Slide 1: Q3 2022 financial results
Q3 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 Q3 & 9 months 2022 overview 02 Operational review 03 Financial review 04 Outlook Q3 2022 Financial Results 3
Slide 4: Q3 & 9 months 2022 overview
Q3 & 9 MONTHS 2022 OVERVIEW 4 cgg.com 4
Slide 5: Q3 & 9 months 2022 Key segment financial highlights
Q3 & 9 months 2022 Key segment financial highlights REVENUE EBITDAS NET CASH FLOW $217 million $77 million $(78) million Q3 2022 down (16) % pro-forma* 35% margin including $ (19)m y-o-y investment in M&A and $(40)m change in working capital $610 million $241 million $(65) million YTD 2022 slightly
Slide 6: Operational review
OPERATIONAL REVIEW 6 cgg.com 6
Slide 7: Data, Digital and Energy Transition (ex-GGR) key financial indicators
Data, Digital and Energy Transition (ex-GGR) key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) Earth Data 60% 56% 51% 58% 66% 50% 668 -12% Geoscience 402 330 260 586 174 103 66 340 444 2020 2021 YTD 2021*YTD 2022 Q3 2021* Q3 2022 +29% 276 343 230 ADJUSTED SEGME
Slide 8: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) EXTERNAL BACKLOG AS OF SEPTEMBER 30TH ($m) -2% 402 394 Internal production +9% External revenue 129 125 298 273 84 93 193 191 +2% 273 269 94 97 214 180 30 27 64 69 2020* 2021* YTD 2021* YTD 2022 Q3 2021* Q3 2022 2021 2022 TOTAL PRODUCTION / HE
Slide 9: Geoscience Q3 operational highlights
Geoscience Q3 operational highlights Geoscience ▪ Solid Geoscience commercial activity worldwide: High level of bid submissions, up 26% year-on-year during the first 9 months of 2022 Order intake value up 37% year-on-year during the first 9 months of 2022 Subsurface Imaging ▪ Stabilization of activi
Slide 10: Unique elastic FWI technology leveraging CGG HPC
Unique elastic FWI technology leveraging CGG HPC Elastic Full Waveform Inversion (FWI) brings a step-change to seismic imaging and velocity model building: ▪ Attains unprecedented level of resolution and detail ▪ Reveals hidden deep and complex structures Legacy Model Elastic FWI Model ▪ Improves am
Slide 11: CGG HPC and Cloud Services
UK – new data center CGG HPC and Cloud Services London Paris France Houston Singapore USA ➢ 3 main compute hubs UK, USA, Singapore ➢ 1 lab France Singapore cgg.com 11 Q3 2022 Financial Results
Slide 12: Earth Data (Multi-Client) key business indicators
Earth Data (Multi-Client) key business indicators EDA REVENUE ($m) EDA CAPEX ($m) & PRE-FUNDING (%) Multi-Client capex Cash pre-funding rate 1.4x 1.6x Cash on cash Prefunding After-sales 89% 89% 70% 38% 103% 26% 340 -19% 276 +41% 230 -33% 213 163 92 239 150 69 62 168 180 92 59 19 131 127 126 161 71
Slide 13: Earth Data market and operational highlights
Earth Data market and operational highlights Quarterly revenue • Q3 prefunding revenue at $19m and after-sales at $43m Higher definition velocity contrast in the model • YTD prefunding revenue $69m and after-sales $161m refines the reservoir Gas/Oil contact South America • Brazil - Antares ongoing w
Slide 14: Building a comprehensive database for CCUS in GOM
Building a comprehensive database for CCUS in GOM An integrated database with industry support • Multi-disciplinary data: seismic, geochemistry, geomechanics, petrophysics, engineering and surface data • Leveraging in-house subject matter expertise • Utilizing machine-learning/AI technology • Screen
Slide 15: Sensing & Monitoring (SMO) key financial indicators
Sensing & Monitoring (SMO) key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 8% 11% 9% - 17% 17% 39 357 BTC +23% 23 24 17 17 15 Downhole 15 291 Marine 11 262 14 101 Land 9 -37% 50 10 -4 2020 2021 YTD 2021 YTD 2022 Q3 2021 Q3 2022 74 165 ADJUSTED SEGMENT OPIN
Slide 16: Sensing & Monitoring Q3 operational highlights
Sensing & Monitoring Q3 operational highlights Land • Over 100,000 508XT channels delivered to MENA and Asia • Delivery of WiNG nodes to Europe and the USA Marine • Completed the acquisition of ION’s software division • Significant deliveries of GPR300 OBN node Downhole tools • Strong activity for A
Slide 17: Structural Health Monitoring: successful bridge test in Texas
Structural Health Monitoring: successful bridge test in Texas Market • Structural Health Monitoring market estimated ~2B$ in 2022, growing at a 14% CAGR • Leveraging CGG’s high-quality wireless sensors and data processing expertise to deliver full solutions for the monitoring of large and critical i
Slide 18: Financial review
FINANCIAL REVIEW 18 cgg.com 18
Slide 19: Income Statement
Income Statement In million $ Q3 2022 Q3 2021 YTD YTD 2022 2021 Q3 2022 Segment Revenue 217 270 610 640 Segment Revenue at $217m, IFRS 15 adjustment 38 (60) 49 (49) down (16)% pro-forma* year-on-year IFRS Revenue 255 210 659 591 Adjusted** Segment EBITDAs at Segment EBITDAs 77 118 241 190 $75m, a 35
Slide 20: Simplified Cash Flow
Simplified Cash Flow YTD YTD In million $ Q3 2022 Q3 2021 2022 2021 Segment Operating Cash Flow before change in working 77 125 235 196 Q3 2022 capital Change in working capital & Net cash flow at $(78)m (40) (49) 9 39 provisions Capex (82) (73) (210) (172) Segment operating cash flow before $(40)m
Slide 21: Balance Sheet
Balance Sheet As of September 31, 2022 Group liquidity amounted to $325m, including: $225m cash liquidity $100m undrawn RCF Group gross debt before IFRS 16 was $1,114m and net debt was $889m Group gross debt after IFRS 16 was $1,201m and net debt was $976m $1,070m HY Bonds, due 2027 $87m Lease liabi
Slide 22: Outlook
OUTLOOK 22 cgg.com 22
Slide 23: 2022 Financial objectives update
2022 Financial objectives update ▪ 2022 CGG segment revenue expected to be around $900m, stable pro-forma* year-on-year o DDE 2022 segment revenue expected to be up around 18% pro-forma* year-on-year o SMO 2022 segment revenue expected to be down around 30% year-on-year and below guidance due to shi
Slide 24: Industry is entering a favorable multi-year upcycle advantageous to CGG
Industry is entering a favorable multi-year upcycle advantageous to CGG as a technology market leader Source: 1. Brent Forecasts: S&P Global Commodity Insights, Rystad Energy, Fitch Solutions, Bloomberg Consensus. 2. E&P CAPEX Forecasts: 2022 Evercore ISI Global E&P mid-tear spending outlook, Barcla
Slide 25: Conclusion
Conclusion ▪ The industry is entering a favorable multi-year upcycle, driven by years of underinvestment and lack of supply of oil and gas ▪ Exploration will progressively increase, especially offshore, to fill the supply gap ▪ 2022 is a year of transition for CGG, which required increased investmen
Slide 26: Thank you
THANK YOU 26