Dollarama Inc. · TSX:DOL
Dollarama — Investor Presentation (April 2025)
42 slides from Dollarama's investor presentation, Apr 3, 2025
Slide 1: A leading Canadian value retailer
A leading Canadian value retailer Investor Presentation – Q4-FY2025 April 3, 2025
Slide 2: Forward-looking statements
Forward-looking statements Certain statements contained in this presentation, and in any discussion during or following this presentation, constitute forward-looking statements about results, levels of activity, performance, goals or achievements of Dollarama and Dollarcity or other future events or
Slide 3: Serving Canadians with purpose
Serving Canadians with purpose Our vision Our purpose Our values To be the leading value To provide Canadians from all Entrepreneurial retailer in every market in walks of life with the best quality which we operate, and value on every dollar they People-focused providing customers with spend and wi
Slide 4: A leading Canadian value retailer
A leading Canadian value retailer (TSX: DOL) $6.4B 45.1% Recognized brand serving Canadians from all walks of life FY25 revenues FY25 gross margin as a % of sales Differentiated concept offering compelling value at multiple, low fixed price points 9.3% 14.5% FY25 sales FY25 SG&A Consistent shopping
Slide 5: A growing reach and international footprint
A growing reach and international footprint 1,616 10 provinces 2,200 corporate-operated Unrivalled Canadian Dollarama store Dollarama stores across presence with locations in all target by 2034 Canada provinces and two territories #1 85% and only national pure of Canadian households play dollar stor
Slide 6: Competitive advantages
Competitive advantages Strong brand Differentiated concept Value proposition Operational excellence Top 10 most reputable brand in Broad assortment of products at Superior direct sourcing and Nimble operator with proven Quebec and Canada according multiple, low fixed price points in buying capabilit
Slide 7: Serving Canadians with Purpose – Select FY24 ESG Report Highlights
Serving Canadians with Purpose – Select FY24 ESG Report Highlights Identification of 5 key Scope 3 New HR technologies Completion of roll-out of initial GHG emissions categories deployed to accelerate hiring, support talent Social Audit Program scope in support of ongoing quantification retention an
Slide 8: Serving Canadians with Purpose – ESG Priority Areas
Serving Canadians with Purpose – ESG Priority Areas Our products Our operations and customers and climate strategy Our people Our supply chain Provide customers with affordable, Minimize environmental Promote a dynamic Enhance vendor compliance safe and quality products footprint and climate risks a
Slide 9: Clear strategy driving sustainable growth and value creation
Clear strategy driving sustainable growth and value creation 1 2 3 4 Maximize core Profitably grow Scale up Dollarcity Optimize capital allocation business Canadian footprint business in LATAM to drive returns • Maintain compelling • Grow Dollarama store • Continue to grow footprint • Actively manag
Slide 10: A strong core business
Q4 A strong core business 10 - Dollarama Investor Presentation Q4-FY2025 FY2025
Slide 11: A diversified product mix offering compelling value
A diversified product mix offering compelling value Product categories1 14% General merchandise Consumables Seasonal 40% $0.87-$5.00 Merchandise 46% sold at low fixed price points Electronics Cleaning supplies Christmas General merchandise Easter Consumables Hardware Confectionery Seasonal Halloween
Slide 12: Effective sourcing and merchandising
Effective sourcing and merchandising Product sourcing expertise and Efficient in-store built-in flexibility merchandising • Strong direct sourcing capabilities, • Clean, bright, compact four-wall reducing costs associated format with consistent offering and with intermediaries and increasing layout
Slide 13: Strong brand recognition and broad customer appeal
Strong brand recognition and broad customer appeal A value retail Serving Canadians shopping destination from all walks of life • Recognized for value for • Appeals to all money and convenience demographics and income ranges • Customers appreciate the breadth and depth • High representation of the p
Slide 14: Enhancing and evolving the service model and customer experience
Enhancing and evolving the service model and customer experience Queue line and check-out process Growing digital footprint to bring optimization additional customer convenience • Optimized queue lines for increased • Growing presence on third-party delivery impulse item displays; in 1,500+ stores p
Slide 15: Optimizing processes and gaining efficiencies
Optimizing processes and gaining efficiencies Retail system optimization Time management and training to drive efficiency • Kronos advanced scheduling • POS systems • Mobile apps • NCR POS terminals • “GPS” training program Energy and environmental Shrink management and efficiency in support of ESG
Slide 16: Driving profitable growth in Canada
Q4 Driving profitable growth in Canada 16 - Dollarama Investor Presentation Q4-FY2025 FY2025
Slide 17: Well-balanced, growing store network
Well-balanced, growing 1,616 stores in 10 Canadian provinces and store network 2 territories Head office and logistics Store footprint Store footprint activities centralized in by geography By market type Montreal area with Calgary 1 logistics hub to be built 1 8% Atlantic Canada 19% 25% Urban 27% S
Slide 18: Efficient and profitable network growth
Efficient and profitable network growth • Strong free cash flow generation to fund $3.2M organic network growth Average annual store sales within 2 years of opening • Efficient capital model requiring an avg. of $920K in leasehold improvements, fixtures and inventory, net of tenant allowance, for a
Slide 19: A robust evaluation process: path to 2,200-store target
A robust evaluation process: path to 2,200-store target Micro Macro Theoretical True potential potential potential potential Assessment of real estate Internal validation of Result of micro and Potential adjusted based on opportunities, population growth and competitive feasibility of assessment reg
Slide 20: Scaling up Dollarcity
Q4 Scaling up Dollarcity 20 - Dollarama Investor Presentation Q4-FY2025 FY2025
Slide 21: Dollarcity, a proven high-potential LATAM value retailer
Dollarcity, a proven high-potential LATAM value retailer Compelling growth platform in dynamic LATAM markets with appetite for DOL model 60.1% 4 operating countries Total DOL equity interest, Growing presence in Colombia, El Strong local partners and management team with option to purchase Salvador,
Slide 22: A growing footprint in key markets
A growing footprint in key markets Mexico First stores expected to be Store footprint opened in summer 2025 by geography 10% 18% Colombia Guatemala El Salvador 108 59% Guatemala El Salvador Panama 13% 77 Peru Colombia 632 368 Store network growth 532 79 Head office (Number of stores) in Panama Cit
Slide 23: Long-term target of 1,050 Dollarcity stores
Long-term target of 1,050 Dollarcity stores Maintain pace of growth; Build efficient and low-cost operating grow presence in key markets platform to support growth • Long-term store target revised to • Building up logistics platform to 1,050 Dollarcity stores by 2031 (up support growth plans – decen
Slide 24: Dollarama vs. Dollarcity
Dollarama vs. Dollarcity DOLLARAMA DOLLARCITY Merchandise mix1 (based on annual retail value For the year ended For the year ended For the year ended For the quarter ended for respective latest full fiscal years) Feb. 2, 2025 Jan. 28, 2024 Dec. 31, 2024 Dec. 31, 2023 49% 46% 40% 42% Dollarama Number
Slide 25: Proposed acquisition of Australian discount retailer The Reject Shop
Q4 Proposed acquisition of Australian FY2025 discount retailer The Reject Shop 25 - Dollarama Investor Presentation Q4-FY2025
Slide 26: Transaction summary
Transaction summary • On March 26, 2025, Dollarama entered into a scheme implementation agreement with The Reject Shop (ASX: TRS) Acquisition • Proposed acquisition of all ordinary shares of The Reject Shop for an all-cash consideration of A$6.68 per share summary − Represents 108% premium to The Re
Slide 27: Financial metrics
Q4 Financial metrics 27 - Dollarama Investor Presentation Q4-FY2025 FY2025
Slide 28: Robust financial performance
Robust financial performance FOURTH QUARTER ENDED Y-O-Y FISCAL YEAR ENDED Y-O-Y (in millions of dollars, except per share amounts) Feb. 2, 2025 Jan. 28, 2024 Growth Feb. 2, 2025 Jan. 28, 2024 Growth Comparable store sales 4.9% 8.7% 4.6% 12.8% Sales $1,881 % of sales $1,639 % of sales 14.8% $6,413 %
Slide 29: Best-in-class performance on key metrics
Best-in-class performance on key metrics Strong organic growth with low capital Balanced approach to operating margin Return on invested capital2 requirements LTM EBIT margin (%) (%) Growth and cash conversion (%) 8% 26.7 Dollarama 21.9% Last three fiscal years store count CAGR Dollar General 4.9% 6
Slide 30: Strong key metrics growth since IPO
Strong key metrics growth since IPO Store count Sales (Number of stores) ($M) 6,413 1,551 1,616 5,867 1,421 1,486 1,291 1,356 5,053 1,095 1,160 1,225 4,331 955 1,030 3,787 4,026 785 874 2,963 3,266 3,549 652 704 2,331 2,650 1,859 2,065 1,420 1,603 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 31: Best-in-class margin since IPO
Best-in-class margin since IPO EBITDA margin EBIT margin (%) (%) 25.5% 26.7% 31.7% 33.1% 23.8% 22.9% 23.6% 30.4% 29.3% 28.1% 29.6% 30.1% 20.7% 21.8% 23.1% 21.4% 22.7% 25.3% 18.1% 22.5% 23.7% 16.3% 17.3% 17.2% 18.4% 19.1% 19.5% 19.8% 14.5% 16.5% 1 2 1 2 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Slide 32: A balanced approach to capital allocation
A balanced approach to capital allocation Invest in organic growth Return capital to shareholders • New stores (avg. of 65 net new stores opened annually in last • Maximize shareholder returns with a focus on value- 7 fiscal years) enhancing share buybacks (over 44% of public float repurchased since
Slide 33: Returning capital to shareholders
Returning capital to shareholders ~$7.5B Uses of cash (in millions of dollars) 1,121 1,168 returned to shareholders in share repurchases since FY13 Dividends 862 Share repurchases 752 753 736 670 584 1,071 478 1060 381 ~$725M 331 625 705 813 533 689 656 returned to shareholders in 187 436 327 142 di
Slide 34: Actively managed capital structure
Actively managed capital structure 89% $1,173M Debt structure as at Q4-FY2025 fixed rate debt available liquidity ($123M cash + $1,050M undrawn and available under credit facility)1 $500M $450M Fixed $375M Fixed 5.533% $375M Fixed 5.165% Fixed 3.43% 3.3 $250M 1.871% $300M Fixed 2.443% weighted avera
Slide 35: Strong track record of shareholder value creation
Strong track record of shareholder value creation Stock performance since January 30, 2015 3250 3050 Dollarama (Total Cumulative Return of a $100 investment) 2850 TSX Capped Consumer 584% 2650 Discretionary Index 10-year total 2450 shareholder return1 2250 2050 1850 1650 205% 1450 5-year total share
Slide 36: Appendix
Appendix 36 - Dollarama Investor Presentation Q4-FY2025
Slide 37: A seasoned board and management team
A seasoned board and management team Executive officers Neil Rossy President and Chief Executive Officer Board of directors Johanne Choinière Stephen Gunn Nicholas Nomicos Chief Operating Officer Chair of the Board Senior Advisor Corporate Director Nonantum Capital Partners Patrick Bui Joshua Bekens
Slide 38: Dollarama through the years
Dollarama through the years 1992 2004 2009 2011 2012 2013 Dollarama founded as Investment by IPO (TSX:DOL) Sale by Bain Capital of Introduction of $2.50 Beginning of single-price point retail Bain Capital remaining equity stake and $3.00 price commercial partnership 585 stores in points with LATAM v
Slide 39: DOL vs. Canadian dollar store landscape
DOL vs. Canadian dollar store landscape Three-year store count Dollarama vs. next four pure play competitors 1 ~6.4x larger than our next largest pure Thousands of people per 1,800 Q4-F23 Q4-F24 Q4-F25 play competitor Dollarama store2 1,616 1,600 1,551 1,486 in Canada 32 1,400 26 22 22 1,200 1,000
Slide 40: DOL vs. US pure play dollar stores
DOL vs. US pure play dollar stores DOLLARAMA DOLLAR GENERAL DOLLAR TREE LTM revenues ($ millions) $6,413 US$40,612 US$17,579 LTM EBITDA ($ millions) $2,122 US$2,686 US$2,018 Number of stores 1,616 20,662 8,881 SCALE Average sales / store ($ millions) C$4.0 US$2 US$2 Average store size (sq. ft) 10,45
Slide 41: Dollarcity governance framework
Dollarcity governance framework Dollarama board of directors Dollarama (60.1%) • Majority representation on the boards of Dollarcity and of the parent company of the entity that will operate the Mexico portion of the business, with certain strategic and operational decisions being subject to 100% st
Slide 42: Thank you
Thank you Dollarama Inc. 5805 Royalmount Ave. Montreal, QC H4P 0A1