Slide 1: A leading Canadian value retailer
A leading Canadian value retailer Investor Presentation – Q2-FY2025 September 11, 2024
Slide 2: Forward-looking statements
Forward-looking statements This presentation and the accompanying oral presentation contain forward-looking statements about results, levels of activity, performance, goals or achievements of Dollarama and Dollarcity or other future events or developments that may affect Dollarama and Dollarcity whi
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) Recognized brand serving Canadians from all $6.1B 45.1% walks of life LTM revenues LTM gross margin as a % of sales Differentiated concept offering compelling value at multiple, low fixed price points 11.3% 14.5% LTM sales LTM SG&A Consistent shopping exp
Slide 5: A growing reach and international footprint
A growing reach and international footprint 1,583 10 provinces 2,000 corporate-operated Unrivalled Canadian Dollarama store Dollarama stores across presence with locations in all target by 2031 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
A strong core business Q2 10 - Dollarama Investor Presentation Q2-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 Electronics Cleaning supplies Christmas price points General merchandise Easter Consumables Hardware Confectionery Seasonal Halloween
Slide 12: Effective sourcing and merchandising
Effective sourcing and merchandising Product sourcing expertise and built-in Efficient in-store 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 additional optimization customer convenience • Optimized queue lines • Online store offering a subset of products for for increased impulse item displays; purchase by
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
Driving profitable growth in Canada Q2 16 - Dollarama Investor Presentation Q2-FY2025 FY2025
Slide 17: Well-balanced, growing store network
Well-balanced, growing store network 1,583 stores in 10 Canadian provinces and 2 territories Head office and logistics Store footprint Store footprint activities centralized in by geography By building type Montreal area 1 1 8% Atlantic Canada 22% 26% 27% Quebec Non-mall Ontario Mall 139 123 Western
Slide 18: Efficient and profitable network growth
Efficient and profitable network growth • Strong free cash flow generation to fund $3.1M 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 2,000-store target
A robust evaluation process: path to 2,000-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
Scaling up Dollarcity Q2 20 - Dollarama Investor Presentation Q2-FY2025 FY2025
Slide 21: Transaction Summary
Transaction Summary Dollarama acquired an additional 10.0% equity interest in Dollarcity on June 11, 2024 • Dollarama’s resulting equity interest in Dollarcity is 60.1% • The consideration for the acquisition was satisfied by the issuance of 6,060,478 common shares of Dollarama, representing an impl
Slide 22: Dollarcity, a high-potential LATAM value retailer
Dollarcity, a 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, Guatem
Slide 23: A growing footprint in key markets
A growing footprint in key markets Head office in Panama City 570 stores in four countries Store footprint Mexico by geography First store expected to be piloted in calendar 2026 Decentralized logistics operations 10% 18% Colombia Guatemala El Salvador 101 59% Guatemala El Salvador Panama 13% 74 Per
Slide 24: 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 1,050 • Building up logistics platform to Dollarcity stores by 2031 (up from 850 support growth plan
Slide 25: Dollarama vs. Dollarcity
Dollarama vs. Dollarcity DOLLARAMA DOLLARCITY Merchandise mix1 (based on annual retail value For the year ended For the quarter ended For the year ended For the quarter ended for respective latest full fiscal years) Jan. 28, 2024 Jul. 28, 2024 Dec. 31, 2023 Jun. 30, 2024 49% 46% 40% 42% Dollarama Nu
Slide 26: Financial metrics
Financial metrics Q2 26 - Dollarama Investor Presentation Q2-FY2025 FY2025
Slide 27: Robust financial performance
Robust financial performance SECOND QUARTER ENDED Y-O-Y FISCAL YEAR ENDED Y-O-Y (in millions of dollars, except per share amounts) Jul. 28, 2024 Jul. 30, 2023 Growth Jan. 28, 2024 Jan. 29, 2023 Growth Comparable store sales 4.7% 15.5% 12.8% 12.0% Sales $1,563 % of sales $1,456 % of sales 7.3% $5,867
Slide 28: Best-in-class performance on key metrics
Best-in-class performance on key metrics Strong organic growth with low capital Balanced approach to operating margin Return on invested capital2 requirements LTM EBIT margin (%) (%) Growth and cash conversion (%) 8% 26.2 Dollarama 20.6% Last three fiscal years store count CAGR Dollar General 6.1% 6
Slide 29: Strong key metrics growth since IPO
Strong key metrics growth since IPO Store count Sales (Number of stores) ($M) 1,486 1,551 1,583 5,867 6,086 1,421 1,291 1,356 5,053 1,095 1,160 1,225 4,026 4,331 874 955 1,030 3,266 3,549 3,787 652 704 785 2,331 2,650 2,963 1,859 2,065 1,420 1,603 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 30: Best-in-class margin since IPO
Best-in-class margin since IPO EBITDA margin EBIT margin (%) (%) 32.5% 25.5% 26.2% 30.4% 29.3% 30.1% 31.7% 23.1% 23.8% 22.9% 23.6% 28.1% 29.6% 20.7% 21.8% 21.4% 22.7% 25.3% 18.1% 22.5% 23.7% 16.3% 17.3% 17.2% 19.1% 19.5% 19.8% 14.5% 16.5% 18.4% 1 1 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Slide 31: 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 • Maximize shareholder returns with a focus on value- last 7 fiscal years) enhancing share buybacks (over 43% of public float repurchased since
Slide 32: Returning capital to shareholders
Returning capital to shareholders 1,121 $6.8B Uses of cash (in millions of dollars) returned to shareholders in 862 share repurchases since FY13 752 753 736 Dividends 670 Share repurchases 584 478 1060 813 381 331 705 689 656 289 $675M 625 533 187 436 327 142 293 returned to shareholders in 1 263 13
Slide 33: Actively managed capital structure
Actively managed capital structure 89% $1,321M Debt structure as at Q2-FY2025 fixed rate debt available liquidity ($271M cash + $1,050M undrawn and available under credit facility)1 $500M $450M Fixed $375M Fixed 5.533% $375M Fixed 5.165% Fixed 3.59% 3.8 $250M 1.871% $300M Fixed 2.443% weighted avera
Slide 34: Strong track record of shareholder value creation
Strong track record of shareholder value creation Stock performance since July 28, 2014 2850 2750 Dollarama (Total Cumulative Return of a $100 investment) 2650 2550 808% 2450 TSX Capped Consumer 2350 Discretionary Index 2250 2150 10-year total 2050 shareholder return1 1950 1850 1750 1650 1550 171% 1
Slide 35: Appendix
Q2 FY2025 Appendix 35 - Dollarama Investor Presentation Q2-FY2025
Slide 36: 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 37: 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 $3.00 price commercial partnership 585 stores in points with LATAM v
Slide 38: DOL vs. Canadian dollar store landscape
DOL vs. Canadian dollar store landscape Three-year store count Dollarama vs. next four pure play competitors 1 ~6.4x larger than our next largest pure Thousands of people per 1,800 Q2-F23 Q2-F24 Q2-F25 play competitor Dollarama store2 1,583 1,600 1,525 in Canada 1,444 32 1,400 26 22 22 1,200 1,000
Slide 39: DOL vs. US pure play dollar stores
DOL vs. US pure play dollar stores DOLLARAMA DOLLAR GENERAL DOLLAR TREE LTM revenues ($ millions) $6,086 US$38,692 US$30,941 LTM EBITDA ($ millions) $1,980 US$3,019 US$2,713 Number of stores 1,583 20,345 16,388 SCALE Average sales / store ($ millions) C$3.9 US$1.9 US$1.9 Average store size (sq. ft)
Slide 40: 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 41: Thank you
Thank you Dollarama Inc. 5805 Royalmount Ave. Montreal, QC H4P 0A1