Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Non-Deal Roadshow (May 2009)
12 slides from Bread Financial's roadshow presentation, May 28, 2009
Slide 1: Alliance Data Second Quarter 2009
Exhibit 99.1 Alliance Data Second Quarter NYSE: ADS 2009 ©2009 ADS Alliance Data Systems, Inc.
Slide 2: 2009 Guidance (includes FX Impact)
Q2 2009 ADS Roadshow 2 2009 Guidance (includes FX Impact of ($140MM) Revenues / ($40MM) Adjusted EBITDA) Revenues: $2Billion Op. EBITDA: $700MM Adjusted EBITDA: $660MM Cash EPS: $5.15 17% (constant currency 25%) ©2009 ADS Alliance Data Systems, Inc.
Slide 3: 2009 Free Cash Flow ($MM)
Q2 2009 ADS Roadshow 3 2009 Free Cash Flow ($MM) Adjusted EBITDA $660 Loyalty Adjusted $40 Operating EBITDA $700 CAPEX, Cash Interest, Taxes ($340) Free Cash Flow $360 Per Share $6.00 (14% Yield) ©2009 ADS Alliance Data Systems, Inc.
Slide 4: Alliance Data: A Unique Business Model
Q2 2009 ADS Roadshow 4 Alliance Data: A Unique Business Model Largest and Most Comprehensive Provider of Transaction- based Marketing and Loyalty Solutions • Highly sophisticated transaction-based programs are measurable, trackable and allow for micro-segmentation of clients’ customers. • Drives hig
Slide 5: Loyalty Services - Canada
Q2 2009 ADS Roadshow 5 Loyalty Services - Canada • AIR MILES ® Reward Program is the Largest Consumer Coalition Loyalty Program in Canada • 70% of Canadian Households Active in the Program • One of Canada’s Most Recognizable Brands • Despite Name, Revenues are not Driven by Airline Industry. • Large
Slide 6: Epsilon Marketing Services
Q2 2009 ADS Roadshow 6 Epsilon Marketing Services • Most Comprehensive and Only Integrated Database Marketing Services Firm in the Industry • Marketing Strategy • Proprietary Data Services • Database Management • Analytical Services • Distribution (35BN+ Permission-based Emails Sent Annually) • Adve
Slide 7: Private Label Services
Q2 2009 ADS Roadshow 7 Private Label Services • Fully Integrated Loyalty-driven Private Label and Co-brand Programs • Transaction Processing • High-end Customer Care • Loyalty & Marketing Programs • Consumer’s Choice Driven by Loyalty and Relationship to Retailer, not a Need for Credit • 2 of 3 Serv
Slide 8: Private Label Credit
Q2 2009 ADS Roadshow 8 Private Label Credit • 11MM Active Households Each Month • 85% Female; Mid-to High-Income • Consumer Views as Loyalty Program, not an Extension of Credit • 700 Average Bureau Score; Small Average Balances ($400/acct.) • No Sub-prime Targeting (+) Sales Growth (+) Portfolio Gro
Slide 9: WSJ Article – déjà vu?
Q2 2009 ADS Roadshow 9 WSJ Article – déjà vu? • “Many Financial Firms Raising Equity, Reducing Leverage . . ADS has Continued to Leverage Up” • ADS is not a bank, no TARP, no need to raise equity • Majority of cash flow from Loyalty Canada & Epsilon • Including card processing, 2/3 of cash flow is o
Slide 10: 2003-2009e Adjusted EBITDA and Cash EPS
Q2 2009 ADS Roadshow 10 2003-2009e (in $MM, except per share) $5.15 Adjusted EBITDA Cash EPS $660 $4.42 $655 $632 $3.88 $3.14 $498 $321 $1.99 $255 $1.54 $189 $1.00 2003 2004 2005 2006 2007 2008 2009e 2003 2004 2005 2006 2007 2008 2009e ©2009 ADS Alliance Data Systems, Inc.
Slide 11: Safe Harbor Statement/Forward-Looking Statements
Q2 2009 ADS Roadshow 11 Alliance Data’s Safe Harbor Statement/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 Section 21E of the Securities Exchange Act of 1934, as amended. Such st
Slide 12: Financial Measures
Q2 2009 ADS Roadshow 12 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 adjusted EBITDA, operating EBITDA and cash earnings per share. The Compa