Slide 1: Quarterly Review Second Quarter Ended July 31, 2016
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2016
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 & Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT & CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2016 BRP Inc. - FY17 Q2 3
Slide 4: FY17 Q2 Revenues and Normalized EPS
FY17 Q2 Revenues and Normalized EPS Revenues Normalized EPS - Diluted[1] CA$ millions CA$ 5% $0.02 $856.1 $812.1 $0.03 $0.01 FY16 Q2 FY17 Q2 FY16 Q2 FY17 Q2 Highlights Increase of 5% in revenues primarily driven by higher wholesale in Year-Round Products and favourable foreign exchange rate variat
Slide 5: BRP Club 2017 News
BRP Club 2017 News Sea-Doo Spark Trixx New Sea-Doo GTS/GTI Models Rotax 1500 HO ACE Engine Equipped with numerous innovations which help riders perform The lightest, most fuel-efficient PWC models and offer the Offers more mid-range performance, produces 15 more tricks like a pro greatest value of a
Slide 6: Setting the Standard in Performance SSV with the New Flagship Can-Am Maverick X3
Setting the Standard in Performance SSV with the New Flagship Can-Am Maverick X3 UNPRECENDENT MOMENTUM RIGHT OUT THE GATE TEASER CAMPAIGN GENERATED OVER 1M VIEWS LAUNCHED AT THE CLUB BY AMBASSADORS KEN BLOCK AND BJ BALDWIN WON IT’S FIRST RACE - THE 2016 BEST IN THE DESERT VEGAS TO RENO - DRIVEN BY M
Slide 7: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Revenue increase of 9%: 9% Mainly driven by higher volume of SSV sold following the introduction of the Defender, higher wholesale of ATV and a favourable foreign exchange rate variation; Partially offset by lower wholesale for Spyder $
Slide 8: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Revenue increase of 6%: 6% Mainly driven by higher volume and a favourable mix of PWC sold, and a favourable foreign exchange rate variation; Partially offset by a lower volume mainly attributable to earlier shipments last year and an unf
Slide 9: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Revenue increase of 5%: 5% Mainly driven by a favourable foreign exchange rate variation Outboard Engines $95.4 $99.9 North American outboard engines industry ended season 2016 up mid-single digit % Evinrude retail was down mid-single
Slide 10: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Revenue decrease of 4%: 4% Mainly attributable to a lower volume of snowmobile PAC sold resulting from poor snow conditions in North America last winter and lower volume of Spyder PAC; $154.9 $149.4 Partially offset by a fav
Slide 11: Key Initiatives to Support our Long-Term Objectives
Key Initiatives to Support our Long-Term Objectives DEALER NETWORK OPTIMIZATION CAN-AM BRAND BUILDING AMBASSADORSHIP PROGRAM MANUFACTURING PLAN DIGITAL TRANSFORMATION Our programs are progressing as planned BRP Inc. - FY17 Q2 11
Slide 12: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2016 BRP Inc. - FY17 Q2 12
Slide 13: FY17 Q2 - Financial Highlights
FY17 Q2 - Financial Highlights Q2 comparison 6-month comparison CA$ millions FY17 FY16 Change FY17 FY16 Change Total Revenues $856.1 $812.1 $44.0 $1,786.0 $1,710.2 $75.8 Growth +5.4% +4.4% Gross Profit $172.0 $169.4 $2.6 $366.1 $382.3 ($16.2) As a % of revenues 20.1% 20.9% 20.5% 22.4% Operating Inco
Slide 14: FY17 Q2 - Revenues by Product Category and Geography
FY17 Q2 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 5% 5% $856.1 $856.1 $812.1 $812.1 $149.4 -4% PAC $154.9 $271.6 +9% International $248.1 Propulsion $99.9 +5% $95.4 Systems $162.7 Canada $178.2 +10% Seasonal $280.5 +6% $
Slide 15: FY17 Q2 - Normalized Net Income Bridge
FY17 Q2 - Normalized Net Income Bridge CA$ millions 6 (9) 7 4 (15) 1 8 FY16 Q2 Volume Pricing and Production Costs Operating Net Financing FY17 Q2 and Mix Sales Programs Expenses Costs and Normalized Income Tax Expense Normalized Net Income down $3M primarily driven by higher volume, mix and pricing
Slide 16: FY17 Q2 - Financial Position and Liquidity Profile
FY17 Q2 - Financial Position and Liquidity Profile As at Jul. 31 As at Jan. 31 CA$ millions 2016 2016 Change Cash $22.2 $235.0 ($212.8) Working capital 63.7 363.3 (299.6) Revolving credit facilities (65.4) - (65.4) Long-term debt[1] 925.0 1,146.6 (221.6) 6-month comparison CA$ millions FY17 FY16 Cha
Slide 17: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY17 Q2 slightly below FY16 Q2 level An increase in network inventory driven by: The introduction of the Can-Am Defender, and; Q1 Q2 Q3 Q4 The increase in the numb
Slide 18: FY17 Full-Year Guidance - as at September 9, 2016
FY17 Full-Year Guidance - as at September 9, 2016 Financial Metric FY17 Guidance vs FY16 Revenues Year-Round Products Up 8% to 12% (increased from up 6% to 10%) Seasonal Products Flat to up 4% Propulsion Systems Up 5% to 10% PAC Up 3% to 8% (lowered from up 5% to 10%) Total Company Revenues Up 4% to
Slide 19: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2016 ROTAX © CAN-AM © BRP Inc. - FY17 Q2 © 2016 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 19 are trademarks of Bombardier Recreational Products Inc. or
Slide 20: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2016 ROTAX © CAN-AM © BRP Inc. - FY17 Q2 © 2016 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 20 are trademarks of Bombardier Recreational Products Inc. or its
Slide 21: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Side-by-Side Vehicles Roadsters Seasonal Products Ski-Doo Snowmobiles Lynx Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP
Slide 22: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2016 ROTAX © CAN-AM © BRP Inc. - FY17 Q2 © 2016 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 22 are trademarks of Bombardier Recreational Products Inc. or its af
Slide 23: Reconciliation Tables
Reconciliation Tables Three-month periods ended Six-month periods ended CA$ millions Jul. 31, 2016 Jul. 31, 2015 Jul. 31, 2016 Jul. 31, 2015 Net Income (Loss) ($68.8) ($68.3) $41.9 $14.8 Normalized elements: Foreign exchange (gain) loss on long-term debt 38.0 71.6 (81.2) 25.6 Restructuring and relat
Slide 24: BRP Inc. - FY17 Q2
Ski-Doo” Lynx" Sea-Doo" BRP. Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE