Where is CGG today Jean-Georges MALCOR 2 Capital Market Day - Where is CGG today
Phase 1: Performance Plan 2011-2012 4 Capital Market Day - Where is CGG today
Follow up to last Capital Market Day: Improving our performance Performance Plan commitments Actions 2011-2012 Operational performance Vessel upgrades - 2010: Vanquish - 2011: Oceanic Phoenix & Oceanic Endeavour - 2012:…
Follow up to last Capital Market Day: Improving our performance Performance Plan commitments Actions 2011-2012 Operational performance A streamlined organization by division Cost reduction Significant savings in global…
Follow up to last Capital Market Day: Improving our performance Performance Plan commitments Actions 2011-2012 Operational performance Marine: BroadSeis, BroadSource and StagSeis Subsurface Imaging: new algorithms and Cost…
The Performance Plan, what we delivered Operational performance Marine operational performance Marine operational performance Availability rate Production rate above the 90% target above the 90% target Rolling last four quarters…
The Performance Plan, what we delivered Cost reduction G&A cost reduction R&D Sharp reduction in 2011 & 2012 Increased R&D spending 11% 10% Equipment R&D expenses in % of revenues 10% 8% 8.2 Revenues (before NRFI)…
The Performance Plan, what we delivered Technology and commercial differentiation Technology differentiation Commercial differentiation Equipment Strategic Partnerships Acquisition Processing StagSeis UltraSeis BroadSource…
Phase 2: The move to Geoscience 12 Capital Market Day - Where is CGG today
CGG: A new Geoscience Company Seabed JV Airborne Following Fugro Acquisition Land Processing Geosciences acquisition: Acquisition 4 C-Class Fugro vessels Processing Data Access to geoscience mgmt & reservoir expertise Marine…
CGG: Equipment & Acquisition Processing & Imaging Reservoir characterization 14 Capital Market Day - Where is CGG today
CGG: Equipment & Acquisition Processing & Imaging Reservoir characterization MEDECINE 15 Capital Market Day - Where is CGG today
CGG: Equipment & Airborne Acquisition Processing & Multi-physics Imaging Reservoir Closer to the characterization reservoir engineer MEDECINE 16 Capital Market Day - Where is CGG today
CGG: Looking at the bigger picture Equipment & Airborne Acquisition Processing & Multi-physics Imaging Reservoir Closer to the characterization reservoir engineer MEDECINE 17 Capital Market Day - Where is CGG today
CGG: Looking at the bigger picture Equipment & Airborne Acquisition Processing & Multi-physics Imaging Reservoir Closer to the characterization reservoir engineer Looking at the finer details MEDECINE 18 Capital…
CGG: Looking at the bigger picture a new dimension Equipment & Airborne Acquisition Processing & Multi-physics Imaging Reservoir Closer to the characterization reservoir engineer Looking at the finer details…
Sustainable Development: A culture of performance and safety A focused sustainable strategy based on more than 80 years of experience Integrated into our corporate governance structure Fully compliant with local laws and regulations…
21 Capital Market Day Enhanced imaging of complex geologies
Business environment trends and action plan Jean-Georges MALCOR 23 Capital Market Day - New market environnement and action plan
Oil prices at high level but OPEC spare capacity rising Spare capacity set to rise Healthy growth in oil supply Spare Crude Oil Production Capacity (mb/d) Cost of marginal barrel still high 9.0 OPEC budget constraints supportive…
High oil price and Capex constraint: An unusual scenario for our clients E&P Capex driven by cost inflation and non-conventionals Their challenge: generating sufficient cash flow both to fund Capex, dividend & share buy-backs Lower…
Favorable exploration trends for geoscience New frontier deepwater exploration: Eastern Canada, East India, Russian Arctic, Gabon, Brazil Complex geological patterns Seismic only 3% of E&P spending High value for derisking and…
Production remains challenging Reserve Replacement Ratio (RRR) still below 100% worldwide Drilling success rate decreasing Size of new fields getting smaller Sustained development of Enhanced Oil Recovery (EOR) needed to prevent…
2013 Landing and Business update Q4 Activity: lower than expected Large contracts delays in Acquisition impacting: - Q4 fleet Availability Rate revised around 80%; however strong Production Rate at 92% - Multi-client revenue…
2013 Landing and Business update However, very good recent commercial successes: Marine: Award of three large prefunded multi-client programs offshore Brazil ( 30,000 km2) H1 2014 fleet well covered: Q1-2014 at 90% and Q2-2014 at…
2016: Profitability & Cash Tight cash management and debt reduction Cost control Tight control of G&A expenses and reduction of operational breakeven Operational performance Maintain focus on operational efficiency Tight cash…
2016: Profitability & Cash Rebalanced business portfolio Reformating and rebalancing of businesses Rebalancing from cyclical and capital-intensive businesses to more profitable, less capital intensive and more cash generating…
Moving forward to 2016: CGG vision for profitability and cash generation Sercel Profitable growth driven by technology, volume and product mix Increased cash generation with reduced and repositioned high end fleet Acquisition…
33 Capital Market Day Enhanced imaging of complex geologies
Technology roadmap Thierry BRIZARD 35 Capital Market Day - Technology roadmap
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs ENRICHED DATA LOG DATA Better understanding of the subsurface With Better understanding RoqSCAN of the…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Very sparse Sparse Enhance Oil Recovery from producing reservoirs Dense Better understanding of the subsurface Better understanding of the reservoir Better…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Very high resolution of 0.2 mGal at 150 m Better understanding of the…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers ERGO new discoveries Accelerate Enhance Oil Recovery from producing reservoirs Reservoir geometry database & knowledgebase Better understanding Consistent of theexamples structure Modelling…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Better understanding of the subsurface Better understanding of the reservoir Better Reservoir Find the areas of…
Meeting the challenges of our customers Accelerate new discoveries Enhance Oil Recovery from producing reservoirs Geoscience integrated solutions accelerating turnaround Better understanding time and increasing cost efficiency of…
53 Capital Market Day Enhanced imaging of complex geologies
Business roadmaps 55 Capital Market Day - Equipment: Profitable growth driven by technology & volume
Equipment Profitable growth driven by technology & volume Pascal ROUILLER 56 Capital Market Day - Equipment: Profitable growth driven by technology & volume
Equipment division Key Figures Market Positioning (3Q 2013) Strong footprint in land, 70% market share in cable systems Total sales Number of employees Strong footprint in marine, 95% market share in streamers 728m 2,500…
Sercel, the clear market leader with an unrivalled installed base 2/3 of worldwide land crews: 2/3 of worldwide marine crews: 3,500,000 408UL/428XL: Sentinel streamers: 4,800 km ( 60 vessels) channels 145,000 6,200 Unite:…
Sercel, the clear market leader with an unrivalled installed base Land Market Marine Market Total 1.0bn Total 0.9bn Others 2013 Total Market Others Vibrators 2 (40%) 2 (25%) Navigation 1.9bn Geophones 1 (50%) 1 (55%)…
Marine: Driven by technology and replacement Sentinel, the leading streamer technology km Sentinel sold New builds Sentinel, the only true solid cable with a unique acoustic 1000 15 performance, launched in 2006 800 Sentinel RD…
Land: Driven by technology and growth More channels for higher resolution Land recording channels System capabilities vs. usage Channels Continuous channel count growth, possible multiplied by 5 every 10 years 1,000,000 high…
Land: Driven by technology and growth KUWAIT Mega-crews: What we already delivered 1-2 mega-crews 100,000 channels/crew 2009: 90,000 channels in the US 2012: 120,000 channels for 2 crews in Saudi Arabia UAE 1-2 mega-crews…
508XT, a powerful response to clients needs New X-Tech architecture Able to operate in cabled and in wireless systems Able to operate in real time or in autonomous mode Increased productivity Down to: zero system downtime Up to:…
Equipment profitability: Operating margin driven by volumes and product mix Sercel is an equipment manufacturer Business model highly sensitive to volume sold and product mix Higher electronic content leads to a higher…
66 Capital Market Day Enhanced imaging of complex geologies
Acquisition Division The way forward Benot RIBADEAU-DUMAS 68 Capital Market Day - Acquisition: The way forward
Acquisition division Key Figures Market Positioning (3Q 2013) The largest Marine seismic fleet dedicated Total sales Number of employees to high-end market 1,767m 3,000 The high-end Land acquisition player Industrial CAPEX Vessel…
Airborne Acquisition: Split into two different markets 35% 65% Oil & Gas Current revenue contribution Mining Gravity & Electro-Magnetics Gradio-Gravimetry Main technology involved Mining market highly cyclical and…
Airborne Acquisition: Split into two different markets 50% 50% Target revenue contribution Oil & Gas Mining Get ready for the rebound in the Mining market Rebalance the revenue breakdown between Oil & Gas and Mining markets…
Land Acquisition: Strategic review ongoing The Land situation: Ranked 1 in performance / Best image in the industry from a client perspective (as per Welling Report) An enabler for Sercel and Processing activities BUT Low margins /…
Marine Acquisition: Increase in supply possibly balanced by vessel retirements 8% increase in supply in 2014 & in 2015 (no increase from CGG) 9 seismic vessels aged 20 years in 2015 (if no retirements) Number of vessels (8+…
Marine Acquisition: Market demand, a contrasted pattern Positive long-term fundamentals remain, with solid summer demand and increasing demand for technology Sustained activity in traditional basins and new emerging basins (frontier…
Marine Acquisition: Market demand, a contrasted pattern Positive long-term fundamentals remain, with solid summer demand and increasing demand for technology Sustained activity in traditional basins and new emerging basins (frontier…
Marine Acquisition: Our industrial vision 33% Seismic vessels with 14x100 or 16x50 spreads, the right size Productivity 25% Reduced productivity gains above 14 streamers increase 20% 17% Strong technical constraints…
Marine Acquisition: Customers feedback Broadseis significantly increases the usable frequency content of the data, while the deep tow reduces exposure to swell and weather. The continuous recording and deblending technique suggested…
Marine Acquisition: Partnerships & long-term contracts to provide more visibility Partnership in Russia Partnership in China Long-term contract in Mexico JV in Vietnam 83 Capital Market Day - Acquisition: The way…
84 Capital Market Day Enhanced imaging of complex geologies
GGR: A sustainable long term growing performance Sophie ZURQUIYAH 86 Capital Market Day - GGR: A sustainable long term growing performance
From Seismic to Geology to Reservoir GGR Yesterday GGR Today GGR Tomorrow Basin Data Multi-client Data Management Multi-client Seismic data library Multi-client Seismic Geoscience data library Data Library Subsurface Imaging…
GGR Division (not including Multi-Client activity) Key Figures Market Positioning (3Q 2013) Strong geosciences brands Total sales Number of employees Technology and broad spectrum of technical expertise 442m 3,350 Quality of…
CGG: New expertise in GGR Geophysics Multi-client Subsurface Imaging Geology Data Base Geology Reservoir Characterization Geology Consulting Petrophysics Software and Consulting Reservoir Data Simulation Management…
GGR: Our priorities looking forward Multi-Client Subsurface GeoConsulting GeoSoftware Data Imaging Management Expand GoM StagSeis & be ready for 2015-16-17 Expand position Maintain growth large lease rounds worldwide From…
CGG worldwide seismic library CANADA / ALASKA 21,000 km2 NORTH SEA 97,000 km2 US Lower 48 CASPIAN 40,000 km2 13,000 (2D) km GoM Total Sales 225,000 km2 (3Q 2013) 420m ASIA AFRICA Net Book Value 11,000 km2 INDONESIA (3Q…
Gulf of Mexico Library: Be ready for the big wave of blocks in 2015-16-17 92 Capital Market Day - GGR: A sustainable long term growing performance
Gulf of Mexico: Lease turnover 2015-2017 93 Capital Market Day - GGR: A sustainable long term growing performance
Expanding from a Seismic to a Geoscience multi-client data library GLOBAL GEOPHYSICAL VALUE-ADDED GEOLOGICAL LIBRARY PRODUCTS KNOWLEDGE BASE Targeted multi-disciplinary approach STRONGER PORTFOLIO GREATER VALUE FOR THE…
Subsurface Imaging Market Leadership: 2013 Welling Report BEST BEST TRUSTWORTHY EXTRA MILE Makes Supplier with BEST FASTEST PROBLEM- IMAGE & UPFRONT TO FIND IMPROVEMENTS THE MOST UNDERSTANDING turnaround of how acquisition SOLVERS…
Subsurface Imaging Market Leadership: 2013 Welling Report best for best for best for best for best for best for best for best for best for best for best for NOISE MULTIPLE TIME TIME TIME DEPTH DEPTH VELOCITY AZIMUTH MULTI- 4D TIME…
Subsurface Imaging: Gulf of Mexico seismic data density doubles every 3 years Market 1 TB Higher data density per km More powerful imaging algorithms StagSeis Increased computing power WAZ HD NAZ M-WAZ NAZ 1 GB Early 3D Our…
GeoConsulting: Expand position worldwide Exploration Appraisal Geologists Remote Sensing Scientists Geophysicists Petrophysicists Production Development Reservoir Engineers Economists Geoscientists 98 Capital Market Day…
GeoConsulting: Offering integrated projects Petroleum play exploration & evaluation Integrated geophysics, geology and geochemistry studies Full field static and dynamic modeling, history matching and production planning -…
GeoSoftware: From seismic to simulation Worldwide market penetration Subsurface Imaging All geographies NOCs, IOCs, Independents, small E&P companies Reservoir Petrophysics simulation Offering all options All functionalities…
Data Management: Expand all capabilities globally Develop unique comprehensive data management service offering Integrating access from core to production data Enhance the value of assets & accelerating decision-making capabilities…
Conclusions Business context is favorable to GGR for continued profitable growth We capitalize on a unique combination of geophysical, geological and reservoir information and expertise to set new industry standards Our…
103 Capital Market Day Enhanced imaging of complex geologies
Financial implications Stphane-Paul FRYDMAN 105 Capital Market Day - Financial implications
2016 Pro-Forma Outlook: Principles Vision for the next three years including the combined impact of: The repositioning and reformatting of CGGs exposure on the Acquisition markets The change in production mix between Contract and…
Equipment: Profitable growth driven by technology & volume Business model Profitability driven by volumes, absorption of manufacturing fixed costs Land: 508XT ramp-up to address the expected mega-crew market Marine: market push…
Acquisition Division: The way forward Business model The right Marine fleet: critical size, high-end, flexibility, long-term contracts The right Land business models: highly productive acquisition, partnerships, continuity of…
GGR: Multi-Client boosted by after-sales ramp-up Business model Marine: focus on key Multi-Client basins - Gulf of Mexico, Brazil, North Sea, West Africa - In 2015-2017, reap the benefits of our 2012-2014 StagSeis spending Land:…