 Bristow Group Inc.
Analyst Day 2013
April 10, 2013
Exhibit 99.1 |
 2
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 requirements and funding
sources therefor, fleet composition, capabilities and results; modeling
information, including the impact of the UK SAR award on expected, revenues,
earnings, EPS growth, expected EBITDAR, BVA, asset FMV, cash flow, operating
margins, debt ratios, interest and rent coverage and other financial
projections; plans, strategies and objectives of our management, including
our plans and strategies to grow earnings and our business, our general
strategy going forward and our business model; expected actions by us and by third
parties, including our customers, competitors and regulators; the valuation
of our company and its valuation relative to relevant financial indices;
assumptions underlying or relating to any of the foregoing, including
assumptions regarding factors impacting our business, financial results and
industry; and other matters. Our
forward-looking
statements
reflect
our
views
and
assumptions
on
the
date
of
this
presentation
regarding future events and operating performance. They involve known and unknown
risks, uncertainties
and
other
factors,
many
of
which
may
be
beyond
our
control,
that
may
cause
actual
results to differ materially from any future results, performance or achievements
expressed or implied by the
forward-looking
statements.
These
risks,
uncertainties
and
other
factors
include
risk
of
contract
terminations, higher than anticipated costs, adverse capital market conditions and
those discussed under the captions “Risk Factors”
and “Management’s Discussion and Analysis of Financial Condition
and
Results
of
Operations”
in
our
Annual
Report
on
Form
10-K
for
the
fiscal
year-ended
March
31,
2012 and our Quarterly Report on Form 10-Q for the quarter ended December 31,
2012. We do not undertake any obligation, other than as required by law, to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. |
 Safety Moment
SAFETY MOMENT
3 |
 4
Map of emergency exits |
 5
Agenda
•
Introduction
(Linda McNeill, Director Investor Relations)
•
Bristow’s Vision and Mission
(Bill Chiles, President and CEO)
•
UK Search and Rescue Contract
(Jeremy Akel, SVP Global Operations;
Mike Imlach, Managing Director Bristow Helicopters Limited)
•
UK SAR Finance Discussion
(Jonathan Baliff, SVP and CFO;
George Bruce, Global Operations Finance Director)
•
Future market opportunities
(Mark Duncan, SVP Commercial)
•
Lunch
(Hank Williams, General Manager Cougar Helicopters)
|
 6
Bristow’s Vision and Mission
Bill Chiles, President and CEO |
 7
Objectives for today
•
Discuss operational details of UK Search and
Rescue (SAR) contract
•
Understand the expected financial impact of UK
SAR
•
Discuss the implications of UK SAR on our
business model
•
Review future global market opportunities |
 8
Bristow is the leading provider of helicopter
transportation services to the global offshore industry
•
~20 countries
•
556 aircraft
•
~3,400 employees
•
Ticker: BRS
•
Stock price*: $63.08
•
Market cap*: ~$2.3 billion
•
Secured: BBB-/Ba1 (stable outlook)
•
Corporate: BB/Ba2 (stable outlook)
•
FY13 TSR: 40.5%
$67
* Based on 36.6 million fully diluted weighted average shares outstanding for the
nine months ended 12/31/2012 and stock price as of 04/05/2013 Bristow flies
crews and light cargo to production platforms, vessels and rigs |
 9
Our Vision, Mission and Core Values
Our mission is to provide the safest and
most efficient helicopter services and
aviation
support
worldwide.
We
will
achieve
this by focusing on and committing to:
•
Working in innovative partnerships with
customers
•
Further developing highly professional
workforce
•
Expanding business and extending horizons
Bristow’s values represent core beliefs about
how to conduct business:
•
Safety
–
unwavering
focus
on
safety
and
maintaining
a
“Target
Zero”
goal
of
no
accidents
•
Quality and Excellence
–
set and achieve high
standards in all operations
•
Integrity
–
“do the right thing”
•
Fulfillment
–
develop talents and enjoy work
•
Teamwork
–
communicate openly and respect
each other
•
Profitability
–
make wise decisions and grow
the business
Our Mission
Our Values
Our vision represents our destination and what we want to accomplish:
“One global team setting the standard for
excellence, growing and succeeding together…soaring above the competition.” Our
Vision Through these commitments, we will provide
industry-leading value to our customers,
employees and shareholders while
remaining true to our core values |
 10
Our strategic objectives 2012-2016 |
 11
•
World-class performance and a commitment to do the
best job we can in everything we do
•
A means of achieving our strategic objectives for
people, growth, execution and clients
•
An ongoing journey where every employee plays an
important role in continuous improvement
•
It provides a single focus for all of our present
initiatives –
Target Zero, Client Promise and BVA
What do we mean by “Operational Excellence”?
|
 12
•
Operational Excellence will
help Bristow achieve lasting
competitive differentiation
•
It aligns Bristow with its
clients
•
It represents best practices
•
Leadership has a long-term
strategic plan for Bristow to be
the
leading global helicopter
services company, and we will
get there with our commitment
to Operational Excellence
Why pursue Operational Excellence? |
 13
TARGET
ZERO
,
our
industry
leading
safety
program,
creates
differentiation
and
client
loyalty
•
Safety is our primary core value
•
Bristow’s ‘Target Zero’
program is now the leading
example emulated industry-wide
•
Safety performance accounts for 25% of management
incentive compensation
•
Flight Safety Foundation (FSF) awarded its 2012
President’s Citation to Bristow Group’s Target Zero
program |
 14
Bristow services are utilized in every phase of
offshore oil and gas activity
•
Largest share of revenues (>60%) relates to
oil and gas production, ensuring stability
and growth
•
There are ~8,000 offshore production
installations worldwide -
compared with
>600 exploratory drilling rigs
•
~1,700 helicopters servicing oil and gas
industry of which Bristow’s and affiliates
fleet is approximately one-third
•
Bristow revenues primarily driven by
operating expenditures
ABANDONMENT
EXPLORATION
SEISMIC
H e l i c o p t e r t r a n s p o r t a t i o
n s e r v i c e s Typical revenues by segment
DEVELOPMENT
PRODUCTION
Exploration
20%
Development
10%
Production
60%
Other 10% |
 15
Bristow’s contract and operations structure results in a more
predictable income with significant operating leverage
Revenue sources
•
Our ongoing capex is low as we expense almost all of our
maintenance costs •
Bristow earns 65% of contract revenue through the monthly standing charge (MSC)
in most markets
•
Two tiered contract structure includes both:
•
Fixed or monthly standing charge to reserve helicopter capacity
•
Variable fees based on hours flown
Operating income
Fixed
monthly
65%
Variable
hourly
35%
Fixed
monthly
70%
Variable
hourly
30% |
 16
FY13 total stock return
Source:Factset (from April 1, 2012 to March 29, 2013)
Note:
Simmons
Offshore
Transportation
Service
Index
includes:
Bourbon,
Dockwise,
DOF,
ERA
Group
Inc.,
Farstad
Shipping,
Gulfmark,
Hornbeck,
Kirby
Corp,
Seacor,
Solstad
Offshore and Tidewater
04/01/12
09/28/12
03/29/13
80
100
120
140
2.1%
3.1%
13.6%
14.0%
18.4%
40.5%
Oil Service Index
Simmons Offshore Transportation Index
S&P 500
Bristow
ISS
Glass Lewis |
 17
UK Search and Rescue (SAR) Contract
Jeremy Akel, SVP Global Operations
Mike Imlach, Managing Director, Bristow
Helicopters Limited and European Business Unit
Director |
 18
Importance of this contract for the UK
government
•
Releases UK military from the obligation of providing
SAR resulting in a better value for money solution
(eliminates military overhead)
•
SAR is not a front line activity, so the UK government
is able to release people back to the military
•
Cohesive
operational
emergency
service
system
-
one
control unit that coordinates all rescues through this
system
•
Replaces existing aged equipment
•
Local content job creation |
 19
Why was Bristow Helicopters Limited (BHL)
awarded UK SAR contract?
BHL will provide modern, robust,
reliable and effective SAR system for
the UK through:
•
Commitment to operational
excellence
•
SAR service continuity
•
Delivering a national solution
•
Demonstrating value for money
•
Meeting and exceeding
environmental and regulatory
requirements |
 20
SAR service continuity
•
Ten bases equipped with 22 technologically-advanced helicopters
•
Two aircraft at each base plus one additional of each aircraft type for training
purposes
•
State-of-the-art SAR and safety technology:
•
Night vision
•
Mission management
•
Increased on-board medical capabilities
•
Infrared cameras
•
SAR data linking
•
10-year contract with a two-year extension with flying operations
commencing in April 2015
•
Implementation of training and infrastructure developments will begin in
January 2014
•
Resilience of the service –
managed transition plan provides continuity
•
De-risk through two aircraft types |
 21
Bristow bases overall radius of action coverage
•
Availability 24/7/365
•
Cover all UK SAR incidents expected
10,000 flying hours per year (6,000
training and 4,000 missions)
•
Ability to surge up to seven aircraft
simultaneously to a single SAR incident
•
Average annual number of missions
between 250 -
300 per base
•
Aeronautical, inland and maritime
missions
•
Ability to launch within 15 minutes
between
the
hours
of
08:00
-
22:00
and
45 minutes between 22:00 -
08:00 |
 22
Bristow’s 36 year history of world class SAR
services in the UK
•
Long history of world class UK SAR
services
•
From 1971 to 2007 Bristow operated
S-55 helicopters at RAF Manston in
Kent and S-61 SAR helicopters from
Stornoway, Sumburgh, Portland and
Lee-on-Solent
•
Over 44,000 SAR operational hours
in the UK and over 15,000 SAR
missions
•
More than 7,000 people have been
rescued by our crews and
helicopters |
 23
Global SAR service provider
•
Our affiliate, FB Heliservices,
provides all military helicopter pilot
training including SAR through the
Defence Helicopter Flying School
•
We also conduct SAR operations
in Australia, Brazil, Canada,
Cyprus, Norway, the Dutch
Antilles, the Netherlands, Trinidad,
and Russia, and provide SAR
training in Algeria and Trinidad |
 24
UK SAR management structure
ENGINEERS
100
BHL
Managing
Director
SAR
FACILITIES
MANAGER
SAR
TRAINING
BASE ADMIN
16
CHIEF
ENGINEER
CHIEF PILOT
Base Manager
REARCREW
110
•
Global quality and
standards
•
Independent auditing
function
Head of
Training
Ground
Operations
SAR Head of
Flight Ops
SAR Head of
Engineering
SAR
Finance
SAR
HR
SAR
Director
Total personnel ~ 350
PILOTS
100 |
 25
EXECUTIVE
SUMMARY
Managed transition process
•
Legally binding agreement with the UK Ministry of
Defence
•
Method to safeguard SAR activities by ensuring that
SAR pilots and crews do not leave the military
simultaneously
•
Managed transition of pilots and crews over the next
2.5 years
•
Important skills required for SAR are retained through
this process
•
Highly experienced military crews will transition at a
faster pace |
 26
•
SAR aircraft fly with a minimum
crew of four:
•
One SAR Captain
•
One SAR Co-Pilot
•
Two SAR Aircrewmen
•
One operates the rescue hoists
•
One operates the mission
management system and goes
down the wire and carries out the
rescue
•
SAR Aircrewmen are qualified
Paramedics
SAR helicopter crew composition |
 27
Bristow’s SAR people
Simon Tye B.Sc.
SAR Business Development Manager and
UK SAR Project Lead
•
Based in UK and Den Helder, the Netherlands
•
With Bristow for 15 years as a SAR helicopter pilot
•
Flown over 350 SAR missions
Dian Jonathan Lacy QGM –
“Cags”
Crewman, Winch Operator, Trainer
•
Logged over 300 SAR missions with the Royal Navy
and Bristow
•
Cags was awarded the Queen’s Gallantry Medal 2010,
the Edward and Maisey Lewis Award and an individual
commendation from the Shipwrecked Mariners Society
•
On assignment in Trinidad |
 28
EXECUTIVE
SUMMARY
Bristow’s SAR people
Tony Laws
Aircrew Training Instructor (SAR)
•
On assignment in Australia and Southeast Asia
•
With Bristow for nine years
•
Logged over 300 SAR missions
•
Received a Commendation for Bravery as Royal
Navy SAR crewman
Chris Bond
SAR Global Standards Manager and
UK SAR Technical Lead
•
Based in the UK but travels to Bristow’s various bases
around the globe
•
With Bristow for 35 years
•
Logged over 10,000 SAR hours and over 1,100 rescues |
 29
UK SAR –
Maritime Coastguard Agency
10 new bases –
long-term investment for 30+ years |
 30
Aircraft solution for UK SAR
Large aircraft solution –
Sikorsky S-92
•
Two aircraft at each operating base
•
Three aircraft at Stornoway operating / training
base
•
Preliminary cost per aircraft
is
~$35
-
$40M
Large aircraft solution –
AgustaWestland AW189
•
Two aircraft at each operating base
•
Three aircraft at Inverness operating / training
base
•
Preliminary cost per aircraft
is
~$20
-
$25M |
 31
Aircraft solution for UK SAR
Old technology
New technology
Air speed
=
145 knots
Radius of action
=
in excess of 250
nautical miles
Operational range
=
in excess of 600
nautical miles
Normal flight crew
=
4
Capacity
=
3 stretchers, 10
seated, additional
persons
Air speed
=
145 knots
Radius of action
=
in excess of 200
nautical miles
Operational range
=
in excess of 500
nautical miles
Normal flight crew
=
4
Capacity
=
2 stretchers, 6 seated,
additional persons
AW189
S-92
Air speed
=
100 knots
Radius of action
=
in excess of 200
nautical miles
Operational range
=
in excess of 500
nautical miles
Normal flight crew
=
4
Capacity
=
3 stretchers, 10
seated, additional
persons
SeaKing/S-61 |
 32
UK SAR base footprint
Stornoway
Aberdeen
Sumburgh
Humberside
Caernarfon
Inverness
Prestwick
Manston
Lee-on-Solent
Cardiff
Bristow large base
S-92 aircraft 2 at each
Newquay
Training
base
at
Stornoway with 3 S-92
Bristow large base
AW189 aircraft 2 at each
base
Training
base
at
Inverness with 3 AW189
Bristow HQ and EASA
Part-147 Training Facility
base |
 33
Base transition dates
Service Date
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Cumulative aircraft count
1
2
2
2
6
10
12
16
16
16
16
16
20
22
22
22
Sumburgh (existing facility)*
Stornoway (existing facility)*
Shared (training)
Shared (training)
Humberside (new facility)
Inverness (new facility)
Caernarfon (new facility)
Manston (new facility)
Cardiff (new facility)
Prestwick (new facility)
Newquay (new facility)
FY15
FY16
FY17
FY18
Lee-on-Solent (existing facility)
AW189 (1)
S-92 (1)
S-92 (2)
AW189 (2)
S-92 (2)
AW189 (2)
AW189 (2)
AW189 (2)
AW189 (2)
S-92 (2)
S-92 (2)
S-92 (2)
*Note that existing GAP SAR aircraft will continue to work from Sumburgh and
Stornoway facilities |
 34
UK GAP SAR and UK SAR timeline |
 35
Conclusion
•
Bristow is the preferred service provider with a
proven history of SAR services in the UK and
continued commitment to operational excellence
•
SAR service continuity through a managed
transition which includes local content job
creation
•
Demonstrates value for money and potential for
other governmental SAR opportunities |
 36
UK SAR Finance Discussion
Jonathan Baliff, SVP and CFO
George Bruce, Global Operations Finance Director |
 37
Executive summary
•
Describe the capital requirements for UK SAR and the
timing of these expenditures
•
Provide our financing strategy to meet the UK SAR
capital requirements
•
Show the impact on financial guidance, especially from
an EPS perspective
•
Highlight how UK SAR is transformative by lowering
our overall business risk while meaningfully growing
our assets |
 38
UK SAR summary
•
The UK SAR total anticipated capital requirement is ~$965M
and is expected to be funded using operating leases, cash flow
from operations and existing revolver
•
Assuming today’s base business growth profile, we do not
expect that we will need to issue equity to fund the UK SAR
capital requirements
•
GAP SAR operations to begin early FY14 and transition to the
UK SAR contract in FY18
•
Contract structure includes a MSC and a monthly variable
charge that covers flying, fuel and ancillary items
•
EPS accretion expected to begin in FY16 and ramp up with full
contract operations in FY18 |
  39
GAP SAR highlights
•
GAP SAR is already included in our 10-15% base business annual
growth rate projection provided on our last earnings call in February
2013
•
Average LACE rate for GAP SAR is expected to be similar to EBU’s
average LACE rate in FY13
•
Contract starts late Q1 FY14 in Sumburgh and early Q2 FY14 in
Stornoway; both are existing facilities
•
~$140M has been spent to date on four SAR configured S-92s with
minimal spend needed on facilities and equipment
•
All four S-92s transition from GAP SAR to UK SAR contract in FY18
Service date
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY18
FY14
FY15
FY16
FY17
UK SAR
UK SAR
S-92
(2)
S-92
(2)
(existing facility)
(existing facility)
Sumburgh
Stornoway |
 40
UK SAR sources and uses of finance
•
The table below shows the approximate expected sources and uses of finance, split
between aircraft, ground infrastructure and equipment, and pre-operating
costs * Liquidity includes cash on hand and unused revolver capacity
Year ending
USD millions
Uses
Owned aircraft
240
-
-
15
10
215
-
-
-
Leased aircraft
405
-
-
-
175
90
-
140
-
Ground infrastructure and
equipment
125
-
-
5
55
45
10
10
-
Pre-op cost to be financed
195
-
5
15
85
90
-
-
-
Total
965
-
5
35
325
440
10
150
-
Sources
BRS liquidity*
540
-
5
35
150
350
-
-
-
UK SAR cash flow
20
-
-
-
-
-
10
10
-
Aircraft leases
405
-
-
-
175
90
-
140
-
Total
965
-
5
35
325
440
10
150
-
Dec 16
Dec 17
Dec 18
TOTALS
Dec 11
Dec 12
Dec 13
Dec 14
Dec 15 |
  41
Service Date
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Cumulative aircraft count
1
2
2
2
6
10
12
16
16
16
16
16
20
22
22
22
Sumburgh (existing facility)*
Stornoway (existing facility)*
Shared (training)
Shared (training)
Humberside (new facility)
Inverness (new facility)
Caernarfon (new facility)
Manston (new facility)
Cardiff (new facility)
Prestwick (new facility)
Newquay (new facility)
FY15
FY16
FY17
FY18
Lee-on-Solent (existing facility)
AW189 (1)
S-92 (1)
S-92 (2)
AW189 (2)
S-92 (2)
AW189 (2)
AW189 (2)
AW189 (2)
AW189 (2)
S-92 (2)
S-92
(2)
S-92 (2)
UK SAR aircraft transition dates
*Note that existing GAP SAR aircraft will continue to work from Sumburgh and
Stornoway facilities |
 42
Bristow’s current perspective on the capital
expenditure profile for UK SAR
•
Four S-92s for GAP SAR have already been
purchased for ~$140M
•
Total UK SAR capital expenditures are
estimated at ~$965M
•
Capital expenditures include ~$560M and are
shown in the table to the right:
•
~$195M of pre-operating costs will be
deferred and amortized over the length
of the contract
•
Owned aircraft (including S-92s and
AW189s) are ~$240M
•
Ground infrastructure and equipment is
~$125M
•
Leased aircraft including S-92s and AW189s
are ~$405M which includes the ~$140M
related to GAP SAR
$25
$25
$270
$210
$20
$10
$0
$50
$100
$150
$200
$250
$300
FY13
FY14
FY15
FY16
FY17
FY18
Capital Expenditure Profile |
 43
UK SAR Financing Strategy and
Impact |
 44
Bristow’s overall financial strategy for UK SAR
involves a corporate guaranteed solution
•
Several prospective lessors provided support letters in October 2012
and another ~15 prospective lessors submitted financing proposals
•
~60% of the aircraft will be leased and letters of intent are close to
being executed with several lessors
•
Bristow’s capital strength was a competitive advantage in securing this
tender with competitively priced leases
Cash
Flow and
Support
•
$431M of liquidity as of December 31, 2012 comprised of $232M in
cash and equivalents and $199M in revolver borrowing capacity
•
Bristow officer’s certificates approved the use of cash for UK SAR
•
Parent company guarantee provided by Bristow in support of UK SAR
tender
Operating
Leases |
 45
UK SAR can be financed and with prudent
balance sheet management maintained
•
Backstop facility put in place during
the tender process and permanent
financing is being arranged
•
Anticipated 10-15% long-term annual
growth in the base business yields
significant operating cash flow
•
UK SAR capital requirements to be
funded with operating leases, cash
flow and expanded revolver capacity
•
Prudent balance sheet management
is maintained as adjusted debt-to-
equity is not expected to exceed 80%
and interest and rent coverage is not
expected to fall below 2.75x
$0
$100
$200
$400
$500
$600
$700
$800
$900
FY13
FY14
FY15
FY16
FY17
FY18
Funding Requirement vs.
Bristow's Liquidity
Cash balance before UK SAR expenditures
Undrawn borrowing capacity
Bristow's financing requirement
$300 |
 46
UK SAR stand alone financial performance
during contract period is highly stable
•
SAR-configured aircraft have a higher capital requirement (S-92s
cost ~30% more and AW189s cost ~15% more than oil and gas
aircraft)
•
~85%/15% mix of MSC/Variable in UK SAR vs. ~70%/30% mix in
EBU
•
LACE rates at full run-rate is ~$12M; better than those in the
European Business Unit (EBU) and have a larger portion of fixed
MSC revenue
•
Anticipated UK SAR EBITDAR margins in the mid 40% range are
higher than historical EBU margins
•
Potential contract risks include, but are not limited to, unsatisfactory
performance and termination for convenience which the Department
for Transport (DfT) could exercise with six months notice
|
 47
Bristow UK SAR financial parameters
Total
Contract
Financial
Metric
Anticipated
Contract
Totals*
Operating Revenue
~$2,500M
EBITDAR
~$1,100M
BVA
~$300M
•
UK SAR contract is ~10 years in term with an option for a two year
extension by the UK government
•
Two training aircraft are delivered in FY15 with the revenue anticipated
to build between FY16 to FY18 as operational aircraft come on station
•
At full run rate, UK SAR is BVA, earnings and cash flow accretive
* Includes costs associated with contract start up and excludes two year
extension |
 48
Base business adj. EPS growth rate can be maintained as
UK SAR contract builds to forecast ~$1/share contribution
* Base business projections are for illustrative purposes only and are not intended
to be viewed as specific annual guidance $2.58
$2.69
$3.08
$3.12
$3.73
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
FY18
UK SAR expected to contribute
~$1.00
to adj. EPS
by FY18
FY13 guidance mid-point
Base adj. EPS |
 49
UK SAR is transformative by shifting contract
mix to even more stable cash flow
•
Bristow’s largest share of revenue remains related to oil and gas
production, providing stability and growth opportunities
•
UK SAR brings more stable cash flow (production, SAR and
other) to ~75% given higher and more certain margin revenue
streams
Before UK SAR
After UK SAR
* Based on historical averages
Other
10%
Production
60%
Exploration
20%
Development
10%
Typical revenues by segment
Other
9%
Production
53%
Exploration
17%
Development
9%
UKSAR
12%
Estimated revenues by segment* |
 50
Bristow asset FMV including UK SAR aircraft are expected to
remain resilient and higher than current asset FMV per share
The UK SAR aircraft are expected to add
significant asset FMV in FY18, even after
netting the imputed leases
$44.06
$53.62
$52.89
~ $71
$35
$40
$45
$50
$55
$60
$65
$70
$75
12/2010
3/2011
6/2011
9/2011
12/2011
3/2012
6/2012
9/2012
12/2012
Book value of equity per share
FMV of assets per share
Avg Closing Price
FMV of assets per share including SAR |
 51
Concluding perspectives
•
The UK SAR total capital requirement is ~$965M and Bristow
intends to maintain prudent balance sheet management throughout
contract start up and full operations
•
Assuming today’s base business growth profile, we do not expect to
issue equity to fund the UK SAR capital requirements
•
GAP SAR operations and UK SAR spend is to begin in FY14 with
our expected 10-15% EPS long-term growth rate maintained
•
EPS accretion is expected to begin in FY16 and ramps up to
~$1/share with full FY18 operations
•
UK SAR is anticipated to be transformative by shifting contract mix to
more stable cash flow while increasing our FMV per share
|
 52
Future Market Opportunities
Mark Duncan, SVP Commercial |
 53
Future market opportunity
•
SAR
•
The evolving SAR market
•
Oil and gas SAR
•
Oil and gas market update
•
EC225
•
Opportunity tracker 2013-2018
•
Aircraft supply/demand
•
Opportunity tracker 2013-2014 |
 54
The evolving SAR market
•
Further outsourcing of SAR to civilian sector will continue
as it is successfully deployed
•
Civilian SAR (non-oil and gas) today
•
UK Gap SAR (seven aircraft)
•
Ireland SAR (five aircraft)
•
Dutch Antilles (two aircraft)
•
UK SAR (22 aircraft)
•
Civilian SAR (non-oil and gas) next to be awarded
•
Falklands (three aircraft)
•
Svalbard (two aircraft)
•
Netherlands (three aircraft)
•
Norway (18 aircraft –
operation may not be outsourced)
•
Nigeria (two aircraft) |
 55
aircraft
4
4
4
42
2
12
10
North America
South America
West Africa
Europe
Australia
Russia / Sakhalin
Greenland
Oil and gas SAR
6 |
 56
Oil and Gas Market Update |
 57
EC225 update
•
~80 EC225 continue to be suspended from operations globally
(16 from BRS)
•
BRS mainly affected in Aberdeen; however, we have
recovered well by redeploying or increasing utilization of
existing aircraft
•
In addition to aircraft, crewing is the critical bottleneck in
Aberdeen
•
October 2012 = 81 pilots
•
April 2013 = 127 pilots (+ 20 in training)
•
EC claims to have found the root cause, which is being
reviewed by authorities and independent parties |
 58
Aircraft capacity in Aberdeen
–
October
22,
2012
–
to date
Date
No of Operational
Aircraft
Comments
October 22, 2012
14
12 EC225s, 2 S-92s
October 23, 2012
2
2 S-92s
October 24, 2012
3
1 S-76C++ from Southern North Sea (SNS)
October 26, 2012
4
1 AS332L from SNS
October 28, 2012
5
1 S-92 from Norway
October 29, 2012
6
1 S-92 (Cougar) – lease extended
November 5, 2012
7
1 AW139 from SNS
November 15, 2012
6
1 S-92 (Cougar) - lease ended
November 16, 2012
7
1 S-76C++ from SNS
November 18, 2012
6
1 S-92 from Norway ends
December 6, 2012
7
1 AS332L (refurbished)
December 12, 2012
8
1 S-92 on Line (new)
December 13, 2012
9
1 S-92 on Line (new)
December 22, 2012
8
1 S-76 C++ ends
January 7, 2013
9
1 S-92 on Line (new)
January 15, 2013
10
1 AS 332L (refurbished)
February 15, 2013
11
1 AS 332L (refurbished)
February 18, 2013
12
1 AW139 (new)
April 22, 2013
13
1 AS332 (refurbished) |
 59
EC225 update (continued)
•
Solutions for return to operations are under
consideration
•
FINAL/PERMANENT = re-design shaft ~18 months
•
INTERIM = new operating procedures for enhanced
monitoring and early detection ~6 months (subject to
regulators approval)
•
Criticality of helicopter transportation to offshore oil and
gas operations has been highlighted
•
New contracting strategies being enacted by customers
•
Bristow Client Promise fits well
•
New value paradigm
•
Security of supply versus price/cost
•
Increased LACE rates |
 56
North America
Brazil, Peru,
Trinidad
Gulf of Guinea
Europe
Mid East, East Africa,
India, Bangladesh
Malaysia, Thailand
Indonesia
Australia
Total Opportunities *
Opportunity tracker FY14-FY18:
474 Bristow growth opportunities identified
30
430
56
Russia / Caspian
Greenland
15
Various International
3
19
233
222
85
31
17
9
101
2
11
44
9
17
27
10
51
13
10
26
11
26
New
Small
Medium
Large
60
Old
Technology |
 61
Supply/demand balances for large aircraft
segment
•
Supply curves do NOT take
account of operational
limitations of older generation
large aircraft
•
Supply curves include EC225
•
Large aircraft production
capacity ~36 per year per
type (S-92 and EC225)
•
Historically half to two-thirds
of supply goes to oil and gas
market
* Source: PFC Energy
0
50
100
150
200
250
300
350
400
# of
helicopters
Sensitivities on Retirement
Large Worldwide*
Base Case Demand
High Case Demand
Supply -
30YRS
Supply -
20YRS
Supply -
10YRS
Supply -
25YRS |
 62
Opportunity tracker 2013-2014 award dates
•
Bristow moved in November
2012 to secure additional S-92
aircraft capacity available for
delivery in 2013 and 2014
•
Supply/demand tightness exists
in large helicopter sector,
exacerbated by EC225
suspension
•
New large types (AW189,
EC175 and Bell 525) are not in
the market in significant
numbers until 2014-2016
•
UK SAR aircraft are separate,
but reduces overall supply
capacity
0
10
20
30
40
50
60
2013
2014
BRS new supply
Contracted BRS
Demand (excluding EC225 backfill) |
 63
Conclusion
•
UK SAR contract can be catalyst for further
outsourcing of SAR by governments
•
Bristow is successfully managing through the
global suspension of EC225 fleet
•
Market demand is increasing and Bristow is
positioned to support our customers with
value adding solutions |
 64
Bristow Group Inc. (NYSE: BRS)
2103
City
West
Blvd.,
4
th
Floor
Houston, Texas 77042
t
713.267.7600
f
713.267.7620
bristowgroup.com
Contact us |
 65
Appendix |
 66
Bios
William
E.
Chiles
–
President
and
Chief
Executive
Officer
William E. Chiles (Bill) is Chief Executive Officer and President of Bristow Group
Inc. Prior to joining Bristow in July 2004, Mr. Chiles served as Executive
Vice President and Chief Operating Officer for Grey Wolf, Inc. Prior
to his tenure at Grey Wolf, he served as President and Chief Executive
Officer of Chiles Offshore, Inc. until its acquisition in 2002 by ENSCO
International Incorporated, at which time he was appointed Vice President of
Business Development. Until 1997, he was Senior Vice President of Drilling
Operations for Cliffs Drilling Company, following its acquisition of
Southwestern Offshore Corporation in 1996, a company which Mr. Chiles
founded in 1992 and served as its President and Chief Executive Officer. In 1977,
Mr. Chiles co-founded Chiles Drilling
Company,
which
then
became
Chiles
Offshore
Corporation,
and
was
subsequently
acquired
by
Noble
Drilling
in
1994.
Prior
to
1977,
Mr.
Chiles
served
in
a
number
of
roles
with
Western
Oceanic,
Inc.,
including
Vice
President for Domestic Operations in the Gulf of Mexico. Mr. Chiles is a graduate
of the University of Texas at Austin with a BBA in Petroleum Land
Management and earned a MBA at Southern Methodist University in
Dallas.
Jeremy Akel –
Senior Vice President, Global Operations
Jeremy Akel is Senior Vice President, Operations. Prior to assuming his current
position, Mr. Akel served for two years as the Director of the Other
International Business Unit (OIBU) at Bristow Group. Before January 2010, Mr.
Akel held various positions at Bristow Group, including Director of the
Latin America Business Unit and Manager of International Strategy and
Special Projects. He joined Bristow Group in 2004 after serving for two years as
Vice President, Aviation Business Consulting for Morten Beyer & Agnew, an
international aviation consulting firm. Prior
to
this,
he
served
as
Senior
Manager,
Business
Consulting,
Aviation
Industry
Practice
for
Anderson,
LLP,
an
international
business
consulting
firm.
From
February
1997
to
December
2000,
he
served
in
several
management
positions
at
Tidewater
Marine
International,
Inc.,
an
international
provider
of
marine
support
services to the offshore energy industry. Mr. Akel began his career in 1991 as an
aerospace engineer at the National Transportation Safety Board.
|
 67
Bios
Jonathan E. Baliff –
Senior Vice President and Chief Financial Officer
Jonathan Baliff joined the company as Senior Vice President and Chief Financial
Officer in October 2010. Prior to joining Bristow, Mr. Baliff was Executive
Vice President, Strategy, at NRG Energy since May 2008, where he led the
development and implementation of NRG’s corporate strategy as well as acquisitions and business alliances.
Prior to joining NRG, he was Managing Director in Credit Suisse’s Global
Energy Group, where, since 1996, he advised energy companies on merger and
acquisition assignments and project and corporate financings. Mr. Baliff
started his business career at Standard & Poor’s Corp. and then J.P. Morgan’s Natural Resources Group.
He
served
active
duty
in
the
U.S.
Air
Force
for
eight
years
from
1985
to
1993
in
numerous
assignments
flying
the
F-4G
Phantom,
including
the
first
combat
missions
during
the
first
Gulf
War.
He
retired
with
the
rank
of
Captain.
Mark B. Duncan –
Senior Vice President, Commercial
Mark
Duncan
joined
the
company
in
January
2005
as
Vice
President
of
Global
Business
Development,
and
was
promoted to Senior Vice President of Global Business Development, in January
2006. In January 2008, Mr. Duncan became Senior Vice President, Western
Hemisphere, and moved to his current position as Senior Vice President,
Commercial, in December 2009. Prior to joining Bristow, he was Commercial Director in the deep
water floating production systems division of ABB based in Houston, Texas. Prior
to this, he spent 18 years with the Halliburton/Brown & Root Group,
mostly in the subsea sector where he filled various positions working in the
North Sea, Brazil and several other international areas, ultimately holding the
position of Senior Global Vice President, Commercial, for the Subsea
7 entity. |
 68
Bios
George
Bruce
–
Global
Operations
Finance
Director
George Bruce is Global Operations Finance Director of Bristow Group, and joined
Bristow in February 2008 after spending over 25 years in the oilfield
services industry. Mr. Bruce graduated with distinction from university in
Dundee with a BA in Accounting and is a qualified member of the Chartered
Institute of Management Accountants. Mr. Bruce has extensive working
experience in the Far East/Australasia, the Middle East, Russia/Caspian,
Africa, Europe, Scandinavia and North America. In a career spanning 25 years Mr. Bruce has
had extensive periods of service in various regions around the world with
Halliburton, Schlumberger and most latterly Baker Hughes where he spent 12
years in various roles and prior to joining Bristow was Corporate
Controller and Executive Director of Finance for Nigeria. Mr. Bruce has extensive
experience in business re- engineering and change management,
acquisitions, divestitures, company formation, multi GAAP statutory
reporting, tax, treasury and planning/forecasting.
Mike Imlach –
Managing Director, Bristow Helicopters Limited and European Business Unit
Director
Mike Imlach has served as Director of Bristow Group’s European Business Unit
since 2010 and oversees all commercial and operational aspects of the
company’s activities in the UK, Norway and Holland. Mr. Imlach has more
than 30 years experience of working within the oil and gas and helicopter industries. He
began his career as an offshore drilling contractor holding various offshore
supervisory positions in the North Sea. He then went on to serve 18 years
with Baker Hughes, firstly in offshore and onshore coordination in the
directional drilling division in Aberdeen, before moving on to the role of
drilling systems manager in Italy. He then took on the role of Country
Manager and Director in Egypt, Algeria and Nigeria, before joining Bristow in 2008 as
West Africa Strategic Business Unit Director. He is a graduate of the University
of Aberdeen where he gained a HND in Agriculture and a Post Graduate
Diploma in Management Studies. Mr. Imlach is also the current Chairman of
the European Helicopter Operators Committee (EHOC). |
 69
Bios
Hank Williams–
General Manager, Cougar Helicopters
Hank Williams has 20 years of experience in the transportation industry with the
last 16 years in the aviation sector. Mr. Williams joined Cougar
Helicopters in 1997 as Passenger Movements Coordinator, quickly moving to
Base
Operations
Manager
(St.
John's)
before
being
appointed
as
General
Manager
East
Coast
Operations.
In
2010 Mr. Williams was appointed General Manager, Cougar Helicopters, with overall
responsibility for all of Cougar's
operations
globally
which
comprises
all
of
VIH
Aviation
Group's
IFR
operations. |
 70
Bristow Group Inc. (NYSE: BRS)
2103
City
West
Blvd.,
4
th
Floor
Houston, Texas 77042
t
713.267.7600
f
713.267.7620
bristowgroup.com
Contact Us |