Bristow Group, Inc. · NYSE:VTOL
Bristow — Investor Day (December 2021)
59 slides from Bristow's investor day presentation, Dec 8, 2021
Slide 1: Bristow Analyst Day
Bristow Analyst Day December 8, 2021
Slide 2: 2021 Analyst Day Agenda
2021 Analyst Day Agenda I. Overview / Strategy Chris Bradshaw President and CEO II. ESG Chris Bradshaw President and CEO III. Operational Highlights Samantha Willenbacher SVP Americas IV. Commercial Highlights David Stepanek EVP Sales and Chief Transformation Officer V. Financial Highlights Jennifer
Slide 3: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation contains “forward-looking statements.” Forward-looking statements represent Bristow Group Inc.’s (the “Company”) current expectations or forecasts of future events. Forward-looking statements generally can be identified by t
Slide 4: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation Non-GAAP In addition to financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes certain non-GAAP measures including EBITDA, Adjusted EBITDA, Net Debt, Free Cash Flow and Adjusted Fre
Slide 5: Bristow Executive Leadership Team
Bristow Executive Leadership Team Samantha Mary Wersebe David Stepanek Alan Corbett Chris Bradshaw Jennifer James Crystal Gordon Stuart Stavley Willenbacher SVP, Chief EVP, Sales and SVP, Europe, President and Whalen Stottlemyer SVP, General SVP, Global SVP, Americas Administrative Chief Africa, CEO
Slide 6: Overview / Strategy
Overview / Appendix Strategy
Slide 7: Safety Note
Safety Note With third-party Bristow’s fleet is Safety is Bristow’s #1 Robust safety accreditation configured with core value and highest management resulting from the latest safety operational priority system (SMS) numerous equipment external audits Bristow is a founding member of HeliOffshore, an
Slide 8: 70+ Year History in Global Aviation
70+ Year History in Global Aviation Bristow and Era Merger Bristow and Era become founding 2020 members of HeliOffshore and active Board Members Alan Bristow Carl F. Brady 2015 Bristow Group Inc., Founder Era Group Inc., Founder Awarded the UK Search and Rescue contract 2014 IMPLEMENTATION OF TARGET
Slide 9: Why Invest in Bristow
Why Invest in Bristow Global Leader in Vertical Flight Solutions Diverse Customer Base and End Markets Well Positioned for Additional Strategic Opportunities Strong Balance Sheet with Robust Free Cash Flow Generation Meaningful Value Enhancement from Achievement of Cost Synergies 9
Slide 10: Global Leadership Position in Helicopter Industry
Global Leadership Position in Helicopter Industry • Leading global provider of vertical flight solutions; primarily Aircraft Fleet (1) offshore energy personnel transportation, with significant end market diversification from government services contracts • Diverse fleet of 231 aircraft; primarily o
Slide 11: Significant Presence in Key Regions
Significant Presence in Key Regions Trinidad Percentage and Number of Aircraft by Region (1) 79 Bristow Headquarters Operating Presence Dry Lease/Partnership 13 118 21 Total Aircraft: 231 (1) As of 11/30/2021 11
Slide 12: Substantial Value Creation from Merger Synergies
Substantial Value Creation from Merger Synergies G&A Savings + Fleet Cost Savings + Other OpEx Savings = +$50mm ANNUAL RUN-RATE SAVINGS ✓ Elimination of redundant corporate expenses As of September 30th, synergy projects ✓ Realization of operational efficiencies in the U.S. Gulf of Mexico representi
Slide 13: Strategic Priorities
Strategic Priorities • Safety is our #1 core value and • We differentiate ourselves by • Focus on EBITDA and other highest operational priority providing great service and being metrics that are connected to more efficient actual cash flow • We must continue to place safety first, every day, and del
Slide 14: Financial Strength
Financial Strength Strong Free Cash Flow Generation Limited Firm Capital Commitments Highly Achievable Cost Synergies (+$50mm Annual Savings) Limited Near-term Debt Maturities Strong Balance Sheet & Liquidity (~$288mm of Total Liquidity) 14
Slide 15: Strategic Opportunities
Strategic Opportunities OFFSHORE OIL & GAS GOVERNMENT SERVICES WIND ADVANCED AIR MOBILITY • Over ~$3 billion of potential • Offshore wind is a significant • Multi-year recovery in offshore oil • New class of aircraft could lower Government SAR contracts up for global opportunity over the next and ga
Slide 16: ESG Overview
ESG Appendix Overview
Slide 17: Environmental
Environmental Obtained ISO14001 certification in the UK and Brazil; we are working on obtaining ISO14001 certification for other operating bases globally, beginning in fiscal year 2022 Undertaking proactive measures to reduce aircraft emissions and reduce the environmental impact of our operations u
Slide 18: Social
Social Women represent half of our executive management team We are focused on creating career pathways for those who serve in the military, with ~25% of our U.S. employees having previously served We provide opportunities for all employees to improve their skills and advance their careers. We are c
Slide 19: Governance
Governance Recently refreshed Board – seven new directors in last two years In May 2021, we welcomed our newest director, General Maryanne Miller, Ret. Board is led by our independent Non-Executive Chairman Governance Annual enterprise risk assessment Anonymous, non-retaliatory whistleblower program
Slide 20: Operational Overview
Operational Appendix Overview
Slide 21: Target Zero – Our Safety Culture
Target Zero – Our Safety Culture 1. Technology, Standards: Established ... Continuously upgrading 2. Safety Management Systems: In place ... Refining KPIs and Processes 3. Safety Culture Improvement: Measure Conversations and Actions for Improvement Safety as our Number One Core Value: Changing Thin
Slide 22: Target Zero Program Updates
Target Zero Program Updates Performance Summary as of Q2 FY22: Global Air Accident Rate(1) per 100K Flight Hours Global Aviation Operations(2) - Zero Air Accidents for 10 consecutive quarters (O&G, FW & SAR) - No serious injury events for 6 consecutive quarters Program Updates: 0.56 0.61 • Recently
Slide 23: AOCs and Fleet
AOCs and Fleet 29 Bristow Group AOCs 44 Dry Leasing 8 # of Aircraft 3 78 2 3 16 Trinidad 1 21 12 13 1 Bristow has 10 Air Operating Certificates globally, across both helicopter and fixed wing operations Note: As of 11/30/2021 23
Slide 24: Asset Overview
Asset Overview Heavy Twin Engine: Medium Twin Engine: Light Twin Engine: Light Single Engine: 16-19 passengers, 500 mile 12 passengers, 450 mile range, 6-7 passengers, 325 mile range, 4-7 passengers, 300 mile range, range, 145 knots 145 knots 130 knots 125 knots Potential End Markets by Type(1) Miss
Slide 25: Residual Value Retention
Residual Value Retention Illustrative Component Costs “Stakeholders” with Oversight Tail Rotor Blades $140k FAA or Owner / Main Gearbox Equivalent Operator Rotor Blades, Set of 5 $1.3mm $700k Engine $1.3mm (x2) Helicopter Customers Manufacturers Oversight Tail Gearbox $110k Landing Gear Assembly Ins
Slide 26: Diverse and Technologically Advanced Fleet
Diverse and Technologically Advanced Fleet • Bristow’s fleet is concentrated in large Total Fleet (1) and medium new generation aircraft • Fleet well suited for offshore energy and governmental services, such as SAR • World’s largest commercial operator of S-92, AW189 and AW139 helicopters • Continu
Slide 27: Owned vs. Leased
Owned vs. Leased • As of November 30, 2021, total consolidated fleet count is 231 • A reduction of owned fleet by the sale of 63 aircraft since the close of the merger, contributing to strong free cash flow, and primarily as a result of selling underutilized, legacy aircraft • A reduction of leased
Slide 28: Commercial Overview
Commercial Appendix Overview
Slide 29: Client Base
Client Base Supporting Customers in Leading global provider Multiple Regions of innovative and sustainable vertical flight solutions. Strong customers across the globe; servicing several of them in multiple regions 29 (1) Customer logos may not match exact location of services provided
Slide 30: Revenues Structure
Revenues Structure Revenues Composition • Typical payment models include: ▪ Traditional monthly standing charge (MSC) + fixed hourly rate (FHR) Revenues by ▪ Ad hoc or pay as you use End- Market(1) ▪ Block / slot model ▪ Consortium model (like U.S. GoM SAR) O&G • Typical contract types include: Reve
Slide 31: Government SAR Market Development
Government SAR Market Development Country/Client Incumbent Aircract Required Contract Start (CY) Duration Netherlands/ Recently 3x Heavy 2022 10 Years Coastguard Awarded Dutch Antilles/ 2x Medium 2022 10 Years Coastguard Ireland/ 4x - 5x Super Medium 2023 10 Years Coast Guard MCA (UK SAR)/ Up to 20
Slide 32: UK SAR Contract Overview
UK SAR Contract Overview • 5x S-92A bases: Tasking Locations by Base (April 2015 to March 2021) (2) • Sumburgh, Stornoway, Tasking Location Humberside, Caernarfon, Newquay Maritime 15% • 5x AW189 bases: Coast 34% • Inverness, Prestwick, Lydd, 805 taskings Lee on Solent, St. Athan • 869 taskings Base
Slide 33: Overview of UK SAR Contract
Overview of UK SAR Contract UK SAR Contract Well Positioned for UK SAR 2G ✓• Ten-year contract expiring 12/31/2026 ✓ Good relationship with the UK Government evidenced by the contract ✓• Higher margin business resulting in higher proportional share of extension granted in September 2020 ✓ Company FC
Slide 34: Global Offshore Wind Market
Global Offshore Wind Market Offshore wind is a rapidly maturing technology. It has undergone significant developments in the past decade and is poised to play a significant role in energy transformation Global Offshore Wind Growth to 2030 (Gigawatts of capacity) Source: GWEC Market Intelligence, Jun
Slide 35: Advanced Air Mobility (AAM) Overview
Advanced Air Mobility (AAM) Overview • Electric vertical takeoff and landing (eVTOL) and short take-off and landing (eSTOL) aircraft are among several of the emerging technologies that are receiving increased prominence, with the potential to revolutionize air transportation • Significant investment
Slide 36: Potential AAM Opportunities
Potential AAM Opportunities Passenger Complementary to and Utilizes and builds upon Focus on utilizing Focused an accelerator for other existing infrastructure, existing general aviation emerging AAM regulatory landscape airports, potentially Regional Air operations and funding feeding into larger M
Slide 37: Bristow’s Relevant Expertise
Bristow’s Relevant Expertise Passenger Management & Global Air Operations & Fleet Management and Regulatory Certifications Service Delivery Infrastructure Maintenance Services Extensive global experience, Base operations worldwide government relations contacts and delivering the safe, efficient 10 A
Slide 38: Select AAM Partnerships
Select AAM Partnerships Bristow and Vertical Aerospace Group Ltd Bristow and Electra.aero Bristow and Eve Urban Air Mobility, LLC • Bristow and Vertical to cooperate on the certification, • Bristow and Electra to cooperate on the technical • Bristow and Eve to cooperate on development of operational
Slide 39: Financial Overview
Financial Appendix Overview
Slide 40: Key Financial Highlights
Key Financial Highlights $288mm $320mm $158mm $162mm LTM Adjusted Free Cash LTM Adj. EBITDA Excl. Available Liquidity(1)(2) Net Debt(1) Flow(1)(3) Asset Sales(1)(4) Strong Balance Sheet(1) Financial Flexibility • Net Leverage is ~2.0x || Gross Leverage is ~3.4x • All of the Company's unfunded capita
Slide 41: Revenues, Adjusted EBITDA and Seasonality
Revenues, Adjusted EBITDA and Seasonality • Certain of our operations are subject to some seasonality: Operating Revenues • Our North Sea operations are subject to seasonality as Operating Revenue drilling activity is lower during the winter months due to harsh weather and shorter days • Our operati
Slide 42: Operating Expenses
Operating Expenses The aggregate cost of our operations depends primarily on the size and asset mix of the fleet. Our operating costs and expenses are LTM Operating Expenses Breakdown(1) grouped into the following categories: • Personnel (includes wages, benefits, payroll taxes and savings plans); •
Slide 43: Annualized Run-Rate Synergies
Annualized Run-Rate Synergies • Since the close of the merger on June 11, 2020, Bristow has completed ~$46 million of annualized run-rate synergy projects • Synergy savings have largely been driven by G&A savings through elimination of redundant corporate expenses and $ millions realization of opera
Slide 44: Strong Free Cash Flow Generation
Strong Free Cash Flow Generation Bristow generated $153 million of Adj. Free Cash Flow excluding Net Capex and $158 million of Adj. Free Cash Flow during the last twelve months Note: As of 9/30/2021 44
Slide 45: Scheduled Lease Expirations
Scheduled Lease Expirations (1) Lease Roll Off By Year (2) (3) $10mm $11mm $25mm $6mm $31mm 14 1 11 2 10 Number of Aircraft 7 7 1 11 10 3 1 3 1 3 3 2 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 and Beyond S92 AW189 AW139 Fixed Wing/UAV (1) Dollar values reflect annual lease costs of those aircraft; actu
Slide 46: Streamlining Fleet Through Cash Generative Aircraft Sales
Streamlining Fleet Through Cash Generative Aircraft Sales Aircraft Sales(1) • Since the close of the merger, Bristow has sold 63 legacy and non-core aircraft • B407s were used in Bristow’s nearshore operations, which is no longer a strategic focus for the Company • The S76C++, Metro 23, B212 and B41
Slide 47: Fiscal Year 2022 Capital Expenditures
Fiscal Year 2022 Capital Expenditures Aircraft Other • Q2 FY22 capex saw an increase due to the purchase of a previously leased S-92 heavy $14.3 helicopter pursuant to a contractual lease obligation (the only one of its kind) and $1.9 capital investments in Australia • Other capex is primarily compo
Slide 48: Strong Balance Sheet and Liquidity Position
Strong Balance Sheet and Liquidity Position Amount Rate Maturity ($mm, as of 9/30/2021) Cash $ 239 ✓ During Q2 FY22, Bristow made a $4.6 ABL ($85mm)(2) — L+250 bps Apr-23 million payment to extinguish the Airnorth debt Senior Secured Notes $ 400 6.875% Mar-28 Lombard Debt (BULL) 86 L+225 bps Dec-23
Slide 49: Conclusion
Appendix Conclusion
Slide 50: VTOL Share Price Performance
VTOL Share Price Performance VTOL Share Price Performance Since Merger Close 40 35 30 Share Price $32.32 +101.7% 25 12/7/21 20 15 10 50
Slide 51: Why Invest in Bristow
Why Invest in Bristow Global Leader in Vertical Flight Solutions Diverse Customer Base and End Markets Well Positioned for Additional Strategic Opportunities Strong Balance Sheet with Robust Free Cash Flow Generation Meaningful Value Enhancement from Achievement of Cost Synergies 51
Slide 52: Appendix Q&A
Appendix Q&A
Slide 53: Appendix
Appendix ⮚ Fleet Overview ⮚ Balance Sheet and Liquidity Position Appendix ⮚ Reconciliation of LTM Adjusted EBITDA ⮚Appendix Reconciliation of Free Cash Flow ⮚ Operating Revenues and Flight Hours by Line of Servic ⮚ LTM Operating Revenues 53 11
Slide 54: Fleet Overview
Fleet Overview Number of Aircraft(1) Owned Leased Aircraft Consolidated Average Age Type Aircraft Aircraft Held For Sale Aircraft (years)(2) Heavy Helicopters: S-92 36 22 — 58 12 S-92 U.K. SAR 3 7 — 10 7 H225 — — 2 2 11 AW189 6 1 — 7 6 AW189 U.K. SAR 11 — — 11 5 56 30 2 88 Medium Helicopters: AW139
Slide 55: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Three Months Ended September 30, June 30, March 31, December 31, ($000s) 2021 2021 2021 2020 LTM Net loss $ 2,710 $ (14,211) $ (42,438) $ (57,260) $ (111,199) Depreciation and amortization 17,644 23,195 17,254 17,931 76,024 Interest expense 10,426 10,624 12,108 13,2
Slide 56: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow Three Months Ended September 30, June 30, March 31, December 31, ($000s) 2021 2021 2021 2020 LTM Net cash provided by operating activities $ 36,753 $ 36,441 $ 36,776 $ 25,078 $ 135,048 Plus: Proceeds from disposition of property and equipment 3,188 10,621 1,381 14,36
Slide 57: Operating Revenues and Flight Hours by Line of Service
Operating Revenues and Flight Hours by Line of Service Three Months Ended September 30, June 30, March 31, December 31, 2021 2021 2021 2020 LTM Operating revenues ($000s) Oil and gas services: Europe $ 93,420 $ 99,901 $ 93,850 $ 93,072 $ 380,243 Americas 84,207 75,192 72,785 89,898 322,082 Africa 16
Slide 58: LTM Operating Revenues
LTM Operating Revenues Three Months Ended September 30, June 30, March 31, December 31, (in millions) 2021 2021 2021 2020 LTM Revenues Europe $ 157.2 $ 163.5 $ 154.6 $ 150.9 $ 626.2 Americas 91.7 83.2 81.4 99.1 355.4 Africa 18.4 16.9 21.1 24.7 81.1 Asia Pacific 19.9 21.8 21.5 20.8 84.0 Corporate and
Slide 59: Contact Us
Contact Us Appendix Bristow Group Inc. (NYSE: VTOL) 3151 Briarpark Drive Suite 700 Houston, TX 77042 InvestorRelations@bristowgroup.com www.bristowgroup.com/investors