Pason Systems Inc. · TSX:PSI
Pason Systems — Sidoti Small Cap Conference June 2023
20 slides from Pason Systems's conference presentation, June 2023
Slide 1: Sidoti Small Cap Conference Investor Presentation
June 2023 Sidoti Small Cap Conference 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: 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 4
Slide 5: 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 5
Slide 6: 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 7: Global Reach and Market Positioning
Global Reach and Market Positioning 686 84% of Employees revenue from North America 1600+ Unique rigs serviced in 2022 16% of revenue from international markets ~9000 DataHub users As at and for the twelve months ended December 31, 2022 Page 7
Slide 8: 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 9: 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 20 of this Investor Presentation.
Slide 10: 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 20 of this Investor Presentation. Free Cash Flow is adjusted for $117.
Slide 11: Commitment to Shareholder Returns
Commitment to Shareholder Returns Dividends and Share Repurchases Dividends Per Share in CAD millions CAD/share Demonstrated commitment to shareholder returns through share repurchases and dividends Page 11
Slide 12: First Quarter 2023 Highlights
First Quarter 2023 Highlights Record quarterly $52 MILLION Continued North American $98 MILLION strength in Revenue per ADJUSTED IN REVENUE industry activity Industry Day of EBITDA $922 $35 MILLION $185M IN FREE CASH CASH WITH Adjusted EBITDA Well positioned FLOW NO DEBT margin above 50% balance she
Slide 13: Delivering on Long Term Strategy
Delivering on Long Term Strategy $ 3. Establish pillars of growth beyond oil and gas 2. Enter adjacent oil and gas spaces 1. Defend and grow the core drilling- related business Time and Risk Page 13
Slide 14: 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 675 rigs 4,834 DUCs 12.4 million barrels
Slide 15: Well-Positioned for Growth
Well-Positioned for Growth Favourable Macro Trends… …Coupled with Organic Opportunities ▪ Drilling activity based on global energy ▪ Product adoption, realized pricing and market supply/demand share growth ▪ Use of data for automation and ▪ New technology development analytics ▪ Completions activity
Slide 16: 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 16
Slide 17: 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 17
Slide 18: Appendix
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Slide 19: Historical Financial Information
Historical Financial Information $CAD 000s 2017 2018 2019 2020 2021 2022 Revenue 245,643 306,393 295,642 156,636 206,686 334,998 1 Adjusted EBITDA 98,224 145,987 129,644 39,540 72,520 159,510 as a % of revenue 40% 48% 44% 25% 35% 48% Investments in R&D and IT 2 27,615 31,462 32,164 27,468 32,903 38,
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation $CAD 000s 2017 2018 2019 2020 2021 2022 Net income (loss) 25,190 62,944 53,803 5,134 31,925 105,726 Add: Income taxes 14,030 29,158 20,193 4,864 11,738 33,405 Depreciation and amortization 45,681 34,855 40,830 34,417 25,689 20,842 Stock-based compensation 11,762 12,313 10,840
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