Slide 1: Quarterly Review: First Quarter Ended April 30, 2024
QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain statements included in this presentation, including, but not limited to those relating to the Company’s updated Fiscal Year 2025 financial guidance (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized
Slide 3: José Boisjoli, President and Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2024 QUARTERLY REVIEW First Quarter Ended April 30, 2024
Slide 4: FY25 Q1 Financial Highlights
FY25 Q1 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ -16% -105% -60% $2,429 $2.38 $2,032 $1.92 ($0.10) $0.95 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 Highlights vs. Last Year ◼ Revenues decreased 16% resulting from lowe
Slide 5: FY25 Q1 North American Retail Update
FY25 Q1 North American Retail Update Q1 Retail Evolution FY25 Q1 Retail Performance by Product Line BRP NORTH AMERICAN FY25 Q1 vs FY24 Q1 POWERSPORTS MARKET INDUSTRY Units SHARE MID-SINGLE TOTAL RETAIL 5% DIGIT % FY25 vs FY24 LOW-SINGLE EXCLUDING SNOWMOBILES 1% DIGIT % -31% LOW- LOW-SINGLE SIDE-BY-S
Slide 6: Global Powersports Trends Update
Global Powersports Trends Update FY25 Q1 Powersports Retail Growth by Region Market Dynamic FY25 Q1 vs FY24 Q1 › Continuing to observe softer industry trends in Asia- INDUSTRY Pacific and Europe ▪ Softer quarter for the US market notably for PWC and ATV CANADA LOW- EXCL. SNOWMOBILES 18% TEEN % ▪ Pos
Slide 7: Taking incremental actions to protect our dealer value proposition
Taking incremental actions to protect our dealer value proposition Further reducing our shipment plan and improving promotional support to help our dealers’ profitability which is under pressure due to the current macroeconomic context, a more competitive industry landscape and high interest rates K
Slide 8: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues down 13% -13% ◼ Lower volume of product sold as planned as we focus on reducing network inventory levels ◼ Higher sales programs ◼ Favourable product mix of SSV and 3WV, pricing and Fx impact $1,333 $1,158 Retail Sal
Slide 9: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues down 23% -23% ◼ Lower volume of product sold as planned as we focus on reducing network inventory levels ◼ Higher sales programs ◼ Favourable product mix, pricing and Fx impact $692 $535 Retail Sales Update PERSONAL FY24
Slide 10: Powersports PA&A and OEM Engines / Marine
Powersports PA&A and OEM Engines / Marine Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues up 1% +1% ◼ Higher volume of sales, favourable pricing, product mix and Fx impact ◼ Higher sales programs Additional Information: ◼ Parts: Revenues
Slide 11: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2024 QUARTERLY REVIEW First Quarter Ended April 30, 2024
Slide 12: FY25 Q1 Financial Overview
FY25 Q1 Financial Overview Highlights Net Income Bridge CA$ millions Q1 Comparison CA$ millions FY25 FY24 Change (78) Total Revenues $2,031.7 $2,429.4 (16.4%) 155 Gross Profit $480.0 $623.5 (23.0%) (61) As a % of revenues 23.6% 25.7% (13) (33) Operating Income $124.1 $281.9 (56.0%) +23 (7) FY24 Q1 V
Slide 13: BRP North American Powersports Dealer Inventory Update
BRP North American Powersports Dealer Inventory Update Q1 Inventory Position Overview Inventory Position Bridge from Q4 DEALER INVENTORY DEALER INVENTORY EVOLUTION EVOLUTION North America Powersports, Units North America Powersports, Units +36% Improved Seasonal +23% inventory inventory Seasonal inv
Slide 14: FY25 Full-Year Guidance - as at May 31, 2024
FY25 Full-Year Guidance - as at May 31, 2024 FY24 FY25 Guidance Previous Guidance ACTUAL AS AT MAY 31, 2024 AS AT MARCH 28, 2024 REVENUES YEAR-ROUND PRODUCTS $5,339.4 DOWN 7% TO 10% DOWN 4% TO 7% SEASONAL PRODUCTS $3,410.7 DOWN 26% TO 28% DOWN 18% TO 22% POWERSPORTS PA&A AND OEM ENGINES $1,184.6 DOW
Slide 15: FY25 Guidance Evolution
FY25 Guidance Evolution Normalized EPS – Diluted[1] Guidance Bridge[2] FY25 GUIDANCE AS AT MARCH 28, 2024 $7.25 TO $8.25 POWERSPORTS – VOLUME AND MIX Primarily driven by the impact of additional network inventory depletion efforts, results of the Spring snowmobile booking ~$0.90 and adjustments to t
Slide 16: José Boisjoli, President and Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2024 QUARTERLY REVIEW First Quarter Ended April 30, 2024
Slide 17: Closing Remarks
Closing Remarks WELL POSITIONED TO OUTPERFORM IN THE CURRENT CONTEXT › Operating in softer end-market conditions: product diversification and innovation provide an edge › Continued market share gains in ORV and upcoming new product introductions position us well to sustain our momentum › Expecting t
Slide 18: Q&A Period
Q&A PERIOD QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2024 QUARTERLY REVIEW First Quarter Ended April 30, 2024
Slide 19: Appendix
APPENDIX QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2024 QUARTERLY REVIEW First Quarter Ended April 30, 2024
Slide 20: Reconciliation Tables
Reconciliation Tables 3-month periods ended CA$ millions Apr. 30, 2024 Apr. 30, 2023 Net Income / (Loss) ($7.4) $154.5 Normalized Elements: Foreign Exchange Loss on Long-term Debt and Lease Liabilities 70.7 43.8 Costs Related to Business Combinations[1] 3.8 4.9 Restructuring and Related Costs[2] 16.
Slide 21: Reconciliation Tables: Free Cash Flow
Reconciliation Tables Free Cash Flow 3-month periods ended CA$ millions Apr. 30, 2024 Apr. 30, 2023 Net Cash Flows Generated from Operating Activities $141.4 $258.8 Additions to Property, Plant and Equipment (66.8) (111.2) Additions to Intangible Assets (8.4) (6.6) Free Cash Flow[1] $66.2 $141.0 [1]
Slide 22: Appendix - Continued: Non-IFRS Measures
Appendix - Continued Non-IFRS Measures Normalized EBITDA is defined as net income before financing costs, financing income, income tax expense (recovery), depreciation expense and normalized elements. Normalized EBITDA margin is defined as the Normalized EBITDA divided by revenues. Normalized Net In
Slide 23: BRP brands
us Ski-Doo Lynx Sea-Doo Can-Am Rotax Alumacraft Manitou FT) ADVENTURE BY DESIGN Quintrex