GlobeNewswire Inc | Jul 29, 2020 01:00AM EDT

July 29, 2020

CGG Announces its 2020 Second Quarter Results

A quarter impacted by Covid-19 and oil price drop

Swiftly aligning cost structure to the new baseline

PARIS, France July 29, 2020 CGG(ISIN: FR0013181864),a world leader in Geoscience, announced today its 2020 second quarter unaudited results.

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

The geoscience market continued to deteriorate this quarter as clients reprioritized portfolios to factor in reductions in E&P spending. Our priority remains the safety of our employees, preservation of cash and maintaining excellent business continuity despite the global spread of Covid-19. We are swiftly taking actions necessary to align our cost structure with the new baseline, while maintaining focus on our differentiated technologies and key multi-client investments. With our strong balance sheet and solid strategy and plans, I am confident that CGG is well positioned to successfully navigate through these crises while best supporting our clients production optimization, reservoir evaluation and near field exploration challenges.

Q2 2020: Revenue and EBITDAs impacted by the crises

-- IFRS figures: revenue at $239m, OPINC at $(32)m, net income at $(147)m -- Segment revenue at $202m, down 41% year-on-year Geoscience: Resilient despite backlog declineMulti-client: Supported by ongoing well prefunded projects in mature basins Equipment: Reduced demand with some delays in deliveries due to Covid-19 -- Segment EBITDAs at $68m, down 60% year-on-year, a 34% margin -- Segment operating income at $(53)m

Supplementary information

-- Adjusted* Segment EBITDAs at $76m before $(7)m of Covid-19 plan costs, down 56% year-on-year, a 37% margin -- Adjusted* Segment operating income at $(5)m before $(49)m of non-recurring charges, including $(17)m fair value adjustments and limited $(24)m goodwill impairment

*Adjusted indicators represent supplementary information adjusted of non-recurring charges triggered by economic downturn and unprecedented drop in oil price.

Sound Liquidity

-- Liquidity of $546m and Net debt before IFRS 16 of $626m at June 30, 2020 -- Q2 2020 Segment Free Cash Flow of $(8)m -- Q2 2020 Net Cash Flow of $(77)m, including $(25)m 2021 plan and Covid-19 plan cash costs -- H1 2020 Net Cash Flow of $(60)m, including $(54)m 2021 plan and Covid-19 plan cash costs

Aligning cost structure to the new baseline

-- All saving plans (2021 plan and Covid-19) expected to generate cash costs reduction of around $35m in 2020 and $135m annualized, including around $90m of fixed cash costs -- Covid-19 plan cash expenses of around $(30)m in 2020, of which $(4)m in H1

$(94)m of non-recurring charges were booked in Q2 2020

Global economic crisis, triggered by Covid-19 pandemic and unprecedented drop in oil price and E&P spending lead CGG to carry a full impairment test in Q2 2020 and launch cost reduction actions (Covid-19 plan). $(94)m of non-recurring charges were booked in Q2 2020:

-- $(7)m severance costs related to Covid-19 plan -- $(17)m non-cash fair value remeasurement of GeoSoftware business available for sale -- $(24)m non-cash goodwill impairment related to GeoConsulting business mainly focused on exploration and appraisal -- $(37)m non-cash remeasurement of other financial assets and liabilities mainly related to Marine Acquisition exit transaction -- $(9)m non-cash impairment of Deferred Tax Assets

Non-recurring charges (in m$) Q1 2020 Q2 2020 H1 2020Operational costs provisions (3) (7) (10)Multi-client library Impairment (69) (69)Asset impairment (17) (17)Goodwill impairment (24) (24)Other Financial Items (OFI) adjustment (37) (37)Deferred Tax Assets impairment (9) (9)Total (72) (94) (166)



Key Figures - Second Quarter 2020 Key Figures ? Quarter 2019 2020 in million $ Q2 Q2 Operating revenues 335 239 Operation Income 51 (32) Equity from Investment 0 0 Net cost of financial debt (33) (33) Other financial income (loss) 0 (36) Income taxes (3) (33) Net income / Loss from continuing operations (15) (134) Net income / Loss from discontinued (113) (13) operationsGroup net income / (loss) (98) (147) Operating Cash Flow 124 81 Net Cash Flow (31) (77) Net debt 883 783 Net debt before lease 694 626 Capital employed 2,435 2,129 Key Segment Figures - Second Quarter 2020 Key Segment Figures ? Quarter 2019 2020 in million $ Q2 Q2 Segment revenue 340 202 Segment EBIDTAs 170 68 Group EBIDTDAS margin 50% 34% Segment operating income 53 (53) Opinc margin 16% (26)% IFRS 15 adjustment (1) 21 IFRS operating income 51 (32) Operation Cash Flow 124 81 Segment Net Cash Flow (31) (77) Supplementary information Adjusted segment EBITDAS before NRC 170 76 EBIDTDAS margin 50% 37% Adjusted segment operation income before NRC 53 (5) Opinc margin 16% (2)% Key Figures ? First Half 2020 Key Figures ? YTD 2019 2020 in million $ Jun Jun YTD YTD Operating revenues 607 491 Operation Income 71 (72) Equity from Investment 0 0 Net cost of financial debt (66) (66) Other financial income (loss) 1 (30) Income taxes (6) (38) Net income / Loss from continuing operations (0) (205) Net income / Loss from discontinued (128) (40) operationsGroup net income / (loss) (128) (245) Operating Cash Flow (328) 226 Net Cash Flow (13) (60) Net debt 883 783 Net debt before lease 694 626 Capital employed 2,435 2,129 Key Segment Figures ? First Half 2020 Key Segment Figures ? YTD 2019 2020 in million $ Jun Jun YTD YTD Segment revenue 623 473 Segment EBITDAs 290 191 Group EBITDAs margin 47% 40% Segment operating income 64 (84) Opinc margin 10% (18)% IFRS 15 adjustment 7 12 IFRS Operating income 71 (72) Operating Cash Flow 328 226 Segment Net Cash Flow 13 (60) Supplementary information Adjusted segment EBITDAS before NRC 290 200 Group EBITDAs margin 47% 42% Adjusted segment operation income before NRC 64 36 Opinc margin 10% 8% Key figures bridge: Segment to IFRS - Second Quarter 2020 P&L items Segment IFRS15 IFRS FiguresIn million $ figures adjustments Total Revenue 202 36 239OPINC (53) 21 (32) Cash Flow Statement Items Segment IFRS15 IFRS FiguresIn million $ figures adjustments EBITDAs 68 36 105Change in Working Capital & Provisions 15 (36) (21)Cash Provided by Operations 81 0 81 Multi-Client Data Library NBV Segment IFRS15 IFRS FiguresIn million $ figures adjustments Opening Balance Sheet Mar,20 318 157 475Closing Balance Sheet Jun,20 340 140 480 Key figures bridge: Segment to IFRS - First Half 2020P&L items Segment IFRS15 IFRS FiguresIn million $ figures adjustments Total Revenue 473 18 491OPINC (84) 12 (72) Cash Flow Statement Items Segment IFRS15 IFRS FiguresIn million $ figures adjustments EBITDAs 191 18 209Change in Working Capital & Provisions 36 (18) 18Cash Provided by Operations 226 0 226 Multi-Client Data Library NBV Segment IFRS15 IFRS FiguresIn million $ figures adjustments Opening Balance Sheet Dec,19 376 155 531Closing Balance Sheet Jun,20 340 140 480 Second Quarter 2020 Segment Financial Results Geology, Geophysics & Reservoir (GGR) Geology, Geophysics & Reservoir (GGR) 2019 2020 in million $ Q2 Q2 Segment revenue 220 144 Geoscience (SIR) 93 83 Multi-Client 127 62 Prefunding 49 46 After Sales 78 15 Segment EBITDAS 149 74 EBITDAs Margin 68% 51% Segment Operating income 40 (39) OPINC Margin 18% (27)% Equity from investments 0 0 Capital employed (in billion $) 2.0 1.7 Supplementary information Adjusted segment EBITDAs before NRC 149 81 EBITDAs Margin 68% 56% Adjusted segment OPINC before NRC 40 9 OPINC Margin 18% 6% Other Key Metrics Multi-client cash capex ($m) (56) (73) Multi-client cash prefunding rate (%) 88% 63%

GGR segment revenue was $144 million, down 35% year-on-year.

-- Geoscience revenue was $83 million, down 11% year-on-year.

Q2 activity was impacted by the general slowdown of the economy and its effect on clients E&P spending. Preservation of business continuity, profitability, technology leadership and client support continue to be the focus. New businesses in Geothermal, Carbon Monitoring and Environmental Science were established.

-- Multi-Client revenue was $62 million this quarter, down 52% year on year.

Prefunding revenue of our multi-client projects was $46 million. We had four ongoing multi-client programs this quarter: one onshore - Central Basin Platform in US land, and three offshore programs: one marine streamer survey Nebula in Brazil, one marine streamer survey Gippsland in Australia, and one nodes survey in the UK North Sea. Multi-client cash capex was $73m this quarter and prefunding rate was 63%.

After-sales were at $15 million this quarter, down 80% year-on-year.

The segment library Net Book Value was $340 million ($480 million after IFRS 15 adjustments) at the end of June 2020, split 85% offshore and 15% onshore.

GGR segment EBITDAs was $74 million, down 50% with 51% margin.

Adjusted GGR segment EBITDAs $81m with 56% margin before $(7) million of COVID-19 plan costs.

GGR segment operating income was $(39) million.

Adjusted GGR segment operating income was $9 million with 6% margin before $(48) million of non-recurring charges.

GGR capital employed was down to $1.7 billion at the end of June 2020.

Equipment

Equipment 2019 2020in million $ Q2 Q2 Segment revenue 124 58Land 90 45Marine 19 10Downhole Gauges 9 3Non Oil & Gas 6 1Segment EBITDAS 27 0EBITDAs Margin 22% 0%Segment Operating income 20 (7)OPINC Margin 16% (12)% Capital employed (in billion $) 0.6 0.5 Supplementary information Adjusted segment EBITDAs before NRC 27 1EBITDAs Margin 22% 2%Adjusted segment OPINC before NRC 20 (6)OPINC Margin 16% (11)%

Equipment segment revenue was $58 million, down 53% year-on-year. External sales were $58 million.

-- Land equipment sales represented 78% of total sales, as we delivered in Q2 over 60 thousand 508XT channels and 10 Nomad 90 mainly in North Africa and Middle East. Sercel also delivered its first node land WiNG system. -- Marine equipment sales represented 17% of total sales. Activity in the streamer market remains low with mostly spares for Sentinel sections. -- Downhole equipment sales were $3 million.

Equipment segment EBITDAs was $0 million.

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

Equipment segment operating income was $(7) million.

Adjusted Equipment segment operating income $(6) million before $(1) million of non-recurring charges.

Equipment capital employed was down at $0.5 billion at the end of June 2020.

Second Quarter 2020 Financial Results

Consolidated Income Statements 2019 2020In million $ Q2 Q2 Exchange rate Euro / Dollar 1.12 1.10 Segment revenue 340 202GGR 220 144Equipment 123 58Elim & Other (3) (1) Segment Gross Margin 88 27Segment EBITDAs 170 68GGR 149 81Equipment 27 1Corporate (6) (6)Elim & Other 0 0COVID-19 plan 0 (7) Segment operating income 53 (53)GGR 40 9Equipment 20 (6)Corporate (6) (7)Elim & Other 0 (1)Non recurring charges 0 (49)IFRS 15 adjustment (1) 21IFRS operating income 51 (32)Equity from investments 0 0Net cost of financial debt (33) (33)Other financial income (loss) 0 (1)Income taxes (3) (24)NRC (Tax & OFI) (46)Net income / (loss) from continuing operations 15 (134)Net income / (loss) from discontinued operations (113) (13)IFRS net income / (loss) (98) (147)Shareholder?s net income / (loss) (101) (147)Basic Earnings per share in $ (0.14) (0.21)Basic Earnings per share in ? (0.12) (0.19)

Segment revenuewas $202 million, down 41% year-on-year. The respective contributions from the Groups businesses were 41% from Geoscience, 30% from Multi-Client (71% for the GGR segment) and 29% from Equipment.

Segment EBITDAs was $68 million, including $(7) million of Covid-19 plan costs, a 34% margin.

Segment operating income was $(53) million, including $(49) million related to non-recurring charges with $(17) million fair value adjustments and limited $(24) million goodwill impairment.

IFRS 15 adjustment at operating income level was $21 million and IFRS operating income, after IFRS 15 adjustment, was $(32) million.

Cost of financial debt was $(33) million. The total amount of interest paid during the quarter was $(32) million.

Other Financial Items were $(36) million, including $(37) million of non-recurring charges related to remeasurements of fair value of other financial assets and liabilities.

Taxes were at $(33) million, including $(9) million of non-recurring charges related to deferred tax assets (DTA) adjustments.

Net loss from continuing operations was $(134) million.

Discontinued operations

Correspond to the former Contractual Data Acquisition and Non-OperatedResources segments. Main aggregates are as follows:- Q2 revenue from discontinued operations was $5 million.- Net loss from discontinued operations was $(13) million this quarter.- Net Cash flow from discontinued operations was $0 million before Plan 2021

Group net loss was $(147) million.

After minority interests,Group net loss attributable to CGGshareholders was $(147) million/ (134) million.

Adjusted Net loss from continuing operations, excluding $(94) million of non-recurring charges, was $(40) million.

Cash Flow

Cash Flow items 2019 2020In million $ Q2 Q2 Segment revenue 124 81CAPEX (74) (89)Industrial (9) (4)R&D (8) (12)Multi-Client (Cash) (56) (73) Marine MC (51) (62) Land MC (5) (11)Proceeds from disposals of assets 0 0Segment Free Cash Flow 51 (8)Lease repayments (13) (15)Paid Cost of debt (33) (32)Plan 2021 (16) (22)Free cash flow from discontinued operations (20) (0)Net Cash flow (31) (77)Financing cash flow 0 0Forex and other (3) (1)Net increase / (decrease) in cash (34) (78) Supplementary information Covid-19 plan Cash (3)Segment Free Cash Flow before COVID-19 plan 51 (5)

Segment Operating Cash Flow was $81 million, down 35% compared to $124 million in Q2 2019.

Total capexwas $89 million, up 20% year-on-year:

-- Industrial capex was $4 million, down 56% -- Research & Development capex was $12 million, up 50% -- Multi-client cash capex was $73 million, up 30%

Segment Free Cash Flow before lease repayments was at $(8) million, compared to $51 million in Q2 2019.

After $(15) million lease repayments, $(32) million paid cost of debt, $(22) million 2021 plan cash costs, $(3) million Covid-19 plan and $0 million free cash flow from discontinued operations, Net Cash Flow was $(77) million compared to $(31) million in Q2 2019.

First Half 2020 Financial Results

Consolidated Income Statements 2019 2020In million $ Jun Jun YTD YTD Exchange rate Euro / Dollar 1.13 1.10 Segment revenue 623 473GGR 401 342Equipment 228 133Elim & Other (6) (2) Segment Gross Margin 137 97Segment EBITDAs 290 191GGR 254 204Equipment 51 9Corporate (14) (12)Elim & Other 0 (1)COVID-19 plan 0 (9) Segment operating income 64 (84)GGR 45 57Equipment 35 (6)Corporate (16) (13)Elim & Other 0 (2)Non recurring charges 0 (120)IFRS 15 adjustment 7 12IFRS operating income 71 (72)Equity from investments 0 0Net cost of financial debt (66) (66)Other financial income (loss) 1 7Income taxes (6) (29)NRC (Tax & OFI) (46)Net income / (loss) from continuing operations 0 (205)Net income / (loss) from discontinued operations (128) (40)IFRS net income / (loss) (128) (245)Shareholder?s net income / (loss) (135) (247)Basic Earnings per share in $ (0.19) (0.35)Basic Earnings per share in ? (0.17) (0.31)

Segment revenue was $473 million, down 24% compared to H1 2019. The respective contributions from the Groups businesses were 37% from Geoscience, 35% from Multi-Client (72% for the GGR segment) and 28% from Equipment.

GGR segment revenue was $342 million, down 15% year-on-year

-- Geoscience revenue was $176 million, down 4% year-on-year mainly due to a reduced backlog. -- Multi-Client sales reached $166 million, down 23% year-on-year. Prefunding revenue was $103 million, up 13% year-on-year. Multi-Client cash capex was $(140) million, up 46% year-on-year. Cash prefunding rate was 74%.

After-sales were $62 million, down 50%.

Equipment revenue was $133 million, down 42% year-on-year in a low equipment market due to the Covid-19 situation.

Segment EBITDAs was $191 million, including $(10) million of Covid-19 plan costs, down 34% year-on-year, a 40% margin. GGR EBITDA margin was at 58% and Equipment EBITDA margin at 6%

Segment operating income was $(84) million, including $(120) million of non-recurring charges.

IFRS 15 adjustment at operating income level was $12 million and IFRS operating income, after IFRS 15 adjustment, was $(72) million.

Cost of financial debt was $(66) million. The total amount of interest paid during H1 was $(40) million.

Other Financial Items were $(30) million, including $(37) million of non-recurring charges related to remeasurements of fair value of other financial assets and liabilities.

Taxes were at $(38) million, including $(9) million of non-recurring charges related to DTA adjustments.

Net income from continuing operations was $(205) million.

Discontinued operations

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

-H1 revenue from discontinued operations was $19 million.-Net loss from discontinued operations was $(40) million.-Net Cash flow from discontinued operations was $9 million before Plan 2021.

Group net loss was $(245) million.

After minority interests, Group loss attributable to CGG shareholders was $(247) million/ (223) million.

Adjusted Net Loss from continuing operations, excluding $(166) million non-recurring charges, was $(39) million.

Cash Flow

Cash Flow items 2019 2020in million $ Jun Jun YTD YTD Segment revenue 328 226CAPEX (131) (177)Industrial (20) (12)R&D (16) (24)Multi-Client (Cash) (96) (140) Marine MC (81) (113) Land MC (15) (27)Proceeds from disposals of assets 0 0Segment Free Cash Flow 196 50Lease repayments (29) (29)Paid Cost of debt (40) (40)Plan 2021 (41) (50)Free cash flow from discontinued operations (73) 9Net Cash flow 13 (60)Financing cash flow 0 0Forex and other (6) (5)Net increase / (decrease) in cash 7 (65) Supplementary information Covid-19 plan Cash (4)Segment Free Cash Flow before COVID-19 plan 196 54

Segment Operating Cash Flow was $226 million compared to $328 million for the first half of 2019, a 31% decrease.

Capex was $(177) million, up 35% year-on-year,

-- Industrial capex was $(12) million, down 40% year-on-year, -- Research & Development capex was $(24) million, up 50% year-on-year, -- Multi-client cash capex was $(140) million, up 46% year-on-year.

Segment Free Cash Flow before lease repayments was at $50 million compared to $196 million in H1 2019.

After lease repayments of $(29) million, the payment of interest expenses of $(40) million, CGG 2021 Plan and Covid-19 cash costs of $(54) million and positive free cash flow from discontinued operations of $9 million, Group Net Cash Flow was $(60) million, compared to $13 million in H1 2019.

Balance Sheet

Group gross debt before IFRS 16 was $1,172 million at the end of June 2020 and net debt was $626 million.

Group gross debt after IFRS 16 was $1,329 million at the end of June 2020 and net debt was $783 million.

Groups liquidity amounted to $546 million at the end of June 2020.

Q2 2020 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: 1391217

About CGG

CGG (www.cgg.com) is a global geoscience technology leader. Employing around 4,600 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 STATEMENTSJune 30, 2020

FINANCIAL STATEMENTS

Unaudited Interim Consolidated statements of operations

Six months ended June 30,(In millions of US$, except per share data) 2020 2019Operating revenues 491.2 606.7Other income from ordinary activities 0.5 0.4Total income from ordinary activities 491.7 607.1Cost of operations (462.5) (382.5)Gross profit 109.2 144.6Research and development expenses - net (7.5) (12.3)Marketing and selling expenses (21.7) (17.2)General and administrative expenses (37.2) (36.3)Other revenues (expenses) - net (2.2) (120.3)Operating income (loss) 71.2 (72.1)Expenses related to financial debt (67.4) (67.2)Income provided by cash and cash equivalents 1.5 1.6Cost of financial debt, net (65.8) (65.7)Other financial income (loss) 0.5 (30.0)Income (loss) before incomes taxes 5.9 (167.8)Income taxes (5.6) (37.6)Net income (loss) from consolidated companies before share of income (loss) in companies accounted for under the equity (205.4) 0.3methodShare of income (loss) in companies accounted for under the 0.1 0.1equity methodNet income (loss) from continuing operations 0.4 (205.3)Net income (loss) from discontinued operations (128.5) (40.0)Net income (loss) (128.1) (245.3)Attributable to : Owners of CGG S.A (134.6) (246.6)Non-controlling interests 1.3 6.5Net income (loss) per share Basic (0.35) (0.19)Diluted (0.35) (0.19)Net income (loss) from continuing operations per share Basic (0.29) (0.00)Diluted (0.29) (0.00)Net income (loss) from discontinued operations per share Basic (0.06) (0.19)Diluted (0.06) (0.19)

Unaudited Consolidated statements of financial position

(In millions of US$) June 30, December 2020 31, 2019ASSETS Cash and cash equivalents 545.7 610.5Trade accounts and notes receivable, net 250.9 436.0Inventories and work-in-progress, net 212.3 200.1Income tax assets 81.7 84.9Other current assets, net 98.7 116.7Assets held for sale, net 135.1 316.6Total current assets 1,324.4 1,764.8Deferred tax assets 12.2 19.7Investments and other financial assets, net 40.5 27.4Investments in companies under the equity method 3.7 3.0Property, plant and equipment, net 276.8 300.0Intangible assets, net 639.1 690.8Goodwill, net 1,177.9 1,206.9Total non-current assets 2,150.2 2,247.8TOTAL ASSETS 3,474.6 4,012.6LIABILITIES AND EQUITY Financial debt ? current portion 55.8 59.4Trade accounts and notes payables 97.1 117.4Accrued payroll costs 125.1 156.6Income taxes payable 75.9 59.3Advance billings to customers 22.2 36.9Provisions? current portion 29.8 50.0Other current financial liabilities 33.6 ?Other current liabilities 237.0 327.3Liabilities directly associated with the assets classified 5.4 259.2as held for saleTotal current liabilities 681.9 1,066.1Deferred tax liabilities 17.1 10.4Provisions? non-current portion 52.5 58.1Financial debt ? non-current portion 1,273.0 1,266.6Other non-current financial liabilities 52.5 ?Other non-current liabilities 51.6 4.0Total non-current liabilities 1,446.7 1,339.1Common stock: 1,194,133,367 shares authorized and711,323,839 shares with a ?0.01 nominal value outstanding 8.7 8.7at June 30, 2020Additional paid-in capital 1,687.1 3,184.7Retained earnings (279.6) (1,531.1)Other Reserves (20.8) (23.5)Treasury shares (20.1) (20.1)Cumulative income and expense recognized directly in (0.8) (0.7)equityCumulative translation adjustment (67.6) (56.3)Equity attributable to owners of CGG S.A. 1,306.9 1,561.7Non-controlling interests 39.1 45.7Total equity 1,346.0 1,607.4TOTAL LIABILITIES AND EQUITY 3,474.6 4,012.6

Unaudited Consolidated statements of cash flows

Six months ended June 30,(In millions of US$) 2020 2019OPERATING Net income (loss) (245.3) (128.1)Less: Net income (loss) from discontinued operations (40.0) (128.5)Net income (loss) from continuing operations (205.3) 0.4Depreciation, amortization and impairment 100.8 65.1Multi-client surveys impairment and amortization 186.4 139.2Depreciation and amortization capitalized in multi-client (8.4) (4.0)surveysVariance on provisions 1.2 (0.6)Share-based compensation expenses 2.6 2.5Net (gain) loss on disposal of fixed and financial assets 0.1 0.1Equity (income) loss of investees (0.1) (0.1)Dividends received from investments in companies under the ? ?equity methodOther non-cash items 30.0 0.8Net cash-flow including net cost of financial debt and income 107.3 203.4taxLess : net cost of financial debt 65.7 65.8Less : income tax expense (gain) 37.6 5.6Net cash-flow excluding net cost of financial debt and income 210.6 274.8taxIncome tax paid (1.1) (13.0)Net cash-flow before changes in working capital 209.5 261.8Change in working capital 16.7 66.5- change in trade accounts and notes receivable 77.1 90.6- change in inventories and work-in-progress (18.5) (4.4)- change in other current assets (1.5) (23.2)- change in trade accounts and notes payable (2.4) 19.8- change in other current liabilities (38.0) (16.3)Net cash-flow provided by operating activities 226.2 328.3INVESTING Total capital expenditures (incl. variation of fixed assets (36.6) (36.4)suppliers, excluding multi-client surveys)Investment in multi-client surveys, net cash (95.8) (139.9)Proceeds from disposals of tangible and intangible assets 0.1 ?Total net proceeds from financial assets 0.2 ?Acquisition of investments, net of cash and cash equivalents (0.4) ?acquiredVariation in loans granted ? ?Variation in subsidies for capital expenditures ? ?Variation in other non-current financial assets 9.7 (1.4)Net cash-flow used in investing activities (133.6) (166.9)

Six months ended June 30,(In millions of US$) 2020 2019FINANCING Repayment of long-term debt ? ?Total issuance of long-term debt ? ?Lease repayments (28.8) (28.7)Change in short-term loans ? ?Financial expenses paid (39.5) (40.1)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 (75.5) (72.6)activitiesEffects of exchange rates on cash (7.5) (0.3)Impact of changes in consolidation scope ? ?Net cash flows incurred by discontinued operations (41.1) (114.7)Net increase (decrease) in cash and cash equivalents (64.8) 7.1Cash and cash equivalents at beginning of year 610.5 434.1Cash and cash equivalents at end of period 545.7 441.2

Analysis by segment (continuing operations)

Six months ended June 30, 2020Amounts inmillions ofUS$, except for Consolidatedassets and GGR Equipment Eliminations Segment IFRS 15 Total /capital figures adjustments As reportedemployedin billions ofUS$Revenues fromunaffiliated 341.9 131.0 - 472.9 18.3 491.2customersInter-segment 1.8 (1.8) revenues^(1)Operating 341.9 132.8 (1.8) 472.9 18.3 491.2revenuesDepreciationandamortization (85.0) (14.9) (0.9) (100.8) - (100.8)(excludingmulti-clientsurveys)Depreciationandamortization of (180.4) - - (180.4) (6.0) (186.4)multi-clientsurveysOperating (61.3) (7.2) (15.9) (84.4) 12.3 (72.1)income ^(2)EBITDAs 197.1 8.1 (14.2) 191.0 18.3 209.3Share of incomein companiesaccounted for 0.1 - - 0.1 - 0.1under theequity methodEarnings BeforeInterest and (61.2) (7.2) (15.9) (84.3) 12.3 (72.0)Tax ^(2)Capitalexpenditures(excluding 23.5 11.5 1.6 36.6 - 36.6multi-clientsurveys) ^(3)Investments inmulti-client 139.9 - - 139.9 - 139.9surveys, netcashCapital 1.7 0.5 (0.1) 2.1 - 2.1employed ^(4)Totalidentifiable 2.3 0.6 - 2.9 - 2.9assets ^(4)

-- Sale of equipment to the Contractual Data Acquisition segment which is classified as discontinued operation. -- Eliminations and other corresponded to general corporate expenses. -- Capital expenditures included capitalized development costs of US$(24.1) million for the six months ended June 30, 2020. Eliminations and other corresponded to the variance of suppliers of assets for the six months ended June 30, 2020. -- Capital employed and identifiable assets related to discontinued operations are included under the column Eliminations and other.

Six months ended June 30, 2019Amounts inmillions ofUS$, except for Consolidatedassets and GGR Equipment Eliminations Segment IFRS 15 Total /capital figures adjustments As reportedemployedin billions ofUS$Revenues fromunaffiliated 400.5 222.2 ? 622.7 (16.0) 606.7customersInter-segment ? 6.0 (6.0) ? ? ?revenues^(1)Operating 400.5 228.2 (6.0) 622.7 (16.0) 606.7revenuesDepreciationandamortization (49.1) (15.7) (0.3) (65.1) ? (65.1)(excludingmulti-clientsurveys)Depreciationandamortization of (162.6) ? ? (162.6) 23.4 (139.2)multi-clientsurveysOperating 44.9 34.7 (15.9) 63.7 7.5 71.2income ^(2)EBITDAs 254.0 50.5 (14.6) 289.9 (15.9) 274.0Share of incomein companiesaccounted for 0.1 ? ? 0.1 ? 0.1under theequity methodEarnings BeforeInterest and 44.9 34.7 (15.8) 63.8 7.5 71.3Tax ^(2)Capitalexpenditures(excluding 26.2 9.3 0.9 36.4 ? 36.4multi-clientsurveys) ^(3)Investments inmulti-client 95.8 ? ? 95.8 ? 95.8surveys, netcashCapital 2.0 0.6 (0.2) 2.4 ? 2.4employed ^(4)Totalidentifiable 2.2 0.7 0.7 3.6 3.6assets ^(4)

-- Sale of equipment to the Contractual Data Acquisition segment which is classified as discontinued operation. -- Eliminations and other corresponded to general corporate expenses. -- Capital expenditures included capitalized development costs of US$(16.4) million for the six months ended June 30, 2019. Eliminations and other corresponded to the variance of suppliers of assets for the six months ended June 30, 2019. -- Capital employed and identifiable assets related to discontinued operations are included under the column Eliminations and other.

Attachment

-- CGG - Press Release pdf version