M agseis ASA Q2 2018 16 th August 2018 Expanding operational footprint
Disclaimer This presentation (the “ Presentation ") has been prepared by M agseis ASA (the The Company makes no representation or warranty, expressed or implied, as to the “ Company ” or “ M agseis ” ). accuracy, reliability or completeness of the Presentation, and neither the Company nor any of its directors, officers or employees shall be liable to you or to any other party for The Presentation contains forward-looking information and statements relating to the any losses incurred as a result of your or their use of, or reliance on, any information business, financial performance and results of the Company and/or industry and contained in the Presentation. markets in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, This Presentation does not constitute or form part of, and is not prepared or made in sometimes identified by the words “aims”, “anticipates”, “believes”, “estimates”, connection with, an offer or invitation to sell, or any solicitation of any offer to “expects”, “foresees”, “ intends”, “plans”, “ predicts”, “projects”, “targets”, and similar subscribe for or purchase any securities, and nothing contained herein shall form the expressions. Any forward-looking statements and other information contained in this basis of any contract or commitment whatsoever. No reliance may be placed for any Presentation, including assumptions, opinions and views of the Company or cited from purpose whatsoever on the information contained in this Presentation or on its third party sources are solely opinions and forecasts based on the current completeness, accuracy or fairness. The information in this Presentation is subject to expectations, estimates and projections of the Company or assumptions based on verification, completion and change. The contents of this Presentation have not been information currently available to the Company, which are subject to risks, independently verified. The Company’s securities have not been and will not be uncertainties and other factors that may cause actual events to differ materially from registered under the United States Securities Act of 1933, as amended (the “ US any anticipated development. Securities Act ” ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S under the US Securities Important factors may lead to actual profits, results and developments deviating Act. This Presentation should not form the basis of any investment decision. substantially from what has been expressed or implied in such statements. Although the Company believes that its expectations and the Presentation are based upon The Presentation speaks and reflects prevailing conditions and views as of the date of reasonable assumptions, it can give no assurance that those expectations will be this presentation. It may be subject to corrections and change at any time without achieved or that the actual results will be as set out in the Presentation. The Company notice except as required by law. The delivery of this Presentation or any further assumes no obligation, except as required by law, to update any forward-looking discussions of the Company with any recipient shall not, under any circumstances, statements or to conform these forward-looking statements to its actual results. create any implication that the Company assumes any obligation to update or correct the information herein, nor any implication that there has been no change in the affairs of the Company since such date. Source: M agseis
AGENDA Introduction Financials M arket development and operations Summary 3
Highlights Q2 2018 • Revenue of USD 19.7m and EBITDA of USD 5.2m • Net cash flow from operations USD 3.2m Financial Performance • Sufficient funding for node CAPEX program • Successfully scaling from one to three crews in operation Operational Performance • Interchangeable node covering cable, ROV & rope deployment • Launching M ASS III node, 150 days battery life with 40% CAPEX reduction Focus on more efficient and • Extended Athene on flexible charter at reduced rates cost effective solutions • No new vessel on long-term charter - cost base flexibility • Three contract awards and backlog at USD 65m Further growth, backlog and outlook • Continued guidance of expected revenue for 2018 of USD 100m 4 Source: M agseis
Corporate snapshot Develop and operate proprietary Geophysical company founded in technology to be applied in seismic 2009 with first operation in 2013 acquisition operations Headquarter in Oslo, Norway with $ offices in Stockholm, Singapore and OSE:M SEIS Houston M CAP USD~170 million 168 employees of which ~45% Transferred to main list in JUN 18 offshore 5 Source: M agseis
AGENDA Introduction Financials M arket development and operations Summary 6
Q2 2018 results - Comprehensive income YTD Q2 2018 Q2 2017 FY 2017 In USD thousands % % % % 2018 (unaudited) (unaudited) (audited 19 718 19 399 44 283 73 877 Revenue • Revenue 10 114 8 659 19 805 35 701 Cost of sales • M ainly related to Saudi Arabia 670 514 1 231 2 002 Research and development SG&A and other expenses 3 741 1 828 7 683 10 039 • Cost of sales & SG&A EBITDA 5 193 26.3 8 398 43.3 15 563 35.1 26 136 35.4 • Scaling up operations – 3 parallel operations in Q318 • Scaling up sales & administration 4 196 3 688 7 948 15 611 Depreciation & Amortisation Impairment 0 0 0 233 • Depreciation EBIT 997 5.1 4 710 24.3 7 616 17.2 10 292 13.9 • Increased node pool to 14 000 Net interest and fx (gain)/ loss 1 311 560 1 502 397 • Finance 0 0 0 0 Other finance cost • Unrealized exchange loss of USD 1,1m due to weakening NOK vs Net finance costs 1 311 560 1 502 397 USD in Q218 EBT -314 4 151 6 114 9 895 • Tax 227 838 987 3 199 Tax • Withholding tax in Saudi Arabia – net of USD 600k received from previous survey Net income -540 -2.7 3 313 17.1 5 127 11.6 6 696 9.1 0 0 0 0 Currency translation differences Total comprehensive income -540 3 313 5 127 6 696 7 Source: M agseis
Second quarter 2018 results - Balance sheet YTD 2018 YTD 2017 In USD thousands YE 2017 (unaudited) (audited) • Trade receivables comprising BGP/Saudi Aramco Equipment and other intangibles 94 450 59 930 74 416 0 0 0 • M ulti-client library 1 overdue invoice end June paid in July 36 168 33 657 29 776 Cash and cash equivalents 24 890 21 404 9 137 • Other current assets Trade receivables Stock (fuel and batteries) 2 616 1 318 1 752 • Prepayments and deposits of USD 3.5m 5 105 4 714 8 469 Other current assets 163 229 121 023 123 549 TOTAL ASSETS • Equity ratio of 84.1% • In compliance with all covenants 545 438 438 Share capital 178 508 141 506 141 486 Share premium • Liabilities Retained earnings and other reserves -41 828 -46 875 -46 884 TOTAL EQUITY 137 225 95 069 95 040 • Senior debt from Export Credit Norway and Innovation Norway of USD 7.0m @ 4.15% interest (split non-current USD 5.1m and USD 1.9m current) Obligation under finance lease 0 447 0 • Shell Deep Water R&D funding: USD 7.3m (contingent Other non-current financial liabilities 12 447 13 675 13 049 liability) 12 447 14 122 13 049 TOTAL NON-CURRENT LIABILITIES • Received non-binding indicative term-sheet for funding of new nodes and working capital Trade payables 5 900 4 045 6 010 765 1 489 1 111 Current tax liability 6 892 6 298 8 338 Other current liabilities 13 557 11 832 15 460 TOTAL CURRENT LIABILITIES TOTAL LIABILITIES 26 003 25 955 28 509 TOTAL EQUITY AND LIABILITIES 163 229 121 023 123 549 8 Source: M agseis
Second quarter 2018 results - Cash flow Q2 2018 Q2 2017 FY 2017 In USD thousands YTD 2018 (unaudited) (unaudited) (audited) Earnings before tax -314 4 151 6 114 9 895 • Cash flow from operations • Positive cash flow from operations; overdue Depreciation & Amortization 3 493 2 044 7 012 12 555 trade receivables end June paid in July 64 -15 677 -16 125 1 708 Net working capital adjustments Net cash flow from operating • Cash flow from investments 3 244 -9 482 -3 000 24 157 activities • USD 11m in new CAPEX for new nodes according to growth plan Net cash flow from investing -10 996 -8 827 -25 848 -44 557 • Cash from financing activities • Equity issue in FEB 2018 sufficient to finalise CAPEX program for 10 000 new nodes Net cash flow from financing -676 -2 229 35 240 31 201 activities • Cash position Net change in cash and cash equivalents -8 429 -20 538 6 392 10 801 • R obust cash position of USD 36.2m Cash balance at the beginning of the period 44 597 54 195 29 776 18 974 Cash balance at period end 36 168 33 657 36 168 29 776 9 Source: M agseis
Transfer to Oslo Børs On 1st J une 2018, M agseis ASA transferred its listing of shares to Oslo Børs (Oslo Stock Exchange). This will bolster the company’s exposure to capital markets and investors globally 10 Source: M agseis
Y FIGURES Q2 Q2 2018 KEY F $ MILLION REVENUE EBITDA 19.7 5.2 19.7 19.4 $ MILLION $ MILLION NET PROFIT CASH BALANCE 8.4 -0.5 36.2 5.2 $ MILLION $ MILLION REVENUE EBITDA REVENUE EBITDA Q2 Q2 Q2 Q2 2017 2017 2018 2018 11 Source: M agseis
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