Bread Financial Holdings, Inc. · NYSE:BFH

Bread Financial — Alliance Data Systems — Non-Deal Roadshow (February 2010)

15 slides from Bread Financial's roadshow presentation, Feb 18, 2010

  1. Slide 1: Alliance Data Q1 2010 Roadshow

    Alliance Data NYSE: ADS Q1 2010 Exhibit 99.1

  2. Slide 2: Alliance Data: A Unique Business Model

    Q1 2010 ADS Roadshow 2 Alliance Data: A Unique Business Model • Highly sophisticated transaction-based programs are measurable, trackable and allow for micro-segmentation of clients’ customers. • Drives high, measurable ROIs for our clients and displaces traditional marketing channels–a $670 billion

  3. Slide 3: LoyaltyOne

    Q1 2010 ADS Roadshow 3 LoyaltyOne • Q4 2009: First topline increase of the year • 2010: Solid topline, strong free cash flow, soft EBITDA (timing issue only) • International expansion: Brazil +9% Q2 ‘09 Q3 ‘09 Q4 ‘09 -4% -2% +3% Q1 ‘09 Miles Issued Year over Year Growth

  4. Slide 4: Epsilon Marketing Services

    Q1 2010 ADS Roadshow 4 Revenue (2009) Adjusted EBITDA (2009) Epsilon Marketing Services ($MM) • Q4 2009: Largest Quarter in History • 2010: Double-digit topline & Adjusted EBITDA growth – 100% organic • 2010: Already announced deals with Kraft and NY&CO Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

  5. Slide 5: Private Label Credit and Services

    Q1 2010 ADS Roadshow 5 Private Label Credit and Services Credit Losses: 2007 2008 Q1 ’09 Q2 ’09 Q3 ’09 Q4 ’09 Avg. Unemployment Rate 4.7% 6.1% 8.1% 9.3% 9.6% 10.1% Total Credit Losses 5.8% 7.3% 8.9% 9.9% 9.4% 9.5%* Spread (110bps) (120bps) (80bps) (60bps) +20bps +60bps *Normalized (reported was 8.8%

  6. Slide 6: 2010: Private Label Credit & Services - Trend

    Q1 2010 ADS Roadshow 6 2010: Private Label Credit & Services - Trend Credit Losses 2007 2008 2009 2010 5.8% 7.3% Mid-9% Mid-9% Q1: 9.5 0.5 Q2: Anniversary Q3-Q4 9% 10.0% Certain charged off accounts were continuously sold; proceeds booked as recoveries; practice will now be entirely in- house; 90-da

  7. Slide 7: 2010: Private Label Credit & Services - Trend

    Q1 2010 ADS Roadshow 7 2010: Private Label Credit & Services - Trend (+) Credit Sales • Strong double-digit (+) Portfolio Growth • Strong double-digit (+) Funding Rates • Flat (+) Credit Losses • Flat (+)(+) Financials · Two year drain over · Strong double-digit topline and EBITDA growth

  8. Slide 8: 2010 Guidance

    Q1 2010 ADS Roadshow 8 2010 Guidance ($MM, except per share) 2010 2009 Change Guidance Reported Revenues $2,150 $1,964 9% Normalized Revenues $2,150 $1,929 11% Adjusted EBITDA $650 $590 10% Normalized Adjusted EBITDA $650 $573 13% Cash EPS $6.00 $5.16 16% Normalized Cash EPS $6.00 $4.64 29% *

  9. Slide 9: 2010 Free Cash Flow

    Q1 2010 ADS Roadshow 9 2010 Free Cash Flow ($MM, except per share) Adjusted EBITDA $650 Loyalty Adjusted $50 Operating EBITDA $700 CAPEX, Interest, Taxes ($335) Free Cash Flow $365 Per Share $6.55 (12% Yield)

  10. Slide 10: Most Common Questions

    Q1 2010 ADS Roadshow 10 Most Common Questions

  11. Slide 11: Most Common Questions: Bridge 2009 to 2010

    Q1 2010 ADS Roadshow 11 Most Common Questions 2. Bridge 2009 2010: Note: Assumes all Private Label term changes offset impact of new regulation / customer behavior costs Q4 2009 $1.21 (excludes infrequently occurring items) 0.15 Seasonal Q4 expense (timing only) 0.03 Full quarter of Charming (v. 2mo

  12. Slide 12: New Capital Rules and Impact of FAS 166/167

    Q1 2010 ADS Roadshow 12 Most Common Questions 3. New Capital Rules and Impact of FAS 166/167 • Three key ratios required to be “well capitalized”: - Tier 1 Capital of 6.0% - Leverage Ratio of 5.0% - Total Risk Based Capital of 10.0% • Our Banks immediately will satisfy these regulatory requirements

  13. Slide 13: Shell Oil of Canada

    Q1 2010 ADS Roadshow 13 Shell Oil of Canada LoyaltyOne Epsilon Marketing Services Private Label Services and Credit

  14. Slide 14: Safe Harbor Statement and Forward-Looking Statements

    Q1 2010 ADS Roadshow 14 Alliance Data’s Safe Harbor Statement and Forward-Looking Statements This presentation may contain 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

  15. Slide 15: Financial Measures

    Q1 2010 ADS Roadshow 15 Financial Measures In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, such as constant currency financial measures, adjusted EBITDA, operating EBITDA, c

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