Brp, Inc. · TSX:DOO
Brp — Q4 FY2019 Earnings Presentation
27 slides from Brp's earnings presentation, Mar 22, 2019
Slide 1: Quarterly Review: Fourth Quarter Ended January 31, 2019
QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain information included 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 developm
Slide 3: José Boisjoli, President and Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2019 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2019
Slide 4: FY19 Revenues, EPS and Normalized EPS
FY19 Revenues, EPS and Normalized EPS Revenues Earnings per Share Normalized Earnings per Share[2] CA$ millions CA$ CA$ +18% +3% +37% $5,244 $3.10 $4,453 $2.21 $2.28 $2.27 [1] [1] [1] FY18 FY19 FY18 FY19 FY18 FY19 Highlights vs. Last Year ◼ Increase of 18% in revenues mainly driven by higher wholesa
Slide 5: Constantly Outpacing the Industry for the last 3 Years
Constantly Outpacing the Industry for the last 3 Years North American Powersports Retail Sales Growth[1] FY17 FY18 FY19 11% 11% 5% MID-SINGLE DIGIT % LOW-SINGLE DIGIT % LOW-SINGLE DIGIT % BRP Industry [1]Units, Year-over-year growth Outpacing the industry through relentless focus on excellence and i
Slide 6: FY19 Highlights
FY19 Highlights STRATEGIC PRIORITIES FY19 HIGHLIGHTS Delivered industry-leading performance GROWTH ◼ Achieved 11% North American Powersports retail sales growth for the year on the back of a solid portfolio of products, sustained customer experience centric marketing efforts and continued focus on o
Slide 7: FY19 Q4: Continued Strong Retail Results in North America
FY19 Q4: Continued Strong Retail Results in North America… North American Powersports Retail Growth by Product Line FY19 Q4 compared to FY18 Q4 BRP VS. GROWTH DECLINE BRP INDUSTRY INDUSTRY TOTAL POWERSPORTS 9% FLAT LOW-SINGLE POWERSPORTS EXCL. SNOWMOBILES 19% DIGIT % HIGH- LOW-SINGLE SIDE-BY-SIDE VE
Slide 8: And Around the World
… And Around the World BRP INDUSTRY[2] NORTH AMERICA 9% FLAT NORTH AMERICA EXCL. SNOWMOBILES 19% LOW-SINGLE DIGIT % LATIN AMERICA 8% NOT AVAILABLE EMEA[1] 6% LOW-SINGLE DIGIT % ASIA-PACIFIC[1] 3% ABOUT 10% [1]Three-month period from October to December [2]Industry includes Three-Wheeled Motorcycles
Slide 9: Continuing to Seize Untapped Opportunities in the SSV Industry
Continuing to Seize Untapped Opportunities in the SSV Industry … and there are still significant opportunities Our line-up continued to drive strong retail growth in FY19… to further grab market shares North American Can-Am SSV Retail U.S. SSV Industry Retail Sales by Segment Units, Rolling Twelve M
Slide 10: Phase 2 of Juárez 2 Capacity Expansion Update
Phase 2 of Juárez 2 Capacity Expansion Update Juárez 2 Facility Phase 2 of Juárez 2 capacity expansion is completed Juárez 2 SSV Production Capacity End of Quarter Capacity, Units per hour PHASE 1 PHASE 2 COMPLETED COMPLETED Added ~30% of SSV Currently ramping-up production capacity production with
Slide 11: Can-Am Ryker Launch Update
Can-Am Ryker Launch Update PRODUCTION AND SHIPMENTS MSRP STARTING AT US$8,499, RYKER DESIGN LAB INSTALLATION LOWERING PRICING BY ALMOST 50%[1] DEALER TRAINING MARKETING CAMPAIGN IMPRESSIONS: 484M WEBSITE VISIT: 1.5M BUILD YOUR OWN: +178% [1]Vs. previous Can-Am Spyder lowest-priced unit Successful la
Slide 12: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products revenues up 17% ◼ Mainly driven by a higher volume of SSV sold, the introduction of the Can-Am Ryker +17% and a favourable foreign exchange rate variation Side-by-Side Vehicles (SSV) $597.6 ◼ Seven months into the 2019 season,
Slide 13: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products revenues up 32% ◼ Mainly driven by a higher volume and favourable product mix of snowmobile sold and +32% from a favourable foreign exchange rate variation Snowmobile $577.6 ◼ Ten months into the 2019 season, the North American sno
Slide 14: Powersports PAC and OEM Engines / Marine
Powersports PAC and OEM Engines / Marine Powersports PAC and OEM Engines Highlights Revenues CA$ millions Powersports PAC and OEM Engines revenues up 8% ◼ Mainly driven by a higher volume of snowmobile parts and clothing, a higher volume +8% of 3WV accessories driven by the introduction of the Can-A
Slide 15: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2019 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2019
Slide 16: FY19 Q4 - Financial Highlights
FY19 Q4 - Financial Highlights Q4 Comparison 12-month Comparison CA$ millions FY19 FY18[1] Change FY19 FY18[1] Change Total Revenues $1,505.9 $1,226.0 $279.9 $5,243.8 $4,452.5 $791.3 Growth +22.8% +17.8% Gross Profit $334.9 $282.1 $52.8 $1,253.4 $1,045.1 $208.3 As a % of revenues 22.2% 23.0% 23.9% 2
Slide 17: FY19 Q4 - Net Income and Normalized Net Income Bridge
FY19 Q4 - Net Income and Normalized Net Income[1] Bridge Net Income Bridge Normalized Net Income[1] Bridge CA$ millions CA$ millions (65) (65) (2) 120 120 53 (48) (46) (46) 2 (2) 83 86 70 76 FY18 Q4 Volume, Mix, Production Costs Operating Net Financing Foreign Foreign FY19 Q4 FY18 Q4 Volume, Mix, Pr
Slide 18: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Dealer Inventory Bridge Units, Excluding Outboard Engines and Boats Units, Excluding Outboard Engines and Boats +15% New Can-Am Maverick Sport Q1 Q2 Q3 Q4 FY18 Q4 SSV Can-Am Ryker PWC Snowmobile Rest of the FY19 Q4 FY17 FY18 FY19
Slide 19: FY20 Full-Year Guidance - as at March 22, 2019
FY20 Full-Year Guidance - as at March 22, 2019 The table below sets forth BRP’s financial guidance for Fiscal Year 2020 which reflects the adoption of new IFRS 16 - Leases standard effective as of February 1, 2019. Under IFRS 16 - Leases, operating lease expenses are recorded as depreciation and int
Slide 20: FY20 Guidance – Normalized Net Income by Half Year
FY20 Guidance – Normalized Net Income[1] by Half Year Normalized Net Income Contribution by Half Year Normalized Net Income Impact: FY20 vs FY19 First Half of the Year First Half Contribution Second Half Contribution Continued SSV momentum Introduction of the Can-Am Ryker Boat companies acquisition
Slide 21: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2019 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2019
Slide 22: 2020 Objective Update: Growth
2020 Objective Update: Growth ◼ Accelerate growth GROWTH ◼ Create a strong pipeline of new growth opportunities GAINED MARKET SHARE THROUGH INNOVATION AND CUSTOMER EXPERIENCE CENTRIC MARKETING APPROACH SKI-DOO: +3.5%[1] | SEA-DOO: +4.5%[1] | CAN-AM ATV: +4.6%[1] ACCELERATED SSV GROWTH BY ENTERING IN
Slide 23: 2020 Objective Update: Agility and Lean Enterprise
2020 Objective Update: Agility and Lean Enterprise AGILITY AND ◼ Implement a more flexible supply chain to improve consumer experience and reduce working capital LEAN ENTERPRISE ◼ Relentless pursuit of EPS improvement through organizational excellence and a lean mindset across BRP HIGH PACE OF INNOV
Slide 24: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2019 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2019
Slide 25: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2019 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2019
Slide 26: Reconciliation Tables
Reconciliation Tables Three-month periods ended Twelve-month periods ended CA$ millions Jan. 31, 2019 Jan. 31, 2018 Jan. 31, 2019 Jan. 31, 2018 Restated Restated Net Income $82.7 $70.0 $227.3 $239.1 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt 0.8 (47.4) 69.8 (53.3) Transactio
Slide 27: Shtiog LYM Se0200 EVINRUDE ROTAX. can-am
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