A. Refer to the financial statements and notes of Dollarama Inc. in Appendix A. Calculate the following ratios or measures for the two years presented. In each case, indicate whether the ratio or measure improved or worsened. State any assumptions you make.

a. Current ratio

b. Quick ratio

c. Accounts receivable turnover number of times

d. Average accounts receivable collection period in days

e. Inventory turnover number of times

f. Days to sell inventory

g. Accounts payable turnover number of times

h. Accounts payable payment period in days

i. Gross margin percentage

j. Profit margin percentage

k. Return on assets ratio

l. Interest coverage ratio

Selected information from Balance Sheet as at February 1, 2015 (in thousands):

Accounts receivable $10,004

Merchandise inventories $408,919

Total assets $1,700,838

Accounts payable and accrued liabilities $175,739

B. Explain what ratios (a), (b), (i), (j), (k) and (l) mean. Dont describe the calculation.

Appendix A:

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Dollarama Inc. and its subsidiaries as at January 29, 2017 and January 31, 2016 and their financial performance and their cash flows for the years then ended in accordance with International Financial Reporting Standards. Pricewaterhouse Coopers LLP March 30, 2017 DOLLARAMA INC. Consolidated Statement of Financial Position as at (Expressed in thousands of Canadian dollars) Note January 29, January 31, 2017 2016 Assets Current assets Cash and cash equivalents Accounts receivable Deposits and prepaid expenses Merchandise inventories Derivative financial instruments 62,015 15,386 7,162 465,715 8,787 559,065 59,178 11,118 8,900 470,195 67,542 616,933 Non-current assets Property, plant and equipment Intangible assets Goodwill Total assets 437,089 139,515 727,782 1,863,451 332,225 136,934 727,782 1,813,874 DOLLARAMA INC. Consolidated Statement of Changes in Shareholders' Equity for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Total Note Number of common shares Share capital Contributed Retained surplus earnings/(deficit) Accumulated other comprehensive income (loss) $ 12 129,790,354 462,734 15,338 66,296 196,112 385,146 740,480 385,146 12 3,499 3,499 Balance-February 1, 2015 Net earnings for the year Other comprehensive income Unrealized gain on derivative financial instruments, net of reclassification adjustment and income tax of $(1,290) Dividends declared Repurchase and cancellation of shares Share-based compensation Issuance of common shares Reclassification related to exercise of share options Balance-January 31, 2016 Balance-January 31, 2016 (45,722) (597,911) (7,729,391) (27,456) (45,722) (625,367) 6,114 2,702 6,114 164,141 2,702 1,316 439,296 (1,316) 20,136 122,225,104 (62,375) 69,795 466,852 12 122,225,104 439,296 20,136 69,795 (62,375) 445,636 466,852 445,636 Net earnings for the year Other comprehensive loss Unrealized loss on derivative financial instruments, net of reclassification adjustment and income tax recovery of $25,860 Dividends declared 12 (71,141) (71,141) (47,440) (47,440) 12 (7,420,168) (26,669) (678,778) 6,932 Repurchase and cancellation of shares Share-based compensation Issuance of common shares Reclassification related to exercise of share options Balance-January 29, 2017 (705,447) 6,932 4,892 246,413 - 4,892 2,747 420,266 (2,747) 24,321 115,051,349 (342,957) (1,346) 100,284 DOLLARAMA INC. Consolidated Statement of Net Earnings and Comprehensive Income (Loss) for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Operating income Financing costs Earnings before income taxes Income taxes Net earnings for the year Other comprehensive income (loss) Items to be reclassified subsequently to net earnings Unrealized gain (loss) on derivative financial instruments, net of reclassification adjustment Income taxes relating to components of other comprehensive income (loss) Total other comprehensive income (loss), net of income taxes Note January 29, 2017 January 31, 2016 2,963,219 2,650,327 17 1,801,935 1,617,051 1,161,284 1,033,276 458,026 435,816 57,748 48,085 645,510 549.375 33,083 21,395 612,427 527,980 166,791 142,834 445,636 385,146 (97,001) 25,860 (71,141) 4.789 (1,290) 3,499 374,495 388,645 Total comprehensive income for the year Earnings per common share Basic net earnings per common share Diluted net earnings per common share Weighted average number of common shares outstanding during the year (thousands) Weighted average number of diluted common shares outstanding during the year (thousands) $3.75 $3.71 118,998 120,243 $3.03 $3.00 127,271 128,420 16 DOLLARAMA INC. Consolidated Statement of Cash Flows for the years ended (Expressed in thousands of Canadian dollars) Note January 29, 2017 January 31, 2016 Operating activities Net earnings for the year 445,636 385,146 Adjustments for: Depreciation of property, plant and equipment and amortization of intangible assets 17 57,748 48,085 Amortization of deferred tenant allowances (4,795) (4,929) Amortization of deferred leasing costs 519 584 Amortization of debt issue costs 1,481 1,301 Recognition of realized gains on foreign exchange contracts (46,269) (76,665) Cash settlement of gains on foreign exchange contracts 16,108 97,921 Deferred lease inducements 6,020 4,811 Deferred tenant allowances 8,970 11,275 Share-based compensation 6,932 6,114 Financing costs on long-term debt 268 (304) Deferred income taxes 16,105 Loss on disposal of assets 641 4,118 40 508,763 (3,595) 505,168 478,098 (28,861) 449,237 (153,574) (12,640) 462 (165,752) (83,231) (11,199) 670 (93,760) 124,834 235,000 Changes in non-cash working capital components Net cash generated from operating activities Investing activities Additions to property, plant and equipment Additions to intangible assets Proceeds on disposal of property, plant and equipment Net cash used in investing activities Financing activities Proceeds from long-term debt - Series 1 Floating Rate Notes Net proceeds (repayments) from (of) Credit Facility Proceeds from long-term debt - 2.337% Fixed Rate Notes Payment of debt issue costs Repayment of finance lease Issuance of common shares Dividends paid Repurchase and cancellation of shares Net cash used in financing activities Increase in cash and cash equivalents Cash and cash equivalents beginning of year Cash and cash equivalents - ending of year (120,000) 525,000 (2,319) (588) 4,892 (46,936) (696,628) (336,579) 2,837 59,178 62,015 (1,003) (978) 2,702 (45,116) (651,941) (336,502) 18,975 40,203 59,178 DOLLARAMA INC. Notes to Consolidated Financial Statements January 29, 2017 and January 31, 2016 (Expressed in thousands of Canadian dollars, unless otherwise noted) 1 General Information Dollarama Inc. (the "Corporation") was formed on October 20, 2004 under the Canada Business Corporations Act. The Corporation operates dollar stores in Canada that sell all items for $4.00 or less. As at January 29, 2017, the Corporation maintains retail operations in every Canadian province. The Corporation's corporate headquarters, distribution centre and warehouses are located in the Montreal area. The Corporation is listed on the Toronto Stock Exchange ("TSX") under the symbol "DOL" and is incorporated and domiciled in Canada. The Corporation's fiscal year ends on the Sunday closest to January 31 of each year and usually has 52 weeks. However, as is traditional with the retail calendar, every five to six years, a week is added to the fiscal year. The fiscal years ended January 29, 2017 and January 31, 2016 were comprised of 52 weeks. The Corporation's head and registered office is located at 5805 Royalmount Avenue, Montreal, Quebec H4P A1. As at January 29, 2017, the significant entities within the legal structure of the Corporation are as follows: Dollarama Inc. (Canada) Dollarama L.P. (Qubec) Dollarama L.P. operates the chain of stores and performs related logistical and administrative support activities. 2 Basis of Preparation The Corporation prepares its consolidated financial statements in accordance with generally accepted accounting principles in Canada ("GAAP") as set out in the CPA Canada Handbook - Accounting under Part I, which incorporates International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (LASB"). 3 Summary of Significant Accounting Policies Property, plant and equipment Property, plant and equipment are carried at cost and depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Store and warehouse equipment 10 to 15 years Vehicles 5 years Building and roof 20-50 years Leasehold improvements Lease term Computer equipment 5 years The Corporation recognizes in the carrying amount of property, plant and equipment the full purchase price of assets acquired or constructed as well as the costs incurred that are directly incremental as a result of the construction of a specific asset, when they relate to bringing the asset into working condition. The Corporation also capitalizes the cost of replacing parts of an item when that cost is incurred, if it is probable that the future economic benefits embodied within the item will flow to the Corporation and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. Estimates of useful lives, residual values and methods of depreciation are reviewed annually. Any changes are accounted for prospectively as a change in accounting estimate. If the expected residual value of an asset is equal to or greater than its carrying value, depreciation on that asset is ceased. Depreciation is resumed when the expected residual value falls below the asset's carrying value. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of the item and are recognize directly in the consolidated statement of net earnings and comprehensive income (loss). Goodwill and intangible assets The Corporation classifies intangible assets into three categories: (1) intangible assets with finite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. Intangible assets with finite lives subject to amortization The Corporation determines the useful lives of identifiable intangible assets based on the specific facts and circumstances related to each intangible asset. Finite life intangibles are carried at cost and depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Computer software 5 years Deferred leasing costs Lease term The Corporation recognizes in the carrying amount of intangible assets with finite lives subject to amortization the full purchase price of the intangible assets developed or acquired as well as other costs incurred that are directly incremental as a result of the development of a specific intangible asset, when they relate to bringing the asset into working condition. Intangible assets with indefinite lives not subject to amortization 168,517 7,648 1,316 85,475 262,956 Balance January 31, 2016 Net book value Balance January 31, 2016 147,832 16,948 3,033 164,412 332,225 1) Total costs of $67,923 for the land, building and roof also include racking, fixtures and other equipment that are in the process of being installed. The building itself is now substantially complete. 2) Recognized costs of $33,295 for the building and roof will start being depreciated as at January 30, 2017, which is when management deemed the building to be substantially available for use. Racking, fixtures and other equipment (including hardware and software) totalling $12,484 will be reclassified to store and warehouse equipment, computer equipment and computer software at a later date, once depreciation begins. 7 Intangible Assets and Goodwill Deferred leasing costs Computer software Trade name' Total intangible assets Goodwill 7,046 108,200 727,782 55,078 12,640 (4,058) 63,660 170,324 12,640 (4,058) 178,906 7,046 108,200 727,782 29,900 Cost Balance January 31, 2016 Additions Dispositions Balance January 29, 2017 Accumulated amortization Balance January 31, 2016 Amortization Dispositions Balance January 29, 2017 Net book value Balance January 29, 2017 Cost Balance February 1, 2015 3,490 519 9,540 (4,058) 35,382 33,390 10,059 (4,058) 39,391 4,009 3,037 28,278 108,200 139,515 727,782 6,946 47,223 108,200 162,369 727,782 11,199 (3,244) 170,324 727,782 28,293 8,341 (3,244) 33,390 136,934 727,782 Additions 100 11,099 Dispositions (3,244) Balance January 31, 2016 7,046 55,078 108,200 Accumulated amortization Balance February 1, 2015 2,906 25,387 Amortization 584 7,757 Dispositions (3,244) Balance January 31, 2016 3,490 29,900 Net book value Balance January 31, 2016 3,556 25,178 108,200 1) Indefinite life intangibles are not subject to amortization. 8 Accounts Payable and Accrued Liabilities January 29, 2017 January 31, 2016 $ Trade accounts payable 56,775 53,347 Employee benefits payable 49,686 50,627 Merchandise inventories in transit 28,613 21,729 Sales tax payable 32,542 29,837 Accrued share repurchases 8,819 Rent and other expenses 22,051 10,631 198,486 166,171 9 Long-Term Debt Long-term debt outstanding consists of the following as at: January 29, January 31, 2017 2016 525,000 400,000 400,000 Senior unsecured notes bearing interest at a fixed annual rate of 2.337% payable in equal semi-annual instalments, maturing July 22, 2021 (the 2.337% Fixed Rate Notes") Senior unsecured notes bearing interest at a fixed annual rate of 3.095% payable in equal semi-annual instalments, maturing November 5, 2018 (the 3.095% Fixed Rate Notes and, collectively with the 2.337% Fixed Rate Notes, the Fixed Rate Notes") Senior unsecured notes bearing interest at a variable rate equal to 3-month bankers' acceptance rate (CDOR) plus 54 basis points payable quarterly, maturing May 16, 2017 (the Series 1 Floating Rate Notes) Unsecured revolving credit facility maturing December 14, 2021 (the Credit Facility") Less: Unamortized debt issue costs Accrued interest on the Series 1 Floating Rate Notes and Fixed Rate Notes 274,834 274,834 130,000 (4,899) 3,809 1,328,744 (278,643) 1,050,101 250,000 (4,062) 3,542 924,314 (3,542) 920,772 Current portion (includes accrued interest on the Series 1 Floating Rate Notes and Fixed Rate Notes as at year end) Fixed Rate Notes On July 22, 2016, the Corporation issued the 2.337% Fixed Rate Notes at par, for aggregate gross proceeds of $525,000, by way of private placement, in reliance upon exemptions from the prospectus requirements under applicable securities legislation. Proceeds were used by the Corporation to repay indebtedness outstanding under the Credit Facility and for general corporate purposes. The 2.337% Fixed Rate Notes were assigned a rating of BBB, with a stable trend, by DBRS. The 2.337% Fixed Rate Notes bear interest at a rate of 2.337% per annum, payable in equal semi-annual instalments, in arrears, on January 22 and July 22 of each year until maturity on July 22, 2021. As at January 29, 2017, the carrying value of the 2.337% Fixed Rate Notes was $523,192 (January 31, 2016 - n/a). The fair value of the 2.337% Fixed Rate Notes as at January 29, 2017 was determined to be $526,628 valued as a level 2 in the fair value hierarchy (January 31, 2016 - n/a). As at January 29, 2017, the carrying value of the 3.095% Fixed Rate Notes was $401,994 (January 31, 2016 - $401,546). The fair value of the 3.095% Fixed Rate Notes as at January 29, 2017 was determined to be $410,100 valued as a level 2 in the fair value hierarchy (January 31, 2016 - $411,444). The 3.095% Fixed Rate Notes are due on November 5, 2018. Floating Rate Notes As at January 29, 2017, the carrying value of the Series 1 Floating Rate Notes was $275,249 (January 31, 2016 - $274,786). The fair value of the Series 1 Floating Rate Notes as at January 29, 2017 was determined to be $275,059 valued as a level 2 in the fair value hierarchy (January 31, 2016 - $273,642). The Series 1 Floating Rate Notes are due on May 16, 2017 and therefore are presented as a current liability on the consolidated statement of financial position as at January 29, 2017. Credit Facility On October 30, 2015, the Corporation and the lenders entered into an amending agreement to the second amended and restated credit agreement dated as of October 25, 2013 (the "Credit Agreement") pursuant to which, among other things, the Corporation received additional commitments from lenders in the amount of $125,000 pursuant to the accordion feature of the Credit Agreement, for a period ending no later than June 15, 2017, thereby temporarily bringing the total credit available under the revolving facility from $250,000 to $375,000. On January 29, 2016, the Corporation and the lenders entered into another amending agreement to the Credit Agreement pursuant to which the Corporation received new additional commitments from lenders in the amount of $250,000 for a period ending no later than January 29, 2018, thereby temporarily bringing the total credit available under the Credit Facility from $375,000 to $625,000. Effective July 25, 2016, following the offering of the 2.337% Fixed Rate Notes (the proceeds of which were used to repay indebtedness outstanding under the Credit Facility), the Corporation cancelled $125,000 of the $625,000 aggregate amount available under the Credit Facility in order to reduce standby fees payable on the unutilized portion. On November 21, 2016, the Corporation and the lenders entered into a new amending agreement to the Credit Agreement pursuant to which the term was extended by one year, from December 14, 2020 to December 14, 2021. As a result, initial commitments in the amount of $250,000 are now available until December 14, 2021. New commitments made by lenders in January 2016, in the amount of $250,000, remain available until January 29, 2018 only. Under the Credit Agreement, as amended, the Corporation may, under certain circumstances and subject to receipt of additional commitments from existing lenders or other eligible institutions, request increases to the credit facility up to an aggregate amount, together with all then-existing commitments, of $1,300,000. As at January 29, 2017, $130,000 were outstanding under the Credit Facility (January 31, 2016 - $250,000), other than letters of credit issued for the purchase of inventories, which amounted to $831 (January 31, 2016 - $1,000). As at January 29, 2017, the Corporation was in compliance with all of its financial covenants. 10 Leases and Commitments a. Operating leases The basic rent and contingent rent expense of operating leases for stores, warehouses, distribution centre and corporate headquarters included in the consolidated statement of net earnings and comprehensive income (loss) are as follows: January 29, 2017 January 31, 2016 Basic rent Contingent rent 163,784 4,624 168,408 4:07 150,245 4,819 155,064 b. Commitments As at January 29, 2017, contractual obligations for operating leases amounted to $1,055,938 (January 31, 2016 - $975,370). The leases extend, depending on the renewal option, over various years up to the year 2039. Non-cancellable operating lease rentals are payable as follows: January 29, 2017 January 31, 2016 $ Less than 1 year Between 1 and 5 years More than 5 years Total 166,859 566,421 322,658 1,055,938 151,440 502,106 321,824 975,370 11 Deferred Rent and Lease Inducements The following table shows the continuity of other liabilities, which consisted of deferred tenant allowances and deferred lease inducements: January 29, 2017 January 31, 2016 Deferred tenant allowances, beginning of year 34,380 28,034 Additions 8,970 11,275 Amortization (4,795) (4,929) Deferred tenant allowances, end of year 38,555 34,380 Deferred lease inducements, beginning of year 37,252 32,441 Additions, net of straight-line rent 6,020 4,811 Deferred lease inducements, end of year 43,272 37,252 81,827 71,632 12 Shareholders' Equity a) Share capital Normal course issuer bid During the 12-month period ended June 16, 2016, the Corporation was authorized to repurchase for cancellation up to 11,797,176 common shares (representing 10% of the public float as at the close of markets on June 9, 2015) (the "2015-2016 NCIB"). On June 8, 2016, the Corporation renewed its normal course issuer bid to repurchase for cancellation up to 5,975,854 common shares (representing 5% of the common shares issued and outstanding as at the close of markets on June 7, 2016) during the 12-month period from June 17, 2016 to June 16, 2017 (the "2016- 2017 NCIB"). The total number of common shares repurchased for cancellation under the 2016-2017 NCIB and the 2015-2016 NCIB during the year ended January 29, 2017 amounted to 7.420,168 common shares (January 31, 2016 - 7,729.391 common shares under 2015-2016 NCIB and the NCIB in effect before that) for a total cash consideration of $705,447 (January 31, 2016 - $625-367). For the year ended January 29, 2017, the Corporation's share capital was reduced by $26,669 (January 31, 2016 - $27,456) and the remaining $678,778 (January 31, 2016 - $597,911) was accounted for as a reduction of retained earnings. As part of the 2016-2017 NCIB, the Corporation entered into a specific share repurchase program with a third party on January 10, 2017 to repurchase common shares through daily purchases, subject to the conditions of an issuer bid exemption order issued by the Ontario Securities Commission. b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital are as follows: January 29, 2017 January 31, 2016 Number of common shares Amount Number of common shares Amount S Balance, beginning of year 122,225,104 439,296 129,790,354 462,734 Cancellation under NCIB (7,420,168) (26,669) (7,729,391) (27,456) Exercise of share options 246,413 7,639 164,141 4,018 Balance, end of year 115,051,349 420,266 122,225,104 439,296 f) Deficit As at January 29, 2017, the deficit was $342,957 as a result of: 1) an opening deficit, as at February 1, 2016 of $62,375; 2) net earnings of $445,636; 3) dividends declared of $47,440; and 4) cash paid for the repurchase of common shares under the Corporation's normal course issuer bid of $678,778. The portion of the price paid by the Corporation to repurchase common shares that is in excess of their book value is recognized as a reduction in retained earnings, whereas the portion of the price paid for the common shares that corresponds to the book value of those shares is recognized as a reduction of share capital. Refer to Note 12 a) for a discussion on the Corporation's normal course issuer bid. 14 Financial Instruments c) Credit risk Credit risk is the risk of an unexpected loss if a third party fails to meet its contractual obligations. Financial instruments that potentially subject the Corporation to credit risk consist of cash and cash equivalents, accounts receivable and derivative contracts. The Corporation offsets the credit risk by depositing its cash and cash equivalents, including restricted cash, with major financial institutions whom have been assigned high credit ratings by internationally recognized credit rating agencies. The Corporation is exposed to credit risk on accounts receivable from landlords for tenant allowances. In order to reduce this risk, the Corporation may retain rent payments until accounts receivable are fully satisfied. Finally, the Corporation only enters into derivative contracts with major financial institutions for the purchase of USD forward contracts, as described above, and has master netting agreements in place. d) Liquidity risk Liquidity risk is the risk that the Corporation will not be able to meet its obligations as they fall due. The Corporation's funded debts are guaranteed by Dollarama L.P. and Dollarama GP Inc. The Corporation's objective is to maintain sufficient liquidity to meet its financial liabilities as they become due and remain compliant with financial covenants under the Credit Facility. The Corporation manages liquidity risk through various means including, monitoring cash balances and planned cash flows generated from operations and used for investing in capital assets. 16 Earnings per Share a. Basic Basic earnings per common share is calculated by dividing the profit attributable to shareholders of the Corporation by the weighted average number of common shares outstanding during the year. January 29, 2017 January 31, 2016 Net earnings attributable to shareholders of the Corporation Weighted average number of common shares outstanding during the year (thousands) Basic net earnings per common share $445,636 118,998 $ 3.75 $385,146 127,271 $ 3.03 b. Diluted Diluted earnings per share is calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all dilutive potential common shares. For the share options, the Corporation's only category of dilutive potential common shares, a calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Corporation's shares) based on the exercise price of outstanding share options. The number of shares as calculated above is then compared with the number of shares that would have been issued assuming the exercise of the share options, plus any unrecognized compensation costs. January 29, January 31, 2017 2016 $445,636 $385,146 127,271 Net earnings attributable to shareholders of the Corporation and used to determine basic and diluted net earnings per common share Weighted average number of common shares outstanding during the year (thousands) Assumed share options exercised (thousands) Weighted average number of common shares for diluted net earnings per common share (thousands) Diluted net earnings per common share 118,998 1,245 120,243 3.71 1,149 128,420 3.00 $ $ 17 Expenses by Nature Included in the Consolidated Statement of Net Earnings and Comprehensive Income (Loss) January 29, 2017 January 31, 2016 1,523,272 278,663 1,801,935 1,361,125 255,926 1,617,051 48,208 9,540 57,748 40,328 7,757 48,085 Cost of sales: Merchandise, labour, transport and other costs Occupancy costs Total cost of sales Depreciation and amortization: Depreciation of property, plant and equipment (Note 6) Amortization of intangible assets (Note 7) Total depreciation and amortization Employee benefits: Remuneration for services rendered Share options granted to directors and employees (Note 12) Defined contribution plan Total employee benefit expense Financing costs: Interest expense and banking fees Amortization of debt issue costs Total financing costs 330,338 6,932 4,426 341,696 315,328 6,114 2,208 323,650 31,602 1,481 33,083 20,094 1,301 21,395 18 Consolidated Statement of Cash Flows Information The changes in non-cash working capital components on the dates indicated below are as follows: January 29, 2017 January 31, 2016 Accounts receivable (4,268) (1,114) Deposits and prepaid expenses 1,738 (3,687) Merchandise inventories 4,480 (61,276) Accounts payable and accrued liabilities 23,496 17,005 Income taxes payable (29,041) 20,211 (3,595) (28,861) Cash paid for taxes 179,019 118,440 Cash paid for interest 28,133 17,482 Cash paid for taxes and interest are cash flows used in operating activities. 19 Events after the Reporting Period Dividend increase On March 30, 2017, the Corporation announced that its board of directors had approved a 10% increase of the quarterly dividend for holders of its common shares, from $0.10 per common share to $0.11 per common share. This increased quarterly dividend will be paid on May 3, 2017 to shareholders of record at the close of business on April 21, 2017 and is designated as an "eligible dividend" for Canadian tax purposes. Offering of senior unsecured notes On March 16, 2017, the Corporation issued series 2 floating rate senior unsecured notes due March 16, 2020 (the "Series 2 Floating Rate Notes") at par, for aggregate gross proceeds of $225,000, by way of private placement in reliance upon exemptions from the prospectus requirements under applicable securities legislation. Proceeds were used by the Corporation to repay indebtedness outstanding under the Credit Facility and for general corporate purposes. The Series 2 Floating Rate Notes were assigned a rating of BBB, with a stable trend, by DBRS. The Series 2 Floating Rate Notes bear interest at a rate equal to the 3-month bankers' acceptance rate (CDOR) plus 59 basis points (or 0.59%), set quarterly on the 16th day of March, June, September and December of each year. Interest is payable in cash quarterly, in arrears, over the 3-year term on the 16th day of March, June, September and December of each year. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Dollarama Inc. and its subsidiaries as at January 29, 2017 and January 31, 2016 and their financial performance and their cash flows for the years then ended in accordance with International Financial Reporting Standards. Pricewaterhouse Coopers LLP March 30, 2017 DOLLARAMA INC. Consolidated Statement of Financial Position as at (Expressed in thousands of Canadian dollars) Note January 29, January 31, 2017 2016 Assets Current assets Cash and cash equivalents Accounts receivable Deposits and prepaid expenses Merchandise inventories Derivative financial instruments 62,015 15,386 7,162 465,715 8,787 559,065 59,178 11,118 8,900 470,195 67,542 616,933 Non-current assets Property, plant and equipment Intangible assets Goodwill Total assets 437,089 139,515 727,782 1,863,451 332,225 136,934 727,782 1,813,874 DOLLARAMA INC. Consolidated Statement of Changes in Shareholders' Equity for the years ended (Expressed in thousands of Canadian dollars, except share amounts) Total Note Number of common shares Share capital Contributed Retained surplus earnings/(deficit) Accumulated other comprehensive income (loss) $ 12 129,790,354 462,734 15,338 66,296 196,112 385,146 740,480 385,146 12 3,499 3,499 Balance-February 1, 2015 Net earnings for the year Other comprehensive income Unrealized gain on derivative financial instruments, net of reclassification adjustment and income tax of $(1,290) Dividends declared Repurchase and cancellation of shares Share-based compensation Issuance of common shares Reclassification related to exercise of share options Balance-January 31, 2016 Balance-January 31, 2016 (45,722) (597,911) (7,729,391) (27,456) (45,722) (625,367) 6,114 2,702 6,114 164,141 2,702 1,316 439,296 (1,316) 20,136 122,225,104 (62,375) 69,795 466,852 12 122,225,104 439,296 20,136 69,795 (62,375) 445,636 466,852 445,636 Net earnings for the year Other comprehensive loss Unrealized loss on derivative financial instruments, net of reclassification adjustment and income tax recovery of $25,860 Dividends declared 12 (71,141) (71,141) (47,440) (47,440) 12 (7,420,168) (26,669) (678,778) 6,932 Repurchase and cancellation of shares Share-based compensation Issuance of common shares Reclassification related to exercise of share options Balance-January 29, 2017 (705,447) 6,932 4,892 246,413 - 4,892 2,747 420,266 (2,747) 24,321 115,051,349 (342,957) (1,346) 100,284 DOLLARAMA INC. Consolidated Statement of Net Earnings and Comprehensive Income (Loss) for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) Sales Cost of sales Gross profit General, administrative and store operating expenses Depreciation and amortization Operating income Financing costs Earnings before income taxes Income taxes Net earnings for the year Other comprehensive income (loss) Items to be reclassified subsequently to net earnings Unrealized gain (loss) on derivative financial instruments, net of reclassification adjustment Income taxes relating to components of other comprehensive income (loss) Total other comprehensive income (loss), net of income taxes Note January 29, 2017 January 31, 2016 2,963,219 2,650,327 17 1,801,935 1,617,051 1,161,284 1,033,276 458,026 435,816 57,748 48,085 645,510 549.375 33,083 21,395 612,427 527,980 166,791 142,834 445,636 385,146 (97,001) 25,860 (71,141) 4.789 (1,290) 3,499 374,495 388,645 Total comprehensive income for the year Earnings per common share Basic net earnings per common share Diluted net earnings per common share Weighted average number of common shares outstanding during the year (thousands) Weighted average number of diluted common shares outstanding during the year (thousands) $3.75 $3.71 118,998 120,243 $3.03 $3.00 127,271 128,420 16 DOLLARAMA INC. Consolidated Statement of Cash Flows for the years ended (Expressed in thousands of Canadian dollars) Note January 29, 2017 January 31, 2016 Operating activities Net earnings for the year 445,636 385,146 Adjustments for: Depreciation of property, plant and equipment and amortization of intangible assets 17 57,748 48,085 Amortization of deferred tenant allowances (4,795) (4,929) Amortization of deferred leasing costs 519 584 Amortization of debt issue costs 1,481 1,301 Recognition of realized gains on foreign exchange contracts (46,269) (76,665) Cash settlement of gains on foreign exchange contracts 16,108 97,921 Deferred lease inducements 6,020 4,811 Deferred tenant allowances 8,970 11,275 Share-based compensation 6,932 6,114 Financing costs on long-term debt 268 (304) Deferred income taxes 16,105 Loss on disposal of assets 641 4,118 40 508,763 (3,595) 505,168 478,098 (28,861) 449,237 (153,574) (12,640) 462 (165,752) (83,231) (11,199) 670 (93,760) 124,834 235,000 Changes in non-cash working capital components Net cash generated from operating activities Investing activities Additions to property, plant and equipment Additions to intangible assets Proceeds on disposal of property, plant and equipment Net cash used in investing activities Financing activities Proceeds from long-term debt - Series 1 Floating Rate Notes Net proceeds (repayments) from (of) Credit Facility Proceeds from long-term debt - 2.337% Fixed Rate Notes Payment of debt issue costs Repayment of finance lease Issuance of common shares Dividends paid Repurchase and cancellation of shares Net cash used in financing activities Increase in cash and cash equivalents Cash and cash equivalents beginning of year Cash and cash equivalents - ending of year (120,000) 525,000 (2,319) (588) 4,892 (46,936) (696,628) (336,579) 2,837 59,178 62,015 (1,003) (978) 2,702 (45,116) (651,941) (336,502) 18,975 40,203 59,178 DOLLARAMA INC. Notes to Consolidated Financial Statements January 29, 2017 and January 31, 2016 (Expressed in thousands of Canadian dollars, unless otherwise noted) 1 General Information Dollarama Inc. (the "Corporation") was formed on October 20, 2004 under the Canada Business Corporations Act. The Corporation operates dollar stores in Canada that sell all items for $4.00 or less. As at January 29, 2017, the Corporation maintains retail operations in every Canadian province. The Corporation's corporate headquarters, distribution centre and warehouses are located in the Montreal area. The Corporation is listed on the Toronto Stock Exchange ("TSX") under the symbol "DOL" and is incorporated and domiciled in Canada. The Corporation's fiscal year ends on the Sunday closest to January 31 of each year and usually has 52 weeks. However, as is traditional with the retail calendar, every five to six years, a week is added to the fiscal year. The fiscal years ended January 29, 2017 and January 31, 2016 were comprised of 52 weeks. The Corporation's head and registered office is located at 5805 Royalmount Avenue, Montreal, Quebec H4P A1. As at January 29, 2017, the significant entities within the legal structure of the Corporation are as follows: Dollarama Inc. (Canada) Dollarama L.P. (Qubec) Dollarama L.P. operates the chain of stores and performs related logistical and administrative support activities. 2 Basis of Preparation The Corporation prepares its consolidated financial statements in accordance with generally accepted accounting principles in Canada ("GAAP") as set out in the CPA Canada Handbook - Accounting under Part I, which incorporates International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board (LASB"). 3 Summary of Significant Accounting Policies Property, plant and equipment Property, plant and equipment are carried at cost and depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Store and warehouse equipment 10 to 15 years Vehicles 5 years Building and roof 20-50 years Leasehold improvements Lease term Computer equipment 5 years The Corporation recognizes in the carrying amount of property, plant and equipment the full purchase price of assets acquired or constructed as well as the costs incurred that are directly incremental as a result of the construction of a specific asset, when they relate to bringing the asset into working condition. The Corporation also capitalizes the cost of replacing parts of an item when that cost is incurred, if it is probable that the future economic benefits embodied within the item will flow to the Corporation and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. Estimates of useful lives, residual values and methods of depreciation are reviewed annually. Any changes are accounted for prospectively as a change in accounting estimate. If the expected residual value of an asset is equal to or greater than its carrying value, depreciation on that asset is ceased. Depreciation is resumed when the expected residual value falls below the asset's carrying value. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of the item and are recognize directly in the consolidated statement of net earnings and comprehensive income (loss). Goodwill and intangible assets The Corporation classifies intangible assets into three categories: (1) intangible assets with finite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. Intangible assets with finite lives subject to amortization The Corporation determines the useful lives of identifiable intangible assets based on the specific facts and circumstances related to each intangible asset. Finite life intangibles are carried at cost and depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Computer software 5 years Deferred leasing costs Lease term The Corporation recognizes in the carrying amount of intangible assets with finite lives subject to amortization the full purchase price of the intangible assets developed or acquired as well as other costs incurred that are directly incremental as a result of the development of a specific intangible asset, when they relate to bringing the asset into working condition. Intangible assets with indefinite lives not subject to amortization 168,517 7,648 1,316 85,475 262,956 Balance January 31, 2016 Net book value Balance January 31, 2016 147,832 16,948 3,033 164,412 332,225 1) Total costs of $67,923 for the land, building and roof also include racking, fixtures and other equipment that are in the process of being installed. The building itself is now substantially complete. 2) Recognized costs of $33,295 for the building and roof will start being depreciated as at January 30, 2017, which is when management deemed the building to be substantially available for use. Racking, fixtures and other equipment (including hardware and software) totalling $12,484 will be reclassified to store and warehouse equipment, computer equipment and computer software at a later date, once depreciation begins. 7 Intangible Assets and Goodwill Deferred leasing costs Computer software Trade name' Total intangible assets Goodwill 7,046 108,200 727,782 55,078 12,640 (4,058) 63,660 170,324 12,640 (4,058) 178,906 7,046 108,200 727,782 29,900 Cost Balance January 31, 2016 Additions Dispositions Balance January 29, 2017 Accumulated amortization Balance January 31, 2016 Amortization Dispositions Balance January 29, 2017 Net book value Balance January 29, 2017 Cost Balance February 1, 2015 3,490 519 9,540 (4,058) 35,382 33,390 10,059 (4,058) 39,391 4,009 3,037 28,278 108,200 139,515 727,782 6,946 47,223 108,200 162,369 727,782 11,199 (3,244) 170,324 727,782 28,293 8,341 (3,244) 33,390 136,934 727,782 Additions 100 11,099 Dispositions (3,244) Balance January 31, 2016 7,046 55,078 108,200 Accumulated amortization Balance February 1, 2015 2,906 25,387 Amortization 584 7,757 Dispositions (3,244) Balance January 31, 2016 3,490 29,900 Net book value Balance January 31, 2016 3,556 25,178 108,200 1) Indefinite life intangibles are not subject to amortization. 8 Accounts Payable and Accrued Liabilities January 29, 2017 January 31, 2016 $ Trade accounts payable 56,775 53,347 Employee benefits payable 49,686 50,627 Merchandise inventories in transit 28,613 21,729 Sales tax payable 32,542 29,837 Accrued share repurchases 8,819 Rent and other expenses 22,051 10,631 198,486 166,171 9 Long-Term Debt Long-term debt outstanding consists of the following as at: January 29, January 31, 2017 2016 525,000 400,000 400,000 Senior unsecured notes bearing interest at a fixed annual rate of 2.337% payable in equal semi-annual instalments, maturing July 22, 2021 (the 2.337% Fixed Rate Notes") Senior unsecured notes bearing interest at a fixed annual rate of 3.095% payable in equal semi-annual instalments, maturing November 5, 2018 (the 3.095% Fixed Rate Notes and, collectively with the 2.337% Fixed Rate Notes, the Fixed Rate Notes") Senior unsecured notes bearing interest at a variable rate equal to 3-month bankers' acceptance rate (CDOR) plus 54 basis points payable quarterly, maturing May 16, 2017 (the Series 1 Floating Rate Notes) Unsecured revolving credit facility maturing December 14, 2021 (the Credit Facility") Less: Unamortized debt issue costs Accrued interest on the Series 1 Floating Rate Notes and Fixed Rate Notes 274,834 274,834 130,000 (4,899) 3,809 1,328,744 (278,643) 1,050,101 250,000 (4,062) 3,542 924,314 (3,542) 920,772 Current portion (includes accrued interest on the Series 1 Floating Rate Notes and Fixed Rate Notes as at year end) Fixed Rate Notes On July 22, 2016, the Corporation issued the 2.337% Fixed Rate Notes at par, for aggregate gross proceeds of $525,000, by way of private placement, in reliance upon exemptions from the prospectus requirements under applicable securities legislation. Proceeds were used by the Corporation to repay indebtedness outstanding under the Credit Facility and for general corporate purposes. The 2.337% Fixed Rate Notes were assigned a rating of BBB, with a stable trend, by DBRS. The 2.337% Fixed Rate Notes bear interest at a rate of 2.337% per annum, payable in equal semi-annual instalments, in arrears, on January 22 and July 22 of each year until maturity on July 22, 2021. As at January 29, 2017, the carrying value of the 2.337% Fixed Rate Notes was $523,192 (January 31, 2016 - n/a). The fair value of the 2.337% Fixed Rate Notes as at January 29, 2017 was determined to be $526,628 valued as a level 2 in the fair value hierarchy (January 31, 2016 - n/a). As at January 29, 2017, the carrying value of the 3.095% Fixed Rate Notes was $401,994 (January 31, 2016 - $401,546). The fair value of the 3.095% Fixed Rate Notes as at January 29, 2017 was determined to be $410,100 valued as a level 2 in the fair value hierarchy (January 31, 2016 - $411,444). The 3.095% Fixed Rate Notes are due on November 5, 2018. Floating Rate Notes As at January 29, 2017, the carrying value of the Series 1 Floating Rate Notes was $275,249 (January 31, 2016 - $274,786). The fair value of the Series 1 Floating Rate Notes as at January 29, 2017 was determined to be $275,059 valued as a level 2 in the fair value hierarchy (January 31, 2016 - $273,642). The Series 1 Floating Rate Notes are due on May 16, 2017 and therefore are presented as a current liability on the consolidated statement of financial position as at January 29, 2017. Credit Facility On October 30, 2015, the Corporation and the lenders entered into an amending agreement to the second amended and restated credit agreement dated as of October 25, 2013 (the "Credit Agreement") pursuant to which, among other things, the Corporation received additional commitments from lenders in the amount of $125,000 pursuant to the accordion feature of the Credit Agreement, for a period ending no later than June 15, 2017, thereby temporarily bringing the total credit available under the revolving facility from $250,000 to $375,000. On January 29, 2016, the Corporation and the lenders entered into another amending agreement to the Credit Agreement pursuant to which the Corporation received new additional commitments from lenders in the amount of $250,000 for a period ending no later than January 29, 2018, thereby temporarily bringing the total credit available under the Credit Facility from $375,000 to $625,000. Effective July 25, 2016, following the offering of the 2.337% Fixed Rate Notes (the proceeds of which were used to repay indebtedness outstanding under the Credit Facility), the Corporation cancelled $125,000 of the $625,000 aggregate amount available under the Credit Facility in order to reduce standby fees payable on the unutilized portion. On November 21, 2016, the Corporation and the lenders entered into a new amending agreement to the Credit Agreement pursuant to which the term was extended by one year, from December 14, 2020 to December 14, 2021. As a result, initial commitments in the amount of $250,000 are now available until December 14, 2021. New commitments made by lenders in January 2016, in the amount of $250,000, remain available until January 29, 2018 only. Under the Credit Agreement, as amended, the Corporation may, under certain circumstances and subject to receipt of additional commitments from existing lenders or other eligible institutions, request increases to the credit facility up to an aggregate amount, together with all then-existing commitments, of $1,300,000. As at January 29, 2017, $130,000 were outstanding under the Credit Facility (January 31, 2016 - $250,000), other than letters of credit issued for the purchase of inventories, which amounted to $831 (January 31, 2016 - $1,000). As at January 29, 2017, the Corporation was in compliance with all of its financial covenants. 10 Leases and Commitments a. Operating leases The basic rent and contingent rent expense of operating leases for stores, warehouses, distribution centre and corporate headquarters included in the consolidated statement of net earnings and comprehensive income (loss) are as follows: January 29, 2017 January 31, 2016 Basic rent Contingent rent 163,784 4,624 168,408 4:07 150,245 4,819 155,064 b. Commitments As at January 29, 2017, contractual obligations for operating leases amounted to $1,055,938 (January 31, 2016 - $975,370). The leases extend, depending on the renewal option, over various years up to the year 2039. Non-cancellable operating lease rentals are payable as follows: January 29, 2017 January 31, 2016 $ Less than 1 year Between 1 and 5 years More than 5 years Total 166,859 566,421 322,658 1,055,938 151,440 502,106 321,824 975,370 11 Deferred Rent and Lease Inducements The following table shows the continuity of other liabilities, which consisted of deferred tenant allowances and deferred lease inducements: January 29, 2017 January 31, 2016 Deferred tenant allowances, beginning of year 34,380 28,034 Additions 8,970 11,275 Amortization (4,795) (4,929) Deferred tenant allowances, end of year 38,555 34,380 Deferred lease inducements, beginning of year 37,252 32,441 Additions, net of straight-line rent 6,020 4,811 Deferred lease inducements, end of year 43,272 37,252 81,827 71,632 12 Shareholders' Equity a) Share capital Normal course issuer bid During the 12-month period ended June 16, 2016, the Corporation was authorized to repurchase for cancellation up to 11,797,176 common shares (representing 10% of the public float as at the close of markets on June 9, 2015) (the "2015-2016 NCIB"). On June 8, 2016, the Corporation renewed its normal course issuer bid to repurchase for cancellation up to 5,975,854 common shares (representing 5% of the common shares issued and outstanding as at the close of markets on June 7, 2016) during the 12-month period from June 17, 2016 to June 16, 2017 (the "2016- 2017 NCIB"). The total number of common shares repurchased for cancellation under the 2016-2017 NCIB and the 2015-2016 NCIB during the year ended January 29, 2017 amounted to 7.420,168 common shares (January 31, 2016 - 7,729.391 common shares under 2015-2016 NCIB and the NCIB in effect before that) for a total cash consideration of $705,447 (January 31, 2016 - $625-367). For the year ended January 29, 2017, the Corporation's share capital was reduced by $26,669 (January 31, 2016 - $27,456) and the remaining $678,778 (January 31, 2016 - $597,911) was accounted for as a reduction of retained earnings. As part of the 2016-2017 NCIB, the Corporation entered into a specific share repurchase program with a third party on January 10, 2017 to repurchase common shares through daily purchases, subject to the conditions of an issuer bid exemption order issued by the Ontario Securities Commission. b) Common shares authorized The Corporation is authorized to issue an unlimited number of common shares. All common shares are issued as fully paid and without par value. Movements in the Corporation's share capital are as follows: January 29, 2017 January 31, 2016 Number of common shares Amount Number of common shares Amount S Balance, beginning of year 122,225,104 439,296 129,790,354 462,734 Cancellation under NCIB (7,420,168) (26,669) (7,729,391) (27,456) Exercise of share options 246,413 7,639 164,141 4,018 Balance, end of year 115,051,349 420,266 122,225,104 439,296 f) Deficit As at January 29, 2017, the deficit was $342,957 as a result of: 1) an opening deficit, as at February 1, 2016 of $62,375; 2) net earnings of $445,636; 3) dividends declared of $47,440; and 4) cash paid for the repurchase of common shares under the Corporation's normal course issuer bid of $678,778. The portion of the price paid by the Corporation to repurchase common shares that is in excess of their book value is recognized as a reduction in retained earnings, whereas the portion of the price paid for the common shares that corresponds to the book value of those shares is recognized as a reduction of share capital. Refer to Note 12 a) for a discussion on the Corporation's normal course issuer bid. 14 Financial Instruments c) Credit risk Credit risk is the risk of an unexpected loss if a third party fails to meet its contractual obligations. Financial instruments that potentially subject the Corporation to credit risk consist of cash and cash equivalents, accounts receivable and derivative contracts. The Corporation offsets the credit risk by depositing its cash and cash equivalents, including restricted cash, with major financial institutions whom have been assigned high credit ratings by internationally recognized credit rating agencies. The Corporation is exposed to credit risk on accounts receivable from landlords for tenant allowances. In order to reduce this risk, the Corporation may retain rent payments until accounts receivable are fully satisfied. Finally, the Corporation only enters into derivative contracts with major financial institutions for the purchase of USD forward contracts, as described above, and has master netting agreements in place. d) Liquidity risk Liquidity risk is the risk that the Corporation will not be able to meet its obligations as they fall due. The Corporation's funded debts are guaranteed by Dollarama L.P. and Dollarama GP Inc. The Corporation's objective is to maintain sufficient liquidity to meet its financial liabilities as they become due and remain compliant with financial covenants under the Credit Facility. The Corporation manages liquidity risk through various means including, monitoring cash balances and planned cash flows generated from operations and used for investing in capital assets. 16 Earnings per Share a. Basic Basic earnings per common share is calculated by dividing the profit attributable to shareholders of the Corporation by the weighted average number of common shares outstanding during the year. January 29, 2017 January 31, 2016 Net earnings attributable to shareholders of the Corporation Weighted average number of common shares outstanding during the year (thousands) Basic net earnings per common share $445,636 118,998 $ 3.75 $385,146 127,271 $ 3.03 b. Diluted Diluted earnings per share is calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all dilutive potential common shares. For the share options, the Corporation's only category of dilutive potential common shares, a calculation is performed to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Corporation's shares) based on the exercise price of outstanding share options. The number of shares as calculated above is then compared with the number of shares that would have been issued assuming the exercise of the share options, plus any unrecognized compensation costs. January 29, January 31, 2017 2016 $445,636 $385,146 127,271 Net earnings attributable to shareholders of the Corporation and used to determine basic and diluted net earnings per common share Weighted average number of common shares outstanding during the year (thousands) Assumed share options exercised (thousands) Weighted average number of common shares for diluted net earnings per common share (thousands) Diluted net earnings per common share 118,998 1,245 120,243 3.71 1,149 128,420 3.00 $ $ 17 Expenses by Nature Included in the Consolidated Statement of Net Earnings and Comprehensive Income (Loss) January 29, 2017 January 31, 2016 1,523,272 278,663 1,801,935 1,361,125 255,926 1,617,051 48,208 9,540 57,748 40,328 7,757 48,085 Cost of sales: Merchandise, labour, transport and other costs Occupancy costs Total cost of sales Depreciation and amortization: Depreciation of property, plant and equipment (Note 6) Amortization of intangible assets (Note 7) Total depreciation and amortization Employee benefits: Remuneration for services rendered Share options granted to directors and employees (Note 12) Defined contribution plan Total employee benefit expense Financing costs: Interest expense and banking fees Amortization of debt issue costs Total financing costs 330,338 6,932 4,426 341,696 315,328 6,114 2,208 323,650 31,602 1,481 33,083 20,094 1,301 21,395 18 Consolidated Statement of Cash Flows Information The changes in non-cash working capital components on the dates indicated below are as follows: January 29, 2017 January 31, 2016 Accounts receivable (4,268) (1,114) Deposits and prepaid expenses 1,738 (3,687) Merchandise inventories 4,480 (61,276) Accounts payable and accrued liabilities 23,496 17,005 Income taxes payable (29,041) 20,211 (3,595) (28,861) Cash paid for taxes 179,019 118,440 Cash paid for interest 28,133 17,482 Cash paid for taxes and interest are cash flows used in operating activities. 19 Events after the Reporting Period Dividend increase On March 30, 2017, the Corporation announced that its board of directors had approved a 10% increase of the quarterly dividend for holders of its common shares, from $0.10 per common share to $0.11 per common share. This increased quarterly dividend will be paid on May 3, 2017 to shareholders of record at the close of business on April 21, 2017 and is designated as an "eligible dividend" for Canadian tax purposes. Offering of senior unsecured notes On March 16, 2017, the Corporation issued series 2 floating rate senior unsecured notes due March 16, 2020 (the "Series 2 Floating Rate Notes") at par, for aggregate gross proceeds of $225,000, by way of private placement in reliance upon exemptions from the prospectus requirements under applicable securities legislation. Proceeds were used by the Corporation to repay indebtedness outstanding under the Credit Facility and for general corporate purposes. The Series 2 Floating Rate Notes were assigned a rating of BBB, with a stable trend, by DBRS. The Series 2 Floating Rate Notes bear interest at a rate equal to the 3-month bankers' acceptance rate (CDOR) plus 59 basis points (or 0.59%), set quarterly on the 16th day of March, June, September and December of each year. Interest is payable in cash quarterly, in arrears, over the 3-year term on the 16th day of March, June, September and December of each year