Viridien · EURONEXT:VIRI

Viridien — CGG — Q2 2016 Earnings Presentation

18 slides from Viridien's earnings presentation, 2016

1. Slide 1: Q2 2016 Financial Results

   Q2 2016 Financial Results All results are presented before Non-Recurring Charges & write-off, 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: Q2 2016 Financial highlights

   Q2 2016 Financial highlights  Market conditions remain very weak and challenging with early signs of stabilization  Q2 results driven by sustained GGR performance  Revenue at $290m, down 7% q-o-q and Operating Income at $(22)m  Strong execution in our operations and of our Transformation Plan 

4. Slide 4: Q2 2016 Operational highlights

   Q2 2016 Operational highlights  Multi-Client  66% of fleet dedicated to multi-client production in Q2, particularly active in North Sea, Brazil and Ireland  Fleet dedicated to multi-client activity expected to be c.75% in Q3 and c.35% in Q4  SI & Reservoir  On-time delivery of Trois, the final

5. Slide 5: Q2 Operational Review

   Q2 Operational Review Passion for Geoscience « CGG

6. Slide 6: GGR: Solid Multi-Client revenue and SIR performance

   GGR: Solid Multi-Client revenue and SIR performance GGR Revenue  Total revenue at $196m, up 20% q-o-q MC Revenue (In million $) SI & Reservoir  Multi-Client at $96m, up 74% q-o-q 257  Prefunding sales at $77.9m, up 65% 196  High cash prefunding rate at 84% vs 67% in Q1 2016 137 164 142  After-s

7. Slide 7: Equipment: Volumes at historical low level

   Equipment: Volumes at historical low level Revenue (In million $)  Total sales at $44m, down (39)% q-o-q Land Equipment Marine Equipment  Some orders being delayed 107  64% Land and 36% Marine equipment 26 73  Very low internal sales at $8m 21  EBITDAs at $(9)m 81 44 15 52  Operating Income at

8. Slide 8: Contractual Data Acquisition: Lower Marine weight due to higher fleet allocation to Multi-Client

   Contractual Data Acquisition: Lower Marine weight due to higher fleet allocation to Multi-Client  Total revenue at $59m, down (34)% q-o-q Contractual Data Acquisition Revenue (In million $) Marine revenue at $22m, down (62)% q-o-q Land & MP  Marine  Only 34% of our five-vessel fleet dedicated to

9. Slide 9: Non-Operated Resources (N.O.R)

   Non-Operated Resources (N.O.R)  EBITDAs at $(5)m Non-Operated Resources OPINC (In million $)  Operating Income at $(22)m Q2 2015 (1) Q1 2016 Q2 2016  Amortization of excess streamers and lay-up costs (6)  Owned vessels cold-stacked in Dunkirk provide (27) (22) high flexibility and ability to ada

10. Slide 10: Financial Review

    Financial Review Passion for Geoscience « CGG

11. Slide 11: 2016 First Half P&L

    2016 First Half P&L In Million $ First Half 2016 Q1 2016 Q2 2016 Total Revenue 603 313 290 Group EBITDAs excluding NOR 146 37 109 NOR (15) (10) (5) Group EBITDAs 131 27 104 Group OPINC excluding NOR (55) (54.7) 0.2 NOR (49) (27) (22) Group OPINC (104) (81) (22) Equity from Investments 0 5 (5) Non-re

12. Slide 12: H1 2016: Positive Free Cash Flow generation

    H1 2016: Positive Free Cash Flow generation EBITDAs (In million $)  EBITDAs at $131m, down (49)% y-o-y 257  Operating Cash Flow at $372m, up 71% y-o-y 131 104  Not including $(88)m non-recurring payments related to the Transformation Plan 24.7% 21.7% 27 35.8% 8.7%  Capex at $203m, down (10)% y-o

13. Slide 13: Solid liquidity and stable leverage ratio

    Solid liquidity and stable leverage ratio Liquidity by end June  Group Liquidity (available cash plus undrawn RCF) at $745m  US & French RCF 37% drawn by end of June RCF Covenant Headroom  Group Net Debt at $2,150m as of June 2016 from $2,102m by March end  Leverage ratio (Net Debt over LTM EBIT

14. Slide 14: Conclusion

    Conclusion (coc cgg.com Passion for Geoscience

15. Slide 15: Best-in-class Geoscience: our unique capabilities

    Best-in-class Geoscience: our unique capabilities GLOBAL Plate Paleo-Earth Petroleum systems reconstruction modellng knowledgebase Founded on our unique & economics geoscience capabilities and leadership in each specialty, we REGIONAL deliver best-in-class products, Interpretative seismic data compi

16. Slide 16: Focused on operational excellence, execution of our Transformation Plan and cash generation

    Focused on operational excellence, execution of our Transformation Plan and cash generation  Market remains challenging with very low pricing and volumes  Persistence of uncertainty and low pricing in 2016  Unsustainable current levels  But it seems to be stabilizing with early signs of a change

17. Slide 17: Thank you

    Thank you (ccc Visit our website at cgg.com Passion for Geoscience

18. Slide 18: Debt profile: No major debt instalment before 2019

    Debt profile: No major debt instalment before 2019  €/$ closing rate at 1.11  Average Maturity, excluding RCF, at 4.0 years as of end June 2016  Average cost of debt, excluding RCF, at 5.4% 18

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