Slide 1: CGG Q1 2023 - Financial Results
CGG Q1 2023 - FINANCIAL RESULTS All figures are ‘segment figures’ used for management reporting (before non-recurring charges and IFRS 15), unless stated otherwise 1
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 Q1 2023 overview 02 Operational review 03 Financial review 04 2023 Business outlook & Financial objectives Q1 2023 Financial Results 3
Slide 4: Q1 2023 Overview
Q1 2023 OVERVIEW 4 cgg.com 4
Slide 5: Q1 2023 Key segment financial highlights
Q1 2023 Key segment financial highlights REVENUE EBITDAS NET CASH FLOW $210 million $66 million $1 million Q1 2022 Up 37% y-o-y up 71% y-o-y including $(4) million change in working capital & provisions Liquidity of $301 million, excluding $95 million undrawn RCF Q1 2023 Financial Results 5
Slide 6: Operational Review
OPERATIONAL REVIEW 6 cgg.com 6
Slide 7: Data, Digital and Energy Transition key financial indicators
Data, Digital and Energy Transition key financial indicators SEGMENT REVENUE ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 56% 62% 48% 49% Earth Data 659 406 Geoscience 330 +21% 545 58 71 375 2021 2022 Q1 2022 Q1 2023 276 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 18% 29% 19% 17% 192 105 +21% 144 28
Slide 8: Geoscience key business indicators
Geoscience key business indicators TOTAL PRODUCTION ($m) BACKLOG AS OF MARCH 31ST ($m) (EXCLUDING GEOSOFTWARE AND SDS) +1% 394 398 Internal production +22% 115 External revenue 125 +11% 237 102 113 195 269 284 27 34 75 79 2021* 2022 Q1 2022 Q1 2023 Q1 2022 Q1 2023 TOTAL PRODUCTION / HEAD ($K) COMPUT
Slide 9: Geoscience Q1 operational highlights
Geoscience Q1 operational highlights Transitional OBC Transitional Land Subsurface Imaging ▪ Sustained level of activity in first quarter with revenues up 13% sequentially and 11% compared to last year ▪ Good start confirmed by Q1 external order intake value up 31% from Q1 last year ▪ Driving extern
Slide 10: From the Largest to the Densest OBN in the World
From the Largest to the Densest OBN in the World Unparalleled imaging of world’s largest OBN survey in the Middle East 3 times size of Lebanon! •Largest continuous OBN survey in the world; ca. 26,000 km2 •Over 2 million nodes deployed •Over 700 billion recorded traces •30 Petabytes of data created •
Slide 11: First HPC & Cloud Solutions contract with Biosimulytics
First HPC & Cloud Solutions contract with Biosimulytics, expanding into Health and Life Science market ▪ CGG will be providing a fully customized HPC, AI and Cloud solution to support their AI-enhanced molecular Pharma modelling ▪ Using CGG’s algorithm and HPC expertise in the energy sector ▪ A 3 ye
Slide 12: Earth Data key business indicators
Earth Data key business indicators EDA REVENUE ($m) EDA CAPEX ($m) & PRE-FUNDING (%) Multi-Client capex Cash pre-funding rate 1.6x 1.8x Cash on cash Prefunding After-sales +36% 375 89% 66% 42% 126% 276 136 150 +48% 65 239 44 205 168 14 35 126 33 28 30 30 2021 2022 Q1 22* Q1 23 2021 2022 Q1 2022 Q1 2
Slide 13: Earth Data Q1 operational highlights
Earth Data Q1 operational highlights South America • Highly funded Guyana 2D reprocessing projects to support upcoming bid rounds • Suriname phase IV acquisition completed, in consortium with BGP Green Garden and TGS. Fast-track products available in the middle of this year North Sea • NVG E-W acqui
Slide 14: A comprehensive Well database for the next frontier
A comprehensive Well database for the next frontier Guyana – Suriname – Brazil’s Equatorial Margin An integrated database with industry support • Multi-disciplinary data: stratigraphy, sedimentology, geochemistry, petrophysics and engineering data • Leveraging in-house subject matter expertise • Uti
Slide 15: Sensing & Monitoring key financial indicators
Sensing & Monitoring key financial indicators SEGMENT PRODUCTION ($m) ADJUSTED SEGMENT EBITDAS ($m) & MARGIN (%) 11% 6% - 1% BTC 39 Downhole 16 357 Marine 17 1 15 - 24% Land - 12 101 269 2021 2022 Q1 2022 Q1 2023 33 19 ADJUSTED SEGMENT OPINC ($m) & MARGIN (%) 72 2% - - - 223 +95% 66 144 34 12 6 4 64
Slide 16: Sensing & Monitoring Q1 operational highlights
Sensing & Monitoring Q1 operational highlights Sales • Delivery of vibrators in North Africa and of a full VSP system in West Africa • Early delivery of a full streamer acquisition system including streamers, steering, sources and navigation system to a customer in Asia • Strong delivery of Artifici
Slide 17: Financial Review
FINANCIAL REVIEW 17 cgg.com 17
Slide 18: Income Statement
Income Statement In million $ Q1 2023 Q1 2022 Q1 2023 Segment Revenue 210 153 Segment Revenue at $210m, IFRS 15 adjustment (32) 23 up 37% year-on-year IFRS Revenue 178 175 Segment EBITDAs 66 39 Segment EBITDAs at $66m, up 71%, 13 (5) a 31% margin Segment OPINC Equity from investments 0 0 - DDE adjus
Slide 19: Simplified Cash Flow
Simplified Cash Flow In million $ Q1 2023 Q1 2022 Q1 2023 Segment Operating Cash Flow 54 39 before change in working capital Net cash flow at $1m Change in working capital & provisions (4) 90 Segment operating cash flow at $54m, Capex (52) (42) before $(4)m change in working capital & provisions Pro
Slide 20: Balance Sheet
Balance Sheet As of March 31, 2023 Group liquidity amounted to $396m, including: $301m cash liquidity $95m undrawn RCF Group gross debt before IFRS 16 was $1,206m and net debt was $905m Group gross debt after IFRS 16 was $1,296m and net debt was $994m $1,136m HY Bonds, due 2027 $89m Lease liabilitie
Slide 21: 2023 Outlook
2023 OUTLOOK 21 cgg.com 21
Slide 22: With a strong start to the year, we confirm our 2023 financial objectives
With a strong start to the year, we confirm our 2023 financial objectives ▪ Increasing demand for imaging high-end technologies, driving larger project sizes GEOSCIENCE ▪ Recent awards of very large integrated projects from seismic to imaging and to reservoir characterization and including geology f
Slide 23: Thank You
THANK YOU 23