Party City ICR Conference

January 10, 2017

OUR COMPANY

1 Excludes franchise stores (~180)

Source: Company filings and websites.

Party Goods Crafts Pet Supplies Sporting Goods

Home Improvement

Industry Leader

Stores ~7301 ~1,350 ~1,430 ~750 ~2,270

#2 Player

NM

Stores — ~600 ~1,400 ~200 ~1,860

3

YOU MAY KNOW US FOR OUR RETAIL BUSINESS…. Category Leadership Like No Other Specialty Retailer

…BUT WE ARE SO MUCH MORE Our unique vertical model sets us apart from other retailers

We are the world’s largest designer,

manufacturer and distributor of party

goods

We have a large and growing

manufacturing base – primarily located in

the USA

Our business has several unique barriers

to entry

4

YOU MAY NOT KNOW: We are the world’s largest designer, manufacturer and distributor of party goods

/ Over a third of our total profits are

generated by third party wholesale

customers

/ Our products are sold into 100+

countries

/ Over 40,000 retail locations

worldwide sell our products:

/ Independent party stores

/ Grocery stores

/ Dollar stores

/ Mass merchants

/ Our own Party City stores

5

1

Grocery retailer in the U.K.

Card and gift store

YOU MAY NOT KNOW: We have a large and growing manufacturing base – primarily located in the USA

2

We have built a foundation of state-of-the-art manufacturing capabilities

prioritizing domestic production…

/ Over 20% of products sold in Party City are self manufactured:

Metallic balloons (next page)

Paper napkins, plates, cups

Plastic plates, cups, bowls

Custom injection-molded plastics

Costumes

Latex balloons

Piñatas

/ Our goal is to increase this to 50% self-manufactured product

…and an efficient, world-class sourcing engine

/ Of the products we source internationally, we have been diversifying away from China to

take advantage of lower wages and duties in Vietnam, India, Indonesia

/ We are reducing sourcing agents and increasingly going direct to factory

Made in the U.S. (94% of 2016 manufactured COGS)

6

YOU MAY NOT KNOW: We are the world’s largest manufacturer of metallic balloons (and they’re produced in the U.S.)

7

2

Foil balloon industry overview:

/ Anagram has ~60% global market share

/ Anagram sales distribution:

International: 35% ; Domestic: 65%

/ Sales of licensed product: >30%

/ Biggest category is Every Day (>80%)

/ Opportunities to expand beyond customary retail

channels

Anagram: Our metallic balloon manufacturing facility in MN

Foil balloon

uses

Party

Gift

Decoration

Social expression

Novelty

Toy

Floral Add On

P.O.P.

Examples of balloon formats

/ We have a 70-year history in our

product category

/ Many of our retail competitors are our

wholesale customers because we are

the leading supplier

/ We offer a fun and unique destination

shopping experience creating a strong

and growing need for brick & mortar

/ We have strong, decades-long

relationships with our licensors

YOU MAY NOT KNOW: Our business has several unique barriers to entry

1 Includes seasonal SKUs

Innovative Product with our 130-

Person In-House Design Team

Portfolio of Top Tier Licenses

85% Unaided Brand Awareness

Difficult Category for Online

Retailers to Steal Market Share

We are Entrenched in the Party

Goods Industry

8

3

/ Over 30,000 SKUs1 in-store and

80,000 SKUs online

Unmatched Product Breadth

OUR UNIQUE VERTICAL MODEL A “Virtuous Circle of Strength”

Rapid response to

changes in

consumer

preferences

Our vertical model and significant, global scale provide unique competitive advantages: / Enhanced profitability by capturing the full manufacturing-to-retail margin on a significant portion of the

products sold in our retail stores

/ Maintain greater control of every step from design and production through the sale of our products across channels

Enhance wholesale

capabilities via retail

insights

Cost competitive

sourcing

Enhanced control

of inflation

pressures

Design and

innovation

capabilities

Ensures best

products and

inventory

9

Retail

OUR VERTICAL GOALS

Breakdown of Retail Sales

Singles

Product that PRTY buys from a third party and sells

at Party City corporate stores.

Earns retail margin only

/ Examples: candy, greeting cards, helium, foil serving

pans

Doubles

Product that PRTY’s wholesale division buys from a

third party and sells at Party City corporate stores.

Earns wholesale + retail margin

/ Examples: party favors, costumes and wearables, table

covers, cutlery

Triples

Product that PRTY’s wholesale division manufactures

+ distributes + sells at Party City corporate stores.

Earns manufacturing + wholesale + retail margin

/ Examples: paper plates, bowls, cups & napkins, plastic

cups, metallic and latex balloons, piñatas, costumes

Definitions

20%

50%

55%

30%

25%20%

Today Goal (2-4 years)

75% share

of shelf

80% share

of shelf

10

KEY INVESTMENT HIGHLIGHTS

Leading Market Position with Category Defining Retail Concept

Unique Vertically Integrated Operating Model

Highly Efficient Global Sourcing with Controlled Distribution Channels

Broad and Innovative Product Offering

Strong Financial Performance and Free Cash Flow Generation

World Class Management Team and Experienced Sponsor Ownership

11

OUR RESULTS

$1,872 $1,914 $2,045 $2,271 $2,295 $2,316

2011 2012 2013 2014 2015 LTM 3Q16

Total Revenues ($mm) Adjusted EBITDA1 ($mm) and Adjusted EBITDA Margin1

13 1 See SEC filings for reconciliation of Adjusted EBITDA to Net Income

2 Free Cash Flow defined as Adjusted EBITDA less CapEx.

3 Free Cash Flow Conversion defined as (Adjusted EBITDA – CapEx) / Adjusted EBITDA.

$275 $292$321

$362 $380 $39514.7% 15.3% 15.7% 15.9% 16.6% 17.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

2011 2012 2013 2014 2015 LTM 3Q16

0

50

100

150

200

250

300

350

400

450

500

EBIT

DA

Mar

gin

EBIT

DA

$231 $247 $260$284 $301 $321

2011 2012 2013 2014 2015 LTM 3Q16

84.0% 84.6%

81.0%

78.5%79.3%

81.3%

2011 2012 2013 2014 2015 LTM 3Q16

Free Cash Flow ($mm)2 Free Cash Flow Conversion3

STRONG PERFORMANCE Consistent results, with strong underlying performance

14

/ Revenue growth of ~1.4%

(reported) and 2.4% in constant

currency

/ Comp Sales growth of 1.3%

/ Gross margin expansion of

+140bps, driven by continued

Share of Shelf gains and sourcing

efficiencies

/ Operating Margins of 7.5%,

improving ~80bps YoY

/ Adjusted EBITDA $198M, 8.2%

higher than YTD 3Q15

/ Adjusted EPS of $0.39

/ Healthy free cash flow generation

of $140M

SOLID PERFORMANCE TO DATE Focused on our Core Fundamentals

Summary Results Y-o-Y ∆

($ in millions) 9/30/2016 $ % CC%

Total Revenues $1,534 $21 1.4% 2.4%

Gross Profit $571 $29

% Margin 37.5% 140 bps

Operating income $115 $13 13.2%

% Margin 7.5% 80 bps

Adj. EPS $0.39 $0.18 85.7%

Adj. EBITDA $198 $15 8.2%

% Margin 12.9% 80 bps

Year to Date

15

A SOLID THIRD QUARTER Strong Underlying Business Performance

Everyday vs. Seasonal

/ Revenue growth of ~0.3% (reported) and 1.7% in

constant currency

/ Comp Sales growth of 1.2%

/ Gross margin expansion of +110bps, driven by

continued Share of Shelf gains, sourcing efficiencies

and less promotional activity in our stores

/ Operating Margins of 6.6%, improving ~90bps YoY

/ Adjusted EBITDA over $66M, and $8M above PY

/ Adjusted EPS of $0.12, 20% growth

/ Healthy free cash flow generation of $44M

The shift from a Saturday to a Monday was the main

driver of a softer Halloween season (our Fiscal October),

with comp sales down 6.4%

Strong underlying growth in our Everyday categories

demonstrates the inherent strength of our underlying

business and reinforces our growth objectives

/ Everyday category growth:

• 3Q16 up ~4%

• Fiscal October up ~4%

Summary Results Y-o-Y ∆

($ in millions) Q3 2016 $ % CC%

Total Revenues $557 $2 0.3% 1.7%

Gross Profit $197 $7

% Margin 35.5% 110 bps

Operating income $37 $5 17.3%

% Margin 6.6% 90 bps

Adj. EPS $0.12 $0.02 20.0%Adj. EBITDA $66 $8 13.4%

% Margin 11.9% 140 bps

Everyday 65%

Seasonal35%

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Q1

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STEADY GROWTH Sales of party goods resilient in all economic cycles

Rolling LTM Gross Wholesale Sales ($ in millions)

Recession Recession

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

16

2016

17

A STRONG OUTLOOK BEYOND 2016

/ Sustainable long-term comp

store sales growth

/ Retail Store expansion in North

America of 401 stores/yr. over

the next 3-5 years

/ Manufacturing share of shelf

growing to 50%, fueling

~200bps gross margin

expansion

/ Continued EBITDA margin

growth

1 Includes Mexico stores and potential franchise acquisitions

GROWTH OPPORTUNITIES

/ Increase share of shelf at company-owned and 3rd party stores

/ Drive continued product innovation

/ Expand into adjacent business-to-business channel

Grow Our Global Digital

Platform

/ Enhance customer experience through integrated omni-channel

strategy

/ Further develop international capabilities through country specific

sites

/ Currently represents only approximately ~7% of retail sales

Drive Additional Growth and Productivity

From Existing Stores

/ Continue to improve brand image and awareness

/ Pursue merchandising initiatives to drive increased units per

transaction

/ Convert existing stores to new, more customer interactive format

Grow our International

Presence

/ Drive international growth through customization of products

/ Expand retail presence through store-within-a-store concept with

select international retailers

/ Represents ~15% of consolidated revenues in 2015

Expand Our Retail Store

Base

/ Plan to open ~302 stores per year representing ~4% annual

square footage growth

/ New stores generate a ~3 year payback, 50% ROIC in year 3

Pursue Accretive Acquisitions

/ Completed numerous successful acquisitions

/ Emphasis on smaller, bolt-on acquisitions that add scale and/or

unique capabilities

/ Significant synergy potential with existing business

Grow Wholesale Business

1

19

2

3

4

5

6

• SOS Gains of over 700bps since 20131

• CAGR sales growth of 5% since 20131

• Market expansion (e.g. Mexico)

• CAGR sales growth of 17% since 20131

• Manufacturing & distribution acquisitions

• Franchise groups (23 stores 2016)

• Opened 44 net new stores 2015-YTD16

• Take work out of our stores

• Focus on service and engagement

• NA web comp sales up 12% YTD 2016

• Customer conversion levels growing

1 2013 – 2015

2 Includes potential franchise acquisitions

OUR GROWTH PLATFORM Multiple levers for sustained growth

GROW OUR INTERNATIONAL PRESENCE

INITIATIVES BY COUNTRY/REGION:

Mexico:

/ Franchise agreement with Grupo Oprimax to open 80 stores by 2024

/ Five stores open by end of 2016

/ Target 50% share of shelf

United Kingdom:

/ Two retail locations up and running

/ Store-in-store concepts currently in ~40 Woodies locations

/ Dedicated party retail space in ~400 Clinton’s locations

/ 20+ store-in-store concepts planned by year end 2016 in Morrison’s

/ ASDA footprint in 300+ locations

Australia:

/ Store-in-store concepts currently in ~140 Big W stores

/ Dedicated space in 130 Spotlight stores across Australia and New Zealand

/ Licensed Tableware Program active in ~1,200 grocery stores (Coles and Woolworths)

Continental Europe:

/ Dedicated space in large retailers in several countries, including Spain, Germany, Belgium, Switzerland

20

International represents ~12% of total consolidated sales today

6

CLOSING THOUGHTS

21

• We are much more than just a Retailer…..

• Our ability to drive vertical integration provides unique competitive advantages

• The core fundamentals of our business model are inherently strong

• We have delivered consistent financial results

• We remain excited about our future growth opportunities

Appendix: COMPANY

OVERVIEW

COMPANY OVERVIEW

Largest vertically integrated manufacturer, supplier and retailer of decorated party goods globally $2.3 billion in worldwide sales1,2

$395 million in Adjusted EBITDA1,3 / 17.1% Adjusted EBITDA margin1,3

Wholesale / Distribution

Products we manufacture: metallic and latex balloons; paper plates, cups, napkins and bowls;

plastic cups, plates and bowls; costumes (new in 2016)

1 LTM ending 9/30/16

2 Includes franchise royalties.

3 See SEC filings for reconciliation of Adjusted EBITDA to Net Income.

4 Includes franchise locations.

~920 locations across North America4

>75% of products are sourced through wholesale business We are the largest manufacturer of metallic

balloons in the world

>45,000 SKUS

40,000 Retail Locations

Grocery Stores

Dollar Stores

Mass Merchant

Party City

Independent Party Stores

15

2

114

6

17 3

14

1 3

4

6

2

67

19

8

18

3

11 3

9 31

13

9

53 22

12

50

2

3

65 7 27 3

16 28

2

31 29

1 22

19

9

24

5 71

Puerto Rico Hawaii

Canada

29

One stop shop for all party needs

Manufacturing

#1 party goods retailer in North America

Retail

23

HISTORY OF VERTICAL INTEGRATION

Evolution of the Business – Key Events

Amscan founded

Became a vertically integrated manufacturer

The Party Superstore Channel evolves

Acquired Anagram

Acquired M&D

Balloons

Acquired Party City

Acquired Party America

Acquired Gags and Games, Factory Card and Party Outlet & 85% of Party City Franchise Group

Acquired remaining interest in Party City Franchise Group

Acquired Christy’s Costumes and Christy

Garments and Accessories

Acquired party goods division of American Greetings

Acquired Riethmuller, Latex Balloon Manufacturing in Malaysia, and Party Packagers in Canada

Acquired iParty and Party Delights (online retailer)

Acquired U.S. Balloon

Party City has developed into a fully integrated manufacturer and wholesaler with an Omni-Channel Retail Presence

Built a new distribution facility

Hong Kong showroom opened

Acquired Travis Designs

Acquired ACIM

1989 1986 2003 2002 2001 2008 2007 2006 2005 1998 1997 1947 2010 2011 2013 2014 2015

Acquired 23 franchise stores

Acquired Festival SA

2016

24

WHOLESALE We are one of the largest manufacturers, designers and distributors of decorated party supplies in the world

/ Over $1.2bn1 in sales, ~49%3 to owned retail and

e-commerce

/ Product sold in over 40,000 retail locations in 100+

countries

/ 57%3 U.S. / 43%3 International

/ Deep assortment with over 45,000 SKUs across 5

product categories

/ 400+ party goods ensembles, which contain 5 to

50 design-coordinated items

/ Balanced, multi-channel customer base – no single

customer represents more than 10% of third party

sales at wholesale

Wholesale Revenue by Product Category1

Wholesale Sales by Channel1

1 Reflects LTM 9/30/16 numbers. Based on total wholesale sales including intercompany sales to retail operations.

2 Includes sales to Party City Canada and Party Delights.

3 LTM 9/30/16

25

Costumes & Accerssories

28%

Tableware24%

Decorations20%

Favors, Stationery & Other16%

Metallic Ballons12%

Owned Stores & e-commerce

47% 2

Party City Franchised Stores

13%

Other Domestic Retailers

12%

Domestic Ballon Distributors/

Retailers6%

International Balloon

Distributions2%

Other International20%

WHOLESALE Global sourcing, manufacturing and distribution

/ In-house manufacturing focused on high-

volume party essentials that can be

manufactured through highly automated

processes

• Examples: Paper and plastic tableware

products and metallic balloons

/ Capabilities are cost-competitive and provide

rapid turnaround times on key product

categories

/ Labor intensive products, such as banners,

favors and centerpieces, are principally sourced

from Asia

/ 20+ year relationships with many of our vendors

/ Diversified sourcing, quality control and testing

with offices throughout Asia (China, Indonesia,

India and Vietnam)

1 Reflects December 31, 2015 numbers. Based on total wholesale sales including intercompany sales to retail operations. 2015 total wholesale sales were $1,227

million and intercompany sales were $573 million.

Sourcing Distribution Manufacturing

Wholesale Sourcing Mix1

Headquarters

Manufacturing /

Distribution

Elmsford (NY)

Louisville (KY)

Eden Prairie (MN)

Tijuana (Mexico)

Melaka (Malaysia)

Harriman (NY)

Newburgh (NY)

Chester (NY)

Edina (MN)

Baulkham Hills (Australia)

Milton Keynes,

(England)

Manufacturing /

Distribution

Manufacturing

Manufacturing / Distribution Manufacturing

Distribution

Kircheim unter Teck (Germany)

Distribution

Distribution

Distribution

Manufacturing

Guadalajara (Mexico)

Manufacturing / Distribution

Hong Kong (China)

Distribution

Distribution / Sourcing

6 Sourcing Facilities

East Providence (RI)

Manufacturing / Distribution

Distribution

Naperville (IL)

Manchester (England)

Distribution

Distribution

Brooklyn (NY)

Albuquerque (NM)

Manufacturing

Manufacturing

Madagascar

26

In-House Manufacturing

32%

Third Party 68%

RETAIL Innovative & Fun In-Store Experience

Party Goods SKU Count Comparison1

One stop shop for all party needs

/ Greater assortment of merchandise than our national

competitors, including mass merchants

/ Fun destination shopping experience where customers can

get new ideas and be inspired

/ Deep merchandise selection with high in-stock positions

Compelling Value

/ “Nobody has More Party for Less” pricing strategy

/ Low price point and slow inventory turn makes it difficult for

other online retailers to profitably compete

1 Party City management estimates.

2 Includes seasonal SKUs. 27

Largest retail network of

decorated party supplies

in North America

/ ~730 company-owned

Party City superstores

including ~50 locations

in Canada

/ ~180 franchise

locations

A leading operator of

temporary Halloween

stores in North America

/ Used to test locations for

year round Party City

stores

/ ~300 temporary stores

2 30,000

<2,000 <1,000

Dollar Stores Mass Market

Color City Candy City

Custom Invitations Favor City

RETAIL + WHOLESALE Best in Class Innovation and Broad Product Offering

Selected Merchandise Ensembles

License Portfolio

Product Offering

Innovation

/ Over 130 person in-house design team

/ Creative staff is constantly in the market identifying trends and new

product concepts

/ Vertical integration allows development team to test new products

and rapidly respond to changes in consumer preferences

/ Proprietary designs and licenses help differentiate products from

those of competitors

/ Introduce approximately 8,000 new products and 50 new party

goods ensembles annually

/ Broadest assortment of merchandise

/ Organized by events and themes

/ Deep merchandise selection

/ Wide assortment including invitations, thank you cards, tableware,

hats, horns, banners, cascades, balloons, novelty gifts, piñatas,

favors and candy

28

RETAIL Differentiated Online Platform

/ Non-curated product offering makes it difficult to find what you

want – they are too many options to look through

/ Duplicate products from multiple vendors appear in search results

• Different vendors = different designs

• Difficult to create a matching product set across all products

/ Low price point baskets with multiple items is not very profitable

/ Party supplies are not add-on purchases to a typical basket

/ Largest party supplies e-Commerce platform with $140 million of sales in 2015

/ Coordinated product sets (by color, theme) make it fast and easy for the customer to get everything they need

• Simplifies mobile browsing – 50% of online traffic is mobile

• Limited risk that different products don’t “match”

/ Curated offering with multiple search refinement options allows customers to quickly find specific products

/ Average basket size is 3x retail

Online competitor challenges

113 500+ 36

2 16 1

Yes No Yes

Yes No Yes

Yes No No

Yes Yes $75+ order for free shipping

Sample Comparison – Dora the Explorer birthday party search

# of items

Refine by dept (tableware, favors, etc)?

# of webpages

Sold in kits?

Party inspiration ideas provided?

Free shipping?

29

Online inspiration also helps drive in-store traffic – 50% of online visitors use website to plan in-store purchases

POWER OF THE VERTICAL MODEL Gross margin impact of achieving our vertical goals

Gross margin Today Goal

Hypothetical example Individual1 Cumulative Vertical % GM Vertical % GM Benefit

“Single”

$ 1.00 Retail sales price

0.50 product cost

0.50 product profit

0.20 occupancy

$0.30 net gross margin 30% 30% * 25% = 7.5% 20% = 6.0%

“Double”

$0.50 WS sales price

0.25 product cost

0.25 product profit

0.10 freight/distribution

$0.15 net gross margin 30% 45% * 55% = 24.8% 30% = 13.5%

“Triple”

$0.25 Mfg sales price

0.21 cost

$0.04 profit 15% 49% * 20% = 9.8% 50% = 24.5%

42.1% 44.0% ~200bps2

30 1 For ease of illustration purposes, a static product mix between vertical and 3rd party volumes as well as a static individual margin used. Actual results depend on range of

individual margins by product line and mix of vertical and non-vertical volumes.

2 Does not reflect GM impact of other factors like FX, international sales and expense leverage.

Illustrative

STRONG BALANCE SHEET AND LIQUIDITY

/ Majority of primary proceeds from 2015 IPO used to reduce existing indebtedness

/ Solid free cash flow generation with ability to self-fund organic growth and opportunistic acquisitions

/ Ample liquidity going forward supported by new revolver of $640 million1

/ Target gross leverage YE 2016: 4.2x; YE 2017: 3.5x - 3.7x

Acquisition by THL

Dividend Payment

Historical Net Debt / Adj. EBITDA2

1 ABL revolver comprised of $500 million facility, $40 million FILO tranche, and $100 million seasonal facility increase.

2 See SEC filings for reconciliation of Adjusted EBITDA to Net Income.

31

4.2x

3.5x

6.3x6.7x

5.8x

4.6x

3.5x - 3.7x

2010 2011 2012 2013 2014 2015 Target (YE2017)