Slide 1: Quarterly Review: Second Quarter Ended July 31, 2023
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2023
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 Fiscal Year 2024 financial guidance and where it stands with respect to it, and related assumptions of the Company
Slide 3: José Boisjoli, President and CEO
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20232018 QUARTERLY REVIEW Second Quarter Ended July 31, 2023
Slide 4: FY24 Q2 Financial Highlights
FY24 Q2 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ +14% +45% +9% $2,778 $4.26 $3.21 $2,439 $2.94 $2.94 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 Highlights vs. Last Year ◼ Revenues increased 14% primarily driven by a h
Slide 5: FY24 Q2 Powersports Retail Update
FY24 Q2 Powersports Retail Update North American Powersports Retail Growth by Product Line Powersports Retail Growth by Region FY24 Q2 retail sales in units compared to FY23 Q2 FY24 Q2 retail sales in units compared to FY23 Q2 BRP VS. BRP VS. INDUSTRY INDUSTRY[1] INDUSTRY INDUSTRY TOTAL POWERSPORTS
Slide 6: Continuing to Experience Solid Retail Trends
Continuing to Experience Solid Retail Trends Delivered our strongest Q2 in terms of retail outside of Our customer base continues to grow and evolve with The demand for our products remains healthy with a Q2 Retail Evolution the initial Covid inventory depletion period more new entrants and higher i
Slide 7: BRP Club 2024 Highlights: Introducing the Can-Am Maverick R
BRP Club 2024 Highlights: Introducing the Can-Am Maverick R Pushing the boundaries in terms of design, performance, handling and comfort ▪ Most powerful SSV ▪ Heavy Duty Tall Knuckle with 240 HP suspension ▪ World’s first high ▪ 10.25 in. touchscreen performance off-road display Dual Clutch Transmis
Slide 8: BRP Club 2024 Highlights: Exceptional Year for New Model Launches
BRP Club 2024 Highlights: Exceptional Year for New Model Launches MY24 SEA-DOO SPARK MY24 MANITOU EXPLORE MAX 300 HP Multiple key product introductions to sustain our growth trajectory in the short, mid and long-term STRENGHTENED OUR LINE-UPS TO SUSTAIN OUR MARKET SHARE GAIN MOMENTUM Introduced seve
Slide 9: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues up 8% + ◼ Higher volume of SSV and ATV sold Higher sales programs +8% + ◼ Favourable Fx variation Q2 Retail Sales Update $1,461.6 $1,358.1 SIDE-BY-SIDE ALL-TERRAIN THREE-WHEELED North American Year-over-year retail g
Slide 10: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues up 30% + ◼ Higher volume of Snowmobile and Switch + Favourable pricing +30% ◼ Higher sales programs + Favourable Fx variation Q2 Retail Sales Update $897.5 $691.2 PERSONAL North American SNOWMOBILE PONTOON Year-over-year
Slide 11: Powersports PA&A and OEM Engines
Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues up 14% + ◼ Higher volume of PA&A driven by strong unit retail sales, and higher volume of Pinion gearboxes sales +14% + ◼ Favourable pricing + Favourable Fx variation ◼ Parts: Double-digit %
Slide 12: Marine
Marine Highlights Revenues CA$ millions Marine | Revenues down 5% ◼ Lower volume of boats and PA&A sold as a result of longer production ramp-up related to the introduction of 5% new products due to supply chain issues, unfavourable mix across most product lines and higher sales programs Q2 Retail S
Slide 13: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20232018 QUARTERLY REVIEW Second Quarter Ended July 31, 2023
Slide 14: FY24 Q2 Financial Overview
FY24 Q2 Financial Overview Financial Highlights Q2 Net Income Bridge Q2 Comparison 6-month Comparison CA$ millions FY24 FY23 Change FY24 FY23 Change 62 (50) (7) 38 Total Revenues $2,778.0 $2,438.5 $339.5 $5,207.4 $4,247.8 $959.6 34 Growth +13.9% +22.6% 24 339 Gross Profit $697.6 $602.7 $94.9 $1,321.
Slide 15: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory FY24 Q2: Inventory Position Overview Network Inventory Evolution since pre-Covid Levels DEALER INVENTORY NORTH AMERICAN DEALER INVENTORY EVOLUTION POWERSPORTS RETAIL BRIDGE VS PRE-COVID North America Powersports, Units FY24 Q2 vs FY20 Q2, Last-twelve-m
Slide 16: FY24 Full-Year Guidance - as at September 7, 2023
FY24 Full-Year Guidance - as at September 7, 2023 Financial Metric FY23[4] FY24 Guidance[3] vs FY23 Revenues vs. Previous Guidance Year-Round Products $4,827.1 Up 16% to 19% Seasonal Products 3,440.3 Down 2% to Up 1% Powersports PA&A and OEM Engines 1,276.4 Down 1% to Up 1% (previously “Up 3% to 7%”
Slide 17: FY24 Guidance Bridge
FY24 Guidance Bridge FY24 Diluted Normalized EPS[1] Guidance Bridge[2] Upgrade Drivers Realignment Drivers ◼ Impact of share repurchases completed in the quarter ◼ Lower shipments of PA&A primarily for 3WV and Sea-Doo Pontoon ◼ Impact of improved model mix, lower turbulence costs and operating expen
Slide 18: FY24 Guidance: H2 Outlook
FY24 Guidance: H2 Outlook FY24 Guidance: Implied H2 REVENUES NORMALIZED EBITDA[1] $CA millions $CA millions FY24 H2 vs FY23 H2 FY24 H2 vs FY23 H2 Down 4% to Up 1% Down 1% to Up 6% FY23 H2 revenues include ~$1B of inventory replenishment FY20 H2 FY21 H2 FY22 H2 FY23 H2 FY24 H2 FY20 H2 FY21 H2 FY22 H2
Slide 19: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20232018 QUARTERLY REVIEW Second Quarter Ended July 31, 2023
Slide 20: Our Strategy Continues to Deliver Solid Results
Our Strategy Continues to Deliver Solid Results We have significantly outperformed … and further reinforced our position as the the industry over the last several years… OEM of choice for the dealers NORTH AMERICAN BRP POWERSPORTS NORTH AMERICAN POWERSPORTS RETAIL GROWTH VS OTHER OEMS AVERAGE UNIT P
Slide 21: Closing Remarks
Closing Remarks DELIVERED SOLID RESULTS IN H1, POSITIONING US WELL FOR A RECORD YEAR IN FY24 › Delivered a solid first half of the year both in terms of financial results and retail performance › Significantly outperformed the industry so far this year › Expecting to deliver a record year in FY24 wi
Slide 22: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20232018 QUARTERLY REVIEW Second Quarter Ended July 31, 2023
Slide 23: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20232018 QUARTERLY REVIEW Second Quarter Ended July 31, 2023
Slide 24: Reconciliation Tables
Reconciliation Tables 3-month periods ended 6-month periods ended CA$ millions Jul. 31, 2023 Jul. 31, 2022 Jul. 31, 2023 Jul. 31, 2022 Net Income $338.7 $237.7 $493.2 $358.7 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and Lease Liabilities (77.6) (0.1) (33.8) 16.0 Gain on NCI
Slide 25: Reconciliation Tables: Free Cash Flow
Reconciliation Tables Free Cash Flow 3-month periods ended 6-month periods ended CA$ millions Jul. 31, 2023 Jul. 31, 2022 Jul. 31, 2023 Jul. 31, 2022 Net Cash Flows Generated from/(Used in) Operating Activities $489.4 $332.1 $748.2 ($1.0) Additions to Property, Plant and Equipment (93.7) (99.6) (204
Slide 26: Appendix - Continued: Non-IFRS Measures
Appendix - Continued Non-IFRS Measures Normalized revenues is defined as revenues before normalized elements. 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
Slide 27: BRP brands: Ski-Doo, Lynx, Sea-Doo, Can-Am
us Ski-Doo Lynx Sea-Doo Can-Am Rotax Alumacraft Manitou FT) ADVENTURE BY DESIGN Quintrex