GlobeNewswire Inc | Nov 5, 2020 01:30AM EST

November 05, 2020

CGG Announces its 2020 Third Quarter Results

SolidQ3Adjusted EBITDAs performance

Business activity graduallyresuming

PARIS, France November 5,2020 CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its 2020 third quarter unaudited results.

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

CGG markets stabilized in Q3 as large Independents and NOCs started to resume activity, mainly in their core areas. We are on track with the implementation of the cost reduction plan resulting in increased Adjusted EBITDAs. Our high-end technology significantly improves our clients understanding of the subsurface and provides important insights to the prioritization of their energy investments. This, combined with our focus on mature basins and the technology vital for step-out exploration, development and production, provides CGG with a unique value proposition for our clients. We have been able to maintain market share in our core businesses throughout the year, and I have been pleased with our progress towards developing offerings in adjacent fields, including structural health monitoring, CCUS, geothermal and environmental geosciences.

Q3 2020: stable Revenue and increased Adjusted EBITDAs quarter-on-quarter

# IFRS figures: revenue at $178m, OPINC at $(43)m, Group net loss at $(93)m

# Segment revenue at $199m, stable quarter-on-quarter * Geoscience: Resilient activity of large and dedicated imaging centers * Multi-client: Increased sales driven by higher after-sales * Equipment: Lower land activity and delays in deliveries

# Segment EBITDAs at $52m and Adjusted^* Segment EBITDAs at $80m before $(28) m of non-recurring severance costs, up 6% quarter-on-quarter, a 40% margin

# Segment Operating Income at $(38)m and Adjusted^* Segment Operating Income at $(4)m before $(34)m of non-recurring charges

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

Liquidity of $465m at the end of September 2020

# Q3 2020 negative change in working capital of $(37)m supporting increased Q4 sales # Q3 2020 non-recurring cash costs of $(26)m, including $(7)m severance and $ (19)m of CGG 2021 plan costs # Q3 2020 Segment Free Cash Flow at $(59)m, including high negative change in working capital. Net Cash Flow of $(92)m # Liquidity of $465m and Net debt before IFRS 16 of $749m at September 30, 2020

Confirming 2020 Cash Capex and 2020 cost reduction measures**

# 2020 Cash Capex around $300 million: * 2020 Multi-client cash capex confirmed at around $225 million and around 75% prefunding rate * 2020 Industrial and development costs cash capex around $75 million # All saving plans (2021 plan and Covid-19) expected to generate cash costs reductions of around $35m in 2020 and around $135m annualized, including around $90m of fixed cash costs # Covid-19 plan total expenses of around $(50)m, with P&L impact of $(44)m in 2020 and $(6)m$ in 2021 and cash-out sequence of $(15)m in 2020 and $(35)m in 2021

**As mentioned on May 12, 2020, capex and cost reductions are the only twometrics for 2020 guidance provided by the company in current crisis environment

Sercel and Shearwater agreed to suspend negotiations on marine streamer JV

Due to the downturn in the oil & gas industry, triggered by the COVID-19pandemic, CGG and Shearwater have jointly agreed to suspend negotiations aroundcreating a marine streamer equipment JV until visibility in the streamerreplacement cycle improves. Both parties continue to benefit from the marineacquisition partnership and remain committed to the establishment of itstechnology component to further their mually beneficial cooperation.

Key Figures - Third Quarter 2020Key Figures IFRS - Quarter 2020 2020 Variances %In million $ Q2 Q3 Operating revenues 239 178 (26)% Operating Income (32) (43) (32)% Equity from Investment 0 0 - Net cost of financial debt (33) (34) 4% Other financial income (loss) (36) (12) (67)% Income taxes (33) 1 103% Net Income / Loss from continuing operations (134) (88) 34% Net Income / Loss from discontinued operations (13) (5) 62% Group net income / (loss) (147) (93) 37% Operating Cash Flow 81 12 (85)% Net Cash Flow (77) (92) (20)% Net debt 783 910 16% Net debt before lease 626 749 20% Capital employed 2,129 2,172 2%

Key Segment Figures - Third Quarter 2020Key Segment Figures - Quarter 2020 2020 Variances %In million $ Q2 Q3 Segment revenue 202 199 (1)% Segment EBITDAs 68 52 (24)% Group EBITDAs margin 34% 26% (77) bps Segment operating income (53) (38) 29% Opinc margin (26)% (19)% 75 bps IFRS 15 adjustment 21 (5) (123)% IFRS operating income (32) (43) (32)% Operating Cash Flow 81 12 (85)% Net Segment Cash Flow (77) (92) (20)% Supplementary information Adjusted segment EBITDAs before NRC 76 80 6% EBITDAs margin 37% 40% 29 bps Adjusted segment operating income before NRC (5) (4) 15% Opinc margin (2)% (2)% 3 bps

Key Figures ? 9 Months 2020Key Figures IFRS - YTD 2019 2020In million $ Sept Sept Variances % YTD YTD Operating revenues 930 669 (28)% Operating Income 169 (115) - Equity from Investment 0 0 - Net cost of financial debt (98) (100) (1)% Other financial income (loss) 4 (42) - Income taxes (11) (37) - Net Income / Loss from continuing operations 63 (293) - Net Income / Loss from discontinued operations (151) (45) 70% Group net income / (loss) (87) (338) - Operating Cash Flow 572 238 (58)% Net Cash Flow 179 (152) - Net debt 732 910 24% Net debt before leases 544 749 38% Capital employed 2,312 2,172 (6)%

Key Segment Figures ? 9 Months 2020Key Segment Figures - YTD 2019 2020In million $ Sept Sept Variances % YTD YTD Segment revenue 1,004 672 (33)% Segment EBITDAs 515 243 (53)% Group EBITDAs margin 51% 36% (152) bps Segment operating income 175 (122) - Opinc margin 17% (18)% (356) bps IFRS 15 adjustment (6) 7 - IFRS operating income 169 (115) - Operating Cash Flow 572 238 (58)% Net Segment Cash Flow 179 (152) - Supplementary information Adjusted segment EBITDAs before NRC 515 281 (46)% Group EBITDAs margin 51% 42% (96) bps Adjusted segment operating income before NRC 175 32 (82)% Opinc margin 17% 5% (127) bps

Key figures bridge: Segment to IFRS - Third Quarter 2020P&L items - Q3 Segment IFRS 15 IFRSIn million $ figures adjustment figures Total Revenue 199 (22) 178 OPINC (38) (5) (43) Cash Flow Statement items - Q3 Segment IFRS 15 IFRSIn million $ figures adjustment figures EBITDAs 52 (22) 30 Change in Working Capital & (37) 22 (16)Provisions Cash Provided by Operations 12 (0) 12 Multi-Client Data Library NBV Segment IFRS 15 IFRSIn million $ figures adjustment figures Opening Balance Sheet, Mar 20 340 140 480 Closing Balance Sheet, Sept 20 345 154 499

Key figures bridge: Segment to IFRS ? 9 Months 2020P&L items - YTD Segment IFRS 15 IFRSIn million $ figures adjustment figures Total Revenue 672 (3) 669 OPINC (122) 7 (115) Cash Flow Statement items - YTD Segment IFRS 15 IFRSIn million $ figures adjustment figures EBITDAs 243 (3) 240 Change in Working Capital & (1) 3 2Provisions Cash Provided by Operations 238 (0) 238 Multi-Client Data Library NBV Segment IFRS 15 IFRSIn million $ figures adjustment figures Opening Balance Sheet , Dec 19 376 155 531 Closing Balance Sheet , Sep 20 345 154 499

Third Quarter2020 Segment Financial Results

Geology, Geophysics & Reservoir (GGR)

Geology, Geophysics & Reservoir (GGR) 2020 2020 Variances, %In million $ Q2 Q3Segment revenue 144 150 4%Geoscience 83 77 (7)%Multi-Client 62 73 18%Prefunding 46 39 (15)%After-Sales 15 34 120%Segment EBITDAs 74 56 (24)%EBITDAs Margin 51% 38% (137) bpsSegment operating income (39) (25) 37%OPINC Margin (27)% (16)% 106 bpsEquity from investments 0 0 -Capital employed (in billion $) 1.7 1.7 1%Supplementary information Adjusted segment EBITDAs before NRC 81 85 6%EBITDAs Margin 56% 57% 10 bpsAdjusted segment OPINC before NRC 9 10 7%OPINC Margin 6% 7% 2 bpsOther Key Metrics Multi-Client cash capex ($m) (73) (58) (20)%Multi-Client cash prefunding rate (%) 63% 68% 43 bps

GGR segment revenue was $150 million, up 4% quarter-on-quarter.

-- Geoscience revenue was $77 million, down (7)% quarter-on-quarter.

Despite the general slowdown of the economy and its effect on clients E&P spending, Geoscience activity remained resilient, down sequentially (7)% driven by sustained activity in the main large imaging centers, GeoSoftware and our dedicated processing centers.

Geoscience is adapting to lower demand as Q3 total production was down only (2)% sequentially.Preservation of business continuity and profitability remains the focus. CGGs Geoscience leading technology continues to be recognized by major clients. GeoSoftware continued to delivered innovation this quarter with new reservoir characterization cloud technology, and Smart Data Solutions business won significant data management contracts.

-- Multi-Client revenue was $73 million this quarter, up 18% quarter-on-quarter.Prefunding revenue of our multi-client projects was $39 million, down (15)% quarter-on-quarter as multi-client cash capex was (20)% lower at $(58)m in Q3. Prefunding rate was 68%.We had four multi-client programs this quarter: three marine streamer surveys Nebula in Brazil, Gippsland in Australia and North Viking Graben in Norway, and one ocean bottom nodes survey in the UK North Sea.Multi-client after-sales were at $34 million this quarter driven by Brazil and US Gulf of Mexico, up 120% quarter-on-quarter.

The segment library Net Book Value was $345 million ($499 million after IFRS 15 adjustments) at the end of September 2020, split 86% offshore and 14% onshore.

GGR segment EBITDAs was $56 million, with 38% margin.

GGR Adjusted segment EBITDAs $85 million with 57% margin before $(28) million of COVID-19 plan costs.

GGR segment operating income was $(25) million.

GGR Adjusted segment operating income was $10 million with 6% margin before $(35) million of non-recurring charges.

GGR capital employed was stable at $1.7 billion at the end of September 2020.

Equipment

Equipment 2020 2020 Variances, %In million $ Q2 Q3Segment revenue 58 50 (14)%Land 45 31 (30)%Marine 10 15 52%Downhole gauges 3 2 (28)%Non Oil & Gas 1 3 92%Segment EBITDAs 0 (1) -EBITDAs margin 0% (1)% (18) bpsSegment operating income (7) (9) (27)%OPINC Margin (12)% (18)% (51) bps Capital employed (in billion $) 0.5 0.6 5%Supplementary information Adjusted segment EBITDAs before NRC 1 0 -EBITDAs margin 2% 0% (25) bpsAdjusted segment OPINC before NRC (6) (9) (38)%OPINC Margin (11)% (17)% (58) bps

Equipment segment revenue was $50 million, down 14% quarter-on-quarter. External sales were $50 million.

-- Land equipment sales represented 62% of total sales, as we delivered in Q3 over 50 thousand 508XT channels mainly in Russia and India. Sercel also delivered its first land node WiNG system in North America. -- Marine equipment sales represented 29% of total sales driven by spares sections sales of Sentinel streamers installed base. -- Downhole equipment sales were $2 million and sales from non Oil & Gas equipment were $3 million

Equipment segment EBITDAs was $(1) million.

Equipment Adjusted segment EBITDAs was $0m before $(1) million of COVID-19 plan costs.

Equipment segment operating income was $(9) million.

Equipment Adjusted segment operating income $(9) million before $(0.5) million of non-recurring charges.

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

Third Quarter 2020 Financial Results

Consolidated Income Statements 2020 2020 Variances %In million $ Q2 Q3Exchange rate euro/dollar 1.10 1.17 6%Segment revenue 202 199 (1)%GGR 144 150 4%Equipment 58 50 (14)%Elim & Other (1) (1) 7%Segment Gross Margin 24 27 13%Segment EBITDAs 68 52 (24)%GGR 81 85 6%Equipment 1 0 -Corporate (6) (5) 7%Elim & Other 0 1 -COVID-19 plan (7) (28) -Segment operating income (53) (38) 29%GGR 9 10 7%Equipment (6) (9) (38)%Corporate (7) (6) 8%Elim & Other (1) 1 -Non recurring charges (49) (34) 31%IFRS 15 adjustment 21 (5) -IFRS operating income (32) (43) (32)%Equity from investments 0 0 -Net cost of financial debt (33) (34) (4)%Other financial income (loss) 1 (4) -Income taxes (24) 1 104%NRC (Tax & OFI) (46) (8) 83%Net income / (loss) from continuing operations (134) (88) 34%Net income / (loss) from discontinued operations (13) (5) 62%IFRS net income / (loss) (147) (93) 37%Shareholder's net income / (loss) (147) (93) 37%Basic Earnings per share in $ (0.21) (0.13) 37%Basic Earnings per share in ? (0.19) (0.11) 40%

Segment revenue was $199 million, stable quarter-on-quarter. The respective contributions from the Groups businesses were 38% from Geoscience, 37% from Multi-Client (75% for the GGR segment) and 25% from Equipment.

Segment EBITDAs was $52 million and Adjusted*segment EBITDAs was $80 million before $(28) million of Covid-19 plan costs, up 6% sequentially, a 40% margin.

Segment operating income was $(38) million and Adjusted*segment operating income was $(4) million before $(34) million of non-recurring charges.

IFRS 15 adjustment at operating income level was $(5) million and IFRS operating income, after IFRS 15 adjustment, was $(43) million.

Cost of financial debt was $(34) million. The total amount of interest paid during the quarter was $(7) million.

Other Financial Items were $(12) million including $(8) million of non-recurring charges related to remeasurement of fair value of other financial assets and liabilities.

Taxes were at $1 million.

Net loss from continuing operations was $(88) million.

Discontinued operations

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

- Q3 revenue from discontinued operations was $6 million.

- Net loss from discontinued operations was $(5) million this quarter.

- Net Cash flow from discontinued operations was $7 million before Plan 2021

Group net loss was $(93) million.

After minority interests, Group net loss attributable to CGGshareholders was $(93) million/ (79) million.

Adjusted Net loss from continuing operations, excluding $(41) million of non-recurring charges, was $(47) million.

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 (Covid-19 plan) and recognize other non-recurring charges. $(41) millionof non-recurring charges were booked during the third quarter of 2020:

-- $(28) million of severance costs -- $(6) million of non-cash fair value remeasurement of assets available for sale -- $(8) million of non-cash remeasurement of other financial assets and liabilities mainly related to Marine Acquisition exit transaction

Non-recurring charges (in m$) Q3 2020Operational costs provisions (28)Multi-client library Impairment Asset impairment (6)Goodwill impairment Other Financial Items (OFI) adjustment (8)Deferred Tax Assets impairment Total (41)

Third Quarter 2020 Cash Flow

Cash Flow items 2020 2020 VariancesIn million $ Q2 Q3 %Segment Operating Cash Flow 81 12 (85)%CAPEX (89) (71) (20)%Industrial (4) (5) 21%R&D (12) (8) (33)%Multi-Client (Cash) (73) (58) (20)%Marine MC (62) (56) (9)%Land MC (11) (2) (84)%Proceeds from disposals of assets 0 0 -Segment Free Cash Flow (8) (59) -Lease repayments (15) (15) 1%Paid Cost of debt (32) (7) 78%Plan 2021 (22) (19) 15%Free cash flow from discontinued operations 0 7 -Net Cash flow (77) (92) (20)%Financing cash flow 0 (5) -Forex and other (1) 16 -Net increase/(decrease) in cash (78) (81) (4)% Supplementary information Change in working capital and provisions, included in 15 (37) -Segment Operating Cash FlowCOVID-19 plan Cash (3) (7) -Segment Free Cash Flow before COVID-19 plan (5) (52) -

Total capex was $(71) million, down (20)% quarter-on-quarter:

-- Industrial capex was $(5) million, -- Research & Development capex was $(8) million, -- Multi-client cash capex was $(58) million, down (20)% quarter-on-quarter

Segment Free Cash Flow, including $(37) million change in working capital and $(7)m of non-recurring severance cash costs, was $(59) million.

After $(15) million lease repayments, $(7) million paid cost of debt, $(19) million 2021 plan cash costs and $7 million free cash flow from discontinued operations, Net Cash Flow was $(92) million.

First 9 months 2020 Financial Results

Consolidated Income Statements 2019 2020In million $ Sept Sept Variances % YTD YTDExchange rate euro/dollar 1.13 1.12 (0)%Segment revenue 1,004 672 (33)%GGR 685 492 (28)%Equipment 329 183 (44)%Elim & Other (9) (2) 74%Segement Gross Margin 284 124 (57)%Segment EBITDAs 515 243 (53)%GGR 463 289 (37)%Equipment 74 9 (88)%Corporate (21) (17) 19%Elim & Other 0 0 -COVID-19 plan 0 (38) -Segment operating income 175 (122) -GGR 148 66 (55)%Equipment 51 (15) -Corporate (23) (19) 17%Elim & Other 0 (0) - Non-recurring charges 0 (154) -IFRS 15 adjustment (6) 7 -IFRS operating income 169 (115) -Equity from investments 0 0 -Net cost of financial debt (98) (100) 1%Other financial income (loss) 4 3 (21)%Income taxes (11) (28) -NRC (Tax & OFI) - (53) -Net income / (loss) from continuing operations 63 (293) -Net income / (loss) from discontinued operations (151) (45) 70%IFRS net income / (loss) (87) (338) -Shareholder's net income / (loss) (94) (340) -Basic Earnings per share in $ (0.13) (0.48) -Basic Earnings per share in ? (0.12) (0.43) -

Segment revenue was $672 million, down (33)% compared to last year. The respective contributions from the Groups businesses were 38% from Geoscience, 35% from Multi-Client (73% for the GGR segment) and 27% from Equipment.

GGR segment revenue was $492 million, down (28)% year-on-year

-- Geoscience revenue was $253 million, down (9)% year-on-year and more resilient mainly due to backlog. -- Multi-Client sales were $239 million, down (41)% year-on-year. Prefunding revenue was $143 million, down (9)% year-on-year. Multi-Client cash capex was $(198) million, up 29% year-on-year and cash prefunding rate was 72%. After-sales were $96 million, down (62)% year-on-year, including large one-off transfer fees in Q3 2019.

Equipment revenue was $183 million, down (44)% year-on-year with a drop in equipment market triggered by the Covid-19 crisis.

Segment EBITDAs was $243 million and Adjusted segment EBITDAs was $281 million, before $(38) million of Covid-19 plan costs, down 46% year-on-year, a 42% margin.

GGR adjusted EBITDA margin was at 59% and Equipment adjusted EBITDA margin at 4%.

Segment operating income was $(122) million and Adjusted segment operating income, was $32 million, before $(154) million of non-recurring charges.

IFRS 15 adjustment at operating income level was $7 million and IFRS operating income, after IFRS 15 adjustment, was $(115) million.

Cost of financial debt was $(100) million. The total amount of interest paid during the first 9 months 2020 was $(47) million.

Other Financial Items were $(42) million, including $(45) million of non-recurring charges related to remeasurement of fair value of other financial assets and liabilities.

Taxes were at $(28) million.

Net lossfrom continuing operations was $(293) million.

Discontinued operations

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

-First 9 months 2020 revenue from discontinued operations was $25 million.

-Net loss from discontinued operations was $(45) million.

-Net Cash flow from discontinued operations was $17 million before Plan 2021.

Group net loss was $(338) million.

After minority interests, Group loss attributable to CGGshareholders was $(340) million/ (302) million.

Adjusted Net Loss from continuing operations, excluding $(207) million non-recurring charges, was $(86) million.

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 and recognize other non-recurring charges. $(207)millionof non-recurring charges were booked during the first 9 months of 2020:

-- $(38) million severance cash costs related to Covid-19 plan -- $(69) million non-cash impairment of the multi-client library -- $(23) 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 -- $(45) million non-cash remeasurement of other financial assets and liabilities mainly related to Marine Acquisition exit transaction -- $(9) million non-cash impairment of Deferred Tax Assets

Non-recurring charges (in m$) 9 months 2020Operational costs provisions (38)Multi-client library Impairment (69)Asset impairment (23)Goodwill impairment (24)Other Financial Items (OFI) adjustment (45)Deferred Tax Assets impairment (9)Total (207)

First 9 months 2020 Cash Flow

Cash Flow items 2019 2020 Variances(in m$) Sept Sept % YTD YTDSegment Operating Cash Flow 572 238 (58)%CAPEX (205) (248) 21%Industrial (28) (18) (36)%R&D (24) (32) 31%Multi-Client (Cash) (153) (198) 29%Marine MC (131) (169) 29%Land MC (22) (29) 30%Proceeds from disposals of assets 0 0 -Segment Free Cash Flow 367 (9) -Lease repayments (41) (44) (6)%Paid Cost of debt (47) (47) 2%Plan 2021 (65) (69) (7)%Free cash flow from discontinued operations (35) 17 -Net Cash flow 179 (152) -Financing cash flow 0 (5) -Forex and other (18) 11 -Net increase/(decrease) in cash 161 (146) -Supplementary information Change in working capital and provisions, included in 77 (1) -Segment Operating Cash FlowCOVID-19 plan Cash - (11) -Segment Free Cash Flow before COVID-19 plan 367 1 -

Segment Operating Cash Flow was $238 million compared to $572 million for the first nine months of 2019, a (58)% decrease year-on-year.

Capex was $(248) million, up 21% year-on-year:

-- Industrial capex was $(18) million, down (36)% year-on-year, -- Research & Development capex was $(32) million, up 31% year-on-year, -- Multi-client cash capex was $(198) million, up 29% year-on-year.

Including negative change in working capital of $(1) million and $(11) million of COVID-19 plan severance cash costs, Segment Free Cash Flow before lease repayments was at $(9) million.

After lease repayments of $(44) million, payment of interest expenses of $(47) million, CGG 2021 Plan cash costs of $(69) million and positive free cash flow from discontinued operations of $17 million, GroupNet Cash Flow was $(152) million.

Balance Sheet

Groupgross debtbefore IFRS16 was $1,213million at the end of September 2020 and net debt was $749 million.

Groupgross debtafter IFRS16 was $1,375 million at the end of September 2020 and net debt was $910 million.

Groups liquidity amounted to $465 million at the end of September 2020.

Q32020 Conference call

An English language analysts conference call is scheduled today at 8:15 am (Paris time) 7:15 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 81 UK call-in: +44(0) 844 4819 752 Access Code: 8151668

About CGG

CGG (www.cgg.com) is a global geoscience technology leader. Employing around 4,000 people worldwide, CGG provides a comprehensive range of data, products, services and equipment that supports the discovery and responsible management of the Earths natural resources. CGG is listed on the Euronext Paris SA (ISIN: 0013181864).

Contacts

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

CONSOLIDATED FINANCIAL STATEMENTS

September 30,2020

Unaudited Interim Consolidated statements of operations

Nine months ended September 30,(In millions of US$, except per share data) 2020 2019Operating revenues 668.9 930.1Other income from ordinary activities 0.5 0.5Total income from ordinary activities 669.4 930.6Cost of operations (538.4) (652.3)Gross profit 131.0 278.3Research and development expenses - net (12.9) (17.9)Marketing and selling expenses (25.2) (34.3)General and administrative expenses (52.9) (54.0)Other revenues (expenses) - net (154.8) (2.9)Operating income (loss) (114.8) 169.2Expenses related to financial debt (101.6) (100.8)Income provided by cash and cash equivalents 1.9 2.5Cost of financial debt, net (99.7) (98.3)Other financial income (loss) (41.8) 3.5Income (loss) before incomes taxes (256.3) 74.4Income taxes (36.8) (11.2)Net income (loss) from consolidated companies before shareof income (loss) in companies accounted for under the (293.1) 63.2equity methodShare of income (loss) in companies accounted for under the 0.1 (0.1)equity methodNet income (loss) from continuing operations (293.0) 63.1Net income (loss) from discontinued operations (45.0) (150.5)Net income (loss) (338.0) (87.4)Attributable to : Owners of CGG S.A (339.6) (94.2)Non-controlling interests 1.6 6.8Net income (loss) per share Basic (0.48) (0.13)Diluted (0.48) (0.13)Net income (loss) from continuing operations per share Basic (0.41) 0.08Diluted (0.41) 0.08Net income (loss) from discontinued operations per share Basic (0.06) (0.21)Diluted (0.06) (0.21)

Unaudited Consolidated statements of financial position

(In millions of US$) September December 30, 2020 31, 2019ASSETS Cash and cash equivalents 464.5 610.5Trade accounts and notes receivable, net 259.0 436.0Inventories and work-in-progress, net 236.9 200.1Income tax assets 86.2 84.9Other current assets, net 84.9 116.7Assets held for sale, net 134.3 316.6Total current assets 1,265.8 1,764.8Deferred tax assets 10.7 19.7Investments and other financial assets, net 33.9 27.4Investments in companies under the equity method 3.6 3.0Property, plant and equipment, net 278.9 300.0Intangible assets, net 654.5 690.8Goodwill, net 1,181.5 1,206.9Total non-current assets 2,163.1 2,247.8TOTAL ASSETS 3,428.9 4,012.6LIABILITIES AND EQUITY Financial debt ? current portion 73.4 59.4Trade accounts and notes payables 83.0 117.4Accrued payroll costs 123.1 156.6Income taxes payable 73.0 59.3Advance billings to customers 22.3 36.9Provisions? current portion 55.5 50.0Other current financial liabilities 37.0 ?Other current liabilities 230.9 327.3Liabilities directly associated with the assets 8.1 259.2classified as held for saleTotal current liabilities 706.3 1,066.1Deferred tax liabilities 15.8 10.4Provisions? non-current portion 48.0 58.1Financial debt ? non-current portion 1,301.1 1,266.6Other non-current financial liabilities 47.9 ?Other non-current liabilities 47.8 4.0Total non-current liabilities 1,460.6 1,339.1Common stock: 1,194,086,134 shares authorized and711,324,363 shares with a ?0.01 nominal value outstanding 8.7 8.7at September 30, 2020Additional paid-in capital 1,687.1 3,184.7Retained earnings (371.9) (1,531.1)Other Reserves (33.1) (23.5)Treasury shares (20.1) (20.1)Cumulative income and expense recognized directly in (0.8) (0.7)equityCumulative translation adjustment (48.9) (56.3)Equity attributable to owners of CGG S.A. 1,221.0 1,561.7Non-controlling interests 41.0 45.7Total equity 1,262.0 1,607.4TOTAL LIABILITIES AND EQUITY 3,428.9 4,012.6

Unaudited Consolidated statements of cash flows

Nine months ended September 30,(In millions of US$) 2020 2019OPERATING Net income (loss) (338.0) (87.4)Less: Net income (loss) from discontinued operations (45.0) (150.5)Net income (loss) from continuing operations (293.0) 63.1Depreciation, amortization and impairment 136.5 98.0Multi-client surveys impairment and amortization 227.4 175.6Depreciation and amortization capitalized in Multi-client (13.2) (5.9)surveysVariance on provisions 22.5 1.7Share-based compensation expenses 3.9 4.0Net (gain) loss on disposal of fixed and financial assets ? (0.1)Equity (income) loss of investees (0.1) 0.1Dividends received from investments in companies under the ? ?equity methodOther non-cash items 41.8 (2.8)Net cash-flow including net cost of financial debt and 125.8 333.7income taxLess : net cost of financial debt 99.7 98.3Less : income tax expense (gain) 36.8 11.2Net cash-flow excluding net cost of financial debt and 262.3 443.2income taxIncome tax paid (3.4) (19.3)Net cash-flow before changes in working capital 258.9 423.9Changes in working capital (20.5) 148.5- change in trade accounts and notes receivable 70.6 199.6- change in inventories and work-in-progress (34.8) (17.7)- change in other current assets (6.1) (13.8)- change in trade accounts and notes payable (14.9) (1.8)- change in other current liabilities (35.3) (17.8)Net cash-flow provided by operating activities 238.4 572.4INVESTING Total capital expenditures (including variation of fixed (49.8) (52.3)assets suppliers, excluding Multi-client surveys)Investment in Multi-client surveys, net cash (198.0) (153.2)Proceeds from disposals of tangible and intangible assets 0.3 (0.1)Total net proceeds from financial assets ? ?Acquisition of investments, net of cash and cash (0.4) ?equivalents acquiredVariation in loans granted ? ?Variation in subsidies for capital expenditures ? ?Variation in other non-current financial assets 12.0 0.6Net cash-flow used in investing activities (235.9) (205.0)

Nine months ended September 30,(In millions of US$) 2020 2019FINANCING Repayment of long-term debt (5.2) ?Total issuance of long-term debt ? ?Lease repayments (43.6) (41.1)Change in short-term loans ? 0.1Financial expenses paid (46.5) (47.5)Net proceeds from capital increase: ?from shareholders ? ??from non-controlling interests of integrated ? ?companiesDividends paid and share capital reimbursements: ?to shareholders ? ??to non-controlling interests of integrated (7.2) (3.8)companiesAcquisition/disposal from treasury shares ? ?Net cash-flow provided by (used in) financing (102.5) (92.3)activitiesEffects of exchange rates on cash 6.5 (14.5)Impact of changes in consolidation scope ? ?Net cash flows incurred by discontinued (52.5) (99.1)operationsNet increase (decrease) in cash and cash (146.0) 161.5equivalentsCash and cash equivalents at beginning of year 610.5 434.1Cash and cash equivalents at end of period 464.5 595.6

Attachment

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