Aimia Inc. · TSX:AIM

Aimia — Q1 2020 Earnings Presentation

28 slides from Aimia's earnings presentation, May 13, 2020

  1. Slide 1: Q1 2020 highlights

    Q1 2020 highlights MAY 13, 2020

  2. Slide 2: Forward-looking and cautionary statements

    FORWARD-LOOKING AND CAUTIONARY STATEMENTS This presentation contains statements that constitute “forward-looking information” within the meaning of Canadian securities laws (“forward-looking statements”), which are based upon our current expectations, estimated, projections, assumptions and beliefs.

  3. Slide 3: 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

  4. Slide 4: GAAP to non-GAAP reconciliation

    GAAP TO NON-GAAP RECONCILIATION* Three Months Ended March 31, (in millions of Canadian dollars, except share and per share information) 2020 2019 Continuing operations Operating loss (5.5) (19.0) Depreciation and amortization 1.1 1.0 Operating loss excluding depreciation, amortization and impairment

  5. Slide 5: Q1 2020 income statement

    Q1 2020 INCOME STATEMENT Three Months ended March 31, (in millions of Canadian dollars) 2020 2019 Restated Revenue $ 29.6 $ 34.7 Operating expenses Compensation and benefits 15.1 25.9 Technology 10.4 17.1 Professional, advisory and service fees 4.9 4.1 Rent and office costs 0.9 2.0 Travel and employ

  6. Slide 6: Today's speakers

    TODAY’S SPEAKERS PHIL MITTLEMAN STEVE LEONARD Interim Chief Executive Officer Chief Financial Officer © 2020 Aimia. All rights reserved. 6

  7. Slide 7: Agenda

    AGENDA Strategic Financial highlights highlights © 2020 Aimia. All rights reserved. 7

  8. Slide 8: Strategic highlights

    STRATEGIC highlights PHIL MITTLEMAN

  9. Slide 9: Corporate transformation

    STRATEGIC HIGHLIGHTS CORPORATE TRANSFORMATION • New corporate strategy, overseen by new management and board of directors with long track records of creating stakeholder value, and an ownership mentality purchasing stock in the open market • Investment Committee established to manage the deployment

  10. Slide 10: New value-enhancing corporate strategy

    STRATEGIC HIGHLIGHTS NEW VALUE-ENHANCING CORPORATE STRATEGY Strategic Review Committee members Core strategy to deploy cash and tax assets on acquisitions of Free Cash Flow generating David Charles Karen Sandra Rosenkrantz (Chairman) Frischer Basian Hanington businesses in diverse industries • Strat

  11. Slide 11: Accretive acquisition of Mittleman Brothers LLC

    STRATEGIC HIGHLIGHTS ACCRETIVE ACQUISITION OF MITTLEMAN BROTHERS LLC • Accretive acquisition of Mittleman Brothers LLC, for US$5 million in cash and 4 million in Aimia common shares • Key personnel employed to deepen investment expertise and M&A capabilities: Philip Mittleman to join Aimia as CEO, C

  12. Slide 12: Kognitiv merger to form a visionary leader in loyalty

    STRATEGIC HIGHLIGHTS KOGNITIV MERGER TO FORM A VISIONARY LEADER IN LOYALTY Transaction Highlights ✓ Merger of Aimia Loyalty Solutions with Kognitiv concurrent with a cash investment of ~$35 million from Aimia Inc. and Kognitiv investors (~$21 million from Aimia and ~$14 million from Kognitiv investo

  13. Slide 13: Lean and simplified corporate structure

    STRATEGIC HIGHLIGHTS LEAN AND SIMPLIFIED CORPORATE STRUCTURE • Substantial reduction in annualized operating expense run-rate from Core holdings Aimia proforma % stake $27 million in 2019 to around $15 million(1) 100% • Significant reduction in operational complexity, with total employee 49% count s

  14. Slide 14: Aimia expands relationship with Aeromexico

    STRATEGIC HIGHLIGHTS AIMIA EXPANDS RELATIONSHIP WITH AEROMEXICO • Binding letter of intent signed with Aeromexico to negotiate certain amendments to the CPSA, including a 20-year extension to the CPSA that would result in a termination date for the contract of September 13, 2050, as well as negotiat

  15. Slide 15: Aimia acquires stakes in Clear Media Limited

    STRATEGIC HIGHLIGHTS AIMIA ACQUIRES STAKES IN CLEAR MEDIA LIMITED • Aimia invested approximately $75 million in Clear Media Limited (HK: 100), one of the largest outdoor advertising firms operating in China with market shares of more than 70% in top-tier cities like Beijing, Shanghai, and Aimia now

  16. Slide 16: Financial highlights

    FINANCIAL highlights STEVE LEONARD

  17. Slide 17: Q1 2020 financial highlights

    FINANCIAL HIGHLIGHTS Q1 2020 FINANCIAL HIGHLIGHTS* Reported figures(1) (CAD$ M) Q1 2020 Q1 2019 Revenue 29.6 34.7 Operating expenses (35.1) (53.7) Q1 2020 results Operating loss (5.5) (19.0) demonstrated Distributions from equity-accounted investments 9.5 18.9 continued operating Adjusted EBITDA(2)

  18. Slide 18: Loyalty Solutions segment performance

    FINANCIAL HIGHLIGHTS LOYALTY SOLUTIONS SEGMENT PERFORMANCE* Reported figures (CAD$ M) Q1 2020 Q1 2019 Revenue 29.6 34.7 Successful business Operating expenses (27.1) (45.6) transformation driving Operating income (loss) 2.5 (10.9) improved Adjusted EBITDA(1) 3.6 (10.0) operating performance *This pr

  19. Slide 19: Corporate and other performance

    FINANCIAL HIGHLIGHTS CORPORATE AND OTHER PERFORMANCE* Reported figures Other (CAD$ M) Q1 2020 Q1 2019 Benefits Operating expenses (8.0) (8.1) from lower headcount PLM distribution 9.5 18.9 offset by impact of Adjusted EBITDA(1) 1.5 10.9 one-time costs Q1 2020 operating expenses include: • $1.5 milli

  20. Slide 20: PLM gross billings and member base

    FINANCIAL HIGHLIGHTS PLM GROSS BILLINGS AND MEMBER BASE* Members enrolled (million) +7.9% YoY 6.6 6.7 6.8 6.3 6.5 Largest coalition Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 loyalty program in PLM Gross Billings from loyalty units Gross Billings in Mexico with (million USD) the second half of March im

  21. Slide 21: PLM Adjusted EBITDA and distributions

    FINANCIAL HIGHLIGHTS PLM ADJUSTED EBITDA AND DISTRIBUTIONS* PLM Adjusted EBITDA(1)(2) (million USD) Modest top FY 2019: $84.9 (+8.3% YoY) line growth +9.3% YoY and tight 20.4 21.3 21.5 21.7 22.3 cost control driving Adjusted Q1 Q2 Q3 Q4 Q1 EBITDA 2019 2019 2019 2019 2020 performance; Distributions p

  22. Slide 22: Q1 2020 Adjusted EBITDA to free cash flow bridge

    FINANCIAL HIGHLIGHTS Q1 2020 ADJUSTED EBITDA TO FREE CASH FLOW BRIDGE* (CAD$ M) Includes $18.7 million of part VI.1 tax paid in the quarter related to preferred dividends paid in 2019 (1) (1) Q1 0.9 (5.4) (0.3) (14.1) (20.0) 0.9 (2.0) 2019 *This presentation contains both IFRS and non-GAAP financial

  23. Slide 23: Robust balance sheet with no debt and cash-rich

    FINANCIAL HIGHLIGHTS ROBUST BALANCE SHEET WITH NO DEBT AND CASH-RICH* (CAD$ M) Includes $(22.0)M in restricted cash and $(5) million in working capital movements CASH & INVESTMENTS Mar 31, 2020 PREFERRED SHARES Dividend Shares Out. Book value at (CAD$ M) (CAD$ M) Rate (Million) Mar 31, 2020 Cash and

  24. Slide 24: Q1 Conclusion

    Q1 Conclusion PHIL MITTLEMAN

  25. Slide 25: Optimistic and exciting future for stakeholders

    KEY TAKEAWAYS OPTIMISTIC AND EXCITING FUTURE FOR STAKEHOLDERS Corporate transformation led by a new and leaner management team, overseen by a world-class Board with an ownership mentality Aimia continues to take advantageous of dislocations in the worldwide economy and the market that are providing

  26. Slide 26: Questions

    Questions . © 2018 Aimia. All rights reserved. 26

  27. Slide 27: Contact

    CONTACT Tom Tran Director, Investor Relations T +1 416 352 3728 E tom.tran@aimia.com

  28. Slide 28: . © 2018 Aimia. All rights reserved.

    . © 2018 Aimia. All rights reserved. 28

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