Slide 1: Inspiring Loyalty
/\IMI/A INSPIRING LOYALTY
Slide 2: Q1 2016 Highlights
Q1 2016 HIGHLIGHTS May 12, 2016
Slide 3: Forward-Looking and Cautionary Statements
FORWARD-LOOKING AND CAUTIONARY 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 condition
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Aimia uses the following non-GAAP financial measures which it believes provides investors and analysts with additional information to better understand results as well as assess its potential. GAAP means generally accepted accounting principles in Canada and represents In
Slide 5: Rupert Duchesne, Group Chief Executive
RUPERT DUCHESNE GROUP CHIEF EXECUTIVE
Slide 6: Q1 2016 Gross Billings and Operational Highlights
Q1 2016 GROSS BILLINGS AND OPERATIONAL HIGHLIGHTS (in millions of Canadian dollars) Q1 operational highlight Americas Coalitions Stability in financial cards $351.3 at Aeroplan 61% of total Gross Billings International Aimia Coalitions Gross Billings* $573.0 $166.8 New ISS win with Aeon 29% of total
Slide 7: Q1 2016 Financial Highlights
Q1 2016 FINANCIAL HIGHLIGHTS Q1 2016 Q1 2015 Gross $573.0 million $595.2 million Billings (3.7%) or (6.2%) in c.c. (1) Adjusted $50.6 million(2) $52.1 million EBITDA 8.8% margin 8.8% margin Free cash $(12.0) million(3) $(15.2) million(3) flow(3) Capex $19.5 million $20.5 million (1) Constant Currenc
Slide 8: Q1 2016 Consolidated Gross Billings
Q1 2016 CONSOLIDATED GROSS BILLINGS* (in millions of Canadian dollars) $595.2 ($10.6) ($13.5) $573.0 $1.5 Americas Coalitions International Global Coalitions Loyalty Solutions Lost contracts Nectar Italia Continued and lower reward wind down and transition in fulfillment activity lower Nectar UK rew
Slide 9: Aeroplan: Increasing Consumer Comprehension
AEROPLAN: INCREASING CONSUMER COMPREHENSION 9
Slide 10: Americas Coalitions Financial Highlights
AMERICAS COALITIONS FINANCIAL HIGHLIGHTS Three Months Ended March 31, (in millions of Canadian dollars) 2016 2015 Gross Billings from the Adjusted 284.2 284.8 sale of Loyalty Units EBITDA margin Gross Billings from broadly stable 67.1 77.1 Loyalty Services and Other on last year Total Gross Billings
Slide 11: Aeroplan Financial Cards Key Metrics
AEROPLAN FINANCIAL CARDS KEY METRICS Purchase Growth in credit card purchase volume Volume Spend Per Card Modest growth in average card spend Aeroplan Financial Active Card Base Strong new card acquisitions included an increased Sector mix of higher value cards and we continue to see Gross Billings
Slide 12: Improving the Customer Redemption Experience
IMPROVING THE CUSTOMER REDEMPTION EXPERIENCE New mobile app Cash-free redemptions 12
Slide 13: Aeroplan Accumulation & Redemption Pattern
AEROPLAN ACCUMULATION & REDEMPTION PATTERN Miles accumulated y/y% 17.9% 15.4% 14.8% 7.4% 8.7% 10.5% 2.7% 3.6% -0.2% -0.1% -0.4% -2.9% -5.0% -5.6% -3.2% -10.0% -10.5% -9.7% Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Miles accumulated Miles accumulated excluding all promotional miles Miles
Slide 14: International Coalitions Financial Highlights
INTERNATIONAL COALITIONS FINANCIAL HIGHLIGHTS Three Months Ended March 31, (in millions of Canadian dollars) 2016 2015 Expected Gross Billings from the declines at 141.0 160.4 sale of Loyalty Units Nectar Italia, Gross Billings from Sainsbury’s, 25.8 19.9 Loyalty Services and Other and British Gas T
Slide 15: Sainsbury's Points Issuance
SAINSBURY’S POINTS ISSUANCE 12 month total issuance broadly in line with expectations and reflects seasonality Q1 2016 bonus points issuance 80% higher than Q1 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Base points issued Bonus points issued 15
Slide 16: Global Loyalty Solutions Financial Highlights
GLOBAL LOYALTY SOLUTIONS FINANCIAL HIGHLIGHTS Three Months Ended March 31, Continue to cycle (in millions of Canadian dollars) 2016 2015 contract wind down and Total Gross Billings 55.1 53.6 ramping down of rewards fulfillment Adjusted EBITDA -2.8 1.6 Adjusted EBITDA margin -5.1% 3.0% New costs to s
Slide 17: Progress on Operating Cost Reductions
PROGRESS ON OPERATING COST REDUCTIONS (in millions of Canadian dollars) • Operating costs were stable on a constant currency basis and included: Operating expenses(1) • $4 million in transition costs associated with transitioning to (2) $161.7 our HP Enterprise outsourcing agreement (2) (3) $155.3 $
Slide 18: Capital Expenditures: Areas of Focus in Q1 2016
CAPITAL EXPENDITURES: AREAS OF FOCUS IN Q1 2016 Global product development and enterprise-related Investments for future shared services growth at Aeroplan including Corporate 1:1 personalization 22% capabilities, program Americas engagement and security Coalitions Ongoing investment 44% through pla
Slide 19: Balance Sheet
BALANCE SHEET DEBT Interest March CASH & INVESTMENTS $ millions Rate Maturing 31, 2016 March $ millions 31, 2016 Revolving Facility(1) Apr. 23, 2020 - Cash and cash equivalents 382 Senior Secured Notes 3 6.95% Jan. 26, 2017 200.0 Restricted cash 21 Senior Secured Notes 5 4.35% Jan. 22, 2018 200.0 Sh
Slide 20: Track Record of Dividend Increases
TRACK RECORD OF DIVIDEND INCREASES QUARTERLY DIVIDENDS PER COMMON SHARE* 0.20 0.19 0.18 0.17 0.16 0.15 0.125 0.125 0.125 2008 2009 2010 2011 2012 2013 2014 2015 2016 * Quarterly dividend rate as of June 30 of each year. 20
Slide 21: 2016 Guidance
2016 GUIDANCE* (in millions of FY 2015 FY 2015 FY 2016 Canadian dollars) Reported Normalized(1) Guidance(2) (as previously disclosed on February 24, 2016) Gross Billings $2,469.0 $2,469.0 Stable Adjusted EBITDA $263.4 $233.4 Above 9% and margin 10.7% 9.5% Free Cash Flow before Between $202.3 $206.8
Slide 22: Aimia: Inspiring Loyalty
AIMIA INSPIRING LOYALTY
Slide 23: Thank You
AIMIA INSPIRING LOYALTY
Slide 24: Q1 2016 Gross Billings at a Glance
Q1 2016 GROSS BILLINGS AT A GLANCE (in millions of Canadian dollars) Aeroplan Gross Billings from the sale of Loyalty Units Gross Billings from the sale of Loyalty Units(1) Americas 29% TD 22% CIBC Coalitions $284.2 $351.3 21% Air Canada 17% AMEX 61% of total Gross Billings from Loyalty 11% Other Gr
Slide 25: Gross Billings from Sale of Loyalty Units by Major Partner
GROSS BILLINGS FROM SALE OF LOYALTY UNITS BY MAJOR PARTNER Other CIBC Other CIBC 17.6% 14.7% 19.9% 14.5% Sainsbury’s Air Sainsbury’s Canada Air Canada Q1 2015 21.4% 14.2% Q1 2016 21.9% 14.4% $445.2M $425.2M AMEX AMEX TD 11.5% 12.0% TD 18.3% 19.6% 25
Slide 26: Aeroplan Revenue
AEROPLAN REVENUE (in millions of Canadian Q1 2016 Q1 2015 dollars) Miles Revenue 266.6 271.4 Breakage Revenue 32.9 33.4 Other Revenue 10.0 11.0 Total Revenue 309.5 315.8 26
Slide 27: Q1 2016 Consolidated AEBITDA
Q1 2016 CONSOLIDATED AEBITDA (in millions of Canadian dollars) AE AE Margin ($4.1) Margin $1.9 8.8% ($1.5) $1.9 8.5% ($4.4) $4.5 Americas $0.2 Severance Corporate Coalitions International Expense(1) Coalitions Club Global Stock Loyalty based Premier Solutions comp distribution $52.1 $48.7 $50.6 2015
Slide 28: Stable Adjusted EBITDA Margin
STABLE ADJUSTED EBITDA MARGIN FY 2015: 9.5%(2)(3) FY 2014: 8.1%(1) 12% $80 $70 10% 11.0%(3) (in millions of Canadian dollars) 10.1% 10.2%(2) $60 8% 9.1% 8.7% 8.8%(4) Adjusted EBITDA 8.8% $50 Adjusted EBITDA 8.5%(3) Margin % 6% $40 5.3%(1) $30 4% $20 2% $10 $32.6(1) $58.7 $63.9 $60.0 $52.1 $61.8(2) $
Slide 29: Q1 2016 Adjusted EBITDA to Free Cash Flow Bridge
Q1 2016 ADJUSTED EBITDA TO FREE CASH FLOW* BRIDGE (in millions of Canadian dollars) $48.7 ($3.7) $2.1 ($3.2) ($10.3) ($19.5) Non-cash items ($33.0) ($18.9) Adjusted Change in Stock-based Cash Net cash Capex Working capital Free Cash EBITDA FRC compensation taxes interest paid and other Flow Q1 2015:
Slide 30: Free Cash Flow in Line with Seasonal Patterns
FREE CASH FLOW IN LINE WITH SEASONAL PATTERNS Normalized Free Cash Flow before Dividends Paid (5) (in millions of Canadian dollars) $120.4 $88.7 (4) (3) $77.0 $69.7 $68.6 (7) $59.2 $59.0 $62.7 (6) $9.6 (8) $(9.5) $(12.0) (2) $(15.2) (1) $(62.0) First Quarter Second Quarter Third Quarter Fourth Quart
Slide 31: Q1 2016 Financial Highlights – Americas Coalitions
Q1 2016 FINANCIAL HIGHLIGHTS – AMERICAS COALITIONS Three Months Ended March 31, (in millions of Canadian dollars) 2016 2015 Reported Reported % Gross Billings Aeroplan 294.1 295.8 -0.6% Loyalty Services & Other 79.6 87.6 -9.1% Intercompany eliminations -22.4 -21.5 n.m. 351.3 361.9 -2.9% Total revenu
Slide 32: Foreign Exchange Rates
FOREIGN EXCHANGE RATES Q1 2016 Q1 2015 % Change Average Average Period Average Average Period Average Average Period quarter YTD end rate quarter YTD end rate quarter YTD end rate £ to $ 1.9691 1.9691 1.8744 1.8764 1.8764 1.8753 4.9% 4.9% -0.1% AED to $ 0.3740 0.3740 0.3545 0.3371 0.3371 0.3441 11.0
Slide 33: New Divisional Disclosure Comparable
NEW DIVISIONAL DISCLOSURE COMPARABLE Year ended December 31, 2015 (in millions of Canadian dollars) Global Americas International Operating Segments Loyalty Corporate Eliminations Consolidated Coalitions Coalitions Solutions Gross Billings from the sale of Loyalty Units 1,201.3 631.4 - - - 1,832.7 G