Slide 1: Quarterly Review, Second Quarter Ended July 31, 2018
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning 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 const
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, 20182018 QUARTERLY REVIEW Second Quarter Ended July 31, 2018
Slide 4: FY19 Q2 Revenues, EPS and Normalized EPS
FY19 Q2 Revenues, EPS and Normalized EPS Revenues Earnings per Share Normalized Earnings per Share[2] CA$ millions CA$ CA$ +18% -56% +230% $1,207 $0.66 $1,023 $0.93 $0.41 $0.20 [1] [1] [1] FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 Highlights vs. Last Year Increase of 18% in revenues primaril
Slide 5: Continued Strong Retail Momentum in North America
FY19 Q2: Continued Strong Retail Momentum in North America… North American Powersports Retail Growth by Product Line FY19 Q2 compared to FY18 Q2 BRP VS. GROWTH DECLINE BRP INDUSTRY INDUSTRY TOTAL POWERSPORTS HIGH-SINGLE 16% DIGIT % SIDE-BY-SIDE VEHICLES LOW- LOW- THIRTY % TEEN % ALL-TERRAIN VEHICLES
Slide 6: And Around the World
… And Around the World NORTH AMERICA LATIN AMERICA EMEA ASIA-PACIFIC BRP 16% BRP 13% BRP 11% BRP 21% Industry HIGH-SINGLE DIGIT % Industry Not Available Industry [1] 6% Industry [1] 4% [2] [1]3-month period from April to June Our product line-up is performing well in all regions of the world QUARTER
Slide 7: Marine Group: Our Strategy
Marine Group: Our Strategy SHORT-TERM BUY Create a global marine business through acquisitions to reach a “critical mass” allowing us to be a significant player in the industry MID-TERM Drive growth and efficiency: BUILD ▪ Optimization of dealer networks ▪ Conversion of engines to Evinrude ▪ Shared
Slide 8: Acquisition of Alumacraft Boat and Manitou Boat: The Rationale
Acquisition of Alumacraft Boat and Manitou Boat: The Rationale ATTRACTIVE STRATEGIC SOLID INDUSTRY FUNDAMENTALS HIGH-QUALITY COMPANIES OPPORTUNITIES U.S. Powerboat Market Units, 2017 Aluminum Boat Sold Units, 2012-2017 › Dealer network optimization HIGH-SINGLE ▪ Premier manufacturer of aluminum fish
Slide 9: Marine Group Creation Leading to New Segment Reporting
Marine Group Creation Leading to New Segment Reporting Powersports Group Marine Group Unchanged Unchanged New Category New Category Year-Round Seasonal Powersports PAC and Marine Engines, Boats Products Products OEM Engines and PAC ▪ Side-by-side Vehicles ▪ Snowmobile ▪ Powersports Parts, ▪ Outboard
Slide 10: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products revenues up 26% Mainly driven by a higher volume and favourable product mix of SSV sold, partially +26% offset by an unfavourable foreign exchange rate variation Side-by-Side Vehicles (SSV) The North American SSV industry e
Slide 11: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products revenues up 21% Mainly driven by a higher volume and favourable product mix of PWC sold and from +21% a favourable product mix of snowmobile sold Personal Watercraft (PWC) Ten months into the 2018 season, the North American PWC
Slide 12: Powersports PAC and OEM Engines / Marine Engines, Boats and PAC
Powersports PAC and OEM Engines / Marine Engines, Boats and PAC Powersports PAC and OEM Engines Highlights Revenues CA$ millions Powersports PAC and OEM Engines revenues up 3% Mainly driven by a higher volume of SSV and PWC accessories sold, partially offset +3% by lower volume of motorcycle engin
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, 20182018 QUARTERLY REVIEW Second Quarter Ended July 31, 2018
Slide 14: FY19 Q2 - Financial Highlights
FY19 Q2 - Financial Highlights Q2 Comparison 6-month Comparison CA$ millions FY19 FY18[1] Change FY19 FY18[1] Change Total Revenues $1,207.0 $1,023.1 $183.9 $2,343.7 $2,000.0 $343.7 Growth +18.0% +17.2% Gross Profit $280.1 $216.0 $64.1 $561.7 $443.1 $118.6 As a % of revenues 23.2% 21.1% 24.0% 22.2%
Slide 15: FY19 Q2 - Net Income and Normalized Net Income Bridge
FY19 Q2 - Net Income and Normalized Net Income[1] Bridge Net Income Bridge Normalized Net Income[1] Bridge (15) (15) 73 (20) 12 (98) (15) (15) 73 (12) 12 104 66 41 23 FY18 Q2 Volume, Mix, Production Operating Net Financing Foreign Foreign FY19 Q2 FY18 Q2 Volume, Mix, Production Operating Net Financi
Slide 16: 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 +7% Q1 Q2 Q3 Q4 FY18 Q2 New Can-Am PWC Snowmobile Rest of the FY19 Q2 FY17 FY18 FY19 SSV Models Line-up Highlights De
Slide 17: FY19 Full-Year Guidance - as at August 30, 2018
FY19 Full-Year Guidance - as at August 30, 2018 The table below sets forth BRP’s financial guidance for Fiscal Year 2019 when compared to actual results for Fiscal Year 2018, as revised to reflect the adoption of new IFRS 9 Financial instruments and IFRS 15 Revenue from contracts with customers stan
Slide 18: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20182018 QUARTERLY REVIEW Second Quarter Ended July 31, 2018
Slide 19: 2020 Objective Update
2020 Objective Update Strategic Priorities and FY21 Financial Objectives launched in April 2015 GROWTH AGILITY LEAN ENTERPRISE 2020 OBJECTIVE Accelerate growth Implement a more flexible Relentless pursuit of EPS Revenues Normalized EPS supply chain to improve improvement through $6B $3.50 Create a s
Slide 20: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20182018 QUARTERLY REVIEW Second Quarter Ended July 31, 2018
Slide 21: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20182018 QUARTERLY REVIEW Second Quarter Ended July 31, 2018
Slide 22: Reconciliation Tables
Reconciliation Tables Three-month periods ended Six-month periods ended CA$ millions Jul. 31, 2018 Jul. 31, 2017 Jul. 31, 2018 Jul. 31, 2017 Restated Restated Net Income $41.0 $104.0 $54.4 $99.1 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt 17.3 (81.8) 58.8 (37.6) Transaction C
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