Slide 1: Aimia Q3 Presentation
Aimia Q3 Presentation November 8, 2024
Slide 2: Forward-looking and cautionary statements
Forward-looking and cautionary statements This presentation contains statements that constitute “forward-looking information” within the meaning of Canadian securities laws (“forward- looking statements”), which are based upon Aimia’s current expectations, estimates, projections, assumptions and bel
Slide 3: GAAP and Non-GAAP Financial Measures
GAAP and Non-GAAP Financial Measures GAAP FINANCIAL MEASURES To measure performance, the Corporation uses and presents several financial measures in accordance with GAAP, including, but not limited to, gross profit (loss), operating income (loss), Earnings (loss) before income taxes, Net earnings (l
Slide 4: Today's presenters
Today’s presenters Tom Finke Steve Leonard Executive Chairman President & CFO 4
Slide 5: Key highlights and recent developments
Key highlights and recent developments • Q3 marked by progress on key financial metrics • Aimia is on track to meet 2024 guidance • Settlement with largest investor paves way for increased focus on strategic review process • Strategic review committee evaluating options for unlocking shareholder val
Slide 6: Strategic developments
Strategic developments AIMIA
Slide 7: Cooperation agreement with Mithaq
Cooperation agreement with Mithaq • Represents a positive step and alignment with our biggest shareholder • Eliminates overhang on Aimia’s share price • Two Mithaq nominees will be added to Aimia’s board • Asif Seemab effective immediately • Rhys Summerton will join pending approval from shareholder
Slide 8: Strategic review committee
Strategic review committee • Committee formed in July following AGM • Evaluating options to unlock value and return capital to shareholders • Potential sale of core holdings • Potential re-capitalization • Potential merger and tax loss utilization Focused on returning capital to shareholders 8
Slide 9: Update on share buyback
Update on share buyback Total available shares • NCIB launched June 6 % Purchased • Received approval to purchase up to 10% of 34% public float or 7,009,622 common shares • Purchased approximately 2.4M of allowable 7,009,622 shares* to date, including a 1.3M block 66% • Represents an outlay of appro
Slide 10: Financial & Operating Results
Financial & Operating Results
Slide 11: Consolidated financial highlights
Consolidated financial highlights $ million except EPS Q3 2024 Q3 2023 • Q3 2024 results sustained momentum established at start of 2024 Revenue $129.1 $114.3 • Improvements to key financial metrics Gross Profit $35.4 $22.9 driven by core holdings’ performance Gross Profit Margin 27.4% 20.0% OPEX $2
Slide 12: Bozzetto financial highlights
Bozzetto financial highlights* Revenue Adj. EBITDA** +13% +24% $Million $Million $90 $88.1 $87.4 $15.5 $86.0 $16 $15.1 $85 $14.5 $14 $80 $75.9 $75 $80.8 $79.0 $77.2 $11.7 $13.1 $12 $14.0 $12.4 $70.3 $10.4 $2 $5 $8.4 $8.8 $7.3 $1.5 $2.0 $2.1 $0 $0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24
Slide 13: Cortland International financial highlights
Cortland International financial highlights $Million Revenue $Million Adj. EBITDA* -5% +12% $6 $5.7 $45 $43.1 $5.4 $5 $40 $38.4 $4.0 $35.0 $4 $3.6 $35 $34.0 $29.7 $3 $2.5 $30 $0 $0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 • Q3 2024 results driven by strong • Q3 2024 results impact
Slide 14: Highlights at non-core holdings
Highlights at non-core holdings Monetizing the value of non-core holdings is a priority 14
Slide 15: Consolidated cash waterfall through September 30
Consolidated cash waterfall through September 30* $Million + $7.8 $(3.9) $(4.9) $120.6 $22.6 $(5.0) $(3.3) $112.8 $(0.1) $1.3 $1.1 Q2 Cash Cashflow from Monetization Bozzetto Dividends Repayment NCIB CAPEX Other Q3 Cash Operations of Capital A financing of borrowings movements holdings agreement *Re
Slide 16: Tracking against guidance
Tracking against guidance Guidance for YTD Results • Adjusted EBITDA expected to be in 2024* the lower range of initial guidance 2024 Guidance* Adjusted EBITDA at $80 - $85M $60.3M** Bozzetto and Cortland Holdco Costs $13M $9.3M*** Aimia expects to meet the low-end of its guidance range * Presented
Slide 17: Updated valuation metrics
Updated valuation metrics In millions As at Sept. 30, 2024 Cash & marketable securities $121.4 • Highlights to assist with modeling Market Capitalization $253.3 purposes Preferred shares (Par value) $236.0 • Updated to reflect Q3 results Tax losses carry forward $772.1 Common shares outstanding 96.3
Slide 18: Summary
Summary • Q3 results and performance sustained momentum established at start of 2024 • Multiple initiatives to unlock value launched • Purchased 33% of shares allowed under NCIB • Formed Strategic Review Committee • Cooperation agreement signed with largest investor Aimia is executing on its strateg
Slide 19: Questions?
Questions? AIMIA
Slide 20: TSX: AIM www.aimia.ca IRandMedia@corp.aimia.ca
TSX: AIM www.aimia.ca IRandMedia@corp.aimia.ca
Slide 21: Appendix Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures
Slide 22: Reconciliation of Adjusted EBITDA - Bozzetto
Reconciliation of Adjusted EBITDA Bozzetto (in millions of Canadian dollars) Q3 2024 Q3 2023 Reconciliation of Adjusted EBITDA Operating income (loss) 9.1 0.3 Depreciation and amortization 5.3 5.1 Cost of sales expense related to inventory fair value step up resulting from purchase price allocation
Slide 23: Reconciliation of Adjusted EBITDA - Cortland International
Reconciliation of Adjusted EBITDA Cortland International (in millions of Canadian dollars) Q3 2024 Q3 2023 Reconciliation of Adjusted EBITDA Operating income (loss) 2.2 (0.4) Depreciation and amortization 3.0 3.0 Cost of sales expense related to inventory fair value step up resulting from purchase p
Slide 24: Reconciliation of Adjusted EBITDA - Holdings
Reconciliation of Adjusted EBITDA Holdings (in millions of Canadian dollars) Q3 2024 Q3 2023 Reconciliation of Adjusted EBITDA Operating income (loss) (5.3) (7.4) Share-based compensation expense (reversal) 0.4 (0.3) Adjusted EBITDA (4.9) (7.7) 24
Slide 25: Reconciliation of HoldCo costs
Reconciliation of HoldCo costs Holdings Nine Months Ended (in millions of Canadian dollars) September 30, 2024 Holdings segment Selling, general and administrative expenses 24.2 Shareholders activism related expenses (11.9) Share-based compensation (expense) reversal 0.7 Separation payments related