Electromagnetic Geoservices ASA

Investor Presentation • Nov 5, 2020

Q3 2020 RESULTS

Oslo, 5th November 2020

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.

Q3 2020

Operational highlights

• Atlantic Guardian cold stacked for the entire quarter
• Continue transition towards low-cost set-up

Financial highlights

• Revenues of USD 2.1 million
• EBITDA of negative USD 0.2 million
• Adjusted EBITDA of negative USD 1.2 million

Subsequent events

• Multi-client sales of USD 1.2 million
• OFG and EMGS enter into cooperation agreement

Operations, Market and Outlook

Market outlook and industry collaborations

• CSEM market expected to remain challenging
• Transition to low-cost setup on schedule
• EMGS working towards restarting data acquisition in 2021
• EMGS signed a collaboration with Ocean Floor Geophysics (OFG) to collaborate on CSEM opportunities worldwide
• Collaboration with Time Lapse Geo (TLG) on reservoir monitoring
• Cooperation with TGS in the Hoop area of the Barents Sea

Norwegian Multi-Client library and 25th License Round

• Proposed areas for the 25th round includes 9 areas and a total of 136 blocks, of which 125 are in the Barents Sea and 11 in the Norwegian Sea
• EMGS expects that the round will generate both late sale and new acquisition opportunities
• EMGS, in collaboration with TGS, has extensive CSEM data coverage in the Hoop area north of the Wisting field

Wells drilled this year

• A 4th well (Mist) has been drilled where EMGS has multiclient coverage
• It did not have a CSEM anomaly and was announced as dry
• All 4 wells were targeting prospects without any CSEM anomalies, and all came in unsuccessful (dry)
• Grind (6507/8-10S) Dry
• Gabriel (35/10-5) Dry
• Sandia 7321/8-2S Dry
• Mist 7220/7-1 Dry

Third quarter 2020 performance I Development in revenues and EBITDA

Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 1

-1

Key financial metrics Quarterly development (USD million)

• Revenues
• USD 2.1 million total revenue
• USD 0.6 million contract sales
• USD 0.1 million late sales
• Vessel utilisation of 0%
• Atlantic Guardian stacked for the entire quarter
• EBITDA
• USD negative 0.2 million
• Adjusted EBITDA* of negative USD 1.2 million

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

-2 -1

-5

0

5

10

Operational costs

Quarterly operational cost base* development (USD million)

Comments

• Operational costs base in Q3 20 of USD 3.3 million
• USD 6.3 million lower than Q2 20
  • Atlantic Guardian cold stacked the entire quarter at reduced rate

• Q4 operational cost base expected to be under USD 3.0 million target

*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

Decrease in free cash in Q3 2020

Quarterly free cash development (USD million) Comments

• Net decrease in free cash of USD 5.5 million to USD 4.3 million
• Trade receivables decreased by USD 0.2 million to USD 6.3 million
  • Continued payment delays under the completed Pemex contract
• Adjusted EBITDA of negative USD 1.2 million

Summary

• Cost reduction program on schedule and on target
• The prediction strength of the CSEM method further documented with the Mist well
• Significant multi-client data coverage in the Hoop area of the Barents Sea (proposed included in Norway's 25th licensing round)