Bristow Group, Inc. · NYSE:VTOL
Bristow — Credit Suisse Energy Summit 2012
38 slides from Bristow's conference presentation, Feb 8, 2012
Slide 1: Credit Suisse Energy Summit
Exhibit 99.1 Credit Suisse Energy Summit February 6-10, 2012 Bristow Group Inc. February 8, 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 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 • 550 aircraft • ~3,400 employees • Ticker: BRS • Stock price*: $48.63 $67 • Market cap*: ~$1.8 billion
Slide 4: Strategically positioned for global growth
Strategically positioned for global growth • #1 or #2 market position in the major oil and gas provinces: North Sea, GoM, Australia, West Africa and Brazil • Industry-leading safety performance—the key customer requirement • New-technology fleet of medium and large helicopters meets the needs of fas
Slide 5: 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 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 • Largest share of revenues (>60%) relates to Typical revenues by segment oil and gas production, ensuring stability and growth Other 10% Exploration 20% • There are ~ 8,000 offshore production installations worldwide—comp
Slide 7: Bristow's contract and operations structure results in more predictable income
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 8: Europe (EBU) Outlook: Growth is surprisingly resilient
Europe (EBU) Outlook: Growth is surprisingly resilient Business Strategy and Overview: • EBU is our largest BU with significant growth opportunities to both diversify and increase market share • Annual Revenue ~ $550 million • # of LACE*: 46 (42 Heavy, 15 Medium) • LACE Rate* (annualized): $9.6 mill
Slide 9: West Africa (WASBU) Outlook
West Africa (WASBU) Outlook: Increased offshore deepwater development and competition and competition Business Strategy and Overview: • WASBU strategy is to maintain the proven and consistent premier brand • Annual Revenue: circa $250 million • # of LACE*: 22 (mostly medium/small aircraft) • LACE Ra
Slide 10: Australia (AUSBU) Outlook
Australia (AUSBU) Outlook: Mid and Long term outlook is positive; Expansion delayed Business Strategy and Overview: • AUSBU strategy entails a focus on the organic growth and the Client Promise • # of LACE*: 20 • Annual Revenue: circa $160 million • LACE Rate* (annualized): circa $7.0 million • Mark
Slide 11: Other International (OIBU) Outlook: Emerging growth
Other International (OIBU) Outlook: Emerging growth Business Strategy and Overview: • OIBU strategy is to develop new markets through geographic R&D and partnerships • Annual Revenue: circa $141 million • # of LACE*: 38 • LACE Rate* (annualized): $3.8 million • Multiple countries and joint ventures
Slide 12: North America (NABU) Outlook: Slow but steady improvement
North America (NABU) Outlook: Slow but steady improvement Business Strategy and Overview: • NABU strategy is to focus on key contracts • Annual Revenue: circa $180-200 million • # of LACE*: 30 • LACE Rate* (annualized): $5.9 million • Market Share: 28% Outlook: • FY12 GoM and Alaska drilling permits
Slide 13: Introduction to LACE and the LACE Rate
Translating these opportunities into revenue growth: Introduction to LACE and the LACE Rate LACE Math 100% per # of Large Aircraft +50% per # of Medium Aircraft +25% per # of Small Aircraft = Total # of LACE Aircraft x LACE Rate (Revenue/LACE) = Revenue 13
Slide 14: LACE and LACE Rate trends
Translating these opportunities into revenue growth: LACE and LACE Rate trends LACE and LACE Rate excludes Bristow Academy, affiliate aircraft, aircraft held for sale, aircraft construction in progress, and reimbursable revenue; see appendix for LACE calculation 14
Slide 15: Clients have sharply increased their focus on contractor risk
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 16: Bristow's Client Promise: Creating value through differentiation
Bristow’s Client Promise is in response to this client focus: Creating value through differentiation 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
Slide 17: Bristow's new 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 17
Slide 18: Understanding Bristow Value Added (BVA)
Understanding Bristow Value Added (BVA): Treat capital like any other cost • BVA is the key measure to define financial success • BVA is robust enough to captures all trade-offs: Revenue Differentiation After Tax Margins Sustainability Asset Intensity Risk Reinvestment Rate * Represents the average
Slide 19: Operating lease strategy – opportunistically entering market
Operating lease strategy – opportunistically entering market • Aircraft leasing market is very attractive to Bristow, offering lower rates and better terms than previously anticipated • Our initial goal is to utilize this financing strategy for up to 20-30 percent of our LACE aircraft over the next
Slide 20: Understanding prudent balance sheet management
Understanding 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 Capital • Leases used for initially no more than 20-30% of total Bristow LACE Structure • Adjusted Debt/Capital Ratio less t
Slide 21: Financial highlights: Revised FY12 guidance
Financial highlights: Revised FY12 guidance • EPS guidance range $2.90 - $3.10, excluding aircraft sales and special items • Depreciation and amortization expense ~ $90 – $95 million • SG & A expense ~ $130 - $135 million • Interest expense ~ $35 - $40 million • Tax ~ 20% - 24 % (assuming revenue ea
Slide 22: Understanding Bristow's unique, balanced investment thesis
Understanding Bristow’s unique, balanced investment thesis 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 financ
Slide 23: 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 735 735 116 FY11 balance Operating cash flow Asset sales Aircraft purchases Other capex Maintain optimal Available for capital structure di
Slide 24: Today's Key Takeaways
Today’s Key Takeaways Target Zero will Premier service provider with excellent secular expansion opportunities remain a top Growth to be executed with care and discipline priority Expand margins and revenue growth Client Promise ensures Deepen client relationships with premium market share with the
Slide 25: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) 2103 City West Blvd., 4th Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com/investorrelations 25
Slide 26: Appendix
Appendix BEC ERO ACCIDENTS / ZERO DOWNTIME / ZERO COMPLAINTS
Slide 27: Organizational Chart
Organizational Chart - as of December 31, 2011 Operated Aircraft Bristow owns and/or operates 364 aircraft as of December 31, 2011 Affiliated Aircraft Key Bristow affiliates and joint ventures operate 186 aircraft Corporate as of December 31, 2011 Business Unit (* % of YTD FY12 Operating Revenue) Re
Slide 28: Aircraft Fleet – Medium and Large
Aircraft Fleet – Medium and Large As of December 31, 2011 Aircraft Medium capacity 12-16 passengers Type No. of PAX Engine Consl Unconsl Total Ordered Large Helicopters AS332L Super Puma 18 Twin Turbine 30 - 30 - AW189 16 Twin Turbine - - - 6 EC225 25 Twin Turbine 18 - 18 - Mil MI 8 20 Twin Turbine
Slide 29: Aircraft Fleet – Small, Training and Fixed
Aircraft Fleet – Small, Training and Fixed As of December 31, 2011 (continued) Small capacity 4-7 passengers Training capacity 2-6 passengers Next Generation Aircraft Mature Aircraft Models •LACE does not include held for sale, training and fixed wing helicopters 29
Slide 30: Consolidated Fleet Changes and Aircraft Sales for Q3 FY12
Consolidated Fleet Changes and Aircraft Sales for Q3 FY12 Aircraft held for sale by BU Fleet changes EBU WASBU AUSBU OIBU NABU Total Large 3 - 3 - - 6 Medium 2 1 1 3 1 8 Q 1 FY12 Q 2 FY12 Q 3 FY12 YTD Small - 2 - - - 2 Fleet Count Beginning Period 373 372 366 373 Total 5 3 4 3 1 16 Delivered EC225 2
Slide 31: Order and options book as of December 31, 2011
Order and options book as of December 31, 2011 31
Slide 32: Adjusted EBITDAR margin trend
Adjusted EBITDAR margin trend 1) Calculated by taking adjusted EBITDAR divided by operating revenue 2) Adjusted EBITDAR excludes special items and asset dispositions 32
Slide 33: Adjusted EBITDAR reconciliation
Adjusted EBITDAR reconciliation 33
Slide 34: Operating margin trend
Operating margin trend Bristow Group Operating Margin Trend Actual 2008 2009 2010 2011 2012 As Reported Full Year Full Year Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 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% 15.5% WASBU 17.9% 21.5% 24.9% 29.3% 25.4% 34.7% 2
Slide 35: GAAP reconciliation
GAAP reconciliation Three Months Ended Nine Months Ended December 31, December 31, 2011 2010 2011 2010 (In thousands, except per share amounts) Adjusted EBITDA $ 68,933 $ 64,435 $ 189,132 $ 195,221 Gain (loss) on disposal of assets (2,865) (33) (3,060) 3,582 Special items _ 1,200 (24,610) 1,200 Inte
Slide 36: Special items reconciliation
Special items reconciliation 36
Slide 37: Leverage Reconciliation
Leverage Reconciliation Debt Investment Capital Leverage (a) (b) (c) = (a) + (b) (a) / (c) (in millions) As of December 31, 2011 $ 832.8 $ 1,523.5 $ 2,356.3 35.3% Adjust for: Unfunded Pension Liability 97.2 97.2 NPV of Lease Obligations 165.0 165.0 Guarantees 15.5 15.5 Letters of credit 1.7 1.7 Adju
Slide 38: Contact Us
Contact Us Bristow Group Inc. (NYSE: BRS) th 2103 City West Blvd., 4 Floor Houston, Texas 77042 t 713.267.7600 f 713.267.7620 bristowgroup.com 38