Slide 1: Company Overview Investor Presentation Fourth Quarter 2016
Company OverviewNYSE: ADS Investor PresentationFourth Quarter 2016 Exhibit 99.1
Slide 2: Who Are We and What Do We Do? Historical Results Common Investor Questions
Who Are We and What Do We Do?Historical ResultsCommon Investor Questions Alliance Data 2
Slide 3: Who are we and what do we do? Build Customer Loyalty Platforms
Build Customer Loyalty PlatformsUse Unique Data: SKU (requires client permission)Link SKU with ConsumerAdd Demographic/Psychographic Data 3 Who are we and what do we do?
Slide 4: Example: Mary Smith purchase at Ann Taylor Loft
On September 14th, Mary Smith spent $60 at Ann Taylor Loft, Store #128 She bought a blue dress, size 10 (SKU)Dress was 20 percent offMary is upper middle incomeTends to buy complete wardrobesLooks for value (i.e. sales)Mom who works > busy Example: 4 Who are we and what do we do?
Slide 5: Use Data/Insights to Create Specialized Offers
Use Data/Insights to Create Specialized Offers ⌵On September 15thMobile offer to MaryShoes & belt would work nicely with dressClick & buy now > 20 percent off sale⌵ We use data to gain insights which drive sales & loyalty for our clients 5 Who are we and what do we do? “Rinse and repeat” millions of
Slide 6: Different Platforms/Same Model
AIRMILES®Coalition loyalty (Canada) 6. Different Platforms/Same Model 6 Card Services Loyalty program with credit component Epsilon®Single client programs BrandLoyalty® Grocer loyalty specialist (Int’l) Who are we and what do we do?
Slide 7: Historical Results
IPO 2001: $12 per share($MM) 2001 2016e CAGR Revenue $770 $7,200 * 16% Core EPS $0.52 $16.90 * 26% Stock Price $12 $230 22% (1,800% total) Model:Growth (3x GDP revenue growth)Double-digit core eps growth (varies between 10-20%)ADS grew through ‘Great Recession’ due to business model diversification
Slide 8: Are you a MktingTech, FinTech or Specialty Finance Company?
Are you a MktingTech, FinTech or Specialty Finance Company?Yes50 percent of revenue from purely technology/marketing and loyalty platforms50 percent card related (data, analytics, marketing, credit)Use data/tech heavily to drive 1/1 marketing programs (~ 500 people within Cards – mini Epsilon)Vast o
Slide 9: What is your Free Cash Flow?
2. What is your Free Cash Flow?FCF = adjusted EBITDA – cash taxes – cash interest – capital expenditures + non-cash items = $1.3 billionUses: $500 million to support 20 percent plus card receivables growthRemainder for share repurchases, dividends and/or M&A (established a 1% dividend for first time
Slide 10: Forward Looking Statements
Forward Looking Statements 10 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our expectations or forecasts of future events and can generally
Slide 11: Non-GAAP Financial Measures
11 In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company may present financial measures that are non-GAAP measures, such as constant currency financial measures, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA, net of funding