25 August 2020

Q2 2020

Operations

• Total Recordable Case Frequency (TRCF) for the quarter was 1.17 – improvement QoQ

• COVID-19: Primary concern is the safety and welfare of our people and to safeguard operations

• Solid operational and financial performance on all active crews – no interruptions YTD

Backlog• Awarded 4D OBN monitor survey over an existing field in the North Sea

• Backlog at USD 151 million of which USD 82 million for delivery in 2020

Organization • Industry veteran Mark Zajac appointed as new CTO

Operational highlights

2

Revenue

EBITDA

Financial highlights

3

USD 44.7 million

USD 9.9 million

Q2 2020 figures

• Cash balance of USD 56.6 million – net cash position of USD 23.9 million

• 56% equity ratio and in compliance with all loan covenantsFinancial position

USD 98.0 million

USD 15.8 million

H1 2020 figures

Consistent delivery of our strategy

4

Leading position to deliver high quality cost-efficient OBN data as clients shift away from exploration to focus on existing fields and reserves

Secure new contracts remains #1 priority

On target to deliver SG&A cost reduction of ~60% compared to FY 2019

On target to reduce CAPEX by ~80% compared to FY 2019, excluding multi-client investments

Protecting and preserving cash position to ensure solid entry in to 2021

Flexibility to adapt to market developments

OperationsOperations

• Thorough screening and testing identified seven Covid-19 cases before crew onboarding

• ZXPLR1 crew in the GoM continued to perform well

• Cornerstone multi-client crew executed flawlessly

• Solid performance by the Reservoir monitoring and source crews in the North Sea

• Z100 sale to client in Asia completed with good margins

• Profitability improved despite revenue reduction – CoS and SG&A reduction as planned

6

New organization delivering in challenging environment

RevenueUSD million

90 74

44

134

74

5345

0

20

40

60

80

100

120

140

160

Q3'19 Q4'19 Q1'20 Q2'20

Revenue MASS node sales

9

-24

6 10

-25

-5

15

35

55

75

95

Q3'19 Q4'19 Q1'20 Q2'20

EBITDAUSD million

Deploying industry leading OBN technology to multi-client

Cornerstone multi-client project commenced in late Q1

• Survey execution by the Z700 node-on-a-rope crew in the UK sector of the North Sea

• Carried out in partnership with CGG

• Multi-year scope. Seeking funding for 2021 scope

Responding to a challenging market

8

FY 2019 FY 2020E

Fixed cash cost base – SG&A and capexUSD million, excluding CoS and multi-client investments

~155m

~40m

Adjusting cost base and spending to market conditions

• Reduced cash cost from 155m to 40m from FY19 to FY20

• Strategy to preserve and protect cash position for a good entry in to 2021

While the oil price has recovered somewhat, the market is cautious

• Clients have cancelled or postponed capex plans to preserve cash

• Few opportunities remains for 2020 – only for Q4

• Tendering for 2021 has begun – however many still assess whether to postpone further

~74%

• No signed contracts have been cancelled

• Current backlog sufficient to support operations in

2020 with current cash position

• Awarded 4D OBN monitor survey over existing field

in the North Sea in 2021 – exemplifying current

focus on value in existing fields and reserves

• After quarter end, announced additional pre-

funding extending multi-client Cornerstone survey

• Focus on building 2021 backlog

9

Working closely with clients to secure new projects

9

BacklogUSD million

82

125

70

43

169

151

31 Mar 2020 30 June 20202020 2021 and beyond

Multi-client

Magseis Fairfield crew activity outlook

10

Q2 2020 Q3 2020 Q4 2020

Crew April May June July Aug Sept Oct Nov Dec

MASS I Crew 1

Z700 Crew 1

Z700 Crew 2

ZXPLR Crew 1

ZXPLR Crew 2

MASS III Crew 1 Continued qualification of MASS III nodes

RM Source Crew 1

RM Source Crew 2

RM Source Crew 3

Deepwater ROV Source contractRentals AvailableTransit/Mobilization/Storage

Financials

RevenueUSD million

Revenues in Q2’20 of USD 44.7 million

• High utilization of ZXPLR- and Reservoir Monitoring and Source (RMS) crews

• Completed build and sale of Z100 nodes

Lower YoY revenue

• Large node sale contract completed in 2019

• Fewer crews in operation

Significant activity on the MC-survey since the project commenced in March – not recognized in P&L

Revenue

12

91.6 90.274.4

53.3 44.7

40.0 44.0

0

20

40

60

80

100

120

140

160

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

Revenue MASS node sales

Note: Restated figures for Q2 2019

Multi-client activity only reflected in balance sheet

No P&L-effect in H1’20, as Magseis Fairfield only recognizes its share of:

• Revenues from external sale of the multi-client survey at delivery

The project activity in the period is reflected in the gross investment in multi-client library

• Gross investment consists of cost for vessels, crew, processing and depreciation

• Multi-client library in balance sheet reflects cost sharing from partner

External pre-funding commitment after quarter end

13

Multi-client balance sheetUSD million

Note: Timing differences occur in cost sharing between equal partners

8.3

16.420.6

Cost sharingGross investment

Q1’20

-12.5

Q2’20

Multi-client library Q2-20

28.9

Gross profit and marginUSD million

Gross profit of USD 18.9m and gross margin of 42%

• High margins on active acquisition projects and sale of Z100 nodes

• Margin expansion reflects improved contract structures, operational execution and cost control, in line with strategic plan

Gross profit and margin

14

31%

21%

-8%

23%

42%

7%

-15%

-5%

5%

15%

25%

35%

45%

55%

65%

75%

-10

0

10

20

30

40

50

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

Gross profit Gross margin Excluding special items

Note: Restated figures for Q2 2019Gross profit in accordance with IFRS16 – Long-term leasing costs excluded

SG&A

Underlying cost level decreased further

• Previous quarter affected by ~USD 4m reversal of provisions

Restructuring program and cost measures progressing as planned

• Initial restructuring program announced in Q4’19, additional cuts announced in April

• Revised SG&A estimate of USD ~25 million for FY 2020, >60% reduction from FY 2019

• Full effect from H2 2020

15

13.1 11.4 10.56.5

9.0

1.66.9 7.4

4.0

-

5.0

10.0

15.0

20.0

25.0

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

SG&A Special items

SG&AUSD million

Q2’19 special item: USD 1.6m reflecting settlement of 2018 outstanding receivableQ3’19 special items: USD 3.0m reflecting change of management and co-location in Norway, and USD 3.9m write-off of R&D/WIP projectsQ4’19 special items: USD 3.1m severance pay and lay-off, USD 3.5m other restructuring costs and USD 0.7m from write-off of R&D/WIP projects

R&D is included in SG&A figures

Note: Restated figures for Q2 2019

Reported EBITDA of USD 9.9m in Q2’20

• EBITDA margin of 22%

Reported EBITDA of USD 15.8m for H1’20

Underlying EBITDA roughly on par with last year for both Q2 and H1, despite the more challenging market and significantly lower revenue

EBITDA development

11.0 6.8

-5.65.8 9.9

16.0

9.3

-1.6-6.9

-18.0

-25

-15

-5

5

15

25

35

45

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

Special items MASS node sales EBITDA excl. MASS node sales and special items

Note: Restated figures for Q2 2019

EBITDA splitUSD million

25.5

9.2

-23.6

16

Key figures (unaudited)

17

USD millionQ2

2020Q2

2019YTD

2020YTD

2019FY

2019Profit and lossRevenues 44.7 131.5 98.0 251.0 459.6

Cost of sales (25.8) (91.3) (66.8) (187.5) (374.3)

Gross Profit 18.9 40.2 31.2 63.5 85.3

SG&A and R&D (9.0) (14.7) (15.5) (27.6) (63.8)

EBITDA 9.9 25.5 15.8 36.0 21.5

EBITDA margin (%) 22 % 19 % 16 % 14 % 5 %

Of which: special items affecting EBITDA - (1.6) - (7.2) (32.1)

Depreciation (10.6) (13.9) (22.5) (29.4) (56.7)

Amortization (2.2) (2.4) (4.3) (4.8) (8.9)

Impairments - - - - (106.2)

EBIT (2.9) 9.2 (11.0) 1.8 (150.4)

Net financial items 0.2 1.5 (3.2) (0.7) 7.0

Net profit/(loss) before tax (2.7) 10.7 (14.3) 1.2 (143.4)

Net profit/(loss) (2.9) 9.7 (14.9) (1.4) (151.5)

Other key figuresNet cash from operating activities 5.1 43.9 15.6 55.6 144.7Net cash used in investing activities (11.1) (25.9) (27.3) (44.3) (112.6)Net cash used in financing activities (4.9) (13.7) 14.8 (25.1) (46.8)Total assets 351 555 351 555.0 357Equity ratio 56 % 60 % 56 % 60 % 52 %Cash and cash equivalents 56.6 54.2 56.6 54.2 53.4Net interest-bearing debt/(cash) (23.9) (8.8) (23.9) (8.8) (20.9)

Operating loss (EBIT) of USD 2.9 million

Net loss of USD 2.9 million

Solid cash balance and negative NIBD following equity raise and early cash preservation efforts

Received Covid-19 U.S. loan program of USD 3.6 million

Note: Restated figures for Q1 and Q2 2019

Cash flow development

Positive cash flow from operating activities

• Negative NWC cash effect of USD 5.1 million

Investments in multi-client library, equipment and handling systems

Financing cash flow reflects lease obligations and interest payments

• Debt repayment of USD 3.3m on RCF offset by net proceed from U.S. loan program of USD 3.6m

Total decrease in cash and cash equivalents of USD 10.9m in Q2

18

Cash flow in quarterUSD million

on cash balance

4229

-35-45

-37

-50

-40

-30

-20

-10

0

10

20

30

40

50

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

Net working capital development

19

Net working capital changeUSD million

Net working capitalUSD million

-45-37

-50

-40

-30

-20

-10

0

10

20

30

40

50

Trade payables

OtherInventoryNWC Q1 2020

Trade Receivable

NWC Q2 2020

Note: Restated figures for Q2 2019

Significantly lower capex level compared to previous quarters

• Pre-committed growth capex of ~2m in Q2

• MASS III node program was postponed due to the increased market uncertainty – flexibility to restart in case of market rebound

Additional investments in multi-client library of USD 8.9m, net of cost sharing

Expected capex level of ~USD 15 million for 2020 (excluding multi-client)

• >80% reduction from 2019

• Only sustaining capex remains

• Sufficient inventory to support expected business activity level

20

Capex by quarterUSD million (excluding MC investments)

Note: Restated figures for Q2 2019

2629

19

93

0

5

10

15

20

25

30

35

40

45

50

Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

91

150

10

20

30

40

50

60

70

80

90

100

2019 2020E

Annual CapexUSDm (excluding MC inv.)

Further reduction of capex levels

Balance sheet

Strengthened balance sheet in Q1 through private placement and debt refinancing

In compliance with all loan covenants, equity ratio of 56%

21Note: Restated figures for Q2 2019*RCF was refinanced with balance of USD 33 million, of which USD 3.3 million was paid in June 2020

Assets Equity and liabilitiesUSD million

333

199 196

58

42 45

164

124 110

555

365 351

Q2'19 Q1'20 Q2'20

Current liabilities Non-current liabilitiesTotal equity

81

184

172 160

74

72 78

162

56 57

54

66 57

555

365 351

Q2'19 Q1'20 Q2'20Goodwill PPEOther intangibles Other currentCash

Aligning cash spending to lower revenue scenario

SG&A and capex reduced by ~USD 115 million in 2020 from 20191. Announced debt service, SG&A and capex

cut of ~USD 100 million relative to FY19 at the Q4’19 presentation

2. COVID-19 and oil price drop created a new market environment

3. Adapted and adjusted to even lower SG&A and capex base for 2020

4. Flexibility and capital to adjust further if required

Note (1): Includes R&D costs

~65~35 ~25

~90

~35

~15

FY 2019 FY 2020E FY 2020E

Fixed cash cost base and capex plans (excludes CoS)USD million

Cost, capex and liquidity measures progressing as planned

22

SG&A1

Capex

~155

~40

Current estimate

At Q4 2019report

~70

Outlook

Client focus in a new market reality: Cash and value creation from existing fields

24

Magseis Fairfield offering

From drilling-based to data driven field developmentClients are changing from cash heavy drilling operations to a less cash intensive data driven field development approach

Main implications:• Reduction in number of wells drilled

• Reduction in rig time commitments

• Increased use of OBN data

• Reduction in CO2 emissions

25

Summary: Managing through the cycle

26

Organization

Sales and Operations

Cash cost reduction

Protect and Preserve

• Aligned organization and operations to lower activity level with flexibility to adapt• Ensured solid governance, operational control and financial management

• In position to deliver quality cost-efficient OBN data as clients shift focus towards existing fields• Working closely with customers to understand new requirements• Securing new contracts remains top priority – already growing 2021 backlog

• Reducing YoY cash cost by 75%

• Protecting and preserving cash position for a good entry in to 2021

Appendix

Quarter ended Six months ended

USD thousands Note

Q22020

(unaudited)

Q22019

(unaudited)

YTD 2020

(unaudited)

YTD 2019

(unaudited)

Full Year2019

(audited)

Revenue and other incomeRevenue and other income 3 44 746 131 539 98 028 251 041 459 625

Operating expensesCost of sales (25 820) (91 299) (66 796) (187 481) (374 308)General and administrative costs (8 985) (14 722) (15 471) (27 605) (63 812)Depreciation 5,6 (10 649) (13 941) (22 453) (29 353) (56 686)Amortisation 7 (2 191) (2 355) (4 347) (4 783) (8 960)Impairment 5,6,7,12 - - - - (106 245)Total operating expenses (47 645) (122 317) (109 067) (249 222) (610 011)

Operating profit/(loss) (2 898) 9 222 (11 038) 1 819 (150 386)

Financial income and expensesFinance income 1 366 3 295 2 271 4 354 14 394Finance costs (1 123) (1 830) (5 492) (5 007) (7 373)Net finance income/(expenses) 4 242 1 465 (3 221) (653) 7 021

Net profit/(loss) before tax (2 656) 10 687 (14 259) 1 166 (143 365)

Income tax expense 13 (225) (963) (650) (2 605) (8 176)

Net profit/(loss) (2 881) 9 724 (14 910) (1 439) (151 541)

Basic earnings/(loss) per share (USD) attributable to the ordinary equity (0.01) 0.05 (0.06) (0.01) (0.82)

Diluted earnings/(loss) per share (USD) attributable to the ordinary equity (0.01) 0.05 (0.06) (0.01) (0.82)

Other comprehensive incomeOther comprehensive income - - - - -Total comprehensive income/(loss) for the period (2 881) 9 724 (14 910) (1 439) (151 541)

Income statement(unaudited)

28Source: Magseis Fairfield

Balance sheet(unaudited)

29Source: Magseis Fairfield

USD thousands Note

30-Jun2020

(unaudited)

30-Jun2019

(unaudited)

31-Dec2019

(audited)

Non-current assetsGoodwill 7 - 81,131 -Property, Plant and Equipment 5 160,041 183,559 172,091Multi-client library 7 16,371 - -Other intangible assets 7 61,970 73,707 65,406Total non-current assets 238,381 338,396 237,496

Current assetsCash and cash equivalents 56,615 54,230 53,432Trade receivables 1 34,181 88,808 24,353Inventories 4 7,073 42,347 18,928Other current assets 5 15,235 31,669 22,310Total current assets 113,104 217,056 119,021

Total assets 351,485 555,452 356,518

EquityShare capital 8 1,578 1,167 1,167Share premium 8 407,662 382,148 382,148Other equity (212,791) (49,710) (198,721)Total shareholders' equity 196,449 333,605 184,594

Non-current liabilitiesLease liabilities 6 9,237 18,494 10,707Interest bearing liabilities 9 31,720 23,946 15,824Non-interest-bearing liabilities 4,000 15,364 4,263Total non-current liabilities 44,957 57,804 30,794

Current liabilitiesTrade payables 11 15,041 54,838 29,003Current tax payable 6,690 3,540 7,895Current portion of interest-bearing liabilities 9 1,019 21,467 16,667Current portion of lease liabilties 6 8,725 17,796 16,195Other current liabilities 78,605 66,400 71,369Total current liabilities 110,080 164,043 141,129

Total liabilities 155,037 221,847 171,923

Total equity and liabilities 351,485 555,452 356,518

Quarter ended Six months ended

USD thousands Note

Q22020

(unaudited)

Q22019

(unaudited)

YTD 2020

(unaudited)

YTD 2019

(unaudited)

Full Year2019

(audited)

Cash flows from operating activitiesProfit / (loss) before tax (2 656) 10 687 (14 259) 1 166 (143 364)Income tax paid 13 (225) (1 848) (650) (2 304) (4 332)

Depreciation, amortization and impairment 5,6,7,12 12 840 16 297 26 800 34 136 171 892Share-based payments expense 476 (1 490) 864 1 478 2 540Finance expense 4 1 123 2 433 5 492 5 007 7 373Finance income 4 (1 366) (4 068) (2 271) (4 354) (14 394)Cost of sales of nodes - 9 311 - 15 910 29 058Other non-cash effects - - - 5 600 -

(Increase)/decrease in current assets 1 998 12 643 8 225 (10 790) 91 961Increase/(decrease) in current liabilities (7 117) (89) (8 617) 9 708 4 007Net cash from operating activities 5 073 43 876 15 583 55 557 144 740

Cash flows from investing activitiesInterest received 4 - 108 77 394 735Investment in multi-client library 7 (7 827) - (14 926) - -Investment in other intangibles 7 (126) - (911) - -Acquisition of equipment 5 (3 158) (26 034) (11 506) (44 719) (91 204)Investment in subsidiaries - - - - (22 170)Net cash used in investing activities (11 111) (25 926) (27 266) (44 325) (112 639)

Cash flows from financing activitiesDown payments of interest-bearing liabilities 9 (3 333) (8 187) (3 333) (14 040) (22 374)Net proceeds from new loan 9 3 568 - 3 568 - -Payment of finance lease liabilities 6 (3 794) (4 200) (8 798) (7 947) (18 775)Net proceeds from issue of share capital 8 (307) (5) 25 513 (2) (2)Interest paid 4 (1 031) (1 333) (2 140) (3 123) (5 629)Net cash from financing activities (4 897) (13 725) 14 810 (25 112) (46 780)

Net change in cash and cash equivalents (10 934) 4 225 3 127 (13 880) (14 679)Currency effects on cash 1 799 - 56 - -Cash and cash equivalents at period start 65 751 50 006 53 432 68 110 68 110Cash and cash equivalents at period end 56 615 54 231 56 615 54 230 53 432

Cash flow(unaudited)

30Source: Magseis Fairfield

Q4 2019 Q1 2020 Q2 2020 Conditions from Q2 20

Debt covenants

Leverage X ● ● ● < 1.25x

Equity Ratio % ● ● ● > 50%

Clean down NIBD USDm ● ● ● < 10.0

In compliance with all covenants as of Q2 2020Financial covenants as of Q2 2020:• Leverage: NIBD / Last Twelve Months (LTM) EBITDA pre IFRS

16 < 1.25x• If negative LTM EBITDA and NIBD, alternative cash

buffer headroom calculation is applied• If negative LTM EBITDA and positive NIBD, leverage

covenant is in breach• Equity Ratio: Total Equity / Total Assets > 50%• Clean down mechanism

• NIBD shall not for a period of 5 successive business days in each quarter exceed:

• USD 10 million in Q2-Q4 2020• USD 5 million in 2021• 0 in 2022

For reference - covenants prior to 1 April 2020:• Leverage: NIBD / EBITDA LTM pre IFRS 16 < 1.0x • Min. cash and cash equiv. ex. restricted cash of USD 15m• Equity Ratio: Total Equity / Total Assets > 50%

Covenant update

31

Leverage: Net interest-bearing debt / LTM EBITDA pre IFRS 16Equity Ratio: Total Equity / Total AssetsClean down mechanism: NIBD less than USD 10m for 2020, USD for 2021, 0 for 2022

Change in covenants

Overview of largest ownersRank Investor Number of shares (m) % of total Type Country

1 FAIRFIELD MS LLC 48.3 18.1 % COMP USA2 MORGAN STANLEY & CO. LLC 38.2 14.3 % COMP USA3 AS CLIPPER 11.3 4.2 % COMP NOR4 DB LONDON (INV. SERV.) NOMINEES LT 8.5 3.2 % NOM GBR5 WESTCON GROUP AS 8.2 3.1 % COMP NOR6 ANFAR INVEST AS 7.4 2.8 % COMP NOR7 KAS BANK N.V. 7.2 2.7 % NOM NLD8 STRAWBERRY CAPITAL AS 6.9 2.6 % COMP NOR9 VERDIPAPIRFONDET KLP AKSJENORGE 6.4 2.4 % COMP NOR

10 GEO INNOVA AS 5.8 2.2 % COMP NOR11 U.S. BANK NATIONAL ASSOCIATION 4.7 1.8 % NOM USA12 KOMMUNAL LANDSPENSJONSKASSE 4.0 1.5 % COMP NOR13 MERRILL LYNCH PROF. CLEARING CORP. 3.9 1.5 % NOM USA14 REDBACK AS 3.6 1.3 % COMP NOR15 BARRUS CAPITAL AS 3.3 1.2 % COMP NOR16 JPMORGAN CHASE BANK, N.A., LONDON 3.1 1.1 % NOM GBR17 VERDIPAPIRFONDET PARETO INVESTMENT 2.3 0.9 % COMP NOR18 SKANDINAVISKA ENSKILDA BANKEN AB 2.2 0.8 % NOM LUX19 SEB CMU/SECFIN POOLED ACCOUNT 2.2 0.8 % COMP SWE20 SINGH BALDEV 1.7 0.7 % PRIV NOR

Total number owned by top 20 179.2 67 %Total number of shares 266.8 100 %

32Note: As per 24 August 2020

This presentation (the “Presentation") has been prepared by Magseis Fairfield ASA (the“Company” or “Magseis Fairfield”).

The Presentation contains forward-looking information and statements relating to thebusiness, financial performance and results of the Company and/or industry and markets inwhich it operates. Forward-looking statements concern future circumstances and resultsand other statements that are not historical facts, sometimes identified by the words“aims”, “anticipates”, “believes”, “estimates”, “expects”, “foresees”, “intends”, “plans”,“predicts”, “projects”, “targets”, and similar expressions. Any forward-looking statementsand other information contained in this Presentation, including assumptions, opinions andviews of the Company or cited from third party sources are solely opinions and forecastsbased on the current expectations, estimates and projections of the Company orassumptions based on information currently available to the Company, which are subjectto risks, uncertainties and other factors that may cause actual events to differ materiallyfrom any anticipated development.

Important factors may lead to actual profits, results and developments deviatingsubstantially from what has been expressed or implied in such statements. Although theCompany believes that its expectations and the Presentation are based upon reasonableassumptions, it can give no assurance that those expectations will be achieved or that theactual results will be as set out in the Presentation. The Company assumes no obligation,except as required by law, to update any forward-looking statements or to conform theseforward-looking statements to its actual results.

The Company makes no representation or warranty, expressed or implied, as to theaccuracy, 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 anylosses incurred as a result of your or their use of, or reliance on, any information containedin the Presentation.

This Presentation does not constitute or form part of, and is not prepared or made inconnection with, an offer or invitation to sell, or any solicitation of any offer to subscribefor or purchase any securities, and nothing contained herein shall form the basis of anycontract or commitment whatsoever. No reliance may be placed for any purposewhatsoever on the information contained in this Presentation or on its completeness,accuracy or fairness. The information in this Presentation is subject to verification,completion and change. The contents of this Presentation have not been independentlyverified. The Company’s securities have not been and will not be registered under theUnited States Securities Act of 1933, as amended (the “US Securities Act”), and are offeredand sold only outside the United States in accordance with an exemption from registrationprovided by Regulation S under the US Securities Act. This Presentation should not formthe basis of any investment decision.

The Presentation speaks and reflects prevailing conditions and views as of the date of thispresentation. It may be subject to corrections and change at any time without noticeexcept as required by law. The delivery of this Presentation or any further discussions ofthe Company with any recipient shall not, under any circumstances, create any implicationthat the Company assumes any obligation to update or correct the information herein, norany implication that there has been no change in the affairs of the Company since suchdate.

33

Disclaimer

Source: Magseis Fairfield