Slide 1: Quarterly Review: Second Quarter Ended July 31, 2015
QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2015
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, President & Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT & CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2015 BRP Inc. - FY16 Q2 3
Slide 4: FY16 Q2 Revenues and Normalized EPS
FY16 Q2 Revenues and Normalized EPS Revenues Normalized EPS - Diluted[1] CA$ millions CA$ 4% $0.10 $0.03 ($0.07) $812.1 $780.0 FY15 Q2 FY16 Q2 FY15 Q2 FY16 Q2 Financial Highlights Increase of 4% in revenues primarily driven by favourable foreign exchange rate variation Gross profit margin improv
Slide 5: FY16 Q2 Business Highlights
FY16 Q2 Business Highlights Markets North America Dynamics Revenue growth of 4% BRP retail sales for Seasonal Products and Year-Round Products were up 2% in aggregate for the three-month period ended July 31, 2015 vs the same period last year Network inventory[1] was up 23% vs the end of FY15
Slide 6: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Increase in Year-Round Products revenues primarily attributable to favourable foreign 0.3% exchange rate variation, offset by lower wholesale volume and unfavourable product mix Off-Road Vehicles $297.4 $298.4 N.A. ATV industry ended seas
Slide 7: Off-Road Products Quarterly Industry Trend
Off-Road Products Quarterly Industry Trend ATV SSV US industry slightly down US industry still positive driven by the Utility segment Canadian industry down driven by double digits % decline in Western Canada Canadian industry down across all markets Difficult market trends for off-road products dri
Slide 8: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Increase in Seasonal Products revenues primarily driven by earlier snowmobile shipments and 1% favourable foreign exchange rate variations, partially offset by lower PWC shipments $263.4 PWC $259.8 Ten months into the season, the North Amer
Slide 9: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions 13% increase in Propulsion Systems revenues primarily attributable to a favourable mix of 13% outboard engines driven by the introduction of Evinrude E-TEC G2 engines $95.4 Outboard Engines $84.4 N.A. Outboard Engines industry ended season
Slide 10: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Parts, Accessories and Clothing 12% Growth primarily driven by favourable foreign exchange rate variations but also by an increase in sales of accessories principally coming from Roadsters, Snowmobiles and SSV $154.9 Interna
Slide 11: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW SECOND QUARTER ENDED JULY 31, 2015 BRP Inc. - FY16 Q2 11
Slide 12: FY16 Q2 - Financial Highlights
FY16 Q2 - Financial Highlights Q2 comparison 6-month comparison CA$ millions FY16 FY15 Change FY16 FY15 Change Total Revenues $812.1 $780.0 $32.1 $1,710.2 $1,538.6 $171.6 Growth +4.1% +11.2% Gross Profit $169.4 $142.9 $26.5 $382.3 $316.3 $66.0 As a % of revenues 20.9% 18.3% 22.4% 20.6% Operating Inc
Slide 13: FY16 Q2 - Revenues by Product Category and Geography
FY16 Q2 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 4% 4% $812.1 $812.1 $780.0 $780.0 PAC $154.9 +12% $138.4 International $248.1 +4% $239.2 Propulsion $95.4 +13% $84.4 Systems Canada $162.7 -10% Seasonal $180.4 $259.8 $26
Slide 14: Quarterly Normalized Net Income Bridge
Quarterly Normalized Net Income Bridge CA$ millions (5) (3) (2) 22 4 (9) (9) 10 FY15 Q2 Volume, Mix Sales Programs Production Net Financing Depreciation Foreign FY16 Q2 and Pricing Costs Costs and Exchange Rates and Operating Normalized Expenses Income Tax Expense Normalized Net Income increased $13
Slide 15: FY16 Q2 - Financial Position and Liquidity Profile
FY16 Q2 - Financial Position and Liquidity Profile As at Jul. 31 As at Jan. 31 CA$ millions 2015 2015 Change Cash $157.1 $232.0 ($74.9) Working capital 255.8 291.8 (36.0) Revolving credit facilities and bank overdraft 6.1 - 6.1 Long-term debt[1] 1,061.7 1,035.5 26.2 6-month comparison CA$ millions F
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 FY16 Q2 up 23% from FY15 Q2 level Primarily driven by snowmobiles and Sea-Doo Spark inventory Q1 Q2 Q3 Q4 Year-Round Products increase driven by new FY14 FY15 FY16 p
Slide 17: FY16 Full-Year Guidance - as at September 11, 2015
FY16 Full-Year Guidance - as at September 11, 2015 Normalized Net Income and Normalized Diluted Earnings per Share guidance adjusted due to lower expected depreciation expense for the year Financial Metric FY16 Guidance vs FY15 No change unless otherwise noted Revenues Year-Round Products Up 7% to 1
Slide 18: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q2 © 2015 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. or
Slide 19: Key Market Trends
Key Market Trends USA Industry relatively healthy Very All OEMs are more aggressive Competitive Technical recession since August CANADA Industry down in Western Canada impacted by lower oil price Negative WESTERN EUROPE Good momentum in all product lines despite economic uncertainty coming
Slide 20: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q2 © 2015 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 20 are trademarks of Bombardier Recreational Products Inc. or its
Slide 21: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Roadsters Side-by-Side Vehicles Seasonal Products Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY16 Q2 21
Slide 22: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © SECOND QUARTER ENDED JULY 31, 2015 ROTAX © CAN-AM © BRP Inc. - FY16 Q2 © 2015 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 22 are trademarks of Bombardier Recreational Products Inc. or its af
Slide 23: Reconciliation Tables
Reconciliation Tables Three-month periods ended Six-month periods ended CA$ millions Jul. 31, 2015 Jul. 31, 2014 Jul. 31, 2015 Jul. 31, 2014 Net Income (Loss) ($68.3) ($3.6) $14.8 $24.4 Normalized elements: Foreign exchange (gain) loss on long-term debt 71.6 (5.1) 25.6 (17.4) Restructuring costs rev
Slide 24: BRP Inc. - FY16 Q2
Ski-Doo" Lynx" Sea-Doo SRP. Evinrude” Rotax’ Can-Am’ THE ULTIMATE POWERSPORTS EXPERIENCE