Pason Systems Inc. · TSX:PSI
Pason Systems — Q3 2019 Earnings Presentation
25 slides from Pason Systems's earnings presentation, Nov 7, 2019
Slide 1: Third Quarter 2019 Investor Presentation
peson > Third Quarter 2019 Investor Presentation Technology * Deployed « Simply
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements and information which reflects the current view of Pason Systems Inc. ("Pason" or the "Company") with respect to future events and financial performance. Any such forward-looking statements are subject to risks and u
Slide 3: Who We Are
Who We Are Pason is a leading energy services and technology company. We develop and deliver high-value hardware, software and services, primarily for the drilling industry. Our motto is: Technology Deployed Simply YEARS OF INNOVATION 1978-2018
Slide 4: Pason Highlights
Pason Highlights ot 1 Clear Market Leader Sustained leading market positions in North America, South America, and Australia Access to the majority of land rigs and users of drilling data in the Western Hemisphere High barriers to entry for profitable operations driven by scope of technology, service
Slide 5: Overview of Pason
Overview of Pason
Slide 6: Company Snapshot
Company Snapshot HISTORY CORPORATE HEAD OFFICE US HEAD OFFICE INTERNATIONAL PRESENCE CUSTOMERS EMPLOYEES OUTSTANDING SHARES MARKET CAPITALIZATION DIVIDEND PER SHARE DIVIDEND YIELD Established 1978; public since 1996 Calgary, AB, Canada Houston, TX, United States Argentina, Australia, Bolivia, Brazil
Slide 7: - ge
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Slide 8: Strong Market Positions and Global Reach
Strong Market Positions and Global Reach * Headquarters © Regional Offices Estimated Pason EDR market penetration (percentage of active drilling rigs)
Slide 9: Overview of the Pason Data Ecosystem
Overview of the Pason Data Ecosystem e Customer staff, Field / Rig Sit ! Cloud / Offi Customer sf ield / Rig ite ex; amp loud / Office Gaya Ree Third-Party Assets ‘| Customer Back-Office Systems Products * Rig Systems — H + ERPs, Payroll Systems * Downhole Tools H ' * Real Time Operation Centers Nae
Slide 10: Superior Service Model
Superior Service Model 1,000 Active drilling rigs 45,000 DataHub (cloud) © users oe >100,000 “Calls” /year Growing Problem resolution >50% Tier 1 HelpDesk 5% Tiers 2&3 Service specialists, R&D <50% Rig visits Field Technician Proactive monitoring and problem resolution
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Slide 12: Data Capture by Pason
Data Capture by Pason eo + oil and gas wells in Pason DataHub, including more than ? 150,000 drilled since 2014 }- active drilling rigs simultaneously feeding data to the ? Pason DataHub during peak activity levels (in 2014) Categories of Data Captured Examples of Data Time/depth-based senor data: D
Slide 13: Financials
Financials
Slide 14: Financial Summary
Financial Summary TOTAL REVENUE ($MILLIONS) BY CUSTOMER TYPE Drilling Contractors & Other E&P Operators Drilling Data és REVENUE BY PRODUCT 12 MONTHS ENDED DECEMBER 31, 2018 __ Analytics & Other Drilling Intelligence Communications Mud Management and Safety REVENUE BY BUSINESS UNIT 12 MONTHS ENDED D
Slide 15: Financial Summary
Financial Summary ADJUSTED EBITDA ($MILLIONS) 2018 2or4* 2015 2016 2017 2018 * In 2014, Pason transitioned to paying dividends in the quarter in which they were declared 15
Slide 16: Financial Summary
Financial Summary REVENUE (C$ MILLIONS) UNITED STATES CANADA INTERNATIONAL
Slide 17: Financial Results YTD
Financial Results YTD in CS000s s ended See Sto), 0H Revenue United States $157,896 $148,555 +6% Canada 41,574 54,104 -23% International 27,762 21,769 +28% 227,232 224,428 +1% Adjusted EBITDA’ 102,873 106,684 “4% Net income’ 43,707 42,224 +4% O25 Capital expenditures $18,591 $15,426 +21% Dividends p
Slide 18: 16-year Track Record of Dividend Growth
16-year Track Record of Dividend Growth 18
Slide 19: Outlook
Outlook
Slide 20: Well-Positioned for Growth
Well-Positioned for Growth Revenue/ Earnings Solar and energy storage markets (ETB - Pason Power) Products for well completions and * Modelling New products for the workovers drilling market . * Control Higher product oe Investment in _ penetration * Drilling intelligence/ Intelligent * Monitoring a
Slide 21: % of Revenue
42 43 38 34 31 28 25 2012 2013 2014 2015 2016 2017 2018 % of Revenue 9% 10% 9% 13% 16% 11% 10%
Slide 22: Battery Price and Installed Battery Capacity
Battery Price and Installed Battery Capacity GWh, $/kWh 1,400 45 “Energy storage could even be bigger than automotive…but it will certainly be of a similar 40 magnitude.” 1,200 - Elon Musk, Tesla 3Q19 Earnings Call Battery Price (real 2018 $/kWh) 35 Battery Capacity (GWh) 1,000 30 800 25 “Energy sto
Slide 23: The Future
Model Control Monitor ✓ - - ✓ ✓ ✓ The Future ✓ ✓ ✓
Slide 24: Appendix
Appendix
Slide 25: Pason's History
Pason’s History 1978: Founded by Wayne Parks and Ron Mason who created the name “Pason” based ona hybrid of their last names Brian Taylor Early 1990s: Inventor designed and introduced the Pit Volume Totalizer 2006: Entered ro94:First Australia EDR rental 2014: Entered 1997: Entered the US into Joint