BRP Inc. ($DOO)

Good morning. Welcome to BRP's Annual Meeting of Shareholders. My name is Pierre Boudot, and I am the Chair of the Board of Directors. Please note that since the main portion of the meeting will be held in French, you can always benefit from the simultaneous English translation by clicking on the language icon on the right side of the webcast platform. If you have any questions, you can submit them in the language of your choice. [Foreign Language] authority vested in me as Chair of the meeting. I appoint the representatives of Computershare Investor Services, Inc. BRP's transfer agent present here today as scrutineers for the meeting. They will count the proxies and votes cast online today. I have with me the certificate of Computershare Investor Services, Inc., indicating that the notice of meeting was properly given in accordance by or in accordance with the Canada Business Corporations Act and the bylaws of the corporation. Accordingly, unless there are any objections, I will dispense with the reading of the notice of meeting. The report provided by Computershare Investor Services, Inc. prior to the meeting confirms that we have the prescribed quorum I now declare the Annual Meeting of Shareholders of BRP duly convened and validly constituted to proceed with the items on the agenda. I will now turn the floor over to Martel who will provide an overview of the meeting proceedings and will set out voting procedures.

Thank you, Pierre. We will now begin the meeting with an overview and vote on the matters formally identified in the notice of meeting followed by the preliminary voting results. Presentations will then be made by our President and CEO, Denis and by our CFO, Sebastien. Finally, there will be a question-and-answer period, which will take place and where BRP's management will answer questions submitted in advance of the meeting or electronically through the webcast platform during the meeting. Based on the preliminary count of proxies received and votes counted, -- the scrutineers have informed me that approximately 209 million votes for multiple voting shares and 39 million votes per subordinate voting shares are represented here today. For those of you who are entitled to vote and have not already done so, at the appropriate time, you will see the electronic ballot appear on the left of your screen, allowing you to vote. . In order to facilitate the deliberations since the meeting is being held virtually, I will move all motions as a shareholder. I will now turn the floor over to Pierre for the next portion of the meeting.

Thank you, Marta. Let's move to the first item on our agenda. I now submit the consolidated financial statements of BRP for the year ended January 31, 2026, and the related auditor's report. As these documents have been sent in accordance with the provisions of the law to all shareholders who requested them. I will dispense Marta from the reading of them. We will now proceed with the election of BRP's directors. BRP management proposes 12 nominees for election as Directors of BRP. You have been provided with in the management proxy circular with a short biography and other relevant information about them. I will now ask Marta to introduce the proposed nominees candidates as directors.

I am pleased to nominate each of the following persons for election as a director until the next Annual Meeting of Shareholders or until his or her successor is elected or appointed. Pierre Elen Bud, Ashua Bekenstein, Charles Bombardier, Ernesto M. Hernandez, Katherine Kuni, Denis Levi, Nicola Nomicos, Edward Philip, Michael Ross, Barbara Samedi, Hildegard Maria Wortman. Are there any questions from the participants regarding any of these nominations? No, we do not have any questions. I now declare the nominations closed. And we will proceed on the vote on this matter. You may vote for or against each of these candidates. We'll give you a few seconds to enter your vote. But you can vote or change your vote until the ballot closes, and that will take place when the last item on the agenda is presented.

We will now proceed with the appointment of PricewaterhouseCoopers as BRP's auditor. PricewaterhouseCoopers is being nominated for the first time as auditors of BRP replacing Deloitte. This nomination follows a rigorous tender process conducted by the Audit Committee during fiscal year 2026, in line with our commitment to exemplary governance practices. On behalf of BRP, I'd like to express our sincere appreciation to the lot for its 20 years of dedicated service. is BRP's external auditor since 2006. I would now like to ask Matel to make a motion to appoint the auditor.

Thank you. I propose that PricewaterhouseCoopers be appointed as BRP's auditor until the close of the next Annual Meeting of Shareholders of BRP. Thank you. Are there any questions from the participants with regards to the appointment of the auditor? .

No, we do not have any questions Okay.

Since we have not received any questions from the participants, let's move to the vote. We will now proceed to a vote on the advisory resolution regarding BRP's approach to executive compensation as set out in the management proxy circular -- as explained in the circular. This is an advisory resolution. The result of the vote will not be binding on BRP's Board of Directors. However, members of the Human Resources and Compensation Committee will take the outcome into consideration in their future review of the principal policies, programs or mechanisms relating to executive compensation.

I would now like to ask Martel to make a motion to approve this resolution. I move on an advisory basis and without diminishing the roles and responsibilities of the Board of Directors that the shareholders accept the approach to executive compensation disclosed in the management proxy circular.

Are there any questions from participants with regards to the advisory vote on executive compensation.

No, we don't have any questions. Okay. We will now move to the vote on this item. There being no further business to conduct. I declare the voting on all items of business closed. The scrutineers have completed the preliminary vote count for each of the items on the agenda. I would therefore like to invite Martin to share with us the preliminary results of the vote.

I am pleased to report that according to the preliminary scrutineers report. The 12 nominees for Lexus directed were duly elected. The appointment of PricewaterhouseCoopers as BRP's auditor has also been a -- and finally, the advisory resolution on BRP's approach to executive compensation has also been adopted. A press release regarding the official detailed voting results will be published on BRP's website and our onset following the meeting. On this pierre, I turn the floor back over to you.

Thank you. I'd now like to invite BRP's President and CEO, Denis and the CFO, Sebastian, to make their presentations.

Dear shareholders, BRP partners, ladies and gentlemen, I'm pleased to speak to you today. This is my first Annual Shareholders' Meeting of BRP. I'd like to mention that the accomplishments happened under -- the cases going to be sharing happened over the leadership or under the leadership. Over the past 28 years, he has driven a remarkable growth that has made BRP a global leader in the motorsport industry. Since I've arrived I have been impressed by BRP's strength its strategic positioning, and it's deeply revalued. This is an organization with hurt and grit exceptional talent and a network of truly committed dealers. I'm thrilled with the idea of joining this chapter BRP. Our team successfully rose to challenges in fiscal 2026 despite the economic uncertainties caused by a volatile tariff environment industry -- and in spite of all of this, we delivered financial results that exceeded expectations. After making significant progress on our inventory reduction plan in the first half of the fiscal year. We recorded solid revenues and earnings growth in the second half, thanks to the successful launch of our new products. Our revenues and normalized diluted earnings per share increased by 7% to reach $8.4 billion and $5.21 or $5.21 per share, respectively. In terms of retail sales, the North American motor sport industry experienced a slight decline during fiscal 2026 due to an uncertain economic environment. For us, as expected, our market shares declined in the first half of the year, as other manufacturers cleared their high inventory levels through significant discount. However, the arrival of our new off-road vehicles at our dealerships was a real game changer. Thus, as a result in the third and fourth quarters, we recorded record market shares for those periods in the utility side-by-side naturals. In addition, our market share for high distillation off-road vehicles increased by nearly 9 points between October and January. Another highlight of fiscal 2026 was the unveiling of our strategic plan, which we call Mission '28 or M '28 which aims to enable us to realize our full potential in the motorsports industry. Our team is focused on implementing this plan. And we have already progressed on a number of key elements. Very much specifically, market share gains for our new off-road products, an increase in the number of dealers in North America, growth in our international operations, and improved operational efficiencies. I will continue to update you on our M5 achievements over the coming quarters. As you know, innovation is part of our BRP DNA. Year-after-year, we expand our product lines with new models featuring unique capabilities, pushing the boundaries of technology constantly. These innovations allow us to enrich consumer experiences and position the company. On the path to sustainable success for side-by-side vehicles -- we launched a new generation of Cam Defender HD 11, further cementing its reputation as the most capable hostile and reliable utility vehicle cost. We also enhanced Mavrick R are by integrating features designed for Rocky terrains. On the ATV all-terrain vehicle segment, we launched electric cannot outlander powered by our modular tax. Power technology. And we introduced the Outlander MAX 6 the most rugged model in the CM lineup with its 6-wheel drive robust chassis and powerful real tax engine packages. For do in seasonal products, we continue to enhance the personal watercraft experience with new connectivity features. In pontoon boats in that category, the 300-horsepower road tax 1630 ACE engine was added to the select models in the Switch family. . For skid and links, we have offered comprehensive lineups while enhancing versatility functionality and connectivity. Our teams remain deeply driven by the desire to design and bring to market new products with safety industry, in fact since its inception, BRP has won more than 200 international design awards, including 2 new ones over the course of. I'd like to congratulate our design team, which was named Red Dot Design Team of Year. This is 1 of the most prestigious awards in the field awarded for the first time to a Canadian company. after Ferrari, Apple and Porch, BRP has now joined an exclusive circle of renowned brands. Before continuing, I'd like to highlight some of our progress the progresses that we made in sustainability. First of all, environmentally speaking, we have implemented a database for our direct suppliers that allows us to accurately track upstream CO2 emissions. On the social front, I'm pleased to share that we have achieved the lowest overall recordable accident rate in our history. We are at 0.42. This rate is a key health indicators safety performance indicator. It's a key indicator that allows us to track our progress in risk prevention. -- at BRP, the goal is simple, 0 accidents. And finally, we continued to engage our global network in our stand-up to bullying program. And in November, more than 6,000 BRP employees, dealers, ambassadors and partners participated in our yellow Day. -- or yellow days, which allowed us to raise donations that brought our total contributions to over $10 million since the launch of our initiatives. We'll talk about this again in the fall as we celebrate 5 years. Fiscal 2026 was the end of our corporate social responsibility, '25 corporate responsibility plan and building on our achievements, we recently launched our new 2030 sustainability program beyond the event. It balances performance and sustainability through rigorous continuous improvement approach. It is based on ESG pillars, and I'm so proud to begin my journey at BRP with a plan that reflects our aspirations to become better and better day-after-day. In conclusion, I'd like to reaffirm that despite economic turbulence, as well as tensions associated with tariffs and the geopolitical situation, we will continue to rely on our adaptability ingenuity our determination. Shorter history, we've often had to deal with tariff changes. Thanks to the talent of our teams, we have always managed to find solutions. On the short term, our priority is to implement mitigation measures to protect our business and to execute our M28 plan. As such, we continue to invest in research and development. to bring products to market that constantly push the boundaries. I'm also thrilled to be working closely with our management team and the members of the Board of Directors to develop our next strategic plan and identify future growth opportunities. Thanks to the strength of our brand, the loyalty of our customers, the ongoing commitment of our dealers and the dedication of our employees our foundations are extremely solid. We trust that we have the capacity to strengthen our position as a leader in the motorsport industry over the long term and to create sustained and sustainable value for our shareholders. With that, I'd like to turn the floor over to Sebastien.

Denis, thank you very much, and I'll briefly review our results for fiscal 6. As Denis mentioned the past over the past year, -- we demonstrated our ability to face challenges and come out on top despite relatively difficult market conditions. BRP thus ended fiscal 2026 with the results slightly higher than those of 2025 and also above our expectations. Revenues reached $8.4 billion, representing a 6.8% increase compared to the previous fiscal year. Normalized EBITDA amounted to BRL 1.1 billion, up 4.3% on from the previous year. This improvement reflects an increase in gross margin attributable to favorable pricing, reduced sales promotions as well as reductions in production and distribution costs. Normalized net income $383 million or $5.21 per diluted share compared to BRL 362 million or $4.86 per diluted share for the previous year. Given disciplined management of working capital and capital expenditures, we generated strong cash flows of BRL 929 million. These funds were used in particular, to repay $336 million in long term debt. We also returned $113 million to our shareholders through share repurchases totaling $50 million and dividend payments in and dividend payments. On March 2026, we announced an increase of more than 16% of the quarter dividend bringing it to $0.25 per share, thereby demonstrating our confidence in our ability to maintain sound cash management. In closing, thank you to all of our shareholders for their support and their trust in BRP. I'll now turn the floor back over to Pierre Boudot to continue the meeting.

Thank you, Denis. Thank you, Sean for this overview of the previous year. There's no question-and-answer time. If you have not yet submitted your questions, please do so by clicking on the messaging tab and by following the instructions that will appear. I'd like to remind you that your questions should be of general interest to all shareholders and not of a personal nature. If your question relates to your personal situation, a BRP representative will communicate with you after the meeting. as long as you've provided your contact information. You can ask your questions in either English or French. It is as you wish. Martha, have we received any questions.

No not just yet, let's just wait a couple of moments. So no questions. With no questions, I'm going to turn the floor back over to Pierre for the conclusion.

We are now at the end of our meeting, we've treated all of what we've dealt with all of the points on our agenda. You have the documents, and we have dealt with all of these. We have confirmed the sending of documents, the formula or the form of proxy was submitted by management, the report and all of the documents emitted by Computershare as long or along with consolidated financial results. Therefore, I confirm the end of our meeting. Thank you for your presence and your participation here today.