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Viridien — CGG — FY2014 Earnings Presentation

23 slides from Viridien's earnings presentation, 2015

1. Slide 1: 4th Quarter and Full Year 2014 Financial Results

   4th Quarter and Full Year 2014 Financial Results Delivering our Transformation Plan All results are presented before Non-Recurring Charges & 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: 2014 Highlights

   2014 Highlights  Deterioration in market conditions throughout the year  Implementation and acceleration of Transformation Plan  Downsizing of Marine fleet to 13 3D vessels completed  Drastic restructuring of our Land and Airborne activity  Close to (12)% reduction in total Group headcount  St

4. Slide 4: Q4 2014: A strong quarter driven by Equipment and GGR

   Q4 2014: A strong quarter driven by Equipment and GGR Q3/Q4 2014 Division Total Revenue  Group revenue at $906m (In million $) 489  Equipment at $219m, 22% sequential rebound 418  Data Acquisition at $316m 316 304  GGR at $489m, up 61% sequentially and including 219 180 $299 m of record multi-cl

5. Slide 5: Transformation Plan fully implemented in 2014

   Transformation Plan fully implemented in 2014 Marine Fleet downsized by 1/4 Marine monthly cost structure  Five 3D Vessels taken out: Base 100 (23)% 93  Symphony de-rigged 85 81 77  Two 3D vessels permanently converted to source vessels  Two 3D vessels cold stacked 2013 Q1 14 Q2 14 Q3 14 Q4 14 F

6. Slide 6: 2014: A better balanced activity portfolio

   2014: A better balanced activity portfolio  Group revenue at $3.1bn, down (18)%  Equipment total revenue at $802m, down (23)% in a market down by (29)%  Data Acquisition total revenue at $1.8bn, down (20)%, impacted by reduced footprint and deteriorated market conditions  GGR total revenue at $1

7. Slide 7: 2014: a stronger H2

   2014: a stronger H2 2014 Division OPINC (In million $)  OPINC at $242m, a 7.8% margin 343  Equipment: 20% margin, solid resilience in the downturn  Data Acquisition: Facing difficult market conditions 164 25%  GGR: 25% margin, strong performance across the board 20% (24) (1)% Equipment Data GGR

8. Slide 8: Equipment: Increasing market share

   Equipment: Increasing market share Land equipment Marine equipment Equipment Revenue  Total sales were $802m, down (23)% (In million $)  External sales at $687m, down (18)% 1,204  64% land and 36% marine equipment 1,045  R&D spending at high level, 6.2% of sales 428 802 453  Increase in market

9. Slide 9: Data Acquisition: Fit for challenging market conditions

   Data Acquisition: Fit for challenging market conditions Data Acquisition Revenue  Data Acquisition total revenue at $1,775m, down (20)% Land & Airborne (In million $) 2,226  External revenue at $1,025m, down (37)% Marine 1,878 440 1,775  Multi-client represents 45% of the fleet activity 568 277 

10. Slide 10: GGR: Growth and sustained profitability

    GGR: Growth and sustained profitability MC Revenue SIR GGR Revenue (In million $)  GGR total revenue at $1,384m, up 7% 1,384 1,296  Multi-Client revenue at $687m, up 11%  Multi-client prefunding revenue driven by our 950 697 676 StagSeis program in the Gulf of Mexico 478  2014 Cash prefunding ra

11. Slide 11: 2014 Financial Review

    2014 Financial Review 11

12. Slide 12: Q4 2014 and full-year 2014 P&L

    Q4 2014 and full-year 2014 P&L Q4 2014 Full-Year 2014 Total Revenue $906m $3.1bn Group OPINC $111m $242m Group EBIT $69m $160m  Q4 additional Non-Recurring Charges of $643m mainly linked to a new phase in our Transformation Plan leading to 2014 Total Non Recurring Charges of $939m  $(282)m restruc

13. Slide 13: 2014 Focus on cash generation despite high MC capex

    2014 Focus on cash generation despite high MC capex (In million US$) EBITDAs  Free cash flow generation in Q4  Q4 EBITDA at $402m, up 93% sequentially, with a 44% margin  Q4 Operational Cash Flow of $386m  Q4 Capex at $157m, down 20% sequentially 402 189 194 208  2014 EBITDA at $994 m  2014 mu

14. Slide 14: Proactive debt management: First major debt instalment pushed back to 2019

    Proactive debt management: First major debt instalment pushed back to 2019 Debt Maturity Profile as of Year-End 2014 Fugro V. Loan & 'Nordic' Facility Debt Maturity extension All amounts in $m Convertible Bond (Equity Component)  Refinancing transactions with the Convertible Bond (Debt Component) i

15. Slide 15: 2014 Balance Sheet and breakdown of Capital Employed

    2014 Balance Sheet and breakdown of Capital Employed  $5.15bn Capital Employed by year-end 2014  Net debt at $2.4bn  Liquidity at $666m including $359m of cash  90% of the Net Debt to be repaid only after January 1st, 2019 GGR Goodwill  $0.75bn Equipment Division Capital Employed Equity & Minor

16. Slide 16: Outlook

    Outlook Passion for Geoscience ec G G

17. Slide 17: 2015 Business Context

    2015 Business Context General environment  Sharp decline in oil price over last six months  Geopolitical uncertainty in leading producing countries  Sanctions against Russia E&P market and seismic  Oil companies are slashing investments and focusing on productivity and cash flow generation which

18. Slide 18: A new phase in our Transformation Plan and focus on cash generation in 2015

    A new phase in our Transformation Plan and focus on cash generation in 2015  Marine footprint to be further reduced  Marine fleet coverage is at 92% in Q1 2015 and 57% in Q2 2015  Marine Fleet reduced to 11 vessels  Monthly cost structure targeted down (25)%  Further adjustment to Group Cost Ba

19. Slide 19: CGG: An integrated Geoscience model to weather the downturn and prepare for the future

    CGG: An integrated Geoscience model to weather the downturn and prepare for the future  Successful implementation of our Transformation Plan in 2014 with a new phase launched to further adapt to deteriorating market conditions  An integrated Geoscience company with a balanced activity portfolio 

20. Slide 20: Thank you

    Thank you Passion for Geoscience ec G G cgg.com

21. Slide 21: Equipment: Sercel a leading seismic equipment provider

    Equipment: Sercel a leading seismic equipment provider 2014 FY Key Figures Market Positioning  Strong footprint in land, 70% market share in Total sales EBIT Number of cable systems $802m $164m employees  Strong footprint in marine, 95% market share in c.2,300 streamers EBIT R&D / Number of  Main

22. Slide 22: Data Acquisition division: Under restructuring

    Data Acquisition division: Under restructuring 2014 FY Key Figures Market Positioning  A Marine seismic fleet dedicated to Total sales OPINC Number of high-end market $1,775m $(24)m employees c.4,000  The high-end Land acquisition player OPINC Industrial Vessel availability/  A leading Multi-Phys

23. Slide 23: GGR: Geology, Geophysics & Reservoir: A people driven business

    GGR: Geology, Geophysics & Reservoir: A people driven business 2014 FY Key Figures Market Positioning Total sales EBIT  Multi-client library in key areas (Gulf of $1,384m: $687m Multi- $337m Mexico, North Sea, Brazil) client and EBIT margin  Technology and broad spectrum of technical $697m SI & ot

CGG — FY2014 Earnings Presentation on 6ix