Slide 1: Quarterly Review: First Quarter Ended April 30, 2016
QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2016
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, 2016 BRP Inc. - FY17 Q1 3
Slide 4: FY17 Q1 Revenues and Normalized EPS
FY17 Q1 Revenues and Normalized EPS Revenues Normalized EPS - Diluted[1] CA$ millions CA$ 4% $0.27 $929.9 $0.31 $898.1 $0.04 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Q1 Highlights Results in-line with outlook given for Q1 Increase of 4%9% in revenues primarily driven by favourable foreign exchange rate vari
Slide 5: Strong Worldwide Powersports Retail Momentum
Strong Worldwide Powersports Retail Momentum FY17 Q1 Retail Variation SCANDINAVIA [1] [1] INDUSTRY NORTH AMERICA 1% Flat INDUSTRY 14% 3% WEMEA [2] INDUSTRY 12% 9% ASIA-PACIFIC [2] INDUSTRY LATIN AMERICA INDUSTRY [2] 26% 5% 3% 37% [1] ATV and snowmobile only, based on data from February and March [2]
Slide 6: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Revenue increase of 1%: 1% Mainly driven by higher volume of ATV sold and a favourable foreign exchange rate variation; Mostly offset by lower wholesale volume for Spyder $398.1 $400.2 Off-Road Vehicles Ten months into the 2016 season
Slide 7: MY17 ORV Line-up News
MY17 ORV Line-up News Defender and Outlander Mossy Oak® Hunting Edition The ultimate factory-ready hunting package Strengthening our Can-Am ORV offering with new more specialized vehicles to address customers needs Mossy Oak® Edition of the Can-Am Defender HD10 and Outlander 1000R Extending the
Slide 8: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Revenue increase of 6%: 6% Mainly driven by a higher volume and a favourable mix of PWC sold, and a favourable foreign exchange rate variation; Partially offset by additional sales programs costs $286.8 for snowmobile to mitigate the impa
Slide 9: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Revenue increase of 8%: 8% Mainly driven by a favourable foreign exchange rate variation and a higher volume of aircraft engines sold $102.5 $111.1 Outboard Engines Ten months into the 2016 season, North American outboard engines industr
Slide 10: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Revenue increase of 4%: 4% Mainly driven by favourable foreign exchange rate variations and good momentum in Can-Am Off-Road accessories sales; Partially offset by lower snowmobile parts sales due $126.3 $131.8 to poor snow
Slide 11: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2016 BRP Inc. - FY17 Q1 11
Slide 12: FY17 Q1 - Financial Highlights
FY17 Q1 - Financial Highlights Q1 comparison CA$ millions FY17 FY16 Change Total Revenues $929.9 $898.1 $31.8 Growth +3.5% Gross Profit $194.1 $212.9 ($18.8) As a % of revenues 20.9% 23.7% Operating Income $6.5 $63.8 ($57.3) As a % of revenues 0.7% 7.1% Net Income $110.7 $83.1 $27.6 As a % of revenu
Slide 13: FY17 Q1 - Revenues by Product Category and Geography
FY17 Q1 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 4% 4% $929.9 $929.9 $898.1 $898.1 PAC $131.8 +4% $126.3 $254.8 International $297.1 +17% Propulsion $111.1 +8% $102.5 Systems Seasonal $148.7 Canada $134.9 -9% $271.2 $28
Slide 14: FY17 Q1 - Normalized Net Income Bridge
FY17 Q1 - Normalized Net Income Bridge CA$ millions 5 (10) (5) (15) 37 7 (15) 5 FY16 Q1 Volume Pricing and Production Costs Operating Net Financing Foreign Exchange FY17 Q1 and Mix Sales Programs and Depeciation Expenses Costs and Rates Normalized Income Tax Expense Normalized Net Income down $32M p
Slide 15: FY17 Q1 - Financial Position and Liquidity Profile
FY17 Q1 - Financial Position and Liquidity Profile As at Apr. 30 As at Jan. 31 CA$ millions 2016 2016 Change Cash $183.2 $235.0 ($51.8) Working capital 313.1 364.0 (50.9) Revolving credit facilities - - - Long-term debt[1] 1,027.0 1,146.6 (119.6) 3-month comparison CA$ millions FY17 FY16 Change Capi
Slide 16: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY17 Q1 down 1% from FY16 Q1 level Q1 Q2 Q3 Q4 Network inventory is up in certain areas of the FY15 FY16 FY17 business primarily driven by: Slightly higher network i
Slide 17: FY17 Full-Year Guidance - as at June 9, 2016
FY17 Full-Year Guidance - as at June 9, 2016 Financial Metric FY17 Guidance vs FY16 Revenues Year-Round Products Up 6% to 10% Seasonal Products Flat to up 4% Propulsion Systems Up 5% to 10% PAC Up 5% to 10% Total Company Revenues Up 4% to 8% Normalized EBITDA Up 7% to 10% Effective Tax Rate[1] 27% -
Slide 18: FY17 Guidance - Back Half Loaded Profitability
FY17 Guidance - Back Half Loaded Profitability Normalized EBITDA by Half Year As a percentage of full fiscal year normalized EBITDA First Half Contribution Second Half Contribution FY14 FY15 FY16 FY17 100% 50% 50% 100% Elements Impacting H1 FY17 vs. FY16 Elements Impacting H2 FY17 vs. FY16 Additiona
Slide 19: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2016 ROTAX © CAN-AM © BRP Inc. - FY17 Q1 © 2016 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: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2016 ROTAX © CAN-AM © BRP Inc. - FY17 Q1 © 2016 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 20 are trademarks of Bombardier Recreational Products Inc. or its
Slide 21: 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. - FY17 Q1 21
Slide 22: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FIRST QUARTER ENDED APRIL 30, 2016 ROTAX © CAN-AM © BRP Inc. - FY17 Q1 © 2016 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 22 are trademarks of Bombardier Recreational Products Inc. or its af
Slide 23: Reconciliation Tables
Reconciliation Tables Three-month periods ended CA$ millions Apr. 30, 2016 Apr. 30, 2015 Net Income (loss) $110.7 $83.1 Normalized elements: Foreign exchange loss on long-term debt (119.2) (46.0) Restructuring and related costs (reversal) [1] (0.5) 0.6 Loss on litigation [2] 19.5 - Income taxes adju
Slide 24: BRP Inc. - FY17 Q1
Ski-Doo" Lynx" Sea-Doo SRP. Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE