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INVESTOR

PRESENTATION

MARCH 2020

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Forward Looking Statements Disclaimer Some of the statements in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and

Section 21E of the Securities Exchange Act of 1934. The Company generally identifies forward-looking statements in this presentation using words like “believe,” “intend,” “target,” “expect,” “estimate,”

“may,” “should,” “plan,” “project,” “contemplate,” “anticipate,” “predict” or similar expressions. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These forward-

looking statements are based on the Company’s expectations, assumptions, estimates and projections about its business and the industry in which it operates as of the date of this presentation. These

statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s or its industry’s actual results, levels of activity, performance or achievements to be materially

different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks and uncertainties include: our ability to compete

effectively in a competitive industry; fluctuations in commodity prices; our ability to appropriately respond to changing merchandise trends and consumer preferences; successful implementation of our store

growth strategy; decreases in our Halloween sales; disruption to the transportation system or increases in transportation costs; product recalls or product liability; economic slowdown affecting consumer

spending and general economic conditions; loss or actions of third party vendors and loss of the right to use licensed material; disruptions at our manufacturing facilities; and the additional risks and

uncertainties set forth in “Risk Factors” in the Company’s latest Form 10-K and in subsequent reports filed with or furnished to the Securities and Exchange Commission. Although the Company believes that the

expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future events, outlook, guidance, results, actions, levels of activity, performance or achievements. You are

cautioned not to place undue reliance on these forward-looking statements. Except as may be required by any applicable laws, the Company assumes no obligation to publicly update or revise such

forward-looking statements, which are made as of the date hereof or the earlier date specified herein, whether as a result of new information, future developments or otherwise.

Non-GAAP Information This presentation includes non-GAAP measures including Adjusted EBITDA and Adjusted Net Income/Loss and Adjusted Earnings per Share. We present these non-GAAP financial

measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by eliminating items that we do not believe are indicative of our core

operating performance. In addition, we use Adjusted EBITDA: (i) as a factor in determining incentive compensation, (ii) to evaluate the effectiveness of our business strategies and (iii) because our credit

facilities use Adjusted EBITDA to measure compliance with certain covenants. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in

tables accompanying this release. We also evaluate our results of operations on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure,

excludes the impact of fluctuations in foreign currency exchange rates. We calculate constant currency percentages by converting our prior-period local currency financial results using the current period

exchange rates and comparing these adjusted amounts to our current period reported results. We also provide free cash flow, defined as Adjusted EBITDA less capital expenditures, and net debt leverage,

which is calculated by adding Loans and Notes Payable, Current Portion of Long Term Obligations and Long Term Obligations, Excluding Current Portion, subtracting Cash and Cash Equivalents and dividing

by Adjusted EBITDA for the trailing twelve month period. Adjusted Earnings per Share is calculated by dividing Adjusted Net Income by the Weighted Average Number of Common Shares-Diluted. We

believe providing these non-GAAP measures provides valuable supplemental information regarding our results of operations and leverage, consistent with how we evaluate our performance. In evaluating

these non-GAAP financial measures, investors should be aware that in the future the Company may incur expenses or be involved in transactions that are the same as or similar to some of the adjustments in

this presentation. The Company's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. The Company has provided

this information as a means to evaluate the results of its core operations. Other companies in the Company's industry may calculate these items differently than it does. Each of these measures is not a

measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures

have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

Disclaimer

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Our Purpose is to create joy

by making it easy to create

unforgettable memories!

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THE PARTY

▪ Who We Are

▪ Unique Differentiated Model

▪ Experiential Store Format

▪ The Party Vision

▪ Financials

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THE PARTY

▪ Who We Are

▪ Unique Differentiated Model

▪ Customer Centric Retail Experience

▪ The Party Vision

▪ Financials

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Party

Goods Consumer Technology Athletic Cosmetics Mattresses

Party Specialty

Retail Pet Supplies Sporting Goods Home Improvement

Consu

mer

Pro

duct

sSpeci

alty R

eta

il

(Consumer Products)

#1 vs. #2

player(1)~1.2x ~1.6x ~2.5x ~1.2x

We lead and define the party consumer products category

1 Represents comparison of global sales of the #1 vs. #2 player

+4.0x

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PARTIES FOR PEOPLE

AROUND THE WORLDManufacture Retail StoresWholesaleDesign

Unparalleled capabilities for delivering unforgettable moments

Create joy by making unforgettable memories.

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THE PARTY

▪ Who We Are

▪ Unique Differentiated Model

▪ Customer Centric Retail Experience

▪ The Party Vision

▪ Financials

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Uniquely positioned within party goods market

Grocery

Independents

Specialty

Discount

Product Design

Wholesale / Distributors

Global Sourcing

Manufacturing

8,000 new

products/yr

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Locations

5 countries

9 cities

45K SKUs

sold in 100

countries

World’s largest party good’s manufacturer, distributor, retailer

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Trend InnovationLicenses

Unmatched design and innovation capabilities with ≈ 200 person team develops proprietary designs and licenses via customer insights

Product design differentiates the customer experience

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Product sourcing & manufacturing excellence drive competitive advantage

Distribution

Manufacturing

Sourcing

Approximately 24% of retail sales is manufactured in-house (largely US based) with strategy to continue to decrease China-based sourced product; Nine sourcing offices

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LATEX BALLOONS

PAPER PLATES & BOWLS

PLASTIC TABLEWARE

INJECTED MOLDED PLASTICS

FOIL BALLOONS

COSTUMES

PERSONALIZED PARTY

PRODUCTS

PIÑATAS, PARTY KITS

PAPER CUPS, STRAWS

& NAPKINS

PRINTED PAPER DÉCOR

& ACCCESSORIES

Manufacturing capabilities allow for differentiation, speed to market

Benefit from operating excellence driven by end to end control over product life cycle and pricing

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WHOLESALE 77%

THIRD PARTY 23%

Leveraging internal strength to improve retail profitability

Powerful vertically integrated model is a unique competitive advantage that enables margin expansion

SOURCED

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THE PARTY

▪ Who We Are

▪ Unique Differentiated Model

▪ Customer Centric Retail Experience

▪ The Party Vision

▪ Financials

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Customer centric capabilities

DATA ANALYTICS

LOYALTY

CUSTOMER INSIGHTS KAZZAM

BALLOON DELIVERY

PARTY PLANNERS

Customer first mind-set with the addition of relevant services distinguishes Party City and

enables the premier destination for parties and special events

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Consumer insights drive our go-to market strategy enabling a personalized experience across touch points

MarketingDigital Merchandising

Inspiration Trend Value

Developing trend-right and ownable assortments

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Costumes & Accessories

BalloonsDécor

Authoritative assortments, merchandising, value and convenience supports easy

do-it-yourself experience

Halloween destination to inspire customization

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Dominant omnichannel platform

800 Retail Stores

63M customers

PartyCity.com

162M visitors

Email

13M subscribers

Social Media

4.7M Followers

2019 Core Web + BOPIS Sales 800+ Stores

Buy online pick up in store

≈40% of online orders

E commerce penetration Store Locations

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Piloting experiential store format

• Race track shop-in-shop layout

• Enhanced Balloon shopping experience

• Category adjacencies to improve party solution selling

• Testing low capital investment format

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747 804 777

148 96 98

2017 2018 2019

Store Count

US Corp Stores Franchise Stores

Optimizing store fleet to drive retail profitability

COMPELLING NEW STORE ECONOMICS

Store Size ≈12,000 square feet

Net Investment $450K

Payback Period ≈ 2 years

895 900 875

eCommerce

growth-0.7% 16.9% 14.8%

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THE PARTY

▪ Who We Are

▪ Unique Differentiated Model

▪ Customer Centric Retail Experience

▪ The Party Vision

▪ Financials

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The Path to a Party Platform

PARTY SUPPLIES COMPANY

• Party product manufacturer,

wholesaler and distributor

• Convenient retail locations

• E-Commerce basics

FULLY INTEGRATED VERTICAL RETAILER

• Optimized inventory, assortment and space

• Efficient enterprise supply chain

• Selling culture focused on customer needs

• Enhanced omni-channel

A PARTY PLATFORM

• Technology enabled

• One-stop-shop

• End-to-end services

• Predictor of needs & wants

MEMORY MAKERS & PLANNING EXPERTS

• In-store and online integrated party planning services

• Dedicated local services platform

• Highly personalized engagement needs

• Fully omni-channel

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2020 Priorities to stabilize retail performance

WIN with

balloons

Pilot in-store

experience

enhancements

Address

price value

perception

Improve

in-store customer

engagement

Enhance digital

omni-channel

capabilities

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THE PARTY

▪ Who We Are

▪ Unique Differentiated Model

▪ Customer Centric Retail Experience

▪ The Party Vision

▪ Financials

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Financial Summary

Q4 2019 Actual FY2019 Actual

Total Revenues $731.6 million $2,348.8 million

Brand Comp (5.1%) (3.0%)

North America E-comm Growth Including BOPIS +14.7% +14.8%

Adjusted EBITDA* $119.5 million $269.2 million

GAAP Net Income (Loss) ($268.8 million) ($532.9 million)

Adjusted Net Income* $47.8 million $43.4 million

GAAP EPS ($2.88) ($5.71)

Adjusted EPS* $0.51 $0.46

Free Cash Flow** $135.5 million $207.5 million

Party City Corporate Stores 777 777

*Please refer to appendix for reconciliation of GAAP to Non-GAAP measures

**Free cash flow defined as Adjusted EBITDA less capital expenditures

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Total reported revenues decreased 9.2% and 9.1% in constant currency

Q4 2019 Revenue Performance

Wholesale Retail

Total Net Sales Growth -12.4%

Revenue Growth +4.6% Constant Currency Growth -12.4%

Constant Currency Growth, ex-franchise

acquisitions

+5.0%

Domestic Comparable Brand Sales -5.1%

Revenue Growth +1.1% New Years Eve Timing Shift -70 bps

Growth, ex-franchise acquisitions +1.1% North America E-Comm Growth Ex-BOPIS +2.1%

International North America E-Comm Growth with BOPIS +14.7%

Revenue Growth +12.8%

Constant Currency Growth +13.7%

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Total reported revenues decreased 3.2% and 2.7% constant currency

FY19 Revenue Performance

Wholesale Retail

Total Net Sales Growth -3.4%

Revenue Growth -2.6% Constant Currency Growth -3.2%

Constant Currency Growth, ex-franchise

acquisitions

+1.3%

Domestic Comparable Brand Sales -3.0%

Revenue Growth -3.6% Helium Comp Impact -190 bps

Growth, ex-franchise acquisitions +2.1% North America E-Comm Growth Ex-BOPIS +2.8%

International North America E-Comm Growth with BOPIS +14.8%

Revenue Growth +0.6%

Constant Currency Growth +4.3%

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Q4 and 2019 Gross margin versus prior year

Q4 FY

2018 Reported Gross Margin 45.3% 40.6%

Promotional/Discount Activity (180 bps) (100 bps)

Store Optimization (130 bps) (130 bps)

Helium Headwind (80 bps) (100 bps)

Freight/Supply Chain Disruption NA (60 bps)

Sales Mix Shift (60 bps) (50 bps)

Sales Deleverage (50 bps) (30 bps)

Total Gross Margin Decline (500 bps) (470 bps)

2019 Reported Gross Margin 40.3% 35.9%

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Balance Sheet and Free Cash Flow

FY2019 Actual FY2018 Actual

Cash $34.9 million $58.9 million

Inventories, net $658.4 million $756.0 million

Accounts Payable $152.3 million $208.1 million

Total Debt* $1,669.1 million $1,879.1 million

Leverage Ratio** 6.2x 4.7x

Free Cash Flow*** $207 million $315 million

**Net of cash

**Defined as debt (net of cash) to adjusted EBITDA

**Free cash flow defined as Adjusted EBITDA less capital expenditures

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FY20 Guidance

Guidance

Total Revenue Mid-Single Digit % Decline

Brand Comp Low-Single Digit % Decline

Adjusted EBITDA* $250 to $270 million

Adjusted Net Income* $47 to $63 million

Adjusted EPS $0.50 to $0.68

Net Debt Continue to prioritize debt pay down

*Please refer to appendix for reconciliation of GAAP to Non-GAAP measures

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APPENDIX

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Reconciliation of Non-GAAP Financial Measures to GAAP Measures

2019 2018 2019 2018

Net (loss) income ($268,829) $98,374 ($532,858) $122,819

Interest expense, net 26,042 29,225 114,899 105,706

Income taxes 20,504 29,335 (1,305) 38,778

Depreciation and amortization 18,736 20,789 81,116 78,575

EBITDA (203,547) 177,723 (338,148) 345,878

Non-cash purchase accounting adjustments 243 3,500 3,000 6,196

Store impairment and restructuring charges (a) 3,818 - 58,778 -

Other restructuring, retention and severance (b)

1,212 292 6,460 3,397

Goodwill and intangibles impairment (c)

303,531 - 562,631 -

Deferred rent (d) (754) 1,728 (1,796) 5,351

Closed store expense (e)

1,021 781 4,445 4,211

Foreign currency losses (gains), net (65) (104) 421 24

Stock option expense (f)

169 252 1,319 1,744

Non-employee equity based compensation (g)

129 (271) 515 81

Undistributed income in equity method investments (277) 211 (472) (369)

Corporate development expenses (h)

2,426 2,905 14,208 11,314

Non-recurring consulting costs (i)

- 271 - 12,514

Refinancing charges (j)

36 - 36 6,237

Restricted stock units - time-based (k)

490 452 2,033 1,174

Restricted stock units - performance-based (l)

(1,036) (1,482) - -

Non-recurring legal settlements/costs (m)

6,753 2,380 8,548 2,380

Gain on sale/leaseback transaction (n)

- - (58,381) -

(Gain) loss on sale of assets (o)

5,074 - 5,074 -

Other 301 279 518 (16)

Adjusted EBITDA $119,524 188,917 $269,189 400,116

Adjusted EBITDA margin 16.3% 23.4% 11.5% 16.5%

Three Months Ended December 31, Year Ended December 31,

(k)        Non-cash charges for restricted stock units that vest based on service conditions.

(l)          Non-cash charges for restricted stock units that vest based on performance conditions.

(i)   Non-recurring consulting charges related to the Company's retail operations.

(f)          Represents non-cash charges related to stock options.

(d)      The “deferred rent” adjustment reflects the difference between accounting for rent and landlord incentives in accordance with

GAAP and the Company’s actual cash outlay for such items.

(m)      Non-recurring legal settlements/costs.

(o)      Represents a loss on sale of ownership interest in Punchbowl (See the 2019 Form 10-K for further discussion) and certain

property, plant and equipment, and a write-off of goodwill related to the Company’s sale of its Canadian-based Party City stores.

(a)    During the year ended December 31, 2019, the Company performed a comprehensive review of its store locations aimed at

improving the overall productivity of such locations (“store optimization program”) and made the decision to accelerate the optimization of

its store portfolio with the closure of approximately 55 stores which are primarily located in close proximity to other Party City stores. In

conjunction with the store optimization program, the Company recorded the following charges: inventory reserves: $21.3 million, operating

lease asset impairment: $14.9 million, property plant and equipment impairment: $4.7 million, labor and other costs related to closing the

stores: $8.7 million and severance: $0.7 million. The charge for inventory reserves was recorded in cost of sales in the Company’s

statement of operations and comprehensive (loss) income. The other charges were recorded in store impairment and restructuring

charges in the Company’s statement of operations and comprehensive (loss) income. See the 2019 Form 10-K for further discussion.

Additionally, during the process of liquidating the inventory in such stores, the Company lost margin of $8.5 million.

(n)      During June 2019, the Company reported a $58.4 million gain from the sale and leaseback of its main distribution center in

Chester, New York and its metallic balloons manufacturing facility in Eden Prairie, Minnesota. The aggregate sale price for the three

properties was $128.0 million. Simultaneous with the sale, the Company entered into twenty year leases for each of the facilities.

(j)          During 2018, the Company amended its credit facilities. In conjunction with the amendments, the Company wrote-off capitalized

deferred financing costs, original issue discounts and call premiums. Further, in conjunction with the amendment, the Company expensed

investment banking and legal fees. Such amounts are included in "Refinancing charges" above.

(g)        Principally represents shares of Kazzam awarded to Ampology as compensation for Ampology’s services. See the 2019 Form 10-K for

further discussion.

(b)     For the year ended December 31, 2019, amounts expensed principally related to executive severance and the write-off of inventory for

a section of the Company’s Party City stores that were restructured.

(e)       Principally charges incurred related to closing underperforming stores.

(c) As a result of a sustained decline in market capitalization, the Company recognized a non-cash pre-tax goodwill impairment charge

during the year ended December 31, 2019 of $562.6 million. This includes a non-cash pre-tax tradename impairment charge of $6.6

million.

(h)        Primarily represents third-party costs related to acquisitions (mainly legal expenses and diligence fees). Such costs are excluded

from the definition of “Consolidated Adjusted EBITDA” that is utilized for certain covenants in the Company’s credit agreements.

Additionally, 2019 includes continued start-up costs for Kazzam (see the 2019 Form 10-K for further discussion of Kazzam).

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Reconciliation of Non-GAAP Financial Measures to GAAP Measures

2019 2018 2019 2018

(Loss) income before income taxes ($248,325) $127,709 ($534,163) $161,597

Intangible asset amortization 3,572 4,312 14,100 12,271

Non-cash purchase accounting adjustments 2 4,190 4,202 6,812

Amortization of deferred financing costs and

original issuance discounts (a)

1,211 1,155 4,722 10,989

Store impairment and restructuring charges (b)

3,818 - 58,778 -

Other restructuring charges (c)

389 - 3,211 809

Goodwill and intangibles impairment (d)

303,531 - 562,631 -

Non-employee equity based compensation (e)

129 (271) 515 81

Refinancing charges (a)

- - 36 -

Non-recurring consulting costs (f)

- 271 - 12,514

Stock option expense (g)

169 252 1,319 1,744

Gain on sale/leaseback transaction (h)

- - (58,381) -

Restricted stock units - performance-based (i)

(1,036) (1,482) - -

Non-recurring legal settlements/costs (j)

6,500 2,380 6,500 2,380

(Gain) on sale of Canada retail assets (k)

(2,873) - (2,873) -

Adjusted (loss) income before income taxes $67,087 $138,516 $60,597 $209,197

Adjusted income tax (benefit) expense (l)

19,300 35,142 17,183 52,355

Adjusted net (loss) income $47,787 103,374 $43,414 156,842

Adjusted net (loss) income per common share - diluted $0.51 $1.08 $0.46 $1.61

Weighted-average number of common shares-diluted 93,372,232 96,031,332 93,604,794 97,271,050

Year Ended December 31, Three Months Ended December 31,

(f)          Non-recurring consulting charges related to the Company’s retail operations.

(i)          Non-cash charges for restricted stock units that vest based on performance conditions.

(j)          Non-recurring legal settlements/costs.

(k)        The Company recorded a $2.9 million gain on sale of its Canadian-based Party City stores.

(g)       Represents non-cash charges related to stock options.

(l)          Represents income tax expense/benefit after excluding the specific tax impacts for each of the pre-tax adjustments. The tax

impacts for each of the adjustments were determined by applying to the pre-tax adjustments the effective income tax rates for the

specific legal entities in which the adjustments were recorded.

(e)          Principally represents shares of Kazzam awarded to Ampology as compensation for Ampology’s services. See the 2019

Form 10-K for further discussion.

(a)         Includes the non-cash amortization of deferred financing costs, original issuance discounts and capitalized call premiums. In

addition, during 2018, the Company amended its credit facilities and in conjunction with the amendments, the Company wrote-off

capitalized deferred financing costs, original issue discounts and call premiums. Further, in conjunction with the amendment, the

Company expensed investment banking and legal fees. Such amounts are included in "Amortization of deferred financing costs and

original issuance discounts" above.

(c)     For the year ended December 31, 2019, amounts expensed principally related to executive severance and the write-off of

inventory for a section of the Company’s Party City stores that were restructured.

(h)         During June 2019, the Company reported a $58.4 million gain from the sale and leaseback of its main distribution center

in Chester, New York and its metallic balloons manufacturing facility in Eden Prairie, Minnesota. The aggregate sale price for

the three properties was $128.0 million. Simultaneous with the sale, the Company entered into twenty year leases for each of

the facilities.

(b)     During the year ended December 31, 2019, the Company performed a comprehensive review of its store locations aimed

at improving the overall productivity of such locations (“store optimization program”) and made the decision to accelerate the

optimization of its store portfolio with the closure of approximately 55 stores which are primarily located in close proximity to

other Party City stores. In conjunction with the store optimization program, the Company recorded the following charges:

inventory reserves: $21.3 million, operating lease asset impairment: $14.9 million, property plant and equipment impairment: $4.7

million, labor and other costs related to closing the stores: $8.7 million and severance: $0.7 million. The charge for inventory

reserves was recorded in cost of sales in the Company’s statement of operations and comprehensive (loss) income. The other

charges were recorded in store impairment and restructuring charges in the Company’s statement of operations and

comprehensive (loss) income. See the 2019 Form 10-K for further discussion. Additionally, during the process of liquidating the

inventory in such stores, the Company lost margin of $8.5 million.

(d) As a result of a sustained decline in market capitalization, the Company recognized a non-cash pre-tax goodwill

impairment charge during the year ended December 31, 2019 of $562.6 million. This includes a non-cash pre-tax tradename

impairment charge of $6.6 million.

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Reconciliation of Non-GAAP Financial Measures to GAAP Measures

35