Pesorama Inc · TSXV:PESO
Pesorama — Investor Presentation (October 2022)
23 slides from Pesorama's investor presentation, October 2022
Slide 1: Mexico's Only True Dollar Store
Mexico’s Only True Dollar Store Affordable quality, delivered with a smile. PesoRama has something for everyone. INVESTOR PRESENTATION | OCTOBER 2022 | TSXV: PESO
Slide 2: Disclaimer
Disclaimer This document, as well as the data, opinions, estimates, forecasts and recommendations contained herein, have been prepared by JOI Canadian Stores, S.A. de C.V. (the “Company”) for the purpose of providing general and preliminary information about a potential discount retailer investment,
Slide 3: JOi's Evolution
JOi’s Evolution Watch Our Video Click the image to the left or scan the QR code to view a video of the evolution of JOi from store 1 to 20. JOi Dollar Plus Stores offer an unmatched value proposition in the Mexican market. Discounted general merchandise and everyday high-quality staples at affordabl
Slide 4: It All Started With a Gift Bag…
It All Started With a Gift Bag… “Our business was derived from a first-hand experience where my wife asked me to pick up a gift bag for a friend’s birthday party we were attending in Mexico. After two painful hours and countless bodegas, I could not find a gift bag. I was baffled as to why the Mexic
Slide 5: Experienced Team
Experienced Team Management Board of Directors Erica Fattore Rahim Bhaloo Antonio Heredia President & Chief Executive Officer Founder & Executive Chairman Director Erica was part of PesoRama’s founding management team and has over two Rahim is a life-long entrepreneur who started his Antonio is a fo
Slide 6: Company Overview
Company Overview PesoRama launched operations in 2019 in Mexico City and the surrounding areas targeting high density, high traffic locations serving Mexicans from all socio-economic profiles. With its head office in Mexico City and 20 stores in operation, PesoRama is the only true Mexican based dol
Slide 7: Key Investment Highlights
Key Investment Highlights Significant market gap creates massive market opportunity. The Mexican market is ripe for Targeted store network disruption as the everyday growth from 20 stores to shopper seeks simple discount 500 stores over the next general merchandise with a five years superior shoppin
Slide 8: Strong Demand Potential
Strong Demand Potential Market dynamics indicate strong demand potential. o Retail and consumer industries are a key engine of the Mexican economy, with household spending accounting for 60% of the country’s total economic output1 o Rise of middle-income households with increased purchasing power hu
Slide 9: Large Growing Market
Large Growing Market The retail market in Mexico is expected to grow by USD 9.7 billion between 2021 and 20261 The Mexican retail industry is growing 5% at an annual rate of 5%1,2 Sales Forecast 2017 - 2022 Period (USD $ Billions) 12.7% 77.6 37.3% Walmart 71.2 74.3 Soriana 65.5 68.39 61.6 4.8% Chedr
Slide 10: Growth Strategy
Growth Strategy 01 Significantly expand the store network across the country with a target of 500 stores over the next five years 02 Maximize in-store sales performance through customer experience excellence that can translate to higher sales per trip and repeat business 03 Multiple price points to
Slide 11: Store Rollout Has Refined Strategy & Operations Specific to Mexico
Store Rollout Has Refined Strategy & Operations Specific to Mexico GOAL! 5 store locations per month Current SEPTEMBER 2019 DECEMBER 2020 Launched First Store 11 Stores 20 Store rollout has provided: DECEMBER 2019 DECEMBER 2021 o Proof of business model 8 Stores 18 Stores Stores in Operation o Under
Slide 12: Store Network Potential 13K+
Store Network Potential 13K+ Dollar stores made up almost half of all new store openings in the united states The opportunity in 20211. we see could be 13,700+ dollar stores o PesoRama views the Mexican retail in Mexico. gap as an opportunity to scale to a sizable network of stores across the countr
Slide 13: Store Expansion Strategy
Store Expansion Strategy Target 500 stores in the next 5 years. 01 02 03 SCALE THE NUMBER OF STORES POSITION STORES IN STRATEGIC OPTIMIZE THE CUSTOMER ACROSS THE COUNTRY HIGH-TRAFFIC LOCATIONS IN-STORE EXPERIENCE o Expand within metropolitan Mexico o high-traffic shopping centres with o attractive s
Slide 14: Diversified Product Mix and Private Label Products
Diversified Product Mix and Private Label Products o JOi Dollar Plus stores carry 60% private label for enhanced margins and 40% branded products to attract market share o Unmatched private label offering from decades of merchandise experience of top management and Mexican market knowledge o Broad,
Slide 15: Distribution Centre Strategy Drives Efficiencies
Distribution Centre Strategy Drives Efficiencies o Efficiencies in logistics, warehousing and distribution capabilities o Strategic relationships with reputable service providers and strong in-house team to efficiently handle broad product assortment o Sites hold inventory and goods to be distribute
Slide 16: Supply Chain Partnerships Optimize Logistics
Supply Chain Partnerships Optimize Logistics Strategic partnerships and alliances with national and global partners across the supply chain: Partnership with International Freight Forwarder o Freight cost efficiencies with presence in over 100 countries o Global reach with depth of global understand
Slide 17: Alliance with Mexican Retail Conglomerate Creates Synergies
Alliance with Mexican Retail Conglomerate Creates Synergies o Strategic investor is a large retail conglomerate in Mexico with locations across the country o Network of existing locations and unique real estate opportunities aligns and supports expansion strategy o Ability to make key introductions
Slide 18: Low Competition Despite New Entrants
Low Competition Despite New Entrants There are no significant competitors in the Mexican dollar store industry. However, several discount retail chains have entered and/or expanded PesoRama’s JOi recently. Dollar Plus is the The lack of strong brands and highly fragmented multi-outlets is proof that
Slide 19: Return on Investment Potential in the Dollar Store Industry
Return on Investment Potential in the Dollar Store Industry Number of IPO Date Stock Exchange Market Cap Countries Stores EV / EBITDA EBITDA Margin Dollar General November 12, 2009 NYSE $54.1 B 18,350+ 18.6x 10.8% United States Dollar Tree, Inc March 6, 1995 NASDAQ $31.9 B 16,200+ 14.1x 10.7% United
Slide 20: Valuations of Comparable Public Companies
Valuations of Comparable Public Companies Enterprise EV / Share price Market Cap P / EPS EV / EBITDA Gross margin EBITDA margin value Revenue Dollar General $239.7 $54.7 B $69.2 B 23.8x 1.9x 18.2x 31.4% 10.8% Dollar Tree, Inc $142.3 $32.0 B $41.2 B 20.4x 1.5x 14.1x 30.9% 10.7% Five Below, Inc $139.1
Slide 21: Financial Estimates
Financial Estimates An average store payback is expected to be less than three years. 2022 2023 2024 2025 2026 Average Sales Per Square Foot per Store (Annually) $167 $196 $204 $212 $219 EBITDA per Store1 $73.2 $126.8 $159.5 $177.5 $198.1 $198 $178 Payback in 34 Months $160 $127 $73 $302 2021 2022 2
Slide 22: Market Capitalization
Market Capitalization In-the-Money Fully Diluted Shares Outstanding Ticker TSXV: PESO Basic Shares Outstanding 72,778,239 Share Price $0.150 52-week Range $0.14-0.79 Basic Market Capitalization $10,916,736 In-the-Money Warrants and Options Outstanding 2,500,000 Fully Diluted Shares Outstanding1 75,2
Slide 23: Contact Us
Contact Us Expand with PesoRama and come on this journey with us. Pesorama.ca Investor Relations investors@pesorama.ca TSXV: PESO 23