Slide 1: Quarterly Review
QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30 30, 2014
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 CEO
JOSÉ BOISJOLI CEO QUARTERLY REVIEW Q FIRST QUARTER ENDED APRIL 30, 2014 BRP Inc. - FY15 Q1 3
Slide 4: FY15 Q1 Revenues and Normalized EBITDA
FY15 Q1 Revenues and Normalized EBITDA Revenues Normalized EBITDA CA$ millions CA$ millions 6% 47% $107,8 $804,3 $758,6 $56,6 FY14 Q1 FY15 Q1 FY14 Q1 FY15 Q1 Financial Fi i l Highlights Hi hli ht Financial Record revenues, results in-line exceeding with the the Q1$3outlook billiongiven markinfor M
Slide 5: FY15 Q1 Business Highlights
FY15 Q1 Business Highlights North With strong FY14 Q4 snowmobile retail and harsh winter weather in the first quarter, BRP retail sales for both Seasonal Products and Year-Round Products in aggregate were flat America for the three-month three month period ended April 30 30, 2014 vs the same perio
Slide 6: Second ORV Manufacturing Facility in Juarez
Second ORV Manufacturing Facility in Juarez Manufacturing Strategy Maintain production levels in our centres of excellence (Valcourt (Valcourt, Sturtevant, Rovaniemi and Gunskirchen) Capitalise on better cost countries to absorb volume growth Why Juarez? Needed additional capacity to support t
Slide 7: Seasonal Products
Seasonal Products Revenues Business Dynamics CA$ millions Snowmobile 11% N.A. industry retail closed 2014 season with low- t teens % growthth BRP reinforced its worldwide #1 position and ended $206,7 the season with its lowest network inventory level in $184,6 over 10 years Strong dealer booki
Slide 8: Snowmobile Model Year 15
Snowmobile Model Year 15 Renegade XRS Summit X - T3 Package 174 in The most specialized crossover sled 174 in. track length (longest ever offered) Reinforced chassis, wide running boards, and bottomless 3 in. track lugs (tallest ever offered) KYB Pro 40 piggyback racing shocks Longer chain
Slide 9: Year-Round Products
Year-Round Products Revenues Business Dynamics CA$ millions Difficult comparable in Q1 due to Maverick introduction last year, but long-term fundamentals 10% looking strong $404,7 Off-Road Vehicles $365,4 SSV season-to-date N.A. industry up mid-teens digits Can-Am SSV retail growing faster than di
Slide 10: New Outlander L Introduced on May 1st, 2014
New Outlander L Introduced on May 1st, 2014 Water New offering in the mid-cc category, the resistant rear Available with storage largest and fastest growing segment in the MAX package (10.9L capacity) (2up) industry N.A. ATV Industry by cc 600cc Can-Am was under- and up represented in the mid-cc c
Slide 11: Propulsion Systems
Propulsion Systems Revenues Business Dynamics CA$ millions Outboard Engines 5% Season-to-date N.A. industry retail up low-single di it driven digits, di b by new b boats t sales l and d growth th iin salt lt water markets $92,9 $97,3 BRP underperformed the industry with a slight market share los
Slide 12: Parts, Accessories and Clothing
Parts, Accessories and Clothing Revenues Business Dynamics CA$ millions Parts, Accessories and Clothing 11% Growth primarily driven by snowmobile due to better winter i t conditions diti iin N North th A America i Excellent take rate on Sea-Doo Spark accessories $111,3 generating higher dealer p
Slide 13: New Joint Venture Signed with Smooth Marine for the Chinese Market
New Joint Venture Signed with Smooth Marine for the Chinese Market BRP / Smooth Marine Joint Venture Signed on May 26, 26 2014 Majority ownership stake for BRP Effective February 1, 2015 The objective j of the jjoint venture is to accelerate the development of BRP’s presence in China with th
Slide 14: Sébastien Martel CFO
SÉBASTIEN MARTEL CFO QUARTERLY REVIEW Q FIRST QUARTER ENDED APRIL 30, 2014 BRP Inc. - FY15 Q1 14
Slide 15: FY15 Q1 - Financial Highlights
FY15 Q1 - Financial Highlights 3-month comparison CA$ millions FY15 Q1 FY14 Q1 Change 1 Total Revenues $758 6 $758.6 $804 3 $804.3 ($45 7) ($45.7) Growth (5.7%) Gross Profit $173.4 $218.0 ($44.6) As a % of revenues 22.9% 27.1% Operating Income $28.4 $86.1 ($57.7) As a % of revenues 3.7% 10.7% Normal
Slide 16: FY15 Q1 - Revenues by Product Category and Geography
FY15 Q1 - Revenues by Product Category and Geography Revenues by Product Category Revenues by Geography CA$ millions CA$ millions 6% 6% $804,3 $804,3 $758,6 $758,6 $100,0 , PAC $111,3 +11% $246,4 $92,9 International Propulsion $256,2 +4% Systems $97,3 +5% $145,0 Canada $126,8 -13% $404,7 Year-Round
Slide 17: Normalized Net Income Bridge
Normalized Net Income Bridge CA$ millions ($37) $53 ($8) $15 $17 ($6) FY14 Q1 Volume, Mix and Production Costs and Depreciation Net Financing Costs, FY15 Q1 Pricing Operating Expenses Income Tax Expense and Foreign Exchange BRP Inc. - FY15 Q1 17
Slide 18: FY15 Q1 - Financial Position and Liquidity Profile
FY15 Q1 - Financial Position and Liquidity Profile As at Apr. 30 As at Jan. 31 CA$ C $ millions o s 2014 2014 Change Cash $76.9 $75.4 $1.5 Net working capital 102.9 97.1 5.8 Revolving credit facilities - 10.5 (10.5) Long term debt 895.1 889.9 5.2 3-month comparison CA$ millions FY15 FY14 Change Capi
Slide 19: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory North American Dealer Inventory Level Units, Excluding Outboard Engines Dealer inventory ended FY15 Q1 down 5% from FY14 Q1 Seasonal Products Mostly explained by very low level of snowmobile inventory (lowest in over 10 years) Year-Round Products S
Slide 20: FY15 Full-Year Guidance - as at June 12, 2014
FY15 Full-Year Guidance - as at June 12, 2014 Financial Metric FY15 Guidance vs FY14 No change unless otherwise noted Revenues Seasonal Products Up 9% to 13% (increased from up 5% to 10%) Year-Round Products Up 9% to 13% (lowered from up 12% to 15%) Propulsion Systems Up 7% to 10% PAC Up 10% to 15%
Slide 21: Closing Remarks
SKI-DOO SKI DOO CLOSING REMARKS © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW Q © CAN-AM © FIRST QUARTER ENDED APRIL 30, 2014 BRP Inc. - FY15 Q1 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 21 logo are trademarks of Bombardier Recreational Pr
Slide 22: Strategic Initiatives
Strategic Initiatives Continue Focus on Product Innovation G Grow Revenues R from f Y Year-Round R d Products P d t Expand North American Dealer Network Grow International Product Sales Drive Margin Increases BRP Inc. - FY15 Q1 22
Slide 23: Q&A Period
SKI-DOO SKI DOO Q&A Period © LYNX© SEA-DOO © EVINRUDE © ROTAX QUARTERLY REVIEW Q © CAN-AM © FIRST QUARTER ENDED APRIL 30, 2014 BRP Inc. - FY15 Q1 © 2014 BRP Inc. all rights reserved. Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP 23 logo are trademarks of Bombardier Recreational Product
Slide 24: Global Leader in Powersports Vehicles and Engines
Global Leader in Powersports Vehicles and Engines Seasonal Products Snowmobiles Personal Watercraft Year-Round Products All-Terrain Vehicles Recreational Roadsters Side-by-Side Vehicles Propulsion Systems Outboard OEM Engines Engines Diversified Product Portfolio AND Powerful Brands BRP Inc. - FY15
Slide 25: Presentation Title
Presentation Title 25 Date: YYYY-MM-DD