Slide 1: Q1 2021 Financial Results
Q1 2021 FINANCIAL RESULTS cgg.com All figures are ‘segment figures’ used for management reporting (before non-recurring charges and IFRS 15), unless stated otherwise
Slide 2: Disclaimer
Disclaimer 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, the Company’s ac
Slide 3: Agenda
Agenda 01 Business overview 02 Operational review 03 Financial review 04 2021 Business outlook & Financial objectives Q1 2021 Financial Results 3
Slide 4: Business Overview
BUSINESS OVERVIEW 4 cgg.com 4
Slide 5: Q1 2021 Business overview
Q1 2021 Business overview Progressive refocusing of IOCs after a year of drastic reorganizations and cuts in E&P spending SEASONALLY SOFT A slow start of the year but recent upticks in commercial contracts and verbal awards FIRST QUARTER Sustained activity with large NOCs A soft GGR activity
Slide 6: Q1 2021 Key financial highlights
Q1 2021 Key financial highlights ADJUSTED SEGMENT SEGMENT REVENUE CASH FLOW EBITDAS $213m $39m Segment FCF at $60m Q1 2021 down 21% a margin of 19% Net Cash Flow at $28m year on year and a quarterly low point Cash liquidity of $407m at the end of March 2021 Q1 2021 Financial Results 6
Slide 7: Operational Review
OPERATIONAL REVIEW 7 cgg.com 7
Slide 8: GGR key financial indicators
GGR key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 652 Multi-Client * 401 Geoscience 63% 960 68% 60% 31% -30% 124 31* 2019 2020 Q1 2020 Q1 2021 668 575 * excluding $3m non-recurring charges in Q1 2021 & and $(39)m in 2020 340 ADJUSTED SEGMENT OPINC ($m) & MA
Slide 9: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG AS OF APR. 1ST ($m) 527 -12% 522 Internal production 460 132 137 External revenue 132 -21% 269 281 395 385 125 99 240 328 32 35 93 66 2018 2019 2020 Q1 2020 Q1 2021 2019 2020 2021 TOTAL PRODUCTION / HEAD ($K) COMPUTING POWER (PFLOPS) 2
Slide 10: Geoscience operational highlights
Geoscience operational highlights Subsurface Imaging Q1 2020 OBN Order Intake Q1 2021 OBN Prepared for market recovery and new playing field 2% Successful adaptation to current level of activity while OBN setting up foundations for new businesses in line with 32% our clients’ energy transition req
Slide 11: Multi-Client key business indicators
Multi-Client key business indicators MULTI-CLIENT REVENUE ($m) MULTI-CLIENT CAPEX ($m) & PRE-FUNDING (%) 3.1x 1.4x Prefunding After-sales Multi-Client capex Cash pre-funding rate 575 Cash on cash 219 -41% 118% 340 89% 85% 213 -67% 356 104 34 239 67 50% 57 186 15 30 127 19 47 2019 2020 Q1 2020 Q1 202
Slide 12: CGG Brazil Pre-Salt Ongoing and Future Programs
CGG Brazil Pre-Salt Ongoing and Future Programs Nebula Espirito Santo III Reprocessing Complete Espirito Santo IV Final Volumes: Available Polaris Final Volumes: Available Aluben Sparse Nodes IBAMA: Permit pending Nebula Area E IBAMA: Permit pending Nebula – Currently Acquiring Esmeralda DAZ Acquisi
Slide 13: Equipment key financial indicators
Equipment key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 97 452 Non Oil&Gas 17 Downhole 21% -36% 14% 30 8% 10% Marine 16 * 23 * 8 79 Land 291 2019 2020 Q1 2020 Q1 2021 11 * Excluding $(1)m non-recurring charges in 2020 and in Q1 2021 14 50 ADJUSTED SEGMEN
Slide 14: Equipment: a solid operational performance
Equipment: a solid operational performance Land • Over 120 thousand channels delivered in Q1 • Delivery of the remaining 508XT channels for the Middle East mega crews • Strong sales of vibrators with over 50 Nomad 65 delivered • Orders of WiNG land nodes from several new customers Marine • Released
Slide 15: Beyond the core: recent projects & initiatives
Beyond the core: recent projects & initiatives European Space Agency’s plastic pollution monitoring study CGG’s Satellite Mapping innovative high-resolution hydrocarbon seeps study commissioned by the Norwegian Petroleum Directorate Strategic agreement with dCarbonX in the subsurface assessment of i
Slide 16: Digital Geosciences: CGG Data Hub
Digital Geosciences: CGG Data Hub Scalable digitalisation services deploying our unique combination of Team | Technology | Taxonomy Providing integrated high-quality data and analytics to enable our clients to make better informed decisions faster Proprietary expert-driven technology pipeline to cla
Slide 17: Monitoring & Observation: CGG SeaScope
Monitoring & Observation: CGG SeaScope Environmental monitoring of offshore energy assets Satellite data driven Offshore platforms, drill rigs, well, pipelines and surrounding vessel activity Sea surface slick intelligence to strengthen situational awareness and mitigate offshore risk Establis
Slide 18: Financial Review
FINANCIAL REVIEW 18 cgg.com 18
Slide 19: Q1 2021 Income Statement
Q1 2021 Income Statement In million $ Q1 2021 Q1 2020 Segment Revenue 213 271 IFRS 15 adjustment (4) (18) Segment Revenue at $213m, down 21% IFRS Revenue 209 253 year-on-year Segment EBITDAs 36 123 Adjusted Segment EBITDAs 39 125 Segment EBITDAs at $36m and Adjusted* segment EBITDAs at $39m, Segment
Slide 20: Q1 2021 Simplified Cash Flow
Q1 2021 Simplified Cash Flow In million $ Q1 2021 Q1 2020 Q1 2021 Net Cash Flow at $28m Segment FCF before change in working cap (13) 37 Segment Free Cash Flow was at $60m, including $73m positive change in Change in working capital 73 21 working capital Segment FCF 60 58 Net Paid Cost of Debt at $(
Slide 21: Balance Sheet at March 31st 2021
Balance Sheet at March 31st 2021 • Group’s liquidity amounted to $407m EQUITY GOODWILL $1.19bn $1.09bn & MINORITY • Group gross debt before IFRS 16 INTERESTS was $1,252m and net debt was $845m NON-CURRENT MC $0.15bn LIBRARY $0.49bn LIABILITIES • Group gross debt after IFRS 16 FIXED was $1,394m and n
Slide 22: Debt Refinancing: the last step of the normalization journey
Debt Refinancing : the last step of the normalization journey Successful debt refinancing of $1.2Bn equivalent in EUR and USD New Debt in m$ (as of April 1, 2021) • Extension of maturities to 6 years (2027) • Blended cost of debt of 8.17% and elimination of 1 187 PIK interest • Non-Call period of 3
Slide 23: 2021 Outlook
AMAZING YEARS 2021 OUTLOOK
Slide 24: 2021 Business & financial objectives confirmed
2021 Business & financial objectives confirmed Progressive quarterly recovery starting Q2 and accelerating during H2 2021 GEOSCIENCE Solid demand for OBN imaging technologies Sustained activity with large NOCs 2021 MC cash capex of $165m focused on core mature basins with Q2 capex around $45
Slide 25: Thank You
THANK YOU 25