Viridien · EURONEXT:VIRI
Viridien — Q2 2021 Earnings Presentation
25 slides from Viridien's earnings presentation, Jul 28, 2021
Slide 1: Q2 2021 Financial Results
Q2 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 Q2 2021 Financial Results 3
Slide 4: Business Overview
BUSINESS OVERVIEW 4 cgg.com 4
Slide 5: Q2 2021 Business overview
Q2 2021 Business overview ▪ Continuing demand recovery for oil & Gas is expected to drive solid demand for geoscience technologies MARKET TRENDS ▪ Green energy and mining are becoming a medium term driver ▪ IOCs’s currently prioritize production while NOCs and Independent maintain investments in exp
Slide 6: Q2 / H1 2021 Key financial highlights
Q2 / H1 2021 Key financial highlights SEGMENT REVENUE SEGMENT EBITDAS CASH FLOW $157m Segment FCF at $(3)m Q2 2021 $42m Net Cash Flow at $(56)m down 22% a margin of 26% before $(39)m of year on year refinancing fees $370m $78m Segment FCF at $57m H1 2021 Net Cash Flow at $(27)m down 22% a margin of
Slide 7: 2020 – 2021 Headcount reduction
2020 – 2021 Headcount reduction Q2 2021 Financial Results 7
Slide 8: Operational Review
OPERATIONAL REVIEW 8 cgg.com 8
Slide 9: GGR key financial indicators
GGR key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 652 Multi-Client 68% 60% 60% 38% 56% 45% 401 Geoscience 960 204 -30% 81 80 49 2019 2020 H1 2020 H1 2021 Q2 2020 Q2 2021 668 575 340 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 342 -38% 22% 12% 17% -2% 6% 6% 166
Slide 10: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG AS OF JULY. 1ST ($m) -12% 522 Internal production 460 137 External revenue 132 -15% 238 203 292 113 385 62 -8% 104 214 222 328 64 31 176 30 139 83 73 2019 2020 H1 2020 H1 2021 Q2 2020 Q2 2021 2019 2020 2021 TOTAL PRODUCTION / HEAD ($K)
Slide 11: Perceived Pricing
Imaging value map from Kimberlite 2021 survey Supplier performance vs price 90% 95% 100% 105% 110% OFFSHORE 90% High Value Disadvantage Premium Offering CGG Ranking of Perceived Benefits (Non- Price) 95% • Track record • Experience of specific Perceived Pricing processor • Turnaround time Circle Siz
Slide 12: Wide range of performance among competitors
Imaging performance ranking from Kimberlite 2021 survey Normalized on industry average 80% Wide range of performance among CGG 60% Competitor A 40% Industry Average competitors 20% Competitor B 0% Competitor C -20% Competitor D -40% -60% Competitor E -80% BEST PROBLEM OVERALL BEST ON-TIME PROVIDES R
Slide 13: Continued Innovation in OBN Imaging
Continued Innovation in OBN Imaging • Advanced forward Effective modeling to optimize Presurvey acquisition for velocity Design model and image quality vs. acquisition cost Advanced • TL-FWI for the most accurate velocity model OBN with long-offset OBN data Imaging • FWI Imaging of subsalt Technolog
Slide 14: Multi-Client key business indicators
Multi-Client key business indicators MULTI-CLIENT REVENUE ($m) MULTI-CLIENT CAPEX ($m) & PRE-FUNDING (%) Multi-Client capex Cash pre-funding rate 3.1x 1.4x Cash on cash Prefunding After-sales 575 -41% 118% 89% 63% 219 74% 44% 39% 340 166 62 213 -57% -40% 356 71 37 239 73 103 46 17 186 140 43 127 32
Slide 15: Multi-Client - worldwide footprint in proven & mature basins
Multi-Client - worldwide footprint in proven & mature basins Over 1.25 million km2 Alaska 348 km2 Q2 2021 PROJECTS Brazil – Santos/Campos Nebula N. Sea 287,916 km2 Caspian North Sea – NVG EW 4,270 (2D) km 13,122 (2D) km US Land Reprocessing projects: 54,390 km2 GoM US – Central Basin Platform 405,54
Slide 16: Equipment key financial indicators
Equipment key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 97 452 Non Oil&Gas 21% 8% 7% 5% 2% -17% 17 Downhole 30 -36% 23 Marine 9 79 8 1 Land 291 11 -8 2019 2020 H1 2020 H1 2021 Q2 2020 Q2 2021 14 50 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 161 +21% 326 5
Slide 17: Equipment overview
Equipment overview Land • Delivery of systems in China, Russia and the Middle-East • Strong activity for vibrators with over 25 Nomad delivered • First deliveries of WiNG AFUs land nodes Marine • Major contract with BGP for 18,000 GPR300 shallow water nodes • Finalized the acquisition of LISS (Low I
Slide 18: Financial Review
FINANCIAL REVIEW 18 cgg.com 18
Slide 19: Q2/H1 2021 Income Statement
Q2/H1 2021 Income Statement In million $ Q2 Q2 H1 H1 2021 2020 2021 2020 Q2 2021: Segment Revenue 157 202 370 473 Segment Revenue at $157m, down 22% IFRS 15 adjustment 14 37 10 18 IFRS Revenue 172 239 380 491 Segment EBITDAs at $42m and Adjusted* segment EBITDAs at $35m, Segment EBITDAs 42 68 78 191
Slide 20: Q2/H1 2021 Simplified Cash Flow
Q2/H1 2021 Simplified Cash Flow In million $ Q2 2021 Q2 2020 H1 2021 H1 2020 Q2 2021: Net Cash Flow at $(56)m before refinancing fees Segment FCF before change in (17) (23) (30) 14 Segment Free Cash Flow was at $(3)m, working cap Net paid cost of debt at $(30)m Change in working capital 14 15 87 36
Slide 21: Balance Sheet at June 30, 2021
Balance Sheet at June 30, 2021 • Group’s liquidity amounted to $385m including $100m undrawn RCF • Group gross debt before IFRS 16 was $1,220m and net debt was $935m • Group gross debt after IFRS 16 was $1,355m and net debt was $1,070m • $1,195m HY Bonds, 2027 • $1m Bank loans • $24m Accrued interes
Slide 22: Asset monetization and disposal of business held for sale
Asset monetization and disposal of business held for sale ▪ Headquarter building sale and lease back progressing well. Closing of transaction ASSET MONETIZATION expected in Q4 2021 ▪ Sale of GeoSoftware business progressing as planned with closing expected in Q4 SALE OF BUSINESS HELD FOR SALE 2021 B
Slide 23: 2021 Outlook
AMAZING YEARS 2021 OUTLOOK 23
Slide 24: 2021 Business outlook & revised financial objectives
2021 Business outlook & revised financial objectives ▪ Gradual recovery accelerating throughout H2 2021 GEOSCIENCE ▪ Increase in H1 NAM order intake YoY (+238%) ▪ Substantial verbal awards in major basins including GoM, Brazil and Guyana (+175% YoY) ▪ 2021 MC cash capex of $165m focused on core matu
Slide 25: Thank You
THANK YOU 25