Brp, Inc. · TSX:DOO
Brp — Q3 FY2018 Earnings Presentation
23 slides from Brp's earnings presentation, Dec 1, 2017
Slide 1: Quarterly Review: Third Quarter Ended October 31, 2017
QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2017 Presentation title Month date, year 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information included in this release, including, but not limited to, statements relating to our Fiscal Year 2018 financial outlook (including revenues, gross profit margin, operating expenses, Normalized EBITDA, Effective Tax Rate, Normalized net income and Normali
Slide 3: José Boisjoli, President & Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT & CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2017 BRP Inc. - FY18 Q3 3
Slide 4: FY18 Q3 Revenues, EPS and Normalized EPS
FY18 Q3 Revenues, EPS and Normalized EPS[1] Revenues EPS - Diluted Normalized EPS - Diluted[1] CA$ millions CA$ CA$ 15% 7% 13% $1 241 $1,05 $0,70 $0,75 $0,93 $1 080 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 Highlights vs. Year Ago Increase of 15% in revenues primarily driven by the continued
Slide 5: BRP Club 2018 Highlights: The Can-Am Maverick Trail
BRP Club 2018 Highlights: The Can-Am Maverick Trail “A New SSV Every 6 Months Until 2020” - Introduction #5 2015H2 2016H1 2016H2 2017H1 2017H2 Defender MAX Maverick X3 MAX Intro: Mar 2016 Intro: Feb 2017 Defender Maverick X3 Maverick TRAIL Intro: Sep 2015 Intro: Aug 2016 Intro: Sep 2017 Entering the
Slide 6: BRP Club 2018 Highlights: Key Introductions
BRP Club 2018 Highlights: Key Introductions All New Sea-Doo Platform Can-Am Spyder - BRP ConnectTM Can-Am Spyder - Project S New features to revolutionize the on-board experience coupled Riders can now access their navigation application, play content, Announced the upcoming introduction of an entry
Slide 7: Can-Am SSV Mid-season Introductions
Can-Am SSV Mid-season Introductions Maverick X3 900 HO Maverick X3 X mr Expansion of the Smart-LokTM Technology Increasing the accessibility of the Can-Am Maverick X3 with a Industry’s first factory-equipped turbocharged mud side-by-side Fully lockable on-the-fly front differential with electronical
Slide 8: Juárez 2: Launch of Phase 2 of SSV Production Capacity Increase
Juárez 2: Launch of Phase 2 of SSV Production Capacity Increase Solid Can-Am SSV Growth Requiring Additional Capacity Can-Am SSV Retail Juárez 2 SSV Production Capacity North America, Rolling Twelve Months Units per hour Announced New Can-Am Maverick Trail June 01, 2017 Investments First Shipments P
Slide 9: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Revenue increase of 20%: 20% Driven by a higher volume of SSV sold due to the strong demand for the Can-Am Maverick X3, Can-Am Defender and the first shipments of Can-Am Maverick Trail $460,9 $383,9 Off-Road Vehicles Four months into th
Slide 10: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Revenue increase of 18%: 18% Primarily driven by a higher volume of snowmobile sold mainly attributable to earlier shipments compared to last year, as last year’s shipments were later than normal, and; $491,7 By a favourable snowmobile pr
Slide 11: Sea-Doo: Poised for Continued Growth
Sea-Doo: Poised for Continued Growth GAINING SHARES IN THE OPERATING IN A FAST GROWING TRADITIONAL PWC SEGMENT WITH INVESTING IN CAPACITY TO SUPPORT INDUSTRY PRODUCT INNOVATION THE LAUNCH OF THE NEW PLATFORM PWC Industry Sea-Doo Market Share Querétaro PWC Production Capacity Units, North America Uni
Slide 12: Propulsion Systems and Parts, Accessories and Clothing
Propulsion Systems and Parts, Accessories and Clothing Propulsion Systems Parts, Accessories and Clothing Revenues Revenues CA$ millions CA$ millions 1% 5% $185,0 $194,4 $94,2 $93,5 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 Business Dynamics Business Dynamics Outboard Engines Revenue increase of 5%: Four mo
Slide 13: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2017 BRP Inc. - FY18 Q3 13
Slide 14: FY18 Q3 - Financial Highlights
FY18 Q3 - Financial Highlights Q3 comparison 9-month comparison CA$ millions FY18 FY17 Change FY18 FY17 Change Total Revenues $1,240.5 $1,080.2 $160.3 $3,223.7 $2,866.2 $357.5 Growth +14.8% +12.5% Gross Profit $329.4 $307.2 $22.2 $750.3 $673.3 $77.0 As a % of revenues 26.6% 28.4% 23.3% 23.5% Operati
Slide 15: FY18 Q3 - Normalized Net Income Bridge
FY18 Q3 - Normalized Net Income[1] Bridge CA$ millions (15) 75 (44) 5 (16) 104 109 FY17 Q3 Volume and Mix Pricing and Production Costs Net Financing Foreign Exchange FY18 Q3 Sales Programs and Operating Costs and Rates Expenses Normalized Income Tax Expense [1] See “Non-IFRS Measures” section in app
Slide 16: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY18 Q3 up 9% from FY17 Q3 level Increase primarily driven by: Q1 Q2 Q3 Q4 the shipment ramp-up to our new dealers FY16 FY17 FY18 the growing demand for our Can-Am
Slide 17: FY18 Full-Year Guidance - as at December 01, 2017
FY18 Full-Year Guidance - as at December 01, 2017 Financial Metric FY18 Guidance vs FY17 Revenues Year-Round Products Up 11% to 12% (narrowed from up 8% to 12%) Seasonal Products Up 1% to 3% (narrowed from down 1% to up 3%) Propulsion Systems Down 2% to Up 1% (lowered from flat to up 5%) PAC Up 7% t
Slide 18: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © THIRD QUARTER ENDED OCTOBER 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY18 Q3 © 2017 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 18 are trademarks of Bombardier Recreational Products Inc.
Slide 19: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © THIRD QUARTER ENDED OCTOBER 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY18 Q3 © 2017 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 it
Slide 20: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Side-by-Side Vehicles Spyder Seasonal Products Ski-Doo Snowmobiles Lynx Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc
Slide 21: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © THIRD QUARTER ENDED OCTOBER 31, 2017 ROTAX © CAN-AM © BRP Inc. - FY18 Q3 © 2017 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 its
Slide 22: Reconciliation Tables
Reconciliation Tables Three-month periods ended Nine-month periods ended CA$ millions Oct. 31, 2017 Oct. 31, 2016 Oct. 31, 2017 Oct. 31, 2016 Net Income $77.8 $78.7 $159.4 $120.6 Normalized elements: Foreign exchange (gain) loss on long-term debt 30.9 24.5 (5.7) (56.7) Restructuring costs (reversal)
Slide 23: BRP Inc. - FY18 Q3
Ski-Doo” Lynx" Sea-Doo® BRP Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE 2015 BRP. All rights reserved. / ™ * and the BRP logo are trademarks of BRP or its affiliates.