Electromagnetic Geoservices ASA

Investor Presentation • May 25, 2023

Q1 2023 RESULTS

Oslo, 26th May 2023

Bjørn Petter Lindhom, CEO Anders Eimstad, CFO

Disclaimer

This quarterly presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Electromagnetic Geoservices ASA (EMGS) and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the EMGS' businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although Electromagnetic Geoservices ASA believes that its expectations and the information in this Report were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Report. Electromagnetic Geoservices ASA nor any other company within the EMGS Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Report, and neither Electromagnetic Geoservices ASA, any other company within the EMGS Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Report. Electromagnetic Geoservices ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the Report.

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Q1 2023

• Operational summary
  • Atlantic Guardian warm-stacked for the entire quarter
• Financial highlights for the quarter
  • Revenues of USD 5.0 million
  • EBITDA of USD 3.1 million and adjusted EBITDA of USD 2.4 million
  • 8 th consecutive profitable quarter with a net income of USD 0.5 million
  • Quarter end free cash balance of USD 14.2 million

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Operations and Market

Market update

• Norwegian EM market considerably slower than pre Covid
  • Oil companies focusing on ILX
  • Recent M&A has reduced number of potential clients
• Exploration in the Barents Sea due for a revival?
  • Expansion of the APA round area in the Western Barents Sea
  • Focus on gas as a result of the geopolitical situation with war in Europe and renewed importance of energy security
  • Will the pipeline to the Barents Sea finally be built?
• Majors and National Oil Companies (NOC's) are gearing up their exploration activities
  • Significant increase in drilling activities globally
  • India is opening new areas for exploration and energy security more important than emission reduction in the short term

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• Increasing exploration in Africa and South America

Assessment of gas transport alternatives from Barents Sea South (GASSCO)

3 success factors – why CSEM now can do more than ever

1. Deep Blue Source

• Up to 10 000 Ampere
• 1.5 MW power
• Wideband (0 50Hz)
• Depth rated to 4 000m
• 1. New inversion algorithm
  2. Gauss-Newton algorithm (2018-20)
  3. Solves for resistivity (anisotropic) and dip angle (2021)
  4. Start model independent
• 1. New data Interpretation and Integration workflow
  2. Prospect risk and volume update
  3. Rock physics framework
  4. Scenario testing
  5. Developed workflow for field wide saturation/net-pay

First quarter 2023 performance I Development in revenues and EBITDA

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Key financial metrics			Quarterly development (USD million)
•	Revenues		Revenues
	• USD 5.0 million total revenue	20				15
	• USD 4.8 million in multi-client revenue	15 10			7
•	Vessel utilisation of 0%	5	6	7

• Atlantic Guardian warm-stacked for the entire quarter
• EBITDA
  • USD 3.1 million
  • Adjusted EBITDA* of USD 2.4 million

Adjusted EBITDA

*Adjusted EBITDA includes capitalised multi-client expenses and vessel and office lease expenses

Operational costs

Quarterly operational cost base* development (USD million)

Comments

• Operational costs base in Q1 23 of USD 2.6 million
  • USD 4.4 million lower than Q4 22

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• The Atlantic Guardian was warm-stacked for the entire quarter
• low charter hire, fuel and crew expenses as a result of low vessel activity level

*Cost base is defined as operational costs (charter hire etc, employee expenses, other operating expenses) plus MC investments and vessel and office lease payments presented as financial leases from 1 January 2019, restructuring charges and other extraordinary items

Increase in free cash in Q1 2023

• Net increase in free cash of USD 2.8 million to USD 14.2 million
  • Positive Adjusted EBITDA of USD 2.4 million
  • Trade receivables decreased by USD 4.4 million as compared to the previous quarter
  • Trade payables decreased by USD 2.2 million

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• Vessel and office lease expense of USD 0.7 million

Q & A

Please e-mail questions to: emgs@emgs.com