CHC Helicopter Investor Presentation March 2014 GO FURTHER. DO MORE. COME HOME SAFELY. CHC Helicopter is the operating company of CHC Group Ltd. (NYSE: HELI) Page 1
Leading Commercial Helicopter Operator in the World Concentration in the deep water oil and gas market with unmatched global diversity 1.7 bn of revenues1, with the broadest global footprint in the industry with 70 bases in 30…
Strategy Developing and sustaining our competitive advantage Rio de Janeiro, Brazil Focus on Expand in High Centralize fleet Unique MRO Transform Customer Growth management Capabilities through Service Markets innovation…
Focus On Safety AccidentRate Benchmarking 2 1.8 Number of accidents/100K flight hours 1.8 1.6 Premier industry safety conference 1.4 1.2 Held annually since 2005 1 0.8 Attracted 800 attendees in 2013 0.8 Customers…
Financial Priorities Reduce leverage Strengthen Maintain disciplined capital allocation Balance Sheet Grow incremental cash flow Deploy largest fleet for deepwater/ultradeepwater services Disciplined Expansion in high growth…
Industry Trends Drive Continued Demand Growth 225 Global Offshore Drilling Activity 200 Spending in Billions 175 150 125 100 75 50 25 0 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E Floaters Jackups Source: Company…
Resiliency in Revenue Stream Long term trends drive consistent performance despite volatility in short term indicators ( MM) CHC Helicopter Annual Fiscal Revenue CHC Helicopter Revenue (MM) Average mthly day rate Deep/Ultra…
Key Investment Highlights Significant growth opportunities, supported by strong industry trends 1 Attractive end-markets driven by increased deepwater O&G exploration and development Resilient revenue stream Recurring revenue from an…
APPENDICES GO FURTHER. DO MORE. COME HOME SAFELY. Page 10
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 from all…
Industrys First Global Operations Center Availability, reliability, safety Centralize best practices and knowledge sharing - 24hour parts support for logistics, technical operations and maintenance - Enhanced technical response speed…
Transformation through Innovation First-mover advantage Improved efficiency Margin expansion Completion to date Customer Standardize to minimize economic leakage Contract Optimization Improve ongoing contract management Share…
Fleet Detail GO FURTHER. DO MORE. COME HOME SAFELY. Page 14
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 in…
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 FY13Q3 FY13Q4 FY14Q1 FY14Q2 FY14Q3 Fleet Count Heavy Equivalent…
Leading Operator of Heavy and Medium Aircraft Heavy S92 EC225 AS332L, L1, L2 2 pilots; 19 passengers 2 pilots; 19 passengers 2 pilots; 1719 passengers 38 in Fleet 34 in Fleet 39 in Fleet Medium AW139 S76 Series Other 2…
Fleet Details As of January 31, 2014 Cruise Speed Appr. Range (nm) Max Weight Helicopter Model Count Passengers (kts) full pax (lbs) Sikorsky S92A 38 145 400 19 26,500 Airbus Helicopters EC225 34 145 400 19 24,250 Heavy…
Fiscal 2014 Q3 Results GO FURTHER. DO MORE. COME HOME SAFELY. Page 19
2014 Financial Outlook HELI Financial Outlook Fiscal 2014 Fiscal 2013 Fiscal 2014 Q3 YTD (in millions) Total revenue 1,744 1,312 Growth flat to slightly up EBITDAR(1) 484 314 Growth flat to slightly down Interest expense 127…
CHC Consolidated Results 3% growth in revenue driven by both Helicopter Services and HeliOne segments EBITDAR(2) 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…
GAAP/NonGAAP Reconciliations GO FURTHER. DO MORE. COME HOME SAFELY. Page 25
EBITDAR: Reconciliation to GAAP measures EBITDAR NonGAAP 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 2013…
EBITDAR and Net Income: Non-GAAP Reconciliation EBITDAR excluding special items NonGAAP 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) Longterm debt 1,479 1,546 Current portion of longterm debt 24 133 Deferred financing fees net of fees 0 0 Discount on notes…
P&L Structure Reported Revenue Direct Costs, G&A Operating EBITDAR(2) Revenue(1) Helicopter HeliOne D&A Lease costs Services Other(3) Interest(4) Tax 3rd HE Internal HE Rate party Count Net Income Helicopter Services…
Free Cash Flow Drivers Aircraft Spend: Lease payments (deposits + payments at aircraft Net Expansionary delivery + gross lease buyouts of Interest Working Capital existing aircraft less aircraft Capex financing proceeds) +…
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…
Thank you Copyright 2013 CHC Helicopter Richmond, Canada GO FURTHER. DO MORE. COME HOME SAFELY. Page 33
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