annual report 2007

focus on performance passion for innovation powered by people delivered with integrity

0802219_RA_GB_Px.indd Sec2:1 31/03/08 17:05:36

04.05 chairman’s message

06.07 key fi gures

08.09 the year of integration

10.11 worldwide presence

12.13 activities geophysical services 14.15 land 16.17 marine 18.19 processing and imaging sercel 20.21 geophysical equipment

22.23 commitments and integrity24.25 our values and our human resources26.27 sustainable development policy 28 shareholder information

0802219_RA_GB_Px.indd Sec2:2 31/03/08 17:05:36

CGGVeritas is driven by a genuine passion for

innovation and its engineers are both scientists

and hands-on operators, working the world over

to develop and constantly improve the technologies

reducing uncertainties about our knowledge of the

sub-surface, from wide-azimuth land and marine

data acquisition techniques to 3D and 4D

processing and imaging technologies.

innovation

ever more innovative sub-surface imaging technologies

0802219_RA_GB_Px.indd Sec2:3 31/03/08 17:05:36

earth

unlocking the Earth’s secretsCGGVeritas land seismic crews

operate all over the world, where,

thanks to their deep and unique

expertise, they contribute to

and advance the quest for new

hydrocarbon resources and

much more. They are recognized

for their ability in extreme

conditions, working in the arctic,

the desert and in transitional

zones and shallow waters.

0802219_RA_GB_Px.indd Sec2:4 31/03/08 17:05:39

Operating the world’s largest seismic fl eet,

delivering its market-leading acquisition services

and deploying Sercel Sentinel solid streamers,

CGGVeritas is the benchmark marine seismic

contractor with a technological head-start

in wide-azimuth acquisition technology. Our

acquisition techniques and technologies along

with our advanced interpretation and analysis

abilities are key contributors to better understand

complex geology, a vital component in the discovery

of new resources.

sea

illuminating below the oceans’ depths

0802219_RA_GB_Px.indd Sec2:5 31/03/08 17:05:41

In 2007, the CGGVeritas Group saw growth of 30% and a net

profi t representing more than 10% of Group revenue. These

excellent results, which exceeded our objectives, refl ect

the potential of a group that today has the critical mass

to be a signifi cant force in delivering excellence in geophysical

equipment and services both globally and locally. Generating

these results in the same year that the new group came into

being is a strong testament to the speed and success of the

merger. These results should satisfy our shareholders, please

our clients and be a source of great pride to our people,

who have made great advances with the integration both

operationally and functionally and are now actively

expanding our business. Our results were also supported

by a market fueled by a strong and growing global demand

for energy and the need for a constant advance in data

acquisition and interpretation technology. By further

improving the quality of sub-surface images, oil and gas

companies can better manage upstream risks and optimize

the production of their resources. Through our ongoing

investment in innovation and expertise in leading-edge

seismic technology, we can maximize the benefi t from

this strong energy market. By also investing in the

progressive modernization of our fl eet, we can be present

in all hydrocarbon basins and carry out contract or multi-

client surveys, such as our leading wide-azimuth surveys

which already cover more than 10,000km² in the Gulf of

Mexico. Geophysics exploration is not just a high-tech

application: it is a hands-on business relying on the skill

and expertise of our people. At the time of the merger, we

announced that it was important to preserve and retain all

our talent, both technical and administrative. Such expertise

was critical to our success in 2007 and it supported our ability

to achieve more than 20% growth in Services. It will be

critical as well in the future to enable us to continue to best

leverage the buoyant energy environment that is expected

to exhibit strong double-digit growth in 2008 and provide

a positive outlook for several years to come. In our business

activity that has also a strong local component CGGVeritas

intends to continue to strengthen its commitments towards

communities and national companies, who are continually

taking an increasingly active global role in the exploration

and production of hydrocarbon resources. As an example

of our commitment, we set up research centers dedicated

to local hydrocarbon basins in Norway, the Middle East,

India and China. As an expert in geophysics, we are working

with national research institutes. And we are stepping up

our efforts in the fi eld of education of young people to assist

in creating the future leaders of our industry. As part of our

PRISM sustainable development program, we have strengthened

and energized our socio-ecological approach to business,

based on respect for the natural and human environment.

In the natural environment this means protecting underground

resources as well as the environment at the surface. In human

terms it means deploying a rigorous safety and security policy

while making decisions in the places we work by thinking

about how those decisions can ensure the community is a

better place for future generations. CGGVeritas has proved

that the merger is creating value and we are now part of

the CAC Next 20 of the Euronext stock exchange. We thank our

shareholders around the world for the trust they placed in us.

We are going to do everything possible to continue meriting

that trust, bolstered by the quality of our physical assets and

services, the motivation of our people, our long-term relations

with our clients and partners worldwide, and our sustainable

development practices.

chairman’s message

Robert BrunckChairman of the Board and CEO

0802219_RA_GB_Px.indd Sec2:6 31/03/08 17:05:45

These excellent results, which exceeded our objectives, refl ect the potential of a group that today has the critical mass to be a signifi cant force in delivering excellence in geophysical equipment and services both globally and locally.

04.05

0802219_RA_GB_Px.indd Sec2:7 31/03/08 17:05:45

key fi gures

IFP4.8%

Breakdown of capital Breakdown of revenues by region

Breakdown of revenues by activity

Floating USA/Europe

95.2%

Europe, Africa and Middle East 32.3%

Land 19%

Processing & imaging 11%

Sercel29%

Marine41%

489 M€

Operating income997 M€

ORBDA250 M€

Net income

The fi nancial performance of CGGVeritas refl ects the momentum

of the upstream and downstream oil market, and the central

role once again being played by seismic exploration (2007 saw

the market grow by over 20%). This is a testament to CGGVeritas’

position as leader in the sector. The Group now has the critical

mass to be a true global player and at the same time to step up

its local presence in all oil basins.

South America

9.2%

North America

30.9%Asia-Pacifi c26.5%

Central America

1.1%

Number of employees

2006 2007

7,3518,123

Consolidated operating revenues(million dollars)

Consolidated operating revenues(million euros)

1,990

2,374

2006 2007

2,500

3,250

2006 2007

Pro forma results for 2006

0802219_RA_GB_Px.indd Sec2:8 31/03/08 17:05:45

Net income(million euros)

EBITDAs(million euros)

Operating income(million euros)

06.07

46%Debt ratio

489

2006 2007

354

2006 2007

116

250790

997

2006 2007

647 M€

Net operating cashfl ow

Capital expenditure(million euros)

432598

2006 2007

Balance sheet fi nancial structure(million euros)

20072006

Shareholders’ equity

Net fi nancial debt

1,193 1,107

2,3732,402

Net debt to equity ratio 50% 46%

0802219_RA_GB_Px.indd Sec2:9 31/03/08 17:06:00

the year of integration

Birth of CGGVeritas

The merger of Veritas DGC Inc. and Compagnie Générale

de Géophysique was legally completed, creating CGGVeritas.

On 23 January, all personnel celebrated the creation of the

new group together, in real time.

First SeaRay sale

Sercel announced the fi rst sale of its new 4-component

seabed acquisition system, called SeaRay, which

broadens Sercel’s range of seabed seismic equipment.

15February

CGGVeritas at the New York Stock Exchange

CGGVeritas attended the New York Stock Exchange to celebrate

the company’s 75th anniversary, the 10th anniversary of its listing

and the recent merger between CGG and Veritas.

JANUARY JUNEMAYAPRILMARCHFEBRUARY

Wide-azimuth program in the Gulf of Mexico

As the leader of high-end data

acquisition technologies, CGGVeritas

launched a program involving the

acquisition of over 10,000 km2 of

wide-azimuth deepwater multi-client

data in the Walker Ridge area of the

Gulf of Mexico.

30April

12January

13March

0802219_RA_GB_Px.indd Sec2:10 31/03/08 17:06:05

Two more new-generation vessels in 2010

CGGVeritas and Eidesvik Offshore ASA signed an agreement to build two large

new-generation vessels for delivery in 2010. Confi gured for spreads of up to 16 long

streamers, the vessels will be built to new architectural and environmental specifi cations

that improve the deployment of Sercel’s solid streamer technology.

02July

DECEMBERNOVEMBEROCTOBERSEPTEMBERAUGUSTJULY

“Vanquish” launched

A new high capacity

3D vessel, the “Vanquish”,

was launched. CGGVeritas

now operates a modern fl eet

of 20 seismic survey vessels.

30November

08.09

From the start CGGVeritas has been creating value for our customers through

innovation and leadership in seismic equipment, seismic services, processing

and imaging as well as interpretation technology.

Combining seismic and Electromagnetic technologies

CGGVeritas entered into a strategic alliance with

Offshore Hydrocarbon Mapping plc (OHM) to jointly

develop innovative solutions combining seismic and

Electromagnetic technologies. Combining datasets from

these two sources will be of signifi cant value for oil

companies in managing their reservoirs and in enhancing

recovery rates.

18July

0802219_RA_GB_Px.indd Sec2:11 31/03/08 17:06:09

worldwide presence

There was also sustained activity in 2007 in the fi eld of marine multi-client acquisition concentrated in the Gulf of Mexico, notably with the very fast penetration of the new wide-azimuth acquisition technique, in which CGGVeritas is the acknowledged market leader. Two major programs were launched during the year in the Walker Ridge and Garden Banks areas. Together, they cover a total surface area of 25,000 km2.

Services also have a strong presence in data analysis and interpretation, through their large data processing and imaging centers in Houston and Calgary, both of which gained from the merger and combined expertise.

Group, Geophysical Equipment and Services

activities break down geographically into

Western Hemisphere, which includes North

America and Latin America (including Central

America), and Eastern Hemisphere, which

includes Europe, Africa and the Middle East,

and Asia-Pacifi c.

North America

Sercel’s main operational base is in Houston, Texas, where most of the world’s marine seismic equipment is manufactured, including Sercel’s Sentinel solid streamer systems. Sercel was also extremely active throughout 2007 in supplying its North American customers with latest-generation land acquisition equipment.

Geophysical Services saw high levels of exclusive and multi-client land acquisition activity, with a total of over 10 crews operating around the Arctic, the Rocky Mountain foothills in Canada and the United States.

with two vessels, on average, involved in new key CGGVeritas data library programs throughout the year, while sales of our library data were stimulated at year-end by the discovery of the Tupi fi eld in the Santos area.

Europe, Africa and the Middle East

Sercel’s headquarters are based in Nantes and Saint-Gaudens, France where all equipment manufacturing facilities experienced high production levels throughout the year.

Services activity was particularly sustained in 2007 in the fi eld of marine 3D acquisition. The activity was mainly concentrated in the Gulf of Guinea and in the Mediterranean, where the “Geo Challenger” carried out a multi-azimuth, 12-streamer program off the Egyptian coast. The year saw a continued strengthening of activity in the Middle East, with a contract fulfi lled by the Føhn offshore Qatar, along with the December

Latin America

The Group enjoys a strong position in Mexico, with its dedicated data processing and imaging operations for Pemex, and in Brazil, where it carries out marine multi-client data acquisition. This area saw sustained activity in 2007,

0802219_RA_GB_Px.indd Sec2:12 31/03/08 17:06:12

start-up of a survey scheduled to last over a year in the Arabic-Persian Gulf. Another vessel recorded multi-client surveys in the North Sea.

The Group carried out signifi cant amounts of land acquisition work in the Middle East in 2007, notably in Oman, Saudi Arabia and Egypt, with an average of over seven crews in operation at any one time during the year, including programs carried out by the Saudi joint venture, ARGAS.

Processing and imaging activity saw further growth with the continued development of our centers in Massy, London and Oslo, and throughout the network of our dedicated centers supporting international oil and gas companies.

Asia-Pacifi c

The Group deployed part of its fl eet to India, Malaysia, Australia and Vietnam, for both 2D and 3D data acquisition programs. Also, one seabed survey was carried out on behalf of leading oil companies in Malaysia, at, for the fi rst time, a depth of over 1,000 meters.

The Group also has a high-profi le processing and imaging presence in the region, mainly through its centers in Singapore, Kuala Lumpur, Perth and Mumbai.

Land activity is concentrated in Thailand and Indonesia, where programs were extended in transition zones and shallow waters.

CGGV

erita

s ce

nter

s & o

ffi ce

s

Hamps

on-R

usse

ll offi ce

s

Serc

el offi c

es &

plan

ts

Key C

GGVe

ritas

dat

a

libra

ry are

as

0802219_RA_GB_Px.indd Sec2:13 31/03/08 17:06:14

activitiesCGGVeritas has organized its geophysical operations into two main sectors of activity: Equipment and Services.

The Equipment sector, operated by Sercel, covers the design, manufacture and marketing of land, marine and down-hole seismic data acquisition equipment.

The Services sector covers:• Land and shallow water seismic data acquisition;

• Marine seismic data acquisition;

• A broad portfolio of advanced geoscience solutions for seismic data processing, reservoir characterization and interpretation;

• And the industry’s most recent and technologically advanced data library in the world’s key locations.

0802219_RA_GB_Px.indd Sec2:14 31/03/08 17:06:15

landpage 14

marine

processing and imagingpage 18

sercel

page 16

page 20

0802219_RA_GB_Px.indd Sec2:15 31/03/08 17:06:16

landGlobal demand for land contract acquisition continues to grow, as does the technological

content of the activity, in order to meet the needs in sophisticated sub-surface imaging

of oil and gas companies.

activities

0802219_RA_GB_Px.indd Sec2:16 31/03/08 17:06:20

Contract land acquisitionIn dollar terms, revenue from contract land acquisition

rose 32% compared with 2006 to €327 million (US$448

million). Contract land acquisition accounted for 19%

of total Services revenue and 14% of total Group revenue.

The 2007 global market for contract land acquisition

accessible to international contractors is estimated

at US$2 billion, up 10% from 2006.

The innovation premiumIn response to market demand for advanced acquisition

and interpretation technologies our international R&D

teams continued to develop HPVA™ wide-azimuth and

SeisMovie™ technologies, which are being marketed in

select regions. The latest-generation V1 technology,

which delivers large-scale productivity gains and

substantially increases the density and quality of 3D

land surveys, was successfully launched in June 2007 at

the EAGE convention in London. SeisMovie™ 4D reservoir

monitoring technology has seen further improvements,

thanks to new pilots installed on various heavy crude

oilfi elds. This technology premium gives an undeniable

advantage to CGGVeritas in a market where demand for

high-precision, high-density imaging is growing fast.

Sustained activityIn 2007, CGGVeritas continued to focus on key areas

where its local excellence is widely acknowledged

with an average of 25 crews, including ARGAS crews

in Saudi Arabia, operational worldwide. Some

22 of these were involved in contract land acquisition,

and three on multi-client land projects. In North

American markets (ie, Canada and Alaska), where

its arctic crews’ experience is well known, the Group

continued to strengthen its positions by introducing

HPVA™, a technology that has already achieved multiple

successes in the Middle East. The Group also continued

to deepen targeted partnerships with leading players

at local levels.

14.15327 M€

Revenue from contract land acquisition

Multi-client land acquisitionThe CGGVeritas multi-client land data library is located

in North America, in Canada and the United States.

In 2007, CGGVeritas invested €102 million (US$140

million) in new programs which benefi ted from high

pre-funding.

Over the full year, total revenue from multi-client library

came to €134 million (US$184 million), an increase

of 54%. As such, in 2007, this sector accounted for 8%

of total Services revenue and 6% of total Group revenue.

After sales of land multi-client data amounted

to €65 million (US$89 million).

10% Growth of the global market compared to 2006

60 36 55 360 41.14 – 147 57.1960 0 36 6 5960 39.21 – 147 01.5160 38.25 – 147 03.2960 37.53 – 147 05.16

0802219_RA_GB_Px.indd Sec2:17 31/03/08 17:06:23

25 19.25 – 91 16.47

marineAs the leading marine contractor, CGGVeritas is ideally placed to take full advantage of a market

that has been growing steadily since 2005. We have the largest fl eet (14 high-capacity 3D vessels,

fi ve mid-capacity vessels and one 2D vessel) and our expertise in advanced technologies including

wide-azimuth means we can meet the growing demand for high defi nition images in complex

geological environments.

activities

0802219_RA_GB_Px.indd Sec2:18 31/03/08 17:06:27

Contract marine acquisitionTotal revenue from contract marine acquisition came

to €531 million (US$727 million), a rise of 25% in US

dollar terms over 2006. In 2007, contract marine

accounted for 31% of total Services revenue

and 22% of total Group revenue.

In 2007 the global market for contract marine

acquisition was estimated at almost US$2.7 billion,

up 20% on 2006.

At CGGVeritas, the fl eet’s expansion and modernization

continue. During the year, two large, high-capacity 3D

vessels deploying over 10 streamers were brought into

service: the “Vision” in early July and the “Vanquish” in

late November, one of them replacing the “Seisquest”, an

8-streamer vessel whose charter contract expired in May.

Meeting the demands of today and tomorrowThe fl eet modernization program stepped up notably

with upgrades for two 2D vessels to 3D, four streamer

confi gurations, and an upgrade for the “Geo Challenger”

to a 12 streamer confi guration. In 2007, the Group

ordered two high-capacity seismic vessels from Eidesvik

Offshore for delivery in 2010. These two vessels will be

built to a new specifi cation – the Ulstein AS X-Bow®

design – which will be unmatched in environmental and

operational performance while improving the deployment

of Sercel’s solid streamers in confi gurations of up to

16 long streamers.

Over the full year, the vessel utilization rate came

to 83% and 40% of the fl eet was dedicated

to multi-client programs.

16.17

20%Growth of the global marketcompared to 2006

Marine multi-client acquisitionThe Group’s positioning in the multi-client market, an area

where CGGVeritas invested heavily in 2007, is a strategic

priority. We introduced wide-azimuth technologies into

the Gulf of Mexico, providing our clients with deeper and

more accurate images. The initial results from the Walker

Ridge program will be available for the March 2009 lease

round. The benefi ts of wide-azimuth data are already

discernible in the high pre-funding levels they are

attracting towards these investments.

In addition to the Gulf of Mexico narrow-azimuth

and wide-azimuth programs, multi-client programs

were conducted in Brazil and the North Sea. In 2007,

CGGVeritas continued to develop its marine multi-client

data library with an investment of €269 million

(US$368 million). Today, CGGVeritas offers the most

recent and advanced data library in the industry.

Total annual revenue from marine multi-client surveys

came to €455 million (US$623 million), an increase

of 17% in US dollar terms over 2006. In 2007, therefore,

this sector accounted for 26% of total Services revenue

and 19% of total Group revenue. After sales of data

amounted to €225 million (US$308 million).

531 M€

Revenue from contractoffshore acquisition

5 5 33 9 0 325 24.52 – 91 11.3525 23.46 – 91 12.3825 22.17 – 91 13.3425 21.41 – 91 14.3725 20.29 – 91 15.56

0802219_RA_GB_Px.indd Sec2:19 31/03/08 17:06:31

processing and imagingIn 2007 processing and reservoir revenue amounted to €263 million (US$360 million),

representing growth of over 11% in dollar terms compared with 2006. Processing

and reservoir accounted for 15% of total Services revenue and 11% of total Group revenue.

activities

0802219_RA_GB_Px.indd Sec2:20 31/03/08 17:06:32

18.19

Ever more precise imaging technologiesGlobal demand for sophisticated imaging services

continues to strengthen, sustained by growing volumes

of marine data. CGGVeritas is in a particularly

advantageous position, due to the size of its fl eet

of seismic exploration vessels and, above all, because

of its unrivaled team of geophysicists and researchers.

Located worldwide, they can respond to the demand

for advanced technology, particularly for depth imaging

and wide-azimuth processing. The emergence of Reverse

Time Migration technology, for example, will notably

expand the knowledge of complex, fractured geology

such as carbonate reservoirs, or those located under

basalt or salt. This is a strategic isssue for our customers.

Since the early 2007 CGGVeritas merger, the global

integration of our R&D teams, including the convergence

of processing software has been proceeding smoothly,

with the objective of a fully-operational integrated

platform in 2009 that will combine the best of the

two currently used platforms.

Processing and imagingThe CGGVeritas merger led to the creation of the world’s

most extensive network of processing and imaging open

and dedicated centers, which enjoy an excellent reputation

among our clients.

No other company in the industry enjoys such a position.

At end-December CGGVeritas operated 49 centers worldwide,

of which 15 were dedicated to clients. Centers located

on the premises of individual clients, including BP, Shell,

Total, and Pemex, simultaneously constitute a response

to the trend towards building a close and open relationship

for seismic data processing to ensure the results best take

into account local knowledge and geology. In each

of our Houston, London and Singapore locations,

CGGVeritas processing and imaging centers are being

regrouped in common sites to offer our clients effi cient

access to top-ranking teams of specialists and unmatched

raw computing power, tailored to their strategic

requirements. 10% Growth of the global market compared to 2006

263 M€

Revenue from processing and imaging activity

9 0 5 95 8 529 41.32 – 95 19.28 9 36 95 059 3 9 95 5 369 38 6 95 6 829 39.37 – 95 17.41

0802219_RA_GB_Px.indd Sec2:21 31/03/08 17:06:36

47 16.39 – 1 36.2747 15.37 – 1 35.21

sercelIn 2007, Sercel took on a whole new dimension, achieving 41% revenue growth of €789 million

(US$1,080 million). Intra-Group sales accounted for 14% of Sercel revenue.

The 2007 contribution from the Equipment sector was 29% of total Group revenue.

activities

0802219_RA_GB_Px.indd Sec2:22 31/03/08 17:06:42

20.21

Confi rmed leadership in a growing marketAcross all of our equipment manufacturing plants

from the US in the Western Hemisphere to our plants

in France, China and Australia throughout the Eastern

Hemisphere, we substantially boosted our output

during the year. Strong demand for seismic equipment

kept all sites operating at very high capacity.

The global market increased around 35%, with very

strong growth in the land data acquisition equipment

segment. The market share of Sercel, the unchallenged

global market leader for the manufacture of land and

marine geophysical services equipment, is an estimated

60%. During the year, Sercel delivered 80% more land

sensors, 40% more vibrators and around 800km of solid

and liquid streamers.

New products to leverage market momentumThroughout the year, Sercel continued to pass new

technological milestones. The product range was

improved and expanded. In 2007, Sercel developed

and marketed new versions of its Seal marine systems

and 428XL land systems. The new marine equipment

designed to improve the productivity and recording

quality of seismic vessels, SeaPro Nav and Nautilus

multi-directional streamer controller system, were given

extensive sea trials in preparation for sales in early

2008. Nautilus was unveiled at the San Antonio Society

of Exploration Geophysicists convention in late 2007.

New Sercel products were successfully delivered during

the year, including SeaRay, a seabed acquisition product

based on the acquisition technology of the 428 family,

and Unite, a cable-free, land acquisition system.

35% Growth of the global market compared to 2006

789 M€

Revenue from Sercel activity

00 03 03 3 947 22.43 – 1 42.2847 21.16 – 1 41.1347 20.44 – 1 40.2847 19.17 – 1 39.25

0802219_RA_GB_Px.indd Sec2:23 31/03/08 17:06:44

commitments and integrity

Business ethics are central to the Group’s continued development strategy. We do what we say, a powerful sign of our corporate integrity. In 2007 CGGVeritas accordingly published its vision and values, which are notably taught at CGGVeritas University, and launched a sustainable development program called PRISM, for Personal Responsibility and Integrity in Management.

0802219_RA_GB_Px.indd Sec2:24 31/03/08 17:06:49

our values and our human resources

page 24

sustainable development policypage 26

0802219_RA_GB_Px.indd Sec2:25 31/03/08 17:06:49

CGGVeritas developed a unique set of corporate values as part of the initial steps

of creating the new company. We have four values, which can be summed up in

the following statement: “Our focus on performance and passion for innovation

are powered by people and delivered with integrity”.

A vision translated into everyday business practiceThe Group’s vision is to be the leading international

partner for the development of natural resources

through geophysics. This translates into a number

of specifi c targets: be the industry benchmark; deliver

breakthrough technologies and innovative solutions;

attract, develop and recognize talent; and promote

a culture of performance creating long-term value.

These objectives are in turn translated into action.

The focus on performance, for example, implies individual

commitment to company success and respect for

sustainable development. Innovation is core to the

Group’s development, and we created an environment

where personal initiative and autonomy are encouraged.

Within CGGVeritas, our people’s contribution to

performance gets recognition and goes hand-in-hand

with encouraging teamwork and diversity. Last, honoring

our commitments and being consistent in word and deed

is a central principal of our integrity, fostering a climate

of mutual trust throughout the Group.

CGGVeritas University: from values to businessCGGVeritas University plays a key role in deploying our

corporate values, which are core to our management training.

It is supplemented by specifi c programs organized in

partnership with internationally-acclaimed schools and

universities.

our values and our human resources

commitments and integrity

0802219_RA_GB_Px.indd Sec2:26 31/03/08 17:06:53

24.25

The CGGVeritas University is also a leading-edge technical

training school. In its Paris-Massy, London, Houston,

Singapore and Villahermosa centers, it delivers world-

class geophysical training, offering staff outstanding

development opportunities. The CGGVeritas University

is also open to the wider oil and gas community and to

the Group’s major customers through developing tailored

courses, ranging from geophysical technologies to safety

procedures and software and computer system skills for

data processing, imaging and interpretation.

A Human Resources policy attuned to Group valuesCGGVeritas puts managing its human capital right at the

center of its strategy. The Group has developed a Human

Resources policy that seeks to differentiate itself through

its ability to identify, attract, recruit, develop and retain

the talent and skills it needs. Convergence initiatives

in 2007 led to the creation of a new Human Resources

management platform with phase one being deployed

from January 2008. On the agenda in the months ahead

are converging remuneration levels, fi nalizing succession

planning, global mapping and the roll-out of common

performance appraisal tools, career monitoring, and

training.

0802219_RA_GB_Px.indd Sec2:27 31/03/08 17:06:54

The CGGVeritas vision of being the leading international partner in the development of natural

resources through geophysics cannot fully be a success globally and locally without a clear

focus on sustainable development in its three key areas of environmental protection, social

progress and economic development.

sustainable development policy

commitments and integrity

Reducing environmental impactManaging our environmental impact, an activity that is

rooted in our PRISM sustainable development program,

is a key priority in our day-to-day geophysical activities

and in all our future projects. Our new X-Bow® vessels,

for example, which will be delivered in 2010, are

designed to surpass environmental specifi cations that

are acknowledged to be the most stringent in terms of

waste management and fuel consumption. The Group

is also a privileged partner of trade bodies that focus

on research topics involving measuring and monitoring

possible impacts on marine fauna from seismic

acquisition. This includes the careful selection of marine

sources, the use of passive acoustic monitoring and

whale observation systems.

Contributing to economic and social development

CGGVeritas also has anchored its international

development to leveraging local employment and to

nurturing quality relations with the communities hosting

its operations. The Group pursues active local integration

policies through its recruitment and training activities,

and by forging long-term partnerships. In China, for

example, Sercel has bolstered its presence in every link in

the value chain, fi rst by opening its Beijing Support Offi ce

in 1987 and, more recently, by setting up two equipment

manufacturing joint ventures, Xian in 1996 and Junfeng in

2004, before going on to launch Sercel Beijing Technology

in 2006, which is dedicated to IT development. In the

Middle East it is through two key partnerships, Argas

and Ardiseis, that CGGVeritas is running all its land

and shallow water operations. The Group also continues

to foster technology partnerships with local institutes

and universities worldwide, notably, in 2007, with the

University of Bergen, Norway.

0802219_RA_GB_Px.indd Sec2:28 31/03/08 17:06:54

26.27

Making geophysical expertise serve sustainable developmentBecause it offers increasingly detailed knowledge

of geology and the movement of fl uids, geophysics

is a technology that optimizes the production of existing

hydrocarbon reservoirs and their management over time.

In the future, it should also contribute to implementing

C02 sequestration solutions thanks to its subsurface

imaging and reservoir monitoring capabilities, thereby

helping to combat global warming.

Empowering all our peopleThe Group and its people are deeply committed

to properly managing the quality of its products

and services, to the health and safety of its personnel,

and to minimizing the environmental impact of its

activities. Such dedication is the basis of the PRISM

sustainable development program through which the

Group also hopes to motivate and galvanize everyone

inside and outside the Group to ensure our work

leaves the world a better place for future generations.

CGGVeritas has signed up to the United Nations Global

Compact and is committed to applying its principles.

0802219_RA_GB_Px.indd Sec2:29 31/03/08 17:06:54

shareholder information

Stock exchange listingCGGVeritas stock is listed in Compartment A

(CAC Next 20) of Euronext Paris (code

ISIN FR0000120164), and on the New York

Stock Exchange in the form of American

Depositary Shares (ADS), where fi ve ADS

represent one ordinary share. ADS are

issued by the Bank of New York and have

been listed under the ticker symbol “CGV”

since 15 January 2007.

As of 31 December 2007, CGGVeritas stock

was trading at €195 and one ADS was

worth US$56.05.

Share CapitalAs of 31 December 2007, the Group’s share

capital totaled €54,901,516, comprising

27,450,758 shares with a face value of €2.

2008 Annual Shareholders’ MeetingThe Annual Shareholders’ Meeting

will take place on 29 April 2008

at 9:30am at the Hôtel Méridien,

19, rue du Commandant-Mouchotte

– 75014 Paris, France.

DividendsThere are no plans to propose the

payment of a dividend for the 2007 fi scal

year at the Annual Shareholders’ Meeting.

Investor RelationsA copy of the 2007 annual report fi led with the Autorité des Marchés Financiers (AMF) and

Form 20F as fi led with the Securities and Exchange Commission (SEC) and other available

company documents will be sent free of charge to any investor on written application

to the CGGVeritas Investor Relations Department. Group fi nancial information is also

available on our website at www.cggveritas.com.

Statutory AuditorsErnst & Young et Autres41, rue Ybry – 92576 Neuilly-sur-Seine Cedex

Mazars et Guérard61, rue Henri-Regnault – 92400 Courbevoie

This document has been drawn up for the general information of shareholders and its

content shall in no way be seen as an offer to purchase or an incentive to acquire Company

shares. Nor does it constitute a Company guarantee of the value of its shares.

CGGVeritas Investor RelationsTour Maine-Montparnasse – 33, avenue du Maine – BP 191

75755 Paris Cedex 15

Tel.: +33 1 64 47 38 31 – Fax: +33 1 64 47 34 32

e-mail: invrel@cggveritas.com

Paris Stock Exchange (Euronext)

Minimum 2007 share price: €138.11

Maximum 2007 share price: €241.49

Closing price, 31/12/2007: € 195

CGGVeritas share price

New York Stock Exchange (NYSE)

Minimum 2007 share price: $34.99

Maximum 2007 share price: $68.78

Closing price, 31/12/2007: $ 56.05

2003 2004 2005 2006 2007

50

100

150

200

250

300

2002

€

0802219_RA_GB_Px.indd Sec2:30 31/03/08 17:06:55

Design and production: Photo credits: CGGVeritas, Sercel, H. Conge, P. Maurein, M. Mahi, V. Kriéger, K. Childress, J. Monard, B. Deverre, P. Hawkins, S. Austrui, S. Carcassonne, R. Lehmann, Getty Images.

0802219_RA_GB_Px.indd Sec2:31 31/03/08 17:06:55

TOUR MAINE-MONTPARNASSE

33, AVENUE DU MAINE

BP 191

75755 PARIS CEDEX 15 – FRANCE

0802219_RA_GB_Px.indd Sec1:32 31/03/08 17:05:35