Slide 1: BRP Inc. Fiscal 2014 Q2 Update
BRP Inc. Fiscal 2014 Q2 Update September 12, 2013 BRP Inc. - FY14 Q2 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 Q2 Update José Boisjoli PRESIDENT & CEO BRP Inc. - FY14 Q2 3
Slide 4: FY14 Q2 Revenues and Net Income
FY14 Q2 Revenues and Net Income Q2 Revenues* (CA$M) Q2 Normalized Net Income (CA$M) $608.1 +7% Sport Boat -58% $620.9 $18.2 $583.1 $7.6 FY13 Q2 FY14 Q2 FY13 Q2 FY14 Q2 Overall financial results in line with our expectations 7% growth in comparable Q2 revenues, driven by Year-Round Products, up 8
Slide 5: FY14 Q2 Business Highlights
FY14 Q2 Business Highlights Markets: BRP N.A. retail sales of Seasonal Products and Year-Round Products up 16% in the aggregate for the three-month period ended July 31, 2013 Despite unfavourable weather, Q2 N.A. retail sales of Seasonal Products were up mid- single digits Ended Model Year 1
Slide 6: Four new international design awards in Q2
Four new international design awards in Q2 One reddot Design Award from the German Design Zentrum Ski-Doo Summit Snowmobile Three Australia International Design Awards from Good Design Australia Sea-Doo RXP-X Can-Am Spyder RT Can-Am Outlander BRP Inc. - FY14 Q2 66
Slide 7: Q2 Revenues by Product Category and Geography
Q2 Revenues by Product Category and Geography Revenues by Product Category (CA$M) Revenues by Geography (CA$M) +7% Excl. Sport Boat +7% Excl. Sport Boat Incl. Excl. Sport Boat $608.1 +2% $620.9 $608.1 +2% $620.9 $106.3 PAC $116.3 +9% $200.7 International $221.3 +10% +14% Propulsion $88.5 $85.9 -3% S
Slide 8: 6-Month Revenues by Product Category and Geography
6-Month Revenues by Product Category and Geography Revenues by Product Category (CA$M) Revenues by Geography (CA$M) +10% Excl. Sport Boat +10% Excl. Sport Boat Incl. Excl. Sport Boat +4% $1,425.2 +4% $1,425.2 $1,370.8 $1,370.8 PAC $216.3 +6% $204.6 International $467.7 +9% +13% Propulsion $428.2 $17
Slide 9: New Xiamen BRP Centre in China
New Xiamen BRP Centre in China Xiamen BRP Centre Opening The opening ceremony of BRP’s largest Chinese dealership was held on August 1st The modern 1,000 m2 facility will carry both Sea-Doo and Can-Am products Currently 15 dealers in China and growing BRP Inc. - FY14 Q2 9
Slide 10: Seasonal Products Q2 Highlights
Seasonal Products Q2 Highlights BRP Revenues* (CA$M) Industry & Competitive Dynamics +7% PWC Season-to-date N.A. industry down low-single digits, vs a high-single digit gain in the previous season Season started well during the boat show period, $131.1 $140.6 but late spring weather impacted r
Slide 11: Year-Round Products Q2 Highlights
Year-Round Products Q2 Highlights BRP Revenues (CA$M) Industry & Competitive Dynamics +8% Off-Road Vehicles Season ended June 30, 2013 N.A. ATV industry down low-single digits BRP ATV market share up slightly both in Canada $278.1 and the U.S. $257.2 U.S. SSV industry grew mid-double digit
Slide 12: Building a growing community of Spyder riders worldwide with SpyderFest events
Building a growing community of Spyder riders worldwide with SpyderFest events Magog, QC France, May 10-11 Loire Region 116 participants United States, June 13-14 Maggie Valley, N.C. 1,300 participants vs 750 last year (+70%) Loire Region, France Maggie Valley, N.C. Canada, July 11-14 Mago
Slide 13: Propulsion Systems Q2 Highlights
Propulsion Systems Q2 Highlights BRP Revenues (CA$M) Industry & Competitive Dynamics -3% Outboard Engines N.A. industry season ended June 30, 2013 with industry retail up mid-single digits BRP retail sales were flat Three new outboard models introduced in June $88.5 $85.9 for the fastest gro
Slide 14: PAC Q2 Highlights
PAC Q2 Highlights PAC Revenues (CA$M) PAC Highlights 11% growth in PAC revenues +9% $116.3 Over 50% growth in ORV Parts & Accessories $106.3 sales $11.1 $11.5 Other A strong accessory line-up for the Maverick was launched simultaneously with the vehicle PAC $105.2 +11% line-up $94.8 FY13 Q2 FY
Slide 15: Our Priorities
Our Priorities Continue to grow our revenues from Year-Round Products Continue expansion of our Worldwide dealer network Ramp-up PWC production capacity in Queretaro, Mexico Continue product innovation Club BRP, Orlando - Key event for worldwide dealers, distributors and dealer prospects
Slide 16: Claude Ferland, Chief Financial Officer
BRP Inc. Fiscal 2014 Q2 Update Claude Ferland CHIEF FINANCIAL OFFICER BRP Inc. - FY14 Q2 16
Slide 17: Q2 is typically BRP's lowest quarter in terms of revenues for seasonal products
Q2 is typically BRP’s lowest quarter in terms of revenues for seasonal products Q2 coincides with the off-season for snowmobiles and the retail peak for PWCs In these two businesses with a short retail window, BRP shipments to dealers generally peak 2 months ahead of the busiest retail period
Slide 18: FY14 Q2 – Financial Highlights
FY14 Q2 – Financial Highlights Q2 comparison First 6 months comparison CA$M FY14 FY13 Change FY14 FY13 Change Revenues by Category 1 2 Seasonal Products $140.6 $156.1 ($15.5) $347.3 $409.7 ($62.4) Year-Round Products 278.1 257.2 20.9 682.8 574.9 107.9 Propulsion Systems 85.9 88.5 (2.6) 178.8 181.6 (
Slide 19: Bridge from FY14 Q2 EBITDA to FY14 Q2 Normalized Net Income
Bridge from FY14 Q2 EBITDA to FY14 Q2 Normalized Net Income CA$M $11.0 $0.3 $22.3 $58.1 $47.4 $15.0 $2.5 $7.6 FY14 Q2 EBITDA Gain from Insurance Unusual Non-rec FY14 Norm Q2 EBITDA Depreciation Depreciation FinNet cost Income Inc tax adj FY14NQ2 Norm Inc EBITDA insurance and non- Normalized expense
Slide 20: Bridge from FY13 First Six Months to FY14 First Six Months Normalized Net Income
Bridge from FY13 First Six Months to FY14 First Six Months Normalized Net Income CA$M $16.8 $22.1 $25.4 $2.2 $11.1 $67.8 $61.0 FY13 Q2 FY13 Volume VMP & Pricing Prod costs Production Opex Foreign FX Net Others FY14 Q2 FY14 Normalized Mix & Sales costs & Exchange financing Normalized Net Income Progr
Slide 21: FY14 Q2 – Balance Sheet and Liquidity Profile
FY14 Q2 – Balance Sheet and Liquidity Profile As of July 31 As of Jan. 31 CA$M 2013 2013 Change Cash $29.7 $542.4 ($512.7) Net working capital 135.2 (26.7) 161.9 Revolving Facilities 110.0 - 110.0 Long term debt* 820.0 1,054.6 (234.6) * BRP repaid US$258M of its Term Facility following the May IPO F
Slide 22: BRP North America Powersports Dealer Inventory
BRP North America Powersports Dealer Inventory Dealer inventory up 7% from FY13 Q2, mostly caused by first deliveries of the Maverick The majority of this increase was due to deliveries of the Maverick, which expands the BRP SSV line-up into a new segment Other factors were the slower retail o
Slide 23: FY14 Full-Year Guidance
FY14 Full-Year Guidance Financial Metric FY14 Guidance vs FY13 Revenues Seasonal Products 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 E
Slide 24: Q&A Period
BRP Inc. Fiscal 2014 Q2 Update Q&A Period BRP Inc. - FY14 Q2 24
Slide 25: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Seasonal Products Snowmobiles Personal Watercraft Year-Round Products Recreational Roadsters All-Terrain Vehicles Side-by-Side Vehicles Propulsion Systems Outboard Engines OEM Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY14
Slide 26: Closing Remarks
BRP Inc. Fiscal 2014 Q2 Update Closing Remarks BRP Inc. - FY14 Q2 26
Slide 27: BRP Inc. - FY14 Q2
BRP Inc. - FY14 Q2 27