Slide 1: Quarterly Review: Second Quarter Ended July 31, 2017
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2017 Presentation title Month date, year 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information included in this release, including, but not limited to, statements relating to our Fiscal Year 2018 financial outlook (including revenues, gross profit margin, operating expenses, Normalized EBITDA, Effective Tax Rate, Normalized net income and Normali
Slide 3: José Boisjoli, President & Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT & CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2017 BRP Inc. - FY18 Q2 3
Slide 4: FY18 Q2 Revenues, EPS and Normalized EPS
FY18 Q2 Revenues, EPS and Normalized EPS[1] Revenues EPS - Diluted Normalized EPS - Diluted[1] CA$ millions CA$ CA$ 20% $1.50 $0.17 $0.89 $1,027 $0.18 ($0.61) $856 $0.01 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 Highlights vs. Year Ago Increase Increase of of20% 20%ininrevenues revenuesprima
Slide 5: Our focus on "Winning in the Dealership" is fuelling our solid retail growth
Our focus on “Winning in the Dealership” is fuelling our solid retail growth BRP Dealer Value Proposition Model Driving solid retail growth 2X Can-Am SSV Year-to-Date U.S. retail grew twice as fast in multi-line dealerships vs. single-line dealerships Our strong dealer value proposition is helping u
Slide 6: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Revenue increase of 35%: 35% Driven by a higher volume and a favourable product mix of SSV sold due to the introduction of the Can-Am Maverick X3 $439.4 Off-Road Vehicles $326.3 North American ATV industry ended season 2017 on June 30 d
Slide 7: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Revenue increase of 14%: 14% Primarily driven by higher volume of PWC sold PWCs $318.6 Ten months into the season, the North American $280.5 PWC industry retail up low-teen % Sea-Doo retail sales were up high-single digit % FY17 Q2 FY18
Slide 8: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Revenue increase of 6%: 6% Mainly driven by a higher volume and a favourable product mix of outboard engines sold, partially offset by a lower volume of motorcycle engines sold $99.9 $105.4 Outboard Engines North American outboard engine
Slide 9: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Revenue increase of 10%: 10% Mainly attributable to a higher volume of SSV accessories sold due to the popularity of the Can-Am Maverick X3 and Defender $149.4 $163.6 FY17 Q2 FY18 Q2 SSV accessory sales up over 60% YTD Excelle
Slide 10: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2017 BRP Inc. - FY18 Q2 10
Slide 11: FY18 Q2 - Financial Highlights
FY18 Q2 - Financial Highlights Q2 comparison 6-month comparison CA$ millions FY18 FY17 Change FY18 FY17 Change Total Revenues $1,027.0 $856.1 $170.9 $1,983.2 $1,786.0 $197.2 Growth +20.0% +11.0% Gross Profit $213.7 $172.0 $41.7 $420.9 $366.1 $54.8 As a % of revenues 20.8% 20.1% 21.2% 20.5% Operating
Slide 12: FY18 Q2 - Normalized Net Income Bridge
FY18 Q2 - Normalized Net Income[1] Bridge CA$ millions (12) (13) 53 (8) 21 1 FY17 Q2 Volume, Mix, Production Costs Net Financing Foreign Exchange FY18 Q2 Pricing and and Operating Expenses Costs and Rates Sales Programs Normalized Income Tax Expense [1] See “Non-IFRS Measures” section in appendix $2
Slide 13: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY18 Q2 up 12% from FY17 Q2 level Increase primarily driven by: Q1 Q2 Q3 Q4 the increase in the number of dealers FY16 FY17 FY18 the shipment ramp-up of the Can-Am
Slide 14: FY18 Full-Year Guidance - as at September 01, 2017
FY18 Full-Year Guidance - as at September 01, 2017 Financial Metric FY18 Guidance vs FY17 Revenues Year-Round Products Up 8% to 12% Seasonal Products Down 1% to Up 3% Propulsion Systems Flat to up 5% PAC Up 5% to 9% Total Company Revenues Up 4% to 8% Normalized EBITDA[3] Up 10% to 13% Effective Tax
Slide 15: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY18 Q2 © 2017 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 15 are trademarks of Bombardier Recreational Products Inc. or
Slide 16: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY18 Q2 © 2017 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 16 are trademarks of Bombardier Recreational Products Inc. or its
Slide 17: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Side-by-Side Vehicles Roadsters Seasonal Products Ski-Doo Snowmobiles Lynx Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP
Slide 18: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY18 Q2 © 2017 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 18 are trademarks of Bombardier Recreational Products Inc. or its af
Slide 19: Reconciliation Tables
Reconciliation Tables Three-month periods ended Six-month periods ended CA$ millions Jul. 31, 2017 Jul. 31, 2016 Jul. 31, 2017 Jul. 31, 2016 Net Income (Loss) $100.1 ($68.8) $81.6 $41.9 Normalized elements: Foreign exchange (gain) loss on long-term debt (79.5) 38.0 (36.6) (81.2) Restructuring costs
Slide 20: BRP Inc. - FY18 Q2
Ski-Doo” Lynx" Sea-Doo" BRP. Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE