Viridien · EURONEXT:VIRI
Viridien — CGG — FY2021 Earnings Presentation
29 slides from Viridien's earnings presentation, 2022
Slide 1: Q4 & Full Year 2021 Financial Results
Q4 & FULL YEAR 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 Q4 & FY 2021 overview 02 Operational review 03 Financial review 04 2022 Business outlook & Financial objectives Q4 2021 Financial Results 3
Slide 4: Q4 & FY 2021 Overview
Q4 & FY 2021 OVERVIEW 4 cgg.com 4
Slide 5: Q4 & FY 2021 business overview
Q4 & FY 2021 business overview ▪ Market recovery accelerated in H2 2021 ▪ Progressive recovery in demand from IOCs and large independents MARKET TRENDS ▪ Resilient demand for our technologies and data primarily for near field exploration and production ▪ A solid Q4 driven by strong activity across a
Slide 6: Q4 / FY 2021 Key segment financial highlights
Q4 / FY 2021 Key segment financial highlights REVENUE EBITDAS NET CASH FLOW $301m $154m $81m Q4 2021 up 7% y-o-y up 33% y-o-y including $95m from a margin of 51% disposal of assets $941m $19m FY 2021 $344m down (1)% y-o-y a margin of 37% before $(40)m and stable proforma refinancing costs Liquidity
Slide 7: CGG ESG 2021 Achievements
CGG ESG 2021 Achievements ENVIRONMENT SOCIAL GOVERNANCE REDUCE OUR OVERALL BE AN EXEMPLARY COMPANY FOR SET THE HIGHEST STANDARDS OF CARBON FOOTPRINT OUR EMPLOYEES GOVERNANCE Carbon Intensity* Computing Infrastructure Health & Safety of our Employees Board members participation 124 tons CO2 Eq / Pflo
Slide 8: Operational Review
OPERATIONAL REVIEW 8 cgg.com 8
Slide 9: GGR key financial indicators
GGR key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 652 Multi-Client 68% 60% 56% 64% 69% Geoscience 402 330 960 142 -30% 112 2019 2020 2021 Q4 2020 Q4 2021 668 -12% 575 586 340 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 276 22% 12% 18% 9% 37% +17% 207 385 176 3
Slide 10: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG AS OF JAN. 31ST ($m) (EXCLUDING GEOSOFTWARE) -2% 418 411 Internal production 90 101 External revenue +29% 328 309 125 204 200 97 32 22 75 93 2020 2021 Q4 2020 Q4 2021 2021 2022 TOTAL PRODUCTION / HEAD ($K) COMPUTING POWER (PFLOPS) 272
Slide 11: Geoscience operational highlights
Geoscience operational highlights Subsurface Imaging Legacy Data • Significant increase in open center order intake. Key awards in Latin America, US GoM and Norway • Industry best customer service and continued investment in R&D • Continued implementation of TLFWI to significantly improve the veloci
Slide 12: Multi-Client key business indicators
Multi-Client key business indicators MULTI-CLIENT REVENUE ($m) MULTI-CLIENT CAPEX ($m) & PRE-FUNDING (%) Multi-Client capex Cash pre-funding rate 3.1x 1.4x 1.6x Cash on cash Prefunding After-sales 575 -41% 118% 89% 89% 219 171% 158% 340 -19% 276 +13% 213 150 114 239 356 101 59 186 168 41 70 127 126
Slide 13: Multi-Client operational highlights
Multi-Client operational highlights Quarterly sales • Q4 prefunding revenue at $59M and after-sales at $55M Higher definition velocity contrast in the model Brazil refines the reservoir • Finished Nebula B & C program Gas/Oil contact • New Antares program started in early February 2022 North Sea • P
Slide 14: Multi-Client - worldwide footprint in proven & mature basins
Multi-Client - worldwide footprint in proven & mature basins ~ 1.3 million km2 Alaska Q4 2021 PROJECTS 348 km2 Brazil – Nebula / Antares N. Sea 300,816 km2 Caspian North Sea – NVG EW 4,270 (2D) km 13,122 (2D) km US Land Suriname – Partners 55,123 km2 GoM Land – Central Basin Platform 405,541 km2 Afr
Slide 15: Equipment key financial indicators
Equipment key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 97 452 Non Oil&Gas 21% 8% 11% 13% 16% 17 30 Downhole -36% Marine 39 79 357 +23% 17 23 Land 14 15 15 291 11 14 101 2019 2020 2021 Q4 2020 Q4 2021 50 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 326 108 1
Slide 16: Equipment operational highlights
Equipment operational highlights Land • Strong activity in Russia and North Africa • New deliveries of WiNG QuietSeis-based wireless node Marine • Completed delivery of the major GPR300 order • Launched Bluepulse, the marine source solution for sensitive areas Downhole tools • Memory gauges activity
Slide 17: Financial Review
FINANCIAL REVIEW 17 cgg.com 17
Slide 18: Q4 / FY 2021 Income Statement
Q4 / FY 2021 Income Statement Q4 2021: In million $ Q4 2021 Q4 2020 FY 2021 FY 2020 Segment Revenue at $301m, up 7% year-on-year Segment Revenue 301 283 941 955 Adjusted Segment EBITDAs at IFRS 15 adjustment 170 (66) 121 (69) $150m, a 50% margin IFRS Revenue 471 217 1 062 886 Adjusted Segment OPINC
Slide 19: Q4 / FY 2021 Simplified Cash Flow
Q4 / FY 2021 Simplified Cash Flow In million $ Q4 2021 Q4 2020 FY 2021 FY 2020 Full Year 2021: Segment Operating Cash Flow 148 112 339 353 before change in working capital Net Cash Flow at $19m before refinancing impacts Change in working capital (46) (86) (2) (88) Capex (55) (55) (227) (303) Segmen
Slide 20: Balance Sheet at December 31, 2021
Balance Sheet at December 31, 2021 • Group’s liquidity amounted to $419m including • $319m cash liquidity • $100m undrawn RCF • Group gross debt before IFRS 16 was $1,186m and net debt was $866m • Group gross debt after IFRS 16 was $1,308m and net debt was $989m • $1,163m HY Bonds, 2027 • $2m Bank l
Slide 21: 2022 Outlook
2022 OUTLOOK 21 cgg.com 21
Slide 22: E&P trends: a growth cycle driven by economic recovery and under-investment
E&P trends: a growth cycle driven by economic recovery and under-investment ANNUAL EXPLORATION & PRODUCTION SPENDING 2022-2024 could see a continued strengthening of E&P spending and Spending Outlook - CAPEX renewed focus on exploration US$ Billion $550 ▪ 2022 is expected to be the first year of a $
Slide 23: CGG Continuing transformation into a technology company
CGG Continuing transformation into a technology company OUR PURPOSE We combine human ingenuity, data and new Oil and Gas technology to understand and solve the world’s natural Energy resource, environmental and infrastructure challenges Transition CCUS Earth Data for a more sustainable future. Geoth
Slide 24: A new differentiated offering in rapidly growing markets
A new differentiated offering in rapidly growing markets DIGITAL SCIENCES ENERGY TRANSITION Digital Services & Innovation Geothermal Evaluate resource potential, optimize and Our investments in data science, AI, machine monitor geothermal developments with learning, cloud services and HPC services d
Slide 25: Beyond the Core business expected to represent more than 20% of revenues by 2025
Beyond the Core (BTC) business expected to represent organically more than 20% of total revenues by 2025 US$ million Beyond the Core Chart Title 5,000 % of total revenue Digital Science Energy Transition Monitoring & Observation CAGR 13% 4,000 3,000 Core Core 2,000 95% 80% 1,000 BTC >20% 0 5% 2021 2
Slide 26: Digital Sciences: CGG HPC Cloud Ecosystem
Digital Sciences: CGG HPC Cloud Ecosystem Leading HPC services & storage Providing clients with access to CGG HPC resources / data in a secure, efficient and cost effective way A highly optimized HPC & digital platform Managing very large and complex datasets Supporting algorithms requiring signific
Slide 27: 2022 Business trends
2022 Business trends ▪ Gradual recovery should continue, driven by focus on reservoirs, increase in number of GEOSCIENCE development projects in complex areas, and digitalization ▪ Technology focus on expanding differentiation and efficiency gains ▪ Activity driven by core basins in Norway, Brazil a
Slide 28: 2022 Financial Guidance
2022 Financial Guidance : Accelerating business initiatives to capture rebound in core markets and rapid development of beyond the core businesses ▪ Around 10% revenue growth sustained by ~18% GGR growth and stable Equipment TOP LINE ▪ CGG is anticipating a slow first quarter revenue due to lower eq
Slide 29: Thank You
THANK YOU 29