Slide 1: Investor Presentation
April 2021 Investor Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” and/or “forward-looking information” under applicable securities laws (collectively referred to as “forward-looking statements”). All statements other than statements of historical facts contained in this presentation
Slide 3: Overview of Pason
Overview of Pason Leading global provider of end-to-end drilling data solutions INNOVATIVE 40+ years of distinctive technology, support and service capabilities High barriers to entry driven by scope of technology, service intensity and required scale Strong cash-generating capability with high oper
Slide 4: Experienced and Diverse Board of Directors
Experienced and Diverse Board of Directors Marcel Kessler* T. Jay Collins Jon Faber* Non-Executive Chair Chair, Compensation Committee President & Chief Executive Officer Joined Pason Board in 2011 Joined Pason Board in 2012 Joined Pason Board in 2020 Jim Howe Judi Hess Laura Schwinn Lead Director C
Slide 5: Strong and Committed Management Team
Strong and Committed Management Team Jon Faber Celine Boston Kevin Boston Natalie Fenez Heather Hantos President & Chief Executive Officer Chief Financial Officer VP, Commercial VP, Legal & Corporate Secretary VP, Human Resources With Pason since 2014 With Pason since 2020 With Pason since 2010 With
Slide 6: The Data Behind the Drilling Industry
The Data Behind the Drilling Industry Capture Aggregate Display Transmit Store Visualize Leverage Managing end-to-end drilling data Enabling customer Automation Safety Collaboration Reporting Analytics priorities Real-Time Decision Making Page 6
Slide 7: Superior Service Model
Superior Service Model Customer Support Service Phone Hardware Rig Software Email Installation Office Communications Chat Monitoring Analytics Third Party Field Tech Real Time Advice Page 7
Slide 8: The Intelligence Layer in the Solar + Energy Storage Industry
The Intelligence Layer in the Solar + Energy Storage Industry Model ETB Developer the site Review energy costs Analyze Incorporate PV Create a proforma and rate switch incentives generation cash flow model scenarios Control Acumen EMSTM the assets Demand Charge Time-of-Use Solar Manual and Critical
Slide 9: Global Reach and Market Positioning
Global Reach and Market Positioning 590 86% of Employees revenue from North America 1452 Unique rigs serviced in 2020 14% of revenue from international markets 9000+ DataHub users Page 9
Slide 10: Leading Indicators of US Drilling Activity
Leading Indicators of US Drilling Activity Long Term Global Energy Demand Short Term Global Crude Oil Demand in quadrillions of British thermal units in millions of barrels per day Hydrocarbons continue to be an important part of global demand growth for energy US Crude Oil Production US Drilled & U
Slide 11: Historical Revenue Performance
Historical Revenue Performance North American Land Rig Count vs. Pason Revenue North American Revenue per Industry Day in CAD Consolidated revenue is highly correlated to the North American land rig count, while Revenue per Industry Day has grown steadily through industry cycles Source: Baker Hughes
Slide 12: Free Cash Flow Generation
Free Cash Flow Generation Adjusted EBITDA Free Cash Flow in CAD millions in CAD millions Significant operating leverage drives attractive margins and free cash flow during periods of increasing drilling activity Adjusted EBITDA and Free Cash Flow are defined in Pason’s Management Discussion & Analys
Slide 13: Capital Allocation
Capital Allocation Capital Expenditures Dividends and Share Repurchases in CAD millions in CAD millions 140 120 100 80 60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dividends Share Repurchases Decreasing capital intensity supports the ability to return capital to shareholders through
Slide 14: First Quarter 2021 Highlights
First Quarter 2021 Highlights $13 MILLION $43 MILLION Continued Defended leading ADJUSTED industry activity market share IN REVENUE improvement from position in key EBITDA the lows in 2020 markets $9 MILLION $151M IN FREE CASH CASH WITH Significant FLOW NO DEBT incremental Well positioned Adjusted E
Slide 15: Well-Positioned for Growth
Well-Positioned for Growth $ 2021 PRIORITIES 3. Establish pillars of growth beyond oil and gas Energy Toolbase (ETB) 2. Enter adjacent oil and gas spaces • Fully participate in the recovery of land- Intelligent Wellhead based oil and gas drilling activity Systems (IWS) 1. Defend and grow • Further t
Slide 16: Environmental, Social & Governance
Environmental, Social & Governance ENVIRONMENTAL SOCIAL GOVERNANCE • Developing products that drive • Unique and inspiring workplace culture • Experienced, independent and increased drilling efficiency, helping with a focus on total employee well- diverse Board of Directors reduce carbon footprint b
Slide 17: Value Proposition Summary
Value Proposition Summary Clear Strong margins Well market and positioned leader free cash flow for growth generation Distinctive Outstanding technology financial position profile Innovative Profitable Responsible Page 17
Slide 18: Pason Systems contact details
Pason Systems 6130 Third Street SE Calgary, AB T2H 1K4 Canada Phone: 403.301.3400 Web: — www.pason.com Email: investorrelations@pason.com Page 18
Slide 19: Appendix
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Slide 20: Historical Financial Information
Historical Financial Information $CAD 000s 2015 2016 2017 2018 2019 2020 Revenue 285,148 160,446 245,643 306,393 295,642 156,636 1 Adjusted EBITDA 96,460 31,005 98,224 145,987 129,644 39,540 as a % of revenue 34% 19% 40% 48% 44% 25% Investments in R&D and IT 2 38,288 25,212 27,615 31,462 32,164 27,4
Slide 21: Non-IFRS Reconciliation
Non-IFRS Reconciliation $CAD 000s 2015 2016 2017 2018 2019 2020 Adjusted EBITDA Net income (loss) (14,612) (40,621) 25,190 62,944 53,803 5,134 Add: Income taxes (2,247) (17,486) 14,030 29,158 20,193 4,864 Depreciation and amortization 81,381 55,384 45,681 34,855 40,830 34,417 Stock-based compensatio