Slide 1: Quarterly Review: First Quarter Ended April 30, 2015
QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation about the Company’s current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words “m
Slide 3: José Boisjoli, President & Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT & CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2015 BRP Inc. - FY16 Q1 3
Slide 4: FY16 Q1 Revenues and Normalized EPS
FY16 Q1 Revenues and Normalized EPS Revenues Normalized EPS - Diluted[1] CA$ millions CA$ millions 18% 121% $898.1 $0.31 $758.6 $0.14 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Q1 Financial Highlights Increase of 18% in revenues quarterly revenues primarily driven primarily by driven higher by shipments earlier
Slide 5: FY16 Q1 Business Highlights
FY16 Q1 Business Highlights Markets North America Dynamics Revenue growth of 28% BRP retail sales for Seasonal Products and Year-Round Products were up 6% in aggregate for the three-month period ended April 30, 2015 vs the same period last year Network inventory[1] was up 26% vs the end of FY1
Slide 6: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Increase in Year-Round Products revenues primarily attributable to SSV with the introduction 9% of the Maverick X ds Turbo Off-Road Vehicles $398.1 $365.4 N.A. SSV industry retail was up mid-teens digits % ten months into the season Can
Slide 7: MY16 ORV Line-up News
MY16 ORV Line-up News INCREASED THE POWER OF INTRODUCED THREE NEW CLASS- THE 1000CC TURBO ENGINE TO EXPANDED THE OUTLANDER L LEADING ROTAX ATV ENGINES: 131HP AND EXTENDED ITS LINE-UP BY INTRODUCING NEW 570CC, 850CC AND 1000CC AVAILABILITY TO MORE SPECIALIZED MODELS AFFORDABLE MODELS Can-Am ORV expan
Slide 8: New Partnership with Mossy Oak
New Partnership with Mossy Oak® BRP and Mossy Oak® Partnership Who is Mossy Oak®?: Industry leader in modern camouflage designs Broad credibility and appeal within the hunting community, with deep consumer knowledge Partnership: 2016 Can-Am SSV Commander, ATV Outlander and Outlander L to f
Slide 9: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Increase in Seasonal Products revenues driven by: 47% Shipments pattern return to normal for traditional PWC following the completion of the production ramp-up phase at the Querétaro facility Additional Sea-Doo Spark shipments to sustain
Slide 10: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions 5% increase in Propulsion Systems revenues primarily attributable to a favourable mix of 5% outboard engines driven by the introduction of Evinrude E-TEC G2 engines $97.3 $102.5 Outboard Engines Ten months into the 2015 season, North Ameri
Slide 11: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Parts, Accessories and Clothing 13% Growth primarily driven by higher volume of Year-Round Products and outboard engines PAC resulting from new product introductions $111.3 $126.3 FY15 Q1 FY16 Q1 PAC Distribution Transfer Dist
Slide 12: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2015 BRP Inc. - FY16 Q1 12
Slide 13: FY16 Q1 - Financial Highlights
FY16 Q1 - Financial Highlights Q1 comparison CA$ millions FY16 FY15 Change Total Revenues $898.1 $758.6 $139.5 Growth +18.4% Gross Profit $212.9 $173.4 $39.5 As a % of revenues 23.7% 22.9% Operating Income $63.8 $28.4 $35.4 As a % of revenues 7.1% 3.7% Net Income $83.1 $28.0 $55.1 As a % of revenues
Slide 14: FY16 Q1 - Revenues by Product Category and Geography
FY16 Q1 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 18% 18% $898.1 $898.1 $126.3 +13% $758.6 $758.6 PAC $254.8 -1% $111.3 $102.5 +5% International Propulsion Systems $256.2 $97.3 $148.7 +17% Seasonal $271.2 +47% Canada Pro
Slide 15: Quarterly Normalized Net Income Bridge
Quarterly Normalized Net Income Bridge CA$ millions 9 (13) (1) (5) 30 37 17 FY15 Q1 Volume, Mix, Production Costs Net Financing Depreciation Foreign Exchange FY16 Q1 Pricing and and Operating Costs and Normalized Sales Programs Expenses Income Tax Expense Normalized Net Income increased 124% compare
Slide 16: FY16 Q1 - Financial Position and Liquidity Profile
FY16 Q1 - Financial Position and Liquidity Profile As at Apr. 30 As at Jan. 31 CA$ millions 2015 2015 Change Cash $235.3 $232.0 $3.3 Working capital 320.8 291.8 29.0 Revolving credit facilities - - - Long-term debt[1] 990.1 1,035.5 (45.4) 3-month comparison CA$ millions FY16 FY15 Change Capital expe
Slide 17: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY16 Q1 up 26% from FY15 Q1 level Year-Round Products - Inventory slightly up Primarily driven by the addition of the Can-Am Outlander L to the line-up Initial shipm
Slide 18: FY16 Full-Year Guidance - as at June 11, 2015
FY16 Full-Year Guidance - as at June 11, 2015 Financial Metric FY16 Guidance vs FY15 Revenues Year-Round Products Up 7% to 11% Seasonal Products Flat to up 4% Propulsion Systems Up 7% to 10% PAC Up 10% to 15% Total Company Revenues Up 5% to 9% Normalized EBITDA Up 6% to 10% Up from a normalized inco
Slide 19: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q1 © 2015 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
Slide 20: Three Strategic Priorities Going Forward
Three Strategic Priorities Going Forward GROWTH Gain market shares through innovation Accelerate Year-Round Products growth by entering new segments Continue the development of our dealer network Define the next wave of growth AGILITY Leverage modular approach for engines and vehicles In
Slide 21: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q1 © 2015 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 21 are trademarks of Bombardier Recreational Products Inc. or its
Slide 22: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Roadsters Side-by-Side Vehicles Seasonal Products Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY16 Q1 22
Slide 23: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q1 © 2015 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 23 are trademarks of Bombardier Recreational Products Inc. or its af
Slide 24: Reconciliation Tables
Reconciliation Tables Three-month periods ended CA$ millions Apr. 30, 2015 Apr. 30, 2014 Net Income $83.1 $28.0 Normalized elements: Foreign exchange gain on long-term debt (46.0) (12.3) Restructuring costs reversal [1] - (0.4) Reversal of gain from insurance recovery [2] - 1.4 Other elements [3] 0.
Slide 25: BRP Inc. - FY16 Q1
Ski-Doo" Lynx" Sea-Doo" BRP Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE all as . _ ~ > c iy = | | - 4 boy, - S