Brp, Inc. · TSX:DOO
Brp — Q3 FY2019 Earnings Presentation
26 slides from Brp's earnings presentation, Nov 30, 2018
Slide 1: Quarterly Review Third Quarter Ended October 31, 2018
QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain information included in this presentation, including, but not limited to, statements relating to our Fiscal Year 2019 financial outlook (including revenues, gross profit margin, operating expenses, Normalized EBITDA, Ef
Slide 3: José Boisjoli, President and Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2018 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2018
Slide 4: FY19 Q3 Revenues, EPS and Normalized EPS
FY19 Q3 Revenues, EPS and Normalized EPS Revenues Earnings per Share Normalized Earnings per Share[2] CA$ millions CA$ CA$ +14% +37% +5% $1,394 $1,227 $0.92 $0.99 $1.04 $0.67 [1] [1] [1] FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 Highlights vs. Last Year Increase of 14% in revenues mainly dri
Slide 5: FY19 Q3: Strong Retail Results in North America
FY19 Q3: Strong Retail Results in North America… North American Powersports Retail Growth by Product Line FY19 Q3 compared to FY18 Q3 BRP VS. GROWTH DECLINE BRP INDUSTRY INDUSTRY LOW-SINGLE TOTAL POWERSPORTS 6% DIGIT % LOW-SINGLE POWERSPORTS EXCL. SNOWMOBILES 16% DIGIT % MID- MID-SINGLE SIDE-BY-SIDE
Slide 6: … And Around the World
… And Around the World BRP INDUSTRY[2] NORTH AMERICA 6% LOW-SINGLE DIGIT % NORTH AMERICA EXCL. SNOWMOBILES 16% LOW-SINGLE DIGIT % LATIN AMERICA 11% NOT AVAILABLE EMEA[1] 3% HIGH-SINGLE DIGIT % ASIA-PACIFIC 14% MID- TEEN % [1]Three-month period from July to September 2018 [2]Industry includes Three-W
Slide 7: Constantly Outpacing the Industry for the last 3 Years
Constantly Outpacing the Industry for the last 3 Years North American Powersports Retail Sales Growth BRP Industry Units, Year-over-year growth FY17 FY18 FY19 YTD 11% 12% 5% MID-SINGLE DIGIT % LOW-SINGLE DIGIT % LOW-SINGLE DIGIT % Outpacing the industry through relentless focus on excellence and inn
Slide 8: Unlocking the Full Potential of Three-Wheeled Vehicles
Unlocking the Full Potential of Three-Wheeled Vehicles ▪ Entry-level 3WV with an MSRP starting at US$8,499 Introduced an ▪ New business model: 3 SKUs with over 75,000 ways to customize at entry-level 3WV, MSRP STARTING AT the dealership the Can-Am US$8,499, ▪ Opens doors to a new demographic: addres
Slide 9: Can-Am Ryker: Off to a Great Start
Can-Am Ryker: Off to a Great Start Well Received by the Media Well Received by the Dealers Already in Production “ Ryker is sexy, cool, fast, and very fun to ride ” “ An Affordable Three-Wheeler; It’s About Time” “ This is a trike that’s brilliant fun and is set to break the trend barrier ” Generate
Slide 10: BRP Club 2019 Highlights: Key Introductions
BRP Club 2019 Highlights: Key Introductions “A new SSV model every six months until 2020” - Intro #7 700 million anglers participating in recreational fishing CAN-AM MAVERICK SPORT MAX SEA-DOO FISH PRO 155 CAN-AM MAVERICK SPORT X RC CAN-AM DEFENDER MAX X MR BRP AUDIO PORTABLE LINQ ACCESSORIES FOR SP
Slide 11: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products revenues up 21% Mainly driven by a higher volume of SSV sold and a favourable foreign exchange +21% rate variation, partially offset by an unfavourable product mix of SSV sold Side-by-Side Vehicles (SSV) Four months into th
Slide 12: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products revenues up 3% Mainly driven by a higher volume and of PWC sold and from a favourable foreign +3% exchange rate variation, partially offset by an unfavourable product mix of snowmobiles sold Snowmobile $475.6 $490.9 Early in th
Slide 13: Exceptional 2018 Season in all key Regions for Sea-Doo
WIP Exceptional 2018 Season in all key Regions for Sea-Doo SEASON 2018[1] SEA-DOO RETAIL GROWTH NORTH MID- AMERICA TEEN % LATIN MID- AMERICA TWENTY % MID- EMEA TEEN % ASIA- MID- PACIFIC FIFTY % [1]Twelve-month period ending on September 30, 2018 The new Sea-Doo platform drove strong consumer demand
Slide 14: Powersports PAC and OEM Engines / Marine
Powersports PAC and OEM Engines / Marine Powersports PAC and OEM Engines Highlights Revenues CA$ millions Powersports PAC and OEM Engines revenues up 13% Mainly driven by a higher volume of parts and accessories sold for +13% SSV and PWC Innovation driving revenues growth: 450 new MY19 accessori
Slide 15: Our Marine Strategy: Update
Our Marine Strategy: Update OUR MARINE STRATEGY SHORT-TERM MID-TERM LONG-TERM BUY BUILD TRANSFORM ALUMACRAFT AND MANITOU BOOKING ALUMACRAFT MANITOU ~FLAT ~20% Season 2018 Season 2019 Season 2018 Season 2019 Integration of Alumacraft and Manitou is on plan QUARTERLY REVIEW Third Quarter Ended October
Slide 16: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2018 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2018
Slide 17: FY19 Q3 - Financial Highlights
FY19 Q3 - Financial Highlights Q3 Comparison 9-month Comparison CA$ millions FY19 FY18[1] Change FY19 FY18[1] Change Total Revenues $1,394.2 $1,226.5 $167.7 $3,737.9 $3,226.5 $511.4 Growth +13.7% +15.8% Gross Profit $356.8 $319.9 $36.9 $918.5 $763.0 $155.5 As a % of revenues 25.6% 26.1% 24.6% 23.6%
Slide 18: FY19 Q3 - Net Income and Normalized Net Income Bridge
FY19 Q3 - Net Income and Normalized Net Income[1] Bridge Net Income Bridge Normalized Net Income[1] Bridge 41 (38) (8) 4 41 (39) 22 (8) 4 104 103 90 70 FY18 Q3 Volume, Mix, Production Net Financing Foreign Foreign FY19 Q3 FY18 Q3 Volume, Mix, Production Costs, Net Financing Foreign FY19 Q3 Net Incom
Slide 19: 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 +9% Q1 Q2 Q3 Q4 FY18 Q3 New Can-Am PWC Snowmobile Rest of the FY19 Q3 FY17 FY18 FY19 SSV Models Line-up Highlights De
Slide 20: FY19 Full-Year Guidance - as at November 30, 2018
FY19 Full-Year Guidance - as at November 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 st
Slide 21: 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 $3.50 Create a s
Slide 22: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2018 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2018
Slide 23: Q&A Period
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2018 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2018
Slide 24: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2018 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2018
Slide 25: Reconciliation Tables
Reconciliation Tables Three-month periods ended Nine-month periods ended Year ended CA$ millions Oct. 31, 2018 Oct. 31, 2017 Oct. 31, 2018 Oct. 31, 2017 Jan. 31, 2018 Restated Restated Restated Net Income $90.2 $70.0 $144.6 $169.1 $239.1 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term
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