Bristow Group, Inc. · NYSE:VTOL
Bristow — 2008 Lehman Brothers CEO Energy/Power Conference
32 slides from Bristow's conference presentation, Aug 29, 2008
Slide 1: 2008 Lehman Brothers CEO Energy/Power Conference
2008 Lehman Brothers CEO Energy/Power Conference September 4, 2008
Slide 2: Forward-looking Statements
3 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, capabiliti
Slide 3: Investment Highlights
Investment Highlights Strong demand / tight supply for helicopter services Substantial investment program in new, larger helicopters Close relationships with world class customers with global operations Global footprint - in over 20 countries Financial flexibility to pursue growth Experienced, prove
Slide 4: Bristow At A Glance
Bristow At A Glance Ticker: BRS Stock price: $44.99 (1) Market cap: ~$1.4 billion (1) (3) At July 31, 2008 At June 30, 2008 Based on 35.4 million fully-diluted shares outstanding; assumes Mandatory Convertible Preferred Stock converted to common equity assuming maximum number of shares converted (4)
Slide 5: Our Business
Our Business We are involved in all phases of the offshore oil and gas lifecycle, predominately production-related activities Seismic Construction Drilling Production Abandonment Fly crews and light cargo to production platforms and drilling rigs offshore
Slide 6: Our Customers are World Leaders
Our Customers are World Leaders
Slide 7: Bristow Safety Record Better Than Industry
Air Accident Rate Bristow Safety Record Better Than Industry Note: Bristow data is the average for the period April 1, 2003 - March 31, 2008 OGP data is the global oil and gas industry helicopter average for the period 2002-2006 (the most recent available data) HAI data is US civil turbine engined h
Slide 8: Global Footprint Provides Diversity of Cash Flow
Global Footprint Provides Diversity of Cash Flow Global diversity provides flexibility in deploying our aircraft to the most attractive markets 74% of revenue is international % of 1st Qtr FY2009 Revenue
Slide 9: Strong Outlook for Oil and Gas
Strong Outlook for Oil and Gas Global demand for energy continues to rise Increasing production operating expenditures Increasing exploration and development capital expenditures Deepwater and international development is driving demand for additional helicopters, especially medium and large Source:
Slide 10: Helicopter Supply Shortage
Helicopter Supply Shortage Companies with existing orders and options for helicopters are in the best competitive position Sensitivities on Retirement: Worldwide Oil & Gas Helicopter Fleet Current fleet level Source: PFC Energy Note: Demand reflects visible prospects only Supply lines in chart inclu
Slide 11: Aging Fleet Will Exacerbate Supply Shortage
Aging Fleet Will Exacerbate Supply Shortage With a large number of helicopters approaching retirement, the global oil and gas helicopter fleet will continue to experience supply shortages 28% are more than 25 years old Source: PFC Energy 52% are more than 15 years old 403 161 138 185 179 318 108 Glo
Slide 12: Helicopter Day Rates Have Steadily Increased
Helicopter Day Rates Have Steadily Increased The majority of our revenue is attributable to production activity - paid from oil companies' operating expenditures Source: Bristow Business Development Bristow Helicopter Day Rates in US Gulf of Mexico
Slide 13: Bristow Growth Objectives
Bristow Growth Objectives Five-year growth goals include: Doubling revenues to $1.5 billion by FY11 Improving overall return on capital employed ("ROCE") to around 20%(1) Expect to accomplish growth goals mainly through new helicopter purchases We are aware of future business opportunities of approx
Slide 14: Fleet Investment Plans
Fleet Investment Plans Helicopter Capital Expenditures Helicopter Deliveries Note: Fiscal year ended March 31 (updated as of June 30, 2008); includes 8 training helicopters Note: Fiscal year ended March 31 (updated as of June 30, 2008); includes expenditures for 8 training helicopters 19 $339 $317 $
Slide 15: ROCE Targets
ROCE Targets We purchase and deploy our aircraft fleet using ROCE targets ROCE = EBITDA / (fair market value of consolidated aircraft, related working capital plus our investment in unconsolidated affiliates) Country specific ROCE hurdle rates have been established Average ROCE: FY'06 = 13% FY'08 =
Slide 16: Strong Helicopter Aftermarket
Strong Helicopter Aftermarket As part of our growth strategy, we intend to sell lower margin aircraft and reinvest in higher margin helicopters 100+ helicopters older than 25 years are the most likely candidates for future sales Entered into an agreement to sell 53 small helicopters in the U.S. GOM
Slide 17: Key Accomplishments
Key Accomplishments Enhanced relationships with key global customers Implemented ROCE targets Improved profitability Established global fleet management Integrated global operations Divested non-core Grasso Production Management and Turbo Engines Since fiscal year 2005, the Bristow management team h
Slide 18: A Global Leader in Helicopter Services
Bristow's values represent core beliefs about how to conduct business A Global Leader in Helicopter Services Clients choose Bristow because we deliver high quality service anywhere in the world Our mission is to provide the safest and most efficient helicopter services and aviation support worldwide
Slide 19: Financial Policy
Financial Policy Use return on capital employed as principal financial metric To manage existing fleet As hurdle rate for new aircraft orders Remain conservatively capitalized Adjusted debt(1) / EBITDAR(2) of approximately 3.0x to 3.5x Future growth to be funded with appropriate blend of cash flow f
Slide 20: Investment Highlights
Investment Highlights Strong demand / tight supply for helicopter services Substantial investment program in new, larger helicopters Close relationships with world class customers with global operations Global footprint - in over 20 countries Financial flexibility to pursue growth Experienced, prove
Slide 21: Appendix
Appendix
Slide 22: Key Milestones
Key Milestones 1955 Bristow Helicopters Founded 1969 Offshore Logistics Founded 1996 Acquired Bristow Helicopters 2004 & 2005 Internal Review and Senior Management Changes 2006 Integrated the company and changed name to Bristow Group (NYSE:BRS) 2007 Formed Global Training Division, acquired Bristow
Slide 23: Organizational Chart
Organizational Chart Note: Percent of total helicopter service revenue as of June 30, 2008 Corporate Business Unit Division (No. of Aircraft/Bases) Country Joint Venture
Slide 24: Senior Management Team
Senior Management Team Bill Chiles President and Chief Executive Officer July 2004 35* Meera Sikka Vice President Global Business Development 20* Mark Duncan Senior Vice President Western Hemisphere January 2005 24* Perry Elders Executive Vice President & Chief Financial Officer November 2005 25* Ra
Slide 25: Aircraft Fleet
Aircraft Fleet As of June 30, 2008 Next Generation Aircraft Mature Aircraft Models
Slide 26: Fleet Investment Plans - Delivery Schedule
Fleet Investment Plans - Delivery Schedule Helicopter Delivery Dates - Orders and Options by Fiscal Quarter Our helicopters are typically put into service 30 to 60 days after delivery Note: Quarters shown are on a fiscal year ended March 31, 2008 basis; excludes 8 training helicopters on order
Slide 27: Fleet Investment Plans - Delivery Details
Fleet Investment Plans - Delivery Details Helicopter Purchase Orders (6/30/2008) Helicopter Purchase Options (6/30/2008) Note: Does not include 8 training helicopters on order
Slide 28: Pilot Supply - Bristow Academy
Pilot Supply - Bristow Academy Bristow Academy provides Bristow a strategic advantage over competitors Hired 47 and 11 graduates in fiscal 2008 and the first quarter of fiscal 2009, respectively Supplies pilots for use in our global operations Provides ongoing recurrent training for existing pilots
Slide 29: Management's Stake in Bristow
Management's Stake in Bristow Note: As of June 30, 2008 (1) Senior management team restricted stock units vest based on time and stock price growth
Slide 30: EBITDA Reconciliation
EBITDA Reconciliation Garman 200 ZO 200220032008 Income from continuing operations S737 S715 $an.9ue $39,503 $40,214 Income tax expense are “13207 «19080170 18.476 interest expense wecer 18305 «18823, taa0e T0820 Depreciation and amorzaton aise 33112 a3.9aa 375083977 EBITDA Seiiess _$01300 _st09767
Slide 31: ROCE Reconciliation
ROCE Reconciliation ROCE Reconciliation
Slide 32: ROCE Reconciliation
ROCE Reconciliation ROCE Reconciliation
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