BRP Annual Report 2021 | Quarterlytics

FY2021 Annual Report · BRP

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2021 ANNUAL REVIEW

For the year ended January 31, 2021

TOG ETHER WE RIDE

We are informed optimists who see the world as one
big opportunity, with no boundaries to the road or our
ambitions. Whenever there’s an opportunity to be outdoors
exploring and connecting with our passionate community,
we take it.

AS NAV IGATORS , W E A LWAYS FIND A

WAY T O OVERCOME A NY BARRIER. TH IS

ME NTALITY ALLOWS US TO NATURALLY

LE AD, W HICH I S DI S PLAYED I N BOTH

WORK AND PLAY.

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OUR VALUES

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

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.

PAS SI ON
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.

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.

LETTER TO SHAREHOLDERS FOR THE YEAR
ENDED JANUARY 31, 2021 – JOSÉ BOISJOLI

TOG ETHER
WE RIDE

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“

W E AL L CAME TOG ETH ER

T O MA KE T HE MO ST OF T HIS

UNF ORES EEN S ITU AT ION

AND S EIZE OPPO RTUN ITI ES.

“

FY2 1 WA S AN UNUSUA L YE AR. GOVER NMENT

ME AS URES TO CONTROL THE SPREAD OF T HE

PANDE MIC LED TO ONGOING CHALLEN GES, W IT H

A PERIOD OF TEMPORARY PRODUCTION SHUTDOWNS

FOL L OWED BY A SURGE IN CONSUMER DEMAND

FOR OUR PRODUCTS WHI CH I S ONGOIN G.

This strong demand enabled us to deliver outstanding results, despite
the turbulence we faced. Revenues were slightly down, while Normalized
EBITDA1 grew 24% and Normalized EPS1 41%. The measures we
implemented early on to address the crisis, not only guided us through,
but have also prepared and strengthened BRP for the future.

1 See Non-IFRS measures section on page 29.

A YEAR LIKE NO OTHER

M25 MUST BE ADAPTED TO A NEW REALITY

During the year, our goal was to proactively manage the
impact of the pandemic by protecting our employees and
our business partners as well as preserving our financial
flexibility. We closely monitored developments and public
health directives in each of our locations and implemented
stringent protective measures, which were swiftly adopted
by our people. We also reduced our cost base, refocused
our Capex plan and enhanced our access to liquidity.

As consumer demand increased, we supported our dealer
network to deliver exceptional retail growth across all our
product lines and attracted and nurtured an unprecedented
level of first-time buyers. While the circumstances surrounding
the pandemic put pressure on our people, our suppliers and
our dealers, we all came together to make the most of this
unforeseen situation and seize opportunities. It was the hard
work, dedication and agility that everyone demonstrated
throughout this period that made the difference.

From an operational perspective, we successfully executed
a rapid production ramp-up following the temporary shutdowns
of our sites due to government-imposed restrictions and we
manage our volatile supply chain tightly to limit disruptions
and deliver on our plan. In parallel, we continued to invest
in our future growth. We broke ground on the construction
of a new SSV manufacturing facility in Mexico, which is
expected to provide us an additional 50% capacity and be
operational by the end of the third quarter this year. We also
introduced multiple models across all our product lines
and invested a significant amount in R&D.

However, this crisis forced us to prioritize and we had to wind
down the production of Evinrude outboard engines to focus
our time and investment on our boat brands. This process
is complete, and we are now focused on new technology and
innovative marine products, including a new family of engines
with Project Ghost and the next generation of entry level
pontoons with Project M.

We started the year with strong retail momentum, growing
at a pace of about 15%. COVID-related restrictions and the
“staycation” phenomenon accelerated that growth, which
included a higher-than-normal influx of first-time buyers:
more specifically, over 30% this year, compared to the usual
20% we typically experience. This has created an excellent
opportunity for us to convert these new buyers into life-long
customers. These circumstances led to year-over-year growth
of 25% for our Powersports retail in North America, with
all our product lines experiencing the same dynamic at
varying degrees.

In October 2019, we launched our Mission 2025 (M25)
five-year strategic plan, which was well received by all our
stakeholders. It rests on four pillars: Growth, Customer
Experience, Employee Experience and Lean. The strategic
priorities that relate to them, such as focusing our growth
on Can-Am and Marine, remain consistent with our ambitions.
However, we are in the process of adapting some of our key
initiatives. Further emphasis is being placed on turning
new entrants into customers for life and enhancing their
purchasing experience; increasing our focus on diversity,
equity and inclusion priorities, and further promoting the
wellbeing of our employees.

The exceptional demand for our products since the onset
of the pandemic also entails having to review our financial
targets. For the time being, such undertaking has been
placed on hold given there are too many variables. When
the situation is more stable, we will adjust them to reflect
our new reality.

THE FUTURE IS NOW – ELECTRIC IS HERE

Throughout our more than 50-year history, we have
continued to reinvent ourselves, while always remaining
the leader in the industry. We began with our 2-stroke
technology and progressed to the 4-stroke, then introduced
4-stroke supercharged, followed by 2- and 4-stroke
turbocharged. This is one of our strengths and I’m very
proud of it. And now, we are entering a new era with
electrification. For us, this is the normal evolution of
technology, that needs to take place over time.

I have always said that introducing electric vehicles was
not a question of IF but WHEN. And that time is now. We
recently announced our plan to invest $300 million over
the next five years to offer further options to consumers,
with electric models in each of our powersports and marine
product lines, by the end of calendar 2026.

We are very excited to be taking new steps into the world
of electrification and to be developing new ways to move
people through alternative technologies. We aim to offer
electric options in specific segments that are best suited
to an electric experience, and limit the compromise in
performance and range. This will attract new customers,
and it will allow us to grow the industry.

“
“

W E AR E ENT ER ING A NEW

ERA W IT H EL ECT RIFIC AT ION.

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Furthermore, after analyzing the various available
technologies, we are committed to developing our very
own. This will enable us to better integrate the powerpack
into our vehicles. Developing a modular powerpack will
also allow us to leverage our investments and keep costs
down, resulting in a more competitive offer. No other OEM
in our industry is making a more significant commitment
than we are. Our Rotax modular electric powerpack
technology will be jointly developed by our Gunskirchen
and Valcourt teams, with the collaboration of our people
in Rovaniemi and Sturtevant. We expect to offer the first
EV within the next two years, followed by a rapid roll-out
across all our product lines.

CONCLUSION

We have faced many crises throughout our history, and
we have always overcome obstacles by working together.
FY21 was an unusual year, and everyone rose to the
occasion and allowed us to deliver exceptional results. I
would like to express my sincere gratitude to our employees,
dealers and suppliers for their agility, dedication, and
resilience during this past year. I am also grateful to the
members of our Board of directors for their support and
counsel, and to our shareholders for their commitment
to BRP.

With a very robust start to the new fiscal year, continued
strong retail demand across all product lines, combined
with key investments, we are well positioned to continue
to drive solid results.

We remain confident in the future, knowing that the spirit
of Together We Ride is stronger than ever.

JOSÉ BOISJOLI
President and CEO

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$84.17

JANUARY
2021

FINA NCIAL HI GHLIGHTS FI SCAL YEAR 2021

15%

31%

15%

29%

REVENUE BASE BY CATEGORY
At 31/01/21

SHARE PRICE
DOO MONTHLY CLOSING PRICE IN CA$

47%

YEAR-ROUND PRODUCTS

SEASONAL PRODUCTS

POWERSPORTS PA&A
AND OEM ENGINES

MARINE

$55.03

FEBRUARY
2020

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REVENUE BASE BY GEOGRAPHY
At 31/01/21

DOO PERFORMANCE
OVER THE LAST YEARS IN CA$

$438.29

$543.15

56%

UNITED STATES

INTERNATIONAL

CANADA

$100.00

$169.39

$329.49

$246.37

BRP

S&P/TSX

$100.00

$120.00

$124.41

$121.20

$135.07

$135.21

2016

2017

2018

2019

2020

2021

TOTAL REVENUES
CA$ millions / At 31/01/21

NET INCOME
CA$ millions / At 31/01/21

NORMALIZED EBITDA1
CA$ millions / At 31/01/21

NORMALIZED EARNINGS
PER SHARE – DILUTED1
CA$ / At 31/01/21

EARNINGS PER SHARE
– DILUTED
CA$ / At 31/01/21

CAGR* 9%

CAGR* 19%

CAGR* 29%

CAGR* 16%

182

4,172

4,453

5,244

6,053

5,953

182

257.1

239.1

227.3

370.6

362.9

182

502.7

536.2

655.9

804.4

999.0

182

1.96

2.27

182

3.10

3.83

5.39

2.27

2.21

2.28

3.96

4.10

1 See Non-IFRS measures section on p. 29.

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 January 31, 2017.

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ADV ENTURE BY DESIGN

We are a global leader in the world of powersports vehicles,
propulsion systems and boats, built on over 75 years of
ingenuity and intensive consumer focus.

A STAND-ALONE COMPANY SINCE 2003

8 ICONIC BRANDS

COMPANY OVERVIEW
(As of January 31, 2021)

$6.0B
ANNUAL SALES

MORE THAN
14,500 DRIVEN, RESOURCEFUL
EMPL OYEES W ORL DWIDE

TSX: DOO
NASDAQ: DOOO

130+ COUNTRIES W HERE OUR

PRODUCTS ARE AVAILABL E

POWE RSP ORTS
YEAR- ROUND
PRODUC TS

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OUR YEAR-ROUND PRODUCTS FI ND

FAVOUR WI TH T HOSE WHO LOVE FREED OM

AND VAL UE COM MUNI TY. WHETHER FO R

WORK OR PLAY, ON-ROAD A ND OF F-R OAD

VEH ICL ES APPEAL TO A WI DE SPECTRU M

OF PEOPLE THE WORLD OVER, AL LOW ING

TH EM TO TAME NEW TERRAI NS AND RISE

TO N EW CHALLENGES.

MARKET INDICATORS

2,8 2 4.2 MILLIONS
GLOBAL S AL ES FOR THE Y EAR E NDE D

CA$

ON JANUA RY 31, 2021

1. 2%
GLOBAL SALES VS FY2 0

ON -ROA D

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Since the introduction of the Can-Am Spyder in 2007, revolutionizing
the on-road category, Can-Am has pursued its efforts to make the open
road accessible to everyone. Our 3WV are changing the face of riding in
multiple ways, defying conventions and proving that, sometimes, the most
exciting way forward is the opposite direction to everyone else.

> ACHIEVING RECORD GROWTH Can-Am On-Road experienced record retail numbers
and market share growth, with retail sales increasing by more than 20% for this
season (while the motorcycle industry decreased). We ended the 2020 season with
the #1 market share in the 3WV industry.

> ATTRACTING NEW RIDERS In FY21, 54% of Can-Am Ryker owners are new to

the sport, and more than 70% are under the age of 55. We have succeeded in
accomplishing what traditional motorcycle manufacturers have been trying to do
for years: attracting new, younger riders.

> CHANGING THE FACE OF RIDING Can-Am Ryker owners are ethnically and racially

diverse. With close to 50% of people identifying as non-white, our brand is finding
favour with a more diverse population than is prevalent in the motorcycle industry.

> LAUNCHING A COMMUNITY OF WOMEN LIKE NO OTHER Led by a passionate and

engaged Facebook community, our “Women of On-Road” program helps women
overcome barriers to riding through inclusivity and education. The result: 36%
of Can-Am Ryker vehicle owners are female in FY21 (compared to 19% in the
motorcyle market).

> EASING RIDER EDUCATION BRP collaborates with more than 150 riding schools in
North America as part of its Can-Am Rider Education Program (REP). 80% of the
28,000+ participants who’ve completed REP did not previously have a licence, and
the program’s rate of conversion to new units is over 30%.

OFF -ROAD

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The world’s fastest growing off-road brand, Can-Am offers a wide range of
vehicles that allow riders to connect with the land. Ranchers, hunters, trail
riders, mud riders, rock crawlers, and off-road racers feel alive on their
Can-Am ORV, and are willing to share it with the world.

> FROM STRENGTH TO STRENGTH In FY21, Can-Am Off-Road maintained its strong

forward momentum by improving brand familiarity, trust and consideration among
off-road enthusiasts, generating a 29% increase in global retail sales. The sector as
a whole showed continued growth, with a significant increase in first-time buyers,
observed throughout the pandemic.

> OUR RIDERS TELL ALL Supported by editorial-style content on multiple channels,

including social media and lifestyle media publications, Off-Road Livin’ showcases
the real stories of some of our customers and the central role Can-Am Off-Road has
in their lives.

> POWER INFLUENCERS SPREAD THE WORD Our ambassadors are true ‘megaphones’ for
the Can-Am Off-Road brand, responsible for nearly half a billion impressions, more
than 15 million social engagements, and nearly 5,000 pieces of content. In FY21,
we signed powersports legends Travis Pastrana and Brian Deegan, as well as renowned
hunters Steve Rinella and the MeatEater organization, and several well-known regional
farmers and ranchers.

> MORE VICTORIES PROVE OUR WORTH Can-Am claimed a fourth consecutive Dakar

Rally class victory—a world first—and finished 1st, 2nd and 3rd at the Ultra4 King
of the Hammers race, proving the durability, reliability, and performance of Can-Am
Off-Road vehicles.

> PERFORMANCE-ENHANCING INNOVATIONS TARGET SPECIFIC RIDER GROUPS For

side-by-side fans, the new Smart-Shox suspension technology self-adjusts to any
terrain in a split-second for unmatched comfort and handling that any rider can feel.
For ATV mud-riders, Visco-4Lok technology returns the most traction in difficult
conditions, and has garnered significant praise after only a short time in market.

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SEAS ONAL
PRODUC TS

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OUR SEASONA L PO WERSPORTS BRAND S

HAVE B EEN BL AZING TRA ILS ON SNOW

AND WATER F OR OVER HALF A CENTURY,

OCCUPY ING LEA D POSI TI ONS ACROSS

TH EIR M ARK ETS. THEI R NA MES EVOKE NO T

ONLY QUA LI TY AND I NNOVATION, BUT AL SO

A L IFEST Y LE OF ADVE NTURE .

MARKET INDICATORS

1,8 2 5.0 MILLIONS
GLOBAL S AL ES FOR THE Y EAR E NDE D

CA$

ON JANUA RY 31, 2021

4. 0%
GLOBAL SALES VS FY2 0

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Ski-Doo was the first recreational snowmobile in the world, and is still the
#1 in the global market. Constant innovation, that meets and exceeds
customer expectations, continues to enhance the riding experience and
keeps snowmobilers loving THAT SKI-DOO FEELING.

> RECORD-HIGH MARKET SHARE Overall, sales in the snowmobile industry decreased
in the winter season 2020-2021, but Ski-Doo gained market share, finishing the
season with a record high. Ski-Doo is the #1 brand in market share in all segments
for North America.

> STRONG BRAND RECOGNITION That Ski-Doo Feeling continues to resonate with

consumers. The campaign generates strong overall recognition and brand linkage,
with both exceeding BRP targets. With the pandemic, the brand’s focus was on
highlighting memorable moments riding a Ski-Doo, such as lakeside cruises,
sled-skiing, or first family rides, and showing people what else there is to discover.

> NEW TWO-STROKE TURBO ENGINE IS A HIT It was a successful first year for this

innovative and reliable engine. The 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. The “Late Intro” boosted momentum and generated significant consumer
engagement on social platforms.

> NAVIGATION APP EXPLODES TARGET BRP GO! boosts the riding experience with

turn-by-turn navigation you can mirror on your Ski-Doo gauge cluster. The app also
works as a standalone, with the rider’s phone supported by the Glovebox extension,
designed for GPS devices. Even before the end of April 2021, BRP GO! has more
than 40,000 downloads, exceeding our target by more than 1200%!

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In 2020, Lynx celebrated 15 years as the most sold brand of snowmobiles
in Europe. With a more than 50-year history, and an impressive record of
racing success, Lynx is synonymous with snowmobiling for snow junkies
across Scandinavia and Russia.

> STILL #1 Lynx remains the market leader in Europe, and Lynx and Ski-Doo combined
market share in Scandinavia went up another 5% in FY21 compared with last year.

> PODIUM POSITIONS ACROSS SCANDINAVIA Lynx rider Joonas Keskiaho won the Finnish
snowcross Pro Class championship this season, with last year’s winner, Mikko Osmo,
also a Lynx rider, finishing second. Over in Sweden, Lynx riders Magnus Reiten and
Axel Johansson finished second and third respectively in the Swedish snowcross
Open Class championship series.

> A RUGGED SNOWMOBILE FOR EXTREME ADVENTURE The new Xterrain Brutal is the

most rugged snowmobile in the history of Lynx. Its long, wide, high-patterned track
and Rotax 850 E-TEC engine with 165 horsepower are made to thrive in extreme
conditions. Combining raw power and easy handling with sporty riding features, the
Xterrain Brutal is expected to be the go-to machine for adventurers.

> A RENEWED UTILITY LINEUP Lynx has a strong heritage of popular utility snowmobiles.

The all-new Ranger family, built on the RADIEN-X platform, covers the range of utility
needs, from light to heavy-duty, with the 59 (widetrack), 69 Ranger (super widetrack),
and 69 Ranger Alpine especially designed for heavy-duty use in ski resorts.

> NEW ENGINE FOR A UNIQUE WIDETRACK OFFERING The Rotax 600 EFI engine provides

85 hp for the Lynx 59 Ranger and the Lynx Xterrain Brutal. The widetrack and sporty
riding of these two models is a versatile and unique mix for those who need to work
and play.

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The world’s first personal watercraft is also the world’s best-selling brand of
PWC. As people around the globe have sought out more physically distanced
ways to play, Sea-Doo has continued to stand out as a vehicle of choice.

> #1 IN NORTH AMERICA The global leader, Sea-Doo is now #1 in all segments in both
Canada and the US in FY21, for the first time since 2004, with a total market share
of 57%.

> GROWTH IN ALL MARKETS All PWC markets have grown in FY21, despite the

challenging context and limitations in product availability. Global retail was up 9%,
with a 1% increase in market share. We saw exceptional growth in the LATAM and
EMEA regions, with increases in retail volume sales of 25% and 17% respectively.

> STAYCATION AND RECREATION FUEL GROWTH As with other products, the “staycation”
trend led to new customers discovering the joys of living the Sea-Doo Life: 52%
of recent purchasers had never owned a PWC before, and 26% were new to the
powersports category. Recreational models were the main fuel for growth this year,
thanks to the new GTI platform, followed by continued growth in the touring
segment. Additionally, Sea-Doo continued to establish itself as a lifestyle brand,
fuelled by our Live the Sea-Doo Life campaign.

> NEW RECREATIONAL MODEL GAINS TOP SPOT The 2020 Sea-Doo GTI fast became the
number-one choice in the recreational segment, due to its completely redesigned
platform. Featuring an integrated sound system, innovative hull design, class-leading
storage, and a host of LinQ accessories, the platform has won awards and captured
the imagination of consumers.

POWE RSP ORTS
PA&A AN D OEM
ENGIN ES

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INNO VATIVE PA RTS , ACCESS ORIES AN D

APPA REL (PA&A) , AND ROTAX ENGINES IN

OUR VEHICLES, ENABLE US TO OFFER OU R

CUST OMERS A FULL POWERSPORTS

EXP ERIENCE. ADDI TIONALLY, WE EXTEN D

TH E REA CH OF OUR BRA ND BEYOND OUR

OWN VEHICLES. THE SK Y I S THE LIMIT !

MARKET INDICATORS

88 2. 8 MILLIONS
GLOBAL S AL ES FOR THE Y EAR E NDE D

CA$

ON JANUA RY 31, 2021

10 .4%
GLOBAL SALES VS FY2 0

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PART S, ACCESSORIES
AND APPAREL ( PA&A)

BRP parts, accessories and apparel enhance the customer experience.
They make riding more comfortable, through high-tech outerwear, or
windshields and roofs to protect from the elements. They also extend
the functionality of the product through our unique, industry-leading,
easy-fasten LinQ accessories such as coolers, luggage racks, and
tool or equipment holders.

> A GROWING WORLDWIDE BUSINESS With the continuous development of the PA&A
portfolio of products at BRP, the line of business is now worth over CA$800M. The
LinQ ecosystem contributed to a constant increase in the share of overall sales,
across product lines, in FY21.

> RECORD AWARENESS FOR ACCESSORIES Brand ambassadors have been getting the
word out for Can-Am Maverick X3 accessories. Rally driver Ken Block has been
promoting the Apache Backcountry tracks for winter, while all-round professional
motorsports competitor Travis Pastrana has been showcasing the new audio roof.

> SKI-DOO GETS ADDED HAULAGE CAPACITY The LinQ sleigh is lightweight, and is easily

pulled behind a Ski-Doo so customers can take whatever they need on their
adventures. It provides an extra 484 L (110 gallons) of capacity underneath its
weather-resistant cover, and features LinQ anchors on top to accommodate even
more gear, fuel, or accessories.

> CAN-AM SIDE-BY-SIDES NOW CUSTOMIZABLE FOR DIFFERENT ACTIVITIES Expertly-chosen,
themed accessory packages were launched for the Can-Am Defender. They target
activities such as hunting, snow removal, working outdoors, or play, and offer three
levels of upgrades.

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OEM ENGINES

Over the past century — beginning with the first freewheel hub for
bicycles, then state-of-the-art-engines for light aircraft, and innovative
powertrains that propel BRP’s powersports vehicles — Rotax has
reinvented mobility. They have been part of the BRP product and brand
portfolios for 50 years, getting customers’ hearts beating as they explore
land, water, and sky.

> CELEBRATING 100 YEARS WITH STYLE For Rotax’s 100-year anniversary, we launched
a limited edition of the successful 912iS and 915iS aircraft engines, with a special
commemorative design and exceptional service package only available for order in
2020. They also came with a voucher for the Rotax centenary merchandise collection
at the online Rotax Fanshop. Additionally, well-known Italian espresso machine-maker
Rocket built an exclusive machine for BRP, using an engine housing. The coffee
machine showcases the design of the limited-edition anniversary engines while
offering the perfect Italian coffee.

> ROTAX MAX DOME EXPANDS ITS OFFERING With the July 2019 opening of the Rotax
MAX Dome, BRP made its first foray into the world of direct consumer experience.
Since then, we’ve continued to add new gamified elements to our racetrack and tunnel.
To round off a day of excitement and fun, customers now can visit our brand-new
MAX Lounge, complete with its generous culinary offering that ensures a true feast
for the senses.

> ROTAX PROJECT E20 E-KART THRILLS DRIVERS Launched last year, Rotax’s in-house-

developed electric powerpack made its debut this race season. Despite the shortened
season due to the pandemic, its first race was eagerly awaited, and it thrilled drivers
with its significantly improved and very impressive power output, reduced weight, and
greater efficiency. The next race season is already around the corner and promises to
be spectacular once again!

MARINE
GROUP

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SIN CE TH E CRE AT ION OF THE BRP MARINE

GROUP IN 2018, WE ’VE A LREA DY BEGUN

TO TRANS FORM THE I NDUSTRY. LEAN

MA NU FACTURING, UNIQUE A PPROACH ES

TO INNOVATI ON AND DES IGN, AND CAR EFUL

ATT ENTION TO CUSTOM ER EX PERIENCE,

HAVE A LL HAD A NOTICEA BLE POSITIV E

IMPACT O N OUR TOTAL OF FE RING.

MARKET INDICATORS

42 0. 9 MILLIONS
GLOBAL S AL ES FOR THE Y EAR E NDE D

CA$

ON JANUA RY 31, 2021

24 .8%
GLOBAL SALES VS FY2 0

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Alumacraft marked its 75th anniversary just as the fiscal year came
to a close and a new calendar year began. Throughout its history, the
Alumacraft brand has stood for making memories and sharing a love of
fishing and the outdoors with family and friends. What better way to
embody that than with a new product line?

> INDUSTRY GROWTH On a rolling 12-month basis (Sep 2019–Sep 2020), the US

aluminum fishing boat industry (16’-25’) grew by 6.6%. Alumacraft’s market share
held steady year over year.

> STRATEGIC PARTNERSHIPS TO BEST SERVE THE MARKET To better serve consumer and
dealership needs across all segments, a wide range of outboard engine options are
now offered, thanks to strong partnerships with Mercury, Yamaha, Suzuki and Honda.

> A FISH AND SKI CROSSOVER BOAT TO ENTICE A WIDER AUDIENCE Launched in July 2020,
the Competitor 175 and 185 FSX, Fish and Ski crossover boats are designed to appeal
to families who want more experiences on the water. Two high-back jump seats, a
large dual-access livewell, and a ski pylon within the rear casting deck of the Competitor
model line provide both versatility and functionality. Consumers trying to decide
whether to purchase a boat for fishing or a boat for recreation will now be able to
find everything they want in one product, and we expect to see this reflected in the
coming year’s sales.

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A pontoon unlike any other on the water, Manitou has been redefining the
category for 35 years, with high-performance, high-technology products.
This last year saw a sharpened focus on customer expectations to drive
further increases in sales for the coming seasons.

> RETAIL SALES UP 15% Manitou has seen significant retail growth in the 2020

season, and has capitalized on the continued momentum in the boating industry. On
a rolling 12-month basis from Sep 2019–Sep 2020, the US pontoon industry grew
by approximately 14.9% with Manitou market share staying flat. For the same period,
Manitou has grown retail sales by over 15%, thanks to a well-balanced line-up and
a recently-expanded outboard engine offering from strategic partnerships with
Mercury, Yamaha, Honda and Suzuki.

> SIMPLER ORDERING In summer 2020, Manitou introduced a simpler, more streamlined
process for ordering and configuring boats aimed at improving the customer buying
experience. Inspired by the model created by successful automotive OEMs, Manitou
has bundled the most desirable options into model-specific packages, enabling
customers to quickly find and select the right features for them.

> A REFRESH FOR OUR ENTRY-LEVEL OFFERING The Aurora LE, the most accessible
Manitou model, was completely refreshed in July 2020, to address the needs of
newcomers to the world of boating. The Aurora LE now offers customers premium
seating options, finishes and features, such as a 7” Garmin digital display, normally
only found on higher-end models, all at an affordable price. This extraordinary value
is expected to positively impact sales in the coming year.

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The #1 brand of aluminum boats in Australia, Quintrex also celebrated
its 75-year anniversary in 2020. The brand is famous for its revolutionary
flared bow. Quintrex’s sister brands—Stacer, Savage, and Yellowfin Plate—
are equally iconic. With the implementation of the BRP Manufacturing
System (BRPMS), our factory in Australia has streamlined its processes,
leading to higher quality products, and the ability to extend unique
product features across the range.

> RETAIL SALES UP 17% Recreational boating in Australia experienced a surge in

2020, thanks to the “staycation” phenomenon. The number of first-time boat buyers
was close to double that of previous years, and these new buyers are more family-
oriented and favour a higher value boat. Consequently, retail sales for Quintrex and
our other Australian brands increased 17% year over year. The forward-order book
for all brands was booked out in December 2020.

> EASIER CUSTOMIZATION ENABLED The 12-month forward-order program launched in
FY21 to more accurately manage production planning, has improved the customer
experience by making customization easier and more flexible.

> EXTENSION OF FLARED HULL TO STACER BRAND A new lineup of Stacer boats was

launched, sporting the famous Quintrex flared bow, and giving boaters a smoother,
drier ride, as well as increased stability at rest. The unique stretch-forming process,
mastered on Quintrex boats, provides a sharper point of entry to slice through waves,
while directing spray away from occupants of the boat.

CORPORATE SOCIAL
RESPONSI BILI TY

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

Our CSR program is built on six pillars: governance, the environment,
employees, product responsibility, supply chain management, and role in
the community. With the extraordinary events of 2020, our role as a good
corporate citizen naturally focused mainly on the well-being of our employees
and our communities.

> STRONG GOVERNANCE AND LEADERSHIP FOR THE PANDEMIC While the shutdown of
manufacturing sites was sudden and lasted for several months around the world,
we were not caught off guard. Our health, safety and security (HSS) structure includes
an emergency response plan, with defined governance at the global and local levels,
and our management teams around the world were ready to tackle this unprecedented
situation. We invested time and effort in ensuring a safe workplace; we provided
clear guidelines and tools to our sites and offices; and continually monitored the
evolution of the situation locally, to communicate each new event and its impact
on us to our 14,500 employees. We also shared our learnings to support other
manufacturers in reopening their facilities and allow them to adjust to this new
reality within their community.

Estrie

Gunskirchen

Juarez

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> CONTINUED SUPPORT FOR OUR COMMUNITIES IN THIS TIME OF NEED Our people at
each of our sites around the world mobilized to support their local communities
and such initiatives were funded by the company. Over the course of the year, BRP
also donated supplies to healthcare providers, aid kits to families, material and
equipment to organizations, and supported local hospital foundations and foodbanks,
for a total of CA$ 1,506M.

> BRP RECOGNIZED AS A GOOD PLACE TO WORK Our manufacturing sites were once

again recognized at a national level for their CSR efforts. All our facilities in Mexico
received the Socially Responsible Company (ESR) award from the Mexican Center
for Philanthropy (CEMEFI) once again this year. Our Rotax site in Austria was named
the healthiest large company in the country by the Network of Workplace Health
(ÖNBGF), and was awarded the “Felix Familia” prize by the administrative region for
its family- and employee-friendly corporate culture. Additionally, through an internal
survey conducted last fall, 92% of our employees confirmed they intended to
continue to work at BRP for at least the next 12 months.

> IMPORTANT CONTRIBUTIONS TO COMMUNITY CHARITIES The Can-Am for a Cause

program motivated BRP’s dealers in Texas and Canada to build or reinforce ties with
local non-profit organizations. Twenty vehicles were donated, in partnership with our
dealer network, to help deserving charity groups, who share common values with BRP,
and who could benefit from the use of a Can-Am Defender off-road utility vehicle.

OUR C SR
PROGRA M IS
BUILT ON
SIX PILLA RS

GOVERNANCE

ENVIRONMENT

EMPLOYEES

PRODUCT RESPONSIBILITY

SUPPLY CHAIN MANAGEMENT

ROLE IN THE COMMUNITY

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RECONCILIATION TABLE S FISCAL YEA R 202 1

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

(in millions of Canadian dollars)

January 31, 2021

January 31, 2020

January 31, 2019

January 31, 2018

January 31, 2017

Twelve-month periods ended

Net income

Normalized elements

$362.9

$370.6

$227.3

$239.1

$257.0

Restated10

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

(121.8)

Transaction costs and other related expenses2

Restructuring and related costs (reversal)3

Impairment charge4

(Gain) loss on litigation5

Transaction costs on long-term debt

Evinrude outboard engine wind-down6

COVID-19 pandemic impact7

Gain on disposal of property, plant and equipment

Gain on NCIB

Depreciation of intangible assets related to business combinations

Other elements

Income tax adjustment
Normalized net income1
Normalized income tax expense1

Financing costs adjusted1,8

Financing income adjusted1,8

Depreciation expense adjusted1,9
Normalized EBITDA1

1.5

7.5

177.1

(4.0)

12.7

96.1

10.6

(12.7)

(12.2)

4.4

0.6

(45.7)

477.0

167.1

107.3

(7.6)

255.2

$999.0

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

1.2

(0.1)

(3.8)

308.6

105.4

68.0

(2.2)

176.1

$655.9

(53.3)

2.9

5.9

2.1

1.5

47.3

245.5

90.2

53.5

(2.2)

149.2

$536.2

(82.0)

(1.1)

70.7

(3.6)

(19.0)

222.0

89.1

60.0

(1.5)

133.1

$502.7

1 See “Non-IFRS Measures” section.
2 Costs related to business combinations.
3 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.

4 During the twelve-month period ended January 31, 2021, the Company recorded an impairment

charge of $177.1 million related to its Marine segment.

5 The Company was involved in patent infringement litigation cases with one of its competitors.
6 During the three- and twelve-month periods ended January 31, 2021, the Company incurred costs related to the wind-down
of the outboard engine production such as, but not limited to, retail sales incentives, restructuring costs and other exit costs.

7 Incremental costs associated with the COVID-19 pandemic such as, but not limited to, labour cost related to furloughs.
8 Adjusted for transaction costs on long-term debt and normal course issuer bid program (“NCIB”) gains and losses in net income.
9 Adjusted for depreciation of intangible assets acquired through business combinations.
10 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.

INFORMATION 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 2022 Tentative Earnings Calendar
First Quarter:
June 03, 2021
Second Quarter: September 02, 2021
Third Quarter:
Fourth Quarter: To Come

December 01, 2021

Issued and Outstanding Shares
As of April 21, 2021, there were 40,010,016 Subordinate Voting Shares and
43,891,671 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 June 3, 2021,
via live webcast.

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.

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FORWARD-LOOKING STATEMENTS
Certain statements in this Annual Review, including, but not limited to, statements
relating to the Company’s expectation for continued surge in consumer demand for
its products and its ability to convert new entrants into life-long customers, statements
relating to the construction of a new SSV manufacturing facility in Mexico and the
expected impact of this proposed new facility on the Company’s production capacity,
statements relating to the Company’s five-year plan and its related investments into
the electrification of its product lines and its expected impact on consumer experience
and industry growth, its ability to address the COVID-19 pandemic and other
statements about the Company’s prospects, expectations, anticipations, estimates
and intentions, results, levels of activity, performance, objectives, targets, goals or
achievements, priorities and strategies, financial position, market position, capabilities,
competitive strengths, beliefs, the prospects and trends of the industries in which
the Company operates, the expected growth in demand for products and services in
the markets in which the Company competes, research and product development
activities, including projected design, characteristics, capacity or performance of
new technology and innovative products and their expected scheduled entry to market,
expected financial requirements and the availability of capital resources and
liquidities or any other future events or developments and other statements that are
not historical facts constitute forward-looking statements within the meaning of
Canadian and United States 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 the Company’s current objectives, goals,
targets, strategic priorities, expectations and plans, and in obtaining a better
understanding of the Company’s 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
contained herein. 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,
the following factors, which are discussed in greater detail under the heading “Risk
Factors” of its Annual Information Form: the impact of adverse economic conditions
such as those resulting from the ongoing coronavirus (known as COVID-19) health
crisis (including on consumer spending, the Company’s operations and supply and
distribution chains, the availability of credit and the Company’s workforce); any
decline in social acceptability of the Company’s products; fluctuations in foreign
currency exchange rates; high levels of indebtedness; any unavailability of additional
capital; unfavourable weather conditions; any failure of information technology
systems or security breach; the Company’s international sales and operations; any
supply problems, termination or interruption of supply arrangements or increases in
the cost of materials; seasonal sales fluctuations; any inability to comply with product
safety, health, environmental and noise pollution laws; the Company’s large fixed
cost base; any inability of dealers and distributors to secure adequate access to
capital; the Company’s competition in product lines; any Company’s inability to
successfully execute its growth strategy; any failure to maintain an effective system
of internal control over financial reporting and to produce accurate and timely financial
statements; any loss of members of the Company’s management team or employees
who possess specialized market knowledge and technical skills; any inability to
maintain and enhance the Company’s reputation and brands; any significant product
liability claim; any significant product repair and/or replacement due to product
warranty claims or product recalls; the Company’s reliance on a network of independent
dealers and distributors; any Company’s inability to successfully manage inventory
levels; any intellectual property infringement and litigation; any Company’s inability
to successfully execute its manufacturing strategy or to meet customer demand as a
result of manufacturing capacity constraints; increased freight and shipping costs or
disruptions in transportation and shipping infrastructure; any failure to comply with
covenants in financing and other material agreements; any changes in tax laws and
unanticipated tax liabilities; any impairment in the carrying value of goodwill and
trademarks; any deterioration in relationships with employees; pension plan liabilities;
natural disasters; any failure to carry proper insurance coverage; volatility in the
market price for the Subordinate Voting Shares; the Company’s conduct of business
through subsidiaries; the significant influence of Beaudier Group and Bain Capital;
and future sales of Subordinate Voting 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.
Unless otherwise stated, 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 statements contained in this Annual Review, 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.
The forward-looking statements contained in this Annual Review are expressly
qualified by this cautionary 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 slightly
down to up high-single digits %; market share that will remain constant or moderately
increase; no further deterioration and a relatively rapid stabilization of global and
North American economic conditions, including with respect to the ongoing COVID-19
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, excluding
the impact of the wind-down of Evinrude E-TEC outboard engines and COVID-19,
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; and 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.

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, 2021
by the Company to the most directly comparable IFRS measure.

The information contained in this Annual Review was established as of May 1, 2021.
Legal deposit Bibliothèque nationale du Québec 2021

BR P. C O M

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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