Slide 1: Quarterly Review: Fourth Quarter and Fiscal Year Ended January 31, 2015
QUARTERLY REVIEW FOURTH QUARTER AND FISCAL YEAR ENDED JANUARY 31, 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 FOURTH QUARTER AND FISCAL YEAR ENDED JANUARY 31, 2015 BRP Inc. - FY15 Q4 3
Slide 4: FY15 Revenues and Normalized Net Income
FY15 Revenues and Normalized Net Income Revenues Normalized Net Income[1] CA$ millions CA$ millions 10% 17% $3,524.7 $196.2 $3,194.1 $168.3 FY14 FY15 FY14 FY15 Financial Highlights Record revenues of with $3.5B, a 10%a 10% increase increase over FY14 over FY14 All product categories contributed
Slide 5: FY15 Business Highlights
FY15 Business Highlights Markets North America Dynamics Revenue growth of 14% BRP retail sales for Seasonal Products and Year-Round Products were up 8% in aggregate for the twelve-month period ended January 31, 2015 vs the same period last year Network inventory[1] was up 15% vs the end of FY1
Slide 6: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Increase in Year-Round Products revenues driven by: 53% Initial shipments of new products recently introduced Shift of Off-Road vehicles deliveries from Q3 to Q4 $416.0 to better align wholesale shipments with retail demand $272.5 Off-R
Slide 7: New Juarez II Off-Road Manufacturing Plant Project Update
New Juarez II Off-Road Manufacturing Plant Project Update $55M investment New 400,000-ft2 Off-road vehicle plant in Juarez, Mexico Broke ground in November 2014 Close proximity to existing Juarez plant allowing for operational synergies with suppliers, talent pool and potential in-sourcing o
Slide 8: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Decrease in Seasonal Products revenues driven by lower snowmobile shipments to Russia and 4% Scandinavia $406.4 $391.6 Snowmobiles Weaker snow coverage in Western North America, Scandinavia and Russia FY14 Q4 FY15 Q4 North American snowmo
Slide 9: MY16 Snowmobile News
MY16 Snowmobile News Ski-Doo Grand Touring SE 1200 4-TEC Ski-Doo MXZ Blizzard Ski-Doo Renegade Enduro Expansion of iTC (Intelligent Throttle Control) to the First in-season MXZ model with 129 inch track providing Inspired by adventure motorcycles, and equipped to be ridden Rotax 1200 4-TEC series en
Slide 10: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions 44% increase in Propulsion Systems revenues driven by the first deliveries of the new Evinrude 44% E-TEC G2 engines $108.7 Outboard Engines $75.3 Seven months into the 2015 season, industry retail was up mid-single digits % FY14 Q4 FY15 Q4
Slide 11: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Parts, Accessories and Clothing 2% Growth primarily driven by favourable foreign exchange rate variations, offset by lower sales of snowmobile parts and accessories in Russia and Scandinavia $148.7 $151.8 FY14 Q4 FY15 Q4 MY16
Slide 12: North America Powersports Dealer Network Optimization Update
North America Powersports Dealer Network Optimization Update FY15 Results Targets SSV and Spyder network # of new dealers # of new dealers to sign # of new dealers signed coverage improvement to sign in FY16 by the end of FY17 [1] [2] 76 +10% 75-85 200-300 [1] FY15 target was 65 to 75 new dealers [2
Slide 13: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FOURTH QUARTER AND FISCAL YEAR ENDED JANUARY 31, 2015 BRP Inc. - FY15 Q4 13
Slide 14: FY15 Q4 - Financial Highlights
FY15 Q4 - Financial Highlights Q4 comparison 12-month comparison CA$ millions FY15 FY14 Change FY15 FY14 Change 1 Total Revenues $1,068.1 $902.9 $165.2 $3,524.7 $3,194.1 $330.6 Growth +18.3% +10.4% Gross Profit $289.7 $223.2 $66.5 $845.6 $807.7 $37.9 As a % of revenues 27.1% 24.7% 24.0% 25.3% Operat
Slide 15: FY15 Q4 - Revenues by Product Category and Geography
FY15 Q4 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 18% 18% $1,068.1 $1,068.1 $151.8 +2% $902.9 PAC $902.9 $319.2 -6% $108.7 +44% $148.7 International Propulsion Systems $340.9 $75.3 $186.0 -3% $391.6 -4% Seasonal Canada P
Slide 16: Quarterly Normalized Net Income Bridge
Quarterly Normalized Net Income Bridge CA$ millions 1 14 (21) 20 (4) 59 117 48 FY14 Q4 Volume, Mix, Production Net Financing Normalized Depreciation Foreign FY15 Q4 Pricing and Costs and Costs Income Tax Exchange Sales Programs Operating Expense Expenses Normalized Net Income increased 141% compared
Slide 17: FY15 Q4 - Financial Position and Liquidity Profile
FY15 Q4 - Financial Position and Liquidity Profile As at Jan. 31 As at Jan. 31 CA$ millions 2015 2014 Change Cash $232.0 $75.4 $156.6 Working capital 291.8 155.6 136.2 Revolving credit facilities - 10.5 (10.5) Long-term debt[1] 1,035.5 889.9 145.6 12-month comparison CA$ millions FY15 FY14 Change Ca
Slide 18: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory North American Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY15 Q4 up 15% from FY14 Q4 level Year-Round Products Inventory slightly up – Mostly driven by the introduction of the Can-Am Maverick Xds, the Can-Am S
Slide 19: FY16 Full-Year Guidance - as at March 27, 2015
FY16 Full-Year Guidance - as at March 27, 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 inc
Slide 20: FY16 Effective Tax Rate Guidance Range
Guidance – Effective Tax Rate[1] Impact Historical EffectiveTax Rate[1] FY15 effective tax rate[1] was 27%-29% impacted by a retroactive tax enactment as well as a 24% 25% favourable country mix 22% 22% FY16 effective tax rate[1] is expected increase to 27%-29% due unfavourable country mix FY12
Slide 21: FY16 Guidance - Back Half Loaded Profitability
FY16 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 FY12 FY13 FY14 FY15 FY16 100% 50% 50% 100% Elements Impacting FY16H1 vs. FY15H1 Elements Impacting FY16H2 vs. FY15H2 Ex
Slide 22: Currency Exposure and Hedging
Currency Exposure and Hedging FY14 to FY15 rate FY15 to March 2015 FY16 expected gross Net exposure (Local Currency) variation[1] spot rate variation[2] profit margin impact Short Long USD (50M) +7% +15% EUR (100M) +6% -8% [3] AUD 50M +1% -2% BRL 100M -1% -16% [3] SEK 525M -% -8% [3] NOK 300M -1% -1
Slide 23: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX© SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER AND FISCAL YEAR ENDED JANUARY 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY15 Q4 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 23 logo are trademarks of Bombardier Recrea
Slide 24: Q&A Period
Q&A PERIOD SKI-DOO © LYNX© SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER AND FISCAL YEAR ENDED JANUARY 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY15 Q4 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 24 logo are trademarks of Bombardier Recreationa
Slide 25: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Recreational Roadsters Side-by-Side Vehicles Seasonal Products Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY15
Slide 26: Appendix
APPENDIX SKI-DOO © LYNX© SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER AND FISCAL YEAR ENDED JANUARY 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY15 Q4 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 26 logo are trademarks of Bombardier Recreational
Slide 27: Reconciliation Tables
Reconciliation Tables Three-month periods ended Twelve-month periods ended CA$ millions Jan. 31, 2015 Jan. 31, 2014 Jan. 31, 2015 Jan. 31, 2014 Net Income (Loss) $8.5 ($6.3) $70.1 1 $59.7 Normalized elements: Foreign exchange loss on long-term debt 111.5 52.9 123.9 96.4 Increase in fair value of com
Slide 28: BRP Inc. - FY15 Q4
Ski-Doo" Lynx" Sea-Doo" ne Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE ala