Roadshow presentation January 2015 Catherine Leveau, SVP Investor Relations
Key messages Market situation Seismic market reaching a trough in 2014 could last along 2015: Pressure on prices and volume for Marine acquisition Translating into project delays and wait-and-see attitude especially in Multi-client…
End of September 2014 key figures by division In million Group Acquisition Margin REVENUE 2,189 Margin REVENUE 1,458 EBITDA 591 27% EBIT 91 4% EBITDA 248 17% Industrial Capex 180 EBIT (17) (1)% MC Cash Capex 482 Equipment…
Short term challenges: Impact of 60 oil price on our clients Clients Geographical footprint Seismic / CGG position Very Limited Seismic Shale North America No activity in Shale (except in Land multi-client) Middle East Long-term…
Transformation Plan on track Marine fleet reduction Marine 3D fleet already reduced to 13 vessels Marine fleet right-sizing and acceleration from 18 to 13 vessels as soon as 2014 Land & Airborne restructuring New Argas land…
Proactive debt management: First major debt installment pushed back to 2019 Debt Maturity Profile as of Year-End 2014 Debt Maturity extension All amounts in m Fugro V. Loan & 'Nordic' Facility Refinancing transactions with the…
StagSeis: a key driver for cash generation in 2015 and onwards Western & Central GoM lease rounds cycle (number of blocks) 3 year acquisition program (IBALT, Expiration by Areas (EB, AC, GB, KC, GC, WR) Blocks 1 000 DEUX, TROIS)…
CGG Focus on cash generation Transformation Plan implemented and accelerated across CGG CGG with a lower cost base by end 2014 to benefit from potential upside in the Acquisition market Cash generation, a major focus sustained…
A resilient platform well positioned for rebound
Equipment division: a resilient, profitable and cash generative business model Excellent Resilience to the downturn Strategy to generate sustained replacement (revenues, m) revenue through a large installed base showing 32% 32%…
GGR: a non cyclical, growing and profitable business Subsurface Imaging: Leadership position Excellent Resilience to the downturn Over 2,200 experts worldwide, specialists in (revenues, m) solving difficult imaging problems More than…
GGR multi-client: ideally positioned in legacy basins CGG Worldwide MC library Increasing demand in traditionnal legacy basins (Gulf of Mexico, North Sea, Brazil) for high quality images, North Sea key to drilling opportunities US…
Acquisition division: transformation and restructuring to drive future recovery (In million US) Marine: fleet downsized by end 2014, ahead of competitors 5 Vessels taken out and fleet reformatted down to 13 6.3% vessels to: Keep…
CGG: a resilient platform well positioned for rebound Equipment margin rebound to be driven by higher land volume Acquisition, a reduced footprint in land and marine with a lower cost base GGR multi-client sales increase to be…
Conclusion
An integrated model to better anticipate and meet clients needs Equipment Acquisition GGR Sercel sells its equipment to the land and GGR builds its multi-client library with marine business lines CGG marine fleet Sercel products…
The StagSeis success: evidence of positive collaboration across divisions StagSeisTM Shows Strong Improvement in Resolution from WAZ Equipment Yesterday WAZ final image (after full Today StagSeisTM Fast-Trax image processing)…
CGG ready to weather low oil prices period Sercel revenue and profitability remained solid driven by: Replacement market of installed base Increasing demand for higher resolution of Middle-East depleting reservoir Acquisition…
Thank you Q2 2013, Q1 2014 and Q2 2014 are presented before Non-Recurring Charges (NRC), unless stated otherwise
Equipment: Sercel a leading seismic equipment provider 2014 YTD(1) Key Figures Market Positioning Strong footprint in land, 70% market share in Total sales EBIT Number of cable systems 583m 109m employees Strong footprint in marine,…
GGR: Geology, Geophysics & Reservoir 2014 YTD(1) Key Figures Market Positioning Total sales EBIT Multi client library in key areas (Gulf of 894m: 388m Multi- 198m Mexico, North Sea, Brazil) client and EBIT margin Technology and…
Acquisition division 2014 YTD(1) Key Figures Market Positioning A Marine seismic fleet dedicated to Total sales EBIT Number of high-end market 1,458m (17)m employees 2,300 The high-end Land acquisition player EBIT Industrial Vessel…
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