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Viridien — CGG — Debt Investor Presentation (March 2021)

31 slides from Viridien's debt investor presentation, March 2021

  1. Slide 1: CGG Financial Presentation March 2021

    CGG FINANCIAL PRESENTATION MARCH 2021 cgg.com

  2. Slide 2: Agenda

    Agenda 01 COMPANY OVERVIEW 02 BUSINESS HIGHLIGHTS 03 FINANCIAL REVIEW 04 CONCLUSION cgg.com 2

  3. Slide 3: Section 1: Company Overview

    SECTION 1: COMPANY OVERVIEW 3 cgg.com 3

  4. Slide 4: CGG: A People, Data and Technology Company

    CGG: A People, Data and Technology Company Asset Light Company… …With Three Core Businesses (1) GGR Leveraging Exceptional People… Geoscience #1 in technology Breadth and depth of expertise Established market and technology 34% driving innovation and providing leader in subsurface imaging, geology,

  5. Slide 5: Delivered on Promises to the Market

    Delivered on Promises to the Market Promises to the Market… …CGG Delivered Cease to operate vessels by Marine partnership with Shearwater closed on Marine  2021  8 January 2020 Wind down land acquisition Land  operations  Last crew stopped in early February 2020 Sell out of Multi-Physics Multi-P

  6. Slide 6: Sector Trends Play to CGG's Competitive Strengths

    Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 1 Brent Oil Price Historical Evolution and Forecast ($/bbl) vs. Global Upstream Capex Spend (1) ($bn) 2019 2020 2021 2022  Improved medium term outlook $338bn $243bn $252bn $288bn with consensus forecasts Constructive Medi

  7. Slide 7: Sector Trends Play to CGG's Competitive Strengths

    Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 3 Global Upstream Capex vs. CGG’s Geoscience Revenue Split Industry Capex (1) CGG’s Geoscience Revenue 2017 2020 2017 2020  75% of CGG’s geoscience 11% 9% Increasing Focus on revenue generated from Reservoir Development re

  8. Slide 8: Sector Trends Play to CGG's Competitive Strengths

    Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 5 Global Software Spend on Subsurface, Data and Analytics ($bn) (1)  Leading geoscience 6% p.a. 5,5 technologies with a suite of 5,2 Increased Focus 4,9 imaging and digital solutions on Digitalisation and 4,6 (including da

  9. Slide 9: Sector Leading ESG Credentials

    Sector Leading ESG Credentials OUR CARBON NEUTRALITY STATEMENT KEY ENVIRONMENTAL TARGETS We pledge to be carbon neutral by 2050 GHG 50% reduction by emissions 2020: 2 K tons 2030 By lowering our direct emissions (scope 1 & 2) Scope 1 (1) 100% by 2050 to the lowest practical level and by bridging the

  10. Slide 10: Section 2: Business Highlights

    SECTION 2: BUSINESS HIGHLIGHTS 10 cgg.com 10

  11. Slide 11: Key Credit Highlights

    Key Credit Highlights 1 Asset-Light Business, Focused on Differentiated Technologies, with a Strategic Fit with Secular Industry Trends 2 Leading and Resilient Market Position with Strong Cash Flow Generation Through the Cycle 3 Judicious Balance Sheet and Liability Management with Ample Liquidity 4

  12. Slide 12: Imaging Technology Breakthroughs Drive Business Value

    1 CGG Offers Differentiated High Value Additive Service Legacy Technology New Technology Water depth: c.1.5km Reservoir level, c.9-10km Imaging Technology Breakthroughs Drive Business Value Source: Company information 12

  13. Slide 13: Geoscience: Proactive Pivot towards Development & Production

    1 Geoscience: Proactive Pivot towards Development & Production Majority Exposure to Stable Progressive Shift in Revenue to Resilient Operations Part of Upstream Value Chain 2017 2018 2019  CGG’s Geoscience business Reservoir 7% 6% 6% is increasingly focused on optimisation, 14% 13% 17% the Reservoi

  14. Slide 14: Geoscience: Industry Leading Algorithms and High Performance Computing

    1 Geoscience: Industry Leading Algorithms and High Performance Computing Technology to Optimize High Performance Computing… …Harnessed by Production & Reservoir Development Exceptional People  Shifted strategy to focus on technology  Technical staff comprised of 131% 54% 7% 70% post graduate degre

  15. Slide 15: Geoscience: Resilient Revenue from Dedicated Imaging Centers

    1 Geoscience: Resilient Revenue from Dedicated Imaging Centers Open Centers (16) Dedicated Centers (7) Technology Leadership Regional Hubs (5)  Superior offering to our clients reinforces market leadership and attracts premium pricing  Customer satisfaction as demonstrated by Kimberlite surveys co

  16. Slide 16: Multi-Client: Extensive Presence in Mature, Established Regions

    1 Multi-Client: Extensive Presence in Mature, Established Regions Alaska +70k km2 N. Sea +34% since 2018  Leading coverage totaling > 1.2 million km 2 of 3D data 348 km2 Asia 277k km2 – By comparison, TGS’ and PGS’ libraries cover c.1.0 million km 2 and 29k km 2D c.850k km 2 of 3D data respectively

  17. Slide 17: Equipment: Well-Established and Differentiated Market Position

    1 Equipment: Well-Established and Differentiated Market Position Complete Portfolio of EquipmentTargeting Key Regions and NOC Projects Technology and Market Leadership  Clear leadership with largest market share at c.46% (1) Land & TZ  The largest installed base, creating a competitive advantage a

  18. Slide 18: Growing Market Share Across All Segments, Even Through the 2020 Crisis

    2 Growing Market Share Across All Segments, Even Through the 2020 Crisis Geoscience Multi-Client Equipment 15% 16% 15% 18% 21% 24% 27% 25% 30% 4% 4% 4% 5% 6% 6% 5% 6% 27% 7% 5% 13% 28% 21% 8% 35% 34% 34% 19% 15% 14% 30% 30% 26% 44% 43% 46% 41% 40% 41% 22% 23% 24% 2018 2019 2020 2018 2019 2020 2018 2

  19. Slide 19: CGG Response to 2020 Crisis Ensured Continued Profitability and Positive Cash Flow

    2 CGG Response to 2020 Crisis Ensured Continued Profitability and Positive Cash Flow Manage Health & Safety while Proactively Control Cost Base and Cash Focus on Core Strengths Preserving Business Continuity % of Employees  Cash costs reduction of around $90m of fixed  Geoscience more resilient, r

  20. Slide 20: CGG's Business Robust in the Face of Recent Volatility

    3 CGG’s Business Robust in the Face of Recent Volatility Positive Adjusted Free EBITDAs (1) ($m) Generation Segment External Revenue ($m) Even Through the Crisis 1,227 1,400 955 45% 51% 42% 441 97% 118% 89% 314 287 721 517 575 556 340 460 402 395 255 99 385 328 (78) (75) (64) FY2018A FY2019A FY2020A

  21. Slide 21: Strong Balance Sheet and Robust Liquidity Coming out of 2020 Crisis

    3 Strong Balance Sheet and Robust Liquidity Coming out of 2020 Crisis Sufficient Liquidity Maintained Historically, and Post-Refinancing  Liquidity amounted to $385m as of 31 December $m Post-refinancing 2020, significantly above minimum liquidity liquidity constituted 800 623 of $275m of cash requ

  22. Slide 22: Tangible Steps in Diversifying End-Markets, Including Energy Transition

    4 Tangible Steps in Diversifying End-Markets, Including Energy Transition Digital Infrastructure Energy Earth Geosciences Monitoring Transition Observation Ability to redeploy existing people, data, and technology towards new end markets Core competencies in application of technology, science and ma

  23. Slide 23: Key Credit Highlights

    Key Credit Highlights 1 Asset-Light Business, Focused on Differentiated Technologies, with a Strategic Fit with Secular Industry Trends 2 Leading and Resilient Market Position with Strong Cash Flow Generation Through the Cycle 3 Judicious Balance Sheet and Liability Management with Ample Liquidity 4

  24. Slide 24: Section 3: Financial Review

    SECTION 3: FINANCIAL REVIEW 24 cgg.com 24

  25. Slide 25: 2020 Revenue Down in Light of Crisis, but with Signs of Resilience

    2020 Revenue Down in Light of Crisis, but with Signs of Resilience and Margins Holding Up Segment External Revenue ($m) Adjusted EBITDAs (1) ($m) and Margin (%) 1,227 1,400 955 45% 51% 42% 556 721 402 441 97 314 42 287 517 575 23 340 652 558 401 395 385 328 (44) (28) (22) FY2018A FY2019A FY2020A FY2

  26. Slide 26: Adjusted Free EBITDAs Remained Strong, with Prefunding High on Maintained Capex Levels

    Adjusted Free EBITDAs Remained Strong, with Prefunding High on Maintained Capex Levels Total Capex ($m) Adjusted EBITDAs (1) – Capex ($m) 97% 118% 89% 460 301 303 261 78 64 255 75 223 239 99 186 FY2018A FY2019A FY2020A FY2018A FY2019A FY2020A Multi-Client Investment Industrial Capex MC Capex Pre-fun

  27. Slide 27: Demonstrated Ability to Generate Positive Free Cash Flow in 2020

    Demonstrated Ability to Generate Positive Free Cash Flow in 2020, Before Change in Working Capital Bridge to Net Cash Flow ($m) (1) 1 Adjusted EBITDAs (2) at $402m, a 42% margin, 1 2 from 49% in 2019 (3) 3 (42) 2 Severance costs to adjust to new industry baseline, $(14)m cash paid in 2020 402 361

  28. Slide 28: Business Perspectives for 2021 Constructive for CGG's Segments

    Business Perspectives for 2021 Constructive for CGG’s Segments  Progressive recovery starting H2 2021 Geoscience Seeing a  Strong demand for industry-leading subsurface imaging technologies Progressive Recovery  Sustained activity with large NOCs  Reduced 2021 Multi-Client cash Capex with focus

  29. Slide 29: Section 5: Conclusion

    SECTION 5: CONCLUSION 29 cgg.com 29

  30. Slide 30: CGG's Asset-Light Business Best-Positioned as We Enter a New Industry Cycle

    CGG’s Asset-Light Business Best-Positioned as We Enter a New Industry Cycle  Asset-light business model, focused on people, data, and technology, strategically fit for changing secular industry trends  Focused pure-play Geoscience company, with the largest and differentiated portfolio  Increasing

  31. Slide 31: Thank You

    THANK YOU cgg.com

CGG — Debt Investor Presentation (March 2021) on 6ix