Q3 2020 Financial Results

29 October 2020

CEO CFO

Forward-looking statements

All statements in this presentation other than statements of historical fact, are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.

Highlights

Q3 2020 net revenues of USD 80.6 million
- Late sales USD 60.7 million
- Pre-funding USD 17.4 million
Costs and capex re-set to reflect challenging market conditions
- Q3 2020 Personnel and Other operational costs down 64% y/y
- Forward run-rate reduced ~40% compared to 2019 pro-forma
Dividend maintained at USD 0.125 per share
- Supported by strong balance sheet and cash generation capabilities
Weak market conditions expected to continue into 2021
- COVID-19 continues to cause uncertainty in oil market

Operational Highlights

Q3 2020 Operational Highlights 3D OPERATIONS OBN OPERATIONS FULL TENSION GRAV

Key Projects in Q3 2020

ENGAGEMENT – U.S. GOM

Project completed in September 2020
Highly pre-funded project following the very successful Amendment Phase 1 project in Mississippi Canyon in 2019
Engagement's combined OBN data and full-waveform inversion data, positions TGS as the leading player in the region with an unmatched data offering

AM20 3D – Offshore Norway

Completed acquisition of Atlantic Margin OBN survey
The survey was designed to enhance efficiencies and combine OBN data with 3D data to enhance imaging
Benefits include cost-efficient OBN acquisition solutions to enhance geological understanding and modeling within key license blocks

eFTG SURVEY – Onshore MENA

The Enhanced Full Tensor Gravity Gradiometry (eFTG) technology used for data acquisition, is being applied for the first time in the Middle East and North Africa (MENA)
The first-ever multi-year survey covers 120,000 km2 to provide high-quality data both onshore and offshore in preparation for upcoming bid rounds

Key R&D Achievements

OBN Tests

11-day, industry supported, test of two different low frequency source technologies, as part of our continued investment in OBN projects in the US GOM.
Deployment of sparse node concept in connection with the AM20 survey in Norway to enhance efficiencies and combine the recorded OBN data with conventional 3D streamer data to improve imaging.
The tests are critical in building improved velocity models with FWI and optimizing and expanding future applications.

ARLAS Cross Section Tool

An evolution from the TGS ARLAS engine, this first of its kind tool allows users to generate an arbitrary geologic cross-section.
It also allows users to gain unique subsurface insights by combining ML-based well log prediction with powerful visualization.
Despite the challenges of the pandemic, this was a successful collaborative effort from several teams.

Augmented Quality Assurance (AQuA) Toolkit

AQuA enables systematic statistics and map-based visualization of multiple seismic quality attributes.
It also improves efficiency and quality control for imaging projects:
- Reduces time to QC data
- Systematically checks quality improvement at each step and throughout the life of the project
- No quality "surprises" at the conclusion of the project

Recent ESG Highlights

Increasing recognition

• Received an A- rating in The Governance Group's annual Top 100 ESG ranking for OSE listed companies

Improving emission measuring

Established systems for accurately measuring environmental footprint of all surveys
Improved tracking of internally generated emissions

Boosted supply chain oversight

Implemented new Human Rights policy and Supplier Code of Conduct
Tighter follow up of vendors on ESG factors

Visit tgs.com/about-us/sustainability to learn more about out commitment to Sustainability.

Growing Interest for Alternative Uses of TGS Products

Increased interest for TGS data and capabilities for non-Oil & Gas purposes
Ongoing projects and discussions related to:
- Carbon Capture and Storage (CCS)
- Wind energy
- Geothermal energy
- Deep Sea Minerals (DSM)
Several product development projects directed towards CCS, renewables and DSM initiated

	TGS / Energy Starts With Us Prasa Releases Banda arc	TGS partners IPGP Marine Geosciences Group to assess earthquake and tsunami hazards in
TGS J Energy Starts With Us Props Releaser	TGS Makes First Sale of Multi-Client Seismic Data for use in Carbon Capture Project	at it is working with Institut de Physique du Giabe de Paris earthquake and Isunami hazards in Banda arc and gher education establishment - is licensing some of TGS's reflection and bathymatry data to map active faults and ris to l n, along with an estimation of the total tailures along these faults and related stumps on steep
Energy Starts With Us Completes Carbon Capture Storage ssment Atlas in British Columbia, Canada sada 102 March 2020) - TD5, a leading provider of multi-client penscience data for migloration & E&P) companies, today announced the completion of a Declogical Carbon Storage Allas for Brilish seatings a major oil and gas company.	ed that it has completed the sale of one of its seisimic data.sets a carbon capture, utilization and storage (CCUS) Initiativo used to verily the suitability for stocago of CO2 in offshora hern Narth Sea. by OGCI Climato Invastmants, with direct project support trom II, Equinor, Occidental Pritrolaum, Shall, and Total. DOCI. Ip with the UK Government on a supportive policy Iramework to technologies globally. To be able to remove carbon distribe and store them od into the almosphere - means we need to be 100 percent reciment with TGS allows us to carefully analyze the geology of justain our CCUS eparations for millennia to come." d Russis at TOS, said. "The use of seismic data from TGS in the portant initiative for us as it marks the start of what could la recognize the need to actively angage in projects that I fasside is a recognition that our data can and will be used in	reat eacheulables in the racent past. There is every reason for in the region that are unknown until they occur, much as ophic earthquake. Greater in-depth analysis through tems and major faults can only help to paint a more e region. () seismic irnages and multibeam data from TD5 will be used wry much commercially focused, when our data can be used. land our support as part of our environmental, secial and . Tectonics and Marine Deohazand project at IPGP, added, years on the anolyses of seismic reflection data from of this activity further to the aust and north. We have interpreting these data. We are confident that this project he region that could eventually lead to improved early nd north-quest Australia region."
of the study was to provide the most up-to-date understanding of geological carbon storage locations, offshore, thesughaul the province of British Columbia. Through collaboration with its partner Canadian miled ICDL), TDS leveraged its world-class basin evaluation expertise, subsurface data literary, and newladge and experience through working in Brillish Columbia, to create a framework fer carbon storage and atlas for potential sterage locations. resa, EVP of Drahore & Well Data at TOS, said. "TOS has a goal fo contribute to a more sustainable econtry project is a great example of how 705 data and insight enabled its customers so exaluate cartes atorage s which altimately loads to reduction of greenheuse gas amissions. I am plaased to see how TGS is able to I strategy in a practical, setting."	client geoscience data to pil and gas Exploration and ve global goodhysical and goological defa libraries that include inal well logs, production data and directional surveys, TBS riterpratation products, and data integration solutions.
s maili-client geoscience data to oil and gas Exploration companies worldwide. In addition global geophysical and geological data libraries that include mull-client seismic data, magnelic and digital well logs, production data and directional surveys, TGS aiss offers advanced processing and vices, interpretation products, and data integration salutions. this in this press release other than statements of historical fact are forward-looking statements, which are number of risks, uncertainties and assumptions that are difficult to predict, and are based upon s as to hature events that may not prove accurate. These factors include TGS' reliance on a cyclical industry il customers, TGS ability to continue to expand markets for licenting of data, and TGS' abliky to acquire data product at costs commensurate with profitability. Actual results may differ materially from these prejected in the forward-lacking stataments. TOS undertakes no respensibility or obligation to update of d-looking statuments for any reason. lormation, visit Tos.com or contact:	Borage [CCL/S] project, hased in Teesside in the North East of undled, world class partners, it aims to decarbanize a clusher hyear, the Project plans to capture up to six million tonnes of ty use of up to two million homes in the UK.
send, Director, Brand Marketing, Tel. +1 832-667-4757, Email: jackyn.townsendligs.com
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Financials

IFRS 15

The accounting standard IFRS 15 regarding revenue recognition implemented from 1 January 2018
Implications for TGS
- Recognition of revenues related to multi-client projects postponed until projects are delivered to customers
- No amortization until completion of the project
- No impact on sales from the library of completed surveys
Internal reporting
- TGS will continue to use the previous percentage-of-completion-method for internal segment and management reporting (referred to as Segment Reporting)
- Provides the best picture of the performance and value creation of the business
External reporting
- Two sets of accounts: Segment Reporting and IFRS Reporting
- Main focus in external communication will be on Segment Reporting

Net Revenues

Pro-forma (incl. Spectrum)

Operating Expenses, EBIT, MC Investments

Pro-forma (incl. Spectrum)

2. Earnings before interest and taxes excluding reported non-recurring items

Income Statement

Pro-forma (incl. Spectrum)

(MUSD)			Q3 2020 Q3 2019	Change
Net operating revenues		30.6	276.7	-71%
Cost of goods sold		1.0	0.1	762%
Personnel cost		12.2	33.2	-63%
Other operational costs		5.1	14.5	-65%
Cost of stock options		0.0	0.0	n/a
EBITDA	77%	62.2	228.9	-73%
Amortization of multi-client library		86.1	130.9	-34%
Depreciation		4.1	4.2	-2%
Operating result	-35%	-27.9	93.9	-130%
Financial income		-0.2	0.9	-123%
Financial expenses		-1.0	-1.0	2%
Exchange gains/losses		-2.2	-2.8	-19%
Result before taxes	-39%	-31.4	91.0	n/a
Tax cost	18%	-5.6	18.2	n/a
Net income	-32%	-25.8	72.8	n/a
EPS (USD)		-0.19	0.58
EPS fully diluted (USD)		-0.19	0.57

Balance Sheet

Balance sheet		Q3 2020 Q3 2019	Change
Goodwill	288.4	288.4	0%
Multi-client library	763.2	888.5	-14%
Deferred tax asset	44.9	20.2	123%
Other non-current assets	108.9	82.3	32%
Total non-current assets	1,205.4	1,279.4	-6%
Cash and cash equivalents	179.8	265.5	-32%
Other current assets	451.9	584.5	-23%
Total current assets	631.7	850.0	-26%
TOTAL ASSETS	1,837.1	2,129.3	-14%

Total equity	1,422.3	1,618.8	-12%
Deferred taxes	43.8	55.4	-21%
Non-current liabilities	50.9	32.3	58%
Total non-current liabilities	94.7	87.7	8%
Taxes payable, withheld payroll tax, social security	22.9	53.7	-57%
Other current liabilities	297.2	369.1	-19%
Total current liabilities	320.1	422.8	-24%
TOTAL EQUITY AND LIABILITIES	1,837.1	2,129.3	-14%

Cash Flow Statement

Pro-forma (incl. Spectrum)

(MUSD)	Q3 2020	Q3 2019	Change
Received payments	109.4	131.1	-16 %
Payments for operational expenses	-35.0	-48.8	-28 %
Paid taxes	-12.5	-11.8	6%
Net cash flow from operating activities	62.0	70.5	-12 %
Investment in tangible fixed assets	-4.1	-6.4	-36 %
Investments in multi-client library	-57.5	-106.1	-46 %
Investments through mergers and acquisitions	0.0	14.6	-100 %
Interest income	0.1	-0.1	n/a
Net Cash Flow from investing activities	-61.5	-98.0	-37 %
Net change in loans	0.0	-16.2	-100 %
Interest expense	-1.0	0.3	-478 %
Payment of dividends	-16.2	-30.1	-46 %
Purchase of own shares	0.0	-11.6	n/a
Net cash flow from financing activities	-17.2	-57.7	-70 %
Net unrealized currency gains/(losses)	-2.0	-3.6	n/a
Net change in cash and cash equivalents	-18.7	-88.8	-79 %

Dividends

The Board has resolved to maintain the dividend of USD 0.125 per share in Q4 2020
Ex date 5 November 2020 payment date 19 November 2020
Quarterly dividends defined in USD from 2016. Annual dividends defined in NOK prior to 2016, converted to USD with the FX rate at ex-dividend dates

Outlook

COVID Continues to Cause Uncertainty in the Oil Market

The worsened COVID-19 situation seen in many countries has brought forecasts for oil demand down
Global production expected to gradually recover in line with OPEC+ deal
A balanced market expected for 2021 but inventory levels are high

Business Model with Counter-Cyclical Qualities

Lean and adjustable cost base
Asset-light few capital commitments
Counter-cyclical investment philosophy unit cost of investments correlated with cycles
Track-record of creating robust cash flow under all cyclical conditions
- Allows for continued dividend payments even during down-cycles

Further strengthening of cash flow capacity

Last 12 months as per 30 September 2020

1. Personnel costs + Other operational costs
1. Lease expenses booked as depreciation and interest expense in accordance with IFRS 16
1. Preliminary indication for 2021 run rate, subject to several risks and uncertainties
Costs and capex re-set to reflect market conditions
Significant cost cutting measures implemented during 2020 – full impact from Q4
Cash opex run rate:
- ~40% lower than 2019 pro-forma
- ~30% lower LTM as of Q3 20

Preliminary 2021 Investment Considerations

Counter-cyclical investment strategy planning for upholding investment data volumes through the downturn
Monetary value of multi-client investments likely to be reduced in 2021
- Lower vessel day rates leading to lower unit cost
- More investments through risk share arrangements
- More focused investment strategy

2020 Project Schedule

Backlog

1. Sales committed by customers but not yet recognized in the Segment Reporting accounts

Summary

Q3 2020 net revenues of USD 80.6 million
- Late sales USD 60.7 million
- Pre-funding USD 17.4 million
Q3 2020 Costs and capex re-set to reflect challenging market conditions
- Q3 2020 Personnel and Other operational costs down 64% y/y
- Forward run-rate reduced ~40% compared to 2019 pro-forma
Dividend maintained at USD 0.125 per share
- Supported by strong balance sheet and cash generation capabilities
Weak market conditions expected to continue into 2021
- COVID-19 continues to cause uncertainty in oil market

Appendix

Income Statement IFRS

(MUSD)		Q3 2020	Q3 2019	Change
Net operating revenues		58.2	162.1	-64%
Cost of goods sold		1.0	0.1	762%
Personnel cost		12.2	28.7	-57%
Other operational costs		5.1	10.4	-51%
EBITDA	69%	39.9	122.9	-68%
Amortization of multi-client library		125.5	63.8	97%
Depreciation		4.1	3.8	7%
Operating result	-154%	-89.7	55.2	-262%
Financial income		0.1	1.1	-92%
Financial expenses		-1.3	-0.8	53%
Exchange gains/losses		-2.2	-1.4	59%
Result before taxes	-160%	-93.1	54.1	-272%
Tax cost	24%	-21.9	13.8	-259%
Net income	-122%	-71.2	40.3	-277%
EPS (USD)		-0.61	0.36	-267%
EPS fully diluted (USD)		-0.60	0.36	-266%

Balance Sheet IFRS

Balance sheet	Q3 2020	03 2019	Change
Goodwill	288.4	288.4	0%
Multi-client library	1,062.0	1,124.7	-6%
Deferred tax asset	106.3	20.6	416%
Other non-current assets	108.9	82.3	32%
Total non-current assets	1,565.6	1,516.0	3%
Cash and cash equivalents	179.8	265.5	-32%
Other current assets	346.0	574.8	-40%
Total current assets	525.8	840.2	-37%
TOTAL ASSETS	2,091.3	2,356.2	-11%
Total equity	1,261.2	1,520.0	-17%
Deferred taxes	39.2	40.1	-2%
Non-current liabilities	50.9	32.3	58%
Total non-current liabilities	90.1	72.5	24%
Taxes payable, withheld payroll tax, social security	22.9	44.3	-48%
Other current liabilities	717.2	719.4	0%
Total current liabilities	740.0	763.8	-3%
TOTAL EQUITY AND LIABILITIES	2,091.3	2,356.2	-11%

Reconciliation Segment Reporting/IFRS

	Q3 2020		03 2020
(All amounts in USD 1,000s)	As reported	Adjustments	Segment
Net revenues	58,232	22,319	80,551

Amortization and impairment of multi-client library	125,465	-39,410	86,055
Total operating expenses	147,893	-39,410	108,483
laxes	-21,897	16,333	-5,564
Net income	-71,205	45,396	-25,809

Multi-client library	1,061,983	-298,790	763,192
Deferred tax asset	106,327	-61,396	44,931
Total non-current assets	1,565,571	-360,187	1,205,384

Accrued revenues	63,673	183,923	247,595
Total current assets	525,770	183,923	631,699


Equity	1,261,200	161,123	1,422,323

Deferred taxes	39,157	4,613	43,769
Total non-current liabilities	90,096	4,613	94,709

Accounts payable and debt to partners	114,973	73,322	188,295
Other current liabilities	602,200	-493,316	108,884
Total current liabilities	740,044	-419,994	320,051