Slide 1: Quarterly Review: Second Quarter Ended July 31, 2022
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain statements included in this presentation, including, but not limited to those relating to our Fiscal Year 2023 financial guidance (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per share
Slide 3: José Boisjoli, President and CEO - Quarterly Review
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20222018 QUARTERLY REVIEW Second Quarter Ended July 31, 2022
Slide 4: FY23 Q2 Financial Highlights
FY23 Q2 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ +28% +20% +2% $2,439 $2.94 $2.94 $2.89 $1,904 $2.46 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 Highlights vs. Last Year ◼ Delivered a record quarter in terms of revenue
Slide 5: FY23 Q2 Powersports Retail Update
FY23 Q2 Powersports Retail Update Powersports Retail Growth by Region[1] North American Powersports Retail Growth by Product Line FY23 Q2 retail sales in units compared to FY22 Q2 FY23 Q2 retail sales in units compared to FY22 Q2 BRP VS. BRP VS. INDUSTRY INDUSTRY INDUSTRY INDUSTRY NORTH AMERICA TOTA
Slide 6: Continuing to Experience Strong Consumer Demand
Continuing to Experience Strong Consumer Demand Improved unit availability at the end of Q2 resulted Many signs pointing to sustained strong in solid retail momentum so far in Q3 level of consumer interest in Powersports Strong BRP North American Powersports retail so far in Q3, up over 20% vs the s
Slide 7: Supply Chain Update
Supply Chain Update Supply chain environment improved throughout the second quarter and is trending in-line with our expectations for H2 KEY SUPPLY CHAIN DRIVERS TREND VS H1 SEMICONDUCTOR Improving Global demand continues to outpace supply of semiconductors; however, reception of components as Expec
Slide 8: BRP Club 2023 Highlights
BRP Club 2023 Highlights CAN-AM ORIGIN AND PULSE First Club combining both our Powersports and Marine dealers Over 5,300 Participants both in-person and virtual Official introduction planned for 2024 MY23 CAN-AM MAVERICK X3 MY23 CAN-AM YOUTH MY23 CAN-AM SPYDER MY23 SEA-DOO DS TURBO ATV LINE-UP PLATI
Slide 9: BRP Club 2023 Highlights – New boat lineups featuring the Rotax Stealth Engine Technology
BRP Club 2023 Highlights – New boat lineups featuring the Rotax Stealth Engine Technology Redefining boating with a revolutionary design and an unparallel on-board experience ▪ Disruptive design ▪ Groundbreaking stern layout ▪ Refined ergonomics and comfort ▪ Easy customization ▪ Game changing ▪ Com
Slide 10: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues up 42% + ◼ Higher volume and favourable mix of SSV and 3WV sold +42% + ◼ Favourable impact from pricing + Favourable Fx variation Q2 Retail Sales Update $1,358.1 SIDE-BY-SIDE ALL-TERRAIN THREE-WHEELED $955.6 North Am
Slide 11: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues up 20% + ◼ Introduction of the Sea-Doo pontoon + Favourable pricing and product mix of PWC +20% ◼ Unfavourable Fx variation Q2 Retail Sales Update $691.2 PERSONAL $574.5 North American WATERCRAFT SNOWMOBILES year-over-ye
Slide 12: Powersports PA&A and OEM Engines
Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues up 4% + ◼ Favourable pricing +4% ◼ Lower volume of PA&A due to the timing of PWC shipments ◼ Parts: Revenues about flat with continued positive trends driven by the growing number of units i
Slide 13: Marine
Marine Highlights Revenues CA$ millions Marine | Revenues up 5% + ◼ Favourable product mix of boats + Favourable pricing +5% ◼ Lower volume of boats sold due to supply chain disruptions Q2 Retail Sales Update $125.1 $131.9 Local market year-over-year retail growth FY22 Q2 FY23 Q2 Quarterly BRP LOW 2
Slide 14: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20222018 QUARTERLY REVIEW Second Quarter Ended July 31, 2022
Slide 15: FY23 Q2 Financial Overview
FY23 Q2 Financial Overview Financial Highlights Q2 Net Income Bridge Q2 Comparison 6-month Comparison CA$ millions FY23 FY22 Change FY23 FY22 Change (186) 241 (8) 37 Total Revenues $2,438.5 $1,903.8 $534.7 $4,247.8 $3,712.4 $535.4 (60) Growth +28.1% +14.4% 213 238 Gross Profit $602.7 $570.1 $32.6 $1
Slide 16: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory FY23 Q2: Inventory Position Overview Dealer Inventory Year-over-Year Bridge Units, Excluding Boats and Sea-Doo Pontoons DEALER INVENTORY North America Powersports excluding Sea-Doo Pontoons, Units +134% -44% +134% FY22 Q2 SSV ATV 3WV Snowmobile PWC FY2
Slide 17: FY23 Full-Year Guidance - as at September 14, 2022
FY23 Full-Year Guidance - as at September 14, 2022 Financial Metric FY22[4] FY23 Guidance[3] vs FY22 Revenues vs. Previous Guidance Year-Round Products $3,467.5 Up 33% to 38% (previously “Up 30% to 35%”) Seasonal Products 2,524.1 Up 24% to 29% (previously “Up 22% to 27%”) Powersports PA&A and OEM En
Slide 18: FY23 Guidance: H2 vs H1 Overview
FY23 Guidance[1]: H2 vs H1 Overview Expecting strong revenues and Normalized EBITDA[2] Key drivers of the expected growth in H2 compared to H1 strong growth in H2 REVENUES NORMALIZED EBITDA[2] Supply chain improving in-line with our expectations $CA millions $CA millions ▪ Expected to support increa
Slide 19: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20222018 QUARTERLY REVIEW Second Quarter Ended July 31, 2022
Slide 20: Significant runway in current industries for long-term growth
We have significant runway in our current industries and are well-positioned to continue delivering long-term growth Market share and white space White space opportunities with our Additional markets opportunities in current industries planned entry in the motorcycle industry currently under explora
Slide 21: Three Key Acquisitions to Support our Long-term Ambitions
Three Key Acquisitions to Support our Long-term Ambitions Additional markets Great Wall Motor Pinion GmbH Kongsberg Canadian currently under exploration Austria Powersports Operations Other new markets Acquisitions to support our entry Background Background Background in new markets Acquired a team
Slide 22: Closing Remarks
Closing Remarks WELL-POSITIONED TO DELIVER SOLID RESULTS IN FY23 Focused on delivering our production plan for the year to meet dealer orders and achieving our increased financial year-end guidance with Normalized Diluted EPS[1] expected to reach between $11.30 and $11.65 CONSUMER DEMAND NOT SLOWING
Slide 23: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20222018 QUARTERLY REVIEW Second Quarter Ended July 31, 2022
Slide 24: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER SECOND QUARTER ENDED ENDED JULY JULY 31, 31, 20222018 QUARTERLY REVIEW Second Quarter Ended July 31, 2022
Slide 25: Reconciliation Tables
Reconciliation Tables 3-month periods ended 6-month periods ended CA$ millions Jul. 31, 2022 Jul. 31, 2021 Jul. 31, 2022 Jul. 31, 2021 Net Income/(Loss) $237.7 $212.9 $358.7 $457.3 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and Lease Liabilities (0.1) 27.3 16.0 (51.3) (Gain)
Slide 26: Reconciliation Tables
Reconciliation Tables 3-month periods ended 6-month periods ended CA$ millions Jul. 31, 2022 Jul. 31, 2021 Jul. 31, 2022 Jul. 31, 2021 Net Cash Flows Generated from/(Used in) Operating Activities $332.1 $162.0 ($1.0) $326.9 Additions to Property, Plant and Equipment (99.6) (122.9) (192.2) (208.4) Ad
Slide 27: Appendix - Continued
Appendix - Continued Non-IFRS Measures Normalized revenues is defined as revenues before normalized elements. Normalized gross profit is defined as gross profit before normalized elements. Normalized EBITDA is defined as net income before financing costs, financing income, income tax expense (recove
Slide 28: Ski-Doo
us Ski-Doo Lynx Sea-Doo Can-Am Rotax Alumacraft Manitou FT) ADVENTURE BY DESIGN Quintrex