BRP : Q1 2021 Earnings Presentation

QUARTERLY REVIEW

FIRST QUARTER ENDED APRIL 30, 2020

Forward-Looking Statements

Caution concerning forward-looking statements

Certain statements in this presentation, including, but not limited to, statements relating to our expectations for FY21, financial outlook and related assumptions; our marine strategy realignment and planned investments and expected impact thereof; our ability to face the COVID-19 ongoing health crisis and expectations regarding the suspension or resumption of our operations and projected reductions of our operating expenses and capital expenses 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.

QUARTERLY REVIEW	2
First Quarter Ended April 30, 2020

JOSÉ BOISJOLI

PRESIDENT AND CHIEF EXECUTIVE OFFICER

QUARTERLY REVIEW

FIRST QUARTER ENDED APRIL 30, 2020

FY21 Q1 Context

Context

The beginning of FY21 was marked by the impact of COVID-19 in International markets

• The virus initially hit China forcing our dealers to close their businesses starting in January
• Then it impacted Europe resulting in multiple dealership closures starting in February, notably in Italy, Spain and France

North America was off to a strong start up until mid-March when the pandemic hit the region leading to the implementation of containment measures

• Powersports retail in the first half of the quarter was strong, up 24% from the previous year when excluding snowmobile
• Containment measures forced many dealers to close in the second half of March and early April, and also led us to shut down production in all our facilities
• As containment measures evolved and dealers in certain regions were able to reopen, retail came back strongly in the second half of April

North American Retail Sales Evolution

North American Powersports Year-over-Year Retail Growth

Units, excluding snowmobile

Beginning of containment

measures in

North America

Feb	Mar	Mar	Apr	Apr
	H1	H2	H1	H2

QUARTERLY REVIEW	4
First Quarter Ended April 30, 2020

Managing through the COVID-19 Situation

Key Initiatives		Protecting our Financial Flexibility

Proactively taken actions to ensure the health and safety of our employees and limit COVID-19 potential impact on our business

• Implemented strong safety measures including work from home processes, temperature screening, enhanced sanitization protocols, social distancing practices, supply of protective equipment and operations adjustments across all of our sites
• Adjusted production plans in line with government requirements and expected demand

	FY21 OVERHEAD
RIGHT-SIZING	REDUCTION
Up to $450M	[1]
OUR COST BASE

Implemented cost mitigation measures

• Reduced cost base through hiring freeze, terminations, temporary layoff and salary reduction
• Postponed certain discretionary spending
• Marine strategy realignment and discontinuation of outboard engines production

Continued focus on liquidity preservation

• Focusing CAPEX investments on key projects that have higher expected returns
• Suspension of the dividend and non-renewal of the NCIB
• Enhanced our liquidity position by successfully completing the issuance of a new covenant-lite US$600M term loan B

	FY21 CAPEX
FOCUSED CAPEX	TARGET
$220M to $250M
INVESTMENTS

			REVOLVER
IMPROVED OUR	CASH ON HAND		AVAILABILITY
~$680M	[2]	$700M	[2]
LIQUIDITY POSITION

[1]Reduction vs. initial plan for FY21 [2]As at May 8, 2020, following the completion of the Term B loan and after reimbursing our fully drawn revolving credit facility

Appropriate measures taken to protect our employees and our financial flexibility

QUARTERLY REVIEW	5
First Quarter Ended April 30, 2020

Discontinuation of Outboard Engines Production

STRATEGIC RATIONALE

The COVID-19 situation has forced us to review downward our short term growth assumptions and prioritize our investments

Despite its innovative technology, our outboard engines competitive positioning has been eroding

over the years due to its limited exposure to the "packaged" segment

Given this trend, our outboard engines profitability and cash generation profile has been underperforming vs. the rest of the business

Our marine strategy, coupled with continued investments in the line-up, was expected to lead to an improved profitability profile over the mid to long-term

In light of the current situation, our revised expectations for the outboard engines business indicate limited profitability improvement in the short term

Discontinuing the production of outboard engines will allow us to refocus our marine investments

on higher return projects while improving the company's profitability and cash generation profile

QUARTERLY REVIEW	6
First Quarter Ended April 30, 2020

Maintaining Focus on our Marine Strategy

Our Marine Strategy		Supply Agreement with Mercury

BUY	Entered the North American	Entered the North American	Entered the International
	Fishing Market	Pontoon Market	Aluminum Boats Market

Well-positioned with a

solid portfolio of

reputable boat brands

BUILD	Develop	Increase Sales	Realize
	Dealer Network	of Packaged Boats	Synergies

Drive growth and

efficiency

Concurrently with the

discontinuation of outboard engines

production, we signed a global

outboard engines supply agreement

with Mercury

TRANSFORM	Reinvent the Marine Industry with Project Ghost and Project M

Transform the marine

industry as we did in the Powersports business

This agreement will support our

dealer network development efforts

Committed to our marine strategy and our objective of reinventing the industry

as we continue developing Project Ghost and Project M

QUARTERLY REVIEW	7
First Quarter Ended April 30, 2020

Manufacturing Operations Update

POWERSPORTS MANUFACTURING FOOTPRINT

COUNTRYREGIONPRODUCT LINESOPERATIONS STATUS[1]

CANADA		Valcourt	Snowmobiles and 3WV		IN PRODUCTION
		(Restarted on May 18, 2020)
MEXICO		Juarez and Querétaro	ATV, SSV, 3WV, PWC		PRODUCTION RAMP-UP
	and Engines		(Started May 18, 2020)
AUSTRIA		Gunskirchen	Engines		PRODUCTION SUSPENDED
		(Restart planned for June 2, 2020)
FINLAND		Rovaniemi	Snowmobiles and ATV 6X6		IN PRODUCTION
		(No production suspension)
MARINE MANUFACTURING FOOTPRINT
COUNTRY		REGION		PRODUCT LINES			OPERATIONS STATUS[1]
UNITED STATES		Lansing and St. Peter	Pontoons and		IN PRODUCTION
	Aluminum Fishing Boats		(Restarted on May 18, 2020)
AUSTRALIA		Coomera	Aluminum Boats		IN PRODUCTION
		(Started April 27, 2020)

[1]Based on the information available as at May 27, 2020

Most of our sites have already restarted production

QUARTERLY REVIEW	8
First Quarter Ended April 30, 2020

Delivering Best-in-class Dealer Value Proposition through COVID-19

EASING THE

FINANCIAL BURDEN

OF THE CRISIS

EASED BUSINESS

PROCESSES

STIMULATE

CONSUMER

DEMAND

• Extended floorplan support until the end of June
• Adjusted PerforMAX targets until the end of July to account for potential reduced demand
• Proactively adjusted dealer orders
• Eased coop marketing and warranty claims
• Supported curb-side deliveries of products
• Removed dealer certification compliance requirements
• Provided strategic retail financing and promotion offers
• Implemented smart and targeted go-to-market retail tactics (digital marketing focus, virtual tours, etc.)
• Extended warranty for consumer

Deployed significant efforts to limit the impact of the pandemic on our dealers

and support them to be well-positioned for the rebound

QUARTERLY REVIEW	9
First Quarter Ended April 30, 2020

FY21 Q1: Positive Retail Performance in North America

		North American Powersports Retail Growth by Product Line			BRP VS.
		FY21 Q1 compared to FY20 Q1
		GROWTH	DECLINE	BRP	INDUSTRY	INDUSTRY
				TOTAL POWERSPORTS	4%	LOW-SINGLE
				DIGIT %
				POWERSPORTS EXCL. SNOWMOBILES	10%	LOW-SINGLE
				DIGIT %
				SIDE-BY-SIDE VEHICLES	LOW-	HIGH-SINGLE
				FORTY %	DIGIT %
				ALL-TERRAIN VEHICLES	HIGH-SINGLE	MID-SINGLE
				DIGIT %	DIGIT %
				THREE-WHEELED VEHICLES	LOW-	MID-
				FORTY %	THIRTY %
				PERSONAL WATERCRAFT	LOW-SINGLE	MID-SINGLE
				DIGIT %	DIGIT %
				SNOWMOBILES	HIGH-	MID-
				TEEN %	THIRTY %
				Continued to outpace the industry despite the crisis
		QUARTERLY REVIEW				10
		First Quarter Ended April 30, 2020

FY21 Q1 North American Retail Performance Drivers

BRP North American Powersports Retail Growth[1]

BY COUNTRY	BY DEALER STATUS[2]	BY MARKET TYPE
United
States	Canada	Open	Closed	Rural	Urban
				+24%
		+20%
+14%
					-7%
	-14%
			-21%

[1]Total Powersports excluding snowmobile [2]Based on dealers opened or closed as at April 15, 2020

Solid Powersports retail growth in regions where dealerships and playgrounds remained more accessible amid COVID-19

QUARTERLY REVIEW	11
First Quarter Ended April 30, 2020

Year-Round Products

Highlights

Year-Round Products revenues up 2%

• Primarily attributable to a strong start of quarter and a positive foreign exchange rate variation, partially offset by the COVID-19 impact and higher sales programs

Side-by-Side Vehicles (SSV)

• Ten months into the 2020 season, the North American SSV industry is up high- single digit %
• • Can-AmSSV retail was up mid-thirty % over the same period driven by continued market share gains in the Utility and Sport segments

All-Terrain Vehicles (ATV)

◼ Ten months into the 2020 season, the North American ATV industry is

Revenues

CA$ millions

+2%

$627.0$640.3

FY20 Q1

FY21 Q1

Can-Am SSV: Strong Worldwide Retail Growth

FY21 Q1 Can-Am SSV Retail Sales Growth

up low-single digit %

◼ Can-Am ATV retail was up low-teen % over the same period primarily driven

Units

NORTH

EMEA

>20%

by market share gains in the mid-cc segments

Three-Wheeled Vehicles (3WV)

• Early into the 2020 season, the North American 3WV industry is down low-twenty %
• • Can-Am3WV retail was down low-thirty %, impacted by closure of riding schools, drivers license offices and demo tours due to the pandemic
  • Marketing campaign targeted to new entrants was also stopped given lack of infrastructures to support them

*All variations above represent a change vs. the same period in the previous year

AMERICA

>40%

LATIN	ASIA-
AMERICA[1]	PACIFIC
>40%	~20%

Can-Am SSV continued to perform well in our key markets around the

world despite the crisis

[1]Based on regions where retail data is available (excludes markets served through distributors)

QUARTERLY REVIEW	12
First Quarter Ended April 30, 2020

Seasonal Products

Highlights		Revenues
		CA$ millions

Seasonal Products revenues down 14%

• Primarily due to the COVID-19 pandemic, partially offset by a favourable foreign exchange rate variation

Snowmobile

• The North American snowmobile industry ended its 2020 season on March 30 with retail down mid-single digit %
• • Ski-Dooretail is up mid-single digit %
  • Ski-Dooended the season with its highest market share in its history
• Ten months into the 2020 season, the Scandinavian snowmobile industry is down mid-teen %
• • Ski-Dooand Lynx combined retail is down high-single digit %

Personal Watercraft (PWC)

• Seven months into the 2020 season, the North American PWC industry is flat
• • Sea-DooPWC retail is up low-single digit %
  • Late start of the core retail season due to the pandemic and cold weather in April, but trend improving in May

-14%

$375.4$322.6

FY20 Q1

FY21 Q1

Sea-Doo PWC Production Plan

Sea-Doo PWC Production

Units

-18%

MY19

MY20

Production of MY20 PWC has been reduced by ~18% vs. MY19 due to COVID-19, however, MY21 units will be available for order starting in June to support any additional consumer demand

*All variations above represent a change vs. the same period in the previous year

QUARTERLY REVIEW	13
First Quarter Ended April 30, 2020

Powersports PA&A and OEM Engines / Marine

Powersports PA&A and OEM Engines

Highlights

Powersports PA&A and OEM Engines revenues down 15%

Revenues

CA$ millions

• Mainly attributable to COVID-19 with dealers closed or having limited activities
• • Parts sales are linked to dealers' ability to service units and are picking-up as dealerships re-open

-15%

$185.0$157.3

FY20 Q1

FY21 Q1

	Marine
Highlights	Revenues

Marine revenues down 26%	CA$ millions
◼ Mainly due to a lower volume of outboard engines and boats sold, partially	-26%
offset by the acquisition of Telwater during Fiscal 2020
Boats
◼ Alumacraft retail down low-twenty % for the quarter due to weak industry trends	$146.3
in key markets such as Minnesota, Michigan and Washington
$109.6

• Manitou retail up low-teen % for the quarter

FY20 Q1	FY21 Q1
*All variations above represent a change vs. the same period in the previous year
QUARTERLY REVIEW		14
First Quarter Ended April 30, 2020

SÉBASTIEN MARTEL

CHIEF FINANCIAL OFFICER

QUARTERLY REVIEW

FIRST QUARTER ENDED APRIL 30, 2020

FY21 Q1 Financial Highlights

	Revenues			Diluted Earnings per Share		Normalized Diluted Earnings per Share[1]
CA$ millions			CA$			CA$

-8%

$1,334	$1,230
FY20 Q1	FY21 Q1

	$0.25	-$2.83						-52%
			($2.58)
						$0.54
								$0.26
	FY20 Q1		FY21 Q1				FY20 Q1		FY21 Q1

Highlights vs. Last Year

• Revenues down 8% primarily driven by lower shipments due to manufacturing operations suspension and dealer closures
• Net loss of $226.1M and diluted loss per share of $2.58, including an impairment charge of $171.4M related to the marine segment
• Normalized EBITDA[1] was down 16% to $123.0M and normalized diluted earnings per share[1] was down 52% to $0.26
• Generated $169.4M of free cash flow[2], an increase of $117.1M over last year, and invested $43.3M in CAPEX, down $8.9M from last year

Recent Event

• Bolstered our financial flexibility by successfully securing an incremental covenant-lite US$600M Term Loan B

[2]For a reconciliation of net income to Normalized Net Income and Normalized EBITDA, see the reconciliation tables in appendix [3]Free cash flow is defined as net cash flow from operating activities minus capital expenditures

QUARTERLY REVIEW	16
First Quarter Ended April 30, 2020

FY21 Q1 - Revenues and Retail Sales by Geography

UNITED		CANADA	EMEA		ASIA-		LATIN
STATES			PACIFIC		AMERICA
REVENUES[1]		REVENUES[1]	REVENUES[1]		REVENUES[1]		REVENUES[1]
+5%	-13%		-33%	-6%	-32%
RETAIL[2]		RETAIL[2]	RETAIL[2]		RETAIL[2]		RETAIL[2]
+14%	-14%		-4%	-13%	+22%

[1]FY21 Q1 revenues variation vs. FY20 Q1 [2]FY21 Q1 Powersports excluding snowmobile retail variation vs. FY20 Q1

Strong FY21 Q1 performance in the United States while revenues and retail sales

in other regions of the world were generally more impacted by the COVID-19 situation

QUARTERLY REVIEW	17
First Quarter Ended April 30, 2020

FY21 Q1 - Gross Profit Margin Bridge

COVID-19 Impact

(0.2%)

(0.5%)	0.8%	(0.4%)

(3.1%)

22.5%

22.6%

19.1%

FY20 Q1	Volume, Mix,	Production Costs,	Foreign	FY21 Q1	Additional	Fixed Costs	FY21 Q1
Gross Profit	Pricing and	Depreciation and	Exchange	Gross Profit	Costs net of	Absorption and Inventory	Gross Profit
Margin	Sales Programs	Other	Gain	Margin before	Costs Saving	Depletion	Margin
				COVID-19 Impact	Initiatives

FY21 Q1 gross profit margin decline driven by COVID-19 impact

QUARTERLY REVIEW	18
First Quarter Ended April 30, 2020

FY21 Q1 - Net Income and Normalized Net Income[1] Bridge

			Net Income Bridge
CA$ millions
24					7
(62)		25

1. 35

(171)

Normalized Net Income[1] Bridge

CA$ millions

53 (62)

7

(226)

(61)

3

38

(16)

23

FY20 Q1	Volume, Mix,	Production	Operating	Net Financing	Foreign	Impairment	Foreign	FY21 Q1
Net Income	Pricing and	Costs	Expenses	Costs, and	Exchange	Charge	Exchange	Net Income
	Sales	and	and Other	Income	Gain		Loss
	Programs	Depreciation		Tax Expense			on Long-term
							Debt
							and Lease
							Liabilities

FY20 Q1	Volume, Mix,	Production	Overhead,	Net Financing	Foreign	FY21 Q1
Normalized	Pricing and	and Distribution	Depreciation	Costs Adjusted,	Exchange Gain	Normalized
Net Income [1]	Sales Programs	Costs	and Other	and		Net Income [1]
				Normalized Income
				Tax Expense

[1]For a reconciliation of net income to Normalized Net Income and Normalized EBITDA, see the reconciliation tables in appendix

QUARTERLY REVIEW	19
First Quarter Ended April 30, 2020

BRP North American Powersports Dealer Inventory

Highlights		Dealer Inventory Year-over-Year Bridge
		Units, Excluding Outboard Engines and Boats
Dealer inventory[1] ended FY21 Q1 up 7% from FY20 Q1 level
◼ Increase primarily driven by:			+7%

• • 3WV due to weaker industry trends resulting from the COVID-19 pandemic, and;
  • Continued strong demand for SSV
• Partially offset by a decrease in network inventory for PWC resulting from production shut down due to the pandemic

FY20 Q1

SSV

3WV

Snowmobile

PWC

FY21 Q1

Dealer Inventory Evolution

Units, Excluding Outboard Engines and Boats

Supporting our dealers with strategic sales

programs and proactive shipment

adjustments to help them maintain a healthy

level of inventory through the pandemic

Q1	Q2	Q3	Q4
FY19		FY20	FY21

[1]Network inventory excluding outboard engines and boats

QUARTERLY REVIEW	20
First Quarter Ended April 30, 2020

FY21 Financial Outlook

FY21 Total Company Revenues Expected Variation

PERIOD

VARIATION VS. SAME PERIOD IN FY20

KEY DRIVERS

› Production suspension in most sites in early May followed by gradual ramp-up

FY21 Q2 ABOUT 40% › Lower expected demand outside of United States › Discontinuation of outboard engines production

FY21 H2

10% TO 20%

›

›

Lower expected demand outside of United States

Discontinuation of outboard engines production

FY21 Additional Assumptions

METRIC		OUTLOOK
CAPEX		$220M TO $250M
DEPRECIATION EXPENSE[1]		~$265M
NET FINANCING COSTS ADJUSTED[1]		~$135M
EFFECTIVE TAX RATE[1][2]		26% TO 27%
SHARE COUNT - DILUTED		~89M

Expecting the COVID-19 situation to have the biggest impact on FY21 Q2 with a gradual improvement through Q3 and Q4

[1]See the "Non-IFRS Measures" in appendix [2]Effective tax rate based on Normalized Earnings before Normalized Income Tax

QUARTERLY REVIEW	21
First Quarter Ended April 30, 2020

CLOSING REMARKS

QUARTERLY REVIEW

FIRST QUARTER ENDED APRIL 30, 2020

FY21 Priorities and Beyond

MANAGE THE CURRENT ENVIRONMENT

• HEALTH AND SAFETY FIRST:Ensure a safe work environment for our employees

› REMAIN AGILE:	Operate a successful production ramp-up through
	our operations, suppliers and dealer network

• MAINTAIN MARKET LEADERSHIP: Continue delivering best-in-class products, marketing, go-to-market strategy and dealer value proposition

PREPARE THE FUTURE

›

›

›

FOCUS ON GROWTH:	Deliver on our growth projects and initiatives
RETHINK:	Take actions to adapt for the long-term "new normal"
BE OPPORTUNISTIC:	Leverage our financial flexibility to seize opportunities

Well-positioned to navigate through the crisis and emerge stronger than ever

QUARTERLY REVIEW	23
First Quarter Ended April 30, 2020

Q&A PERIOD

QUARTERLY REVIEW

FIRST QUARTER ENDED APRIL 30, 2020

APPENDIX

QUARTERLY REVIEW

FIRST QUARTER ENDED APRIL 30, 2020

FY21 Q1 - Financial Overview

CA$ millions (Unaudited)

Q1 Comparison

FY21

FY20

Change

Total Revenues	$1,229.8	$1,333.7	($103.9)
Growth			-7.8%
Gross Profit	$235.1	$300.6	($65.5)
As a % of revenues	19.1%	22.5%
Operating Income	($127.3)	$89.0	($216.3)
Normalized EBITDA[1]	$123.0	$146.7	($23.7)
Growth			-16.2%
Net Income	($226.1)	$23.8	($249.9)

EPS - Diluted	($2.58)	$0.25	($2.83)
Growth			NM
Normalized Net Income[1]	$22.7	$52.7	($30.0)
Normalized EPS - Diluted[1]	$0.26	$0.54	($0.28)
Growth			-51.9%
Free Cash Flow[2]	$169.4	$52.3	$117.1
CAPEX	($43.3)	($52.2)	$8.9

[2]For a reconciliation of net income to Normalized Net Income and Normalized EBITDA, see the reconciliation tables in appendix [3]Free cash flow is defined as net cash flow from operating activities minus capital expenditures

QUARTERLY REVIEW	26
First Quarter Ended April 30, 2020

Reconciliation Tables

Three-month periods ended

CA$ millions
(Unaudited)	Apr. 30, 2020	Apr. 30, 2019
Net Income	($226.1)	$23.8
Normalized Elements:
Foreign Exchange Loss on Long-term Debt and Lease Liabilities	88.8	27.6
Transaction Costs and Other Related Expenses[1]	0.5	0.3
Restructuring and Related Costs[2]	5.7	-
Impairment Charge[3]	171.4	-
Loss on Litigation	-	0.2
Transaction Costs on Long-term Debt	12.7	-
COVID-19 Pandemic Impact[4]	4.2	-
Gain on NCIB	(12.2)	-
Depreciation of Intangible Assets Related to Business Combinations	1.1	0.7
Other Elements	-	0.5
Income Tax Adjustment	(23.4)	(0.4)
Normalized Net Income[7]	22.7	52.7
Normalized Income Tax Expense[7]	15.0	20.0
Financing Costs Adjusted[5][7]	24.3	20.7
Financing Income Adjusted[5][7]	(1.8)	(0.8)
Depreciation Expense Adjusted[6][7]	62.8	54.1
Normalized EBITDA[7]	$123.0	$146.7
Weighted Average Number of Shares - Diluted (normalized)	87,960,037	97,771,532
Normalized Earnings per Share - Diluted[7]	$0.26	$0.54

[1]Costs related to business combinations.

[2]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.

[3]During the three-month period ended April 30, 2020, the Company recorded an impairment charge of $171.4 million mainly related to its Marine segment.

[4]Incremental costs associated with the COVID-19 pandemic such as, but not limited to, labor cost related to furloughs and personal protective equipment.

[5]Adjusted for transaction costs on long-term debt and normal course issuer bid program ("NCIB") gains and losses in net income.

[6]Adjusted for depreciation of intangible assets acquired through business combinations.

[7]See "Non-IFRS Measures" section below.

Non-IFRSMeasures: 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 - diluted is calculated by dividing the normalized net income by the weighted average number of shares - diluted. For more details on non-IFRS measures, refer to the section entitled Non-IFRS Measures of the Company's press release for the quarter ended April 30, 2020.

QUARTERLY REVIEW	27
First Quarter Ended April 30, 2020