Slide 1: Quarterly Review Third Quarter Ended October 31, 2014
QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 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 THIRD QUARTER ENDED OCTOBER 31, 2014 BRP Inc. - FY15 Q3 3
Slide 4: FY15 Q3 Revenues and Normalized EPS
FY15 Q3 Revenues and Normalized EPS Revenues Normalized EPS - Diluted[1] CA$ millions CA$ millions 6% 20% $918.0 $0.60 $866.0 $0.50 FY14 Q3 FY15 Q3 FY14 Q3 FY15 Q3 Financial Highlights Strong quarter driven by high volume of snowmobile vehicles vehicle and andPAC PAC Gross profit margin percenta
Slide 5: Business Highlights
Business Highlights Markets North America Dynamic BRP retail sales for Seasonal Products and Year-Round Products were up 10% in aggregate for the three-month period ended October 31, 2014 vs the same period last year Network inventory is about flat vs. the same period last year, a healthy level
Slide 6: Russian ruble losing over 30% of its value since Q2 call
Russian ruble losing over 30% of its value since the Q2 earnings call is forcing us to adjust Q4 deliveries Russia Snowmobile Planned Snowmobile Orders Confirmation Shipments to Russia FY14Q3 FY14Q4 FY15Q1 FY15Q2 FY15Q3 FY15Q4 EUR/RUB Q2 Earnings Call - Sep 12 49.0 RUB/EUR Oct 31, 2013 43.6 RUB/EUR
Slide 7: Transfer of the traditional PWC assembly to Mexico is progressing as planned
Transfer of the traditional PWC assembly to Mexico is progressing as planned Smooth Transition Reconfiguration of the Spark assembly line was completed during the summer to support full PWC mix production Assembly of traditional PWC models was fully operational at the end of September, in time f
Slide 8: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Snowmobile 18% Early in the season, the North American industry retail was up in the twenties % Ski-Doo gained market share over the same period $452.9 $382.5 PWC N.A. PWC industry retail 2014 season ended on FY14 Q3 FY15 Q3 September 3
Slide 9: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Off-Road Vehicles 9% Season-to-date N.A. SSV industry up mid-teens digits, Can-Am SSV retail grew less than the industry Four months into the season, N.A. ATV industry was down low-single digits % $249.6 $227.5 Can-Am ATV retail was u
Slide 10: New Can-Am Spyder F3
New Can-Am Spyder F3 New ergonomics and styling to appeal to the largest motorcycle segment North American Motorcycle Industry by Segment [1] Sport Spyder RS 20% Cruiser New Spyder F3 Sport-Touring 7% Spyder ST 7% 66% Touring Spyder RT The F3 is a significant milestone in the expansion of the Spyder
Slide 11: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Outboard Engines 7% Four months into the 2015 season, industry retail was up low-single digits % BRP retail sales were down low-single digits % over the same period $89.6 $83.3 Shipments of the Evinrude E-TEC G2 started in November FY1
Slide 12: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Parts, Accessories and Clothing 7% Growth primarily driven by strong sales of snowmobile parts for the upcoming season Good momentum in the sales of SSV accessories also contributing to the growth $144.3 $154.3 FY14 Q3 FY15
Slide 13: Sébastien Martel, CFO
SÉBASTIEN MARTEL CFO QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2014 BRP Inc. - FY15 Q3 13
Slide 14: FY15 Q3 - Financial Highlights
FY15 Q3 - Financial Highlights Q3 comparison 9-month comparison CA$ millions FY15 FY14 Change FY15 FY14 Change 1 Total Revenues $918.0 $866.0 $52.0 $2,456.6 $2,291.2 $165.4 Growth +6.0% +7.2% Gross Profit $239.6 $223.9 $15.7 $555.9 $584.5 ($28.6) As a % of revenues 26.1% 25.9% 22.6% 25.5% Operating
Slide 15: FY15 Q3 - Revenues by Product Category and Geography
FY15 Q3 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 6% 6% $918.0 $918.0 $866.0 $866.0 $154.3 +7% PAC $144.3 $330.4 +8% Propulsion $83.3 -7% $306.0 International $89.6 Systems Year-Round $227.5 -9% $249.6 Products $217.5 Ca
Slide 16: Quarterly Normalized Net Income Bridge
Quarterly Normalized Net Income Bridge CA$ millions 3 (5) 9 (14) 20 72 59 FY14 Q3 Volume, Mix, Operating Net Financing Depreciation Foreign Exchange FY15 Q3 Pricing and Sales Expenses Costs and Income Programs Tax Expense Normalized Net Income increased 22% compared to FY14 Q3 BRP Inc. - FY15 Q3 16
Slide 17: FY15 Q3 - Financial Position and Liquidity Profile
FY15 Q3 - Financial Position and Liquidity Profile As at Oct. 31 As at Jan. 31 CA$ millions 2014 2014 Change Cash $45.1 $75.4 ($30.3) Working capital 184.7 155.6 29.1 Revolving credit facilities 2.2 10.5 (8.3) Long-term debt[1] 924.1 889.9 34.2 9-month comparison CA$ millions FY15 FY14 Change Capita
Slide 18: BRP North American Powersports Dealer Network
BRP North American Powersports Dealer Network North American Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory ended FY15 Q3 at the same level as FY14 Q3 Seasonal Products Inventory up - driven by increased shipments of snowmobiles to meet higher demand for the current seas
Slide 19: FY15 Full-Year Guidance - as at December 12, 2014
FY15 Full-Year Guidance - as at December 12, 2014 Financial Metric FY15 Guidance vs FY14 No change unless otherwise noted Revenues Seasonal Products Up 10% to 14% (lowered from up 12% to 16%) Year-Round Products Up 6% to 10% Propulsion Systems Up 7% to 10% PAC Up 10% to 15% Total Company Revenues Up
Slide 20: Closing Remarks
SKI-DOO Closing Remarks © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW © CAN-AM © THIRD QUARTER ENDED OCTOBER 31, 2014 BRP Inc. - FY15 Q3 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 20 logo are trademarks of Bombardier Recreational Products I
Slide 21: Q&A Period
SKI-DOO Q&A Period © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW © CAN-AM © THIRD QUARTER ENDED OCTOBER 31, 2014 BRP Inc. - FY15 Q3 © 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. o
Slide 22: 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 23: Appendix
SKI-DOO Appendix © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW © CAN-AM © THIRD QUARTER ENDED OCTOBER 31, 2014 BRP Inc. - FY15 Q3 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 23 logo are trademarks of Bombardier Recreational Products Inc. or
Slide 24: Reconciliation Tables
Reconciliation Tables Three-month periods ended Nine-month periods ended CA$ millions Oct. 31, 2014 Oct. 31, 2013 Oct. 31, 2014 Oct. 31, 2013 Net Income $37.2 $48.2 $61.6 1 $66.0 Normalized Elements: Foreign exchange loss on long-term debt 29.8 10.9 12.4 43.5 Increase in fair value of common shares
Slide 25: BRP Inc. - FY15 Q3
Ski-Doo" Lynx" Sea-Doo" sai Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE aay