Slide 1: Quarterly Review: Second Quarter Ended July 31, 2020
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain statements in this presentation, including, but not limited to, including, but not limited to, statements relating to our Fiscal Year 2021 financial outlook and related assumptions of the Company (including revenues, No
Slide 3: José Boisjoli, President and CEO: Quarterly Review
JOSÉ BOISJOLI PRESIDENTAND PRESIDENT AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTERENDED ENDED JULY JULY 31, 31, 20202018 QUARTERLY REVIEW Second Quarter Ended July 31, 2020
Slide 4: FY21 Q2 Financial Highlights
FY21 Q2 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ -15% +49% +61% $1,460 $1.43 $1,233 $0.96 $1.14 $0.71 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 Highlights vs. Last Year Revenues down 15% mainly due to lower shipmen
Slide 5: FY21 Q2: Solid Retail Growth Globally
FY21 Q2: Solid Retail Growth Globally Powersports Retail Growth by Region[1] North American Powersports Retail Growth by Product Line NORTH AMERICA EMEA INDUSTRY BRP INDUSTRY BRP INDUSTRY LOW- +40% LOW- SIXTY % +41% HIGH-SINGLE DIGIT % TOTAL NORTH AMERICA 40% SIXTY % SIDE-BY-SIDE HIGH- LOW- VEHICLES
Slide 6: Exceptional Consumer Demand Coupled with Production Suspension Impacted Unit Availability
Exceptional Consumer Demand Coupled with Production Suspension Impacted Unit Availability FY21 Q2: Inventory Position Overview Impact of Temporary Production Suspension Network Inventory DEALER INVENTORY YARD INVENTORY SSV: North America Dealer Inventory Cumulative Retail Sales North America Powersp
Slide 7: FY21 Q2: Strong Influx of New Customers
FY21 Q2: Strong Influx of New Customers Results from a global study done with customers who purchased a unit in Q2 CUSTOMER PROFILE GROWTH[1] IN “NEW TO BRP” CUSTOMERS 77% OF OUR POWERSPORTS “NEW TO BRP” CUSTOMERS SIGNIFICANTLY CUSTOMERS IN FY21 Q2 CONTRIBUTED TO OUR GROWTH AS THEY WERE UP WERE “NEW
Slide 8: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products revenues down 15% Resulted mainly from a lower volume of products sold due to the temporary suspension of -15% production caused by COVID-19, partially offset by a favourable product mix in 3WV, lower sales programs and favou
Slide 9: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products revenues down 25% Primarily driven by a lower volume of products sold due to the temporary suspension of -25% production and an unfavourable product mix in PWC, partially offset by lower sales programs Personal Watercraft (PWC) $
Slide 10: Powersports PA&A and OEM Engines
Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines revenues up 20% Primarily driven by a higher volume of PA&A coming from strong unit retail sales and +20% higher replacement parts revenue driven by an increase usage of products by consumers Parts
Slide 11: Marine
Marine Highlights Revenues CA$ millions Marine revenues down 35% Primarily due to the wind-down of the Evinrude outboard engines production resulting in -35% additional retail sales incentives and a lower volume of outboard engines sold, partially offset by the additional revenues following the ac
Slide 12: José Boisjoli and Sébastien Martel: Quarterly Review
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTERENDED ENDED JULY JULY 31, 31, 20202018 QUARTERLY REVIEW Second Quarter Ended July 31, 2020
Slide 13: FY21 Q2 - Financial Highlights
FY21 Q2 - Financial Highlights Q2 Comparison 6-month Comparison CA$ millions FY21 FY20 Change FY21 FY20 Change Total Revenues $1,233.3 $1,459.5 ($226.2) $2,463.1 $2,793.2 ($330.1) Growth (15.5%) (11.8%) Gross Profit $248.4 $327.8 ($79.4) $483.5 $628.4 ($144.9) As a % of revenues 20.1% 22.5% 19.6% 22
Slide 14: FY21 Q2 - Revenues by Product Category and Geography
FY21 Q2 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions -15% -15% $1,459.5 $1,459.5 $122.7 Marine $1,233.3 $377.0 $1,233.3 $173.7 Powersports PA&A and $80.4 34% International OEM Engines $209.0 20% $432.0 15% $428.5 Seasonal $
Slide 15: FY21 Q2 - Gross Profit Margin Bridge
FY21 Q2 - Gross Profit Margin Bridge 0.4% 2.3% (3.3%) (1.8%) 25.2% 22.5% 20.1% FY20 Q2 Volume, Mix, Foreign FY21 Q2 Evinrude Outboard Engines COVID-19 FY21 Q2 Gross Profit Pricing and Exchange Gross Profit Wind-Down Impact Gross Profit Margin Sales Programs Gain Margin before Margin Special Elements
Slide 16: FY21 Q2 - Net Income and Normalized Net Income Bridge
FY21 Q2 - Net Income and Normalized Net Income Bridge [1] Net Income Bridge CA$ millions 22 (86) 71 (41) 76 (9) 126 93 FY20 Q2 Volume, Mix, Production Costs Operating Net Financing Costs, Evinrude Ouboard Engine Foreign Exchange FY21 Q2 Net Income Pricing and and Depreciation Expenses Income Tax Exp
Slide 17: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Year-over-Year Bridge Inventory Replenishment Units, Excluding Outboard Engines and Boats EXPECTATIONS On-going inventory replenishment SIDE-BY-SIDE Production line speed increase and additional shifts -51% VEHICLES New SSV capacit
Slide 18: FY21 Full-Year Guidance - as at August 27, 2020
FY21 Full-Year Guidance - as at August 27, 2020 Financial Metric FY20 FY21 Guidance[3] vs FY20 Revenues Year-Round Products $2,791.7 Flat to Down 4% Seasonal Products 1,901.4 Down 12% to 15% Powersports PA&A and OEM Engines 799.8 Flat to Up 5% Marine 559.8 Down 25% to 30% Total Company Revenues 6,05
Slide 19: FY21: H1 and H2 Overview
FY21: H1 and H2 Overview FY21 H1 Results FY21 H2 Guidance[1] REVENUES NORMALIZED EBITDA REVENUES NORMALIZED EBITDA $CA millions $CA millions $CA millions $CA millions -12% +7% Flat to down 7% Down 5% to Up 4% FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H2 FY21 H2 FY20 H2 FY21 H2 Production shut down Costs
Slide 20: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTERENDED ENDED JULY JULY 31, 31, 20202018 QUARTERLY REVIEW Second Quarter Ended July 31, 2020
Slide 21: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTERENDED ENDED JULY JULY 31, 31, 20202018 QUARTERLY REVIEW Second Quarter Ended July 31, 2020
Slide 22: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTERENDED ENDED JULY JULY 31, 31, 20202018 QUARTERLY REVIEW Second Quarter Ended July 31, 2020
Slide 23: Reconciliation Tables
Reconciliation Tables Three-month periods ended Six-month periods ended CA$ millions Jul. 31, 2020 Jul. 31, 2019 Jul. 31, 2020 Jul. 31, 2019 Net Income/(Loss) $126.1 $93.3 ($100.0) $117.1 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and Lease Liabilities (97.8) (27.2) (9.0) 0.
Slide 24: Non-IFRS Measures
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 Net Income is defined as net income before normalized elements adjusted to reflect the tax effect on these el
Slide 25: ShP-d0O LYWX SE0KD00. CAI-AII ROTAX. ALWMACfe Haniteu EVINRUDE
ShP-d0O LYWX SE0KD00. CAI-AII ROTAX. ALWMACfe Haniteu EVINRUDE