Brp, Inc. · TSX:DOO
Brp — Q1 FY2019 Earnings Presentation
23 slides from Brp's earnings presentation, May 31, 2018
Slide 1: Quarterly Review: First Quarter Ended April 30, 2018
QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information included in this presentation, including, but not limited to, statements relating to our Fiscal Year 2019 financial outlook (including revenues, gross profit margin, operating expenses, Normalized EBITDA, Effective Tax Rate, Normalized net income and No
Slide 3: José Boisjoli, President & Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT & CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2018 BRP Inc. | FY19Q1 3
Slide 4: FY19 Q1 Revenues, EPS and Normalized EPS
FY19 Q1 Revenues, EPS and Normalized EPS[1] Revenues EPS - Diluted Normalized EPS - Diluted[1] CA$ millions CA$ CA$ 16% $0.18 37% $0,13 $1 137 $0,52 $977 $(0.05) $0,38 FY18 Q1 [2] FY19 Q1 FY18 Q1 [2] FY19 Q1 FY18 Q1[2] FY19 Q1 Highlights vs. Last Year Increase of 16% in revenues primarily driven b
Slide 5: Strong retail growth this quarter despite unfavourable weather conditions
Strong retail growth this quarter despite unfavourable weather conditions Strong FY19 Q1 retail growth Sustained growth despite a late spring in the across the product portfolio Midwest and East coast regions North American Retail Growth by Product Line BRP FY19 Q1 Retail Sales Growth by State FY19
Slide 6: Juárez 2: Phase 1 of capacity increase completed
Juárez 2: Phase 1 of capacity increase completed Adding Capacity To Support Rapid Can-Am SSV Growth Juárez 2 SSV Production Capacity Can-Am SSV Retail Units per hour North America, Rolling Twelve Months PHASE 1 PHASE 2 COMPLETED ON PLAN Production ramp- up completed on ~50% of capacity increase ~85%
Slide 7: Can-Am UTV Dealers Highest Ranked by 2018 Pied Piper PSI
Can-Am UTV Dealers Highest Ranked by 2018 Pied Piper Prospect Satisfaction Index® (PSI®) 2018 Pied Piper Prospect Satisfaction Index® (PSI®) U.S. Utility Task Vehicle (“UTV”) Industry Benchmarking Study First ever Pied Piper Prospect Satisfaction Index® (PSI®) U.S. Benchmarking Study done for the UT
Slide 8: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Revenue increase of 33% 33% Mainly driven by a higher volume of SSV and Three- Wheeled Vehicles sold, partially offset by an unfavourable foreign exchange rate variation Off-Road Vehicles $526,6 $396,1 Ten months into the 2018 season, t
Slide 9: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Revenue increase of 8% 8% Mainly driven by a higher volume of PWC sold, partially offset by an unfavourable foreign exchange rate variation Snowmobiles $324,3 $350,4 The North American snowmobile industry ended season 2018 up mid-single d
Slide 10: Propulsion Systems and Parts, Accessories and Clothing
Propulsion Systems and Parts, Accessories and Clothing Propulsion Systems Parts, Accessories and Clothing Revenues Revenues CA$ millions CA$ millions 11% 9% $154,6 $168,6 $101,9 $91,1 [1] [1] FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 Business Dynamics Business Dynamics Revenue decrease of 11% Revenue increase
Slide 11: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2018 BRP Inc. | FY19Q1 11
Slide 12: FY19 Q1 - Financial Highlights
FY19 Q1 - Financial Highlights Q1 Comparison CA$ millions FY19 FY18[2] Change Total Revenues $1,136.7 $976.9 $159.8 Growth +16.4% Gross Profit $281.6 $227.1 $54.5 As a % of revenues 24.8% 23.2% Operating Income $86.2 $60.4 $25.8 As a % of revenues 7.6% 6.2% Net Income (Loss) $13.4 $(4.9) $18.3 As a
Slide 13: FY19 Q1 - Normalized Net Income Bridge
FY19 Q1 - Normalized Net Income[1] Bridge CA$ millions 6 (21) (12) 52 (14) 54 43 FY18 Q1 Volume, Mix, Production Costs Operating Net Financing Costs Foreign Exchange FY19 Q1 [2] Restated Pricing and and Others Expenses and Normalized Rates Sales Programs Income Tax Expense [1] See “Non-IFRS Measures
Slide 14: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY19 Q1 up 8% from FY18 Q1 level Increase primarily driven by: Q1 Q2 Q3 Q4 Continued strong demand for the Can-Am FY16 FY17 FY18 SSV line-up, and; Higher level of
Slide 15: FY19 Full-Year Guidance - as at May 31, 2018
FY19 Full-Year Guidance - as at May 31, 2018 The table below sets forth BRP’s financial guidance for Fiscal Year 2019 when compared to actual results for Fiscal Year 2018, as revised to reflect the adoption of new IFRS 9 Financial instruments (“IFRS 9”) and IFRS 15 Revenue from contracts with custom
Slide 16: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2018 ROTAX © CAN-AM © BRP Inc. | FY19Q1 © 2018 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
Slide 17: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2018 ROTAX © CAN-AM © BRP Inc. | FY19Q1 © 2018 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 17 are trademarks of Bombardier Recreational Products Inc. or its a
Slide 18: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Side-by-Side Vehicles Three-Wheeled Vehicles Seasonal Products Ski-Doo Snowmobiles Lynx Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerfu
Slide 19: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2018 ROTAX © CAN-AM © BRP Inc. | FY19Q1 © 2018 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 19 are trademarks of Bombardier Recreational Products Inc. or its aff
Slide 20: Impact of the Adoption of IFRS 15 and IFRS 9 on FY18 Results
Impact of the Adoption of IFRS 15 and IFRS 9 on FY18 Results Adoption FY18 FY18 Impact CA$ millions Old GAAP IFRS 15 & 9 Restated[1] Revenues by category Year-Round Products $1,829.5 ($19.5) $1,810.0 Seasonal Products 1,560.1 (6.2) 1,553.9 Propulsion Systems 394.7 (8.8) 385.9 PAC 702.6 0.1 702.7 Tot
Slide 21: FY18 Quarterly Results Restated
FY18 Quarterly Results Restated[1] Three-month periods ended CA$ millions Apr. 30, 2017 Jul. 31, 2017 Oct. 30, 2017 Jan. 31, 2018 Revenues by category Year-Round Products $396.1 $440.4 $464.4 $509.1 Seasonal Products 324.3 316.8 475.6 437.2 Propulsion Systems 101.9 103.2 92.0 88.8 PAC 154.6 162.7 19
Slide 22: Reconciliation Tables
Reconciliation Tables Three-month periods ended CA$ millions Apr. 30, 2018 Apr. 30, 2017 Restated Net Income (Loss) $13.4 $(4.9) Normalized elements: Foreign exchange loss on long-term debt 41.5 44.2 Restructuring and related costs[1] 0.2 - Loss on litigation[2] 0.6 4.8 Other elements (2.0) - Income
Slide 23: BRP Inc. | FY19Q1
BRP, Sk¥-dog LYWX seeces00. EVINRUDE ROTAX |