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Viridien — CGG — FY2012 Earnings Presentation

25 slides from Viridien's earnings presentation, 2013

1. Slide 1: 4th Quarter and Full Year 2012 Financial Results

   4th Quarter and Full Year 2012 Financial Results 2013: Delivering the Transformation of the New CGG All results are presented before $48 million non recurring items related to the Fugro Geoscience acquisition and its financing, 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: 2012 A Year of Solid Financial Performance

   2012 A Year of Solid Financial Performance  Group Revenue above $3.4 billion and up 7%  Sercel above $1.2 billion  Services at $2.5 billion  Operating Income(1) at $365 million, up 78% and a 11% operating margin  EBIT(1) at $403 million, up 82%, a 12% margin  Net Income(1) at $123 million, EPS

4. Slide 4: 2010-2012: Performance Plan has delivered

   2010 – 2012 : Performance Plan has delivered  Operational Performance Improvement/Cost Reduction G&A Reduction G&A Revenue (In million $) 8.2%  Marine availability and production rates above 90% as 7.7% 6.4% targeted 5.4%  3D Fleet upgrade completed with 13.5 streamers on 3,411 average towing cap

5. Slide 5: Q4 2012 Review

   04 2012 Review Passion for Geoscience cA Cc G G

6. Slide 6: Q4 2012 Financial Overview

   Q4 2012 Financial Overview  Revenue was $938m, up 4% y-o-y and up 10% Revenue (In million $) 938 sequentially 905  Sercel at $288m, down 11% y-o-y 855  Services at $692m, up 10% y-o-y 831  Operating Income (1) was $113m, a 12% margin 787  Sercel at 28% operating margin  Services Operating marg

7. Slide 7: Q4 2012 Financial Overview

   Q4 2012 Financial Overview EBITDAs (In million $)  EBITDAs : $294m, a 31% margin (1) 272 278 294  Sercel at $93m, a 32% margin 228 212  Services at $224m, a 32% margin  Cash Flow from Operations was $454m, up 43% y-o-y  Total Capex of $160m  Industrial Capex: $71m Q4 2011 Q1 2012 Q2 Q3 Q4  R&

8. Slide 8: 2012 Review

   2012 Review Passion for Geoscience & Cc G G

9. Slide 9: 2012 Financial Overview

   2012 Financial Overview Revenue Breakdown Group Revenue  Group Revenue at $3,411m, up 7% by Activity (In million $) Sercel Marine  Sercel revenue at $1,204m, up 5% 28% Contract 3,411 29% 3,181  Services revenue at $2,457m, up 7% 2,904 Multi Client Land 14% Contract Processing 15%  Operating Inco

10. Slide 10: 2012 Financial Overview

    2012 Financial Overview  EBITDAs(1) : $1,011m, a 30% margin EBITDAs (In million $) 1,011  Sercel at $427m, a 35% margin 824 786  Services at $721m, a 29% margin  Cash Flow from Operations was $921m, up 17% y-o-y  Total Capex of $737m  Industrial Capex: $345m 2010 2011 2012  R&D Capex: $29m Ca

11. Slide 11: Balance Sheet: Capital Employed as End of December 2012

    Balance Sheet: Capital Employed as End of December 2012 906 Goodwill $2,416m Equity $4,493m MC Library $604m Fugro Impact $584m Net Fixed Assets $1,574m Minority Interests $99m Net Current Assets $784m $785m Net Debt Capital Employed $5,377m $5,377m Financing 11

12. Slide 12: Net Debt by Year-End 2012

    Net Debt by Year-End 2012 (In million) Financing Fugro Operation €975m (€414m) $2,105m €279m $1,411m $1,410m (€360m) $785m 2011 2012 Net Debt Capital Oceane 2019 Oceane 2019 2012 Fugro 2012 Proforma Net Debt Before Increase ($468m Debt Net Debt Geoscience Net Debt Fugro Impact ($524m including Compo

13. Slide 13: 2012 Operational Review

    2012 Operational Review Passion for Geoscience & Cc G G

14. Slide 14: Sercel: 2012 Operational Overview

    Sercel: 2012 Operational Overview  Total Revenue was $1,204m, Revenue Revenue/OPINC (In million $) Opinc  External Revenue at $954m, up 7% Operating Margin  36% of the total sales related to Marine Equipment 1,142 1,204 and 64% to Land Equipment 1,000  Marine sales were stable y-o-y 31% 32% 29%

15. Slide 15: Services: 2012 Operational Overview (1/2)

    Services: 2012 Operational Overview (1/2)  Marine Contract at $1,009m, up 3% y-o-y Marine Contract Revenue (In million $)  Fleet Performance • Availability and production rates above 90% and 977 1,009 on target 778 • 80% of the fleet with 12 streamers or more, a 10.5 years average age of the fleet

16. Slide 16: Services: 2012 Operational Overview (2/2)

    Services: 2012 Operational Overview (2/2) MC Revenue Multi-Client Revenue /  Multi-Client at $472m, down 5% y-o-y MC Cash Capex Cash Capex Prefunding rate (In million $)  Cash capex prefunding rate at 72% and on target 534 497 472  High amortization rate at 72%, overweighted by straightlined amor

17. Slide 17: 2013: Delivering the Transformation of the New CGG

    2013: Delivering the Transformation of the New CGG

18. Slide 18: Fugro Geoscience Acquisition: A Transforming Deal

    Fugro Geoscience Acquisition: A Transforming Deal Focused on Shareholder Value Creation May 30th Fugro announcement to divest of its marine seismic business July-September Discussions and due diligence with Fugro management September 24th CGG announces the acquisition of Fugro’s Geoscience September

19. Slide 19: Our New Organization

    Our New Organization Geology, Equipment Acquisition Geophysics & Reservoir Full range of products and clear Full range of seismic and other  Multi-Client Data Library: market leadership Onshore, geophysical methods for acquisition:  Seismic, Grav-Mag, Geological Offshore and Downhole:  Exploratio

20. Slide 20: Market Trends

    Market Trends Global Oil Demand (In million barrel per day)  E&P: high single digit growth expected, driven 95 14 by more challenging exploration zones and 90,7 12 89.8 Demand change in mb/d increased focus on production Global Oil demand 88.9 10 90 88.3 87.1 8 86.6  Geology & Geophysics’ role bec

21. Slide 21: 2013 Market Outlook

    2013 Market Outlook Geology, Equipment Acquisition Geophysics & Reservoir Marine Multi-client Stable market in a year of • Increasing demand for • New frontiers exploration transition Broadband (BroadSeisTM and and high licensing rounds BroadSourceTM) Land Equipment • Good summer season with Roberts

22. Slide 22: CGG 2013 Revenue Trends

    CGG 2013 Revenue Trends Geology, Geophysics Equipment Acquisition & Reservoir Marine acquisition Multi-client • Combined fleet: 90% booked • Multi-client program based Total Revenue expected to on: remain stable in 2013 into Q1, 80% into Q2 and 65% in Q3 - continuity of IBALT in GoM • New contracts

23. Slide 23: Delivering the Transformation of the New CGG

    Delivering the Transformation of the New CGG Building the New CGG  A new organization and clear Integration Plan already in place for full efficiency by end H1  Maintaining strong focus on cost base and Accelerating Growth… operational excellence  People, Asset and Expertise  Reporting on EBIT a

24. Slide 24: 2013 Financial Objectives

    2013 Financial Objectives In this year of transformation:  Total Industrial Capex expected to be in the range of $350 - 400 million  Multi-clients capex expected to be in the range of $350 - 400 million with a prefunding rate above 75% CGG is well positioned to deliver:  Revenue increase around 2

25. Slide 25: Thank you

    Thank you Passion for Geoscience ec G G cgg.com

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