Slide 1: PriceSmart, Inc. Overview Presentation
PriceSmart, Inc. Overview Presentation Issued July 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 2023 2021 • Opening of 51st club – 2019 San Miguel, El Salvador • Addition of PriceSmart Pharmacy & 2017 Audiology to wellbeing services • Release of FY2022 ESR Launch of Report 2012 PriceSmart PriceSmart Optical • Focus on locally sourced products opens new and initiation of 2008 wellbe
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 Distribution Centers Time Low Margins to Pass Savings onto Members Leverage Volume Buying Reinvest in Membership Value The Right Price Co-Branded Credi
Slide 9: Our Club Locations
OUR CLUB LOCATIONS PriceSmart operates 51 warehouse clubs (2) GUATEMALA HONDURAS in emerging and developing markets that Miraflores Pradera Tegucigalpa San Pedro Sula reach 12 countries and one U.S. territory. Fraijanes El Sauce San Cristobal Guatemala City Escuintla (Expects to open in fall 2023) U
Slide 10: Our Distribution Network
OUR DISTRIBUTION NETWORK DOMINICAN REPUBLIC Florida Produce Distribution Center During the first nine months of fiscal Domestic Distribution Center Global Distribution Center year 2023: ▪ 78.8% of net merchandise sales were in currencies other than the U.S. dollar. ▪ Out of those sales, 48.6% consis
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. Expand our Membership Services Offering Through Our Wellness Initiatives such as Pharmacy, Optical
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 Portmore San Miguel 2nd Club Jamaica 3rd Club El Salvador 12
Slide 13: Real Estate Growth (Expected Openings)
REAL ESTATE GROWTH (Expected Openings) August 2023 Fall 2023 Early 2024 El Poblado (Medellín) Escuintla Santa Ana 10th Club Colombia 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 Get/Renew Membership online Growing multi-channel Order online, communication and pick up at the Member interaction Club! Exclusive online merchandise! PriceSmart App Home delivery! 15
Slide 16: Environmental and Social
ENVIRONMENTAL AND SOCIAL Our Environmental Impacts 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 Our
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: Q3 FY23 Financial Highlights
Q3 FY23 FINANCIAL HIGHLIGHTS $29.6 Million Net Income attributable to PriceSmart, Inc. 7.1% 27.5% 8.4% Net Merchandise Sales Membership Income Operating Income Growth $31.9 Million Growth Growth $43.1 Million Adjusted Net Income attributable to $1.07 Billion Operating Income $16.7 Million PriceSmart
Slide 20: Strong Sales
STRONG SALES Comparable Club Sales Net Merchandise Sales ($ in Millions) Changes in U.S. dollar Comparable Net Merchandise Sales CAGR 8.0% 15.0% 10.4% $3,945 $4,202 $3,092 $3,465 6.5% $3,192 10.0% 5.8% 5.0% -0.6% -1.5% 0.0% FY19 FY20 FY21 FY22 TTM 05/31/2023 -5.0% FY19 FY20 FY21 FY22 9 months YTD FY
Slide 21: Consistent and Reliable Membership Income
CONSISTENT AND RELIABLE MEMBERSHIP INCOME Membership Renewal Rate & Membership Accounts 1.67 1.76 1.79 Membership Fee Income 1.63 180% 1.56 ($ in millions) & Average Fee 160% 140% 120% CAGR 5.5% 86% 90% 89% 87% 100% 81% 80% 60% $61 $64 40% $55 $56 20% Membership Accounts (in millions) $52 TTM Renewa
Slide 22: Investing in Membership Experience
INVESTING IN MEMBERSHIP EXPERIENCE * Platinum Membership Rollout Platinum CAGR 27% Platinum Members 153,058 131,285 103,223 77,909 58,962 *Our Diamond Members generally pay an annual membership fee of approximately $35 and our Platinum Members generally pay $75 per year. 22
Slide 23: Margins and Operating Income
MARGINS AND OPERATING INCOME Total Revenue Margin% and (1) Operating Income % and Total Revenue ($ in billions) Total Revenue ($ in billions) 0.0% 16.1% TTM 05/31/2023 16.1% 17.2% $4.3 TTM 05/31/2023 4.4% $4.3 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%
Slide 24: Earnings Per Diluted Share
EARNINGS PER DILUTED SHARE Earnings Per Diluted Share 16.1% CAGR 14.8% 16.4% 3.01 2.55 2.63 16.7% 1.90 1.73 9 Months YTD FY19 9 Months YTD FY20 9 Months YTD FY21 9 Months YTD FY22 9 Months YTD FY23 24
Slide 25: Strong Financial Metrics
STRONG FINANCIAL METRICS Selected Financial Data (Amounts in thousands, YTD Q3 except Number of Warehouse Clubs) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Amounts Held by Foreign Subsidiaries $ 98,964 $ 203,598 $ 160,808 $ 203,952 $ 194,562 Amounts Held Domestically 7,272 100,173 54,671 47,421 41,810
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 (1) Reflects $2.3 million of VAT receivables deemed not recoverable and written-off in the third quarter of fiscal year 2023 following unfavorable court rulings. (2) Primarily consists of
Slide 28: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) Constant Currency Reconciliations 28
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