Slide 1: BRP Inc. Fiscal 2014 Q1 Update
BRP Inc. Fiscal 2014 Q1 Update June 13, 2013 BRP Inc. - FY14 Q1 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: Fiscal 2014 Q1 Update - José Boisjoli, President & CEO
BRP Inc. Fiscal 2014 Q1 Update José Boisjoli PRESIDENT & CEO BRP Inc. - FY14 Q1 3
Slide 4: FY14 Q1 Revenues by Product Category
FY14 Q1 Revenues by Product Category BRP Overview 26% 6 Product Lines 105 Countries 4,200 Dealers 12% 50% Advanced Technology 3 Centres State-of-the art 4 Product Development Centres Production facilities 6 in 5 countries 12% BRP Inc. - FY14 Q1 4
Slide 5: FY14 Q1 Revenues and Net Income
FY14 Q1 Revenues and Net Income Q1 Revenues* (CA$M) Q1 Normalized Net Income (CA$M) $763 +12% +8% Sport Boat $804 $53 $719 $50 FY13 Q1 FY14 Q1 FY13 Q1 FY14 Q1 12% growth in comparable Q1 revenues, driven by Year-Round Products, up 27% International revenues up 8% Gross profit margin down 70 bp
Slide 6: FY14 Q1 Business Highlights
FY14 Q1 Business Highlights Ended the snowmobile season with low dealer inventory worldwide and strong dealer orders for Model Year 14 (MY14) Industry retail sales of Personal Watercraft (PWC), Motorcycles and Outboard Engines (OE) were impacted by abnormally low temperatures Despite spring we
Slide 7: Q1 Revenues by Product Category and Geography
Q1 Revenues by Product Category and Geography Revenues by Product Category (CA$M) Revenues by Geography (CA$M) +12% Excl. Sport Boat +5% $804 +5% $804 $763 $763 $100 +2% $98 PAC $246 +8% $93 +0% $228 International $93 Propulsion Systems Canada $145 +0% $145 $318 $405 +27% Year-Round Products United
Slide 8: Seasonal Products Q1 Highlights
Seasonal Products Q1 Highlights BRP Revenues* (CA$M) Industry & Competitive Dynamics -1% PWC Early in the season, U.S. Industry and Sea-Doo retail down low-double digits, impacted by cold weather Sea-Doo, the only PWC with a brake, continues $210 $207 to generate traffic at dealerships Snowm
Slide 9: Year-Round Products Q1 Highlights
Year-Round Products Q1 Highlights BRP Revenues (CA$M) Industry & Competitive Dynamics Off-Road Vehicles +27% N.A. ATV industry down low single digits, 10 months into the season BRP ATV share stable in N.A. U.S. Recreational SSV industry continued to grow $405 in high-single digits, 10 months
Slide 10: Propulsion Systems Q1 Highlights
Propulsion Systems Q1 Highlights Propulsion Systems Revenues (CA$M) Propulsion Systems Highlights $93 0% $93 Outboard Engines N.A. industry retail up low single digits, 10 months into the season BRP retail sales were flat New BRP lightweight military multi-fuel engine is $93 $93 generating f
Slide 11: PAC Q1 Highlights
PAC Q1 Highlights PAC Revenues (CA$M) PAC Highlights $98 2% $100 6% growth in PAC revenues $11 high-double digit increase for snowmobile $14 Other Weather impacted parts sales for outboard engines $84 PAC $89 +6% Strong dealer orders for MY14 snowmobile accessories FY13 Q1 FY14 Q1 MY14 Ski-D
Slide 12: Our Priorities
Our Priorities Continue to grow our revenues from Year-Round Products Continue expansion of our N.A. dealer network Ramp-up PWC production capacity in Queretaro, Mexico Continue product innovation Prepare for the next Club BRP dealer meeting in Orlando in September Key event for worldwid
Slide 13: Fiscal 2014 Q1 Update - Claude Ferland, CFO
BRP Inc. Fiscal 2014 Q1 Update Claude Ferland CHIEF FINANCIAL OFFICER BRP Inc. - FY14 Q1 13
Slide 14: FY14 Q1 – Financial Highlights
FY14 Q1 – Financial Highlights CA$M FY14 Q1 FY13 Q1 Change Revenues by Category Seasonal Products $206.7 $253.6 * ($46.9) Year-Round Products 404.7 317.7 87.0 Propulsion Systems 92.9 93.1 (0.2) PAC 100.0 98.3 1.7 Total Revenues $804.3 $762.7 $41.6 Growth 5.5% Gross Profit $218.0 $212.2 $5.8 As a % o
Slide 15: Bridge from FY14 Q1 EBITDA to FY14 Q1 Normalized Net Income
Bridge from FY14 Q1 EBITDA to FY14 Q1 Normalized Net Income CA$M $0.6 $19.6 $21.1 $16.9 $16.4 $107.8 $87.6 $53.4 FY14 Q1 EBITDA Increase Fair valuein Unusual Non-rec FY14 Norm Q1 EBITDA Depreciation Depreciation Net Fin cost Normalized Inc tax adj FY14 N Norm Q1 Inc EBITDA fair value and non- Normal
Slide 16: Bridge from FY13 Q1 to FY14 Q1 Normalized Net Income
Bridge from FY13 Q1 to FY14 Q1 Normalized Net Income CA$M $12.0 $12.0 $5.8 $11.0 $9.0 $53.4 $49.6 FY13 FY13Q1 Volume, VMP Production Prod costs Operating Opex Foreign FX Net Others FY14 FY14Q1 Normalized Mix & & Sales Expenses Exchange financing Normalized Net Income Pricing Program costs and Net In
Slide 17: FY14 Q1 – Balance Sheet and Liquidity Profile
FY14 Q1 – Balance Sheet and Liquidity Profile As of April 30 As of Jan. 31 CA$M 2013 2013 Change Cash $91.7 $542.4 ($450.7) Net working capital (46.8) (26.7) (20.1) Revolving credit facility - - - Long term debt* 1,071.7 1,054.6 17.1 * BRP repaid US$258M of its Term Facility following the May IPO CA
Slide 18: BRP North America Powersports Dealer Inventory
BRP North America Powersports Dealer Inventory Dealer inventory up 12% from FY13 Q1 Growth in SSV Slower retail of PWC and Roadster driven by cold spring weather BRP North America dealer inventory level (units, excluding outboard engines) FY12 FY13 FY14 Q1 Q2 Q3 Q4 BRP Inc. - FY14 Q1 Note: Exc
Slide 19: FY14 Full-Year Guidance
FY14 Full-Year Guidance Financial Metric FY14 Guidance vs FY13 Revenues Seasonal Products Flat to up low-single digits Year-Round Products Up high-double digits % Propulsion Systems Up mid to high-single digits % PAC Up high-single digits % Total Company Revenues Up high-single digits % Normalized E
Slide 20: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Seasonal Products Snowmobiles Personal Watercraft Year-Round Products Recreational Roadsters All-Terrain Vehicles Side-by-Side Vehicles Propulsion Systems Outboard Engines OEM Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY14
Slide 21: BRP Inc. - FY14 Q1
BRP Inc. - FY14 Q1 21