Electromagnetic Geoservices ASA

Investor Presentation • May 8, 2014

ELECTROMAGNETIC GEOSERVICES ASA FIRST QUARTER 2014 RESULTS

CEO, Roar BekkerCFO, Svein Knudsen 8 May 2014

DISCLAIMER

This quarterly presentation includes and is based, inter alia, on forward-looking information andstatements that are subject to risks and uncertainties that could cause actual results to differ. Suchforward-looking information and statements are based on current expectations, estimates andprojections about global economic conditions, the economic conditions of the regions and industriesthat are major markets for Electromagnetic Geoservices ASA (EMGS) and its subsidiaries. Theseexpectations, estimates and projections are generally identifiable by statements containing words suchas "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 expectationsand the information in this Report were based upon reasonable assumptions at the time when theywere made, it can give no assurance that those expectations will be achieved or that the actual resultswill be as set out in this Report. Electromagnetic Geoservices ASA nor any other company within theEMGS 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 GeoservicesASA, 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 forwardlooking information or statements in the Report.

HIGHLIGHTS FIRST QUARTER 2014

Operational highlights

• •Two vessels operating for Pemex
• •Contract in Morocco for new customer
• • North Energy strategic agreement
• –Barents Sea multi-client library sale
• Two contracts in the North Sea
• • Commenced fully funded multi-client campaign US Gulf of Mexico

Financial highlights

• •Record quarterly revenues of USD 61.3 million
• •EBITDA of USD 20.4 million

Outlook and guidance

• •2014 revenues of more than USD 200 million
• •Long-term outlook intact

FINANCIAL HIGHLIGHTS

Key figures Q1

• •Revenues of USD 61.3 million
• •EBITDA of USD 20.4 million
• •Net income of USD 8.2 million

Multi-client Q1

• •Sales of USD 14.9 million
• •Amortisation of USD 3.3 million
• •Investments of USD 3.2 million
• •Net book value of USD 28.0 million

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14

-5

VESSEL UTILISATION

• • Fleet utilisation at 66%
• Contract: 56%
• Multi-client: 10%
• • BOA Thalassa (27%)
• Completed contract in Australia
• Commenced contract in Morocco
• • BOA Galatea (91%)
• Operating for Pemex
• • Atlantic Guardian (83%)
• Operating for Pemex until 22 March
• Transit to Norway
• • EM Leader (63%)
• Chartered from 8 February
• Commenced Daybreak project in US Gulf of Mexico on 22 February

CAPITAL STRUCTURE

Balance sheet as at 31.03.14 (USD million)

Cash and working capital

• • Cash at USD 48.1 million, down from USD 56.5 million at 31 December
• • Trade receivables increased by USD 10.2 million to USD 41.8 million
• • Other receivables increased by USD 11.8 million due to North Energy convertible bond
• •Trade payables at USD 16.2 million

STRATEGIC AGREEMENT WITH NORTH ENERGY

Multi-client agreement NOK 100 million (USD 16.1 million)

• • Sale of Barents Sea EM data library – payment in convertible bond
• Booked value of conversion right of USD 2.5 million at 31 March
• Financial gain of USD 1.6 million booked in Q1
• If fully converted, EMGS will be entitled to 16.1% of the shares in North Energy ASA
• •Sale of consulting services, started in March, payment in cash

New contracts in North Sea after close of the quarter

• •North Energy executing on their strategy to include EM in the exploration workflow
• •Two separate contracts, one worth USD 3.3 million (PL509s) and one worth USD 1.7 million

EMGS participated in North Energy's private placement

• •EMGS participated with NOK 20 million, resulting in 4.46% of shares
• •Share price at transaction of NOK 4.00 per share, increased to NOK 4.8 per 31 March

MEXICO UPDATE

Status on Pemex contract

• •Value of USD 100 million
• •Est. USD 36 million in backlog at 31 March
• •Possible extensions of 2 x USD 25 million
• • Pursuing new opportunities for shallow water and structural imaging

Opening of the Mexican continental shelf

• •CNH to manage licensing rounds
• •Round Zero - Pemex expected to retain important areas
• •Annual license rounds, first indicated Aug 2015

Exciting opportunities

• •Expect significant increase in activity in region
• •New players in areas where EM has a proven track-record
• •Strong position in Mexico based on past performance

Experience from Mexican shelf positive for multi-client project in US GoM

MULTI-CLIENT PROJECT IN THE US GULF OF MEXICO

Daybreak project

• •EMGS' first major MC project in the US
• •Extention of the Perdido trend
• • First phase of 80 blocks in 2014
• Strong industry funding proves interest
• Access to 2D seismic from TGS
• Lease sale Fall 2014
• • Deliveries include both CSEM and MT, aiding seismic imaging

US Gulf of Mexico important multi-client basin

• •Exposure to a wide range of companies
• •Large future potential, annual lease rounds

EAST CANADA MULTI-CLIENT PROGRAM

• • Expect to launch a 13,500 km² multi-year, multi-client campaign in July 2014
• •4 months, ~4,000 km2 in 2014
• • Currently soliciting additional partners for the program
• •Large virgin territories
• • Competitive advantage to subscribers exploring for the next high impact discovery

EXCITING OPPORTUNITIES IN URUGUAY

• • New agreement with ANCAP - the regulating authority for oil and gas exploration
• •Licensing of EM count as working units
• • Strengthens potential for use of EM over both licensed and open acerage
• •New bid round in 2015

VESSEL SCHEDULE

Expected vessel schedule as of 7 May 2014

MARKET UPDATE

Contract opportunities

• • Contract negotiations in Norway, Brazil, Angola, India and Southeast Asia
• •Opportunity in Uruguay strengthened
• •Targeting to close 1-2 major contracts in 2014
• •Continued focus on large NOC contracts
• •New energy reform in Mexico

Expanding multi-client library

• • Good industry interest for projects in Barents Sea, US GoM and Canada
• • Creating solid foundation for stable and long-termmulti-client investments
• •Collaboration with seismic partners

Sales and marketing

• •Sales team increase by almost 50%
• •Tailored approach to strategic accounts
• • Positive developments in important customer relations

SUMMARY AND OUTLOOK

Best quarterly revenue so far

• •Two vessels working for Pemex
• •Contracts in Australia, Morocco and Norway
• •Strategic agreement with North Energy
• •Strong support for multi-client investment US GoM
• •Important partner agreements with regulating authorities

Outlook

• • Q2 expected softer due to steaming, yard stay and multiclient investments
• •Promising contract opportunities for 2H
• •Full year 2014 revenue guiding of >USD 200 million intact

VESSEL CHARTERS AND YARD STAYS

	O B A T ha las sa	O Ga B A la tea	Gu At lan ic d ian t ar	E M Le de a r	E M Ex p res s
F irm C ha rte r	De be 2 0 1 5 ce m r	Ju ly 2 0 1 5	Ma h 1 2 0 1 6 rc	C ha i l Ju rte t 8 r un ne 2 0 1 4	S d by in Be tan rg en E M G S. t n t to a o c os
Op ion t s	1 x 1 y ea r	2 x 1 y ea r	3 x 1 y ea r	Op ion l 1-, 3-, 6- t a or h c ha 1 2-m t rte on rs i l 9 Ma h 2 0 1 t 5 un rc	Op ion l 3-, 6- t a or h c ha 1 2-m t rte on rs i l 9 Ma 2 0 1 4. t un y Ve l o ha ss e wn er s he ion t t to op ina he ter te t m nt. ag ree me
Ya d s tay r s		1 4 da in Q 2 / Q 3 y s ~ 2 0 1 4: 5 y las ea r c s l ren ew a	ks in Q 4 5 w ee ~ 2 0 1 4		No l ica b le t a p p

CONSOLIDATED INCOME STATEMENT

US D m illio n	Q U A R T E	G R E N D I N		G Y E A R E N D I N
	3 1. 0 3. 2 0 1 4	3 1. 0 3. 2 0 1 3	3 1. 1 2. 2 0 1 3	3 1. 1 2. 2 0 1 2
Co les ntr act sa	46 .4	20 .1	11 1.3	176 .1
Mu lti-c lien ale t s s	14 .9	11 .6	33 .3	24 .7
To tal re ve nu es	61 .3	31 .7	14 4.6	20 0.8
Ch fue art hir l an d c er e, rew ex pe nse s	20 .6	10 .3	51 .2	68 .8
Em loy p ee ex pe nse s	15 .7	14 .8	54 .3	55 .1
Ot he tin r op era g ex pe nse s	4.6	5.4	21 .5	21 .1
EB ITD A	20 .4	1.3	17 .5	55 .9
De cia tio nd ord ina isa tio ort pre n a ry am n	4.3	4.6	17 .5	13 .9
Mu lti-c lien rtis atio t a mo n	3.3	2.8	12 .3	12 .7
EB IT	12 .8	( 6.1 )	( 12 .3 )	29 .2
Ne t fi nci al item na s	( ) 1.1	4.9	( ) 0.9	( .3) 11
Pro fit / ( los s) be for e t ax	11 .7	( ) 1.2	( .2) 13	17 .9
Inc tax om e ex pe nse	3.4	1.3	1.9	6.0
rof it / ( s) Ne t p los	8.2	( ) 2.5	( .1) 15	11 .9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

US D m illio n		QU AR TE R E ND ING
	31.	03. 20 14	31. 03. 20 13
AS SE TS		14. 4	14. 2
Go odw ill		1.9	-
De fer red tax set as		28. 0	19. 8
Mu lti-c lien libr t ary		2.9	4.6
Inta ible set ng as s		24. 3	29. 0
Pro ty, lan t an d e ipm ent per p qu		20. 9	14. 9
Ass der tion ets nst un co ruc		4.0	-
To tal ent set no n-c urr as s		96. 4	82. 7
Tra de eiv abl rec es		41. 8	42. 5
Oth ent set er c urr as s		41. 9	32. 6
Ca sh and sh iva len ts ca equ		47. 1	40. 3
Re stri cte d c ash		1.0	1.1
To tal nt a ts cu rre sse		131 .8	116 .5
TO TA L A SS ET S		228 .2	199 .2
EQ UIT Y A ND LIA BIL ITIE S
To tal uity eq		112 .1	112 .1
To tal liab iliti ent no n-c urr es		69. 4	50
Tra de abl pay es		16. 2	15. 5
Cu liab ility nt t rre ax		5.5	1.4
Oth hor liab ilitie t te er s rm s		21. 6	19. 1
Bo ing rrow s		3.5	1.1
To tal nt liab iliti cu rre es		46. 7	37. 1
QU IES TO TA L E ITY AN D L IAB ILIT		228 .2	199 .2

CONSOLIDATED STATEMENT OF CASH FLOW

US D m illio n	P E R I O D E N D I N G
	3 1. 0 3. 2 0 1 4	3 1. 0 3. 2 0 1 3
Ne h f low fro tin tiv itie t c as m op era g ac s	( 0.7 )	15 .7
Ne h f low fro inv tin tiv itie t c as m es g ac s	( 9.7 )	( 13 .3 )
Ne h f low fro fin cia l a cti vit ies t c as m an	2.2	( ) 1.4
Ne t in in sh cre as e ca	( 8.2 )	1.0

LARGEST SHAREHOLDERS (AS OF 6 MAY)

	S H A R E H O L D E R	S H A R E S	H O L D I N G
1	O G S C O S / S C O C Q M R A N T A N L E Y & A M L I E N T E U I	1 8 0 3 3 3 3 6	9. 0 3 %
2	S G G O K A E N L B A L	1 0 1 2 4 1 1 2	5. 0 7 %
3	F I D E L I T Y F U N D S	8 8 5 3 3 0 7	4. 4 3 %
4	O D I N O F F S H O R E	8 4 7 3 6 3 1	4. 2 4 %
5	V E R D I P A P I R F O N D E T D N B	4 3 8 3 7 5 5	3. 8 % 7
6	C L E A R S T R E A M B A N K I N G	6 1 6 8 7 5 7	3. 0 9 %
7	O D I N N O R G E	6 1 6 0 9 9 0	3. 0 8 %
8	S G S K A E N V E K T	5 0 2 9 2 0 7	2. 5 2 %
9	O V E R D I P A P I R F N D E T D N B	4 9 5 6 8 0 4	2. 4 8 %
10	J. P. M O R G A N C H A S E B A A / C U S R E S I D E N T N O N	4 6 6 9 7 2 0	2. 3 4 %
11	M O M E N T U M I N V E S T M E N T S	4 6 5 8 0 2 7	2. 3 3 %
12	S T A T O I L P E N S J O N C / O J P M O R G A N C H A S E	3 8 3 6 7 5 5	1. 8 9 %
13	S K A G E N G L O B A L I I	3 3 2 3 3 3 5	1. 6 6 %
14	S U N D T A S	3 0 2 6 8 3 3	1. 5 2 %
15	J P M O R G A N C ha Ba k N O R D E A R E: N O N- T R E A T Y se n	2 8 6 4 0 7 0	1. 4 3 %