Slide 1: Fourth Quarter and Annual Results
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Alliance Data NYSE: ADS Fourth Quarter and Annual Results January 31, 2013 Exhibit 99.1
Slide 2: Agenda
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Agenda Speakers: Ed Heffernan President and CEO Charles Horn EVP and CFO Fourth Quarter and 2012 Consolidated Results Segment Results Liquidity 2012 Wrap-up 2013 Outlook 2013 Updated Guidance
Slide 3: Fourth Quarter and 2012 Consolidated Results
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Fourth Quarter and 2012 Consolidated Results (MM, except per share)
Slide 4: LoyaltyOne
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * LoyaltyOne (MM) Adjusted EBITDA increased 20 percent for the fourth quarter, excluding the benefit of favorable FX rates. Redemption activity steadily moderated throughout 2012; burn rates of 102
Slide 5: Epsilon
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Epsilon (MM) Organic revenue and adj. EBITDA (excluding restructuring charges) growth was 3 percent and 10 percent for Q4. Decline in database/email revenue in Q4 is largely a timing issue. Backl
Slide 6: Private Label Services and Credit
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Private Label Services and Credit (MM) Accounting for acquired portfolios suppressed gross yields by approximately 20bps and lowered the principal charge-off rate by approximately 40bps for Q4.
Slide 7: Liquidity
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Liquidity Liquidity Corporate: $1.8 billion in available liquidity at December 31, 2012 Debt levels remain moderate; leverage ratio of 2.3 x at December 31, 2012 Banks: $2.4 billion of available
Slide 8: 2012 Wrap-up
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * 2012 Wrap-up Tremendous 2012 Revenues $3.6 billion +15% Adj. EBITDA $1.2 billion +18% Core EPS $8.71 +14% Economic EPS $10.06 +21% (excludes phantom shares) 9 percent organic revenue growth (3x r
Slide 9: 2013 Outlook
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * 2013 Outlook Increasing 2013 guidance Drags from higher share count + high-yield offering more than offset by accretive HMI (digital agency) acquisition + Private Label over-performance Raising g
Slide 10: 2013 Outlook: Segment Results and What's New
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Segment Results LoyaltyOne: 5% top; 8% bottom (organic) Epsilon: 7% top; 9% bottom (organic) Private Label: 10% top; 10% bottom 2013 Outlook What’s New HMI (digital agency) acquisition High-yield
Slide 11: 2013 Updated Guidance
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * 2013 2013 Initial Guidance Updated Guidance Increase Average ADS share price $143 $155 $12 Revenue $3,900 $4,200 +$300 Adjusted EBITDA $1,300 $1,365 +$65 Core Earnings $610 $633 +$23 Diluted shar
Slide 12: Q & A
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Q & A
Slide 13: Safe Harbor Statement and Forward-Looking Statements
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * Safe Harbor Statement and Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sect
Slide 14: Financial Measures
©2013 ADS Alliance Data Systems, Inc. Confidential and Proprietary Earnings Release | January 31, 2013 * 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, s