Slide 1: CGG A Global Technology & HPC Leader: Q4 & FY 2023 Financial Results
CGG A GLOBAL TECHNOLOGY & HPC LEADER Q4 & FY 2023 FINANCIAL RESULTS cgg.com
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, including, without limitation, statements about CGG (“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, the Com
Slide 3: Agenda
Agenda 1 2 3 4 Q4 & FY 2023 FY 2023 2024 - 2026 2024 - 2025 Operational Overview Financials Business Financial Perspectives Roadmap cgg.com Q4 2023 financial results 3
Slide 4: A wider scope of businesses offering attractive prospects
A wider scope of businesses offering attractive prospects CORE BUSINESSES NEW BUSINESSES Geoscience Low Carbon Established leader in subsurface imaging, Supporting industry transition with technology, geology and geoscience services. data and expertise for CCUS, geothermal and critical minerals. Ear
Slide 5: Strengthening ESG commitments
Strengthening ESG commitments Top tier ESG rating MSCI Emissions at 24 kTCo2*, ESG RATING reduced by 58% since 2019 65% low carbon energy mix in 2023 25% female in senior leadership in 2023 Scope 1 ( 2023) : 3 Scope 2 ( 2023 ) : 21 SUSTAINALYTICS PUE ( 2023 ) : 1.35 17.9 ESG RISK RATING Q4 2023 fina
Slide 6: Q4 & FY 2023 Operational Overview
1 Q4 & FY 2023 Operational Overview cgg.com Q4 2023 financial results 6
Slide 7: Q4 2023 & FY 2023 key segment financial highlights
Q4 2023 & FY 2023 key segment financial highlights REVENUE EBITDAs NET CASH FLOW $122 million $48 million Q4 $320 million 2023 including $(13)m penalty including $(18)m stable y-o-y fees from vessel contractual fees from commitments vessel commitments $400 million $32 million $1,125 Billion 2023 inc
Slide 8: Q4 2023: GEO & SMO solid quarterly activity; EDA impacted by delayed bid rounds
Q4 2023: GEO & SMO solid quarterly activity; EDA impacted by delayed bid rounds Q4 segment revenue per business Strong GEO activity worldwide performance with revenue up 41% year on year driven by delivery of large Q4 2022 Q4 2023 processing projects 145 119 High level of EDA prefunding revenues dri
Slide 9: DDE Segment: Key business indicators
DDE Segment: Key business indicators Segment revenue ($m) Adjusted segment EBITDAs ($m) & margin (%) 56% 62% 55% 68% 58% 406 367 +2% 330 +21% 672 659 Earth Data 147 117 545 Geoscience 337 2021 2022 2023 Q4 2022 Q4 2023 375 276 Adjusted segment OPINC ($m) & margin (%) 18% 29% 21% 29% 10% (7)% 192 215
Slide 10: Geoscience: Key business indicators
Geoscience: Key business indicators Total production ($m) Backlog as of December. 31st ($m) 474 394 399 +19% Internal production 139 (19)% External revenue 125 115 +18% 227 335 131 184 269 284 100 +41% 33 31 69 98 2021 2022 2023 Q4 2022 Q4 2023 2022 2023 Total production / head ($k) Computing power
Slide 11: Earth Data: key business indicators
Earth Data: key business indicators EDA revenue ($m) EDA CAPEX ($m) & pre-funding (%) 1.6x 1.8x 2.0x Cash on cash Multi-Client capex Cash pre-funding rate 89% 66% 113% 264% 209% Prefunding 375* +36% (10)% 337 After-sales 276 136 194 145 150 (29)% 103 205 171 168 239 67 126 143 62 78 41 25 29 2021 20
Slide 12: SMO segment: key business indicators
SMO segment: key business indicators Segment revenue ($m) Adjusted segment EBITDAs ($m) & margin (%) 11% 6% 12% 20% 8% 453 BTC 56 +68% 48 Downhole 23 39 356 Marine 17 (24)% 16 20 15 Land 9 269 101 230 2021 2022 2023 Q4 2022 Q4 2023 33 Adjusted segment OPINC ($m) & margin (%) 19 72 119 2% - 5% 12% -
Slide 13: 2023 Financials Results
2 2023 Financials Results cgg.com Q4 2023 financial results 13
Slide 14: A 21% revenue growth and a positive net income for the second year in a row
A 21% revenue growth and a positive net income for the second year in a row In million $ Q4 2023 Q4 2022 2023 2022 Full Year 2023 Segment Revenue 320 319 1125 928 IFRS 15 adjustment (54) (50) (49) (2) Segment Revenue at $1,125m, up 21% IFRS Revenue 265 268 1076 927 year-on-year Segment EBITDAs 122 1
Slide 15: An organic positive net cash flow generation including $(66)m vessel commitment fees
An organic positive net cash flow generation including $(66)m vessel commitment fees Full Year 2023 In million $ Q4 2023 Q4 2022 2023 2022 Segment Operating Cash Flow Net cash flow at $32m, including $(66)m 130 164 406 398 contractual fees vs $(35)m contractual before change in working capital fees
Slide 16: Net debt / adjusted EBITDA ratio at 2.4x
Net debt / adjusted EBITDA ratio at 2.4x At the end of December 2023 GOODWILL EQUITY & Group’s liquidity amounted to $417m, including: $1.10bn $1.06bn MINORITY – $327m cash liquidity INTERESTS – $90m undrawn RCF NON-CURRENT LIABILITIES Group Gross debt before IFRS 16 at $1,198m MC LIBRARY $0.46bn vs
Slide 17: Business Perspectives
Placeholder image 3 Business Perspectives 2024 -2026 2024 -2026 Core businesses New Businesses market trends market trends cgg.com Q4 2023 financial results 17
Slide 18: Our core market, Exploration and Production, is rebounding
2024 - 2026: Our core market, Exploration and Production, is rebounding E&P CAPEX ($ Billion) CAGR ▪ Focus on proven basins and ILX: low 2023-26 800 618 risk/cost/carbon, fast turnaround 518 600 470 Prod 400 365 ▪ Offshore greenfield projects picking up 6% 200 0 Explo ▪ Middle East on a race to prod
Slide 19: OBN is becoming the reference data in proven basins and we have leading positions
2024 - 2026: OBN is becoming the reference data in proven basins and we have leading positions Streamer and OBN data acquisition 2018 - 2023 market share in 300000 25,000 80% geoscience OBN Sq km streamer data 250000 Sq km OBN data 20,000 200000 of OBN sensors installed 15,000 150000 10,000 36% base
Slide 20: Middle East and North Africa are accelerating and acquiring vast amounts of high-end data
2024 - 2026: Middle East and North Africa are accelerating and acquiring vast amounts of high-end data 2023 - 2024 data acquisition activity 6 Mega Crews 3 OBN 6 3D Crews 30 running Oman PDO years dedicated center 1 Mega Crew 1 OBN 50,000 of OBN data imaged km² by CGG 1 OBN land crews equipped with
Slide 21: Digitalization is gaining momentum
2024 - 2026: Digitalization is gaining momentum 400% revenue growth in 2023 AI >100 AI / ML engineers and data Classify scientists Extract 510 petaflops capacity and HPC growing Integrate Multi & mega Data, connectivity, insights scale Data and platforms (Geoverse…) ▪ Unlocked value of data ▪ Access
Slide 22: Driving our growth in core markets
2024 - 2026: Driving our growth in core markets Pushing the boundaries of imaging: from seismic images to reservoir features and content Geoscience market share increase driven in particular by land mega crews in Middle-east and by advanced imaging of OBN data Data library expansion in select emergi
Slide 23: Developing unique offerings to address the critical needs of New Markets
2024 - 2026: Developing unique offerings to address the critical needs of New Markets Infrastructure CCUS Minerals & Mining HPC & Digital Solutions Monitoring (SHM) Low Carbon CGG strongly positioned to address critical needs ▪ Subsurface intelligence and precise images ▪ Tailored HPC and Digital so
Slide 24: CGG's New addressable Markets are growing fast
2024 - 2026: CGG’s New addressable Markets are growing fast Addressable market 2026 ($B) CAGR 2023-26 Core 3.3 +4-6% Low Carbon ▪ CCUS 3.2 0.7 ▪ Minerals & Mining HPC & Digital Solutions ▪ HPC 3.9 1.5 +15-20% ▪ Data Hub Infrastructure Monitoring 5.4 2.2 Total Markets 7.7 +10% CGG’s addressable marke
Slide 25: Developing New Businesses at pace
Developing New Businesses at pace New Businesses revenue ($m) Strong acceleration of low carbon investment from 450 – 500 2025 – 2030 Demand for off-premise HPC solutions and complex workflow optimisation offering new opportunities to AI-driven companies 200 - 250 IOT (internet of things) ripe to t
Slide 26: Financial roadmap
4 Financial roadmap 2024 financial 2025 net cash flow 2024 - 2025 objectives improvement financial roadmap cgg.com Q4 2023 financial results 26
Slide 27: 2024 financial objectives
2024 financial objectives* Revenue expected to be aligned with 2023 • Geoscience: to continue growing driven by technology and demand for low carbon • Earth Data: after-sales to increase driven by transfer fees and favorable impact of delayed 2023 licensing rounds • Sensing and Monitoring: to be dow
Slide 28: Net Cash-Flow of ~$100m by 2025
Net Cash-Flow of ~$100m by 2025 Net cash-flow* growth ($m) ~$100m Selective increase End of vessel Productivity Core & New in organic commitments improvements Businesses Growth investments $30m 2023 2025 End of contractual Productivity gains Investments Revenue fall- vessel commitments notably in SM
Slide 29: Financial Roadmap
Minimum cash required to run operations reduced to $100m 2025 net cash generation ~$100m 2024-2025 ~$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 Refi
Slide 30: Thank you
THANK YOU cgg.com