$) Revenue  Q3 Total Revenue at $568m up 8% y-o-y Marine  Strong operational overview in a softer marine contract market Land & Airborne 1767  Marine external revenue at $462m, up 28%  Land & Airborne re

  10. Slide 10: GGR: A Sustained Excellent Performance

    GGR : A Sustained Excellent Performance Q3 Overview Revenue (In million US$)  Q3 Total Revenue at $298m, up 24% y-o-y Multi-client & basin data Imaging & Reservoir  Lower multi-client sales after a strong Q2 925  Multi-Client & Basin data: $145m, up 24% with a solid prefunding rate at 79% 483  S

  11. Slide 11: Year To Date Financial Figures

    Year To Date Financial Figures

  12. Slide 12: YTD Key Financial Figures

    YTD Key Financial Figures (In million US$) EBIT  Group Revenue at $2,810m, up 14% y-o-y  Respective contribution amounting to 20% for Equipment, 47% +25% 350* for Acquisition, and 33% for GGR  Intra group sales: 22% for Equipment and 25% for Acquisition 280  EBIT at $350m* corresponding to a 12.

  13. Slide 13: YTD Key Financial Figures

    YTD Key Financial Figures (In million US$) EBITDAs  EBITDAs: $880m*, a 31% margin +22% 880*  Total Capex of $605m 719  Industrial Capex at $205m  R&D Capex at $41m  Multi-Client Cash Capex at $359m with a 70% prefinancing rate  Operational Cash Flow of $456m, stable y-o-y YTD 2012 YTD 2013  $

  14. Slide 14: Financial Structure

    Financial Structure (In million US$)  Capital Employed up $100m due to the full completion of Fugro Geoscience Acquisition  Available Cash was $320m  Net debt to equity ratio at 51%  Debt maturity (including RCF) at the end of September is 4.5 years  Cash cost of the mid-term debt at 4.85% 14

  15. Slide 15: 2013 Outlook

    2013 Outlook Passion for Geoscience & CG G

  16. Slide 16: 2013 Revenue Growth Revised to 15%-17%

    2013 Revenue Growth Revised to 15%-17% +25%e Intra group sales +15-17%e (20)% Intra group sales (25)% Acquisition Acquisition +25% Acquisition $1.9bn +15% 2013 2013 Group Group Revenue GGR Revenue +15-17% $1.0bn GGR GGR +45% +15-17% +45% Equipment $1.2bn Equipment Equipment 0% (10)% Intra group sale

  17. Slide 17: 2013 Outlook

    2013 Outlook CGG revised targets:  15%-17% Growth in revenue  EBIT margin between 12% and 13% including a 28% EBIT margin for the Equipment Division Key elements:  Multi-client Cash capex up at $450m-$500m  Multi-client Prefunding rate targeted above 75%  Industrial capex targeted at $300m-$350

  18. Slide 18: Thank you

    Thank you Passion for Geoscience ec G G cgg.com

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