Slide 1: Quarterly Review Third Quarter Ended October 31, 2021
QUARTERLY REVIEW THIRD QUARTER ENDED OCTOBER 31, 2021
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 2022 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 SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2021 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2021
Slide 4: Strong execution positioning us well to deliver our guidance for the year
Strong execution positioning us well to deliver our guidance for the year CONSUMER DEMAND REMAINS STRONG ACROSS ALL PRODUCT LINES Registering record high pre-season consumer certificates for Sea-Doo PWC and Pontoon, and strong levels of pre-sold units for Can-Am ORV CONTINUED GAINING MARKET SHARES I
Slide 5: FY22 Q3 Highlights
FY22 Q3 Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ -5% -31% -31% $1 675 $1 588 $2,22 $2,13 $1,53 $1,48 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 Highlights vs. Last Year ◼ Revenues decreased 5% due to supply chain constraints ◼
Slide 6: FY22: Solid Year-to-Date Results
FY22: Solid Year-to-Date Results CA$ millions, except per share amounts Q3 YTD RESULTS FY22 GUIDANCE[2] VS FY21 FY22 $5 300,4 +28% Up 25% to 30% FY21 $4 137,8 REVENUES FY20 $4 436,8 FY22 GROWTH OVER FY21 FY19 $3 737,9 FY22 $1 045,7 +52% Up 38% to 47% FY21 $685,9 NORMALIZED EBITDA[1] FY20 $582,6 FY22
Slide 7: FY22 Q3 Retail Sales Limited by Low Network Inventory and Supply Chain Disruptions
FY22 Q3 Retail Sales Limited by Low Network Inventory and Supply Chain Disruptions North American Powersports FY22 Q3 North American Powersports Retail Growth Network Inventory Excluding Snowmobiles VS. Previous Years VS. FY21 Q3 VS. FY20 Q3 Units Units Units INDUSTRY INDUSTRY -74% +1% -44% -12% LOW
Slide 8: FY22 Q3 Powersports Retail Update
FY22 Q3 Powersports Retail Update Powersports Retail Growth by Region[1] North American Powersports Retail Growth by Product Line FY22 Q3 retail sales in units compared to FY21 Q3 FY22 Q3 retail sales in units compared to FY21 Q3 BRP VS. BRP VS. INDUSTRY INDUSTRY INDUSTRY INDUSTRY NORTH AMERICA TOTA
Slide 9: Sustained Strong Consumer Interest for Powersports
Sustained Strong Consumer Interest for Powersports CONTINUED STRONG INFLUX OF NEW ENTRANTS ▪ ~36% of new entrants year-to-date, in-line with last year and well above annual historical average of ~20% WEBSITE TRAFFIC REMAINS ELEVATED ▪ Can-Am ORV website traffic close to 60% higher in October vs. pre
Slide 10: Sea-Doo Switch: Off to a Great Start
Sea-Doo Switch: Off to a Great Start FAVOURABLE INDUSTRY DYNAMIC With ~30% of the Powerboat industry[1] and growing at an ~8% CAGR over the past 5 years[2], Pontoons represent one of the largest and fastest growing segment in the boating industry “ Regardless of which Sea-Doo Switch you opt for, you
Slide 11: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues down 8% ◼ Lower volume due to supply chain disruptions + Favourable product mix -8% + ◼ Favourable pricing for SSV and ATV Unfavourable Fx variation Retail Sales Update SIDE-BY-SIDE ALL-TERRAIN THREE-WHEELED $803,0 $
Slide 12: 3WV Season 2021 Highlights
3WV Season 2021 Highlights CONTINUED STRONG MOMENTUM WITH RYKER CONTINUED TO ATTRACT A YOUNGER TRIPLED OUR ANNUAL RETAIL SALES IN NORTH THE RIDER EDUCATION PROGRAM AND MORE DIVERSE CONSUMER BASE[1] AMERICA SINCE THE RYKER INTRODUCTION NEW UNDER THE DIVERSE WOMEN ENTRANTS AGE OF 55 COMMUNITIES 55% 38
Slide 13: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues down 14% ◼ Lower volume due to supply chain disruptions + Favourable product mix for PWC -14% + ◼ Favourable pricing for snowmobiles and PWC Unfavourable Fx variation Retail Sales Update $508,3 $437,3 PERSONAL North Amer
Slide 14: Powersports PA&A and OEM Engines
Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Powersports PA&A and OEM Engines | Revenues up 9% + ◼ Higher volume of PA&A + Favourable pricing +9% ◼ Unfavourable Fx variation ◼ Parts: Revenue up over 10% for SSV and 3WV driven by the growth in the number of units in use $259,7 $2
Slide 15: Marine
Marine Highlights Revenues CA$ millions Marine | Revenues up 26% + ◼ Higher volume of boats sold + Lower sales programs +26% ◼ Unfavourable Fx variation Retail Sales Update $130,7 $103,7 Local market year-over-year retail growth Quarterly BRP ABOUT 40% LOW-SINGLE DIGIT % LOW-TEEN % FY21 Q3 FY22 Q3 Y
Slide 16: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2021 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2021
Slide 17: FY22 Q3 Financial Overview
FY22 Q3 Financial Overview Financial Highlights Net Income Bridge Q3 Comparison 9-month Comparison (6) CA$ millions FY22 FY21 Change FY22 FY21 Change (79) 11 Total Revenues $1,588.0 $1,674.7 ($86.7) $5,300.4 $4,137.8 $1,162.6 (24) 27 199 Growth -5.2% +28.1% 128 Gross Profit $410.6 $486.9 ($76.3) $1,
Slide 18: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory FY22 Q3: Inventory Position Overview Dealer Inventory Year-over-Year Bridge Units, Excluding Boats DEALER INVENTORY North America Powersports, Units -44% -74% -44% FY21 Q3 SSV ATV 3WV Snowmobile PWC FY22 Q3 Dealer Inventory Evolution Units, Excluding B
Slide 19: FY22 Full-Year Guidance: Context
FY22 Full-Year Guidance: Context › Revenues slightly adjusted to reflect the impact of supply chain pressures ▪ Year-Round Products revenues guidance adjusted as a result of lower wholesales due to supply chain constraints, and adjustment in the timing of 3WV production which is expected to be more
Slide 20: FY22 Full-Year Guidance - as at December 1, 2021
FY22 Full-Year Guidance - as at December 1, 2021 Financial Metric FY21 FY22 Guidance[3] vs FY21 Revenues vs. Previous Guidance Year-Round Products $2,824.2 Up 25% to 30% (previously “Up 33% to 40%”) Seasonal Products 1,825.0 Up 30% to 35% (previously “Up 25% to 35%”) Powersports PA&A and OEM Engines
Slide 21: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2021 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2021
Slide 22: Closing Remarks
Closing Remarks EXPECTING TO END THE YEAR ON A STRONG NOTE WITH A SOLID Q4 Guidance calls for an expected all-time high quarter in terms of revenues to wrap-up a record year with Normalized EPS[1] growth of 67% to 81% over FY21 WELL-POSITIONED TO DELIVER ANOTHER STRONG YEAR IN FY23 Solid setup for c
Slide 23: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2021 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2021
Slide 24: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND THIRD QUARTER QUARTER ENDED ENDED JULY31, OCTOBER 31,2021 2018 QUARTERLY REVIEW Third Quarter Ended October 31, 2021
Slide 25: Reconciliation Tables
Reconciliation Tables Three-month periods ended Nine-month periods ended CA$ millions Oct. 31, 2021 Oct. 31, 2020 Oct. 31, 2021 Oct. 31, 2020 Oct. 31, 2019 Oct. 31, 2018 Net Income/(Loss) $127.7 $198.7 $585.0 $98.7 $252.4 $144.6 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and
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
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