CGG : 2023 Q4 Financial Press Release

CGG Announces its Q4 & FY 2023 Results

Strong Financial Improvements in 2023:

Revenue at $1,125m, up 21%

Organic cash generation of $32m*

Positive net cash generation in 2024 and around $100m in 2025

to support the deleveraging roadmap

PARIS, France - March 6, 2024 - CGG (ISIN: FR0013181864), a global technology and high-performance computing leader announced today its fourth quarter and full year 2023 audited results.

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

"In 2023, CGG significantly strengthened its financial performance, and I am pleased to see that we returned to positive organic cash flow generation, while continuing to invest in our New Businesses.

CGG today not only remains the clear leader in its core businesses, it also addresses the Energy Transition as well as the new technology-enabled markets of High-Performance Computing and Infrastructure Monitoring.

After a good start in early 2024, we will continue to develop the company with a focus on further strengthening our core businesses, accelerating the growth of our New Businesses, and delivering our financial roadmap that prioritizes cash generation and balance sheet deleveraging."

• including $(66)m fees from contractual vessel commitments

Q4 2023: A strong cash generation of $48m

• IFRS figures: revenue at $265m, EBITDAs at $68m, OPINC at $(11)m.
• Segment revenue at $320m, flat year-on-year.

1. Geoscience at $98m, up 41% year-on-year.

1. Earth Data at $103m, down (29)% year-on-year. Prefunding revenue at $62m, down (8)% year-on-year. After sales at $41m, down (47)% year-

on-year.

• 1. Sensing & Monitoring at $119m, up 14% year-on-year.
• Segment EBITDAs at $122m, a 38% margin, including $(13)m fees from contractual vessel commitments and $(8)m old equipment inventory write- off.
• Segment operating income at $15m, a 5% margin.
• Group net income at $(15)m.
• Net cash-flow at $48m, including $(18)m fees from contractual vessel commitments.
• • 1 -

Full year 2023: Strong financial improvement

• IFRS figures: revenue at $1,076m, EBITDAs at $351m, OPINC at $119m.
• Segment revenue at $1,125m, up 21% year-on-year.
• Segment EBITDAs at $400m, a 36% margin due to business mix as well as $(44)m fees from contractual vessel commitments and a $(8)m SMO inventory write-off.
• Segment operating income at $138m, a 12% margin due to business mix.
• Group net income at $16m.
• Net cash flow at $32m, including $(66)m fees from contractual vessel commitments.

Balance Sheet at the end of December 2023

• Liquidity of $417m, including cash liquidity of $327m and $90m of undrawn RCF.
• Net debt before IFRS 16 at $871m at the end of December 2023.
• Segment leverage ratio (Net debt IFRS 16 to adjusted* segment EBITDAs) was 2.4x at the end of December 2023.

2024-2026 Market Trends: Mid-single digit growth of our coremarket and accelerated growth of our New Businesses

• CGG anticipates market demand for its core businesses to continue to grow at yearly mid-single digit through 2026 sustained by offshore international activity and the middle east, selected exploration in key basins, and eventually an increasing need for technologies and subsurface understanding.
• Building on its key technology and proven expertise, CGG is strongly positioned to address the critical needs of new markets in low carbon (CCUS and Minerals and Mining), High Performance Computing (HPC) and Structural Health Monitoring (SHM). These three businesses are expected to develop rapidly at a CAGR above 30% during the period 2024 - 2026.

- 2 -

CGG 2024-2025 financial roadmap: deleveraging the balancesheet:

• CGG anticipates net cash generation to accelerate and represent around $100 million in 2025, based on the end of our vessel commitment and continued operational improvement, notably in SMO as well as growth of our core and New Businesses fueled by selective increase in organic investment.
• Based on this solid cash generation over the period 2024-2025 and with a reduced $100 million cash need to run its operations, CGG has a clear 2024- 2025 financial trajectory, starting with the extension of the RCF in 2024, a re-rating discussion with the Rating Agencies and with eventually about $300 million of cash available for a gross debt buyback program and/or reduced refinancing before Q1 2026.
• To ignite its financial 2024-2025 roadmap, CGG announces its intention to repurchase a first tranche of $30 million debt in 2024.

Full Year 2024 financial objectives1

• In 2024, segment revenue is expected to be aligned with 2023:

1. Geoscience: continued growth driven by technology and demand for low carbon.

1. Earth Data: increase driven by transfer fees and favorable impact of delayed 2023 licensing rounds.

1. Sensing & Monitoring: to be down due to lower numbers of mega- projects.

• 1. New Businesses expected to grow by more than 30%
• 2024 segment EBITDAs is expected to be positively impacted by business mix.
• 2024 EDA cash Capex is expected to be around $175 -$200m with prefunding above 75%.
• CGG is anticipating 2024 positive net cash flow2 to reach a similar level as 2023, considering that it is the last year of the negative impact of the vessel contractual commitment with Shearwater.
  1 based on a 1.1 €/$ exchange rate 2 excl any debt buyback

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Key Figures - Fourth Quarter 2023

Key Figures IFRS

In million $

Operating revenues

Operating Income

Equity from Investment

Net cost of financial debt

Other financial income (loss)

Income taxes

Net Income / Loss from continuing operations

Net Income / Loss from discontinued operations

Group net income / (loss)

Operating Cash Flow

Net Cash Flow

Net debt

Net debt before lease liabilities

Capital employed

2022

Q4

268

84

(18)

(24)

(2)

9

49

(2)

47

103

62

951

858

2,010

2023

Q4

265

(11)

(3)

(20)

(2)

11

(25)

10

(15)

152

48

974

871

2,038

Variances

%

(1)%

-

86%

(17)%

-

13%

(151)%

576%

(132)%

47%

(23)%

2%

1%

1%

Key Figures - End of December 2023

Key Figures IFRS

In million $

Operating revenues

Operating Income

Equity from Investment

Net cost of financial debt

Other financial income (loss)

Income taxes

Net Income / Loss from continuing operations

Net Income / Loss from discontinued operations

Group net income / (loss)

Operating Cash Flow

Net Cash Flow

Net debt

Net debt before lease liabilities

Capital employed

2022

Full year

927

182

(19)

(99)

0

(17)

48

(5)

43

346

(3)

951

858

2,010

2023

Full year

1,076

119

(2)

(95)

(4)

(14)

4

12

16

408

32

974

871

2,038

Variances

%

16%

(34)%

89%

3%

-

19%

(92)%

-

(63)%

18%

-

2%

1%

1%

- 4 -

Key Segment Figures - Fourth Quarter 2023

Key Segment Figures

In million $

Segment revenue

Segment EBITDAs

Group EBITDAs margin

Segment operating income

Opinc margin

IFRS 15 adjustment

IFRS operating income

Operating Cash Flow

Net Segment Cash Flow

Supplementary information

Adjusted segment EBITDAs before NRC EBITDAs margin

Adjusted segment operating income before

NRC

Opinc margin

2022

Q4

319

193

60%

94

29%

(10)

84

103

62

159

50%

66

21%

2023

Q4

320

122

38%

15

5%

(26)

(11)

152

48

121

38%

14

4%

Variances

%

0%

(37)%

1. bps
   (84)%

1. bps (177)%
   -
   47%
   (23)%

(24)%

1. bps
   (78)%

1. bps

Key Segment Figures - End of December 2023

Key Segment Figures In million $

Segment revenue

Segment EBITDAs

Group EBITDAs margin

Segment operating income

Opinc margin

IFRS 15 adjustment

IFRS operating income

Operating Cash Flow

Net Segment Cash Flow

Supplementary information

Adjusted segment EBITDAs before NRC EBITDAs margin

Adjusted segment operating income before

NRC

Opinc margin

2022

Full year

928

434

47%

180

19%

2

182

346

(3)

395

43%

147

16%

2023

Full year

1,125

400

36%

138

12%

(19)

119

408

32

400

36%

138

12%

Variances

%

21%

(8)%

1. bps
   (23)%
   (7) bps
   -
   (34)%
   18%
   -

1%

1. bps
   (6)%

(4) bps

- 5 -

Key figures bridge: Segment to IFRS - Fourth Quarter 2023

	P&L items			Segment			IFRS 15			IFRS figures
			figures
	In million $					adjustment
	Total Revenue	320		(54)		265
	OPINC	15		(26)		(11)
	Cash Flow Statement items			Segment			IFRS 15			IFRS figures
	In million $			figures			adjustment
	EBITDAs	122		(54)		68
	Change in Working Capital & Provisions	21		55		75
	Cash Provided by Operations	152		0		151
	Earth Data Data Library NBV			Segment			IFRS 15			IFRS figures
	In million $			figures			adjustment
Opening Balance Sheet, Oct 1st 23	359		117		476
Closing Balance Sheet, Dec 31st 23	311		147		458

Key figures bridge: Segment to IFRS - End of December 2023

	P&L items			Segment			IFRS 15			IFRS figures
			figures
	In million $					adjustment
	Total Revenue	1,125		(49)		1,076
	OPINC	138		(19)		119
	Cash Flow Statement items			Segment			IFRS 15			IFRS figures
	In million $			figures			adjustment
	EBITDAs	400		(49)		351
	Change in Working Capital & Provisions	3		49		52
	Cash Provided by Operations	408		(0)		408
	Earth Data Data Library NBV			Segment			IFRS 15			IFRS figures
	In million $			figures			adjustment
Opening Balance Sheet , Jan 1st 23	304		115		419
Closing Balance Sheet , Dec 31th 23	311		147		458

- 6 -

Fourth Quarter 2023 Segment Financial Results

Data, Digital & Energy Transition (DDE)

Data, Digital & Energy Transition

(DDE)

In million $

Segment revenue

Geoscience

Earth Data

Prefunding

After-Sales

Segment EBITDAs

EBITDAs Margin

Segment operating income

OPINC Margin

Equity from investments

Capital employed (in billion $) Supplementary information Adjusted segment EBITDAs before NRC

EBITDAs Margin

Adjusted segment OPINC before NRC OPINC Margin

Other Key Metrics

Earth Data cash capex ($m)

Earth Data cash prefunding rate (%)

2022

Q4

215

69

145

67

78

180

84%

90

42%

(2)

1.5

147

68%

62

29%

(25)

264%

2023

Q4

201

98

103

62

41

117

58%

20

10%

0

1.5

117

58%

21

10%

(29)

209%

Variances

%

(7)%

41%

(29)%

(8)%

(47)%

(35)%

1. bps
   (78)%

1. bps

-105%

2%

(20)%

1. bps
   (67)%

1. bps

16%

(54) bps

Digital, Data and Energy Transition (DDE) segment revenue was $201 million, down (7)% year-on-year.

• Geoscience (GEO) revenue was $98 million, up 41% year-on-year driven by delivery of large processing projects. Activity remains solid worldwide with Elastic TLFWI technology continuing to prove its value and receiving recognition from clients. In November, CGG launched Outcome-as-a-Service (OaaS) - a new offering designed to deliver customized, capability-focused HPC and AI solutions for scientific and engineering domains.
• Earth Data (EDA) revenue was $103 million, down (29)% year-on-year.
  Earth Data cash capex was $(29) million this quarter, up 16% year-on- year. Prefunding revenue of our Earth-Data projects was at $62 million and prefunding rate was high this quarter at 209%.
  Earth Data after-sales were $41 million this quarter, down (47)% year-on-year mainly due to delayed licensing rounds in Brazil and in the GoM.
  The segment library Net Book Value at the end of December 2023 was $311 million ($458 million after IFRS 15 adjustments).

DDE segment EBITDAs was $117 million, a 58% margin due to business mix.

DDE segment operating income was $20 million, a 10% margin.

DDE capital employed were stable at $1.5 billion at the end of December 2023.

- 7 -

Sensing & Monitoring

Sensing & Monitoring

In million $

Segment revenue

Land

Marine

Downhole gauges

Beyond the Core

Segment EBITDAs

EBITDAs margin

Segment operating income

OPINC Margin

Capital employed (in billion $)

Supplementary information

Adjusted segment EBITDAs before NRC

EBITDAs margin

Adjusted segment OPINC before NRC

OPINC Margin

2022

Q4

104

62

22

7

14

20

19%

12

12%

0.6

20

20%

12

12%

2023

Q4

119

36

66

6

11

11

9%

1

1%

0.6

9

8%

(1)

-1%

Variances

%

14%

(42)%

207%

(9)%

(20)%

(46)%

1. bps

(93)%

1. bps
   (8)%

(56)%

1. bps
   (108)%
2. bps

Sensing & Monitoring (SMO) segment revenue was $119 million, up 14% year-on-year.

• Land equipment sales represented 30% of total sales. Overall activity was high, mainly in North Africa.
• Marine equipment sales represented 55% of total sales with sales of nodes equipment to Asia and sections of Sentinel for a streamer upgrade.
• Downhole equipment sales were $6 million.
• Sales from The New Businesses were $11 million.

SMO segment EBITDAs was $11 million, a 9% low margin due to $(8)m old equipment inventory write-off.

SMO segment operating income was $1 million.

SMO capital employed was stable at $0.6 billion at the end of December 2023.

- 8 -

Fourth Quarter 2023 Financial Results 2023

Consolidated Income Statements In million $

Exchange rate euro/dollar

Segment revenue

DDE

Sensing & Monitoring

Elim & Other

Segment Gross Margin

Segment EBITDAs

Adjusted Segment EBITDAS *

DDE Adjusted*

Sensing & Monitoring Adjusted*

Corporate

Elim & Other

Non recurring charges

Segment operating income

Adjusted Segment Opinc *

DDE Adjusted* Sensing & Monitoring Adjusted* Corporate Elim & Other

Non recurring charges IFRS 15 adjustment

IFRS operating income Equity from investments Net cost of financial debt Other financial income (loss) Income taxes

Net income / (loss) from continuing operations

Net income / (loss) from discontinued operations

IFRS net income / (loss) Shareholder's net income / (loss) Basic Earnings per share in $ Basic Earnings per share in €

2022

Q4

1.00

319

215

104

0

101

193

159

147

20

(7)

(1)

0

94

66

62

12

(8)

(1)

0

10

84

(18)

(24)

(2)

9

49

(2)

47

46

0.06

0.06

2023

Q4

1.07

320

201

119

0

52

122

121

117

9

(8)

2

0

15

14

21

(1)

(8)

2

0

26

(11)

(3)

(20)

(2)

11

(25)

10

(15)

(15)

(0.02)

(0.02)

Variances

%

7%

0%

(7)%

14%

-

(48)%

(37)%

(24%)

(20)%

(56)%

(7)%

-

-

(84)%

(78%)

(67)%

(108)%

(3)%

-

-

177%

(113)%

86%

17%

13%

(151)%

-

(132)%

(133)%

(133)%

(131)%

Segment revenue was $320 million, stable year-on-year. The respective contributions from the Group's businesses were 31% from Geoscience, 32% from Earth Data (63% for the DDE segment) and 27% from Sensing & Monitoring.

Segment EBITDAs was $122 million, including $(13)m compensation fees to Shearwater and $(8) million write-off of the equipment inventory, a low 38% margin due to business mix.

Segment operating income was $15 million, a 5% margin. IFRS 15 adjustment at operating income level was $(26) million and IFRS operating income, after IFRS 15 adjustment, was $(11) million.

Cost of financial debt was $(20) million. The total amount of interest paid during the quarter was $(44) million.

- 9 -

Taxes were at $11 million.

Net income from continuing operations was $(25) million. Group Net Income this quarter was $(15) million.

After minority interests, Group net income attributable to CGG shareholders was $(15) million/ €(14) million.

Fourth Quarter 2023 Cash Flow

Cash Flow items

In million $

Segment Operating Cash Flow

CAPEX

Industrial

R&D

Earth Data (Cash)

Marine Offshore

Land Onshore

Proceeds from disposals of assets Segment Free Cash Flow

Lease repayments & asset financing Paid Cost of debt

CGG 2021 Plan

Free cash flow from discontinued operations

Net Cash Flow

Financing cash flow

Forex and other

Net increase/(decrease) in cash

Supplementary information

Change in working capital and provisions, included in Segment Operating Cash Flow

2022

Q4

103

(50)

(18)

(6)

(25)

(25)

0

62

115

(2)

(45)

(3)

(2)

62

5

6

73

(61)

2023

Q4

152

(42)

(8)

(4)

(29)

(29)

0

7

116

(18)

(44)

(8)

1

48

(2)

8

52

21

Variances

%

48%

(17)%

(55)%

(32)%

16%

16%

(89)%

1%

-

3%

(122)%

143%

(23)%

(147)%

19%

(29)%

135%

Segment operating cash flow was $152 million, including $21 million positive change in working capital & provisions.

Total Capex was $(42) million:

• Industrial Capex was $(8) million,
• Research & Development Capex was $(4) million,
• Earth Data cash Capex was $(29) million.

Segment free cash flow was $116 million.

After $(18) million lease repayments & asset financing, $(44) million cash cost of debt, $(8) million CGG 2021 Plan cash costs and $1 million free cash flow from discontinued operations, the Q4 2023 net cash flow was $48 million.

- 10 -