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## OPERA TING RESULTS 

## SALES 

Sales for fiscal 2014 reached $ 11,590.4 million versus $ 11,399.9 million for fiscal 2013 , an increase of 1.7 %. Our merchandising strategies and investments, as well as our reorganization of our Ontario store network enabled us to increase sales in a fiercely competitive market. 

## OPERA TING INCOME BEFORE DEPRECIATION AND AMORTIZATION AND ASSOCIATE'S EARNINGS (4) 

Operating income before depreciation and amortization and associate's earnings $^{(4)}$ for fiscal 2014totalled $781.5 million versus $ 765.3 million for fiscal 2013 . Non-recurring closure costs of $6.4 million were recorded in the first quarter of 2014 as a result of our decision to consolidate our Québec produce and dairy distribution operations in our new Laval distribution centre and to close our decades-old Québec City produce warehouse. Furthermore, in the fourth quarter of 2013, a restructuring charge of $ 40.0 million was recorded for the reorganization of our Ontario store network. Excluding these non-recurring expenses, adjusted operating income before depreciation and amortization and associate's earnings$^{(1)(4)}$ for fiscal2014 was $787.9 million or 6.8% of sales compared to $805.3 million or 7.1% of sales for fiscal 2013 . 

Gross margin on sales for fiscal2014 was 19.1% versus 19.3% in fiscal2013. Tight cost control allowed us to keep the level of operating expenses as a percentage of sales at 12.3% in 2014 versus 12.2% in 2013. 

## Operating income before depreciation and amortization and associate's earnings adjustments (OI) (4) 

<img src='content_image/179532.jpg'>

## DEPRECIA TION AND AMORTIZATION AND NET FINANCIAL COSTS 

T otal depreciation and amortization expense for fiscal 2014 amounted to $ 175.8 million versus $ 179.6 million in 2013 . Net financial costs for fiscal 2014 totalled $ 49.1 million compared to $ 49.4 million in 2013 . The average financing rate was 4.8 % for fiscal2014 compared to 5.0% for fiscal 2013. 

## SHARE OF AN ASSOCIATE'S EARNINGS 

Our share of earnings in Alimentation Couche-Tard for fiscal 2014 was $49.8 million versus $50.8 million in 2013. This decline results mainly from our reduced holding compared to last year following the sale of nearly half of our investment in the second quarter of 2013. 

## INCOME TAXES 

Fiscal 2014 income tax expense of $150.2 million represented an effective tax rate of 24.8% compared with fiscal 2013 tax expense of $197.2 million for an effective tax rate of 22.0%. Excluding the $307.8 million gain on disposal of part of our investment in Alimentation Couche-Tard and related income tax of $41.4 million, the effective tax rate for fiscal 2013 was 26.5 %. 

## NET EARNINGS 

Net earnings for fiscal2014were $456.2 million, down 35.2% from $703.9 million for fiscal 2013. Fully diluted net earnings per share were $5.07 compared with $ 7.28 last year, a decrease of 30.4%. 

