Slide 1: Quarterly Review: Fourth Quarter Ended January 31, 2023
QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2023
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 2024 financial guidance (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per share
Slide 3: José Boisjoli, President and CEO
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2023 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2023
Slide 4: FY23 Highlights
FY23 Highlights DELIVERED RECORD FINANCIAL RESULTS Strongest revenues, normalized EBITDA[1] and Normalized EPS - Diluted[1] performance in BRP’s history GAINED SIGNIFICANT MARKET SHARE IN THE POWERSPORTS INDUSTRY Gained over 5pp of market share in the North American Powersports industry in FY23 SOLI
Slide 5: FY23 Financial Highlights
FY23 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ +31% +15% +21% $10,033 $12.05 $10.67 $9.92 $7,648 $9.31 FY22 FY23 FY22 FY23 FY22 FY23 Highlights vs. Last Year ◼ Revenues increased 31% primarily driven by a higher volume of p
Slide 6: Ended FY23 on a strong note with solid Q4 Powersports retail
Ended FY23 on a strong note with solid Q4 Powersports retail North American Powersports Retail Growth by Product Line Powersports Retail Growth by Region FY23 Q4 retail sales in units compared to FY22 Q4 FY23 Q4 retail sales in units compared to FY22 Q4 BRP VS. BRP VS. INDUSTRY INDUSTRY INDUSTRY IND
Slide 7: Our solid execution throughout FY23 led to significant market share gains
Our solid execution throughout FY23 led to significant market share gains Gained ~5pp of market share in FY23 Delivered solid results across all product lines in FY23 and ~15pp since FY16 BRP North American Powersports Market Share BRP North American Powersports FY23 Market Share Gains Total of SSV,
Slide 8: Delivered one of our strongest year ever for product awards
Delivered one of our strongest year ever for product awards, demonstrating our industry-leading innovation capabilities Sea-Doo Switch • 2022 – WINNER Sea-Doo Fish Pro • 2022 – WINNER Can-Am Commander XT-P-1000R • 2022 – WINNER Can-Am Ryker Rally • 2022 – WINNER Ski-Doo Mach Z • 2022 – WINNER Ski-Do
Slide 9: We reinforced our position as the OEM of choice for our dealers
We reinforced our position as the OEM of choice for our North American Powersports dealers Continued to gain traction with our dealers Resulting in market share gains within the dealership driven by our unique value proposition NORTH AMERICAN POWERSPORTS Extensive product portfolio AVERAGE UNIT PER
Slide 10: Consumer Interest Update
Consumer Interest Update Retail Indicator Positive Trends BRP Q4 NORTH AMERICAN › Delivered a record Q4 for retail sales with growth across all POWERSPORTS RETAIL SALES product lines Units › Traffic at industry’s events and in dealerships continues to trend positively › Early MY24 snowmobile booking
Slide 11: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues up 47% + ◼ Higher volume across all product lines + Favourable impact from pricing +47% + ◼ Favourable Fx variation Q4 Retail Sales Update $1,254.8 SIDE-BY-SIDE ALL-TERRAIN THREE-WHEELED $853.1 North American year-ov
Slide 12: Delivered an exceptional year for Can-Am SSV
Delivered an exceptional year for Can-Am SSV, and there is still plenty of growth opportunities left Our line-up continues to drive The Can-Am brand is gaining We still have significant strong retail growth traction with consumers market share opportunities NORTH AMERICAN CAN-AM SSV KEY BRAND PERCEP
Slide 13: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues up 26% + ◼ Higher volume of PWC + Introduction of the Sea-Doo Switch +26% + ◼ Favourable impact from pricing + Favourable Fx variation Q4 Retail Sales Update $1,319.5 $1,048.9 PERSONAL North American WATERCRAFT SNOWMOBIL
Slide 14: Powersports PA&A and OEM Engines
Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues up 22% + ◼ Strong unit retail sales + Favourable pricing +22% + ◼ Introduction of the Sea-Doo Switch ◼ Parts: Revenues about flat with continued positive trends driven by the growing number
Slide 15: Marine
Marine Highlights Revenues CA$ millions Marine | Revenues down 8% ◼ Lower volume of boats sold due to supply chain disruptions which slowed down the ramp-up of production of 8% the new product recently introduced Q4 Retail Sales Update $134.8 $123.9 [1] Local market year-over-year retail growth FY22
Slide 16: José Boisjoli and Sébastien Martel
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2023 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2023
Slide 17: FY23 Q4 Financial Overview
FY23 Q4 Financial Overview Financial Highlights Q4 Net Income Bridge Q4 Comparison 12-month Comparison CA$ millions FY23 FY22 Change FY23 FY22 Change (79) 280 (128) Total Revenues $3,076.3 $2,347.5 $728.8 $10,033.4 $7,647.9 $2,385.5 (33) 115 Growth +31.0% +31.2% 365 210 Gross Profit $787.6 $609.5 $1
Slide 18: Structurally improved our Normalized EBITDA margin profile over the last 3 years
Structurally improved our Normalized EBITDA[1] margin profile over the last 3 years BRP NORMALIZED EBITDA[1] MARGIN EVOLUTION Normalized EBITDA[1] as a percentage of revenues Primarily driven by sustainable Primarily driven by external factors that business improvements are expected to normalize ove
Slide 19: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory FY23 Q4: Inventory Position Overview Year-over-Year Bridge DEALER INVENTORY DEALER INVENTORY North America Powersports excluding Sea-Doo Pontoons, Units North America Powersports excluding Sea-Doo Pontoons, Units Inventory increase driven by improved I
Slide 20: FY24 Guidance Context
FY24 Guidance Context Expecting top line growth driven by market share gains, new product introductions and pricing › Industry: Assumes an overall stable Powersports industry › Pricing: Expected to contribute to top line growth by low-to-mid single digit % › Volume: Expected growth driven by market
Slide 21: FY24 Guidance Context: Capital allocation priorities
FY24 Guidance Context: Capital allocation priorities Sustained investments in growth projects with strong Expecting another year of strong return of capital to our Return on Invested Capital (ROIC) shareholders through dividend and share buybacks Approved a 12.5% increase of the dividend and expecti
Slide 22: FY24 Full-Year Guidance - as at March 23, 2023
FY24 Full-Year Guidance - as at March 23, 2023 Financial Metric FY23[4] FY24 Guidance[3] vs FY23 Revenues Year-Round Products $4,827.1 Up 16% to 19% Seasonal Products 3,440.3 Down 4% to Flat Powersports PA&A and OEM Engines 1,276.4 Up 3% to 7% Marine 489.6 Up 45% to 50% Total Company Revenues $10,03
Slide 23: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2023 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2023
Slide 24: Our strong fundamentals are positioning us well to deliver another solid year in FY24
Our strong fundamentals are positioning us well to deliver another solid year in FY24 WELL POSITIONED TO CONTINUE DELIVERING GROWTH IN FY24 › Solid track record of market share gains driven by our diversified portfolio of industry-leading line-ups and the momentum we have with our dealer network › K
Slide 25: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANAURY 31,2018 2023 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2023
Slide 26: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANAURY 31,2018 2023 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2023
Slide 27: Reconciliation Tables
Reconciliation Tables 3-month periods ended 12-month periods ended CA$ millions Jan. 31, 2023 Jan. 31, 2022 Jan. 31, 2023 Jan. 31, 2022 Net Income/(Loss) $365.1 $209.6 $865.4 $794.6 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and Lease Liabilities (56.6) 48.4 92.4 (13.3) Cybe
Slide 28: Reconciliation Tables
Reconciliation Tables Free Cash Flow 3-month periods ended 12-month periods ended CA$ millions Jan. 31, 2023 Jan. 31, 2022 Jan. 31, 2023 Jan. 31, 2022 Net Cash Flows Generated from/(Used in) Operating Activities $307.2 $708.8 $649.5 $770.0 Additions to Property, Plant and Equipment (247.9) (309.0) (
Slide 29: Reconciliation Tables
Reconciliation Tables Return On Invested Capital (ROIC) CA$ millions FY23 FY22 FY21 FY20 FY19 FY18 FY17 FY16 Normalized EBITDA[1] $1,706.3 $1,462.1 $999.0 $804.4 $655.9 $558.6 $502.7 $460.0 Depreciation Expense Adjusted[1] (304.2) (268.1) (255.2) (230.5) (176.1) (149.2) (133.1) (126.2) Normalized EB
Slide 30: Appendix - Continued: Non-IFRS Measures
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 31: Ski-Doo
us Ski-Doo Lynx Sea-Doo Can-Am Rotax Alumacraft Manitou FT) ADVENTURE BY DESIGN Quintrex