Slide 1: BRP Inc. Fiscal 2014 Q4
BRP Inc. Fiscal 2014 Q4 March 28, 2014 BRP Inc. - FY14 Q4 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 Q4 José Boisjoli PRESIDENT & CEO BRP Inc. - FY14 Q4 3
Slide 4: FY14 Revenues and Normalized Net Income
FY14 Revenues and Normalized Net Income 12-Month Revenues (CA$M) 12-Month Normalized Net Income (CA$M) +10% +15% $3,194.1 $168.3 $2,896.2 $146.7 FY13 FY14 FY13 FY14 Record revenues, exceeding the $3 billion mark for the first time 10% growth in comparable full-year revenues, driven by 15% revenu
Slide 5: FY14 Full-year Highlights
FY14 Full-year Highlights Main FY14 Introductions Global: Sea-Doo Spark Successful completion of IPO Strong year of product introductions: Sea-Doo Spark PWC Can-Am Maverick and Commander 4-seat SSV Can-Am Spyder RT roadster with new ROTAX 1330 engine Maverick Max ROTAX 900 ACE snowmobi
Slide 6: North American Dealer Network Expansion Update
North American Dealer Network Expansion Update Key target markets for BRP 1 Year-Round Products FY14 FY15 Result Target U.S. Market New Dealers Signed 38 65-75 Improved North American Roadster and SSV dealer coverage by 7% Target remains 200 to 300 new dealers by the end of FY17 BRP Inc. - FY14 Q4 1
Slide 7: Highlights of Design and Innovation Awards
Highlights of Design and Innovation Awards Sea-Doo Spark Sea-Doo RXP-X Can-Am Outlander 2014 Innovation Award 2013 Good Design Award 2013 Good Design Award National Marine Manufacturers Association Australia International Design Award Australia International Design Award Can-Am Spyder RT Ski-Doo Sum
Slide 8: Seasonal Products
Seasonal Products BRP Revenues (CA$M) Business Dynamics Snowmobile North America +10% Very strong snowmobile season, with excellent snow coverage As of January 31, industry and BRP retail up mid-double digits $406.4 Expect FY15 Q1 Ski-Doo retail trend to be lower than industry due to short
Slide 9: North American Snowmobile Season Cycle
North American Snowmobile Season Cycle Season Cycle Season 14 March Dealers orders are taken at the BRP Ski-Doo Retail Season to April Club and adjusted following the results of the Spring program Production Planning and Execution Orders May Production is planned and executed starting The timing and
Slide 10: MY15 Ski-Doo
MY15 Ski-Doo New models introduced MY15 Product News Renegade XRS New Renegade XRS model The most specialised crossover sled Reinforced chassis, wide running boards, and bottomless racing shocks New Response Angle Suspension (RAS2) front suspension Available on 9 models New Summit X - T3 packa
Slide 11: Year-Round Products
Year-Round Products BRP Revenues (CA$M) Business Dynamics Revenue growth driven primarily by new SSV product introductions +22% Off-Road Vehicles SSV season-to-date industry growth low-double digits, Can-Am SSV retail outpacing industry $272.5 ATV season-to-date industry up low-single digits
Slide 12: Propulsion Systems
Propulsion Systems Propulsion Systems Revenues (CA$M) Business Dynamics Outboard Engines Early in the season, N.A. industry retail up mid- teens, driven by growth in the pontoon segment BRP slightly underperformed the industry, +7% resulting in a small market share loss Introduced a fourth e
Slide 13: Parts, Accessories and Clothing
Parts, Accessories and Clothing PAC Revenues (CA$M) Business Dynamics Parts, Accessories and Clothing Growth primarily driven by off-road vehicle and snowmobile +17% Began the transfer of the Sherbrooke (Quebec) PAC distribution and logistics activities to a third-party provider $148.7 $126.9
Slide 14: Claude Ferland, Chief Financial Officer
BRP Inc. Fiscal 2014 Q4 Claude Ferland CHIEF FINANCIAL OFFICER BRP Inc. - FY14 Q4 14
Slide 15: FY14 Q4 – Financial Highlights
FY14 Q4 – Financial Highlights Q4 comparison 12-month comparison CA$M FY14 FY13 Change FY14 FY13 Change 1 Total Revenues $902.9 $791.5 $111.4 $3,194.1 $2,896.2 $297.9 Growth 14.1% 10.3% Gross Profit $223.2 $198.5 $24.7 $807.7 $737.7 $70.0 As a % of revenues 24.7% 25.1% 25.3% 25.5% Operating Income $
Slide 16: FY14 Q4 – Revenues by Product Category and Geography
FY14 Q4 – Revenues by Product Category and Geography Revenues by Product Category (CA$M) Revenues by Geography (CA$M) +14% +14% $902.9 $902.9 $791.5 $148.7 +17% $791.5 PAC $126.9 $75.3 +7% $340.9 +4% Propulsion International $70.2 Systems $327.2 Year-Round $272.5 +22% $223.4 Products $191.3 +20% Can
Slide 17: FY14 Revenues by Product Category and Geography
FY14 Revenues by Product Category and Geography Revenues by Product Category (CA$M) Revenues by Geography (CA$M) +13% Excl. Sport Boat +13% Excl. Sport Boat Incl. Excl. +10% $3,194.1 +10% $3,194.1 Sport Boat $2,896.2 $2,896.2 $509.3 +11% $459.8 PAC $1,114.6 +10% +12% $343.7 International Propulsion
Slide 18: Normalized Net Income Bridge
Normalized Net Income Bridge CA$M ($23.0) $91.2 ($54.0) ($13.8) $26.5 ($5.3) $168.3 $146.7 FY13 FY13 Volume Volume and& Pricing, Mix Pricing Discounts Production and SalesProduction Programs Costs Depreciation Operating Expenses Foreign FX Net Others FY14 FY14 Normalized Mix & Sales costs and Exchan
Slide 19: FY14 Q4 – Financial Position and Liquidity Profile
FY14 Q4 – Financial Position and Liquidity Profile As of Jan. 31 As of Jan. 31 CA$M 2014 2013 Change Cash $75.4 $542.4 ($467.0) Net working capital 97.1 (26.7) 123.8 Revolving credit facilities 10.5 - 10.5 Long term debt* 889.9 1,054.6 (164.7) * BRP repaid US$258M of its Term Facility following the
Slide 20: BRP North America Powersports Dealer Inventory
BRP North America Powersports Dealer Inventory N.A. Dealer Inventory (units) Excluding Sport Boat and Outboard Engines Dealer inventory ended FY14 Q4 up 7% from FY13 Q4 Year-Round Products: FY14 Mostly driven by the addition of FY13 new SSV models FY12 Slightly impacted by higher Roadster Q1
Slide 21: FY15 Full-Year Guidance
FY15 Full-Year Guidance Financial Metric FY15 Guidance vs FY14 Revenues Seasonal Products Up 5% to 10% Year-Round Products Up 12% to 15% Propulsion Systems Up 7% to 10% PAC Up 10% to 15% Total Company Revenues Up 9% to 13% Normalized EBITDA Up 11% to 15% Effective Tax Rate1 26% - 27% Normalized Net
Slide 22: FY15 Q1 Outlook
FY15 Q1 Outlook Expected to be down 5% to 10% Revenues from FY14 Q1 Normalized Expected to be down approximately EBITDA 50% from FY14 Q1 FY15 Q1 results will be impacted by : Planned incremental one-time expenses : transfer of our PAC distribution activities to a third party provider, acceleration
Slide 23: Closing Remarks
BRP Inc. Fiscal 2014 Q4 Closing Remarks © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo BRP Inc. - FY14 Q4 23 are trademarks of Bombardier Recreational Products Inc. or its affiliates.
Slide 24: Q&A Period
BRP Inc. Fiscal 2014 Q4 Q&A Period BRP Inc. - FY14 Q4 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 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 26: BRP Inc. - FY14 Q4
SKI-DOO~ LYNX-SEA-DOO~ EVINRUDE» ROTAXe CAN-AM.