Viridien · EURONEXT:VIRI

Viridien — CGG — Non-Deal Roadshow (September 2017)

25 slides from Viridien's roadshow presentation, September 2017

  1. Slide 1: September 2017 roadshow presentation

    September 2017 roadshow presentation H1 financial results Financial restructuring update All results are presented before Non-Recurring Charges & write-off, unless stated otherwise

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation contains forward-looking statements, including, without limitation, statements about CGG (“the Company”) plans, strategies and prospects. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore,

  3. Slide 3: H1 2017 operational highlights

    H1 2017 operational highlights  GGR: more resilient business segment  Multi-Client sales particularly active in Gulf of Mexico and Brazil ahead of licensing rounds  Long term dedicated processing centers award in Oman and Thailand highlighting clients’ support  Equipment: still impacted by very

  4. Slide 4: H1 2017 P&L

    H1 2017 P&L In Million $ H1 2017 Q1 2017 Q2 2017 Total Revenue 599 249 350 Group EBITDAs excluding NOR 159 37 122 NOR (10) (8) (2) Group EBITDAs 149 29 120 Group OPINC excluding NOR (45) (47) 2 NOR (26) (20) (5) Group OPINC (71) (67) (3) Equity from Investments 0 3 (3) Net financial costs (97) (48)

  5. Slide 5: Strong EBITDA but negative FCF as expected

    Strong EBITDA but negative FCF as expected EBITDAs (In million $)  EBITDAs at $149m, up 14% y-o-y 149 131 120  Operating Cash Flow at $87m, down (77)% y-o-y  As anticipated, negative working capital effect at $(45)m in H1 2017 compared to $+234m in H1 2016 21.7% 24.8% 34.3% 29 11.5%  Capex at $1

  6. Slide 6: Debt increase

    Debt increase Debt and Liquidity by end June  Group Net Debt at $2,497m as of June 2017  Group Liquidity at $315m  Maintenance covenants not applicable at June-end, as a result of French Safeguard and US Chapter 11 procedures 6 * Negative FCF including cash NRC

  7. Slide 7: Financial Restructuring in progress

    Financial Restructuring in progress 7

  8. Slide 8: CGG’s priorities

    CGG’s priorities  Protect the corporate interest of the Company and the full value of its businesses  Timetable to deliver the targeted financial restructuring is of the essence in the present market environment  Preserve the Group’s integrity  Highly interlinked technologies, production units a

  9. Slide 9: Financial restructuring objectives met (1/2)

    Financial restructuring objectives met (1/2)  Norwegian legacy Maritime Liabilities and Nordic Debt fully addressed in Q1  c. $200m nordic debt externalization and extension from 2019 up to 2027 Maritime Costs Profile as of 31/12/2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Maritime

  10. Slide 10: Financial restructuring objectives met (2/2)

    Financial restructuring objectives met (2/2)  Full Equitization of the principal amount of the unsecured debt leading to substantial Group deleveraging  $1.9bn coming from $1.5bn Senior Notes and $0.4bn Oceanes  Extension of the maturity of the secured debt to 2023, 5 years from restructuring clo

  11. Slide 11: $2.1bn net debt reduction by YE 2017 on pro forma basis

    $2.1bn net debt* reduction by YE 2017 on pro forma basis  Net Debt before restructuring  Net Debt after restructuring  $2.45bn by YE 2016  $0.45bn by YE 2016 (pro forma basis)  $2.85bn target by YE 2017  $0.725bn target and pro forma by YE 2017 = $(2.1)bn reduction 11 * Net Debt including Capi

  12. Slide 12: Senior debt profile: maturities moved to 2023/2024

    Senior debt profile: maturities moved to 2023/2024  Senior debt down from $2.75bn before Restructuring to $1.1bn post restructuring  Maturities extended to January 2023 and January 2024, assuming January 2018 for the Restructuring completion date  Average cost of debt at 7.0% cash + 5.0% PIK  c.

  13. Slide 13: Group liquidity: $1bn improvement at YE 2019 horizon

    Group liquidity: $1bn improvement at YE 2019 horizon Restructuring Savings (over 2017-2019) Additional Liquidity  ML mitigation & Nordic Loan: c. $300m  Net New Money: c. $300m  Cost of Debt reduction net of fees: c. $200m  Basket allowing for new Secured debt: c. $200m 13

  14. Slide 14: Conclusion

    Conclusion (ccc cgg.com Passion for Geoscience

  15. Slide 15: Outlook: 2017 market outlook unchanged

    Outlook: 2017 market outlook unchanged  Unchanged 2017 guidance  2017 operating results expected to be in line with 2016  Multi-client cash capex expected to be at $250-300m, with cash prefunding rate above 70% and industrial capex at $75-100m  Cash generation expected to be lower in 2017 due to

  16. Slide 16: Outlook: 2017 market, a contrasted activity

    Outlook: 2017 market, a contrasted activity  Equipment: low volumes in a context of uncertain recovery horizon  Data acquisition:  Impacted by the usual unfavorable seasonality in H2  Strong technology position with Topseis in North Sea  Multi-Client: sales supported by good positioning and rec

  17. Slide 17: Thank you

    Thank you (ccc Visit our website at cgg.com Passion for Geoscience

  18. Slide 18: Appendix

    CWCGG Passion for Geoscience Appendix Visit our website at cgg.com

  19. Slide 19: H1 2017 P&L by segment

    H1 2017 P&L by segment Passion for Geoscience cA Cc G G

  20. Slide 20: H1 2017 P&L

    mes H1 2017 P&L Consolidated Income Statements First Half First Half Variation 2016 2017 oo In Million $ a Equipment Elimination EBITDAs before NRC 130.9 148.7 14% NRC before impairment Income before NRC Contractual Data Acqu Corporate Operating Income after NRC (110.9) "| (495.1) "| (76)% Net Finan

  21. Slide 21: Q2 Operational Review

    Q2 Operational Review Passion for Geoscience cA Cc G G

  22. Slide 22: GGR: solid multi-client sales boosted by licensing rounds

    GGR: solid multi-client sales boosted by licensing rounds Revenue  Total revenue at $221m, up 12% y-o-y (In million $) MC Revenue SI & Reservoir  Multi-Client at $133m, up 39% y-o-y 221 196  Multi-client sales particularly active in Gulf of Mexico (US & Mexico) and Brazil 158 96 133  Prefunding

  23. Slide 23: Equipment: persistent low volumes

    Equipment: persistent low volumes Revenue (In million $)  Total sales at $53m, up 20% y-o-y Land Equipment Marine Equipment  Sales split: 49% Land and 51% Marine 53  Land sales: equipment delivered to Algeria and India; 44 active gauges business 32 27  Marine sales: low marine sales including so

  24. Slide 24: Contractual Data Acquisition: continuing competitive market environment

    Contractual Data Acquisition: continuing competitive market environment Revenue  (In million $) Total revenue at $82m, up 39% y-o-y Land & MP Marine  Marine revenue at $61m, up 173% y-o-y  52% allocation to marine contractual activities (71% in Q1 82 2017) 67 21 59  Outstanding fleet operational

  25. Slide 25: Non-Operated Resources (N.O.R)

    Non-Operated Resources (N.O.R) OPINC  EBITDAs at $(2)m (In million $)  Operating Income at $(5)m Q2 2016 Q1 2017 Q2 2017  Amortization of excess streamers (5)  Global Seismic Shipping (GSS) (20) (23)  50/50 with Eidesvik, accounted for in Equity from Investments  3 active vessels and 4 cold-st

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