Bristow Group, Inc. · NYSE:VTOL
Bristow — Investor Presentation (August 2019)
53 slides from Bristow's investor presentation, Aug 2, 2019
Slide 1: Bristow Discussion Materials
June 27, 2019 Bristow Discussion Materials Exhibit 99.1
Slide 2: Statement of Limiting Conditions
Statement of Limiting Conditions This presentation and all information contained therein (this “Presentation”) has been prepared at the direction of Bristow Group Inc. (“Project Swan”, “Bristow” or the “Company”) and is being delivered for informational purposes only on behalf of the Company to a li
Slide 3: Table of Contents
Table of Contents Safety Update Company Overview Global Fleet Plan Business Plan
Slide 4: Safety Update
Safety Update
Slide 5: FY19 operational safety review and FY20 YTD update
Bristow FY19 operational safety review and FY20 YTD Update Air Accident Rate (AAR1) Total Recordable Injury Rate (TRIR2) AAR prior to FY16 includes commercial helicopter operations for Bristow Group and consolidated affiliates. AAR beginning in FY16 includes all Category A and B accidents for consol
Slide 6: Target Zero Refresh: Heart, Head and Hands
Target Zero Refresh: A ‘Heart, Head and Hands’ perspective Heart: This is what we feel – why we sign up TZ… Head: This is what we think – how we plan to be safe… Hands: This is what we do – how we act to ensure safe outcomes… Program Focus: Translating our commitment to Target Zero into thinking str
Slide 7: a ra ® > Oo > = © ro S O
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Slide 8: Situation Update: Business Summary, 60+ year history
Situation Update---ERA Business Summary 60+ year history of leadership in global offshore aviation 1955 Bristow Helicopters Ltd. founded 1969 1985 1996 2006 2013 2014 Offshore Logistics, Inc. founded Awarded a 8-10 year contract with the U.K. Department for Transport to provide public sector SAR ser
Slide 9: Situation Update: Business Summary, global employees and aircraft
Situation Update---ERA Business Summary ~3,000 global employees operating 268 aircraft (160 LACE)1 with a leading global footprint serving industry and governments Our diversified aviation services are delivered in two regional hubs: Europe – U.K. (including U.K. SAR), Norway, Africa, Australia (inc
Slide 10: Diversified lines of service with predictable revenue streams
Diversified lines of service with highly visible and predictable revenue streams FY19E $1.3B Revenue Mix 50+ year successful operating history of providing mission critical services to the offshore O&G industry O&G crew change provides transportation for personnel between onshore bases and offshore
Slide 11: Services delivered in all major offshore oil and gas basins
Bristow services are delivered globally in all major offshore oil and gas basins 58% of Total FY19A Revenue 90 Total Aircraft: 0 Fixed Wing / 90 Rotary Europe Caspian 17% of Total FY19A Revenue 72 Total Aircraft: 0 Fixed Wing / 72 Rotary Americas 12% of Total FY19A Revenue 38 Total Aircraft: 4 Fixed
Slide 12: Long-term global relationships underpin industrial aviation platform
Long-term global relationships underpin the strength of our industrial aviation platform IAC is the Integrated Aviation Consortium in the U.K. North Sea and comprises three major oil companies: EnQuest, CNR International, and TAQA. Excludes Cougar (Bristow own a 40% interest in Cougar), Airnorth and
Slide 13: O&G revenue down from peak and stabilized
Note: All figures in USD millions O&G Revenue is down 42% or $647M from its peak and has stabilized; U.K. SAR continues to provide revenue stability Eastern + Airnorth BRS Operating Revenue UK SAR Revenue Oil & Gas Revenue Eastern exited in FY20
Slide 14: EBITDA growth from lease cost roll-off
Note: All figures in USD millions FY20 to FY22 EBITDA growth is primarily from the benefit of lease cost roll-off; minimal capital expenditures beyond FY20 Adjusted EBITDAR Adjusted EBITDA Total Lease Expense Capital Expenditures EBITDA of ~$150M+ generates positive Net Income; prior to Chapter 11,
Slide 15: Offshore activity contracted as oil prices fell
As oil prices fell, offshore activity contracted; our global oil and gas flight hours bottomed in FY17 without a material recovery Oil and Gas Flight Hours Excludes SAR and Fixed Wing FY13 – FY19 (~45%) FY13 – FY22E (~40%)
Slide 16: Global Fleet Plan
Global Fleet Plan
Slide 17: Fleet Overview (June 2019)
Fleet Overview (June 2019) Note: Total fleet count includes rejected leases (10) Includes 7 S-92s owned by BHNA Holdings Inc. and leased to Cougar Helicopters The Company sold Eastern Airways on May 10, 2019; Eastern now leases 3 fixed wing aircraft to the Company’s Nigerian operations
Slide 18: Rent by region
Rent by region Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revision. Financial results for fiscal year ended March 31, 2019 are comprised of actual results for the nine-months ended December 31, 2018 and estimated results fo
Slide 19: Go-Forward Fleet Plan
Go-Forward Fleet Plan The illustrative fleet plan below assumes the disposition of certain idle and held-for-sale owned aircraft as well as the rejection or termination of identified leases Note: Total fleet count includes rejected leases (10)
Slide 20: Fleet strategy has evolved with key initiatives
Bristow’s fleet strategy has evolved and the Company is executing on many key initiatives Target ratio of LACE 75% owned and 25% leased Developed a laddering maturity strategy for its leased fleet, which provides the Company with more flexibility in fleet management to manage market conditions Disci
Slide 21: Evolution of Helicopter Model Strategy
Evolution of Helicopter Model Strategy AS332 Bell 214ST Mil Mi 8 S-76 A/A++ S-76 C/C++ H 155 Bell 206B Bell 206L BK 117 S-92 AW189 AW 139 S-76 C++ S-76D Bell 407 4 Fewer Models 5 Fewer Models 3 Fewer Models Former Bristow Current Bristow S-61 S-92 H225 Heavy Helicopters Medium Helicopters Bell 212 B
Slide 22: Business Plan
Business Plan
Slide 23: Bristow's Business Plan Process
Bristow’s Business Plan Process The financial forecasting process is run by Bristow’s Decision Support team (commonly known as Financial Planning & Analysis) with coordination amongst Commercial, Operations and Fleet leaders for a bottoms-up, aircraft-by-aircraft view Decision Support is comprised o
Slide 24: Overview of the Business Plan Key Themes
Overview of the Business Plan Key Themes Outlook for the offshore Oil & Gas (O&G) helicopter market continues to be subdued in activity and pricing Rig activity, a key demand driver, appears to have bottomed with signs of improvement Opportunities for O&G revenue growth exist, but will largely take
Slide 25: Overview of the Business Plan Key Themes (Cont.)
Overview of the Business Plan Key Themes (Cont.) Other keys areas of focus and opportunities that are not incorporated into the business plan include the following: Leveraging existing fixed asset base via scale and market share gains Changing the maintenance model Divestiture of non-core operations
Slide 26: Business Plan Summary Assumptions and Drivers
Business Plan Summary Assumptions and Drivers Revenue Regional decision support teams review flight hours by both existing and speculative clients and verify contract rates (including certain contractual escalations) and fleet scheduling Captures projected additional revenue based on estimated new c
Slide 27: Business Plan Summary Outputs: Revenue
Eastern + Airnorth BRS Operating Revenue UK SAR Revenue Oil & Gas Revenue Eastern exited in FY20 Business Plan Summary Outputs Note: All figures in USD millions
Slide 28: Business Plan EBITDA Growth from Lease Restructuring
Adjusted EBITDAR Adjusted EBITDA Total Lease Expense Capital Expenditures Note: All figures in USD millions EBITDA of ~$150M+ generates positive Net Income; prior to Chapter 11, needed ~$225M+ EBITDA to be positive Net Income Business Plan EBITDA Growth Primarily from Restructuring of Leased Fleet
Slide 29: Business Plan Summary Financials
Primarily includes fuel revenue that is ~100% pass-through Includes the direct maintenance cost (DMC) of the fleet Includes freight, training, transportation, insurance, and other miscellaneous direct costs Represents the pass-through portion of reimbursable revenue Business Plan Summary Financials
Slide 30: Projected Free Cash Flow
Projected Free Cash Flow Set forth below is an illustrative calculation of free cash flow incorporating the contemplated deleveraging and recapitalization based on recent creditor discussions Only includes fleet debt and the Pre-Filing Facility Estimated midpoint values Does not reflect certain work
Slide 31: Regional Revenue and Adjusted EBITDA
Adjusted EBITDA by Region Operating Revenue by Region Note: All figures in USD millions Regional Revenue and Adjusted EBITDA
Slide 32: Summary Financial Metrics by Region
Summary Financial Metrics by Region
Slide 33: Appendix
Appendix
Slide 34: Fleet organizational chart as of March 31, 2019
Next generation aircraft Mature aircraft Fleet organizational chart as of March 31, 2019 Bristow Europe Caspian 58% Africa 12% Americas 17% Asia Pacific 13% U.K. – 59 / 31 Norway – 26 / 0 Nigeria – 33 / 3 U.S. GoM – 54 / 0 Canada – 7 / 0 Australia – 21 / 14 Brazil – 0 / 0 Egypt – 0 / 0 Russia – 7 /
Slide 35: Leased aircraft detail
1) The percentage of LACE leased is calculated by taking the total LACE for leased aircraft divided by the total LACE for all aircraft we operate, including both owned and leased aircraft. 1 Leased aircraft detail as of March 31, 2019 Note: Financial results for fiscal year ended March 31, 2019 and
Slide 36: Consolidated fleet changes and aircraft sales
Consolidated fleet changes and aircraft sales Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revision. Financial results for fiscal year ended March 31, 2019 are comprised of actual results for the nine-months ended December 31
Slide 37: Operating revenue, LACE and LACE rate by region
Operating revenue, LACE and LACE rate by region 4 $ in millions LACE rate is annualized $ in millions per LACE Excludes assets held for sale, Airnorth and Eastern Airways Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revision.
Slide 38: Historical LACE count by region
Historical LACE count by region Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revision. Financial results for fiscal year ended March 31, 2019 are comprised of actual results for the nine-months ended December 31, 2018 and est
Slide 39: Historical LACE rate by region
Historical LACE rate by region $ in millions LACE rate calculated as YTD revenue annualized divided by period ending LACE count Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revision. Financial results for fiscal year ended Ma
Slide 40: Adjusted EBITDA margin trend by region
Adjusted EBITDA margin trend by region Adjusted EBITDA excludes special items and asset dispositions and margin is calculated by dividing adjusted EBITDA by operating revenue Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revis
Slide 41: Historical U.K. SAR performance
Historical U.K. SAR performance GAP and U.K. SAR operating results are included within our Europe-Caspian region results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is ne
Slide 42: Historical fixed wing performance
Historical fixed wing performance Fixed wing operating results are included within their respective regional results. Adjusted EBITDA excludes corporate overhead allocations consistent with financial reporting. Adjusted EBITDA is a non-GAAP measure of which the most comparable GAAP measure is net in
Slide 43: Consolidated and regional Adjusted EBITDA
Consolidated and regional Adjusted EBITDA Adjusted EBITDA excludes special items and asset dispositions Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revision. Financial results for fiscal year ended March 31, 2019 are compris
Slide 44: Contractual principal debt repayments and amortization
Contractual principal debt repayments and amortization as of March 31, 2019 Note: Financial results for fiscal year ended March 31, 2019 and quarterly periods therein are unaudited and subject to revision. Financial results for fiscal year ended March 31, 2019 are comprised of actual results for the
Slide 45: Total Operating Revenue, Adj. EBITDAR and Adj. EBITDA
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Total Operating Revenue FY 2018A 2019E 2020E 2021E 2022E AMR $236 $227 $231 $230 $230 ECR 765 764 664 656 655 AFR 192 157 170 157 157 APR 201 176 131 93 93 Corporate and Other 4 2 1 1 1 Topside Adjustments(1) 0 0 (5) 61 88 Net Eliminations (15) (13)
Slide 46: Consolidated projected financials
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Consolidated FY18A FY19E FY20E FY21E FY22E Flight Hours - Revenue 174,842 156,526 140,800 137,262 136,205 Flight Hours - Non Revenue 7,924 7,942 6,484 4,869 4,869 Total Flight Hours 182,766 164,468 147,283 142,131 141,074 ($ in millions) Operating R
Slide 47: Americas projected financials
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Americas FY18A FY19E FY20E FY21E FY22E Flight Hours - Revenue 30,099 35,037 37,086 36,972 36,972 Flight Hours - Non Revenue 3,098 3,508 2,711 2,415 2,415 Total Flight Hours(1) 33,197 38,545 39,797 39,387 39,387 ($ in millions) Operating Revenue: Tot
Slide 48: Europe Caspian projected financials
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Europe Caspian FY18A FY19E FY20E FY21E FY22E Flight Hours - Revenue 88,647 84,358 68,610 67,375 67,338 Flight Hours - Non Revenue 2,462 2,153 2,053 2,068 2,068 Total Flight Hours(1) 91,109 86,511 70,663 69,443 69,406 ($ in millions) Operating Revenu
Slide 49: Africa projected financials
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Africa FY18A FY19E FY20E FY21E FY22E Flight Hours - Revenue 28,604 16,024 18,236 19,412 18,392 Flight Hours - Non Revenue 603 554 366 335 335 Total Flight Hours(1) 29,206 16,578 18,603 19,747 18,727 ($ in millions) Operating Revenue: Total Third Par
Slide 50: Asia Pacific projected financials
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Asia Pacific FY18A FY19E FY20E FY21E FY22E Flight Hours - Revenue 24,556 21,107 16,867 13,503 13,503 Flight Hours - Non Revenue 1,761 1,727 1,354 51 51 Total Flight Hours(1) 26,317 22,834 18,221 13,554 13,554 ($ in millions) Operating Revenue: Total
Slide 51: Corporate and Other projected financials
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Corporate and Other FY18A FY19E FY20E FY21E FY22E Flight Hours - Revenue 2,937 0 0 0 0 Flight Hours - Non Revenue 0 0 0 0 0 Total Flight Hours(1) 2,937 0 0 0 0 ($ in millions) Operating Revenue: Total Third Party + Affiliates $4 $2 $1 $1 $1 Fuel Rev
Slide 52: Topside Adjustments
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL Topside Adjustments(1) FY18A FY19E FY20E FY21E FY22E Flight Hours - Revenue Flight Hours - Non Revenue Total Flight Hours ($ in millions) Operating Revenue: Total Third Party + Affiliates Fuel Revenue Total Operating Revenue $ 0 $ 0 ($5) $61 $88 Rev
Slide 53: Special Items Adjustments
PRELIMINARY DRAFT SUBJECT TO REVISION CONFIDENTIAL ($ in millions) FY18A FY19E FY20E FY21E FY22E Special Items Adjustments Inventory Impairments 6 Project Swan FY20 April Prof Fees Estimate 9 A&M Fees - in G&A 1 Transaction Cost 33 Organizational Restructuring Cost 22 12 5 Loss on impairment (Excl.