Slide 1: Quarterly Review: Third Quarter Ended October 31, 2023
QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 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 the Company’s Fiscal Year 2024 updated financial guidance and where it stands with respect to it, and related assumptions of the
Slide 3: José Boisjoli, President and Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2023 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2023
Slide 4: FY24 Q3 Financial Highlights
FY24 Q3 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ 9% 54% 16% $2,709 $3.64 $2,468 $1.76 $3.06 $0.81 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 Highlights vs. Last Year ◼ Revenues decreased 9% primarily due to the timing
Slide 5: FY24 Q3 Powersports Retail Update
FY24 Q3 Powersports Retail Update Powersports Retail Growth by Region North American Powersports Retail Growth by Product Line FY24 Q3 retail sales in units compared to FY23 Q3 FY24 Q3 retail sales in units compared to FY23 Q3 BRP VS. BRP VS. INDUSTRY[1] INDUSTRY INDUSTRY INDUSTRY NORTH AMERICA TOTA
Slide 6: Our Strategy Continues to Deliver Solid Results
Our Strategy Continues to Deliver Solid Results Gained ~17pp since FY16 Outperformed the industry in ORV, PWC and snowmobile BRP North American Powersports Market Share BRP North American Powersports Market Share Gains Total of SSV, ATV, 3WV, Snowmobiles and PWC FY24 Q3 LTM compared to FY23 Q3 LTM u
Slide 7: Proactively Adjusting our Shipment Plan Given Recent Global Trends
Proactively Adjusting our Shipment Plan Given Recent Global Trends While our retail performance remained solid throughout Q3, we have started to see incremental signs that the challenging macroeconomic and geopolitical environment is weighing on our industry Our industries have softened in October,
Slide 8: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues down 8% ◼ Lower volume of SSV and 3WV sold due to the US-Mexico border slowdown and timing of shipments respectively 8% + ◼ Favourable product mix and pricing + Favourable Fx variation Q3 Retail Sales Update $1,279.8
Slide 9: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues down 15% ◼ Lower volume of PWC and Sea-Doo Switch sold due to timing of shipments 15% + ◼ Higher volume of snomwobiles + ◼ Favourable product mix and pricing + ◼ Favourable Fx variation Q3 Retail Sales Update PERSONAL $1
Slide 10: Powersports PA&A and OEM Engines
Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues up 6% + ◼ Aircraft engines and Pinion gearboxes sales + Favourable pricing +6% ◼ Higher sales programs + Favourable Fx variation ◼ Parts: Up high-single digit % primarily driven by the growt
Slide 11: Marine
Marine Highlights Revenues CA$ millions Marine | Revenues down 6% ◼ Lower volume of boats Higher sales programs 6% + ◼ Favourable product mix and pricing + Favourable Fx variation Q3 Retail Sales Update $111.1 $104.0 [1] Local market Year-over-year retail growth FY23 Q3 FY24 Q3 Quarterly BRP MID 30%
Slide 12: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2023 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2023
Slide 13: FY24 Q3 Financial Overview
FY24 Q3 Financial Overview Financial Highlights Q3 Net Income Bridge Q3 Comparison 9-month Comparison CA$ millions FY24 FY23 Change FY24 FY23 Change Total Revenues $2,467.8 $2,709.3 ($241.5) $7,675.2 $6,957.1 $718.1 (63) 75 (3) Variation % -8.9% +10.3% (78) 29 (39) Gross Profit $627.4 $654.7 ($27.3)
Slide 14: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory FY24 Q3: Inventory Position Overview Network Inventory Evolution since pre-Covid Levels DEALER INVENTORY NORTH AMERICAN DEALER INVENTORY EVOLUTION POWERSPORTS RETAIL BRIDGE VS PRE-COVID North America Powersports, Units FY24 Q3 vs FY20 Q3, Last-twelve-m
Slide 15: FY24 Full-Year Guidance - as at November 30, 2023
FY24 Full-Year Guidance - as at November 30, 2023 Updated from previous guidance Financial Metric FY23[4] FY24 Guidance[3] vs FY23 Revenues Year-Round Products $4,827.1 Up 11% to 12% (previously “Up 16% to 19%”) Seasonal Products 3,440.3 Down 1% to 2% (previously “Down 2% to Up 1%”) Powersports PA&A
Slide 16: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2023 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2023
Slide 17: Stand Up to Bullying Day: BRP painted the world yellow
On stand up to bullying day, BRP painted the world yellow to raise awareness about intimidation We have the power to be a global movement. Together we can ride out intimidation. QUARTERLY REVIEW Third Quarter Ended October 31, 2023 17
Slide 18: Closing Remarks
Closing Remarks BEST POSITIONED TO CONTINUE OUTPERFORMING THE POWERSPORTS INDUSTRY › Delivered robust market share gains over the last twelve months › Strong momentum in ORV – The 30% market share objective for SSV is in sight › Well positioned for the future with solid line-ups across the portfolio
Slide 19: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2023 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2023
Slide 20: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2023 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2023
Slide 21: Reconciliation Tables
Reconciliation Tables 3-month periods ended 9-month periods ended CA$ millions Oct. 31, 2023 Oct. 31, 2022 Oct. 31, 2023 Oct. 31, 2022 Net Income $63.1 $141.6 $556.3 $500.3 Normalized Elements: Foreign Exchange Loss on Long-term Debt and Lease Liabilities 142.1 133.0 108.3 149.0 Cybersecurity Incide
Slide 22: Reconciliation Tables: Free Cash Flow
Reconciliation Tables Free Cash Flow 3-month periods ended 9-month periods ended CA$ millions Oct. 31, 2023 Oct. 31, 2022 Oct. 31, 2023 Oct. 31, 2022 Net Cash Flows Generated from Operating Activities $305.0 $343.3 $1,053.2 $342.3 Additions to Property, Plant and Equipment (128.2) (160.9) (333.1) (3
Slide 23: Appendix - Continued: Non-IFRS Measures
Appendix - Continued Non-IFRS Measures Normalized EBITDA is defined as net income before financing costs, financing income, income tax expense (recovery), depreciation expense and normalized elements. Normalized EBITDA margin is defined as the Normalized EBITDA divided by revenues. Normalized Net In
Slide 24: BRP brands
us Ski-Doo Lynx Sea-Doo Can-Am Rotax Alumacraft Manitou FT) ADVENTURE BY DESIGN Quintrex