CGG FINANCIAL PRESENTATION
MARCH 2021
cgg.com Agenda
01 COMPANY OVERVIEW
02 BUSINESS HIGHLIGHTS
03 FINANCIAL REVIEW
04 CONCLUSION
cgg.com 2 SECTION 1:
COMPANY OVERVIEW 3
cgg.com 3 CGG: A People, Data and Technology Company
Asset Light Company… …With Three Core Businesses (1)
GGR
Leveraging Exceptional People… Geoscience #1 in technology Breadth and depth of expertise Established market and technology 34% driving innovation and providing leader in subsurface imaging, #1 market share (2) outstanding service geology, geoscience software and services of 41%
…Differentiated Data… Multi-Client #1 in technology Maximizing the value of data through One of the industry’s most technically advanced seismic data and geologic and 3D coverage our expertise and technologies 36% studies providers in the world’s key 24% market share (2) prolific hydrocarbon basins
…And Remarkable Technology Equipment #1 in technology 30% Leading the industry in advanced Established market and technology imaging and geoscience leader in marine, land, ocean floor #1 market share (2) & digital technologies and downhole seismic equipment and of 46% gauges
Sources: Company information, Select Broker research Notes: (1) Pie charts indicate % share of 2020 Segment Revenue (2) CGG market share against competitors for 2020, as per Company estimates 4 Delivered on Promises to the Market
Promises to the Market… …CGG Delivered
. Cease to operate vessels by Marine partnership with Shearwater closed on Marine 2021 8 January 2020
. Wind down land acquisition Last crew stopped in early February 2020 Land operations
. Sell out of Multi-Physics Sale to Xcalibur Group announced in August 2020 Multi-Physics business
Seabed . Exit Seabed operations Exit from Seabed data acquisition on 30 December 2019
Streamlined Headcount decreased by 750 employees and cash costs . Reduce costs Organization reduced by $(40)m with respect to 2019
Source: Company information 5 Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 1 Brent Oil Price Historical Evolution and Forecast ($/bbl) vs. Global Upstream Capex Spend (1) ($bn) 2019 2020 2021 2022 Improved medium term outlook $338bn $243bn $252bn $288bn with consensus forecasts Constructive Medium $69,4/bbl pointing to Brent oil of $57/bbl in 60 Term Oil Price Outlook as 2021 and $58/bbl in 2022 Coronavirus Impact Abates …Supportive of upstream 40 Capex, increasing by c.19% over 2020-22 20 janv-20 déc-20Mar-21 déc-21 déc-22 Historical Broker Consensus (2) Forward Curve Total Upstream Capex Spend
2 Mboed Total Production and Capex of Key NOCs (3) $bn
Total production of key NOCs expected 40 to grow c.5% through 2025, with Capex 125 forecast to increase by c.9% 30 100 Long-standing relationships with NOC Upstream 75 NOCs which continue to spend Spending is Expected 20 50 on traditional upstream oil and to Remain Significant gas 10 25 0 0 2020 2025 2030 2035 Production Capex
Sources: Company information, Bloomberg, Wood Mackenzie Notes: (1) Annual global spend (forecasts for 2021 and 2022) (2) Bloomberg consensus median as of March 2021 (3) Aggregate production and Capex for Saudi Aramco, ADNOC, 6 Sinopec, ONGC, Petrobras, Pemex and Sonatrach Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 3 Global Upstream Capex vs. CGG’s Geoscience Revenue Split Industry Capex (1) CGG’s Geoscience Revenue 2017 2020 2017 2020 75% of CGG’s geoscience 11% 9% Increasing Focus on revenue generated from reservoir development and Reservoir Development 25% and Production 35% production phases 89% 91% 65% 75%
Development & Production Exploration
4 Global Energy Mix Evolution (%) Leading technology portfolio to 13% 13% 15% 17% gain exposure to increasingly 3% 5% 19% 10% 15% diverse end markets Energy 28% 27% 22% 21% 17% Transition Set to Outpace 12% Ongoing contracts across 23% 23% 24% Traditional E&P Spending 25% 25% Carbon Capture, Utilisation and Sequestration (“CCUS”), 33% 32% 29% 26% 23% Structural Health Monitoring 2015 2020 2025 2030 2035 (“SHM”), geothermal, and digital (2) solutions Oil Natural Gas Coal Renewables Other
Sources: Company information, Rystad, BP Statistical Review Notes: (1) Total Capex spend of Majors IOCs, Independent E&Ps, and NOCs globally (2) Biofuels, Nuclear, Hydro, Bioenergy 7 Sector Trends Play to CGG’s Competitive Strengths CGG’s Competitive Position 5 Global Software Spend on Subsurface, Data and Analytics ($bn) (1)
Leading geoscience 6% p.a. 5,5 technologies with a suite of 5,2 Increased Focus 4,9 imaging and digital solutions on Digitalisation and 4,6 (including data management 4,2 4,4 4,0 and smart digital solutions), Technology Solutions 3,8 Across Energy Players complemented by top-15 High Performance Computing of 272 PFLOPS 2018 2019 2020 2021 2022 2023 2024 2025
Source: Company information Note: (1) Total market for Oil & Gas software sized at c.$10-$15bn in 2018, with subsurface, data and analytics comprising 25-35% of total spend 8 Sector Leading ESG Credentials
OUR CARBON NEUTRALITY STATEMENT KEY ENVIRONMENTAL TARGETS
We pledge to be carbon neutral by 2050 GHG 50% reduction by emissions 2020: 2 K tons 2030 By lowering our direct emissions (scope 1 & 2) Scope 1 (1) 100% by 2050 to the lowest practical level and by bridging the gap to zero emission by way of carbon credits, only if they are derived from our own activity
With an intermediary milestone in 2030 GHG 50% reduction by emissions 2020: 51 K tons 2030 of a target reduction of 50% of our direct emissions Scope 2 (1) 90% by 2050
OUR ESG RATINGS
% Green 50% in 2030 (4) 2020: 30% Energy (2) 90% in 2050 (4)
N°1 ESG Energy Services
Power Usage 2020: 1.32 Below 1.2 by 2030 Efficiency (3)
Notes: (1) K tons CO2 eq (2) Total kwh consumption Scope 1 & 2 (3) 3 main centers (4) Sooner depending on availability and prices 9 SECTION 2:
BUSINESS HIGHLIGHTS 10
cgg.com 10 Key Credit Highlights
1 Asset-Light Business, Focused on Differentiated Technologies, with a Strategic Fit with Secular Industry Trends
2 Leading and Resilient Market Position with Strong Cash Flow Generation Through the Cycle
3 Judicious Balance Sheet and Liability Management with Ample Liquidity
4 Business Diversification Aligned with Energy Transition with a Supportive Sector-Leading ESG Strategy
5 Experienced Management Team led by a CEO with a Long Industry Tenure
11 1 CGG Offers Differentiated High Value Additive Service
Legacy Technology New Technology
Water depth: c.1.5km
Reservoir level, c.9-10km
Imaging Technology Breakthroughs Drive Business Value
Source: Company information 12 1 Geoscience: Proactive Pivot towards Development & Production
Majority Exposure to Stable Progressive Shift in Revenue to Resilient Operations Part of Upstream Value Chain 2017 2018 2019 CGG’s Geoscience business Reservoir 7% 6% 6% is increasingly focused on optimisation, 14% 13% 17% the Reservoir Development production 34% & Production segment in and 40% 40% development 11% 10% upstream value chain -focused 12% revenue streams 35% 30% 25% Development & Production Exploration Reservoir Management Services Data Management Other NOCs & IOCs Diversified Customer Base (1) as Key Customers 2018 2019 2020 CGG’s long-standing 3% 3% 3% relationships with all client profiles: NOCs, 25% 29% 34% 28% 39% Independents and IOCs 46% ensure a steady revenue stream
27% 33% 30%
Large IOCs Majors NOC Small IOCs
Source: Company information Note: (1) Pie charts indicate % share of Segment Revenue by type of customer 13 1 Geoscience: Industry Leading Algorithms and High Performance Computing
Technology to Optimize Harnessed by High Performance Computing… … Production & Reservoir Development Exceptional People Shifted strategy to focus on technology Technical staff comprised of 131% 54% 7% Advanced value-add analytics for our clients 70% post graduate degrees and 27% PhDs High Performance Computing up five-fold since 2017 Committed to innovation with c.11% of revenue PFLOPS (1) 255 dedicated to R&D 3% On a par with leading technology companies, with top-15 high performance processing power 15% 166
1,892 11% 237 272 Global Intel Stratix 10 Google Cloud TPU v3 Pod 55% 0.01 PFLOPS 100 PFLOPS Staff 150 15%
Apple iPhone 12 CGG Computer Power 0.01 PFLOPS 272 PFLOPS 16 18 2018 2019 2020 Production R&D Nvidia DGX-2 A100 server Fugaku Super Computer (2) Graphics Processing Unit (GPU) Central Processing Unit (CPU) IT Operations 2.5 PFLOPS 537 PFLOPS YoY Growth Country Support
Differentiated leading technology with High Performance Computing to match the world’s largest technology companies
Sources: Company information, Top500 ranking Notes: (1) Peta Floating-Point Operations Per Second is a measure of computer performance (2) Most powerful non-distributed computer system in the world as per November 2020 14 edition of the Top500 ranking 1 Geoscience: Resilient Revenue from Dedicated Imaging Centers
Open Centers (16) Dedicated Centers (7) Technology Leadership Regional Hubs (5) Superior offering to our clients reinforces market leadership and attracts premium pricing Customer satisfaction as demonstrated by Kimberlite surveys confirms CGG’s “best performer” position amongst peers
Stavanger x 2 Oslo Dedicated Centers Calgary London Moscow Long-term collaboration with leading industry players, Vienna Pau Paris Beijing providing deep understanding of their businesses Flexible & scalable business model Houston Cairo Muscat Villahermosa Abu Dhabi Mumbai Long term contracts provide visibility over future revenue Kuala Lumpur DPC Profitability through the cycle Singapore Jakarta Resilient Geoscience Production/Head ($k)
Rio de Janeiro Perth 252 249 238
2018 2019 2020
Geoscience business provides a stable base of revenue resistant to broader industry volatility
Source: Company information 15 1 Multi-Client: Extensive Presence in Mature, Established Regions
+70k km2 Alaska 2 N. Sea +34% since 2018 Leading coverage totaling > 1.2 million km of 3D data 348 km2 Asia 277k km2 – By comparison, TGS’ and PGS’ libraries cover c.1.0 million km2 and 29k km 2D c.850k km2 of 3D data respectively
+6k km2 Extensive contiguous datasets in Brazil, Gulf of Mexico, UK and +15% since 2018 Norwegian North Sea Caspian GOM Australia U.S. Land 13k km 2D New premium-quality surveys in Australia, Brazil, North Sea and U.S. 54k km2 400k km2 55k km2 Land 28k km2 Multi-Physics Brazil CGG Multi-Client products feature advanced imaging technology 332k km2 Africa Ongoing digitalization efforts, with industry partnerships to build a 68k km2 +62k km2 common ecosystem for Multi-Client data +23% since 2018
Data Library NBV Age Split (1) Data Library NBV Regional Split (1) High Prefunded Multi-Client Investments across the Period $m 1% 5% 34% 16% 9% up to 4 years old U.S. Land 97% 118% 89% up to 3 years old Europe - Africa up to 2 years old Others 223 239 33% up to 1 year old 186 North & South America WIP 53% 19% 31% 2018 2019 2020 Pre-Funding Rate Leading, high-quality data library provides significant after-sales potential, whilst pre-funding ensures minimal cash outlay for new projects
Source: Company information Note: (1) Split as of 31 December 2020, with net book value of our Multi-Client data library standing at $492m (including IFRS 15 adjustments) 16 1 Equipment: Well-Established and Differentiated Market Position
Complete Portfolio of EquipmentTargeting Key Regions and NOC Projects Technology and Market Leadership
Clear leadership with largest market share at c.46% (1) Land & TZ The largest installed base, creating a competitive advantage and a strong platform for leveraging market growth Marine A broad and unique portfolio of leading-edge technology with Ocean Bottom 326 registered patents Nodes c.10% of revenue dedicated to R&D, securing future positioning
Downhole Manufacturing flexibility and high operating leverage to absorb market volatility
Land Equipment Revenue ($m) Resilient Throughout the Crisis Diversification beyond Oil & Gas, securing long-term growth through environmental monitoring, SHM, and CCUS 441 17 29 314 9 77 287 31 11 14 82 50 318 192 212 Resilient revenue from a leading 2018 2019 2020 Land Marine Downhole Non-Oil & Gas market position and largest installed base
Sources: Company information, Select Broker research Note: (1) CGG market share against competitors for 2020, as per Company estimates 17 2 Growing Market Share Across All Segments, Even Through the 2020 Crisis
Geoscience Multi-Client Equipment
15% 16% 15% 18% 24% 25% 21% 27% 30% 4% 4% 4% 5% 6% 6% 5% 6% 27% 7% 5% 13% 28% 21% 8% 35% 34% 34% 19% 15% 14%
30% 26% 30%
46% 41% 40% 41% 44% 43% 22% 23% 24%
2018 2019 2020 2018 2019 2020 2018 2019 2020
CGG Competitor 1 Competitor 2 Competitor 3 Others
Leading market position across all three segments re-affirmed despite recent macro-uncertainty
Sources: Company information, Select Broker research 18 2 CGG Response to 2020 Crisis Ensured Continued Profitability and Positive Cash Flow
Manage Health & Safety while Proactively Control Cost Base and Cash Focus on Core Strengths Preserving Business Continuity % of Employees . Cash costs reduction of around $90m of fixed . Geoscience more resilient, revenue down only Working in Office Working from Home cash costs annualized 15% year-on-year Working Rotational Not Working 2% 1% 3% . Multi-Client cash Capex of $239m (vs. $270m . Multi-Client surveys, 89% prefunded and focused budgeted); 89% pre-funded on key mature basins (Santos & Campos in 12% 5% 4% 4% Brazil, Cornerstone and North Viking Graben in 171% the North Sea) 51% 54% 58% . Equipment delivered over 320,000 land channels 68% 86% enlarging its installed base 63% 68%
. Improving existing capabilities to become a 67 73 58 39% 44% 41 significant player in geothermal energy, CCUS, 35% earth observation and monitoring and structural 17% Q1-20 Q2-20 Q3-20 Q4-20 health monitoring 01 - Apr 22 - Jul 16 - Sep 11 - Nov Multi-Client Capex ($m) Pre-funding (%)
Generated positive segment cash flow of $50m before negative change in working capital (1) despite challenging environment, whilst reinforcing the Company’s leading positioning
Source: Company information Note: (1) $(89)m change in working capital driven by $(26)m change in inventory, $(31)m change in receivables, $(58)m change in other working capital and $28m change in non 19 recurring charges 3 CGG’s Business Robust in the Face of Recent Volatility
Positive Adjusted Free EBITDAs (1) ($m) Generation Segment External Revenue ($m) Even Through the Crisis
1,227 1,400 955 45% 51% 42%
441 97% 118% 89% 314
287 721 517 575 556 340 460 402 255 99 395 385 328
(78) (75) (64) FY2018A FY2019A FY2020A (223) (186) (239)
FY2018A FY2019A FY2020A Geoscience Multi-Client Equipment Adjusted EBITDAs Multi-Client Investment Industrial Capex Adjusted EBITDAs Adjusted EBITDAs Prefunding rate – Capex Margin (Multi-Client)
Source: Company information Note: (1) Before non-recurring charges 20 3 Strong Balance Sheet and Robust Liquidity Coming out of 2020 Crisis
Sufficient Liquidity Maintained Historically, and Post-Refinancing . Liquidity amounted to $385m as of 31 December $m Post-refinancing 2020, significantly above minimum liquidity 800 liquidity constituted of $275m of cash requirements 596 610 623 538 546 and $100m of RCF 600 475 availability 447 434 465 419 441 385 . Gross debt before IFRS 16 was $1,234m 400 375 and net debt was $849m 315 200 . 0 Gross debt after IFRS 16 was $1,389m Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Post and net debt was $1,004m Minimum Liquidity Trapped Cash Liquidity Refi
Strong Balance Sheet . Segment leverage ratio of Net debt to Segment EBITDAs was 2.8x Equity & Minority Goodwill $1,19bn $1,16bn Interest $0,17bn Non-current Liabilities MC Library $0,49bn Fixed Assets $0,43bn $1,39bn Debt Cash $0,39bn
Current Assets $0,88bn $0,66bn Current Liabilities
$3.38bn $3.38bn Assets Liabilities
Source: Company information 21 4 Tangible Steps in Diversifying End-Markets, Including Energy Transition
Digital Infrastructure Energy Earth Geosciences Monitoring Transition Observation
Ability to redeploy existing people, data, and technology towards new end markets
Core competencies in application of technology, science and mathematics, and High-Performance Computing are highly transferable
22 Key Credit Highlights
1 Asset-Light Business, Focused on Differentiated Technologies, with a Strategic Fit with Secular Industry Trends
2 Leading and Resilient Market Position with Strong Cash Flow Generation Through the Cycle
3 Judicious Balance Sheet and Liability Management with Ample Liquidity
4 Business Diversification Aligned with Energy Transition with a Supportive Sector-Leading ESG Strategy
5 Experienced Management Team led by a CEO with a Long Industry Tenure
23 SECTION 3:
FINANCIAL REVIEW 24
cgg.com 24 2020 Revenue Down in Light of Crisis, but with Signs of Resilience and Margins Holding Up
Segment External Revenue ($m) Adjusted EBITDAs (1) ($m) and Margin (%)
1,227 1,400 955 45% 51% 42%
556 721 402
441 97 314 42 287 517 575 23 340 652 558 401 395 385 328
(44) (28) (22) FY2018A FY2019A FY2020A FY2018A FY2019A FY2020A Geoscience Multi-Client Equipment GGR Equipment Eliminations and Other Adjusted EBITDAs margin
Adjusted EBITDAs margins in line with historical levels in spite of COVID-19
Source: Company information Note: (1) Before non-recurring charges 25 Adjusted Free EBITDAs Remained Strong, with Prefunding High on Maintained Capex Levels
Total Capex ($m) Adjusted EBITDAs (1) – Capex ($m)
97% 118% 89% 460
301 303 261 78 64 255 75
223 239 99 186
FY2018A FY2019A FY2020A FY2018A FY2019A FY2020A
Multi-Client Investment Industrial Capex MC Capex Pre-funding Rate Total Group
Positive Adjusted Free EBITDAs despite continued investment, with Multi-Client investment majority pre-funded
Source: Company information Note: (1) Before non-recurring charges 26 Demonstrated Ability to Generate Positive Free Cash Flow in 2020, Before Change in Working Capital
Bridge to Net Cash Flow ($m) (1) 1. Adjusted EBITDAs (2) at $402m, a 42% margin, (3) 1 2 from 49% in 2019 3 (42) 2. Severance costs to adjust to new industry baseline, $(14)m cash paid in 2020 402 361 4 3. 89% prefunded Multi-Client Capex (239) 5 (64) (8) 50 4. $41m from development costs capitalization (39) (Geoscience and Equipment), $22m from (89) (174) acquisitions of tangible assets (4) (maintenance (55) (247) Capex) (80) (73) (2) 5. Build-up of inventories in Equipment (mega- crews) and receivables in Equipment and Multi- Client Tax Paid EBITDAs MC Capex Net Cash Flow Industrial Capex Paid Cost of DebtPaidof Cost Lease Repayment Adjusted EBITDAs &Provisions Free Cash Flow from Non-Recurring Charges Discontinued Operations Segment Free Cash Flow Change in Working Capital Change in Working Capital Net Cash Flow From Activities Segment Free Cash Flow Before
Source: Company information Notes: (1) For FY2020A (2) Before non-recurring charges (3) Excluding unusual part of transfer fees (4) Excluding leases 27 Business Perspectives for 2021 Constructive for CGG’s Segments
. Progressive recovery starting H2 2021 Geoscience Seeing a . Strong demand for industry-leading subsurface imaging technologies Progressive Recovery . Sustained activity with large NOCs
. Reduced 2021 Multi-Client cash Capex with focus on core mature basins Multi-Client Focus on Core – Nebula program offshore Brazil will continue in 2021 Mature Basins, with Reduced MC Investment Levels – Summer activity scheduled in the North Sea . Reprocessing of existing data library applying our latest imaging technologies
. Strong H1 driven by deliveries of land equipment for mega crews in Saudi Arabia Equipment Segment Strong in . Increased demand for land equipment in Algeria, Russia and Pakistan H1, Owing to Present Backlog . Increased commercial interest for WING nodes onshore and GPR nodes offshore . Demand for marine streamers expected to remain low
. Developing in adjacent areas where we could extend from our current core business (SHM) Ongoing Diversification into . Leveraging existing core capabilities by extending into other domains (Geothermal, Mining) New End Markets . Expanding into areas where our clients are growing (e.g. CCUS)
28 SECTION 5:
CONCLUSION 29
cgg.com 29 CGG’s Asset-Light Business Best-Positioned as We Enter a New Industry Cycle
Asset-light business model, focused on people, data, and technology, strategically fit for changing secular industry trends
Focused pure-play Geoscience company, with the largest and differentiated portfolio
Increasing leading market share across all operating segments, even through 2020
Optimally positioned to leverage existing technology in diversified end-markets, including energy transition
Positive Adjusted Free EBITDAs even through the crisis
Proposed refinancing further enhances already strong liquidity profile, by extending maturities and lowering cash and P&L interest costs
Cost structure and prudent balance sheet well-positioned for future industry cycles
Highly experienced management team
30 THANK YOU
31