ION Geophysical Corporation Presented to Pareto Securities 19th Annual Oil & Offshore Conference by Greg Heinlein, SVP & Chief Financial Officer 12th September 2012
Todays Discussion Company Overview ION Strategy Market Observations Q2 2012 Performance by Segment Summary 3
Company Overview 4
ION at a Glance Technology company, driven to develop and apply proven, innovative technologies and services to help our clients find and produce hydrocarbons as safely and efficiently as possible Founded in 1968 as Input/Output…
Global Footprint Headquarters Data Processing Centers Sales and Service Centers ResSCAN Programs BasinSPAN Programs 6
Seismic vs. E&P vs. IONs Served Market A 16-19 Billion Annual (Revenue) Industry, A 5-6.5 Billion Annual Market 600 B 16-19 B Exploration 16% 12% Data Library Sales…
ION Strategy 8
ION Strategy Planning Acquisition Processing Interpretation Technology History of Asset light Participate in company Innovation each stage of Bring the whole of Cableless acquisition Focus our capital on the geophysical ION to…
ION Strategy Bringing the Whole of ION to Solve Industry Problems Planning Acquisition Processing Interpretation CHALLENGING ENVIRONMENTS: ARCTIC EXPLORATION Full-scope Project Management Survey planning and design, acquisition,…
Areas of Expertise Challenging Complex Unconventional Basin Environments Geologies Reservoirs Exploration Arctic, Shallow/ Subsalt, Sub Shales, Tight Gas, BasinSPAN Data Obstructed Water, Basalt, Thrust Belt and Oil Sands…
Our Offerings Seismic Data Processing & Integrated Geophysical Seismic Data Libraries Reservoir Imaging Services Programs Survey Design Software & Marine Seismic Land Seismic Equipment Services Equipment 12
Market Observations 13
Global Market Outlook Oil and Natural Gas Prices Expect oil prices to remain in the 80 - Expect depressed natural gas prices to 100 range, supporting continued cause shift to liquids in North America. frontier exploration in…
Market Observations Marine Seismic Towed Streamer market Seabed Acquisition tightening Services Expenditure 900 Good growth in Seabed 800 market 700 600 Millions Launched Calypso 500 seabed acquisition 400 system in Q2 at…
Market Observations Data Processing Fifth sequential quarterly improvement in ION DP revenues International demand up Europe, Africa, Middle East Conventional Image Continued rebalancing of our portfolio beyond Gulf of Mexico…
Market Observations GeoVentures ResSCAN Programs BasinSPAN Programs Continued rise in international exploration Africa, Latin America, Australia and the Arctic. Solid performance -- revenues, operating profits, margins.…
Q2 2012 Performance by Segment 18
Revenue Distribution by Segment Q2 2012 105.2 Million YOY Growth 19% Software YOY Growth 3% New Venture 10.4M YOY Growth 120% Data 21.5M Processing YOY Growth 37% 28.2M Solutions YOY Growth 47% 72.0M Systems Data…
Financial Overview Revenues by Segment 180 Solutions revenues of 160 72 million, up 47% Y/Y 140 Software revenues of 120 10 million, up 6% in Millions 100 local currency Y/Y 80 60 Systems revenues of 23 million, down…
Solutions Segment Financial Overview Revenue by Type Multi-client Investments 90 160 H 150M 140 130M 80 120 Millions 100 70 80 60 60 40 Millions 50 20 - 40 2010 2011 2012 30 Solutions Backlog 20 Q2 12…
Software Segment Financial Overview Revenue by Type (GBP) % of Seismic Vessels 7 with Orca 6 5 Millions 4 41% 3 59% 2 1 0 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 ION's Orca - Permanent Software Systems Services ION's…
Systems Segment Financial Overview Orca Command & Control Concept GPS Software, Revenue by Type Coordinates GPS and Array 80 DigiSHOT: Air Gun, Source & Source Control 70 DigiFIN: Lateral Control 60 Millions 50…
INOVA Geophysical Financial Overview Q1 2012 Revenues 70 Revenues of 56.8 million with operating income of 8.9 million** 60 Delivered 15,000 channels of G3i 50 Delivered first 3 UniVib units Millions 40 Significant…
Summary 25
Continued Momentum in Q2 Industry remains robust International activity particularly strong Strong first half 2012 for ION Expect solid Y/Y growth throughout 2012 Continue to anticipate 2012 multi-client investment in 130 - 150…
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