Slide 1: Q4 - FY 2020 Financial Results & 2021 Perspectives
Q4 - FY 2020 FINANCIAL RESULTS & 2021 PERSPECTIVES 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 Market trends 02 Operational review 03 Financial review 04 2021 business outlook & Financial objectives Q4 & FY 2020 Financial Results 3
Slide 4: Market Trends
MARKET TRENDS 4 cgg.com All figures are ‘segment figures’ used for management reporting (before non-recurring charges and IFRS 15), unless stated otherwise 4
Slide 5: 2020 was a year of extremely difficult business environment
2020 was a year of extremely difficult business environment Covid-19 pandemic An energy shock Rapid drop in demand for oil Strong pressure on oil price E&P Capex down by c.(30)% in 2020 Oil & gas IOCs and Independents reshaping and going through major reorganizations companies significantl
Slide 6: CGG's response to 2020 crisis
CGG’s response to 2020 crisis CGG successfully managed the health & safety CGG maintained its technology leadership of its employees while preserving business continuity position and focus on development & production • Geoscience more resilient, revenues down only 15% Working in Office Working from
Slide 7: Operational Review
OPERATIONAL REVIEW 7 cgg.com All figures are ‘segment figures’ used for management reporting (before non-recurring charges and IFRS 15), unless stated otherwise 7
Slide 8: Q4 & FY 2020 key highlights
Q4 & FY 2020 key highlights ADJUSTED SEGMENT SEGMENT REVENUE CASH FLOW EBITDAS Segment FCF $(29)m $283m $122m Q4 2020 Net Cash Flow $(95)m before $(4)m of including $(21)m NRC and severance cash costs, $(88)m negative change in 43% margin working capital Segment FCF $(39)m $955m $402m FY 2020 Net Ca
Slide 9: GGR key financial indicators
GGR key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 652 558 Multi-Client 401 * 69% Geoscience 63% 960 68% 913 61% 60% 189 -30% 111* 2018 2019 2020 Q4 2019 Q4 2020 668 517 575 * excluding $(3)m non-recurring charges in Q4 & and $(39)m in 2020 340 ADJUSTED SEGM
Slide 10: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG AS OF JAN. 1ST ($m) 527 -12% 522 Internal production 460 132 137 External revenue 132 -19% 287 137 111 240 246 395 385 328 31 35 106 75 2018 2019 2020 Q4 2019 Q4 2020 2018 2019 2020 TOTAL PRODUCTION / HEAD ($k) COMPUTING POWER (PFLOPS)
Slide 11: Geoscience operational highlights
Geoscience operational highlights Other 9% Continued adaptation to lower demand 75% of Geoscience revenue dedicated to Reservoir Development and Production 6% Production teams adapted to new level of activity TOP 5 COMPETITORS 3% while preserving a high level of customer service and real-time in
Slide 12: Cloud masking of satellite imagery with deep learning
Cloud masking of satellite imagery with deep learning Satellite imagery Benchmark Deep learning Fewer false positives over snow Fewer false positives over land/urban areas Improved performance over thick cloud Q4 & FY 2020 Financial Results 12
Slide 13: Barents Sea gas cloud imaging
Takehavet gas clouds Barents Sea gas cloud imaging WELL Well 16km 1500m/s 4000m/s 20km IMPROVED IMPROVED FAULT IMAGING REFLECTIVITY QRTM (40Hz) TL-QFWI* velocity model (40Hz) TL-QFWI image (40Hz) Q4 & FY 2020 Financial Results 13
Slide 14: Multi-Client key business indicators
Multi-Client key business indicators MULTI-CLIENT REVENUE ($m) MULTI-CLIENT CAPEX ($m) & PRE-FUNDING (%) 2.3x 3.1x 1.4x Prefunding After-sales Multi-Client capex Cash pre-funding rate 191% 171% Cash on cash 575 -41% 118% 518 97% 89% 219 -40% 216 340 168 101 223 239 356 213 62 186 32 302 70 41 127 10
Slide 15: A successful strategy to build a worldwide multi-client footprint in mature basins
A successful strategy to build a worldwide multi-client footprint in mature basins > 1.2 million km2 Leading coverage + 70,300 km2 N. Sea Little exposure to recent US regulatory + 34% since 2018 Alaska 276,769 km2 announcements 348 km2 4,270 (2D) km Asia - US Onshore, no book value exposed to US Lan
Slide 16: Digitalization solutions enrich multi-client offers
Digitalization solutions enrich multi-client offers Client Portal GeoVerse GeoWells Advanced multi-discipline well Portal deployed A global integrated geological data available in GOM (Mexico), to facilitate clients’ access database ready for licensing Brazil pre-salt basins, and Norway Q4 & FY 2020
Slide 17: Equipment key financial indicators
Equipment key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 452 Non Oil&Gas 17 Downhole 21% 19% 12% 13% 30 -36% Marine 8% 351 23 * Land 42 97 23 14 10 79 291 2018 2019 2020 Q4 2019 Q4 2020 35 11 * Excluding $(1)m non-recurring charges in 2020 14 92 50 ADJUST
Slide 18: Equipment activity supported by strong demand from the Middle East
Equipment activity supported by strong demand from the Middle East Land Over 100 thousand channels delivered in Q4 mainly to North Africa and the Middle East Delivery of a WiNG system in Latin America Orders in Q4 included mega-crews with 508XT systems, geophones and Nomad vibrators, as well as spar
Slide 19: Financial Review
FINANCIAL REVIEW 19 cgg.com 19
Slide 20: Q4 2020 and FY 2020 Income Statement
Q4 2020 and FY 2020 Income Statement Q4 Q4 FY FY In million $ 2020 2019 2020 2019 Segment Revenue 283 396 955 1,400 FY 2020 Segment Revenue at $955m, IFRS 15 adjustment (66) 30 (69) (44) down 32% year-on-year IFRS Revenue 217 426 886 1,356 Segment EBITDAs at $361m Segment EBITDAs 118 206 361 721 Adj
Slide 21: Q4 / FY 2020 Simplified Cash Flow
Q4 / FY 2020 Simplified Cash Flow In million $ FY 2020 FY 2019 Q4 2020 Q4 2019 2020 Net Cash Flow at $(247)m Segment FCF before change in working cap 50 433 59 144 Segment Free Cash Flow at $(39)m Segment Free Cash Flow was positive at $50m Change in working capital (89) 58 (88) (20) before $(89)m c
Slide 22: Balance Sheet at Year-end 2020
Balance Sheet at Year-end 2020 Group’s liquidity amounted to $385m as of December 31, 2020 EQUITY GOODWILL $1.19bn $1.16bn & MINORITY INTERESTS Group gross debt before IFRS 16 was $1,234m and net debt was $849m NON-CURRENT $0.17bn Group gross debt after IFRS 16 was $1,389m MC LIBRARY $0.49bn LIABILI
Slide 23: 2021 Business Outlook
2021 BUSINESS OUTLOOK 23 cgg.com 23
Slide 24: ESG: CGG committed to carbon neutrality by 2050
ESG: CGG committed to carbon neutrality by 2050 OUR CARBON NEUTRALITY STATEMENT OUR CARBON NEUTRALITY STATEMENT We pledge to carbon neutrality by 2050 GHG emissions 2019: 3 K tons 50% reduction by 2030 Scope 1 By lowering our direct emissions (scope 1 & 2) 2020: 2 K tons 100% by 2050 (K tons CO2 eq)
Slide 25: Our new business solutions for energy transition
Our new business solutions for energy transition Environmental monitoring Offshore Marine mammal Minerals and Mining pollution monitoring monitoring Mapping, auditing Satellite imagery, machine Fully-integrated, passive and monitoring of mine learning and interpretation acoustic monitoring to infras
Slide 26: Market outlook
Market outlook Roll-out of Covid-19 vaccinations is accelerating Improving market Recent OPEC+ agreements support the rebalancing of supply and demand outlook Oil price is gradually recovering and has stabilized above $50/bbl threshold E&P Capex expected to be flattish Prioritization of in
Slide 27: CGG 2021 Business perspectives
CGG 2021 Business perspectives Progressive recovery starting H2 2021 GEOSCIENCE Solid demand for best-in-class subsurface imaging technologies Sustained activity with large NOCs Reduced 2021 multi-client cash capex with focus on core mature basins – Nebula program offshore Brazil will contin
Slide 28: CGG 2021 Financial objectives
CGG 2021 Financial objectives Based on Brent oil price above $50/bbl and no deterioration in pandemic and market conditions, REVENUE 2021 segment revenue is expected to increase by low single digits y-o-y with growth in Equipment, recovery in Geoscience from H2 and reduced Multi-client prefunding re
Slide 29: Thank You
THANK YOU cgg.com
Slide 30: Annex: Q4 2020 and FY 2020 non-recurring charges
Annex: Q4 2020 and FY 2020 non-recurring charges In million $ Q4 2020 2020 Global economic crisis and unprecedented drop in oil prices and E&P spending lead CGG to launch Operational costs provisions (4) (42) cost reduction actions in 2020 Multi-client library Impairments (29) (98) $(61)m of additio