Document:

EX-4.5

 Exhibit 4.5 
  

 
 BRP INC. 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 

AND RESULTS OF OPERATIONS 
 FOR THE THREE- AND
SIX-MONTH PERIODS ENDED JULY 31, 2018 
  

 
 The following management’s
discussion and analysis (“MD&A”) provides information concerning financial condition and results of operations of BRP Inc. (the “Company” or “BRP”) for the second quarter of the fiscal year ending January 31, 2019.
This MD&A should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018 and the audited consolidated financial statements and MD&A for the year
ended January 31, 2018. Some of the information contained in this discussion and analysis contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from underlying forward-looking statements as a
result of various factors, including those described in the “Forward-Looking Statements” section of this MD&A. This MD&A reflects information available to the Company as at August 29, 2018. 

Basis of Presentation 
  

 
 The unaudited condensed consolidated interim
financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) and in accordance with IAS 34 “Interim Financial Reporting”. All amounts presented are in
Canadian dollars unless otherwise indicated. The Company’s fiscal year is the twelve-month period ending January 31. All references in this MD&A to “Fiscal 2019” are to the Company’s fiscal year ending January 31, 2019, to
“Fiscal 2018” are to the Company’s fiscal year ended January 31, 2018 and to “Fiscal 2017” are to the Company’s fiscal year ended January 31, 2017. Following the adoption of IFRS 15 “Revenue from contracts with
customers” and IFRS 9 “Financial instruments”, the comparative figures in this MD&A have been restated as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and
six-month periods ended July 31, 2018. 
 This MD&A, approved by the Board of Directors on August 29, 2018, is based on the Company’s
unaudited condensed consolidated interim financial statements and accompanying notes thereto for the three- and six-month periods ended July 31, 2018 and 2017. 

The Company’s Year-Round Products consist of all-terrain vehicles (referred to as “ATVs”), side-by- side vehicles (referred to as
“SSVs”) and three-wheeled vehicles (Spyder) (referred to as “3WVs”); the Company’s Seasonal Products consist of personal watercraft (referred to as “PWCs”) and snowmobiles; and the Company’s Powersports PAC
and OEM Engines consist of parts, accessories and clothing (“PAC”) for Year-Round Products and Seasonal Products, engines for karts, motorcycles and recreational aircraft and other services. Additionally, the Company’s Marine Engines,
Boats and PAC consist of outboard and jet boat engines, boats and related PAC and other services. 
 Forward-Looking Statements 

 
  

Certain statements in this MD&A about the Company’s current and future plans, expectations and intentions, results, levels of activity,
performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words “may”, “will”, “would”, “should”, “could”, “expects”,
“plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “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
based on estimates and assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate and
reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct or that the Company’s business guidance, objectives, plans and strategic priorities will be achieved. 

  

			
	

	 	 

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 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: impact of adverse economic conditions on consumer spending; decline in social acceptability of the Company’s products; 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; 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; 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 purpose of the forward-looking statements is to provide the reader with a description of management’s expectations regarding the Company’s
financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking
statements contained in this MD&A are made as of the date of this MD&A and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise, except as required by applicable securities regulations. The forward-looking statements contained in this MD&A are expressly qualified by this cautionary statement. 

Non-IFRS Measures 
  

 
 This MD&A 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. Other elements, such as restructuring 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. 

  

			
	

	 	 

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 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 this MD&A for the reconciliations of Normalized EBITDA and Normalized Net Income presented by the Company to the most directly comparable IFRS measure. 

Overview 
  

 
 BRP is a global leader in the design,
development, manufacturing, distribution and marketing of powersports vehicles and marine products. The Company is a diversified manufacturer of powersports vehicles and marine products, providing enthusiasts with a variety of exhilarating, stylish
and powerful products for all year-round use on a variety of terrains. The Company’s diversified portfolio of brands and products includes for Powersports: Can-Am ATVs, SSVs and 3WVs, Ski-Doo and Lynx snowmobiles, Sea-Doo PWCs and Rotax engines for karts, motorcycles and recreational aircraft. For Marine, the portfolio of brands and products includes Evinrude outboard boat engines, Rotax engines for
jet boats and Alumacraft boats. Additionally, the Company supports its line of products with a dedicated PAC business. 
 The Company employs
approximately 10,350 people mainly in manufacturing and distribution sites in Mexico, Canada, Austria, the United States and Finland. The Company sells its products in over 100 countries. The products are sold directly through a network of
approximately 3,475 dealers in 21 countries as well as through approximately 185 distributors serving approximately 915 additional dealers. 
 Highlights
of the three-month period ended July 31, 2018 
 For the three-month period ended July 31, 2018, the Company’s financial performance was
the following when compared to the three-month period ended July 31, 2017: 

	 	●	 	 Revenues of $1,207.0 million, an increase of $183.9 million or 18.0%; 

	 	●	 	 Gross profit of $280.1 million representing 23.2% of revenues, an increase of $64.1 million or 210 basis
points; 

	 	●	 	 Normalized EBITDA [1] of $144.2 million representing 11.9% of
revenues, an increase of $60.5 million; 

	 	●	 	 Net income of $41.0 million, a decrease of $63.0 million, which resulted in a diluted earnings per share of
$0.41, a decrease of $0.52 per share; 

	 	●	 	 Normalized net income [1] of $66.4 million, an increase of
$43.5 million, which resulted in a normalized diluted earnings per share [1] of $0.66, an increase of $0.46 per share. 

[1] See “Non-IFRS Measures” section. 

  

			
	

	 	 

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 In addition, during the three-month period ended July 31, 2018: 

	 	●	 	 The Company acquired, on June 28, 2018, 100% of Alumacraft Holdings, LLC and its wholly- owned subsidiary Alumacraft Boat
Co. (“Alumacraft”) for a purchase consideration of U.S. $64.4 million ($85.4 million). Alumacraft is a recreational boat manufacturer located in St. Peter, Minnesota (United States). 

	 	●	 	 The Company refinanced its term facility to increase the principal amount by U.S. $111.0 million for a total principal
of U.S. $900.0 million, to extend the maturity from June 2023 to May 2025 and to reduce the cost of borrowing by 0.50%. 

	 	●	 	 The Company refinanced its $475.0 million revolving credit facilities to increase the availability by
$100.0 million for a total availability of $575.0 million, to extend the maturity from June 2021 to May 2023 and to reduce the cost of borrowing by 0.25%. 

	 	●	 	 The Company completed its normal course issued bid program (“NCIB”) launched in March 2018 with the repurchase of
3,625,271 subordinate voting shares for a total consideration of $212.3 million. 

 In addition, after the three-month period
ended July 31, 2018: 

	 	●	 	 The Company acquired 100% of Triton Industries Inc. (“Triton”) for a purchase consideration of U.S.
$78.5 million ($101.4 million). Triton is located in Lansing, Michigan (United States) and is a pontoon manufacturer under the Manitou brand. 

Factors Affecting the Company’s Results of Operations 

 
  

Revenues and Sales Program Costs 
 The Company’s
revenues are derived primarily from the wholesale activities of the Company’s manufactured vehicles, including Year-Round Products, Seasonal Products, Powersports PAC and OEM Engines as well as Marine Engines, Boats and PAC to dealers and
distributors. Revenue recognition normally occurs when products are shipped to dealers or distributors from the Company’s facilities. 
 In order
to support the wholesale activities of the Company and the retail activities of dealers and distributors, the Company may provide support in the form of various sales programs consisting of cash and non-cash incentives. The cash incentives consist
mainly of rebates given to dealers, distributors and consumers, volume discounts to dealers and distributors, free or extended coverage period under dealer and distributor inventory financing programs and retail financing programs. The cost of these
cash incentives is recorded as a reduction of revenues. The non-cash incentives consist mainly of extended warranty coverage or free PAC. When an extended warranty coverage is given with the purchase of a product, a portion of the revenue recognized
upon the sale of that product should be deferred and recognized during the extended warranty coverage period. The cost of the free PAC is recorded in cost of sales. 

The support provided to dealers, distributors and consumers tends to increase when general economic conditions are difficult, when changing market
conditions require the launch of new or more aggressive programs or when dealer and distributor inventory is above appropriate levels. 
 Under dealer
and distributor inventory financing arrangements, the Company could be required to purchase repossessed new and unused products in certain cases of default by dealers or distributors. The cost of repossession tends to increase when dealers or
distributors are facing challenging and prolonged difficult retail conditions and when their non-current inventory level is high. During the current fiscal year and previous fiscal year, the Company did not experience significant repossessions under
its dealer and distributor inventory financing arrangements. Refer to the “Off-Balance Sheet Arrangements” section of this MD&A for more information on dealer and distributor inventory financing arrangements. 

  

			
	

	 	 

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 Commodity Costs 

Approximately 75% of the Company’s cost of sales consists of material used in the manufacturing process. Therefore, the Company is exposed to the
fluctuation of prices of certain raw materials such as aluminum, steel, plastic, resins, stainless steel, copper, rubber and certain rare earth metals. Additionally, the Company is exposed to fuel price fluctuations related to its procurement and
distribution activities. The Company does not hedge its long-term exposure to such price fluctuations. Therefore, an increase in commodity prices could negatively impact the Company’s operating results if it is not able to transfer these cost
increases to dealers, distributors or consumers. 
 Warranty Costs 

The Company’s manufacturer product warranties generally cover periods ranging from 6 months to 3 years for most products. In certain
circumstances, the Company provides extended warranty coverage as a result of sales programs, under certain commercial accounts, or as required by local regulations. During the warranty period, the Company reimburses dealers and distributors the
entire cost of repair or replacement performed on the products (mainly composed of parts or accessories provided by the Company and labour costs incurred by dealers or distributors). In addition, the Company sells in the normal course of business
and provides under certain sales programs, extended product warranties. 
 During its product development process, the Company ensures that high
quality standards are maintained at each development stage of a new product. This includes the development of detailed product specifications, the evaluation of the quality of the supply chain and the manufacturing methods and detailed testing
requirements over the development stage of the products. Additionally, product quality is ensured by quality inspections during and after the manufacturing process. 

The Company records a regular warranty provision when products are sold. Management believes that, based on available information, the Company has
adequate provisions to cover any future warranty claims on products sold. However, future claim amounts can differ significantly from provisions that are recorded in the condensed consolidated interim statements of financial position. For extended
warranty, the claims are recorded in cost of sales as incurred. 
 Foreign Exchange 

The Company’s revenues are reported in Canadian dollars but are mostly generated in U.S. dollars, Canadian dollars and euros. The Company’s
revenues reported in Canadian dollars are to a lesser extent exposed to foreign exchange fluctuations with the Australian dollar, the Brazilian real, the Swedish krona, the Norwegian krone, the Great Britain pound and the New Zealand dollar. The
costs incurred by the Company are mainly denominated in Canadian dollars, U.S. dollars and euros and to a lesser extent in Mexican pesos. Therefore recorded revenues, gross profit and operating income in Canadian dollars are exposed to foreign
exchange fluctuations. The Company’s facilities are located in several different countries, which helps mitigate some of its foreign currency exposure. 

The Company has an outstanding U.S. $900.0 million under its U.S. $900.0 million term facility agreement (the “Term Facility” or the
“Term Credit Agreement”), which results in a gain or loss in net income when the U.S. dollar/Canadian dollar exchange rate at the end of the period is different from the opening period rate. Additionally, the Company’s interest
expense on the Term Facility is exposed to U.S. dollar/Canadian dollar exchange rate fluctuations. The Company does not currently hedge the U.S. dollar/Canadian dollar exchange rate fluctuation exposures related to its Term Facility, and therefore,
an increase in the value of the U.S. dollar against the Canadian dollar could negatively impact the Company’s net income. 
 For further details
relating to the Company’s exposure to foreign currency fluctuations, see “Financial Instruments – Foreign Exchange Risk” section of this MD&A. 

  

			
	

	 	 

 5

 Net Financing Costs (Financing Costs less Financing Income) 

Net financing costs are incurred principally on long-term debt, defined benefit pension plan liabilities and revolving credit facilities. As at July 31,
2018, the Company’s long-term debt of $1,213.2 million was mainly comprised of the Term Facility, which bears interest at LIBOR plus 2.00%. The Company does not hedge its exposure to interest rates fluctuation. Therefore, an increase in
interest rates could negatively impact the Company’s operating results. 
 Income Taxes 

The Company is subject to federal, state and provincial income taxes in jurisdictions in which it conducts business. The Canadian income tax statutory
rate was 26.7% for the three- and six-month periods ended July 31, 2018. However, the Company’s effective consolidated tax rate is influenced by various factors, including the mix of accounting profits or losses before income tax among tax
jurisdictions it operates in and the foreign exchange gain or loss on the Term Facility. The Company expects to pay cash taxes in all tax jurisdictions for the fiscal year ending January 31, 2019, except in the United States where the Company plans
to utilize its tax attributes to offset taxable income or income tax payable. 
 Seasonality 

The Company’s revenues and operating income experience substantial fluctuations from quarter to quarter. In general, wholesale sales of the
Company’s products are highest in the period immediately preceding and during their particular season of use. However, the mix of product sales may vary considerably from time to time as a result of changes in seasonal and geographic demand,
the introduction of new products and models and production scheduling for particular types of products. As a result, the Company’s financial results are likely to fluctuate significantly from period to period. 

  

			
	

	 	 

 6

 Selected Consolidated Financial Information 

 
  

The selected consolidated financial information set out below for the three- and six-month periods ended July 31, 2018 and 2017, has been derived from
the unaudited condensed consolidated interim financial statements and related notes approved on August 29, 2018. 
 Net Income data 

 

																	
	 	  	Three-month periods ended	 	  	Six-month periods ended	 
	  
	 
	 (in millions of Canadian dollars)
	  	July 31,
2018	 	 	July 31,
2017	 	  	July 31,
2018	 	  	July 31,
2017	 
	  
	 
	 	  	 	 	 	Restated [1]	 	  	 	 	  	Restated [1]	 
	 Revenues by category [2] 
	  				 				  				  			
	 Year-Round Products
	  	 	$554.0	 	 	 	$440.4	 	  	 	$1,080.6	 	  	 	$836.5	 
	 Seasonal Products
	  	 	384.6	 	 	 	316.7	 	  	 	735.0	 	  	 	641.1	 
	 Powersports PAC and OEM Engines
	  	 	147.1	 	 	 	142.5	 	  	 	303.0	 	  	 	293.3	 
	 Marine Engines, Boats and PAC
	  	 	121.3	 	 	 	123.5	 	  	 	225.1	 	  	 	229.1	 
	  
	 
	 Total Revenues
	  	 	1,207.0	 	 	 	1,023.1	 	  	 	2,343.7	 	  	 	2,000.0	 
	 Cost of sales
	  	 	926.9	 	 	 	807.1	 	  	 	1,782.0	 	  	 	1,556.9	 
	  
	 
	 Gross profit
	  	 	280.1	 	 	 	216.0	 	  	 	561.7	 	  	 	443.1	 
	 As a percentage of revenues
	  	 	23.2%	 	 	 	21.1%	 	  	 	24.0%	 	  	 	22.2%	 
	 Operating expenses
	  				 				  				  			
	 Selling and marketing
	  	 	79.0	 	 	 	72.0	 	  	 	162.0	 	  	 	142.5	 
	 Research and development
	  	 	51.0	 	 	 	48.5	 	  	 	106.6	 	  	 	98.6	 
	 General and administrative
	  	 	49.1	 	 	 	44.1	 	  	 	97.8	 	  	 	87.6	 
	 Other operating expenses (income)
	  	 	(1.8	) 	 	 	4.3	 	  	 	6.3	 	  	 	6.9	 
	  
	 
	 Total operating expenses
	  	 	177.3	 	 	 	168.9	 	  	 	372.7	 	  	 	335.6	 
	  
	 
	 Operating income
	  	 	102.8	 	 	 	47.1	 	  	 	189.0	 	  	 	107.5	 
	 Net financing costs
	  	 	26.3	 	 	 	12.7	 	  	 	37.8	 	  	 	24.5	 
	 Foreign exchange (gain) loss on long-term debt
	  	 	17.3	 	 	 	(81.8	) 	  	 	58.8	 	  	 	(37.6	) 
	  
	 
	 Income before income taxes
	  	 	59.2	 	 	 	116.2	 	  	 	92.4	 	  	 	120.6	 
	 Income tax expense
	  	 	18.2	 	 	 	12.2	 	  	 	38.0	 	  	 	21.5	 
	  
	 
	 Net income
	  	 	$41.0	 	 	 	$104.0	 	  	 	$54.4	 	  	 	$99.1	 
	  
	 
	 Attributable to shareholders
	  	 	$40.7	 	 	 	$103.9	 	  	 	$54.0	 	  	 	$98.8	 
	 Attributable to non-controlling interest
	  	 	$0.3	 	 	 	$0.1	 	  	 	$0.4	 	  	 	$0.3	 
	  
	 
					
	 Normalized EBITDA [3] 
	  	 	$144.2	 	 	 	$83.7	 	  	 	$270.8	 	  	 	$184.3	 
	 Normalized net income [3] 
	  	 	$66.4	 	 	 	$22.9	 	  	 	$119.9	 	  	 	$65.7	 
	  
	 

  

	  [1]	 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018.

  

	  [2]	 Comparative figures have been modified to reflect the new categories of revenues following the acquisition of Alumacraft
and the creation of the Marine Group. 

  

	  [3]	 See “Non-IFRS Measures” section. 

  

			
	

	 	 

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 Financial Position data 
  

									
	 As at

 
 (in millions of Canadian dollars)
	  	 July 31,

2018
	 	    	 January 31,

2018
	 
	 	  	 	 	    	Restated [1]	 
	 Cash
	  	 	$89.6	 	    	 	$226.0	 
	 Working capital
	  	 	(179.1	) 	    	 	(92.9	) 
	 Property, plant and equipment
	  	 	803.9	 	    	 	766.8	 
	 Total assets
	  	 	2,671.7	 	    	 	2,623.6	 
	 Total non-current financial liabilities
	  	 	1,221.0	 	    	 	1,022.8	 
	 Total liabilities
	  	 	3,117.4	 	    	 	2,915.6	 
	 Shareholders deficit
	  	 	(445.7	) 	    	 	(292.0	) 

  

	  [1]	 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018.

 Other Financial data 
  

																	
	 	 	Three-month periods ended	 	  	Six-month periods ended	 
	  
	 
	 (in millions of Canadian dollars, except per share data)
	 	July 31,
2018	 	  	July 31,
2017	 	  	July 31,
2018	 	  	July 31,
2017	 
	  
	 
	 	 	 	 	  	Restated [1] 	 	  	 	 	  	Restated [1] 	 
	 Revenues by geography
	 				  				  				  			
	 United States
	 	 	$686.9	 	  	 	$518.0	 	  	 	$1,310.8	 	  	 	$1,042.7	 
	 Canada
	 	 	188.2	 	  	 	181.1	 	  	 	351.1	 	  	 	324.3	 
	 International [2] 
	 	 	331.9	 	  	 	324.0	 	  	 	681.8	 	  	 	633.0	 
	  
	 
		 	 	$1,207.0	 	  	 	$1,023.1	 	  	 	$2,343.7	 	  	 	$2,000.0	 
	  
	 
					
	 Declared dividends per share
	 	 	$0.09	 	  	 	$0.08	 	  	 	$0.18	 	  	 	$0.08	 
					
	 Weighted average number of shares – basic
	 	 	98,375,473	 	  	 	110,934,242	 	  	 	99,479,355	 	  	 	111,336,241	 
	 Weighted average number of shares – diluted
	 	 	99,938,657	 	  	 	111,774,375	 	  	 	100,897,037	 	  	 	111,999,081	 
					
	 Earnings per share - basic
	 	 	$0.41	 	  	 	$0.94	 	  	 	$0.54	 	  	 	$0.89	 
	 Earnings per share - diluted
	 	 	0.41	 	  	 	0.93	 	  	 	0.54	 	  	 	0.88	 
	 Normalized earnings per share – basic [3] 
	 	 	0.67	 	  	 	0.21	 	  	 	1.20	 	  	 	0.59	 
	 Normalized earnings per share – diluted [3]

	 	 	0.66	 	  	 	0.20	 	  	 	1.18	 	  	 	0.58	 
	  
	 

  

	  [1]	 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018.

  

	  [2]	 International is defined as all jurisdictions except the United States and Canada. 

 

	  [3]	 See “Non-IFRS Measures” section. 

  

			
	

	 	 

 8

 Reconciliation Tables 

The following table presents the reconciliation of Net income to Normalized net income [1] and
Normalized EBITDA [1]. 
  

																	
	 	  	Three-month periods ended	 	 	Six-month periods ended	 
	  
	 
	 (in millions of Canadian dollars)
	  	July 31,
2018	 	 	July 31,
2017	 	 	July 31,
2018	 	 	July 31,
2017	 
	  
	 
	 	  	 	 	 	Restated [2]	 	 	 	 	 	Restated [2]	 
					
	 Net income
	  	 	$41.0	 	 	 	$104.0	 	 	 	$54.4	 	 	 	$99.1	 
	 Normalized elements
	  				 				 				 			
	 Foreign exchange (gain) loss on long-term debt
	  	 	17.3	 	 	 	(81.8	) 	 	 	58.8	 	 	 	(37.6	) 
	 Transaction costs and other related expenses
	  	 	1.2	 	 	 	—	 	 	 	1.2	 	 	 	—	 
	 Restructuring and related costs [3] 
	  	 	0.6	 	 	 	—	 	 	 	0.8	 	 	 	—	 
	 Loss on litigation [4] 
	  	 	0.2	 	 	 	0.9	 	 	 	0.8	 	 	 	5.7	 
	 Transaction costs on long-term debt
	  	 	8.9	 	 	 	—	 	 	 	8.9	 	 	 	—	 
	 Pension plan past service gains
	  	 	(1.4	) 	 	 	—	 	 	 	(1.4	) 	 	 	—	 
	 Other elements
	  	 	1.2	 	 	 	—	 	 	 	(0.8	) 	 	 	—	 
	 Income tax adjustment
	  	 	(2.6	) 	 	 	(0.2	) 	 	 	(2.8	) 	 	 	(1.5	) 
	  
	 
	 Normalized net income [1] 
	  	 	66.4	 	 	 	22.9	 	 	 	119.9	 	 	 	65.7	 
	 Normalized income tax expense [1] 
	  	 	20.8	 	 	 	12.4	 	 	 	40.8	 	 	 	23.0	 
	 Financing costs adjusted
	  	 	16.7	 	 	 	13.4	 	 	 	30.8	 	 	 	25.9	 
	 Financing income adjusted
	  	 	(0.5	) 	 	 	(0.7	) 	 	 	(1.1	) 	 	 	(1.4	) 
	 Depreciation expense
	  	 	40.8	 	 	 	35.7	 	 	 	80.4	 	 	 	71.1	 
	  
	 
	 Normalized EBITDA [1] 
	  	 	$144.2	 	 	 	$83.7	 	 	 	$270.8	 	 	 	$184.3	 
	  
	 

  

	  [1]	 See “Non-IFRS Measures” section. 

 

	  [2]	 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018.

  

	  [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]	 The Company is involved in patent infringement litigation cases with one of its competitors. 

  

			
	

	 	 

 9

 Results of operations 

 
  

Analysis of Results for the second quarter of Fiscal 2019 

The following section provides an overview of the financial performance of the Company for the three- month period ended July 31, 2018 compared to the
same period ended July 31, 2017. 
 Revenues 
 Revenues
increased by $183.9 million, or 18.0%, to $1,207.0 million for the three-month period ended July 31, 2018, compared with $1,023.1 million for the corresponding period ended July 31, 2017. The revenue increase was mainly due to higher
wholesale in Year-Round Products and Seasonal Products, partially offset by an unfavourable foreign exchange rate variation of $7 million. 
 The
Company’s North American retail sales for powersports vehicles and outboard engines increased by 14% for the three-month period ended July 31, 2018 compared with the three-month period ended July 31, 2017, mainly due to an increase in PWC
and SSV. 
 As at July 31, 2018, North American dealer inventories for powersports vehicles and outboard engines increased by 8% compared to July 31,
2017. 
 Gross Profit 
 Gross profit increased by
$64.1 million, or 29.7%, to $280.1 million for the three-month period ended July 31, 2018, compared with $216.0 million for the corresponding period ended July 31, 2017. The gross profit increase includes a favourable foreign exchange
rate variation of $5 million. Gross profit margin percentage increased by 210 basis points to 23.2% from 21.1% for the three-month period ended July 31, 2017. The increase was primarily due to a higher volume of SSV sold, a favourable product
mix and pricing and a favourable foreign exchange rate variation, partially offset by higher production costs. 
 Operating Expenses 

Operating expenses increased by $8.4 million, or 5.0%, to $177.3 million for the three-month period ended July 31, 2018, compared with
$168.9 million for the three-month period ended July 31, 2017. This increase was mainly attributable to higher selling and marketing expenses. 
 Normalized
EBITDA [1] 
 Normalized EBITDA [1]
increased by $60.5 million, or 72.3%, to $144.2 million for the three-month period ended July 31, 2018, compared with $83.7 million for the three-month period ended July 31, 2017. The increase was mainly attributable to higher gross
profit, partially offset by higher operating expenses. 
 Net Financing Costs 

Net financing costs increased by $13.6 million, or 107.1%, to $26.3 million for the three-month period ended July 31, 2018, compared with
$12.7 million for the three-month period ended July 31, 2017. The increase primarily resulted from the transaction costs on the Term Facility following the refinancing and from a higher interest expense on the Term Facility due to a higher
outstanding nominal amount. 
  

	[1] 	 See “Non-IFRS Measures” section. 

  

			
	

	 	 

 10

 Foreign Exchange 

The key average exchange rates used to translate foreign-denominated revenues and expenses, excluding any effect of the Company’s hedging program,
were as follows for the three-month periods ended July 31, 2018 and 2017: 
  

													
	  	  	  	 	  	July 31,
2018	    	  	 	  	July 31,
2017
	 U.S. dollars
	  	 	1.3029	 	  	CA$/US$	    	 	1.3205	 	  	CA$/US$
	 Euro
	  	 	1.5292	 	  	CA$/Euro	    	 	1.4868	 	  	CA$/Euro

 When comparing the operating income and the income before income tax for the three-month period ended July 31, 2018 to
the corresponding period ended July 31, 2017, the foreign exchange fluctuations impact was the following: 
  

					
	  	  	Foreign exchange (gain) loss	 
	(in millions of Canadian dollars)	  	Three-month period	 
	 Revenues
	  	 	$6.6	 
	 Cost of sales
	  	 	(11.9	) 
	 Impact of foreign exchange fluctuations on gross profit
	  	 	(5.3	) 
	 Operating expenses
	  	 	(6.5	) 
	 Impact of foreign exchange fluctuations on operating income
	  	 	(11.8	) 
	 Long-term debt
	  	 	99.1	 
	 Net financing costs
	  	 	(0.1	) 
	 Impact of foreign exchange fluctuations on income before income
taxes
	  	 	$87.2	 

 Income Taxes 
 Income tax
expense increased by $6.0 million to $18.2 million for the three-month period ended July 31, 2018, compared with $12.2 million for the three-month period ended July 31, 2017. The increase was primarily due to a higher operating
income, partially offset by a favourable mix of accounting profits and losses between tax jurisdictions. The effective income tax rate amounted to 30.7% for the three-month period ended July 31, 2018 compared with 10.5% for the three-month period
ended July 31, 2017. The increase resulted primarily from the tax and accounting treatment of the foreign exchange gain (loss) on the Term Facility. The increase was partially offset by the favourable mix of accounting profits and losses between tax
jurisdictions. 
 Net Income 
 Net income decreased by
$63.0 million to $41.0 million for the three-month period ended July 31, 2018, compared with $104.0 million for the three-month period ended July 31, 2017. The decrease was primarily due to an unfavourable foreign exchange rate
variation impact on the U.S. denominated long- term debt, partially offset by a higher operating income. 

  

			
	

	 	 

 11

 Analysis of Segment Results for the second quarter of Fiscal 2019 

The following section provides an overview of the financial performance of the Company’s segments for the three-month period ended July 31, 2018
compared to the same period ended July 31, 2017. The inter-segment transactions are included in the analysis. 

Powersports 
 Revenues 

Year-Round Products 
 Revenues from Year-Round Products
increased by $113.6 million, or 25.8%, to $554.0 million for the three-month period ended July 31, 2018, compared with $440.4 million for the corresponding period ended July 31, 2017. The increase resulted mainly from a higher volume
and a favourable product mix of SSV sold, partially offset by an unfavourable foreign exchange rate variation of $4 million. 
 North American
Year-Round Products retail sales increased on a percentage basis in the high-teen range compared with the three-month period ended July 31, 2017. 
 Seasonal
Products 
 Revenues from Seasonal Products increased by $67.9 million, or 21.4%, to $384.6 million for the three-month period ended July
31, 2018, compared with $316.7 million for the corresponding period ended July 31, 2017. The increase was driven by a higher volume and a favourable product mix of PWC sold and from a favourable product mix of snowmobiles sold. 

North American Seasonal Products retail sales increased in the mid-teen range compared with the three-month period ended July 31, 2017. 

Powersports PAC and OEM Engines 
 Revenues from Powersports
PAC and OEM Engines remained stable at $147.4 million for the three- month period ended July 31, 2018, compared with $143.4 million for the corresponding period ended July 31, 2017. 

Gross Profit 
 Gross profit increased by $77.6 million,
or 42.5%, to $260.4 million for the three-month period ended July 31, 2018, compared with $182.8 million for the corresponding period ended July 31, 2017. The gross profit increase includes a favourable foreign exchange rate variation of
$4 million. Gross profit margin percentage increased by 370 basis points to 24.0% from 20.3% for the three-month period ended July 31, 2017. The increase was primarily due to a higher volume of SSV sold, a favourable product mix and pricing,
lower sales program costs and a favourable foreign exchange rate variation, partially offset by higher production costs. 
 Marine 

Revenues 
 Marine Engines, Boats and PAC 

Revenues from Marine Engines, Boats and PAC remained stable at $128.8 million for the three-month period ended July 31, 2018, compared with
$129.5 million for the corresponding period ended July 31, 2017. 
 North American outboard engine retail sales increased on a percentage basis
by low-single digits compared with the three-month period ended July 31, 2017. 

  

			
	

	 	 

 12

 Gross Profit 

Gross profit decreased by $13.5 million, or 40.7%, to $19.7 million for the three-month period ended July 31, 2018, compared with
$33.2 million for the corresponding period ended July 31, 2017. Gross profit margin percentage decreased to 15.3% from 25.6% for the three-month period ended July 31, 2017. The decrease was primarily due to higher production costs and higher
sales program costs. 
 Geographical Trends 
 Revenues 

United States 
 Revenues from the United States increased by
$168.9 million, or 32.6%, to $686.9 million for the three-month period ended July 31, 2018, compared with $518.0 million for the corresponding period ended July 31, 2017. The increase resulted
from a higher volume and a favourable product mix of SSV and snowmobiles sold, partially offset by an unfavourable foreign exchange impact of $8 million. The United States represented 56.9% and 50.6% of revenues during the three-month periods
ended July 31, 2018 and 2017, respectively. 
 Canada 

Revenues from Canada remained stable at $188.2 million for the three-month period ended July 31, 2018, compared with $181.1 million for the
corresponding period ended July 31, 2017. Canada represented 15.6% and 17.7% of revenues during the three-month periods ended July 31, 2018 and 2017, respectively. 

International 
 Revenues from International increased by
$7.9 million, or 2.4%, to $331.9 million for the three-month period ended July 31, 2018, compared with $324.0 million for the corresponding period ended July 31, 2017. The increase primarily resulted from a higher volume and a
favourable product mix of PWC sold, partially offset by a lower volume of snowmobiles sold. International represented 27.5% and 31.7% of revenues during the three-month periods ended July 31, 2018 and 2017, respectively. 

  

			
	

	 	 

 13

 Analysis of Results for the first half of Fiscal 2019 

The following section provides an overview of the financial performance of the Company for the six-month period
ended July 31, 2018 compared to the same period ended July 31, 2017. 
 Revenues 

Revenues increased by $343.7 million, or 17.2%, to $2,343.7 million for the six-month period ended July 31, 2018, compared with
$2,000.0 million for the corresponding period ended July 31, 2017. The revenue increase was primarily attributable to higher wholesale of Year-Round Products and Seasonal Products, partially offset by an unfavourable foreign exchange rate
variation of $19 million. 
 The Company’s North American retail sales for powersports vehicles and outboard engines increased by 12% for
the six-month period ended July 31, 2018 compared with the six-month period ended July 31, 2017, mainly due to an increase in SSV and PWC. 
 Gross Profit 

Gross profit increased by $118.6 million, or 26.8%, to $561.7 million for the six-month period ended July 31, 2018, compared with
$443.1 million for the corresponding period ended July 31, 2017. The gross profit increase includes a favourable foreign exchange rate variation of $1 million. Gross profit margin percentage increased by 180 basis points to 24.0% from
22.2% for the six-month period ended July 31, 2017. The increase was primarily due to a higher volume of SSV and PWC sold and a favourable product mix and pricing, partially offset by higher sales program costs and higher production costs. 

Operating Expenses 
 Operating expenses increased by
$37.1 million, or 11.1%, to $372.7 million for the six-month period ended July 31, 2018, compared with $335.6 million for the six-month period ended July 31, 2017. The increase was mainly attributable to higher selling and marketing
expenses. 
 Normalized EBITDA [1] 

Normalized EBITDA [1] increased by $86.5 million, or 46.9%, to $270.8 million for the
six-month period ended July 31, 2018, compared with $184.3 million for the six-month period ended July 31, 2017. The increase was primarily due to higher gross profit, partially offset by higher operating expenses. 

Net Financing Costs 
 Net financing costs increased by
$13.3 million, or 54.3%, to $37.8 million for the six-month period ended July 31, 2018, compared with $24.5 million for the six-month period ended July 31, 2017. The increase primarily resulted from the transaction costs on the Term
Facility following the refinancing and from a higher interest expense on the Term Facility due to a higher outstanding nominal amount. 
  

	[1] 	 See “Non-IFRS Measures” section. 

  

			
	

	 	 

 14

 Foreign Exchange 

The key average exchange rates used to translate foreign-denominated revenues and expenses, excluding any effect of the Company’s hedging program,
were as follows for the six-month periods ended July 31, 2018 and 2017: 
  

													
	  	  	  	 	  	July 31,
2018	    	  	 	  	July 31,
2017
	 U.S. dollars
	  	 	1.2886	 	  	CA$/US$	    	 	1.3255	 	  	CA$/US$
	 Euro
	  	 	1.5495	 	  	CA$/Euro	    	 	1.4543	 	  	CA$/Euro

 The key period-end exchange rates used to translate foreign-denominated assets and liabilities were as follows: 

 

													
	  	  	  	 	  	July 31,
2018	    	  	 	 	January 31,
2018
	 U.S. dollars
	  	 	1.3019	 	  	CA$/US$	    	 	1.2293	 	 	CA$/US$
	 Euro
	  	 	1.5238	 	  	CA$/Euro	    	 	1.5280	 	 	CA$/Euro

 When comparing the operating income and the income before income tax for the six-month period ended July 31, 2018 to the
corresponding period ended July 31, 2017, the foreign exchange fluctuations impact was the following: 
  

					
	  	  	Foreign exchange (gain) loss	 
	(in millions of Canadian dollars)	  	Six-month period	 
	 Revenues
	  	 	$19.4	 
	 Cost of sales
	  	 	(20.8	) 
	 Impact of foreign exchange fluctuations on gross profit
	  	 	(1.4	) 
	 Operating expenses
	  	 	3.7	 
	 Impact of foreign exchange fluctuations on operating income
	  	 	2.3	 
	 Long-term debt
	  	 	96.4	 
	 Net financing costs
	  	 	(0.6	) 
	 Impact of foreign exchange fluctuations on income before income
taxes
	  	 	$98.1	 

 Income Taxes 
 Income tax
expense increased by $16.5 million to $38.0 million for the six-month period ended July 31, 2018, compared with $21.5 million for the six-month period ended July 31, 2017. The increase was primarily due to a higher operating income.
The effective income tax rate amounted to 41.1% for the six-month period ended July 31, 2018 compared with 17.8% for the six-month period ended July 31, 2017. The increase resulted primarily from the tax and
accounting treatment of the foreign exchange gain (loss) on the Term Facility. The increase was partially offset by the favourable mix of accounting profits and losses between tax jurisdictions. 

Net Income 
 Net income decreased by $44.7 million to
$54.4 million for the six-month period ended July 31, 2018, compared with $99.1 million for the six-month period ended July 31, 2017. The decrease was primarily due to an unfavourable foreign exchange rate variation impact on the U.S.
denominated long-term debt, partially offset by a higher operating income. 

  

			
	

	 	 

 15

 Analysis of Segment Results for first half of Fiscal 2019 

The following section provides an overview of the financial performance of the Company’s segments for the six-month period ended July 31, 2018
compared to the same period ended July 31, 2017. The inter-segment transactions are included in the analysis. 

Powersports 
 Revenues 

Year-Round Products 
 Revenues from Year-Round Products
increased by $244.1 million, or 29.2%, to $1,080.6 million for the six-month period ended July 31, 2018, compared with $836.5 million for the corresponding period ended July 31, 2017. The increase was primarily attributable to a
higher volume and a favourable product mix of SSV sold, partially offset by an unfavourable foreign exchange rate variation of $12 million. 

North American Year-Round Products retail sales increased on a percentage basis in the mid-teen range compared with the six-month period ended July 31,
2017. 
 Seasonal Products 
 Revenues from Seasonal Products
increased by $93.9 million, or 14.6%, to $735.0 million for the six-month period ended July 31, 2018, compared with $641.1 million for the corresponding period ended July 31, 2017. The
increase resulted primarily from a higher volume and a favourable product mix of PWC sold and from a favourable product mix of snowmobiles sold, partially offset by an unfavourable foreign exchange rate variation of $6 million. 

North American Seasonal Products retail sales increased on a percentage basis in the low-teen range compared with the six-month period ended July 31,
2017. 
 Powersports PAC and OEM Engines 
 Revenues from
Powersports PAC and OEM Engines increased by $8.9 million, or 3.0%, to $303.7 million for the six-month period ended July 31, 2018, compared with $294.8 million for the corresponding period ended July 31, 2017. The increase was mainly
attributable to a higher volume of SSV and PWC accessories, partially offset by a lower volume of motorcycle engines sold. 
 Gross Profit 

Gross profit increased by $125.5 million, or 32.0%, to $517.9 million for the six-month period ended July 31, 2018, compared with
$392.4 million for the corresponding period ended July 31, 2017. The gross profit increase includes an unfavourable foreign exchange rate variation of $2 million. Gross profit margin percentage increased by 230 basis points to 24.4% from
22.1% for the six-month period ended July 31, 2017. The increase was primarily due to a higher volume of SSV and PWC sold and a favourable product mix and pricing, partially offset by higher sales program costs and higher production costs. 

Marine 
 Revenues 

Marine Engines, Boats and PAC 
 Revenues from Marine Engines,
Boats and PAC remained stable at $242.2 million for the six-month period ended July 31, 2018, compared with $245.0 million for the corresponding period ended July 31, 2017. 

North American outboard engine retail sales decreased on a percentage basis by low-single digits compared with the six-month period ended July 31, 2017.

  

			
	

	 	 

 16

 Gross Profit 

Gross profit decreased by $6.9 million, or 13.6%, to $43.8 million for the six-month period ended July 31, 2018, compared with
$50.7 million for the corresponding period ended July 31, 2017. The gross profit decrease includes a favourable foreign exchange rate variation of $3 million. Gross profit margin percentage decreased by 260 basis points to 18.1% from 20.7%
for the six-month period ended July 31, 2017. The decrease was primarily due to higher sales program costs, higher production costs and an unfavourable product mix, partially offset by a favourable foreign exchange rate variation. 

Geographical Trends 
 Revenues 

United States 
 Revenues from the United States increased by
$268.1 million, or 25.7%, to $1,310.8 million for the six-month period ended July 31, 2018, compared with $1,042.7 million for the corresponding period ended July 31, 2017. The increase is
mainly due to a higher volume and a favourable product mix of SSV and snowmobiles sold, partially offset by an unfavourable foreign exchange impact of $31 million. The United States represented 55.9% and 52.1% of revenues during the six-month
periods ended July 31, 2018 and 2017, respectively. 
 Canada 

Revenues from Canada increased by $26.8 million, or 8.3%, to $351.1 million for the six-month period ended July 31, 2018, compared with
$324.3 million for the corresponding period ended July 31, 2017. The increase was mainly attributable to a higher volume of PWC and SSV sold. Canada represented 15.0% and 16.2% of revenues during the six-month periods ended July 31, 2018 and
2017, respectively. 
 International 
 Revenues from
International increased by $48.8 million, or 7.7%, to $681.8 million for the six-month period ended July 31, 2018, compared with $633.0 million for the corresponding period ended July 31, 2017. The increase primarily resulted from a
higher volume and a favourable product mix of PWC sold and from a favourable foreign exchange impact of $12 million. The increase was partially offset by a lower volume of motorcycle engines sold. International represented 29.1% and 31.7% of
revenues during the six-month periods ended July 31, 2018 and 2017, respectively. 

  

			
	

	 	 

 17

 Summary of Consolidated Quarterly Results 

 
  

 

																																	
	  	 	Three-month periods ended	 
	  	 	 July

31,
 2018
	 	 	 April

30,
 2018
	 	 	 January

31,
 2018 [1] 
	 	 	 October
31,

2017 [1] 
	 	 	 July

31,
 2017 [1]
	 	 	April
30,
2017 [1]	 	 	 January
31,

2017
	 	 	 October
31,

2016
	 
	(millions of Canadian dollars,
except per share data)	 	Fiscal
2019	 	 	Fiscal
2019	 	 	Fiscal
2018	 	 	Fiscal
2018	 	 	Fiscal
2018	 	 	Fiscal
2018	 	 	Fiscal
2017	 	 	Fiscal
2017	 
	 Revenues by category [2] 
	 				 				 				 				 				 				 				 			
	 Year-Round Products
	 	 	$554.0	 	 	 	$526.6	 	 	 	$509.1	 	 	 	$464.4	 	 	 	$440.4	 	 	 	$396.1	 	 	 	$527.3	 	 	 	$383.9	 
	 Seasonal Products
	 	 	384.6	 	 	 	350.4	 	 	 	437.2	 	 	 	475.6	 	 	 	316.7	 	 	 	324.4	 	 	 	489.5	 	 	 	417.1	 
	 Powersports PAC and
OEM Engines
	 	 	147.1	 	 	 	155.9	 	 	 	187.3	 	 	 	179.1	 	 	 	142.5	 	 	 	150.8	 	 	 	182.3	 	 	 	166.9	 
	 Marine Engines, Boats and PAC
	 	 	121.3	 	 	 	103.8	 	 	 	92.4	 	 	 	107.4	 	 	 	123.5	 	 	 	105.6	 	 	 	106.2	 	 	 	112.3	 
	 Total Revenues
	 	 	1,207.0	 	 	 	1,136.7	 	 	 	1,226.0	 	 	 	1,226.5	 	 	 	1,023.1	 	 	 	976.9	 	 	 	1,305.3	 	 	 	1,080.2	 
	 Gross profit
	 	 	280.1	 	 	 	281.6	 	 	 	282.1	 	 	 	319.9	 	 	 	216.0	 	 	 	227.1	 	 	 	335.6	 	 	 	307.2	 
	 As a percentage of revenues
	 	 	23.2%	 	 	 	24.8%	 	 	 	23.0%	 	 	 	26.1%	 	 	 	21.1%	 	 	 	23.2%	 	 	 	25.7%	 	 	 	28.4%	 
									
	 Net income (loss)
	 	 	41.0	 	 	 	13.4	 	 	 	70.0	 	 	 	70.0	 	 	 	104.0	 	 	 	(4.9	) 	 	 	136.4	 	 	 	78.7	 
	 Normalized EBITDA [3] 
	 	 	144.2	 	 	 	126.6	 	 	 	162.2	 	 	 	189.7	 	 	 	83.7	 	 	 	100.6	 	 	 	204.3	 	 	 	196.9	 
	 Normalized net income [3] 
	 	 	66.4	 	 	 	53.5	 	 	 	76.2	 	 	 	103.6	 	 	 	22.9	 	 	 	42.8	 	 	 	111.8	 	 	 	104.4	 
									
	 Basic earnings (loss) per share
	 	 	0.41	 	 	 	0.13	 	 	 	0.69	 	 	 	0.68	 	 	 	0.94	 	 	 	(0.05	) 	 	 	1.22	 	 	 	0.70	 
	 Diluted earnings (loss) per share
	 	 	0.41	 	 	 	0.13	 	 	 	0.68	 	 	 	0.67	 	 	 	0.93	 	 	 	(0.05	) 	 	 	1.22	 	 	 	0.70	 
									
	 Normalized basic earnings per share [3]

	 	 	0.67	 	 	 	0.53	 	 	 	0.75	 	 	 	1.00	 	 	 	0.21	 	 	 	0.38	 	 	 	1.00	 	 	 	0.93	 
	 Normalized diluted earnings per share [3] 
	 	 	$0.66	 	 	 	$0.52	 	 	 	$0.74	 	 	 	$0.99	 	 	 	$0.20	 	 	 	$0.38	 	 	 	$1.00	 	 	 	$0.93	 

  

	[1] 	 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018. 

 

	[2] 	 Comparative figures have been modified to reflect the new categories of revenues following the acquisition of Alumacraft
and the creation of the Marine Group. 

  

	[2] 	 See “Non-IFRS Measures” section. 

  

			
	

	 	 

 18

 Reconciliation Table for Consolidated Quarterly Results 

 
  

 

																																	
	  	 	Three-month periods ended	 
	  	 	 July

31,
2018
	 	 	April
30,
2018	 	 	January
31,
2018 [1] 	 	 	October
31,
2017 [1] 	 	 	 July

31,
2017 [1]
	 	 	April
30,
2017 [1]	 	 	January
31,
2017	 	 	October
31,
2016	 
	(millions of Canadian dollars)	 	Fiscal
2019	 	 	Fiscal
2019	 	 	Fiscal
2018	 	 	Fiscal
2018	 	 	Fiscal
2018	 	 	Fiscal
2018	 	 	Fiscal
2017	 	 	Fiscal
2017	 
	 Net income (loss)
	 	 	$41.0	 	 	 	$13.4	 	 	 	$70.0	 	 	 	$70.0	 	 	 	$104.0	 	 	 	$(4.9)	 	 	 	$136.4	 	 	 	$78.7	 
	 Normalized elements
	 				 				 				 				 				 				 				 			
	 Foreign exchange (gain) loss on long-term debt
	 	 	17.3	 	 	 	41.5	 	 	 	(47.4	) 	 	 	31.7	 	 	 	(81.8	) 	 	 	44.2	 	 	 	(25.3	) 	 	 	24.5	 
	 Transaction costs and other related expenses
	 	 	1.2	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 Restructuring and related costs (reversal) [2] 
	 	 	0.6	 	 	 	0.2	 	 	 	2.9	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.3	) 	 	 	(0.4	) 
	 Loss on litigation [3] 
	 	 	0.2	 	 	 	0.6	 	 	 	0.2	 	 	 	—	 	 	 	0.9	 	 	 	4.8	 	 	 	7.8	 	 	 	0.3	 
	 Transaction costs on
long-term debt
	 	 	8.9	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 Pension plan past service gains
	 	 	(1.4	) 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(6.3	) 	 	 	—	 
	 Other elements
	 	 	1.2	 	 	 	(2.0	) 	 	 	1.0	 	 	 	2.6	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1.1	 
	 Income tax adjustment
[4] 
	 	 	(2.6	) 	 	 	(0.2	) 	 	 	49.5	 	 	 	(0.7	) 	 	 	(0.2	) 	 	 	(1.3	) 	 	 	(0.5	) 	 	 	0.2	 
	 Normalized net income [5] 
	 	 	66.4	 	 	 	53.5	 	 	 	76.2	 	 	 	103.6	 	 	 	22.9	 	 	 	42.8	 	 	 	111.8	 	 	 	104.4	 
	 Normalized income tax expense [5] 
	 	 	20.8	 	 	 	20.0	 	 	 	31.1	 	 	 	36.1	 	 	 	12.4	 	 	 	10.6	 	 	 	43.0	 	 	 	43.7	 
	 Financing costs adjusted
	 	 	16.7	 	 	 	14.1	 	 	 	13.8	 	 	 	13.8	 	 	 	13.4	 	 	 	12.5	 	 	 	13.8	 	 	 	14.8	 
	 Financing income adjusted
	 	 	(0.5	) 	 	 	(0.6	) 	 	 	(0.3	) 	 	 	(0.5	) 	 	 	(0.7	) 	 	 	(0.7	) 	 	 	—	 	 	 	—	 
	 Depreciation expense
	 	 	40.8	 	 	 	39.6	 	 	 	41.4	 	 	 	36.7	 	 	 	35.7	 	 	 	35.4	 	 	 	35.7	 	 	 	34.0	 
	 Normalized EBITDA
[5] 
	 	 	$144.2	 	 	 	$126.6	 	 	 	$162.2	 	 	 	$189.7	 	 	 	$83.7	 	 	 	$100.6	 	 	 	$204.3	 	 	 	$196.9	 

  

	[1] 	 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018. 

 

	[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] 	 The Company is involved in patent infringement litigation cases with one of its competitors. 

 

	[4] 	 For the three-month period ended January 31, 2018, the income tax adjustment is mainly related to the tax rate changes on
deferred income taxes following the U.S. tax reform. 

  

	[5] 	 See “Non-IFRS Measures” section. 

  

			
	

	 	 

 19

 Liquidity and Capital Resources 
  

 
  

Liquidity 
 The Company’s primary sources of cash consist of
existing cash balances, operating activities and available borrowings under the revolving credit facilities and Term Facility. 
 The Company’s
primary uses of cash are to fund operations, working capital requirements and capital expenditures in connection with product development and manufacturing infrastructure. The fluctuation of working capital requirements is primarily due to the
seasonality of the Company’s production schedule and product shipments. 
 A summary of net cash flows by activities is presented below for the
six-month periods ended July 31, 2018 and 2017: 
  

									
	  	  	Six-month periods ended	 
	(millions of Canadian dollars)	  	 July 31,

2018
	 	  	 July 31,

2017
	 
	  
	 
	 Net cash flows generated from operating activities
	  	 	$202.0	 	  	 	$89.0	 
	 Net cash flows used in investing activities
	  	 	(182.2	) 	  	 	(82.1	) 
	 Net cash flows used in financing activities
	  	 	(157.1	) 	  	 	(274.3	) 
	 Effect of exchange rate changes on cash
	  	 	0.9	 	  	 	(2.1	) 
	  
	 
	 Net decrease in cash
	  	 	(136.4	) 	  	 	(269.5	) 
	 Cash at beginning of period
	  	 	226.0	 	  	 	298.6	 
	  
	 
	 Cash at end of period
	  	 	$89.6	 	  	 	$29.1	 
	  
	 

 Net Cash Flows Generated from Operating Activities 

Net cash flows generated from operating activities totalled $202.0 million for the six-month period ended July 31, 2018 compared with
$89.0 million for the six-month period ended July 31, 2017. The $113.0 million increase in net cash flows generated was mainly due to higher operating income and favourable changes in working capital of $36.7 million. The favourable
changes in working capital were primarily driven by Trade payables and accruals to support production increase, partially offset by higher Inventory. 
 Net Cash
Flows Used in Investing Activities 
 Net cash flows used in investing activities totalled $182.2 million for the six-month period ended
July 31, 2018 compared with $82.1 million for the six-month period ended July 31, 2017. The $100.1 million increase was mainly attributable to the acquisition of Alumacraft. 

Net Cash Flows Used in Financing Activities 
 Net cash flows
used in financing activities totalled $157.1 million for the six-month period ended July 31, 2018 compared with $274.3 million for the six-month period ended July 31, 2017. The $117.2 million decrease in net cash flows used was
mainly attributable to the lower number of shares repurchased and to the increase of the principal amount of the term facility by U.S. $111.0 million, partially offset by a lower revolving credit facilities usage. 

  

			
	

	 	 

 20

 Contractual Obligations 

The following table summarizes the Company’s significant contractual obligations as at July 31, 2018, including commitments related to leasing
contracts: 
  

																					
	(millions of Canadian dollars)	  	Less than
1 year	 	  	1-3 years	 	  	4-5 years	 	  	More than
5 years	 	  	Total
amount	 
	 Commitments
	  				  				  				  				  			
	 Operating lease agreements
	  	 	$33.2	 	  	 	$57.3	 	  	 	$45.7	 	  	 	$103.0	 	  	 	$239.2	 
						
	 Financial obligations
	  				  				  				  				  			
	 Trade payables and accruals
	  	 	822.6	 	  	 	—	 	  	 	—	 	  	 	—	 	  	 	822.6	 
	 Long-term debt (including interest)
	  	 	69.4	 	  	 	128.3	 	  	 	127.2	 	  	 	1,220.8	 	  	 	1,545.7	 
	 Derivative financial instruments
	  	 	5.4	 	  	 	—	 	  	 	—	 	  	 	2.1	 	  	 	7.5	 
	 Other financial liabilities (including interest)
	  	 	92.4	 	  	 	0.8	 	  	 	0.4	 	  	 	24.4	 	  	 	118.0	 
	 	  	 	989.8	 	  	 	129.1	 	  	 	127.6	 	  	 	1,247.3	 	  	 	2,493.8	 
						
	 Total obligations
	  	 	$1,023.0	 	  	 	$186.4	 	  	 	$173.3	 	  	 	$1,350.3	 	  	 	$2,733.0	 

 The Company enters into purchasing agreements with suppliers related to material used in production. These agreements
are usually entered into before production begins and may specify a fixed or variable quantity of material to be purchased. Due to the uncertainty as to the amount and pricing of material that may be purchased, the Company is not able to determine
with precision its commitments in connection with these supply agreements. 
 Management believes that the Company’s operating activities and
available financing capacity will provide adequate sources of liquidity to meet its short-term and long-term needs. 
 Capital Resources 

Revolving Credit Facilities 
 On May 23, 2018, the Company
refinanced its $475.0 million revolving credit facilities to increase the availability by $100.0 million for a total availability of $575.0 million, to extend the maturity from June 2021 to May 2023 and to reduce the cost of borrowing
by 0.25% (the “Revolving Credit Facilities”). The Company incurred transaction fees of $2.6 million related to this refinancing. The total available borrowing under the Revolving Credit Facilities is subject to a borrowing base
calculation representing 75% of the carrying amount of trade and other receivables plus 50% of the carrying amount of inventories. The Revolving Credit Facilities are available to finance working capital requirements and capital expenditures, or for
other general corporate purposes. 
 As at July 31, 2018, the Company had no outstanding indebtedness under the Revolving Credit Facilities. 

The applicable interest rates vary depending on a leverage ratio. The leverage ratio is defined in the Revolving Credit Facilities agreement by the
ratio of net debt to consolidated cash flows of the Company’s subsidiary, Bombardier Recreational Products Inc. (the “Leverage ratio”). The applicable interest rates are as follows: 

	 	(i)	 U.S. dollars at either 

	 	(a)	 LIBOR plus 1.45% to 3.25% per annum; or 

	 	(b)	 U.S. Base Rate plus 0.45% to 2.25% per annum; or 

	 	(c)	 U.S. Prime Rate plus 0.45% to 2.25% per annum; 

 

	 	(ii)	 Canadian dollars at either 

	 	(a)	 Bankers’ Acceptances plus 1.45% to 3.25% per annum; or 

	 	(b)	 Canadian Prime Rate plus 0.45% to 2.25% per annum 

 

	 	(iii)	 Euros at Euro LIBOR plus 1.45% to 3.25% per annum. 

  

			
	

	 	 

 21

 In addition, the Company incurs commitment fees of 0.25% to 0.40% per annum on the undrawn amount of
the Revolving Credit Facilities. 
 As at July 31, 2018, the cost of borrowing under the Revolving Credit Facilities was as follows: 

 

	 	(i)	 U.S. dollars at either 

	 	(a)	 LIBOR plus 1.75% per annum; or 

	 	(b)	 U.S. Base Rate plus 0.75% per annum; or 

	 	(c)	 U.S. Prime Rate plus 0.75% per annum; 

 

	 	(ii)	 Canadian dollars at either 

	 	(a)	 Bankers’ Acceptances plus 1.75% per annum; or 

	 	(b)	 Canadian Prime Rate plus 0.75% per annum 

 

	 	(iii)	 Euros at Euro LIBOR plus 1.75% per annum. 

As at July 31, 2018, the commitment fees on the undrawn amount of the Revolving Credit Facilities were 0.25% per annum. 

Under certain conditions, the Company is required to maintain a minimum fixed charge coverage ratio in order to have full access to its Revolving Credit
Facilities. 
 As at July 31, 2018, the Company had issued letters of credit for an amount of $2.2 million under the Revolving Credit Facilities
($2.1 million as at January 31, 2018). In addition, $4.2 million in letters of credit were outstanding under other agreements as at July 31, 2018, ($5.2 million as at January 31, 2018). 

Term Facility 
 On May 23, 2018, the Company refinanced its
term facility to increase the principal amount by U.S. $111.0 million for a total principal of U.S. $900.0 million, to extend the maturity from June 2023 to May 2025 and to reduce the cost of borrowing by 0.50% (the “Term
Facility”). The Term Facility agreement contains customary representations and warranties but includes no financial covenants. The Company incurred transaction costs of $8.9 million. 

As at July 31, 2018, the cost of borrowing under the Term Facility was as follows: 

(i)    LIBOR plus 2.00% per annum, with a LIBOR floor of 0.00%; or 

(ii)   U.S. Base Rate plus 1.00%; or 

(iii)  U.S. Prime Rate plus 1.00% 
 Under
the Term Facility, the cost of borrowing in U.S. Base Rate or U.S. Prime Rate cannot be lower than the cost of borrowing in LIBOR. 
 The Company is
required to repay a minimum of 0.25% of the original nominal amount of U.S. $900.0 million each quarter, starting in the third quarter of the fiscal year ending January 31, 2019. Also, the Company may be required to repay a portion of the Term
Facility in the event that Bombardier Recreational Products Inc. has an excess cash position at the end of the fiscal year and its leverage ratio is above a certain threshold level. 

Austrian Term Loans 
 During the six-month period ended July
31, 2018, the Company entered into a term loan agreement at favourable interest rates under an Austrian government program. This program supports research and development projects based on the Company’s incurred expenses in Austria. The term
loan has a nominal amount of euro 0.9 million ($1.4 million) with an interest rate at Euribor three-months plus 1.00% and a maturity date on December 31, 2022. 

As at July 31, 2018, the Company had euro 22.8 million outstanding under its Austrian term loans bearing interest at a range between 0.75% and
2.19% and maturing between December 2018 and December 2028. 

  

			
	

	 	 

 22

 Finance Lease Liabilities 

As at July 31, 2018, the contractual obligations in relation to assets acquired under finance lease agreements amounted to $12.9 million to be
settled over a period ending in December 2030. 
 Normal Course Issuer Bid Program 

In March 2018, the Company announced the renewal of its NCIB to repurchase for cancellation up to 3,625,271 of its outstanding subordinate voting shares.
During the six-month period ended July 31, 2018, the Company repurchased the 3,625,271 subordinate voting shares for a total consideration of $212.3 million. In addition, during the same period, the Company completed the NCIB announced and
started during the year ended January 31, 2018 and repurchased 758,099 subordinate voting shares for a total consideration of $36.3 million. 
 Consolidated
Financial Position 
  
  

 
 The following table shows the main variances
that have occurred in the unaudited condensed consolidated interim statements of financial position of the Company between July 31, 2018 and January 31, 2018, the impact of the fluctuation of exchange rates on such variance, the related net
variance (excluding the impact of the fluctuation of exchange rates on such variance) as well as explanations for the net variance: 
  

																							
	(millions of
Canadian dollars)	  	July 31,
2018	 	  	January 31,
2018 [1] 	 	  	Variance	 	 	Exchange
Rate
Impact	 	 	Net
Variance	 	 	Explanation of Net Variance
	 Trade and other

receivables
	  	 	$247.6	 	  	 	$328.8	 	  	 	$(81.2	) 	 	 	$(1.0	) 	 	 	$(82.2	) 	 	Mostly explained by collection
of snowmobiles’ trade
receivables in Scandinavia
	 Inventories
	  	 	879.1	 	  	 	742.8	 	  	 	136.3	 	 	 	(14.0	) 	 	 	122.3	 	 	Mostly explained by higher
inventory of snowmobiles for
upcoming product deliveries
and of SSV due to expanded
line-up and
increased
demand, partially offset by
lower PWC inventory
	 Property, plant

and equipment
	  	 	803.9	 	  	 	766.8	 	  	 	37.1	 	 	 	(4.4	) 	 	 	32.7	 	 	Mostly explained by
investments related to
production capacity increase
and optimization of
manufacturing infrastructure
and logistics
	 Trade payables

and accruals
	  	 	822.6	 	  	 	805.5	 	  	 	17.1	 	 	 	(20.6	) 	 	 	(3.5	) 	 	No significant variances
	 Long-term debt,

including current

portion
	  	 	1,213.2	 	  	 	1,014.8	 	  	 	198.4	 	 	 	(58.7	) 	 	 	139.7	 	 	Mostly explained by the
increase in the amount
borrowed under the Term
Facility
	 Employee future

benefit liabilities
	  	 	201.3	 	  	 	224.8	 	  	 	(23.5	) 	 	 	(0.2	) 	 	 	(23.7	) 	 	Mostly explained by the
increase of the discount rate
by approximately 30 basis
points on Canadian defined
benefit obligations

  

	[1] 	 Restated to reflect the adoption of IFRS 15 “Revenue from contracts with customers” and IFRS 9
“Financial instruments” standards as explained in Note 19 of the unaudited condensed consolidated interim financial statements for the three- and six-month periods ended July 31, 2018. 

  

			
	

	 	 

 23

 Off-Balance Sheet Arrangements 

 
  

Dealer and Distributor Financing Arrangements 
 The
Company, most of its independent dealers and some of its independent distributors are parties to agreements with third-party financing service providers. These agreements provide financing to facilitate the purchase of the Company’s products
and improve the Company’s working capital by allowing an earlier collection of accounts receivable from dealers and distributors. Approximately three-quarters of the Company’s sales are made under such agreements. The parties listed above
have agreements with TCF Inventory Finance Inc. and TCF Commercial Finance Canada Inc. (collectively, “TCF”), to provide financing facilities in North America and Latin America, and with Wells Fargo Commercial Distribution Finance, Wells
Fargo Bank International, Wells Fargo International Finance LLC and Wells Fargo International Finance (New Zealand) Limited (collectively “Wells Fargo”) for financing facilities in North America, Europe, Australia and New Zealand. The
agreement between the Company and TCF will expire on January 31, 2023. For the contracts with Wells Fargo, the maximum commitment period is up to August 29, 2019. 

The total amount of financing provided to the Company’s independent dealers and distributors totalled $939.7 million and $1,791.3 million
for the three- and six-month periods ended July 31, 2018, compared to $759.2 million and $1,419.6 million for the three- and six-month periods ended July 31, 2017. The outstanding financing between the Company’s independent dealers
and distributors and third-party finance companies amounted to $1,615.9 million and $1,576.9 million as at July 31, 2018, and January 31, 2018, respectively. 

The breakdown of outstanding amounts by country and local currency between the Company’s independent dealers and distributors with third-party
finance companies were as follows, as at: 
  

													
	(in millions)	    	Currency	 	    	 July 31,

2018
	 	    	 January 31,

2018
	 
	 Total outstanding
	    	 	CAD	 	    	 	$1,616	 	    	 	$1,577	 
	 United States
	    	 	USD	 	    	 	883	 	    	 	877	 
	 Canada
	    	 	CAD	 	    	 	363	 	    	 	387	 
	 Europe
	    	 	Euro	 	    	 	35	 	    	 	38	 
	 Australia and New Zealand
	    	 	AUD	 	    	 	51	 	    	 	54	 

 The costs incurred by the Company under the dealers’ and distributors’ financing agreements totalled
$12.7 million and $25.5 million for the three- and six-month periods ended July 31, 2018 compared with $10.1 million and $19.5 million for the three- and six-month periods ended July 31, 2017. 

Under the dealer and distributor financing agreements, in the event of default, the Company may be required to purchase, from the finance companies,
repossessed new and unused products at the total unpaid principal balance of the dealer or distributor to the finance companies. In North America, the obligation is limited to the greater of U.S. $25.0 million ($32.5 million) or 10% of the last
twelve-month average amount of financing outstanding under the financing agreements, whereas in Europe, the obligation is limited to the greater of U.S. $10.0 million ($13.0 million) or 10% of the last twelve-month average amount of financing
outstanding under the financing agreements. In Australia and New Zealand, the obligation to purchase repossessed new and unused products is limited to the greater of AU $5.0 million ($4.8 million) or 10% of the last twelve-month average
amount of financing outstanding under the financing agreements. 
 The maximum amount subject to the Company’s obligation to purchase repossessed
new and unused products from the finance companies was $200 million as at July 31, 2018 ($182 million in North America, $13 million in Europe and $5 million in Australia and New Zealand) and $162 million as at January 31,
2018 ($145 million in North America, $12 million in Europe and $5 million in Australia and New Zealand). 
 The Company did not incur
significant losses related to new and unused products repossessed by the finance companies for the three- and six-month periods ended July 31, 2018 and 2017. 

  

			
	

	 	 

 24

 Consumer Financing Arrangements 

The Company has contractual relationships with third-party financing companies in order to facilitate consumer credit for the purchase of its products in
North America. The agreements generally allow the Company to offer under certain sales programs a subsidized interest rate to consumers for a certain limited period. In Canada, the Company has agreements with TD Financing Services and the
Fédération des caisses Desjardins du Québec for such purposes. In the United States, the Company has agreements with Sheffield Financial, Citi Retail Services and Roadrunner Financial. Under these contracts, the Company’s
financial obligations are mainly related to the commitments made under certain sales programs. 
 Transactions Between Related Parties 

 
  

Transactions with Bombardier Inc., a Company Related to Beaudier Group 

Pursuant to the purchase agreement entered into in 2003 in connection with the acquisition of the recreational product business of Bombardier Inc., the
Company is committed to reimburse to Bombardier Inc. income taxes amounting to $22.2 million as at July 31, 2018 and $22.0 million as at January 31, 2018, respectively. The payments will begin when Bombardier Inc. starts making income tax
payments in Canada and/or in the United States. The Company does not expect to make any payments to Bombardier Inc. in relation with that obligation for the year ending January 31, 2019. 

Financial Instruments 
  

 
 The Company’s financial instruments,
divided into financial assets and financial liabilities, are measured at the end of each period at fair value or amortized costs using the effective interest method depending on their classification determined by IFRS. By nature, financial assets
are exposed to credit risk whereas financial liabilities are exposed to liquidity risk. Additionally, the Company’s financial instruments and transactions could be denominated in foreign currency creating a foreign exchange exposure that could
be mitigated by the use of derivative financial instruments. The Company is to a lesser extent exposed to interest risk associated to its Revolving Credit Facilities, Term Facility and Austrian term loans. 

Foreign Exchange Risk 
 The elements reported in the
consolidated statements of net income, in the consolidated statements of financial position and in the consolidated statements of cash flows presented in the Company’s unaudited condensed consolidated interim financial statements in Canadian
dollars are significantly exposed to the fluctuation of exchange rates, mainly the Canadian dollar/U.S. dollar rate and the Canadian dollar/euro rate. 

The Company’s cash inflows and outflows are mainly comprised of Canadian dollars, U.S. dollars and euros. The Company intends to maintain, as a
result of its business transactions, a certain offset position on U.S. dollar and euro denominated cash inflows and outflows. 
 For currencies over
which the Company cannot achieve an offset through its recurring business transactions, mainly for the Australian dollar, the Swedish krona, the Norwegian krone and the Great Britain pound, the Company uses foreign exchange contracts according to
the Company’s hedging policy. Under this policy, the Company hedges up to 50% of the budgeted revenue exposure in these currencies during the annual budget period and continually increases the coverage up to 80% six months before the expected
exposures arise. Management periodically reviews the relevant hedging position and may hedge at any level within the authorized parameters of the policy, up to the maximum percentage allowed. Those contracts are accounted for under the cash flow
hedge model covering highly probable forecasted sales in these currencies and the gains or losses on those derivatives are recorded in net income only when the forecasted sales occur. 

  

			
	

	 	 

 25

 Finally, the Company reduces the exposure on its net income arising from the revaluation at period-
end of U.S. dollar-denominated trade payables and accruals by using foreign exchange contracts having the same inception and maturity dates. Those contracts are recorded in net income at each period end in order to mitigate the gains or losses
resulting from the revaluation at spot rate of these foreign- denominated liabilities. 
 While the Company’s operating income is protected, to a
certain extent, from significant fluctuations of foreign exchange rates resulting from the application of the Company’s hedging strategy, the net income is significantly exposed to Canadian dollar/U.S. dollar rate fluctuations due to the U.S.
dollar-denominated long-term debt. However, the Company’s normalized net income [1] does not take into account the foreign exchange (gain) loss on long-term debt. 

Liquidity Risk 
 The Company is exposed to the risk of
encountering difficulty in meeting obligations related to its financial liabilities. In order to manage its liquidity risk accurately, the Company continuously monitors its operating cash requirements taking into account the seasonality of the
Company’s working capital needs, revenues and expenses. The Company believes the cash flows generated from operations combined with its cash on hand and the availability of funds under its credit facilities ensures its financial flexibility and
mitigates its liquidity risk. 
 Credit Risk 
 The
Company could be exposed, in the normal course of business, to the potential inability of dealers, distributors and other business partners to meet their contractual obligations on financial assets and on amounts guaranteed under dealer and
distributor financing arrangements with TCF and Wells Fargo. 
 The Company considers that its credit risk associated with its trade receivables and
its limited responsibilities under the dealer and distributor financing agreements with TCF and Wells Fargo does not represent a significant concentration of risk and loss due to the large number of dealers, distributors and other business partners
and their dispersion across many geographic areas. Moreover, the Company mitigates such risk by doing business through its own distribution channels and by monitoring the creditworthiness of the dealers and distributors in the different geographic
areas. 
 Interest Rate Risk 
 The Company is exposed
to the variation of interest rates mainly resulting from the LIBOR on its Term Facility and the Company does not hedge this exposure. Therefore, an increase in interest rates could negatively impact the Company’s operating results. 

 

	[1] 	 See “Non-IFRS Measures” section. 

  

			
	

	 	 

 26

 Critical Accounting Estimates 

 
  

Significant Estimates and Judgments 
 The preparation
of the unaudited condensed consolidated interim financial statements in accordance with the Company’s accounting policies requires management to make estimates and judgments that can affect the reported amounts of assets and liabilities,
related amounts of revenues and expenses, other comprehensive income and disclosures made. 
 The Company’s best estimates are based on the
information, facts and circumstances available at the time estimates are made. Management uses historical experience and information, general economic conditions and trends, as well as assumptions regarding probable future outcomes as the basis for
determining estimates. Estimates and their underlying assumptions are reviewed periodically and the effects of any changes are recognized immediately. Actual results could differ from the estimates used and such differences could be significant.

 The Company’s annual operating budget and operating budget revisions performed during the year (collectively “Budget”) and the
Company’s strategic plan comprise fundamental information used as a basis for some significant estimates necessary to prepare the unaudited condensed consolidated interim financial statements. Management prepares the annual operating budget and
strategic plan each year using a process whereby a detailed one-year budget and three-year strategic plan are prepared by each entity and then consolidated. 

Cash flows and profitability included in the Budget are based on the existing and future expected sales orders, general market conditions, current cost
structures, anticipated cost variations and current agreements with third parties. Management uses the annual operating budget information as well as additional projections or assumptions to derive the expected results for the strategic plan and
periods thereafter. 
 The Budget and the strategic plan are approved by management and the Board of Directors. Management then tracks performance as
compared to the Budget. Significant variances in actual performance are a key trigger to assess whether certain estimates used in the preparation of financial information must be revised. 

Management needs to rely on estimates in order to apply the Company’s accounting policies and considers that the most critical ones are the
following: 
 Estimating the Net Realizable Value of Inventory 

The net realizable value of materials and work in progress is determined by comparing inventory components and value with production needs, current and
future product features, expected production costs to be incurred and the expected profitability of finished products. The net realizable value of finished products and parts and accessories is determined by comparing inventory components and value
with expected sales prices, sales program and new product features. 
 Estimating the Useful Life of Tooling 

Tooling useful life is estimated by product line based on their expected physical life and on the expected life of the product platform they are related
to. 
 Estimating Impairment on Property, Plant and Equipment and Intangible Assets 

Management assesses the value in use of property, plant and equipment and intangible assets mainly at groups of CGU level using a discounted cash flow
approach by product line determined during the annual budget and strategic plan process. When the Company acquired the recreational products business from Bombardier Inc. in 2003, trademarks and goodwill were recorded as part of the business
acquisition. As at July 31, 2018, $135.9 million of trademarks and $114.7 million of goodwill were related to this transaction. Following the acquisition of Alumacraft, $25.8 million of trademarks and $24.5 million of goodwill
were recorded. 

  

			
	

	 	 

 27

 (i) Trademarks Impairment Test 

For the purpose of impairment testing, Ski-Doo®, Sea-Doo®, Evinrude® and Alumacraft® trademarks are allocated to their respective CGU. The
carrying amount of trademarks amounting to $161.4 million is related to Ski-Doo, Sea-Doo, Evinrude and Alumacraft for $63.5 million, $59.1 million, $13.3 million and $25.5 million respectively.

 Recoverable Amount 
 The
Company determines the recoverable amount of these trademarks separately using value in use calculation. Value in use uses cash flow projections from the Company’s one-year budget and three-year strategic plan, with a terminal value calculated
by discounting the final year in perpetuity. These figures, used as the basis for the key assumptions in the value in use calculation, include sales volume, sales price, production costs, distribution costs and operating expenses as well as discount
rates. This information represents the best available information as at the date of impairment testing. The estimated future cash flows are discounted to their present value. The Company performs sensitivity analysis on the cash flows and growth
rate in order to confirm that the trademarks are not impaired. 
 (ii) Goodwill Impairment Test 

For the purpose of impairment testing, goodwill of $114.7 million created in 2003 was allocated to the group of CGU representing all the
Company’s product lines. 
 Recoverable Amount 

The recoverable amount of the group of CGUs is based on a value in use calculation using cash flow projections, which takes into account the
Company’s one-year budget and three-year strategic plan, with a terminal value calculated by discounting the final year in perpetuity. These figures, used as the basis for the key assumptions in the value in use calculation, include sales
volume, sales price, production costs, distribution costs and operating expenses as well as discount rates. This information represents the best available information as at the date of impairment testing. The estimated future cash flows are
discounted to their present value. The Company performs sensitivity analysis on the cash flows and growth rate in order to confirm that goodwill is not impaired. 

Estimating Recoverability of Deferred Tax Assets 
 Deferred
tax assets are recognized only if management believes it is probable that they will be realized based on annual budget, strategic plan and additional projections to derive the expected results for the periods thereafter. 

Estimating Provisions for Regular Product Warranty, Product Liability, Sales Program and Restructuring 

The regular warranty cost is established by product and recorded at the time of sale based on management’s best estimate, using historical cost
rates and trends. Adjustments to the regular warranty provision are made when the Company identifies a significant and recurring issue on products sold or when costs and trend differences are identified in the analysis of regular warranty claims.

 The product liability provision at period end is based on management’s best estimate of the amounts necessary to resolve existing claims. In
addition, the product liability provision at the end of the reporting period includes incurred, but not reported claims, based on average historical cost information. 

Sales program provision is estimated based on current program features, historical data and expected retail sales for each product line. 

Restructuring provision is initially estimated based on restructuring plan estimated costs in relation with the plan features approved by management.
Restructuring provision is reviewed at each period end in order to take into account updated information in relation with the realization of the plan. If necessary, the provision is adjusted accordingly. 

  

			
	

	 	 

 28

 Estimating the Discount Rates Used in Assessing Defined Benefit Plan Expenses and Liability 

In order to select the discount rates used to determine defined benefit plan expenses and liabilities, management consults with external actuarial firms
to provide commonly used and applicable discount rates that are based on the yield of high quality corporate fixed income investments with cash flows that match expected benefit payments for each defined benefit plan. Management uses its knowledge
and comprehension of general economic factors in order to conclude on the accuracy of the discount rates used. 
 Significant Judgments in Applying the
Company’s Accounting Policies 
 Management needs to make certain judgments in order to apply the Company’s accounting policies and
the most significant ones are the following: 
 Impairment of Property, Plant and Equipment and Intangible Assets 

The Company operates using a high level of integration and interdependency between design, development, manufacturing and distribution operations. The
cash inflows generated by each product line require the use of various assets of the Company, limiting the impairment testing to be done for a single asset. Therefore, management performs impairment testing by grouping CGUs. 

Functional Currency 
 The Company operates worldwide but its
design, development, manufacturing and distribution operations are highly integrated, which require significant judgements from management in order to determine the functional currency of each entity using factors provided by IAS 21 “The
Effects of Changes in Foreign Exchange Rates”. Management established an accounting policy where the functional currency of each entity is deemed to be its local currency unless the assessment of the criteria established by IAS 21 to
assess the functional currency leads to the determination of another currency. IAS 21 criteria are reviewed annually for each entity and are based on transactions with third-parties only. 

Future Accounting Changes 
  

 
  

IFRS 16 Leases 
 In January 2016, the IASB issued
IFRS 16 “Leases” that sets out the principles for recognition, measurement, presentation and disclosure of leases for both lessee and lessor. IFRS 16 introduces a single lessee accounting model and requires lessees to recognize
assets and liabilities for all leases, except when the term is twelve months or less or when the underlying asset has a low value. The effective date of IFRS 16 for the Company is February 1, 2019. The adoption of IFRS 16 will result in the
recognition of a right-of-use asset and a lease liability measured at the present value of the future lease payments on the statement of financial position for a majority of its leases that are considered operating leases under IAS 17
“Leases”. The Company has not yet determined the monetary impact of this change and is continuing to assess the impact of the new standard and will provide further updates during the course of the year ending January 31, 2019. 

  

			
	

	 	 

 29

 IFRIC 23 Uncertainty over income tax treatments 

In June 2017, the IASB released IFRIC 23 “Uncertainty over income tax treatments”. IFRIC 23 clarifies the application of recognition and
measurement requirements in IAS 12 “Income taxes”, when there is uncertainty over income tax treatments. It specifically addresses whether an entity considers each tax treatment independently or collectively, the assumptions an
entity makes about the examination of tax treatments by taxation authorities, how an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates and how an entity considers changes in facts and
circumstances. IFRIC 23 will be effective for the Company fiscal year beginning on February 1, 2019. The Company is assessing the impact of the adoption of this standard on its consolidated financial statements. 

Other standards or amendments 
 The IASB issued other
standards or amendments to existing standards that are not expected to have a significant impact on the Company’s consolidated financial statements. 

Controls and Procedures 
  

 
  

Management’s report on internal controls over financial reporting 

There were no changes in the Company’s internal controls over financial reporting during the three- month period ended July 31, 2018, that have
materially affected, or are reasonably likely to materially affect the Company’s internal controls over financial reporting. 
 Dividend 

 
  

 
 On August 29, 2018, the Company’s Board
of Directors declared a quarterly dividend of $0.09 per share for holders of its multiple voting shares and subordinate voting shares. The dividend will be paid on October 12, 2018 to shareholders of record at the close of business on September 28,
2018. 
 The Board of Directors has determined that this quarterly dividend is appropriate based on the Company’s results of operations, current
and anticipated cash requirements and surplus, financial condition, contractual restrictions and financing agreement covenants (including restrictions in the Term Credit Agreement and the Revolving Credit Agreement or other material agreements),
solvency tests imposed by corporate law and on other relevant factors. 
 The payment of each quarterly dividend remains subject to the declaration of
that dividend by the Board of Directors. The actual amount, the declaration date, the record date and the payment date of each quarterly dividend are subject to the discretion of the Board of Directors. 

Risk Factors 
  

 
  

For a detailed description of risk factors associated with the Company, refer to the “Risk Factors” section of the Company’s MD&A for
the fourth quarter and the fiscal year ended January 31, 2018. The company is not aware of any significant changes to the Company’s risk factors from those disclosed at that time. 

  

			
	

	 	 

 30

 Disclosure of Outstanding Shares 
  

 
  

As at August 28, 2018, the Company had the following issued and outstanding shares and stock options: 

 

	 	●	 	 62,952,472 multiple voting shares with no par value. 

 

	 	●	 	 34,146,569 subordinate voting shares with no par value. 

 

	 	●	 	 4,009,160 stock options to acquire subordinate voting shares. 

Additional Information 
  

 
  

Additional information relating to BRP Inc. is available on SEDAR at www.sedar.com. 

  

			
	

	 	 

 31EX-4.6

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 Exhibit 4.6 
  

 
 BRP INC. 

NOTICE OF 
 ANNUAL MEETING OF SHAREHOLDERS

 AND 
 MANAGEMENT PROXY CIRCULAR

  
 Annual meeting of shareholders will be held 

at 11:00 a.m. (Eastern time) 
 on May 31, 2018 at BRP’s assembly
plant in Valcourt 

Table of Contents

 Letter from the Chairman of the Board of Directors and 

the President and Chief Executive Officer 

April 20, 2018 
 Dear Shareholders: 

We achieved this year an all-time record in terms of revenues for the 5th consecutive year, led by an excellent retail momentum around the world and fueled by a strong product line-up and brands that keep gaining traction. It is our
ability to challenge traditional thinking and push new technologies that distinguishes BRP from our competition, and with our ingenuity, we constantly redefine the industries in which we operate. We have proven it many times over the years and we
plan to continue at that pace. 
 As shareholders of our Company, you are cordially invited to attend the annual meeting of shareholders of BRP Inc.
on May 31, 2018 at 11 a.m. EDT, at our newly renovated assembly plant, 565 rue de la Montagne, Valcourt, Québec, J0E 2L0. 
 The enclosed
notice of the annual meeting of shareholders and management proxy circular provide information on all matters to be acted upon by the shareholders, including information on directors nominated for election, the appointment of the Company’s
auditors and certain proposed amendments to the Company’s stock option plan. The management proxy circular also provides information on our corporate governance system and compensation of our senior management. 

For more information, please contact Valérie Bridger, Corporate Communications Advisor, by email at valerie.bridger@brp.com. 

Your vote and participation are very important to us. As holders of our shares, please take the time to review the management proxy circular and
accompanying materials and provide your vote on the business items of the meeting. If you are unable to attend the meeting in person, we encourage you to vote your shares via the internet or by phone. You can also vote your shares by signing, dating
and returning the enclosed proxy card. 
 On behalf of the Board of Directors, we thank you for your support. 

 

					
	 Sincerely,
	  		  	
			
	

	  	

	  	
			
	 Laurent Beaudoin
	  	 José Boisjoli
	  	
			
	 Chairman of the Board of Directors
	  	 President and Chief Executive Officer
	  	

Table of Contents

 

 
 BRP INC. 

NOTICE OF ANNUAL MEETING OF SHAREHOLDERS 

NOTICE IS HEREBY GIVEN that the annual meeting (the “Meeting”) of the holders of subordinate voting shares (the
“Subordinate Voting Shares”) and multiple voting shares (the “Multiple Voting Shares” and, together with the Subordinate Voting Shares, the “Shares”) of BRP Inc. (the “Company”) will be held at 11:00 a.m.
(Eastern time) on May 31, 2018 at BRP’s Valcourt newly renovated assembly plant, 565 rue de la Montagne, Valcourt, Québec, J0E 2L0, to consider and take action on the following matters: 

 

	 	(1)	 to receive the consolidated financial statements of the Company for the fiscal year ended January 31, 2018,
together with the notes thereto and the independent auditor’s report thereon; 

  

	 	(2)	 to elect the directors of the Company who will serve until the next annual meeting of shareholders or until their
successors are elected or appointed; 

  

	 	(3)	 to appoint the auditor of the Company; 

 

	 	(4)	 to approve an ordinary resolution, a copy of which is reproduced as Schedule “B” of the accompanying
management proxy circular of the Company dated April 20, 2018, approving amendments to the Company’s stock option plan, as more fully described in the accompanying management proxy circular; and 

 

	 	(5)	 to transact such other business as may properly be brought before the Meeting or any postponement or adjournment
thereof. 

 As a shareholder of the Company, it is very important that you read this material carefully and then
vote your Shares, either by proxy or in person at the Meeting. 
 The accompanying management proxy circular of the Company dated
April 20, 2018 provides additional information relating to the matters to be dealt with at the Meeting. Also enclosed is a form of proxy for the Meeting. 

The consolidated financial statements of the Company for the fiscal year ended January 31, 2018, together with the notes thereto,
the independent auditor’s report thereon and the related management’s discussion and analysis are available on SEDAR at www.sedar.com. 

The Company’s board of directors has fixed the close of business on April 11, 2018 as the record date for determining
shareholders entitled to receive notice of, and to vote at, the Meeting, or any postponement or adjournment thereof. No person who becomes a shareholder of record after that time will be entitled to vote at the Meeting or any postponement or
adjournment thereof. 
 A shareholder who is unable to be present at the Meeting and who wishes to appoint some other person (who
need not be a shareholder) to represent him or her at the Meeting may do so by inserting such person’s name in the blank space provided in the enclosed form of proxy or by completing another proper form of proxy, and, in either case, by
returning the completed form of proxy in the pre-addressed return envelope provided for that purpose to Computershare Investor Services Inc. no later than 4:00 p.m. (Eastern time) on May 29, 2018, or if
the Meeting is postponed 

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or adjourned, by no later than 48 hours prior to the time of such postponed or adjourned meeting (excluding Saturdays, Sundays and holidays). Shareholders who have voted by proxy may still attend
the Meeting. 
 Shareholders are invited to attend the Meeting as there will be an opportunity to ask questions and meet with
management of the Company. At the Meeting, the Company will also report on its business results for the fiscal year ended January 31, 2018. 

Dated at Valcourt, Québec, this 20th day of April, 2018. 

By order of the board of directors, 
  

 
 Martin Langelier 

Senior Vice-President, General Counsel and Public Affairs 

Table of Contents

 BRP INC. 

MANAGEMENT PROXY CIRCULAR 

TABLE OF CONTENTS 
  

					
	 	  	Page	 
		
	 GENERAL INFORMATION
	  	 	6	 
	 Forward-Looking Statements
	  	 	6	 
	 Voting Information
	  	 	6	 
	 Voting Shares Outstanding and Principal Shareholders
	  	 	12	 
		
	 BUSINESS OF THE MEETING
	  	 	13	 
	 Election of Directors
	  	 	13	 
	 Appointment of Independent Auditor
	  	 	27	 
	 Amendments to the Stock Option Plan
	  	 	28	 
		
	 COMPENSATION OF DIRECTORS
	  	 	31	 
		
	 EXECUTIVE COMPENSATION — DISCUSSION AND ANALYSIS
	  	 	33	 
	 Executive Compensation Philosophy and Objectives
	  	 	33	 
	 Role and Accountabilities of the Human Resources, Nomination and Governance Committee

	  	 	34	 
	 Compensation Consulting Services
	  	 	35	 
	 Market Positioning and Benchmarking
	  	 	35	 
	 Compensation Philosophy and Elements of Compensation
	  	 	37	 
	 Share Ownership Guidelines
	  	 	43	 
	 Hedging / Anti-Hedging Policy
	  	 	44	 
	 Clawback Policy
	  	 	44	 
	 Compensation Risk Management
	  	 	45	 
	 Performance Results
	  	 	45	 
	 Summary Compensation Table
	  	 	47	 
	 Incentive Plan Awards
	  	 	48	 
	 Stock Options Exercises in Fiscal 2018
	  	 	49	 
	 Securities Authorized for Issuance under Equity Compensation Plans
	  	 	50	 
	 Stock Option Plan
	  	 	50	 
	 Legacy LTIP
	  	 	54	 
	 Pension Plan Benefits
	  	 	54	 
	 Termination and Change of Control Benefits
	  	 	57	 
		
	 DISCLOSURE OF CORPORATE GOVERNANCE PRACTICES
	  	 	60	 
	 Board of Directors
	  	 	60	 
	 Position Descriptions
	  	 	61	 
	 Board of Directors Committees
	  	 	62	 
	 Orientation and Continuing Education
	  	 	64	 
	 Code of Ethics
	  	 	65	 
	 Diversity
	  	 	65	 
	 Nomination Rights Agreement
	  	 	66	 
	 Majority Voting Policy
	  	 	67	 
	 Advance Notice Requirements for Director Nominations
	  	 	67	 
	 Indemnification and Insurance
	  	 	68	 
		
	 ADDITIONAL INFORMATION
	  	 	69	 
	 Indebtedness of Directors and Executive Officers
	  	 	69	 
	 Interest of Certain Persons and Companies in Matters to be Acted Upon
	  	 	69	 
	 Interest of Informed Persons in Material Transactions
	  	 	69	 
	 Available Information
	  	 	70	 
	 Shareholder Proposals for Next Annual Meeting of Shareholders
	  	 	70	 
	 Approval by Directors
	  	 	70	 
		
	 SCHEDULE A 
	  	 	A-1	 
		
	 SCHEDULE B 
	  	 	B-1	 

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GENERAL INFORMATION
  

 This management proxy circular (the “Circular”) is furnished in connection with the
solicitation by management of BRP Inc. (the “Company”) of proxies for use at the annual meeting of shareholders of the Company (the “Meeting”) to be held on May 31, 2018 at 11:00 a.m. (Eastern time) at BRP’s
newly renovated assembly plant, 565 rue de la Montagne, Valcourt, Québec, J0E 2L0, or any postponements or adjournments thereof, for the purposes set forth in the accompanying notice of annual meeting of shareholders
(the “Notice of Meeting”). 
 Unless otherwise noted or the context otherwise requires, all information provided in
this Circular is given as at April 20, 2018 and references to the “Company” and “BRP” refer to BRP Inc., its direct and indirect subsidiaries, predecessors and other entities controlled by them. Unless otherwise indicated,
all references to “$” or “dollars” in this Circular refer to Canadian dollars. 
 No person has been authorized to
give any information or to make any representation in connection with any other matters to be considered at the Meeting other than those contained in this Circular and, if given or made, any such information or representation must not be relied upon
as having been authorized. 
 Forward-Looking Statements 

Certain statements in this Circular constitute forward-looking statements. The words “scheduled”, “may”,
“will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”,
“estimates”, “predicts”, “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 based on estimates and assumptions made by the Company in light of its experience and perception of
historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will
prove to be correct or that the Company’s business guidance, objectives, plans and strategic priorities will be achieved. 
 Many
factors could cause the Company’s actual results or affairs to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of
the Company’s annual information form dated March 20, 2018, in respect of the fiscal year ended January 31, 2018 (“Fiscal 2018”), which are incorporated by reference in this cautionary statement. Although these
factors are not intended to represent a complete list of the factors that could affect the Company, they should be considered carefully. The forward-looking statements contained in this Circular are made as of the date of this Circular, and the
Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities regulations. The
forward-looking statements contained in this Circular are expressly qualified by this cautionary statement. 
 Voting Information

 The following questions and answers provide guidance on how to vote your subordinate voting shares
(the “Subordinate Voting Shares”) and/or multiple voting shares (the “Multiple Voting Shares” and, together with the Subordinate Voting Shares, the “Shares”) of the Company. 

  

					
	  

                        
	 	 

	 	  
  

                            
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Table of Contents

  
 Who is
soliciting my proxy? 
  

Management of the Company is soliciting your proxy. It is expected that the solicitation will be made primarily by mail but proxies may
also be solicited by telephone, over the Internet, in writing or in person, by directors, officers or employees of the Company and its subsidiaries who will receive no other compensation therefore other than their regular remuneration. The Company
may also reimburse brokers and other persons holding Shares in their name or in the name of nominees for the costs incurred in sending proxy materials to their principals in order to obtain their proxies. Such costs are expected to be nominal. 

 
  

Who can vote? 
  

Only persons registered as holders of Subordinate Voting Shares and/or Multiple Voting Shares on the books of the Company as of the
close of business on April 11, 2018 (the “Record Date”) are entitled to receive notice of, and to vote, at the Meeting or any postponement or adjournment thereof, and no person becoming a shareholder after the Record Date shall
be entitled to receive notice of, and to vote, at the Meeting or any postponement or adjournment thereof. The failure of any shareholder to receive notice of the Meeting does not deprive the shareholder of the right to vote at the Meeting. 

 
  

What will I be voting on? 
  

Holders of Shares will be voting: 
  

	 	●	 to elect the directors of the Company who will serve until the next annual meeting of shareholders or until their
successors are elected or appointed (see page 13); 

  

	 	●	 to appoint the auditor of the Company (see page 27); 

 

	 	●	 to approve an ordinary resolution, a copy of which is reproduced as Schedule “B” of this Circular, approving
amendments to the Stock Option Plan, as more fully described under “Business of the Meeting - Amendments to the Stock Option Plan”; and 

  

	 	●	 to transact such other business as may properly be brought before the Meeting or any postponement or adjournment
thereof. 

  
  

How will these matters be decided at the Meeting? 

 
 A simple majority of the votes
cast, in person or by proxy, by the holders of Subordinate Voting Shares and Multiple Voting Shares, voting together as a single class, will constitute approval of each of the matters specified in this Circular, including with respect to the
ordinary resolution approving amendments to the Stock Option Plan. 
 For details regarding the Company’s majority voting policy
with respect to the election of directors, see “Disclosure of Corporate Governance Practices - Majority Voting Policy”. 

 
  

What is the necessary quorum for the Meeting? 
  

A quorum of shareholders is present at a meeting of shareholders if the holders of not less than twenty-five percent (25%) of the shares
entitled to vote at the meeting are present in person or represented by proxy, and at least two persons entitled to vote at the meeting are actually present at the meeting. 

  

					
	  

                        
	 	 

	 	  
  

                            
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2018 Proxy Circular

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 How many
votes do I have? 
  

The Subordinate Voting Shares are “restricted securities” within the meaning of such term under applicable Canadian securities
laws in that they do not carry equal voting rights with the Multiple Voting Shares. Each Multiple Voting Share carries the right to six votes and each Subordinate Voting Share carries the right to one vote. In the aggregate, all of the voting
rights associated with the Subordinate Voting Shares represented, as at April 20, 2018, 8.9% of the voting rights attached to all of the issued and outstanding Shares. 

The Subordinate Voting Shares are not convertible into any other class of shares. Each outstanding Multiple Voting Share may at any
time, at the option of the holder, be converted into one Subordinate Voting Share. Upon the first date that any Multiple Voting Share shall be held other than by a Permitted Holder (as such term is defined in the Company’s articles), such
holder, without any further action, shall automatically be deemed to have exercised his, her or its rights to convert all of the Multiple Voting Shares held by such holder into fully paid and non-assessable
Subordinate Voting Shares, on a share for share basis. 
 In addition, all Multiple Voting Shares, regardless of the holder thereof,
will convert automatically into Subordinate Voting Shares at such time as Permitted Holders that hold Multiple Voting Shares no longer hold and own, collectively, directly or indirectly, more than 15% of the beneficial ownership interests in the
aggregate number of outstanding Multiple Voting Shares and Subordinate Voting Shares (it being understood that the number of Multiple Voting Shares shall be added to the number of Subordinate Voting Shares for the purposes of such calculation). 

Under applicable Canadian law, an offer to purchase Multiple Voting Shares would not necessarily require that an offer be made to
purchase Subordinate Voting Shares. In accordance with the rules of the Toronto Stock Exchange (the “TSX”) designed to ensure that, in the event of a take-over bid, the holders of Subordinate Voting Shares will be entitled to
participate on an equal footing with holders of Multiple Voting Shares, Beaudier Inc. (“Beaudier”), 4338618 Canada Inc. (“4338618” and, together with Beaudier, the “Beaudier Group”), Bain Capital
Luxembourg Investments S.à.r.l. (“Bain”) and Caisse de dépôt et placement du Québec (“CDPQ” and, together with Beaudier Group and Bain, the “Principal Shareholders”), as
the holders of all the outstanding Multiple Voting Shares as at May 29, 2013, entered into a coattail agreement dated May 29, 2013 with the Company and Computershare Trust Company of Canada (the “Coattail Agreement”). The
Coattail Agreement contains provisions customary for dual class, TSX listed companies designed to prevent transactions that otherwise would deprive the holders of Subordinate Voting Shares of rights under applicable provincial take-over bid
legislation to which they would have been entitled if the Multiple Voting Shares had been Subordinate Voting Shares. Additional information relating to the Coattail Agreement can be found in the Company’s annual information form available on
SEDAR at www.sedar.com. 
  
  

Who can I call with questions? 
  

If you have questions about the information contained in this Circular or require assistance in completing your form of proxy, please
contact Computershare Investor Services Inc. (“Computershare”), the Company’s transfer agent, toll-free at
1-800-564-6253, or by mail at: 

Computershare Investor Services Inc. 

100 University Avenue 

8th Floor 

Toronto, Ontario M5J 2Y1 

  

					
	  

                        
	 	 

	 	  
  

                            
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 How do I
vote? 
  
  

	 	●	 If you are eligible to vote and you are registered as a shareholder on the books of the Company as of the close of
business on the Record Date, you can vote your Shares in person at the Meeting or by proxy, as explained below. 

  

	 	●	 If your Shares are held in the name of a depositary or a nominee such as a trustee, financial institution or
securities broker, please see the instructions below under “How do I vote if I am a non-registered shareholder?” (see page 11). 

 
  

How do I vote if I am a registered shareholder? 

 
 1. Voting in person

 If you wish to vote in person, you may present yourself to a representative of Computershare at the registration table at
the Meeting. Your vote will be taken and counted at the Meeting. 
 2. Voting by proxy 

Whether or not you attend the Meeting, you may appoint someone else to vote for you as your proxyholder. Your vote will thus be
counted at the Meeting. You may use the enclosed form of proxy, or any other proper form of proxy, in order to appoint your proxyholder. The persons named in the enclosed form of proxy, namely Messrs. José Boisjoli and Martin Langelier, are
respectively President and Chief Executive Officer, and Senior Vice-President, General Counsel and Public Affairs, of the Company. You may also choose another person to act as your proxyholder, including someone who is not a holder of Shares of the
Company, by inserting another person’s name in the blank space provided in the enclosed form of proxy or by completing another proper form of proxy. 

Registered shareholders may vote by proxy as follows: by mail or fax, by telephone or over the Internet. 

Submitting a proxy by mail or fax or over the Internet are the only methods by which a registered shareholder may appoint a person other
than the members of the management of the Company named on the form of proxy as proxyholder. 
 Mail or Fax 

Registered shareholders electing to submit a proxy by mail or fax must complete, date and sign the form of proxy. It must then be
returned to the Company’s transfer agent, Computershare, either in the postage pre-paid return envelope provided or by fax at 1-866-249-7775 (for shareholders in Canada and in the United States) or at (416) 263-9524 (for shareholders outside Canada and the United States), no later
than 4:00 p.m. (Eastern time) on May 29, 2018. 
 Telephone 

Registered shareholders electing to submit a proxy by telephone must do so by using a touchtone telephone. The telephone number to call
for shareholders in Canada and in the United States is 1-866-732-VOTE (8683). For shareholders outside Canada and the United
States, the telephone number to call is 312-588-4290. Shareholders must follow the instructions, use the form of proxy received from the Company and provide the 15-digit control number located on the form of proxy. Instructions are then conveyed by use of the touchtone selections over the telephone. 

  

					
	  

                        
	 	 

	 	  
  

                            
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2018 Proxy Circular

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 Internet 

Registered shareholders electing to submit a proxy over the Internet must access the following website: www.investorvote.com. 

Registered shareholders must then follow the instructions and refer to the form of proxy received from the Company which contains a 15-digit control number located on the form of proxy. Voting instructions are then conveyed electronically by the shareholder over the Internet. 

Non-registered shareholders will be provided with voting instructions by their nominees. Please
see the instructions below under “How do I vote if I am a non-registered shareholder?” (see page 11). 
  

 
 How will my proxyholder vote? 

 
 On the form of proxy, you may
indicate either how you want your proxyholder to vote your Shares, or you can let your proxyholder decide for you. 
 If you have
specified on the form of proxy how you want your Shares to be voted on a particular matter (by marking FOR, AGAINST or WITHHOLD, as applicable), then your proxyholder must vote your Shares accordingly. 

If you have not specified on the form of proxy how you want your Shares to be voted on a particular matter, then your proxyholder can
vote your Shares as he or she sees fit. 
 Unless contrary instructions are provided, the voting rights attached to Multiple Voting
Shares and/or Subordinate Voting Shares represented by proxies received by the management of the Company will be voted: 

●
FOR the election of all the nominees proposed as directors; 
 ● FOR the appointment of Deloitte LLP as auditor of the Company; and 

●
FOR the ordinary resolution approving amendments to the Stock Option Plan. 
 What if there are
amendments or if other matters are brought before the Meeting? 
 The enclosed form of proxy gives the persons named in it
authority to use their discretion in voting on amendments or variations to matters identified in the Notice of Meeting. 
 As of the
date of this Circular, the management of the Company is not aware of any other matter to be presented at the Meeting. If, however, other matters properly come before the Meeting, the persons named in the enclosed form of proxy will vote on them in
accordance with their judgment, pursuant to the discretionary authority conferred upon them by the form of proxy with respect to such matters. 

What if I change my mind and want to revoke my proxy? 

You may revoke your proxy at any time before it is acted upon in any manner permitted by law, including by stating clearly, in writing,
that you wish to revoke your proxy and by delivering this written statement to Computershare, no later than the last business day before the day of the Meeting, or to the Chairman of the Meeting on the day of the Meeting or any postponement or
adjournment thereof. 
 Who counts the proxies? 

Proxies are counted by Computershare, the Company’s transfer agent. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Is my vote confidential? 

Computershare preserves the confidentiality of individual shareholder votes, except (i) where a shareholder clearly intends to
communicate his or her individual position to the management of the Company, and (ii) as necessary in order to comply with legal requirements. 
  

 
 How do I vote if I am a
non-registered shareholder? 
  

In many cases, Shares beneficially owned by a shareholder (a “non-registered
shareholder”) are registered in the name of a depositary or a nominee such as a trustee, financial institution or securities broker. For example, Shares listed in an account statement provided by the broker of a shareholder, are, in all
likelihood, not registered in the shareholder’s name. If you are a non-registered shareholder, you can vote your Shares in person at the Meeting or by giving your voting instructions, as explained below.

 1. Voting in person 

BRP and/or Computershare do not have a record of the names of the non-registered shareholders of
the Company. 
 If you are a non-registered shareholder and you attend the Meeting, BRP and/or
Computershare will have no knowledge of your shareholdings or your entitlement to vote, unless your nominee has appointed you as proxyholder. 

If you are a non-registered shareholder and wish to vote in person at the Meeting, you have to
insert your own name in the space provided on the form of proxy or voting instruction form sent to you by your nominee. By doing so, you are instructing your nominee to appoint you as proxyholder. 

It is important that you comply with the signature and return instructions provided by your nominee. It is not necessary to otherwise
complete the form of proxy or voting instruction form as you will be voting at the Meeting. 
 2. Giving voting instructions

 Applicable securities laws and regulations require nominees of non-registered
shareholders to seek the latter’s voting instructions in advance of the Meeting. Therefore, unless you have previously informed your nominee that you do not wish to receive material relating to shareholders’ meetings, you will have
received this Circular in a mailing from your nominee, together with a form of proxy or voting instruction form, as the case may be. 

The Company does not send proxy-related materials directly to non-registered shareholders and is
not relying on the notice-and-access provisions of securities laws for delivery to either registered or non-registered
shareholders. 
 BRP intends to pay for proximate intermediaries to send the proxy-related materials to objecting beneficial owners.

 Each nominee has its own signature and return instructions. It is important that you comply with these instructions if you want the
voting rights attached to your Shares to be exercised. 
 If you are a non-registered
shareholder who has submitted a proxy or voting instructions and you wish to change your voting instructions, you should contact your nominee to find out whether this is possible and what procedure to follow. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Voting Shares Outstanding and Principal Shareholders 

The Company’s authorized share capital consists of an unlimited number of Multiple Voting Shares and Subordinate Voting Shares and
an unlimited number of preferred shares issuable in series. As of April 20, 2018, there were 37,077,959 Subordinate Voting Shares and 62,952,472 Multiple Voting Shares issued and outstanding, and no preferred shares were issued and
outstanding. Under the Company’s articles, each Subordinate Voting Share carries the right to one vote and each Multiple Voting Shares carries the right to six votes. 

The following table discloses the names of the persons or companies who, to the knowledge of the Company, as of April 20, 2018
beneficially owned, or controlled or directed, directly or indirectly, more than 10% of any class or series of the voting securities of the Company: 
  

																															
	
Name                 
                                         
  
	  	Number of
  Multiple Voting  
Shares Owned	  	Percentage
of
  Outstanding  
Multiple
Voting
Shares	 	Number of
  Subordinate  
Voting
Shares
Owned	  	Percentage
of
  Outstanding  
Subordinate
Voting
Shares	 	Percentage
of
  Outstanding  
Shares	 	  Percentage of  
Total Voting
Power
							
	 Bain(1)
	  	25,288,578	  	40.2%	 	—	  	—	 	25.3%	 	36.6%
							
	 Beaudier Group
	  		  		 		  		 		 	
							
	 Beaudier(2)
	  	19,711,179	  	31.3%	 	—	  	—	 	19.7%	 	28.5%
							
	 4338618(3)
	  	13,139,887	  	20.9%	 	—	  	—	 	13.1%	 	19.0%
							
	 Fidelity(4)
	  	—	  	—	 	5,201,875	  	14.0%	 	5.2%	 	1.3%

  

	(1)	 Represents shares held by Bain, which is owned by Bain Capital International Investments, S.à r.l.
(“BC International Investments”), which in turn is owned by Bain Capital Integral Investors II, L.P. (“Integral” and, together with Bain and BC International Investments, the “Bain Capital Entities”). Bain Capital
Investors, LLC (“BCI”) is the general partner of Integral. The governance, investment strategy and decision-making process with respect to investments held by all of the Bain Capital Entities is directed by BCI’s Global Private Equity
Board (“GPEB”), which is comprised of the following individuals: Steven Barnes, Joshua Bekenstein, John Connaughton, David Gross-Loh, Stephen Pagliuca, Michel Plantevin, and Jonathan Zhu. By virtue
of the relationships described in this footnote, BCI may be deemed to exercise voting and dispositive power with respect to the shares held by the Bain Capital Entities. Each of the members of GPEB disclaims beneficial ownership of such shares to
the extent attributed to such member solely by virtue of serving on GPEB. The address of each of BCI and Integral is c/o Bain Capital Private Equity, LP, 200 Clarendon Street, Boston, MA 02116. The address of Bain and BC International
Investments is 4 rue Lou Hemmer, L-1748 Luxembourg-Findel, Grand Duchy of Luxembourg. 

  

	(2)	 Beaudier is a portfolio holding company of the Beaudoin family and is controlled by Mr. Laurent Beaudoin, Chair of
the Board of Directors, and his wife Mrs. Claire Bombardier Beaudoin, through holding companies which they control. 

  

	(3)	 4338618 is a portfolio holding company which is owned by Mrs. Janine Bombardier, Mrs. Huguette B.
Fontaine and Mr. J.R. André Bombardier, through respective holding companies which they control and, in the case of Mrs. Janine Bombardier, a trust to her benefit and the benefit of her issue. Mr. J.R. André Bombardier
is a director of the Company. 

  

	(4)	 Based upon an alternative monthly report dated October 10, 2017. Represents shares held by Fidelity
Management & Research Company, FMR Co., Inc., Fidelity Management Trust Company, FIAM LLC, Fidelity Institutional Asset Management Trust Company, Strategic Advisers, Inc., FIL Limited, Crosby Advisors LLC, Fidelity SelectCo, LLC and
Fidelity (Canada) Asset Management ULC (collectively, “Fidelity”). 

  

					
	  

                        
	 	 

	 	  
  

                            
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BUSINESS OF THE MEETING

 

 Shareholders will be asked to consider and vote on the following matters at the Meeting: 

 

	 	●	 the election of the directors of the Company who will serve until the next annual meeting of shareholders or until
their successors are elected or appointed; 

  

	 	●	 the appointment of the auditor of the Company; 

 

	 	●	 the approval of an ordinary resolution approving amendments to the Stock Option Plan, as more fully described in the
Circular; and 

  

	 	●	 such other business as may properly be brought before the Meeting or any adjournment thereof. 

The consolidated financial statements of the Company for Fiscal 2018, together with the notes thereto and the independent auditor’s
report thereon, will be submitted at the Meeting, but no vote thereon is required or expected. These consolidated financial statements, together with the related management’s discussion and analysis, are available on SEDAR at www.sedar.com.

 Election of Directors 

The Company’s articles provide that its board of directors (the “Board of Directors”) shall consist of not
less than three (3) and not more than fifteen (15) directors. The Company’s directors are elected annually at the annual meeting of shareholders, except that the Board of Directors can appoint directors in certain circumstances
between annual meetings. Each director is expected to hold office until the next annual meeting of shareholders or until his or her successor is elected or appointed. 

The Board of Directors is currently comprised of thirteen (13) directors and it is proposed that thirteen (13) directors be
elected at the Meeting. The persons identified in the section “Nominees for Election to the Board of Directors” will be nominated for election as directors at the Meeting. All such nominees are presently directors of the Company.
Shareholders may vote for each proposed director nominee individually. 
 Pursuant to the nomination rights agreement entered into on
May 29, 2013 between the Company and the Principal Shareholders (the “Nomination Rights Agreement”), each of Bain, Beaudier Group and CDPQ are now entitled to designate three, three and one member(s) of the Board of Directors,
respectively. The member(s) of the Board of Directors so designated are Joshua Bekenstein, Nicholas Nomicos and Joseph Robbins for Bain, Laurent Beaudoin, J.R. André Bombardier and Louis Laporte for the Beaudier Group, and Estelle
Métayer for CDPQ. See “Disclosure of Corporate Governance Practices – Nomination Rights Agreement”. 

Unless a proxy specifies that the Shares it represents should be withheld from voting in respect of the election of one or more
directors or voted in accordance with the specification in the proxy, the persons named in the enclosed form of proxy intend to vote FOR the election of each of the nominees listed in this Circular. 

Management of the Company does not expect that any of the nominees will be unable, or for any reason, will become unwilling, to stand
for election as director at the Meeting. However, if, for any reason, at or before the time of the Meeting, any of the nominees becomes unable to serve and unless otherwise specified, it is intended that the persons designated in the form of proxy
will vote in their discretion for a substitute nominee or nominees. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Description of Proposed Director Nominees 
  

											
	  
     LAURENT BEAUDOIN

 
	 	 Chairman of the Board of Directors

	  
 

    
  

Age: 79
  

Québec, Canada
  

Not independent(1) 

 
 Director since 2003

 
 2017 Voting Results

For: 97.54%

Withheld: 2.46%
	 	  
 Mr. Beaudoin is Chair of the Board of Directors
since December 2003. Mr. Beaudoin, who was the Chief Executive Officer and Chairman of Bombardier Inc. since 1966, handed over his responsibilities as Chief Executive Officer in June 2008, and remained Chairman of the Board of Directors of
Bombardier Inc. until he stepped down in February 2015. He is currently a director and was awarded the title of Chairman Emeritus of Bombardier Inc. Mr. Beaudoin announced that he will not be standing for
re-election as a director of Bombardier Inc. at its annual shareholder meeting to be held on May 3, 2018. Mr. Beaudoin joined Bombardier Inc. in 1963 as Comptroller. From 2002 to 2012, he has been a
member of the International Business Council of the World Economic Forum based in Geneva, Switzerland. Since October 2010, he has been President of FIRST Robotics Quebec. Mr. Beaudoin is also President of Beaudier Inc., a holder of Multiple
Voting Shares. Mr. Beaudoin holds honorary doctorates from various universities and he received many awards and honours as a business leader, including Canada’s Outstanding CEO of the Year by the Financial Post. He is a Chartered
Accountant and a Fellow of the Ordre des comptables agréés du Québec.

	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors(2)

	 	12/12	 	100%	 	Entity	 	Since
	 		 	  
 Total:
	 	100%	 	Bombardier Inc.(3) 	 	1975
	 	  
 Value of Total Compensation Received as Director(4) 
	 	
	 		 		 		 		 	
	 	Fiscal 2018:	 	     Nil	 		 		 	

  
  

																	
	  
 Securities Held as of January 31, 2018

 

									
	 	  	Market Value	  	 	  	 	  	 	  	Value of	  	 	  	Market	  	 
	 	  	of	  	 	  	Market Value	  	 	  	Vested	  	 	  	Value of	  	Total Market
	Subordinate	  	Subordinate	  	Multiple	  	of Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Voting	  	Voting	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Shares	  	Shares	  	Shares(5) 	  	Shares(6) 	  	Options	  	Options	  	Units	  	Units	  	Held(6) 
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	19,711,179	  	1,002,510,564	  	-	  	-	  	-	  	-	  	1,002,510,564

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Beaudoin is not considered independent as he is part of the management of Beaudier, a Principal Shareholder.

	 (2)
	  	 Mr. Beaudoin is the Chairman of the Board of Directors.

	 (3)
	  	 Mr. Beaudoin will not be standing for re-election as a director of Bombardier Inc. at
its annual shareholder meeting to be held on May 3, 2018.

	 (4)
	  	 No compensation is paid to directors who are not independent. See “Compensation of Directors”.

	 (5)
	  	 These Multiple Voting Shares are held by Beaudier, a portfolio holding company of the Beaudoin family controlled by Mr. Laurent
Beaudoin and his wife Mrs. Claire Bombardier Beaudoin, through holding companies which they control. For details regarding Beaudier’s ownership of voting securities of the Company, see “General Information – Voting Shares
Outstanding and Principal Shareholders”.

	 (6)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

  

					
	  

                        
	 	 

	 	  
  

                            
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      JOSHUA BEKENSTEIN

 
	 	 Director

	  
 

  
 Age: 59

 
 Massachusetts, U.S.A.

 
 Not independent(1) 
  

Director since 2003
  

2017 Voting Results

For: 97.15%

Withheld: 2.85%
	 	  
 Mr. Bekenstein is a Managing Director at Bain
Capital. Prior to joining Bain Capital in 1984, Mr. Bekenstein spent several years at Bain & Company, Inc., where he was involved with companies in a variety of industries. Mr. Bekenstein is a member of the Board of Directors, the
Chair of the Human Resources and Compensation Committee and a member of the Nominating and Governance Committee of Dollarama Inc. He also serves as a director of several other corporations, including: Bright Horizons Family Solutions Inc. for which
he is a member of the Compensation Committee, and The Michaels Companies, Inc. Mr. Bekenstein received a Bachelor of Arts from Yale University and a Master of Business Administration (MBA) from Harvard Business School.

	 	
	 	Board/Committee Membership	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	11/12	 		 	Entity	 	Since
	 	  
 Human Resources,
	 	  
 3/3
	 		 	  
 Bright Horizons Family Solutions Inc.(3) 
	 	  
 2013

	 	 Nomination and
 Governance

Committee(2)
	 	  
 Total:    93.3%
	 		 		 	
	 	Dollarama Inc.(3) 	 	2009
	 	  
 The Michaels Companies,
Inc.(3)
	 	  
 2014

	 	  
 Canada Goose Holdings Inc.(3)

	 	  
 2017

	 		 		 		 		 	
	 		 		 		 		 	
	 	Value of Total Compensation Received as Director(4) 	 	
						
		 	Fiscal 2018:	 	Nil	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31, 2018(5) 
  

									
	 	  	Market Value	  	 	  	Market	  	 	  	 	  	 	  	Market	  	 
	 	  	of	  	 	  	Value of	  	 	  	Value of	  	 	  	Value of	  	Total Market
	Subordinate	  	Subordinate	  	Multiple	  	Multiple	  	 	  	Vested In-	  	Deferred	  	Deferred	  	Value of
	Voting	  	Voting	  	Voting	  	Voting	  	 	  	the-Money	  	Share	  	Share	  	Securities
	Shares	  	Shares	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units	  	Held
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	-	  	-	  	-	  	-	  	-	  	-	  	-

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Bekenstein is not considered independent because of his relationship with BCI. For details regarding BCI, see “General
Information – Voting Shares Outstanding and Principal Shareholders”.

	 (2)
	  	 Mr. Bekenstein is the Chairman of the Human Resources, Nomination and Governance Committee.

	 (3)
	  	 Bright Horizons Family Solutions Inc. is a public company since January 2013 but Mr. Bekenstein has been on the board of
directors since 1986. Dollarama Inc. is a public company since October 2009 but Mr. Bekenstein has been on the board of directors since 2004. Michaels Companies, Inc. is a public company since June 2014 but Mr. Bekenstein has been on the
board of directors since 2006. Canada Goose Holdings Inc. is a public company since 2017 but Mr. Bekenstein has been on the board of directors since 2013.

	 (4)
	  	 No compensation is paid to directors who are not independent. See “Compensation of Directors”.

	 (5)
	  	 Mr. Bekenstein does not personally own any voting securities of the Company. Mr. Bekenstein is a Managing Director of BCI
and a member of GPEB and as a result may be deemed to share beneficial ownership of the shares held by Bain. For details regarding BCI and Bain’s ownership of voting securities of the Company, see “General Information – Voting Shares
Outstanding and Principal Shareholders”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     JOSÉ BOISJOLI
    
  
	 	 Director, President and Chief Executive Officer

	  
 

        
 Age: 60

 
 Québec, Canada

 
 Not independent(1) 
  

Director since 2011
  

2017 Voting Results

For: 97.71%

Withheld: 2.29%
  
	 	  
 Mr. Boisjoli is President and Chief Executive
Officer of BRP since December 2003, when BRP became a standalone company. In October 1998, Mr. Boisjoli was named President of the Snowmobile and Watercraft division, the largest division of Bombardier Recreational Products Inc. In April 2001,
he was given the added responsibility of managing the ATV division. Mr. Boisjoli joined Bombardier Recreational Products Inc. in 1989, after eight years in the pharmaceutical and road safety equipment industries. Mr. Boisjoli serves on the
board of directors of McCain Foods Group Inc. since January 2018. Mr. Boisjoli received a Bachelor of Engineering from the Université de Sherbrooke. In April 2005, Mr. Boisjoli received the prestigious title of
Executive of the Year by Powersports Magazine, the most important powersports magazine in the United States. Mr. Boisjoli was also named CEO of the year 2017 by the Canadian business newspaper Les Affaires.

	 		 		 		 		 	
	 		 		 		 		 	
	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	12/12	 		 	Entity	 	Since
	 	  
 Investment and

Risk Committee
	 	 7/7
	 		 	 N/A
	 	 N/A

	 		 	  
 Total:  100%
	 		 		 	
		 		 	
		 	  
 Value of Total Compensation Received as Director (2) 
  

						
		 	Fiscal 2018:	 	     Nil	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	Market	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	Value	  	 	  	 	  	 	  	Market	  	 
	 	  	 	  	 	  	of	  	 	  	Value of	  	 	  	Value of	  	 
	Subordinate	  	Market Value of	  	Multiple	  	Multiple	  	 	  	Vested In-	  	Deferred	  	Deferred	  	Total Market
	Voting	  	Subordinate	  	Voting	  	Voting	  	 	  	the-Money	  	Share	  	Share	  	Value of
	Shares	  	Voting Shares(3)	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units	  	Securities Held(3)
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)(3) 	  	(#)	  	($)	  	($)
	 1,012,350
	  	51,488,121	  	-	  	-	  	1,231,200	  	15,642,888	  	-	  	-	  	67,131,009

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Boisjoli is not independent as he is President and Chief Executive Officer of the Company.

	 (2)
	  	 No compensation is paid to directors who are not independent. See “Compensation of Directors”.

	 (3)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

  

					
	  

                        
	 	 

	 	  
  

                            
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    J.R. ANDRÉ BOMBARDIER

 
	 	 Director

	  
 

    
  

Age: 75
  

Québec, Canada
  

Not independent(1) 

 
 Director since 2003

 
 2017 Voting Results

For: 97.53%

Withheld: 2.47%
	 	  
 Mr. Bombardier is the Vice Chairman of
Bombardier Inc., a position he has held since 1978. He joined Bombardier Inc. in 1969 as Vice-President, Industrial Division, and then successively held the positions of Vice-President, Research and Development,
Ski-Doo Division; Assistant to the President in charge of new products, Vice-President of Marketing, Marine Products Division, and President of the Roski Ltd. subsidiary, before taking the position he now
holds. Mr. Bombardier is also President of 4338618, a holder of Multiple Voting Share. Mr. Bombardier holds a Bachelor of Arts from the Séminaire de Sherbrooke as well as a Bachelor of Commerce with a major in Finance from
the Université de Sherbrooke. He is also a graduate of the Harvard International Senior Managers Program. He is the brother-in-law of Chairman
Laurent Beaudoin.

	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors

	 	12/12	 		 	Entity	 	Since
	 		 	  
 Total:  100%
	 		 	Bombardier Inc.	 	1975
	 		 		 		 		 	
	 	  
 Value of Total Compensation Received as Director(2) 

	 		 		 		 		 	
		 	Fiscal 2018:	 	     Nil	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	Market Value	  	 	  	 	  	 	  	Value of	  	 	  	Market	  	 
	 	  	of	  	 	  	Market Value	  	 	  	Vested	  	 	  	Value of	  	Total Market
	Subordinate	  	Subordinate	  	Multiple	  	of Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Voting	  	Voting	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Shares	  	Shares	  	Shares(3) 	  	Shares(4) 	  	Options	  	Options	  	Units	  	Units	  	Held(4) 
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	4,379,962	  	222,764,867	  	-	  	-	  	-	  	-	  	222,764,867

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Bombardier is not considered independent as he is part of the management of 4338618, a Principal Shareholder.

	 (2)
	  	 No compensation is paid to directors who are not independent. See “Compensation of Directors”.

	 (3)
	  	 These Multiple Voting Shares are held by 4338618, a portfolio holding company which is owned by Mrs. Janine Bombardier, Mrs.
Huguette B. Fontaine and Mr. J.R. André Bombardier, through respective holding companies which they control and, in the case of Mrs. Janine Bombardier, a trust to her benefit and the benefit of her issue. For details, “General
Information – Voting Shares Outstanding and Principal Shareholders”.

	 (4)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

  

					
	  

                        
	 	 

	 	  
  

                            
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     WILLIAM H. CARY

 
	 	 Director

	  
 

    
 Age: 59

 
 Florida, U.S.A.

 
 Independent

 
 Director since 2015

 
 2017 Voting Results

For: 99.98%

Withheld 0.02%
	 	  
 Mr. Cary served as the President and Chief
Operating Officer of GE Capital, the financial services unit of the General Electric Company, from November 2008 until January 2015 and as a Senior Vice-President of General Electric from November 2006 until January 2015. He served as the President
of GE Money (Global), a subsidiary of GE Capital, from February 2008 until his promotion to President and Chief Operating Officer of GE Capital in November 2008. Mr. Cary joined General Electric in 1986 as a member of the Financial Management
Program and served in a variety of financial and operating positions around the world. He also served as a member of General Electric’s Corporate Executive Council and was a member of the GE Capital board of directors. He is currently on the
board of directors of Rush Enterprises, Inc. and Ally Financial Inc.

	 	
	 	Board/Committee Membership	 	Attendance	 	 Other Public Board

Membership

	 		 		 		 	  
 Entity
	 	  
 Since

	 	Board of Directors	 	11/12	 		 	Rush Enterprises, Inc.	 	2015
	 	  
 Audit Committee
	 	  
 5/5

 
 Total:    94.1%
	 		 	  
 Ally Financial
	 	  
 2016

	 		 	
	 		 	
	 		 	
	 	  
 Value of Total Compensation Received as Director
(1) 
  

	 	  
 Fiscal
2018:                U.S.$160,000
	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	 	  	 	  	Value	  	 	  	 	  	 
	 	  	 	  	 	  	Market	  	 	  	of	  	 	  	Market	  	Total
	 	  	 	  	 	  	Value of	  	 	  	Vested	  	 	  	Value of	  	Market
	 	  	Market Value of	  	Multiple	  	Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Subordinate	  	Subordinate Voting	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Voting Shares	  	Shares	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units	  	Held
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)(2) 	  	($)(2) 
	 -
	  	-	  	-	  	-	  	-	  	-	  	10,206	  	519,077	  	519,077
		
	 	  	 Total Ownership as Multiple of Retainer as at January 31, 2018 (Target: 5x annual base cash retainer)(3): 7.1x

  

			
	  
 Notes

 

	 (1)
	  	 For a complete itemization of the compensation, see “Compensation of Directors”.

	 (2)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

	 (3)
	  	 Equity ownership was assessed as at January 31, 2018, based on the closing price of the Subordinate Voting Shares ($50.86) as
well as the daily rate of exchange posted by the Bank of Canada ($1.2293) on such date. For further details on the share ownership guidelines applicable to independent directors, see “Share Ownership Guidelines for Independent
Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     MICHAEL HANLEY

 
	 	 Director

	  
 

    
  

Age: 52
  

Québec, Canada
  

Independent
  

Director since 2012
  

2017 Voting Results

For: 99.89%

Withheld: 0.11%
	 	  
 Mr. Hanley is a corporate director with
many years of experience in senior management roles and corporate governance. He sits on the Board of Directors and chairs the Audit Committee of Industrial Alliance Insurance and Financial Services Inc., and of ShawCor Ltd.. He also sits on
the Board of Directors and the Audit Committee of Le Groupe Jean Coutu (PJC) Inc. Prior to that, Mr. Hanley held senior management positions for several years. He was Senior Vice-President, Operations and Strategic Initiatives at
National Bank of Canada. He also held a number of positions at Alcan Inc., including Executive Vice-President and Chief Financial Officer, and President and CEO of the Global Bauxite and Alumina business group. He was also Chief Financial
Officer of two Canadian public companies, namely Gaz Métro (now Énergir) and St-Laurent Paperboard Inc. Mr. Hanley is a chartered professional accountant and has been a member of the Ordre des comptables professionnels
agréés du Québec (CPA) since 1987.

	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	11/12	 		 	Entity	 	Since
	 		 		 		 	  
 Industrial Alliance,
	 	  
 2015

	 	 Audit Committee(1) 
	 	 5/5
	 		 	 Insurance and Financial
	 	
	 		 		 		 	 Services Inc.
	 	
	 	  
 Human Resources,
	 		 		 	  
 ShawCor Ltd.
	 	 2015

	 	 Nomination and
	 	 3/3
	 		 	 Le Groupe Jean Coutu
	 	 2016

	 	 Governance Committee
	 		 		 	 (PJC) Inc.
	 	
	 		 	  
 Total:  95%
	 		 		 	
	 		 		 		 		 	
	 	  
 Value of Total Compensation Received as Director(2) 
  

	 		 		 		 		 	
		 	Fiscal 2018:	 	U.S.$185,000	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	 	  	 	  	Value of	  	 	  	Market	  	 
	 	  	Market Value	  	 	  	Market Value	  	 	  	Vested	  	 	  	Value of	  	Total Market
	Subordinate	  	of Subordinate	  	Multiple	  	of Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Voting	  	Voting	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Shares	  	Shares(3) 	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units(3) 	  	Held(3) 
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 26,000
	  	1,322,360	  	-	  	-	  	-	  	-	  	18,662	  	949,149	  	2,271,509
		
	 	  	 Total Ownership as Multiple of Retainer as at January 31, 2018 (Target: 5x annual base cash retainer)(4): 21.8x

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Hanley is the Chairman of the Audit Committee.

	 (2)
	  	 For a complete itemization of the compensation, see “Compensation of Directors”.

	 (3)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

	 (4)
	  	 Equity ownership was assessed as at January 31, 2018, based on the closing price of the Subordinate Voting Shares ($50.86) as
well as the daily rate of exchange posted by the Bank of Canada ($1.2293) on such date. For further details on the share ownership guidelines applicable to independent directors, see “Share Ownership Guidelines for Independent
Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     LOUIS LAPORTE

 
	 	 Director

	  
 

    
 Age: 57

 
 Québec, Canada

 
 Not independent(1) 
  

Director since 2013
  

2017 Voting Results

For: 97.51%

Withheld: 2.49%
	 	  
 Mr. Laporte has been the Executive Vice-President of
Beaudier Inc., a private holding company and a holder of Multiple Voting Share, since 2004. Mr. Laporte managed for Beaudier Group the acquisition of the recreational products business of Bombardier Inc. in 2003. Prior to 2003, Mr. Laporte was the
owner and operator of a number of privately held companies, such as Dudley Inc., one of Canada’s leading lock manufacturers and distributors, and AMT Marine Inc., a manufacturer, subcontractor and supplier of Sea-Doo jet boats, where he
contributed to the production and participated in the initial design and engineering of the Sea-Doo jet boat for BRP. Mr. Laporte is and has been a director of several privately-owned companies. Mr. Laporte holds a Bachelor of Accounting
Sciences from the Université du Québec à Montréal (UQAM) and a Bachelor of Commerce from McGill University. Mr. Laporte is a Chartered Accountant.

	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	12/12	 		 	Entity	 	Since
	 	  
 Human Resources,
	 	 3/3
	 		 		 	
	 	 Nomination and
	 		 	 N/A
	 	 N/A

	 	 Governance
 Committee
	 		 		 	
	 	Investment and Risk	 	7/7	 		 		 	
	 	Committee(2) 	 		 		 	
	 		 	  
 Total:  100%
	 		 		 	
	 	  
 Value of Total Compensation Received as Director (3) 
  

	 		 		 		 		 	
	 	Fiscal 2018:	 	Nil	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31, 2018(4) 
  

									
	 	  	 	  	 	  	 	  	 	  	Value of	  	 	  	Market	  	 
	 	  	 	  	 	  	Market Value	  	 	  	Vested	  	 	  	Value of	  	Total Market
	Subordinate	  	Market Value	  	Multiple	  	of Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Voting	  	of Subordinate	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Shares	  	Voting Shares	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units	  	Held
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	-	  	-	  	-	  	-	  	-	  	-	  	-

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Laporte is not considered independent as he is part of the management of Beaudier, a Principal Shareholder.

	 (2)
	  	 Mr. Laporte is the Chairman of the Investment and Risk Committee.

	 (3)
	  	 No compensation is paid to directors who are not independent. See “Compensation of Directors”.

	 (4)
	  	 Mr. Louis Laporte does not personally own any voting securities of the Company. For details regarding Beaudier’s ownership
of voting securities of the Company, see “General Information – Voting Shares Outstanding and Principal Shareholders”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     ESTELLE MÉTAYER

 
	 	 Director

	  
 

        
  

Age: 48
  

Québec, Canada
  

Independent
  

Director since 2014
  

2017 Voting Results

For: 99.98%

Withheld: 0.02%
	 	  
 Ms. Métayer is the president of EM Strategy inc.
and an adjunct professor at McGill University. She currently serves on the Board of Directors and strategy committee of Audemars Piguet (Switzerland) and on the Board of Directors of Blockstream (Montreal/Silicon Valley). She sits also on the
advisory boards of Ricardo Media (Canada) and Réseau Sélection (Canada). She sits on the Board of Directors of the Metropolitan Montreal Chamber of Commerce where she sits on the executive committee and chairs the business development
committee. Prior to that, she served on the Board of Directors of Zag Bank (Calgary, Canada) between 2015 and 2017 and Ubisoft Entertainment SA between 2012 and 2016 where she chaired the compensation committee. Prior thereto, Ms. Métayer
worked at the ING Bank (Netherlands), Bouygues group (France), and in Canada at McKinsey & Company, CAE inc, and Competia which she founded and sold in 2004. Ms. Métayer is a certified director of the Institut des Administrateurs
Français. She was trained in the Netherlands, where she obtained her MBA and Drs. from the University of Nijenrode. She also attended the High Performing Boards Program at Harvard Business School.

	 	
	 	Board/Committee Membership	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	12/12	 		 	Entity	 	Since
	 	  
 Audit Committee
	 	  
 5/5
	 		 	  
 N/A
	 	  
 N/A

	 		 	  
 Total:    100%
	 		 		 	
	 		 	
	 		 	
	 		 	
	 	Value of Total Compensation Received as Director (1) 	 	
	 	  
 Fiscal
2018:                U.S.$160,000
	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	Market Value	  	 	  	Market	  	 	  	Value of	  	 	  	Market	  	Total
	 	  	of	  	 	  	Value of	  	 	  	Vested	  	 	  	Value of	  	Market
	Subordinate	  	Subordinate	  	Multiple	  	Multiple	  	 	  	In-the-	  	 	  	Deferred	  	Value of
	Voting	  	Voting	  	Voting	  	Voting	  	 	  	Money	  	Deferred	  	Share	  	Securities
	Shares	  	Shares	  	Shares	  	Shares	  	Options	  	Options	  	Share Units	  	Units(2) 	  	Held(2) 
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	-	  	-	  	-	  	-	  	15,135	  	769,766	  	769,766
		
	 	  	 Total Ownership as Multiple of Retainer as at January 31, 2018 (Target: 5x annual base cash retainer)(3): 10.5x

  

			
	  
 Notes

 

	 (1)
	  	 For a complete itemization of the compensation, see “Compensation of Directors”.

	 (2)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

	 (3)
	  	 Equity ownership was assessed as at January 31, 2018, based on the closing price of the Subordinate Voting Shares ($50.86) as
well as the daily rate of exchange posted by the Bank of Canada ($1.2293) on such date. For further details on the share ownership guidelines applicable to independent directors, see “Share Ownership Guidelines for Independent
Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     NICHOLAS NOMICOS

 
	 	 Director

	  
 

    
  

Age: 55
  

Massachusetts, U.S.A.
  

Not independent(1) 

 
 Director since 2003

 
 2017 Voting Results

For: 97.53%

Withheld: 2.47%
	 	  
 Mr. Nomicos retired from Bain Capital where he
worked from 1999 to 2016 as an Operating Partner focused on investments in the manufacturing and consumer product sectors and as a Managing Director of Bain Capital Credit, LP, the credit arm of Bain Capital. Previously, Mr. Nomicos was a senior
corporate development and manufacturing executive at Oak Industries Inc., and he spent several years at Bain & Company, Inc. where he was an engagement manager. Mr. Nomicos serves as director and chairs the Human Resources and Compensation
Committee of Dollarama Inc. He received a Master of Business Administration (MBA) from Harvard Business School and a Bachelor of Science in Engineering from Princeton University.

	 	
	 	Board/Committee Membership	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	12/12	 		 	Entity	 	Since
	 	  
 Investment and Risk

Committee
	 	  
 6/7
	 		 	  
 Dollarama Inc.(2)

	 	  
 2009

	 		 	  
 Total:  94.7%
	 		 		 	
	 	Value of Total Compensation Received as Director(3) 	 	
						
		 	Fiscal 2018:	 	Nil	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	 	  	 	  	Value	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	of	  	 	  	Market	  	Total
	 	  	 	  	 	  	Market Value	  	 	  	Vested	  	 	  	Value of	  	Market
	Subordinate	  	Market Value	  	Multiple	  	of Multiple	  	 	  	In-the-	  	 	  	Deferred	  	Value of
	Voting	  	of Subordinate	  	Voting	  	Voting	  	 	  	Money	  	Deferred	  	Share	  	Securities
	Shares	  	Voting Shares	  	Shares	  	Shares	  	Options	  	Options	  	Share Units	  	Units	  	Held
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	-	  	-	  	-	  	-	  	-	  	-	  	-

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Nomicos is not considered independent by virtue of having received consulting fees during the course of Fiscal 2018 (see
the following footnote) and because of his prior relationship with BCI. Mr. Nomicos stepped down from his position at Bain Capital Credit LLC on December 31, 2016. For details regarding BCI, see “General Information – Voting
Shares Outstanding and Principal Shareholders”.

	 (2)
	  	 Dollarama Inc. is a public company since October 2009 but Mr. Nomicos has been on the board of directors since
2004.

	 (3)
	  	 No compensation is paid to directors who are not independent. However, Mr. Nomicos received U.S.$176,000 in consulting fees in
Fiscal 2018 for services rendered to the Company in connection with the review of strategic opportunities. See “Compensation of Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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    DANIEL J. O’NEILL

 
	 	 Director

	  
 

    
  

Age: 66
  

Québec, Canada
  

Independent
  

Director since 2004
  

2017 Voting Results

For: 99.92%

Withheld: 0.08%
	 	  
 Mr. O’Neill is a Corporate Director who was
previously Executive Chairman of Electronic Cigarettes International Group (ECIG) from 2014 to 2017. Prior to that, he was the President and Chief Executive Officer of WinSport Canada, a not-for-profit organization that owns and operates the Canada Olympic Park in Calgary (Alberta). In 2005, Mr. O’Neill served as Vice-Chairman, Synergies & Integration of Molson Coors
Brewing Company. He was President and Chief Executive Officer of Molson Inc. from 2000 to 2005, prior to its merger with Adolph Coors Company. Before that, he was Executive Vice-President of H.J. Heinz Company and President of Campbell Soup Company.
He also worked at S.C. Johnson, a consumer products company. He was a director of H.J. Heinz Company from 1998 to 1999. Mr. O’Neill holds a Bachelor of Arts from Carleton University and a Master of Business Administration (MBA) from
Queen’s University. He also attended the Program for Management Development at Harvard Business School.

	 		 		 		 		 	
	 		 		 		 		 	
	 		 		 		 		 	
	 		 		 		 		 	
	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	12/12	 		 	Entity	 	Since
	 	  
 Audit Committee
	 	  
 5/5
	 		 	  
 N/A
	 	  
 N/A

	 	  
 Human
	 		 		 		 	
	 	Resources,	 		 		 		 	
	 	Nomination and	 	3/3	 		 		 	
	 	Governance	 		 		 		 	
		 	Committee	 		 		 		 	
		 		 	Total:  100%	 		 		 	
		 		 		 		 		 	
		 	  
 Value of Total Compensation Received as Director(1) 
	 	
		 		 		 		 		 	
		 	Fiscal 2018:	 	U.S.$170,000	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	 	  	 	  	Value	  	 	  	 	  	 
	 	  	 	  	 	  	Market	  	 	  	of	  	 	  	Market	  	Total
	 	  	Market Value	  	 	  	Value of	  	 	  	Vested	  	 	  	Value of	  	Market
	Subordinate	  	of Subordinate	  	Multiple	  	Multiple	  	 	  	In-the-	  	 	  	Deferred	  	Value of
	Voting	  	Voting	  	Voting	  	Voting	  	 	  	Money	  	Deferred	  	Share	  	Securities
	Shares	  	Shares(2) 	  	Shares	  	Shares	  	Options	  	Options	  	Share Units	  	Units(2) 	  	Held(2) 
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 58,432
	  	2,971,852	  	-	  	-	  	-	  	-	  	18,662	  	949,149	  	3,921,001
		
	 	  	 Total Ownership as Multiple of Retainer as at January 31, 2018 (Target: 5x annual base cash retainer)(3): 45.6x

  

			
	  
 Notes

 

	 (1)
	  	 For a complete itemization of the compensation, see “Compensation of Directors”.

	 (2)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

	 (3)
	  	 Equity ownership was assessed as at January 31, 2018, based on the closing price of the Subordinate Voting Shares ($50.86) as
well as the daily rate of exchange posted by the Bank of Canada ($1.2293) on such date. For further details on the share ownership guidelines applicable to independent directors, see “Share Ownership Guidelines for Independent
Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     EDWARD PHILIP

 
	 	 Director

	  
 

    
  

Age: 53
  

Massachusetts, U.S.A.
  

Independent
  

Director since 2005
  

2017 Voting Results

For: 99.96%

Withheld: 0.04%
	 	  
 Edward Philip most
recently served as the Chief Operating Officer of Partners in Health (a non-profit health care organization) from January 2013 until March 2017. In addition, Mr. Philip was a Special Partner at Highland Consumer Fund
(consumer-oriented private equity fund), serving in this role from 2013 until 2017. He served as Managing General Partner at Highland Consumer Fund from 2006 to 2013. Prior thereto, Mr. Philip served as President and Chief
Executive Officer of Decision Matrix Group, Inc. (research and consulting firm) from May 2004 to November 2005. Prior thereto, he was Senior Vice-President of Terra Networks, S.A. (global Internet company) from October
2000 to January 2004. In 1995, Mr. Philip joined Lycos, Inc. (an Internet service provider and search company) as one of its founding members. During his time with Lycos, Inc., Mr. Philip held the positions of President, Chief Operating Officer and
Chief Financial Officer at different times. Prior to joining Lycos, Inc., Mr. Philip was the Vice-President of Finance for The Walt Disney Company, and prior thereto Mr. Philip spent a number of years in investment banking. Mr. Philip holds a
Master of Business Administration from Harvard Business School. He is a director of Hasbro Inc. and sits on its Compensation Committee as well as on its Nominating, Governance and Social Responsibility Committee. Mr. Philip also serves as a director
of United Continental Holdings, Inc. and sits on its Audit Committee, its Public Responsibility Committee, and its Nominating and Governance Committee.

 

	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	12/12	 		 	Entity	 	Since
	 	  
 Investment and Risk
	 	 6/7
	 		 	  
 Hasbro Inc.
	 	  
 2002

	 	Committee	 		 		 	
	 	  
 Human Resources,
	 	 3/3
	 		 	United Continental	 	 2016

	 	Nomination and	 		 	Holdings, Inc.	 	
	 	Governance	 		 		 	
	 	Committee	 		 		 	
	 		 	  
 Total:  95,4%
	 		 		 	
	 	  
 Value of Total Compensation Received as Director
(1) 

	 		 		 		 		 	
		 	Fiscal 2018:                U.S.$170,000	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	 	  	 	  	Value	  	 	  	 	  	 
	 	  	 	  	 	  	Market	  	 	  	of	  	 	  	Market	  	Total
	 	  	Market Value	  	 	  	Value of	  	 	  	Vested	  	 	  	Value of	  	Market
	Subordinate	  	of Subordinate	  	Multiple	  	Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Voting	  	Voting	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Shares	  	Shares(2) 	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units(2) 	  	Held(2) 
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 37,025
	  	1,883,092	  	-	  	-	  	-	  	-	  	18,662	  	949,149	  	2,832,241
		
	 	  	 Total Ownership as Multiple of Retainer as at January 31, 2018 (Target: 5x annual base cash retainer)(3): 33.0x

  

			
	  
 Notes

 

	 (1)
	  	 For a complete itemization of the compensation, see “Compensation of Directors”.

	 (2)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

	 (3)
	  	 Equity ownership was assessed as at January 31, 2018, based on the closing price of the Subordinate Voting Shares ($50.86) as
well as the daily rate of exchange posted by the Bank of Canada ($1.2293) on such date. For further details on the share ownership guidelines applicable to independent directors, see “Share Ownership Guidelines for Independent
Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     JOSEPH ROBBINS

 
	 	 Director

	  
 

    
 Age: 38

 
 Massachusetts, U.S.A.

 
 Not independent(1) 
  

Director since 2013
  

2017 Voting Results

For: 97.53%

Withheld: 2.47%
	 	  
 Mr. Robbins joined Bain Capital Private Equity in
2007. He is a Managing Director in the Industrial & Energy Vertical and a member of the North American Private Equity team. Mr. Robbins focuses on investments in the capital goods, industrial technology, industrial services, aerospace,
transportation, and energy sectors. He currently serves on the Board of Directors for Apex Tools, Inc., where he is the Chair of the Audit Committee. Prior to joining Bain Capital Private Equity, Mr. Robbins served in a variety of sales and
operational management roles at Sentient Jet, a venture-backed provider of private aviation services. He was also a consultant at Boston Consulting Group, where he spent substantial time in the industrial and pharmaceutical industries. Mr. Robbins
received an MBA from the Harvard Business School, where he was a Baker Scholar and Ford Scholar. He graduated magna cum laude with an AB in Social Studies from Harvard College.

	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	10/12	 		 	Entity	 	Since
	 		 	  
 Total:  83.3%
	 		 	Nil	 	
	 	  
 Value of Total Compensation Received as Director(2) 

	 		 		 		 		 	
	 	Fiscal 2018:	 	Nil	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	 	  	 	  	Value of	  	 	  	Market	  	 
	 	  	 	  	 	  	Market Value	  	 	  	Vested	  	 	  	Value of	  	Total Market
	Subordinate	  	Market Value	  	Multiple	  	of Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Voting	  	of Subordinate	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Shares	  	Voting Shares	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units	  	Held
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	-	  	-	  	-	  	-	  	-	  	-	  	-

  

			
	  
 Notes

 

	 (1)
	  	 Mr. Robbins is not considered independent because of his relationship with BCI. For details regarding BCI, see “General
Information – Voting Shares Outstanding and Principal Shareholders”.

	 (2)
	  	 No compensation is paid to directors who are not independent. See “Compensation of Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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     BARBARA SAMARDZICH

 
	 	 Director

	  
 

    
  

Age: 59
  

Michigan, U.S.A.
  

Independent(1) 

 
 Director since 2017

 
 2017 Voting Results

For: N/A

Withheld: N/A
  
	 	  
 Ms. Samardzich is a Corporate Director. Ms
Samardzich previously held various senior leadership positions across her 26-year career with Ford Motor Company. Before retiring in 2016, she was the Vice-President and Chief Operating Officer of Ford Europe
leading a team of over 30,000 employees. In previous years, she served as Vice-President, Product Development; Vice-President, Global Powertrain Engineering and held various roles in powertrain and vehicle engineering within Ford. She has also
worked in various engineering roles at Westinghouse Electric Corporation. Ms. Samardzich sits on the board of directors of several companies including Adient plc, SKF, and Velodyne LiDAR. Ms. Samardzich holds a Bachelor and Masters degree
in Mechanical Engineering as well as a Masters degree in Engineering Management. She has won many awards including 2016 Automotive News Europe “25 Leading Women in the European Auto Industry” and 2011 Automobilwoche “Top 50 Automotive
Women”.

	 		 		 		 		 	
	 	 Board/Committee

Membership
	 	Attendance	 	Other Public Board Membership
	 	  
 Board of Directors
	 	3/3	 		 	Entity	 	Since
	 	  
 Investment & Risk

Committee
	 	  
 1/1
	 		 	  
 Adient plc
	 	  
 2016

	 		 	  
 Total:  100%
	 		 	Aktiebolaget SKF	 	2017
	 		 		 		 		 	
	 	  
 Value of Total Compensation Received as Director(2) 

		 		 		 		 		 	
		 	Fiscal 2018:	 	U.S.$40,000	 		 		 	

  

																	
	  
 Securities Held or Controlled as of January 31,
2018
  

									
	 	  	 	  	 	  	 	  	 	  	Value of	  	 	  	Market	  	 
	 	  	 	  	 	  	Market Value	  	 	  	Vested	  	 	  	Value of	  	Total Market
	Subordinate	  	Market Value	  	Multiple	  	of Multiple	  	 	  	In-the-	  	Deferred	  	Deferred	  	Value of
	Voting	  	of Subordinate	  	Voting	  	Voting	  	 	  	Money	  	Share	  	Share	  	Securities
	Shares	  	Voting Shares	  	Shares	  	Shares	  	Options	  	Options	  	Units	  	Units(3) 	  	Held(3) 
	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	(#)	  	($)	  	($)
	 -
	  	-	  	-	  	-	  	-	  	-	  	602	  	30,618	  	30,618
		
	 	  	 Total Ownership as Multiple of Retainer as at January 31, 2018 (Target: 5x annual base cash retainer)(4): 1.7x(5) 

  

			
	  
 Notes

 

	 (1)
	  	 Ms. Samardzich was appointed as an independent director and a member of the Investment & Risk Committee of the Board
of Directors on December 1, 2017.

	 (2)
	  	 For a complete itemization of the compensation, see “Compensation of Directors”.

	 (3)
	  	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the last trading day
before the end of Fiscal 2018.

	 (4)
	  	 Equity ownership was assessed as at January 31, 2018, based on the closing price of the Subordinate Voting Shares ($50.86) as
well as the daily rate of exchange posted by the Bank of Canada ($1.2293) on such date. For further details on the share ownership guidelines applicable to independent directors, see “Share Ownership Guidelines for Independent
Directors”.

	 (5)
	  	 Ms. Samardizch’s joined the Board of Directors on December 1, 2017. Her transition period to meet the minimum share
ownership runs until November 30, 2022. See “Compensation of Directors - Share Ownership Guidelines for Independent Directors”.

  

					
	  

                        
	 	 

	 	  
  

                            
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 Cease Trade Orders 

To the knowledge of the Company and based upon information provided by the proposed director nominees, none of the Company’s
proposed director nominees is, as at the date of this Circular, or has been, within the 10 years prior to the date of this Circular, a director, chief executive officer or chief financial officer of any company (including the Company) that, while
such person was acting in that capacity (or after such person ceased to act in that capacity but resulting from an event that occurred while that person was acting in such capacity), was the subject of a cease trade order, an order similar to a
cease trade order, or an order that denied the company access to any exemption under securities legislation, in each case, for a period of more than 30 consecutive days. 

Bankruptcies 
 To the knowledge of the
Company and based upon information provided by the proposed director nominees, none of the Company’s proposed director nominees is, as at the date of this Circular, or has been, within the 10 years prior to the date of this Circular, a director
or executive officer of any company (including the Company), that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to
bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or comprise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets, except for (i) Daniel J. O’Neill who was from
2014 to 2017 the Executive Chairman of Electronic Cigarettes International Group (ECIG), which filed for bankruptcy in March 2017, and (ii) Joshua Bekenstein who is a director of Toys “R” Us, Inc., which filed for bankruptcy in
September 2017, and who was from 2010 to 2017 a director of The Gymboree Corporation, which filed for bankruptcy in June 2017. 
 To
the knowledge of the Company and based upon information provided by the proposed director nominees, none of the Company’s proposed director nominees has, within the 10 years prior to the date of this Circular, become bankrupt, made a proposal
under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or comprise with creditors, or had a receiver, receiver manager or trustee appointed to hold his or her assets. 

Securities Penalties or Sanctions 
 To the
knowledge of the Company and based upon information provided by the proposed director nominees, none of the Company’s proposed director nominees has (i) been subject to any penalties or sanctions imposed by a court relating to securities
legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority, or (ii) been subject to any other penalties or sanctions imposed by a court or regulatory body that would
likely be considered important to a reasonable securityholder in deciding whether to vote for a proposed nominee director. 
 Appointment
of Independent Auditor 
 At the Meeting, shareholders will be asked to appoint the firm of Deloitte LLP to hold office as the
Company’s auditor until the close of the next annual meeting of shareholders. 
 Deloitte LLP has served as auditor of the
Company since 2005 and has informed the Company that it is independent with respect to the Company within the meaning of the Code of Ethics of the Ordre des comptables professionnels agréés du Québec. 

Unless a proxy specifies that the Shares it represents should be withheld from voting in respect of the appointment of the auditor or
voted in accordance with the specification in the proxy, the persons named in the enclosed form of proxy intend to vote FOR the appointment of Deloitte LLP as auditor of the Company. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 For Fiscal 2018 and the fiscal year ended January 31, 2017 (“Fiscal
2017”), the Company was billed the following fees by its independent auditor, Deloitte LLP: 
  

									
	 	  	            Fiscal 2018 	  	            Fiscal 2017 
	 Audit Fees(1)
	  	 	$1,891,489	 	  	 	$1,665,584	 
	 Audit Related Fees(2)
	  	 	173,100	 	  	 	45,926	 
	 Tax Fees(3)
	  	 	156,749	 	  	 	243,474	 
	 All Other Fees(4)
	  	 	79,037	 	  	 	169,518	 
		  	  
	  
	  
	  	  
	  
	  

	 Total Fees Paid
	  	 	            2,300,375	 	  	 	            2,124,502	 
		  	  
	  
	  
	  	  
	  
	  

  

	(1)	 “Audit Fees” include fees necessary to perform the annual audit and reviews of the consolidated financial
statements. 

  

	(2)	 “Audit Related Fees” include fees for assurance and related services by the independent auditor that are
reasonably related to the performance of the audit or review of the Company’s financial statements other than those included in “Audit Fees”, such as consultation on accounting and reporting matters. 

 

	(3)	 “Tax Fees” include fees for all tax services other than those included in “Audit Fees” and
“Audit-Related Fees”. This category includes fees for tax compliance, tax advice and tax planning. 

  

	(4)	 “Other Fees” include fees for products and services provided by the independent auditor other than those
included above, including consulting services. 

 The audit committee of the Company (the “Audit
Committee”) is responsible for the pre-approval of all and any non-audit services to be provided to the Company or its subsidiary entities by the independent
auditor. At least annually, the Audit Committee shall review and confirm the independence of the independent auditor by obtaining statements from the independent auditor on any non-audit services. 

Additional details with respect to the Audit Committee and the above-mentioned fees can be found in the section entitled “Audit
Committee” of the Company’s annual information form, available on SEDAR at www.sedar.com. 
 Amendments to the Stock Option
Plan 
 In connection with its initial public offering (“IPO”) in May 2013, the Company established a new
long-term incentive plan (the “LTIP” or the “Stock Option Plan”) pursuant to which stock options may be granted to officers, employees and, in limited circumstances, consultants of the Company. The Stock
Option Plan is further described under “Stock Option Plan”. 
 The purpose of the Stock Option Plan is to align the
interests of the officers, employees and, in limited circumstances, consultants of the Company with those of shareholders towards an increase in the price of the Subordinate Voting Shares of the Company by providing eligible plan participants with
the opportunity to acquire an ownership interest in the Company. As a long-term incentive, the granting of stock options also serves to ensure the Company delivers market competitive compensation to plan participants and supports attracting and
retaining talented employees. 
 Currently, the Stock Option Plan provides that the maximum number of Subordinate Voting Shares that
can be issued to participants following the exercise of stock options granted under the Stock Option Plan and all other share compensation arrangements, other than the Legacy LTIP (as defined under “Compensation Philosophy and Elements of
Compensation – Long-Term Incentive Plans”), is 5,814,828 (the “Stock Option Plan Reserve”), which represented approximately 5% of the Company’s issued and outstanding Shares as of the closing of the Company’s IPO
on May 29, 2013. 
 During Fiscal 2018, a total of 1,106,900 stock options were granted under the Stock Option Plan to a total of
166 eligible participants. As of January 31, 2018, there were 3,334,525 issued and outstanding stock options under the Stock Option Plan, representing 3.29% of the issued and outstanding Shares. As of the same date, 2,002,053 Subordinate Voting
Shares remained available for future issuance under the Stock Option Plan, representing 1.98% of the issued and outstanding Shares. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 On March 20, 2018, an additional 50,000 stock options were granted under the Stock
Option Plan to one eligible participant. 
 As of April 20, 2018, there were 3,346,875 issued and outstanding stock options under
the Stock Option Plan, representing 3.35% of the issued and outstanding Shares. As of the same date, 1,900,625 stock options remained available for future issuance under the Stock Option Plan, representing 1.90% of the issued and outstanding
Shares. 
 On April 19, 2018, the Board of Directors approved, following the recommendations of the Human Resources, Nomination
and Governance Committee and subject to shareholder approval at the Meeting, an increase of 5,000,000 Subordinate Voting Shares in the Stock Option Plan Reserve as well as an amendment to the Stock Option Plan providing that the Stock Option
Plan Reserve will now only apply to grants made under the Stock Option Plan (collectively, the “Stock Option Plan Reserve Amendment”). 

The purpose of the Stock Option Plan Reserve Amendment is to ensure that a sufficient number of Subordinate Voting Shares remain
reserved for issuance under the Stock Option Plan to enable the Company to continue its current practice of granting options to eligible plan participants as a component of the Company’s long-term incentive program, which aims to align eligible
participants’ interests with shareholders by rewarding them for increases in the Company’s share price. 
 Shareholders are
being asked to approve an increase of 5,000,000 Subordinate Voting Shares in the Stock Option Plan Reserve. The following table sets forth the number of Subordinate Voting Shares which have been issued pursuant to the exercise of Options or are
subject to Options granted under the Stock Option Plan as well as Subordinate Voting Shares which are or would be available for future grants under the Stock Option Plan, both before and after the proposed Stock Option Plan Reserve Amendment, as of
April 20, 2018. 
  

							
	 	  	Subordinate Voting
Shares Issued
Pursuant to the
Exercise of Options or
Subject to Outstanding
Options	 	Subordinate Voting
Shares Available for
Future Option
Grants	 	  Stock Option Plan  
Reserve
	  
	  	  
	 	  

				
	 Currently Approved
	  	3,914,203	 	1,900,625	 	5,814,828
				
	 Proposed Increase
	  	N/A	 	5,000,000	 	5,000,000
				
	 Total
	  	3,914,203	 	6,900,625	 	10,814,828
				
	 Percentage of Outstanding Shares
	  	3.91%	 	6.90%	 	10.81%

 If the proposed Stock Option Plan Reserve Amendment is not approved, the Stock Option Plan would have
1,900,625 Subordinate Voting Shares reserved for future stock option grants and, once this remaining portion of the Stock Option Plan Reserve is used, the Company would no longer be permitted to grant options under the Stock Option Plan. This would
limit the Company’s ability to continue its current practice of granting stock options to eligible plan participants as a component of the Company’s long-term incentive program and would require the Company to provide an alternate form of
long-term incentive compensation. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 The Board of Directors also approved on April 19, 2018, following the recommendations
of the Human Resources, Nomination and Governance Committee and subject to shareholder approval at the Meeting, the following amendments to the Stock Option Plan: 
  

	 	●	 	 as a necessary consequence of the Stock Option Plan Reserve Amendment, the increase of (i) the maximum number of
Subordinate Voting Shares that can be issued to insiders of the Company within any one year period pursuant to the exercise of stock options under the Stock Option Plan and any other share compensation arrangement, and (ii) the maximum number
of Subordinate Voting Shares issuable to insiders at any time pursuant to the exercise of stock options under the Stock Option Plan and any other share compensation arrangement, in each case, from 5% of the Shares issued and outstanding from time to
time to 10% of the Shares issued and outstanding from time to time (the “Insider Participation Limit Amendment”); 

  

	 	●	 	 in order to align the amendment provisions of the Stock Option Plan with best market practices, the inclusion of any
amendment to the provisions of the Stock Option Plan governing the assignability of stock options as a matter requiring shareholder approval (the “Amending Provision Amendment”, and together with the Stock Option Plan Reserve
Amendment and the Insider Participation Limit Amendment, the “Stock Option Plan Amendments”); and 

  

	 	●	 	 amendments to the Stock Option Plan of a “housekeeping”, cosmetic or clerical nature. 

The Stock Option Plan Amendments have been conditionally approved by the TSX and must be approved by a majority of the votes cast at the
Meeting, in person or by proxy, by the holders of Subordinate Voting Shares and Multiple Voting Shares, voting together as a single class. Accordingly, at the Meeting, shareholders will be asked to consider and, if deemed appropriate, to approve, by
a simple majority of votes cast at the Meeting, in person or by proxy, by the holders of Subordinate Voting Shares and Multiple Voting Shares, voting together as a single class, the ordinary resolution attached as Schedule “B” of this
Circular. The housekeeping amendments have also been approved by the TSX, but are not subject to shareholder approval in accordance with the amendment provisions of the Stock Option Plan. 

The full text of the proposed amended and restated Stock Option Plan, which is subject to the approval of shareholders at the Meeting,
can be found on SEDAR at www.sedar.com. 
 Unless a proxy specifies that the Shares it represents should be voted against
the ordinary resolution set out as Schedule “B” or voted in accordance with the specification in the proxy, the persons named in the enclosed form of proxy intend to vote FOR the passing of the ordinary resolution set out as Schedule
“B” approving the Stock Option Plan Amendments. 

  

					
	  

                        
	 	 

	 	  
  

                            
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	 COMPENSATION OF DIRECTORS

 

 The director compensation program of the Company is designed to (i) attract and retain qualified
individuals who possess the relevant experience of board membership with other international successful Canadian and U.S. listed companies, and (ii) align the compensation of the directors with the interest of the Company’s shareholders
through security-based compensation. 
 The following table outlines the Fiscal 2018 compensation paid to the independent directors of
the Company. The directors of the Company who are not independent for the purposes of National Instrument 52-110 – Audit Committees, as amended from time to time
(“NI 52-110”), are not receiving compensation as directors of the Company. 
  

			
	 	  	U.S.$
	 Independent Board Member:
	  	
		
	 Cash Retainer
	  	50,000
		
	 Equity Retainer
	  	100,000
		  	  

		
	 Committee Chair Cash Retainer:
	  	
		
	 Audit Committee
	  	15,000
		
	 Human Resources, Nomination and Governance Committee
	  	—
		
	 Investment and Risk Committee
	  	—
		  	  

		
	 Committee Member Cash Retainer
	  	
		
	 Audit Committee
	  	10,000
		
	 Human Resources, Nomination and Governance Committee
	  	10,000
		
	 Investment and Risk Committee
	  	10,000
		  	  

		
	 Per-Meeting Fees
	  	—
		  	  

 BRP vehicles are made available to the directors in accordance with the policy applicable to
Vice-Presidents of the Company. 
 To encourage the alignment of the interests of the directors with those of the shareholders, a
Deferred Share Unit Plan (the “DSU Plan”) was implemented on May 29, 2013. The DSU Plan provides that the entirety of the equity retainer to be received by each director who is an independent director for purposes of NI 52-110 is to be paid in deferred share units (“DSUs”), and further provides that each such director may also elect to receive up to 100% of his or her cash retainer in the form of DSUs. The cash and
equity retainers are paid on a quarterly basis with the number of DSUs to be issued based on the volume weighted average trading price on the TSX for the five trading days prior to such issuance. The DSUs vest immediately and take the form of a
bookkeeping entry credited to the eligible director’s account for as long as he/she remains a director, only to be paid after the director ceases to act as director. If any dividends are paid on the Subordinate Voting Shares, outstanding DSUs
earn dividend equivalents in the form of additional DSUs at the same rate as dividends are paid on the Subordinate Voting Shares. The DSU Plan is not dilutive. 

The Company does not offer a meeting fee for Board of Directors members. The total retainer is deemed to be the full payment for the
role of director. 
 In Fiscal 2018, Mr. Nomicos received U.S.$176,000 in consulting fees for services rendered to the Company in
connection with the review of strategic opportunities. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Fees Earned by Independent Directors 

The following table shows the allocation of fees and the total fees earned by the independent directors of the Company during Fiscal
2018. As described above, the directors of the Company who are not independent are not receiving any compensation, including option-based or share-based awards, as directors of the Company. As President and Chief Executive Officer,
Mr. José Boisjoli’s compensation is disclosed under “Executive Compensation — Discussion and Analysis”. 
  

																							
	 	  	Fees Earned by Independent Directors	  	 	  	 
	 	  	Board Cash Retainer(1)	  	Board Equity
Retainer(2)	  	Committees Cash
Retainer	  	 	  	 	  	 
	 Directors
	  	Dollar
Value
  (U.S.$)  	  	Amount
Elected to
be
Received
in Cash
(U.S.$)	  	Amount
Elected
to be
Received in
DSUs	  	Equivalent
Number of
DSUs	  	Dollar
Value
(U.S.$)	  	Equivalent
Number of
DSUs	  	Chair of
Audit
Committee
(U.S.$)	  	Committee
Member
(U.S.$)	  	Total Fees
Earned
(U.S.$)	  	All Other
Compen-
sation
(U.S.$)	  	Total
(U.S.$)
	 William H. Cary
	  	50,000	  	50,000	  	-	  	-	  	100,000	  	3,213	  	-	  	10,000	  	160,000	  	-	  	160,000
												
	 Michael Hanley
	  	50,000	  	50,000	  	-	  	-	  	100,000	  	3,213	  	15,000	  	20,000	  	185,000	  	-	  	185,000
												
	 Carlos Mazzorin(3)
	  	25,000	  	25,000	  	-	  	-	  	50,000	  	1,844	  	-	  	5,000	  	80,000	  	-	  	80,000
												
	 Estelle Métayer
	  	50,000	  	50,000	  	-	  	-	  	100,000	  	3,213	  	-	  	10,000	  	160,000	  	-	  	160,000
												
	 Daniel O’Neill
	  	50,000	  	50,000	  	-	  	-	  	100,000	  	3,213	  	-	  	20,000	  	170,000	  	-	  	170,000
												
	 Edward Philip
	  	50,000	  	50,000	  	-	  	-	  	100,000	  	3,213	  	-	  	20,000	  	170,000	  	-	  	170,000
												
	 Barbara Samardzich(4)
	  	12,500	  	12,500	  	-	  	-	  	25,000	  	602	  	-	  	2,500	  	40,000	  	-	  	40,000

  

	 	(1)	 The cash retainers are paid quarterly. 

	 	(2)	 The DSUs are credited to independent board members as of the last day of each fiscal quarter of the Company. On the
last day of each fiscal quarter, U.S.$25,000 is converted in Canadian dollar, using the daily rate of exchange posted by the Bank of Canada as of such date, and such amount is divided by the volume weighted average trading price of the Subordinate
Voting Shares on the TSX for the five trading days preceding such date in order to determine the number of DSUs to be granted. 

	 	(3)	 Mr. Mazzorin retired from the Board of Directors on July 4, 2017. 

	 	(4)	 Ms. Samardzich was appointed to the Board of Directors on December 1, 2017. 

Share Ownership Guidelines for Independent Directors 

On March 17, 2016, the Board of Directors adopted share ownership guidelines for independent directors according to
which each independent director is expected to hold at least five times the value of his or her annual base cash compensation in Subordinate Voting Shares and/or DSUs, based on the greater of: (i) the current market price of the Subordinate
Voting Shares; and (ii) the closing price of the Subordinate Voting Shares on the date on which the Subordinate Voting Shares or DSUs, as applicable, were acquired. There is a five-year transition period for independent directors to comply from
the date of joining the Board of Directors or from the adoption of the guidelines, whichever is greater. As at April 20, 2018, all independent directors met the expected minimum share ownership, except for Ms. Samardzich, for whom the
transition period is running until November 30, 2022. 

  

					
	  

                        
	 	 

	 	  
  

                            
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	 EXECUTIVE COMPENSATION — DISCUSSION AND ANALYSIS

 

 The following discussion describes the significant elements of the Company’s executive compensation
program, with particular emphasis on the process for determining the compensation payable to the named executive officers (“Named Executive Officer” or “NEOs”), being (i) the Chief Executive Officer
(“CEO”), (ii) the Chief Financial Officer (“CFO”), (iii) each of the three other most highly compensated executive officers (or individuals acting in a similar capacity) of the Company, and (iv) each individual
who would have been a NEO but for the fact that such individual was neither an executive officer of the Company nor acting in a similar capacity at the end of Fiscal 2018. For Fiscal 2018, the Company’s NEOs were: 

 

	 	●	 	 José Boisjoli, President and CEO; 

 

	 	●	 	 Sébastien Martel, CFO; 

 

	 	●	 	 Sandy Scullion, Senior Vice-President and General Manager, Global Retail and Services; 

 

	 	●	 	 Denys Lapointe, Senior Vice-President, Design, Innovation and Corporate Image; and 

 

	 	●	 	 Karim Donnez, Senior Vice-President, Strategy, Business Development and Transformation. 

Executive Compensation Philosophy and Objectives 

The Company’s compensation program is designed to retain, motivate and reward the executive officers for their performance and
contribution to the Company’s long-term success. The Board of Directors seeks to compensate the executive officers by combining short-term cash and long-term equity incentives. It also seeks to reward the achievement of corporate and individual
performance objectives and to align executive officers’ incentives with shareholder value creation. 
 In order to support the
Company’s vision and mission, the executive officers must be fully engaged to innovate and deliver results that meet or exceed expectations from all the Company’s stakeholders, including its shareholders. The Company’s executive
officer compensation philosophy is to pay fair, reasonable and competitive compensation with an emphasis on pay-for-performance philosophy. The Company’s executive
officer compensation policy: 
  

	 	●	 	 supports and promotes successful execution of the business strategy; 

 

	 	●	 	 provides executives with competitive rewards and an appropriate pay mix based on a pay for performance philosophy;

  

	 	●	 	 is designed to attract and engage talented and results-oriented executives with experience in a global business
environment; 

  

	 	●	 	 drives desired performance and encourages discretionary effort; and 

 

	 	●	 	 promotes flexibility and agility in managing the business to succeed as a global organization and to adapt to local
requirements and culture. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Role and Accountabilities of the Human Resources, Nomination and Governance Committee

 The Human Resources, Nomination and Governance Committee is composed of Messrs. Bekenstein, Hanley, Laporte, O’Neill
and Philip. Mr. Bekenstein acts as chair of the HRNGC. All members of the HRNGC have a working familiarity with corporate governance, human resources and compensation matters. The relevant experience of each member of the HRNGC is described as
part of their respective biographies. See “Business of the Meeting—Election of Directors- Description of Proposed Director Nominees”. Messrs. Hanley, O’Neill and Philip are independent under the standards set forth under
Section 1.4 of NI 52-110 – Audit Committees. Messrs. Bekenstein and Laporte are not considered independent under such standards. See “Disclosure of Corporate Governance
Practices—Board of Directors - Independence and Tenure” for a discussion on the independence of the members of the Board of Directors. 

The HRNGC plays a critical role in the oversight and governance of the executive compensation policies and programs of the Company. The
Board of Directors has adopted a written charter describing the mandate of the HRNGC. Under its charter, the HRNGC assumes the following responsibilities on matters that are specific to executive compensation: 

 

	 	●	 	 establishes the Company’s general compensation philosophy in consultation with management and, if necessary,
external independent consultants; 

  

	 	●	 	 reviews the general compensation structures of the Company; 

 

	 	●	 	 reviews the components of overall compensation of senior executives consisting of base salary, short-term incentives,
long-term incentives, benefits, pension and perquisites; 

  

	 	●	 	 reviews the corporate goals and objectives for which the CEO is responsible and which are relevant to his compensation
and reviews the suggested level of and/or changes in the CEO’s overall compensation taking into consideration performance in light of those corporate goals and objectives and competitive compensation practices to ensure that such compensation
realistically reflects the CEO’s responsibilities and performance; 

  

	 	●	 	 reviews the recommendations of the CEO with respect to the suggested level of and/or changes in the overall compensation
of other senior executives, taking into consideration individual performance and competitive compensation practices; 

  

	 	●	 	 identifies any risk that may arise from the Company’s compensation policies or practices that could have a material
adverse effect on the Company or that could encourage an executive officer to take inappropriate or excessive risks; 

  

	 	●	 	 makes recommendations to the Board of Directors on any new incentive plan or on any material change to the
Company’s short-term and long-term incentive plans and to discharge any responsibilities imposed on the HRNGC under these plans; and 

  

	 	●	 	 reviews annually the extent to which designated senior executives are meeting the minimum share ownership requirements.

 Please refer to the section “Disclosure of Corporate Governance Practices – Board of
Directors Committees—Human Resources, Nomination and Governance Committee” for further information regarding the HRNGC. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Compensation Consulting Services 

Under its charter, the HRNGC has the authority to retain and does retain, from time to time, the services of executive compensation
consultants to provide independent advice on executive compensation and related governance issues. The HRNGC also has the authority to determine and pay the fees of such consultants. All compensation and
non-compensation services provided by independent advisors, consultant and experts to the Company must be pre-approved by the HRNGC. 

During Fiscal 2018, the HRNGC retained the services of Hugessen Consulting Inc. (“Hugessen Consulting”) and Eckler Ltd.
(“Eckler”) (respectively in June 2017 and in October 2017) to provide expertise and advice in connection with a comprehensive review of the compensation of all of the Company’s executives, including the NEOs. The compensation
review included the review of the group of comparable companies, the assessment of the Company’s positioning in terms of compensation levels and mix and the review of the Company’s compensation programs. Neither Hugessen Consulting nor
Eckler had provided services to the HRNGC before Fiscal 2018. Hugessen Consulting did not provide any other services to the Company. Eckler provided certain other compensation-related services to the management, including actuarial and investment
services in respect of the pension plans sponsored by the Company and covering Canadian executives and non-executive employees. 

The aggregate fees billed to the Company for Fiscal 2018 and Fiscal 2017 for executive
compensation-related services provided by Hugessen Consulting and Eckler are as set out below: 
  

									
	 	  	Fiscal 2018	 	  	Fiscal 2017	 
			
	 Executive Compensation-Related Fees
	  				  			
			
	 Hugessen Consulting
	  	 	$413,134	 	  			
			
	 Eckler
	  	 	$60,823	 	  			
			
	 All Other Fees (Eckler) (1)
	  	 	$171,177	 	  	 	$258,000	 
		  	  
	  
	 	  	  
	  
	 
			
	 Total Fees Paid
	  	 	                $645,134	 	  	 	                $258,000	 

  

	(1)	 Fees related to actuarial and investment services rendered by Eckler in respect of the pension plans sponsored by the
Company and covering Canadian executives and non-executives employees. 

Market Positioning and Benchmarking 

The HRNGC adopted a compensation policy that is specific to the executive officers of the Company and provides for a positioning of each
element of total compensation within well-defined groups of comparable companies. 
 As part of the compensation review conducted in
Fiscal 2018 by Hugessen Consulting, the group of comparable companies was reviewed and two peer groups were established: the Canadian Pay Peer Group and the U.S. Pay Peer Group. 

The Canadian Pay Peer Group is comprised of similar sized publicly-traded companies operating in related industries (recognizing the
absence of direct comparators in Canada) and having a significant proportion of revenues generated outside Canada and/or with business operations similar to BRP. Given that most of the current executive officers are Canadians working in Canada, this
group is used as a primary source of data for the assessment of the Company’s market positioning in terms of compensation levels and design. 

The U.S. Pay Peer Group is comprised of direct competitors as well as issuers operating in related industries and having similar size.
Combined with survey data, it is used as a source of data for assessing compensation levels of executive officers based in the United-States. In addition, the U.S. Pay 

  

					
	  

                        
	 	 

	 	  
  

                            
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Peer Group is used to understand U.S. competitive pay levels and provides important context regarding pay design trends for the Company’s closest competitors. 

The following table presents the companies included in both comparator groups used by the Company for purposes of benchmarking executive
compensation: 

 

			
	  

Canadian Pay Peer Group

 

	Company	  	 LTM
Revenues

(in millions) (1)

	 SNC-Lavallin Group Inc.
	  	$8,164
	 WSP Global Inc.
	  	$6,702
	 Finning International Inc.
	  	$5,807
	 TFI International Inc.
	  	$4,517
	 CCL Industries
	  	$4,462
	 Cascades Inc.
	  	$4,136
	 Martinrea International Inc.
	  	$3,878
	 Maple Leaf Foods Inc.
	  	$3,417
	 New Flyer Industries Inc.
	  	U.S.$2,320
	 CAE Inc.
	  	$2,752
	 Maxar Technologies Ltd. (formerly McDonald, Dettwiler and Associates Ltd.)
	  	$1,997
	  

BRP

 
	  	  

$4,369

 

	 25th percentile
	  	$3,085
	 Median
	  	$4,136
	 75th percentile
	  	$5,162

			
	  
 U.S.
Pay Peer Group
  

	Company	  	 LTM
Revenues

(in millions) (1)

	 Thor Industries Inc.
	  	U.S.$6,605
	 Harley Davidson, Inc.
	  	U.S.$5,653
	 Polaris Industries Inc.
	  	U.S.$5,000
	 Brunswick Corporation
	  	U.S.$4,688
	 The Toro Company
	  	U.S.$2,485
	 Arctic Cat Inc.2
	  	U.S.$633
		  	
		  	
	 	  	 
		  	
		  	
		  	
		  	
	  

BRP

 
	  	  

$4,369

 

	 25th percentile
	  	U.S.$3,036
	 Median
	  	U.S.$4,844
	75th percentile	  	U.S.$5,490

 
 

	(1)	 Data used at the time of the Fiscal 2018 compensation review was sourced from publicly available information as of
August 2017. In comparison, at the end of Fiscal 2018, BRP had revenues of $4.487 million. 

	(2)	 Acquired by Textron Inc. in 2017. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Compensation Philosophy and Elements of Compensation 

The Company targets a total compensation at market median and up to the 75th
percentile for top performers. 
 The Company’s executive compensation program consists primarily of six elements: base salary,
short-term incentives, long-term equity incentives, group benefits, retirement benefits and perquisites, as illustrated below: 
 TOTAL DIRECT
COMPENSATION 
  
 

 
  

									
	 OTHER ELEMENTS OF COMPENSATION

 

	  

Group Benefits
  
	 		  	  

Retirement Benefits
  
	 		  	  

Perquisites
  

					
	 ●  Investment in executive
health and well-being.
 ●  To provide a
safety net to protect against the
 financial burden that can result from illness,

disability or death.
	 		  	 ●  To provide retirement
income security.
 ●  To retain key
talent.
	 		  	 ●  Facilitate business
conduct and promotion of
 BRP’s products at a limited cost to the

Company.

  

					
	  

                        
	 	 

	 	  
  

                            
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 The following chart sets forth (i) the relative weight attributable to each element of
target total direct compensation, namely base salary and target short- and long-term incentives, in the total direct compensation awarded to the NEOs during Fiscal 2018, and (ii) at the top of the chart, the percentage of each NEO’s target
total direct compensation which was considered at risk (not guaranteed) for Fiscal 2018: 
  
 

 
 Base Salary 

The base salary established for each of the Company’s executive officers is intended to reflect each executive officer’s
ability to contribute to the Company’s success through his/her expertise, experience and know-how. Base salary is not contingent on short-term variation in operating performance, and therefore sustains
individual performance and competency development. 
 The amount payable to an executive officer is determined based on the scope of
his/her responsibilities and relevant experience, while taking into account competitive market compensation within the Company’s Comparator Group for similar positions and overall market demand for such executive. Base salaries are targeted at
the market median of the competitive market, with base salaries for top performers achieving superior performance being set above the market median of the competitive market. 

Base salaries are reviewed on an annual basis by the HRNGC. The CEO provides individual performance ratings for all executive officers
but himself which are reviewed with the Senior Vice-President, Global Human Resources and Health, Safety and Security, and recommendations are then provided to the HRNGC. The HRNGC assesses if adjustments are required considering market changes,
individual performance, corporate performance, change in role or responsibilities and other considerations deemed relevant. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Incentive Programs that Support a Strong
Pay-for-Performance Philosophy 
  

							
	  
 Pay-for-Performance Philosophy
  

		 				 	
	  
 Short-Term Incentives
	 				 	  
 Long-Term Incentives

	Incentive plan rewarding achievement of key	 				 	Stock option plan aligning executive
	 performance measures

 
	 				 	 compensation with shareholder value creation

 

		 				 	
	  

Approximately 61% of the total direct compensation of the NEOs is driven by performance

 
  

 The Company sponsors two incentive programs for its executive officers and other key employees. Each
program supports and promotes the successful execution of the business strategy, drives desired performance and encourages discretionary effort. The following presents an overview of the two programs and illustrates how they contribute in supporting
a robust pay-for-performance philosophy. 
 Short-Term Incentive Plan 

 
  

	 	●	 	 The objectives of the short-term incentive program are to: 

 

	 	○	 	 share in the Company’s success; 

	 	○	 	 reward collective performance and results; 

	 	○	 	 drive employee engagement as a foundation for high performance; 

	 	○	 	 align employee contribution to the Company’s objectives; and 

	 	○	 	 encourage employees in successfully executing the Company’s strategic plan. 

 

	 	●	 	 The program rewards the attainment of financial and other key performance indicators. 

Long-Term Incentive Plan (Stock Option) 
  

 

	 	●	 	 The objectives of the long-term incentive program are to: 

 

	 	○	 	 align the interests of the employees with those of the shareholders; 

	 	○	 	 promote the Company’s long-term growth; 

	 	○	 	 share in the creation of economic value; 

	 	○	 	 share the risk; 

	 	○	 	 retain key employees; and 

	 	○	 	 offer potential reward to high contributors and high potential candidates. 

 

	 	●	 	 Stock options were chosen as the preferred long-term incentive vehicle to ensure that value was delivered to
shareholders. 

  

	 	●	 	 The size of each annual grant is subject to individual performance. 

 

	 	●	 	 Stock options vest in tranches over a 4-year period to promote strong retention.

  

	 	●	 	 Stock options offer a strong incentive leverage to reward long-term appreciation in shareholder value.

  

					
	  

                        
	 	 

	 	  
  

                            
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 Short-Term Incentive Plan 

Each executive is provided with an individual bonus payout target and a maximum bonus payout for a given fiscal year, established as a
percentage of such executive’s base salary on the assumption that all of the performance measures used under the short-term incentive plan (the “STIP”) are met at target levels and maximum levels, respectively. Targets are
aligned at the market median of the competitive market and the maximum bonus payout is set at two times the predetermined bonus payout target for exceptional results. For Fiscal 2018, the bonus payout target and the maximum bonus payout, as a
percentage of base salary, for each of the NEOs were as follows: 
  

					
	 Title
	  	 Bonus Payout
Target as a
Percentage of
Base
Salary
	  	 Maximum Bonus
Payout as
a
Percentage of Base
Salary

			
	 José Boisjoli
President and CEO
	  	125%	  	250%
			
	 Sébastien Martel
CFO
	  	75%	  	150%
			
	 Sandy Scullion
Senior Vice-President and General Manager, Global Retail and Services
	  	60%	  	120%
			
	 Denys Lapointe
Senior Vice-President, Design, Innovation and Corporate Image
	  	60%	  	120%
			
	 Karim Donnez
Senior Vice-President, Strategy, Business Development and Transformation
	  	60%	  	120%

  

The Company’s STIP is ultimately under the responsibility of the HRNGC which may establish, amend or repeal, from time to time and
at its own discretion, rules that are incompatible with the Company’s executive compensation policy. The payout grid, which articulates performance thresholds and multipliers for levels of achievement, is also reviewed annually by the HRNGC to
assess the appropriate level of targets based on past performances and future outlook. The HRNGC has broad discretion in its administration of the STIP and the amounts of awards to be paid thereunder. 

In Fiscal 2017, the HRNGC introduced divisional performance measures as part of the Company’s STIP. For Fiscal 2018, the HRNGC has
reviewed the STIP with the objective to simplify it and further solidify the performance culture and accountability in its divisions while maintaining strong alignment with shareholder value creation. The Fiscal 2018 STIP remained an additive plan
with specific performance measures for three divisions and Normalized diluted earnings per share (EPS) as a common metric to all employees. Mainly, under the Fiscal 2018 STIP: 
  

	 	●	 	 Product Engineering and Manufacturing Operations (PEMO) and Global Retail & Services (GR&S) divisions were
combined into a single group (Recreational Products) to better reflect their close operational links and performance. 

  

	 	●	 	 The Marine Propulsion Systems (MPS) division was renamed the Evinrude division. 

 

	 	●	 	 A Spyder division was added to the STIP to further promote the growth of this product line and was measured on the
Company’s Normalized diluted EPS and Spyder Global Retail. Spyder Global Retail refers to the number of Spyder units sold, adjusted based on marketing and sales programs. 

  

					
	  

                        
	 	 

	 	  
  

                            
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	 	●	 	 Profitability remained the most important performance measure to deliver on BRP’s growth commitment:

  

	 	●	 	 The Company’s Normalized diluted EPS remained the common performance measure applicable to all employees. Also,
Normalized diluted EPS had to exceed a minimum threshold for any STIP to be paid out, regardless of the Company’s performance on the other STIP performance measures. The Company believes that the use of Normalized diluted EPS is meaningful to
reflect alignment with the interests of the shareholders since it highlights trends in the Company’s core business that may not otherwise be apparent by eliminating items that have less bearing on the Company’s operating performance. For
more details on the Company’s Normalized net income and Normalized diluted EPS, please refer to the Management’s Discussion and Analysis of Financial Condition and Results of Operations for the three and twelve-month periods ended
January 31, 2018. 

  

	 	●	 	 At each division level, Normalized EBIT replaced the Normalized EBITDA performance measure used in Fiscal 2017.
Normalized EBIT takes into consideration costs related to past and current investments, which are significant for BRP. 

  

	 	●	 	 Corporate Functions were measured on Company’s Normalized diluted EPS and on each division’s results. Since an
important role of employees in Corporate Functions is to support each division, the divisions’ results were taken into consideration in the STIP payout for Corporate Functions. 

 

	 	●	 	 Net Working Capital was set as a special performance measure over and above the normal STIP which could provide a
maximum additional payout of 15% of the individual STIP target. This was put in place to provide additional focus on the Company’s management of its cash through the following three important cash management pillars: inventories, accounts
receivable and accounts payable. The Company believes that improvement in Net Working Capital management will ultimately improve the Company’s overall cash position and its return on capital. 

The following table presents the performance measures used under the STIP for Fiscal 2018 and their relative weighting: 

 

							
	  
 Recreational
Products
  
	  	  
 Evinrude(1)
  
	  	  

Spyder
  
	  	  

Corporate Functions

 

	  
 50% Company’s Normalized
diluted EPS
  

	  
 50% Recreational Products Normalized EBIT
	  	  
 50% Evinrude Normalized EBIT
	  	  
 50% Spyder Global Retail
	  	  
 30% Recreational Products Normalized EBIT

 
 10% Evinrude Normalized EBIT

 
 10% Spyder Global Retail

 

	  
 +
Additional 15% Net Working Capital
  

 (1) Previously known as Marine Propulsion Systems (MPS) division. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 The following table sets forth the definition and the threshold level applicable to each
performance measure: 
  

					
	 Performance Measure
	  	 Definition
	  	 Threshold Levels

			
	Normalized diluted EPS	  	Non-IFRS measure calculated by dividing the normalized net income by the weighted average number of shares on a diluted basis. Normalized net income is defined as net income before normalized
elements adjusted to reflect the tax effect on these elements.	  	Set at previous year’s Normalized diluted EPS level
			
	Normalized EBIT	  	Non-IFRS measure defined as net income before financing costs, financing income, income taxes expense (recovery) and normalized elements, at each division level	  	Set at previous year’s Normalized EBIT level
			
	Spyder Global Retail	  	Number of Spyder units sold, adjusted based on marketing and sales programs	  	Set at a reasonable level compared to expected results
			
	Net Working Capital	  	(Yearly average of net working capital measured at month-end / total revenues) X 365 days, Consolidated results	  	Set at previous year’s Net Working Capital level, adjusted on the Company’s regional sales mix

 The actual bonus payout represents a percentage of base salary and is determined based on the
achievement of the threshold, target or maximum bonus level, calculated on a straight line basis, for each applicable performance measure. The following table shows the level of achievement for Fiscal 2018 approved by the HRNGC in respect of each
division and corporate functions: 
  

							
	  
 Recreational
Products
  
	 	  
 Evinrude(1)
  
	 	  

Spyder
  
	 	  
 Corporate
Functions
  

	  
 186.1%

 
	 	  
 15.0%

 
	 	  
 86.1%

 
	 	  
 146.1%

 

 (1) Previously
known as Marine Propulsion Systems (MPS) division. 
 For Fiscal 2018, the Normalized diluted EPS objective was achieved at 142%. The
Normalized EBIT objective was achieved in a range between 0% and 200% depending on the division and the Net Working Capital objective was achieved at 100%. The HRNGC has concluded that it would be seriously prejudicial to the Company’s
interests to publicly disclose the level of performance that is associated with threshold, target and maximum levels for the Normalized EBIT, Net Working Capital and Spyder Global Retail measures. The levels of these performance measures could be
used by competitors to infer conclusions about confidential strategic priorities of the Company and its operations. The targets related to these performance measures are intended to be challenging – neither impossible nor easy to achieve. 

For Fiscal 2018, the Corporate NEOs (namely Messrs. Boisjoli, Martel, Lapointe and Donnez) were measured under the Corporate Functions
STIP, which captures the Company’s overall financial performance through Normalized diluted EPS along with each division’s performance. Mr. Scullion was measured under the Recreational Products division. 

Short-Term Incentive Plan for the Fiscal Year Ending on January 31, 2019 

The HRNGC has broad discretion in the administration of the STIP and the amounts of awards to be paid thereunder, including adjustments
to performance measures. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 For Fiscal 2019, the HRNGC has identified some opportunities to further improve the
Company’s STIP alignment and performance while maintaining the divisional approach as per Fiscal 2017 and Fiscal 2018. 
 The
weighting of the Normalized EBIT performance measure for the Evinrude division would be increased from 50% to 75% to further align employee’s payout with the actual Evinrude division’s performance. In addition, the Spyder Global Retail
performance measure would be added for the Powersports Group (referred to as the Recreational Products division in Fiscal 2018) to promote synergies and alignment between both divisions and given that the Powersports Group plays a critical role in
Spyder sales. The Spyder Global Retail performance measure for the Spyder division would be replaced by the Spyder KPIs performance measure. This performance measure would include Spyder Global Retail and other key performance indicators (KPIs) that
will sustain the Company’s business strategy for Spyder. No change would be made to the performance measures of the Corporate Functions. 
 Long-Term
Incentive Plans 
 The Company believes that share-based awards are an important component of its executive compensation program
and should represent a significant portion of its compensation package. 
 Two distinct long-term incentive plans are currently in
force: 
  

	 	●	 	 The new long-term incentive plan (the “LTIP” or the “Stock Option Plan”), which
was established in May 2013 in connection with the Company’s IPO, pursuant to which stock options may be granted to officers, employees and, in limited circumstances, consultants of the Company. The LTIP is further described under “Stock
Option Plan” below. 

  

	 	●	 	 The legacy long-term incentive plan (the “Legacy LTIP”), which was established in 2003. Under the
Legacy LTIP, options to purchase shares of the Company were granted to certain employees and officers. The Legacy LTIP and the options granted thereunder were maintained at the time of the Company’s IPO in May 2013. However, no additional
options have been or will be granted under the Legacy LTIP. The Legacy LTIP is further described under “Legacy LTIP” below. 

 Pension
and Retirement Benefits 
 Pension and retirement benefits made available by the Company to the NEOs are described below under
“Pension Plan Benefits”. Pension and retirement benefits aim at providing financial protection upon retirement to their participants. 
 Group Insurance
Benefits 
 The Company offers medical, dental, life, accidental death and dismemberment and short and long-term disability
insurance coverage to executives, including the NEOs. 
 Perquisites 

Perquisites include leased automobiles, availability of Company products, financial counseling services and an annual health assessment.
Certain NEOs also receive additional perquisites in connection with foreign assignments. 
 Share Ownership Guidelines 

The Company has share ownership guidelines which provide that certain executives, including the NEOs, are required to maintain minimum
holdings of Subordinate Voting Shares based on their compensation and position. The share ownership guidelines aim at ensuring that interests of executives remain aligned with those of shareholders and demonstrate that NEOs are financially committed
to the Company through personal equity ownership. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 The HRNGC monitors executives’ share ownership to ensure that the share ownership
requirements are met. Under the share ownership guidelines, the requirements are based on the highest of the market value and the cost base of the Subordinate Voting Shares owned by the executive and there is no set time to satisfy the requirements.
Options, whether vested or not, are not taken into account in assessing whether the share ownership guidelines are satisfied. Participants must, however, retain the after-tax gains in Subordinate Voting Shares
until the share ownership requirements are met. 
 The following table highlights the minimum holding requirements as a multiple of
base salary applicable under the share ownership guidelines for each of the NEOs as at the end of Fiscal 2018, as well as the total number of Subordinate Voting Shares held by such NEOs: 

 

									
	 	  	Share Ownership
Guidelines	  	Subordinate Voting
Shares Held	  	Equity
Ownership
is Met
(Yes or No)
	 NEOs
	  	As a
Multiple of
Base Salary	  	            ($)            	  	Market
Value(1)
($)
					
	 José Boisjoli
President and CEO
	  	4x	  	4,136,020	  	53,796,279	  	Yes
					
	 Sébastien Martel
CFO
	  	2x	  	944,572	  	2,795,005	  	Yes
					
	 Sandy Scullion
Senior Vice-President and General Manager, Global Retail and Services
	  	1.5x	  	556,875	  	1,772,591	  	Yes
					
	 Denys Lapointe
Senior Vice-President, Design, Innovation and Corporate Image
	  	1.5x	  	539,437	  	7,332,310	  	Yes
					
	 Karim Donnez
Senior Vice-President, Strategy, Business Development and Transformation
	  	1.5x	  	461,100	  	–	  	No(2)

  

	(1)	 Based on the closing price of the Subordinate Voting Shares on the TSX ($53.14) on April 20, 2018.

  

	(2)	 Mr. Donnez joined the Company on July 1, 2015 and has not yet reached the minimum holding requirements
applicable under the share ownership guidelines. 

 Hedging / Anti-Hedging Policy 

The NEOs and the directors are, under the terms of the Company’s insider trading policy, prohibited from purchasing financial
instruments designed to hedge or offset a decrease in the market value of shares, including shares granted as, or underlying, share-based compensation or otherwise held directly or indirectly by a NEO or a director. 

Clawback Policy 

A clawback policy (the “Clawback Policy”) was recommended by the HRNGC and adopted by the Board of Directors
effective January 22, 2015. The Clawback Policy allows the Board of Directors, in its sole discretion, to require reimbursement of all or a portion of the incentive compensation, defined as payouts under the STIP and LTIP, received by senior
executives or former senior executives over the 12 months preceding a triggering event if: 
  

	 	●	 	 the incentive compensation received by the senior executive was calculated based upon the achievement of financial
results that were subsequently materially restated or corrected, in whole or in part; 

  

	 	●	 	 the senior executive engaged in gross negligence, intentional misconduct or fraud that caused or partially caused the
need for the restatement; and 

  

					
	  

                        
	 	 

	 	  
  

                            
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	 	●	 	 the amount of incentive compensation that would have been awarded to or the profit realized by the senior executive had
the financial results been properly reported would have been lower than the amount actually awarded or received. 

Under the Company’s Clawback Policy, senior executives are defined as the CEO and permanent full time executives reporting directly
to the CEO. The Clawback Policy only applies to events occurring after its adoption by the Board of Directors. 
 Compensation Risk
Management 
 The Company’s current compensation structure attempts to ensure that compensation and incentive plans do not
promote unwanted behaviour and unnecessary risk-taking based on: 
  

	 	●	 	 a well-balanced mix of base salary, STIP and LTIP compensation; 

 

	 	●	 	 a STIP with significant weighting on profitability measures applied to all employees in the organization, including the
executives; 

  

	 	●	 	 a STIP with a minimum corporate profitability level that prevents from paying any STIP amount unless such minimum
threshold is met; 

  

	 	●	 	 maximums being applied to payouts under the STIP (two times target); 

 

	 	●	 	 the use of performance measures aligned with the Company’s business strategy and the creation of long-term value
for the shareholders, with no measure being related to aggressive revenue growth that could encourage excessive risk-taking detrimental to the long-term profitability of the business of the Company; 

 

	 	●	 	 share ownership guidelines requiring NEOs and other executives to maintain a meaningful equity ownership in the Company;

  

	 	●	 	 a prohibition on the hedging of equity-based compensation; 

 

	 	●	 	 a clawback policy that enables the Board of Directors to require the recoupment of payouts under the STIP and LTIP in
certain circumstances; and 

  

	 	●	 	 policies and practices being generally applied on a consistent basis to all executive officers. 

After considering the overall policies and practices applicable to all employees, including the NEOs, the HRNGC did not identify any
risks arising from BRP’s compensation policies and practices that would be reasonably likely to have a material adverse effect on BRP. 
 
Performance Results 
 The following performance graph illustrates the cumulative return on a $100 investment in the
Subordinate Voting Shares made on May 29, 2013, being the date on which the Subordinate Voting Shares started trading on the TSX, compared with the cumulative return on the S&P/TSX Composite Index for the same period. The Company declared
three quarterly dividends of $0.08 per share for holders of its multiple voting shares and subordinate voting shares during Fiscal 2018 and announced on March 20, 2018 the payment of a quarterly dividend of $0.09 per share for holders of its
multiple voting shares and subordinate voting shares. For Fiscal 2018, the following graph assumes that dividends are reinvested. Before Fiscal 2018, no dividends were paid by the Company. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Fiscal 2018 represented the Company’s fourth full fiscal year as a public company. During the
period commencing at the closing of the IPO on May 29, 2013 up to January 31, 2018, the cumulative shareholder return on an investment in the Subordinate Voting Shares was above that of an investment on the S&P/TSX Composite Index. As
evidenced by the graph above, since the Company’s IPO, the Subordinate Voting Shares underperformed the S&P/TSX Composite Index for a couple of years but gained significant momentum and outperformed the S&P/TSX Composite Index in Fiscal
2018, thus resulting in the cumulative shareholder return since the Company’s IPO outperforming the S&P/TSX Composite Index. 

The following table provides a comparison of the variation of the total return for shareholders of the Company with the total direct
compensation of the Named Executive Officers: 
  

							
	 	  	
      Fiscal 2018      
	  	
      Fiscal 2017      
	  	
      Fiscal 2016      

	 Total Shareholder Return (DOO) (%)
	  	94.6%	  	69.4%	  	(29.1)%
				
	 Total direct compensation of the NEOs(1) (in millions of
$)
	  	11.4	  	7.0	  	7.1
				
	 Increase in Total Direct Compensation of the NEOs(1)
(%)
	  	62.9%	  	(0.0)%	  	(27.6)%

  

	(1)	 “Total direct compensation” refers to the “Total Compensation” received by the NEOs as reflected in
the “Summary Compensation Table”, but excludes the amounts set forth under “Pension Value” and “All Other Compensation”. 

In Fiscal 2018, the increase in total direct compensation was driven by higher STIP payouts reflecting the outstanding performance of
the Company and a higher number of stock options granted to the NEOs in Fiscal 2018. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Summary Compensation Table 

The following table sets forth information concerning the compensation paid by the Company to the NEOs during Fiscal 2018, Fiscal 2017
and Fiscal 2016. 
  

																	
	 	  	 	 	 	  	 	  	 	  	Non-Equity
Incentive Plan
Compensation	  	 	  	 	  	 
	Name and
Principal Position	  	Fiscal
Year	 	Base
Salary
($)	  	Share-
Based
Awards
($)	  	Option-
Based
Awards(1)
($)	  	Annual
Incentive
Plans(2)
($)	  	Pension
Value(3)
($)	  	All Other
Compensation(4)
($)	  	Total
Compensation
($)
									
	 José Boisjoli
	  	2018	 	1,034,005	  	–  	  	4,165,410	  	1,888,403	  	743,000	  	2,000	  	7,832,818
	     President and CEO
	  	2017	 	1,005,842	  	–  	  	1,762,109	  	1,118,999	  	746,000	  	3,333	  	4,636,283
	 	  	2016	 	981,309	  	–  	  	2,050,509	  	631,767	  	702,000	  	65,583	  	4,431,168
									
	 Sébastien Martel
	  	2018	 	472,286	  	–  	  	483,299	  	517,531	  	175,000	  	2,000	  	1,650,116
	     CFO
	  	2017	 	450,225	  	–  	  	200,449	  	300,525	  	138,000	  	–  	  	1,089,200
	 	  	2016	 	400,000	  	–  	  	637,113	  	157,900	  	420,000	  	16,033	  	1,631,047
									
	 Sandy Scullion
	  	2018	 	371,250	  	–  	  	228,321	  	414,538	  	383,000	  	2,000	  	1,399,109
	     Senior Vice-President and General Manager,
	  	2017	 	286,145	  	–  	  	178,533	  	128,339	  	1,458,000	  	380,050	  	2,431,067
	     Global Retail and Services
	  	2016	 	243,062	  	–  	  	97,035	  	56,342	  	77,000	  	417,015	  	890,454
									
	 Denys Lapointe
	  	2018	 	359,625	  	–  	  	220,208	  	315,247	  	395,000	  	2,000	  	1,292,080
	     Senior Vice-President, Design, Innovation and
	  	2017	 	350,000	  	–  	  	116,579	  	227,010	  	374,000	  	3,333	  	1,070,923
	     Corporate Image
	  	2016	 	313,251	  	–  	  	186,410	  	96,795	  	131,000	  	8,074	  	735,529
									
	 Karim Donnez
	  	2018	 	307,400	  	–  	  	377,831	  	269,467	  	88,000	  	2,000	  	1,044,697
	     Senior Vice-President, Strategy, Business Development
	  	2017	 	276,198	  	–  	  	96,451	  	133,201	  	94,000	  	33,656	  	633,505
	     and Transformation
	  	2016(5)	 	139,583	  	–  	  	70,447	  	32,355	  	43,000	  	22,771	  	308,156

  

	 	(1)	 Represent grants of options made to the NEOs under the Stock Option Plan. During Fiscal 2018, Messrs. Boisjoli,
Martel, Scullion, Lapointe and Donnez were granted 359,400, 41,700, 19,700, 19,000 and 32,600 stock options, respectively. The values indicated in the table reflect the estimated fair value of the options on the date of grant. They do not represent
cash received by the optionees, and the actual value realized upon the future vesting and exercise of such options may be less or greater than the grant date fair values indicated in the table above. The Black-Scholes method has been used in
calculating the grant date fair value of the option-based awards. The Black-Scholes method is used to estimate the grant date fair value of option-based awards because it is the most commonly used share-based award pricing model and is considered to
produce a reasonable estimate of fair value. The grant date fair value of these awards was $11.5899 per option, which is the same as the fair value determined for accounting purposes. See “Executive Compensation — Discussion and
Analysis — Compensation Philosophy and Elements of Compensation” and “Executive Compensation — Discussion and Analysis — Stock Option Plan”. 

 

	 	(2)	 Represents amounts earned pursuant to the STIP. For the purposes of this table, awards are deemed to be earned in the
fiscal year in which the applicable performance targets are satisfied, even if the payments are not made in such fiscal year. See “Executive Compensation — Discussion and Analysis — Compensation Philosophy and
Elements of Compensation — Short-Term Incentive Plan for the Fiscal Year Ending on January 31, 2019”. 

  

	 	(3)	 Dollar values disclosed in this column correspond to the dollar values in the “Compensatory Change” column of
the Defined Benefit Plan table and to the “Compensatory” column of the Defined Contribution Plan table. See “Executive Compensation — Discussion and Analysis — Pension Plan Benefits”.

  

	 	(4)	 Perquisites and other personal benefits which, in the aggregate, are worth less than $50,000 or 10% of the total salary
of a NEO are not included under “All Other Compensation”. For all the NEOs, the amounts presented under “All Other Compensation” include post-retirement benefits (life and health insurance). For Mr. Scullion, for Fiscal 2017
and 2016, the amounts include payments made to him in connection with his foreign assignment, including but not limited to a foreign assignment premium and related allowances for housing and transportation, a cost of leaving adjustment, together
with gross-up for related taxes. 

  

	 	(5)	 Mr. Donnez joined the Company on July 1, 2015. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Incentive Plan Awards 

Outstanding Share-Based Awards and Option-Based Awards Table 

The following table summarizes, for each of the NEOs, the number of stock options to purchase Subordinate Voting Shares which were held
as at January 31, 2018, being the end of Fiscal 2018. As at the same date, the Company had no share-based awards outstanding. 
  

																																									
	 	  	 	  	Option-Based Awards	  	Share-Based Awards
	  Name and

 Principal Position
	  	    Date of    
Grant	  	Number of
Securities
Underlying
  Unexercised  
Options
(#)	  	Option
  Exercise  
Price
($)	  	Option
  Expiration  
Date	  	Value of
Unexerci-
sed In-
the-
Money
  Options(1)  
($)	  	Number
of
Shares
  or Units  

of
Shares
That
Have
Not
Vested
(#)	  	Market or
Payout
Value of
Share-
Based
Awards
  That Have  
Not
Vested
($)	  	Market or
Payout
Value of
Vested
Share-
Based
 Awards Not 
Paid Out or
Distributed
($)
									
	 José Boisjoli
	  	 	 	June 26, 2017		  	 	 	359,400		  	 	 	39.4493		  	 	 	June 26, 2027		  	 	 	4,101,006		  	 	 	—		  	 	 	—		  	 	 	—	
	   President and CEO
	  	 	 	July 11, 2016		  	 	 	210,100		  	 	 	20.3273		  	 	 	July 11, 2026		  	 	 	6,414,920		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	June 9, 2015		  	 	 	160,600		  	 	 	27.9623		  	 	 	June 9, 2025		  	 	 	3,677,371		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	July 2, 2014		  	 	 	229,600		  	 	 	26.3000		  	 	 	July 2, 2024		  	 	 	5,638,976		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	May 29, 2013		  	 	 	271,500		  	 	 	21.5000		  	 	 	May 29, 2023		  	 	 	7,971,240		  	 	 	—		  	 	 	—		  	 	 	—	
									
	 Sébastien Martel
	  	 	 	June 26, 2017		  	 	 	41,700		  	 	 	39.4493		  	 	 	June 26, 2027		  	 	 	475,826		  	 	 	—		  	 	 	—		  	 	 	—	
	   CFO
	  	 	 	July 11, 2016		  	 	 	23,900		  	 	 	20.3273		  	 	 	July 11, 2026		  	 	 	729,732		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	June 9, 2015		  	 	 	49,900		  	 	 	27.9623		  	 	 	June 9, 2025		  	 	 	1,142,595		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	July 2, 2014		  	 	 	43,900		  	 	 	26.3000		  	 	 	July 2, 2024		  	 	 	1,078,184		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	May 29, 2013		  	 	 	18,000		  	 	 	21.5000		  	 	 	May 29, 2023		  	 	 	528,480		  	 	 	—		  	 	 	—		  	 	 	—	
									
	 Sandy Scullion
	  	 	 	June 26, 2017		  	 	 	19,700		  	 	 	39.4493		  	 	 	June 26, 2027		  	 	 	224,791		  	 	 	—		  	 	 	—		  	 	 	—	
	   Senior Vice-President
	  	 	 	Sept. 7, 2016		  	 	 	3,900		  	 	 	25.7919		  	 	 	Sept. 7, 2026		  	 	 	97,766		  	 	 	—		  	 	 	—		  	 	 	—	
	   and General Manager,
	  	 	 	July 11, 2016		  	 	 	16,800		  	 	 	20.3273		  	 	 	July 11, 2026		  	 	 	512,949		  	 	 	—		  	 	 	—		  	 	 	—	
	   Global Retail and
	  	 	 	June 9, 2015		  	 	 	7,600		  	 	 	27.9623		  	 	 	June 9, 2025		  	 	 	174,023		  	 	 	—		  	 	 	—		  	 	 	—	
	   Services
	  	 	 	July 2, 2014		  	 	 	4,700		  	 	 	26.3000		  	 	 	July 2, 2024		  	 	 	115,432		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	May 29, 2013		  	 	 	11,000		  	 	 	21.5000		  	 	 	May 29, 2023		  	 	 	322,960		  	 	 	—		  	 	 	—		  	 	 	—	
									
	 Denys Lapointe
	  	 	 	June 26, 2017		  	 	 	19,000		  	 	 	39.4493		  	 	 	June 26, 2027		  	 	 	216,803		  	 	 	—		  	 	 	—		  	 	 	—	
	   Senior Vice-President,
	  	 	 	July 11, 2016		  	 	 	13,900		  	 	 	20.3273		  	 	 	July 11, 2026		  	 	 	424,405		  	 	 	—		  	 	 	—		  	 	 	—	
	   Design, Innovation and
	  	 	 	June 9, 2015		  	 	 	14,600		  	 	 	27.9623		  	 	 	June 9, 2025		  	 	 	334,306		  	 	 	—		  	 	 	—		  	 	 	—	
	   Corporate Image
	  	 	 	July 2, 2014		  	 	 	16,100		  	 	 	26.3000		  	 	 	July 2, 2024		  	 	 	395,416		  	 	 	—		  	 	 	—		  	 	 	—	
		  	 	 	May 29, 2013		  	 	 	22,000		  	 	 	21.5000		  	 	 	May 29, 2023		  	 	 	645,920		  	 	 	—		  	 	 	—		  	 	 	—	
									
	 Karim Donnez
	  	 	 	June 26, 2017		  	 	 	32,600		  	 	 	39.4493		  	 	 	June 26, 2027		  	 	 	371,989		  	 	 	—		  	 	 	—		  	 	 	—	
	   Senior Vice-President,
	  	 	 	July 11, 2016		  	 	 	11,500		  	 	 	20.3273		  	 	 	July 11, 2026		  	 	 	351,126		  	 	 	—		  	 	 	—		  	 	 	—	
	   Strategy, Business
	  	 	 	Sept. 9, 2015		  	 	 	6,200		  	 	 	26.6756		  	 	 	Sept. 9, 2025		  	 	 	149,943		  	 	 	—		  	 	 	—		  	 	 	—	
	   Development and
	  	 				  	 				  	 				  	 				  	 				  	 				  	 				  	 			
	   Transformation
	  	 				  	 				  	 				  	 				  	 				  	 				  	 				  	 			

  

	 	(1)	 Based on the closing price of the Subordinate Voting Shares on the TSX ($50.86) on January 31, 2018, being the
last trading day before the end of Fiscal 2018. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Incentive Plan Awards – Value Vested or Earned During the Year 

The following table provides, for each of the NEOs, a summary of the value of the option-based and share-based awards vested or non-equity incentive plan compensation earned during Fiscal 2018 
  

																
	 Name
	  	Option-Based
Awards –
Value
  Vested During the  
Year(1)
($)	  	Share-Based
Awards – Value
  Vested During the  
Year
($)	  	Non-Equity Incentive
Plan Compensation –
 Value Earned During 
the Year(2)
($)
				
	 José Boisjoli
President and CEO
	  	 	 	2,802,762		  	 	 	—		  	 	 	1,888,403	
				
	 Sébastien Martel
CFO
	  	 	 	424,530		  	 	 	—		  	 	 	517,531	
				
	 Sandy Scullion
Senior Vice-President and General Manager, Global Retail and Services
	  	 	 	156,641		  	 	 	—		  	 	 	414,538	
				
	 Denys Lapointe
Senior Vice-President, Design, Innovation and Corporate Image
	  	 	 	142,910		  	 	 	—		  	 	 	315,247	
				
	 Karim Donnez
Senior Vice-President, Strategy, Business Development and Transformation
	  	 	 	75,020		  	 	 	—		  	 	 	269,467	

  
  

	(1)	 Calculated as the difference between the market price of the Subordinate Voting Shares on the date of vesting and the
exercise price payable in order to exercise the vested stock options. 

  

	(2)	 Amounts are equal to those shown in the “Non-Equity Incentive Plan
Compensation – Annual Incentive Plans” column in the Summary Compensation Table. 

 Stock Options
Exercises in Fiscal 2018 
 The following table sets forth information concerning the cash value realized by the NEO who exercised
options during Fiscal 2018: 
  

																																														
	Name	  	Shares Acquired
on Exercise	  	Grant Date	  	Exercise Price	  	 	  	  Exercise Date  	  	 	  	 Share Price on 
Exercise	  	 	  	 Value Realized 
on Exercise(1)
	 	 	  	 				  	 	 	 	 	  	 				  	 	 	 	 	  	 				  	 	 	 	 
										
	 Sandy Scullion
	  	 	 	5,577		  	 	 	Feb 1, 2009		  	 	$	0.1500		  	 				  	 	 	June 9, 2017		  	 				  	 	$	39.47		  	 				  	 	 	219,288	
	 Senior Vice-President and General Manager, Global Retail and Services
	  	 	 	7,170		  	 	 	Nov 1, 2010		  	 	$	0.1500		  	 				  	 	 	June 9, 2017		  	 				  	 	$	39.47		  	 				  	 	 	281,924	

  
  

 

	 	(1)	 Value realized upon exercise was determined by multiplying the number of stock options exercised by the difference
between the price of the Subordinate Voting Shares on the TSX at the time of the exercise and the exercise price of the stock options. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Securities Authorized for Issuance under Equity Compensation Plans 

The following table provides a summary, as of January 31, 2018, of the security-based compensation plans or individual compensation
arrangements pursuant to which equity securities of the Company may be issued: 
  

																		
	 Plan Category
	  	  Number of Securities to be  
Issued upon Exercise of
Outstanding Options	 	 	  	Weighted-Average
Exercise Price of
    Outstanding Options    	  	Number of Securities
Remaining Available for
Future Issuance under
  Equity Compensation Plans  
(Excluding
Securities
Appearing in First Column)
	 Equity Compensation Plans Approved by Securityholders:
	  	 				 		  	 				  	 			
					
	 Stock Option Plan
	  	 	 	3,334,525		 		  	 	 	$29.05		  	 	 	2,002,053	
					
	 Legacy LTIP
	  	 	 	65,209		 		  	 	 	$1.43		  	 	 	-	
					
	Equity Compensation Plans not Approved by Securityholders	  	 	 	-		 		  	 	 	-		  	 	 	-	
					
	 Total
	  	 	 	3,399,734		 		  	 	 	$28.52		  	 	 	2,002,053	

 See “Executive Compensation — Discussion and Analysis — Compensation Philosophy
and Elements of Compensation — Long-Term Incentive Plans” and the sections “Executive Compensation — Discussion and Analysis —Stock Option Plan” and “Executive Compensation — Discussion and
Analysis —Legacy LTIP” for descriptions of the Stock Option Plan and the Legacy LTIP. See “Compensation of Directors” for a description of the DSU Plan. 

The following table provides the number of stock options granted each year (burn rates) under the Stock Option Plan for Fiscal 2018,
Fiscal 2017 and Fiscal 2016 expressed as a percentage of the weighted average number of outstanding Shares for the applicable fiscal year. 
  

																
	 Fiscal Year
	  	    Number of Stock Options    
Granted	  	    Weighted Average    
Number of Shares	  	    Stock Options    
Burn Rate(1)
	 2018
	  	1,106,900	  	106,961,014	  	1.03%
				
	 2017
	  	828,400	  	112,946,239	  	0.73%
				
	 2016
	  	643,300	  	117,013,234	  	0.55%

  

	 	(1)	 The burn rate is calculated by dividing the number of stock options granted during the applicable fiscal year by the
weighted average number of Shares outstanding for the applicable fiscal year. Since the DSU Plan established for the Directors of the Company is non-dilutive, the burn rate for outstanding DSUs was nil for
each of the last three completed fiscal years indicated in the table above. 

 Stock Option Plan 

Under the Company’s Stock Option Plan, options may be granted to officers, employees and, in limited circumstances, consultants of
the Company. Stock options are generally granted under the Stock Option Plan on an annual basis according to the Company’s compensation policy and pre-established target awards adjusted according to
individual performance. The first grants of options under the Stock Option Plan were made as of May 29, 2013 in connection with the closing of the Company’s IPO. 

A maximum of 5,814,828 Subordinate Voting Shares may be issued to participants, at any time, under the Stock Option Plan, which
represented approximately 5% of the Company’s issued and outstanding Shares as of the closing of the Company’s IPO on May 29, 2013. If the Stock Option Plan Reserve Amendment is approved at the Meeting, the maximum number of
Subordinate Voting Shares 

  

					
	  

                        
	 	 

	 	  
  

                            
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that may be issued pursuant to the Stock Option Plan will be increased by 5,000,000 Subordinate Voting Shares from 5,814,828 to 10,814,828 Subordinate Voting Shares (or 10.81% of the total issued
and outstanding Shares on April 20, 2018). 
 During Fiscal 2018, a total of 1,106,900 stock options were granted under the Stock
Option Plan to a total of 166 eligible participants. As of January 31, 2018, there were 3,334,525 issued and outstanding stock options under the Stock Option Plan, representing 3.29% of the issued and outstanding Shares. As of the same
date, 2,002,053 Subordinate Voting Shares remained available for future issuance under the Stock Option Plan, representing 1.98% of the issued and outstanding Shares. 

On March 20, 2018, an additional 50,000 stock options were granted under the Stock Option Plan to one eligible participant. 

As of April 20, 2018, there were 3,346,875 issued and outstanding stock options under the Stock Option Plan,
representing 3.35% of the issued and outstanding Shares. As of the same date, 1,900,625 stock options remained available for future issuance under the Stock Option Plan, representing 1.90% of the issued and outstanding Shares. 

The stock options granted under the Stock Option Plan in Fiscal 2018 had the following features: (i) time-based vesting, whereby
25% of the options vest on each of the first, second, third and fourth anniversary of the grant; and (ii) a ten-year term at the end of which the options expire. With respect to the expiry date of any
stock option, the Stock Option Plan provides that if the expiry date falls on, or within the nine (9) business days immediately following a date upon which a participant is prohibited from exercising his or her stock options due to a black-out period or other trading restriction imposed by the Company, the expiry date of such option will be automatically extended to the 10th business day
following the date the relevant black-out period or other trading restriction imposed by the Company is lifted, terminated or removed. 

Stock options are intended to align the interests of executive officers with those of shareholders towards an increase in the price of
the Subordinate Voting Shares of the Company, while the ten-year expiry term and the four-year ratable vesting periods promote retention. 

To the extent options granted under the Stock Option Plan terminate for any reason prior to their exercise in full or are cancelled, the
Subordinate Voting Shares subject to such options shall be added back to the Stock Option Plan Reserve and such Subordinate Voting Shares will again become available for grant under the Stock Option Plan, the whole without increasing the Stock
Option Plan Reserve. 
 Under the current version of the Stock Option Plan, the following additional limitations apply to grants under
the Stock Option Plan: (i) the maximum number of Subordinate Voting Shares issuable to insiders and their associates and affiliates at any time under the Stock Option Plan, the Legacy LTIP and any other share compensation arrangements of the
Company may not exceed 5% of the issued and outstanding Shares; (ii) the maximum number of Subordinate Voting Shares issued to insiders and their associates and affiliates within any one year period under the Stock Option Plan, the Legacy LTIP
and any other share compensation arrangements of the Company may not exceed 5% of the issued and outstanding Shares; and (iii) the total number of Subordinate Voting Shares issuable to any one participant at any time under the Stock Option
Plan, the Legacy LTIP and any other share compensation arrangement of the Company may not exceed 5% of the issued and outstanding Shares. If the Insider Participation Limit Amendment is approved at the Meeting, the limitations set forth under sub-paragraphs (i) and (ii) above will be increased to 10% of the issued and outstanding Shares (see “Business of the Meeting – Amendments to the Stock Option Plan”). 

All stock options granted under the Stock Option Plan have an exercise price determined and approved by the HRNGC at the time of grant,
which may not be less than the market value of the Subordinate Voting Shares at such time. For purposes of the Stock Option Plan, the “market value” of the Subordinate Voting Shares shall be equal to: (i) the volume weighted average
trading price of a 

  

					
	  

                        
	 	 

	 	  
  

                            
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Subordinate Voting Share on the TSX for the five (5) preceding days on which the Subordinate Voting Shares were traded if measured outside of a
black-out period (a period self-imposed by the Company during which designated employees cannot trade the securities of the Company), and (ii) if measured during a
black-out period, the volume weighted average trading price of a Subordinate Voting Share on the TSX for the five (5) trading days following the last day of such
black-out period on which the Subordinate Voting Shares are traded. 
 The Stock Option Plan
also provides that appropriate substitutions or adjustments, if any, shall be made by the Board of Directors, subject to any required approval of the TSX, in connection with a reclassification, reorganization or other change of shares,
consolidation, distribution, merger or amalgamation, in order to maintain the optionees’ economic rights in respect of their options in connection with such change, including adjustments to the exercise price and/or the number of Subordinate
Voting Shares to which an optionee is entitled upon exercise of stock options, adjustments permitting the immediate exercise of any outstanding stock options that are not otherwise exercisable or adjustments to the number or kind of shares reserved
for issuance pursuant to the Stock Option Plan. 
 The Board of Directors may in its discretion accelerate the vesting of any
outstanding stock options notwithstanding the previously established vesting schedule, regardless of any adverse or potentially adverse tax consequences resulting from such acceleration. 

In the event of a “Change of Control”, the Board of Directors may make such provision for the protection of the rights of the
participants as it, in its sole discretion, considers appropriate in the circumstances, including, without limitation, changing the vesting schedule for any stock option or the date on which any stock option expires or providing for substitute
awards. In addition, upon a Change of Control, all unvested stock options then outstanding may be substituted by or replaced with stock options of the continuing entity on the same terms and conditions as the original stock options unless
substitution or replacement of the stock options is deemed impossible or impractical by the Board of Directors, in its sole discretion, in which case the vesting of all such stock options (and, if applicable, the time during which such options may
be exercised) shall, at the discretion of the Board of Directors, be accelerated in full, and the stock options shall terminate if not exercised (if applicable) at or prior to such event. For the purposes of the Stock Option Plan, “Change of
Control” is defined as the acquisition by any person or group of persons acting jointly or in concert (other than holders of Multiple Voting Shares and their affiliates) of securities of the Company carrying the right to elect a majority of the
Board of Directors of the Company. 
 The following table describes the impact of certain events upon the rights of holders under the
Stock Option Plan, including resignation, termination for cause, termination other than for cause, termination other than for cause within 12 months following a Change of Control or retirement, death or disability: 

 

			
	  Event
	 	  Provisions

		
	 Termination for cause or resignation
	 	 Forfeiture of all vested and unvested options on date of termination for cause or resignation

		
	 Termination without cause
	 	 60 days after termination to exercise vested options / Forfeiture of all unvested options on termination date

		
	 Termination without cause within one year of a Change of
Control(1)
	 	 Immediate vesting of all unvested options / 180 days after termination to exercise options

		
	 Retirement
	 	 Forfeiture of all unvested options on date of retirement / 12 months after date of retirement to exercise vested
options

  

					
	  

                        
	 	 

	 	  
  

                            
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	  Event
	 	  Provisions

	 Disability, Death
	 	 Forfeiture of all unvested options on date of disability or death / 12 months after date of disability or death to exercise vested
options

  
  

	(1)	 For the purposes of the Stock Option Plan, “Change of Control” is defined as the acquisition by any person or
group of persons acting jointly or in concert (other than holders of Multiple Voting Shares and their affiliates) of securities of the Company carrying the right to elect a majority of the Board of Directors of the Company. 

The Board of Directors may amend the Stock Option Plan or any stock option at any time without the consent of the optionees provided
that such amendment will (i) not adversely alter or impair any stock option previously granted except as permitted by the terms of the Stock Option Plan, (ii) be in compliance with applicable law and subject to any regulatory approvals
including, where required, the approval of the TSX, and (iii) be subject to shareholder approval, where required, by law, the requirements of the TSX or the Stock Option Plan, provided however that shareholder approval is not required for the
following amendments and the Board of Directors may make any changes which may include but are not limited to (assuming that the Stock Option Plan Amendments are approved): 
  

	 	●	 amendments of a “housekeeping” nature; 

 

	 	●	 a change to the provisions of any stock option governing vesting, and effect of termination of a participant’s
employment; 

  

	 	●	 the introduction or amendment of a cashless exercise feature payable in cash or securities, whether or not such
amendment provides for a full deduction of the number of underlying securities from the Stock Option Plan Reserve; 

  

	 	●	 the addition of a form of financial assistance and any amendment to a financial assistance provision which is adopted;

  

	 	●	 a change to advance the date on which any stock option may be exercised under the Stock Option Plan; and

  

	 	●	 a change to the eligible participants of the Stock Option Plan, provided that no such change results in members of the
Board of Directors who are not otherwise employees of the Company becoming eligible participants. 

 For greater
certainty, the Board of Directors is required to obtain shareholder approval to make the following amendments (assuming that the Stock Option Plan Amendments are approved): 
  

	 	●	 any increase to the maximum number of Subordinate Voting Shares issuable from treasury pursuant to stock options
granted under the Stock Option Plan, other than an adjustment in connection with a stock dividend, split, reclassification, reorganization, consolidation, distribution (other than an ordinary course dividend), merger or amalgamation;

  

	 	●	 any reduction in the exercise price of a stock option after the stock option has been granted or any cancellation of
such stock option and the substitution of that stock option by a new stock option with a reduced exercise price, except in the case of an adjustment in connection with a stock dividend, split, reclassification, reorganization, consolidation,
distribution (other than an ordinary course dividend), merger or amalgamation; 

  

	 	●	 any extension of the expiry date of a stock option, except in case of an extension due to a black-out period; 

  

	 	●	 any amendment to the provisions of the Stock Option Plan governing the assignment or transfer of stock options;

  

	 	●	 any amendment to remove or to exceed the percentage limits with respect to (i) the maximum number of Subordinate
Voting Shares issuable to insiders and their associates and affiliates at any time; (ii) the maximum number of Subordinate Voting Shares issued to insiders and their associates and affiliates within any one year period; or (iii) the total
number of Subordinate Voting 

  

					
	  

                        
	 	 

	 	  
  

                            
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Shares issuable to any one participant at any time, except in the case of an adjustment in connection with a stock dividend, split, reclassification, reorganization, consolidation, distribution
(other than an ordinary course dividend), merger or amalgamation; and 

  

	 	●	 any amendment to the amendment provisions of the Stock Option Plan. 

Stock options granted under the Stock Option Plan are not transferable, except that an optionee may, with the prior approval of the
Company, transfer stock options to (i) such optionee’s family or retirement savings trust for bona fide tax planning purposes, and (ii) registered retirement savings plans or registered retirement income funds of which the
optionee is the annuitant. 
 No financial assistance is currently provided by the Company to participants under the Stock Option
Plan. 
 Legacy LTIP 

The Legacy LTIP was established in 2003 in connection with the acquisition by the Company of the recreational products division of
Bombardier Inc. Pursuant to the Legacy LTIP, stock options to purchase shares of the Company were previously granted to certain employees and officers of the Company. 

The stock options issued under the Legacy LTIP were granted at exercise prices equal to the fair market value of the underlying shares
at the time of initial grant. The exercise price was subsequently adjusted in accordance with the terms of the Legacy LTIP to reflect dividends paid or capital distributions made by the Company prior to its IPO. The exercise price, the class and the
number of shares underlying each option were also adjusted in the context of the Company’s IPO to reflect the exchange of shares and the share consolidation implemented immediately prior to the closing of the IPO in order to create a class of
multiple voting shares and a class of subordinate voting shares. 
 Since the Company’s IPO, no stock options were granted under
the Legacy LTIP nor will stock options be granted in the future thereunder. A total of 65,209 stock options were outstanding under the Legacy LTIP as of January 31, 2018, and the Subordinate Voting Shares issuable upon exercise of such stock
options represented as of such date in the aggregate 0.06% of the issued and outstanding Shares. As of January 31, 2018, there were 3,399,734 stock options outstanding under the Stock Option Plan and the Legacy LTIP and the Subordinate Voting
Shares issuable upon exercise of such stock options represented as of such date in the aggregate 3.35% of the issued and outstanding Shares. 

The Legacy LTIP provides that appropriate adjustments may be made by the Board of Directors in connection with a reclassification,
reorganization or other change of shares, a consolidation, a distribution, a merger or an amalgamation in order to maintain the optionees’ economic rights in respect of their stock options, including adjustments to the exercise price and/or the
number of Subordinate Voting Shares to which an optionee is entitled upon exercise of stock options or permitting the immediate exercise of any outstanding stock options that are not otherwise exercisable. 

The Legacy LTIP includes terms and conditions required by the TSX for a stock option plan such as provisions and restrictions relating
to amendment of the plan or stock options similar to those applicable to the Stock Option Plan summarized above under “Stock Option Plan”, and the restrictions on insider or individual participation summarized above under “Stock
Option Plan”. 
 Pension Plan Benefits 

Defined Benefit Plans 
 The Canadian
executives of the Company, including the NEOs, participate in two defined benefit pension plans: a basic plan and a supplemental plan. Executives are not required to make mandatory contributions under the defined benefit pension plans. However,
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contributions in order to provide for additional ancillary benefits at retirement or termination, subject to applicable legislation. 

Benefits payable from the basic plan correspond to 2% of average base salary in the three continuous years of service during which the
executives are paid their highest salary (up to the maximum earnings for each year, which was set at $145,722 for 2017) multiplied by the number of years of credited service. 

The supplemental plan provides for additional benefits, depending on the management level of each executive, of: 

 

	 	●	 2% of average base salary up to $145,722 plus 1.75% of average base salary in excess of that amount; or

  

	 	●	 2.25% of average base salary; or 

 

	 	●	 2.50% of average base salary; 

multiplied by the number of years of credited service (up to 40) less the pension payable under the basic plan. 

Bonuses and any other compensation are not considered in the computation of pension benefits. Benefits are reduced by 0.33% for each
month between the date of early retirement and the date of a participant’s 60th birthday or, if earlier, the date at which the participant’s age plus his/her years of service total 85.
No benefits are payable from the supplemental plan if a participant has not completed five years of service. Upon the death of a participant, the spouse of the participant will be entitled to a benefit equal to 60% of the benefit to which such
participant was entitled. If the participant has no spouse at the time of retirement, the benefits will be paid, after death, to the designated beneficiary until such time as 120 monthly installments, in the aggregate, have been paid to the
participant and/or to the designated beneficiary. 
 All pension benefits payable from these plans are in addition to government
social security benefits. 
 For Fiscal 2018, under the supplemental plan, Messrs. Martel, Scullion, Donnez and Lapointe were
entitled to an accrual rate of pension of 2.25% and Mr. Boisjoli was entitled to an accrual rate of pension of 2.50%. 

  

					
	  

                        
	 	 

	 	  
  

                            
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	 Name
	  	 Number of 
Years
of
Credited
Service(1)
(#)	  	Annual Benefit
Payable	  	Opening
Present
Value of
Defined
Benefit
 Obligation(2) 
($)	  	  Change in Benefit Obligation  
During the Year	  	Closing
Present
Value of
Defined
Benefit
    Obligation(5)    
($)
	  	 At Year 
End
($)	  	At
 Age 65 
($)	  	Compensa-
tory
 Change(3) 
($)	  	Non-
 Compensa 
-
tory
Change(4)
($)
	 José Boisjoli
President and CEO
	  	28.92	  	728,000	  	857,100	  	12,124,000	  	743,000	  	396,000	  	13,263,000
								
	 Sébastien Martel
CFO
	  	13.83	  	129,400	  	340,900	  	1,852,000	  	175,000	  	295,000	  	2,322,000
								
	 Sandy Scullion
Senior Vice-President and
General Manager, Global Retail and Services
	  	23.58	  	141,100	  	299,700	  	2,574,000	  	383,000	  	344,000	  	3,301,000
								
	 Denys Lapointe
Senior Vice-President, Design, Innovation and Corporate Image
	  	32.67	  	249,900	  	322,900	  	4,278,000	  	395,000	  	174,000	  	4,847,000
								
	 Karim Donnez (6)
Senior Vice-President,
Strategy, Business Development and Transformation
	  	2.58	  	16,300	  	183,400	  	139,000	  	88,000	  	44,000	  	271,000

  

	 	(1)	 As at January 31, 2018. 

 

	 	(2)	 For calculations purposes, the same assumptions as those used for the preparation of the consolidated financial
statements of the Company for Fiscal 2017 were used. 

  

	 	(3)	 The compensatory change includes the annual service cost as well as the change in accrued benefit obligation
attributable to the impact of the differences between actual earnings for the year, and those assumed in the previous year’s calculations. 

  

	 	(4)	 The non-compensatory change amount represents the change in the accrued benefit
obligation during the year attributable to items that are not related to earnings, such as assumption changes and interest on the accrued obligation. Key assumptions include a discount rate of 4.05% per year to calculate the accrued benefit
obligation at start of year and 4.30% per year to calculate the annual service cost, and a discount rate of 3.70% to calculate the accrued benefit obligation at year end. The CPM2014 Private Sector Mortality tables (Scale B) are used to calculate
the accrued benefit obligation at start of year, the annual service cost and the benefit obligation at year end. 

  

	 	(5)	 For calculations purposes, the same assumptions as those used for the preparation of the consolidated financial
statements of the Company for Fiscal 2018 were used. 

  

	 	(6)	 While Mr. Donnez has not completed five years of service and is therefore not currently eligible for any payments
under the Supplementary Plan, the figures shown in the above table assume that the benefits are payable under the Supplementary Plan. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Defined Contribution Plans 
  

																
	 Name
	  	Accumulated
  Value at Start  
of Year
($)	  	  Compensatory  
($)	  	    Accumulated    
Value at
Year
End(1)
($)
				
	 Sébastien Martel(2)
CFO
	  	62,000	  	0	  	67,100
				
	 Sandy Scullion(3)
Senior Vice-President and
General Manager, Global Retail and Services
	  	173,000	  	0	  	182,500
				
	 Denys Lapointe(4)
Senior
Vice-President, Design, Innovation and Corporate Image
	  	8,900	  	0	  	9,500

  
  

	(1)	 As at January 31, 2018. 

 

	(2)	 Value accumulated during Mr. Martel’s participation in the Employee Pension Plan, from January 1, 2005
to June 1, 2007. 

  

	(3)	 Value accumulated during Mr. Scullion’s participation in the Employee Pension Plan, from January 1, 1995
to June 1, 2005 

  

	(4)	 Value accumulated during Mr. Lapointe’s participation in the Employee Pension Plan, from June 1, 1986 to
February 1, 1995. 

 Termination and Change of Control Benefits 

The Company has entered into executive employment agreements with each of the NEOs. These agreements provide for, among other things,
the continuation of the executive’s employment for an indeterminate term in accordance with applicable law, as well as such NEO’s base salary, bonus entitlement, vacations, insurance coverage, pension benefits, perquisites and other
matters related to the NEO’s employment. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 The following table describes the entitlement of NEOs in the event of a termination without
cause within 12 months following a Change of Control (as defined in the first footnote below the table). 
  

					
	 	  	 CEO
	  	 CFO, Vice-Presidents and

    General Managers, Senior Vice-

Presidents

			
	 Triggering events (double trigger)
	  	 Termination of employment without cause within 12 months following a Change of
Control(1)
	  	 Termination of employment without cause within 12 months following a Change of
Control(1)

			
	 Severance calculation
	  	 24 months of base salary + target bonus
	  	 18 months of base salary + target bonus

			
	 Method of severance payment
	  	 Lump sum
	  	 Lump sum

			
	 Continuation of benefits (health care, but excluding
disability)(2)(3)
	  	 24 months
	  	 18 months

			
	 Vesting of stock option awards
	  	 Immediate vesting of all unvested stock options
  

180 days after termination to exercise stock options
	  	 Immediate vesting of all unvested stock options
  

180 days after termination to exercise stock options

  
  

	(1)	 “Change of Control” under the relevant employment agreements has the same meaning as ascribed thereto under
the Stock Option Plan, meaning the acquisition by any person or group of persons acting jointly or in concert (other than holders of Multiple Voting Shares and their affiliates) of securities of the Company carrying the right to elect a majority of
the board of directors of the Company. 

  

	(2)	 Car benefits, Company products allowance, financial services and annual medical services cease after 12 months
following the termination. 

  

	(3)	 Health care coverage ceases earlier if new employment found before end of severance period. 

The following table describes the entitlement of NEOs in the event of a termination without cause: 

 

					
	 	  	 CEO
	  	 CFO, Vice-Presidents and

    General Managers, Senior Vice-
Presidents

			
	 Triggering event
	  	 Termination without cause
	  	 Termination without cause

			
	 Severance calculation
	  	 24 months of base salary + target bonus
	  	 12 months of base salary + target bonus

			
	 Method of severance payment
	  	 Monthly installments
	  	 Monthly installments

			
	 Continuation of benefits (health care, but excluding disability)(1)(2)
	  	 24 months
	  	 12 months

			
	 Retirement plan – credit of years of service
	  	 24 months
	  	 12 months

			
	 Vesting of stock option awards
	  	 Forfeiture of all unvested stock options

60 days after termination to exercise vested stock options
	  	 Forfeiture of all unvested stock options 60 days to exercise vested stock options after termination

  

	(1)	 Car benefits, Company products allowance, financial services and annual medical services cease after 12 months
following the termination. 

  

	(2)	 Health care coverage ceases earlier if new employment found before end of severance period. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 The following table sets forth estimates of the amounts payable to each of the NEOs who
were employed by the Company as at the end of Fiscal 2018 upon a termination without cause or upon a termination without cause within 12 months following a Change of Control: 

 

											
	 Name of the NEO
	  	Termination
    Without Cause    
($)	  	Termination
Without Cause
    Within 12 months    
of a
Change of
Control
($)
			
	 José Boisjoli
President and CEO
	  	21,259,062	  	32,508,087
			
	 Sébastien Martel
CFO
	  	3,121,609	  	5,239,358
			
	 Sandy Scullion
Senior Vice-President and General Manager, Global Retail and Services
	  	1,410,850	  	2,373,920
			
	 Denys Lapointe
Senior Vice-President, Design, Innovation and Corporate Image
	  	1,978,855	  	2,926,215
			
	 Karim Donnez
Senior Vice-President, Strategy, Business Development and Transformation
	  	779,527	  	1,638,244

 A NEO is not entitled to receive any payment under the STIP if the effective date of his or her
termination for cause or resignation occurs prior to the end of the fiscal year in respect of which the payout under the STIP is calculated. In addition, on the effective date of a NEO’s termination for cause or resignation, all such NEO’s
vested and unvested options are forfeited and all his or her other benefits are terminated. 
 The Company has also entered into non-competition, non-solicitation and non-disclosure agreements with each of the NEOs. These agreements contain contractual covenants
in favour of the Company, which includes a perpetual confidentiality covenant and a non-competition covenant which applies for a period of two years after the NEO’s termination of employment. NEOs are
also subject to non-solicitation covenants in respect of employees and customers which apply for a period of two years after the NEO’s termination of employment. 

  

					
	  

                        
	 	 

	 	  
  

                            
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	 DISCLOSURE OF CORPORATE GOVERNANCE PRACTICES

 

 Board of Directors 

Independence and Tenure 
 The Board of
Directors is comprised of 13 directors, six of whom are independent. Pursuant to NI 52-110, an independent director is one who is free from any direct or indirect relationship which could, in the
view of the Board of Directors, be reasonably expected to interfere with a director’s exercise of independent judgment. Messrs. Cary, Hanley, O’Neill and Philip and Mses. Métayer and Samardzich are independent under these
standards. Mr. Boisjoli is not independent under these standards as he is the President and Chief Executive Officer of the Company. Messrs. Bekenstein and Robbins are not considered independent because of their relationship with BCI.
Mr. Nomicos is not considered independent by virtue of having received consulting fees in excess of $75,000 in the 12-month period prior to the date of this Circular and because of his prior relationship
with BCI. See “Compensation of Directors”. Messrs. Beaudoin and Laporte are not considered independent as they are part of the management of Beaudier and Mr. Bombardier is not considered independent as he is part of the
management of 4338618. See “General Information - Voting Shares Outstanding and Principal Shareholders”. Although in the view of the Board of Directors such directors are not independent for the
purposes of NI 52-110, 12 of the 13 directors are not members of the Company’s management. 

The Company has taken steps to ensure that adequate structures and processes are in place to permit the Board of Directors to function
independently of management of the Company. For instance, at every regularly scheduled meeting of the Board of Directors, there is a private session where the members of the management, including the President and CEO, are not present. In addition,
any independent director may, at any time, if considered necessary to facilitate open and candid discussion among the independent directors, call a meeting or request an in camera session without management and
non-independent directors. No such meetings were held during Fiscal 2018. 
 The Human
Resources, Nomination and Governance Committee is charged under its charter with selecting candidates for election as independent directors, including replacements for designees of CDPQ, Beaudier Group and/or Bain, as applicable, as and when they
lose the right to designate a member of the Board under the Nomination Rights Agreement. See “Disclosure of Corporate Governance Practices — Board of Directors Committees — Human Resources, Nomination and
Governance Committee” and “Business of the Meeting - Election of Directors”. 

The Board of Directors has not adopted term limits, a retirement policy for its directors or other mechanism of board renewal.
Instead, the HRNGC annually conducts an evaluation of the Board of Directors and of the committees of the Board of Directors to identify areas to improve and implement changes aiming at constantly improving the performance of the Board of
Directors and of its committees. 
 Directorship of Other Reporting Issuers 

Members of the Company’s Board of Directors are also members of the boards of other public companies. See “Business of the
Meeting - Election of Directors - Description of Proposed Director Nominee”. The Board of Directors did not adopt a director interlock policy but is keeping
informed of other public directorships held by its members. As at April 20, 2018, the Company’s directors that served together on any other company’s board of directors were Messrs. Beaudoin and Bombardier who both serve on the board
of directors of Bombardier Inc., and Messrs. Bekenstein and Nomicos who both serve on the board of directors of Dollarama Inc. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Mandate of the Board of Directors 

The Board of Directors is responsible for supervising the management of the Company’s business and affairs. The Board of
Directors’ key responsibilities relate to the stewardship of management, generally through the CEO to pursue the best interests of the Company, and include the following: adopting a strategic planning process, overseeing technologies, capital
investments and projects, identifying risks and ensuring that procedures are in place for the management of those risks, reviewing internal controls and reporting, reviewing and approving annual operating plans and budgets, overseeing corporate
social responsibility and ethics, reviewing the integrity of the CEO and the other executive officers and ensuring that the CEO and other executive officers create a culture of integrity, succession planning, including the appointment, training and
supervision of management, overseeing leadership development and executive compensation, overseeing nomination process for new directors (subject to the charter of the HRNGC and the Nomination Rights Agreement), overseeing the Company’s
corporate governance policies and practices, reviewing and authorizing delegations and general approval guidelines for management, monitoring financial reporting, monitoring internal controls and management information systems, seeking to ensure
that the Company has a corporate disclosure and communications policy in place in accordance with the guidance set out in National Policy 51-201 – Disclosure Standards, adopting measures for
receiving feedback from stakeholders and adopting key corporate policies designed to ensure that the Company, its directors, officers and employees comply with all applicable laws, rules and regulations and conduct their business ethically, with
honesty and integrity and taking into account the Company’s corporate social responsibility. 
 Under its mandate, the Board of
Directors is entitled, among other things, to delegate certain matters it is responsible for to Board committees and to engage outside advisers, at the Company’s expense, where, in its view, additional expertise or advice is required. The text
of the Board of Director’s mandate is attached to this Circular as Schedule A. 
 Position Descriptions 

The Chairman of the Board of Directors and Committee Chairs 

Mr. Laurent Beaudoin is the Chair of the Board of Directors. The Board of Directors has adopted a written position description for
the Chair of the Board of Directors which sets out the chair’s key responsibilities, including duties relating to setting Board of Directors meeting agendas, chairing Board of Directors and shareholder meetings, director development, Board of
Directors, committee and director assessment, the chair’s leadership in ensuring that the Board of Directors works as a cohesive team, monitoring the work of the committees to ensure that delegated projects or responsibilities are carried out
and reported to the Board of Directors and communicating with shareholders and regulators. 
 The Board of Directors has also adopted
a written position description for each of the committee chairs which sets out each of the committee chair’s key responsibilities, including duties relating to setting committee meeting agendas, chairing committee meetings, working with the
respective committee and management to ensure, to the greatest extent possible, the effective functioning of the committee and reporting to the Board of Directors. 

The CEO 
 The primary functions of the CEO
are to lead the day-to-day management of the Company’s business and affairs and to lead the implementation of the resolutions and the policies of the Board of
Directors. 
 The Board of Directors has developed a written position description and mandate for the CEO which sets out the
CEO’s key responsibilities, including duties relating to providing leadership in managing the Company, ensuring that matters requiring decisions by the Board of Directors are brought to its attention in a timely fashion, fostering a corporate
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integrity and that maintains a positive work climate that is conducive to attracting, retaining and motivating top-quality employees, providing leadership
to management in support of the Company’s commitment to corporate social responsibility, ensuring the implementation of the strategic and operating plans approved by the Board of Directors and developing an annual business plan and budget that
supports such strategic plan, identifying and managing risks related to the business of the Company, ensuring the accuracy, completeness and integrity of the Company’s corporate disclosure, develop and implement an effective communications
policy, serving as a spokesperson for the Company and ensuring proper communication between the Company’s management and the Board of Directors. 
 
Board of Directors Committees 
 The Board of Directors ensures that the composition of its committees meets applicable
statutory independence requirements as well as any other applicable legal and regulatory requirements. 
 Audit Committee 

The Audit Committee must be composed of a minimum of three directors, each of whom is independent and meets the criteria for financial
literacy established by applicable laws, including NI 52-110. The Audit Committee is composed of Messrs. Cary, Hanley and O’Neill, and Ms. Métayer, all of whom are independent and meet
the criteria for financial literacy established by applicable laws, including NI 52-110. Mr. Hanley is the chair of the Audit Committee. 

The Board has adopted a written charter describing the mandate of the Audit Committee. The charter of the Audit Committee reflects the
purpose of the Audit Committee, which is to assist the Board of Directors in fulfilling its oversight responsibilities with respect to ensuring that adequate procedures are in place for the review of the Company’s public disclosure documents
that contain financial information, ensuring that an effective internal audit process has been implemented, ensuring that an effective risk management and financial controls framework has been implemented and tested by the Company’s management,
providing better communication between directors, management, internal auditors and external auditors, overseeing the work and reviewing the independence of the external auditors and reporting to the Board of Directors on any outstanding issue. 

Additional information relating to the Audit Committee can be found in the section entitled “Audit Committee Information” of
the Company’s annual information form available on SEDAR at www.sedar.com. 
 Human Resources, Nomination and Governance Committee 

The Human Resources, Nomination and Governance Committee must be composed of five directors, a majority of whom are independent. The
HRNGC is currently composed of Messrs. Bekenstein, Hanley, Laporte, O’Neill and Philip. All members of the HRNGC have a working familiarity with corporate governance, human resources and compensation matters. Mr. Bekenstein is the
chair of the HRNGC. 
 The Board of Directors has adopted a written charter describing the mandate of the HRNGC. The charter of the
HRNGC reflects the purpose of the HRNGC, which is to assist the Board of Directors in fulfilling its oversight responsibilities with respect to the establishment of key human resources and compensation policies (including all incentive and equity
based compensation plans), the performance evaluation of the CEO and the CFO, the determination of the compensation for the CEO, the CFO and other senior executives of the Company, succession planning (including the appointment, training and
evaluation of senior management), the compensation of directors, identifying individuals qualified to be nominated as members of the Board of Directors (subject to the terms of the Nomination Rights Agreement), developing corporate governance
guidelines and principles for the Company, assessing the structure, composition, performance and effectiveness of Board of Directors committees, evaluating the 

  

					
	  

                        
	 	 

	 	  
  

                            
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performance and effectiveness of the Board of Directors and reporting to the Board of Directors on any outstanding issue. 

In order to encourage an objective process for determining compensation, the HRNGC retains, as needed, the services of a global
professional services firm and conducts extensive benchmarking. See “Executive Compensation — Discussion and Analysis – Compensation Consulting Services”. The HRNGC also intends to annually conduct an assessment of
the performance and effectiveness of the Board of Directors and of the committees of the Board of Directors to evaluate their contribution. 

The charter of the HRNGC also provides that the committee is charged with selecting candidates for election as directors, including
replacements for designees of CDPQ, Beaudier Group and/or Bain, as applicable, as and when they lose their rights to designate directors under the Nomination Rights Agreement. In identifying new candidates for the Company’s Board of Directors,
the HRNGC will consider what competencies and skills the Board of Directors, as a whole, should possess, assess what competencies and skills each existing director possesses, considering the Board of Directors as a group, with each individual making
his or her own contribution, the personality and other qualities of each director and the overall diversity of the Board of Directors as these may ultimately determine the boardroom dynamic. Individuals selected as nominees shall have the highest
personal and professional integrity, shall have demonstrated exceptional ability and judgment and shall, in the opinion of the HRNGC, be most effective, in conjunction with the other directors, in collectively serving the long-term interests of the
shareholders. 
 The following matrix provides a summary of the competencies, skills, experience and expertise that each serving
director possesses as well as other information that may be relevant for purposes of identifying new directors. 
  
 

 
  
 (1)
Nominees marked with “C” are Chair persons. 
 In fulfilling its duties regarding the selection of new candidates to the
Board of Directors, the HRNGC retains from time to time the services of an outside advisory firm in order to provide additional expertise and encourage an objective nominating process. 

Finally, the HRNGC is also responsible for monitoring the succession planning process for the executive officers and other key members
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of the President and Chief Executive Officer. During Fiscal 2018, the HRNGC has reviewed the organization’s structure in light of recent changes and potential future changes as well as the
succession plan status for all executive officers. The objective of the succession planning process is to identify individuals who are able to move into key leadership roles not only in the normal course of the Company’s growth but also in the
event of an unplanned vacancy, and to assist these individuals in developing their skills and competencies and, if there are gaps in readiness, to identify roles for which an external talent search may be required. The directors, including the
members of the HRNGC, also meet with members of the management team through their participation in meetings and presentations to the Board of Directors and its committees, as well as occasionally through site visits or informal meetings throughout
the year, which allows directors to identify and get better acquainted with members of the management team who are potential future leaders of the Company and to obtain a broader perspective on issues relevant to the Company. 

The charter of the HRNGC may not be amended without the written consent of each Principal Shareholder party to the Nomination Rights
Agreement at the relevant time. In addition, for so long as each of Bain and the Beaudier Group continue to have the right to designate at least one member of the Board of Directors, each will have the right to appoint one member of the Board of
Directors to the Human Resources, Nomination and Governance Committee. See “Disclosure of Corporate Governance Practices — Nomination Rights Agreement”. 

Investment and Risk Committee 
 The
investment and risk committee of the Company (the “Investment and Risk Committee”) is composed of a minimum of three directors. The Investment and Risk Committee is currently composed of Messrs. Laporte, Boisjoli, Nomicos and
Philip and Ms. Samardzich. All members of the Investment and Risk Committee have a working familiarity with corporate finance and investment matters. Mr. Louis Laporte is the Chair of the Investment and Risk Committee. 

The Board of Directors has adopted a written charter describing the mandate of the Investment and Risk Committee. The charter of the
Investment and Risk Committee reflects the purpose of the Investment and Risk Committee, which is to assist the Board of Directors in fulfilling its oversight responsibilities with respect to the Company’s risk management practices, proposed
issues of securities and the utilization of financial instruments, reviewing and then approving or rejecting proposed significant transactions (including proposed acquisitions and dispositions of assets or properties), reviewing and approving or
rejecting proposed significant capital expenditures and reporting to the Board of Directors on any outstanding issue. 
 Orientation and
Continuing Education 
 The Company follows an orientation program for new directors under which a new director will meet
separately with the Chair of the Board of Directors, with individual directors and members of the senior executive team. A new director will be presented with the Board of Directors policies and procedures, the Company’s current strategic plan,
financial plan and capital plan, the most recent annual and quarterly reports and materials relating to key business issues. A new director will also be visiting selected facilities. 

The chair of each committee is responsible for coordinating orientation and continuing director development programs relating to the
committee’s mandate. The Chair of the Board of Directors is responsible for instituting learning programs for directors. All members of the Board of Directors are members of the Institute of Corporate Directors – a recognized professional
association – which provides access to information, events and training on directors’ role and obligations, and on governance. The membership fees are paid by the Company. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Code of Ethics 

The Company has a written code of ethics (the “Code of Ethics”) that applies to all directors, officers, management and
employees of the Company, including those employed by subsidiaries. The objective of the Code of Ethics is to provide guidelines for maintaining the integrity, reputation, honesty, objectivity and impartiality of the Company, its subsidiaries and
business units. The Code of Ethics addresses matters relating to conflicts of interest, political activity, communication with media, corrupt practices, acceptance of gifts, health, safety and environment, alcohol and drugs, protection of the
Company’s assets, confidentiality, fair dealing with the Company’s securityholders, customers, suppliers, competitors and employees, compliance with laws and reporting any illegal or unethical behavior. As part of the Company’s Code
of Ethics, any person subject to the Code of Ethics is required to avoid or fully disclose interests or relationships that are harmful or detrimental to the Company’s best interests or that may give rise to real, potential or the appearance of
conflicts of interest. 
 Under the Code of Ethics, members of the Board of Directors are required to disclose any conflict of
interest or potential conflict of interest to the entire Board of Directors as well as any committee on which they serve. A director who has a material interest in a matter before the Board of Directors or any committee on which he or she serves is
required to disclose such interest as soon as the director becomes aware of it. In situations where a director has a material interest in a matter to be considered by the Board of Directors, such director may be required to absent himself or herself
from the meeting while discussions and voting with respect to the matter are taking place. Directors will also be required to comply with the relevant provisions of the Canada Business Corporations Act regarding conflicts of interest. 

The Human Resources, Nomination and Governance Committee is responsible for assisting the Board of Directors in reviewing and updating
the Code of Ethics periodically, reviewing the system that the Company’s management will establish to enforce the Code of Ethics and reviewing management’s monitoring of the Company’s compliance with the Code of Ethics. In addition,
the Audit Committee reviews on a quarterly basis the minutes of the Compliance and Ethics Committee, a committee comprised of members of the Company’s management whose mandate is, amongst others, to oversee compliance with the Code of Ethics
and corporate policies. The Audit Committee also reviews on a quarterly basis all complaints related to the policy of the Company on Complaints of Illegal or Unethical Conduct. Finally, each director signs annually a document attesting that they
read the Code of Ethics, and where they must disclose whether, to their knowledge, there has been any conduct of a director or executive officer that constitutes or constituted a departure from the Code of Ethics in the last year. 

The Code of Ethics is available on SEDAR at www.sedar.com. 

Diversity 
 As a
truly global company, the Company and its Board of Directors are committed to create an environment built upon diversity, inclusion and fairness values and practices. The Company believes that attracting, developing and retaining employees,
including senior executives that reflect diversity is an important element of its long-term sustainability as it mirrors its customers across the world. 

The Board of Directors has recently adopted a diversity statement memorializing its commitment to those principles. The Company does not
have a written policy relating to the identification and nomination of women on the Board of Directors or in executive positions though it considers diversity of race, ethnicity, gender, age, cultural background and professional experience in
evaluating candidates for Board of Directors membership and appointment to executive positions. The Company does not have a target of women on the Board of Directors or in executive positions because it does not believe that any candidate for
membership to the Board of Directors or for an executive officer position should be chosen nor excluded solely or largely because of gender. In selecting director nominee or executive candidates, the Company considers the skills, expertise and
background that would complement the existing Board of Directors and management team. Directors and executive officers will be recruited based on their ability 

  

					
	  

                        
	 	 

	 	  
  

                            
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and contributions. The Company has two women on its Board of Directors, being 15.4% of the 13 directors, and three women executive officers, being 25% of the 12 executive officers. The Board of
Directors estimates that diversity is a critical factor in its renewal process in order to bring richness in its decision-making process. 
 
Nomination Rights Agreement 
 Bain, Beaudier Group and CDPQ have certain rights to designate members of the Board of
Directors pursuant to the Nomination Rights Agreement, which provide that the Principal Shareholders party thereto at the relevant time will cast all votes to which they are entitled to fix the size of the Board of Directors at 13 members and
to elect members of the Board of Directors in accordance with the provisions thereof. 
 Bain is now entitled to designate three
members of the Board of Directors and will continue to be entitled to designate such number of directors for so long as it holds more than 10% of the number of Multiple Voting Shares it held on May 29, 2013 (the “Bain IPO
Shares”). Bain will only be entitled to designate one member of the Board of Directors once it holds 10% or less of the Bain IPO Shares. In the event that Bain holds 10% or less of the Bain IPO Shares, it will lose the right to designate
its final member of the Board of Directors once the Multiple Voting Shares held by Bain represent less than 2.5% of the aggregate number of outstanding Multiple Voting Shares and Subordinate Voting Shares (it being understood that the number of
Multiple Voting Shares shall be added to the number of Subordinate Voting Shares for purposes of such calculation). 
 Beaudier Group
is entitled to designate three members of the Board of Directors and will continue to be entitled to designate such number of directors for so long as it holds more than 10% of the number of Multiple Voting Shares it held on May 29, 2013 (the
“Beaudier Group IPO Shares”). Beaudier Group will only be entitled to designate one member of the Board of Directors once it holds 10% or less of the Beaudier Group IPO Shares. In the event that Beaudier Group holds 10% or less of
the Beaudier Group IPO Shares, it will lose the right to designate its final member of the Board of Directors once the Multiple Voting Shares held by Beaudier Group represent less than 2.5% of the aggregate number of outstanding Multiple Voting
Shares and Subordinate Voting Shares (it being understood that the number of Multiple Voting Shares shall be added to the number of Subordinate Voting Shares for purposes of such calculation). 

CDPQ is entitled to designate one member of the Board of Directors for so long as it holds a number of Multiple Voting Shares that is
more than 10% of Beaudier Group IPO Shares. In the event that CDPQ holds a number of Multiple Voting Shares that is 10% or less of the Beaudier Group IPO Shares, it will lose the right to designate its member of the Board of Directors once the
Multiple Voting Shares held by it represent less than 2.5% of the aggregate number of outstanding Multiple Voting Shares and Subordinate Voting Shares (it being understood that the number of Multiple Voting Shares shall be added to the number of
Subordinate Voting Shares for purposes of such calculation). 
 In accordance with the terms of the Nomination Rights Agreement, the
Human Resources, Nomination and Governance Committee is charged under its charter with selecting candidates for election as independent directors, including replacements for designees of Bain, Beaudier Group and/or CDPQ, as applicable, as and when
they lose the right to designate a member of the Board under the Nomination Rights Agreement. See “Disclosure of Corporate Governance Practices — Board of Directors Committees — Human Resources, Nomination and
Governance Committee”. 
 The Nomination Rights Agreement provides that all parties thereto at the relevant time will cast all
votes to which they are entitled in favor of each individual nominated for election to the Board of Directors by the Human Resources, Nomination and Governance Committee as an independent director. 

Pursuant to the terms of the Nomination Rights Agreement, the Board of Directors will have the Audit Committee, the Investment and Risk
Committee and the Human Resources, Nomination and 

  

					
	  

                        
	 	 

	 	  
  

                            
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Governance Committee. For so long as Bain and Beaudier Group have the right to designate at least one member of the Board of Directors, each will have the right to appoint one member of the Board
of Directors to the Human Resources, Nomination and Governance Committee. 
 Bain, Beaudier Group and CDPQ will cease to be a party to
the Nomination Rights Agreement and to have rights and obligations thereunder immediately upon ceasing to have the right to designate any director pursuant to such agreement. The provisions of the Nomination Rights Agreement will terminate at such
time as only one of Bain, Beaudier Group or CDPQ has the right to designate a member of the Board thereunder. 
 Majority Voting Policy

 The Company does not employ the practice of “slate voting” and, as such, at meetings of shareholders where directors
are to be elected, shareholders of the Company are entitled to vote in favour of, or to withhold from voting, separately for each director nominee. The Company ensures that the number of shares voted in favor or withheld from voting for each
director nominee is recorded and promptly disclosed after the meeting. 
 The Board of Directors adopted a majority voting policy in
order to promote enhanced director accountability. The policy stipulates that, in an “uncontested election” (as defined below) of directors, any nominee who receives a greater number of votes “withheld” than votes “for”
his or her election will promptly tender his or her resignation to the Chair of the Board of Directors for consideration. Absent exceptional circumstances, the Board of Directors will accept the resignation. A press release disclosing the Board
of Directors’ determination (and the reasons for rejecting the resignation, if applicable) shall be issued within 90 days following the date of the meeting of shareholders. A copy of such press release shall be sent concurrently to
the TSX. The resignation will become effective when accepted by the Board of Directors. 
 Subject to any restrictions imposed by law,
in the case where the Board of Directors accepts any tendered resignation in accordance with the majority voting policy, the Board of Directors may fill the vacancy through the appointment of a new director, leave the vacancy unfilled until the next
annual meeting of shareholders, reduce the size of the Board of Directors, leave any vacancy open until the next annual general meeting of the shareholders of the Company or call a special meeting of shareholders during which a new candidate will be
presented to fill the vacant position. 
 The policy only applies in circumstances involving an uncontested election of directors. For
purposes of the majority voting policy, an “uncontested election” means any meeting of shareholders called for, either alone or with other matters, the election of directors, with respect to which the number of nominees for election
is equal to the number of positions on the Board of Directors to be filled through the election to be conducted at such meeting. 

Advance Notice Requirements for Director Nominations 

The Company has adopted an advance notice by-law (the “Advance Notice By-law”) for the purpose of providing shareholders, directors and management of the Company with a clear framework for nominating directors of the Company in connection with any annual or special meeting of
shareholders. 
 The purpose of the Advance Notice By-law is to (i) ensure that all
shareholders receive adequate notice of director nominations and sufficient time and information with respect to all nominees to make appropriate deliberations and register an informed vote; and (ii) facilitate an orderly and efficient process
for annual or special meetings of shareholders of the Company. The Advance Notice By-law fixes the deadlines by which holders of record of Shares must submit director nominations to the Company prior to any
annual or special meeting of shareholders and sets forth the information that a shareholder must include in a timely written notice to the Company for any director nominee to be eligible for election at such annual or special meeting of
shareholders. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Pursuant to the Advance Notice By-Law, shareholders
seeking to nominate candidates for election as directors must provide timely written notice to the Company’s Secretary at its principal executive offices. To be timely, a shareholder’s notice must be received (i) in the case of an
annual meeting of shareholders, not less than 30 days nor more than 65 days prior to the date of the annual meeting; provided, however, that in the event that the annual meeting of shareholders is to be held on a date that is less than 50 days after
the date on which the first public announcement of the date of the annual meeting was made, notice by the shareholder may be received not later than the close of business on the 10th day following
the date of such public announcement; and (ii) in the case of a special meeting (which is not also an annual meeting) of shareholders called for the purpose of electing directors, not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made. The Company’s by-laws also prescribe the proper
written form for a shareholder’s notice. The Board of Directors may, in its sole discretion, waive any requirement under these provisions. These provisions shall be automatically repealed and cease to have effect upon the termination of the
Nomination Rights Agreement. 
 For the purposes of the Advance Notice By-law, “public
announcement” means disclosure in a press release reported by a national news service in Canada, or in a document publicly filed by the Company under its profile on SEDAR at www.sedar.com. The Advance Notice
By-law will be subject to review by the Board of Directors, and will be updated from time to time to reflect changes required by securities regulatory agencies or stock exchange, or to conform with industry
standards. 
 Indemnification and Insurance 

The Company has implemented a director and officer insurance program and has entered into indemnification agreements with each of its
directors and executive officers. The indemnification agreements generally require that the Company indemnify and hold the indemnitees harmless to the greatest extent permitted by law for liabilities arising out of the indemnitees’ service to
the Company as directors and executive officers, provided that the indemnitees acted honestly and in good faith and in a manner the indemnitees reasonably believed to be in or not opposed to the Company’s best interests and, with respect to
criminal and administrative actions or proceedings that are enforced by monetary penalty, the indemnitees had no reasonable grounds to believe that his or her conduct was unlawful. The indemnification agreements also provide for the advancement of
defence expenses to the indemnitees by the Company. 

  

					
	  

                        
	 	 

	 	  
  

                            
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	 ADDITIONAL INFORMATION

 

 Indebtedness of Directors and Executive Officers 

None of the directors or proposed director nominees, executive officers, employees, former directors, former executive officers or
former employees of the Company or any of its subsidiaries, and none of their associates, is or has, at any time since the beginning of the Company’s most recently completed fiscal year, been indebted to the Company or any of its subsidiaries.
Additionally, the Company or any of its subsidiaries has not provided any guarantee, support agreement, letter of credit or other similar agreement or understanding in respect of any indebtedness of any such person to any person or entity, except
for routine indebtedness as defined under applicable securities legislation. 
 Interest of Certain Persons and Companies in Matters to
be Acted Upon 
 No director, proposed director nominee or officer of the Company, or any person who has been a director or
officer of the Company at any time since the beginning of the Company’s last fiscal year, nor any associate or affiliate of any such person, has any material interest, direct or indirect, by way of beneficial ownership of securities or
otherwise, in any matter to be acted upon at the Meeting, other than as set forth herein. 
 Interest of Informed Persons in Material
Transactions 
 Other than as set out below or as described elsewhere in this Circular, management of the Company is not aware of
any material interest, direct or indirect, of any informed person of the Company, any proposed director nominee, or any associate or affiliate of any informed person or proposed director nominee, in any transaction since the commencement of the
Company’s most recently completed fiscal year or in any proposed transaction that has materially affected or would materially affect the Company or any of its subsidiaries. 

Reimbursement to Bombardier Inc., a company related to Beaudier Group 

Pursuant to the purchase agreement entered into in 2003 in connection with the acquisition of the recreational products business of
Bombardier Inc., the Company is required to reimburse to Bombardier Inc. income taxes amounting to $22.0 million as of January 31, 2018. The reimbursement will begin when Bombardier Inc. starts making any income tax payments in Canada
and/or the United States. 
 In addition, in connection with the above-mentioned transaction, the Company entered into a trademark
license agreement whereby it has the right to continue to use certain trademarks of Bombardier Inc. which were not otherwise assigned to the Company in connection with such transaction, subject to certain conditions. The license allows the Company
to use “Bombardier” in the corporate name of certain subsidiaries of the Company as long as, among other things, Beaudier Group maintains at least a 10% voting or equity interest in the Company. 

  

					
	  

                        
	 	 

	 	  
  

                            
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 Available Information 

The Company is required under applicable Canadian securities laws to file various documents, including financial statements. Financial
information is provided in the comparative consolidated financial statements of the Company for Fiscal 2018, together with the notes thereto, the independent auditor’s report thereon and the related management’s discussion and analysis.
Copies of these documents and additional information concerning the Company can be found on SEDAR (www.sedar.com). Copies of the Company’s financial statements and MD&A can also be obtained upon request made to the Senior Vice-President,
General Counsel and Public Affairs of the Company, Mr. Martin Langelier, at the head office: 726 Saint-Joseph Street, Valcourt, Québec, J0E 2L0. 

Shareholder Proposals for Next Annual Meeting of Shareholders 

The Company received no shareholder proposal for inclusion in this Circular. The Company will include proposals from shareholders that
comply with applicable laws in next year’s management proxy circular for its next annual shareholder meeting to be held in respect of the fiscal year ending on January 31, 2019. Shareholder proposals must be received prior to the close of
business on January 20, 2019 and be sent to the Senior Vice-President, General Counsel and Public Affairs of the Company, Mr. Martin Langelier, at the head office: 726 Saint-Joseph Street, Valcourt, Québec, J0E 2L0. 

Approval by Directors 

The contents and the sending to the shareholders of this Circular have been approved by the Board of Directors of the Company. 

Dated at Valcourt, this 20th day of April, 2018. 

 
 

 
 Martin Langelier 

Senior Vice-President, General Counsel and Public Affairs 

  

					
	  

                        
	 	 

	 	  
  

                            
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SCHEDULE A
  

 BRP INC. 

MANDATE OF THE BOARD OF DIRECTORS 
 1.0
        Introduction 
 The board of directors (the “Board”) of BRP Inc. (the
“Company”) is responsible for the stewardship of the Company. Its members (the “Directors”) are elected by shareholders of the Company. The purpose of this mandate is to describe the principal duties and responsibilities of the
Board, as well as some of the policies and procedures that apply to the Board in discharging its duties and responsibilities. 

2.0      Purpose 
 Pursuant to
applicable laws, in exercising their powers and discharging their duties, Directors must act honestly and in good faith with a view to the best interest of the Company, and must exercise the care, diligence and skill that a reasonably prudent person
would exercise in comparable circumstances, both as Directors and as committee members. Directors are ultimately accountable and responsible for providing independent, effective leadership in supervising the management of the business and affairs of
the Company. The responsibilities of the Board include: 
  

	 	●	 	 adopting a strategic planning process; 

 

	 	●	 	 overseeing technologies, capital investments and projects; 

 

	 	●	 	 reviewing and approving annual operating plans and budgets; 

 

	 	●	 	 monitoring financial reporting and management; 

 

	 	●	 	 risk identification and ensuring that procedures are in place for the management of those risks; 

 

	 	●	 	 reviewing internal controls and reporting; 

 

	 	●	 	 monitoring internal controls and management information systems; 

 

	 	●	 	 delegating to management and providing general approval guidelines for management; 

 

	 	●	 	 succession planning, including the appointment, training and supervision of management; 

 

	 	●	 	 overseeing leadership development and executive compensation; 

 

	 	●	 	 corporate disclosure and communications; 

 

	 	●	 	 adopting measures for receiving feedback from stakeholders; 

 

	 	●	 	 corporate social responsibility, ethics and integrity; 

 

	 	●	 	 reviewing the integrity of the Chief Executive Officer (“CEO”) and the other executive officers and ensuring
that the CEO and other executive officers create a culture of integrity; 

  

	 	●	 	 adopting key corporate policies designed to ensure that the Company, its Directors, officers and employees comply with
all applicable laws, rules and regulations and conduct their business ethically and with honesty and integrity; 

  
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	 	●	 	 overseeing the Company’s corporate governance policies and practices; and 

 

	 	●	 	 overseeing the nomination process for new Directors. 

3.0       Composition and Membership 

The Board shall be comprised of that number of Directors as shall be determined from time to time by the Board upon recommendation of the Human
Resources, Nomination and Governance Committee of the Board. 
 Directors must have an appropriate mix of skills, knowledge and experience in business
and an understanding of the industry and the geographical areas in which the Company operates. Directors selected should be able to commit the requisite time for all of the Board’s business. Directors should make all reasonable efforts to
attend all Board and committee meetings and should review the materials provided by management in advance of the Board and committee meetings. A Chairman of the Board shall be appointed by the Board. 

Without limiting the foregoing, Directors are expected to possess the following characteristics and traits: 

 

	 	●	 	 demonstrate high ethical standards and integrity in their personal and professional dealings; 

 

	 	●	 	 provide independent judgment on a broad range of issues; and 

 

	 	●	 	 understand and challenge the key business plans and the strategic direction of the Company. 

4.0       Meetings 
 Meetings
of the Board will be held at such times and places as the Chairman may determine, but in any event not less than five (5) times per year. Directors may attend all meetings either in person, videoconference or by telephone. 

The Chairman, if present, will act as the chairman of meetings. If the Chairman is not present at a meeting, the directors will appoint another director
to act as Chairman of the meeting. The Secretary of the Company (the “Secretary”) will be the secretary of all meetings and will maintain minutes of all meetings and deliberations of the Board. If the Secretary is not in attendance at any
meeting, the Board will appoint another person who may, but need not, be a Director to act as the secretary of that meeting. 
 Subject to any
agreement between the shareholders of the Company: 
  

	 	●	 	 a majority of Directors will constitute a quorum for a meeting of the Board; 

 

	 	●	 	 each Director will have one vote and decisions of the Board will be made by an affirmative vote of the majority;

  

	 	●	 	 the Chairman will not have a deciding or casting vote in the case of an equality of votes; and 

 

	 	●	 	 the powers of the Board may also be exercised by written resolutions signed by all Directors. 

The Board may invite from time to time such persons as it sees fit to attend its meetings and to take part in the discussion and consideration of the
affairs of the Board. On the occasion of each Board meeting, independent Directors will consider if an in camera meeting, under the chairmanship of an independent director, would be appropriate. The Independent Director chairing such in camera
meetings will forward to the Chairman and to the CEO any questions, comments or suggestions of the Directors. 
 In advance of every meeting of the
Board, the Chairman, with the assistance of the Secretary, will prepare and distribute to the Directors and others as deemed appropriate by the Chairman, an agenda of 

  
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matters to be addressed at the meeting together with appropriate briefing materials. The Board may require officers and employees of the Company to produce such information and reports as the
Board may deem appropriate in order for it to fulfill its duties. 
 Directors will maintain the absolute confidentiality of the deliberations and
decisions of the Board and its committees and information received at any meeting, except as may be required by law or as may be determined, from time to time, by the Board, or if the information is publicly disclosed by the Company. 

5.0      Duties and Responsibilities 

The Board will delegate responsibility for the day-to-day management of
the Company’s business and affairs to the Company’s senior officers and will supervise such senior officers appropriately. 
 The Board may
delegate certain matters it is responsible for to Board committees, presently consisting of the Audit Committee, the Human Resources, Nomination and Governance Committee and the Investment and Risk Committee. 

The principal duties and responsibilities of the Board as they relate to the following matters, include: 

5.1.         Strategic Planning Process 

The Board will adopt, at least on an annual basis, a strategic planning process to establish objectives, goals, vision and mission statement for the
Company’s business, and which takes into account the opportunities and risks of the Company’s business and affairs. The Board will review, approve and modify as appropriate the strategies/business plan proposed by senior management to
achieve such objectives and goals, and monitor the implementation of such planning process on an ongoing basis. 
 The Board will monitor, review and
approve all major corporate decisions and transactions and serve as an advisor to management on strategic initiatives. 
 5.2.
        Technologies, Capital Investment, Projects 
 The Board will monitor the development cycle of
all new products and technologies to determine whether development is in line with strategic planning and budgets, ensure that sufficient funds are allocated to research and development of new products and technologies and review the compliance of
any capital expenditures delegations. 
 5.3.         Risk Management 

Periodically, the Board, in conjunction with management and Board committees will identify the principal risks of the Company’s business, including
those related to compensation and incentive plans and oversee management’s implementation of appropriate systems to effectively monitor, manage and mitigate the impact of such risks. The Board shall oversee the timely disclosure of any such
material risk and of the process to monitor and mitigate it. 
 5.4.         Internal Controls and Reporting

 The Board will oversee the Company’s major financial and operational risk and discuss them with management, internal auditors and
external auditors. The Board will monitor the adequacy and effectiveness of the accounting and financial controls and the steps taken by management to control risk exposure. 

5.5.         Succession Planning, Appointment and Supervision of Management 

The CEO will be appointed by the Board, after considering the recommendation of the Human Resources, Nomination and Governance Committee, for such term
as the Board may determine. 

  
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 The Board will approve the succession plan for the CEO and the CEO’s succession plan for senior
management of the Company, including their selection and appointment, and will review the objectives, performance and compensation of the CEO and senior management of the Company. 

To the extent feasible, the Board shall satisfy itself as to the integrity of the CEO and the other executive officers and take reasonable measures to
ensure that the CEO and other executive officers create a culture of integrity throughout the organization. 
 The Board will ensure that the
compensation plans and programs create and reinforce good conduct, ethical behaviors and promote reasonable risk taking, and will ensure that processes are in place for the recruitment, training, development and retention of senior executives who
exhibit high standards of integrity and competence. 
 5.6.         Communication and Public Disclosure 

The Board shall adopt communication policies, including the Company’s Disclosure Policy and Insider Trading Policy, and monitor investor relations
programs and communications with analysts, the media and the public, including measures for receiving feedback from the Company’s stakeholders. The Company’s communications policies should address how the Company interacts with analysts,
other key stakeholders and the public, and contain measures for the Company to comply with its continuous and timely disclosure obligations and to avoid selective disclosure. The Company shall approve, and as required, oversee compliance with the
Company’s communications policies by Directors, officers and other management personnel and employees. 
 5.7.
        Governance and Nomination 
 Subject to the terms of any agreement between shareholders of the
Company and the Company, the Board will approve the selection criteria and nomination procedure for new Directors, review the independence of Directors, determine the remuneration of Directors and oversee orientation and continuing education of new
Directors. 
 Subject to the terms of any agreement between shareholders of the Company and the Company, the Board will identify the Board nominees
for election at the annual meeting of shareholders or the nominees to fill Board vacancies. 
 Subject to the terms of any agreement between
shareholders of the Company and the Company, the Board will monitor the size and composition of the Board to ensure effective decision-making, and oversee management in the competent and ethical operation of the Company. 

The Board will review and approve of the Company’s governance policies and practices and any update, amendment or restatement thereof and ensure
that such policies comply with applicable legislation and stay current with best practices in corporate governance. 
 5.8.
        Pension fund matters 
 The Board will monitor and review the Company’s pension fund
investment policies and practices, in the context of pension plan liabilities. 
 5.9.         Environmental matters

 The Board will monitor and review, as appropriate, the Company’s environmental policies and practices and oversee their compliance
with applicable legal and regulatory requirements. 

  
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 5.10.         Occupational health and safety matters 

The Board will monitor and review, as appropriate, the Company’s occupational health and safety policies and practices and oversee their compliance
with applicable legal and regulatory requirements. 
 6.0      Limitations on Board’s Duties 

Notwithstanding the foregoing and subject to applicable law, nothing contained in this Charter is intended to require the Board to ensure the
Company’s compliance with applicable laws or regulations. 
 In contributing to the Board’s discharge of its duties under this mandate, each
Director shall be obliged only to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Nothing in this mandate is intended or may be construed as imposing on any Director a standard of
care or diligence that is in any way more onerous or extensive than the standard to which the Directors are subject. 
 The Board may, from time to
time, permit departures from the terms hereof, either prospectively or retrospectively. The terms contained herein are not intended to give rise to civil liability on the part of the Company or its directors or officers to shareholders, security
holders, customers, suppliers, competitors, employees or other persons, or to any other liability whatsoever on their part. 
 7.0
      Corporate Policies 
 The Board will adopt and monitor compliance of the policies and procedures, which are
designed to ensure that the Company, its Directors, officers and employees comply with all applicable laws, rules and regulations and conduct the Company’s business ethically and with honesty and integrity. Principal policies consist of: 

 

	 	●	 	 Code of Ethics; 

  

	 	●	 	 Disclosure and Insider Trading Policy; and 

 

	 	●	 	 Complaints of Illegal or Unethical Conduct Policy. 

8.0       Access to Information and Authority 

The Board will be granted unrestricted access to all information regarding the Company that is necessary or desirable to fulfill its duties. 

The Board has the authority to retain, at the Company’s expense, independent legal, financial, compensation consulting and other advisors,
consultants and experts, to assist the Board in fulfilling its duties and responsibilities, including sole authority to retain and to approve any such firm’s fees and other retention terms. 

9.0       Review of Mandate 

The Human Resources, Nomination and Governance Committee will annually review and assess the adequacy of this mandate and recommend any proposed changes
to the Board for consideration. The Board may, from time to time, amend this Mandate. The Board will satisfy itself that regular assessments of the Chairman, the Directors as a whole (including any committees) and of individual Directors, if deemed
appropriate, are carried out in order to enhance their performance. 

  
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SCHEDULE B
  

 ORDINARY RESOLUTION APPROVING THE STOCK OPTION PLAN AMENDMENTS 

“BE IT RESOLVED THAT:  
  

	1.	 The maximum number of subordinate voting shares (“Shares”) of BRP Inc. (the
“Company”) issuable under the Company’s stock option plan adopted effective as of May 29, 2013 (the “Stock Option Plan”) be increased by 5,000,000 Shares from 5,814,828 Shares to 10,814,828 Shares (the
“Stock Option Plan Reserve”), and the Stock Option Reserve only apply to grants made under the Stock Option Plan. In order to reflect the foregoing, Section 2.2(3) of the Stock Option Plan shall be amended to read as follows:

 “The maximum number of Shares issuable under this Plan in respect of Options shall be equal to 10,814,828
Shares. If an Option Expires, is forfeited, or is cancelled for any reason, the Shares subject to that Option shall again be available for grants under the Plan, subject to any required prior approval by the Stock Exchange.” 

 

	2.	 The maximum number of Shares issuable to Insiders (as such term is defined in the Stock Option Plan) of the Company
under the Stock Option Plan and any other share compensation arrangement shall be increased from 5% of the Shares and multiple voting shares issued and outstanding from time to time to 10% of the Shares and multiple voting shares issued and
outstanding from time to time. In order to reflect the foregoing, Section 2.3(1) of the Stock Option Plan shall be amended to read as follows: 

“The maximum number of Shares issuable to Insiders at any time pursuant to the exercise of Options granted under this Plan,
including Shares issuable under the Rollover Option Plan and any other Share Compensation Arrangement, shall not exceed ten percent (10%) of the Shares and Multiple Voting Shares issued and outstanding from time to time (calculated on a non-diluted basis).” 
  

	3.	 The maximum number of Shares issued to insiders of the Company within any one year period under the Stock Option Plan
and any other share compensation arrangement shall be increased from 5% of the Shares and multiple voting shares issued and outstanding from time to time to 10% of the Shares and multiple voting shares issued and outstanding from time to time. In
order to reflect the foregoing, Section 2.3(2) of the Stock Option Plan shall be amended to read as follows: 

“The maximum number of Shares issued to Insiders within any one year period pursuant to the exercise of Options granted under this
Plan, including Shares issued under the Rollover Option Plan and any other Share Compensation Arrangement, shall not exceed ten percent (10%) of the Shares and Multiple Voting Shares issued and outstanding from time to time (calculated on a non-diluted basis).” 
  

	4.	 The amendment provisions of the Stock Option Plan (Sections 2.4(3) and 2.4(4)) shall be amended in order to include
any amendment to the provisions of the Stock Option Plan governing the assignability of stock options as a matter requiring shareholder approval; 

  

	5.	 The Board of Directors be authorized to revoke, at its sole discretion, this ordinary resolution at any time before it
is acted upon without the requirement to obtain any further approval from the shareholders; and 

  

	6.	 Any director or officer of the Company be authorized and directed for and in the name of and on behalf of the Company
to execute or cause to be executed and to deliver or cause to be delivered, all such documents and instruments, and to do or cause to be done all such other acts and things as in the opinion of such director or officer may be necessary or desirable
to carry out the intent of this resolution.” 

  
 B-1

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