Viridien · EURONEXT:VIRI
Viridien — CGG — Non-Deal Roadshow (June 2019)
24 slides from Viridien's roadshow presentation, June 2019
Slide 1: June 2019 Presentation
June 2019 Presentation All figures are ‘segment figures’ used for management reporting (before non-recurring charges and IFRS 15), unless stated otherwise
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements, including, without limitation, statements about CGG (“the Company”) plans, strategies, objectives and prospects. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, th
Slide 3: People, data & technology delivering geoscience leadership
People, data & technology delivering geoscience leadership Offering a comprehensive range of leading geophysical, geological and reservoir technologies, data and equipment that optimize the discovery and development of natural resources HSE EXCELLENCE PEOPLE QUALITY INNOVATION SOCIAL RESPONSIBILITY
Slide 4: Agenda
Agenda 01 CGG 2021 STRATEGY 02 BUSINESS DESCRIPTION 03 FINANCIAL REVIEW 04 CONCLUSION 4 June 2019 roadshow presentation
Slide 5: CGG 2021 Strategy
PEOPLE DATA — TECHNOLOGY CGG 2021 Strategy (ccc cgg.com Passion for Geoscience
Slide 6: Client trends: modified mindset
Client trends: modified mindset Spending Looking for Significant focus Building opportunity prioritized around new sources of on leveraging data portfolio to replace / quicker returns efficiency & technology increase reserves Faster, better-informed decisions to increase success & reduce costs and r
Slide 7: CGG: 2021 strategy
CGG: 2021 strategy TRANSITION TO FOCUS ON THREE CORE BUSINESSES AN ASSET-LIGHT MODEL Marine 3-vessel fleet in 2019 Find a strategic partner to operate the vessels by 2021 Geoscience Multi-client Equipment Land Established leader in The industry’s most Established leader in Wind down operations in 20
Slide 8: Agreement with Shearwater for high-end seismic vessels and creation of global leader in streamer technology
Agreement with Shearwater for high-end seismic vessels and creation of global leader in streamer technology • Transfer of five high-end streamer vessels jointly owned by CGG and Eidesvik Offshore ASA to Shearwater. Shearwater will assume the net liabilities associated with all vessels at the time of
Slide 9: CGG 2018 new perimeter
CGG 2018 new perimeter $1.2 Bn 26% 20% 21% REVENUE 42% REVENUE REVENUE PER BUSINESS PER REGION $556 m 22% EBITDAs 45% margin 37% 32% NET DEBT c. $0.7 Bn Geoscience North America Equipment Latin America Multi-client EAME Asia Pacific
Slide 10: CGG 2021 vision
CGG 2021 vision 45% +/- 300 bps $300m +/- 10% $1.7bn +/- 5% 30% EBITDAs margin Free Cash Flow* revenue revenue from new >15% Leverage <1x offerings Net Debt / OPINC margin EBITDAs Differentiated Strong Free Managed Growth Profitable Technology Cash Flow HSE Excellence People Innovation Quality Socia
Slide 11: Business Description
Business Description All figures are ‘segment figures’ used for management reporting (before non-recurring charges and IFRS 15), unless stated otherwise
Slide 12: GGR Segment key financial indicators
GGR Segment key financial indicators SEGMENT REVENUE ($m) SEGMENT EBITDAS ($m) & MARGIN Geoscience Multi-Client 558 460 486 +11% 61% 52% 58% 59% 59% 913 97 105 784 820 2016 2017 2018 1q 2018 1q 2019 517 383 469 SEGMENT OPINC ($m) & MARGIN 185 180 401 351 396 176 84 89 131 21% 101 91 3% 81 19% 2016 2
Slide 13: Our Geoscience ecosystem
Our Geoscience ecosystem Geological & Reservoir Services GeoSoftware Discover integrated reservoir Leaders in reservoir characterization characterization featuring Robertson for a powerful advantage at every stage SUBSURFACE IMAGING Unmatched expertise, advanced NPA Satellite Mapping Smart Data Solu
Slide 14: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG as of MAY. 1ST ($m) +6% External revenue 566 527 Internal production 496 165 132 145 132 129 285 272 298 401 351 395 31 38 101 91 2016 2017 2018 1q 2018 1q 2019 2017 2018 2019 TOTAL PRODUCTION / HEAD ($k) COMPUTING POWER (PFlops) 252 1
Slide 15: Multi-Client Data
Multi-Client Data The most recent and advanced data in the world’s key basins and frontiers • The highest quality seismic data library • Well and geologic data, leading studies • JumpStart integrated geoscience products • GeoSpec enhanced legacy data THE RIGHT DATA, IN THE RIGHT PLACE AT THE RIGHT T
Slide 16: A worldwide footprint, positioned in key basins
A worldwide footprint, positioned in key basins Alaska 348 km2 > 1 million km2 N. Sea 224,270 km2 Caspian 130 people 2,225 (2D) km 13,122 (2D) km US Land 50,477 km2 • Superior quality surveys GOM 374,032 km2 Africa Asia • Solid Investment rationale 68,345 km2 29,152 (2D) km 9,323 (2D) km Brazil • Ba
Slide 17: Multi-Client key business indicators
Multi-Client key business indicators MULTI-CLIENT REVENUE ($m) MULTI-CLIENT CAPEX ($m) & PRE-FUNDING (%) 1.3x 1.9x 2.3x After-sales Prefunding Multi-client Capex Cash pre-funding rate +10% Cash on cash 517 107% 97% 469 92% 383 84 89 216 295 269 251 223 79% 106% 272 302 62 40 200 49 42 111 35 47 2016
Slide 18: Equipment
Equipment Clear leadership with a broad and unique portfolio of leading edge technology • Full range of onshore, offshore & downhole products • Industry benchmark and market leader • Unequalled product reliability • Outstanding customer support SERCEL - AHEAD OF THE CURVE™ Sercel 508XT
Slide 19: Equipment key financial indicators
Equipment key financial indicators SEGMENT REVENUE ($m) SEGMENT EBITDAS ($m) & MARGIN 42 Land Marine Downhole Non Oil & Gas +45% 23 22% 351 12% -2% -2% -4% 10 255 35 -6 -6 -3 241 2016 2017 2018 1q 2018 1q 2019 11 8 92 19 SEGMENT OPINC ($m) & MARGIN 24 12 15 100 105 91 3% 14% 66 2 215 5 -16% -15% 1 1
Slide 20: Financial Review
Financial Review
Slide 21: Sound financial situation
Sound financial situation 1st lien HYB Q1 2019 Net Cash Flow at $44m average cost of debt 2nd lien HYB cost of debt at at 8.4% cash [Libor/Euribor + 4%] Q1 2019 strong cash flow generation cash + 8.5% PIK • Segment free cash flow from operations at $146m, significantly up • Callable at 120% in Y.1 &
Slide 22: Conclusion
Conclusion
Slide 23: Confirmation of 2019 guidance and 2021 targets
Confirmation of 2019 guidance and 2021 targets Continuing gradual market recovery Positive cash generation in Q1 2019 reflecting the strength of CGG’s core businesses and cost management focus First quarter 2019 financial performance in line with expectations Confirmation of 2019 guidance and 2021 t
Slide 24: Delivering Geoscience Leadership
DELIVERING GEOSCIENCE LEADERSHIP