Bristow Group, Inc. · NYSE:VTOL
Bristow — Investor Presentation (June 2012)
35 slides from Bristow's investor presentation, Jun 12, 2012
Slide 1: Bristow Group Inc. Investor Relations Presentation
Exhibit 99.1 Bristow Group Inc. Investor Relations Presentation June 11 – 15, 2012
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: Bristow is the leading provider of helicopter services and a unique investment in oil field services
Bristow is the leading provider of helicopter services and is a unique investment in oil field services • ~20 countries • 556 aircraft • ~3,400 employees • Ticker: BRS • Stock price * : $40.03/share • Market cap * : ~$1.5 billion • Quarterly dividend of $0.20/share Bristow flies crews and light carg
Slide 4: Why Bristow?
Why Bristow? $275 • Bristow is the largest of only two global helicopter providers • Bristow is stable as we have long term contracts that serve mostly production • Bristow is growing with demand not dependent on economic or commodity cycles • Bristow’s asset values are resilient even in depressed e
Slide 5: TARGET ZERO, our industry leading safety program, creates differentiation and client loyalty
TARGET ZERO, our industry leading safety program, creates differentiation and client loyalty 2.79 2.27 0.53 • Safety is our primary core value • Bristow’s ‘Target Zero’ program is now the leading example emulated industry-wide • Bristow accident rate is less than one fifth the average rates for the
Slide 6: 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, especially production ABANDONMENT EXPLORATION SEISMIC DEVELOPMENT PRODUCTION • Largest share of revenues (>60%) relates to oil and gas production, ensuring stability and growth • There are ~ 8,000 offshore production inst
Slide 7: Bristow's contract and operations structure results in more predictable income
Bristow’s contract and operations structure results in more predictable income with significant operating leverage Revenue sources • Two tiered contract structure includes both: – Fixed or monthly standing charge to reserve helicopter capacity – Variable fees based on hours flown with fuel pass thro
Slide 8: Bristow, as the global leader, is well positioned in all key offshore basins
Bristow, as the global leader, continues to be well positioned in all key offshore basins #2 #2 #1 #1* #2 #1 #2 #1* #1 #1* #1 #1 * Unconsolidated affiliate
Slide 9: 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 • Europe represents 39% of Bristow operating revenue and 41% of adjusted EBITDAR* in Q4 FY12 • Operating revenue increased to $121.0M from $101.2M in Q4 FY11 due to increased flying activ
Slide 10: West Africa (WASBU) strategy is to maintain the premier brand
West Africa (WASBU) strategy is to maintain the proven and consistent premier brand • Nigeria represents 22% of Bristow operating revenue and 23% of adjusted EBITDAR* in Q4 FY12 • Operating revenue of $66.2M in Q4 FY12 increased from $50.8M in Q4 FY11 due to new contracts and price increases • Adjus
Slide 11: Australia (AUSBU) strategy focuses on organic growth and the Client Promise
Australia (AUSBU) strategy entails a focus on the organic growth and the Client Promise • Australia represented 14% of Bristow operating revenue and adjusted EBITDAR* in Q4 FY12 • Operating revenue of $43.4M in Q4 FY12 increased from $40.8M in Q4 FY11 due to increased utilization • Adjusted EBITDAR
Slide 12: Other International (OIBU) strategy is to develop new markets
Other International (OIBU) strategy is to develop new markets through geographic R&D and partnerships • Other International represented 11% of Bristow operating revenue and 14% of adjusted EBITDAR* in Q4 FY12 • Operating revenue decreased to $34.6M in Q4 FY12 vs. $36.3M in Q4 FY11 due to exiting Lib
Slide 13: North America (NABU) strategy is to focus on large aircraft contracts
North America (NABU) strategy is to focus on large aircraft contracts as deepwater drilling recovers • • North America represents 14% of Bristow operating revenue and 8% of adjusted EBITDAR in Q4 FY12 • Adjusted EBITDAR increased to $8.2M in Q4 FY12 vs. $3.4M in Q4 FY11 • Adjusted EBITDAR margin of
Slide 14: Our investment proposition is based on three principles
Our investment proposition is based on three principles: secular growth, financial safety, and balanced return Investment: FY 2012 - 2016 Long term value for our shareholders 2. Prudent Balance Sheet Management with ample liquidity 1. Growth not dependent on economic or commodity cycles 3. Capital R
Slide 15: Bristow Growth: A wider scope with opportunities identified between FY13 and FY17
56 1. Bristow Growth: A wider scope with 428 opportunities identified between FY13 and FY17 30 North America Brazil, Peru, Trinidad Gulf of Guinea Europe Mid East, East Africa, India, Bangladesh Malaysia, Thailand Indonesia Australia Small Medium Large Total Opportunities * Russia / Caspian
Slide 16: The market outlook is better as we enter FY13
The market outlook is better as we enter FY13 Overall activity above pre- 2008 levels Brazil growth accelerates NABU market returning • The overall market both in terms of tender activity and pricing is improving • North Sea tender activity remains at historic levels • Aircraft supply is tightening
Slide 17: Bristow enjoys the strongest balance sheet in the business
2. Bristow enjoys the strongest balance sheet in the business with ample cash flow, liquidity, and asset value Ample Liquidity with underlying asset value Significant Cash Flow Generation Prudent Balance sheet management • Bristow generated 53% more operating cash flow in FY12 compared to FY11 • In
Slide 18: Our focus on returns has yielded much higher operating cash flow generation in FY12
Our focus on returns has yielded much higher operating cash flow generation in FY12 . . . Bristow generated 53% more operating cash flow in FY12 compared to FY11 Net cash provided by operating activities See 10-K for more information on cash flow provided by operating activities 87.6 127.9 195.4 151
Slide 19: A robust cash and liquidity position
. . . leading to a robust cash and liquidity position Total liquidity as of March 31 • In FY12, cash on hand increased by ~ 125% • Total liquidity, including cash on hand and unused revolver capacity, has increased by more than 50% from FY11 • In Q4 FY12 we have also paid down over $75M of long and
Slide 20: Bristow's asset values are resilient as there is strong demand for helicopters
Bristow’s asset values are resilient as there is strong demand for helicopters after oil field services
Slide 21: Bristow has a proven commitment to a balanced return for our shareholders
3. Bristow has a proven commitment to a balanced return for our shareholders as demonstrated in the past year Share Repurchase Regular Dividend • FY12 quarterly dividend initiated at $0.15/share • We recently increased the quarterly dividend by 33% to $0.20/share • Bristow has a $100 million share r
Slide 22: Bristow can and will provide a unique and balanced return
Bristow can and will provide a unique and balanced return in various market environments The “Growth Price Signal” is provided by the commercial markets and outlook for ANNUAL EPS Growth Cash Flow Yield = OCF + A/C sales – Depreciation Market Capitalization We can provide a balanced return, but some
Slide 23: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) City West Blvd., Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com th
Slide 24: BAEB ZERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
BAEB© ZERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 25: Organizational Chart - as of March 31, 2012
Organizational Chart - as of March 31, 2012 Business Unit (* % of FY12 Operating Revenue) Corporate Region ( # of Aircraft / # of Locations) Joint Venture (No. of aircraft) Key Operated Aircraft Bristow owns and/or operates 361 aircraft as of March 31, 2012 Affiliated Aircraft Bristow affiliates and
Slide 26: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of March 31, 2012 Next Generation Aircraft Medium capacity 12-16 passengers Large capacity 18-25 passengers Mature Aircraft Models Aircraft Type No. of PAX Engine Consl Unconsl Total Ordered Large Helicopters AS332L Super Puma Twin Turbine - - AW189 Twin Turbine
Slide 27: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of March 31, 2012 (continued) Next Generation Aircraft Mature Aircraft Models Small capacity 4-7 passengers Training capacity 2-6 passengers •LACE does not include held for sale, training and fixed wing helicopters Aircraft Type No. of PAX Engine Consl U
Slide 28: Consolidated Fleet Changes and Aircraft Sales for Q4 FY12
Consolidated Fleet Changes and Aircraft Sales for Q4 FY12 Q 1 FY12 Q 2 FY12 Q 3 FY12 Q 4 FY12 YTD Fleet Count Beginning Period Delivered EC225 S-92 Bell 412EP Citation XLS Total Delivered Removed Sales (3) (5) (7) (10) (25) Other* (4) Total Removed (3) (9) (6) (5) (23) * Includes destroyed aircraft,
Slide 29: Operating Revenue, LACE and LACE rate by BU
Operating Revenue, LACE and LACE rate by BU Op revenue* LACE LACE Rate* AUSBU 148.3 7.78 NABU 176.5 5.79 WASBU 246.3 11.46 EBU 449.9 10.10 IBU 141.5 4.22 Total 1,162.5 7.89 * $ in millions Operating Revenue, LACE, and LACE Rate by BU as of March 31, 2012
Slide 30: Order and options book as of March 31, 2012
Order and options book as of March 31, 2012 Helicopter Class Delivery Date Location Contracted Helicopter Class Delivery Date Large June 2012 OIBU Medium June 2013 Large June 2012 WASBU Medium September 2013 Large December 2012 EBU Large September 2013 Large March 2013 EBU Medium December 2013 Large
Slide 31: Adjusted EBITDAR margin trend and reconciliation
Adjusted EBITDAR margin* trend and reconciliation * Adjusted EBITDAR excludes special items and asset dispositions and calculated by taking adjusted EBITDAR divided by operating revenue
Slide 32: Three Months Ended / Fiscal Year Ended reconciliation
‘Three Months Ended Fiscal Year Ended March 31, March 31, 2012 2017 2012 2017 (Unaudited) (In thousands, except per share amounts) Adjusted EBITDAR S$ 99458 § 81055 $§ 319.488 § 297,714 Gain (loss) on disposal of assets (28,610) 5,096 (31,670) 8.678 ‘Special items (3.451) (2.445) (28.061) (1,245) Re
Slide 33: Special items reconciliation
Special items reconciliation
Slide 34: Leverage Reconciliation
Leverage Reconciliation Annualized 426.0 $ *Adjusted EBITDAR exclude gains and losses on dispositions of assets Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of March 31, 2012 757.2 $ 1,521.8 $ 2,279.1 $ 33.2% Adjust for: Unfunded Pension Liability 111.7 111.7 N
Slide 35: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4 Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com th