CHC Helicopter Fiscal 2014 Third Quarter March 12, 2014 GO FURTHER. DO MORE. COME HOME SAFELY. Page 1
Presenters Bill Amelio President and Chief Executive Officer Joan Hooper Chief Financial Officer Aberdeen, Scotland Rio de Janeiro, Brazil GO FURTHER. DO MORE. COME HOME SAFELY. Page 2
Financial Priorities Driving growth Expanding EBITDAR Strengthening balance sheet Disciplined capital allocation Reduced leverage Positive free cash flow GO FURTHER. DO MORE. COME HOME SAFELY. Page 5
Key Investment Highlights 1 Significant Long-Term Growth Expectations, Strong Market Fundamentals Attractive end-markets driven by increased deepwater O&G exploration and development Recurring revenue from an essential service that…
Differentiated Business Strategy Focused on disciplined, profitable growth to maximize returns Focus on customer Maintain deep understanding of our customers needs service Leverage our global reach and scale to grow with our…
Safety: Maintaining Leading Performance Accident-Rate Benchmarking CHCs five-year rolling average as of Feb. 1 is 0.37 accidents/100,000 flight hours 2 1.8 Number of accidents/100K flight hours 1.8 1.6 1.4 1.2 1 0.8 0.8…
CHC Safety & Quality Summit: March 31-April 2 Premier industry safety conference Held annually since 2005 Attracted 800 attendees in 2013 Customers, Manufacturers, Competitors, Regulators Shows commitment to industry safety…
Q3 Operating Highlights HELICOPTER SERVICES O&G wins illustrated leading global reach E.g., Australia, Brazil, Kenya, Malaysia, Mozambique, Norway Contract retention rate continues to exceed 90% Initiated AW139 flights in…
CHC Consolidated Results 3% growth in revenue driven by both Helicopter Services and Heli-One segments EBITDAR down 1% - Driven by costs related to EC225 CHC Consolidated Quarter Year to date ( in millions except margin, Q3 FY13…
Helicopter Services Transport O&G crews to and from offshore facilities; provide search & rescue (SAR) missions and medical transportation 90% of HS flying revenue from O&G (2/3rd of revenue from production 1/3rd from exploration);…
Heli-One Maintenance, repair and overhaul segment, which provides comprehensive helicopter MRO services Higher revenue driven by increased MRO work in Norway and Canada Decrease in EBITDAR due to: - Timing of aircraft maintenance…
Free Cash Flow, Liquidity & Leverage FY2014 FCF improvement YTD driven by: - Working capital initiatives to reduce DSO, and lower net capex spending Leverage ratio declined to 5.1x driven by improved EBITDAR Improved liquidity driven…
Fewer and Newer Investments in Fleet Fleet Count - by fiscal quarter 300 252 247 246 250 238 236 200 169 171 166 162 163 Rio de Janeiro, Brazil 150 100 50 0 FY13-Q3 FY13-Q4 FY14-Q1 FY14-Q2 FY14-Q3 Fleet Count Heavy…
FY 2014 Outlook FY14 full year guidance: Total revenue growth flat to slightly up vs. FY13 EBITDAR(1) growth flat to slightly down vs. FY13 - Reflects full year net impact of EC225 suspension and subsequent RTS Interest expense on…
Financial Priorities Driving growth Expanding EBITDAR Strengthening balance sheet Disciplined capital allocation Reduced leverage Positive free cash flow GO FURTHER. DO MORE. COME HOME SAFELY. Page 17
Key Strategic Takeaways 1. High-quality team focused on the right things Safety, service, efficiency; capital, leverage, cash flow 2. Well positioned to capitalize on growth trends Largest fleet for deepwater/ultra-deepwater services…
APPENDICES GO FURTHER. DO MORE. COME HOME SAFELY. Page 19
Appendices CHC Overview Fleet Overview GAAP/Non-GAAP Reconciliation GO FURTHER. DO MORE. COME HOME SAFELY. Page 20
CHC Overview GO FURTHER. DO MORE. COME HOME SAFELY. Page 21
Leading Commercial Helicopter Operator in the World Concentration in the deep water oil and gas market with unmatched global diversity 1.7 bn of revenues, with the broadest global footprint in the industry with 70 bases in 30 countries…
Strategically Positioned Fleet Global footprint servicing offshore oil and gas markets optimally positioned for growth - Significant scale in core regions 47% of helicopter services revenue from the core North Sea market - Expanding…
Key Strategic Advantage - Heli-One 1. Largest global commercial provider of MRO services1 - Service thousands of engines and components 2. Key benefits include: - High quality service with ability to perform maintenance on aircraft…
Industrys First Global Operations Center Availability, reliability, safety Centralize best practices and knowledge sharing - 24-hour parts support for logistics, technical operations and maintenance - Enhanced technical response…
Fleet Overview GO FURTHER. DO MORE. COME HOME SAFELY. Page 26
Largest Operator of Heavy and Medium Aircraft Heavy S92 EC225 AS332L, L1, L2 2 pilots; 19 passengers 2 pilots; 19 passengers 2 pilots; 17-19 passengers 38 in Fleet 34 in Fleet 39 in Fleet Medium AW139 S76 Series AS365…
Additional Fleet Detail Cruise Speed Appr. Range (nm) Max Weight Helicopter Model Count Passengers (kts) full pax (lbs) Sikorsky S92A 38 145 400 19 26,500 Eurocopter EC225 34 145 400 19 24,250 Heavy Eurocopter 18,000 - 39…
GAAP/Non-GAAP Reconciliations GO FURTHER. DO MORE. COME HOME SAFELY. Page 29
EBITDAR: Reconciliation to GAAP measures EBITDAR - Non-GAAP Reconciliation (Expressed in thousands of United States dollars) (Unaudited) Three months ended Nine months ended January 31, January 31, January 31, January 31, 2013 2014…
EBITDAR and Net Income: Non-GAAP Reconciliation EBITDAR excluding special items - Non-GAAP Reconciliation (Expressed in thousands of United States dollars) (Unaudited) Three months ended Nine months ended January 31, January 31,…
Adjusted Net Loss Per Share: Non-GAAP Reconciliation (Expressed in thousands of United States dollars, except share and per share amounts) (Unaudited) Three months ended Nine months ended January 31, January 31, January 31, January…
Adjusted Net Debt Reconciliation Adjusted Net Debt At January 31, 2013 At January 31, 2014 (US Million) Long-term debt 1,479 1,546 Current portion of long-term debt 24 133 Deferred financing fees - net of fees 0 0 Discount on…
Glossary of Terms Adjusted EBITDAR = net earnings (loss) before interest, taxes, depreciation, amortization and helicopter lease and associated costs, restructuring costs, asset impairments, gain (loss) on disposal of assets and goodwill…
Thank you Copyright 2013 CHC Helicopter Richmond, Canada GO FURTHER. DO MORE. COME HOME SAFELY. Page 35
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