Slide 1: Aimia: Inspiring Loyalty
/\IMI/A\ INSPIRING LOYALTY
Slide 2: Q1 2014 Highlights
Q1 2014 HIGHLIGHTS May 13, 2014
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements are included in the following presentation. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “wo
Slide 4: Rupert Duchesne, Group Chief Executive
RUPERT DUCHESNE GROUP CHIEF EXECUTIVE
Slide 5: Overall Highlights
OVERALL HIGHLIGHTS • Participating with TD in a highly successful credit card launch in Canada, with TD enrolling around 275,000 new cardholders representing a 50% increase in the conveyed portfolio in only a few months • Strong Q1 on all metrics, boosted by $100 million TD contribution to Aeroplan
Slide 6: Financial Services Momentum in Q1 2014
FINANCIAL SERVICES MOMENTUM IN Q1 2014 • 12% lift in active co-branded • Mix of cards acquired credit cards to 1.4 million indicates good spend potential over time • Net new cards acquired taking AMEX base up 30% YoY Aeroplan Spend Per Card Active Card Base Financial Sector Gross Billings* Q1 2014 +
Slide 7: Driving Increased Member Engagement
DRIVING INCREASED MEMBER ENGAGEMENT New Distinction Flights Rewards Issued in Q1 +8.6% New Market Fare Rewards +13.3% Air Rewards Non-Air Rewards 7
Slide 8: Continued Return to Shareholders
CONTINUED RETURN TO SHAREHOLDERS Return of Capital Quarterly Dividends Per Common Share* since 2009 CAGR +7.6% ~$523M of dividends paid to common $0.180 shareholders $0.170 $0.160 between 2009 $0.150 and 2013 $0.125 $0.125 Repurchased ~$333M of common shares since 2010 pursuant to NCIB 2009 2010 201
Slide 9: David Adams, Executive Vice-President and CFO
DAVID ADAMS EXECUTIVE VICE-PRESIDENT AND CFO
Slide 10: Strong Underlying Performance in Q1 2014
STRONG UNDERLYING PERFORMANCE IN Q1 2014 Gross Billings1 Adjusted EBITDA Free Cash Flow2 $717.2M $132.6M $60.5M +27.8% +60.1% (1) Includes $100.0 million upfront TD contribution. (2) Free cash flow before common and preferred dividends paid. 10
Slide 11: Q1 2014 Gross Billings Growth by Region
Q1 2014 GROSS BILLINGS GROWTH BY REGION ($ MILLIONS) $17.1 $13.3 $717.2 $25.7 $100.0 EMEA US & APAC Canada $561.1 TD +10.0% excluding TD contribution Contribution Consolidated: +27.8% growth; +22.6% in c.c.(1) Canada: +40.9%; +8.4% excluding TD contribution US & APAC: +15.9% in c.c.(1) EMEA: (6.8)%
Slide 12: Q1 2014 Gross Billings Growth by Activity
Q1 2014 GROSS BILLINGS GROWTH BY ACTIVITY ($ MILLIONS) $20.8 $717.2 $27.9 $7.4 $100.0 EMEA Proprietary Canada Loyalty Units Loyalty & $561.1 Loyalty Units Other TD Contribution +8.6% Excluding TD contribution • Consolidated Loyalty Units +32.7% growth; • Proprietary Loyalty & Other +14.1% • Canada L
Slide 13: Changing Aeroplan Patterns of Redemption and Issuance
CHANGING AEROPLAN PATTERNS OF REDEMPTION AND ISSUANCE Positive Growth in Miles Redeemed YoY Growth 0.0% 4.6% 2.9% -2.3% -8.9% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Positive Growth in Miles Issued YoY Growth 15.4% 1.5% 2.1% -1.5% -4.5% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 13
Slide 14: Q1 2014 Canada AEBITDA Growth
Q1 2014 CANADA AEBITDA GROWTH ($ MILLIONS) $100.0 ($13.3) ($17.3) Gross ($16.1)* ($12.4) Billings ($5.1) Promo Miles $141.0 net of Impact* Redemption Breakage Marketing Costs Impact and Promotion $89.1 Change in TD FRC Contribution 2013 2014 Reported Reported 14
Slide 15: Q1 2014 Consolidated AEBITDA Growth
Q1 2014 CONSOLIDATED AEBITDA GROWTH ($ MILLIONS) $2.0 ($2.7) $2.2 ($3.6) $51.9(1) $132.6 Stock US & EMEA Corporate Based APAC Compensation $82.8 Canada Consolidated +60.1% growth 2013 2014 Reported Reported 1) Includes $100.0 million contribution from TD. 15
Slide 16: Drivers of Free Cash Flow
DRIVERS OF FREE CASH FLOW* Q1 2013 Q1 2014 FCF ($9.5M) FCF $60.5M(1) Strong growth in Gross Billings 82.1 Lower than expected -9.0 Redemptions -21.6 1Q 2013 1Q 2014 Cashflow from Operations Capital Expenditures Free cash flow before Dividends Paid was $60.5M, or $0.32 per common share * Free Cash Fl
Slide 17: 2014 Guidance
2014 GUIDANCE* 2013 Original Guidance 2014 Target Range (as provided on Feb 26, 2014) (as updated on May 13, 2014) Between 7% and 9% growth Gross Billings $2,366.4 million No Change (constant currency)(1) Adjusted EBITDA margin of Adjusted EBITDA $350.5 million(2) No Change approximately 12%(1) Targ
Slide 18: Thank You
AIMIA INSPIRING LOYALTY
Slide 19: Appendix
APPENDIX
Slide 20: Key Metrics
KEY METRICS* Three Months Ended Consolidated Highlights Year over Year March 31, Constant (in millions of Canadian dollars) 2014 2013 % Change Currency Gross Billings (1) 717.2 561.1 27.8% 22.6% (1) Of which: Gross Billings from Sale of Loyalty Units 548.7 413.3 32.7% 27.4% Of which: Proprietary Loy
Slide 21: Key Metrics by Region
KEY METRICS BY REGION* Regional Highlights Three Months Ended Year over Year March 31, Constant (in m illions of Canadian dollars) 2014 2013 % Change Currency Consolidated Gross Billings (1)(2) 717.2 561.1 27.8% 22.6% Of which: Canada (1) 432.8 307.1 40.9% 40.9% Of which: EMEA 187.0 173.7 7.6% -6.8%
Slide 22: Adjusted EBITDA to Free Cash Flow Bridge
ADJUSTED EBITDA TO FREE CASH FLOW BRIDGE* ($ MILLIONS) $11.2 $1.7 ($68.6) $22.5 $132.6 Non-cash items ($21.6) ($15.1) ($2.2) $60.5 Adjusted Harmonized Change in Stock Based Working Capital Net Cash Cash Taxes Free Cash EBITDA sales tax on FRC Compensation capital and expenditures Interest Flow CIBC
Slide 23: Q1 2014 Financial Highlights – Consolidated
Q1 2014 FINANCIAL HIGHLIGHTS – CONSOLIDATED* Three months ended March 31, (in millions of Canadian dollars) 2014 2013 Variance Reported Reported % Gross Billings1 717.2 561.1 27.8% Gross Billings from the sale of Loyalty Units 548.7 413.3 32.7% Revenue from Loyalty Units 441.7 461.1 -4.2% Revenue fr
Slide 24: Q1 2014 Financial Highlights – Canada
Q1 2014 FINANCIAL HIGHLIGHTS – CANADA* Three months ended March 31, (in millions of Canadian dollars) 2014 2013 Variance Reported Reported % Gross Billings1 432.8 307.1 40.9% Gross Billings from the sale of Loyalty Units 384.5 256.6 49.9% Revenue from Loyalty Units 306.0 320.8 -4.6% Revenue from pro
Slide 25: Q1 2014 Financial Highlights – Canada
Q1 2014 FINANCIAL HIGHLIGHTS – CANADA* Three months ended March 31, (in millions of Canadian dollars) 2014 2013 Variance Reported Reported % Gross Billings Aeroplan2 395.5 268.6 47.2% Proprietary Loyalty 55.3 58.2 -5.0% Intercompany eliminations (18.0) (19.7) -8.5% 432.8 307.1 40.9% Total revenue Ae
Slide 26: Canada Performance
CANADA PERFORMANCE Q1 2014 Gross Billings Q1 2014 Highlights • Gross Billings up 40.9% over last year to $432.8M 11% with the benefit of the TD contribution and an 8.4% underlying increase in Gross Billings Canada • Excluding the TD contribution, Loyalty Units up $432.8M 10.9%, driven by financial c
Slide 27: Loyalty Units Gross Billings and Revenues
LOYALTY UNITS GROSS BILLINGS AND REVENUES* Three Months Ended Operational Highlights Year over Year March 31, (in millions of Canadian dollars) 2014 2013 % Change Consolidated Gross Billings from the sale of 548.7 413.3 32.7% Loyalty Units (76% of total Gross Billings) (1) Of which: Canada (70% of L
Slide 28: Q1 2014 Financial Highlights – EMEA
Q1 2014 FINANCIAL HIGHLIGHTS – EMEA* Three months ended March 31, (in millions of Canadian dollars) 2014 2013 Variance Reported Reported % Gross Billings 187.0 173.7 7.6% Gross Billings from the sale of Loyalty Units 164.1 156.7 4.7% Revenue from Loyalty Units 135.8 140.3 -3.2% Revenue from propriet
Slide 29: EMEA Performance
EMEA PERFORMANCE Q1 2014 Gross Billings Q1 2014 Highlights 12% • Gross Billings up 7.6% to $187.0 million benefiting from currency impact; down 6.8% on a constant currency basis, compared to Q1 last year when we 16% had strong Nectar UK growth and sponsor funding in EMEA the Middle East to support i
Slide 30: Q1 2014 Financial Highlights – US & APAC
Q1 2014 FINANCIAL HIGHLIGHTS – US & APAC* Three months ended March 31, (in millions of Canadian dollars) 2014 2013 Variance Reported Reported % Gross Billings 97.7 80.6 21.3% Gross Billings from the sale of Loyalty Units - - - Revenue from Loyalty Units - - - Revenue from proprietary loyalty service
Slide 31: US & APAC Performance
US & APAC PERFORMANCE Q1 2014 Gross Billings Q1 2014 Highlights • Gross Billings up 21.3% (15.9% on constant currency basis) to $97.7 million, with strong growth resulting from net new business in APAC US & and the inclusion of Smart Button, which offset lower rewards fulfillment volumes in the U.S
Slide 32: Gross Billings from Sale of Loyalty Units by Major Partner
GROSS BILLINGS FROM SALE OF LOYALTY UNITS BY MAJOR PARTNER 14.4% 26.0% 24.4% 31.1% Q1 2013 Q1 2014 19.3% $413.3M $448.7M* 12.6% 14.7% 18.3% 12.2% 17.1% 9.9% Partner A Partner B Partner C Partner D Air Canada Other * Excludes the $100.0 million upfront contribution received from TD in the first quart
Slide 33: Long Term Debt
LONG TERM DEBT Long-Term Debt at March 31, 2014 (in million Canadian Dollars) Authorized Drawn Maturity Date Interest Rate Canadian prime rate plus 0.20% to Revolving facility 300.0 - - 1.50% and the Bankers' Acceptance and LIBOR rates plus 1.20% to 2.50%. Senior Secured Notes Series 1 - - - - Senio
Slide 34: Dividend History
DIVIDEND HISTORY Amount of Dividend Per Series 1 Preferred Per Series 3 Preferred Date of Dividend Declaration Per Common Share Share Share 21-Oct-2008 $0.125 - - 26-Feb-2009 $0.125 - - 12-May-2009 $0.125 - - 14-Aug-2009 $0.125 - - 13-Nov-2009 $0.125 - - 3-Mar-2010 $0.125 $0.311640 - 11-May-2010 $0.
Slide 35: Balance Sheet at March 31, 2014
BALANCE SHEET AT MARCH 31, 2014 AVAILABLE CASH DEBT Annual March Interest March $ millions 31, 2014 $ millions Rate Maturing 31, 2014 Cash and cash equivalents 623.2 Revolving Facility(1) Apr. 23, 2016 - Restricted cash 33.0 Senior Secured Notes 2 7.90% Sept. 2, 2014 150.0 Short-term investments 55.
Slide 36: Foreign Exchange Rates
FOREIGN EXCHANGE RATES Q1 2014 Q1 2013 % Change Average Period Average Period Average Period quarter end rate quarter end rate quarter end rate £ to $ 1.8234 1.8397 1.5647 1.5449 16.5% 19.1% AED to $ 0.2999 0.3010 0.2743 0.2768 9.3% 8.7% USD to $ 1.1019 1.1058 1.0077 1.0171 9.3% 8.7% € to $ 1.5099 1