Pason Systems Inc. · TSX:PSI
Pason Systems — Investor Presentation (January 2023)
22 slides from Pason Systems's investor presentation, January 2023
Slide 1: Investor Presentation
January 2023 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, Human Resources and President & Chief Executive Officer Joined Pason Board in 2012 Compensation Committee Joined Pason Board in 2020 Joined Pason Board in 2012 Judi Hess Jim Howe Ken Mulle
Slide 5: Strong and Committed Management Team
Strong and Committed Management Team Jon Faber* Celine Boston Kevin Boston Natalie Fenez John Gurski President & Chief Executive Officer Chief Financial Officer VP, Commercial VP, Legal & Corporate Secretary President, Energy Toolbase With Pason since 2014 With Pason since 2020 With Pason since 2010
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 620 82% of Employees revenue from North America 1400+ Unique rigs serviced in 2021 18% of revenue from international markets 9000+ DataHub users As at and for the twelve months ended December 31, 2021 Page 9
Slide 10: Summary of Key Industry Metrics
Summary of Key Industry Metrics Drill Complete Produce Store Use US land rigs US drilled but US oil production US storage of crude Global oil demand uncompleted wells (millions of barrels and petroleum (“DUCs”) per days) products (billions of barrels) Current 755 rigs 4,577 DUCs 12.2 million barrels
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: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA $ Adjusted EBITDA as a % of Revenue in CAD millions Increasing revenue per day and significant operating leverage drives attractive margins on lower industry activity Adjusted EBITDA is calculated in ‘Non-GAAP Reconciliation’ on page 22 this Investor Presentation. Pag
Slide 13: Free Cash Flow Generation
Free Cash Flow Generation Capital Expenditures Free Cash Flow in CAD millions in CAD millions Lower capital intensity supports meaningful Free Cash Flow generation Free Cash Flow is calculated in ‘Non-GAAP Reconciliation’ on page 22 this Investor Presentation. Free Cash Flow is adjusted for $117.6 m
Slide 14: Commitment to Shareholder Returns
Commitment to Shareholder Returns Dividends and Share Repurchases Dividends Per Share in CAD millions CAD/share $1.00 140 $0.90 120 $0.80 100 $0.70 $0.74 $0.70 $0.68 $0.68 $0.68 $0.60 $0.64 80 $0.50 $0.53 $0.49 $0.48 60 $0.46 $0.40 $0.36 $0.30 40 $0.20 $0.20 20 $0.10 0 $0.00 2012 2013 2014 2015 2016
Slide 15: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights $46 MILLION $93 MILLION Continued Record quarterly ADJUSTED North American IN REVENUE industry activity improvement from Revenue per EBITDA Industry Day of the lows in 2020 $871 $24 MILLION $206M IN FREE CASH CASH WITH Adjusted EBITDA FLOW NO DEBT Well positioned margin
Slide 16: Well-Positioned for Growth
Well-Positioned for Growth $ 3. Establish pillars of growth beyond oil and gas Energy Toolbase (ETB) 2. Enter adjacent oil and gas spaces Intelligent Wellhead Systems (IWS) 1. Defend and grow the core business International growth New products for the drilling market • Rig site • Pricing • Back offi
Slide 17: 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 18: 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 18
Slide 19: 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 19
Slide 20: Appendix
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Slide 21: Historical Financial Information
Historical Financial Information $CAD 000s 2016 2017 2018 2019 2020 2021 Revenue 160,446 245,643 306,393 295,642 156,636 206,686 1 Adjusted EBITDA 31,005 98,224 145,987 129,644 39,540 72,520 as a % of revenue 19% 40% 48% 44% 25% 35% Investments in R&D and IT 2 25,212 27,615 31,462 32,164 27,468 32,9
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation $CAD 000s 2016 2017 2018 2019 2020 2021 Net income (loss) (40,621) 25,190 62,944 53,803 5,134 31,925 Add: Income taxes (17,486) 14,030 29,158 20,193 4,864 11,738 Depreciation and amortization 55,384 45,681 34,855 40,830 34,417 25,689 Stock-based compensation 6,195 11,762 12,3