Viridien · EURONEXT:VIRI
Viridien — Q3 2021 Earnings Presentation
25 slides from Viridien's earnings presentation, Nov 3, 2021
Slide 1: Q3 2021 Financial Results
Q3 2021 FINANCIAL RESULTS cgg.com 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 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 Business overview 02 Operational review 03 Financial review 04 2021 Business outlook & Financial objectives Q3 2021 Financial Results 3
Slide 4: Business Overview
BUSINESS OVERVIEW 4 cgg.com 4
Slide 5: Q3 2021 Business overview
Q3 2021 Business overview Progressive recovery in demand for our technologies from IOCs and large independents MARKET TRENDS Continued healthy commercial discussions around digitalization opportunities Increased visibility for land equipment demand in the Middle East and North Africa A solid
Slide 6: Q3 / 9m 2021 Key financial highlights
Q3 / 9m 2021 Key financial highlights SEGMENT REVENUE SEGMENT EBITDAS CASH FLOW $270m $118m Segment FCF at $2m Q3 2021 up 35% y-o-y up 126% y-o-y up from $(59)m last year a margin of 44% $640m $195m Segment FCF at $59m 9m 2021 down 5% y-o-y down (20)% y-o-y up from $(9)m last year a margin of 31% Li
Slide 7: Operational Review
OPERATIONAL REVIEW 7 cgg.com 7
Slide 8: GGR key financial indicators
GGR key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 652 Multi-Client 68% 60% 59% 49% 57% 63% 401 Geoscience 289 960 187 -30% 85 107 2019 2020 9m 2020 9m 2021 Q3 2020 Q3 2021 668 575 492 -23% 340 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 379 22% 18% 12% 13% 7%
Slide 9: Geoscience key business indicators
Geoscience key business indicators BACKLOG AS OF OCT. 1ST ($m) TOTAL PRODUCTION ($m) -12% (EXCLUDING GEOSOFTWARE) 522 Internal production 460 -11% 137 External revenue 132 349 311 96 -3% 95 242 385 111 205 328 107 189 253 216 34 31 77 77 2019 2020 9m 2020 9m 2021 Q3 2020 Q3 2021 2019 2020 2021 TOTAL
Slide 10: Geoscience operational highlights
Geoscience operational highlights Subsurface Imaging • Market recovery is accelerating, led by awards of large Ocean Higher definition velocity Bottom Node (OBN) and streamer projects in GoM and Brazil contrast in the model refines the reservoir • Continued investment in innovation and High Performa
Slide 11: Geoscience order intake
Geoscience order intake Subsurface Imaging Beyond the Core Order Intake Order Intake Land • Market recovery in Subsurface 6% Imaging is accelerating in every +18% region driven by high-end Seabed marine and Seabed (OBN & 34% OBC) projects Marine 60% • Beyond the Core order intake shows significant g
Slide 12: Advanced FWI algorithm providing superior image resolution
Advanced FWI algorithm providing superior image resolution 100Hz TLFWI model • Advanced FWI algorithm Advanced to invert velocity and 100Hz FWI Image FWI Imaging image from raw field data Technology in one-go 1 km • Drilling locations can be Step-change more accurately selected Image to avoid hazard
Slide 13: Critical insight for mine waste management
Critical insight for mine waste management Aging tailings storage facilities (TSFs) represent an ongoing liability for mine operators Recent high-profile failures and new global regulations emphasize the need for TSF monitoring Landmark project for a global mining company using Tailings dam fa
Slide 14: Multi-Client key business indicators
Multi-Client key business indicators MULTI-CLIENT REVENUE ($m) MULTI-CLIENT CAPEX ($m) & PRE-FUNDING (%) Multi-Client capex Cash pre-funding rate 3.1x 1.4x Cash on cash Prefunding After-sales 575 -41% 118% 89% 67% 219 72% 70% 103% 340 -32% 239 +25% 213 163 92 239 356 143 73 186 198 58 92 39 59 131 5
Slide 15: Multi-Client operational highlights
Multi-Client operational highlights Quarterly sales • Q3 prefunding revenue at $59M and after-sales at $32M Higher definition velocity contrast in the model refines the reservoir Brazil Gas/Oil contact • Secured major funding for the ongoing Nebula program • Awarded the Aluben Sparse Node permit for
Slide 16: Multi-Client: worldwide footprint in proven & mature basins
Multi-Client: worldwide footprint in proven & mature basins Over 1.25 million km2 of seismic data Alaska Q3 2021 PROJECTS 348 km2 Brazil – Santos/Campos Nebula N. Sea Caspian 291,816 km2 4,270 (2D) km 13,122 (2D) km North Sea – NVG EW US Land 54,390 km2 Land – Central Basin Platform GoM 405,541 km2
Slide 17: Equipment key financial indicators
Equipment key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 97 452 Non Oil&Gas 21% 8% 5% 9% 0% 17% 17 Downhole 30 -36% 23 25 Marine 17 9 79 Land 291 0 11 262 2019 2020 9m 2020 9m 2021 Q3 2020 Q3 2021 14 +43% 9 50 10 183 74 ADJUSTED SEGMENT OPINC ($m) & MARGI
Slide 18: Equipment operational highlights
Equipment operational highlights Land Strong deliveries of systems in various geographies (China, Russia, North Africa, India) Strong interest for Quietseis™ with significant orders in both cable and nodal solutions Marine First deliveries of the major GPR300 order on schedule Official launc
Slide 19: Financial Review
FINANCIAL REVIEW 19 cgg.com 19
Slide 20: Q3 / 9 months 2021 Income Statement
Q3 / 9 months 2021 Income Statement In million $ Q3 Q3 9m 9m 2021 2020 2021 2020 Segment Revenue 270 199 640 672 Q3 2021: IFRS 15 adjustment (60) (21) (49) (3) Segment Revenue at $270m, IFRS Revenue 210 178 591 669 up 35% year-on-year Segment EBITDAs 118 52 195 243 Segment EBITDAs at $118m, Adjusted
Slide 21: Q3 / 9 months 2021 Simplified Cash Flow
Q3 / 9 months 2021 Simplified Cash Flow Q3 2021: In million $ Q3 2021 Q3 2020 9m 2021 9m 2020 Net Cash Flow at $(34)m Segment Free Cash Flow at $2m, Segment FCF before change in including $(48)m change in working 50 (22) 20 (8) capital working cap Cash Cost of debt and Lease repayments Change in wor
Slide 22: Balance Sheet at September 30, 2021
Balance Sheet at September 30, 2021 • Group’s liquidity amounted to $340m including $100m undrawn RCF Goodwill • Group gross debt before IFRS 16 was $1,226m and net debt was $987m • Group gross debt after IFRS 16 was $1,353m and net debt was $1,113m • $1,177m HY Bonds, 2027 • $1m Bank loans • $48m A
Slide 23: 2021 Outlook
AMAZING YEARS 2021 OUTLOOK
Slide 24: 2021 Business outlook & revised financial objectives
2021 Business outlook & revised financial objectives Gradual recovery expected to continue in Q4 and going forward GEOSCIENCE Solid activity levels worldwide 2021 MC cash capex of $168m focused on core mature basins with Q4 MC capex ~$40m MULTI-CLIENT 2021 MC prefunding rate expected above 7
Slide 25: Thank You
THANK YOU 25