Aimia Inc. · TSX:AIM
Aimia — Debt Investor Presentation (March 2015)
18 slides from Aimia's debt investor presentation, March 2015
Slide 1: Aimia Credit Rating Agency Meetings March 2015
DELETED SLIDES 7 AND 11 FROM PREVIOUS VERSION CHANGED DATE ON FRONT PAGE REORDERED SLIDES IN DECK ADDED PLACEHOLDERS FOR NEW SLIDES CAN WE CHANGE THE IMAGE ON COVER SLIDE TO DISTINGUISH VS EQUITY PRESENTATION? AIMIA CREDIT RATING AIMIA AGENCY MEETINGS March 2015 December 2013
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT Forward-looking statements are included in this presentation. These forward-looking statements are typically identified by the use of terms such as “outlook”, “guidance”, “target”, “forecast”, “assumption” and other similar expressions or future or conditional terms such as
Slide 3: A Data-Driven Marketing and Analytics Company
A DATA-DRIVEN MARKETING AND ANALYTICS COMPANY INSPIRING LOYALTY THROUGH A FULL-SUITE GLOBAL OFFERING FY 2014 Consolidated Gross Billings $2.687B Proprietary Loyalty and Analytics & Insights 25% Proprietary Coalition Analytics Proprietary Loyalty Coalition & Insights Services (Loyalty Units) 75% 75%
Slide 4: We Have Come a Long Way
WE HAVE COME A LONG WAY $1billion invested (net of cash) since 2007 that contributed $100 million to Adjusted EBITDA in each of the last 3 years 4
Slide 5: Unmatched Global Scale and Scope
UNMATCHED GLOBAL SCALE AND SCOPE Canada UK Spain Italy USA Lebanon Japan Jordan Bahrain Egypt Qatar Mexico UAE India Hong Kong 43% Oman Consolidated Gross Billings Singapore FY 2014 Indonesia Malaysia $2.687B 57% Australia Chile Canada New Zealand Rest of World THE LARGEST PURE PLAY LOYALTY COMPANY
Slide 6: With Substantial Room to Grow
…WITH SUBSTANTIAL ROOM TO GROW Market Size $B, 2012 900 -740 160 -60 $90-100B $13-20B May be subject $80-87B to disruptive strategies from loyalty players Global Non-loyalty Loyalty Non- Aimia’s Coalitions Proprietary marketing marketing marketing addressable addressable spend spend spend by geograp
Slide 7: Building on a Strong Financial Track Record
BUILDING ON A STRONG FINANCIAL TRACK RECORD Gross Billings 2010-2014 Free Cash Flow 2010-2014(1) ($M) ($M) 299.5 287.0 2,687 273.6(2) 268.1(4) 2,243 2,366 2,188 2,233 221.5(3) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 1) Free Cash Flow before common and preferre
Slide 8: Continued Return to Shareholders
CONTINUED RETURN TO SHAREHOLDERS Return of Capital Quarterly Dividends Per Common Share* since 2009 ~$647M of dividends paid to common $0.180 shareholders $0.170 between 2009 $0.160 and 2014 $0.150 $0.125 $0.125 Repurchased ~$363M of common shares between 2010 to 2014 pursuant to NCIB 2009 2010 2011
Slide 9: 2014 Was a Year of Exceptional Progress
2014 WAS A YEAR OF EXCEPTIONAL PROGRESS • Aeroplan: fantastic year with new financial partners and launch of Distinction • Expanded the coalition business in Asia, Spain • Intelligent Shopper Solutions (ISS) data Met or exceeded our analytics business momentum guidance on all key financial metrics •
Slide 10: 2015 and Beyond
2015 AND BEYOND Leverage our unique capabilities and experience to replicate our success globally Continue to build breadth and scale in our business to serve global clients Make investments to enter new markets or to efficiently access capabilities; and exit investments if not generating an accepta
Slide 11: Access to a Rich Coalition Data Set
ACCESS TO A RICH COALITION DATA SET Personal and Registration Data Transaction and Program • Name • Address Interaction Data • Gender • Email • DOB • Phone • Transaction level data in all Nectar • 95% accurate (regular cleansing) partners and e-stores (location, spend, frequency) • Responsiveness to
Slide 12: Capturing 50% of Consumers' Annual Spend
CAPTURING 50% OF CONSUMERS’ ANNUAL SPEND Financial Household Bills Grocery Home / Garden Car Travel L&E 2% 1% Credit Card / Bank Fees TV License Household Garden Other Taxi Ticketing Pharmacy Shoes Products Air Photo Incidentals Baby Savings Mobile Entertainment Books Pets Car Service Life Assurance
Slide 13: 2015 Guidance
2015 GUIDANCE* ($ in millions) 2014 Reported 2014 Normalized(1) 2015 Guidance Gross Billings $2,686.6 $2,586.6 Between $2,560 to $2,610 Adjusted EBITDA $316.4 $216.4 Adjusted EBITDA margin and margin 11.8% 8.4% approximately 9% Free Cash Flow before $287.0 $94.3 Between $220 to $240 Dividends Paid C
Slide 14: 2015 Outlook
2015 OUTLOOK ($ IN MILLIONS) (1) (2) Adjusted EBITDA Free Cash Flow $316.4 $287.0 $220 - $240 ~9% Margin (1) ~2.5x $216.4 2014 (1) 8.4% Margin $94.3 (2) Consolidated: +17.0% growth; 12.1% in c.c.(1) Canada: +22.4%; (1) 2014 2015 EMEA: +12.7%; -1.2% 2014 in c.c. 2015 US & APAC: +5.2%; 0.0% in c.c. (1
Slide 15: Aeroplan Transformation
AEROPLAN TRANSFORMATION 2015 Impacts Aeroplan Yield • Yield + Spend + Rewards Mix • Welcome Bonus activity should taper • Marketing and bonus program ongoing dynamics will continue • Impact of Interchange embedded in guidance • Mid-to-high single digit growth from Rewards Mix financial partners; Int
Slide 16: EMEA and US & APAC
EMEA AND US & APAC EMEA 2015 Outlook US & APAC 2015 Outlook • Nectar Italia partner transition • Realigned and refocused for growth • Nectar base/bonus points rebalance • Momentum in proprietary and platforms with sales of ACP and ALP platforms in US and • Industry and macroeconomic factors ongoing
Slide 17: Aimia: An Attractive Investment Proposition
AIMIA: AN ATTRACTIVE INVESTMENT PROPOSITION Attractive business model with diversity of profitability Strong Free Cash Flow generation Focused on sustainable growth opportunities Delivers attractive returns to shareholders 17 17 17
Slide 18: Thank You
THANK YOU