Electromagnetic Geoservices ASA

Investor Presentation • Feb 11, 2016

FOURTH QUARTER 2015 RESULTS.

Oslo, 11 February 2016CEO Christiaan Vermeijden, CFO Hege A. Veiseth

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 andstatements 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 couldcause 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. AlthoughElectromagnetic Geoservices ASA believes that its expectations and the information in this Report were based uponreasonable 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.

Fourth quarter 2015 highlights

• •Completion of contract extension in Malaysia worth USD 7 million
• •New contract signed in India USD 15 million
• •Proof Of Concept study completed in Mexico
• •Cost reduction measures ongoing
• •Financial restructuring completed
• • New management
• -New CEO and CFO appointed

Financial review

Fourth quarter key financials

• •Revenues of USD 20.5 million
• • Operational costs of USD 28.5 million, affected by~USD 5.4 million in special items
• •Impairment of multi-client library of USD 8.6 million
• •

Charter hire, fuel and crew expensesEmployee expenses Other operational expenses

Cost reduction program progressing as planned

• • Cost reducing measures implemented to bring cost base in line with expected activity level, with keyelements
• Freeze on new hires, consultants and agents
• Reduction of fleet capacity from 4 to 2 vessels
• Reduction in headcount
• Renegotiated terms with suppliers/ sub-contractors
• CAPEX reduced by 62% vs guiding for FY2015, limited to only key R&D projects
• • Measures expected to have full effect from the second quarter 2016
• • Currently ahead of target to cut cost to well belowUSD 100 million

Improved financial position following the equity issue

Operational

• Financial restructuring provides EMGS with improved financial flexibility to weather the current downturn

Financial

• •New equity of USD 32 million, of which
• • USD 8 million used for partial bond buy-back @ 80% of par, yielding a financial gain of USD 2 million
• •Bond loan reduced to NOK 270 million (USD 31 million)
• •Bond maturity extended by 36 months
• •Cash position strengthened

Note: (1) All figures have been converted from NOK using the official NOK/USD rate from Norges Bank as of 29 October 2015 of 8.57

Change in multi-client amortisation due to amendment to IAS 38

• •Amendment to IAS 38, effective from 1 January 2016
• • Revenue-based method of amortisation of intangible assets is not considered appropriate
• • EMGS has changed its principle and aligned to the method used by the seismic companies:
• During work in progress (WIP), amortisation continue to be based on total cost versus forecasted total revenues of the project
• After completion, a straight-line amortisation is applied
• Useful life is set to 4 years

Market and outlook

Current market situation

• •Contract revenues have declined in 2015
• • Visibility even more challenging as oil companies postpone decisions closer to start-up of surveys
• •Adoption remains high in Mexico, India, Malaysia and Norway

Multi-client key figures by vintage

Sales Revenue share Investment Cash ContributionNBV

• • Multi-client sales accounts for an increasing share of the total revenues, with 45% in 2015 vs 31% in 2014
• • 2008-2012 vintages performing very well, where the Barents Sea library provides an exceptional good return on investment
• • 2013-2015 vintages should provide for a healthy revenue stream in 2016 and going forward
• • EMGS will continue to invest in expanding its library, yielding good revenue potential the next years

Summary and outlook

• •Cost level reduced to be in line with expected activity
• •Financial restructuring completed
• • Market outlook challenging, characterised by high uncertainty
• • Interest in EM technology healthy, challenged by reduced budgets
• • EMGS expects to operate two vessels in 2016, with an option to include a third vessel if certain prospects materialise
• -Keep one vessel in Asia througout 2016
• -One vessel will operate in Europe and the Americas

Questions?

Appendix

Income statement

	Q4 20 15	Q4 20 14	201 5	201 4
( 0) US D 1 00	aud ited Un	aud ited Un	aud ited Un	dit ed Au
Op tin era g re ven ues
Con ale tra ct s s	9 0 01	25 477	45 008	137 22 2
lti-c lien fun din Mu t p re- g	-	5 1 52	3 5 46	13 140
lti-c lien t la ale Mu te s s	11 498	21 884	32 586	47 661
al r Tot eve nue s	20 499	52 513	81 140	198 02 3
Op tin era g e xpe nse s
Cha r hi fue l an d c rte re, rew ex pen ses	11 807	15 752	32 402	61 300
loy Em p ee exp ens es	11 227	12 744	44 826	55 172
nd ord De cia tio ina rtis atio pre n a ry a mo n	2 7 05	3 9 06	12 679	16 291
lti-c lien Mu rtis atio t a mo n	4 1 56	4 9 72	8 6 31	12 595
of Imp airm lon ent g-t set erm as s	8 5 69	-	31 344	2 0 03
Oth atin er o per g e xpe nse s	5 4 61	7 3 93	20 607	22 534
al o ati Tot per ng exp ens es	43 925	44 767	150 48 9	169 89 5
it/ tin rof ( los s) Op era g p	( ) 23 426	7 7 46	( ) 69 349	28 128
ial nd
Fin inc anc om e a exp ens es
Inte t in res com e	28	36	352	687
Inte t ex res pen se	( 14) 1 0	( 82) 1 1	( 55) 4 0	( 26) 5 9
Cha fair lue of hts in sio n ri nge va con ver g f fi	-	-	-	( ) 210
ins/ ( los ) o l as nd liab iliti Net cia set ga ses nan s a es	795	-	( 06) 4 1	416
fo e/ ( los s) Net reig inc n c urr enc y om t fi l ite	1 5 26	6 5 78	4 1 55	8 1 21
Ne cia nan ms	1 3 35	5 4 32	( 54) 3 6	3 0 88
e/ ( los s) bef inc Inc e ta om ore om xes	( ) 22 091	13 178	( ) 73 003	31 216
Inc e ta om x e xpe nse	2 0 27	58	3 7 12	5 3 30
e/ ( s) for Inc los th eri od om e p	( ) 24 118	13 120	( ) 76 715	25 886

Financial position

( 0) US D 1 00	31 De ber cem 201 5	31 De ber cem 201 4
	Un aud ited	Au dit ed
AS SET S
No ent set n-c urr as s
odw ill Go	-	14 422
Def ed tax set err as	-	3 0 08
lti-c lien t li bra Mu ry	42 267	33 758
Oth er i ible nta set ng as s	3 7 03	3 2 20
lan d e Pro ipm ty, t an ent per p qu	16 773	19 247
der Ass tio ets nst un co ruc n	26 566	31 164
ial Fin ets anc ass	1 3 87	4 7 66
al n Tot t as set on- cur ren s	90 696	109 58 5
Cur t as set ren s
fue l, a nch d b Spa erie art att re p s, ors an s	11 754	14 906
de eiv abl Tra rec es	18 580	65 531
Oth iva ble er r ece s	5 6 65	14 730
h a nd h e len Cas iva ts cas qu	31 749	25 213
ted sh Res tric ca	6 6 80	5 3 19
al c Tot ent set urr as s	428 74	125 69 9
al a Tot ts sse	165 12 4	235 28 4

( 0) US D 1 00	31 De ber cem 201 5	31 De ber cem 201 4
	Un aud ited	Au dit ed
EQ UIT Y
Cap ital d r trib ble uity ho lde s at uta to an ese rve eq rs
Sha ital har d o the id-i ium ity re c ap , s e p rem an r pa n e qu	319 03 8	287 39 8
Oth er r ese rve s	( 16) 6 4	( 27) 3 2
ed Ret ain nin ear gs	( 2) 234 65	( 7) 157 93
Tot al e ity qu	77 970	126 23 4
S LIA BIL ITIE
lia bili tie No ent n-c urr s
Pro vis ion s	17 371	15 299
Bor ing row s	30 848	46 859
al n t lia bili Tot tie on- cur ren s	48 219	62 158
Cur t lia bili tie ren s
Tra de abl pay es	10 439	13 362
Cur x li abi lies t ta ren	5 2 57	4 5 73
Oth hor liab iliti t te er s rm es	16 243	27 270
ial liab iliti Fin anc es	6 3 26	-
Bor ing row s	670	1 6 87
al c lia bili Tot tie ent urr s	38 935	46 892
al l iab iliti Tot es	87 154	109 05 0
al e ity and lia bili tie Tot qu s	165 12 4	235 28 4

Largest shareholders as of 8 February

	Sh ho lde are r	Sh are s	Ho ldi ng
1	SIE M INV EST ME NT S IN C.	31 3, 76 9, 92 7	23 .92
2	PE RES TR OIK A A S	27 9, 75 4, 25 6	21 .33
3	MO RG AN ST AN LEY & CO . LL C	180 31 7, 90 8 ,	13 .75
4	OD IN EN ERG I	66, 87 6, 62 2	5.1 0
5	OD IN NO RG E	53, 30 7, 96 3	4.0 6
6	STA TO IL P EN SJO N	30, 00 0, 09 8	2.2 9
7	KK ELA GE T H OL DIN G A S BÆ	25, 05 0, 00 0	1.9 1
8	SPO RTS MA GA SIN ET AS	17, 58 6, 68 3	1.3 4
9	NH O - P6 65A K	16, 179 31 9 ,	1.2 3
10	KR IST IAN FA LN ES AS	16, 00 0, 00 0	1.2 2
11	R ( II) DN B N AV IGA TO	13, 71 7, 25 3	1.0 5
12	J& J IN VE ST AS ME NT	10, 70 0, 00 0	0.8 2
13	NO RT HE RN TR US T G SL CL AC	9, 84 9, 78 0	0.7 5
14	STA TO IL F OR SIK RIN G A .S	7, 33 0, 56 7	0.5 6
15	CO LO R G RO UP AS	6, 56 6, 52 0	0.5 0
16	FLA TH OL ME N A S	5, 48 0, 00 0	0.4 2
17	CA RN EG IE A S E GE NH AN DE LSK ON TO	5, 28 8, 34 6	0.4 0
18	TIG ERS TA DE N A S	5, 00 0, 00 0	0.3 8
19	FA LN ES OL AV KR IST IAN	4, 80 0, 00 0	0.3 7
20	CIP I LA MP UC ITS SW ED BA NK SM B	4, 59 6, 56 4	0.3 5

Vessel charters

	ha las B O A T sa	la B O A Ga te a	lan ic d ia A Gu t t ar n	de E M Le a r
ha F irm C te r r	l 1 Ap i 2 0 1 7 r	l d ba k l De ive to re c v es se d- in i Ja ow ne r m nu ar y	be 1 8 De 2 0 1 7 ce m r	be 8 De 2 0 1 6 ce m r
Cu t s ta tu rre n s	In io As ia t op er a n,		d le I	d La i up
l o Ve ss e w ne r	f fs ho B O A O re	f fs ho B O A O re	h h No Se S ip in t r a p g	Se tra a ns
Ra te s	( ) lex i b le fo he i F te ra s r w n ( ) d le d in io i i i t op er a n, an ( ) i i i la i d up		d F ixe	( ) lex i b le fo he i F te ra s r w n ( ) d le d in io i i i t op er a n, an ( ) i i i la i d up