Good morning, everyone. Welcome to BRP's Fiscal 2020 Analyst and Investor Day. Just before we start with the presentation, please note that today you will hear about our new five-year plan, our fiscal year 2020 guidance, and other objectives and different targets. I invite you to read the forward-looking statement at the beginning of this presentation, to ensure that you are aware of the risk and uncertainties related to these topics. Also note that any reference to fiscal year 2020 guidance is based on the guidance issued on August 29, 2019. Today, we will have seven presenters for you. After each presentation, we have a five-minute Q&A period, and then we'll come back at the end for a full Q&A period. We will also have a 15-minute break midway through the presentation. With that, I will leave it to José.
Good morning. Good morning.
Good morning.
That's better. Did you enjoy the ride yesterday? We're very enthusiastic to share with you our next five-year plan. We have a very solid strategy. We are enthusiastic to share it with you this morning. If I look at the agenda, I will do a recap on the Challenge 2020 and introduce the M25, the Mission 2025, five years, and we call it M25 right after. I will be followed by Sandy Scullion, who will cover the Powersports update and opportunities, followed by Josée Perreault, who will talk about three-wheel vehicle opportunities. Tracy Crocker will talk about Marine update and opportunities. We will have a break. Marie Laberge will come to talk about becoming a customer-centric organization. Thomas Uhr, Perform to Win.
Sébastien will come to give us the detail of the financial plan of the M25. I will be coming back for a short closing and general Q&A on the overall. Managing a company is not always perfect. It's not always a straight line. We've made significant progress in our business in the last few years, as you will see in a few minutes. I believe that one of the main reasons is all the talented people that we have into the company that are ready to take on new challenge all the time. If I do the Challenge 2020, if you remember, our focus was to focus on three pillars: growth, agility, and lean enterprise. The target was to deliver an annual CAGR of 10% in revenue and 15% in EPS to achieve CAD 3.50 EPS by the end of 2021. We are happy.
As per our guidance that we gave in Q2, we are on track to deliver the EPS of CAD 3.65 and CAD 3.80 by the end of the year, one year earlier than what was planned in the Challenge 2020. Very happy on the result that we have achieved. Over and above the financial result, we're very proud that what we have built as a company. I will take time to read the statement, but not only we are in line to achieve our objective one year earlier than planned, but we also set solid foundation that make BRP a stronger company, well-positioned to continue on its growth trajectory. This morning, what I would like to do is with the management committee, we've took the highlight of the last four years, and I would like to present to you the highlights of what BRP has become.
First, we've delivered impressive growth in all key regions. If you look in the last four years, we had a growth of 68% in North America, 45% in Europe, Middle East, and Africa, 63% in Asia Pacific, and 39% in Latin America. With that growth, today, we are extremely well-positioned in the industry, and we are definitely a very attractive OEM to work with for all the dealers that we have worldwide. Another highlight is we've disrupted the side-by-side industry by delivering on the bold commitment of one new platform every six months for the next four years. When we made that statement in September 2015, there was many people skeptical about our ability to deliver on that commitment. We did deliver eight new platforms in the last four years.
That generated in market share going from high single-digit to mid-teen, a gain of seven-point market share, which resulted in additional revenue of CAD 1 billion for the side-by-side business. Very impressive result. The beauty is, and as we'll talk this morning, the foundation to continue that momentum is even stronger. Another highlight, we expanded our market leadership position in seasonal product, our traditional snowmobile and watercraft business that are extremely solid business for BRP. Today, between Lynx and Ski-Doo, we have more than 50% market share worldwide. With the Sea-Doo worldwide, we have above 55% market share. Two, again, very solid business for the company. Another highlight is with the success of Spark and Ryker, we reinvented the way we design and market entry-level product. This is done with SKU simplification.
When you target an entry-level product, you need to make it easy for the factory to build. The way we've designed the product for us, but also for the dealer and the consumer, is very simple product architecture. We had the new marketing approach that attracted a lot of new entrant into the industry, and Josée Perreault will tell you more in a few minutes about the success of Ryker. With the Ryker, we have customization at the dealership. The new generation of customer like to customize their vehicle. As you will see this morning, we are very successful with the customization of the Ryker at the dealership. This is something that we've learned over the last few years and something that we'll continue to apply in some product line.
Another achievement, we've developed a strategy to create a unified ecosystem for accessories and vehicle with an innovative and easy-to-use product line. We started that mindset six, seven years ago. If you look in the yellow bar is the number of new accessories that we introduced per year. We started in fiscal year 2015 with 297 accessories. Last year, I mean, in Q2 in September, we've delivered 2,200 accessories with that new concept. You see that with this new concept where we created an ecosystem where our customers sometime have CAD 5,000 of accessories that they use between snowmobile, watercraft, or ATVs or side-by-side. We grow our sales, revenue of accessories by mid-20% over the last few years. Very successful, the best is to come because we're continuing to build the fleet, there is more accessories that the customer can continue to buy.
Another highlight that we cannot not talk about is we implemented the best dealer value proposition into the industry. This is now the typical interior of a dealership that you see worldwide. Our dealer value proposition is based on five different elements. First, you have the margin that our product dictate, pushing technology. Typically, our margin are higher than some of the competition. We have the PMA where each dealer has his territory. The order management system that is more flexible, the certification program that the dealer decide to follow or not follow, and the PerforMAX if continuously he increases retail of BRP product. The result of all this is between fiscal year 2014 and 2017, we were very disciplined to attract or to sign 289 new dealers.
To date, Sandy will talk about it in a few minutes, we have the right number of dealer in North America. Giving a chance to the dealer to make money. With this strategy, we were able to improve our U.S. coverage for all the product line by 25%, and our side-by-side coverage in North America by 50%. Today, we're not shy. We believe we have the best-in-class dealer value proposition. Another highlight, we've launched an innovative marine strategy integrating Evinrude and our three newly acquired boat company. I would like to repeat, this is a mid to long-term strategy, Tracy will go in more detail about it. Our strategy was based in 3 phase, the buy 2018-2019, the build that started this year in 2019, and the transform that will start in 2021.
Tracy will go in a lot of detail this morning, but we have a very good strategy, and our goal is to become the most innovative marine company like we are into the powersport business. We believe that this industry is ready for a change, and we are the best company to deliver on that change. The other one that we need to highlight is our manufacturing footprint. We supported our growth and deliver a competitive edge with the rapid implementation of a stronger and more agile manufacturing footprint in Mexico. Here, a few minutes to explain our philosophy, our thinking. In manufacturing site where we have product development, you need to keep some production. This is key to remain competitive, and when you design a product, making sure that it's easy for the facility to assemble.
It's very easy to design a complex product, but if you cannot assemble it or if the customer cannot service it's another story. In all the ADO, in all the region where we have site with R&D, Canada, U.S., Finland, Austria, and Australia, we develop our manufacturing site, and we're making sure that the operation and product development work close together. We provide manufacturing capacity close to certain end market. Example, Valcourt for snowmobile is a very good location. Up north, east, it's a very good location. We're leveraging the experience of the engaged workforce. To support our growth, we've developed an incredible footprint in Mexico, which benefits of a better cost of operations. In Mexico, a lot of people talk about the cost, it's a great culture with a highly skilled and dependable workforce.
Strategically, very well located for the south of the U.S., the southwest of the U.S., it's easy for the R&D group and all the support function in Canada to work in collaboration with Mexico with the 2 hours time zone difference. We have developed over the last four year, a very solid manufacturing strategy. Thomas will give you more detail in a few minutes about all this. That being said, we were extremely successful to shift the mindset and the technology in GK2020 and Valcourt 2020, two programs that were on time and budget. There was a return on investment on those. In Austria, in Gunskirchen, we implemented a lot of new technology. We revamped the whole factory. We implemented flexible assembly line, one piece flow capacity.
We have our in-house turbo that gave us a lot more flexibility in the design of new product. We invested in plasma coating, we gave a chance to the engineer to design very efficient engine, and we invested in crankshaft and connecting rod manufacturing. Also we shift our mindset, the way we manage the factory over there, it's by business unit, and we negotiate with our worker more flexible, working schedule. Valcourt, somewhat the same thing. In Valcourt, we invested in flexible assembly line, aluminum welding, just-in-time module, insourcing a state-of-the-art logistics center, and we had to reset our working policy, our HR policy. Basically, we have agree with our workforce of new rules that are very flexible, will give a lot of flexibility to respond to market demand.
Those modification or those two programs in those key sites, because those key sites is where we develop the people, the know-how, was key to remain competitive, going forward. Another highlight of the last four years is we continue to improve our rigorous product planning and development process, which delivered a high pace of product introduction, propelling BRP as the industry innovator. Now, I want to say a few words about this. A lot of people are asking Sébastien and I when we meet them, "After this side-by-side commitment, will you stop pushing technology?" Absolutely not. What we put together is first, you hire a good group of people, you give them the tools, and we have a very good governance. The governance is a collaboration and development between marketing people, design people, engineering people, operations, and finance.
This group of people with a good governance work together to design or to plan and design the product of the future. It's all about all the time working for the consumer, not working for engineering or design or finance, but having the consumer in mind and designing product for the consumer. We have a very good process, and we don't intend to slow down. We intend to keep the same momentum that we've been doing in the last four years going forward. Another highlight, we deepened our connection to our community of riders by humanizing our brand, elevating the experience of our product. When Anne-Marie Laberge joined BRP about three years ago, I gave her the mandate to humanizing our brand, to talk more about the experience. Always the product will be at the core of what we do, but to talk about the experience.
We put together a plan where we have strengthened our brand globally. We're leveraging the data to speak to the heart and mind of rider, increasing the accessibility of our product to rider and non-rider, and leveraging community to become advocate of our brand. This is a journey we're just starting, and Anne-Marie will talk about it in a few minutes. Another thing that very proud of, in 14 months, we strengthened our employee engagement with the launch of BRP purpose and value. When you manage a company across, we have about 13,000 employee in 26 location, you need to be aligned. We put together our purpose and value. Again, Anne-Marie will talk about it in a few minutes.
What is more impressive, before to go out with this, we consulted about 400 people across the company, and when we launched it, we had the endorsement of 92% of the people. The people were saying, "What we put here as a plan, it's us." We recognize our DNA into the purpose and the value of the company. As a recap, and if we do the highlight of what BRP have become since we became BRP in 2003, all the previous mission we had and the Challenge 20 allow us to deliver or to become all of this. First, we are a global leader in the powersports industry with close to CAD 6 billion revenue. Today, we are well-diversified with product portfolio less reliant on seasonal product, strong worldwide sales growth, and a global manufacturing footprint. Industry-leading product lineup with plenty of growth opportunity to seize, especially with Can-Am.
We entered the boating industry with a solid strategy and the acquisition of three boat company. We have a proven track record of industry-leading innovation capabilities, providing us with a strong pipeline of future product introduction. We have a solid momentum with our dealer network, supported by our best-in-class dealer value proposition. Agile and lean manufacturing capabilities with capacity to support our growth. We have more than 13,000 talented and passionate people committed to our success. Over the last few years, we set a solid foundation, making BRP a stronger company and position us for the future. At the end of the day, investor can decide to invest in powersport or not, but we truly believe that if you decide to invest into the powersport industry, we are the best OEM right now into the industry to invest your money.
This is quickly a recap of the Challenge 2020. It was a very successful plan. Very happy of the result. Now we're moving into what we call the M25, the plan for the next five years. Just to make sure I waking up, I decided to start with the financial target. After that, we'll explain to you how we believe that we can achieve the financial target. Continuing on our growth, our target is to deliver an annual revenue growth of 10% a year to bring us to CAD 9.5 billion, and 15% annual normalized EPS growth to bring us at CAD 7.50 by fiscal year 2025. This is the target that we believe is achievable. Our M25, it's an evolution of the Challenge 2020. On the Challenge 2020, we had the four pillar: growth, agile, people, and lean.
The evolution that we're planning with or we're targeting with the M25 is to continue to focus on the growth. Growth is a carryover because we believe there is still significant market share opportunity within our industry. We decided to combine lean and agile to remain with lean, because if you want to be lean, you need to be agile, we believe we can continue to improve the efficiency of our operation, Thomas will talk about it in a few minutes. We evolve people to Employee Experience, because employees today have choice, we need to treat them as consumers. I will talk about it in a few minutes.
The new one that we have added is Customer Experience, because people are looking more and more, and they value more and more experience above anything else, and it's something that we'll focus on, going forward. This is the four pillar of the M25, growth, Customer Experience, Employee Experience, and lean. Below this, and we'll understand in a few minutes, we have six priorities. Basically, we setting the course for BRP 2.0. The six priorities, and the team will go into detail to explain our plan behind those target, is first, over the next five year, we want to build on Can-Am momentum on and off road, and to grow Can-Am to CAD 5 billion in revenue. We want to make wave in marine by doubling our marine revenue to CAD 1 billion plus.
Exceed Customer Expectation, increase our Net Promoter Score, and improve our customer lifetime value. Fuel the BRP Heartbeat, shape a culture that move our people and delivers outstanding result. Perform to Win, achieve CAD 300 million of lean value, and Pursue Something Bigger, sustain BRP growth beyond 2025. This is the framework of the M25. The goal is setting the course for BRP 2.0. The four pillar that we've talked about is growth, Customer X, Employee X, and lean. The financial target is to reach 10% CAGR to bring us to CAD 9.5 billion and CAD 7.50 EPS by 2025. The six priorities is build on Can-Am momentum, make waves in Marine, Exceed Customer Expectation, Fuel the BRP Heartbeat, Perform to Win, and Pursue Something Bigger.
This morning, Josée Perreault and Sandy Scullion will talk about the Can-Am momentum, how we'll achieve the CAD 5 billion. Tracy will talk about the Marine Strategy. Anne-Marie Laberge will talk about Customer Experience, and Thomas Uhr will talk about Perform to Win. Since we'll not cover this morning Fuel the BRP Heartbeat and Pursue Something Bigger, I just want to share a bit the highlight of those two strategic priorities. Fuel the BRP Heartbeat. Today, people have choice. There is a shortage in labor. We're changing our mindset. We're treating our employee like customers, and the focus will be to move towards zero incident and zero impact in health, safety, and security. We have improved significantly over the last few years.
Thomas will talk about it. Our goal in the next five years is to move towards zero incident and zero impact because we care for people. Deploy the Employee Experience strategy to offer compelling moment that matter. An employee is like a customer. When they join the company, they expecting things. We want to make sure that they have a good onboarding, a good experience, a good long-term development plan. Nurture leadership behavior across the organization, develop our people, boost key differentiator that set BRP apart versus the other company out there. This is Fuel the BRP Heartbeat. The other one is Pursue Something Bigger to build a long term. Provide wider access to the BRP experience. Share economy. What do we do with share economy? A lot of the new generation want to rent their product on a monthly payment instead of buying.
How do we service those customers? We're starting to reflect on those new trends. Pursue the electric vehicle exploration as part of a broader sustainable development plan. Grow market through geographic diversification. This is Pursue Something Bigger, which is more a long-term play. Now a few word about the electric vehicle exploration. We introduced a club seven vehicles, six concept. The message we wanted to share with all of you is we working on the electrification of our product. The day that the demand will be there, we will be ready. We don't know exactly when. We don't know exactly where we will start. The message I want to convey is we working for the long term, and this is part of Pursue Something Bigger. That's in a nutshell, the M25. I'm just launching the program this morning.
From here, I will take a few question before to move to Sandy Scullion presentation. Robin, if you permit, we'll take the mic for the people on the line.
Thank you. Two questions. One is, when you think about the next five years and your goals, do you factor in that there could be a downturn in the market or just trying to think about how that factors in? My other question was on the CAD 300 million in lean value, just if you could put a little color around that, because obviously you're going to be developing a lot of businesses and kind of what that means.
First, like I said many time, we're not economist, and we don't plan for recession. We don't know. If there would be a recession, is it a severe downturn? Is it a region versus the other? Our plan that we're presenting this morning is for an ongoing economic situation like we're having today. If there would be a recession or a slowdown, depending how severe it is, it could impact our plan. We could be delayed 12 month, 18 months, 24 months, but we know that we will bounce back. At the time, if this happen, we'll be happy to share with you our plan how to crush a slowdown and what could be the impact on the five-year plan. On the CAD 300 million of creation of lean value, Thomas has a 20-minute presentation on this, will give you more colors.
Obviously, not going in all the detail how we will achieve that. This is a goal that we have, and we'll share with you a bit more detail in a few minutes, if you can be patient.
José, how much in the plan is factored in for maybe some of your competitors literally going away or pulling out of certain segments of the market?
We said many times since, the recession, what we see is many Japanese company are not as aggressive in North America and in Europe that they used to be. They're not going away, but we believe that their focus is somewhere else. We know that some of our competitor are struggling, with their Snow and ORV business. This is something that we convey a lot more. Even if the market would remain the same, the industry would remain the same, we believe that BRP is in extremely good situation to continue to grab market share to the other OEM. We're not planning for anybody to going away, but we believe that some are focusing less in the business than they used to be.
You touched on Spark and Ryker creating a new sort of lower price model. Can you share, I know it's further out, but maybe the next step in that thinking across your business?
Yeah. We'll talk about Project M in a few minutes. Project M, we want to create the Spark of the pontoon industry. There is always opportunities into our product line. Obviously, for competitive reason, I cannot tell you more about our intention on future product. I think, what we proved to ourselves with the Spark and the Ryker success is there is new way to launch product in a different way to grow the industry and to be more competitive into the industry. No more question? On this, I will pass it over to Sandy Scullion. Thank you.
Thank you, José. Good morning, everyone. Before I get into the presentation, just want to give you a little reminder of what GR&S is or Global Retail and Services. This is about sales, marketing, network development, and all the support services we provide to the dealers and consumers for units and PA&A. As a group, we're actually managing retail operations in over 120 countries. Now direct into 21 countries. Since last year, we've opened Russia as a direct country and now retailing over 270,000 units annually, and that number would be end of fiscal 2019. Couple words on how we did in the last four years. Obviously, a great result in terms of on a fiscal basis, you see from fiscal year 2016 to fiscal year 2019, we've delivered high single-digit growth on retail.
On a seasonal basis, category by category, snowmobile plus 3%, watercraft plus 26%, more than double the side-by-side business, ATV at plus 15%, and the three-wheel business at plus 69%. I need to note here that in every single category, we overperform the industry. The momentum continues in fiscal year 2020. Very strong position for both watercraft and snowmobile being number 1. For watercraft, growing low single digits. Snowmobile growing high single digits. This is for fiscal year 2020 H1, by the way. ATV at number 3, growing mid-teens. Side-by-side, number 2. This is growing high teens %. The three-wheel business, number 5 within the motorcycle industry, more than doubling the business. If we look at the regions, and one highlight here I need to point out is the contrast between the industry and our performance.
Canada growing mid-single-digit % while the industry is actually down low-single-digit %. USA, the biggest market we're in, increasing in high-teens % while the industry is actually low-single-digit %. EMEA at mid-teens % growth while the industry is low-single-digits %, and LATAM is flat and APAC flat with an industry at high-single-digit %, which makes us the number one player in the seasonal products and the fastest growing OEM, both on on-road and off-road. Looking at the key focuses we have for the group, the first one being maintain market leadership in the seasonal products. The second one is accelerate growth in the Can-Am off-road vehicles. Third one, leverage our parts and accessories business, and the fourth one, best-in-class dealer network. Let's start with some highlights of the seasonal products. We'll start with snowmobile.
Snowmobile, number one in North America, and strong number one in Europe as well. Looking at the industries worldwide, they're growing low single digits, but mostly driven by the international markets growing mid single-digit percentage CAGR in the last four years. In North America, about flat. How did we do in international in that growing market? We actually captured additional market share with the Lynx brand. Lynx actually growing high teens percentage in the last four seasons. We're doing really well for the Lynx brand in Europe. Looking at the Ski-Doo, snowmobile has gained 2.4 points of market share in North America for the last four season. This is largely driven by the crossover segment, the touring, and the utility segment. This is thanks to the new platforms that we've launched in the last couple of years.
You can see on the left side, the deep snow category is where we have the most runway, expect us to come on strongly on that category. We're well positioned to continue expanding our market leadership position in North America. Switching to watercraft. Number 1 pretty much everywhere in the world, in North America, Europe, Brazil, and Asia Pacific. Industry, the good news is that the industries are pretty much healthy in the last, what is it, 7 seasons. Both North America and international are growing low teens %, we're pretty proud of this industry turnaround since the launch of the Spark.
That industry has been growing constantly pretty much everywhere in the world. Talking about how we're doing in different categories for market share, as we've launched the new Sea-Doo platforms a couple years ago, you see the touring segment and the performance segments growing at 8.5 points. This last September, attacking the largest segment, which is the recreational segment. Obviously, we'll see more in the season 2020, as it's just starting right now. Also capitalizing on the Sea-Doo on special packages like the Sea-Doo Fish Pro, and also the Spark Trixx, which now represents over 50% of the Spark category. Capitalizing on more of the profit pools and special packages, which are quite profitable for BRP and our dealers. Moving on to Can-Am off-road vehicles. This is where I need to pause a little bit.
This is where I'll insert one of the big pillars, the growth pillars, the priorities for the M25. As José alluded to, we're going after CAD 5 billion of revenue by fiscal year 2025. This priority has been a priority in the Challenge 2020, we've delivered it actually a year earlier. The initiatives are the following. Shift gears to increase Can-Am off-road vehicles presence, especially in underrepresented segments. This is about conquesting market share. Secondly, pursue international market development and access to playground. This is about market creation and setting the right infrastructure and environment for these markets to grow the category. Thirdly, grow our portfolio of innovative accessories that improve customer experience. This is creating new needs, which equals, obviously, new sales. Like José said a little bit earlier, this is not slowing down. This is actually about accelerating our off-road path.
Josée Perreault is going to cover the three-wheel business right after me. Same slide that José showed a couple of minutes ago, but the highlight I want you to think about is on the right side, you see seven points of market share in the last five seasons. That translates into CAD 1 billion of additional revenue. Keep that in mind. Why do we believe in the runway we have in front of us? This is the industry fundamentals you see on the left side. The yellow bars are actually North America. We call it recreational. This is everything over 30 miles an hour. Commercial utility is in gray. This is everything under 30 miles an hour for side-by-side, and the black bars are international markets. You see the health of the industry and how the North American recreational market as a whole is performing.
On the right side, these are the different categories we're in. No surprise to see utility representing the biggest category we're going after, and this is our position. The same for the sports segment, which equates to the Maverick, and then the rec-utility with the Commander. Obviously the industry is extremely healthy, and the momentum we have in the categories in terms of the runway we have, we believe that this is a great moment, great position for BRP to be in. The target is the following. We want to double our market shares over the next five years. The reasons to believe behind that are the following. This is a completely different position than we were four years ago. We have now in our hands the most competitive side-by-side lineup in our history.
We have a stronger and more engaged dealer network, and we have greater ability to innovate as we leverage our experience design and engineering teams. If I translate that into what this could mean. Imagine a couple of scenarios going after 30% market share, and assuming that the industries are flat would bring us CAD 1.2 billion of additional revenue. If we take the assumption that the industries are actually going to grow mid-single digits, this is the right column, this could go up to CAD 2 billion of additional revenue for side-by-side. Within the M25 plan, we actually chose the midsection, which is the low single-digit industry growth. Doubling in market share would bring to the plan CAD 1.6 billion. To support all this, we've all agreed as a team and on the next statement.
For the next three years, we commit to introduce twice a year, either a new platform, a significant new model, or innovative technologies to our side-by-side lineups. Again, I'll repeat that. For the next three years, this is twice a year, either a new platform, a significant new model or innovative technologies to our side-by-side lineup. This is a testament of our commitment to continuing to deliver solid growth of our side-by-side businesses. Looking at the international opportunities, we have Australia. If we're able to unlock the recreational riding in Australia, and on top of it, the dynamics that we see in Russia, and especially in the sports segments, and the recent growth in Scandinavia for side-by-side, we believe that the three together could yield anything between 10,000 and 12,000 additional units to our plan today.
Really, obviously, they're really excited and happy to go after this new objective that we have. For ATV. Still gaining share in a mature industry. Strong position in North America, number 3. Europe, number 1 now. LATAM being number 2, and APAC number 4. Obviously playing in a mature market. The worldwide industry is actually going down low single digits. As you can see, Can-Am ATVs are growing. We're actually at mid-single digits growing while the rest of the industries are going a little bit down. Well-positioned for ATV as well and probably taking advantage of the halo effect of the side-by-side and all the investments that we're making in that business. Number 3, leverage our Parts and Accessories business. As José alluded to, strong growth. This is the same momentum or pace that we have from the unit side.
High single-digit growth on the PA&A business, but it is mainly driven by accessories and the parts business. As you can understand, the denominator is our dollars per unit. This is the health of our lineup. This is the innovation we bring to the lineup and how we engage the dealers in increasing every single dollar per unit retail. The multiplier is actually the fleet. With the momentum we have and the fleet growing, the math is pretty easy to make. Extremely happy with the PA&A business. Going a little bit more in details on the accessory business. In the last six years, we have actually increased on a CAGR basis mid-20% our accessory business. Thanks to innovations like the LinQ system, the modularity of the LinQ system, but also the ease of installing accessories.
The Can-Am Ryker Design Lab is an example of how we engage the dealers in promoting the accessories, and continuing to improve our Customer Experience. The last one is about best-in-class dealer network. Our dealer value proposition is obviously driving a lot of momentum. Our dealer and distributor network is one of our greatest assets we have in our hands. To give you a perspective of how we did for the same dealer sales, this means that the dealers that were there pre-IPO and are still there after or today, in FY 2020. This is the growth we see. High single-digit growth for these dealers. The bottom graph on the right speaks about the addition. The dealers that we added. Today, they represent 30% of our network.
To highlight is that 30% of these dealers actually represent 50% of the growth that we've had in the latest year. Phenomenal achievement from the dealer net dev group and obviously our dealers. A little bit more on this. The left portion of the graph shows you that we're number 5 in terms of number of dealers. This would be for the U.S. We've achieved, for side-by-side, number 2 position. It gives you an idea that we are avoiding over-concentration. We're making sure the dealers are obviously profitable, and it's not by chance. As you see on the right, this is the dealer profitability on average. It's actually 30% higher than our competitors. This is a very healthy position, and this is probably why the dealers engage even more in the Can-Am brands and want to buy and sell more.
The last point I want to make on this is that you need to expect about 50 dealers being added in the U.S. in the next two years. As José alluded to, we're in the last phase of our plan, and we feel very comfortable with the position we have right now. In summary, obviously, this is an aggressive plan going after CAD 5 billion of revenues only for Can-Am. The foundation is pretty solid. Obviously, the seasonal products, we still see opportunities to grow market share. Deep snow is certainly one of them we'll go after. Large growth potential in ORV industry. You have the facts in front of you, and the momentum we have in our hands is not going to be easily stoppable. Parts and accessories continue to be a strong contributor to growth. This is just the math.
If we execute right on the lineup, the dollars per unit keep increasing, and the fleet keeps increasing. That's extremely profitable for us and obviously supported by one of the strongest dealer network in the industry. On this, I'll open to questions. Yes, go on.
Yes.
Thank you very much. Could you talk a little bit about the CapEx requirement to bring CAD 5 billion in revenues? Where should be the next facilities? Also talk about when do you see the side-by-side market to be mature, and what are the key elements that you monitor that will help you too?
I'll answer the second question, and I'll let you, Séb, answer the first one. In terms of where is the ceiling for the side-by-side industry, I remember in the days where the ATV market was about 1 million units. Today this has gone down two-thirds. If you combine side-by-side and ATV together, we're not even close to what the off-road market was before. Obviously, it's a different price positioning today than it was 15 years ago. We don't see this going down in the next few years.
On your CapEx question, Benoit, obviously, when you're talking about growing the business to CAD 9.5 billion, it's big growth, and growth requires CapEx. Our planning for the future is that we'll continue to have material sustained investments in CapEx. Going to a 30% market share in side-by-side will require a second dedicated side-by-side plant. When that decision will take place, it should be sooner than later. We always said that this current plant that we have, Juarez 2, could bring us to a, let's say, 20%, 22% market share. Going to 30% will indeed require added capacity and added CapEx.
Thanks. I just want to make sure I get some of the market share numbers correct here. When you say you're doubling the market share for side-by-side over the next 5 years, is that targeting 30%, or is that targeting above that 30% range? Obviously, you guys are not giving any specifics on when you could add capacity. Maybe just could you give us a sense of the capacity you have currently, what the utilization of the capacity is, how you're coming out of this year and looking over the next few years?
Yeah. In terms of market share, it is right on the dot 30%. That's the number that we have in the model for 2025 with a low single-digit industry growth. When that capacity requirement will come, as I said, it will be sooner than later. We might be making announcements within the next 12 months that added capacity is required. With the momentum we have, the last thing we want is to be chasing capacity, and we believe that we making that investment sooner than later will be a wise move to make. Thank you. I'll introduce Ms. Josée Perreault for the three-wheel business now.
Good morning. As we look onto M25, Can-Am three-wheel is also a big contributor to getting or reaching our goal of CAD 5 billion target. A year ago, we put out the statement that we would be truly disappointed if we did not double the three-wheel business over the next five years. I can tell you that today we still stand by our statement. In fact, what we've learned over the past season on Ryker gives us the confidence that we have the recipe to finally unlock the three-wheel potential. Our priorities going forward to unlock that three-wheel potential is will be to amplify what we've learned and done on Ryker over the past year, and we'll cover that shortly, and also build the momentum on current Spyder lineup.
We believe that we have a great product in Ryker, and it's really a force to be reckoned with because we've met several milestones this past year. The most important milestone is our capability to attract new entrants into the market. For us, growing the pie with the capability of attracting new entrants is key. That's also the demise of the two and three-wheel industry combined, and probably explaining or largely explaining why sales are declining over the last few years. Ryker's accessibility in terms of ease of ride and also in terms of price point, our program, our Rider Education Program, are all the cornerstone of our strategy that is helping us increase our customer base which is really important. The introduction of Ryker also has allowed us to triple our addressable market. Today, our addressable market is approximately at 13 million people.
12 months ago, when we introduced Ryker at Denver at Club BRP, we had two big goals. One goal was to, first of all, target new entrants into the category, and it was also to shift the perception of three-wheel in general, make it a bit cooler and also making it a bit more relevant. What we've done is over the past 12 months, we have a bit changed the script and the narrative on our campaign that we typically see in powersports. We use a lot of influencers and celebrities, and we gain access to what we call lifestyle magazines and social channels where our new entrants right now are interacting with. We also had the goal to change the way we buy a three-wheel bike because we know that the shopping experience is very relevant and important to our new target customers.
Happy to report that after this past eight months, our campaign has been quite successful. We have over 2 billion impressions, so lots of visibility. Over 5 million web visits on the Ryker landing page. We also managed to increase our awareness, change the perception, and change the ownership model of the Ryker consumer. We'll cover that right now. In terms of we are very acutely aware that for us, for our success, we need to change the perception, and we need to make our new future target customer love our category. We've done a pre- and post-survey results of our campaign.
A few things to mention is that there's a lot more people thinking that Ryker or Can-Am three-wheel is easy to ride and cooler since the launch of Ryker. Most importantly, our target customer, which we refer to as Connected Carlos, a male of 35 to 45 years old, thinks that Ryker is meant for him. Also, that's a very good news for us. It's also substantiated by our own social channels, which we see more of our target consumer interacting with us. It's also truly substantiated with our new profile of the Ryker. The profile of the new Ryker owner is as such. It's younger, first of all. It's also more diverse. There's more African American and more Hispanics into the owner mix. The two nuggets that are really important is that 42% of the Ryker owner is a new entrant.
New to powersport, new to motorcycle, new to three-wheel. 30% of our Ryker owner is our women, when the industry right now is trending at 16%. We believe that we're really onto something with this. Since the launch of Ryker, we've grew our sales 100%, while the two and three-wheel on-highway industry is declining at 3.7%. If it was not for Ryker, it would be declining at 6%. We also gained close to 3-point market share in the on-highway two and three-wheel industry and 20-point market share on the three-wheel category. We went from ninth position in market share to fifth position, now surpassing really important European brands. Our customization strategy is paying off. Since the beginning of Ryker in January, we've installed over 500 Ryker Design Labs in North American dealers, 700 worldwide. There's about 200,000 customer views in our dealers.
They've interacted on our touchscreens and customized Ryker at our dealership. There's 60,000 app downloads of our augmented reality app where customers downloaded and customized Ryker on their phone. All this paid off as it resulted as above CAD 1,000 per unit in accessories, which is at 30% above our business case. Obviously, this is translating in better profitability, not only for BRP but for our dealers, which is an important milestone for us. Obviously, the second cornerstone for us in our strategy to gain new entrants has been and is still the Rider Education Program. We started this program three years ago. Today, we have close to 200 schools in that program. These independent schools work with BRP into gaining more three-wheel people into the market. Since then, we've dispensed about 20,000 licenses, legal licenses to drive three-wheel in North America.
If you look at the profile of who are taking these classes and graduating from a three-wheel license, the gender split is interesting. 45% are female, and this is for us, is a leading indicator of what could be the future ownership of Ryker as well. Also, it's our biggest, more successful converting tool. Over 20% of the people licensed on three-wheel convert to a new vehicle, and over 30% convert to new and used. The last pillar of our growth strategy for three-wheel is obviously building on the momentum of Spyder. One thing that we've been monitoring very closely since the launch of Ryker is if Ryker is affecting or cannibalizing on any sales of Spyder.
We can tell you right now that Ryker is growing the three-wheel category as it is not cannibalizing any new sales of Spyder, but most importantly, no new used sales of Spyder as well. This is great news. Ryker is adding to the three-wheel category. Most of you, or a lot of you were at Vegas this past September. You all saw that we have launched a new redesigned RT and a much-anticipated redesign of the RT because let us face it, our current RT was getting old and our RT owners were asking for way more. The beauty of the new redesigned RT that we just launched, it is addressing the pain points that our owners had on the RT, and it is addressing their much needed features that they wanted. Example, more leg space on the floorboard, more roomy space for the second passenger in the back, LED lights.
That's just to name a few. The new RT also is driving much smoother or riding much smoother and much more comfortably as it's perfect for the long rides our RT owners are accustomed to. Since the launch in September, we've put a lot of our owners on RT to test the unit and drive them, and we're happy to report that the feedback is extremely positive on their experience on the new RT. If you look at these RT owners that we keep talking about, well, there's 50,000 of them. They're the most engaged and loyal owners that we have. Also, we believe that in the mid to short term, we have about 60% of them that are ready for an upgrade.
Obviously in the next month and the next few years, we will address these RT owners and push them to test the bike and potentially upgrade. To conclude or in summary, Ryker is off to a very good start. Obviously, it's the first year. We have more room to grow. Since the beginning of Ryker, we've been drawing a parallel with Sea-Doo SPARK. I can tell you that today, the parallel with Sea-Doo SPARK is still very real. Like Spark, Ryker is attracting new entrants to the category. Like Spark, Ryker is also changing the perception of the category. It's not ludicrous to say that like Spark, Ryker has strong upside potential. In summary, I can tell you to conclude that we have the products. We've learned a lot on Ryker, and we just need to amplify in the coming years what we've learned.
We have a bunch of RT owners that we need to talk to make them upgrade on the new RT. Also, what's important is we know that the population is growing longer and younger. We refer to this population as the transitional generation that are always active. We also need to amplify the message that in Spyder, we have the bike to extend the open road experience. That concludes.
Any questions?
Yeah. José, you've been very successful with the three-wheeler market and obviously as you grew the market, what would you expect in terms of competitive landscape shaping up over the next five years?
Look, we've been seeing a few Japanese brand launch or talk about a three-wheel. They've introduced them in North America. I'm not sure they are very competitive at this point. The introduction just happened. Right now, I don't see much in the landscape, honestly.
Well, that being said, if new entrants would come to the market with a three-wheel architecture, it's something that would not necessarily be negative because it would just create more awareness for the three-wheel industry and probably even further democratize this product. Not that we want competition, but there's a slight benefit to it if there were some.
Where do you hope to get conversion on the riding schools over time?
Look, it's been increasing since the last I've met you in September. Last September, we said it was around 15%. Today, we can say it's above 20%. It's hard to say. We have to figure out conversion over time. Right now, we're calculating conversion over 12 months. We know in some instances, it takes more than 12 months to convert because people are looking either for financing or other types of reasons. It's hard for me to tell you that number at this point in time.
How many Ryker models do you think there is room in the market for? In other words, so there'll be more than just one Ryker model?
Right now, there's three SKUs. There's the 600, 900, and the Rally edition. The beauty and what's at the core of the Ryker is the customization at point of sale. A lot of the consumer, as you saw with the accessory sales, are customizing their Ryker either on a two-up, more luggage. This is what we're pushing, is the fact that they can design their own Ryker and making what they want. We believe that this is replacing what new models we can have right now.
You have the engine sizes and not necessarily new models. What you're saying is that you don't necessarily have new Ryker models planned outside of those three. It'll just be more customization?
Right now, we're pushing the accessory development. We want to push more the accessorization than the new model introduction. Yes.
Can you just talk about the, I guess the profitability of the Ryker relative to your expectations? I mean, it sounds like you're selling more accessories. Does that imply that the profit margins for the overall business are better than what you had initially planned?
Like I said, customization has paid off. The dollars per unit on our Ryker models is 30% above our business case. Obviously, it's bringing more profitability to Ryker than we had anticipated. Also more profitability to our dealers, which is great.
Sorry if I missed this, but in terms of dealer footprint for the Ryker, how do you see that evolving over the five-year plan?
I believe that we need to increase a bit or change some of the footprints. Some dealers are very good at selling three-wheels. Some have more difficulty. It's a readjustment of where we can optimize and maximize the footprint at this point. It's not necessarily adding, but it's maximizing the footprint within North America.
Hey, good morning, everybody. I thought she was going to say somebody who needs no introduction, but I do need an introduction. I'm Tracy Crocker, and I'm the head of the marine business. It's my distinct pleasure this morning to share with you our marine strategy. Whoops. There we go. Here we go. Which starts with our vision. That vision is a compelling one, to be the most innovative, fastest-growing marine business on the globe. We'll do that the same way we have done it and are doing it in Powersports, and that is taking a vehicle and an engine and putting it together and giving consumers this unparalleled, unrivaled experience. In this case, we'll do it on water. Speaking of consumers, they know us and we know them.
You can see here that we have this great opportunity to transfer that brand equity that BRP has earned in Powersports by the Sea-Doo owners, the Ski-Doo owners, the Can-Am owners that already own boats, 44%, 34%, 27%. We think those consumers not only will expect us to be in the marine boating business, they'll welcome us. If you think about the industry over the last 20 years, there's a lot of unmet consumer needs. At the top of the list is accessibility, but it doesn't stop there. Consumers are asking for their connectivity. They want an intuitive boat. They want it to be customized, and the industry today is not giving them that. It creates a strategic sweet spot that BRP, with all of its core competencies and strategic assets, is poised to attack. We think there's never been a better time.
When you look at the size of the marine business, this is looking at just recreational boating and engines, $20 billion by itself in the U.S. alone, CAD 30 billion addressable market worldwide by itself. It's as big as snowmobile, personal watercraft, motorcycle, and side-by-side. A very big and growing business. That growth is being fueled primarily by aluminum-based boats, almost three-quarters of the boats. If you know about BRP, we have a certain core competency around design and innovation and manufacturing aluminum. It's a very good place to start focusing our strategy and taking that a step further. You look at aluminum and what's driving that aluminum growth, at the top of the list, it's pontoons and aluminum fishing, 11% and 9% respectively compounded annual growth. For us, that is the way to focus and build a cornerstone for this strategy.
We've done that, you can see on this slide that our relative shares based on our most recent acquisitions. In pontoon, it puts us at low single digits, and for aluminum fishing, it's mid-teens. For us, that's the good news. That creates this runway of opportunity for us to take and build this strategy. We feel really good about the fundamentals that are in place and really answering that question in why Marine. The second question really comes into, okay, where are we going to take this strategy? José highlighted this a little bit earlier with the buy, build, and transform. We think it's a focused, disciplined, go-to-market strategy that will enable us really to build a launching pad that will start or has started with our acquisitions, three acquisitions in 14 months. I'll talk about those here in just a moment.
We are now entering the build phase. The build phase is really about driving growth and efficiency around expanding our dealer network, increasing our global engine attachment rate, the conversion to Evinrude, and obviously looking for those synergies that we can bring to these boat brands. Again, it is all an opening act to ultimately what we think we can do in terms of transforming the experience that consumers have on water. Let me just unpack a little bit for you the acquisitions over the last 14 months, and it starts with Alumacraft, a 75-year-old brand, and you will hear a kind of a common denominator here as I walk through this. A very strong brand in aluminum freshwater fishing, headquartered out of St. Peter, Minnesota. That was last June. We followed that a month later with Manitou, Lansing-based, founded in 1985 with a very strong high-end pontoon.
Most recently, Telwater with the brand Quintrex, which really represents and how they go to market. The leading manufacturer of aluminum welded boats founded in 1945. What we love about all three of these companies is as a starting point, they've got these great recognizable brands where they compete. They have an extremely loyal dealer base, and in every case, they have a high-performance boat. Their hulls have something unique. In the case of Alumacraft, it's the 2XB hull, which nullifies noise and gives a really smooth ride, particularly on big freshwater lakes. In the case of Manitou, they have IP actually around a V-Toon technology that allows a pontoon not to be your grandpa's pontoon anymore. This pontoon can be high performance, and I think really sort of connects with who we are, and we see lots of opportunity there.
In the case of Quintrex, they have both a freshwater as well as a saltwater brand. We think that brings us another dimension to our boat portfolio, and they have a Magnum Fusion technology, again, which is unique to them. We think these are strong assets. As I said earlier, positioned in growing segments. One more, just go a little bit deeper on Quintrex and what we see there. It's a little more unique maybe than North American boat brands. The headline here is that Quintrex is the number 1 boat brand in the Australian market with 56% share. That's a really good place to start. They're developing a dealer network, 160 strong, more opportunity to grow on top of that. They have a very comprehensive value proposition built around BMT, boat motor trailer, and we see lots of upside for Evinrude conversion.
Another good addition to the other boat companies that we bought. Just a little more color on that. If that gives you a little bit of hopefully where we're at and where we're going, I'd like to go a little deeper on how we're going to win in this space. This may be a little bit more detail than you would typically get in one of these presentations, but I think it's important at this juncture that we provide this to you so you have a sense of what our, as Seb said earlier, as José said earlier, our midterm and long-term strategies. I would say this is more our midterm, it starts with dealer network, developing our dealer network. There's a science behind this. BRP Powersports has developed it. I think I would even say fine-tuned it.
We want to adapt and adopt it to the marine network. It starts with Primary Market Areas, PMAs. We do an analysis, an extensive analysis of every boat by boat segment, sold by ZIP code all over North America, rank ordered. You get a sense of where these boats are, where they're being sold, then you overlay that, obviously, with our dealer base, competitive dealer base. We know where we have dealers in high-performing markets, where they're over-performing or under-performing. Maybe even more important, we find out where we don't have dealers. That creates opportunity. Our analysis, at this point, shows that we have a great opportunity to really accelerate the expansion of Alumacraft and Manitou. I'll share with you a map in just a moment that gives you a visual on what that looks like.
That can be as many as 150 new Alumacraft dealers by FY 2023 and 120 Manitou dealers. This comes with what we hope will be a really unique and compelling dealer value proposition. When I say dealer value proposition, it includes boat, motor, and trailer. It builds into that what we hope is our way of working with our dealers to develop a long-term growth plan. With that, we expect to see engine attachment rate, the number of engines sold as part of boats to increase. We expect Evinrude conversion to accelerate, and we know that we will continue to drive synergies with these boat companies.
As successful as they have been, they have been regional boat companies, and we see the opportunity again to bring our expertise around manufacturing, logistics, supply chain, product development, and really be able to position these companies for growth with 14,000 transoms as an opportunity over the next three years. With that, I'll give you a little bit more of a visual here on this network development, and you can see the number of dealers. The density is mainly in the Great Lakes region, where these companies were founded. That is their kind of core market. When you do the PMA analysis and you look at the number of, for example, in the case of Manitou, on the left of the screen here, number of pontoons being sold in Texas. That number is close to 4,000 pontoons.
You can see Manitou only has two dealers in the north and in the Houston area. A great example of where we see this white space market that we think we can attack. Similar opportunity for Alumacraft. Alumacraft freshwater aluminum fishing. Again, those numbers are about 5,000. If you took a four or five-state area from Louisiana, Mississippi, Alabama, Georgia, lots of opportunity to build out those markets. That gives us a lot of confidence in how we're going to really be able to deliver these midterm objectives. With that, I'm going to transition over to the third phase of this strategy, which is transform. Like I said earlier, the first two phases are really the opening act. We're building a launchpad for what I hope, and you hear these terms all the time in presentations like this, whether it's leapfrog or disruptive.
In this case, I would use two words, game-changing. We think we have two platforms that will change the game. You had an opportunity, for those of you in the room today, to see it yesterday. It starts with Project Ghost. The brief on this is basically taking and providing more usable space in a deck area with an unseen integrated engine architecture. Doing that in a way that allows us to maximize how we use that space on the back of the boat. That gives you flexibility in layouts, it gives you more radius for fishing, and it gives the boater and those on the boat a completely new experience, one that they probably have not imagined before, that comes with all of the attributes of an outboard engine. The second game changer is Project M.
The context here, it starts with creating the Spark equivalent in the pontoon industry. José referenced that a little bit earlier, and focusing that on the 20-foot in length, entry-level pontoon market, which accounts for about a third of all pontoons sold. Big opportunity. For us to make that segment accessible to boaters and creating it with a value is something that I think only we have that core capability to do. Then what we do with that platform and varying those lengths, I think is where the fun begins. One more step a little bit deeper on Project Ghost, because I think it needs just a little more explanation.
When people see it for the first time, or hear about it, initially, they want to say it must be some sort of new stern drive or a new inboard/outboard, or a jet propulsion, or some hybrid of all of the above. The answer is no. It is an outboard engine with all of the attributes of an outboard engine, including the serviceability, the ability to tilt the engine up and down, to put it on a transom with the same four-hole bolt pattern that all outboard engines go on, with the notable exception of the engine being out of sight, out of mind, out of earshot, and creating this new valuable space. In essence, what it does, it takes a 19-foot boat and turns it into a 21 or 22-foot boat.
It takes a 23-foot pontoon and turns it into a 26-foot pontoon with just the simple integration of the boat around the engine. What we do with that incremental space on the back of the boat, making it more usable, more playable, more fishable, is where I think we will be able to have that game-changing experience. Better than me talking about it, I think a picture is worth a thousand words, and I'll show you this, where you see that traditional fishing setup where you fish off the bow of the boat or the side of the boat. Over time, anglers just work around the engine. They know that they can't fish off of that part of it. It gets in the way, and it comes with the experience. That doesn't have to be the case anymore. This is what we visualize going forward.
With this, you could imagine all of the fun and usability you could put into a live well, into a fishing rail, storage area, that was otherwise a part of the boat that was not used. Same concept on a Manitou, on a pontoon. Here you can see kind of the complexity of what's going on in the back of the boat. For a family, in particular, a mother who is the primary influencer of buying a pontoon boat, and who wants that safe family experience, this does not necessarily provide it for that family. This does. This creates a whole new swim platform for the family. Again, we're just starting to imagine all the cool things that we can do with that.
Starting with, just so you can see it, if you go back to the original picture, you can see the space that we've added to the same pontoon just by having access to the back part of that boat. Very exciting. As they say, wait, there's more. That goes with Project M. I'm sorry, there is more. This one's Quintrex. Australian-based. Immediately, we add more value to the boat, not only by making it longer, but by creating the space of going from two boaters to four boaters. The way the more part goes with Project M. A little context up front on Project M. It starts again with our experience in making personal watercraft more accessible. The traditional Sea-Doo, on the higher end for those experienced personal watercraft users, got up to as high as CAD 17,000.
Realizing that there is another consumer base out there that we want to introduce to this experience with the SKU rationalization and some of the other fundamentals that we put in place, we are able to create a really great experience on a personal watercraft through the Sea-Doo SPARK, starting at CAD 5,499. We have a formula, we have the know-how. We're taking that same formula and know-how over to Spyder with the Ryker launch, where you can have that same three-wheel on-road experience for CAD 8,499. We think that the boating, the marine industry has the exact same opportunity, particularly in that entry-level pontoon. We think it starts with the Project M, which brings a whole new way of looking at how boats are built and how they can perform.
We think this has flexibility to move to and be a sporty version that would be part of Sea-Doo brand. We see this as a recreational brand associated with Manitou, and we see it even as a fishing brand that could be associated, and would be associated with Alumacraft and Quintrex. Lots of flexibility, lots of things that we can do, both jet propulsion as well as then integrating the Ghost technology onto this platform. To be able to do it and make it accessible to a whole new generation of boaters, we think has lots of great potential upside. Package all that together, this is sort of what the snapshot looks like. If you look at the different boat lengths, you look at the portfolio we have, including Project M, we have the gamut covered.
From the smaller size Alumacraft all the way to the greater than 21 foot with Manitou. Project M covers, as I said earlier, that entry-level pontoon. Quintrex goes top to bottom. It also provides us a saltwater as well as a freshwater entry, and as I said earlier, we think it's a great cornerstone to build this strategy off of going forward. The strategy, in summary, starts with those three brands, and we think it's a great start. It includes our go-to-market strategy, which will be focused here on the midterm, including developing the network, attachment rate, conversion rate, and then leveraging those synergies.
Ultimately, it brings us to that place where we can change the game and do it both in terms of what we and how we change what an outboard engine is to the industry and how that integrates into the boat, and Project M and all the flexibility that gives us in terms of how we go to market. We think that that's going to double our business and make us well over CAD 1 billion by the time we get to fiscal year 2025. With that, I'll take questions.
Just wondering if you can talk about what the strategy is to transform to Project Ghost from the current platform. Do you run them concurrently?
We would.
Also, I'd want to know, the competitors were pretty aggressive with the response to your acquisitions in the marine industry. I'm curious as to your view on how you think they will respond to the innovation to downplay this achievement.
Yeah, I find it interesting. Our competition, in terms of the technology, they compare themselves to themselves. None of our competitors will actually go head to head in terms of measuring speed, torque, fuel consumption, emissions. We like our technology, and we think it gives us competitive advantage. In terms of their response, I think we're ready for that, and we're ready to tell our story. In terms of how the market will react and has reacted, we're pleased. It's been a journey here over the last 12 months to be able to develop the relationships with the dealers from our boat companies, share a little bit of this vision with them in terms of where we're going, and their response has been very positive.
I think if I can complement, I think the mindset that we're shifting is to not think anymore as an engine supplier, but as a boat builder. To do that well, we apply the same recipe that we do on all the other product lines is by designing from scratch a boat which is well integrated with the powertrain. This is the mindset, and we've been working on those programs for the last two years, even more. That's why we're ready to share today, because those programs are ongoing right now.
Thanks. On Project Ghost, I see some nice pictures of some boats with longer decks, but can you maybe explain some of the technology behind the propulsion system and how you've reconfigured the propulsion system so that it actually does what you want it to do?
Well, at this point in time, no. You can take the combination of the innovation and technological know-how we have at Evinrude, combined with Rotax, combined with BRP. I think it gives us a unique opportunity to think differently about what an outboard engine is. How we protect that engine, I think gives us, again, something that's unique in the marketplace.
Obviously, Derek, for competitive reason, we will not unveil more today than the picture you saw.
Just in terms of the sequencing of the two projects, which one would you expect to be ready first? In terms of the dealer additions, are those contingent on these projects, or are you expecting to make progress on adding dealers before Project M and Project Ghost hit the market?
Right now, I think we're on pace to hit those numbers without Project Ghost and Project M. When Project Ghost and M become part of the story, I think it'll only accelerate that. In terms of the timing, both of them will be in the market, different go-to-market strategies, in the next 24-30 months.
Is there a limit to the engine size for Project Ghost, or can you offer that in every horsepower that you have all your engines today?
We can.
Tracy, I think you just answered the question, but just to clarify, and I think the first question sort of started out that way. Initially, has there been a loss of some engine business from the brands that were acquired to our dealers because they didn't maybe want the current Evinrude offerings and maybe have shifted over to a couple of the larger competitors? Obviously, you've got things coming in the pipeline, so I guess that whole dynamic short term on that transition. You just said you don't need Ghost or M to hit those dealer goals. I guess just maybe a little more clarification or color.
Certainly with Alumacraft, when we made the announcement, there was some dealer disruption, and there were dealers there that probably associated themselves more as Y and M dealers than Alumacraft dealers, and we did lose some of those dealers. We anticipated that. In the case of Manitou, the dealer loss and dealer disruption has been very minimal. We've been pleasantly surprised. In the case of Alumacraft, now that we've gone through two dealer meetings with them and our ability to go tell our story and for them to hear about who we are today and where we're going, we have some of those same dealers that left early on coming back.
Can you give a sense of the price discount of Project M and just explain a bit about the low-end pontoon market?
I wouldn't want to get into pricing at this point in time. I'll give you this, that the entry-level pontoon today with a trim package is CAD 35,000-CAD 40,000. We think we would be significantly less than that for a riding experience that we think would be even better.
Thank you.
Thank you. At this point, we're going to take a 15-minute break, and we're going to start back with Anne-Marie at 9:50 A.M.
Hello? Good. Okay.
Okay. We'll get started. Thank you, everyone. Our next speaker is Anne-Marie Laberge. She is Senior Vice President, Global Brands and Communication. Anne-Marie?
Thank you, Seb. Morning, everyone. I'm super happy to be here, and having the chance to share with you some exciting update on our journey. José, this morning, introduced to you our Mission 2025. In the Mission 2025, there's an exciting new pillar that is at the core of the mission, and this is Customer Experience. One of its priorities, as you've seen, is around exceeding customer expectations. I will say this, and I will be transparent, which will make Seb and José very nervous, but, I didn't want to say exceed because I thought it was a very high goal to attain. After weeks of discussion, we all agreed, and you know that when at BRP we rally behind something, we all agreed that at the end of 2025, our intention is to exceed customer expectations.
I just wanted to point this out, as an important nuance. As analysts and investors, you all hear everyone, every CMO in the company talking about focusing on customer experience, the experience economy, and also marketing transformation. What's different here? I'm sure that every time you ask the question, well, do you have the means to your ambition? What is your plan and what is your strategy? Today we're going to open it and share with you that strategy and the plan and the journey. We're going to hope that you're going to follow us and keep us very honest in making sure that we continue in this path. Just to be truthful, this journey started three years ago.
Three years ago, we decided, José spoke about this, I believe, this morning, but even before he hired me, I was not even a BRP employee, he talked to me about this journey from product to experience. Product is king, experience is queen. I'm definitely then the queen. Does that make me? I don't know. What I mean to say is that it makes people nervous because we feel sometimes that it means that we walk away from product, but au contraire, the product is actually there to deliver on the experience. We basically, three years ago, laid down this strategy on how we wanted to get there.
This, I should say, was a triad of Josée Perreault, Sandy, and myself saying, "Okay, how do we make this transformation from product to experience, from wholesale to retail?" The first thing we did is we had to put down on paper our marketing ambition. What is it that we want to do? José this morning referred to humanizing our brand. People do not connect with corporation or legal entity, but people connect with people. I say this sometimes, but although we sell fun and powersports, we sometimes, and please, acted way too straight and we were just too serious, is what I mean. We had to basically humanize our brand. This ambition here is around unleashing the power of our eight iconic brands to win consumers' hearts and minds while driving strong business results.
It may seem like an easy thing, but for a manufacturing organization to start humanizing our brands and winning the hearts and minds of consumers, building that last mile, that is a pretty big ambition. That's our goal. How do we get there? This here is BRP's marketing transformation strategy on a page. We decided to take the analogy of Everest. Why Everest? Number one, because it's going to be a good climb and it's going to be a fun climb. Also because when you climb Everest, you need to go and get acclimated to each camp, which to us represented milestone. In any transformation, you don't run to the top. You run to the top, you don't make it. You take too long to climb, you don't make it. More importantly, for any kind of climb like this, you need Sherpas.
You need to have the right people, and you need to have the right tools, and you need to have the right strategy. Over the next 10, 15 minutes, I'm going to take you to, and explain to you what these camps are. Also, most importantly, I'm sure you'll have the question, where are you in your climb? I will share that with you as well. Base Camp is around building the foundation. We were there about two years ago, I would say, and I will share with you some of the things that we did when we were at Base Camp. It was to ensuring that we laid down that vision and the marketing ambition that I just shared with you.
Camp one to me is absolutely critical. Camp one was basically built in collaboration with Anne Le Breton, who is here today, our SVP HR. It was around people and culture. We had to have the courage to look within the organization and say, "Do we have the right people to do this journey?" We made some tough decisions from time to time. We also had to go and hire a whole new breed of people. We build a digital team from ground up. Karim, who leads IS&T at BRP, looked within his team and said, "Okay, how do we raise the bar in IT at BRP to be able to deliver on this digital transition?" If you're close to BRP, you know that our culture is our secret weapon.
It is one of the most, or one of the strongest culture that I'm going to say North America. It is a very strong culture and a key differentiator for BRP. We had to look at the culture as it is today and say, "Okay, is it exactly what we need to be able to deliver on our plan?" Camp 3 is making sure that we lay down the plan around the transformation or first of all, ensuring that we have an agile operating model, so it's all around processes. Ensuring that we have the right plan around the digital transformation. Working with the IS&T team and saying, "Okay, what is it that we can deliver and when do we want to deliver it?" Making sure that we get the funds to do it. Okay.
That's the tools that I was talking to you about. Sorry, that was camp 2. We go to camp 3. Camp 3 is about reaping the benefit from it. Unleashing all these tools and ensuring that we can see and get closer to the customer and start winning their hearts and minds. What that means, it means that we start to know who they are, what they want, and when they want it, and start engaging with consumers in a meaningful way. Camp 4 is enablement. This is really around having a deep understanding of our customer journey and understanding each one of the moment of truth and engaging with consumers at the right time.
Also, José alluded to a new key metric that we will have now at BRP, which is customer lifetime value, that we're introducing to be able to measure the success of our Customer Experience pillar. Basically, the customer lifetime value will be measured and deeply understood. We know what we want to measure around customer lifetime value, and this will be our guiding, or our North Star guiding principle, at camp 4. Camp 5 is really when we have new business models, and we allow consumers to dictate where do we go next. José talked about this morning a little bit around exploration, around new business models. I will say that we started an incubator this year. It's called BRP-X, and I will share with you some of the things that we're testing currently. This is basically on a page, the journey that we're on.
Where are we now? I would say we're at camp 3. We do have strong foundations. We have the right team, the right people to be able to make the journey. We have a strong plan around the transformation and the digitization of the organization, and we started reaping the benefit of some of these tools. What I'm going to do next over the next five minutes and share with you some concrete examples on this. José shared this with you this morning. Why is this so important? We looked at what our marketing ambition is, and then we said, "Okay, who is BRP? But more importantly, who do we want to be when we grow up?" Defining this purpose that is here, which is we exist to create new ways to move people, so that experience are measured in emotion rather than distance.
We reimagine the way that you access your world is actually allowing us to dream big. This is basically becoming our summit. It's allowing us to really consider a bunch of opportunities for BRP that would've been outside of our traditional business. I told you that we took courage and we looked at the people and the culture. On the culture front, with Anne again, we said, "Okay, do we have the right values at BRP to be able to foster the kind of culture that we need to do this journey?" We redefined our values to make sure that we had that. The 92% that José talked about this morning, I want to tell you how extraordinary it is. Okay. After six months of launching our framework, we surveyed all of our employees, and we asked them a simple question.
We said, "Do you understand what this means, and are you embracing it?" I was expecting to have done a few transformation in my career in and around 60%. 92% of our employees said, "We get it and we love it." Are we ready to take on the journey with the people that are there? I would say hell yeah. We also needed to make sure that all of our brand platform could really win the hearts and minds of consumers. I told you that we sometimes acted too serious. I would say that we didn't have consistency globally around how our brand presented themselves. More importantly, we had to differentiate ourselves in the sea of sameness. If you looked at any ad in powersports or even in marine, they all look the same. How do we give our brands personality?
Right now we have developed four new platforms for our brands, and I wanted to share them with you.
In 2018, we set out on a new journey, carving a new path, reinventing the way our riders experience our brand, moving from machine to experiences, shifting from product to lifestyle. We connected with our riders by humanizing our brand. We showed the world how to live the Sea-Doo life. We unlocked the passion of every snowmobiler with that Sea-Doo feeling. We showed Can-Am riders that we're built to pave when you say, "Hell, yeah.
God damn it, Chuck.
For the ones who write their own rules, take their own roads, and ride like no other. Just experience the pure joy of freedom. We don't just build the greatest machines on Earth, but the most exciting brands in the world.
This is a sample. I apologize to the people on the phone, as I'm sure you could not view the video. If you visit our websites, you will see the brand platforms there. If you follow us on social, which I invite you, I'm sure you do if you're following BRP, look at the brand tone and personality. Look at the transformation that is happening now. You will see this coming to life. Another thing that we did is we have a secret sauce. The secret sauce is this. We now, whenever we go to market, we spend our money based on three things. We look at brand awareness, brand equity, and purchase. Basically, brand awareness is who is. This is an example for Ryker for H1 this year, so fiscal 2020. We said, "Okay, who is Ryker?
Why Ryker? Want to find out, and then purchase. We used to spend a hell of a lot of time in the purchase at the bottom of the funnel. What happens when you hang out there? First of all, you devalue your brand, and secondly, you need to do a lot of promotion, so it costs money. We know that if we understand very well the segment we're going in in the market, and we go laser focused, then we spend the right amount on each one of these, the return or the result is incredible. I just had time to show you one example here, but trust me when I say that we have these examples for each one of our product lines. Another example. This was around base camp, I would say, camp 2, which is really around the deployment of all of our tools.
Number one is we are looking and not updating. We're actually launching new websites for each one of our brands. The first one was Can-Am in September. Basically, what we're seeing is 23,000 incremental leads in fiscal 2020 just for the Can-Am off-road brand. Each one of our brands will have a new website by the end of fiscal 2021. This is extremely exciting for us. The revolution of CRM, a few of you over the past two days have asked me around as CRM, major focus for us. We're investing in a few tools. Number one is we've launched a marketing automation tool in June. We went from the capacity of sending 1.5 million emails to 7.5, but the unsubscribe rate diminished by half, and we have a 36% increase in lead conversion, in cold lead conversion. This is just with marketing automation.
We're launching a lead management system in the first half of fiscal 2021, as well as Customer 360. That's what's on the roster for CRM. I am confident that after these three tools are launched, we are going to have one of the best CRM machine that I've worked with anyways. Leveraging and improving digital channel. I just quickly wanted to give you a few KPIs. Over the past year, we've had a 32% increase in what we call SEO, which is search engine optimization. 32% increase there. The site speed is very important because people don't engage if a site, well, first of all crashes, but mostly takes too long to upload. We went from 21-second upload time to 5.3 seconds. The uptime is now at 99.7%, and that's from 72%. Dealership visits. We now measure click to brick and mortar.
Basically, if you click on an ad or if you fill out a form, we then know if you show up at a dealer. This is a very important KPI for us, and that measure went up 23% year-over-year. Finally, lead gen. We have 53% more leads from the web and from Facebook. The good news is, guys, is that they cost us 10% less. That means that our bidding strategy and the way that we make our ads, working with Google and Facebook, is way more efficient. Humbly, we basically have the rest of the journey to do. We're now climbing to camp 4. You will see that the climb from 3 to 4 is the steepest.
This is going from unleashing all these incredible tools, and now, how do we ensure that we can truly engage with consumers and that we can be super efficient in the way that we engage with consumers, is really where camp 4, the enablement piece, is going. We're ready. We have the team, we're excited. Also I will say this, that within the entire management team, we're tight. We know where we're going. This is really a team effort and everybody is 100% behind this. I've got no fear. Now, I talked to you about camp 5, and camp 5 is around bringing new business models, and I alluded to an incubator. At the beginning of this year, we've created a lab called BRP-X.
Although we want to see what consumers are going to tell us and bring to us, we kind of have a sense already of a few things, a few areas or paths that we want to explore. I wanted to talk to you about BRP-X. Three things we're looking at. Number 1 is experience centers. Imagine a place where you would go just pay a fee, a membership, and you can go and ride the products that you want. Travel. Imagine going for a week in Sea-Dooing on the Amazon. In alternative access, this is what we're testing right now with Turo and Ryker. How do we give access to people that don't want to buy, don't want to get the trailer, don't have the garage? How do we get these people to be able to access our product?
The intent here, guys, is, well, we want to monetize experience is one, increasing access is the second objective of the incubator. When I say that we want to monetize experience, the intent is not just to put butts in seats. We want to offer people a full experience. It's not just to go somewhere where you can rent a product, but it's to go with a guide. It's to have the app that tells you which road to take. We want to do really the full experience and not just giving you the key, and here you go. We're really focusing on this. What we've done is we've created a new brand that is called Uncharted Society. For the people on the phone, you can do Uncharted Society BRP. We're at the concept validation for those of you who are familiar with incubator process.
We're doing small, we're testing, we're optimizing, but so far it's going extremely well. I just wanted to introduce you to Uncharted Society.
The ultimate reference in powered sport. BRP presents the Uncharted Society. Now you can own the moment without having to own your ride. Climb higher into mountain ranges, carve up the desert sands, ride waves of legendary waterways, kick up mud in a powered sports playground, and see the road open before your eyes on our top-of-the-line machines. Our adventures are for everyone, from beginner to expert riders. With our global partners, our curated journeys are designed to give you that one-of-a-kind rush, the kind only found when we're reconnecting with the great outdoors. We believe experiences are measured in emotion, not distance. We are the Uncharted Society. Book your adventure today.
When I say that we wanted to give access to people that would not normally have access or might have been interested in trying powersports, if you check the website, which I'm sure you already have, we have a three-day Ryker trip in the Yosemite Park, and our first client to book that trip was Lululemon. Not the typical group to do this, but it's a three-day Ryker. A chef follows you. You glamp it, you do some glamping. I wish my boss would give me some time so I could go there, but we're extremely hopeful and extremely excited. Guys, here it is, the journey into marketing transformation that BRP is on. I hope this was helpful and thank you for the time you gave me this morning. I'll take some questions now. Wonderful.
Next up is Thomas Uhr.
Merci, Phil. Ladies and gentlemen, our company is very competitive and, with a heading like Perform to Win, I guarantee you, I have all the attention of the people inside the company and this is exactly what we need to fuel the growth of this company over the next years, at the same time becoming more efficient and lean. This needs everybody's attention and this is what we are striving for. Just to have a look at our footprint of today. We are consisting of 12 state-of-the-art sites around the world and, specifically, we are very close to our most important markets. We're employing today, you heard it already from José, roughly 13,000 people in these sites. The last four years, we delivered an unparalleled growth in volume and in complexity.
As you can see on the two quality measures, the right the first time one is basically after we finished assembly of a product, how often do we have to touch it in order to correct a mistake, to check something, to monitor something? How much of our production is going through? In a top-class facility, you are beyond 90%, and if you have a lot of trouble in your manufacturing, you're significantly below 70%. This is one measure that we're following. The other one, on the right side, the warranty. This is simply a warranty cost means customer claims in % of revenue. On both parameters, what you can see is that we didn't see a lot of change.
This is remarkable because, at the same time, we had this huge growth in complexity and in volume, and we were able to maintain our high level in quality throughout this time. The even better news on this one is when you look at the top left, on safety, we were even able to improve safety in our facilities. Talking about safety, on the next one, what you see, and you heard it already from José, our goal is clearly zero incidents. This means no harm for our employees and, by the way, our customers, is for us, something that shows that we are well in control of our business and it's not something that we are willing to compromise.
With Perform to Win, we want to make our company more efficient, leaner, and we have four different main initiatives that we're trying to group our activities. The first one is around manufacturing and supply. The second one is about speed. It's about one-piece flow, it's about availability on the market. The third one is around quality, and it's not just the quality of our product that we're talking here. Last but not least, we are focusing a lot in scrutinizing our processes, change them where it is needed, and make sure that we have leaner and easier to manage processes at the end that we can also easily optimize.
The purpose, once again, is to make the company better, and more or less as a windfall profit, we expect that we will have an output of this on the bottom line with a reduction of CAD 300 million. We call it a lean value, as it is for us, more an indicator than the purpose of this exercise. The purpose is to make the company better. Let's get into some examples. On the manufacturing side, you already saw our footprint. It's about how do we plan to go into our increased footprint for our future expansion, and we will apply the same logic, close to our markets. We need to be in a well-established supply chain. Of course, it has to be efficient, so cost plays a role as well.
How do we further want to strengthen our sourcing, as sourcing is very important for our commercial success, but also for our quality? What do we do to maintain and expand our technological leadership, which we think it is also very important for our positioning on the market with our products. Despite a booming automotive sector and industry, despite trade wars and tariffs, we have been able to deliver with our Wave One cost-saving initiative in our supply chain, savings every year. This resilience that we created, we want to maintain. At the same time, we will use new methods to continue with savings in our Wave Two initiative coming next year.
At the same time, and this is as important, at the same time, we monitor and we develop the quality that is coming out of our supply chain network. We are not accepting any savings compromising our quality. You see it on the graph on the bottom right. Within a relatively stable overall distribution over the globe, we made some significant changes with regards to the distribution inside the regions. No, we don't see that? I give you some examples. We shifted a significant supply volume from Canada to Mexico. Another example, from China to Vietnam or from Italy to Eastern European states. Within the region, it is relatively stable and it's balanced, but at the same time, we are looking for opportunity within each of the regions. It's very important for us to maintain and increase our technological leadership, as I said before.
I have here some simple examples that I can show to give you a feeling what we're talking about here. We introduced into our facilities 3D printing. With this technology, we are able to be much faster and to apply less CapEx needed for prototypes and for small series. This is in use today, very successful technology. The second success story that I can share, and also this one, José already pointed to, is the in-house turbo manufacturing that we do. It's not just the manufacturing, of course, it's also the design that comes before the manufacturing. With this move that we did a couple of years ago, we are now able not only to have turbos and superchargers at a much lower cost than what you can achieve on the market.
We at the same time, we get turbochargers and superchargers, they are built for powersport applications. They are built for purpose, and we have much more design freedom than what you would have if you buy something off the shelf, which is, in our industry, not easy to maintain. Looking into the future, if you just take these two examples, the next step for 3D printing could be, and we are working here on research projects, could be direct metal printing, which would give us an opportunity to even increase the 3D printing technology in use in customer parts. Secondly, on the turbocharging, we are thinking about turbochargers that are fully integrated into an engine, which would reduce cost and complexity, and bring it to another level. We learned from the automotive industry, sometimes it's good to listen what these guys are doing.
They're spending lots of money developing this concept. What we learned from them is a very consequent platform strategy. In order to develop products that are good technologically advanced products, at the same time, with a good quality, with a good time to market. We applied this platform strategy at our design center, and this brought us in a position to react much faster to market needs and to deliver the amount of products that we cranked out over the last couple of years. The very specific thing here is not only the platform concept from an R&D perspective, but at the same time, you need to know what you develop it for. We have a joint approach between operations, between manufacturing and R&D. We are not developing products that don't fit into our production system afterwards.
It's not just the product side, it's also the production side. José showed the picture on this one. We are very proud that our product creation process is a collaborative process, and it's much more efficient than what I'm used to from the automotive industry. Our decision time, our decision quality is higher. We are much faster. I give you an example. My colleague, Denys Lapointe, his designers are involved in this platform discussion from the beginning on. It's not just that with the R&D phase that we are starting to think about a platform concept. We are already doing this when we are going in the first design ideas of a new product, which is a huge advantage compared what you see in automotive. I think we have a quite advanced system here on our hands.
What do we do to improve this even further? It's about speed, lean development processes. It's speed and digitalization. It's modularity and intelligent platform concepts even further. Design to quality and cost is here the key word. With the capabilities of having this modular design available, having production facilities that are able to produce in one-piece flow, we will in the next years also see opportunities to transport this into the customer to make sure that we can leverage these advantages to the customer, to the dealer working on this, and this is part of our future plan. As an example for growth of our manufacturing facilities, I brought the PWC and [FSE] growth as an example. Here, what we did over the last years is a huge growth that we were able to follow.
We managed, at the same time, the high complexity with the new product introduction. To summarize all that, as most of you know, in 2015 we opened our Querétaro 2 facility, our Juarez 2 facility in Mexico. Since then, we delivered three major capacity expansions. By the way, all of that in time and on budget. With this experience, with the knowhow, having the teams available that can carry out such activities, I personally feel very confident that we can deliver any capacity demands that will come up in the future. I'm feeling very well prepared to do so. On quality, which is very important, not just from a product side, as I mentioned before. It's the whole chain from supplier to customer. It's not just an enabler for customer satisfaction. It's also something that has a cost impact.
If you have to repair bad quality throughout your process, this is expensive and this is the opposite of lean. We are working on this, and our mantra here is clearly, if you want to be and if you want to stay the leader in powersports, you also have to be the leader in quality. Okay, now I understand. With digitalization, it is very important to improve our quality, and to use the opportunities that we are getting due to digitalization. I brought one example here, which is the measurement. If you produce a vehicle, like we do, you have a certain amount of your frames that you measure to make sure that you're still in quality. What you're doing so far, you're doing a tactile measurement.
It takes, depending on how good you organize, two to three hours per vehicle. Which allows you to measure eventually 2%-3% of your production with real measurement data. What we are doing, and you see this on the picture here, we are doing a laser measurement, which gives us this measurement for free. We are measuring while we are moving the parts in our facility. On top of that, we can basically online, using this data that we are generating in order to control our process if something goes out of tolerance somewhere before this happens. We see a trend in this data. The good thing is, we are not measuring 2% or 3%, we are able to measure 100% of what we produce, which gives us much more confidence in the quality of our product.
The further potential, just as an idea for future development opportunities, you can even use this data, such data generated in online measuring systems, to have an automated self-learning process with the follow-up machines in your production process. Which is the first start in an artificial intelligence self-learning facility, which is, in terms of quality, the superior way to go. Perform to Win, it's about utilizing the growth, at the same time, having an eye on efficiency. One big element of this is looking at all of our processes. You might have heard already, our FIT program that Karim is heading. In this program, which is FIT, is about fix, improve and transform. We are looking basically at all major business processes that we are using. We are trying to simplify them where possible.
We will use the right systems and processes to digitize, and we will, with this, lean our standard processes. On top, we will open up for things that we have not been able to carry out today because, for example, the data was not available to do so. This is a big process we are in the middle of today, and this is something that will keep us busy in the next couple of years. The outcome of that is that we will have an increased efficiency in our operating processes, and we will have the starting point for further intelligent automation that will again boost our efficiency gains. All of that, with Perform to Win, we want to make our company more efficient, leaner. We have to define the areas with product manufacturing, sourcing, and logistics.
In these areas, plus all other areas that are not covered here, we are looking into an in-depth process to improve this. Our objective, as I said before, is to make the company better. The outcome will be a CAD 300 million lean value that we will create by 2025. With all the activities and initiatives behind that, I'm feeling very confident that we are able to achieve this goal. With that, I'm ready to take your questions. Thank you.
You mentioned a lot of efficiency initiatives. Maybe can you share what are the one or two biggest drivers of the CAD 300 million of lean value? Should we think of that as cost savings? How much of that would actually flow to the bottom line?
If you think about leaning your company, the cost savings that will fall out is just by making your company efficient. The target is not the cost saving, the target is to make your company better. It's about the purpose, which is very important for communication of such initiatives. Looking at the size, if you just look at where we spend our money today, number one is clearly in the supply chain. We have a huge percentage of our spending goes into buying things. This is an area where we have the biggest lever in terms of spending, for sure. Internally, there is a lot in processes, and I would see this balanced in utilizing intelligent products. Designed to cost and quality.
This is the more mid to long-term view, because you have to wait until you have a new product that you can introduce into production. Also on the process improvement we are spending today, still a considerable amount of money, in areas where we could do the same with less or with a little bit automation. It's internal processes and it's the area of supply where we have the biggest chance to expand. Also quality, as I mentioned before, it's something we can improve, and on the quality side, it's not just saving money, it's also about improving the Customer Experience with our products. I'm not sure if this is answering your question.
Thomas, I can appreciate adding the lean value in a market where you're growing low single digit side by side, and you're doubling your market share. I'm curious to your perspective of how flexible the manufacturing is to deal with tougher market conditions. Like how do you game plan for a scenario if volumes were down 10%, for example? Which products do you feel have the best ability to respond to that, and which ones would struggle more to deal with that?
One question was already answered. We are not planning for a recession. I just repeat what was said. The second one is, I'm not, and I think this is true for the whole company, I don't feel to be the person that can decide what is the best product at what point in time in market. We are trusting our customers that they take the products that they want and they need. Therefore, we leave the decision which products to take with our customers.
Yeah, maybe I'll Sorry, Thomas, I'll interact here. When you look at our manufacturing footprint today, most of our sites are dedicated to a product line. We have Querétaro for personal watercraft, and we have Juarez 2 for side by side. We have Juarez 1 where we do multiple product lines and Valcourt as well. I'd say all of the sites face the same cost structure and variable cost elements, and therefore, we'd be able to flex our operation in order to respond to variations in volume, if there were to be a slowdown. Not necessarily any site is more advantaged or privileged or has better competitive advantage if there were a volume reduction. Sorry.
Maybe kind of along the same lines. How should we think about the CAD 300 million in cost saves? How much of that is coming just from volume increases from scale? In other words, if your volumes were flat over the next five years, which I know is not the plan, is that CAD 300 million something that you can pull out of your existing manufacturing footprint, or does it rely on the revenue increases in your projections?
Some of these initiatives, for example, if you invest into new processes, you can only do if you have a certain volume increase. You don't do this, if you have a flattish market. Some of the initiatives that we have here will only work if we have a growth ahead of us. On the other hand, some of the cost that we are creating is also related to the growth that we have to provide the capability in order to manage the growth. There are other opportunities if we would hit a flattish market. There are other opportunities for saving that we don't have on our list today. It would be something that we have to find out when the situation occurs, but I don't think that José or Sébastien will take the goal away.
I would be surprised. Thank you very much, and I hand over to Sébastien.
Thank you, Thomas. I'll be brief. I have a few slides to cover with you, but before I dive into the financials, I actually want to share with you, for me, what is probably my favorite slide in this deck. It highlights BRP's retail performance over the last five years since we launched the Challenge 2020. As you see in this slide, we've actually outpaced the industry significantly. The industry has been flat over the last six years, but we've actually delivered significant retail growth. For me, it's a testament to the quality of the products we introduced, the innovation that we brought to the market, and also the phenomenal work that's been done by the teams across the organization, on the OTD side, on the go-to-market side as well. Going to the financials, obviously, strong retail resulted in strong financial performance.
As you all know, we've delivered strong financial performance over the last five years, significantly outpacing the industry. Not only on the retail side, but also on the financial performance side. You see revenue growth 10%-11%, which is industry-leading. I'll bring you to the last section of the slide, the normalized EPS growth. We've delivered 17%-18% normalized EPS growth in the last five years. This year, our guidance calls for 18%-23% EPS growth, CAD 3.65-CAD 3.80. Again, industry-leading in terms of financial performance. This financial performance has allowed us to generate strong free cash flow. We've generated over CAD 1.4 billion of free cash flow since the launch of the Challenge 2020. We've returned also a significant amount of capital to our shareholders. We've returned through share buybacks and dividends over CAD 1.3 billion of capital since 2015.
Obviously, always focusing on delivering strong shareholder returns, again, exceeding industry standards. All of this has been done also with a focus on our balance sheet. We often get the question on, "Well, what's BRP like in a recession? What do you do if a recession happens?" José and my objective and the management committee's objective is to protect the company for future growth. Reducing or drastically cutting costs during a slowdown is probably one of the worst things we could do, because rebuilding an engineering team, rebuilding a marketing team takes a lot of time. You all know how there's a war for talent out there in the market. We want to continue having a strong balance sheet, and so we've maintained leverage equal over the last five years. We've increased the financial flexibility by increasing the revolver.
The priorities in terms of our managing our long-term debt is limit our exposure to short-term obligations and maintaining the covenant-like structure that we currently have. Mission 25, obviously off the performance that we've delivered in the last five years, it'd be tough to come here and present to you anything less than a 10% revenue growth. I'm appreciative of the fact that we do have a bottom-up plan, as you all saw this morning through Can-Am, through Marine, and also through other growth opportunities. There is a bottom-up plan there. Delivering 15% EPS growth is also in line with the performance that we've had in the last five years. I did get the question, does it factor in share buybacks in there? There's no share buybacks plan in our modeling.
This is driven by the organic growth of the company and also the Lean initiative, which Thomas covered this morning. To walk us through what does this company or what drives the CAD 9.5 billion of revenue. Obviously, side-by-side business is where we see a lot of potential. You saw the assumptions that we built in our model this morning in terms of market share and also in terms of industry growth. That would bring an extra CAD 2.2 billion of revenue with the momentum that we have also on ATV and also what Josée Perreault presented this morning with three-wheel business doubling our revenue. The Marine business with the acquisitions we've done with Project Ghost, we want to transform this industry like we've transformed the powersport industry. So we're looking to double our business, bring in an extra CAD 600 million of revenue.
The last pillar is the seasonal business. Ski-Doo, Lynx, Sea-Doo have been very strong businesses for us in the last several years. We've gained market share in these business. We've grown the industry quite significantly in the personal watercraft. We believe that we are well positioned to continue to grow in these industries. We've also talked about new growth opportunities, and Marie highlighted a few points. José talked about electrification. There's Project M as well, which we showcased yesterday and today. That's another driver of the CAD 9.5 billion of revenue. How do we get to CAD 7.50 of EPS? Obviously, volume will be a big factor in this equation, so the powersport growth and the Marine growth will be important drivers. What Thomas covered as well, just before I did, in terms of Lean value in delivering CAD 300 million of savings to the bottom line.
There's know-how that we have on technology usage that's going to bring savings. There's the modular approach. There's obviously cost savings as you double revenue in your side-by-side business. Obviously you got a lot more leverage with your suppliers. That's going to bring savings, also while the fact that you're doubling your side-by-side business, I know some people in marketing might ask for double their budget, we'll be diligent in managing that. We'll be getting, obviously, operating leverage coming from that. My last slide for you this morning is our capital allocation priorities. Our number 1 priority is fueling the growth. That's been the strategy over the last five years, we've been successful at it. It's going to be delivering and funding our SSV and 3-wheel ambitions, transforming the marine industry, maintain the leadership position in our seasonal products business.
They are very good businesses for us and for our dealers, and so we want to protect that leadership position and even take more share. Lastly is get BRP ready for post-2025. We have a long-term view in this mission, but we even have a long-term view as to how we manage this business. We want to be ready for the next wave of growth post the next mission. Secondly, obviously, we've had a good trend in returning capital to shareholders. Our objective is to continue to do that, so continue paying our quarterly dividend as we do, and opportunistically execute share buybacks when the time is right. I think we've executed them quite well in the last few years, and we're going to maintain that track record. Last question. We got one question this morning on it, but I'll just close on this. CapEx investments.
We saw an increase in the last few years in the level of CapEx investments that we've made. We can't starve growth. You need CapEx to fund growth, therefore, we're going to continue investing in CapEx material amounts. We talked about potentially a new side-by-side plant. We're talking about investing in new products. Well, that's going to require CapEx, therefore, our CapEx investment will be sustained for the near future. You can expect that. That closes the financial section. I will take any questions from the room.
Sébastien, you talk about the revenue expectation, EPS expectation, the share buyback, could you talk a little bit about the assumption from a margin standpoint and also in terms of CapEx, whether you're looking in terms of % of total revenues, which is a good proxy or things to monitor?
On the margin improvement, obviously, yes, this plan calls for margin improvement. The CAD 300 million, we'll call it on a CAD 9.5 billion of revenue, it's almost a 300 basis point improvement in margin. That's what we're driving for. The good news is we have a bottom up. We have the governance. We have which elements to target. Our plan calls for important margin improvement. On the CapEx, what I can say, Benoit, is that we'll be over the CAD 400 million threshold mark in the next few years.
Maybe just on the CAD 300 million and 300 basis points, the CAD 7.50 of earnings looks more like 100 basis points of margin improvement. What are the offsetting investments that you plan to make?
Well, obviously, as we talk about investments in CapEx, so I'm expecting depreciation expense to creep up, and that's going to be a headwind, the major headwind in our margin improvement. In order to offset that's why we need to target the 300 basis points of improvement.
How do you think about the stock price level in your share buyback determinations?
Well, as what I've said, we're going to look at executing buybacks opportunistically. Obviously, we run every quarter our intrinsic value models to see where the potential intrinsic value of the stock is and where the stock is currently trading and whether or not buying back stock at the relative price is worth it. Obviously, where the stock has been trading lately, it's been a good deal to buy back stock. Multiples are quite attractive for us to buy the stock, even for investors to buy stock. That's why we've executed. On a quarterly basis and through discussions with our board, we will be assessing market conditions.
I think in the past you've talked about, or earlier this year, you talked about a potential other acquisition in the marine business. Do the targets, the five-year targets today, include contribution from another marine acquisition?
There are no acquisitions built in the model. To date, we're happy with the three assets that we have, the two North American assets and the Australian assets. Now the story is about building out the dealer network, preparing the network for Ghost, and delivering Ghost to the market. We believe that with what we have today, we're well-positioned. That being said, if an opportunity were to happen, would we look at it? Yes. Could we consider it? Yes. In our plan, we don't believe that we need another acquisition. No change.
On the return of capital, how should we think about, I guess, dividend growth and payout ratio?
If you look at our trend in the last few years, we've increased the dividend by CAD 0.01 every year. As the business continues to grow, it would be normal for us to increase that payout. We have no specific targets in terms of as a % of EPS or a % of net income. We do believe that some investors like to have a dividend, and it makes our stock more attractive to a larger base of investors. Our priority is fueling the growth, and so that's something we won't compromise on. Thank you. With this, I'll turn it over to José for our final words.
In closing or a few remarks. This morning, very excited with the closing of Challenge 2020, but also the new five-year plan. I just want you again, and I will repeat myself, that you realize that over the last four years, we've set solid foundation that make BRP a stronger company, and that position us to continue to grow our growth trajectory. We have an aggressive plan, but we believe bringing Can-Am to CAD 5 billion is feasible. Bringing Marine Product to CAD 1 billion plus is scalable, and with all the other business, we can continue some growth with Sea-Doo, Ski-Doo, ATVs. Our team is focused, delivering best-in-class consumer experience and exploring new businesses avenue. We have a clear roadmap to deliver CAD 300 million of lean value by fiscal year 2025 and improve our margin.
We have 13,000 talented and dedicated people in 26 countries that are eager to continue to be successful. We have a solid foundation and a robust plan to continue our growth trajectory and to generate value for our shareholders. If you are an investor, you need to decide if you invest in powersports in our type of industry. If you decide to move in the powersports industry and to invest in that business, we believe we are the best OEM in the industry to grow value. We're biased, obviously, but we believe that we're the best OEM into the industry to create value for you, the shareholders. If you are analysts in this room, you are experts into the industry. You see many presentations like this. I hope you can feel that we have a solid plan.
It's a target, but at the same time, we have a bottom-up plan. I hope, and that was the intention to bring the management team yesterday here to mingle with the all management team, even if they don't present, to give you a sense that we have a very strong team. We're very excited by this new M25 mission. This is a complete framework. One story. In November, we started our discussion about the next 5-year plan, and we did invite in Montreal, the CEO of a U.S. company who grew his company from CAD 5 billion to CAD 12 billion over 7 years. He explained to us the pain to do this. He explained to us also the reward.
At the end of the day, we are all committed to deliver this plan, and we are ready for the challenge because like Thomas said in his presentation, we like competition and we like to win. The people in the room here and the 13,000 people around the world are ready for the challenge, for the reward, and also the accomplishment that will come with it. That close our presentation this morning. I hope you enjoy it as much as the ride yesterday. Not sure. Open up for any other closing question if you have any. Benoit?
Just a quick one. We look at the path toward the CAD 9.5 billion of revenues, you've got new growth opportunities, it's about CAD 400 million to CAD 500 million. Can you talk a little bit whether we see certain product line or?
No, we will. Obviously, electrification of our product could be one. Our new product could be one. We exploring all the time a new type of product line. We don't believe it will be a significant number within the next five year, but it's something that is part of our thinking.
Project M is also in there.
Yeah. That's true.
As we talked, there's flexibility as to how we brand this product going forward. That's why we put it in the growth.
Yeah, that's fair.
No, not in the bridge.
Thank you very much for coming in Florida, and have a good trip home.