Viridien · EURONEXT:VIRI
Viridien — CGG — Q3 2015 Earnings Presentation
21 slides from Viridien's earnings presentation, 2015
Slide 1: 3rd Quarter 2015 Financial Results
3rd Quarter 2015 Financial Results Next step in our Transformation Plan • Focus on high added value businesses • Five operated vessels mainly dedicated to Multi-Client Q3 2014, Q2 2015 and Q3 2015 are presented before Non-Recurring Charges (NRC), unless stated otherwise
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,
Slide 3: Our long-standing Strategic Rationale
Our long-standing Strategic Rationale Transform CGG, from a Seismic Acquisition Company into an Integrated Geoscience Company We have been pursuing this journey for the last two years Today, we are intensifying our plan due to market conditions that could be lower for longer Remain positione
Slide 4: Transformation Plan: what we have delivered so far
Transformation Plan: what we have delivered so far Marine monthly cost structure G&A expenses Base (m$) 100 161 (51)% (55)% 80 114 49 73 YE 2013 Q3 14 Q3 15 Full cost base including Depreciation & Amortization 3Q 13 3Q 14 3Q 15 Headcount(2) Total Capex(1) (number of employees) (m$) 11,060 (46)% (31)
Slide 5: Transformation Plan: The next step
Transformation Plan: The next step Focus on high-end added value businesses Portfolio Operated fleet 2/3 dedicated to Multi-Client programs Rebalancing GGR representing more than 60% of revenue and Contractual Data Acquisition less than 15% Further Marine 3D fleet reduced from 11 to 5 vessel
Slide 6: Q3 2015: Business Overview
Q3 2015: Business Overview ccc
Slide 7: Q3 2015: A good cash performance
Q3 2015: A good cash performance Group Revenue (In million $) Group Revenue at $470m, stable sequentially 694 Operating Income at $4m Reduced losses for Contractual marine data acquisition 473 470 EBIT at $15m, including a $11m contribution from the Equity from Investees Positive contribut
Slide 8: Equipment: Impacted by lower volumes
Equipment: Impacted by lower volumes Revenue (In million $) Marine Equipment Sales at $103m, quite stable sequentially Land Equipment 180 Low volumes impacted by weak marine sales 40 71% Land and 29% Marine 107 103 Internal sales representing 7% of total sales 26 29 140 81 74 Resilient OPI
Slide 9: Contractual Data Acquisition: Deteriorated market conditions
Contractual Data Acquisition1: Deteriorated market conditions Contractual Data Total revenue at $152m, up 17% sequentially Acquisition Revenue (In million $) Land & MP Contractual Marine revenue at $110m, up 29% Marine sequentially 235 Higher availability rate at 84%, compared to 74% in Q2 60
Slide 10: GGR: Resilient profitability
GGR: Resilient profitability GGR Revenue Total revenue at $227m, down (12)% sequentially (In million $) SI & Reservoir MC Revenue Multi-Client at $84m, down (30)% sequentially 305 Multi-Client capex down (14)% in Q3 257 33% of the fleet dedicated to multi-client production 227 172 Prefundi
Slide 11: Non-Operated Resources (N.O.R)
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 amortization (4) (6) (5) Amortization of streamers in excess 179 1
Slide 12: Financial review
Financial review ccc 12
Slide 13: Q3 2015: Cash management is paying off
Q3 2015: Cash management is paying off EBITDAs (In million $) EBITDAs at $122m A 26.0% margin 208 Operating Cash Flow at $145m 112 122 Not including $(25)m non-recurring payments related 30.0% 23.6% 26.0% to the ongoing Transformation Plan Q3 2014 Q2 2015 Q3 2015 Capex at $98m CAPEX Mult
Slide 14: Sept-End 2015 Balance Sheet and breakdown of Capital Employed
Sept-End 2015 Balance Sheet and breakdown of Capital Employed $4.15bn Capital Employed by September-end Net debt at $2.55bn / Minority Interests at $0.05bn Equity at $1.55bn post Impairment and write-offs $0.8bn Capital Employed for Contractual Data Acquisition Post Impairment $0.6bn on a
Slide 15: Managing the liquidity and covenant headroom
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 5.1x, above the 3.0x floor Solid liquidity at $440m (versus $472
Slide 16: Conclusion
Conclusion ccc
Slide 17: A rebalanced company
A rebalanced company A reduced exposure to Marine 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 businesses Subsurface Imaging and Reservoir, a global, leading position Mu
Slide 18: Appendix
Appendix ccc
Slide 19: New segment reporting
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 Multi-Physics Solely dedicated to external clients (proprietary market
Slide 20: Data Acquisition: Deteriorated market conditions (former breakdown)
Data Acquisition: Deteriorated market conditions (former breakdown) Data Acquisition Revenue Total revenue at $225m, up 1% q-o-q Land & MP (In million $) External revenue at $148m, up 25% Marine 418 Marine revenue at $183m, up 2% q-o-q 60 Higher availability rate at 84%, compared to 74% in Q
Slide 21: GGR: Continuing sustained profitability (former breakdown)
GGR: Continuing sustained profitability (former breakdown) GGR Revenue Total revenue at $227m, down (12)% q-o-q (In million $) SI & Reservoir MC Revenue Multi-Client at $84m, down (30)% q-o-q 305 Multi-Client capex down (14)% in Q3 257 33% of the fleet dedicated to multi-client production 22