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. |
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