Viridien · EURONEXT:VIRI

Viridien — CGG — Q1 2014 Earnings Presentation

16 slides from Viridien's earnings presentation, 2014

  1. Slide 1: 1st Quarter 2014 Financial Results

    1st Quarter 2014 Financial Results Q1 and Q4 2013 are presented before Non-Recurring Items linked to Fugro (NRFI) and before impairment & write-off, unless stated otherwise.

  2. 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,

  3. Slide 3: Q1 2014 Results: In line with our expectations

    Q1 2014 Results: In line with our expectations  Group Revenue at $806m, down 7% y-o-y Group Revenue (In million $)  Equipment at $206m, down 18% 955  GGR at $290m, up 12% 871  Acquisition at $559m, down 6% 806  Solid operational performance, notably in Marine  Fleet availability rate at 94% 

  4. Slide 4: Focus on Management actions

    Focus on Management actions 2014-2016 Transformation Plan on track  The Symphony vessel was de-rigged as planned  Ongoing reduction in the marine fleet and associated support structure  Restructuring of Land North America activity ongoing Two successful refinancing operations conducted in April t

  5. Slide 5: 1st Quarter 2014 Operational Review

    1st Quarter 2014 Operational Review 5

  6. Slide 6: Equipment: Resilient despite lower revenues

    Equipment: Resilient despite lower revenues Land Equipment Revenue Marine Equipment (In million $)  Total sales were $206m, down 18% 317  External sales at $163m, down 14% • Lower land sales across all regions following 251 37% 41% strong deliveries in Q4 2013 206  Internal sales represented 21%

  7. Slide 7: Acquisition: Still difficult market conditions

    Acquisition: Still difficult market conditions Land & Airborne Acquisition Revenue  Acquisition revenue at $559m, down 6% Marine (In million $)  External revenue at $353m, down 16% 594 559 145 459 568 106  Land & Airborne revenue at $106m, down 26% 95 449 453  Record low winter campaign in North

  8. Slide 8: GGR: Continuing Sustained Profitability

    GGR: Continuing Sustained Profitability MC Revenue GGR Revenue SI & Reservoir (In million $)  GGR revenue at $290m, up 12% y-o-y 371  Multi-Client at $127m, up 18% y-o-y, the best Q1 performance since 2008 206 290 260  Prefunding revenue was $80m 163 152  Good level of after-sales in Canada & Br

  9. Slide 9: 1st Quarter 2014 Financial Review

    1st Quarter 2014 Financial Review 9

  10. Slide 10: Q1 2014 Cash: A typical Q1 pattern

    Q1 2014 Cash: A typical Q1 pattern EBITDAs  EBITDAs : $188m, a 23.4% margin (In million $) 280  Equipment at $52m, a 25% margin 272  Acquisition at $79m, a 14% margin 188  GGR at $159m, a 55% margin 31.3% 29.3%  Cash Flow from Operations at $118m, up 87% 23.4% y-o-y  Total Capex of $258m Q1 20

  11. Slide 11: Balance Sheet as of end of March 2014

    Balance Sheet as of end of March 2014 Capital Employed  Total Capital Employed at $6,279m as of end of March  Multi-Client Library Book Value up at $916m  Increase mostly due to the IBALT program in the Gulf of Mexico  Cash multi-client Capex pre-funded at 51%  Amortization rate at 61%  Net De

  12. Slide 12: Accelerated Refinancing Program with Senior Debt Maturity extended by 2 years

    Accelerated Refinancing Program with Senior Debt Maturity extended by 2 years 2013 Senior Debt Maturity Profile (in $m)  In April, issue of two new High Yield Bonds …  A €400m High Yield Bond at 5.875% due 2020:  €400m due 2020 at 5.875% coupon  $500m due 2022 at 6.875% coupon  A $500m High Yie

  13. Slide 13: Outlook

    Outlook Passion for Geoscience ec GS G

  14. Slide 14: 2014 Management priorities reaffirmed

    2014 Management priorities reaffirmed Seismic market conditions expected to remain flattish CGG management fully committed to implementing its 2014-2016 transformation plan  First steps in the Acquisition division downsizing plan in Q1 2014  Positive cash generation and active debt management o 20

  15. Slide 15: Thank you

    Passion for Geoscience ec GS G cgg.com

  16. Slide 16: 2013-2016: Rebalancing portfolio

    2013-2016: Rebalancing portfolio 2013 Main Drivers 2016 $3.8bn Revenue >$4.0bn Revenue Equipment  Strong organic growth for Equipment GGR 22% GGR Equipment 35%  (25)% reduction in marine fleet capacity 35% 30%  GGR growth despite reduced MC capex Acquisition Acquisition 43% 35%  At unchanged mar

CGG — Q1 2014 Earnings Presentation on 6ix