Brp, Inc. · TSX:DOO
Brp — Q2 FY2015 Earnings Presentation
26 slides from Brp's earnings presentation, Sep 12, 2014
Slide 1: Quarterly Review
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2014
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, CEO
JOSÉ BOISJOLI CEO QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2014 BRP Inc. - FY15 Q2 3
Slide 4: FY15 Q2 Revenues and Normalized EBITDA
FY15 Q2 Revenues and Normalized EBITDA Revenues Normalized EBITDA[1] CA$ millions CA$ millions 26% 34% $780.0 $620.9 $47.4 $31.3 FY14 Q2 FY15 Q2 FY14 Q2 FY15 Q2 Financial Highlights Increase of 26% in quarterly revenues, or 20% when excluding favourable foreign exchange impact Normalized EBITDA
Slide 5: Business Highlights
Business Highlights Markets North America Dynamic BRP retail sales for both Seasonal Products and Year-Round Products were up 19% in aggregate for the three-month period ended July 31, 2014 vs the same period last year Network inventory is at a healthy level with Seasonal Products and Year-Round
Slide 6: Shipments of New Products Introduced in FY15 Will Mostly Impact Q3 and Q4 Results
Shipments of New Products Introduced in FY15 Will Mostly Impact Q3 and Q4 Results Q1 Q2 Q3 Q4 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Club Ski-Doo Club Lynx MY15 Can-Am Club Evinrude Maverick X ds Club Spyder North America Scandinavia ORV Line-up Turbo Launch March 4 to 7 March 11 to 14 May
Slide 7: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions PWC 85% Ten months into the season, N.A. industry up in the low-twenties % Industry growth is driven by the Sea-Doo Spark $259.8 Sea-Doo gained market share over the same period, maintaining its number one position in North America $140
Slide 8: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Off-Road Vehicles 7% N.A. SSV industry retail closed 2014 season on June 30, up mid-teens digits % Can-Am SSV retail grew more than industry Can-Am Maverick network inventory decreased $297.4 $278.1 during Q2 Dealer inventory at a h
Slide 9: Introducing the New Maverick X ds Turbo
Introducing the New Maverick X ds Turbo The most powerful SSV in the industry Industry-leading performance 121-HP Rotax 1000R Turbo, Industry’s first factory-installed turbo CVT ventilation, 68% more airflow Redesigned front and rear suspension with longer travel REC-Sport: A fast-growing segm
Slide 10: BRP Club Spyder 2015
BRP Club Spyder 2015 The new Spyder F3 will be officially unveiled at the BRP Club Spyder on September 23 BRP Inc. - FY15 Q2 10
Slide 11: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Outboard Engines 2% N.A. industry season 14 ended June 30, 2014 with industry retail up high-single digits % BRP retail sales were flat $85.9 $84.4 FY14 Q2 FY15 Q2 The new Evinrude E-TEC Leading edge technology - More power and torque,
Slide 12: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Parts, Accessories and Clothing 19% Growth primarily driven by the good performance of the Sea-Doo Spark and by deliveries of snowmobile PAC for the upcoming season $138.4 $116.3 FY14 Q2 FY15 Q2 Maverick X ds Turbo Accessories
Slide 13: Sébastien Martel, CFO
SÉBASTIEN MARTEL CFO QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2014 BRP Inc. - FY15 Q2 13
Slide 14: FY15 Q2 - Financial Highlights
FY15 Q2 - Financial Highlights Q2 comparison 6-month comparison CA$ millions FY15 FY14 Change FY15 FY14 Change 1 Total Revenues $780.0 $620.9 $159.1 $1,538.6 $1,425.2 $113.4 Growth +25.6% 8.0% Gross Profit $142.9 $142.6 $0.3 $316.3 $360.6 ($44.3) As a % of revenues 18.3% 23.0% 20.6% 25.3% Operating
Slide 15: FY15 Q2 - Revenues by Product Category and Geography
FY15 Q2 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 26% 26% $780.0 $780.0 $138.4 +19% $620.9 PAC $620.9 $239.2 +8% $84.4 -2% International $116.3 Propulsion Systems $221.3 $85.9 $180.4 +47% $297.4 +7% Canada Year-Round $12
Slide 16: Quarterly Normalized Net Income Bridge
Quarterly Normalized Net Income Bridge CA$ millions ($21) $28 ($14) $8 $5 ($5) ($10) ($9) FY14 Q2 Volume, Mix, Production Operating Net Financing Depreciation Foreign FY15 Q2 Pricing and Costs Expenses Costs and Exchange Sales Programs Income Tax Expense BRP Inc. - FY15 Q2 16
Slide 17: FY15 Q2 - Financial Position and Liquidity Profile
FY15 Q2 - Financial Position and Liquidity Profile As at Jul. 31 As at Jan. 31 CA$ millions 2014 2014 Change Cash $22.1 $75.4 ($53.3) Working capital 133.6 155.6 (22.0) Revolving credit facilities 41.9 10.5 31.4 Long-term debt[1] 887.1 889.9 (2.8) 6-month comparison CA$ millions FY15 FY14 Change Cap
Slide 18: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory North American Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory ended FY15 Q2 up 2% from FY14 Q2 Seasonal Products Inventory up - driven by increased shipments of snowmobiles to meet higher demand for the upcoming season Year
Slide 19: FY15 Full-Year Guidance - as at September 12, 2014
FY15 Full-Year Guidance - as at September 12, 2014 Financial Metric FY15 Guidance vs FY14 No change unless otherwise noted Revenues Seasonal Products Up 12% to 16% (increased from up 9% to 13%) Year-Round Products Up 6% to 10% (lowered from up 9% to 13%) Propulsion Systems Up 7% to 10% PAC Up 10% to
Slide 20: FY15 Guidance - Back-Half Loaded Profitability
FY15 Guidance - Back-Half Loaded Profitability Normalized EBITDA by Half Year As a percentage of full fiscal year normalized EBITDA First Half Contribution Second Half Contribution FY12 FY13 FY14 FY15 100% 50% 50% 100% Elements Impacting FY15H1 Elements Impacting FY15H2 Project related expenses Stro
Slide 21: Closing Remarks
SKI-DOO CLOSING REMARKS © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW © CAN-AM © SECOND QUARTER ENDED JULY 31, 2014 BRP Inc. - FY15 Q2 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 21 logo are trademarks of Bombardier Recreational Products Inc
Slide 22: Q&A Period
SKI-DOO Q&A Period © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW © CAN-AM © SECOND QUARTER ENDED JULY 31, 2014 BRP Inc. - FY15 Q2 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 22 logo are trademarks of Bombardier Recreational Products Inc. or
Slide 23: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Seasonal Products Snowmobiles Personal Watercraft Year-Round Products All-Terrain Vehicles Recreational Roadsters Side-by-Side Vehicles Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY15
Slide 24: Appendix
SKI-DOO Appendix © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW © CAN-AM © SECOND QUARTER ENDED JULY 31, 2014 BRP Inc. - FY15 Q2 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 24 logo are trademarks of Bombardier Recreational Products Inc. or it
Slide 25: Reconciliation Tables
Reconciliation Tables Three-month periods ended Six-month periods ended CA$ millions July 31, 2014 July 31, 2013 July 31, 2014 July 31, 2013 1 Net Income (Loss) ($3.6) ($7.9) $24.4 $17.8 Normalized Elements: Foreign exchange (gain) loss on long-term debt (5.1) 24.3 (17.4) 32.6 Increase in fair value
Slide 26: Presentation Title Date: YYYY-MM-DD
Presentation Title 26 Date: YYYY-MM-DD