Bread Financial Holdings, Inc. · NYSE:BFH

Bread Financial — Alliance Data Systems — Investor Presentation (February 2011)

11 slides from Bread Financial's investor presentation, Feb 23, 2011

  1. Slide 1: Alliance Data Company Overview: Epsilon Discussion, First Quarter 2011

    Alliance Data Company Overview NYSE: ADS Epsilon Discussion First Quarter 2011

  2. Slide 2: Three Businesses. One Focus.

    NYSE: ADS | 1Q2011 2 The largest and most comprehensive provider of transaction-based marketing and loyalty solutions. These solutions are delivered through three businesses: Three Businesses. One Focus. Designs and executes ROI-based marketing programs that deliver measurable results Designs, deliv

  3. Slide 3: The Alliance Data End-to-End Solution

    NYSE: ADS | 1Q2011 3 Strategy/ Creative Analytics and Insights Distribution Data and Database Results and Measurement The Alliance Data End-to-End Solution Three Platforms, One Model LoyaltyOne | Epsilon | Private Label Mobile Direct Mail In-store Permission- based Email Social Media On-line Call Ce

  4. Slide 4: How We Drive Measurable Results: Epsilon

    NYSE: ADS | 1Q2011 4 Strategy Analytics and Insights Distribution Data and Database Results and Measurement How We Drive Measurable Results: Epsilon Using their NFL sponsorship Identify goals that are 1:1 with each customer 1) Personalized messaging and offers on the “Game Time” website 2) Direct ma

  5. Slide 5: 2011 Guidance

    NYSE: ADS | 1Q2011 5 Revenue (billions) $2.5 $2.8 12% $≥ 3.0 ~ 8% Adjusted EBITDA (millions) $717 $823 15% $≥ 900 ~ 10% Income from continuing ops per share $ 2.54 $3.51 38% $≥ 4.66 ~ 33% Core EPS $4.64 $5.86 26% $≥ 6.75 ~ 15% Summary Adjusted 2009 1 Actual 2010 % Increase Guidance 2011 % Increase 2

  6. Slide 6: 2011 Free Cash Flow Projection

    NYSE: ADS | 1Q2011 6 Adjusted EBITDA $900 LoyaltyOne adjustment 50 $950 Private Label funding costs $(200) Core interest expense/capital expenditures/cash taxes/regulatory capital $(350) Free cash flow $400 Free cash flow per share $7.22 2011 Free Cash Flow Projection (in millions, except per share)

  7. Slide 7: Strong Growth and Consistency Regardless of Macro Environment

    NYSE: ADS | 1Q2011 7 Strong Growth and Consistency Regardless of Macro Environment The Business Model: Units Cycle Differently Macro $3.88 The Great Recession *Excludes infrequently occurring items Moderate Macro Recovery 2012 2008 2009 2010 2007 2011 Good Liquidity Crisis Massive Layoffs Weakened C

  8. Slide 8: Safe Harbor Statement and Forward-Looking Statements

    NYSE: ADS | 1Q2011 8 Safe Harbor Statement and Forward-Looking Statements This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may use words

  9. Slide 9: Financial Measures

    NYSE: ADS | 1Q2011 9 Financial Measures In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, such as constant currency financial measures, adjusted EBITDA, adjusted EBITDA margin

  10. Slide 10: Appendix

    NYSE: ADS | 1Q2011 10 Appendix

  11. Slide 11: Adjusted 2009 Reconciliation

    NYSE: ADS | 1Q2011 11 Adjusted 2009 (MM, except per share) Loan Loss Securitization Divested Bankruptcy Bargain Foreign Tax Reserve As Reported Expense Funding Costs Revenue LoyaltyOne $ $ Epsilon Private Label 1,256 Corp - - (27) - - - - - 1,964 $ $ $ (27) $ - $ - $ - $ - $ 2,485 $ Adjusted EBITDA

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