Magseis ASA Q2 2016

17 August 2016

• Positive market view further confirmed – starting to see a pipeline of 2017/2018 tenders with substantial scope

• Preparations for Crew #2 underway - growth strategy to be pursued on back of sufficient backlog visibility

Highlights second quarter 2016

2

• Manufactured and delivered 350km cable for the Red Sea project• Mobilisation completed for the Saudi Aramco Red Sea survey

• Good cooperation between BGP Arabia, Aramco and Magseis

• Strong order backlog USD 55M as of end Q2 2016 >USD 120M incl. extension

• Success in the Red Sea will strengthen our market position in the Middle East

• Aiming to drive industry development as cost-reduction allows for expansion of OBS application

Operational and technical milestones achieved

Well underway on ourlargest contract

Industry leading position in Ocean Bottom Seismic

Positioned for growth when visibility improves further

KEY FIGURES Q2 2016

Source: Magseis

7.7REVENUE

-1.6EBITDA

-4.0NET INCOME

16.9CASH BALANCE

$ MILLION

$ MILLION $ MILLION

$ MILLION $ MILLION

7.7

25.8

0.0-1.6

REVENUE

Q2 2016

REVENUE

YTD2016

EBITDA

YTD2016

EBITDA

Q22016

3

This is Magseis

OCEAN BOTTOM SEISMIC (OBS) PRODUCT DEVELOPMENT& MANUFACTURING

OSLO - BERGEN - STOCKHOLM SINGAPORE - BRAZIL

• Industry leading ocean bottom seismic company

• Start of operations Oct 2013

• One vessel in operations

• 80 employees

• Listed on Oslo Axess

Ticker

Shares outstanding

Market cap (NOKm)

Equity Ratio – Q2 16

MSEIS

37.818,014

548

66.4%

4

Seismic acquisition

ONE core proprietary technology -> Multiple applications

Miniaturised node sensors Handling system

Cable deployment

ROV deployment

5

Marine Autonomous Seismic System (MASS)

6

Now established as a leading OBS provider

7Source: Magseis operating close to FPSO at Captain Field

Qualified (2013):

7

• Technology well established

• Have completed >600 sq.km. of high-endOBS acquisition

• More than 100 000 4-component sensor capsulesdeployed

• Building reputation for very high-quality data

• Established as the lowest-cost supplier in the industry

Qualified (2015/16):

Ongoing (2016):

Aramco Red Sea projectOperational highlights• Second survey in the Middle East

• Complex survey design

• Rolling spread across challenging seabed conditions

• Record amount of cable in operation (350km)

• Long-life node electronics introduced

• Excellent cooperation with BGP and Aramco

Strategically important reference for further work world wide

8Source: Magseis. Operating together with BGP in the Red Sea

Second quarter 2016 results - Comprehensive income

9

• Revenue• USD 7.7M from Petronas’ Bokor survey

• Cost of sales• Two vessel operation• All costs after May 18th capitalised as part of mobilisation

Saudi Aramco Red Sea survey (USD 4.5M)

• Research and development• Capitalised all expenses related to the

Deep water R&D project

• Depreciation• Capitalised USD 1.4M as part of mobilisation Saudi Aramco

Red Sea survey

• Amortisation and Impairment• USD 133K to intangible assets• USD 254K related to damaged and scrapped equipment

• Tax• USD 315K relates to withholding tax Malaysia

In USD thousands Q2 2016(unaudited)

YTD 2016(unaudited)

Q2 2015(unaudited)

YTD 2015(unaudited)

Second quarter 2016 results- Balance sheet at 30 June

10

In USD thousands YTD 2016(unaudited)

YTD 2015(unaudited)

YE 2015(audited) • Equipment and intangibles

• Additions of USD 10M

• Trade receivables primarily Petronas

• Other current assets primarily capitalised mobilisation costs

• Equity ratio of 66.4%

• Non-current liabilities• BGP prepayment: USD 8M• Shell Deep Water R&D funding: USD 4.2M

• Increase in current liabilities driven by investments for Saudi Aramco Red Sea survey

Second quarter 2016 results - Cash flow

11

In USD thousands Q2 2016(unaudited)

YTD 2016(unaudited)

Q2 2015(unaudited)

YTD 2015(unaudited) • Cash flow from operations

• Negative cash flow resulting from yard stay and transit costs

• Cash from investments• Relates to investments for the Saudi Aramco Red Sea survey

• Cash flow from financing • Increase of BGP funding USD 4.0M • New equity issue of USD 12.1M

• New debt financing secured with effect from Q3• Export Credit Norway: USD 4.4M• Innovation Norway: USD 4.9M

Current backlog• Awarded Saudi Aramco’s S-78 together with BGP

– 9 months duration– 12 months extension option

• Large tenders in the pipeline for 2017/2018 start

• Significant industry interest for OBS and MASS technology

Source: Magseis

Firm

Lead

Yard/transit

11

Summary and outlook

13

• Well underway in the Red Sea

• Backlog visibility remains strong; 9 – 21 months

• Financial position strengthened for 2016-2017

• Positive market view supported by contract awards for 2017

• Growth strategy remains unchanged

At the forefront of seabed seismic technology

Magseis ASA

Q & A