Slide 1: Inspiring Loyalty
/\IMI/A\ INSPIRING LOYALTY
Slide 2: Q1 2015 Highlights
Q1 2015 HIGHLIGHTS May 15, 2015
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements are included in this presentation. These forward-looking statements are typically identified by the use of terms such as “outlook”, “guidance”, “target”, “forecast”, “assumption” and other similar expressions or future or conditional terms such a
Slide 4: Rupert Duchesne, Group Chief Executive
RUPERT DUCHESNE GROUP CHIEF EXECUTIVE
Slide 5: Q1 2015 Update
Q1 2015 UPDATE • Q1 Highlights • Progress against our global growth strategy • Aeroplan Transformation • Nectar - new accumulation structure focus on bonusing • Global IT service agreement with HP • Capital allocation and Returns to Shareholders 5
Slide 6: Q1 2015 Highlights
Q1 2015 HIGHLIGHTS Adjusted Adjusted EBITDA Positive Free EBITDA margin (2) Cash Flow (1) ~60% YoY +8.8% Good start to the year sets us up well for the balance of the year (1) Excluding the $100.0 million upfront TD contribution received in the first quarter of 2014. (2) Free cash flow before common
Slide 7: Aeroplan Transformation
AEROPLAN TRANSFORMATION Continue to evolve Aeroplan against a strategic plan for customer-centric growth through 3 initiatives: 1. Launch of Distinction in 2014: • Membership in Distinction up 25% YoY • Distinction members frequent 2.5x more partners than non-Distinction members 2. Support member co
Slide 8: Nectar Progress
NECTAR PROGRESS Nectar UK delivered robust results despite continued weakness in the grocery sector • Sainsbury's continues to use Nectar points as a tool in a highly competitive market • Sainsbury's increase in bonusing activity before the changes made to the points structure on April 11 is an enco
Slide 9: Partnering with a Global IT Leader with HP
PARTNERING WITH A GLOBAL IT LEADER WITH HP • Leverage industry best practices • Benefit from HP's investment in digital technologies, data security • Reduce our cost of innovation and risk • Ability to flexibly scale up or down anywhere in the world, as needed • Aimia able to focus on core business
Slide 10: Progress Against Strategy in Q1
PROGRESS AGAINST STRATEGY IN Q1 • Aeroplan transformation stabilizing Strengthen our current position • Nectar - grocery sector strength • Air Miles Middle East rejuvenated Codify and replicate • Expanded with Smart Button wins globally successful models globally • Partnership with Air New Zealand B
Slide 11: Capital Allocation Considerations
CAPITAL ALLOCATION CONSIDERATIONS Have expanded through partnerships, small investments, acquisitions and investments. SUPPORTING OUR GLOBAL STRATEGY: Codify and replicate successful models globally: Partnership with Club Premier leverages our expertise gained from running Aeroplan. Break away from
Slide 12: Dividends and Share Buybacks
DIVIDENDS AND SHARE BUYBACKS QUARTERLY DIVIDENDS PER COMMON SHARE* SHARE BUYBACKS (3) & PAYOUT RATIO • Renewed normal course issuer bid for 55% 60%(2) 60% 2015/16 0.24 46% (1) 46% 50% 0.22 45% • Repurchased ~$333M 38% 38% of common shares 0.20 0.19 40% between 2010 to 2013 0.18 pursuant to NCIB 0.18
Slide 13: Returns to Shareholders
RETURNS TO SHAREHOLDERS FREE CASH FLOW* RETURN OF CAPITAL Generated Paid Repurchased ~$1.7 billion ~$0.9 billion in ~$0.5 billion between dividends between common shares 2008 and Q1 2015 2008 and Q1 2015 under NCIB since 2010 to (~53% of FCF) May 15, 2015 >80% of cumulative Free Cash Flow returned t
Slide 14: David Adams, Executive Vice-President and CFO
DAVID ADAMS EXECUTIVE VICE-PRESIDENT AND CFO
Slide 15: Steady Progress in Q1 2015
STEADY PROGRESS IN Q1 2015 Free Cash Adjusted (2) Gross Billings Flow EBITDA $595.2M $5.2M (1) $52.1M (1) (3.6%) (1) +$45M +60% (1) Excluding the $100.0 million upfront TD contribution received in the first quarter of 2014. (2) Free cash flow before common and preferred dividends paid. 15
Slide 16: Canada Performance
CANADA PERFORMANCE Q1 2015 Gross Billings Purchase Spend Active Volume Members 13% TD + + + CIBC - + - Canada AMEX - + - $327.6M Rewards Issued Total rewards issued: +2.3% 87% Air rewards issued: +2.1 Aeroplan accumulation & redemptions Loyalty Units - Aeroplan Miles accumulated: (10%) Miles redeeme
Slide 17: Aeroplan Transformation Trends
AEROPLAN TRANSFORMATION TRENDS YIELD CARD SPEND REWARDS MIX Improvement in yield in the Higher among both new and Unit cost nominally up: quarter primarily due to: conveyed/retained base: • Significantly fewer Welcome • We've captured the high- • Reward Mix Bonus miles issued quality cardholders • F
Slide 18: EMEA Performance
EMEA PERFORMANCE Q1 2015 Gross Billings Q1 2015 Highlights 13% • Gross Billings from the sale of Loyalty Units • Nectar Italia – anchor grocer exit Mar 1st 13% • Nectar – energy lower; grocery increased EMEA • Air Miles Middle East – improved $185.1M accumulation/new contract terms 74% • Adjusted EB
Slide 19: US & APAC Performance
US & APAC PERFORMANCE Q1 2015 Gross Billings Q1 2015 Highlights • US reward fulfillment volumes decline US & • Gross Billing impact from accounting change APAC • Customer loyalty momentum-US and APAC • Smart Button sale in India $82.7M • Adjusted EBITDA: ($3.4M) 100% • Improved gross margins • Reduc
Slide 20: Free Cash Flow
FREE CASH FLOW* ($ IN MILLIONS) $60.5 $60.5 82.1 (1) $5.2 $100.0 $5.2 25.7 ($21.6) ($20.5) ($39.5) Q1 2014 Q1 2015 Q1 2014 Q1 2015 Non-recurring Items Free Cash Flow Cashflow from Operations Capex * Free Cash Flow before Dividends Paid (Common and Preferred). (1) Non-recurring items related to the $
Slide 21: Balance Sheet at March 31, 2015
BALANCE SHEET AT MARCH 31, 2015 DEBT Interest March CASH & INVESTMENTS $ millions Rate Maturing 31, 2015 March $ millions 31, 2015 Revolving Facility(1) Apr. 23, 2019 - Cash and cash equivalents 514 Senior Secured Notes 3 6.95% Jan. 26, 2017 200.0 Restricted cash 27 Senior Secured Notes 5 4.35% Jan.
Slide 22: 2015 Guidance
2015 GUIDANCE* ($ in millions) 2014 Reported 2014 Normalized(1) 2015 Guidance Gross Billings $2,686.6 $2,586.6 Between $2,560 to $2,610 Adjusted EBITDA $316.4 $216.4 Adjusted EBITDA margin and margin 11.8% 8.4% approximately 9% Free Cash Flow before $287.0 $94.3 Between $220 to $240 Dividends Paid C
Slide 23: Thank You
AIMIA INSPIRING LOYALTY
Slide 24: Appendix
APPENDIX
Slide 25: Q1 2015 Consolidated Gross Billings Growth
Q1 2015 CONSOLIDATED GROSS BILLINGS GROWTH ($ IN MILLIONS) $717.2 ($100.0) ($5.1) ($1.9) ($15.0) Canada EMEA US & APAC $595.2 TD Contribution (Canada) Consolidated: +17.0% growth; 12.1% in c.c.(1) Canada: +22.4%; EMEA: +12.7%; -1.2% in c.c.(1) US & APAC: +5.2%; 0.0% in c.c.(1) Consolidated +60.1% gr
Slide 26: Q1 2015 Gross Billings Growth by Activity
Q1 2015 GROSS BILLINGS GROWTH BY ACTIVITY ($ IN MILLIONS) $717.2 ($100.0) $0.2 ($3.7) ($18.5) $595.2 TD Canada Loyalty EMEA Loyalty Contribution Units Proprietary Loyalty Units (Canada) & Other 2014 Reported 2015 Reported 26
Slide 27: Q1 2015 Consolidated AEBITDA Growth
Q1 2015 CONSOLIDATED AEBITDA GROWTH ($ IN MILLIONS) $132.6 ($100.0) $17.1 $2.6 ($1.3) $4.1 ($0.6) $52.1 ($2.4) Stock Canada US & APAC Corporate EMEA based Impact of compensation TD promotional Contribution miles on new financial cards acquired on change in FRC 2014 2015 Reported Reported Canada 27
Slide 28: Q1 2015 Financial Highlights – Canada
Q1 2015 FINANCIAL HIGHLIGHTS – CANADA Three months ended March 31, (in millions of Canadian dollars) 2015 2014 Reported Reported % Gross Billings Aeroplan(2) 295.8 395.4 -25.1% Proprietary Loyalty 53.3 55.3 -3.6% Intercompany eliminations (21.5) (18.0) -19.4% 327.6 432.7 -24.3% Total revenue Aeropla
Slide 29: Aeroplan Revenue
AEROPLAN REVENUE Q1 2015 Q1 2014 ($ in millions) Miles Revenue 271.4 272.6 Breakage Revenue 33.4 33.3 Other Revenue 11.0 10.9 Total Revenue 315.8 316.8 29
Slide 30: Gross Billings from Sale of Loyalty Units by Major Partner
GROSS BILLINGS FROM SALE OF LOYALTY UNITS BY MAJOR PARTNER Other CIBC Other CIBC 19.9% 14.5% 23.7% 14.4% Sainsbury’s 19.3% Air Q1 2014 Canada Q1 2015 Air Canada $448.7M* 14.4% $445.2M 13.3% 21.4% Sainsbury’s TD AMEX AMEX 12.2% 17.1% 11.5% TD 18.3% * Excludes the $100.0 upfront contribution from TD r
Slide 31: Foreign Exchange Rates
FOREIGN EXCHANGE RATES Q1 2015 Q1 2014 % Change Average Average Period Average Average Period Average Average Period quarter YTD end rate quarter YTD end rate quarter YTD end rate £ to $ 1.8764 1.8764 1.8753 1.8234 1.8234 1.8397 2.9% 2.9% 1.9% AED to $ 0.3371 0.3371 0.3441 0.2999 0.2999 0.3010 12.4%