Slide 1: CGG Financial Presentation May 2021
CGG FINANCIAL PRESENTATION MAY 2021 cgg.com
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 COMPANY OVERVIEW 02 BUSINESS HIGHLIGHTS 03 FINANCIAL REVIEW 04 CONCLUSION Maycgg.com 2021 Financial Presentation 3
Slide 4: Company Overview
COMPANY OVERVIEW 4 cgg.com 4
Slide 5: CGG: A People, Data and Technology Company
CGG: A People, Data and Technology Company Asset Light Company… …With Three Core Businesses (1) GGR Leveraging Exceptional People… Geoscience #1 in technology Breadth and depth of expertise Established market and technology 34% driving innovation and providing leader in subsurface imaging, geology,
Slide 6: Sector Trends Play to CGG's Competitive Strengths
Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 1 Brent Oil Price Historical Evolution and Forecast ($/bbl) vs. Global Upstream Capex Spend (1) ($bn) 2019 2020 2021 2022 Improved medium term outlook $338bn $243bn $252bn $288bn with consensus forecasts Constructive Medi
Slide 7: Sector Trends Play to CGG's Competitive Strengths
Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 3 Global Upstream Capex vs. CGG’s Geoscience Revenue Split Industry Capex (1) CGG’s Geoscience Revenue 2017 2020 2017 2020 75% of CGG’s geoscience 11% 9% Increasing Focus on revenue generated from Reservoir Development re
Slide 8: Sector Leading ESG Credentials
Sector Leading ESG Credentials OUR CARBON NEUTRALITY STATEMENT KEY ENVIRONMENTAL TARGETS We pledge to be carbon neutral by 2050 GHG 50% reduction by emissions 2020: 2 K tons 2030 By lowering our direct emissions (scope 1 & 2) Scope 1 (1) 100% by 2050 to the lowest practical level and by bridging the
Slide 9: Business Highlights
BUSINESS HIGHLIGHTS 9 cgg.com 9
Slide 10: Key Company Highlights
Key Company Highlights 1 Asset-Light Business, Focused on Differentiated Technologies, with a Strategic Fit with Secular Industry Trends 2 Leading and Resilient Market Position with Strong Cash Flow Generation Through the Cycle 3 Judicious Balance Sheet and Liability Management with Ample Liquidity
Slide 11: Imaging Technology Breakthroughs Drive Business Value
1 CGG Offers Differentiated High Value Additive Service Legacy Technology New Technology Water depth: c.1.5km Reservoir level, c.9-10km Imaging Technology Breakthroughs Drive Business Value May 2021 Financial Presentation 11
Slide 12: Geoscience: Proactive Pivot towards Development & Production
1 Geoscience: Proactive Pivot towards Development & Production Majority Exposure to Stable Progressive Shift in Revenue to Resilient Operations Part of Upstream Value Chain 2017 2018 2019 CGG’s Geoscience business Reservoir 7% 6% 6% is increasingly focused on optimisation, 14% 13% 17% the Reservoi
Slide 13: Geoscience: Industry Leading Algorithms and High Performance Computing
1 Geoscience: Industry Leading Algorithms and High Performance Computing Technology to Optimize High Performance Computing… …Harnessed by Production & Reservoir Development Exceptional People High Performance Computing up five-fold since 2017 Technical staff comprised of 131% 54% 7% 70% post gra
Slide 14: Multi-Client: Extensive Presence in Mature, Established Regions
1 Multi-Client: Extensive Presence in Mature, Established Regions N. Sea +34% since 2018 Leading coverage totaling > 1.2 million km2 of 3D data 277k km2 – By comparison, TGS’ and PGS’ libraries cover c.1.0 million km2 and c.850k km2 of 3D data respectively +15% since GOM Extensive contiguous dat
Slide 15: Multi-Client: CGG Brazil Pre-Salt Ongoing and Future Programs
1 Multi-Client: CGG Brazil Pre-Salt Ongoing and Future Programs Nebula Espirito Santo III Reprocessing Complete Espirito Santo IV Final Volumes: Available Polaris Final Volumes: Available Aluben Sparse Nodes IBAMA: Permit pending Nebula Area E IBAMA: Permit pending Nebula – Currently Acquiring Esmer
Slide 16: Equipment: Well-Established and Differentiated Market Position
1 Equipment: Well-Established and Differentiated Market Position Complete Portfolio of EquipmentTargeting Key Regions and NOC Projects Technology and Market Leadership Clear leadership with largest market share at c.46% (1) Land & TZ The largest installed base, creating a competitive advantage a
Slide 17: Growing Market Share Across All Segments, Even Through the 2020 Crisis
2 Growing Market Share Across All Segments, Even Through the 2020 Crisis Geoscience Multi-Client Equipment 15% 16% 15% 18% 21% 24% 27% 25% 30% 4% 4% 4% 5% 6% 6% 5% 6% 27% 7% 5% 13% 28% 21% 8% 35% 34% 34% 19% 15% 14% 30% 30% 26% 44% 43% 46% 41% 40% 41% 22% 23% 24% 2018 2019 2020 2018 2019 2020 2018 2
Slide 18: Debt Refinancing: the last step of the normalization journey
3 Debt Refinancing: the last step of the normalization journey Successful debt refinancing of $1.2Bn equivalent in EUR and USD New Debt in m$ (as of April 1, 2021) • Extension of maturities to 6 years (2027) 1 187 • Blended cost of debt of 8.17% and elimination of PIK interest • Non-Call period of 3
Slide 19: Balance Sheet at March 31, 2021
3 Balance Sheet at March 31, 2021 • Group’s liquidity amounted to $407m EQUITY GOODWILL $1.19bn $1.09bn & MINORITY INTERESTS • Group gross debt before IFRS 16 was $1,252m and net debt was $845m NON-CURRENT MC $0.15bn LIBRARY $0.49bn LIABILITIES FIXED $0.41bn • Group gross debt after IFRS 16 ASSETS D
Slide 20: Tangible Steps in Diversifying End-Markets, Including Energy Transition
4 Tangible Steps in Diversifying End-Markets, Including Energy Transition Digital Infrastructure Energy Earth Geosciences Monitoring Transition Observation Ability to redeploy existing people, data, and technology towards new end markets Core competencies in application of technology, science and ma
Slide 21: Beyond the core: recent projects & initiatives
4 Beyond the core: recent projects & initiatives European Space Agency’s plastic pollution monitoring study CGG’s Satellite Mapping innovative high-resolution hydrocarbon seeps study commissioned by the Norwegian Petroleum Directorate Strategic agreement with dCarbonX in the subsurface assessment of
Slide 22: Conclusion
CONCLUSION 22 cgg.com 22
Slide 23: 2021 Business & financial objectives confirmed
2021 Business & financial objectives confirmed Progressive quarterly recovery starting Q2 and accelerating during H2 2021 GEOSCIENCE Solid demand for OBN imaging technologies Sustained activity with large NOCs 2021 MC cash capex of $165m focused on core mature basins with Q2 capex around $45
Slide 24: Thank You
THANK YOU cgg.com