Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Investor Presentation (November 2005)
14 slides from Bread Financial's investor presentation, Nov 30, 2005
Slide 1: Alliance Data Q4 2005
Alliance Data NYSE: ADS Q4 2005
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation may be 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 statements may use words such as "anticipate,"
Slide 3: Alliance Data Systems - Financial Profile
Alliance Data Systems - Financial Profile Growth Company Double-digit Organic Growth Baseline Targets 12% Topline 15% EBITDA 18% Cash EPS Strong Visibility & Predictability Free Cash Flow > Reported Earnings Free Cash Flow > Reported Earnings Free Cash Flow > Reported Earnings Free Cash Flow > Repor
Slide 4: 2000 - 2006 Revenue, EBITDA and Cash EPS
2000 - 2006 (in $MM, except per share) '00 '01 '02 '03 '04 '05E '06E '00 '01 '02 '03 '04 '05E '06E '00 '01 '02 '03 '04 '05E '06E $670 $770 $865 $1,047 $1,257 $1500 $97 $123 $144 $211 $279 $347 $2.00 $1.54 $1.03 $0.59 $0.49 $0.40 Revenue EBITDA Cash EPS 17% CAGR 27% CAGR 34% CAGR $1680 $400 $2.36
Slide 5: Operating Leverage
Operating Leverage 16.0% 13.8% 14.5% 16.7% 20.1% '99 '00 '01 '02 '03 '04 '05E 06E Averaging over 100 bps per Year 22.2% 23.1% 23.8% EBITDA Margin Goal: 50bps Expansion per Year
Slide 6: Increased Guidance
Increased Guidance Revenues $1.5 Billion ^19% EBITDA $347 Million ^24% Cash EPS ^ $2.00 ^30% 2005 Guidance 2005 Guidance
Slide 7: 2006 Outlook: What If the Consumer Slows?
2006 Outlook "What If the Consumer Slows?" Over Half Company's Revenues - No Impact AIR MILES Reward Program Epsilon Utility Merchant Bankcard (Petroleum) Less Than Half - Risk Mitigated Private Label New Ramp-ups Cushion Core Funding and Credit Quality Stable
Slide 8: 2006 Guidance
2006 Guidance Revenues $1.68 Billion ^12% EBITDA $400 Million ^15% Cash EPS $2.36 ^18% Free Cash/Share $2.56 Free Cash/Share $2.56 Free Cash/Share $2.56 Free Cash/Share $2.56 Free Cash/Share $2.56
Slide 9: Marketing Services (1) Canada: Loyalty AIR MILES Program
Marketing Services (1) Canada: Loyalty AIR MILES(r) Program Solid Mid-teens Growth Coalition Loyalty Program Based Upon Everyday Spend - - Not an Airline Program 2/3 of Canada Active Clients: Shell Oil, Safeway, American Express, Bank of Montreal Three Sources of Future Growth: New Sponsor Categorie
Slide 10: Marketing Services (cont.) (2) US: Epsilon
Marketing Services (cont.) (2) US: Epsilon Solid Mid-teens Growth Top 25 Clients: 10 Year Average Tenure Customer Management and Loyalty Solutions: Customized Marketing Campaigns Design and Management of Loyalty Databases Analytical Services Back-end Processing Clients: Hilton Hotels, Principal Fina
Slide 11: Utility Services
Utility Services Serving Both Regulated & De-regulated Services: Core Processing Customer Care / Call Center Database and Marketing Services Income Stream: Earnings Based on Monthly # Statements Clients: Duke, Entergy, Puget Sound, AEP, Centrica, Georgia Natural Gas, Orlando, City of Austin Market O
Slide 12: Private Label Services
Private Label Services Attractive Market - 1998-03: Double-digit Annual Growth for Outsourcers Services: Private Label Processing Customer Care / Call Center Credit: 700 Score, No Sub-Prime Targeting Database Marketing Services Income Streams: Split Between Processing and Credit Clients: Victoria's
Slide 13: Private Label Market
Private Label Market Adding New Clients Expanding Into New Retail Segments Expanding Our Product Offering Consumer Commercial Co-Brand Gift Card Product Expansion Solid Foothold Market Leader Position Emerging Other Outdoor Recreation Hard Goods Jewelry Online/ Catalog Home Furnishings Apparel Consu
Slide 14: Services with Pricing Power
Services with Pricing Power Long-term Relationships 10 - 12 New Clients per Year 10 - 12 New Clients per Year 10 - 12 New Clients per Year 10 - 12 New Clients per Year Our Keys for Success
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