Brp, Inc. · TSX:DOO
Brp — Q4 FY22 Earnings Presentation
27 slides from Brp's earnings presentation, Mar 25, 2022
Slide 1: Quarterly Review: Fourth Quarter Ended January 31, 2022
QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 31, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain statements included in this presentation, including, but not limited to, relating to our Fiscal Year 2023 financial guidance (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per share, net
Slide 3: José Boisjoli, President and Chief Executive Officer
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2022 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2022
Slide 4: FY22 Highlights
FY22 Highlights DELIVERED RECORD FINANCIAL RESULTS Strongest revenues and profitability performance in BRP’s history CONTINUED GAINING MARKET SHARES IN THE POWERSPORTS INDUSTRY Gained almost 3pp of market shares in the North American Powersports industry in FY22 SOLID EXECUTION AS WE MANAGED THROUGH
Slide 5: FY22 Financial Highlights
FY22 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ +28% +127% +84% $7,648 $9.31 $9.92 $5,953 $5.39 $4.10 FY21 FY22 FY21 FY22 FY21 FY22 Highlights vs. Last Year ◼ Revenues increased 28% primarily driven by higher wholesale acros
Slide 6: Continued Gaining Market Share in the Powersport Industry in FY22
Continued Gaining Market Share in the Powersport Industry in FY22 Significantly outpaced the Powersports industry since FY16 BRP North American Powersports Market Share Total of SSV, ATV, 3WV, Snowmobiles and PWC FY16 to FY22 Market Share Gains +10pp 30% 25% Slight decline in FY21 due to longer peri
Slide 7: FY22 Q4 Powersports Retail Update
FY22 Q4 Powersports Retail Update North American Powersports Retail Growth by Product Line Powersports Retail Growth by Region[1] FY22 Q4 retail sales in units compared to FY21 Q4 FY22 Q4 retail sales in units compared to FY21 Q4 BRP VS. BRP VS. INDUSTRY INDUSTRY INDUSTRY INDUSTRY TOTAL POWERSPORTS
Slide 8: Modular Design and Diversified Product Portfolio
Modular Design and Diversified Product Portfolio: A competitive advantage that allows us to optimize production and maximize retail Example of component commonality across product lines Benefits GAUGE LINE-UP AVAILABILITY BY PRODUCT LINE Our modular design approach combined with our diversified prod
Slide 9: Consumer Interest for Powersports Not Slowing Down
Consumer Interest for Powersports Not Slowing Down Record level of pre-season customer Many signs pointing to sustained strong deposits for PWC and snowmobiles level of consumer interest in Powersports PWC PRE-SEASON SNOWMOBILE SPRING CUSTOMER CERTIFICATES UNITS BOOKING Sea-Doo Switch and Can-Am ORV
Slide 10: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues up 12% + ◼ Higher volume of ATV and SSV sold + Favourable pricing +12% ◼ Unfavourable product mix Unfavourable Fx variation Retail Sales Update $853.1 SIDE-BY-SIDE ALL-TERRAIN THREE-WHEELED $759.7 North American year
Slide 11: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues up 56% + ◼ Higher volume of snowmobiles and PWC sold + Favourable product mix for snowmobiles +56% + ◼ Favourable pricing for PWC Unfavourable Fx variation Retail Sales Update $1,048.9 North American PERSONAL SNOWMOBILES
Slide 12: Powersports PA&A and OEM Engines / Marine
Powersports PA&A and OEM Engines / Marine Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues up 21% + ◼ Higher volume of PA&A + Favourable pricing +21% ◼ Unfavourable Fx variation ◼ Parts: Revenue up over 20% with strong growth across all pr
Slide 13: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2022 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2022
Slide 14: FY22 Q4 Financial Overview
FY22 Q4 Financial Overview Financial Highlights Q4 Net Income Bridge Q4 Comparison 12-month Comparison CA$ millions FY22 FY21 Change FY22 FY21 Change (120) 278 (51) (9) Total Revenues $2,347.5 $1,815.1 $532.4 $7,647.9 $5,952.9 $1,695.0 (153) Growth +29.3% +28.5% 264 210 Gross Profit $609.5 $501.9 $1
Slide 15: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory FY22 Q4: Inventory Position Overview Dealer Inventory Year-over-Year Bridge Units, Excluding Boats DEALER INVENTORY North America Powersports, Units +21% -60% FY21 Q4 SSV ATV 3WV Snowmobile PWC FY22 Q4 +21% Dealer Inventory Evolution Units, Excluding B
Slide 16: FY23 Full-Year Guidance - as at March 25, 2022
FY23 Full-Year Guidance - as at March 25, 2022 Financial Metric FY22 FY23 Guidance[3] vs FY22 Revenues Year-Round Products $3,467.5 Up 30% to 35% Seasonal Products 2,524.1 Up 22% to 27% Powersports PA&A and OEM Engines 1,143.5 Up 17% to 22% Marine 512.8 Up 12% to 17% Total Company Revenues $7,647.9
Slide 17: Normalized EBITDA Margin Evolution
Normalized EBITDA Margin[1] Evolution Normalized EBITDA Margin[1] Evolution from FY20 to FY22 Normalized EBITDA Margin[1] Evolution from FY22 to FY23 Normalized EBITDA[1] as a percentage of Revenues Normalized EBITDA[1] as a percentage of Revenues 19.1% 19.1% Down ~190 to 210bps 13.3% FY20 FY22 FY22
Slide 18: FY23 Guidance – Normalized EBITDA by Half Year
FY23 Guidance – Normalized EBITDA[1] by Half Year Normalized EBITDA[1] Contribution by Half Year Normalized EBITDA[1] Impact: FY23 vs FY22 First Half of the Year First Half Contribution Second Half Contribution Continued strong demand across all product lines Initial shipments of the Sea-Doo Switch
Slide 19: Continuing to Provide Attractive Return of Capital to our Shareholders
Continuing to Provide Attractive Return of Capital to our Shareholders Well positioned to continue returning Returned over $2.3B of capital to shareholders since FY16 capital to shareholders in FY23 RETURN OF CAPITAL Announced the launch of a $250M TO SHAREHOLDERS $CA millions, Total of dividend and
Slide 20: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2022 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2022
Slide 21: Can-Am Re-Entering the 2-Wheel Market
Can-Am Re-Entering the 2-Wheel Market EXPANDING OUR ADDRESSABLE MARKET Tackling the largest Global Powersports industry INITIAL MODELS TO ADDRESS ~40% OF THE NORTH AMERICAN AND EUROPEAN INDUSTRY First family of products planned to be introduced in 2024, addressing segments representing ~600,000 unit
Slide 22: Conclusion
Conclusion EXPECTING CONTINUED GROWTH IN FY23 WITH RECORD NORMALIZED EPS - DILUTED[1] BETWEEN $10.75 AND $11.10 › Expecting sustained strong consumer interest in Powersports and Marine, and market share gains driven by our industry-leading product portfolio and another exciting year of new product i
Slide 23: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2022 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2022
Slide 24: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANAURY 31,2018 2022 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2022
Slide 25: Reconciliation Tables
Reconciliation Tables Three-month periods ended Twelve-month periods ended CA$ millions Jan. 31, 2022 Jan. 31, 2021 Jan. 31, 2022 Jan. 31, 2021 Net Income/(Loss) $209.6 $264.2 $794.6 $362.9 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and Lease Liabilities 48.4 (103.0) (13.3)
Slide 26: Appendix - Continued: Non-IFRS Measures
Appendix - Continued Non-IFRS Measures Normalized revenues is defined as revenues before normalized elements. Normalized gross profit is defined as gross profit before normalized elements. Normalized EBITDA is defined as net income before financing costs, financing income, income tax expense (recove
Slide 27: Ski-Doo
Ski-Doo Lynx Sea-Doo Can-Am Rotax Alumacraft Manitou FT) ADVENTURE BY DESIGN Quintrex