Viridien · EURONEXT:VIRI
Viridien — Q2 2024 Earnings Presentation
26 slides from Viridien's earnings presentation, Jul 30, 2024
Slide 1: Financial Results Q2 & H1 2024
FINANCIAL RESULTS Q2 & H1 2024 viridiengroup.com
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, including, without limitation, statements about Viridien (“the Company”) and its plans, strategies, and prospects. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, th
Slide 3: Q2 2024 Financial Results
cgg.com Q2 2024 Financial Results 3
Slide 4: CGG became Viridien
CGG became Viridien New name for a new story o A new era of growth • Continuing to advance our leadership in the core areas of Geoscience, Earth Data and Sensing & Monitoring • Accelerating our Carbon Storage and Minerals & Mining businesses, as our technology and data are increasingly needed by the
Slide 5: Agenda
Agenda 1 2 3 Q2 & HY 2024 Q2 2024 Outlook & Operational Overview Financials Financial Roadmap cgg.com Q2 2024 financial results 5
Slide 6: Q2 & HY 2024 Operational Overview
1 Q2 & HY 2024 Operational Overview cgg.com Q2 2024 financial results 6
Slide 7: Key segment financial highlights
Key segment financial highlights REVENUE Adjusted EBITDA NET CASH FLOW $94 million $(6) million $258 million Q2 down 10% y-o-y vs ($79)m in Q2 2023 down 10% y-o-y including $(8)m penalty fees from including $(13)m contractual fees vessel commitments from vessel commitments $200 million $24 million $
Slide 8: Key Q2 corporate events
Key Q2 corporate events ONGC litigation settlement Standard & Poor’s upgrade to B- Agreement signed for RCF* 12-month extension (until Oct. 2026) Q2 2024 Financial Results * Revolving Credit Facility 8
Slide 9: DDE segment: Key business indicators
DDE segment: Key business indicators Segment revenue ($m) Adjusted segment EBITDA ($m) & margin (%) +2% 672 659 56% 62% 55% 51% 55% 54% 54% +21% 406 367 330 545 Earth Data Geoscience 199 337 147 375 96 76 276 362 2021 2022 2023 H1 2023 H1 2024 Q2 2023 Q2 2024 +26% 286 Adjusted segment OPINC ($m) & m
Slide 10: Geoscience: Key business indicators
Geoscience: Key business indicators Total Production ($m) Backlog ($m) 474 Internal production 398 External revenue 394 139 125 115 255 229 62 70 133 335 116 269 284 246 193 36 28 184 159 80 105 2021 2022 2023 H1 2023 H1 2024 Q2 2023 Q2 2024 DEC. 2023 H1 2023 H1 2024 Total production / head ($k) Com
Slide 11: Geoscience: Q2 operational highlights
Geoscience: Q2 operational highlights 8Hz FWI model Geoscience o Good start of 2024 confirmed by Q2 activity o Order intake up 64% vs Q2 2023 (+55% y-o-y in H1) fueled by large imaging projects in key mature basins, driven by demand for new technology (Elastic FWI) applied to OBN surveys Legacy mode
Slide 12: Differentiating with high-frequency land FWI
Differentiating with high-frequency land FWI o Successful application of high- frequency FWI on marine data now adapted to challenging land data o Particularly relevant for the Middle East subsurface specificities o Sultanate of Oman: FWI velocity model and FWI Image improve geological understanding
Slide 13: Earth Data: Key business indicators
Earth Data: Key business indicators EDA Revenue ($m) & Cash on cash ratio EDA CAPEX ($m) & pre-funding (%) MC Capex Prefunding Rate 1,6x 1,8x 2x Cash on cash Prefunding 375 After Sales 89% 66% 113% 84% 102% 66% 86% 337 276 136 194 150 169 205 127 168 171 239 99 62 72 77 92 97 126 143 41 64 70 42 47
Slide 14: Earth Data: Q2 operational highlights
Earth Data: Q2 operational highlights Americas o Secured funding to start the Laconia sparse node program in the Gulf of Mexico in July o SE Arizona airborne mining program complete, a unique and best-in-class integrated multidisciplinary data package o Re-imaging projects in Brazil and Aruba starte
Slide 15: Laconia: Viridien's first large sparse OBN project in GOM
Laconia: Viridien’s first large project featuring sparse OBN in GOM o Started in July 2024 and first product available in a year o Covers an area of 7580 km2 - a mix of near-field blocks and prospective open blocks in the Paleogene trend o High client interest and well funded by major oil companies
Slide 16: Sensing & Monitoring segment: Key business indicators
Sensing & Monitoring segment: Key business indicators Segment revenue ($m) Adjusted segment EBITDA ($m) & margin (%) 453 11% 6% 12% 16% 10% 23% 8% 48 56 68% BTC 356 Marine 39 35 34 17 (24)% Land 16 16 101 269 230 6 2021 2022 2023 H1 2023 H1 2024 Q2 2023 Q2 2024 33 212 (20)% Adjusted segment OPINC ($
Slide 17: Sensing & Monitoring: Q2 operational highlights
Sensing & Monitoring: Q2 operational highlights Land o Strong deliveries of 508XT cabled channels in Asia o Active European Geothermal market for exploration with several significant deliveries of WiNG QuietSeis based wireless nodes Sercel WiNG DFU in Europe Marine o Significant deliveries of GPR300
Slide 18: Sensing & Monitoring: transformation plan
Sensing & Monitoring: transformation plan SMO is a world leader in seismic data Financial outcome acquisition equipment and solutions, with by 2025: an ambitious development strategy Lowered breakeven point $20M/$30M fixed cost reduction SMO will continue to experience volatility depending on large
Slide 19: Q2 2024 Financial Results
2 Q2 2024 Financial Results Q2 cgg.com 2024 financial results 19
Slide 20: Adjusted Segment EBITDA: +17% y-o-y in H1
Adjusted Segment EBITDA: +17% y-o-y. in H1 In million $ Q2 2023 Q2 2024 YTD 2023 YTD 2024 H1 2024 Segment Revenue 289 258 498 532 Group Segment revenue increase of Adjusted Segment EBITDA 104 94 171 200 7% driven by a very good DDE Margin % 36% 35% 34% 37% performance (+26%) Segment EBITDA 104 91 17
Slide 21: $24M Net Cash Flow in H1 2024
$24M Net Cash Flow in H1 2024 In million $ Q2 2023 Q2 2024 YTD 2023 YTD 2024 H1 2024 EBITDA 104 91 170 196 Strong improvement vs H1 2023 Income tax paid (2) (9) (10) (12) Change in working capital & provisions (45) (3) (49) (3) o Working Capital normalization and cash extraction achievement at SMO O
Slide 22: Balance Sheet
Balance Sheet At the end of June 2024 EQUITY $ 1,09bn & MINORITY GOODWILL $1,10bn Agreement signed for RCF extension INTERESTS Liquidity amounted to $430m, including: $340m cash liquidity MC $90m undrawn RCF $0,44bn LIBRARY Gross debt after IFRS 16: $1,281m vs $1,301m FIXED ASSETS DEBT & LEASE in De
Slide 23: Outlook & Financial Roadmap
3 Outlook & Financial Roadmap 2024 financial 2025 net cash flow 2024 - 2025 objectives improvement financial roadmap cgg.com Q2 2024 financial results 23
Slide 24: 2024 financial objectives
2024 financial objectives* Revenue expected to be in line with 2023 o Geoscience: good visibility thanks continued strong order intake o Earth Data: Laconia program to start contributing to revenue in H2 2024 o Sensing and Monitoring: further impacted by delayed Middle East mega-projects o New Busin
Slide 25: Financial Roadmap
Minimum cash required to run operations reduced to $100m 2025 net cash generation c.$100m 2024-2025 c.$300m of cash at disposal for debt buyback and/or reduced refinancing. First tranche of $30m debt buyback in 2024 Financial Roadmap RCF extension in 2024 Re-rating discussion with rating agencies Re
Slide 26: Thank You
THANK YOU 26