Slide 1: First Quarter 2013 Results
First Quarter 2013 Results May 3, 2013
Slide 2: Agenda
Agenda Fugro Geoscience Integration on Track First Quarter 2013 Financial Review First Quarter 2013 Operational Review 2013 Outlook 2
Slide 3: Fugro Geoscience Integration on Track
Fugro Geoscience Integration on Track 3
Slide 4: 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
Slide 5: New Organization Implemented
New Organization Implemented Geology, Equipment Acquisition Geophysics & Reservoir Full range of products and clear Full range of seismic and other Exploration & Appraisal market leadership Onshore, geophysical methods for acquisition: Offshore and Downhole: Geological Services Multi-Client Da
Slide 6: Acquisition: An Integration Well on Track
Acquisition: An Integration Well on Track The integration of Fugro’s four C-Class vessels in the CGG fleet is progressing well as planned On 1st May, two of the four C-Class vessels were equipped with BroadSeis technology during their planned dry docks and one of them has just started its first
Slide 7: GGR: A Leader Already Operational
GGR: A Leader Already Operational Geology and basins Robertson reinforces CGG’s portfolio with 350 people specializing in geology Multi-Client 50 people specializing in complementary sedimentary basins Data Management A full range of services including physical asset management, data con
Slide 8: 2013 First Quarter Financial Review
2013 First Quarter Financial Review
Slide 9: A Promising First Quarter 2013
A Promising First Quarter 2013 Group Revenue at $871m, up 11% Respective contribution amounting to 22% for Equipment, 48% for Acquisition, and 30% GGR Strong improvement in Group EBIT at $162m* with a 19%* margin The non-recurring positive impact of the Fugro Geoscience transaction / Integra
Slide 10: New Reporting in Line with our New Organization
New Reporting in Line with our New Organization New Reporting Previous Reporting Equipment • Total Revenue o External Revenue Sercel • Total Revenue • EBITDAs o External Revenue • EBIT* • Capital Employed • EBITDAs • Operating Income Acquisition • Total Revenue o External Revenue Services o Total Ma
Slide 11: Revenues Growth per Business Segment
Revenues Growth per Business Segment Q1 2012 Q1 2013 (29)% Acquisition (19)% $594m Acquisition +55% $383m Group Group $871m $787m GGR +11% GGR $260m $219m +18% Equipment Equipment $251m $348m (28)% (24)% (27)% 11
Slide 12: Q1 Key Figures (in million $)
Q1 Key Figures (in million $) Revenue EBIT 871 162(1) 787 729 57 25 Q1 2011 Q1 2012 Q1 2013 Q1 2011 Q1 2012 Q1 2013 EBITDAs Net Income 313(1) 79(1) 212 156 Q1 2011 Q1 2012 Q1 2013 -3 Q1 2011 Q1 2012 Q1 2013 -37 (1) Including Fugro positive impact of +$35 million (+$85 million of capital gain from SW
Slide 13: Capital Employed by March-End 2013
Capital Employed by March-End 2013 (In US$) Variance Q1 $171m Fugro Seabed $1,238m JV Impact $3,112m Goodwill ACQUISITION c.$3.3bn $726m MCS Library Dec-end 2012 $5,367m c.$2.7bn GGR $2,058m Fixed Assets Investment in Equity $331m Method companies $0.8bn EQUIPMENT $549m Working Capital $6,776m $6,77
Slide 14: Variance of Net Debt Between Dec-end and March-end
Variance of Net Debt Between Dec-end and March-end Free Cash Flow $(132)m (In million) Before Non-Recurring Fugro Items $32m $(34)m $(26)m $38m $8m Industrial Multi- $2,092m Client $1,950m $(79)m $203m Dec-end 2012 Operating Capex Paid Non Cash Cash Non Spectrum FX Impact March-end Net Debt Cash-Flo
Slide 15: 2013 First Quarter Operational Review
2013 First Quarter Operational Review
Slide 16: Equipment: Sustained Strong Performance
Equipment : Sustained Strong Performance Impact of Middle East Revenue crews deliveries Total Revenue at $251m (in million $) External Revenue at $190m, down 26% compared to a very strong first quarter 2012 driven by high-channel- 348 count deliveries in the Middle East 288 251 Intra-group sal
Slide 17: Acquisition: Strong Operational Improvement
Acquisition : Strong Operational Improvement Marine Total Revenue at $594m, up 55% Revenue (in million $) Other Acquisition External Revenue at $421m 594 Marine: Strong increase in Revenue at $449m 500 Integration on 1st February of Fugro’s C-Class four, the Geo Barents and Geo Atlantic vess
Slide 18: GGR: Excellent Start to the Year
GGR : Excellent Start to the Year Multi-client Revenue at $260m, up 18% Revenue (in million $) Imaging & Reservoir Multi-client and basin data: $123m $127m cash capex in Angola, GoM, Australia and Barents Sea 291 260 Prefunding rate at 48% 219 155 123 Depreciation rate at 64% Good level
Slide 19: 2013 Outlook
2013 Outlook Passion for Geoscience & CG G
Slide 20: A Favorable Environment for Geoscience
A Favorable Environment for Geoscience E&P spending is strengthening leading to: – Increased global geophysical activity in ultra deep waters and new frontiers – Geology & Geophysics’ role becoming critical, – Extra demand in data content Increasing impact of Geoscience on production strategies
Slide 21: 2012 Activity and 2013 Trends for New CGG
2012 Activity and 2013 Trends for New CGG 2012 Activity* 2013 Trends • Stable External Revenue Equipment - Large land projects delayed in 2014 - Stable marine market • Increase in R&D capex • Revenue: $1.2 Bn - Launch of new products • Capital Employed**: $0.8 billion Fugro Geoscience • 25% Growth A
Slide 22: 2013 Financial Objectives
2013 Financial Objectives In this year of transformation: Total capex should be around $350 - 400 million Multi-client Cash capex should be around $350 - 400 million with a prefunding rate above 75% In 2013, the capital gain from the sale of the SWOBS activity should offset non-recurring charg
Slide 23: Thank you
Thank you Passion for Geoscience ec G G cgg.com