CGG 2014 May Presentation All results are presented before Non-Recurring Items linked to Fugro (NRFI) and before impairment & write-off, unless stated otherwise
Agenda 1. CGG at a glance : An integrated business model 2. Q1 2014 Results 3. Equipment Division 4. Acquisition Division 5. GGR Division 6. Financial Review 7. Conclusion 3
CGG at a glance: Integrated business model 4
CGG at a glance: An integrated business model Market leader in geoscience industry globally, providing a Diversified business comprehensive range of leading geological, geophysical and reservoir capabilities Revenues split by…
Our strategy: 2014-2016 Transformation Plan From cyclical and capital-intensive businesses to more profitable, less capital intensive and more cash generating businesses Strong organic growth for equipment 35% 30% 25% reduction in…
Q1 2014 Results 7
Q1 2014 Results: In line with our expectations Group Revenue Group Revenue at 806m, down 7% y-o-y (In million ) Equipment at 206m, down 18% 955 GGR at 290m, up 12% 871 Acquisition at 559m, down 6% 806 Solid operational…
Focus on Management actions 2014-2016 Transformation Plan on track The Symphony vessel was de-rigged as planned Ongoing reduction in the marine fleet and associated support structure Restructuring of Land North America activity…
Equipment Division 10
Equipment: Sercel a leading seismic equipment provider 2013 Key Figures Market Positioning Strong footprint in land, 70% market share in Total sales EBIT Number of cable systems 1,045m 293m employees Strong footprint in marine, 95%…
Drivers for Marine and Land equipment markets Marine Sentinel, the leading streamer km Sentinel sold New builds technology 1000 15 Sentinel, the only true solid cable, launched in 2006 800 10 600 Sentinel RD launched in 2012…
Equipment profitability: Operating margin driven by volumes and product mix KUWAIT2 mega- Sercel to benefit from strengthened crews 150 000 to 200 000 channels / crew presence in Middle East Historical long-term partnership with…
Acquisition Division 14
Acquisition: Ongoing right sizing 2013 Key Figures Market Positioning Total sales EBIT(1) Industrial Among top 3 leaders with 2,226m 56m CAPEX WesternGeco, PGS 250m High-end player in Land acquisition EBIT Vessel availability /…
Strategic Roadmap: Targeted fleet of 13 vessels Fleet size by May 2014: 17 vessels on the open market HIGH-END CAPACITY MID-END CAPACITY 12-20 streamers 8-12 streamers Oceanic Sirius Oceanic Vega Geo Coral Geo Caspian Geowave…
Land Acquisition: Refocusing on niche & techno markets & partnerships The Land situation: An enabler for Sercel and Processing activities BUT Low margins / High risks / Capital-intensive business Activity showing a loss in 2012 &…
GGR Division 18
GGR: Geology, Geophysics & Reservoir 2013 Key Figures Market Positioning Total sales EBIT Multi client library in key areas (Gulf of 1,296m: 585m Multi- 317m Mexico, North Sea, Brazil) client and 711m SI & EBIT margin Technology and…
Multi-Client: Building librairies in key areas TROIS GoM StagSeis surveys IBALT, DEUX, TROIS: 3 years program started in July 2012 and finishing end 2014, ahead of 2016-2018 licensing rounds 20 320km2 data acquired with…
Subsurface Imaging: Maintaining our leadership position 43 Processing centers worldwide Processing Revenue 711 442 485 403 387 7 2009 2010 2011 2012 2013 6 5 CPU PFlops GPU 4 3 2 1 0 64 k CPU Cores 2008 84 k CPU…
Geoconsulting and Geosoftware: Developing integrated workflow Geoconsulting: offering integrated projects Acknowledged leader in geopolitical multi-client products and reports, and high-end consulting services across the E&P value…
Financial Review 23
Balance Sheet as of end of March 2014 Capital Employed Total Capital Employed at 6,279m as of end of March Multi-Client Library Book Value up at 916m Increase mostly due to the IBALT program in the Gulf of Mexico Cash…
Accelerated Refinancing Program with Senior Debt Maturity extended by 2 years 2013 Senior Debt Maturity Profile (in m) In April, issue of two new High Yield Bonds A 400m High Yield Bond at 5.875% due 2020: 400m due 2020 at 5.875%…
Conclusion
2014 Outlook Equipment Outcome of the 1st tender in Saudi Arabia expected very soon: 50 000 or 200 000 channels count crews 1st delivery of 508XT expected in July New set up with Argas operational in H2 Q4 historically the highest…
2014 Management priorities reaffirmed Seismic market conditions expected to remain flattish CGG management fully committed to implementing its 2014-2016 transformation plan First steps in the Acquisition division downsizing plan…
2014-2016 Strategy: Rebalancing portfolio 2013 Main Drivers 2016 3.8bn Revenue At unchanged market conditions 4.0bn Revenue 11% Ebit margin Revenue before intra-group eliminations 15% Ebit margin Equipment Revenue: 1.2-1.3bn 1.5…
Thank you
Equipment: 1Q14 Resilient despite lower revenues Land Equipment Revenue Marine Equipment (In million ) Total sales were 206m, down 18% 317 External sales at 163m, down 14% Lower land sales across all regions following 251 37%…
Acquisition 1Q 14: Still difficult market conditions Land & Airborne Acquisition Revenue Acquisition revenue at 559m, down 6% Marine (In million ) External revenue at 353m, down 16% 594 559 145 459 568 106 Land & Airborne…
GGR 1Q 14: Continuing Sustained Profitability MC Revenue GGR Revenue SI & Reservoir (In million ) GGR revenue at 290m, up 12% y-o-y 371 Multi-Client at 127m, up 18% y-o-y, the best 206 Q1 performance since 2008 290 260…
Q1 2014 Cash: A typical Q1 pattern EBITDAs EBITDAs : 188m, a 23.4% margin (In million ) 272 280 Equipment at 52m, a 25% margin Acquisition at 79m, a 14% margin 188 GGR at 159m, a 55% margin 31.3% 29.3% Cash Flow from…
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