Viridien · EURONEXT:VIRI
Viridien — CGG — Q3 2017 Earnings Presentation
21 slides from Viridien's earnings presentation, Nov 13, 2017
Slide 1: 3rd Quarter 2017 Financial Results
3rd Quarter 2017 Financial Results Quarterly EBITDA sustained by solid multi-client sales Financial restructuring plan approved by the EGM on November 13, 2017 All results are presented before Non-Recurring Charges & write-offs, 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: Q3 2017 Operational Review
Q3 2017 Operational Review Passion for Geoscience cA Cc G G
Slide 4: Q3 highlights: EBITDA sustained by multi-client sales
Q3 highlights: EBITDA sustained by multi-client sales Revenue at $320m, up 21% y-o-y GGR resilient with sustained multi-client quarterly sales boosted by Brazilian licensing rounds Still very low Equipment sales Contractual data acquisition: very challenging market conditions but impact miti
Slide 5: GGR: solid multi-client sales
GGR: solid multi-client sales Revenue Total revenue at $186m, down (4)% y-o-y (In million $) MC Revenue SI & Reservoir Multi-Client at $106m, up 7% y-o-y 221 Multi-client sales particularly active in Brazil and onshore US 193 186 Prefunding sales at $70m and after-sales at $35m 99 133 High
Slide 6: Equipment: persistent low volumes
Equipment: persistent low volumes Revenue (In million $) Total sales at $40m, down (26)% y-o-y Land Equipment Marine Equipment External sales quite stable y-o-y, internal sales at $4m in Q3 2017 vs $20m in Q3 2016 54 53 Sales split: 63% Land and 37% Marine 40 28 27 Land sales: artificial lif
Slide 7: Contractual Data Acquisition: a good operational performance
Contractual Data Acquisition: a good operational performance Revenue (In million $) Total revenue at $99m, up 158% y-o-y Land & MP Completion of the large PEMEX contract Marine 99 Marine revenue at $71m, up 306% y-o-y 82 28 67% allocation to marine contractual activities vs 29% in 21 Q3 2016
Slide 8: Non-Operated Resources (N.O.R.)
Non-Operated Resources (N.O.R.) OPINC EBITDAs at $(2)m (In million $) Operating Income at $(4)m Q3 2016 Q2 2017 Q3 2017 Amortization of excess streamers (5) (4) (17) 8
Slide 9: Financial Review
Financial Review Passion for Geoscience cA Cc G G
Slide 10: Year-to-Date 2017: P&L
Year-to-Date 2017: P&L In Million $ YTD 2016 YTD 2017 Q1 2017 Q2 2017 Q3 2017 Total Revenue 867 919 249 350 320 Group EBITDAs excluding NOR 245 250 37 122 91 NOR (17) (12) (8) (2) (2) Group EBITDAs 228 238 29 120 90 Group OPINC excluding NOR (76) (65) (47) 2 (20) NOR (67) (30) (20) (5) (4) Group OPI
Slide 11: Year-to-Date 2017: Solid EBITDA
Year-to-Date 2017: Solid EBITDA EBITDAs EBITDAs at $238m, up 4% y-o-y (In million $) 228 238 Operating Cash Flow at $156m, down 60% y-o-y Negative working capital effect as expected at 120 $(49)m in 2017 compared to +$162m in 2016 26.3% 25.9% 90 34.3% 28.0% Capex at $212m, down (32)% y-o-y 9
Slide 12: Debt increase
Debt increase $54m $38m $33m $ (127)m $ (14)m $198m $77m $2,571m $2,497m $2,312m Net Debt H1 ML* & GSS FX & Non Cash Net Debt Q3 FX & Non Cash Net Debt YE 2016 FCF Impact Other Items H1 2017 FCF Other Items YTD 2017 Net debt and Liquidity by end September Group Net Debt at $2,571m Group Liquidit
Slide 13: Conclusion
Conclusion (ccc cgg.com Passion for Geoscience
Slide 14: Stabilized revenue after three years of strong decline
Stabilized revenue after three years of strong decline Group Revenue GGR Revenue (In million $) (In million $) SI & Reservoir MC Revenue 1,512 723 554 565 867 919 420 254 304 303 249 310 YTD 2015 YTD 2016 YTD 2017 YTD 2015 YTD 2016 YTD 2017 Equipment Revenue Acquisition Revenue (In million $) (In mi
Slide 15: 2017 outlook unchanged
2017 outlook unchanged 2017 outlook 2017 EBITDAs expected to be in line with 2016 Multi-client cash capex expected to be at $250-300m, with cash prefunding rate above 70% and Industrial & R&D capex at $75-100m Cash generation expected to be lower in 2017 due to lack of positive change in wor
Slide 16: Key Milestones
Key Milestones Achieved July 28, lenders’ committee and bondholder general meeting approved the Safeguard plan Late September, impaired classes of creditors validated the Chapter 11 plan in the US October 16 approval from the Bankrupcy Court of the Southern District ofe New-York to implement
Slide 17: Thank you
Thank you (ccc Visit our website at cgg.com Passion for Geoscience
Slide 18: Appendix
Appendix Main components of our financial restructuring plan
Slide 19: Restructuring our debt while taking into account existing pledges and guarantees
Restructuring our debt while taking into account existing pledges and guarantees Gross amount Restructuring Maturity extended by Secured debt ~$0.8bn RCFs & Term Loan 5 years to 2023 secured and guaranted Up to $150m repayment No claim equitization Full equitization Guaranteed High ~$1.5bn HYB unsec
Slide 20: Shareholder to participate to the Company recovery
Shareholder to participate to the Company recovery Rights issue with Preferential Subscription Rights Free warrant granted (Warrant #1) (PSR): possibility to subscribe for new shares with warrants #2 attached 1 Warrant #2 (5-year maturity) 1 Warrant #1 (4-year maturity) One PSR granted for each atta
Slide 21: Shareholding structure post financial restructuring
Shareholding structure post financial restructuring Post Debt Including Shareholding Pre New Money (Pre Penny Warrants) Equitization Warrants 1 Existing shareholders 4.4% 9.7% Convertible bondholders 7.0% 6.6% Senior Notes holders 88.6% 83.7% Total 100% 100% Post Debt Including Including Shareholdin