Oddo Forum Catherine Leveau, SVP Investor Relations Lyon, January 7th 2016
Industrial & Financial Review FY 2014 and 9M 2015 are presented before Non-Recurring Charges (NRC), unless stated otherwise
CGG at a glance: An integrated business model in Geosciences Market leader in geoscience industry globally and in each of its divisions, Diversified businesses providing a comprehensive range of leading geological, geophysical and…
Unprecedentedly difficult market environment Prolonged period of low oil prices within a 30- Marine seismic spending 160 60 range 140 (10)% Worsening conditions since the summer 2015 120 (40)% 100 2016 expected to be similar to…
Our long-standing Strategic Rationale From a Seismic Acquisition Company into an Integrated Geoscience Company We have been pursuing this strategy for the last two years We are accelerating our plan as market conditions look set to…
Transformation Plan: what we have delivered so far Marine monthly cost structure G&A expenses Base (m) 161 (51)% (55)% 114 73 18 13 11 vessels vessels vessels 9M 2013 9M 2014 9M 2015 Full cost base including Depreciation &…
Transformation Plan: The next step GGR representing more than 60% of revenue and Contractual Data Acquisition less than 15% Portfolio 2/3rd of the fleet dedicated to Multi-Client programs Rebalancing Focus on high-end added-value…
9
Equipment 10
Equipment: Historically good profitability, impacted by lower volumes in the last two years Resilience to the downturn(1) 9M 2015 total revenue at 335m (revenue, m) Marine Land Low volumes impacted by weak land 1,204 1,142 and…
Contractual Data Acquisition 12
Contractual data acquisition: Difficult market conditions Contractual Data 9M 2015 total revenue at 501m Acquisition Revenue(1) (m) Land & MP(2) Marine data contractual revenue at 368m Marine 1,057 Higher availability rate at…
GGR: Geology, Geophysics & Reservoir 14
GGR: Sustained profitability despite slowdown in revenue 9M 2015 total revenue at 723m, down (19)% yoy GGR Revenue SIR (m) MC Revenue 1,384 1,296 Multi-Client revenue at 303m, down (30)% yoy 697 894 676 Q3 and 9M 2015 cash…
GGR Multi-Client: Key driver for cash generation in 2016-2017 Utilize 3 Marine vessels in average: Business Plan based on 36 vessel months Marine Capex NBV Sep.15-end by age Market-wise: High end positioning Before 2013 No 2D…
Subsurface Imaging: a leading position driven by people and technology Highly skilled engineers producing new algorithms and handling large data volumes Processing capacity c. 45 petaflops GOM seismic data density doubles every c.…
Financial Structure
9M 2015: Efficient cash management throughout the year EBITDAs (In million ) EBITDAs at 379m 1 140 25.1% margin reached in a difficult environment 776 591 379 Operating Cash Flow at 362m 30.3% 25.1% 27.0% 25.1% Capex at…
Managing the liquidity and covenant headroom Net debt and Liquidity by end of September Net Debt at 2,538m o Leverage ratio (Net Debt over LTM EBITDA) at 3.2x, below the 4.0x Cap o Coverage ratio (LTM EBITDA over Cash Interest) at…
Successful refinancing plan and debt profile with more than 215m of debt postponed to 2019 Debt Profile as of Q3-End 2015 64 301 Group Net Debt at 2,538m as of Sept 275 650 2015 448 500 45 165 39 135 50 45 130 0 30 30 30 Two…
Financing plan: launch of the capital increase Rationale: Announced On December 7, 2015 to finance in particular its Transformation Plan Size related to financing the transformation Plan in 2016-2017 Timing: AGM on January 11,…
Sept-End 2015 Balance Sheet and breakdown of Capital Employed 4.15bn Capital Employed by end September Net debt at 2.55bn / Minority Interests at 0.05bn Equity at 1.55bn post Impairment and write-offs 0.8bn Capital Employed for…
Conclusion
A rebalanced company A reduced exposure to Marine contract acquisition: Fleet of 5 active vessels 2/3 of our fleet capacity to be dedicated to Multi-Client programs GGR: A unique integrated geoscience platform with two key…
Appendix
CGG Worldwide Library (End 2014): Focus on safe harbors (GoM, Brazil, North Sea) 27
New segment reporting Equipment: seismic equipment used for data acquisition, both onshore and offshore No change to the existing segment Contractual Data Acquisition: Marine offshore seismic data acquisition and Land and…
Non-Operated Resources (N.O.R) Creation of this new reporting segment to improve Non-Operated Resources OPINC quality of reporting (In million ) 60 Scope Q3 2014 Q2 2015 Q3 2015 Cold-stacked vessels: maintenance costs and Hull…
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