International growth in the helicopter market

Transcription

1 International growth in the helicopter market David Louzado Business Development Director Prepared by Date David Louzado Sep 2013

2 Content 1. Airclaims introduction 2. Helicopter market 3. Airclaims activity 4. Operating leasing 5. Summary

3 Company Structure Claims Management Risk & Asset Management

4 Global Presence

5

6 Military helicopter production in 2013 forecast to reach 615 rotorcraft. Thereafter, yearly production will enter into decline, falling to only 380 by (Financial Times)--World military spending last year fell for the first time in 14 years, with the US share of the global total slipping below 40 per cent

7 ~ 1% Growth (if we are lucky!) Population: 739,165,030 Registered Helicopters: 8,000

8 Population: 427,000,000 Registered helicopters: 2,500+

9 Population: 1,344,130,000 Registered helicopters: 800 Opportunity?

10 Decline in Military Spending 1 hour flying = 30 hours maintenance!

11 Decline in Military Spending

12 Decline in Military Spending Bristow Group to take over UK search and rescue from RAF The 1.6bn deal ends 70 years of search and rescue from the RAF and Royal Navy. Bristow will replace ageing helicopters with modern Sikorsky S-92s and AgustaWestland 189s.

13 Grown in Helicopter Industry New Deliveries 1989 to to to

14 Grown in Helicopter Industry NEW SALES 35% USED TRANSACTIONS 65%

15 Grown in Helicopter Industry TOP 4: AgustaWestland Bell Helicopters EADS - Eurocopter Sikorsky Aircraft Corporation

16 Growth in Helicopter Industry

17 Growth in Helicopter Industry

18 Growth in Helicopter Industry TOP FOUR: 1. Corporate / private 2. EMS 3. Oil and gas / offshore transport 4. Police 18

19 Airclaims Key Helicopter Clients 1. Milestone - around 100 aircraft already, rapid growth 2. BNP Paribas 3. Lombard 4. GE Capital 5. Lloyds / BOS 6. Deutsche Bank -growing 7. Waypoint new entrant in acquisition mode 8. Macquarie new entrant in acquisition mode 19

20 Milestone Aviation nigeria, 0 Papua New guinea, 0 French Guyana, 1 Equatorial Guinea, 0 Myanmar, 0 India, 1 Switzerland, 0 Ireland, 1 Portugal, 1 UK, 16 Spain, 2 Malaysia, 2 Thailand, 2 Australia, 3 Canada, 3 Brazil, 14 Italy, 3 Denmark, 5 Mexico, 8 Indonesia, 5 USA, 12 Norway, 9

21 Airclaims helicopter asset management services in

22 Airclaims helicopter asset management services in

23 Growth Trend 23

24 Aircraft Operating Lease Cycle Modify/ maintain Delivery Store Asset Inspection Redelivery

25 Operating Lease Why? 1. Off balance sheet no depreciation 2. Low risk 3. No final payment % finance 5. Choice of term break points 6. Hand it back and lease a replacement

26 Contributing Factors 1. Fixed wing market saturated 2. Banks reaching capital limits with clients spread of clients is limited so operating lease solves problem 3. Lending is limited and harder to secure 4. Operating lease keeps asset off balance sheet 5. Accounting standards rules driving away from debt funding 6. Key operators (such as CHC) so big that they need many sources 7. Continual growth of off-shore oil and gas industry 8. Enhanced surveillance and due diligence by financiers new investors and recession driven 9. Private equity investments into lessors 26

27 Residual Value Compared to Fixed Wing Values hold a lot better No ultimate life 40,000 parts in formation! No pressure cycles years in operation ROI realised in first term, profit thereafter Lots of 2 nd and 3 rd tier uses Equipment easy to replace/remove 50% depreciation in first 10 years

28 Residual Value

29 Safety Stats Airline fatalities 0.9 per million flight hours Helicopter fatalities 7.6 per million flight hours Source: Mark Steven, Shell, CHC Helicopter Safety Summit, 2013

30 Summary Huge growth potential Emerging markets Privatisation of government services Finance moving to operating leases Long life = ROI + profit Higher risk environment

31 Thank You Courtesy National Geographic