GlobeNewswire Inc | Mar 5, 2021 01:00AM EST

March 05, 2021

CGG Announces its Q4 and Full Year 2020 Results

Q4 Solid Operational Performance

2021 Positive Net Cash Flow sustained by gradual recovery

PARIS, France March 5, 2021 CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its fourth quarter and full year 2020 audited results.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:

In the particularly challenging year of 2020, which saw the collapse of the oil & gas market across the second and third quarters, we finished the year with solid fourth quarter operational performance.During 2020, we successfully completed our exit from the Acquisition business while continuing to advance our high-end Geoscience technologies for reservoir development and production. We also delivered our Multi-client surveys in the industrys core mature sedimentary basins and released new products while reinforcing our market leadership in Equipment. Our initiatives towards energy transition are accelerating with the development and commercialization of new business offerings, along with our announced target to achieve carbon neutrality by 2050.Looking forward, as global economies continue to progressively recover and with oil price stabilizing above $50/bbl, we expect CGGs performance to benefit from the proactive cost reduction actions and gradually strengthen in the second half of the year, delivering positive net cash flow in 2021.

Q4 2020: Solid Operational Performance

# IFRS figures: revenue at $217m, EBITDAs at $52m, OPINC at $(58)m # Segment revenue at $283m, up 42% quarter-on-quarter and down (29)% year-on-year

Geoscience: Increased software sales and sustained activity of large anddedicated imaging centers

Multi-client: Solid prefunding rate of 171% in Q4

Equipment: Solid quarter driven by land equipment deliveries

# Segment EBITDAs at $118m and Adjusted^* Segment EBITDAs at $122m before $ (4)m of non-recurring severance costs, a 43% margin # Segment Operating Income at $(42)m and Adjusted^* Segment Operating Income at $17m before $(59)m of non-recurring charges # Group Net loss at $(100)m including $(61)m non-recurring charges on continuing activities and $(23)m non-recurring charges on discontinued activities # Group segment backlog at January 1^st 2021 stands at $421m

*Adjusted indicators represent supplementary information adjusted fornon-recurring charges triggered by economic downturn.

Full Year 2020: Financial performance hampered by Covid-19 pandemic impact

# IFRS figures: revenue at $886m, EBITDAs at $292m, OPINC at $(173)m # Segment revenue at $955m, down (32)% year-on-year # Segment EBITDAs at $361m and Adjusted^* Segment EBITDAs at $402m before $ (42)m of non-recurring severance costs, a 42% margin # Segment Operating Income at $(164)m and Adjusted^* Segment Operating Income at $48m before $(213)m of non-recurring charges # Group Net loss at $(438)m including $(269)m non-recurring charges on continuing activities and $(67)m non-recurring charges on discontinued activities

Liquidity of $385m and Net Debt (before IFRS 16) at $849m at year-end 2020

# Q4 2020 Net Cash Flow at $(95)m including negative change in working capital of $(88)m supporting increased December sales # FY 2020 Net Cash Flow of $(247)m including $(89)m negative change in working capital and $(101)m non-recurring cash costs # Liquidity of $385m and Net debt before IFRS 16 at $849m as of December 31, 2020

CGG is in a leading position to benefit from progressive market recovery

With continuing acceleration of Covid-19 vaccinations world economies shouldcontinue to progressively recover from pandemic in 2021. Recent OPEC+agreements support the rebalancing of supply and demand and Brent oil price hasgradually recovered and stabilized above the $50/bbl threshold.

CGG will continue to invest in geoscience technologies that support clients?prioritization towards reservoir development and production optimization. Aftera low Q1, our Geoscience activity will start recovering during the second halfof the year on the back of solid demand for best-in-class subsurface imagingtechnologies and sustained activity with large NOCs. Our Multi-client businesswill reduce capex keeping its focus on expanding our unique footprint offshoreBrazil and in the North Sea while reprocessing existing data libraries with ourlatest imaging technologies.

Our Equipment business should benefit from solid deliveries for land mega crewsin Saudi Arabia in H1 and improved demand for its large portfolio of WING nodesonshore and GPR nodes offshore.

CGG continues to progressively develop its existing energy transitionbusinesses, leveraging its core capabilities into other domains (Geothermal,Mining and SHM), expanding into areas where clients are growing (Carboncapture, utilization and storage) and hiring new talents.

Financial objectives: positive net cash flow in 2021

Given the context outlined above and assuming there will be no deterioration inCovid-19 pandemic and market conditions, CGG segment revenue is expected toincrease by low single digits year-on-year with growth in Equipment, gradualrecovery in Geoscience from H2 2021 and reduced Multi-Client prefundingrevenue.

Segment EBITDAs is expected to remain stable with a less favorable businessmix.

Net cash flow is anticipated to be positive. The Group will continue to focuson capital discipline and cash generation. Multi-client cash capex is expectedto be reduced to around $165 million with prefunding above 75% and industrialcapex is expected to be stable at around $70 million. Non-recurring cash costsare expected to come down to around $(60) million.

Key Figures - Fourth Quarter 2020

Key Figures IFRS - Quarter 2019 2020 Variances %In million $ Q4 Q4Operating revenues 426 217 (49)%Operating Income 74 (58) -Equity from Investment - - -Net cost of financial debt (33) (34) 3%Other financial income (loss) 2 2 12%Income taxes 20 7 (64)%Net Income / Loss from continuing operations 63 (83) -Net Income / Loss from discontinued operations (37) (18) 53%Group net income / (loss) 26 (100) -Operating Cash Flow 179 26 (85)%Net Cash Flow 7 (95) -Net debt 716 1,004 40%Net debt before lease liabilities 540 849 57%Capital employed 2,323 2,168 (7)%

Key Segment Figures - Fourth Quarter 2020

Key Segment Figures - Quarter 2019 2020 Variances %In million $ Q4 Q4Segment revenue 396 283 (29)%Segment EBITDAs 206 118 (43)%Group EBITDAs margin 52% 42% (103) bpsSegment operating income 72 (42) - Opinc margin 18% (15)% -IFRS 15 adjustment 2 (16) -IFRS operating income 74 (58) -Operating Cash Flow 179 26 (85)%Net Segment Cash Flow 7 (95) -Supplementary information Adjusted segment EBITDAs before NRC 206 122 (41)%EBITDAs margin 52% 43% (90) bpsAdjusted segment operating income before NRC 72 17 (77)% Opinc margin 18% 6% (123) bps

Key Figures Full Year 2020

Key Figures IFRS - YTD 2019 2020 Variances %In million $Operating revenues 1,356 886 (35)%Operating Income 244 (173) -Equity from Investment - - -Net cost of financial debt (132) (134) 2%Other financial income (loss) 6 (39) -Income taxes 9 (30) -Net Income / Loss from continuing operations 126 (376) -Net Income / Loss from discontinued operations (188) (63) 67%Group net income / (loss) (61) (438) -Operating Cash Flow 751 264 (65)%Net Cash Flow 186 (247) -Net debt 716 1,004 40%Net debt before lease liabilities 540 849 57%Capital employed 2,323 2,168 (7)%

Key Segment Figures Full Year 2020

Key Segment Figures - YTD 2019 2020 Variances %In million $Segment revenue 1,400 955 (32)%Segment EBITDAs 721 361 (50)%Group EBITDAs margin 51% 38% (137) bpsSegment operating income 247 (164) - Opinc margin 18% -17% (349) bpsIFRS 15 adjustment (4) (8) -IFRS operating income 244 (173) -Operating Cash Flow 751 264 (65)%Net Segment Cash Flow 186 (247) -Supplementary information Adjusted segment EBITDAs before NRC 721 402 (44)%Group EBITDAs margin 51% 42% (94) bpsAdjusted segment operating income before NRC 247 48 (80)% Opinc margin 18% 5% (130) bps

Key figures bridge: Segment to IFRS - Fourth Quarter 2020

P&L items - Q4 Segment IFRS 15 IFRSIn million $ figures adjustment figuresTotal Revenue 283 (66) 217OPINC (42) (16) (58) Cash Flow Statement items - Q4 Segment IFRS 15 IFRSIn million $ figures adjustment figuresEBITDAs 118 (66) 52Change in Working Capital & (88) 66 (22)ProvisionsCash Provided by Operations 26 - 26 Multi-Client Data Library NBV Segment IFRS 15 IFRSIn million $ figures adjustment figuresOpening Balance Sheet, Sept 20 345 154 499Closing Balance Sheet, Dec 20 285 207 492

Key figures bridge: Segment to IFRS Full Year 2020

P&L items - YTD Segment IFRS 15 IFRSIn million $ figures adjustment figuresTotal Revenue 955 (69) 886OPINC (164) (8) (173) Cash Flow Statement items - YTD Segment IFRS 15 IFRSIn million $ figures adjustment figuresEBITDAs 361 (69) 292Change in Working Capital & (89) 69 (20)ProvisionsCash Provided by Operations 264 - 264 Multi-Client Data Library NBV Segment IFRS 15 IFRSIn million $ figures adjustment figuresOpening Balance Sheet, Dec 19 376 155 531Closing Balance Sheet, Dec 20 285 207 492

Fourth Quarter 2020 Segment Financial Results

Geology, Geophysics & Reservoir (GGR)

Geology, Geophysics & Reservoir (GGR) 2019 2020 Variances, %In million $ Q4 Q4Segment revenue 275 176 (36)%Geoscience 106 75 (29)%Multi-Client 169 101 (40)%Prefunding 62 70 13%After-Sales 106 31 (71)%Segment EBITDAs 189 108 (43)%EBITDAs Margin 69% 61% (78) bpsSegment operating income 64 (44) -OPINC Margin 23% (25)% (479) bpsEquity from investments - - -Capital employed (in billion $) 1.9 1.6 (10)%Supplementary information Adjusted segment EBITDAs before NRC 189 111 (41)%EBITDAs Margin 69% 63% (58) bpsAdjusted segment OPINC before NRC 64 15 (79)%OPINC Margin 23% 8% (168) bpsOther Key Metrics Multi-Client cash capex ($m) (32) (41) (26)%Multi-Client cash prefunding rate (%) 191% 171% (204) bps

GGR segment revenue was $176 million, up 18% quarter-on-quarter and down (36)% year-on-year.

-- Geoscience revenue was $75 million, down (2)% quarter-on-quarter and down (29)% year-on-year.

Despite the general slowdown of the global economy and its negative effect on oil price and clients E&P spending, Geoscience production was more resilient, driven by stable activity for Naitional Oil Companies and sequential increase in GeoSoftware and Geovation sales.

CGG Geoscience technology leadership continues to be recognized by major clients.

-- Multi-Client revenue was $101 million, up 38% quarter-on-quarter and down (40)% year-on-year.

Prefunding revenue of our multi-client projects was $70 million, up 78% quarter-on-quarter and up 13% year-on-year.

We had one marine streamer multi-client program offshore Brazil and several reprocessing and reimaging multi-clients surveys this quarter.Multi-client cash capex was $(41)m and prefunding rate was high at 171%.

Multi-client after-sales were at $31 million this quarter primarily driven by Brazil, down (8)% quarter-on-quarter and down (71)% year-on-year.

The segment library Net Book Value was $285 million ($492 million after IFRS 15 adjustments) at the end of 2020, split 84% offshore and 16% onshore.

GGR segment EBITDAs was $108 million, a 61% margin.

GGR Adjusted segment EBITDAs was $111 million, a 63% margin before $(4) million of severance costs.

GGR segment operating income was $(44) million.

GGR Adjusted segment operating income was $15 million, a 8% margin before $(59) million of non-recurring charges including mainly $(29)m Multi-client library impairments mainly in Africa and Ireland.

GGR capital employed was stable at $1.6 billion at the end of 2020.

Equipment

Equipment 2019 2020 Variances, %In million $ Q4 Q4Segment revenue 123 108 (13)%Land 87 87 (0)%Marine 23 13 (43)%Downhole gauges 9 3 (68)% Non Oil & Gas 4 5 19%Segment EBITDAs 23 14 (41)%EBITDAs margin 19% 13% (60) bpsSegment operating income 16 6 (63)%OPINC Margin 13% 5% (75) bps Capital employed (in billion $) 0.5 0.6 22%Supplementary information Adjusted segment EBITDAs before NRC 23 14 (40)%EBITDAs margin 19% 13% (58) bpsAdjusted segment OPINC before NRC 16 6 (62)%OPINC Margin 13% 6% (73) bps

Equipment segment revenue was $108 million, up 114% quarter-on-quarter and down (13)% year-on-year. External sales were $108 million.

-- Land equipment sales represented 81% of total sales, as we delivered in Q4 over 100,000 channels worldwide. Sercel also delivered WiNG land node systems in Latin America. -- Marine equipment sales represented 12% of total sales driven by spares sections sales of Sentinel streamers to its installed customers base. -- Downhole equipment sales were $3 million and sales from non Oil & Gas equipment were $5 million

Equipment segment EBITDAs was $14 million.

Equipment segment operating income was $6 million.

Equipment capital employed was up at $0.6 billion at the end of 2020.

Fourth Quarter 2020 Financial Results

Consolidated Income Statements 2019 2020 Variances %In million $ Q4 Q4Exchange rate euro/dollar 1.10 1.18 7%Segment revenue 396 283 (29)%GGR 275 176 (36)%Equipment 123 108 (12)% Elim & Other (2) (1) 36%Segment Gross Margin 109 46 (58)%Segment EBITDAs 206 118 (43)%GGR 189 111 (41)%Equipment 23 14 (40)%Corporate (6) (4) 38% Elim & Other - - - Severance costs - (4) -Segment operating income 72 (42) -GGR 64 15 (77)%Equipment 16 6 (62)%Corporate (7) (4) 37% Elim & Other - - - Non recurring charges - (59) -IFRS 15 adjustment 2 (16) -IFRS operating income 74 (58) -Equity from investments - - -Net cost of financial debt (33) (34) (3)%Other financial income (loss) 2 5 -Income taxes 20 7 (64)%NRC (Tax & OFI) - (3) -Net income / (loss) from continuing operations 63 (83) -Net income / (loss) from discontinued operations (37) (18) 53%IFRS net income / (loss) 26 (100) -Shareholder's net income / (loss) 25 (102) -Basic Earnings per share in $ 0.04 (0.14) -Basic Earnings per share in ? 0.03 (0.12) -

Segment revenue was $283 million, up 42% quarter-on-quarter and down (29)% year-on-year. The respective contributions from the Groups businesses were 27% from Geoscience, 35% from Multi-Client (62% for the GGR segment) and 38% from Equipment.

Segment EBITDAs was $118 million and Adjusted* segment EBITDAs was $122 million before $(4) million of severance costs, up 51% sequentially and down (41)% year-on-year, a 43% margin.

Segment operating income was $(42) million and Adjusted* segment operating income was $17 million before $(59) million of non-recurring charges, which included $(29)m of Multi-client library impairments.

Global economic crisis, triggered by Covid-19 pandemic, and unprecedented drop in oil price and E&P spending lead CGG to launch cost reduction actions, which resulted in new severance costs and recognize other non-recurring charges.

$(61) million of non-recurring charges were booked during the fourth quarter of 2020:

$(59) million at the operating level:

-- $(4) million of severance costs -- $(29) million of non-cash Multi-client library impairments mainly in Africa and Ireland -- $(10) million of asset impairment -- $(15) million of non-cash fair value remeasurement of assets available for sale

$(3) million of non-cash remeasurement of other financial assets and liabilities

Non-recurring charges (in m$) Q4 2020Operational costs provisions (4)Multi-client library Impairment (29)Asset impairment (10)Fair value remeasurement of assets available for sale (15) Other financial items (OFI) adjustements (3)Total (61)

IFRS 15 adjustment at operating income level was $(16) million and IFRS operating income, after IFRS 15 adjustment, was $(58) million.

Cost of financial debt was $(34) million. The total amount of interest paid during the quarter was $(34) million.

Other Financial Items were $2 million including $(3) million of non-recurring charges. Taxes were at $7 million.

Net loss from continuing operations was $(83) million including $(61) million of non-recurring charges.

Discontinued operations : Correspond to the former Contractual Data Acquisitionand Non-Operated Resources segments. Main aggregates are as follows:

- Q4 revenue from discontinued operations was $17 million.

- Net loss from discontinued operations was $(18) million this quarter,including $(23)m non recurring charges related to the 2021 Plan

- Net Cash flow from discontinued operations was $(2) million before CGG 2021Plan

Group net loss was $(100) million including $(84) million of non-recurring charges; $(61) million of non-recurring charges on continuing operations and $(23)m of non-recurring charges on discontinued operations.

After minority interests, Group net loss attributable to CGGshareholders was $(102) million/ (86) million.

Fourth Quarter 2020 Cash Flow

Cash Flow items 2019 2020 VariancesIn million $ Q4 Q4 %Segment Operating Cash Flow 179 26 (85)%CAPEX (55) (55) -Industrial (15) (5) 64%R&D (8) (9) (10)%Multi-Client (Cash) (32) (41) (26)%Marine MC (21) (40) (88)%Land MC (11) (1) 94%Proceeds from disposals of assets - - -Segment Free Cash Flow 124 (29) -Lease repayments (16) (12) 24%Paid Cost of debt (33) (34) (2)% CGG 2021 Plan (71) (18) 75%Free cash flow from discontinued operations 3 (2) -Net Cash flow 7 (95) -Financing cash flow (1) 0 100%Forex and other 9 16 75%Net increase/(decrease) in cash 15 (79) -Supplementary information Change in working capital and provisions, included in (20) (88) -Segment Operating Cash FlowFrom severance cash costs - (3) -Segment Free Cash Flow before severance cash costs 124 (26) (121)%

Total capex was $(55) million:

-- Industrial capex was $(5) million, -- Research & Development capex was $(9) million, -- Multi-client cash capex was $(41) million

Segment Free Cash Flow was $(29) million, including $(88) million negative change in working capital and $(3)m of non-recurring severance cash costs.

After $(12) million lease repayments, $(34) million paid cost of debt, $(18) million 2021 plan cash costs and $(2) million free cash flow from discontinued operations, Net Cash Flow was $(95) million.

Full Year 2020 Financial Results

Consolidated Income Statements 2019 2020 Variances %In million $Exchange rate euro/dollar 1.12 1.14 1%Segment revenue 1,400 955 (32)%GGR 960 668 (30)%Equipment 452 291 (36)% Elim & Other (11) (4) 69%Segment Gross Margin 393 169 (57)%Segment EBITDAs 721 361 (50)%GGR 652 401 (39)%Equipment 97 23 (77)%Corporate (28) (21) 23% Elim & Other - - 100% Severance costs - (42) -Segment operating income 247 (164) -GGR 211 81 (62)%Equipment 67 (9) (114)%Corporate (30) (23) 22% Elim & Other - - -Non-recurring charges - (213) -IFRS 15 adjustment (4) (8) (123)%IFRS operating income 244 (173) (171)%Equity from investments - - -Net cost of financial debt (132) (134) (2)%Other financial income (loss) 6 8 38%Income taxes 9 (21) -NRC (Tax & OFI) - (56) -Net income / (loss) from continuing operations 126 (376) -Net income / (loss) from discontinued operations (188) (63) 67%IFRS net income / (loss) (61) (438) -Shareholder's net income / (loss) (69) (442) -Basic Earnings per share in $ (0.10) (0.62) -Basic Earnings per share in ? (0.09) (0.55) -

Segment revenue was $955 million, down (32)% compared to last year. The respective contributions from the Groups businesses were 34% from Geoscience, 36% from Multi-Client (70% for the GGR segment) and 30% from Equipment.

GGR segment revenue was $668 million, down (30)% year-on-year

-- Geoscience revenue was $328 million, down (15)% year-on-year and more resilient mainly due to entering the year with solid backlog. -- Multi-Client sales were $340 million, down (41)% year-on-year. Prefunding revenue was $213 million, down (3)% year-on-year. Multi-Client cash capex was $(239) million, up 29% year-on-year, and cash prefunding rate was 89%. After-sales were $127 million, down (64)% compared to 2019, which included large one-off transfer fees in Q3 2019.

Equipment revenue was $287 million, down (35)% year-on-year with a reduction in equipment market triggered by the Covid-19 pandemic and the drop in oil price.

Segment EBITDAs was $361 million and Adjusted segment EBITDAs was $402 million, before $(42) million of severance costs, down (44)% year-on-year, a 42% margin.

GGR adjusted EBITDA was $401 million, a 60% margin. Equipment adjusted EBITDA was $23 million, a 8% margin.

Segment operating income was $(164) million and Adjusted segment operating income, was $48 million, before $(213) million of non-recurring charges at the operating level.

Global economic crisis, triggered by Covid-19 pandemic and unprecedented drop in oil price and E&P spending lead CGG to launch cost reduction actions, which resulted in new severance costs and recognize other non-recurring charges.

$(269) millionof non-recurring charges were booked in 2020:

$(213) million at the operating level:

-- $(42) million severance cash costs related to headcount reductions worldwide -- $(98) million non-cash impairments of the multi-client library -- $(11) million non-cash asset impairments -- $(37) million non-cash fair value remeasurement of GeoSoftware business available for sale -- $(24) million non-cash goodwill impairment related to GeoConsulting business mainly focused on exploration and appraisal

$(56) million of Other Financial Assets and Deferred Tax Assets impairments:

-- $(48) million non-cash remeasurements of other financial assets and liabilities mainly related to data acquisition exit -- $(9) million non-cash impairments of Deferred Tax Assets

Non-recurring charges (in m$) 2020Operational costs provisions (42)Multi-client library Impairment (98)Asset impairment (11)Fair value remeasurement of assets available for sale (37)Goodwill impairment (24) Other Financial Items (OFI) adjustment (48)Deferred Tax Assets impairment (9)Total (269)

IFRS 15 adjustment at operating income level was $(8) million and IFRS operating income, after IFRS 15 adjustment, was $(173) million.

Cost of financial debt was $(134) million. The total amount of interest paid in 2020 was $(80) million.

Other Financial Items were $(39) million, including $(48) million of non-recurring charges related to remeasurement of fair value of other financial assets and liabilities.

Taxes were at $(30) million including $(9) million non-cash impairments of Deferred Tax Assets.

Net loss from continuing operations was $(376) million including $(269) million of non-recurring charges.

Full Year 2020 Discontinued operations

Correspond to the former Contractual Data Acquisition and Non-OperatedResources segments. Main aggregates are as follows:

- Revenue from discontinued operations was $39 million.

- Net loss from discontinued operations was $(63) million, including $(67)m nonrecurring charges related to the 2021 Plan

- Net Cash flow from discontinued operations was $15 million before CGG 2021Plan.

Group net loss was $(438) million including $(336) million of non-recurring charges; $(269) million of non-recurring charges on continuing operations and $(67)m of non-recurring charges on discontinued operations.

After minority interests, Group loss attributable to CGGshareholders was $(442) million/ (389) million.

Full Year 2020 Cash Flow

Cash Flow items 2019 2020 Variances(in m$) %Segment Operating Cash Flow 751 265 (65)%CAPEX (261) (303) 17%Industrial (43) (23) (46)%R&D (32) (41) 26%Multi-Client (Cash) (186) (239) 29%Marine MC (153) (210) 38%Land MC (33) (29) (12)%Proceeds from disposals of assets - - -Segment Free Cash Flow 491 (39) (108)%Lease repayments (57) (55) (3)%Paid Cost of debt (81) (80) - CGG 2021 Plan (136) (87) (36)%Free cash flow from discontinued operations (32) 15 147%Net Cash flow 186 (247) -Financing cash flow (0) (5) -Forex and other (9) 27 -Net increase/(decrease) in cash 176 (225) -Supplementary information Change in working capital and provisions, included in 58 (89) -Segment Operating Cash FlowFrom severance cash costs - (14) -Segment Free Cash Flow before severance cash costs 491 (25) (105)%

Capex was $(303) million, up 17% year-on-year:

-- Industrial capex was $(23) million, down (46)% year-on-year, -- Research & Development capex was $(41) million, up 26% year-on-year, -- Multi-client cash capex was $(239) million, up 29% year-on-year.

Segment Free Cash Flow was at $(39) million, including negative change in working capital of $(89) million and $(14) million of severance cash costs.

After lease repayments of $(55) million, payment of interest expenses of $(80) million, CGG 2021 Plan cash costs of $(87) million and positive free cash flow from discontinued operations of $15 million, GroupNet Cash Flow was $(247) million.

Balance Sheet

Groups liquidity amounted to $385 million at the end of December 31, 2020.

Groupgross debtbefore IFRS16 was $1,234 million at the end of December 31, 2020 and net debt was $849 million.

Groupgross debtafter IFRS16 was $1,389 million at the end of December 31, 2020 and net debt was $1,004 million.

Segment leverage ratio of Net debt to Segment Ebitdas was 2.8x at the end of December 2020.

Q4 & Full Year 2020 Conference call

An English language analysts conference call is scheduled today at 8:00 am (Paris time) 7:00 am (London time)

To follow this conference, please access the live webcast:

www.cgg.comFrom your computer at:



A replay of the conference will be available via webcast on the CGG website at: www.cgg.com.

For analysts, please dial the following numbers 5 to 10 minutes prior to the scheduled start time:

France call-in: +33 (0) 1 70 70 07 81UK call-in: +44(0) 844 4819 752Access Code: 2455854

About CGG

CGG (www.cgg.com) is a global geoscience technology leader. Employing around 3,700 people worldwide, CGG provides a comprehensive range of data, products, services and solutions that support our clients to more efficiently and responsibly solve complex natural resource, environmental and infrastructure challenges. CGG is listed on the Euronext Paris SA (ISIN: 0013181864).____________________

Contacts

Group Communications & Investor RelationsChristophe BarniniTel: + 33 1 64 47 38 11E-Mail: christophe.barnini@cgg.com

CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Consolidated statement of operations

In millions of US$ Year 2020 2019Operating revenues 886.0 1,355.9Other income from ordinary activities 0.7 0.7Total income from ordinary activities 886.7 1,356.6Cost of operations (725.9) (967.0)Gross profit 160.8 389.6Research and development expenses? net (18.6) (23.6)Marketing and selling expenses (32.5) (47.0)General and administrative expenses (67.9) (66.2)Other revenues (expenses)? net (214.5) (9.3)Operating income (172.7) 243.5Cost of financial debt ? gross (136.3) (135.2)Income from cash and cash equivalents 2.2 3.5Cost of financial debt ? net (134.1) (131.7)Other financial income (loss) (39.4) 5.6Income (loss) before income taxes and share of income(loss) from companies accounted for under the equity (346.2) 117.4methodIncome taxes (29.5) 8.9Net income (loss) before share of net income (loss) (375.7) 126.3from companies accounted for under the equity methodNet income (loss) from companies accounted for under 0.1 (0.1)the equity methodNet income (loss) from continuing operations (375.6) 126.2Net income (loss) from discontinued operations (62.5) (187.7)Consolidated net income (loss) (438.1) (61.5)Attributable to: Owners of CGG $ (441.8) (69.1)Non-controlling interests $ 3.7 7.6Weighted average number of shares outstanding 710,739,746 709,950,455Weighted average number of shares outstanding 710,739,746 711,922,761adjusted for dilutive potential ordinary sharesNet income (loss) per share - Base $ (0.62) (0.10)- Diluted $ (0.62) (0.10)Net income (loss) from continuing operations per share- Base $ (0.53) 0.17- Diluted $ (0.53) 0.17Net income (loss) from discontinued operations per share- Base $ (0.09) (0.26)- Diluted $ (0.09) (0.26)

Consolidated statement of financial position

In millions of US$ 12.31.2020 12.31.2019ASSETS Cash and cash equivalents 385.4 610.5Trade accounts and notes receivable, net 325.0 436.0Inventories and work-in-progress, net 237.8 200.1Income tax assets 84.6 84.9Other current financial assets, net 13.7 -Other current assets, net 92.0 116.7Assets held for sale, net 117.7 316.6Total current assets 1,256.2 1,764.8Deferred tax assets 10.3 19.7Investments and other financial assets, net 13.6 27.4Investments in companies accounted for under the equity 3.6 3.0methodProperty plant & equipment, net 268.1 300.0Intangible assets, net 639.2 690.8Goodwill, net 1,186.5 1,206.9Total non-current assets 2,121.3 2,247.8TOTAL ASSETS 3,377.5 4,012.6LIABILITIES AND EQUITY Bank overdrafts 0.2 -Financial debt?current portion 58.6 59.4Trade accounts and notes payable 96.7 117.4Accrued payroll costs 106.6 156.6Income taxes payable 56.8 59.3Advance billings to customers 19.5 36.9Provisions?current portion 52.7 50.0Othercurrent financialliabilities 34.4 -Other current liabilities 278.6 327.3Liabilities associated with non-current assets held for 13.0 259.2saleTotal current liabilities 717.1 1,066.1Deferred tax liabilities 16.3 10.4Provisions?non-current portion 51.8 58.1Financial debt?non-current portion 1,330.3 1,266.6Othernon-current financialliabilities 53.0 -Othernon-currentliabilities 44.4 4.0Total non-current liabilities 1,495.8 1,339.1Common stock ^(a) 8.7 8.7Additional paid-in capital 1,687.1 3,184.7Retained earnings (480.6) (1,531.1)Other Reserves (37.3) (23.5)Treasury shares (20.1) (20.1)Cumulative income and expense recognized directly in (0.7) (0.7)equityCumulative translation adjustments (37.4) (56.3)Equity attributable to owners of CGGSA 1,119.7 1,561.7Non-controlling interests 44.9 45.7Total Equity 1,164.6 1,607.4TOTAL LIABILITIES AND EQUITY 3,377.5 4,012.6(a) Common stock: 1,194,071,863 shares authorized and 711,392,383shares with anominal value of ?0.01 outstanding at December 31, 2020

Consolidated statement of cash flows

In millions of US$ Year 2020 2019OPERATING ACTIVITIES Consolidated net income (loss) (438.1) (61.5)Less: Net income (loss) from discontinued operations 62.5 187.7Net income (loss) from continuing operations (375.6) 126.2Depreciation, amortization and impairment 193.5 138.2Impairment and amortization of Multi-Client surveys 284.8 308.0Impairment andamortization of Multi-Client surveys, (18.1) (18.8)capitalizedVariance on provisions 15.9 (10.5)Share-based compensation expenses 4.0 5.3Net (gain) loss on disposal of fixed and financial assets 0.5 1.0Share of (income) loss in companies recognized under equity (0.1) 0.1methodDividends received from companies accounted for under the - -equity methodOther non-cash items 39.3 (4.3)Net cash flow including net cost of financial debt and 144.2 545.2income taxLess: Cost of financial debt 134.1 131.7Less: Income tax expense (gain) 29.5 (8.9)Net cash flow excluding net cost of financial debt and 307.8 668.0income taxIncome tax paid (7.7) (30.2)Net cash flow before changes in working capital 300.1 637.8Changes in working capital (35.8) 113.6- Change in trade accounts and notes receivable 38.4 150.0- Change in inventories and work-in-progress (25.9) (3.7)- Change in other current assets (2.8) (33.7)- Change in trade accounts and notes payable (1.6) 7.7- Change in other current liabilities (43.9) (6.7)Net cash flow from operating activities 264.3 751.4INVESTING ACTIVITIES Total capital expenditures (tangible and intangible assets)net of variation of fixed assets suppliers and excluding (64.1) (75.3)Multi-Client surveys)Investments in Multi-Client surveys, net cash (239.0) (185.7)Proceeds from disposals of tangibleand intangible assets 0.5 0.1Total net proceeds from financial assets - 0.1Acquisition of investments, net of cash &cash equivalents (0.4) -acquiredVariation in loans granted - -Variation in subsidies for capital expenditures - -Variation in other non-current financial assets 13.4 (0.7)Net cash-flow used in investing activities (289.6) (261.5)FINANCING ACTIVITIES Repayment of long-term debt (5.2) (0.4)Total issuance of long-term debt - -Lease repayments (55.5) (56.9)Change in short-term loans 0.1 -Financial expenses paid (80.2) (80.5)Capital increase: - by owners of CGG - -- by non-controlling interests in integrated companies - -Dividends paid and share capital reimbursements - to owners of CGG - -- to non-controlling interests of integrated companies (7.2) (3.8)Acquisition/disposal of treasury shares - -Net cash-flow from (used in) financing activities (148.0) (141.6)Effect of exchange rate changes on cash 20.7 (4.3)Impact of changes in consolidation scope Net cash flows incurred by discontinued operations (72.5) (167.6)Net increase (decrease) in cash and cash equivalents (225.1) 176.4Cash and cash equivalents at beginning of year 610.5 434.1Cash and cash equivalents at end of period 385.4 610.5

Attachment

-- CGG - Press Release pdf version