Slide 1: Q3 2016 Financial Results
Q3 2016 Financial Results All results are presented before Non-Recurring Charges & write-off, 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 2016 Financial highlights
Q3 2016 Financial highlights Persistently difficult market conditions Q3 results Revenue at $264m, down 9% q-o-q and Operating Income at $(39)m Solid operational performance and good execution of our Transformation Plan GGR: resilient with solid Multi-Client prefunding, leading to an 88% Y
Slide 4: Good execution of our Transformation Plan
Good execution of our Transformation Plan Marine monthly cost structure(1) G&A expenses Base (m$) 100 216 (59)% 72 (75)% 147 99 36 88 25 5 vessels YE 2013 YE 2014 YE 2015 YE 2016 est. 2013 2014 2015 2016 LTM Headcount(2) Total Capex(3) (number of employees) (m$) 11,060 (46)% (52)% 9,235 [375/450]e 7
Slide 5: Year-end outlook
Year-end outlook Fourth quarter highly dependent on seasonal Multi-Client activity and more specifically on the level of after-sales Full year cash prefunding rate now expected to be above 80% (versus 70% target) Recent commercial wins leading to a solid fleet coverage during the winter Rece
Slide 6: Q3 Operational Review
Q3 Operational Review 6
Slide 7: GGR: resilient with solid Multi-Client prefunding sales
GGR: resilient with solid Multi-Client prefunding sales GGR Revenue Total revenue at $193m, down (2)% q-o-q SI & Reservoir (In million $) MC Revenue Multi-Client sales at $99m, up 4% q-o-q 227 Prefunding sales at $89m and after-sales at $10m 196 193 High cash prefunding rate at 112% and YTD
Slide 8: Equipment: still impacted by low external volumes
Equipment: still impacted by low external volumes Revenue Marine Equipment (In million $) Total sales at $54m, up 21% q-o-q Land Equipment Higher internal sales at $20m 103 Sales split: 48% Land and 52% Marine 29 Land sales: Sercel 508XT in India and Poland 54 First orders of new high-tech
Slide 9: Contractual Data Acquisition: Weak land activity and high fleet allocation to Multi-Client
Contractual Data Acquisition: Weak land activity and high fleet allocation to Multi-Client Total revenue at $38m, down (35)% q-o-q Contractual Data Acquisition Revenue (In million $) Land & MP Marine revenue at $18m, down (21)% q-o-q Marine 152 Only 29% of our five-vessel fleet dedicated to co
Slide 10: Non-Operated Resources (N.O.R)
Non-Operated Resources (N.O.R) EBITDAs at $(2)m Non-Operated Resources OPINC (In million $) Operating Income at $(17)m Q3 2015 Q2 2016 Q3 2016 Amortization of excess streamers and lay-up costs (5) (17) Owned vessels cold-stacked in Dunkirk provide (23) high flexibility 10
Slide 11: Financial Review
Financial Review 11
Slide 12: Year-to-Date 2016: P&L
Year-to-Date 2016: P&L In Million $ YTD 2016 Q1 2016 Q2 2016 Q3 2016 Total Revenue 867 313 290 264 Group EBITDAs excluding NOR 245 37 109 99 NOR (17) (10) (5) (2) Group EBITDAs 228 27 104 97 Group OPINC excluding NOR (76) (55) 0 (22) NOR (67) (27) (22) (17) Group OPINC (143) (81) (22) (39) Equity fr
Slide 13: Year-to-Date 2016: Free Cash Flow generation
Year-to-Date 2016: Free Cash Flow generation EBITDAs (In million $) EBITDAs at $228m, down (40)% y-o-y 379 Operating Cash Flow at $393m, up 9% y-o-y 228 Capex at $305m, down (5)% y-o-y 104 97 25.1% 26.3% 35.8% 36.8% Multi-client cash capex at $242m, up 11% 9M 2015 9M 2016 Q2 2016 Q3 2016 I
Slide 14: Liquidity and leverage ratio
Liquidity and leverage ratio Liquidity by end September Group Liquidity (available cash plus undrawn RCF) at $604m US & French RCF fully drawn by end of September RCF Covenant Headroom Group Net Debt at $2,304m as of September 2016 from $2,150m by June end Leverage ratio (Net Debt over LTM E
Slide 15: Conclusion
Conclusion (ccc cgg.com Passion for Geoscience
Slide 16: Conclusion
Conclusion Our latest discussions with our clients suggest that our 2017 market should remain very similar to 2016 Growing perception of tightness in mid-term supply and demand … …not yet translating into short-term improved volumes or pricing in client spending In light of this situation an
Slide 17: Thank you
Thank you (ccc Visit our website at cgg.com Passion for Geoscience
Slide 18: A global best-in-class Geoscience company
A global best-in-class Geoscience company Over Around 85 years 800,000 6,000 5 million Sercel land channels of pioneering km² of permanent deployed worldwide offshore data employees Among the world’s top15 500 50 locations 31Subsurface staff dedicated to Imaging centers for computing worldwide R&D w
Slide 19: Debt profile
Debt profile €/$ closing rate at 1.12 Average Maturity, excluding RCF, at 3.7 years as of September-end 2016 Average cost of debt, excluding RCF, at 5.4% 19