Slide 1: PriceSmart, Inc. Overview Presentation
PriceSmart, Inc. Overview Presentation Issued October 2023 NASDAQ: PSMT 1
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements: This presentation may contain forward-looking statements concerning the Company's anticipated future revenues and earnings, adequacy of future cash flows, omni-channel initiatives, proposed warehouse club openings, the Company's performance relative to competitors, the ou
Slide 3: Business Overview
PriceSmart BUSINESS OVERVIEW
Slide 4: Our Origins
OUR ORIGINS FOUNDED FedMart 1954 FOUNDED 1993 Founded in San Diego, California in 1954 Founders: Sol Price and local investors Price Club and Costco Merger in 1993 Founding Principles: Duty to our Customers • Merger created the second largest • Customers come first • Sell only quality merchandise me
Slide 5: Our History
OUR HISTORY 1996 1997 1999 2008 2011 2012 2013 2017 2018 2019 2020 2021 2022 2023 2024 First Location PriceSmart Expansion PriceSmart PriceSmart PriceSmart 1 Million PriceSmart Launch of Launch of • Launch of • Addition of • Opening of • Opening of 51st • Opening of in Panama Listed on into $1 Billi
Slide 6: Our Culture
6 OUR CULTURE Values Integrity Always do the right thing. Respect Treat employees, suppliers and Members the way you want to be treated. Accountability Deliver on commitments you make to your team and the company. Passion Operate great warehouse clubs while putting Members first. Community Support a
Slide 7: Our Mission
OUR MISSION PriceSmart exists to improve the lives and businesses of our Members, our employees and our communities through the responsible delivery of the best quality goods and services at the lowest possible prices. Our mission is to serve as a model company, which operates profitably and provide
Slide 8: Our Six Rights Value Proposition
OUR SIX RIGHTS VALUE PROPOSITION Squeeze Out Inefficiencies The Right Limited SKU Selection Merchandise The Right Efficient Distribution with Regional and Domestic Distribution Centers Time Low Margins to Pass Savings onto Members Leverage Volume Buying Reinvest in Membership Value The Right Commitmen
Slide 9: Our Club Locations
OUR CLUB LOCATIONS PriceSmart operates 52 warehouse clubs GUATEMALA HONDURAS in emerging and developing markets that Miraflores Pradera Fraijanes Tegucigalpa San Pedro Sula reach 12 countries and one U.S. territory. San Cristobal El Sauce Guatemala City Escuintla (Expects to open in November 2023) U
Slide 10: Our Distribution Network
OUR DISTRIBUTION NETWORK DOMINICAN REPUBLIC Florida Produce Distribution Center During the fiscal year 2023: Global Distribution Center Domestic Distribution Center GUATEMALA ▪ 78.8% of net merchandise sales Produce Distribution Center were in currencies other than the U.S. dollar. ▪ Out of those sa
Slide 11: Our Growth Plan
OUR GROWTH PLAN • Invest in Remodeling Current PriceSmart Clubs, Adding New PriceSmart Locations and Opening More Distribution Centers. • Increase Membership Value for both Retail and Business Members, which drives Membership Income and Merchandise Sales. • Increase Sales via PriceSmart.com and Enha
Slide 12: Recent Club Openings
RECENT CLUB OPENINGS December 2020 October 2021 November 2021 Usaquén Guatemala City Floridablanca 8th Club in Colombia 5th Club Guatemala 9th Club Colombia April 2022 May 2023 September 2023 Portmore San Miguel El Poblado (Medellín) 2nd Club Jamaica 3rd Club El Salvador 10th Club Colombia 12
Slide 13: Real Estate Growth (Expected Openings)
REAL ESTATE GROWTH (Expected Openings) November 30, 2023 Early 2024 Escuintla Santa Ana 6th Club Guatemala 4th Club El Salvador 13
Slide 14: Enhanced Membership Value
ENHANCED MEMBERSHIP VALUE Continued growing of We partner with the PriceSmart foundation to seek to Member Wellness Offerings: Our popular Member’s Selection Continued focus on Philanthropy support and strengthen our communities by investing in Pharmacy, Optical and Audiology. Product Line-up keeps
Slide 15: Omni-Channel Platform
OMNI-CHANNEL PLATFORM Onboard/Renew Membership online Growing multi-channel personalized communication and Order online, Member interaction pick up at the Club! Exclusive online merchandise! PriceSmart App (easy access to product offers, Home digital membership card, delivery! order tracking) 15
Slide 16: Environmental and Social
ENVIRONMENTAL AND SOCIAL Our Environmental Initiatives Sustainable facilities focused on reducing and minimizing PriceSmart’s environmental impact ✓ Solar Panels ✓ Lighting Systems ✓ Hot Water Reclamation Systems ✓ Waste Management ✓ Sustainable Fisheries ✓ Food Bank Partnerships ✓ Recycling Centers
Slide 17: Workplace Rankings
WORKPLACE RANKINGS We are ranked: • PriceSmart in the Top 100 Global Most Loved Workplaces for 2023 by Newsweek's Magazine • 2nd Best Workplace in Colombia within the Retail Sector by job portal Computrabajo 17
Slide 18: Financials
PriceSmart FINANCIALS
Slide 19: Q4 FY23 Financial Highlights
Q4 FY23 FINANCIAL HIGHLIGHTS $15.4 Million** Net Income attributable to PriceSmart, Inc. 10.0% 10.6% Net Merchandise Sales $32.1 Million** Membership Income $20.4 Million** Growth Operating Income Growth Adjusted Net Income attributable to $1.09 Billion $17.2 Million PriceSmart, Inc. * Net Merchandi
Slide 20: Strong Sales
STRONG SALES Comparable Club Sales Net Merchandise Sales ($ in Millions) Changes in U.S. dollar Comparable Net Merchandise Sales CAGR 8.6% $4,301 15.0% 10.4% $3,945 $3,092 $3,465 $3,192 7.1% 10.0% 5.8% 5.0% -0.6% -1.5% 0.0% FY19 FY20 FY21 FY22 FY23 -5.0% FY19 FY20 FY21 FY22 FY23 Net Merchandise Sale
Slide 21: Consistent and Reliable Membership Income
CONSISTENT AND RELIABLE MEMBERSHIP INCOME Membership Renewal Rate & Membership Accounts Membership Fee Income 1.81 200% 1.63 1.56 1.67 1.76 ($ in millions) & Average Fee 180% 160% 140% CAGR 6.2% 120% 86% 90% 89% 87% 100% 81% 80% 60% $66 $61 40% $55 $56 $52 20% Membership Accounts (in millions) TTM R
Slide 22: Investing in Membership Experience
INVESTING IN MEMBERSHIP EXPERIENCE Platinum Members 160,913 Platinum CAGR 29% 131,316 103,231 77,909 58,962 * FY19 FY20 FY21 FY22 FY23 Platinum Penetration 8.9% 7.4% 6.2% 5.0% 3.6% FY19 FY20 FY21 FY22 FY23 *Our Diamond Members generally pay an annual membership fee of approximately $35 and our Plati
Slide 23: Margins and Operating Income
MARGINS AND OPERATING INCOME Total Revenue Margin% and (1) Operating Income % and Total Revenue ($ in billions) Total Revenue ($ in billions) 0.0% 16.1% FY23 16.1% 17.2% $4.4 FY23⁽³⁾ 4.2% $4.4 FY22 16.4% 16.8% $4.1 FY22 4.1% $4.1 FY21⁽²⁾ 17.8% $3.6 FY21⁽²⁾ 4.4% $3.6 16.7% FY20 16.7% $3.3 FY20 3.7% $
Slide 24: Earnings Per Diluted Share
EARNINGS PER DILUTED SHARE Earnings Per Diluted Share Adjusted Earnings Per Diluted Share CAGR 9.9% CAGR 14.0% 16.1% 16.4% $3.38 $3.50 16.7% $3.18 $4.06 $2.55 $2.40 $3.33 $3.18 $2.55 $2.40 FY19 FY20 FY21 FY22 FY23⁽²⁾ FY19⁽¹⁾ FY20⁽¹⁾ FY21⁽¹⁾ FY22 FY23⁽²⁾ (1) For Adjusted Earnings per Diluted Share FY
Slide 25: Strong Financial Metrics
STRONG FINANCIAL METRICS Selected Financial Data (Amounts in thousands, FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 except Number of Warehouse Clubs) Amounts Held by Foreign Subsidiaries $ 98,964 $ 203,598 $ 160,808 $ 203,952 $ 139,050 Amounts Held Domestically 7,272 100,173 54,671 47,421 113,152 Total
Slide 26: Appendix
APPENDIX PriceSmart
Slide 27: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Net Income, Adjusted Net Income per Diluted Share, and Adjusted EBITDA Adjusted Net Income and Adjusted Net Income per Diluted Share Adjusted EBITDA Three Months Ended Three Months Ended (Amounts in thousands, except Earnings Per Diluted Share) August 31, 20
Slide 28: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) Constant Currency Reconciliations Net Merchandise Sales and Net Merchandise Sales - Constant Currency Reconciliation Net Merchandise Sales - Impact of Foreign Currency Net Merchandise Sales (Amounts in millions) Constant Currency Exchange FY 19 $ 3,092 $
Slide 29: Investor Relations
INVESTOR RELATIONS Investor Relations Contact Michael McCleary Executive Vice President and Chief Financial Officer ir@pricesmart.com 858-404-8826 29 24