Brp, Inc. · TSX:DOO
Brp — Q4 FY2021 Earnings Presentation
28 slides from Brp's earnings presentation, Mar 25, 2021
Slide 1: Quarterly Review: Fourth Quarter Ended January 31, 2021
QUARTERLY REVIEW FOURTH QUARTER ENDED JANUARY 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 CEO
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2021 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2021
Slide 4: FY21 Highlights
FY21 Highlights › Proactively managed the Covid situation to protect our employees, preserve our financial flexibility and prepare for the rebound ▪ Put in place measures to ensure the health and safety of our employees and limit COVID-19 potential impact on our business ▪ Agile management of our li
Slide 5: FY21 Financial Highlights
FY21 Financial Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ -2% +4% +41% $5.39 $6,053 $5,953 $4.10 $3.96 $3.83 FY20 FY21 FY20 FY21 FY20 FY21 Highlights vs. Last Year ◼ Revenues declined 2% primarily due to temporary suspension of produc
Slide 6: Delivered Robust Retail growth in FY21
Delivered Robust Retail growth in FY21 Robust Powersports Retail Growth Strong consumer demand across all our Powersports product lines North American BRP Powersports Retail Growth North American BRP Powersports Retail Growth Percentage of retail increase in FY21 vs FY20 based on units Percentage of
Slide 7: FY21 Q4: The Solid Retail Performance Continued in the Fourth Quarter
FY21 Q4: The Solid Retail Performance Continued in the Fourth Quarter [1] BRP INDUSTRY[3] NORTH AMERICA 30% ABOUT THIRTY % NORTH AMERICA EXCL. SNOWMOBILE 41% MID- THIRTY % LATIN AMERICA[2] 9% NOT AVAILABLE EMEA 11% MID-SINGLE DIGIT % ASIA-PACIFIC 20% MID- TEEN % [1]Powersports products retail [2]Bas
Slide 8: FY21 Q4: Strong Retail Growth across the Powersports Product Portfolio in North America
FY21 Q4: Strong Retail Growth across the Powersports Product Portfolio in North America North American Powersports Retail Growth by Product Line FY21 Q4 compared to FY20 Q4 BRP VS. GROWTH DECLINE BRP INDUSTRY INDUSTRY ABOUT TOTAL POWERSPORTS 30% THIRTY % MID- POWERSPORTS EXCL. SNOWMOBILE 41% THIRTY
Slide 9: Inventory Replenishment: Ramping-up Production and Adding Capacity
Inventory Replenishment: Ramping-up Production and Adding Capacity Ramping-up production to replenish our dealer network Additional capacity coming up in inventory which remains at a low level due to the continued FY22 H2 to support our growth strong retail demand RAMPED-UP PRODUCTION Juarez 3: New
Slide 10: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products FY21 Q4 revenues up 8% ◼ Revenues increase primarily driven by a favourable product mix in SSV and lower sales +8% programs due to a strong retail environment ◼ Partially offset by a lower volume of 3WV due to a change in produ
Slide 11: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products FY21 Q4 revenues up 24% ◼ Revenues increase primarily driven by a higher volume of snowmobile and PWC +24% sold, by lower sales programs due to a strong retail environment, and by favourable pricing, partially offset by unfavourabl
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 FY21 Q4 revenues up 19% ◼ Revenues increase mainly attributable to a higher volume of PA&A for SSV, ATV and +19% snowmobile coming from strong unit retail sale
Slide 13: José Boisjoli and Sébastien Martel
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2021 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2021
Slide 14: FY21 Q4: Financial Highlights
FY21 Q4: Financial Highlights Q4 Comparison 12-month Comparison CA$ millions FY21 FY20 Growth FY21 FY20 Growth Revenues $1,815.1 $1,615.9 +12.3% $5,952.9 $6,052.7 (1.6%) Gross Profit Margin 27.7% 23.7% +400bps 24.7% 24.0% +70bps Operating Income $249.1 $197.4 +26.2% $465.6 $604.3 (23.0%) Net Income
Slide 15: FY21 Gross Profit Margin Review
FY21 Gross Profit Margin Review FY21 Gross Profit Margin and Normalized Gross Profit Margin[1] Bridge CA$ millions Primarily Evinrude Wind Down costs (1.3%) (1.2%) +4.4% (0.5%) +1.2% (0.7%) 25.9% 24.7% 24.0% FY20 Volume, Mix, Production Costs Evinrude Fixed Costs Foreign FY21 Normalized FY21 Gross P
Slide 16: BRP Yard and North American Powersports Dealer Inventory
BRP Yard and North American Powersports Dealer Inventory FY21 Q4: Inventory Position Overview Dealer Inventory Year-over-Year Bridge Units, Excluding Boats DEALER INVENTORY YARD INVENTORY North America Powersports, Units Finished Products, $CA millions -67% -38% -67% FY20 Q4 SSV ATV 3WV Snowmobile P
Slide 17: FY22 Full-Year Guidance: Context
FY22 Full-Year Guidance: Context › Expecting solid revenue growth driven by continued robust demand and inventory replenishment ▪ Forecasting growth across all product lines ▪ Stronger growth expected in FY22 H1 as we are lapping two months where our sites were temporary shut down in FY21 (April and
Slide 18: FY22 Full-Year Guidance - as at March 25, 2021
FY22 Full-Year Guidance - as at March 25, 2021 Financial Metric FY21 FY22 Guidance[3] vs FY21 Revenues Year-Round Products $2,824.2 Up 35% to 40% Seasonal Products 1,825.0 Up 20% to 25% Powersports PA&A and OEM Engines 882.8 Up 10% to 15% Marine 420.9 Up 18% to 23% Total Company Revenues 5,952.9 Up
Slide 19: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2021 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2021
Slide 20: To Introduce Electric Models for each of our Product Lines by the end of 2026
To Introduce Electric Models for each of our Product Lines by the end of 2026 › Continuing our journey into the electrification of our product lines ▪ Already successful in the electric kart market: Rotax-powered electric karts are racing across Europe ▪ Acquired assets from Alta Motors › Accelerati
Slide 21: FY22 Key Priorities
FY22 Key Priorities › Sustain our momentum: Solid start of the year in FY22 ▪ Continued exceptional retail demand across all product lines early in FY22 ▪ Very promising early signs for summer products ▪ Well executed snowmobile and Can-Am product launches driving momentum with dealers and consumers
Slide 22: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2021 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2021
Slide 23: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECONDQUARTER FOURTH QUARTER ENDED ENDED JULY 31, JANUARY 31,2018 2021 QUARTERLY REVIEW Fourth Quarter Ended January 31, 2021
Slide 24: FY21 Net Income and Normalized Net Income Bridge
[1] FY21 Net Income and Normalized Net Income Bridge Net Income Bridge Normalized Net Income[1] Bridge CA$ millions CA$ millions (33) (33) (47) (48) 181 113 (40) 181 (37) (28) 264 163 118 100 FY20 Q4 Volume, Mix, Production Costs Operating Gain on Net Financing Foreign Exchange FY21 Q4 FY20 Q4 Volum
Slide 25: Reconciliation Tables
Reconciliation Tables Three-month periods ended 12-month periods ended CA$ millions Jan. 31, 2021 Jan. 31, 2020 Jan. 31, 2021 Jan. 31, 2020 Net Income $264.2 $118.2 $362.9 $370.6 Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and Lease Liabilities (103.0) 9.9 (121.8) 10.4 Transa
Slide 26: Reconciliation Tables
Reconciliation Tables Three-month periods ended 12-month periods ended CA$ millions Jan. 31, 2021 Jan. 31, 2020 Jan. 31, 2021 Jan. 31, 2020 Revenues $1,815.1 $1,615.9 $5,952.9 $6,052.7 Evinrude Outboard Engine Wind-Down[2] (9.6) - 31.9 - Normalized Revenues[1] 1,805.5 1,615.9 5,984.8 6,052.7 Gross P
Slide 27: Non-IFRS Measures
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 (recovery), depreciation exp
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