Dollarama Inc. · TSX:DOL
Dollarama — Merger or Acquisition (March 2025)
14 slides from Dollarama's merger presentation, Mar 26, 2025
Slide 1: Dollarama to acquire Australian discount retailer The Reject Shop
Dollarama to acquire Australian discount retailer The Reject Shop March 26, 2025
Slide 2: Cautionary statement
Cautionary statement Forward-Looking Statements Certain statements contained in this presentation, and in any discussion during or following this presentation, about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any othe
Slide 3: Cautionary statement (cont'd)
Cautionary statement (cont’d) Forward-Looking Statements (cont’d) These factors are not intended to represent a complete list of the factors that could affect Dollarama, The Reject Shop or the transaction; however, they should be considered carefully. The purpose of the forward-looking statements is
Slide 4: Transaction rationale
Transaction rationale Strategic entry into a Compelling value creation Underpenetrated Australian retail Local management leading complementary new geography opportunity market with Canadian parallels alongside Dollarama Expands Dollarama business Unlock The Reject Shop’s growth Low discount retaile
Slide 5: 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 6: The Reject Shop today
The Reject Shop today A$866 million Network growth Well-located store network spanning LTM sales every Australian state 393 354 stores stores Ipswich ~7,700 sq. ft.1 Northern Distribution centre Territory Average store size 83 stores 43 Queensland stores 29 South Western stores Australia A$2.3 milli
Slide 7: Dollarama Proposed Acquisition of The Reject Shop
7 - Dollarama Proposed Acquisition of The Reject Shop
Slide 8: Parallels with Dollarama business model
Parallels with Dollarama business model (Fiscal year ended January 28, 2024) (Fiscal year ended December 31, 2023) (Fiscal year ended June 30, 2024) 9% 7% 14% General merchandise 40% 42% Product categories1 Consumables 42% 49% 51% Seasonal 46% Imported 43% Sourcing mix2 52% 48% 52% 48% 57% Domestic
Slide 9: Australian economic environment
Australian economic environment Steady growth expected1 Australia • Healthy and resilient economic environment Population Growth % Estimates Real GDP Growth % Estimates − Steady GDP and household consumption growth 2,2% 2,2% 2,3% 2,3% 2,1% − Stable population growth 1,3% 1,2% 1,3% 1,3% 1,2% 1,2% 1,2
Slide 10: Underpenetrated Australian discount retail market
Underpenetrated Australian discount retail market Underpenetrated discount retail market • Competitive landscape mainly comprised of large general Thousands of people per store1 merchandisers and regional discount retailers • Relatively low competitive − Large general merchandisers include big box r
Slide 11: Plan for the business: Key value creation pillars
Plan for the business: Key value creation pillars Merchandising strategy Operational excellence • Access to Dollarama’s sourcing expertise and products • Optimize store and logistics operations • New price-point strategy • Invest in IT infrastructure and systems Store experience Accelerated store ne
Slide 12: Clear strategy and complementary platforms
Clear strategy and complementary platforms Market Growth target • Additional opportunities in Western Canada, Ontario, Quebec and Atlantic 2,200 stores Canada • Building new logistics hub in Western Canada to support long-term growth and optimize warehousing by 2034 and distribution operations, whil
Slide 13: Appendix
Appendix 13 - Dollarama Proposed Acquisition of The Reject Shop
Slide 14: Comparison between Australia and Canada
Comparison between Australia and Canada 2024 figures Australia Canada Population ~27.3 million1 ~41.1 million1 Annual population growth +1.3% (+350,000)1 +2.9% (+1.2 million)1 Annual migration level +379,8002 +483,3953 Annual real GDP growth +1.2%1 +1.3%1 GDP per capita (PPP adjusted) ~US$69k1 ~US$6