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Latest Investor Presentation
March 2010
2
Forward Looking Statements
This presentation contains forward-looking statements, including, without limitation, statements about
CGGVeritas’s (“the Company”) plans, strategies and prospects. These forward-looking statements are
subject to risks and uncertainties that may change at any time, and, therefore, the Company’s actual
results may differ materially from those that were expected. The Company based these forward-looking
statements on its current assumptions, expectations and projections about future events. Although the
Company believes that the expectations reflected in these forward-looking statements are reasonable, it
is very difficult to predict the impact of known factors and it is impossible for us to anticipate all factors
that could affect our proposed results. All forward-looking statements are based upon information
available to the Company as of the date of this presentation. Important factors that could cause actual
results to differ materially from management's expectations are disclosed in the Company’s periodic
reports and registration statements filed with the SEC and the AMF. Investors are cautioned not to
place undue reliance on such forward-looking statements.
Agenda
CGGVeritas - Overview
Sercel & Services History and Technology
Outlook and Perspectives
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► Leading global fleet
► Highest solid streamer
deployment
► 15 high-end (10 streamers
+) and 4 lower-end vessels
► Unique 4D and wide-
azimuth expertise
► Unique position in
desert and Arctic
► High density, high
productivity leadership
► Expertise in non
conventional reservoirs
► Shallow water leadership
► Worldwide network of data processing and imaging centers
► 28 open centers13 dedicated centers Recently opened tech centers in Mumbai, Saudi, Beijing & Mexico
► Preferred supplier for depth and high end imaging
► Most recent Marine
library with key data
in Gulf of Mexico &
Brazil
► Unique land library
position in USA &
Canada , including
Haynesville
► Industry leader
► Full spectrum of
technology
► Large installed base:
2 ,6 million channels
Over 600 Nomad Vibes
3,400 km streamers
Equipment Services
Marine Land Processing & ImagingMulti-clientSercel
2009 Sales: $3.11bn; EBITDAs: $1.0bn
2009 Sales: $0.86bn
2009 EBITDAs: $0.22bn
2009 Revenue: $2.40bn
2009 EBITDAs: $0.83bn
CGGVeritas: A Full Range of Activities
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CGGVeritas: A Unique and Balanced Portfolio
Worldwide local presence
Leadership in Sercel
Recognized excellence in processing
High-end and recent data library
Strategic land position
Strong R&D community
Growing across the E&P workflow
Deep and strong client relationships
Excellence in QHSE
DelineationExploration ProductionDevelopment
Sercel & Services
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In 2009, CGGVeritas Strengthened its Position
Seismic market down 25 - 30%
Low-end and N. American seismic market increasingly challenging
Demand for high resolution acquisition & imaging technologies increased
Interest in reservoir seismic continued to grow
Increasingly competitive in the low-end, especially marine
CGGVeritas increased high-end technology position
Sercel: Increased its leadership and market share in land and marine
Processing & imaging established new benchmark in market share and profitability
Strong new technology take-up: Nautilus, SeaRay, Optowave, V1 innovative Vibroseis acquisition and
TTI RTM Depth Migration
CGGVeritas reinforced its regional position
Long term high-end contracts secured in the Middle-East and Mexico
Strategic development of multi-client library
• Gulf of Mexico Wide-Azimuth, Brazil and US Shale Gas
CGGVeritas refocused its land and marine activities
Increased focus on Arctic and unconventional shale gas with continued weakness in N. American market
Marine fleet focused to the high-end 10+ streamer segment
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Strong Cash Generation to Trough of the Cycle
Year 2009 Results: before restructuring cost and intangible assets
depreciation
Group revenue was $3.11 billion, down 19% from a record 2008
• Services down 12%
• Sercel down 29%
Group operating margin reached 10%
• Sercel delivered a strong 22% resilient operating margin
• Services delivered a 7% operating margin, in an oversupplied marine
market
Strong low end cycle free cash flow at $168, well above target
Backlog as of February 1st 2010 stable at $1.56 billion
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Solid Balance Sheet
Library Not Yet Delivered
37%
Library2007 – 2009
60%
Library Before 2007
3%
MC Library NBV year-end 09 per Age
Capital Employed as of end of December 2009
$ 567 mNet Current
Assets
Net Debt$ 1 323 m
$ 1 281 mNet Fixed
Assets
MC Library $ 676 m
Goodwill $ 2 691 m
$ 3 892 mEquity &
Minority
Interests
Capital
Employed
$ 5 215 m $ 5 215 m Financing
99
Strong Liquidity and Long Term Debt
Liquidity at $1.0 BAs of end of Q4 2009
(in million $)
Maturity ProfileAs of end of Q4 2009
(in million $)
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Agenda
CGGVeritas - Overview
Sercel & Services History and Technology
Outlook and Perspectives
10
A full range of highly sophisticated Seismic Equipment for exploration and
production of hydrocarbon reserves in all environments
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Leader in Geophysical Equipment
Source: Company data and estimates.
► A proven strategy
► Strong financial performance
► Manufacturing excellence quality, reliability & productivity
► Worldwide presence & outstanding customer support
► Remarkable history of growth
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•1996: Set up of a 40% held J.V. with XPEIC (China) Sensors, cables
• 1996: Acquisition of Opseis (US) Radio telemetry
• 1996: Acquisition of one of the Mertz pdct. lines (US) Vibrators
• 1999: Acquisition of Syntron (US) Marine & OBC systems
• 2000: Acquisition of Mark Products (US/Canada) Sensors, cables
• 2003: Acquisition of Sodera (US/France) Marine Sources
• 2004: Acquisition of 51% stake in Junfeng (China) Sensors, cables
• 2004: Acquisition of TUS Seismic (Australia/US/UK) Marine & OBC systems
• 2004: Acquisition of Orca (France) Acoustic Positioning
• 2004: Acquisition of Createch (France) Downhole seismic electronics
• 2006: Acquisition of Vibtech (UK) Wireless technology
• 2008: Acquisition of Metrolog (France) Downhole seismic electronics
• 2008: Acquisition of Quest (UK) Navigation solutions
Sercel’s Strategic Activity
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Land & TZ Marine & OBC Downhole
- Acquisition systems &
related QC software
- Geophones / hydrophones
- Vibrators
- Acquisition systems &
related QC systems
- Marine sources
- Underwater acoustics
- Acquisition & QC systems
- Downhole gauges
- Vibrators and marine sources
- High temperature geophones
A Full Range of Leading Products
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Sercel Outlook
Seismic equipment market progressively strengthening in 2010
Driven by demand for high resolution & productivity
• both in Land and Marine
Increasing demand for our industry leading Marine products
• Ocean Bottom Acquisition Systems
– Ocean Bottom Cable - SeaRay
– Reservoir Monitoring - Optowave
• Marine products
– Nautilus
– Sentinel solid streamers
Sercel continues to outperform
Nautilus®
Sentinel®
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Over 75 years of driving the advance of geophysics through technology
innovation and integration to assist our clients, find reserves in new areas
or improve oil recovery in known reservoirs
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Services: A History of Leadership
1998 Services Revenue Mix 2009 Services Revenue Mix
2000: Buyout of Louis Dreyfus Armateurs 40% minority interest
2001: Acquisition from Aker Maritime of two seismic vessels
2005: Acquisition of Exploration Resources
2007: Acquisition of Veritas
2008: Acquisition of Wavefield
2009: Fleet reshaped to the high-end
Revenue:
$550 Million
Revenue:
$2.4 Billion
From a dominant land to a dominant offshore industrial profile and a large multi-client player
20%
50%
25%
5%Marine
Land
Processing
Multi-Client
45%
17%
22%
16%
Marine
Land
Processing
Multi-Client
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Reduced Low-End Capacity in Marine
Higher-end vessels
Alizé Viking Vanquish
Viking Vision Vantage
Geowave Master
Viking
Orion Search
Geowave Endeavour
Geowave Champion
Challenger
AmadeusViking II
Geowave Voyager
Symphony
Fohn
Geowave Commander
Harmattan
VenturerPrincess
Pacific SwordDuke
Bergen Surveyor
Malene Ostervold
Discoverer II
Lower-end vessels
Voyager*
Pacific Titan
Decommissioned
OceanicVega
OceanicSirius
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Increased High-End Fleet Position Nautilus – Successful
deployment on first
two vessels including
Pemex contract
Highest number of
Solid Streamers
Unique track record
with long offset wide
azimuth
By end 2011, total
streamer count to
increase 20% with
nine vessels
decommissioned
Two new unique 16
streamer vessels
delivered in 2010 - 11
18
16
14
12
10
Average Vessel Age
end 07 end 08 end 09 end 10
Years
11
10
9
8
7
Average Streamers per Vessel
end 07 end 08 end 09 end 10
Streamers
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Strategic Land Position
The ultra-high density survey highlighted new faults in the reservoir
High Resolution Leadership
Unique Arctic & Shallow Water Position
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Canada
US Land
GOM
Brazil
N. Sea
W. Africa
3D: 23,591 sq km
3D: 25,071 sq km
3D: 90,200 sq km
Land
3D = 48,662 km2
Marine
3D = 305,289 km2
Waz = 45,000 km2
3D:147,489 sq kmWaz: 45,000 sq km
3D: 27,600 sq km
3D: 40,000 sq km
Caspian
Asia
Lybia
Indonesia
2D: 43,300 km
2D: 17,200 km
2D: 42,900 km
Well Positioned:
Basin potential
► Proven system
► New play emergence
Beneficial Regulations
► Stable E&P rules
► Good lease turnover
► Exclusivity period
Customer interest
► Active bidding
► High prefunding
Unique and most recent data sets developed:
Offshore
► Deep water Sub-Salt GOM
► Deep water Sub-Salt Santos (Brazil)
► Central Graben in North Sea (UK)
Onshore
► Deep Gas in the Canadian Foothills
► Resources play (Haynesville)Source: Company Data.Reprocessed not included. Rounded figures.
Recent and Well Positioned Library
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A Unique Santos Basin Footprint
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Brazil – Santos Sub-Salt Discoveries
Tupi = 5-8 Bb announced
Last 8 wells in the Santos Sub-Salt province hit oil
Largest offshore discoveries in the past 25 years
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Tupi
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GuaraGuara
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CGGVeritas Data in the GoM
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Narrow Azimuth
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Wide-Azimuth
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Tiber: Garden Banks Wide-Azimuth
Tiber
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Seismic Across the E&P Workflow
4D Fluid Classification with leading Hampson Russell Reservoir Software and Services
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Seismic Across the E&P Workflow
4D Fluid Classification with leading Hampson Russell Reservoir Software and Services
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Growing Importance in Shale Gas
Colorado Shale
Reservoir Determination
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Growing Importance in Shale Gas
Fracture Determination
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Services Outlook
Contract Marine
Incremental increase in demand through 2010, with supply/demand balancing as early as second half of year
Fleet profile reinforced with delivery of unique 16 streamer Oceanic Vega in June and Oceanic Sirius in 2011
Contract Land
Focused on Arctic & Shale Gas in challenging N. American market
Middle East remains robust for ultra high density reservoir seismic and transition zone capabilities
Multi-client
15% of the fleet on multi-client surveys located in our core areas of Brazil and Gulf of Mexico WAZ
Land program focused on shale gas (Haynesville, Marcellus)
Brazil lease sales and new data deliveries driving sales
Processing & Imaging
Continued increasing interest and strong take-up of technology
Haynesville
Services strengthens position in high-end market
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Agenda
CGGVeritas - Overview
Sercel & Services History and Technology
Outlook and Perspectives
35
Outlook and Perspectives
Looking forward, Oil & Gas fundamentals remain strong with continued growing interest for high-end technology
High resolution / High productivity land and marine acquisition
Innovation in imaging and advanced technology drives deeper and more complex discoveries
Seismic reservoir development and optimization continues to strengthen
Seismic market to progressively recover and marine capacity to balance as early as the second half of 2010
Although backlog is currently impacted by low marine prices, we expect financial results to pickup in the second half and further strengthen in 2011
CGGVeritas is well poised for the next steps while taking full advantage of its leading global footprint, technological strength and strongly positioned portfolio
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March 2010
