BRP Annual Report 2020 | Quarterlytics

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FY2020 Annual Report · BRP

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B L A Z I N G
O U R O W N
T R A I L

2020 ANNUAL REVIEW

For the year ended January 31, 2020

Our people are informed optimists who see the

world as one big opportunity, with no boundaries to

the road or their ambitions. Whenever there’s an

opportunity to be outdoors exploring and connecting

with our passionate community, they take it. As

navigators, they always find a way to overcome any

barrier. This mentality allows them to naturally lead,

which is displayed in both work and play.

O U R V A L U E S

They make our culture unique, inform how we act, and drive what we make.

PASSION, to keep moving – Passion informs everything we do and is an integral part of
every value we have. If it’s not done with passion, it’s not BRP. It’s passion you can feel.

DRIVE, to deliver on our commitments – We say what we do. We do what we say. No excuses.
Only sheer determination. Relentless drive and love of the ride push us ahead. While we
live for the ride, we always arrive at destination.

INGENUITY, to defy conventions – We’re not afraid to see things differently. Constant
curiosity makes us the first to uncover new solutions. We question. We innovate.
We progress. Relentlessly.

TRUST, to build strong partnerships – We take care of our people like family. We act with
integrity. People can count on us like we count on them. It’s that simple.

BRP – 2020 ANNUAL REVIEWOur five-year strategic plan ended on a high note with FY2020 as we exceeded
our own targets and proved once again our leadership in our sectors of activity.
FY2021 kicked off almost immediately into a new era of uncertainty with the
global COVID-19 crisis, an event of unforeseeable consequences. Yet BRP is
well-placed to manage through it and beyond, in part because of our strong
starting point.

In FY2016, when we began Challenge 2020, we set financial targets of $6 billion
in revenue and $3.50 in normalized earnings per share. By focusing on our
strategic pillars of Growth, Agility and Lean Enterprise, we were able to reach our
objectives a full year in advance. In November 2019, we launched Mission ‘25,
our next long-range strategic plan, the pillars of which will be guideposts for
the months and years to come.

Letter to shareholders for the year ended
January 31, 2020 – José Boisjoli

B L A Z I N G
O U R O W N
T R A I L

BRP – 2020 ANNUAL REVIEW ACHIEVING CHALLENGE 2020 AHEAD OF TIME
Reaching the Challenge 2020 target came from a balance
of incremental growth, smart initiatives and game-changing
innovations. To deliver 10% annual revenue growth and
15% annual profit growth, we enlarged and rethought our
operations around the world. We sharpened our competitive
edge with a strategy that combined product know-how with
stronger and more agile manufacturing, and proximity to
our key markets.

The modernization of our factories in Valcourt and
Gunskirchen was completed in FY2020. More than just
upgrading our infrastructure, we essentially rewrote the
rules on how we work, from team composition and training,
all the way to the integration of a best-in-class modular
approach to manufacturing. We also completed the second
phase of our Juarez 2 expansion during FY2020 and the
site smoothly moved to increased capacity within weeks.

Modular design means we are even more efficient by
increasing our engineering and manufacturing agility and
flexibility, improving our ability to respond to consumer
demand. Combined with our rigorous product planning
and development process that puts the consumer at the
heart of everything we do, this is central to delivering a
targeted line-up of new products.

We disrupted the side-by-side vehicle industry by respecting
a bold commitment of one new platform every six months
for four years and establishing our first $1 billion+ product
line. We reinvented the way we design and market entry-
level products, simplifying SKUs while allowing customization
at the dealership and creating winning solutions with the
Sea-Doo Spark and the Can-Am Ryker. We developed a
strategy to create a unified ecosystem for accessories with
an innovative and easy-to-use product line-up. This grew
our accessories line by six times and represented 75%
growth in revenue over the past four years.

In 2018, we began the first phase of an ambitious strategy
to transform the marine industry in the same way we have
done for powersports. The initial phase of our Buy-Build-
Transform strategy was completed in FY2020, with the
acquisition of a third boat company – Telwater, in Australia
– and the integration of our first two boat companies. We are
currently in the second phase, Build, and are redesigning our
entire portfolio of boats to be a true marine innovator. This
is a mid- to long-term strategy and by remaining true to this
vision, even with the changes precipitated by the impact of
COVID-19 this year, we believe that we can be a leader in
the marine industry.

In 2019, we also celebrated 50 years of our Design and
Innovation (D&I) team, the first department of its type in our
industry and without a doubt, the most creative and ingenious.

To truly win the hearts and minds of our consumers, we also
continued to emphasize our desired lifestyle approach to
our marketing. We know that our products are popular with
a wide range of consumers, but it is the experiences they
generate that really resonate and bring them back. This
emphasis in our marketing on the adventures our products
allow and the experiences they create deepens our connection
to our community of riders, some of the most loyal in the
industry. For the dealer, we offer not only a portfolio of
iconic brands but a best-in-class dealer value proposition.
New dealer agreements, including primary market areas (PMA)
and certifications, supported by a more flexible ordering
system and attractive incentive programs, comprise a
complete ecosystem that improves margins to the dealer
and makes us their OEM of choice.

Our year-over-year growth could not have been achieved
without the dedication of our extraordinary employees
around the world in 25 countries. We have an exceptional
work culture in all our locations and are proud that our
workforce has an engagement level of 89%, a benchmark
in the industry.

LOOKING BACK, LOOKING AHEAD
Steady, relentless execution of the objectives defined in
Challenge 2020 on a monthly, quarterly and yearly basis
has built our credibility as leaders in the industry over the
past five years. Our solid performance, strong governance
and effective capital allocation strategy, has helped us build
our credibility with investors. Our seamless execution allowed
us to deliver results that surpassed our financial guidance
and exceed market expectations over the past five years,
in addition to achieving our stated goals.

Over the last decade, we have diversified our product
portfolio, established a global sales and distribution network,
and expanded our global manufacturing footprint. This,
along with solid processes, strong governance and incredible
employees, is what gives us the great foundation on which
we will continue to build.

Today, it’s impossible to know precisely what the months
or years ahead will hold. However, given our track record,
our excellent starting point for the year and the know-how
we have accumulated over time, we are confident that
while we are temporarily slowed down, it won’t stop our
momentum. Whether we are on a vehicle or in a boardroom,

we are driven by the same motivation: we are willing to
push the limits in every way. Finding new, ingenious ways
of delivering market-shaping products, and never relenting
in our quest to reinvent the consumer experience.

THE FUTURE OF ELECTRIC
Part of this reinvention is to understand what the consumers
of today and tomorrow are seeking. With global trends
towards urbanization, environmental protection and sharing
economies, there will be interest in new ways of moving
people, including electric vehicles and alternative methods
of transportation. When the demand will be there, we will be
ready with an offer that enhance the consumer experience
without compromises. Our research and design teams continue
to explore the possibilities and have developed both new
concept vehicles and adaptations of our existing products.
In September 2019, to high acclaim, we showcased some
of our early electric concepts during Club BRP.

CONCLUSION
In FY2020 and the beginning of FY2021, we were on a
roll: we had incredible momentum with every product line
worldwide and we anticipated another great year ahead. In
March 2020, like the rest of the world, we were suddenly
faced with the challenge of the COVID-19 health crisis,
bringing rapid changes that significantly disrupted our
business and operations and forced us to quickly pivot.

The silver lining to this situation is that overcoming obstacles
comes naturally to us. This is not the first difficult period
we have been through and likely will not be the last. And our
values as a company – our drive, our ingenuity, our passion
and the trust we have in each other – are what unites us
and allow us to grow. Our solid position in the market, our
know-how and our experience allow us to be in a better
position to tackle this kind of challenge head-on.

There is no doubt in my mind that we are blazing our own
trail for the future.

JOSÉ BOISJOLI
President and CEO

BRP – 2020 ANNUAL REVIEW55%

16%

UNITED STATES

CANADA

29%

INTERNATIONAL

$237.91

$177.94

$316.49

BRP

S&P/TSX

REVENUE BASE BY CATEGORY
At 31/01/20

REVENUE BASE BY GEOGRAPHY
At 31/01/20

F I N A N C I A L
H I G H L I G H T S /
F I S C A L Y E A R
2 0 2 0

46%

YEAR-ROUND
PRODUCTS

13%

POWERSPORTS
PA&A AND OEM
ENGINES

31%

SEASONAL
PRODUCTS

MARINE

SHARE PRICE
DOO MONTHLY CLOSING PRICE IN CA$

DOO PERFORMANCE
OVER THE LAST YEARS IN CA$

$39.40

FEBRUARY
2019

h
c
r
a
M

l
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r
p
A

y
a
M

e
n
u
J

y
l
u
J

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e
b
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e
t
p
e
S

t
s
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A

r
e
b
o
t
c
O

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e
b
m
e
v
o
N

r
e
b
m
e
c
e
D

$100.00

$107.56

$101.86

$72.19

$120.84

$125.28

$122.05

$136.02

2013

2014

2015

2016

2017

2018

2019

2020

$67.56

JANUARY
2020

$100.00

$130.28

$115.24

$100.70

$122.28

TOTAL REVENUES
CA$ millions / At 31/01/20

CAGR* 12%

NET INCOME
CA$ millions / At 31/01/20

NORMALIZED EBITDA1
CA$ millions / At 31/01/20

NORMALIZED EARNINGS
PER SHARE – DILUTED1
CA$ / At 31/01/20

EARNINGS PER
SHARE – DILUTED1
CA$ / At 31/01/20

CAGR* 15%

CAGR* 23%

CAGR* 61%

182

51.6

3,829

4,172

4,453

5,244

6,053

182

257.0

239.1

227.3

370.6

182

460.0

502.7

536.2

655.9

804.4

182

1.71

1.96

2.27

3.10

3.83

0.44

182

2.27

2.21

2.28

3.96

1 See Non-IFRS measures section on p. 33.
2 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9 “Financial instruments” standards

as explained in Note 31 of the audited consolidated financial statements for the year ended January 31, 2019.

* Compound Annual Growth Rate since 31 January 2016.

BRP – 2020 ANNUAL REVIEWA D V E N T U R E
B Y D E S I G N

We are defined by our passion, ingenuity, trust and drive.

We are a global leader in the world of powersports vehicles and propulsion

system built on over 75 years of ingenuity and intense consumer focus.

A STAND-ALONE
COMPANY SINCE 2003

ICONIC
BRANDS

COMPANY OVERVIEW

(As of January 31, 2020)

$6.1B

ANNUAL SALES

APPROXIMATELY

13,500

DRIVEN, RESOURCEFUL
EMPLOYEES WORLDWIDE

120+

TSX: DOO
NASDAQ: DOOO

COUNTRIES WHERE OUR
PRODUCTS ARE AVAILABLE

1 As of May 2020, BRP has decided to discontinue production of outboard engines.

BRP – 2020 ANNUAL REVIEWO U R
P R O D U C T
L I N E S

P O W E R S P O R T S
Y E A R - R O U N D P R O D U C T S

BRP – 2020 ANNUAL REVIEWWith our year-round products, we’ve extended

the BRP experience to new terrains for work

as well as play, appealing to a wide spectrum

of people the world over. Our on-road vehicles

include category-defying products that lead

the industry into new territory, while our off-

road vehicles challenge the status quo with

innovations that delight customers.

MARKET INDICATORS

2,791.7 MILLIONS

CA$

GLOBAL SALES FOR THE YEAR ENDED
ON JANUARY 31, 2020

24.6%

GLOBAL SALES VS FY2019

BRP – 2020 ANNUAL REVIEWWe believe that all roads should be open to all people. The introduction of the Can-Am Ryker
in FY2019 addressed that, bringing an incredibly fun, yet more accessible option to the masses,
both in terms of cost and ease of riding. In FY2020, we also updated our luxury touring model,
the Spyder RT, ensuring existing generations can stay with us for years to come. Last year’s results
show we’re succeeding.

> The Can-Am Ryker has attracted new riders who are
younger and more diverse, including higher numbers of
female buyers, altogether driving strong retail demand.

> The 2020 Can-Am Spyder RT was completely

redesigned after more than 10 years and millions of
miles reported by satisfied owners. With its modern,
upscale look and enhanced comfort, the new design is
expected to drive strong interest from existing touring
owners both from within the Spyder community and
the motorcycle community in general.

> The Can-Am Rider Education Program has successfully
reduced a core barrier to purchase and attracting new
riders. There are nearly 200 active schools, and more
than 20,000 courses have been completed with a
>20% conversion rate to purchase a Can-Am 3WV
after completion.

> Can-Am 3WV grew substantially, up +104% in
North American retail sales volume in FY2020.
Can-Am now holds the #5 market-share position in
the North American on-highway motorcycle market,
up from #7 last year.

O N -
R O A D

BRP – 2020 ANNUAL REVIEWO F F -
R O A D

Can-Am Off-Road vehicles allow their riders to connect with the land in a variety of ways, making
them feel more alive. A fearless ally to work or play, and often both, Can-Am ORVs continued to
gain recognition in all categories, from both consumers and professional influencers. This is reflected
in our results for the year.

> Our new Defender platform, offering greater comfort
and performance thanks to the new HD10 engine
available in all Defender packages with 82hp and
new improved cockpit area, strikes the perfect balance
between work and play. It is now available in three
versions: the PRO, with class-leading, industry-
surpassing storage; the Limited, with the quietest
climate-controlled cab; and a 6x6 with more traction
and capabilities for extreme usage.

> The new Maverick X3, featuring the Turbo RR, is the
most powerful SSV engine in the industry, offering
maximum reliability and performance with 195hp.

> In addition to winning the Dakar Rally’s side-by-side
vehicle category outright for the third year running,
Can-Am vehicles swept the podium and crossed the
finish line in all of the top 20 positions, dominating
the world’s toughest race from start to finish.

> Can-Am Off-Road continued to build awareness through
a tribe of ambassadors of well-established, high-reach
influencers in farming, ranching, racing and hunting;
and through high-visibility programs such as a three-year
partnership with Professional Bull Riders’ Unleash
the Beast Tour, including the “Can-Am Cage”, TV
advertising, and on-site booth and hospitality.

> In FY2020, Can-Am Off-Road brand awareness

increased 26%, from 27% to 34%, and global sales
went up 23.8% to over $2.2 billion.

BRP – 2020 ANNUAL REVIEWP O W E R S P O R T S
S E A S O N A L P R O D U C T S

BRP – 2020 ANNUAL REVIEW
Snow and water were our first playgrounds,

and seasonal products are a reminder of

our proud heritage. They also play a major

role in both our present and our future,

as we continue to innovate in the product

categories we created.

MARKET INDICATORS

1,901.4 MILLIONS

CA$

GLOBAL SALES FOR THE YEAR ENDED
ON JANUARY 31, 2020

5.4%

GLOBAL SALES VS FY2019

BRP – 2020 ANNUAL REVIEWSki-Doo invented recreational snowmobiling over 60 years ago, and has been reinventing it ever
since, delivering winter experiences that defy expectations. Inspired by feedback from our brand
ambassadors and experienced riders, each new product innovation takes the riding experience to
new heights. In 2020, this was literally the case. And our sales results prove it.

> The all-new Ski-Doo Summit 850 E-TEC Turbo
snowmobile, with the world’s first factory-built,
turbocharged two-stroke engine, provides the same
constant 165 horsepower from sea-level, all the way
to an elevation of 8,000 ft.

> Designed with input from some of the world’s most

respected deep-snow riders, the Summit X with Expert
Package offers a range of features for responsive,
deep-snow performance, a shorter tunnel length,
lighter weight and ergonomic, deep-snow design.

> The REV Gen4 platform welcomed the Rotax 600 ACE
4-stroke engine, the most fuel-efficient engine in the
entire industry, with up to 29 mpg (8 L/100 km)1.

> For the first time in 50 years, Ski-Doo reached a record
high market share beyond 50% in North America.

1 Data based on internal engineering trail testing in ECO mode

BRP – 2020 ANNUAL REVIEWLynx snowmobiles are equipped to take on nature’s toughest challenges, and the brand has been
helping riders make the most of every day of winter for over 50 years. In FY2020, the brand introduced
several innovations enabling Nordic snow junkies to ride the best trails nature has to offer, and
Scandinavian customers appreciated the efforts, as our market success shows.

> The all-new Commander family, built on the

> The Rotax 900 ACE Turbo made its debut on the

RADIEN-X platform introduced last year, set the bar
in wide-track crossover sleds – sales grew 33%
compared to FY2019 and Commander was the top
seller in EMEA.

> The PPS DS+ rear suspension, made for deep snow
riding only, was introduced on the Lynx BoonDocker
DS models.

Lynx Xterrain RE 3700 900 ACE Turbo, Commander
900 ACE Turbo and Commander Grand Tourer 900
ACE Turbo.

> Model year 2020 was a big success for Lynx, with

market share in Scandinavia at almost 40%, including
an all-time high in Finland with more than 50%.

> Together Lynx and Ski-Doo attained BRP’s highest-ever
market share in Scandinavia with approximately 65%.

BRP – 2020 ANNUAL REVIEWIn FY2019, to celebrate 50 years of Sea-Doo, we brought to market a revolutionary three-seater
platform and a ground-breaking fishing-focused model, opening up even more possibilities for fun
and freedom to water-lovers everywhere. These ingenious innovations have sustained our leading
position in FY2020, and shifted the focus of growth in North America.

> The platform launched in FY2018, with its onboard
living room, offering comfortable seating for three or
roomy lounging space, equipped with a fully-integrated
sound system and innovative storage and able to
accommodate a host of LinQ accessories, has been a
key contributor to our success in FY2020, especially
in Australia, Japan and China, (+19%) and in Latin
America (+15%).

> In North America, growth has been fuelled by full-size,
higher-end PWCs for the first time, due to our consistent
focus on the beyond-the-ride experience.

> We have seen an increase in volume sales worldwide,
even in markets where the industry declined, with
most of the growth from Touring segments, leading
to an increase in global margin in FY2020.

> In FY2020, Sea-Doo remained #1 worldwide, with
record high market share of more than 60%.

> More and more people are using PWCs for activities

beyond the ride, such as adventure riding, exploration
and fishing, in the six largest PWC markets: U.S.,
Canada, Brazil, Sweden, New-Zealand and Australia.

BRP – 2020 ANNUAL REVIEWP O W E R S P O R T S P A & A
A N D O E M E N G I N E S

BRP – 2020 ANNUAL REVIEWFor customers, our extensive line of parts,

accessories and apparel (PA&A) contribute

to a complete BRP experience, enabling

us to extend the BRP brand as a lifestyle.

Rotax engines, manufactured in Austria and

Mexico, open up global OEM opportunities.

MARKET INDICATORS

799.8 MILLIONS

CA$

GLOBAL SALES FOR THE YEAR ENDED
ON JANUARY 31, 2020

13.1%

GLOBAL SALES VS FY2019

BRP – 2020 ANNUAL REVIEWP A R T S ,
A C C E S S O R I E S
A N D A P P A R E L
( P A & A )

BRP parts, accessories and apparel enable our riders to fine-tune their adventure. As well as
guaranteeing quality and performance, they let our customers adapt their vehicle to the work they’re
doing or the terrain they’re exploring, and back again. Our unique, industry-leading, snap-on/snap-off
LinQ system is the cornerstone of this versatility. All of these products enhance the overall consumer
experience and lifestyle associated with powersports products.

> There are now over 250 accessories available for

owners of a Ski-Doo built on the REV Gen4 platform.
LinQ accessories include a 135-litre (36 US gallons)
cargo box, a chainsaw holder and a 3.78-litre (1 US
gallon) fuel caddy. Other accessories include an
adjustable windshield.

> New accessories to fit both SSVs and ATVs improve
comfort, add to the fun, and enable work or play in
the snow. Riders welcomed the innovative Pro-Vent
vented windshield and roof, the audio roof, and the
Apache track system. Additionally, the Can-Am
Defender SSV gained 66 new accessories this year.

> For adventures on the water, Sea-Doo GTI, GTI SE,
GTR and WAKE owners can now waterski, thanks to
the retractable ski pylon; wakeboard, thanks to the
wakeboard rack; and keep their picnic and other items

dry, thanks to the LinQ box and removable storage
bin. They can also be sure not to run aground if they
use the depth finder, or to take on water at rest, with
our new cover.

> BRP launched a complete line of branded merchandise,
providing practical and fun accessories to enhance
customers’ adventures, as well as cool lifestyle products
to simply express their pride in owning a BRP vehicle.

> BRP expanded its lubricants portfolio while introducing
a brand-new care products lineup. These products are
expertly engineered to extend the life of vehicles and
tested on all engine platforms and materials used in
the powersports industry. They perform and protect
in the harshest conditions.

BRP – 2020 ANNUAL REVIEWO E M
E N G I N E S

Rotax engines have been constantly innovating to reinvent mobility for 100 years now. In the last
decades, BRP-Rotax has also found ingenious ways to showcase how it powers vehicles for the
world’s most thrilling playgrounds. In FY2020, it upped its game, quite literally, with a state-of-
the-art, gamified experience with its engine at the heart.

> ‘Gunskirchen 2020’, BRP-Rotax’s modernization

and innovation program of the plant in Austria, came
to its end. Started in 2012, it has made it possible
for BRP-Rotax to meet customers’ needs better and
more quickly, and to respond to the requirements of
the market in a more flexible and specific way. New
technologies were implemented, and machinery was
updated, with the aim of a more flexible and agile
production. Continuous improvement, even better
teamwork, and waste elimination resulted from
optimizing the BRP Management System (BRPMS).

> Last July, BRP made a first venture into the world of
direct consumer experience with the opening of the
Rotax MAX Dome. This innovative and exciting indoor
e-kart racing arena allows the public to prepare for and
race Rotax electric karts in an augmented reality space
for a truly immersive, virtual gamification experience.

> The Rotax MAX Challenge Grand Finals in Sarno, Italy,
marked 20 years since BRP-Rotax launched what has
been described as the fairest, most international kart

sporting event in the world, which has raised Formula 1
stars such as Jenson Button, Kimi Räikönen and Lance
Stroll. The event also saw the launch of Project E20,
BRP-Rotax’s in-house-developed electric powerpack,
which promises to bring the e-kart to the same level
as combustion engine racing karts.

> Marking its seventh year, the Spyder Großglockner

Challenge again brought together around 280 riders
from all over the world with their 175 Can-Am Spyders
and, for the first time, the new Can-Am Ryker.

> The year also brought a relaunch of the Rotax Fly-In
which has already been held occasionally in the past
years. In August, aircraft enthusiasts from Austria and
central Europe landed in Wels, Upper Austria, for the
2019 edition of the Fly-In and enjoyed a great event
in a relaxed atmosphere. The new Rotax 915iS aircraft
engine was the center of interest and a lot of the
participating aircraft were already equipped with the
innovative powertrain.

BRP – 2020 ANNUAL REVIEWM A R I N E G R O U P

BRP – 2020 ANNUAL REVIEWOn the water, opportunities abound for

recreation, whether powersports, fishing,

or boating. Naturally, many customers are

interested in all of the above, which is one

reason we’ve added renowned leisure craft

products to our portfolio within the new

BRP Marine Group.

MARKET INDICATORS1
559.8 MILLIONS

CA$

GLOBAL SALES FOR THE YEAR ENDED
ON JANUARY 31, 2020

1 The sales figures and percentage of sales
increase include Evinrude for which BRP
announced, in May 2020, that the production
was discontinued.

13.7%

GLOBAL SALES VS FY2019

BRP – 2020 ANNUAL REVIEWThe Evinrude brand has been central to our marine strategy for many years and has served as an
important jumping-off point for marine innovation in a variety of forms. In FY2020, Evinrude continued
its course of supplying boaters around the world with some of the most performance-driven engines
on the market, coupled with the highest environmental standards for both emissions and noise.

> The E-TEC G2 I3 150 HP with power tiller was

launched in 2019 with integrated power-steering
assist and digital shift and throttle. This was an example
of BRP’s innovative spirit by introducing the industry’s
first factory-installed power tiller-controlled outboard.
The design was created with beginners to advanced
anglers in mind and demonstrates BRP’s commitment
to ease of use, even in the worst conditions.

> BRP equipped all new three-cylinder E-TEC G2

outboard motors, from 115 H.O. to 150 horsepower
with next-generation technology such as digital
shift and throttle, the iTrim control system, digital
instrumentation, custom colour panels and optional
iSteer dynamic power steering, as well as a new
look and feel. This is part of our BRP philosophy of
remaining cutting edge in whatever we design for
our customers.

> BRP innovations continue to be recognized in the
industry. The Evinrude E-TEC G2 115 H.O. Inline
3-cylinder engine was awarded the National Marine
Manufacturers Association (NMMA) Innovation
Award in the Outboard Engine category at the 2019
International Boat Builders’ Exhibition & Conference
(IBEX) for its extended cruising capabilities, power
capacities, running quality, quiet operations, and
low emissions rating.

> BRP is now in the Guinness World Records, thanks to
Evinrude. The Big Pull team set multiple single-boat
barefoot waterskiing records using boats powered by
two and three 300-horsepower Evinrude E-TEC G2
engine in the Ballet, Barefoot, Conventional Couples
and Trios categories.

As of May 2020, BRP has decided to discontinue production
of Evinrude outboard engines and to focus more energy on new
products in the marine industry. Evinrude outboard engines
will continue to be serviced and supplied with parts, and the
Sturtevant, WI plant will be repurposed for exciting marine
innovations to be announced in the future.

BRP – 2020 ANNUAL REVIEWAlumacraft has been synonymous with fishing for over 70 years, helping people create memories
with their family and friends. Durability and innovation are the hallmarks of the brand, fuelled by
an unwavering dedication to the customer and the talent of its employees.

> Recent advancements in our manufacturing

technologies have enabled production speeds
for aluminum boat building to be increased.

> Boat dealers were offered several attractive rebate
programs throughout the year to incentivize boat
buyers to purchase, allowing dealerships to clear
and renew inventory.

> Factory-rigging Evinrude motors on Alumacraft
boats at our Minnesota and Arkansas facilities,
implemented in FY2019, has greatly impacted
orders, with more dealers purchasing packages
straight from the factory.

BRP – 2020 ANNUAL REVIEWFor over 34 years, Manitou has been driven to exceed its customers’ expectations and needs,
redefining what a pontoon boat can be. Building on a solid foundation of performance, quality,
and technology, the brand leads the industry in product innovation.

> A new ERP system was implemented to streamline
the flow of communication through the production
process, and improve production.

> Short-term capacity planning was redesigned, from
shipping and receiving to final assembly, reducing
bottlenecks on the production line, and creating a
solid foundation for future growth.

> New safety initiatives were implemented to improve
the total recordable incident rate (TRIR), with a
target of 1.1% – since June there have been zero
recordable incidents.

> A Corporate Social Responsibility team was

created to coordinate initiatives and lead employee
and community events, which included sending
a decorated pontoon float to the “Silver Bells in
the City” parade and other community parades in
the greater Lansing Area during the holiday season,
and coordinating volunteers for “Vets with Nets”
that helps veterans get out and fish on Lake Erie.

> A project to develop a framework and guidelines for

the Manitou brand was kicked off.

BRP – 2020 ANNUAL REVIEWIn FY2020, we acquired Telwater, the largest boat manufacturer in the South Pacific, with more
than 60% of the Australian market. By continually setting industry standards with its innovative
designs, advanced technology and ongoing research and development program, this division has
the most iconic aluminum brands in the business, with Quintrex and the other members of the
Telwater family – Stacer, Savage and Yellowfin Plate.

> A purpose-built aluminum stretch former was installed
to extend hull development and innovation possibilities
– stretch forming enables an almost unlimited variety
of shapes and cross-sections, and will allow us to
maintain and expand our industry leadership.

> Stacer’s open, runabout, bowrider and cabin range
were upgraded with unique technology that will
improve the customer experience and simplify the
sales process for Stacer dealers.

> Quintrex’s Yellowfin Plate range expanded from

10 to 27 models in a single year based on customer
feedback – with the most hardcore Australian
fisherman in mind, our research and development
team showed great agility in applying this valuable
knowledge and getting the new range into the market.

BRP – 2020 ANNUAL REVIEWA G L I M P S E I N T O
T H E F U T U R E

BRP was an early frontrunner in electric mobility, with the introduction of the
Neighborhood Electric Vehicle in 1996, followed by an electric side-by-side vehicle,
the development of a Can-Am Spyder electric prototype, and the commercialization
of Sonic e-karts. In 2019, we pushed our limits further, unveiling six electric vehicle
concepts to provide a glimpse of what the future might hold, and demonstrate our
vision and thinking to unlock more sustainable ways to move people and explore
new territories, while still delivering the fun and exhilaration that riders expect.

THE SEA-DOO EV CONCEPT

The Sea-Doo EV Concept takes personal watercraft to the next
level with smooth, quiet adventures across a wide variety of
waterways: there are no limits with this futuristic solution to
aquatic powersports.

THE RYKER EV CONCEPT

The ultimate marriage of sustainability and innovation,
the Ryker EV Concept allows riders to take to the open
road with nothing between them and their passion, truly
a ride like no other for the future.

BRP – 2020 ANNUAL REVIEWTHE TWeLVE CONCEPT

The TWeLVE (Three Wheeled Electric Leaning Vehicle) Concept
has already been tested in Paris and has demonstrated stability
and agility for urban mobility, whether for personal, shared or
commercial use.

ABOUT THE SONIC

SONIC is the newest way to experience karting: all the fun and
speed with no emissions. From the inner city with the Rotax MAX
Dome interactive racing concept to racetracks around the world,
e-karting is the world’s next thrill.

THE CT CONCEPTS

The CT1 and CT2 Concepts are part of a modular ecosystem intended
for personal, shared and commercial mobility solutions for both urban
and suburban areas. The concepts have already been successfully
roadtested in Madrid, Paris, San Francisco and Montreal.

THE eCOM CONCEPT

Incorporating the distinctive Y-design BRP is renowned for, the eCOM
Concept is the ultimate in accessibility and stability for commuting to
and within cities, and a great alternative to a second (or third) car,
with many options for commercial use.

BRP – 2020 ANNUAL REVIEWC O R P O R A T E S O C I A L
R E S P O N S I B I L I T Y

BRP considers the protection of the environment and the promotion
of economic and social well-being as fundamental to its future
success. For this reason, all BRP business units around the world
build corporate social responsibility into their business strategy.
We strive continuously to improve the environmental performance
and social acceptability of our activities and products while
maintaining their competitiveness.

Our natural surroundings are an important part of our activities. We care
about designing, manufacturing and servicing products that have the least
impact possible on natural ecosystems, while providing exciting opportunities
for consumers around the world to experience the great outdoors. To do so,
we provide an environment for all our employees that favours their health,
safety and well-being, both at work and in their community.

O U R C S R
P R O G R A M
I S B U I L T O N
S I X P I L L A R S

> GOVERNANCE

> ENVIRONMENT

> EMPLOYEES

> PRODUCT RESPONSIBILITY

> SUPPLY CHAIN MANAGEMENT

> ROLE IN THE COMMUNITY

BRP – 2020 ANNUAL REVIEWEMPLOYEES (1)

Our Juárez facilities recognized as a “Company Committed
to Human Rights”, by Chihuahua State. Principles such
as respect of human rights, harmonious labor practices,
inclusion, and protection of the environment are well
integrated in our culture and daily operations.

EMPLOYEES

Work-life-balance plays an important role at BRP-Rotax,
and we offer our employees a variety of working models
adapted to different phases of people’s lives and their
corresponding needs. These efforts, and our family- and
employee-friendly corporate culture, were recognized by
the Upper Austria region with the “Felix Familia” family
award 2020.

EMPLOYEES

A new record was celebrated at the BRP-Rotax apprentice
shop: 1,111 days without accident.

EMPLOYEES, ENVIRONMENT, ROLE IN
COMMUNITY, GOVERNANCE (2)

Our Mexican facilities received for the fourth consecutive
time in Juárez and the third time in Querétaro the Socially
Responsible Company (ESR) award from the Mexican
Center for Philanthropy (CEMEFI). This is a recognition of
our commitment to implementing environmental, ethical
and socially responsible management as part of our culture
and business strategy in all our Mexican facilities.

ENVIRONMENT (3)

For the third consecutive year, BRP Evinrude was
recognized among the top 20% of companies in the
state as a Green Master. It continues to make sustainability
a top priority, by implementing key changes to their
business practices and supporting community outreach
efforts that benefit the environment.

F Y 2 0 2 0
H I G H L I G H T S

BRP – 2020 ANNUAL REVIEWF Y 2 0 2 0
H I G H L I G H T S
( C O N T ’ D )

ENVIRONMENT, ROLE IN COMMUNITY (4)

ROLE IN COMMUNITY

Since last September, BRP has been sponsoring two
women citizens from the Hearts in the Ice project with
Lynx snowmobiles, Evinrude motors and the appropriate
gear. These women have been stationed in Svalbard, in
Norway, near the Arctic Circle, on a nine-month expedition
observing weather and wildlife, and collecting data for
NASA, the Norwegian Polar Institute, Scripps Institution of
Oceanography, University of Maine Climate Change Institute,
and the United Nations International School (UNIS).

ENVIRONMENT, ROLE IN COMMUNITY (5)

It’s been over a year since the regeneration of the
Samalayuca desert began in Chihuahua, Mexico. This
project focuses on the conservation of natural habitats
that can retain large amounts of carbon dioxide and water.
With the help of Can-Am and the local BRP team who
offered additional support, the Conciencias Biologicas
foundation explored new areas using our side-by-side
vehicles to identify the desert’s vegetation density and
research critical areas. The team is also keeping a record
of the local flora and fauna to estimate the amount of
carbon dioxide stored there.

Established in 2016, Sea-Doo Club Indonesia (SCI) is a
Sea-Doo rider community in Jakarta, Indonesia’s capital
city. The SCI community organizes weekend rides from
Jakarta to Thousand Islands, a group of small nearby islands
where basic educational infrastructure is lacking. The
SCI community sponsored the building of a preschool on
Tidung Island in the Thousand Islands area, and the local
authorities renamed it the SCI Preschool in gratitude for
SCI’s support. When school is not in session, the preschool
building can be used for other community activities. Over
the past four years, BRP has supported the SCI’s CSR
initiatives on an ongoing basis and in 2019, we provided
Sea-Doo demo units for the event days.

PRODUCT RESPONSIBILITY (6)

Ski-Doo snowmobiles continue to support backcountry-
rider education with free avalanche awareness and
avoidance seminars for all snowmobilers – whatever their
preferred brand – for the ninth year running in the US
and the tenth in Canada.

PRODUCT RESPONSIBILITY, ENVIRONMENT

BRP furthered its exploration of electric vehicles, and
showcased six different concepts for its current product
lines and beyond at Club BRP in September 2019.

BRP – 2020 ANNUAL REVIEWF I N A N C I A L
S E C T I O N

BRP – 2020 ANNUAL REVIEWRECONCILIATION TABLES – FY2020

The following table presents the reconciliation of Net income
to Normalized net income1 and Normalized EBITDA1.

(in millions of Canadian dollars)

January 31, 2020

January 31, 2019

January 31, 2018

January 31, 2017

January 31, 2016

Twelve-month periods ended

Net income

Normalized elements

Foreign exchange (gain) loss on long-term debt and lease liabilities

Transaction costs and other related expenses3

Restructuring and related costs (reversal)4

Impairment charge

(Gain) loss on litigation5

Transaction costs on long-term debt

Pension plan past service gains

Gain on disposal of property, plant and equipment

Depreciation of intangible assets related to business combinations

Other elements

Income tax adjustment
Normalized net income1
Normalized income tax expense1

Financing costs adjusted1,6

Financing income adjusted1,6

Depreciation expense adjusted1,7
Normalized EBITDA1

$370.6

$227.3

10.4

2.9

1.7

(40.0)

3.6

0.9

8.3

358.4

126.8

90.9

(2.2)

230.5

$804.4

69.8

2.7

1.3

8.9

(1.4)

--
1.2

1.3

(3.8)

308.6

105.4

68.0

(2.2)

176.1

$655.9

Restated2

$239.1

(53.3)

2.9

5.9

2.1

1.5

47.3

245.5

90.2

53.5

(2.2)

149.2

$536.2

$257.0

$51.6

(82.0)

(1.1)

70.7

(6.3)

2.7

(19.0)

222.0

89.1

60.0

(1.5)

133.1

$502.7

105.8

4.6

70.3

(6.4)

(1.1)

(24.0)

200.8

72.8

62.6

(2.4)

126.2

$460.0

1 See “Non-IFRS Measures” section.
2 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 31 of the audited consolidated financial
statements for the year ended January 31, 2019.

3 Costs related to business combinations.

4 The Company is involved, from time to time, in restructuring and reorganization activities in order to gain flexibility and improve

efficiency. The costs related to these activities are mainly composed of severance costs and retention salaries.

5 The Company is involved in patent infringement litigation cases with one of its competitors.
6 Adjusted for transaction costs on long-term debt and normal course issuer bid program (“NCIB”) gains and losses in net income.
7 Adjusted for depreciation of intangible assets acquired through business combinations.

BRP – 2020 ANNUAL REVIEWINFORMATION FOR INVESTORS
Stock Exchange Information
BRP Inc. subordinate voting shares are traded on the Toronto Stock Exchange under
the symbol ‘’DOO’’ and on the Nasdaq Global Select Market under the symbol
‘’DOOO’’.

Research Coverage1
BMO Capital Markets • Canaccord Genuity • CIBC World Markets • Desjardins
Securities • Morningstar • National Bank Financial • Northcoast Research
• RBC Capital Markets • Robert W. Baird & Co. • UBS • Wells Fargo • Wolfe Research

Fiscal Year 2020 Tentative Earnings Calendar
First Quarter:
Second Quarter: Thursday, August 27, 2020
Third Quarter: Wednesday, November 25, 2020
Fourth Quarter: Thursday, March 25, 2021

Thursday, May 28, 2020

Issued and Outstanding Shares
As of April 23, 2020, there were 41,407,024 Subordinate Voting Shares and
45,891,671 Multiple Voting Shares issued and outstanding, and no preferred
shares were issued and outstanding.

Shareholder Services
For shareholder-related services, including estate change of name or address,
stock, transfers, settlement, lost stock certificates and duplicate mailings, please
contact the transfer agent at:

Annual Shareholders’ Meeting
This meeting will be held at 11:00 a.m. (Eastern time) on May 28, 2020,
at BRP’s Valcourt Product Development Centre located at 841 Cartier Street,
Valcourt, Québec, J0E 2L0, and via live webcast and conference call.

Information Requests
Analysts, shareholders and interested investment professionals may direct
their business-related inquiries to:

Investor Relations Department: BRP Inc., 726 St-Joseph, Valcourt, Québec,
Canada J0E 2L0, T +1 (450) 532-2211, ir@brp.com

Computershare Investor Services Inc.: 100 University Ave., 8th Floor, Toronto,
Ontario, Canada M5J 2Y1, T +1 (866) 245-4053, www-us.computershare.com/
Investor

For more information
To view the Company’s Annual Review and related financial information,
to learn more about the products, to download product brochures or to find
dealer locations, please visit the Company’s website at brp.com.

1 Analyst coverage known to the Company as of April 30, 2020.

FORWARD-LOOKING STATEMENTS
Certain statements included in this Annual Review, including, but not limited to,
statements relating to our previously disclosed Challenge 2020, our new 5-year plan
referred to as “Mission ‘25”, our expectations for FY2021 and our ability to face
the COVID-19 ongoing health crisis as well other statements about our current
and future plans, expectations, anticipations, intentions, results, levels of activity,
performance, objectives, targets, goals, achievements, priorities and strategies,
financial position, market positions, capabilities, competitive strengths, research
and product development activities, including projected design, characteristics,
capacity or performance of future products and their expected scheduled entry to
market or any other future events or developments and other statements that are
not historical facts constitute forward-looking statements within the meaning of
applicable securities laws. The words “may”, “will”, “would”, “should”, “could”,
“expects”, “forecasts”, “plans”, “intends”, “trends”, “indications”, “anticipates”,
“believes”, “estimates”, “outlook”, “predicts”, “projects”, “likely” or “potential”
or the negative or other variations of these words or other comparable words or
phrases, are intended to identify forward-looking statements.
Forward-looking statements are presented for the purpose of assisting readers in
understanding certain key elements of our current objectives, goals, targets, strategic
priorities, expectations and plans, and in obtaining a better understanding of our
business and anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes. Readers should not place
undue reliance on forward-looking statements made in this presentation. Forward-
looking statements, by their very nature, involve inherent risks and uncertainties
and are based on a number of assumptions, both general and specific, as further
described below.
Many factors could cause the Company’s actual results, level of activity, performance
or achievements or future events or developments to differ materially from those
expressed or implied by the forward-looking statements, including, without limitation,
following risk factors: the impact of adverse economic conditions such as those

resulting from the ongoing COVID-19 health crisis (including on consumer spending,
the Company’s operations, supply and distribution chains, the availability of credit
and the Company’s workforce); fluctuations in foreign currency exchange rates; high
levels of indebtedness; unavailability of additional capital; unfavourable weather
conditions; seasonal sales fluctuations; inability to comply with product safety,
health, environmental and noise pollution laws; large fixed cost base; inability of
dealers and distributors to secure adequate access to capital; supply problems,
termination or interruption of supply arrangements or increases in the cost of
materials; competition in product lines; inability to successfully execute growth
strategy; international sales and operations; failure of information technology systems
or security breach; failure to maintain an effective system of internal control over
financial reporting and to produce accurate and timely financial statements; loss
of members of management team or employees who possess specialized market
knowledge and technical skills; inability to maintain and enhance reputation
and brands; significant product liability claim; significant product repair and/or
replacement due to product warranty claims or product recalls; reliance on a network
of independent dealers and distributors; inability to successfully manage inventory
levels; intellectual property infringement and litigation; inability to successfully
execute manufacturing strategy; increase freight and shipping costs or disruptions;
covenants in financing and other material agreements; changes in tax laws and
unanticipated tax liabilities; deterioration in relationships with employees; pension
plan liabilities; natural disasters; failure to carry proper insurance coverage; volatile
market price for BRP’s subordinate voting shares; conduct of business through
subsidiaries; significant influence by Beaudier Inc. and 4338618 Canada Inc.
(together the “Beaudier Group”) and Bain Capital Luxembourg Investments S. à
r. l. (“Bain Capital”); and future sales of BRP’s shares by Beaudier Group, Bain
Capital, directors, officers or senior management of the Company. These factors
are not intended to represent a complete list of the factors that could affect the
Company; however, these factors should be considered carefully.
The forward-looking statements contained in this Annual Review are made as of
the date of this Annual Review and the Company has no intention and undertakes

no obligation to update or revise any forward-looking statements to reflect future
events, changes in circumstances, or changes in beliefs, unless required by
applicable securities regulations. In the event that the Company does update any
forward-looking statement, no inference should be made that the Company will
make additional updates with respect to that statement, related matters or any
other forward-looking statement.

KEY ASSUMPTIONS
The Company made a number of economic, market and operational assumptions
in preparing and making certain forward-looking statements contained in this
Annual Review, including the following: reasonable industry growth ranging from
flat to high-single digits; moderate market share gains in Year-Round Products
and Seasonal Products and constant market share for the Marine segment; no
further deterioration and a relatively rapid stabilization of global and North American
economic conditions, including with respect to the ongoing coronavirus health
crisis; any increase in interest rates will be modest; currencies will remain at near
current levels; inflation will remain in line with central bank expectations in countries
where the Company is doing business; the Company’s current margins will remain
at current or improved levels; the supply base will remain able to support product
development and planned production rates on commercially acceptable terms
in a timely manner; there will be no significant changes in tax laws or free trade
arrangements or treaties applicable to the Company; no trade barriers will be
imposed amongst jurisdictions in which the Company carries operations; the
absence of unusually adverse weather conditions, especially in peak seasons. BRP
cautions that its assumptions may not materialize and that current economic
conditions, including all of the current uncertainty resulting from the ongoing
COVID-19 health crisis and its broader repercussions on the global economy, render
such assumptions, although believed reasonable at the time they were made,
subject to greater uncertainty.
All amounts in this presentation are expressed in Canadian dollars, unless
otherwise indicated.

NON-IFRS MEASURES
This Annual Review makes reference to certain non-IFRS measures. These measures
are not recognized measures under IFRS, do not have a standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to similar measures
presented by other companies. Rather, these measures are provided as additional
information to complement those IFRS measures by providing further understanding
of the Company’s results of operations from management’s perspective. Accordingly,
they should not be considered in isolation nor as a substitute for analysis of the
Company’s financial information reported under IFRS. The Company uses non-IFRS
measures including Normalized EBITDA, Normalized net income, Normalized
income tax expense, Normalized effective tax rate, Normalized basic earnings per
share and Normalized diluted earnings per share.
Normalized EBITDA is provided to assist investors in determining the financial
performance of the Company’s operating activities on a consistent basis by excluding
certain non-cash elements such as depreciation expense, impairment charge and
foreign exchange gain or loss on the Company’s long-term debt denominated in
U.S. dollars and foreign exchange gain or loss on certain of the Company’s lease
liabilities. Other elements, such as restructuring costs and acquisition related-costs,

may also be excluded from net income in the determination of Normalized EBITDA
as they are considered not being reflective of the operational performance of the
Company. Normalized net income, Normalized income tax expense, Normalized
effective tax rate, Normalized basic earnings per share and Normalized diluted
earnings per share, in addition to the financial performance of operating activities,
take into account the impact of investing activities, financing activities and income
taxes on the Company’s financial results.
The Company believes non-IFRS measures are important supplemental measures
of financial performance because they eliminate items that have less bearing on
the Company’s financial performance and thus highlight trends in its core business
that may not otherwise be apparent when relying solely on IFRS measures. The
Company also believes that securities analysts, investors and other interested parties
frequently use non-IFRS measures in the evaluation of companies, many of which
present similar metrics when reporting their results. Management also uses non-IFRS
measures in order to facilitate financial performance comparisons from period to
period, prepare annual operating budgets, assess the Company’s ability to meet
its future debt service, capital expenditure and working capital requirements and,
also, as a component in the determination of the short-term incentive compensation

for the Company’s employees. Because other companies may calculate these
non-IFRS measures differently than the Company does, these metrics are not
comparable to similarly titled measures reported by other companies.
Normalized EBITDA is defined as net income before financing costs, financing
income, income tax expense (recovery), depreciation expense and normalized
elements. Normalized net income is defined as net income before normalized
elements adjusted to reflect the tax effect on these elements. Normalized income
tax expense is defined as income tax expense adjusted to reflect the tax effect on
normalized elements and to normalize specific tax elements. Normalized effective
tax rate is based on Normalized net income before Normalized income tax expense.
Normalized earnings per share – basic and Normalized earnings per share – diluted
are calculated respectively by dividing the Normalized net income by the weighted
average number of shares – basic and the weighted average number of shares –
diluted. The Company refers the reader to the “Selected Consolidated Financial
Information” section of the MD&A for the reconciliations of Normalized EBITDA
and Normalized net income presented for the fiscal year ended January 31, 2020
by the Company to the most directly comparable IFRS measure.

The information contained in this Annual Review was established as of May 1, 2020.
Legal deposit Bibliothèque nationale du Québec 2020

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C O R P O R A T E
H E A D Q U A R T E R S
726 Saint-Joseph Street
Valcourt, Québec J0E 2L0
Canada