Aimia Inc. · TSX:AIM
Aimia — CIBC Retail & Consumer Conference 2012
23 slides from Aimia's conference presentation, Mar 28, 2012
Slide 1: Aimia - Inspiring Loyalty
/\IMIA INSPIRING LOYALTY
Slide 2: CIBC Retail & Consumer Conference, March 28, 2012
CIBC Retail & Consumer Conference March 28, 2012
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements are included in the following presentations. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “w
Slide 4: David Adams, EVP & CFO
DAVID ADAMS EVP & CFO
Slide 5: A Multinational Company Inspiring Loyalty Through a Full-Suite Global Offering
A MULTINATIONAL COMPANY INSPIRING LOYALTY THROUGH A FULL-SUITE GLOBAL OFFERING Coalition Loyalty Programs Loyalty Data Analytics Proprietary Loyalty Services 5
Slide 6: Delivering Significant Measurable Value to Our Commercial Partners Worldwide
DELIVERING SIGNIFICANT MEASURABLE VALUE TO OUR COMMERCIAL PARTNERS WORLDWIDE FINANCIAL TRAVEL & TECH & CPG & SERVICES HOSPITALITY AUTO TELCO RETAIL OTHERS
Slide 7: Unmatched Global Scale and Scope
UNMATCHED GLOBAL SCALE AND SCOPE Canada UK Italy USA Japan Lebanon Bahrain Jordan Qatar Mexico Egypt UAE Hong Kong Oman India Singapore Brazil Malaysia Indonesia Consolidated Gross Billings Chile F2011 Australia $2.23B New Zealand 58% THE LARGEST PURE PLAY 42% Canada LOYALTY COMPANY IN Rest of World
Slide 8: With Significant Opportunity for Expansion
. . . WITH SIGNIFICANT OPPORTUNITY FOR EXPANSION Canada UK Italy Japan USA Bahrain Lebanon Jordan Qatar Mexico Egypt UAE Hong Kong Oman India Malaysia Singapore Brazil Indonesia Consolidated Gross Billings Chile (Projected) Australia New Zealand 50% Area’s for potential global expansion Canada Rest
Slide 9: Delivering Healthy Gross Billings Growth
DELIVERING HEALTHY GROSS BILLINGS GROWTH F2005 F2011 ($ millions) ($ millions) 2,187.8 2,233.2 1,501.0 1,447.3 952.2 851.9 754.8 +196%growth 2005 2006 2007 2008 2009 2010 2011 9
Slide 10: Growing Consolidated Adjusted EBITDA
GROWING CONSOLIDATED ADJUSTED EBITDA F2005 F2011 ($ millions) ($ millions) 342.2 316.2 281.6 285.5 251.7 216.4 168.1 +13 per cent CAGR 2005 2006 2007 2008 2009 2010 2011 (1) Constant Currency excludes the translation effect of foreign operations on the consolidated results. For more information on C
Slide 11: A Significant Generator of Free Cash Flow
A SIGNIFICANT GENERATOR OF FREE CASH FLOW Free Cash Flow (1) Free Cash Flow / Common ($ millions) Share (2) $1.08 $1.04 (3) $221.5 $221.2 $197.6 $0.42 $81.5 (3) $36.3 $0.06 FY 2011 FY 2010 Q4 2011 Q4 2010 FY 2011 FY 2010 Q4 2011 Q4 2010 Dividends(4) $ 113.5 $ 107.6 $ 28.9 $ 26.2 Free Cash Flow(5) $
Slide 12: Strong Balance Sheet and Investment Grade Rating
DEMONSTRATING RELIABILITY WITH A STRONG BALANCE SHEET AND INVESTMENT GRADE RATING Balance Sheet Dec 31, 2011 Dec 31, 2010 Completed multiple bond issues with declining yields Cash and cash equivalents $202.1 $538.6 Restricted cash $15.1 $12.6 Short-term investments $58.4 -- Long-term debt with Long-
Slide 13: Increasing Shareholder Return with an Attractive Common Share Dividend
INCREASING SHAREHOLDER RETURN WITH AN ATTRACTIVE COMMON SHARE DIVIDEND Dividends Paid ($ millions) Current annual dividend is $0.60 per common share – $113 increased by 20% $108 in 2011 $100 Dividend to be reviewed annually Payout ratio has historically been approximately 50% 2009 2010 2011 Common P
Slide 14: Increasing Shareholder Return Through a Common Share Repurchase Program
INCREASING SHAREHOLDER RETURN THROUGH A COMMON SHARE REPURCHASE PROGRAM Aimia Common Shares Outstanding 26.2 million common 200M shares repurchased since May 2010 173.8M Average repurchase price: $11.77 Reduced common shares outstanding by 13% since May 2010 14
Slide 15: A Strong Core and More: Globalization and Expansion Strategy
A STRONG CORE AND MORE: CREATING LONG-TERM VALUE THROUGH GLOBALIZATION AND EXPANSION STRATEGY • Grow core coalition & proprietary loyalty businesses – Top line growth – Value-added digital products and services – Operating leverage and margin expansion • Expand operations – Greenfield coalition prog
Slide 16: Nectar Italia: Greenfield Coalition Loyalty Programs
NECTAR ITALIA: GREENFIELD COALITION LOYALTY PROGRAMS PROVIDE OUTSTANDING USE OF CAPITAL 16
Slide 17: Club Premier: Replicating Aeroplan Canada in Mexico
CLUB PREMIER: AN OPPORTUNITY TO REPLICATE THE SUCCESSFUL AEROPLAN CANADA BUSINESS IN MEXICO • Aimia acquired 28.6% of Club Premier, Aeromexico’s frequent flyer program for cash consideration of US$35 million – currently Aimia exercises joint control with Aeromexico through governance and significant
Slide 18: Data Is at the Heart of Everything We Do
DATA IS AT THE HEART OF EVERYTHING THAT WE DO • and we are well positioned with the advance of mobile and digital in global loyalty . . . Digital Mobile Social 18
Slide 19: Intelligent Shopper Solutions: World Leading Experts in Loyalty Data Analytics
INTELLIGENT SHOPPER SOLUTIONS: WORLD LEADING EXPERTS IN LOYALTY DATA ANALYTICS # 1 drug retailer # 2 supermarket #2 supermarket #2 Grocery retailer in world in Switzerland in Australia in Canada 19
Slide 20: Cardlytics: Unlocking Potential Value of Non-Currency Loyalty
CARDLYTICS: UNLOCKING THE SIGNIFICANT POTENTIAL VALUE OF NON-CURRENCY LOYALTY Merchant Consumers Banks • Significantly better ROI • Trusted advertising channel • Valuable customer rewards from precise targeting • Superior consumer at no cost • Unparalleled visibility experience • Revenue share • Pro
Slide 21: We Are Defining the Future of Global Loyalty
WE ARE DEFINING THE FUTURE OF GLOBAL LOYALTY • Aimia is a global leader in loyalty management • New brand supports our vision of inspiring loyalty • Aimia is best positioned to compete in increasingly OUR PRIORITIES intense competitive environment by offering the ARE FOCUSED ON global full-suite of
Slide 22: A Strong Investment Thesis and Compelling Risk-Adjusted Return
A STRONG INVESTMENT THESIS AND COMPELLING RISK-ADJUSTED RETURN • Barriers to Entry / Member, Partner and Client Stickiness Attractive Business Model • Full-Suite Offering / Proprietary Systems / Unparalleled Expertise • Strong Brands / Solid Market Share/ Operating Leverage Strong Free • Low Capital
Slide 23: Thank You
THANK YOU For further information, please contact: jon.reider@aimia.com trish.moran@aimia.com