Aimia Inc. · TSX:AIM
Aimia — Shareholder Meeting (May 2015)
24 slides from Aimia's shareholder meeting presentation, May 15, 2015
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING May 15, 2015
Slide 2: Robert Brown, Chairman
ROBERT BROWN CHAIRMAN INSPIRING LOYALTY
Slide 3: Board of Directors
BOARD OF DIRECTORS Alan Rupert Joanne Hon. Douglas Beth Chairman David Roman Rossy Duchesne Ferstman Michael Port Horowitz Robert Laidley Doroniuk Fortier Brown 3
Slide 4: John Forzani (1947 - 2014)
JOHN FORZANI (1947 - 2014) AIMIA INSPIRING LOYALTY
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS • A global leader in data-driven marketing and loyalty analytics • Excellent progress in 2014 positions Aimia well for the future • Attractive business model with strong cash flow generation and balance sheet • Focused on leading governance and executive compensation practices
Slide 6: Today's Agenda
TODAY’S AGENDA Formal Part of the Meeting Financial Highlights Strategic Overview Q&A Closing Remarks 6
Slide 7: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 a
Slide 8: David Adams, EVP and CFO
DAVID ADAMS EVP AND CFO INSPIRING LOYALTY
Slide 9: Global Scale and Scope
GLOBAL SCALE AND SCOPE Canada UK Italy USA Japan Jordan Bahrain Egypt Qatar Mexico UAE India Hong Kong Oman Singapore Indonesia Malaysia Australia Chile New Zealand A LEADER IN DATA-DRIVEN MARKETING AND LOYALTY ANALYTICS 9
Slide 10: Strong Financial Performance in 2014
STRONG FINANCIAL PERFORMANCE IN 2014 2014 2014 Coalition Actual Guidance 25% (Loyalty Units) (in million CAD) FY 2014 Consolidated Gross Billings Proprietary Loyalty and Gross Billings 2,686.6 Analytics & Insights 75% YoY % growth +9.3% 7% to 9%* Adjusted EBITDA 316.4 Margin +11.8% 12.0% 14% Canada
Slide 11: Dividends and Share Buybacks
DIVIDENDS AND SHARE BUYBACKS QUARTERLY DIVIDENDS PER COMMON SHARE* SHARE BUYBACKS (3) & PAYOUT RATIO • Renewed normal course issuer bid for 55% 60%(2) 60% 2015/16 0.24 46% (1) 46% 50% 0.22 45% • Repurchased ~$333M 38% 38% of common shares 0.20 0.19 40% between 2010 to 2013 0.18 pursuant to NCIB 0.18
Slide 12: Balance Sheet at March 31, 2015
BALANCE SHEET AT MARCH 31, 2015 DEBT Interest March CASH & INVESTMENTS $ millions Rate Maturing 31, 2015 March $ millions 31, 2015 Revolving Facility(1) Apr. 23, 2019 - Cash and cash equivalents 514 Senior Secured Notes 3 6.95% Jan. 26, 2017 200.0 Restricted cash 27 Senior Secured Notes 5 4.35% Jan.
Slide 13: Q1 2015 and Full Year Guidance
Q1 2015 AND FULL YEAR GUIDANCE Q1 2015 Highlights • Gross Billings: $595.2M • Adjusted EBITDA : $52.1M or 8.8% of Gross Billings • Free Cash Flow before dividends paid $5.2M • Capital Expenditures $20.5M (1) FY 2015 Guidance •Gross Billings: $2.56 to $2.61B •Adjusted EBITDA margin: ~ 9% (2) •Free Ca
Slide 14: Rupert Duchesne, Group Chief Executive
RUPERT DUCHESNE GROUP CHIEF EXECUTIVE
Slide 15: Aimia: Making Business Personal
AIMIA: MAKING BUSINESS PERSONAL Data-driven marketing and loyalty analytics company operating in 20 countries internationally Three core businesses: Coalition loyalty Making Proprietary loyalty and Business platforms Personal Data analytics & insights 15
Slide 16: Our Global Growth Strategy Remains Focused on Leading the Market
OUR GLOBAL GROWTH STRATEGY REMAINS FOCUSED ON LEADING THE MARKET Strategic Aspirations Strategic Pillars 1 Strengthen our current position • Be the recognized global leader in data-driven marketing and loyalty Codify and replicate analytics 2 successful models globally • Make business personal by in
Slide 17: Investments Support Growth and Deliver Returns
INVESTMENTS SUPPORT GROWTH AND DELIVER RETURNS Coalition Loyalty Analytics & Insights Proprietary Loyalty • $1billion invested (net of cash) since 2007 (includes LMG and Carlson Marketing) • Many early stage investments • Leveraging know-how across the company • Contributed $100 million to Adjusted
Slide 18: 2014: An Exceptional Year of Progress
2014: AN EXCEPTIONAL YEAR OF PROGRESS • Aeroplan Transformation successfully executed in 2014 and on track for long term growth • Net co-branded cards acquired by TD, CIBC & AMEX ~400,000 • Miles issued, excluding promotional miles, increased 5.6% • Membership and engagement grew with average accumu
Slide 19: 2015 and Beyond
2015 AND BEYOND • Aeroplan transformation stability; sustainable growth over long term. • Complete transitions at Nectar in UK and Italy – return to growth in EMEA. • Capitalize on momentum to grow retail data analytics to material scale globally. • Leverage platforms to grow proprietary loyalty in
Slide 20: Delivering Returns Through Our Social Purpose
DELIVERING RETURNS THROUGH OUR SOCIAL PURPOSE Three pillars support Aimia’s social purpose 20
Slide 21: Continued Returns to Shareholders
CONTINUED RETURNS TO SHAREHOLDERS FREE CASH FLOW* RETURN OF CAPITAL Generated Paid Repurchased ~$1.7 billion ~$0.9 billion in ~$0.5 billion between dividends between common shares 2008 and Q1 2015 2008 and Q1 2015 under NCIB since 2010 to (~53% of FCF) May 15, 2015 >80% of cumulative Free Cash Flow
Slide 22: Aimia: In Summary
AIMIA: IN SUMMARY • Well positioned to be a leader in data-driven marketing and loyalty analytics • Solid market positions and brand strength provide significant barrier to entry • Global strategy and resources to remain at the forefront of the industry • Cash generative business model that delivers
Slide 23: Q&As
AIMIA INSPIRING LOYALTY
Slide 24: Thank You
AIMIA INSPIRING LOYALTY