Slide 1: PriceSmart, Inc. Overview Presentation
PriceSmart, Inc. Overview Presentation Issued April 2024 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
BUSINESS OVERVIEW 3
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 • Opening of in Panama Listed on into $1 Billion en
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. We aim to serve as a model company, which operates profitably and provides a good
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 54 warehouse clubs GUATEMALA HONDURAS in emerging and developing markets that reach 12 countries and one U.S. territory. Miraflores Pradera Tegucigalpa Fraijanes San Pedro Sula San Cristobal El Sauce Guatemala City Escuintla USVI NICARAGUA Managua St. Thomas Ma
Slide 10: Our Distribution Network
OUR DISTRIBUTION NETWORK During the first six months of fiscal year DOMINICAN REPUBLIC 2024: Florida Produce Distribution Center Global Distribution Center Domestic Distribution Center GUATEMALA 79.6% of net merchandise sales Produce Distribution Center were in currencies other than the U.S. dolla
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. • Drive Incremental Sales via PriceSmart.com
Slide 12: Recent Club Openings
RECENT CLUB OPENINGS December 2020 October 2021 November 2021 April 2022 May 2023 Usaquén Guatemala City Floridablanca Portmore San Miguel 8th Club in Colombia 5th Club in Guatemala 9th Club in Colombia 2nd Club in Jamaica 3rd Club in El Salvador September 2023 October 2023 November 2023 February 20
Slide 13: Real Estate Growth (Expected Openings)
REAL ESTATE GROWTH (Expected Openings) Early Calendar Year 2025 Cartago 9th Club in Costa Rica 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 PriceSmart = Optica aes FINANCIALS potecig ~ .
Slide 19: Q2 FY24 Financial Highlights
Q2 FY24 FINANCIAL HIGHLIGHTS $39.3 Million Net Income 13.0% $63.6 Million 14.6% and Net Merchandise Sales Membership Income Adjusted Net Income* Growth Operating Growth Income $18.5 Million $84.1 Million $1.26 Billion Membership Income Adjusted EBITDA* Net Merchandise Sales $1.31 13.1% 5.1% Earnings
Slide 20: Strong Sales
STRONG SALES Comparable Club Sales Net Merchandise Sales ($ in Millions) Changes in U.S. dollar Comparable Net Merchandise Sales CAGR 9.3% 15.0% 10.4% 8.4% $4,301 $4,555 5.8% 7.1% $3,945 10.0% $3,192 $3,465 5.0% -1.5% 0.0% -5.0% FY20 FY21 FY22 FY23 TTM 02/29/2024 FY20 FY21 FY22 FY23 6 months YTD FY2
Slide 21: Consistent and Reliable Membership Income
CONSISTENT AND RELIABLE MEMBERSHIP INCOME Membership Renewal Rate & Membership Accounts 1.86 Membership Fee Income ($ in millions) & Average Fee 1.76 1.81 200% 1.67 1.56 CAGR 6.3% 180% 160% 140% 120% 90% 89% 87% 88% 100% 81% 80% 60% $70 $66 40% $61 $55 $56 20% Membership Accounts (in millions) TTM R
Slide 22: Investing in Membership Experience
INVESTING IN MEMBERSHIP EXPERIENCE Platinum Members 178,697 160,913 Platinum CAGR 23% 131,316 103,231 77,909 * FY20 FY21 FY22 FY23 6 months YTD FY24 Platinum Penetration 9.6% 8.9% 7.4% 6.2% 5.0% *Our Diamond Members generally pay an annual membership fee of approximately $35 to $40 and our FY20 FY21
Slide 23: Margins and Operating Income
MARGINS AND OPERATING INCOME Total Revenue Margin% and (1) Operating Income % and Total Revenue ($ in billions) Total Revenue ($ in billions) TTM 02/29/202416.1% 17.1% $4.7 TTM 02/29/2024 4.2% $4.7 16.1% FY23 17.2% $4.4 FY23⁽³⁾ 4.2% $4.4 16.4% FY22 16.8% $4.1 FY22 4.1% $4.1 16.7% FY21⁽²⁾ 17.8% $3.6
Slide 24: Earnings Per Diluted Share
EARNINGS PER DILUTED SHARE Earnings Per Diluted Share Adjusted Earnings Per Diluted Share** CAGR 11.1%* CAGR 16.8%* 16.1% 16.4% $4.06 16.7% $3.50 $3.18 $3.38 $3.18 $3.33 $2.55 $2.55 $2.54 $2.54 FY20 FY21 FY22 FY23 6 months YTD FY20⁽¹⁾ FY21⁽¹⁾ FY22 FY23 6 months YTD FY24 FY24⁽¹⁾ (1) Adjusted Earnings
Slide 25: Capital Expenditures
CAPITAL EXPENDITURES Maintenance and Growth CapEx ($ Millions) $73.2 $69.3 $66.3 $37.2 FY23 6 months YTD FY24 Total Growth CapEx⁽¹⁾ Total Maintenance CapEx⁽²⁾ (1) Total growth expenditures for new clubs, purchases of previously leased clubs, investments to move existing clubs to better locations, su
Slide 26: Strong Financial Metrics
STRONG FINANCIAL METRICS (Amount in thousands of dollars, YTD Q2 except Number of Warehouse Clubs) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Amounts Held by Foreign Subsidiaries 203,598 160,808 203,952 139,050 155,983 Amounts Held Domestically 100,173 54,671 47,421 113,152 26,592(3) Total Cash and Cas
Slide 27: Appendix
APPENDIX PriceSmart
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted Net Income Three Months Ended (Amounts in thousands, except Earnings Per Diluted Share) February 29, 2024 February 28, 2023 Net income as reported $ 39,271 $ 31,347 Adjustments: Separation costs associated with Chief Executive Officer departure(1) - 7,747 (2
Slide 29: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) Adjusted Earnings Per Diluted Share Adjusted Net Income per Diluted Share Years Ended Six Months Ended August 31, 2020 August 31, 2021 August 31, 2022 August 31, 2023 February 29, 2024 Net income attributable to PriceSmart per diluted share $ 2.55 $ 3.18
Slide 30: 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 20 $ 3,192 $
Slide 31: Investor Relations
INVESTOR RELATIONS Investor Relations Contact Michael McCleary Executive Vice President and Chief Financial Officer ir@pricesmart.com 858-404-8826 31