Viridien · EURONEXT:VIRI
Viridien — CGG — Q4 2022 Earnings Presentation
21 slides from Viridien's earnings presentation, March 2023
Slide 1: Q4 & FY 2022 Financial Results
Q4 & FY 2022 FINANCIAL RESULTS March, 2023 cgg.com
Slide 2: Our sustainability contribution and ESG ratings
Our sustainability contribution and ESG ratings Energy companies CO2 Energy transition footprint reduction More accurate drilling locations to avoid Supporting the transition to a lower hazards and optimally target reservoirs carbon future #1-3 among the Oilfield Services Earth observation & Energy
Slide 3: Q4 & FY 2022 Key segment financial highlights
Q4 & FY 2022 Key segment financial highlights ADJUSTED REVENUE NET CASH FLOW EBITDAS $319 million $159 million $62 million Q4 2022 up 6% y-o-y a high 50% margin including $63 million proceeds from the sale of the US land seismic library $928 million $395 million $(3) million FY 2022 up 3% pro-forma*
Slide 4: 2022 A year of transition, volatility and investment into the future
2022 A year of transition, volatility and investment into the future Sanctions on Russia High revenue volatility (50)m$ Segment Revenue impact (30)m$ Segment EBITDAs impact Q1-22 / Q4-21 : -50% Q2 / Q1 : +58% Q3 / Q2 : -10% Q4 / Q3 : +52% Creation of new HPC & Cloud Sale of the US Land solutions bus
Slide 5: 2022 Beyond the Core main achievements
2022 Beyond the Core main achievements Digital • HPC & Cloud test pilots, building up opportunities for 2023 • Launch of construction of a new large UK HPC center • Partnership with 2CRSI for joint business development & sales • Several Data Transformation pilots and full-scale project with BP Energ
Slide 6: Data, Digital and Energy Transition key financial indicators
Data, Digital and Energy Transition key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 60% 56% 62% 69% 68% 668 Earth Data 659 406 Geoscience 402 330 +21% 142 147 545 340 375 2020 2021 2022 Q4 2021 Q42022 276 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 12% 18% 29% 3
Slide 7: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG AS OF JANUARY 31 ($m) 418 394 +1% 398 Internal production 90 External revenue +16% 125 115 +6% 328 121 -17% 231 269 284 100 200 32 31 89 69 2020 2021* 2022 Q4 2021* Q4 2022 2022 2023 TOTAL PRODUCTION / HEAD ($K) COMPUTING POWER (PFLOPS
Slide 8: Geoscience Q4 operational highlights
Geoscience Q4 operational highlights Subsurface Imaging Solid backlog going into 2023 driven by OBN data and high-end processing technology External order intake value up 26% year-on-year, with large projects started in Q4 Quarterly performance impacted by changes in project delivery timeline
Slide 9: Geoscience continue to advance in FWI technology
Geoscience continue to advance in FWI technology 0m 3D FWI (v) dv/v @ water bottom Well head Best in class results around the world for imaging and characterization of reservoirs 3500m Sea floor Reservoir installation • Most advanced seismic resolution pipeline • More accurate physics for better foc
Slide 10: Earth Data key business indicators
Earth Data key business indicators EDA REVENUE ($m) EDA CAPEX ($m) & PRE-FUNDING (%) 1.4x 1.6x 1.8x Cash on cash Prefunding After-sales Multi-Client capex Cash pre-funding rate 89% 89% 66% 158% 264% 375 340 -19% +36% 276 136 213 145 150 114 28% 239 67 205 239 59 168 127 126 55 78 37 25 2020 2021 202
Slide 11: Earth Data Q4 operational highlights
Earth Data Q4 operational highlights Sales • Q4 prefunding revenue at $67m and after-sales at $78m • H2 prefunding revenue at $86m and after-sales at $121m • Q4 highlighted by strong activity in US GoM and Norway South America • Foz do Amazonas II* acquisition started in Dec 2022 • Antares acquisiti
Slide 12: Integrated Earth Data multi-client project in SE Arizona to support mining industry
Integrated Earth Data multi-client project in SE Arizona to support mining industry An integrated database with industry support • Multi-disciplinary data: multi-physics, satellite imagery, multispectral, well and geological data • Over 270,000 line-kilometers of new airborne aeromagnetic, radiometr
Slide 13: Sensing & Monitoring Q4 operational highlights
Sensing & Monitoring Q4 operational highlights Oil & Gas Seismic land & Land marine solutions • Strong deliveries in North America and North Africa for imaging subsurface • New deliveries of WiNG QuietSeis wireless node Marine • Finalized delivery of a major GPR300 OBN order Structural Monitoring •
Slide 14: Sensing & Monitoring (SMO) key financial indicators
Sensing & Monitoring (SMO) key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 8% 11% 6% 16% 20% 357 39 BTC +23% 17 Downhole 15 -24% 23 291 16 20 Marine 15 11 14 269 101 Land 33 50 19 2020 2021 2022 Q4 2021 Q4 2022 72 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) +
Slide 15: Income Statement Q4 & FY 2022
Income Statement Q4 & FY 2022 In million $ Q4 2022 Q4 2021 2022 2021 2022 Segment Revenue 319 301 928 941 • Segment Revenue at $928m, IFRS 15 adjustment (51) 170 (1) 121 up 3% proforma year-on-year IFRS Revenue 268 471 927 1,062 193 154 434 344 • Segment EBITDAs at $434m, up 26% Segment EBITDAs y-o-
Slide 16: Simplified Cash Flow Q4 & 2022
Simplified Cash Flow Q4 & 2022 In million $ Q4 2022 Q4 2021 2022 2021 Segment Operating Cash Flow before change in working 164 148 398 339 Key Acquisitions & Disposals capital Change in working capital & (61) (46) (52) (2) • Acquisition of Geocomp provisions & ION Software $(35)m Capex (50) (55) (26
Slide 17: Balance Sheet at the end of 2022
Balance Sheet at the end of 2022 As of December 31, 2022 Group liquidity amounted to $398m, including: $298m cash liquidity $100m undrawn RCF Group gross debt before IFRS 16 was $1,157m and net debt was $859m Group gross debt after IFRS 16 was $1,249m and net debt was $951m $1,124m HY Bonds, due 202
Slide 18: 2023 Business perspectives
2023 Business perspectives Backlog of $442m at the end of January, up 44% year-on-year Geoscience (GEO) Continued gradual recovery, driven by increasing offshore activity increase, green field development and infrastructure led exploration in complex sub-surface areas Earth Data (EDA) Increasing
Slide 19: 2023 Financial objectives
2023 Financial objectives 2023 segment revenue is expected to increase by around 15% to 20% primarily driven by SMO revenue growth Beyond the Core businesses expected to continue to grow significantly and to represent TOP LINE above 10% of CGG 2023 segment revenue CGG is anticipating quarterly
Slide 20: Thank you
THANK YOU cgg.com
Slide 21: Earth Data worldwide footprint in proven & mature basins
Earth Data worldwide footprint in proven & mature basins ~ 1.3 million km2 Q4 2022 PROJECTS Brazil – Foz II (TGS) N. Sea 321,267 km2 Caspian North Sea – NVG EW 4,270 (2D) km 19,865 (2D) km GoM 406,998 km2 GOM – StagSeis Repro Africa Asia 72,000 km2 19,216 (2D) km 29,152 (2D) km Brazil – Foz / Foz (p