BRP Inc.

Sensitivity analysis

The Company performs sensitivity analysis on the cash flows and discount rates in order to confirm the trademarks and goodwill recoverable amounts. Holding all other variables constant, a 5%

decrease in the estimated cash flows or an increase of 100 basis points in the discount rates used would not have resulted in an impairment charge as at January 31, 2026, for the Powersports group of CGUs to which goodwill had been allocated, as well as for the Snowmobile and Sea-Doo CGUs to which trademark had been allocated.

The main leasing activities of the Company are attributable to the Company’s manufacturing facility located in Finland, to offices located in Canada and to warehouses used for the distribution of parts, accessories and apparel.

The following table explains the changes in

assets during the year ended January 31, 2026:

[a]

An amount of $33.2 million included in cost of sales.

The following table explains the changes in

assets during the year ended January 31, 2025:

[a]

An amount of $28.4 million included in cost of sales.

[b]

Impairment charge of $6.1 million is related to Marine businesses assets held for sale (Note 3

).

The following table explains the changes in lease liabilities during the year ended January 31, 2026:

[a]

Includes $9.8 million of interest paid.

The following table explains the changes in lease liabilities during the year ended January 31, 2025:

[a]

Includes $8.5 million of

inter

est paid.

The Company’s

trade

payables and accruals were as follows, as at:

[a]

As at January 31, 2026, trade payables include $38.2 million ($19.4 million as at January 31, 2025) under supply-chain financing arrangements (reverse factoring) with a financial institution, whereby payables due from the Company to certain suppliers have been collected by the suppliers from a financial institution before their original due date. The arrangements do not significantly extend the payment terms beyond the normal terms agreed with other suppliers.

The Company’s provisions were as follows, as at:

Product-related provisions include provisions for regular warranty coverage on products sold, product liability provisions and provisions related to sales programs offered by the Company to its Customers in order to support the retail activity.

The

portion of provisions is mainly attributable to product-related provisions. As at January 31, 2026, the Company estimates that cash outflows related to those

provisions could occur from February 1, 2027 to January 31, 2029.

The changes in provisions were as follows:

The Company’s ot

her financ

ial liabilities were as follows, as at:

[a]

The

portion is mainly comprised of the amount due to Bombardier Inc. in connection with indemnification related to income taxes and the contingent consideration related to a business combination.