2018 ION Investor Day

Disrupting Decision-making

New York, NY
May 18, 2018
 Disclaimers

Forward-Looking Statements

The information herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include information and other statements that
are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking
statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks
associated with the timing and development of ION Geophysical Corporation's products and services; pricing pressure; decreased
demand; changes in oil prices; and political, execution, regulatory, and currency risks. These risks and uncertainties also include risks
associated with the WesternGeco litigation and other related proceedings. We cannot predict the outcome of this litigation or the related
proceedings. For additional information regarding these various risks and uncertainties, including the WesternGeco litigation, see our
Form 10-K for the year ended December 31, 2017, filed on February 8, 2018. Additional risk factors, which could affect actual results, are
disclosed by the Company in its fillings with the Securities and Exchange Commission ("SEC"), including its Form 10-K, Form 10-Qs and
Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.

Non-GAAP Financial Measures

This presentation contains certain non-GAAP financial measures. These measures should not be considered in isolation or as a
substitute for measures prepared in accordance with GAAP. These non-GAAP measures should be evaluated only in connection with our
GAAP results, including those in our Form 10-K. Reconciliations of these non-GAAP measures to the most directly comparable GAAP
measures are in the appendix.
2
Agenda Agenda
8:30 - 9:05 ION Overview
9:05 - 9:50 E&P Technology & Services
9:50 - 10:00 Break
10:00 - 10:45 Operations Optimization
10:45 - 11:20 Ocean Bottom Integrated Technologies

Rachel White
VP, Investor Relations
and Communications
 ION at a Glance

50 years in business
HEADQUARTERS 23 years on the NYSE (ticker: IO)
HOUSTON,
TEXAS
$400B E&P market
$198M 2017 revenue
$64M 2017 Adjusted EBITDA
ABOUT

Delivering the power of data-driven decision-making 500 employees

Technology leader with a history of innovation
Aligning offerings to select growing E&P and adjacent markets
8% revenues invested in R&D
Asset light with creative business models and high returns 500 patents and pending applications
4
 At ION, we Deliver the Power of Data-driven Decision-making

Powering data-driven decisions>>

We develop and leverage innovative technologies,

creating value through data capture, analysis and
optimization to enhance critical decision-making,
enabling superior returns.

 Improving E&P decision-making

 Enhancing reservoir management
 Optimizing offshore operations

5
 Decision-making: From Art to Science

Decision management is changing.

Organizations realize there is a

need to shift from the
art of the decision to the
science of the decision
as technology evolves to provide
greater support of decision-making
as a management science.

6 IDC Marketscape on Decision Management Software Platforms Sept 2014

 Digitalization is Transforming Business
Creates Growing Opportunity to Disrupt Decision-making and Deliver Value

 Digitalization – the collection, analysis and utilization of huge amounts of data –

can deliver substantial operational improvements and returns

Cost Savings
 Delivers efficiencies and HSE Improvements
powerful new capabilities for Operational and Automation, sensors
smarter exploration, easier production efficiency, and alarms to
capital and resource de-man operations,
capture, and safer operations allocation improvements improve maintenance
with better utilized resources and prevent incidents

 Enabled by new Cloud Internet of Big data & Automation & Artificial
technologies computing Things analytics robotics intelligence

7 Sources: WoodMackenzie and PwC

 ION is Organized into Three Business Segments
E&P Technology & Services
Create digital data assets and
deliver services that improve
decision-making, mitigate risk and
maximize portfolio value.
8
Operations Optimization
Develop mission-critical subscription
offerings and engineering services
that enable operational control and
optimization.
Ocean Bottom
Integrated Technologies
Integrate ION’s advanced
technologies to accelerate data
capture and delivery for enhanced
reservoir decision-making, and
improved returns.
 Experienced, Highly Capable Leadership Team
Proven Track Records Delivering Returns in Technology & Energy

Brian Hanson Steve Bate Matt Powers

President and CEO EVP and CFO EVP, General Counsel and
Corporate Secretary

Ken Williamson Chris Usher Colin Hulme Larry Burke

EVP & COO, E&P Technology EVP & COO, Operations EVP, Strategic Marketing and EVP, Global Human Resources
and Services Optimization New Technologies
9
 Where the E&P Life Cycle is Today
Production growth outpaces
demand

Higher reinvestment grows Prices drop, Higher reinvestment

production hurting cash flow grows production

Cash flow growth allows Cash flow declines, forces Cash flow growth allows
increased investment spending cuts increased investment Landscape
Today

Higher oil prices Low reinvestment Higher oil prices

improve cash flow hurts production improve cash flow

Production undershoots
demand

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

 E&P market recovering: healthy global demand and continued OPEC production cuts
 Operational cash flow growth: provides opportunity for increased investment

10 Sources: IHS, Morgan Stanley

 E&P Market in Recovery: Oil Prices & Spending Increasing

11 Source: Barclay’s, Jan 2018

 Select Offshore Plays are Attractive at $50+ Oil

 Offshore compressed costs, now comparative to shale on a breakeven basis

 Programs in select areas of investment are critical to outperform the market

12 Source: WoodMackenzie, 2016

 Key Strategies to Lead the Recovery & Outperform the Market
Next Cycle Focused on Value vs Volume (Reserves Replacement)

Offerings aligned to market drivers in asset light business models that deliver high returns

Efficient Competition for Production Operations

exploration E&P capital optimization optimization
– Offerings where capital – Opportunity for license – Enabling more rapid, – Diversify and expand
is flowing, shifting round management cost-effective delivery our technologies into
closer to the reservoir and investment of superior OBS data larger, less cyclic
– Quick, cost-effective consulting – High end imaging and adjacent markets
exploration services for reservoir
management
13
 Three Primary Long-term Strategic Objectives
Combination will Position us Better for the Next Down Cycle
Move closer
to reservoir
• Shift business closer to the
reservoir, where capital is
flowing, while maintaining our
exploration offerings for when
activity resumes
- 3D multi-client reimaging
programs
- High-end imaging and
reservoir characterization
projects
- Commercialization of 4Sea
14 components across ION
De-lever Diversify
• Took out $70M debt over • Opportunities to diversify our
last 3 years during downturn technologies into larger, less
• Raised $47M capital cyclical adjacent markets
• Developed a framework for
• Sold warrants for potential
identifying, evaluating and
+$61M by March 2019
penetrating adjacent markets
• Leverage ratio ~1X trailing
• Evaluating where to focus our
12 months EBITDA
resources for the best return
• Positions us to pay $121M
bond due in 2021 and be
debt-free
 Financial Highlights

2016 & 2017 FINANCIALS IN $ MILLIONS

REVENUE ADJ. EBITDA
198
2017

173 38%

198 64
$ MILLION $ MILLION

64 21%

LIQUIDITY LEVERAGE RATIO

Q1-18

75
$ MILLION
~1X
TRAILING 12 MONTHS ADJ. EBITDA REVENUE
11

ADJ. EBITDA GROSS MARGIN

+14% +513% +81%
+45% excl OBIT

15 Adjusted EBITDA is a non-GAAP financial measure. See the appendix for reconciliations to their comparable GAAP measures.
 Strong Growth Trajectory

Revenue ($M) Backlog ($M) Gross Margin (%)

35 35 40%

30 30 35%

30%
25 25
25%
20 20
20%
15 15
15%
10 10
10%

5 5 5%

0 0 0%
Q1-16 Q1-17 Q1-18 Q1-16 Q1-17 Q1-18 2015 2016 2017

16
 Driving Shareholder Returns
Higher Gross Margin and Return on Tangible Capital

 Scalable, asset light business model

 Reduced cost base $95M
 Refocused portfolio to higher potential return offerings
 Shifted offerings closer to the reservoir

2017 Return on
Margin 2015 2016 2017 Company Type
Tangible Capital

Gross Margin 4% 21% 38% Asset Heavy Peers (1) 15%

ION (2) 26%

17 (1) Peer group includes CGG, PGS and PLCS. (2) See the appendix for the calculation of Return on Tangible Capital.
 Major Potential Growth Wedges with High Earnings Potential

3D Multi-client Ocean Bottom Seismic

E&P Advisors Marlin

18
 2018 Outlook

 Expect E&P market to continue improving, 8% projected spend increase

 Expect ION 2018 results to improve year-on-year
– Acceleration in new program activity, which is driving the growth in backlog, is the best near-
term indicator of the velocity in our business
– Data library well positioned for uptick in upcoming license rounds and any resumption in
exploration activity to replace reserves, which pre-downturn was a significant business for ION
– Imaging Services and E&P Advisors utilized on high end projects
– Gaining traction moving into adjacent markets and commercializing 4Sea
– Delicate balance between closing quarters and maintaining pricing

 Making good progress executing three primary strategic objectives

– Shifting business closer to the reservoir, where capital is flowing
– De-levering our balance sheet
– Diversifying our offerings into adjacent markets – significant 5-year potential
19
Questions and Answers

Rachel White
VP, Investor Relations
and Communications
Agenda Agenda
8:30 - 9:05 ION Overview
9:05 - 9:50 E&P Technology & Services
9:50 - 10:00 Break
10:00 - 10:45 Operations Optimization
10:45 - 11:20 Ocean Bottom Integrated Technologies

Ken Williamson
EVP & COO, E&P
Technology and Services
 E&P Technology & Services

Ocean Bottom
E&P Technology & Services Operations Optimization
Integrated Technologies

Create digital data assets and deliver services that improve

decision-making, mitigate risk and maximize portfolio value.

Imaging Services E&P Advisors Multi-client Data Library

Combine leading technologies and
experience to maximize image quality,
delivering enhanced subsurface
characterization.
22
Provide technical, commercial and Leverage world-class geoscience skills to
strategic advice to evaluate and market create global digital data assets that we
oil and gas opportunities/assets world- license to multiple E&P companies to
wide, sharing in the value we create. optimize their investment decisions.
 Our Offerings Today
E&P TECHNOLOGY
& SERVICES

Multi-client
Imaging Services
E&P Advisors

 Multi-client  Imaging Services  E&P Advisors

– BasinSPANTM recognized offering in – Recognized “Tier 1” provider – Technical, Commercial and Strategic
basin-scale exploration Technology & Service advice across E&P value chain

– Ken
600,000 Km 2D Library – Rapid delivery of high quality imaging – E&P arm of ION
Williamson
over large areas create and capture value
– EVP
210,000 sq km 3D Library
added or in progress – Advanced imaging / velocity model – License round management
estimation
– History of innovation

23
 Multi-client
 A core business for ION
– Leveraging ION’s technology and capability
– Track record on portfolio returns

 Industry leading BasinSPANTM brand

– Global footprint ~600,000 km library
– Fully integrated interpretation and derivative
products

 Evolution to 3D Library
– Added or in progress ~210,000 sq km since 2016

 Integrated Sales/Mkt Channel

– Leveraging expertise of E&P Advisors group Investment

 Host government relationships

– ION’s role evolving with host Governments
License round strategies / management

24 Portfolio return based on 2D library for programs

Imaging Services
E&P Technology and Services

→ Global footprint
→ Major centers in London, Houston
→ Strategically located data centers
(Brazil, W Africa, Mexico, Egypt)

→ Technology
→ Industry recognized Tier 1 provider
→ Track record of driving breakthroughs in key technologies
→ Centralized private-cloud compute
→ Industry leading efficiency - proprietary software platform
Project heat map , Major Operations Centers Data Processing Centers

→ Relevant clients and projects at the cutting edge

→ Focus on high-end projects that drive technology

→ Experience
→ 600+ projects worldwide to date
→ Significant OBS experience
Leading Geophysical Massively Scalable Rapid delivery of large
Technology (FWI) S/W infrastructure volumes
ION E&P Advisors
UPSTREAM TECHNICAL, COMMERCIAL & STRATEGIC ADVISORY

Commercialization of capabilities
ION’s Multi-client Library
Program Assurance & Risk Mitigation
Prospectively assessment

Reservoir Characterization
Integrated offering with Imaging Services
Service business model

Host Government – License round Support

Service Model
Success Based Model
IOC Advisory – Asset commercial evaluation
Service Model
Success Based Model
Value of Integration
Aligned to Operate as a Single Integrated Business

Integrated Channel to Market Critical Domain Expertise

Geophysical Holistic Geophysical R&D

R&D Industry leading geophysical technology

Host Gov.
NOC
Assets
• Data Library
Bus. Dev • Success based Imaging Tier 1 Imaging Service
rights Global Experience
Sales Svc
• Access Rights Industry Reputation – Service Quality
with Host Gov
E&P
Operators

E&P
Advisors
E&P Perspective
Technical, Commercial & Strategic Advice across E&P Life Cycle
 Where is E&P Capital Flowing and Why?

 Value vs Volume
– Previous upturn cycle focused on volume, increasing reserves
– Next cycle expected to focus on finding best value

2050
Production Optimization
2035
 Right-size plans to cost-effectively
maximize recovery from reservoirs
 Development plans and
infrastructure
Efficient Exploration
 Quickly and cost-effectively identify
and evaluate opportunities
 Lower cost operating environments
 Refocusing portfolios to lower
break-even plays

28 Source: BP Energy Outlook (2017)

 Exploration Strategy Evolution

29 WoodMac Exploration Outlook

 Offshore Compressed Costs, Competitive to Shale on B/E Basis

Head to Head Annual Capex Comparison

North America Shale Capex Offshore Greenfield Capex
USD Billion USD Billion
150 100 50 0 0 50 100

2014

2015

2016

2017

* Does not include test activity, where well was shut-down after completion, ** Vito and Kaikas with 2016 figures, the remaining with 2017. Breakevens exclude exploration, land acquisitions and signature bonuses
30 Source: Rystad Energy NASWellCube Premium; Rystad Energy research and analysis; Company data
 Oil Company Views on Round Terms
Transparency and data availability key for licensing rounds

When participating in license rounds, how do you rank the following in terms of importance?

 Transparency in the decision-making process is the

key concern across all peer groups

 Data access is the most important to all other

company types

31 Source: Wood Mackenzie Future Exploration Survey, July 2017

 License Round Activity (2017-2019)
Flurry of licensing round launches set to continue through remainder of 2018

 ION programs relevant to 71 of 129 rounds (55%) expected to start 2017-2019

LEGEND
Rounds added since Oct. 2017
2017-19 Licensing Rounds
ION DATA LIBRARY
3D Programs
BasinSPANs

ION Opps Non Opps Data Library Coverage

60 100%
ION Related Rounds (%)
Total Number of Rounds

50 80%
40
60%
30
40%
20
10 20%
0 0%
2017 2018 2019

32
 Themes for 2018 and Beyond ?

What to Expect

 Operators shifting focus to replenishing reserves now cash is

Average reserve life (years)
under control
13
 Acreage reloading where access terms are favorable

12
 Fewer basins/plays that will work based on longer term
economics and fewer explorers

 Increasing acceptance of multi-client for exploration needs

11
 Increased adoption of new technology for production
optimization / development

10
2006 07 08 09 10 11 12 13 14 15 16

33 *Statoil, ENI, BP, Total, Shell, Repsol, Chevron, Exxon, Conoco. Source: Company data, SB1 Markets, Factset
 Key Strategies to Lead the Recovery & Outperform the Market
Next Cycle Focused on Value vs Volume (Reserves Replacement)

Offerings aligned to market drivers in asset light business models that deliver high returns

Efficient Competition for Production Operations

exploration E&P capital optimization optimization
– Offerings where capital – Opportunity for license – Enabling more rapid, – Diversify and expand
is flowing, shifting round management cost-effective delivery our technologies into
closer to the reservoir and investment of superior OBS data larger, less cyclic
– Quick, cost-effective consulting – High end imaging and adjacent markets
exploration services for reservoir
management
34
 Extracting More Value from Existing Data

New information content

New measurements
New acquisition technology/methods
Ocean Bottom Seismic

3rd Generation
Information Content

Inversion & Model Estimation

FWI
Inherent Maximum Information Content
2nd Generation
Imaging

1st Generation
Data processing

1975 2000 2025

35
 ION Transformational Workflows and Technology

Data Conditioning Imaging / Inversion New Measurements

 Closer integration between

 Improve efficiency and
throughput
 R&D in machine learning,
augmented processing and AI
 Exploiting rich information
imaging and the Oilfield to
content
drive greater value
– OBS measurements
 FWI to invert for rock
– Acquisition methodologies
properties

Cloud adoption

36
3D Reimaging Activity

 Large-scale multi-client reimaging

– Exceptionally high quality
– Fast delivery Mexico
– Compelling 150,000 km2
Campeche and Ridges
 3 proprietary ingredients
– Geophysical technology
– Efficient platform
proprietary imaging software/infrastructure
– Experience
Geological knowledge and in-basin experience
Brazil
62,000 km2
Campos basin

37
 Driving Value Creation

R&D Experience Business Compelling

Input Data
Technology Model product
2,150 Thousands
TBytes of Data
+ 6 Year
Development
Proprietary Advanced
+ Man Years
Experience + Multi-client
Business model = 210,000 sq km
High quality 3D

600+ projects Significant reserve

Imaging Platform potential

– 10 reimaging programs – Leading geophysical – Global experience base

technology in all major basins
– Mexico/Brazil
– Proprietary – Specific history in Brazil
– 210,000 sq km /Mexico
differentiated platform
– Reduced cycle time
5X – 10X

38 Source: Icons Courtesy FreePik

License Round Support

Prospectivity Index
Fiscal Attractiveness Index
 Integrated Technical, Commercial and Strategic Approach

 Enables Host Governments to align resource prospectivity with fiscal terms

 The result: maximum investor interest; maximum value preservation for the
State
ION Activity
 Business models 2 Projects completed
1 Significant project with >50 Marginal field complete
– Service model scope economic evaluations

– Success-based commercial models 1 Engagement completed

1 Multi-Year/Multi license round engagement
Real-estate Analogy sharing in value created awarded activity not yet underway
 Program Portfolio Evolution

8 100 12
7

Number of Programs

In Development
80 10 3D Repro

Number of Programs
Investment Multiple (IM)

6
8 2D Repro
5 60
6 SPAN
4 40
4 3D Repro

In Progress
3
20 2D Repro
2 2
SPAN
1 - 0
SPAN 2D 3D License 2015 2016 2017 2018
Reimage Reimage Round
Advisory
Multiple target range

Multiple life to date – Increased velocity of new Multi-client program activity ‘16 - ’18
Multiple Projected for Investment to date – Weighted towards higher return re-imaging programs
Number of Programs – Programs are aligned where capital is flowing

40
 Imaging Services Strategic Focus
Investment Multiples
Strategic
Proprietary Imaging Customer / Problem / Technology Dev opportunity
SPAN Basin
Building / Expanding relevant experience
2D Repro
OBN
3D Repro
Expanding capabilities
License Round Advisory

0 1 2 3 4 5 6 7 8 9 10
FWI / Inversion based flows
Cost Stay on the cutting edge of this development

Strategic Basin OBN FWI

 Strategic focus in contract market
Backlog 98% 85% 40% 72%
– Sharpen tools - drive technology projects
– Production development projects 2018 Targets 87% 83% 14% 50%
– Reinforce brand Total 94% 84% 29% 62%

41
Financial Evolution

E&P Technology and Services

Revenue and Margin Trend
180 45%
160 40%
140 35%  Improving margins and revenue
120 30%  Impact of strategic program investments ‘15-’18
100 25%
80 20%  Evolution of program portfolio to higher return programs
60 15%  Focused allocation of Imaging Services capacity
40 10% – Strategic proprietary projects
20 5% – Scalable multi-client reimaging programs
- 0%
2016 2017  Exceptionally well positioned to lead in the recovery
Revenue ($M) Gross Profit ($M) Gross Margin
Questions and Answers

Ken Williamson
EVP & COO, E&P
Technology and Services
Agenda Agenda
8:30 - 9:05 ION Overview
9:05 - 9:50 E&P Technology & Services
9:50 - 10:00 Break
10:00 - 10:45 Operations Optimization
10:45 - 11:20 Ocean Bottom Integrated Technologies
Agenda Agenda
8:30 - 9:05 ION Overview
9:05 - 9:50 E&P Technology & Services
9:50 - 10:00 Break
10:00 - 10:45 Operations Optimization
10:45 - 11:20 Ocean Bottom Integrated Technologies

Chris Usher
EVP & COO, Operations
Optimization
 Operations Optimization

Ocean Bottom
E&P Technology & Services Operations Optimization
Integrated Technologies
Develop mission-critical subscription offerings and engineering
services that enable operational control and optimization.

Software Devices Offshore Engineering & Consulting Services

Leverage leading data integration Develop intelligent devices controlled by Our experts deliver optimization services,
platform to control and optimize our software to optimize operations. maintenance upgrades, and training that
operations in real-time. assures customer intimacy.
46
 50 Years of Innovation in Sensing, Positioning & Navigation
Market Leaders in our Space

47
 Broad Core Competencies to Develop Cutting-edge Technology

Sensors Acoustics Navigation

Engineering Telemetry

Data Management Mathematics Fluid Dynamics

48
 Key Strategies to Lead the Recovery & Outperform the Market
Next Cycle Focused on Value vs Volume (Reserves Replacement)

Offerings aligned to market drivers in asset light business models that deliver high returns

Efficient Competition for Production Operations

exploration E&P capital optimization optimization
– Offerings where capital – Opportunity for license – Enabling more rapid, – Diversify and expand
is flowing, shifting round management cost-effective delivery our technologies into
closer to the reservoir and investment of superior OBS data larger, less cyclic
– Quick, cost-effective consulting – High end imaging and adjacent markets
exploration services for reservoir
management
49
 Diversifying into Broader Maritime Applications
Maintain leadership in Core, Drive Quality Revenues in Adjacent Markets

Leverage technology & Serve unmet needs in new

core competencies and growing markets

Common UI,
GIS &
Offshore Wind Marine Robotics
Reporting
Farms

Marlin
Inside

Software E&P Supply Vessels Devices & Software

26
26

Diversification

Software
Harbor Security & Military AUVs
Port Management

Devices & Software Devices & Software

50 Source: Icons Courtesy FreePik

 Digitalization Wave Beginning to Transform Maritime Operations
In Both Core and Adjacent Markets

 Cloud computing
– Linking onshore and offshore
stakeholders

 Artificial intelligence
– Autonomous vessels
– De-manning operations

 Internet of Things
– An explosion of sensors drives
IoT, focusing on data analytics

51
 Digitalization Shaping Modern Business
Enabling a “Data Analytics Maturity Model” Offshore

Integrated Activity Planning

Geophysical/Geotechnical Operations
Offshore Logistics and Supply Vessels
Emergency Response
52 Source: Kongsberg SIMOPS
 Operations Optimization: Quality of Revenue
Market Recovery in Core, Additional Revenue Streams from Adjacent Markets

Software Revenue ($M) Devices Revenue ($M) Offshore Services Revenue ($M)
100 5
40
30 75 4

20 3
50
10 2
25
0 1
FY14 FY15 FY16 FY17 0 0
Marlin Software Core Software FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17

Software Devices Offshore Services

• Recurring, premium
subscription revenues
• Leading seismic market share
• Marlin growth engine, with
larger addressable market
• Stable cash generation from
large installed base
• Leading seismic market share
• SailWing growth business
• Higher value device markets
• High customer intimacy and
innovation/commercialization
engine, driving subscription
revenues and installed base

53
 Software
Leading Data Integration Platform Controls and Optimizes Operations in Real-time

 Mission-critical software for optimizing offshore operations,

historically focused on seismic operations
 New Cloud-enabled architecture enables value-add technology
roadmaps to maintain leading seismic market share

 Introduced new Marlin software, leveraging ION’s industry-

leading data management platform, to optimize offshore
operations within the wider project theater, for a variety of
markets
54
 Fantastic Customer Feedback in our Core Markets

“Marlin improved visualization of the entire operation and

we developed the confidence to operate within congested
oilfield infrastructure beyond daylight hours, increasing
production and reducing the project duration for our client.”

“ION detected multiple intrusions during this project, all of

which were identified, tracked and managed to reduce the
overall survey duration. It is clear that both ION services
personnel and Marlin contributed significantly to the
efficient and safe operation of this challenging project.”

“The ION Specialist was very proactive using Marlin for

planning suggestions that allowed us to remove a number
of transits from the project. This service was very
important for our operation leading to lots of time saved.”

55
 Marlin: Air Traffic Control for Marine Environment

 Identified market gap for a solution that consolidates

all relevant data required to make complex offshore
operational decisions in real-time Real-time Operations
Optimization Market
 Allows multiple stakeholders onshore and offshore
to share plans, real-time situations, and optimize co-
located operations
$500M
$40M $100M Other Offshore
• Launched Seismic Energy Applications
Command SIMOPS &
enterprise Shipping
& Control logistics
software with Military
higher margins & Wind
long-term leases Autonomous
vehicles
• Opportunity for
diversification

56 Image courtesy of Deepwater Wind

 Industry-Leading, Scalable Software Platform

Diverse Market
Applications
E&P Offshore Wind Port Mgmt Harbor Security Shipping
Marlin Software:
Enhanced, real-time Proprietary Application Layer
situational awareness
to optimize decisions Integrated GIS Visualization Layer
• Cloud-based
• Dashboards
• Playback Proprietary Data Management Platform
• Open platform…

Diverse Data Inputs GPS/AIS Environmental data Radar Operational plans GIS
57 Source: Icons Courtesy FreePik
 The Marlin Platform
Global Oversight to “Street Level” Views and Diagnostics

Gantt Chart w/ Map

 Time-sliding
 Cloud enabled, multi-user

Inputs
 Moving objects via AIS/GPS
 Relevant IoT Data
 Weather / Waves & Currents
 GIS remote sensing
 Regulatory Rules
 Operational plans & observations

Output
 KPI Dashboards
 Route Optimization
 Audit/Playback

58
 Adjacent Market Prospects & Prioritization
Focus Other
Offshore Wind The OECD predicted in 2016 that offshore Marine Robotics
Farms wind power will grow to 8% of ocean
economy by 2030, adding $230B of value.1

Software Devices & Software

Harbor Security & The maritime security market was Military AUVs
Port Management valued at $15B in 2015, and it is
projected to reach USD 21B by 2020 at a
CAGR of 6.72%.2

Devices & Software Devices & Software

E&P Supply Vessels The global offshore support vessel Ice Management
market is estimated to be $16B in 2017,
and is expected to grow at a CAGR of
4.92%, from 2017 to 2021.3

Software Software

59 Sources: 1The Ocean Economy in 2030, OECD Publishing, Paris; 2 Oil&Gas360, March 30, 2017; 3 BusinessWIre, November 9, 2017; Icons courtesy FreePik
 Devices & Offshore Services

 Real-time positioning and control of in-water  Offshore engineering and consulting services
devices for marine data collection to optimize E&P offshore projects
– Decades of Positioning leadership in seismic – Working onshore and offshore to plan and
– Poised to change towing paradigms execute complex operations for customers
– Adjacent Market traction with existing offerings – Customizing our technology, and innovating to
fill gaps in existing workflows
Controlling
operations as big
as the Big Apple
Largest moving
objects on the
planet

1.7 x 10 km
deployment
overlaid on
Manhattan
60
 SailWing vs. Traditional Diverters
Towing Energy Sources

SailWing Metal Paravane

Allows closer passes.

Eliminates drag from tag lines and

spreader ropes.

Enables individual array recovery.

Reduces time to repair sources.
61
 Towing Optimization
Patented SailWing Technology

ION Command
& Control Software

Device float

Actuator
source positioning

SailWing
innovative foil diverter

Operational Efficiency Increased Precision Improved HSEQ

• Reduced drag & fuel
• Faster tow and turn times
• Each array is a “separate tow”
• Less equipment wear
• Maintain planned positions
• Steer array/device
• Improve array stability
• Closer passes to
infrastructure
• Simplified deployment and
recovery (no cranes/winches)
• Less bulky equipment to
handle
• More space on back deck

62
 Adjacent Market Use Cases
Smart and Elegant Diverting, Control

Deep Ocean Mapping

SonoBouy Control

Side Scan Catenary &

Depressor Control…

Deep Cable Lay Control

ROV Catenary Control

Commercial Fishing,
Trawl Control…

63
 ION’s 321 Optical Digital Compass
Patented and Proven Technology

3.5”

321 Wireless Interface

Can eliminate the need for in-theater ION’s Magnetic Observatory / Heading
calibration with proper integration Calibration facility

• Installed base of more than 70,000 units • Magnetically quiet

• Stable, accurate and reliable heading • Daily site qualification
measurements • Stringent test and verification specs
• Proven worldwide, all latitudes • Only 3 like it in US

64
 Example Use Case
Improved Navigation Performance in GPS-Deprived Environments

3 AXIS
SERVO
SENSOR

CAL
STAND

BILLINGSLEY
CLOSED-LOOP FEEDBACK SYSTEM
HELMHOLTZ CONTROLLER

PROCESS

ENCODER FEEDBACK

ION can simulate complete instrument Typically <1% location error in GPS-
operation in any magnetic environment deprived environments over long ranges
worldwide in our Helmholtz lab

0.02km

Φ
END 2.0km START

65
 Adjacent Market Use Cases
Long Underwater Missions, Improved Navigation

Long Mission AUV’s

Acoustic Doppler
Current Measurement
Buoys…

3 AXIS
Extended Mission
SERVO
SENSOR

Wave-gliders
CAL
STAND

BILLINGSLEY
CLOSED-LOOP FEEDBACK SYSTEM
HELMHOLTZ CONTROLLER

PROCESS

ENCODER FEEDBACK

New Underwater
Acoustic Comms
Protocols…

66
 Adjacent Market Prospects & Prioritization
Focus

Marine Robotics The total Marine Robotics market is estimated to be

$4B, which includes ROV’s, AUVs and ASVs, with O&G
comprising 50% and military 25% of that market, which
has CAGR in excess of 20% through 2019.1

Devices & Software

Military AUVs The military segment (73%) of the AUV market is

estimated to be $1.3B by 2019. This newer segment is
cannibalizing the ROV market, exhibiting double digit
CAGR.2

Devices & Software

67 Sources: 1 3cognito Consulting; Icons courtesy FreePik

 Strategic Ambitions

 Retain market leadership in core businesses

 Well positioned to participate in the maritime digital transformation
 Will exploit the most lucrative niches in multiple new markets
 Employ recurring revenue commercial models
 One third of Operations Optimization revenue in 5 years from adjacent markets

Software Devices Offshore Engineering & Consulting Services

68
Agenda Agenda
8:30 - 9:05 ION Overview
9:05 - 9:50 E&P Technology & Services
9:50 - 10:00 Break
10:00 - 10:45 Operations Optimization
10:45 - 11:20 Ocean Bottom Integrated Technologies

Colin Hulme
EVP, Strategic Marketing and
New Technologies
 Key Strategies to Lead the Recovery & Outperform the Market
Next Cycle Focused on Value vs Volume (Reserves Replacement)

Offerings aligned to market drivers in asset light business models that deliver high returns

Efficient Competition for Production Operations

exploration E&P capital optimization optimization
– Offerings where capital – Opportunity for license – Enabling more rapid, – Diversify and expand
is flowing, shifting round management cost-effective delivery our technologies into
closer to the reservoir and investment of superior OBS data larger, less cyclic
– Quick, cost-effective consulting – High end imaging and adjacent markets
exploration services for reservoir
management
70
 Marine Seismic Acquisition Methods

Towed Streamer Ocean Bottom

71
 OBS Market Update

OBS Spend & OBS Market Share

1400 25%

1200
20%
OBS spend ($ Millions)

OBS market share

1000

800 15%
46%

600 10%
70%
400
5%
200

0 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E

OBS Spend OBS Market share

• OBS returns to ($1B) pre-downturn levels in 2018

• Continue market share growth as OBS becomes reservoir management tool of choice

72 Source: Rystad & OceanGeo

 What is driving OBS Demand Growth?

OBS cost reduction

enabled by technology
turns…

OBS Technology Turns

Optimal data for FWI
Better data – quieter environment, richer data Market share grows with cost reductions
enabler for a disruption in seismic

Oil saturation GeoxPro,

1996 1999 2003 2005

Becoming tool of choice for 4D Obstructed Production Fields

Illumination – solving streamer limitations
& reservoir management Only practical solution

73
 OBS Demand Growth into New Market Segments
Driven By Technology Turn

OBS 4D Seismic
OBS Future (Full Azimuth / Obstructed) (Towed Streamer
or OBS)
Increasing Cost

OBS Future

OBS Future
Production 3D OBS Technology Turns
WAZ / RAZ / Coil 3D
 Increasing efficiency
– Reducing cost
Exploration 3D
 Faster data delivery
Towed Streamer
Exploration 2D – Enabling improved
reservoir decisions
Ocean Bottom
Regional 2D

FIRST OIL

ABANDON
LEASE

Frontier
DRILL

Exploration Appraisal Development Production

Exploration

Risk Knowledge

E&P Lifecycle
74
 Ocean Bottom Crews – Supply Side
We are in a technology turn

OBS Crew Count

 New entrants and next generation crews 15
Overcapacity Balance ? ?
have risk of over-supply
– Contractors taking increased risks to win bids
10
 E&P procurement favors low cost
– Race for crew efficiency

 Next generation crews represent increased 5

opportunity for 4Sea components for driving

efficiency
0
2016 2017 2018e 2019e 2020e
Legacy Crews Next Generation

75
Next Generation First Fully Integrated Nodal System: 4Sea
Improving the business relevance of OBS data to E&P companies

 Reducing QHSE risk

– Automation of tasks
– Reducing crew personnel size
– De-manning the back deck

 Improving economics
– Big gains in operational efficiency
– Commercially viable in more fields

 Increasing value of OBS data

– Deliver data rapidly into companies workflow
and decision decisions
 4Sea: A step change in:
– Cost and productivity
– Turnaround time
– Geophysical integrity
 Next Generation First Fully Integrated Nodal System: 4Sea
Smarter Alternative Approaches to Commercialization

Pursuing 2 asset light business models to

participate in this growing market with
value-based pricing models

1. Make individual components available more

broadly to all OBS service providers

2. License the right to manufacture and use the

system to a service provider, i.e. royalty
stream, de-risking capex and manufacturing

77
Next Generation First Fully Integrated Nodal System: 4Sea
Leveraging ION’s Core Competencies

 Operations Optimization
– Industry-leading Command & Control system

 Enabler for integrated system efficiencies

– Core for integrated system
– Single system to manage all operational aspects
– Ensuring data integrity
– Foundation for paradigm shift in turnaround
Next Generation First Fully Integrated Nodal System: 4Sea
Leveraging ION’s Core Competencies

 Operations Optimization
– Industry-leading Command & Control system
– Marlin situational awareness & optimization
– Software platform for additional functionality

 Survey optimization & efficiency

– From planning through execution
– Rapid simulation of scenarios to optimize
financial, technical and timing
– Situational awareness & execution with other
field wide activities
Next Generation First Fully Integrated Nodal System: 4Sea
Leveraging ION’s Core Competencies

 E&P Technology & Services

– Transformational imaging technologies
– OBS imaging experience in most global basins
– Dedicated imaging R&D team

 Rapid data assurance & QC delivery

– Step change in quality assurance and control
– Reduction of field personnel

 Breaking the data turnaround paradigm

– Enable rapid delivery of data in E&P companies
decision workflows
Next Generation First Fully Integrated Nodal System: 4Sea
Leveraging ION’s Core Competencies

 Ocean Bottom Integrated Technologies

– 50 years of technology innovation
– 15 years of OBS equipment manufacturing
– 10 years of global OBS operational experience
– Dedicated operations and R&D teams

 Excellent QHSE performance

– De-manning of the back deck
– Automation of tasks
– Deployment & retrieval system

 Higher productivity / reduced project duration

– Deployment and retrieval system, optimized vessel
utilization, Sailwing
 4Sea: Sample Component Value Propositions

82
 Ocean Bottom Integrated Technologies

Ocean Bottom
E&P Technology & Services Operations Optimization
Integrated Technologies

 Participate in growing,
production-focused $1B ocean
Integrate ION’s advanced bottom seismic (OBS) market
technologies to accelerate OBS
data capture and delivery for
 Expand market share through
enhanced reservoir decision- technology differentiation
making, and improved returns.
 Deliver step change in image
quality, cost, QHSE and
turnaround time

83
Questions and Answers

Colin Hulme
EVP, Strategic Marketing and
New Technologies
 Exciting Opportunities in Data-Driven Decision Optimization

Outperformed sector: Transformed business: Creative business models:

Acted quickly in downturn, Moved closer to the reservoir, Scalable with high quality
now leading the recovery diversifying into adjacent markets revenues in growth areas

ION >> Powering data-driven decisions

85
 ION FY 2017 Financial Highlights

Revenues $M Backlog $M  Revenues of $198M

$200
$173
$198 $45
– Up 14% vs FY-16; or up 45% excluding Ocean
$150 $40 $39 Bottom Integrated Technologies
$30
$100
$34
– YoY improvements driven by continued sales of 3D
multi-client reimaging programs and newly launched
$50 $15
programs
$-
FY-16 FY-17
E&P T&S Operations Optimization
$-
Q4-16 Q3-17 Q4-17
 Net loss of ($30M) in FY-17 vs ($65M) FY-16
Ocean Bottom Integrated Technologies

 Adjusted net loss of ($19M) in FY-17 vs

Adjusted EPS Adjusted EBITDA $M
($66M) FY-16
$- $75
(1.61)
$64  Adjusted EPS of ($1.61) in FY-17 vs ($5.80)
$50
$(2.00)
FY-16
 Adjusted EBITDA of $64M vs $11M in FY-16
$(4.00) $25

(5.80)
$11
$0
$(6.00)
FY-16 FY-17 FY-16 FY-17  Continued strong backlog of $39M at Dec-
17, vs $40M at Sep-17 and $34M at Dec-16
87 Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. See the appendix for reconciliations to their comparable GAAP measures.
 ION Q1-18 Financial Highlights

Revenue $M Backlog $M
$40 $40
 Revenues up 3% vs Q1-17
$35

$33 $34 $25

– E&P Technology & Services up 5%
$20
$20 – Operations Optimization down 3%
– No Ocean Bottom Integrated Technologies revenues
$-
Q1-17 Q1-18 $-

E&P T&S Operations Optimization

Q1-17 Q1-18  Backlog grew 40% to $35M vs Q1-17
Ocean Bottom Integrated Technologies

 Net Loss of $18M vs $23M one year ago

Adjusted EPS Adjusted EBITDA $M  Adjusted Net Loss of $17M vs $18M in Q1-17
$- $1
 Adjusted EPS of $(1.34) vs $(1.55) one year ago
$(0.50)

$(1.00)
(1.34)
$0
$(45)k
$128k  Adjusted EBITDA of $128k vs $(45k) in prior year
(1.55)
$(1.50) – 7th consecutive quarter of break-even or better
-$1
$(2.00) Q1-17 Q1-18
Adjusted EBITDA
Q1-17 Q1-18

88 Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. See the appendix for reconciliations to their comparable GAAP measures.
 ION Financial Overview
Cash Flow $M

FY-16 FY-17  Net cash flows from operations of $28M vs

Net income (loss) $ (64.7) $ (29.4)
$2M in FY-16
Non-cash adjustments 58.8 68.5
Working capital 7.5 (11.1)  Total net cash flows of $($1M) vs ($32M) in
Cash from operations 1.6 28.0 FY-16
Multi-client investment (14.9) (23.7)
PP&E capital expenditures (1.5) (1.1)  Increase in receivables; a balance of $57M at
Other investing activities 2.7 - Dec-17, up $23M at Dec-16
Net cash from investing activities (13.6) (24.8)
Payment to repurchase bonds (15.0) -  Total liquidity (cash and revolver availability) of
Costs associated with issuance of debt (6.7) (0.1) $68M at Dec-17
Repurchase of common stock (1.0) -
Borrowings under revolving credit facility 10.0 -  Liquidity up $15M from Sep-17
Other financing activities (8.9) (3.5)
Net cash from financing activities (21.6) (3.6)
 Cash balance of $42M, excluding borrowings
Effect of change on f/x 1.4 (0.3) under credit facility
Net Change in Cash (32.3) (0.6)
Cash & cash equiv. (beg. of period) 84.9 52.7
Cash & cash equiv. (end of period) $ 52.7 $ 52.1

89
 ION Financial Overview
Cash Flow $M

 Net cash flows from operations of $1M in Q1-18

Q1-17 Q1-18
vs $2M in prior year
Net loss $ (23.0) $ (18.3)
Non-cash adjustments 17.7 13.0  Total net cash flows (including investing and
Working capital 7.2 5.9 financing activities) of $(1M) in Q1-18 vs $(3M) in
Net cash from operations 1.8 0.6 Q1-17
Multi-client investment (3.4) (9.2) – $47M net proceeds from equity offering
PP&E capital expenditures (0.0) (0.1) – Proceeds used to retire the $28.5M of third lien notes prior to
Net cash from investing activities (3.4) (9.3) their maturity in May 2018
Net proceeds form issuance of stock - 47.2 – Repaid $10M outstanding under our credit facility
Payments of debt (1.7) (29.1)
 If warrants exercised in full, ~$61M of additional
Payments under revolving line of credit - (10.0)
Other financing activities (0.3) (0.6)
proceeds by March 2019
Net cash from financing activities (2.0) 7.5  Liquidity increased to $75M at Q1-18, consisting
Effect of change on f/x 0.4 (0.1) of $51M cash and $24M of available and undrawn
Net change in cash (3.2) (1.3) borrowing capacity under credit facility
Cash & restricted cash (beg. of period) 53.4 52.4
 Long-term debt of $121M due Dec. 2021
Cash & restricted cash (end of period) $ 50.3 $ 51.1
 Net debt of $70M, Leverage position ~1X trailing
12 months Adjusted EBITDA
90
 Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA (in thousands)

Twelve Months Ended December 31, Three Months Ended March 31,
2017 2016 2018 2017

Net loss $ (29,377) $ (64,727) $ (18,339) $ (23,026)

Interest expense, net 16,709 18,485 3,836 4,464
Income tax expense (benefit) 24 4,421 1,072 (418)
Depreciation and amortization expense 65,998 55,310 12,316 13,935
Accrual (reduction) of loss contingency related to legal
proceedings 5,000 (1,168) — 5,000
Loss on bond exchange — 2,182 — —
Recovery of INOVA bad debts — (3,983) — —
Stock appreciation rights expense 6,141 — 1,243 —
Adjusted EBITDA $ 64,495 $ 10,520 $ 128 $ (45)

Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles and should not be
considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with generally
accepted accounting principles or as a measure of profitability or liquidity. Adjusted EBITDA may not be comparable to other similarly
titled measures of other companies. The Company has included Adjusted EBITDA as a supplemental disclosure because its
management believes that Adjusted EBITDA provides investors a helpful measure for comparing its operating performance with the
performance of other companies that have different financing and capital structures or tax rates.

91
 Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income (Loss) (in thousands)

Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Three Months Ended March 31, 2018 Three Months Ended March 31, 2017
Special Special Special Special
As Reported Items As Adjusted As Reported Items As Adjusted As Reported Items As Adjusted As Reported Items As Adjusted
Net revenues $ 197,554 $ — $ 197,554 $ 172,808 $ — $ 172,808 Net revenues $ 33,508 $ — $ 33,508 $ 32,556 $ — $ 32,556
Cost of sales 121,915 — 121,915 136,776 (1,077) (3)
135,699 Cost of sales 26,655 — 26,655 26,455 — 26,455
Gross profit 75,639 — 75,639 36,032 1,077 37,109 Gross profit 6,853 — 6,853 6,101 — 6,101
Operating expenses 84,338 (6,141) (1)
78,197 79,203 (932) (3)
78,271 Operating expenses 19,493 (1,243) (1)
18,250 20,013 — 20,013
Loss from operations (8,699) 6,141 (2,558) (43,171) 2,009 (41,162) Loss from operations (12,640) 1,243 (11,397) (13,912) — (13,912)
Interest expense, net (16,709) — (16,709) (18,485) — (18,485) Interest expense, net (3,836) — (3,836) (4,464) — (4,464)
Other income (expense), net (3,945) 5,000 (2)
1,055 1,350 (2,969) (4)
(1,619) Other expense, net (791) — (791) (5,068) 5,000 (2)
(68)
Income tax expense 24 — 24 4,421 — 4,421 Income tax expense (benefit) 1,072 — 1,072 (418) (418)
Net loss (29,377) 11,141 (18,236) (64,727) (960) (65,687) Net loss (18,339) 1,243 (17,096) (23,026) 5,000 (18,026)
Net income attributable to Net income attributable to
noncontrolling interests (865) — (865) (421) — (421) noncontrolling interest (87) — (87) (316) — (316)
Net loss applicable to ION $ (30,242) $ 11,141 $ (19,101) $ (65,148) $ (960) $ (66,108) Net loss attributable to ION $ (18,426) $ 1,243 $ (17,183) $ (23,342) $ 5,000 $ (18,342)
Net loss per share: Net loss per share:
Basic $ (2.55) $ (1.61) $ (5.71) $ (5.80) Basic $ (1.44) $ (1.34) $ (1.98) $ (1.55)
Diluted $ (2.55) $ (1.61) $ (5.71) $ (5.80) Diluted $ (1.44) $ (1.34) $ (1.98) $ (1.55)

The financial results are reported in accordance with GAAP. However, management believes that certain non-GAAP performance measures may
provide users of this financial information, additional meaningful comparisons between current results and results in prior operating periods. This
adjusted income (loss) amount is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for
income (loss) from operations, net income (loss) or other income data prepared in accordance with GAAP.

(1) Represents stock appreciation right awards expense

(2) Represents an accrual related to the WesternGeco legal contingency during the first quarter 2017
(3) Represents severance charges during the second quarter 2016
(4) Represents $1.2 million reduction in the WesternGeco legal contingency and $4.0 million recovery of INOVA bad debts, partially offset by a $2.2
million loss on extinguishment of debt associated with the Company's second quarter 2016 bond exchange

92
 Calculation of Return on Tangible Capital
(in thousands)
Twelve Months Ended
December 31, 2017
Income from operations before DD&A, after investments in Data Library and PP&E
Loss from operations $ (8,699)
Add: Depreciation and amortization expense 65,998
Less: Investment in mult-client data library 23,710
Less: Purchase of property, plant and equipment 1,063
Income from operations before DD&A, after investments in Data Library and PP&E $ 32,526

Tangible capital:
Total assets $ 301,069
Less: Cash and cash equivalents 52,056
Less: Goodwill 24,089
Less: Intangible assets, net 1,666
Net tangible assets $ 223,258

Total current liabilities $ 139,617

Less: Current maturities of long-term debt 40,024
Net current liabilities $ 99,593
Net tangible capital $ 123,665

Return on tangible capital 26%

To calculate Return on Tangible Capital, income (loss) from operations is adjusted for depreciation and amortization expense, then
reduced by investments in multi-client data library and purchases of property, plant and equipment. This adjusted income (loss) from
operations is applied to net tangible capital. Net tangible capital is calculated as total assets less cash and cash equivalents, goodwill
and intangible assets (net), net of current liabilities excluding current maturities of long-term debt.
93