Slide 1: Second Quarter 2025 Earnings Call
THE HEALTH + WELLNESS CO. PETCO SECOND QUARTER 2025 EARNINGS CALL August 24, 2023
Slide 2: Safe Harbor and Non-GAAP Measures
SAFE HARBOR AND NON-GAAP MEASURES This Presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amend
Slide 3: (1) Please see the Recurring Revenue footnote at the end of this Presentation. (2)
► ► ► ► ► (1) Please see the Recurring Revenue footnote at the end of this Presentation. 1 (2) Non-GAAP financial measure; see definition and reconciliation at the end of this Presentation.
Slide 4: Continued Strategic Action Across Core Initiatives
CONTINUED STRATEGIC ACTION ACROSS CORE INITIATIVES • • • • • • • • (1) Please see the Recurring Revenue footnote at the end of this Presentation.
Slide 5: Consistent and Diversified Revenue Growth Across Businesses
CONSISTENT AND DIVERSIFIED REVENUE GROWTH ACROSS BUSINESSES NET REVENUE BY CATEGORY ($in millions) Key Revenue Highlights $1,578 $1,556 1,531 P F $1,481 $1,501 s * Continued top-line performance 493 205 ete 239 252 with 3% year-over-year growth * Comp sales of 3% y/y driven by 601 575 EES 554 545 su
Slide 6: Net Debt and Liquidity
1 • • Supply Chain & Other Digital & IT New & Existing Locations • Net Debt1 $1.4B (7%) $1.6B Liquidity2 $619M 9% $569M (1) Non-GAAP financial measure; see definition and reconciliation at the end of this Presentation. (2) Sum of cash and cash equivalents and availability under revolver.
Slide 7: Partners and Community
Partners and Community Celebrated pride in San Antonio and San Diego at parades and festivals, supporting the LGBTQ+ community and Petco's Partner Resource Group. Hosted cultural events to celebrate AAPI heritage month and Juneteenth, celebrating and reflecting on the histories of our diverse commun
Slide 8: Petco: Pillars of Growth
SERVICES INTEGRATION Fully integrated services offerings including vet clinics, maturing hospitals, and grooming & training continue to support and transform four-wall economics PETCO: PILLARS OF GROWTH MERCHANDISE DIFFERENTIATION Leverage pet humanization and premiumization trends in favorable cate
Slide 9: Non-GAAP Measures and Other Definitions
NON-GAAP MEASURES AND OTHER DEFINITIONS
Slide 10: Non-GAAP Measures and Other Definitions
Non-GAAP Measures and Other Definitions
Slide 11: Reconciliation of Net Income to Adjusted EBITDA
(dollars in thousands) 13 Weeks Ended Reconciliation of Net (Loss) Income Attributable to Class A and B-1 July 29, July 30, Common Stockholders to Adjusted EBITDA 2023 2022 Net (loss) income attributable to Class A and B-1 common stockholders $ (14,606) $ 13,456 Add (deduct): Interest expense, net 3
Slide 12: Reconciliation of Diluted EPS to Adjusted EPS
(in thousands, except per share amounts) 13 Weeks Ended Reconciliation of Diluted EPS to Adjusted EPS July 29, 2023 July 30, 2022 Amount Per share Amount Per share Net (loss) income attributable to common stockholders / diluted EPS $ (14,606) $ (0.05) $ 13,456 $ 0.05 Add (deduct): Income tax expense
Slide 13: Free Cash Flow
(in thousands) 13 Weeks Ended July 29, July 30, 2023 2022 Net cash provided by operating activities $ 96,614 $ 42,569 Cash paid for fixed assets (51,973) (70,280) Free Cash Flow $ 44,641 $ (27,711)
Slide 14: Net Sales by Category
13 Weeks Ended July 29, July 30, July 31, August 1, % Change % Change % Change 2023 2022 2021 2020 (1 yr) (2 yr) (3 yr) Consumables $ 734,077 $ 687,068 $ 611,946 $ 492,274 7% 19% 43% Supplies and companion animals 544,521 600,711 663,572 612,630 (9%) (19%) (11%) Services and other 252,136 193,018 15
Slide 15: Non-GAAP Financial Measures' Footnotes
Non-GAAP Financial Measures’ Footnotes OO O————————————O————————eeeeeeeeererererererererertt 0) @ @) (4) Mexico Joint Venture EBITDA represents 50 percent of the entity’s operating results for all periods, as adjusted to reflect the results on a basis comparable to Adjusted EBITDA. In the financial
Slide 16: Thank You
THANK YOU THE HEALTH + WELLNESS CO.