Brp, Inc. · TSX:DOO
Brp — Q3 FY2014 Earnings Presentation
28 slides from Brp's earnings presentation, Dec 12, 2013
Slide 1: BRP Inc. Fiscal 2014 Q3 Update
BRP Inc. Fiscal 2014 Q3 Update December 12, 2013 BRP Inc. - FY14 Q3 1
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 & CEO
BRP Inc. Fiscal 2014 Q3 Update José Boisjoli PRESIDENT & CEO BRP Inc. - FY14 Q3 3
Slide 4: FY14 Q3 Revenues and Net Income
FY14 Q3 Revenues and Net Income Q3 Revenues (CA$M) Q3 Normalized Net Income (CA$M) +18% +39% $866.0 $59.0 $42.4 $733.9 FY13 Q3 FY14 Q3 FY13 Q3 FY14 Q3 Record quarterly revenues 18% growth in Q3 revenues, driven by Seasonal Products, up 38% International revenues up 17% Gross profit margin pe
Slide 5: FY14 Q3 Business Highlights
FY14 Q3 Business Highlights North American Markets: BRP N.A. retail sales of Seasonal Products and Year-Round Products up 13% in the aggregate for the three-month period ended October 31, 2013 Model Year 13 PWC and Roadster end-of-season update: PWC market share gains for a fourth consecutiv
Slide 6: Strategic Initiatives Update
Strategic Initiatives Update Continue Focus on Product Innovation Grow Revenues from Year-Round Products Expand North American Dealer Network Grow International Product Sales Drive Margin Increases BRP Inc. - FY14 Q3 66
Slide 7: Continue Focus on Product Innovation – Club BRP Product Launches
Strategic Initiatives Update Continue Focus on Product Innovation – Club BRP Product Launches Spark Spyder RT Entry-level to “re-spark” the industry New Rotax 1330 ACE engine Maverick 1000 X mr Commander MAX Outlander 6x6 “Mud-ready” Maverick Four-seat Commander Six-wheel Outlander BRP Inc. - FY14 Q
Slide 8: Continue Focus on Product Innovation - Sea-Doo Spark
Strategic Initiatives Update Continue Focus on Product Innovation - Sea-Doo Spark MSRP starting at US$4,999 or $79 per month with $0 cash down1 2 units + trailer + PAC starter kit More than 35% lower than the next lowest-priced for US$169 per month2 PWC on the market Expanding the market for a
Slide 9: Grow Revenues from Year-Round Products
Strategic Initiatives Update Grow Revenues from Year-Round Products 9-Month Revenues (CA$M) Year-Round Products growth +13% $932.4 primarily driven by SSV SSV revenues up 35% year-to-date $822.3 8 new SSV models introduced for MY14 New engine for MY14 Spyder RT Good momentum in ATV despite
Slide 10: Grow Revenues from Year-Round Products - SSV MY14
Strategic Initiatives Update Grow Revenues from Year-Round Products - SSV MY14 MY14 Intro Can-Am SSVs come in multiple configurations 800 800 DPS 800 XT 2 platforms Commander 2 engines 2-seat or 4-seat configurations 1000 1000 DPS 1000 XT 1000 XT-P 1000 LTD 10 different packages 1000 MAX DPS
Slide 11: Expand North American Dealer Network
Strategic Initiatives Update Expand North American Dealer Network U.S. Market Expand dealer network in select regions U.S. FY2014 : 35-40 new dealers Next 4 years : 200-300 new dealers Key target markets for BRP Year-Round Products Dealer network expansion is on plan BRP Inc. - FY14 Q3 1111
Slide 12: Grow International Product Sales
Strategic Initiatives Update Grow International Product Sales 9-Month Revenues (CA$M) Increasing popularity of SSV across +15% Excl. Sport Boat international markets +12% $773.7 Spyder launched in Japan with $689.6 shipments starting in Q4 Strong reception for the Outlander 6x6 in Russia and S
Slide 13: Drive Margin Increases – Querétaro Plant Update
Strategic Initiatives Update Drive Margin Increases – Querétaro Plant Update Manufacturing of Off-road engines and transmissions in full operation PWC manufacturing ramping up Sea-Doo Spark in production – Querétaro facility allowed for the significant vehicle cost reduction required to launch
Slide 14: Seasonal Products Q3 Highlights
Seasonal Products Q3 Highlights BRP Revenues (CA$M) Industry & Competitive Dynamics +38% Snowmobile Dealer orders for MY14 were higher than for MY13 due to strong end-of-season in MY13 and positive reception to MY14 line-up Incremental MY14 orders were mostly shipped $382.5 in Q3 $276.2 Earl
Slide 15: Year-Round Products Q3 Highlights
Year-Round Products Q3 Highlights BRP Revenues (CA$M) Industry & Competitive Dynamics +1% Off-Road Vehicles Very strong quarter for SSV, with revenues up approximately 38% due to line-up expansion and market share gains worldwide ATV revenues down approximately 20% primarily $247.4 $249.6 due
Slide 16: Propulsion Systems and PAC Q3 Highlights
Propulsion Systems and PAC Q3 Highlights Propulsion Systems Revenues (CA$M) PAC Revenues (CA$M) +12% $144.3 +9% $128.3 $13.0 $12.4 Other $82.0 $89.6 $131.3 +13% $115.9 PAC FY13 Q3 FY14 Q3 FY13 Q3 FY14 Q3 Outboard Engines Parts, Accessories and Clothing N.A. industry retail up high double digit
Slide 17: Claude Ferland, Chief Financial Officer
BRP Inc. Fiscal 2014 Q3 Update Claude Ferland CHIEF FINANCIAL OFFICER BRP Inc. - FY14 Q3 17
Slide 18: FY14 Q3 – Financial Highlights
FY14 Q3 – Financial Highlights Q3 comparison First 9 months comparison CA$M FY14 FY13 Change FY14 FY13 Change Revenues by Category 1 Seasonal Products $382.5 $276.2 $106.3 $729.8 $685.9 $43.9 Year-Round Products 249.6 247.4 2.2 932.4 822.3 110.1 Propulsion Systems 89.6 82.0 7.6 268.4 263.6 4.8 PAC 1
Slide 19: Q3 Revenues by Product Category and Geography
Q3 Revenues by Product Category and Geography Revenues by Product Category (CA$M) Revenues by Geography (CA$M) +18% $866.0 +18% $866.0 $144.3 +12% $733.9 $733.9 $306.0 +17% $128.3 PAC $89.6 +9% $261.4 International $82.0 Propulsion Systems $249.6 +1% $217.5 +5% Year-Round $247.4 Products $207.0 Cana
Slide 20: 9-Month Revenues by Product Category and Geography
9-Month Revenues by Product Category and Geography Revenues by Product Category (CA$M) Revenues by Geography (CA$M) +13% Excl. Sport Boat +13% Excl. Sport Boat Incl. Excl. +9% $2,291.2 +9% $2,291.2 Sport Boat $2,104.7 $2,104.7 $360.6 +8% $332.9 PAC $773.7 +12% +15% $268.4 +2% $689.6 International Pr
Slide 21: Bridge from FY13 to FY14 First Nine Months Normalized Net Income
Bridge from FY13 First Nine Months to FY14 First Nine Months Normalized Net Income CA$M ($22.5) $64.0 ($38.7) ($13.8) $20.8 $120.0 $110.2 FY13 Q3 FY13 Volume VMP & Pricing Prod costs Production Opex Foreign FX Net Others FY14 FY14Q3 Normalized Mix & Sales costs & Exchange financing Normalized Net In
Slide 22: FY14 Q3 – Financial Position and Liquidity Profile
FY14 Q3 – Financial Position and Liquidity Profile As of Oct. 31 As of Jan. 31 CA$M 2013 2013 Change Cash $6.6 $542.4 ($535.8) Net working capital 174.1 (26.7) 200.8 Revolving Credit Facilities 59.9 - 59.9 Long term debt* 834.0 1,054.6 (220.6) * BRP repaid US$258M of its Term Facility following the
Slide 23: BRP North America Powersports Dealer Inventory
BRP North America Powersports Dealer Inventory North America Network Inventory (units) Excluding Sport Boat and Outboard Engines Dealer inventory ended Q3 up 7% from FY13 Q3 Mostly driven by the addition of the 2- FY14 seat and 4-seat Maverick models to FY13 our SSV line-up FY12 Slightly impac
Slide 24: FY14 Full-Year Guidance
FY14 Full-Year Guidance Financial Metric FY14 Guidance vs FY13 Revenues Seasonal Products1 Flat to up low-single digits Year-Round Products Up high-double digits % Propulsion Systems Up mid to high-single digits % PAC Up high-single digits % Total Company Revenues Up high-single digits % Normalized
Slide 25: Q&A Period
BRP Inc. Fiscal 2014 Q3 Update Q&A Period BRP Inc. - FY14 Q3 25
Slide 26: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Seasonal Products Snowmobiles Personal Watercraft Year-Round Products All-Terrain Vehicles Recreational Roadsters Side-by-Side Vehicles Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY14
Slide 27: Closing Remarks
BRP Inc. Fiscal 2014 Q3 Update Closing Remarks BRP Inc. - FY14 Q3 27
Slide 28: BRP Inc. - FY14 Q3
BRP Inc. - FY14 Q3 28