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Viridien — CGG — Q3 2014 Earnings Presentation

16 slides from Viridien's earnings presentation, Nov 6, 2014

  1. Slide 1: Third Quarter 2014 Results

    Third Quarter 2014 Results November 6th, 2014 Q3 2013, Q1 2014, Q2 2014 and Q3 2014 are presented before Non-Recurring Charges (NRC), unless stated otherwise

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 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,

  3. Slide 3: Key messages

    Key messages Market overview  Market conditions deteriorating further in Q3  Global pressure on Marine pricing and utilization  Reduction in Equipment demand, mainly in Marine  Good market resilience in Geosciences CGG achievements  Intensified and accelerated Transformation Plan on track  Res

  4. Slide 4: Resilient Third Quarter 2014

    Resilient Third Quarter 2014  Group Revenue at $694m, stable sequentially  Group OPINC at $51m up 13% sequentially with a 7.3% margin  Equipment margin at 16%,  Acquisition at break-even,  GGR Margin at 24%  EBIT at $40m and at $(24)m after Non-Recurring Charges related to the Transformation P

  5. Slide 5: Transformation Plan on track

    Transformation Plan on track Acquisition  Accelerating the right-sizing of the fleet from  Marine 3D fleet already reduced to 13 vessels 18 to 13 vessels as soon as 2014  North American Land contract operations sale  Sale completed on September 30 to Geokinetics  Airborne restructuring  Effect

  6. Slide 6: Managing the Balance Sheet

    Managing the Balance Sheet Unsecured HYB Debt Maturity extension Convertible Bond (Debt Component) Convertible Bond (Equity Component)  April refinancing operations with the issuance of two High Yield Bonds Nordea Credit Facility & Vendor Loan 69 650  First major debt installment pushed 55 503 500

  7. Slide 7: 2014 Q3 Operational Review

    2014 Q3 Operational Review Passion for Geoscience « CG G

  8. Slide 8: Equipment: Impacted by low volume and unfavorable product mix

    Equipment: Impacted by low volume and unfavorable product mix  Total sales were $180m, down 8% q-to-q Land Equipment Marine Equipment Revenue (In million $)  Lower sales due to weak market conditions 223 from seismic contractors and lower internal 206 196 sales 180 34% • CGG fleet reduced 51% 38%

  9. Slide 9: Acquisition: Difficult market conditions

    Acquisition: Difficult market conditions Land & Airborne Marine Acquisition Revenue  Acquisition revenue at $418m, down 13% q-to-q 568 559 (In million $)  Marine revenue at $358m, down 12% q-to-q 106 106 481 74 418  44% of the fleet dedicated to multi-client 60 programs 462 453 407 358  Land & A

  10. Slide 10: GGR: Increased profitability across the board

    GGR: Increased profitability across the board MC Revenue GGR Revenue SI & Reservoir (In million $)  GGR revenue at $305m, up 2% q-to-q  Multi-Client at $133m, up 4% sequentially 298 206 305 300  Prefunding revenue at $104m, up 13% 290  Amortization rate at 66%, driven by high 168 163 172 172 pre

  11. Slide 11: Balance Sheet management

    Balance Sheet management Passion for Geoscience « CG G

  12. Slide 12: Preserving Cash generation

    Preserving Cash generation (In million US$) EBITDAs*  Q3 EBITDA at $208m, sequentially up 7%, with a 30% margin  Q3 Operational Cash Flow of $136m  Q3 Industrial Capex at $34m, sequentially down 39% 274 189 194 208  Multi-client cash Capex revised up to $550m-$600m in 2014 with offshore Gabon mu

  13. Slide 13: Well balanced Capital Employed

    Well balanced Capital Employed  $6.0bn Capital Employed financed by  Equity ratio at 77% as at September-end GGR Goodwill  Cash at $252m as at September-end  82% of the Net Debt to be repaid only after GGR Equity & Minority January 1st, 2019 Other GGR $3.1bn Interests $3.4bn MC  $2.1bn Data Acq

  14. Slide 14: Conclusion

    Conclusion Passion for Geoscience « CG G

  15. Slide 15: 2014 Management priorities

    2014 Management priorities  Resilient to deteriorated market conditions that could last longer  Still oversupply in Marine data acquisition. Industrial discipline remains critical  However good opportunities in GGR and Multi-Client  Resilient Equipment profitability in a low volume environment 

  16. Slide 16: Thank you

    Passion for Geoscience ec G G cgg.com

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