Investor Presentation - IIS Windows Serverlibrary.corporate-ir.net/library/91/912/91226/items/230247/Credit... · This presentation may contain “forward-looking statements” within

Investor PresentationFebruary 2007

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 expenditures, fleet composition, capabilities and results; 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 risk, uncertainties and other factors include 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 year ended March 31, 2006 and our Form 10-Q for the quarter ended December 31, 2006. 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.

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Investment Highlights

• Leader in providing helicopter transportation services to the global offshore oil and gas industry

– Operating in 23 countries

• Significant historical achievements– Acquired Bristow Helicopter – 1996– Safety Improvements – 2001 forward– Conservatively capitalized for industry cycle

• Profitable track record– 10 fiscal year CAGR in EPS of 12%– Tied closely to production, less to drilling

• Clear strategy– Integrate business lines– Grow business by leveraging global footprint

33

4

Agenda

4

• Bristow Group overview

• Market dynamics

• Financial highlights

• Strategy going forward

4

5

Bristow At A Glance

• NYSE: BRS

• Number of aircraft: 3411

(plus 146 held with unconsolidated affiliates)1

• Employees: 4,2002

• Equity market cap: ~ $1.1B3

• FY 2007 Q3 – December 31, 2006:– Revenue: $669.1M– Net Income: $ 46.8M

• FY March 31, 2006:– Revenue: $768.9M– Net Income: $ 57.8M

1. As of December 31, 20062. As of March 31, 20063. As of January 26, 2007

6

Timeline

1955 200520041971 20062003200220011996199319901969

Offshore Logistics founded

Namechanged

to Bristow Group

(NYSE: BRS)

Senior management

changed

Queen’s Award for Innovation

(Bristow Helicopters)

Turbo Engines acquired

Grasso acquired

Air Logistics LLC formed

Pan African Airlines

(Nigeria) acquired

Bristow Helicopter acquired

Offshore boats sold

Aviashelfacquired

Bristow Helicopters

founded

7

Vision

“One global team setting the standard for excellence, growing and succeeding together…soaring above the competition.”

8

Mission

“Our mission is to provide the safest and most efficient helicopter services, aviation support, and oil and gas production management services worldwide.”

We will achieve this by focusing on and committing to:

• Working in innovative partnerships with our customers

• Further developing our highly professional workforce

• Expanding our business and extending our horizons

Through these commitments, we will provide industry-leading value to our customers, employees and shareholders while remaining true to our core values

9

Core Values

Bristow’s values represent core beliefs about how to conduct business

– Safety – Safety first! – Quality and Excellence – Set and achieve high standards in everything we do– Integrity – Do the right thing– Fulfillment – Develop our talents and enjoy our work– Teamwork – Communicate openly and respect each other– Profitability – Make wise decisions and help grow the business

10

What We Do

Our Primary Business

ProductionPlatforms and Rigs

We fly crewchanges

11

Where We Fit in the Industry

Energy Services Industry

OffshoreDrillersSeismic Transportation

EquipmentManufacturing

Bristow

HelicopterServices

Supply BoatsFundamentals which make our business less volatile:

•Primarily production based•Aircraft aftermarket for

excess capacity

OnshoreDrilling ProductionConstruction

ProductionManagement

Grasso

12

Oilfield Service Companies are Positioned in Different Parts of the E&P Spend Cycle

Seismic

Drilling

Service Companies

Engineering and PM

Equipment & Materials

Abandonment

Operations & Maintenance Removal

Exploration& Appraisal

CommercialDevelopment Production Operations (OPEX)

Fabrication Installation

Transportation

(Transportation required at all stages, but mainly for non-discretionary OPEX)

13

341 aircraft operating in 23 countries

Worldwide Presence

*Bristow has another 146 aircraft in our unconsolidated affiliates.

(as of December 31, 2006)

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Organization

Helicopters(92%)

Bristow Group

Production Management

(8%)

WesternHemisphere

GrassoProd Mgmt

North America(28%)

S&C America(6%) Europe

(34%)West Africa

(16%)SE Asia

(9%)Other Int’l

(5%)EH Cent Ops

(2%)

U.S. GoM - 155

Alaska - 14

Trinidad - 14

Colombia - 3

Mexico - 11

Brazil - 7

Peru - 1

Aeroleo - 3

HC - 12

UK – 38

Netherlands - 2

Ireland - 3

Norway - 6

FBH - 60

Norsk - 6

LuftTransport Norway - 21

LuftTransport Sweden - 7

Nigeria - 48 Australia - 13

Malaysia - 1

Solomon Isles - 1

Russia - 10

Egypt - 2

Kazakhstan - 5

Mauritania - 2

India - 2

Turkmenistan - 1

Kenya - 2

Libya - 0

PAS - 36

SBAS - 1

Affiliated Aircraft

Operated Aircraft

Eastern Hemisphere

Operated AircraftBristow owns and/or operates341 aircraft through wholly-owned affiliates

Affiliated AircraftBristow affiliates and jointventures operate 146aircraft

CorporateSegment

Business UnitDivision

(No. of Aircraft)

CountryJoint Venture


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Aircraft Fleet(at December 31, 2006)

Type Number Capacity Engine

Small Helicopters

Bell 206L-1 25 6 Turbine



Bell 206B 24 4 Turbine

Bell 407 39 6 Turbine

Bell 427 1 7 Twin Turbine

BK-117 1 7 Twin Turbine

BO-105 2 4 Twin Turbine

EC 120 9 4 Turbine

154

Medium Helicopters



EC 155 8 13 Twin Turbine

Sikorsky S-76 A 36 12 Twin Turbine

Sikorsky S-76 C 18 12 Twin Turbine

113

Large Helicopters

ASS332L Super Puma 31 18 Twin Turbine

Bell 214ST 5 18 Twin Turbine

Sikorsky S-61 15 18 Twin Turbine

Sikorsky S-92 2 19 Twin Turbine

Mil 8 7 20 Twin Turbine

EC 225 4 25 Twin Turbine

64Fixed Wing 10Consolidated 341

Unconsolidated 146

Next Generation Aircraft

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Our Customers are World Leaders

17

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2002 2003 2004 2005 2006

Glob

al ca

ledar

year

accid

ent r

ate p

er 10

0,000

flig

ht h

ours

Bristow Western Hemisphere Average 1.47

Gulf of Mexico Industry Average 2.40

Bristow Eastern Hemisphere Average 0.83

North Sea Industry Average 0.81

Bristow Total Average 1.32

US Civil Aviation Average 5.81

Strong Safety Record

20% of management’s incentive compensation is safety based

Five Year Average # of Incidents per 100,000 flight hours(Bristow data 2002-2006; other industry data latest five years)

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Our Business Model – Helicopters

1 Fly crews and light cargo to production platforms and drilling rigs

2 Contracts are a monthly retainer plus per hour fee; virtually no fuel risk3 Also rent aircraft

on spot market

4 Safe, satisfied customers more business

5 New customers

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Resolving Regulatory Issues

Internal review is complete

Financial statements reflect all required restatements

SEC and DOJ investigations are ongoing– Self-reported to SEC– We are fully complying with all requests– In December 2006, we recorded a charge of $3,000,000

for costs and fees we currently expect to incur in connection with the resolution of the SEC investigation regarding the findings resulting from the Internal Review, a substantial portion of which relates to accumulated legal fees in connection with the investigation.

– There can be no assurance that the amounts currently recorded will be sufficient to resolve such matters or that such matters can ultimately be resolved until final action by the Commission.

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20

Recent Changes

• New culture

• Global fleet management

• Common standards for quality and safety

• Geographic Business Units

• Strengthen customer relationships at corporate level

• New corporate name

• New management and corporate functions

2020

21

Senior Management Team

Bill ChilesPresident and Chief

Executive Officer

July 2004

Bill ChilesPresident and Chief

Executive Officer

July 2004

Mark DuncanSenior Vice President

Global BusinessDevelopment *

Jan 2005

Mark DuncanSenior Vice President

Global BusinessDevelopment *

Jan 2005

Bill DonaldsonSenior Vice President

Grasso ProductionManagement

Bill DonaldsonSenior Vice President

Grasso ProductionManagement

Richard BurmanSenior Vice PresidentEastern Hemisphere

Business UnitOct 2004

Richard BurmanSenior Vice PresidentEastern Hemisphere

Business UnitOct 2004

Mike SuldoSenior Vice PresidentWestern Hemisphere

Business Unit

Mike SuldoSenior Vice PresidentWestern Hemisphere

Business Unit

Perry EldersExecutive Vice President& Chief Financial Officer

Nov 2005

Perry EldersExecutive Vice President& Chief Financial Officer

Nov 2005

Elizabeth BrumleyVice President &

Chief Accounting Officer

Nov 2005

Elizabeth BrumleyVice President &

Chief Accounting Officer

Nov 2005

Joe BajVice President &

Treasurer *

July 2005

Joe BajVice President &

Treasurer *

July 2005

Bill HopkinsVice President

Human Resources,Quality & Safety *

Sept 2004

Bill HopkinsVice President

Human Resources,Quality & Safety *

Sept 2004

Randy StaffordVice President

General Counsel &Corporate Secretary *

May 2006

Randy StaffordVice President

General Counsel &Corporate Secretary *

May 2006

Gavin SinclairVice PresidentCompliance *

Jan 2005

Gavin SinclairVice PresidentCompliance *

Jan 2005

White – New employees who joined since July 2004* Six New Corporate Functions

Mike MeyerVice President

Global Supply Chain &Information Technology *

Mike MeyerVice President

Global Supply Chain &Information Technology *

22

Agenda

22


• Market dynamics



22

23

RegulatoryEnvironment

Focus

U.S.

Non-U.S.

Regional Global

Uniquely Positioned vs. Competitors

CHCHelicopter

Corporation

PHI, Inc.

RotorcraftLeasing

ERA

Bond

24

Positioned Strongly Within Our Industry

99

166

248

330

0

50

100

150

200

250

300

350

Bristow CHC PHI Seacor/ERA

Number of aircraft servicing oil and gas industry only

* Excludes 11 consolidated SAR aircraft and 146 unconsolidated aircraft

*

Source: Bristow Group Inc.December 2006


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Factors Impacting the Business

• Demand for services strongly dependent upon production and OPEX:– Production activity (~8,800 platforms globally; 4,000 in the U.S Gulf of Mexico)– Exploration activity (~520 rigs globally, 130 in the U.S. Gulf of Mexico)

• Customer expansion internationally favors providers with the broadest global reach

• Mature Markets (Gulf of Mexico and North Sea) remain important– Gulf of Mexico:

• Almost a third of the shallow water and deepwater leases• About half shallow water and half deepwater• 28% of future drilling permits

− 1/3 shallow water− 2/3 deepwater

− North Sea:− Production exploitation is driving business− Rates structures support incremental capital− Customers demanding new equipment

• Helicopters can be sold into the secondary market:– Air medical − Tourism − Corporate transportation– Fire fighting − Traffic monitoring − Police and military

• Cyclical, but generally less so than other oilfield service sectors

• Numerous regional competitors,but only one global competitor

• Weather and seasonalitycan affect operations

26

Agenda

26


• Market dynamics



26

27

Steady Revenue Growth

Fiscal Year ended March 31 (in millions)

$197

$427 $466$417

$519 $553$602 $617

$674$769

$6691

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

19%CAGR19%CAGR

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1. Nine months ended December 31, 2006

341331320332335345335302295301288Aircraft

223K273K243K249K251K257K248K211K228K233K141KFlight hours

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Growth in Net Income

Fiscal Year ended March 31 (in millions)

$21

$31

$21

$9

$28

$42 $40

$52$58

$472 $501

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

14%CAGR14%CAGR

28

1. Includes $16M pension curtailment gain2. Nine months ended December 31, 2006

29

Growth in Net Income (EPS)

Fiscal Year ended March 31

$1.05$1.35

$0.97

$0.42

$1.25

$1.75 $1.67

$2.21$2.45

$1.802

$2.151

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

12%CAGR12%CAGR

29

1. Includes $16M pension curtailment gain2. Nine months ended December 31, 2006; includes effect of preferred stock offering

30

Strong Balance Sheet and Cash Flow

• Cash on hand at Dec 31, 2006: $220M

• EBITDA of $149.7M (LTM Dec 31, 2006)1

• Undrawn borrowing capacity ($100M revolving credit facility)

Capitalization − $1.1 billion(December 31, 2006)

Leverage 23%

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1. EBITDA = Net Income ($64.6M) + Income Taxes ($30.9M) + Interest Expense ($12.1M) + Depreciation & Amortization ($42.2M)

$849 millionEquity

$260 millionDebt

Liquidity

31

Agenda

31


• Market dynamics



31

32

1 Integrate to Drive Revenue Growth

• Created new corporate structure– Legacy: 3 separate companies– Common global standards for quality and

safety– Centralized financial reporting structure– Management team now in place

• Now have global coordination of:– Fleet management based on ROCE– Purchasing, maintenance, quality controls

Helicopters ProductionManagement

Western Eastern

• North America

• South and Central America

• Europe• West Africa• S.E. Asia• Other Int’l• E.H. Cent.

Operations

32

Grasso

33

2 Expand Share in Regional Markets

• Leverage existing presence in all regions

• Expand current fleet and position Bristow in growth markets

• Evaluate acquisition opportunities that strategically fit Bristow’s business model

Opportunities for Growth

• Southeast Asia• South America• Africa• Arctic

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Aircraft Capital Expenditures – New Equipment

$86

$141

$189

$84

$163

$23 $24 $37

$119

$49

$103

$8

$108

$0

$50

$100

$150

$200

$250

$300

2005 2006 2007 2008 2009 2010 2011-13

Mill

ions

OptionsOrderedActual


$281 $282

$126$145


$73

Excludes order for 3 new EC 225s for $64M and options for 8 EC 225s

35

Fleet Additions – New Equipment

19

3 36

12

6

14

16

18

26

113

0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010 2011-13

Airc

raft

Options-35Ordered-42Actual


22

15

20

* 7 large, 17 medium and 3 small helicopters

27 *


9

Excludes order for 3 new EC 225s for $64M and options for 8 EC 225s

36

New Aircraft Requirements 2007-2011 (All Visible Bids) – Bristow Customers and Markets

Total = 253 (42% incremental)Source: Bristow Group Inc.

December 2006

34

9 4

2

56

2

13 14 624

16

38

6

4

25

49

145

59

Small Medium Large

37

0%

20%

40%

60%

80%

100%

120%

140%

160%

Dec01

Jun02

Nov Apr03

Sep Feb04

Jul Dec May05

Oct May06

Aug Dec06

Value Below Benchmark Index

5-year comparison BRS versus OSX

+122%

+108%

Management equity compensation (Restricted Stock Units) vests based on stock appreciation

OSX

BRS

38

Why Invest In Bristow

3838

Leader in providing helicopter transportationservices to the global offshore oil industry

– Operating in 23 countries

Profitable and stable earnings profile– 10 year CAGR in EPS of 12%

Identified aircraft expansion program– Based on improved industry fundamentals

Clear strategy– Integrate business lines– Grow business by leveraging global footprint

Significant historical achievements– Acquired Bristow Helicopter - 1996– Safety improvements – 2001 forward– Conservatively capitalized

Documents

Investor Presentation - IIS Windows Serverlibrary.corporate-ir.net/library/91/912/91226/items/230247/Credit... · This presentation may contain “forward-looking statements” within