BMTC Group Inc.

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QUARTERLY MANAGEMENT REPORT AS AT APRIL 30th, 2024

Notice related to the review of interim financial statements

The consolidated interim financial statements for the period ended April 30th, 2024 and 2023 have not been reviewed by the auditors of the Company.

BOARD OF DIRECTORS

GENERAL INFORMATION

YVES DES GROSEILLERS

Chairman of the Board

AUDITORS

PricewaterhouseCoopers LLP/s.r.l./s.e.n.c.r.l.

MARIE-BERTHE DES GROSEILLERS

President and Chief Executive Officer of the Company

CORPORATE SECRETARY

Michèle Des Groseillers

[email protected]

ANDRÉ BÉRARD/*

Lead Director of the Company and Director of companies

LEGAL ADVISORS

Norton Rose Fulbright LLP ("Norton") Davis Ward Phillips & Vineberg LLP (''Davies'')

LUCIEN BOUCHARD/*

Partner Davies Ward Phillips & Vineberg LLP (Law firm)

CHARLES DES GROSEILLERS

Director

ANNE-MARIE LECLAIR**

Senior Strategic Advisor Director

GABRIEL CASTIGLIO/**

Executive Vice President Chief Legal Officer and Corporate Secretary Fiera Capital (Investment management company)

BANKERS

National Bank of Canada and Desjardins

REGISTRAR AND TRANSFER AGENT

Computershare Investor Services Inc. The Direct Registration System (DRS) allows your securities to be held in "book-entry" form without having a physical security certificate issued as evidence of ownership. Instead, your securities are held in your name and registered electronically in our records, which are maintained by our transfer agent Computershare. If you are a registered holder of units and wish to convert physical securities to DRS, go to: www.computershare.com/investorcentrecanada.

STOCK LISTING

Common shares are listed on the Toronto Stock Exchange under the symbol GBT.TO and CUSIP number 05561N208.

TONY FIONDA/**

Senior Vice President Remcorp Inc. (Investment company)

HEAD OFFICE

8500 Place Marien Montréal-Est (Quebec) H1B 5W8 Tel: (514) 648-5757

Member of the Audit Committee
** Member of the Human Resources and Corporate Governance Committee
*** Member of the Investment Committee

BMTC Group Inc. (the "Company"), is a Company incorporated in accordance with Article 140 of the Business Corporations Act (Quebec). Its Common Shares are listed on the Toronto Stock Exchange.

Through its subsidiary, Le Corbusier-Concorde S.E.C. and its division, Tanguay, the Company manages and operates one of the largest furniture and household and electronic appliance retail sales networks in Quebec.

FINANCIAL HIGHLIGHTS

For the periods ended April 30th, 2024 and 2023

(Unaudited and in thousands of dollars, except per share amounts)

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April 30, 2024 April 30, 2023
$ $
Operations
Revenue 137 144 135 102
Net earnings 1 461 38 017
Financial position
Cash, bank overdraft and investments 180 694 294 800
Total assets 634 105 630 206
Equity 476 671 477 985
Per-share information
Net earnings 0,04 1,15
Carrying amount 14,64 14,50
Stock market value
Period high 14,86 14,56
Period low 13,00 13,41
Number of shares outstanding
Common shares 32 562 410 32 974 250
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Quarterly Management Report

Caution regarding forward-looking statements

This Quarterly Management Report contains certain forward-looking statements with respect to the Company. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", expect", "intend", "may", "plan", "predict", "project", "will", "would", as well as the opposites of these terms and similar terminology, including references to assumptions.

Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, which the Company has identified in the 2024 Annual Information Form under "Narrative Description of the Business - Risk Factors", and other risks detailed from time to time in the Company's continuous disclosure documents.

The reader is cautioned that the factors we refer to above are not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to put undue reliance on forward-looking statements.

The Company made a number of assumptions in making forward-looking statements in this Quarterly Management Report. The Company considers the assumptions on which these forward-looking statements are based to be reasonable.

These statements reflect current expectations regarding future events and operating performance and speak only as of the date of release of this Quarterly Management Report, and represent the Company's expectations as of that date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

Non-International Financial Reporting Standards (IFRS) financial measures

The Company discloses adjusted net earnings, which includes or excludes certain elements that are not considered representative or recurrent of the performance measures and financial recurrence of the Company. Management believes that this measure is useful in understanding and analyzing the operational performance of the Company and that it can provide additional information.

Adjusted net earnings as well as same store revenues are not an earnings measure recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, adjusted net earnings and same store revenues as discussed in this Quarterly Management Report may not be compared to similar measures presented by other issuers. These measures of performance should not be considered as alternatives to indicators of performance calculated according to IFRS, but rather as a source of additional information.

The Company discloses in this MD&A under the section "Results" a reconciliation between net earnings and adjusted net earnings.

* The financial information, unless otherwise indicated, is in Canadian dollars and has been prepared in accordance with IFRS Accounting Standards (IFRS).

Results

For the first quarter ended April 30, 2024, the Company's revenues increased by $2,042,000 to $137,144,000 compared to $135,102,000 recorded for the corresponding period of 2023, an increase of 1.5%. Of this increase, $239,000 comes from investment property income from the new real estate division. Therefore, the retail operation revenues of the Tanguay division increased by 1.3%. Samestore-sales increased by 4.3% for the first quarter ended April 30, 2024. Net earnings for the first quarter ended April 30, 2024, amounted to $1,461,000 compared to $38,017,000 recorded for the corresponding period of 2023. Basic net earnings per share amounted to $0.04 compared to $1.15 recorded for the corresponding period of 2023. During the corresponding period of 2023, the Company proceeded with the sale of its Montreal distribution center resulting in an after-tax gain of $50,962,000 or $1.54 per basic share, which explains the significant difference in the Company's net income for the current year. The operating earnings at the end of the first quarter of 2024 partly reflect the impact of the synergies created following the operational and commercial reorganization carried out in May 2023 with its Tanguay division and will have a greater effect over the next quarters.

For the first quarter ended April 30, 2024, the share repurchase program contributed to an increase of $0.01 on basic net earnings per share. As for the corresponding period of 2023, the share repurchase program had no impact on basic net earnings per share.

During the period ended April 30, 2023, the Company proceeded with the sale of its Montreal distribution center for an amount of $66,500,000 resulting in an after-tax gain of $50,962,000 or $1.54 per basic share.

The variation in adjusted net earnings for non recurrent elements would be $14,406,000 or $0,44 per basic share for first quarter ended April 30, 2024, as well as the comparable period ended April 30, 2023, are explained as follows:

Net earnings Gain on disposal of fixed assets (after-tax) Adjusted net earnings Minus: Adjusted net earnings for the previous year Variation	April 30, 2023 1 461 38 017 - (50 962) 1 461 (12 945) (12 945) 14 406 April 30, 2024 (Unaudited and $ in thousands)

The variations in net adjusted earnings is allocated as follows :

The variations in net adjusted earnings is allocated as	follows :	follows :	follows :
	(Unaudited and $ in thousands)
		Increase	Increase
Increase	Increase	(decrease)	(decrease)
(decrease)	(decrease)	in investment	in adjusted
in retail operations	in investments	properties	net earnings
As at April 30, 2024 4 867	9 958	(419)	14 406

Annual financial information

($ in thousands, except for per share amounts)

Revenue Net earnings Total assets Net earnings per share basic and diluted Dividends per share	January 31, 2024 January31,2023
	578 945 717 972 47 427 40 838 621 029 581 694 1,44 1,23 0,36 0,36

Financial position and dividends

Cash and investments, net of bank overdraft, decreased by $82,648,000 during the period ended April 30, 2024. This decrease is linked to the acquisition of the RONA distribution center on April 15, 2024, the transaction was paid in full in cash from investments held by the Company. Investments consist of treasuries bearing interest, government and corporate bonds, common and preferred shares, which at the close of the quarter had a market value of $180,694,000 (including cash).

The Company created a real estate division at the end of the 2024 financial year, therefore as of the 1st quarter ended April 30, 2024, the Company presents its results in a segment manner identifying income from investment properties. Real estate activities include the ownership of buildings in Quebec with the intention of carrying out development or obtaining rental income from them. Details are presented in Note 4 and Note 10 to the unaudited interim consolidated financial statements as at April 30, 2024.

As at April 30, 2024, the working capital showed a surplus of $8,469,000, a decrease of $44,000 compared to the year ended January 31, 2024. The Company's shareholders' equity decreased from $476,897,000 as at January 31, 2024, to $476,671,000 as at April 30, 2024. As at April 30, 2024, the book value per share stood at $14.64 compared to $14.59 as at January 31, 2024.

Pursuant to the normal course issuer-bid put in place on April 15, 2023, and renewed on April 15, 2024, accordingly, 122,640 common shares were repurchased and cancelled by the Company. As a result of this change, the Company had as at April 30, 2024, 32,562,410 common shares issued and outstanding.

During the period ended April 30, 2024, no options were granted. The Company may still grant pursuant to the Stock Option Plan a total of 5,710,864 options, representing 17.54% of the issued and outstanding shares of the Company.

A semi-annual eligible dividend of $0.18 per Common Share has been declared to holders registered at the close of business on June 21, 2024, which will be paid on June 28, 2024.

Company pension plans and treatment of future actuarial gains and losses

The pension expense for all plans for the period ended April 30, 2024, amounted to $1,441,000 (compared to $1,552,000 for the period ended April 30, 2023).

Contributions paid by the Company for all plans for the period ended April 30, 2024, amounted to $1,216,000 (compared to $597,000 for the period ended April 30, 2023).

Related party transactions

The Company is bound by leases expiring in December 2024, for which a lease liability of $392,000 is recorded as at April 30, 2024.

For the period ended April 30, 2024, depreciation of $132,000 relating to the right-of-use asset and a $6,000 interest expense were recognized in earnings in connection with these leases.

Lease liability

Payments due by period

(Unaudited and $ in thousands)

	(Unaudited and $ in thousands)
Lease liability	Carrying Contractual amount cash flows Under 1year 2 - 5years After 5years
	7 006 7 627 2 848 4 779 -

Accounting policies and accounting estimates

The accounting policies used in preparing the unaudited interim consolidated financial statements are described in Note 3 to the unaudited interim consolidated financial statements.

The main estimates discuss allowances on inventories. Inventory allowances are taken for obsolete and/or damaged products as well as for slow inventory turnover items. The allowances are based on many years of historic experience. Rebates for unsold merchandise are deducted from the value of the inventories at the date of the consolidated financial statements.

Financial instruments

The Company operates retail outlets in 25 locations across Quebec. A significant portion of the Company's sales are realized through the offering of financing solutions, by third-party credit providers, to the Company's customers. The cost of financing these sales is assumed by the Company, and is expensed, as the associated sales are realized. The Company assumes no credit risk in these transactions. The Company's working capital is composed primarily of accounts receivable, customer deposits, inventory and cash, while its short-term liabilities include bank overdraft, suppliers of goods and services, customer deposits, employee benefits liabilities and lease liability. The change in working capital reflects the associated fluctuations in all of the constituent accounts incurred during the normal course of the Company's activities. The Company has a positive cash position, which is invested in various financial instruments.

The Company records its investments at market value as indicated in Note 3 and Note 8 of the unaudited interim consolidated financial statements as at April 30, 2024. The Company has no hedges against its investments in US funds and assumes 100% of any fluctuations in the markets for these investments. Furthermore, the Company assumes the risks interest rate fluctuations have on its fixedincome investments, as well as the risks stock market fluctuations have on the value of investments in publicly traded companies.

The Company owns most of its stores and distribution centers, such that commitments regarding leasing contracts and lease liabilities are relatively insignificant with regard to its overall activities as detailed in Note 9 of the unaudited interim consolidated financial statements as of April 30, 2024. The Company holds no hedging contracts or any other type of derivative products.

Quarterly results

(Unaudited and in thousands of dollars, except per share amounts)

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April 30, April 30, July 31, July 31,
2024 2023 2023 2022
$ $ $ $
Revenue 137 144 135 102 169 075 218 939
Net earnings 1 461 38 017 3 363 14 246
Net basic earnings per share 0,04 1,15 0,10 0,43
October 31, October 31, January 31, January 31,
2023 2022 2024 2023
$ $ $ $
Revenue 140 078 175 559 134 690 147 815
Net earnings (8 449) 13 847 14 496 11 938
Net basic earnings per share (0,25) 0,42 0,44 0,36
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Operations

Tanguay division

The Company has decided to make significant changes to transform its former Brault & Martineau and EconoMax stores into Tanguay store in order to provide a better product and service offering and a unique customer experience in its market. These renovations across our entire network were initially estimated at $28,000,000, but as of January 31, 2024, the amount was reassessed downward to $20,000,000. During the year ended January 31, 2024, $15,500,000 of these costs were recorded in operating expenses in the Consolidated Statements of Earnings and Other Comprehensive Income, and an additional $1,445,000 of theses costs were incurred for the period ended April 30, 2024.

At the end of April 2024, the Company finalised the purchase of a land in Lévis in the Quebec region, for an amount of $20,223,000

Real estate division

On April 15th, 2024, the Company finalised the purchase of the RONA distribution center bearing the civic address 2055, boulevard des Entreprises in the city of Terrebonne. The transaction was in the amount of $96,000,000 before taxes which includes a lease-back agreement with RONA. The transaction was paid in full in cash from investments held by the Company. The Company intends to continue on a long-term basis to create lease revenues with this property. The Company is urrently evaluating renovations costs in order to make the distribution center more efficient by automating it in order to create greater lease value.

The Company entered into a partnership agreement with Urbania, who will be responsible for the development and construction of its property at 500 boulevard Le Corbusier in Laval into several residential rental towers. The Company intends to finance this real estate project at 75% with a longterm mortgage. The estimated value of the entire project is approximately $600,000,000. The Company created a new subsidiary, Le Corbusier-Concorde S.E.C. for this real estate project on January 31st, 2022. This real estate project should begin in the summer of 2025 as we are still waiting on approval of all permits with the city of Laval before we begin the construction phase. Once construction begins, the project should span over a period of 8 to 10 years with the construction of 5 rental residential towers for a total of approximately 1,200 doors.

As announced on February 1, 2023, the Company concluded the sale of its distribution center in Montreal for an amount of $66,500,000, resulting in an after-tax gain of $50,962,000, or $1.54 per basic share. The Company remains a tenant and uses this distribution center for its operations in the Montreal metropolitan region. The initial lease was for 2 years and in February 2024, the Company renewed its lease.

The Company intends to proceed with the real estate development of several rental residential towers on its property located at 125 boul. Desjardins Est in Sainte-Thérèse. This real estate project is currently in the exploratory phase and the Company has identified a potential developer for the project. We should be able to announce during this financial year the details of this real estate project.

Risk factors and market tendencies

The Company operates a furniture, electronic and household appliance retail business, and is therefore subject to many risk factors such as:

Sensitivity to general economic conditions
Reliance on key personnel
Investment portfolio risks
Third-party credit providers for financing solutions to clients
Labour relations with employees, some of whom are unionized
Maintaining profitability and managing growth
Highly competitive nature of the retail industry
Effectiveness of its marketing programs
Capacity to anticipate changes in fashion trends and consumer tastes
Retention of senior management
Interest rates fluctuation risks
Risks related to real estate sector concentration

The Company is also dependent on its management information systems, its distribution operations, and its suppliers.

For a number of years, we have seen an increasing presence of strong competitors operating on a national and international level. Furthermore, the Company has witnessed a deflationary trend in many products that it sells, forcing it to innovate by bringing new products to market.

The majority of sales are realized using financing solutions offered by third-party credit providers. A significant increase in interest rates or a tightening of credit conditions could have a significant impact on the Company's sales. There are no guarantees the Company will be able to continue procuring such advantageous financing solutions for its customers, which in the past has permitted the Company to maintain its growth.

It is impossible to isolate and measure the importance of each individual risk to which the Company is exposed. In the past, the Company has managed to adapt to these changes and maintain its market share notably by aggressive marketing campaigns and efficient management.

Management discussion and outlook for the future of the Company

In the last few years, e-commerce has developed exponentially in Quebec. The Company continues to focus on online sales by actively pursuing the improvement of its digital platforms, its live chat initiative with online customers as well as the improvement of our telephone sales department.

It is also Management’s opinion that the digital platforms of our banner is essential in order to allow the Company to increase its market shares as well as to allow customers to start their shopping experience online to then complete their purchases in one of our stores with the help of our sales representatives.

It is difficult to predict future consumer behavior, however the results for the 1st quarter of 2024 are encouraging. The economic downturn we have experienced over the past year is the result of high inflation and rising interest rates. The most sensitive sectors, such as real estate and financed products, are the most affected and are expected to continue to experience a slowdown, which could have an impact on the Company's results.

Management remains confident that, thanks to its effective management, the operational and commercial reorganization carried out in May 2023 and the solidity of its financial structure, the Company will be able to maintain its objectives which consist of increasing its market share in Quebec and its profitability, even in a more difficult market.

Disclosure controls and procedures (DCPs) and internal controls over financial reporting (ICRF)

The Company's management evaluated, as at January 31, 2024, the effectiveness of the design and operation of its DCPs and ICFR, as defined under National Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings. The evaluation was performed under the supervision of the Company's President and Chief Executive Officer (CEO) as well as the Chief Financial Officer (CFO). Based on such evaluation of ICFR, the President and CEO and CFO have concluded that the Company's DCPs and ICFR were effective as at January 31, 2024.

No changes were made in the Company's ICFR during the period beginning on February 1, 2024 and ended April 30, 2024, which have materially affected, or are reasonably likely to materially affect, the Company's ICFR.

Other information

This Quarterlyl Management Report for the year period April 30, 2024 provides an analysis of the consolidated results of operations, financial position, and cash flows of the Company and its subsidiary. Additional information relating to the Company is available on the Company's website at www.bmtc.ca as well as on SEDAR at www.sedar.com.

This Quarterly Management Report is intended to assist in the understanding and assessment of significant changes and trends, as well as risks and uncertainties, related to the results of operations and financial position of the Company.

(s) Marie-Berthe Des Groseillers

Marie-Berthe Des Groseillers President and Chief Executive Officer June 6th, 2024

BMTC Group Inc. Consolidated Statements of Earnings For the three month periods ended April 30, 2024 and 2023

(Unaudited and in thousands of Canadian dollars, except per share data)

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Notes April 30, 2024 April 30, 2023
$ $ $ $
Revenue 137 144 # 135 102
Cost of sales (88 103) # (86 953)
Gross profit 49 041 # 48 149
Other (expenses) income 26 # (17)
Operating expenses 5 (53 074) # (57 146)
Administrative expenses 5 (7 891) # (8 947)
Gains (losses) on disposals of property, plant
and equipment 9 - # 60 382
Operating (loss) earnings (11 898) # 42 421
Realized and unrealized change in fair value
of financial assets, at fair value 16 9 122 # (1 495)
Investment income 5 2 940 # 1 951
Net earnings before income tax expense 164 # 42 877
Income tax recuperation (expense) 6 1 297 # (4 860)
Net earnings and comprehensive income 1 461 # 38 017
Net earnings per share
Basic and diluted 17 0,04 # 1,15
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The accompanying notes are an integral part of the interim unaudited consolidated financial statements.

BMTC Group Inc. Consolidated Statements of Changes in Shareholders' Equity For the three month periods ended April 30, 2024 and 2023

(Unaudited and in thousands of Canadian dollars)

Balance as at February 1, 2024 Share redemption Share redemption premium Transactions with shareholders Net earnings & Comprehensive income Balance as at April 30, 2024	Notes 13 13	Capital stock $ 2 588 (10) - (10) - 2 578	Retained earnings $ 474 309 - (1 677) (1 677) 1 461 474 093	Total shareholders' equity $ 476 897 (10) (1 677) (1 687) 1 461 476 671

Balance as at February 1, 2023 Share redemption Share redemption premium Transactions with shareholders Net Earnings & Comprehensive income Balance as at April 30, 2023	Notes 13 13	Capital stock $ 2 618 (5) - (5) - 2 613	Retained earnings $ 438 281 - (926) (926) 38 017 475 372	Total shareholders' equity $ 440 899 (5) (926) (931)
				38 017
				477 985

The accompanying notes are an integral part of the interim unaudited consolidated financial statements.

BMTC Group Inc. Consolidated Statements of Cash Flows

For the three month periods ended April 30, 2024 and 2023

(Unaudited and in thousands of Canadian dollars)

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Notes April 30, 2024 April 30, 2023
$ $ $ $
OPERATING ACTIVITIES
Net earnings before income tax expense ## 164 42 877
-
Losses (gains) on disposal of non-financial assets (60 382)
Adjustments 7 ## (9 450) 3 062
Net changes in working capital 7 ## 30 059 27 120
Income taxes paid ## (1 692) (2 053)
Cash flow from operating activities ## 19 081 10 624
INVESTING ACTIVITIES
Acquisition of other financial assets ## (484) (82 626)
Proceeds from disposal other financial assets ## 117 698 32 665
Purchase of property, plant and equipment 9 ## (20 262) (424)
Purchase of investment properties 10 # (91 054) -
Proceeds from disposal of property, plant and equipment 9 ## 29 66 673
Interest received 5 ## 1 267 797
Dividends received 5 ## 1 673 1 154
Cash flow from investing activities ## 8 867 18 239
FINANCING ACTIVITIES
Payments for share redemption 13 ## (1 687) (931)
Interest paid ## (84) (82)
Payment of lease liabilities 11 ## (813) (987)
Cash flow from financing activities ## (2 584) (2 000)
Net change in cash
Cash (bank overdraft), beginning of period ## 25 364 26 863
Cash (bank overdraft), end of period # (21 419) (7 984)
## 3 945 18 879
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The accompanying notes are an integral part of the interim unaudited consolidated financial statements.

BMTC Group Inc. Consolidated Statements of Financial Position

(Unaudited and in thousands of Canadian dollars)

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Notes April 30, 2024 January 31, 2024
ASSETS $ $
Current
Cash 3 945 1 255
Trade and other receivables 10 156 8 306
Current tax assets 10 840 6 588
Inventory 99 251 98 205
Prepaid expenses 5 223 2 652
129 415 117 006
Assets classified as held for sale 9 1 862 1 862
Total current assets 131 277 118 868
Non-current
Other financial assets 8 176 749 284 761
Property, plant and equipment 9 134 488 116 098
Investment properties 10 105 221 14 707
Defined benefit plan 86 370 86 595
Total non-current assets 502 828 502 161
Total assets 634 105 621 029
LIABILITIES
Current
Bank overdraft 12 - 22 674
Trade and other payables 14 120 218 84 692
Lease liability 11 2 590 2 989
Total current liabilities 122 808 110 355
Non-current
Lease liability 11 4 416 4 830
Deferred tax liabilities 6 30 210 28 947
Total non-current liabilities 34 626 33 777
Total liabilities 157 434 144 132
SHAREHOLDERS' EQUITY
Capital stock 13 2 578 2 588
Retained earnings 474 093 474 309
Total shareholders' equity 476 671 476 897
Total liabilities and shareholders' equity 634 105 621 029
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The accompanying notes are an integral part of the interim unaudited consolidated financial statements.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

1. GOVERNING STATUTES AND NATURE OF OPERATIONS

BMTC Group Inc. (hereinafter "Company") is a company governed the Business Companies Act (Quebec) . Its registered office and principal place of business is located at 8500 Place Marien, Montréal East, Quebec, H1B 5W8. Its common shares are listed on the Toronto Stock Exchange. The structure of BMTC Group Inc. is now formed of the Tanguay division and its subsidiary Le Corbusier-Concorde S.E.C. (collectively designated as the "Company"), manages and operates a retail network of furniture, household appliances and electronic products, in Quebec.

2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS

These unaudited interim consolidated financial statements of the Company have been prepared in accordance with IFRS Accounting Standards (IFRS).

The unaudited interim consolidate financial statements have been prepared on the historical cost basis, except for certain financial instruments and the liability relating to share-based payments, which are established at fair value, and post-employment benefit assets or liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets, less an adjustment to reflect application of the asset limit.

3. SUMMARY OF ACCOUNTING POLICIES

The accounting policies specified below have been applied consistently throughout all periods presented in the unaudited interim consolidated financial statements.

3.1 Basis of consolidation

The unaudited interim consolidated financial statements include the accounts of BMTC, and the whollyowned subsidiary Le Corbusier-Concorde S.E.C. The accounting policies of the subsidiary are consistent with those adopted by BMTC.

Asset and liability balances and revenues and expenses from transactions between group companies, including unrealized gains and losses on transactions between consolidated entities, are eliminated in preparing the unaudited interim consolidated financial statements.

3.2 Foreign currency translation

The unaudited interim consolidated statement of financial position is presented in Canadian dollars, which is also the functional currency of the Company.

Foreign currency transactions are translated into the Company’s functional currency, using the exchange rates prevailing at the dates of the transactions. Foreign currency monetary assets and liabilities are translated into the functional currency using the exchange rates in effect at the reporting date. Other foreign currency non-monetary financial assets that are measured at fair value are translated into the functional currency using the exchange rate in effect on the date of determination of fair value. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items at the reporting date are recognized in earnings.

The realized and unrealized appreciation of other financial assets classified at fair value through profit or loss recognized directly in profit or loss includes the related exchange component.

Non-monetary items measured at historical cost are translated using the exchange rates at the date of the transaction.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

3.3 Segment reporting

In accordance with IFRS 8, Operating Segments, the Company presents and discloses information that is regularly reviewed by the President and Chief Executive Officer in assessing performance. The Company comprises two main business operations which are Retail and Real Estate operations. Details of the Company's two reportables operating segments are provided in Note 4.

3.4 Revenue recognition

Revenue from merchandise sales is measured at the amount of the consideration for which the Company expects to receive in exchange for the merchandise and is presented in earnings net of estimated returns, recorded using the most likely amount method, and excluding sales taxes. Revenue is recognized when the control of the goods has been transferred to the customer either upon delivery or when the customer collects the ordered goods.

Revenue from extended service contracts is recognized at the time of the sale at the net amount of costs incurred by the Company with the service suppliers, who will provide the services required by the Company's customers.

Investment income is recognized using the accrual basis of accounting, as follows:

Interest is recognized based on the number of days the investment was held during the year and is calculated using the effective interest method;
Dividends on listed share investments are recognized when the right to receive the payment is established.

Rental income from investment properties is recorded on a straight-line basis, over the term of the lease, and is included in revenue

3.5 Income taxes

Income tax expense comprises the sum of deferred tax and current tax. Income tax is recognized in earnings except to the extent it relates to items recognized in other comprehensive income or directly in shareholders' equity.

Current income tax assets or liabilities comprise those obligations to, or claims from, tax authorities relating to the current or prior reporting periods, that are unpaid at the reporting date. Current tax is payable on taxable income, which differs from earnings in the consolidated financial statements. The calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or of an asset or liability unless the related transaction is a business combination or affects tax or accounting income.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

Deferred tax assets and liabilities are calculated, without discounting, based on tax rates and tax laws that have been enacted or substantively enacted at the end of the reporting period, and which are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax liabilities are always provided for in full.

Deferred tax assets and liabilities are offset only when the Company has a right and intention to set off current tax assets and liabilities levied by the same taxation authority.

Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense, except where they relate to items that are recognized in other comprehensive income or directly in shareholders' equity, in which case the related deferred tax is also recognized in other comprehensive income or shareholders' equity, respectively.

3.6 Inventory

Inventory, which is composed almost exclusively of finished goods for retail sale, is valued at the lower of cost and net realizable value. Cost is determined by the weighted average method.

The cost of inventories comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and condition. The net realizable value is estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale.

3.7 Vendor rebates

Cash considerations received from vendors are a reduction of the price of the vendors’ products and are accounted for as a reduction of cost of sales and related inventory, respectively, in the Company’s consolidated statement of earnings and comprehensive income and consolidated statements of financial position.

Rebates are recognized when they are considered probable and can be reasonably estimated.

3.8 Property, plant and equipment

Property, plant and equipment are carried at acquisition cost less any accumulated depreciation and any accumulated impairment losses. Items of property, plant and equipment with different useful lives are depreciated separately.

A transfer form investment properties to property, plant and equipment is recognized when there is a change in the use of the property ant it becomes owner-occupied by the Company. The transfer is then made at the carrying amount.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

Depreciation commences when an item of property, plant and equipment is available for use using the straight-line method over the following periods, in order to depreciate its cost less the residual value over its estimated useful life.

Land Parking lots Buildings Signs Leasehold improvements Automotive equipment Computer equipment Furniture and equipment Leased property Leased automotive equipment	Periods Not depreciated 20 years 2 to 50 years 5 years 2 to 5 years 7 to 15 years 2 to 5 years 5 years 1 to 10 years 5 years

The depreciation method, useful lives and residual values are reviewed annually.

3.9 Investment properties

Assets held to earn rental income, capital appreciation, or both, which are not occupied by the Company, are classified as investment properties. Investment properties are carried, at the acquisition cost less any accumulated depreciation and any accumulated impairment losses. Depreciation commences as soon as an asset is available for used, using the straight-line method, according to the following periods:

Land Parking lots Buildings Furniture and equipment	Periods Not depreciated 20 years 2 to 50 years 5 years

The depreciation method, useful lives and residual values are reviewed annually.

Transfers to the "Investment properties" category are made at the carrying amount, on the date of the transfer, only in cases when there is a change of use. If an asset owner-occupied by the Company becomes an investment property, it is accounted for using the accounting methods applicable to investment properties.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

3.10 Leases, lease liability and right-of-use asset

The Company as lessee

The Company records a right-of-use asset and a lease liability on the date when a leased asset becomes available.

Right-of-use asset is equal to the cost of the initial lease liability, rent payments paid on or before the commencement date, initial direct costs incurred and restoration costs, less any incentive received. The Company includes its right-of-use assets with its property, plant and equipment in Note 9.

The lease liability corresponds to the present value of lease payments discounted at the implicit interest rate in the lease or the Company incremental borrowing rate. The Company’s incremental borrowing rate is based on its credit rating, allowing it to obtain an asset of a similar value with similar security.

The Company has elected to apply the exemption provision relating to short-term leases and leases of lowvalue, and associated costs, such as maintenance and insurance, are expensed as incurred.

The Company as lessor

The Company classifies each lease as operating lease or finance lease, at the beginning of the lease. A lease is a finance lease if it transfers substantially all of the risks and rewards of the underlying asset to the lessee; otherwise, the rental agreement is an operating lease agreement. Rental income from operating leases is accounted for on a straight-line basis over the term of the lease.

3.11 Impairment of property, plant and equipment

Individual assets or assets combined into cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

3.12 Shareholders' equity

Capital stock is the amount received on issuance and is presented net of the initial share issue income on redeemed shares.

Retained earnings include all current and prior period retained profits, net of share redemption premiums, dividends paid and the costs of share issuances.

Dividends payable to shareholders are included in other payables when they have been declared before the reporting date.

3.13 Share-based remuneration

The Company has a share-based remuneration plan for certain directors and officers. According to the plan, an option holder can choose, at any time at the holder’s sole discretion, to receive, from the Company, a cash payment equal to the number of shares for which the option is exercised, multiplied by the amount for which the market value of the share exceeds the exercise price, or to subscribe to a number of shares for which the option is exercised. The rights relating to the options are vested at the date of grant, and their maximum life is 10 years.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

At the time of the award, these options are compound financial instruments; accordingly, the fair value is the total fair values of the debt and equity components. The Company first measures the fair value of the debt component and then the fair value of the equity component.

The Company recognizes the debt component, i.e. the stock appreciation rights, at fair value, determined using the Black-Scholes model, and the fair value is measured on each reporting date. A corresponding remuneration cost is recognized in net earnings under administrative expenses.

At the time of the award, the fair value of the equity component is measured at zero. Accordingly, the fair value of the compound financial instrument is the same as the fair value of the debt component.

At the date of settlement, the Company must remeasure the liability to its fair value. If the Company issues equity instruments on settlement rather than paying cash, the liability is transferred directly to equity, as consideration for the equity instruments issued. If, on settlement, the Company pays in cash rather than by issuing equity instruments, that payment is applied to settle the liability in full.

3.14 Post-employment benefits

The Company provides post-employment benefits through defined benefit pension plans as well as defined contribution pension plans.

Contributions to the defined contribution plans are recognized as an expense in the period that relevant employee services are rendered.

The Company accrues its obligations under its defined benefit pension plans and the related costs, net of plan assets, as the services are rendered. The Company has adopted the following accounting policies:

The Company’s defined benefit plan obligations are measured individually, estimating the amount of future benefits earned by employees for services provided in the current and prior periods. The actuarial valuation of defined benefit obligations uses the projected unit credit method. This determination incorporates management's best estimate of future salary levels, retirement ages of employees, mortality rates and other actuarial assumptions.
The discount rate for defined benefit obligations is determined by reference to the market yield, at yearend, on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability.
Remeasurements, which include actuarial gains and losses on benefit obligations, the return on plan assets in excess of interest income, the effect of the asset ceiling, and the impact of minimum funding requirements, are recognized in other comprehensive income and retained earnings immediately without any reclassification to net earnings.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

The defined benefit plan amount presented in the consolidated statement of financial position is the difference between the present value of the defined benefit plan obligations and the fair value of the plan assets at the reporting date. The economic benefit available is calculated as the difference between the present value of the accounting value of the current service cost of the employer and the current services cost of the employer on a funded basis. This value cannot, however, be negative. When there is a defined benefit plan asset, the amount of the asset recognized cannot be greater than the present value of any future economic benefit available as a future plan reimbursement or decrease in future plan contributions. Any minimum funding requirements applicable to the Company’s plans are taken into account to calculate the present value of economic benefits.
An additional liability is recognized in the amount of the minimum funding requirement for defined benefit plans when the Company does not have an unconditional right to the surplus.

3.15 Provisions and contingent liabilities

Provisions are recognized when present obligations as a result of a past event will probably lead to an outflow of economic resources from the Company and when amounts can be estimated reliably. The timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive commitment that has resulted from past events, for example, product warranties granted, legal disputes or onerous contracts.

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation.

All provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

In those cases where the possible outflow of economic resources as a result of present obligations is considered improbable or remote, no liability is recognized.

3.16 Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument.

Financial assets and financial liabilities are measured initially at fair value plus transactions costs, except for financial assets and financial liabilities carried at fair value through profit or loss, which are measured initially at fair value.

Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognized when it is extinguished, discharged, cancelled or expires.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

For the purpose of subsequent measurement, financial assets of the Company are classified into the following categories upon initial recognition:

Amortized cost;
Financial assets at fair value through profit or loss.

The following table summarizes the financial instrument classification and valuation methods.

Item	Classification method
Cash	Amortized cost
Trade and other receivables	Amortized cost
Other financial assets	Fair value through profit or loss
Bank overdraft	Amortized cost
Trade and other payables*	Amortized cost

Excluding employee benefits payable, which are not financial instruments.

The category determines subsequent measurement and whether any resulting income and expense is recognized in net earnings or in other comprehensive income.

All financial assets except for those at fair value through profit or loss are tested for impairment at least at each reporting date. Financial assets are impaired when there is any objective evidence that a financial asset or a group of financial assets is impaired.

All income and expenses relating to financial assets that are recognized in net earnings are presented within realized and unrealized gains on financial assets at fair value or finance income, except for any impairment of trade and other receivables which is presented within administrative expenses.

Financial assets at amortized cost

A financial asset must be measured at amortized cost if the two following conditions are met: the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company recognizes a loss allowance for expected credit losses on financial assets measured at amortized cost. The amount of expected credit losses is updated on each reporting date to take into account changes in credit risk since the initial recognition of the respective financial instrument.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

The Company recognizes lifetime expected credit losses on the financial assets measured at amortized cost. Lifetime expected credit losses correspond to expected credit losses that result from all possible default events over the expected life of a financial instrument. The measurement of expected credit losses reflects reasonable and supportable information on past events, current conditions and forecasts of events and economic conditions and takes into account factors specific to receivables, general economic conditions and an assessment of the current and forecast direction of the conditions at the reporting date, including the time value of money, as applicable.

Financial assets at fair value through profit or loss

Investments presented as other financial assets have been classified at fair value through profit or loss because they are part of a portfolio included in management reports and are measured at fair value by management. Consequently, realized and unrealized gains and losses on these assets are recognized through profit or loss. Transaction costs related to held-for-trading financial assets are expensed as incurred.

Financial liabilities

Financial liabilities are subsequently measured at amortized cost using the effective interest method.

3.17 Judgment, estimates and assumptions

When preparing the consolidated financial statements, management undertakes a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results are likely to differ from the judgments, estimates and assumptions made by management, and will seldom equal the estimated results. Information about the significant judgments, estimates and assumptions that have the most significant effect on the recognition and measurement of assets, liabilities, income and expenses is provided below.

Inventory valuation

The Company uses a high degree of judgment when estimating the effect of certain factors on the net realizable value of inventory, such as obsolescence and damages. The quantity, age and condition of inventory is measured and evaluated regularly during the period.

Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant and equipment at each reporting date based on the expected utility of the assets. Actual results may, however, vary due to technical obsolescence, particularly for software and IT equipment.

Fair value of financial instruments

Management uses valuation techniques in measuring the fair value of financial instruments, where active market quotes are not available, that is for banker’s acceptances and discount notes.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

The carrying amounts of these instruments and a price sensitivity analysis of other financial instruments are presented in Note 16. In applying the valuation techniques, management makes maximum use of observable data, and uses estimates and assumptions that are, as far as possible, consistent with data that market participants would use in pricing the instrument. Where applicable data is not observable, management uses the best information available. These estimates may vary from the actual prices that would be achieved in an arm's length transaction at the reporting date.

Provisions and contingent liabilities

Judgment is required to determine whether a past event has led to a liability that should be recognized in the consolidated financial statements or presented as a contingent liability. Judgment and estimates are applied to quantify such liabilities and are based on a variety of factors, such as the nature of the claim or conflict, legal proceedings, the potential amount payable, the advice of legal counsel, prior experience and the likelihood of a loss. Refer to Note 15 for details on the carrying amount and other information on provisions and contingent liabilities.

Defined benefit pension plan cost and obligations

Management estimates the defined benefit obligations annually with the assistance of independent actuaries; however, the actual outcome may vary due to estimation uncertainties. The defined benefit obligations estimate is based on standard rates of inflation, mortality rates and the Company’s specific anticipation of future salary increases. Estimation uncertainties exist particularly with regard to the assumptions, which may vary significantly in future valuations of the Company's defined benefit obligations.

3.18 Amendments to IAS1

IAS1, Presentation of financial statements

In February 2021, the IASB issued amendments to IAS1, Disclosures about Accounting Policies , aimed at assisting preparers in determining which accounting policies to present in their financial statements. An entity is now required to disclose information about its significant accounting policies rather than its principal accounting policies. The standard specifies how an entity can identify accounting information that is significant, either by its nature, even if the amounts are immaterial or, because it is necessary in order for the users to understand. This amendment is effective for periods beginning on or after January 1, 2023. The adoption of this amendment did not have a material impact on the Company's consolidated financial statements.

4. OPERATING SEGMENTS

The Company has two reportable operating segments : Retail and Real Estate. The following summary describes the operations of each of the Company's reportable segments :

-Retail business manages and operates, under Tanguay banner, a retail network of furniture, household appliances and electronic products, in Quebec.

-Real estate business holds a portfolio of properties in Quebec with the intends to proceed with the development or to generate rental income.

Operating segments are presented according to the same criteria used to produce the internal report submitted to the President and the Chief Executive Officer, which assesses the performance of the operating segments. The segment performance is assesed on the basis of operating earnings.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

4. OPERATING SEGMENTS (Continued)

Information regarding the operating (loss) earnings is as follow:

	April 30, 2024	April 30, 2024
Retail $ 136 905 (88 103) 48 802 26 (52 265) (7 891) (11 328)	Real Estate $ 239 239 - (809) - (570)	Total $ 137 144 (88 103) 49 041 26 (53 074) (7 891) (11 898)
	April 30, 2023
	Real Estate $ - - - - April 30, 2023 352 536 1 749 354 285	Total $ 135 102 (86 953) 48 149 (17) (57 146) (8 947) 60 382 42 421 January 31, 2024 321 561 14 707 336 268

(1) Excluding other financial assets

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

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5. ADDITIONAL INFORMATION ON CONSOLIDATED STATEMENTS OF EARNINGS
April 30, 2024 April 30, 2023
Employee benefits expense $ $ $ $
Salaries 23 233 23 233 24 295 24 295
Defined benefit pension plans expenses 1 122 1 122 1 256 1 256
Defined contribution pension plan expense 319 319 296 296
Total employee benefits expense 24 674 24 674 25 847 25 847
April 30, 2024 April 30, 2023
$ $ $ $
Other elements of revenues and expenses
Depreciation of property, plant and equipment 2 383 1 843 2 322 2 322
Depreciation of investment properties 540 -
-
Losses (gains) on disposals of property,
- - -
plant and equipment
Losses (gains) on disposals of financial assets 80 80 (159) (159)
April 30, 2024 April 30, 2023
Investment income $ $ $ $
On financial assets at fair value through
profit or loss
Interest 1 267 1 267 735 735
Dividends 1 673 1 673 1 154 1 154
On financial assets at amortized cost
Interest - - 62 62
2 940 2 940 1 951 1 951
6. INCOME TAXES
The income tax expense is detailed as follows: April 30, 2024 April 30, 2023
$ $ $ $
Total current tax expense (recovery) for the period (2 560) (2 560) 2 321 2 321
Total deferred tax expense (recovery) 1 263 1 263 2 539 2 539
(1 297) (1 297) 4 860 4 860
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In 2024 and 2023, the deferred tax liability includes only the impact of changes in temporary differences.

The Company's effective income tax rate differs from the combined statutory income tax rate. This difference arises from the following items:

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

6. INCOME TAXES (Continued)

Income tax expense (recovery) for the period based on combined tax rate (federal and provincial of 26.50% in 2024 and 2023) Non-taxable dividends Non-taxable capital gains Non-deductible expenses Other 4	$ 43 (151) (1 264) 71 4 (1 297)	$ $ $ 43 - 11 362 (151) - (131) (1 264) - (6 400) 71 - 35 4 - (6) (1 297) - 4 860 April 30, 2024 April 30, 2023

The tax effects of significant components of temporary differences that give rise to the Company's deferred tax assets/liabilities are as follows:

Recognized amounts Net unrealized gain (loss) on other financial assets Asset defined benefit plans Property, plant and equipment and investment properties Recognized amounts Net unrealized gain (loss) on other financial assets Liability (asset) defined benefit plans Property, plant and equipment investment properties	Balance as at February 1, 2024 $ (3 619) (22 912) (2 416) (28 947) Balance as at February 1, 2023 $ (3 741) (20 076) 444 (23 373)	Recognized in earnings $ - (1 263) - (1 263) Recognized in earnings $ 122 (13) (2 860) (2 751)	in other comprehensive income $ - - - - in other comprehensive income $ - (2 823) - (2 823)	Balance as at April 30, 2024 $ (3 619) (24 175) (2 416) (30 210) Balance as at January 31, 2024 $ (3 619) (22 912) (2 416) (28 947)

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

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7. CASH FLOW ADJUSTMENTS AND CHANGES IN WORKING CAPITAL
April 30, 2024 April 30, 2023
Adjustments are detailed as follows: $ $ $ $
Depreciation of property, plant and equipment 2 383 1 843 2 322 2 322
Depreciation of investment properties - 540 - -
Deficit of contributions over defined benefit plan expense 225 - 955
Investment income (2 940) (2 940) (1 951) (1 951)
Unrealized appreciation of financial assets at fair value (9 202) 1 654 1 654
Interest on lease liability 84 84 82 82
(473) (9 450) (58 275) 3 062
The net change in working capital detailed as follows:
April 30, 2024 April 30, 2023
$ $ $ $
Trade and other receivables (1 850) (1 850) - 4 934
Inventory (1 046) (1 046) - 4 637
-
Prepaid expenses (2 571) (2 571) (3 034)
Trade and other payables excluding
accrued charges of construction in progress 35 526 35 526 - 20 583
30 059 30 059 - 27 120
8. OTHER FINANCIAL ASSETS April 30, 2024
Fair value Cost
At fair value through profit or loss $ $
Liquidities bearing interest from 4.00 % to 4.25 %, maturing no later than 2024 29 071 29 071
- -
Government and corporate bonds
Preferred shares 504 500
Shares of Canadian companies 57 350 44 899
Shares of U.S. companies 89 824 64 667
Total at fair value through profit or loss 176 749 139 137
Total other financial assets 176 749 139 137
January 31, 2024
Fair value Cost
At fair value through profit or loss $ $
Liquidities bearing interest from 4,00 % to 4.25 %, maturing no later than 2023 73 502 73 460
Government and corporate bonds 67 895 65 755
Preferred shares 500 500
Shares of Canadian companies 58 897 49 174
Shares of U.S. companies 83 967 67 796
Total at fair value through profit or loss 284 761 256 685
Total other financial assets 284 761 256 685
28
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BMTC Group Inc.

Notes to the Consolidated Financial Statements

(Unaudited and in thousands of Canadian dollars, except per share data)

9. PROPERTY, PLANT AND EQUIPMENT

Gross carrying amount Balance as at February 1, 2024 Additions Assets classified as held for sale Transfer to investment properties Disposals Balance as at April 30, 2024 Depreciation and impairment Balance as at February 1, 2024 Assets classified as held for sale Transfer to investment properties Disposals Depreciation Balance as at April 30, 2024 Carrying amount as at April 30, 2024 Gross carrying amount Balance as at February 1, 2023 Additions Assets classified as held for sale Transfer to investment properties Disposals Balance as at January 31, 2024 Balance as at February 1, 2023 Assets classified as held for sale Transfer to investment properties Disposals Depreciation Balance as at January 31, 2024 Carrying amount as at January 31, 2024	Parking lots Land and buildings Signs $ $ $ 46 217 123 181 539 20 223 - - - - - - - - - - - 66 440 123 181 539 - 65 682 511 - - - - - - - - - - 893 2 - 66 575 513 66 440 56 606 26 55 691 152 715 539 - - - (1 675) (2 052) - (4 677) (13 903) - (3 122) (13 579) - 46 217 123 181 539 - 79 596 486 - (1 865) - - (5 622) - - (10 560) - - 4 133 25 - 65 682 511 46 217 57 499 28	Leasehold improvements $ 9 719 - - - - 9 719 9 719 - - - - 9 719 - 9 719 - - - - 9 719 9 673 - - - 46 9 719 -	Automotive Computer Furniture and Leased Leased equipment equipment equipment property automotive Total equipment $ $ $ $ $ $ 6 337 9 457 9 179 21 409 579 226 617 39 - - - - 20 262 - - - - - - - - - - - - (68) - - - - (68) 6 308 9 457 9 179 21 409 579 246 811 3 290 9 060 7 038 14 755 464 110 519 - - - - - - - - - - - - (39) - - - - (39) 111 63 135 631 8 1 843 3 362 9 123 7 173 15 386 472 112 323 2 946 334 2 006 6 023 107 134 488 5 328 9 370 8 648 22 432 1 525 265 967 1 441 87 531 2 522 55 4 636 - - - - - (3 727) - - - - - (18 580) (432) - - (3 545) (1 001) (21 679) 6 337 9 457 9 179 21 409 579 226 617 2 898 8 652 6 570 14 660 1 274 123 809 - - - - - (1 865) - - - - - (5 622) (163) - - (3 545) (1 001) (15 269) 555 408 468 3 640 191 9 466 3 290 9 060 7 038 14 755 464 110 519 3 047 397 2 141 6 654 115 116 098

During the three month period ended April 30, 2024, the Company disposed of $29 of financial assets, at carrying cost.

During the year ended January 31, 2024, the Company disposed of financial assets in the amount of $66,822, which resulted in a gain of $60,412. Assets relating to closed stores, following the Company's deployment of its Tanguay division throughout Quebec, were transferred either to assets classified as held for sale or investment properties.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

10. INVESTMENT PROPERTIES

Parking lots and buildings $ 13 903 63 224 77 127 5 622 494	Furniture and equipment $ - - 5 500	Total $ 20 329 91 054
	5 500	111 383
		5 622 540

	- -
	46
6 116	46	6 162

71 011	5 454	105 221
Parking lots and buildings $ - 13 903 - 13 903 - 5 622 -		Total $ 1 749 18 580
	Furniture and equipment $ - -
	-	- 20 329
	-
		-
	-	5 622
	-	-
5 622	-	5 622

8 281	-	14 707
		30

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

11. LEASE LIABILITY

The Company is committed under long-term leases for stores, warehouses and leased automotive equipment, for which a lease liability is recorded. The reconciliation of the lease liability is detailed as follows:

Opening balance Additions Interest Payments Closing balance		$ 7 819 - 84 (897) 7 006 April 30, 2024	$ 8 726 2 577 335 (3 819) 7 819 January 31, 2024

The principal payments to be made are detailed as follows:

April 30, 2024 January 31, 2024	Less than one year $	From 1 to 5 years $	More than 5 years $	Total $
	2 590	4 416	-	7 006
	2 989	4 830	-	7 819

The Company is committed under long-term leases, for which additional payments for taxes and maintenance, not taken into account in the lease liability obligation, are required. During the period ended April 30, 2024, a rental charge of $966 was recognized in earnings ($1,947 for the corresponding period of 2023) in connection with these additional payments.

For the periods ended April 30, 2024 and 2023, there were no low value or short-term contracts recorded in earnings.

12. BANK BORROWINGS

The Company has an unsecured line of credit in the amount of $30,000, repayable on demand, bearing interest at the prime rate. The company is subject to certain restrictive covenants, for the periods ended April 30, 2024 and 2023, the company was not in default.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

13. CAPITAL STOCK

Authorized

Unlimited number of shares without par value First preferred shares, issuable in series.

Second preferred shares, issuable in series.

Issued and fully paid 32,562,410 common shares (32,685,050 as at January 31, 2024) Issued and fully paid Beginning of year Share redemption Issued and fully paid, end of year Shares authorized for the share option plan Total shares authorized	$ 2 578 32 685 050 (122 640) 32 562 410 5 710 864 38 273 274 April 30, 2024 April 30, 2024	$ 2 588 33 040 400 (355 350) 32 685 050 5 710 864 38 395 914 January 31, 2024 January 31, 2024

During the period ended April 30, 2024, the Company redeemed 122,640 common shares for a total cash consideration of $1,687. The redemption premium of $1,677 for the shares was recognized in retained earnings.

During the year ended January 31, 2024, the Company redeemed 355 350 common shares for a total cash consideration of $5,245. The redemption premium of $5,215 for the shares was recognized in retained earnings.

None of the parent's shares were held by any of the Company’s subsidiaries.

Share option plan

The Company has a share option plan for certain directors and employees, which provides for the purchase of common shares under certain circumstances up to a maximum number of 10,729,106 issuable common shares. As at April 30, 2024, a total of 5,710,864 common shares (5,710,864 common shares as at January 31, 2023) remained authorized for issuance under the Company’s share option plan.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of dollars, except per share amounts)

14. TRADE AND OTHER PAYABLES

The following table analyzes trade and other payables recognized in the consolidated statements of financial position:

Trade accounts payable Accrued expenses Employee benefits Customer deposits		120 218 $ 36 704 10 876 10 227 62 411 April 30, 2024		$ 32 736 7 731 10 789 33 436 84 692 Jan. 31, 2024

15. PROVISIONS AND CONTINGENT LIABILITIES

The Company is party to claims and lawsuits in the normal course of business. Management believes that the resolution of these claims and lawsuits will not have a materially adverse effect on the Company’s financial position.

16. FINANCIAL INSTRUMENTS

The carrying amounts presented in the consolidated statement of financial position relate to the following categories of financial assets and liabilities:

Financial assets Financial assets at fair value through profit and loss Other financial assets Financial assets at amortized cost Cash Trade and other receivables Financial liabilities Financial liabilities at amortized cost Bank overdraft Trade (excluding employee benefits) and other payables	$ 176 749 3 945 10 156 14 101 - 109 991 109 991 April 30, 2024	$ 284 761 1 255 8 306 9 561 22 674 73 903 96 577 Jan. 31, 2024

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of Canadian dollars, except per share data)

16. FINANCIAL INSTRUMENTS (Continued)

The following table presents financial assets and financial liabilities measured at fair value in the consolidated statement of financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets and financial liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and financial liabilities.

The fair value hierarchy has the following levels:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The level within which the financial asset or financial liability is classified is determined based on the lowest level of significant input to the fair value measurement. The financial assets and financial liabilities measured at fair value in the consolidated statements of financial position and financial instruments measured at amortized cost for which fair value is presented are grouped according to the fair value hierarchy is as follows:

Financial assets at fair value Liquidities bearing interest Government and corporate bonds Preferred shares Shares of Canadian companies Shares of U.S. companies Financial assets at fair value Liquidities bearing interest Government and corporate bonds Preferred shares Shares of Canadian companies Shares of U.S. companies	Level 1 $ 29 071 - 504 57 350 89 824 Level 1 $ 73 502 67 895 500 58 897 83 967	April 30, 2024 Level 2 Level 3 $ $ January 31, 2024 Level 2 Level 3 $ $

(Unaudited and in thousands of Canadian dollars, except per share data)

BMTC Group Inc. Notes to the Consolidated Financial Statements

16. FINANCIAL INSTRUMENTS (Continued)

Fair value measurement

The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting period.

The fair value of a financial instrument is generally the consideration for with the instrument would be exchanged in an arm's length transaction, between knowledgeable, willing parties who are under no compulsion to act.

The existence of published price quotations in an active market is the best evidence of fair value. The fair value of shares and bonds is established based on the most recent closing date market price, based on the bid price at the period-end. If a security is not actively traded, the fair value is determined by a valuation technique using observable market date to the extent possible.

Gains (losses) on assets held at the close of the reporting period Gains (losses) on assets not held at the close of the reporting period Gains (losses) realized and unrealized on financial assets, fair value	$ $ $ 9 202 9 202 (1 654) (80) (80) 159 9 122 9 122 (1 495) April 30, 2024	$ (1 654) 159 (1 495) April 30, 2023

Financial instrument risks

The Company's manages the risks arising from financial instruments, in close cooperation with the Board of Directors. The objectives are to ensure the availability of sufficient amounts of cash flow in the short and medium term of the company by reducing the exposure to financial markets. Long-term financial instruments are managed to generate lasting returns.

The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options.

Market risk

Market risk encompasses many types of risk. The variation of the types of risk, such as interest rate risk and other factors impacting all similar publicly traded financial instruments, has an impact on the fair value of the financial assets classified at fair value through profit or loss. To minimize market risk, the Company ensures that the type of investments and individual investments in its investment portfolio are diversified. Additionally, a significant portion of its investments is in financial instruments with short maturity dates, in particular banker’s acceptances and discount notes.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of Canadian dollars, except per share data)

16. FINANCIAL INSTRUMENTS (Continued)

Price risk sensitivity

The following table illustrates the sensitivity of income and equity in regards to changes in the market price all other things being equal. It assumes a ± 5 % change of the market price for periods ended April 30, 2024 and 2023.

Variation Income for the period and equity	$ $ 6 406 8 134 April 30, 2023 April 30, 2024

Exchange risk and foreign currency sensitivity

The Company is exposed to exchange risk, because a part of its purchases of inventory is made in currencies other than Canadian dollars. The Company also owns U.S. dollar equity investments in U.S. companies.

The Company does not enter into foreign exchange forward contracts to mitigate the exposure to foreign currency risk.

Foreign currency denominated financial assets and financial liabilities which expose the Company to currency risk are disclosed below. The amounts are translated into Canadian dollars at the closing rate:

Shares of U.S. companies Trade and other payables in U.S. dollars Total exposure	$ 89 824 (1 840) 87 984 April 30, 2024	$ 79 860 (1 559) 78 301 April 30, 2023

Variation Income for the period and equity	$ $ 3 828 3 407 April 30, 2023 April 30, 2024

(Unaudited and in thousands of Canadian dollars, except per share data)

BMTC Group Inc. Notes to the Consolidated Financial Statements

16. FINANCIAL INSTRUMENTS (Continued)

Credit risk

Credit risk is the risk that a party to a financial instrument will fail to discharge an obligation towards the Company. The Company is exposed to this risk as a result of various financial instruments, for example, its deposits, investments in bonds, etc. The Company’s maximum credit risk exposure is limited to the carrying amount of certain financial assets recognized on the reporting date, as summarized in the following table:

Financial asset categories – carrying amounts Cash Trade and other receivables		$ 3 945 10 156 14 101 April 30, 2024	$ 1 255 8 306 9 561 Jan. 31, 2024

The Company’s management considers that the credit quality of the above financial assets that are not impaired or in default at the reporting date is good. As of April 30, 2024, none of the significant customers and other debtors, unimpared, are in default.

Credit risk in respect of cash, banker’s acceptances and discount notes, amounts receivable on credit and debit cards is considered negligible because the counterparties are reputable banks with quality external credit ratings.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations. The Company manages its liquidities by monitoring forecasted cash receipts and disbursements in the course of daily activities. Net cash requirements are compared with available cash, investments and credit facility to ascertain if they are sufficient for the period in question. The Company also considers expected cash resources from sales and its financial assets in managing the liquidity risk.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of Canadian dollars, except per share data)

16. FINANCIAL INSTRUMENTS (Continued)

Future payments to be made under its contractual obligations are allocated as follows:

	Carrying Contractual amount cash flows	More than Under 1 year 2 - 5 years 5 years April 30, 2024

	$ $	$ $ $
Trade and other payables excluding customer deposits Lease liability

	57 807 57 807	57 807 - -
	7 006 7 627	2 848 4 779 -
	64 813 65 434 Carrying Contractual amount cash flows	60 655 4 779 - More than Under 1 year 2 - 5 years 5 years January 31, 2024


	$ $	$ $ $
Trade and other payables excluding customer deposits Lease liability	51 256 51 256 7 819 8 525	51 256 - - 3 277 5 248 -
	59 075 59 781	54 533 5 248 -

Capital management

The Company's capital management objectives are to safeguard its assets, while maximizing the Company's growth and providing an adequate return to its shareholders. In addition to a conservative approach with respect to safeguarding the financial position, the Company achieves its objective through sound management of internally generated capital and through using capital when necessary to finance its growth initiatives. The Company's capital corresponds to equity.

BMTC Group Inc. Notes to the Consolidated Financial Statements

(Unaudited and in thousands of Canadian dollars, except per share data)

17. EARNINGS PER SHARE AND DIVIDENDS

The following table presents the calculation of basic net earnings per share:

==> picture [481 x 172] intentionally omitted <==

----- Start of picture text -----

||||||
|---|---|---|---|---|
|April 30, 2024|April 30, 2023|
|$|$|$|$|
|Net earnings|1 461|1 461|########|38 017|
|Weighted average number of shares to|
|calculate basic and diluted net earnings|
|per share|32 769 504|33 165 056|
|Net earnings per share|
|Basic and diluted|0,04|0,04|1,15|1,15|

----- End of picture text -----

18. SUBSEQUENT EVENT

No adjusting or significant non-adjusting event occurred between the reporting date and the date of authorization of the unaudited interim consolidated financial

AI assistant

BMTC Group Inc. — Interim / Quarterly Report 2025

43306_rns_2024-06-06_35fd2418-8c86-4d03-8528-e86482f5fc43.pdf

QUARTERLY MANAGEMENT REPORT AS AT APRIL 30th, 2024

Notice related to the review of interim financial statements

BOARD OF DIRECTORS

GENERAL INFORMATION

YVES DES GROSEILLERS

AUDITORS

MARIE-BERTHE DES GROSEILLERS

CORPORATE SECRETARY

ANDRÉ BÉRARD/*

LEGAL ADVISORS

LUCIEN BOUCHARD/*

CHARLES DES GROSEILLERS

ANNE-MARIE LECLAIR**

GABRIEL CASTIGLIO/**

BANKERS

REGISTRAR AND TRANSFER AGENT

STOCK LISTING

TONY FIONDA/**

HEAD OFFICE

BMTC Group Inc.

FINANCIAL HIGHLIGHTS

For the periods ended April 30th, 2024 and 2023

Quarterly Management Report

Caution regarding forward-looking statements

Non-International Financial Reporting Standards (IFRS) financial measures

Results

Annual financial information

Financial position and dividends

Company pension plans and treatment of future actuarial gains and losses

Related party transactions

Lease liability

Accounting policies and accounting estimates

Financial instruments

Quarterly results

Operations

Tanguay division

Real estate division

Risk factors and market tendencies

Management discussion and outlook for the future of the Company

Disclosure controls and procedures (DCPs) and internal controls over financial reporting (ICRF)

Other information

(s) Marie-Berthe Des Groseillers

BMTC Group Inc. Consolidated Statements of Earnings For the three month periods ended April 30, 2024 and 2023

BMTC Group Inc. Consolidated Statements of Changes in Shareholders' Equity For the three month periods ended April 30, 2024 and 2023

BMTC Group Inc. Consolidated Statements of Cash Flows

For the three month periods ended April 30, 2024 and 2023

BMTC Group Inc. Consolidated Statements of Financial Position

BMTC Group Inc. Notes to the Consolidated Financial Statements

1. GOVERNING STATUTES AND NATURE OF OPERATIONS

2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IFRS

3. SUMMARY OF ACCOUNTING POLICIES

3.1 Basis of consolidation

3.2 Foreign currency translation

BMTC Group Inc. Notes to the Consolidated Financial Statements

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

3.3 Segment reporting

3.4 Revenue recognition

3.5 Income taxes

BMTC Group Inc. Notes to the Consolidated Financial Statements

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

3.6 Inventory

3.7 Vendor rebates

3.8 Property, plant and equipment

BMTC Group Inc. Notes to the Consolidated Financial Statements

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

3.9 Investment properties

BMTC Group Inc. Notes to the Consolidated Financial Statements

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

3.10 Leases, lease liability and right-of-use asset

The Company as lessee

The Company as lessor

3.11 Impairment of property, plant and equipment

3.12 Shareholders' equity

3.13 Share-based remuneration

BMTC Group Inc. Notes to the Consolidated Financial Statements

3. SUMMARY OF ACCOUNTING POLICIES (Continued)

3.14 Post-employment benefits

BMTC Group Inc. Interim / Quarterly Report 2025