Slide 1: Quarterly Review: Fourth Quarter Ended January 31, 2018
QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information included in this presentation, including, but not limited to, statements relating to our Fiscal Year 2019 financial outlook (including revenues, gross profit margin, operating expenses, Normalized EBITDA, Effective Tax Rate, Normalized net income and No
Slide 3: José Boisjoli, President & Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT & CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2018 BRP Inc. | FY18Q4 3
Slide 4: FY18 Revenues, EPS and Normalized EPS
FY18 Revenues, EPS and Normalized EPS[1] Revenues EPS - Diluted Normalized EPS - Diluted[1] CA$ millions CA$ CA$ 8% 12% 21% $4,487 $2.54 $2.27 $2.38 $4,172 $1.96 FY17 FY18 FY17 FY18 FY17 FY18 Highlights vs. Year Ago Record revenues and normalized Normalized net Income[1][1] Netincome Increase of
Slide 5: Strong Worldwide Powersports Retail Momentum
Strong Worldwide Powersports Retail Momentum FY18 Retail Growth NORTH AMERICA LATIN AMERICA EMEA ASIA-PACIFIC BRP 11% BRP 37% BRP 5% BRP 8% Industry Flat Industry Not Available Industry 8% Industry 6% [2] We outpaced the industry in all regions BRP Inc. | FY18Q4 5
Slide 6: Strategic Priorities Update
Strategic Priorities Update GROWTH AGILITY LEAN ENTERPRISE Accelerate growth Implement a more flexible Relentless pursuit of EPS supply chain to improve improvement through Create a strong pipeline of consumer experience and organizational excellence and new growth opportunities reduce working capit
Slide 7: Key Manufacturing Initiatives Update
Key Manufacturing Initiatives Update KEY INITIATIVES Valcourt, Canada VALCOURT: NEW ASSEMBLY LINE Photo Valcourt to come PROJECT STATUS: COMPLETED START OF PRODUCTION: STARTED IN DECEMBER 2017 Queretaro, Mexico QUERETARO CAPACITY EXPANSION PROJECT STATUS: ON PLAN START OF PRODUCTION: RAMP-UP PLANNED
Slide 8: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Revenue increase of 2%: 2% Mainly driven by a higher volume of SSV and Spyder vehicules sold, partially offset by an unfavourable product mix and foreign exchange rate variation $527.3 $538.8 Off-Road Vehicles Seven months into the 2018
Slide 9: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Revenue decrease of 9%: 9% Mainly driven by a lower volume of snowmobiles sold resulting from the late introduction of the new snowmobile platform last year, and an unfavourable foreign exchange rate variation, $489.5 $443.3 Partially off
Slide 10: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Revenue decrease of 19%: 19% Mainly attributable to a lower volume of motorcycle engines sold and to a lower wholesale of outboard engines $111.5 Outboard Engines $90.2 Seven months into the 2018 season, the North American outboard engin
Slide 11: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Revenue increase of 8%: 8% Mainly attributable to a higher volume of SSV accessories sold due to the popularity of the Can-Am Maverick X3 and Defender, and the recently introduced Can-Am Maverick Trail model $177.0 $190.9 FY17
Slide 12: Sébastien Martel, Chief Financial Officer
SÉBASTIEN MARTEL CHIEF FINANCIAL OFFICER QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2018 BRP Inc. | FY18Q4 12
Slide 13: FY18 Q4 - Financial Highlights
FY18 Q4 - Financial Highlights Q4 comparison 12-month comparison CA$ millions FY18 FY17 Change FY18 FY17 Change Total Revenues $1,263.2 $1,305.3 ($42.1) $4,486.9 $4,171.5 $315.4 Growth -3.2% +7.6% Gross Profit $317.2 $335.6 ($18.4) $1,067.5 $1,008.9 $58.6 As a % of revenues 25.1% 25.7% 23.8% 24.2% O
Slide 14: FY18 Q4 - Normalized Net Income Bridge
FY18 Q4 - Normalized Net Income[1] Bridge CA$ millions (4) (7) (5) 3 112 99 FY17 Q4 Volume, Mix, Production Costs Depreciation Foreign Exchange FY18 Q4 Pricing and and Operating Expenses Rates Sales Programs [1] See “Non-IFRS Measures” section in appendix BRP Inc. | FY18Q4 14
Slide 15: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory[1] ended FY18 Q4 up 4% from FY17 Q4 level Increase primarily driven by: Q1 Q2 Q3 Q4 Continued strong demand for the Can-Am FY16 FY17 FY18 Maverick X3 and the Can-Am Defender
Slide 16: Changes to Accounting Standards
Changes to Accounting Standards Adoption of IFRS 15 and IFRS 9 Recording of retail sales programs Impact Current: Recorded at the latest of the program announcement and the wholesale dates (usually at the program announcement date). Will record sales IFRS 15 New: Will record estimated retail sal
Slide 17: Impact of the Adoption of IFRS 15 and IFRS 9
Impact of the Adoption of IFRS 15 and IFRS 9 Adoption FY18 FY18 Impact CA$ millions Old GAAP IFRS 15 & 9 New GAAP[1] Revenues by category Year-Round Products $1,829.5 ($18.7) $1,810.8 Seasonal Products 1,560.1 (6.1) 1,554.0 Propulsion Systems 394.7 (8.8) 385.9 PAC 702.6 - 702.6 Total Revenues 4,486.
Slide 18: FY19 Full-Year Guidance - as at March 21, 2018
FY19 Full-Year Guidance - as at March 21, 2018 The table below sets forth BRP’s financial guidance for Fiscal Year 2019 when compared to actual results for Fiscal Year 2018, as revised to reflect the adoption of new IFRS 9 Financial instruments (“IFRS 9”) and IFRS 15 Revenue from contracts with cust
Slide 19: FY19 Guidance - Normalized EBITDA by Half Year
FY19 Guidance - Normalized EBITDA[1] by Half Year Normalized EBITDA[1] by Half Year As a percentage of full fiscal year normalized EBITDA[1] First Half Contribution Second Half Contribution FY18 OLD GAAP FY18 NEW GAAP[2] FY19 100% 50% 50% 100% Normalized EBITDA[1] Impact: FY18 New GAAP[2] vs. FY18 O
Slide 20: Closing Remarks
CLOSING REMARKS SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER ENDED JANUARY 31, 2018 ROTAX © CAN-AM © BRP Inc. | FY18Q4 © 2018 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.
Slide 21: Q&A Period
Q&A PERIOD SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER ENDED JANUARY 31, 2018 ROTAX © CAN-AM © BRP Inc. | FY18Q4 © 2018 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 21 are trademarks of Bombardier Recreational Products Inc. or it
Slide 22: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Year-Round Products All-Terrain Vehicles Side-by-Side Vehicles Spyder Vehicles Seasonal Products Ski-Doo Snowmobiles Lynx Snowmobiles Personal Watercraft Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brand
Slide 23: Appendix
APPENDIX SKI-DOO © LYNX © SEA-DOO QUARTERLY REVIEW EVINRUDE © © FOURTH QUARTER ENDED JANUARY 31, 2018 ROTAX © CAN-AM © BRP Inc. | FY18Q4 © 2018 BRP all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo 23 are trademarks of Bombardier Recreational Products Inc. or its
Slide 24: Reconciliation Tables
Reconciliation Tables Three-month periods ended 12-month periods ended CA$ millions Jan. 31, 2018 Jan. 31, 2017 Jan. 31, 2018 Jan. 31, 2017 Net Income $115.1 $136.4 $274.5 $257.0 Normalized elements: Foreign exchange (gain) loss on long-term debt (46.2) (25.3) (51.9) (82.0) Restructuring and related
Slide 25: BRP Inc. | FY18Q4
BRP, Skidoo LYWx seees00. EVINRUDE ROTAX yy y cw