Slide 1: Quarterly Review - Fourth Quarter Ended January 31, 2017
QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2017
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 ENDED JANUARY 31, 2017 BRP Inc. - FY17 Q4 3
Slide 4: FY17 Revenues and Normalized EPS
FY17 Revenues and Normalized EPS[1] Revenues Normalized EPS - Diluted[1] CA$ millions CA$ 9% 15% $4 171,5 $1,96 $3 829,2 $1,71 FY16 FY17 FY16 FY17 Highlights vs. Year Ago Record revenues and Normalized net income[1] Increase of 9% in revenues primarily driven by higher wholesale in Year-Round Pr
Slide 5: Strategic Priorities Update
Strategic Priorities Update GROWTH AGILITY LEAN ENTERPRISE Accelerate growth Implement a more flexible Relentless pursuit of EPS supply chain to improve improvement through Create a strong pipeline of consumer experience and organizational excellence and new growth opportunities reduce working capit
Slide 6: North America Powersports Dealer Network Optimization Update
North America Powersports Dealer Network Optimization Update FY17 Results 70 NUMBER OF NEW DEALERS SIGNED TARGET: ADD 45 TO 55 Last Four Years Results 289 NUMBER OF NEW DEALERS SIGNED TARGET: ADD 200 TO 300 +33% SSV AND SPYDER NETWORK COVERAGE IMPROVEMENT Significantly improved our network coverage
Slide 7: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Revenue increase of 9%: 9% Mainly driven by a higher volume and favourable product mix of SSV sold following the introduction of the Can-Am Maverick X3 and Defender vehicles $527,3 Partially offset by lower wholesale in Spyder vehicles
Slide 8: Season 2017 Spyder Plan
Season 2017 Spyder Plan Last season, we tested a more grassroots approach in two key U.S. states and we are deploying learnings from these testing grounds to more regions in FY18 DEPLOY REMOVE FOCUS ON THE LEVERAGE SPYDER DEDICATED TEAMS BARRIERS DIGITAL MESSAGE COMMUNITIES Boots on the ground in ke
Slide 9: Lynx 50th Anniversary
Lynx 50th Anniversary MY18 Lynx Boondocker DS 650 dealers celebrated the 50th anniversary of the Lynx brand and witnessed the introduction of the MY18 Lynx line-up BRP Inc. - FY17 Q4 9
Slide 10: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Revenue increase of 37%: 37% Mainly driven by higher volume and favourable mix of snowmobile sold, partially offset by an unfavourable foreign exchange rate variation $489,5 Snowmobile $356,7 Ten months into the 2017 season, North America
Slide 11: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Revenue increase of 13%: 13% Mainly driven by a higher volume of motorcycle engines sold and a favourable mix of outboard engines sold, partially offset by an unfavourable foreign exchange rate variation $99,0 $111,5 Outboard Engines Sev
Slide 12: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Revenue increase of 4%: 4% Mainly attributable to a higher volume of SSV PAC sold following the introduction the Can-Am Maverick X3, and to a higher volume of snowmobile PAC sold, partially offset by an unfavourable foreign $1
Slide 13: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2017 BRP Inc. - FY17 Q4 13
Slide 14: FY17 Q4 - Financial Highlights
FY17 Q4 - Financial Highlights Q4 comparison 12-month comparison CA$ millions FY17 FY16 Change FY17 FY16 Change Total Revenues $1,305.3 $1,108.8 $196.5 $4,171.5 $3,829.2 $342.3 Growth +17.7% +8.9% Gross Profit $335.6 $285.9 $49.7 $1,008.9 $914.2 $94.7 As a % of revenues 25.7% 25.8% 24.2% 23.9% Opera
Slide 15: FY17 Q4 - Revenues by Product Category and Geography
FY17 Q4 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 18% 18% $1 305,3 $1 305,3 $177,0 +4% $1 108,8 $1 108,8 PAC $111,5 +13% $435,1 +16% $170,5 Propulsion International Systems $375,3 $99,0 Seasonal $489,5 +37% $205,7 +42% P
Slide 16: FY17 Q4 - Normalized Net Income Bridge
FY17 Q4 - Normalized Net Income[1] Bridge CA$ millions (14) (7) (25) 71 112 87 FY16 Q4 Volume, Mix, Production Costs Net Financing Foreign Exchange FY17 Q4 Pricing and and Operating Expenses Costs and Rates Sales Programs Normalized Income Tax Expense [1] See “Non-IFRS Measures” section in appendix
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 FY17 Q4 up 13% from FY16 Q4 level Q1 Q2 Q3 Q4 Increase primarily driven by: FY15 FY16 FY17 higher level of snowmobile inventory due to the weak snow conditions, nota
Slide 18: FY18 Full-Year Guidance - as at March 24, 2017
FY18 Full-Year Guidance - as at March 24, 2017 Financial Metric FY18 Guidance vs FY17 Revenues Year-Round Products Up 6% to 10% Seasonal Products Down 4% to Flat Propulsion Systems Flat to up 5% PAC Up 4% to 8% Total Company Revenues Up 2% to 6% Normalized EBITDA[3] Up 7% to 10% Effective Tax Rate[1
Slide 19: FY18 Guidance - Normalized EBITDA by Half Year
FY18 Guidance - Normalized EBITDA[1] by Half Year Normalized EBITDA[1] by Half Year As a percentage of full fiscal year normalized EBITDA[1] First Half Contribution Second Half Contribution FY15 FY16 FY17 FY18 100% 50% 50% 100% Elements Impacting H1 FY18 vs. FY17 Elements Impacting H2 FY18 vs. FY17
Slide 20: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER ENDED JANUARY 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY17 Q4 © 2017 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.
Slide 21: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER ENDED JANUARY 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY17 Q4 © 2017 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 i
Slide 22: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Side-by-Side Vehicles Roadsters Seasonal Products Ski-Doo Snowmobiles Lynx Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP
Slide 23: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER ENDED JANUARY 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY17 Q4 © 2017 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
Slide 24: Reconciliation Tables
Reconciliation Tables Three-month periods ended 12-month periods ended CA$ millions Jan. 31, 2017 Jan. 31, 2016 Jan. 31, 2017 Jan. 31, 2016 Net Income $136.4 ($28.7) $257.0 $51.6 Normalized elements: Foreign exchange (gain) loss on long-term debt (25.3) 77.4 (82.0) 105.8 Restructuring and related co
Slide 25: BRP Inc. - FY17 Q4
Ski-Doo” Lynx" Sea-Doo® BRP Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE 2015 BRP. All rights reserved. / ™ * and the BRP logo are trademarks of BRP or its affiliates.