Summary of BRP's 2025 Analyst and Investor Day Company Overview - **Company**: BRP (Bombardier Recreational Products) - **Event**: 2025 Analyst and Investor Day - **Key Management Presentations**: José Boisjoli (President and CEO), José Perreault (Chief Marketing Officer), Sandy Scullion (President of Powersports), David Baker (VPGM North America), Steve Peltier (VPGM International), Thomas Uhr (CTO), Patrick Dussault (EVP Global Manufacturing), Sébastien Martel (CFO) [1][2][4] Strategic Plan: M28 - **Introduction of M28**: A new strategic plan aimed at capturing the full potential of the powersports market, following the previous M25 plan [5][25] - **Financial Targets**: - Revenue target of $12 billion and normalized EPS of $8 by fiscal year 2028 [7][30] - Growth in revenue of 7% CAGR and EPS growth of 33% CAGR [30][31] - **Focus Areas**: - Powersports market leadership, particularly in Off-Road Vehicles (ORV) [25][52] - International market expansion with a revenue target of $2.5 billion [27][53] Historical Context and Performance - **M25 Achievements**: - Revenue increased by 36% and normalized EBITDA by 32% since fiscal year 2020 [6] - Adjusted financial targets in June 2022 due to market conditions [7][8] - **Market Challenges**: - Experienced disruptions from COVID-19, supply chain issues, cyberattacks, and geopolitical tensions [10][11][12] - Inventory management strategy led to a 31% reduction in Powersports inventory in North America [12] Market Position and Competitive Landscape - **Market Share Growth**: - Increased market share from sub-10% to 25% in the off-road industry over the last decade [62][65] - Can-Am retail grew over 60% from fiscal 2019 to fiscal 2025, outperforming competitors [61] - **Dealer Relationships**: - Focus on dealer profitability and support, leading to improved dealer sentiment [50][52] - BRP is now the leading OEM in terms of units sold per dealer [21] Customer Insights - **Customer Base Expansion**: - Added 1 million unique customers since 2021, with a focus on engaging new entrants and conquesting from competitors [37][38] - Customer demographics have shifted, with an increase in wealth among customers [40][41] - **Brand Awareness**: - Significant improvements in brand awareness and customer perception, particularly in the ORV segment [42][43] Strategic Initiatives - **Powersports Focus**: - Aim to regain 30% market share in side-by-side vehicles and 25% in ATVs by fiscal year 2028 [27][52] - **International Growth**: - Targeting growth in emerging markets, particularly in South Asia and China [53] - **Customer Experience Enhancements**: - Initiatives to improve dealer and customer experience, including service excellence and ownership experience [54][55] Future Outlook - **Investment in R&D**: - Continued investment in R&D at approximately 5% of revenue to drive innovation [22] - **Defense and Specialized Vehicles**: - Exploring opportunities in defense and specialized vehicles, responding to increased global demand [34][35] Conclusion - **Overall Strategy**: - The M28 plan is positioned to leverage BRP's strengths in innovation, dealer relationships, and market presence to achieve ambitious growth targets in the powersports industry [25][30][31]