Bristow Group, Inc. · NYSE:VTOL
Bristow — Investor Day (November 2011)
100 slides from Bristow's investor day presentation, Nov 10, 2011
Slide 1: Analyst Day 2011
Exhibit 99.1 Analyst Day 2011 Bristow Group Inc. November 10, 2011
Slide 2: Forward-looking statements
Forward-looking statements This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about our future business, operations, capital expenditures, fleet composition, capabilities
Slide 3: Map of emergency exits
Map of emergency exits 30N3NV HIS iy Las — —= 0 OT 4 rif! a =] l | al ine — a ara x | - BEGG} ZERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 4: Agenda
Agenda • Introduction (Linda McNeill, Investor Relations Director) • The Bristow vision: gaining altitude (Bill Chiles, President and CEO) • The future opportunity (Mark Duncan, SVP Commercial) • Global operations update and business units future strategies (Richard Burman, SVP Operations) • Underst
Slide 5: The Bristow Vision: Gaining Altitude
The Bristow Vision: Gaining Altitude Bill Chiles, President and CEO 5
Slide 6: Objectives for today
Objectives for today • Discuss Bristow’s expanding growth opportunities and Client Promise • Operations update and business unit future strategies • Detail new financial initiatives to create a unique, balanced and more valuable investment vehicle • Close intrinsic valuation gap 6
Slide 7: Bristow is the leading provider of helicopter transportation services to the global offshore industry
Bristow is the leading provider of helicopter transportation services to the global offshore industry Bristow flies crews and light cargo to production platforms, vessels and rigs • ~20 countries • 552 aircraft • ~3,400 employees • Ticker: BRS • Stock price*: $51.19 $67 • Market cap*: ~$1.9 billion
Slide 8: Mission and Core Values
Mission and Core Values Our Mission Our Values Our mission is to provide the safest and Bristow’s values represent core beliefs about most efficient helicopter services and how to conduct business: aviation support worldwide. We will • Safety – unwavering focus on safety and achieve this by focusing
Slide 9: Bristow goals are represented by our "Strategy Temple"
Bristow goals are represented by our “Strategy Temple” 9
Slide 10: Industry leading safety record creates marketing and cost advantage
Industry leading safety record creates marketing and cost advantage 3-year average air accident rates* • Safety is our primary core value per 100K flight hours 2.79 • Bristow’s ‘Target Zero’ program is now the leading example emulated industry-wide 2.27 • Bristow accident rate is less than one fifth
Slide 11: Bristow services are utilized in every phase of offshore oil and gas activity
Bristow services are utilized in every phase of offshore oil and gas activity • Largest share of revenues (>60%) relates to Typical revenues by segment oil and gas production, ensuring stability and Other 10% growth Exploration 20% • There are ~ 8,000 offshore production installations worldwide—comp
Slide 12: Contract and operations structure results in more predictable income with operating leverage
Bristow’s contract and operations structure results in a more predictable income with significant operating leverage • Our run-rate capex is low as we expense almost all of our overhaul and maintenance • Bristow contracts earn 65% of revenue without flying in most market • Two tiered contract struct
Slide 13: Although Bristow has delivered value to shareholders in 2011 . . .
Although Bristow has delivered value to shareholders in 2011 . . . 130 120 110 8.9% 2.2% 100 (1.3%) 90 (17.8%) 80 70 60 01/01/11 02/18/11 04/11/11 05/31/11 07/20/11 09/08/11 10/28/11 Oil Service Index S&P 500 Simmons Offshore Transportation Service Index Bristow Source: Factset. Note: Simmons Offsho
Slide 14: Making changes to address commercial, operational and financial profile
. . . we are also making changes to address issues with our commercial, operational and financial profile • Safety and pursuit of Target Zero will remain our top priority • Bristow will remain the premier service provider with excellent secular expansion opportunities, but the growth will be execute
Slide 15: The future opportunity
The future opportunity Mark Duncan, SVP Commercial 15
Slide 16: Market outlook for the next five years
Market outlook for the next five years FY 2012 - 2016 • Market outlook and #1 expending growth opportunities #1 • Unique equity partnerships Lider FBH • Client Promise 16
Slide 17: Market outlook and expanding growth
Market outlook and expanding growth 17
Slide 18: Total spending will recover progressively to 2014
Total spending will recover progressively to 2014 lower costs and high prices drive new developments • Total Offshore CAPEX to reach 2008 levels by 2011, ~ $520 billion • At a lower cost base, higher spending translate into even higher activity levels 2008 levels Source: PFC Energy E&P Spending Mode
Slide 19: OPEC countries need higher oil prices to create political stability
OPEC countries need higher oil prices to create political stability • OPEC country expenses have been rising • Middle East unrest has caused large amounts of new spending by governments, which is raising need for oil revenue • Members are aligned on the need for $100 per barrel Brent prices at a min
Slide 20: Offshore reserves remain more open to IOCs than onshore
Offshore reserves remain more open to IOCs than onshore … particularly in deepwater Source: PFC Energy Service Strategies Service; NOCS Service 20
Slide 21: Spending in deepwater will see the highest growth during the next decade
Spending in deepwater will see the highest growth during the next decade 2001-2010 2011-2020 Net Growth ONSHORE 2,142 4,266 99.2% SHALLOW WATER 1,064 1,560 46.6% DEEPWATER 541 1,245 130.3% 3,747 7,071 88.7% Total CAPEX 2001-2010 Total CAPEX 2011-2020 $3,747 billion $7,071 billion DEEP DEEP 541 1,245
Slide 22: New deepwater infrastructure is moving farther from shore
New deepwater infrastructure is moving farther from shore in most regions – new technology helicopters needed • The U.S. GoM, Brazil and Australia will show a significant evolution to farther facilities as new assets are developed • Other regions – i.e. Northwest Europe, West Africa and the Middle E
Slide 23: Clients have increased focus on risk related to contractor capabilities
Our clients have sharply increased their focus on risk related to contractor capabilities, personnel and equipment What clients are saying? • Newer assets will be required • Pursuing highest operational standard and will require that of contractors • Higher levels of inspection required to award con
Slide 24: Opportunity Tracker FY2012-FY2016
Opportunity Tracker FY2012-FY2016 441 Bristow growth opportunities indentified . . . Total Aircraft Opportunities Existing aircraft New growth aircraft 106 56 279 New replacement aircraft Europe North America Mid East, East Africa, India, Bangladesh Malaysia, Thailand Indonesia Gulf of Guinea Brazil
Slide 25: Opportunity Tracker FY2017 and beyond
Opportunity Tracker FY2017 and beyond . . . With a wider scope of Bristow growth in the future • Deepwater discoveries have continued and are expected to drive growth • Brazil, U.S., Australia, Angola and Norway dominated deepwater discoveries • But, Equatorial Margin, Asia Pacific and East Africa a
Slide 26: What's changed concerning the growth cycle this time around?
So what’s changed concerning the growth cycle this time around for Bristow? • Higher levels of activity post-recession than the pre-recession levels • Concentration on new technology for more tenders • More volume per overall level of spend advantages helicopter services • Helicopter supply and dema
Slide 27: Unique Equity Partnerships
Unique Equity Partnerships 27
Slide 28: Lider Aviação: Positioned in largest growth market
Lider Aviação: Positioned in largest growth market • Brazilian aviation services company focused on two business lines: Offshore helicopter services: Corporate/general aviation and other services: 50 helicopters 31 charter aircraft Annual Revenue: ~ $240 M Annual revenue: ~ $150 M Current • Extensiv
Slide 29: Lider Aviação: Outlook
Lider Aviação: Outlook • Strengthen corporate aviation position • Maintain integrated company structure to maximize overhead Going Forward allocation (Lider) • Leverage partner relationships to access capital or equipment required for growth • Invest in initiatives to create market differentiation i
Slide 30: FB Heliservices is a well-known brand in UK government services
FB Heliservices is a well-known brand in the UK government services with opportunities to expand • JV with Cobham (a FTSE 4.8B GBP company) • Exclusive vehicle for owners to provide military/government helicopter services Engineering support Aircrew (pilots and rear crew) Logistics support Search an
Slide 31: Client Promise
Client Promise WRC 2ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 32: Introduction of the Client Promise
Introduction of the Client Promise Completed Underway Outcome • New sales, pricing and contract negotiations training • Internal assessment • Reliability and client and client research service program initiatives • New Brand Promise Increasing • Regional client forums market share and higher pricing
Slide 33: Price: the least important decision factor when choosing helicopter services
Price: the least important decision factor when choosing helicopter transportation services Safety, equipment availability and reliability, and client service are the top three deciding factors when choosing helicopter transportation services. 33
Slide 34: Client promise moves Bristow from operations driven to service driven
Client promise moves Bristow from being operations driven to service driven Create the future and deliver today Future Value Today’s Value Driving markets Higher revenue from Sparking innovation sales, pricing and Customer value communications programs Bristow value Client value: Lowering risk and o
Slide 35: The Client Promise – expanding Target Zero
The Client Promise – expanding Target Zero Target Zero accidents, downtime and complaints programs deliver value to operators. More zero-accident flight hours than anyone, more uptime than anyone, and hassle-free service creates Confidence in flight. Worldwide. Lowers client’s offshore operating cos
Slide 36: Client Promise = Focused on value
Client Promise = Focused on value Successes What future holds • Client Promise training undertaken in every • Specialized sales and negotiation training BU in each business unit • Five Value Chain Labs (VCLs) undertaken • More Value Chain Labs with clients with different Clients, each has generated
Slide 37: Client Promise: Delivering Value
Client Promise Delivering Value Bristow Group Inc. Client Value Added Scorecard October-11 Current Year MTD YTD Goal Total Recordable Incident Rate (TRIR) 0.22 0.22 0.20 Air Accident Rate (AAR) 0.00 0.91 0.20 All On Time Departure (OTD) 97.6% 96.0% 97% Bristow On Time Departure (BOT) 99.4% 98.9% 97%
Slide 38: Already delivered significant value added for our clients
Already delivered significant value added for our clients 130 Additional client value benefits Bristow 92.6 111.1 110 90 70 50 30 13 10 5.5 (0.5) -10 Expense Est. current Identified future Achieved client Total value incremental value savings added value Current known five year outlook as of October
Slide 39: Global operations update and business units future strategies
Global operations update and business units future strategies Richard Burman, SVP Operations 39
Slide 40: One typical day (video overview)
One typical day (video overview) 40
Slide 41: Operations outlook for the next five years
Operations outlook for the next five years FY 2012 - 2016 • Safety • Operating framework • Business Unit strategies and outlook • Year to date performance • Summary 41
Slide 42: Safety Culture
Safety Culture • Safety is the first and most important operations value • Systems and processes are important, leadership and culture are essential • Aviation safety paramount • Our safety vision reflects our belief that we can, and will, achieve: Zero Accidents • Zero harm to people • Zero harm to
Slide 43: Helicopter Flight Analysis Profile (HFDM) playback enhances understanding
Helicopter Flight Analysis Profile (HFDM) playback enhances understanding 43
Slide 44: Target Zero (2011)
Target Zero (2011) • Local (example: Pigeon English) computer based training implemented • HFDM process globalised • Working at height policy embedded (use of protective head gear) • Just Culture initiative launched • One aviation “accident” (yet to be classified) • Three Lost Work Cases (LWCs) year
Slide 45: Operating philosophy based on decentralized Business Units
Operating philosophy / framework is based on decentralized Business Units with common values and priorities • The Business Units are self sufficient with responsibility and accountability for all key business functions and activities • Safety is the number one priority • Client Promise and BVA perfo
Slide 46: Bristow is well diversified with aircraft across all continents
Bristow is well diversified with 552 aircraft in over 20 countries spread across all continents Operated Aircraft Bristow owns and/or operates 366 aircraft as of September 30, 2011 Affiliated Aircraft Key Bristow affiliates and joint Corporate ventures operate 186 aircraft as of September 30, 2011 B
Slide 47: Global Operations Leadership Team
Our experienced Global Operations Leadership Team has been working together for a while Mark Duncan Richard Burman Hilary Ware Senior Vice President Senior Vice President Senior Vice President Commercial Operations Administration Jessie Wheeler Executive Assistant to SVP Operations Danny Jeremy Mike
Slide 48: Europe (EBU) is our largest BU with significant growth opportunities
Europe (EBU) is our largest BU with significant growth opportunities to both diversify and increase market share • Diverse client base with multi year Bergen Kristiansund contracts managed as three operating units (Northern North Sea, Southern Stavanger Hammerfest North Sea, and Norway) • Stable oil
Slide 49: EBU Outlook: Growth is surprisingly resilient
EBU Outlook: Growth is surprisingly resilient Business Overview: • Annual Revenue ~ $550 million • # of LACE: 46 (41 Heavy, 17 Medium) • LACE Rate (annualized): $9.75 million • Market Share: circa 35% Outlook: • Positive, but we must remain cost effective • New incremental work contracted • Fleet tr
Slide 50: West Africa (WASBU) strategy is to maintain the premier brand
West Africa (WASBU) strategy is to maintain the proven and consistent premier brand • 50+ year history in Nigeria • Strong market share Port Harcourt • Stability returning to Delta Region, PIB awaited – delay in approval of bill is Warri Osubi Warri Texaco hampering inward investment in the oil Eket
Slide 51: WASBU Outlook: Increased offshore deepwater development and competition
WASBU Outlook: Increased offshore deepwater development and competition and competition Business Overview: • Annual Revenue: circa $250 million • # of LACE: 22 (mostly medium/small aircraft) • LACE Rate (annualized): circa $10.3 million • Market Share: circa 60% Outlook: • Competition re-emerging in
Slide 52: Australia (AUSBU) strategy focuses on organic growth and Client Promise
Australia (AUSBU) strategy entails a focus on the organic growth and the Client Promise • Geographically diverse fleet Broome Truscott Darwin BDI provide support to the Republic of distribution and client base Singapore Air Force Karratha • Organic growth envisaged (30% Oakey fleet expansion anticip
Slide 53: AUSBU Outlook: Mid and long term outlook is positive
AUSBU Outlook: Mid and Long term outlook is positive Expansion delayed in 1HFY12 Business Overview: • Annual Revenue: circa $160 million • # of LACE: 20 • LACE Rate (annualized): circa $7.3 million • Market Share: circa 65% Outlook: • Some work delayed until second half FY12; expecting strong activi
Slide 54: Other International (OIBU) strategy: develop new markets through partnerships
Other International (OIBU) strategy is to develop new markets through geographic R&D and partnerships • Focused on new and emerging markets as a means to generate and ensure growth and sustainable business levels for the future • Strong focus on growth in Brazil, Trinidad, Equatorial Guinea and SE A
Slide 55: OIBU Outlook: Lost work replaced by emerging growth
OIBU Outlook: Lost work in 1HFY12 replaced by emerging growth Business Overview: • Annual Revenue: circa $141 million • # of LACE: 38 • LACE Rate (annualized): $3.7 million • Multiple countries and joint ventures Outlook: • Work in Equatorial Guinea, Bangladesh, as well as increased rates in Trinida
Slide 56: North America (NABU) strategy is to focus on key must-win contracts
North America (NABU) strategy is to focus on key “must win” contracts • Focused on growth of deep water Gulf of Mexico high end medium & heavy business • Focused on key “must win”, Gulf of Mexico contracts • Build upon or exit Alaska • Consider sale of highly competitive, high risk, low return singl
Slide 57: NABU Outlook: Slow but steady improvement
NABU Outlook: Slow but steady improvement Business Overview: • Annual Revenue: circa $180-200 million • # of LACE: 29 • LACE Rate (annualized): $6.3 million • Market Share: 28% Outlook: • FY12 GoM and Alaska drilling permits continue to be issued but at a slow rate with Large aircraft demand slowly
Slide 58: Support and Maintenance Strategy
Support and Maintenance Strategy • Prepare for moving out of legacy fleets Outsourcing capability ahead of the planned decline in fleet Managing internal capability and capacity, particularly in New Iberia Optimising direct and indirect staff • Consider alternative support options for new types • EC
Slide 59: Year to date performance
Year to date performance • Has been disappointing! • Total flight hours more or less as anticipated but with shortfalls in NABU and AUSBU • Results impacted by: • Higher general and salary inflation • Failure to recover all of that inflation from contract escalation clauses • Project delays, especia
Slide 60: Year to date performance: Extraordinary items and costs
Year to date performance: Extraordinary items and costs New type aircraft training costs from prior year $1.1M Norwegian pension actuarial change $2.1M (ongoing) Norwegian Engineers work to rule salary costs $1.5M Lost business resulting from work to rule $1.5M Back dated pay review Engineers Norway
Slide 61: Year to date performance: What are we doing about it?
Year to date performance: What are we doing about it? • Global cost reduction initiative implemented for remainder of FY12 • Cost efficiencies being sought in UK and New Iberia through Human Resources shared services • Already exploiting additional work in AUSBU and OIBU (commenced after September 3
Slide 62: Summary: Operations
Summary: Operations • Ongoing focus on Safety as we continue to strive for Target Zero • The first half of the year has been negatively impacted by several factors, most of which will not recur in the second half of the year • With those issues largely behind us and market share gains/increased acti
Slide 63: Understanding our unique investment thesis
Understanding our unique investment thesis Jonathan Baliff, SVP and CFO 63
Slide 64: Bristow's new unique investment thesis and commitment to shareholders
Bristow’s new unique investment thesis and commitment to our shareholders for the next 5 years Internal Strategy External Temple: Commitment: FY 2012 - 2016 FY 2012 - 2016 Our New Balanced and Unique Investment Thesis Prudent Balance Sheet Management Growth Capital Return 64
Slide 65: Growth: Understanding LACE
Growth: Understanding LACE 65
Slide 66: Introduction to LACE and the LACE rate
Growth: introduction to LACE and the LACE rate to describe revenue growth and productivity • Large Aircraft Equivalent (LACE) LACE Math • “LACE” normalizes revenue and is functionally similar to 100% per # of Large Aircraft BOE in the E&P business +50% per # of Medium Aircraft +25% per # of Small Ai
Slide 67: LACE and LACE Rate: historical trends demonstrate Bristow growth
LACE and LACE Rate: historical trends demonstrate Bristow growth Consolidated commercial aircraft Large Aircraft Equivalent (LACE*) LACE Rate (Annual) (in millions) 350 323 324 295 $7.50 290 $7.15 300 279 $7.00 250 $6.49 $6.50 $6.14 200 161 164 159 $6.00 $5.72 156 153 150 $5.50 $4.92 100 $5.00 50 $4
Slide 68: LACE simplifies fleet description across regions and time periods
LACE simplifies fleet description across regions and time periods LACE EBU WASBU AUSBU OIBU NABU TOTAL FY07* 37 19 12 35 48 156 FY08 43 20 17 32 49 161 FY09 46 23 22 34 40 164 FY10 42 25 22 35 36 159 FY11 45 22 19 37 31 153 Sept 30, 2011 46 22 20 38 29 155 30% 14% 13% 24% 19% 100% * Centralized Oper
Slide 69: Upward LACE Rate trend confirms higher productivity for newer aircraft
The general upward LACE Rate trend confirms higher productivity for newer technology aircraft 12 LACE Rate by business unit (annual) (in $ millions) WASBU 10 EBU 8 AUSBU 6 NABU 4 OIBU* 2 0 FY07 FY08 FY09 FY10 FY11 ($ millions) EBU WASBU AUSBU OIBU NABU TOTAL FY07 $6.36 $6.45 $5.79 $2.83 $4.65 $4.92
Slide 70: Capital allocation and cash flow generation: Understanding BVA
Capital allocation and cash flow generation: Understanding BVA 70
Slide 71: Creating cash thesis: BVA simplified
Creating cash thesis: BVA simplified 71
Slide 72: Introducing Bristow Value Added (BVA)
Introducing Bristow Value Added (BVA) Treat capital like any other cost Bristow Value Added = Gross Cash Flow – (Gross Operating Assets X Capital Charge) BVA = GCF - ( GOA X 10.5% ) Bristow Value Added calculation for FY2011 $(10.1) = $257 - ( $2,543* X 10.5% ) • BVA is the key measure to define fin
Slide 73: Improvement in BVA year-over-year is proven to drive share price appreciation
Improvement in BVA year-over-year is proven to drive share price appreciation • Cash flow based and consistent with discount cash flow valuation • Enterprise Value (EV) equals Assets + PV(BVA) • PV(BVA) estimated as simply capitalized BVA • Explanation of valuation is strong in the capital markets B
Slide 74: BVA calculation: Gross Cash Flow
BVA calculation: Gross Cash Flow (GCF) is analogous to after tax EBITDA • Gross Cash Flow (GCF) is similar to after tax EBITDA. Empirical research demonstrates that Gross Cash Flow (rather than accounting profit measures such as operating income or earnings) better relate to how investor’s value com
Slide 75: BVA calculation: Gross Operating Assets
BVA calculation: Gross Operating Assets (GOA) is aligned with GCF • Gross Operating Assets (GOA) is a measure of the tangible resources deployed into the business • They are the assets which contribute to Bristow’s GCF generation and ongoing operations. “Adjustments” to GOA “Exclusions” from GOA • G
Slide 76: BVA calculation: Our current capital charge is 10.5%
BVA calculation: Our current capital charge is 10.5% • Core concept: investors require a minimum rate of return on their investment in Bristow • Bristow’s Capital charge relates but is higher than this minimum rate of return so for purposes of calculating BVA, the current Capital Charge has been des
Slide 77: BVA implementation has taken a Five Step Process
BVA implementation at Bristow has taken a Five Step Process and has been ongoing for 7 months 1 2 3 4 5 Define BVA Integrate BVA into Capital Advisory Implement BVA Conduct Performance Business Review Board Incentives Practical BVA Drivers Management Training Comprehensive Business plans Team of BVA
Slide 78: Example: BVA is Beyond ROCE
Example: BVA is “Beyond ROCE” • Capital deployment timing is critical to long term value creation and is ignored in ROCE: Today New Combined Sales $2500 $2000 $4500 “THE PAST” Margin 10% 5% 7.8% evaluation of Cash Flow $250 $100 $350 a new $2000 investment Capital $1,000 $500 $1,500 % ROCE 25% 20% 2
Slide 79: Prudent balance sheet management: Understanding our new financing strategy
Prudent balance sheet management: Understanding our new financing strategy 79
Slide 80: Combine capital efficiency with historic commitment to capital prudency
Bristow needs to combine capital efficiency with our historic commitment to capital prudency • Bristow is well capitalized, but is not currently creating adequate value because our returns on capital do not exceed the 10.5% capital charge FY11 select financial metrics Adjusted Debt / Adjusted Total
Slide 81: Capital efficiency and prudent balance sheet management: Where we want to go
Capital efficiency and prudent balance sheet management: Where we want to go • Reduce construction in progress (CIP*) Methods for • Use more operating leases for aircraft change • Faster sale of unprofitable aircraft and redeployment of cash balances • Increased BVA by committing less capital for Ex
Slide 82: Capital efficiency and prudent balance sheet management: How we get there
Capital efficiency and prudent balance sheet management: How we get there Capex vs • Balance use of operating cash flow + a/c sales with leases Leases for a/c purchases and other capex • Leases used for initially no more than 20-30% of total Capital Bristow LACE Structure • Adjusted Debt/Capital Rat
Slide 83: Operating leases reduce capital commitment and increase competitiveness
Operating leases reduce capital commitment, create optionality, and increase competitiveness • Basic lease terms are more value added than in the past • Pre-delivery payments to be made by lessor to reduce CIP • End of lease term options – renewal options, purchase or return • Lease rental cost comp
Slide 84: Capital return perspectives
Capital efficiency and prudent balance sheet management: Capital return perspectives • Signals management confidence in future business stability and cash generation Regular • Cash flow generation allows for 10-15% Dividend annual increase in dividends • Payout ratio and dividend coverage to be moni
Slide 85: Bristow will be a unique, balanced investment
Bristow will be a unique, balanced investment We will aim to provide a balanced return, but some years we will “hit the gas” depending on price signals The “Growth Price Signal” is provided The “Capital Return Price Signal” is by the commercial markets and outlook provided by the financial markets a
Slide 86: Putting it all together for FY12-16
Putting it all together for FY12-16: Over $700 million available for further growth and capital return 1,121 Operating leases 497 103 1,378 238 Operating leases 735 116 FY11 balance Operating cash flow Asset sales Aircraft purchases Other capex Maintain optimal Available for capital structure divide
Slide 87: Moving forward
Moving forward Bill Chiles, President and CEO 87
Slide 88: Today's key takeaways
Today’s key takeaways • Secular growth opportunities that were identified for the next five years underpin Bristow’s value creation • Client Promise will enhance Bristow’s premier brand and drive value creation • Disciplined capital allocation through BVA and prudent balance sheet management will pr
Slide 89: Appendix
Appendix WRC 2ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 90: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of September 30, 2011 Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Medium capacity 12-16 passengers Large Helicopters AS332L Super Puma 18 Twin Turbine 30 - 30 - Bell 214ST 18 Twin Turbine - - - - EC225 25 Twin Turbine 18 - 18 2 Mil MI 8 20 Twin Tu
Slide 91: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of September 30, 2011 (continued) Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Small Helicopters Bell 206B 4 Turbine 2 2 4 - Small capacity 4-7 passengers Bell 206 L-3 6 Turbine 4 6 10 - Bell 206 L-4 6 Turbine 30 1 31 - Bell 407 6 Turbine
Slide 92: Consolidated Fleet Changes and Aircraft Sales for Q2 FY12
Consolidated Fleet Changes and Aircraft Sales for Q2 FY12 Q 1 FY12 Q 2 FY12 YTD # of A/C Cash Fleet Count Beginning Period 373 372 373 Sold Received* Gain/ Loss* Delivered Q1 FY 12 3 2,478 1,525 EC225 2 2 4 Q2 FY 12 5 13,152 3,004 S-92 1 1 Total Delivered 2 3 5 Totals 8 15,630 4,529 Removed Sales (3
Slide 93: Order and options book as of September 30, 2011
Order and options book as of September 30, 2011 ORDER BOOK OPTIONS BOOK Helicopter Helicopter # Class Delivery Date Location Contracted # Class Delivery Date Location 2 Large December 2011 NABU 2 of 2 2 Medium December 2012 EBU 1 Large December 2011 EBU 1 of 1 3 Large December 2012 EBU 1 Large March
Slide 94: Gross Cash Flow Presentation
Gross Cash Flow Presentation (in millions) Gross Cash Flow Reconciliation FY2007 FY2008 FY2009 FY2010 FY2011 Net Income 74 104 123 112 132 Depreciation and Amortization 43 54 66 75 91 Interest Expense 11 24 35 42 46 Interest Income (9) (13) (6) (1) (1) Rent 19 23 21 18 29 Other Income/expense-net 9
Slide 95: Gross Operating Asset Presentation
Gross Operating Asset Presentation (in millions) Adjusted Gross Operating Assets Reconciliation FY2007 FY2008 FY2009 FY2010 FY2011 Total Assets 1,506 1,977 2,335 2,495 2,663 Accumulated Depreciation 300 317 351 404 446 Capitalized Operating Leases 61 63 90 97 132 Cash and Cash Equivalents (184) (290
Slide 96: Operating margin trend
Operating margin trend 2008 2009 2010 2011 2012 As Reported Full Year Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 EBU 23.6% 19.3% 17.2% 16.7% 16.1% 18.1% 17.0% 18.0% 18.4% 19.6% 18.8% 18.8% 17.3% 16.8% WASBU 17.9% 21.5% 24.9% 29.3% 25.4% 34.7% 28.5% 26.5% 29.5% 29.8% 24.0% 27.4% 20.6% 25.2% NABU 1
Slide 97: EBIDTAR reconciliation
EBIDTAR reconciliation ($ in millions) March 31, 2000 2001 2002 2003 2004 Income from continuing operations $8.8 $27.9 $42.5 $40.3 $49.6 Income tax expense 3.8 13.3 19.1 17.5 18.5 Interest expense 18.5 18.4 15.8 14.9 16.8 Depreciation and amortization 32.0 33.1 33.9 37.5 39.4 EBITDA Subtotal 63.1 92
Slide 98: EBIDTAR reconciliation (continued)
EBIDTAR reconciliation (continued) ($ in millions) March 31, 2010 2011 Income from continuing operations $113.5 $133.3 Income tax expense $29.0 $7.1 Interest expense $42.4 $46.2 Gain on disposal of assets (18.7) (10.2) Depreciation and amortization 74.7 90.9 EBITDA Subtotal 240.9 267.3 Aircraft rent
Slide 99: GAAP reconciliation
GAAP reconciliation Three Months Ended Six Months Ended September 30, September 30, 2011 2010 2011 2010 (In thousands) Adjusted EBITDA .... $ 62,127 $ 72,687 $ 120,199 $ 130,786 Gain (loss) on disposal of asset (1,611) 1,897 (195) 3,615 Special items .......... (24,610) — (24,610) _ Interest expense
Slide 100: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2000 West Sam Houston Parkway South Suite 1700, Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com 100