Slide 1: Quarterly Review - Third Quarter Ended October 31, 2015
QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2015
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 THIRD QUARTER ENDED OCTOBER 31, 2015 BRP Inc. - FY16 Q3 3
Slide 4: FY16 Q3 Revenues and Normalized EPS
FY16 Q3 Revenues and Normalized EPS Revenues Normalized EPS - Diluted[1] CA$ millions CA$ 10% 3% $1,010.2 $0.62 $0.60 $918.0 FY15 Q3 FY16 Q3 FY15 Q3 FY16 Q3 Highlights Increase of 10% in revenues primarily driven by favourable foreign exchange rate variations variation and andfavourable favourable
Slide 5: Club BRP – Model Year 2016 Product Introductions
Club BRP – Model Year 2016 Product Introductions Over 2,500 people from 61 countries attended our September dealer event in Nashville, Tennessee Club BRP 2016 was one of the biggest in the company’s history BRP Inc. - FY16 Q3 5
Slide 6: September Product Introduction Update
September Product Introduction Update Can-Am Spyder F3-T Rotax 1630 ACE 300 hp Engine Can-Am Renegade X mr Appealing to the Cruiser A new more efficient and The most powerful mud-ready Bagger motorcycle industry powerful engine delivering ATV on the market segment 15% more horsepower than the
Slide 7: Introducing the Can-Am Defender
Introducing the Can-Am Defender North American SSV Industry Entering the largest segment in the SSV industry Season 2015 Trend The utility SSV segment is about the same size as the snowmobile and Sport PWC industries combined in North America Can-Am Maverick Represents a strong offering in the Uti
Slide 8: Start of Production at the New Juarez II Facility
Start of Production at the New Juarez II Facility Project Update Facility completed Construction took ~10 months Project on time and on budget Production ramp-up is expected to be completed by the end of January First shipments of the Can-Am Defender done at the end of November BRP Inc. - FY
Slide 9: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Increase in Year-Round Products revenues primarily attributable to favourable foreign 14% exchange rate variations and favourable product mix of ATV and SSV sold $260.1 Off-Road Vehicles $227.5 Four months into the 2016 season, North Amer
Slide 10: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Increase in Seasonal Products revenues primarily driven by favourable foreign exchange rate 5% variations, partially offset by lower shipments to Russia $476.0 $452.9 Snowmobiles Early in the season, the North American snowmobile industry w
Slide 11: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Increase in Propulsion Systems revenues primarily driven by favourable foreign exchange rate 18% variations and favourable mix of outboard engines sold due to the Evinrude E-TEC G2 $98.5 Outboard Engines $83.3 Four months into the 2016 sea
Slide 12: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Parts, Accessories and Clothing 14% Growth primarily driven by favourable foreign exchange rate variations but also by a higher volume of Outboard PAC International markets performing well with good $175.6 momentum for Asia-
Slide 13: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2015 BRP Inc. - FY16 Q3 13
Slide 14: FY16 Q3 - Financial Highlights
FY16 Q3 - Financial Highlights Q3 comparison 9-month comparison CA$ millions FY16 FY15 Change FY16 FY15 Change Total Revenues $1,010.2 $918.0 $92.2 $2,720.4 $2,456.6 $263.8 Growth +10.0% +10.7% Gross Profit $246.0 $239.6 $6.4 $628.3 $555.9 $72.4 As a % of revenues 24.4% 26.1% 23.1% 22.6% Operating I
Slide 15: FY16 Q3 - Revenues by Product Category and Geography
FY16 Q3 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 10% 10% $1,010.2 $1,010.2 $918.0 $918.0 $175.6 +14% PAC $154.3 $312.3 -5% Propulsion $98.5 +18% International $330.4 $83.3 Systems $243.5 +2% Seasonal Canada $476.0 +5% $
Slide 16: Quarterly Normalized Net Income Bridge
Quarterly Normalized Net Income Bridge CA$ millions (11) (1) 26 (3) (10) 72 73 FY15 Q3 Volume, Mix, Production Costs Net Financing Depreciation Foreign Exchange FY16 Q3 Pricing and and Operating Costs and Rates Sales Expenses Normalized Income Programs Tax Expense Normalized Net Income increased $1M
Slide 17: FY16 Q3 - Financial Position and Liquidity Profile
FY16 Q3 - Financial Position and Liquidity Profile As at Oct. 31 As at Jan. 31 CA$ millions 2015 2015 Change Cash $94.4 $232.0 ($137.6) Working capital 265.8 291.8 (26.0) Revolving credit facilities and bank overdraft - - - Long-term debt[1] 1,066.8 1,035.5 31.3 9-month comparison CA$ millions FY16
Slide 18: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY16 Q3 up 18% from FY15 Q3 level Primarily driven by snowmobile and the increase in the number of dealers Q1 Q2 Q3 Q4 Increase in other product lines inventory driv
Slide 19: FY16 Full-Year Guidance - as at December 11, 2015
FY16 Full-Year Guidance - as at December 11, 2015 Financial Metric FY16 Guidance vs FY15 Revenues Year-Round Products Up 8% to 10% (narrowed from up 7% to 11%) Seasonal Products Flat to up 4% Propulsion Systems Up 7% to 10% PAC Up 12% to 15% (low-end increased from up 10% to 15%) Total Company Reven
Slide 20: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © THIRD QUARTER ENDED OCTOBER 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q3 © 2015 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.
Slide 21: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © THIRD QUARTER ENDED OCTOBER 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q3 © 2015 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 21 are trademarks of Bombardier Recreational Products Inc. or it
Slide 22: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Roadsters Side-by-Side Vehicles Seasonal Products Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY16 Q3 22
Slide 23: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © THIRD QUARTER ENDED OCTOBER 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q3 © 2015 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 23 are trademarks of Bombardier Recreational Products Inc. or its
Slide 24: Reconciliation Tables
Reconciliation Tables Three-month periods ended Nine-month periods ended CA$ millions Oct. 31, 2015 Oct. 31, 2014 Oct. 31, 2015 Oct. 31, 2014 Net Income $65.5 $37.2 $80.3 $61.6 Normalized elements: Foreign exchange loss on long-term debt 2.8 29.8 28.4 12.4 Restructuring costs reversal [1] 4.8 (0.4)
Slide 25: BRP Inc. - FY16 Q3
Ski-Doo" Lynx" Sea-Doo SRP. Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE