Slide 1: Q2 2022 financial results
Q2 2022 financial results cgg.com
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 Q2 & H1 2022 overview 02 Operational review 03 Financial review 04 2022 Business outlook & Financial objectives Q2 2022 Financial Results 3
Slide 4: Q2 & H1 2022 Overview
Q2 & H1 2022 OVERVIEW 4 cgg.com 4
Slide 5: Q2 & H1 2022 Key segment financial highlights
Q2 & H1 2022 Key segment financial highlights REVENUE EBITDAS NET CASH FLOW $240 million $126 million $(56) million Q2 2022 up 66% pro-forma* y-o-y 52% margin including $(42) million change in working capital $393 million $164 million $13 million H1 2022 up 14% pro-forma* y-o-y up 130% y-o-y includi
Slide 6: Operational Review
OPERATIONAL REVIEW 6 cgg.com 6
Slide 7: Data, Digital and Energy Transition (ex-GGR) key financial indicators
Data, Digital and Energy Transition (ex-GGR) key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) Earth Data 60% 56% 34% 62% 39% 70% 668 -12% Geoscience 402 330 586 71 193 136 43 340 2020 2021 H1 2021* H1 2022 Q2 2021* Q2 2022 276 314 +68% ADJUSTED SEGMENT OPINC (
Slide 8: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG AS OF JUNE 30 ($m) (EXCLUDING GEOSOFTWARE AND SDS) -5% 460 435 Internal production 132 External revenue 125 +13% 202 179 57 +10% 63 100 194 198 328 310 91 145 30 30 116 61 70 2020 2021 H1 2021* H1 2022 Q2 2021* Q2 2022 2021 2022 TOTAL
Slide 9: Geoscience Q2 operational highlights
Geoscience Q2 operational highlights Subsurface Imaging Solid commercial activity worldwide in H1 2022: High level of bid submissions, up 28% y-o-y Total Geoscience order intake, up 61% y-o-y Strong Imaging activity in North America driven by demand for our technology related to Development & Pr
Slide 10: CGG HPC and Cloud Solutions
CGG HPC and Cloud Solutions Leading HPC technology solutions Access to highly specialized HPC compute, storage and expert services optimized for secure and efficient application Agnes Boudot (Ex-ATOS) joined CGG to lead the continued expansion of the HPC & Cloud Solutions Business A highly optim
Slide 11: Earth Data key business indicators
Earth Data key business indicators EARTH DATA REVENUE ($m) EARTH DATA CAPEX ($m) & PRE-FUNDING (%) Earth Data capex % Cash pre-funding rate 1.4x 1.6x Cash on cash Prefunding After-sales 340 -19% 89% 89% 44% 46% 39% 48% 276 213 137% 168 238% 150 124 50 36 239 71 37 75 127 126 32 118 17 88 168 43 39 2
Slide 12: Earth Data operational highlights
Earth Data operational highlights Quarterly sales • Q2 prefunding revenue at $36M and after-sales at $88M Higher definition velocity Brazil contrast in the model • Antares project ongoing with estimated completion in December 2022 refines the reservoir Gas/Oil contact • Started Foz Do Amazonas repro
Slide 13: PaleoSalars study in the "Lithium Triangle"
PaleoSalars study in the “Lithium Triangle” Comprehensive study with industry funding • Integrate multi-disciplinary data: geology, satellite, and surface data • Leverage in-house subject matter expertise • Utilize machine-learning/AI technology • Identify basins with high lithium concentration • Pr
Slide 14: Sensing & Monitoring (SMO) key financial indicators
Sensing & Monitoring (SMO) key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 8% 11% 4% - - - 39 357 23 BTC +23% 17 15 Downhole 7 291 Marine - 19 11 -7 -8 14 101 Land 50 2020 2021 H1 2021 H1 2022 Q2 2021 Q2 2022 161 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 5
Slide 15: Sensing & Monitoring Q2 operational highlights
Sensing & Monitoring Q2 operational highlights Land • Deliveries of WiNG systems to Europe and Asia • Shift of deliveries into Q3 & Q4 2022 Marine • Deliveries of some Sentinel sections • Significant deliveries of GPR300 OBN nodes • Major contract award for the supply of a complete Sentinel® streame
Slide 16: Sensing & Monitoring: Acquisition of Geocomp & ION Software
Sensing & Monitoring : Acquisition of Geocomp & ION Software Geocomp, a leading US provider of infrastructure monitoring, will enable Sercel to immediately: - Establish a beachhead for Infrastructure Monitoring in the US and accelerate the adoption of Sercel’s offerings - Acquire a renowned brand, c
Slide 17: Financial Review
FINANCIAL REVIEW 17 cgg.com 17
Slide 18: Income Statement
Income Statement In million $ Q2 2022 Q2 2021 H1 2022 H1 2021 Q2 2022 Segment Revenue 240 157 393 370 Segment Revenue at $240m, IFRS 15 adjustment (12) 14 11 10 up 66% pro-forma* year-on-year IFRS Revenue 228 172 404 380 Segment EBITDAs 126 42 164 72 Adjusted** Segment EBITDAs at $122m, up 245% y-o-
Slide 19: Simplified Cash Flow
Simplified Cash Flow In million $ Q2 2022 Q2 2021 H1 2022 H1 2021 Q2 2022 Segment Operating Cash Flow Net cash flow at $(56)m before change in working 118 41 158 66 capital Segment operating cash flow at Change in working capital & (42) 14 48 93 $118m, before $(42)m change in provisions working capi
Slide 20: Balance Sheet
Balance Sheet As of June 30, 2022 Group liquidity amounted to $417m, including: $317m cash liquidity $100m undrawn RCF Group gross debt before IFRS 16 was $1,129m and net debt was $812m Group gross debt after IFRS 16 was $1,226m and net debt was $909m $1,107m HY Bonds, due 2027 $97m Lease liabilitie
Slide 21: 2022 Outlook
2022 OUTLOOK 21 cgg.com 21
Slide 22: Our Sustainability contribution and ESG ratings
Our Sustainability contribution and ESG ratings Energy companies CO2 Energy transition footprint reduction More accurate drilling locations to avoid Supporting the transition to a lower hazards and optimally target reservoirs carbon future #1-3 among the Oilfield Services Earth observation & Energy
Slide 23: Conclusion
Conclusion • Macro environment is strengthening with increased spending from all clients and their progressive refocusing on exploration • Our leading sub-surface technology is increasingly critical for complex environments to reduce risks and optimize production • Geoscience and EDA are driven by i
Slide 24: Thank you
THANK YOU 24