Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Investor Presentation (September 2010)
12 slides from Bread Financial's investor presentation, Sep 13, 2010
Slide 1: Alliance Data NYSE: ADS Q3 2010
Exhibit 99.2 Alliance Data NYSE: ADS Q3 2010 ©2010 ADS Alliance Data Systems, Inc. Confidential and Proprietary
Slide 2: Opportunity: ~$300 Billion Addressable Market
NYSE: ADS | Q3 2010 2 Opportunity: ~$300 Billion Addressable Market • Marketing spend is shifting from traditional mass marketing to data-enabled, multi-channel direct marketing • The digital channel spend directed toward transaction-based, ROI solutions: • Strong double-digit growth market • Still
Slide 3: Three Businesses. One Focus.
NYSE: ADS | Q3 2010 3 Three Businesses. One Focus. The largest and most comprehensive provider of transaction-based marketing and loyalty solutions. These solutions are delivered through 3 businesses: Private Label Designs, delivers and Designs and executes Drives sales for our manages a suite of RO
Slide 4: Key Clients
NYSE: ADS | Q3 2010 4 Key Clients Epsilon Loyalty Private One Label We work with the biggest brands in North America. ©2010 ADS Alliance Data Systems, Inc. Confidential and Proprietary
Slide 5: Strength of Business Model
NYSE: ADS | Q3 2010 5 Strength of Business Model 2007 2008 2009 2010 Great Recession Massive Layoffs and Challenging Macro: Liquidity Crisis Weakened Consumer Regulatory Confidence Environment Alliance Record Liquidity Credit Losses Mitigated Impact of Data: Card Act; Addressed Raised Peak May 2009
Slide 6: 2010 Trends
NYSE: ADS | Q3 2010 6 2010 Trends Double-digit Revenue Growth Across All 3 Businesses LoyaltyOne: Epsilon: Private Label: •4 Quarters of Positive • Accelerating from ~10% •Available Liquidity of $2.6 Issuance Growth Revenue and Adjusted Billion st • 100% Sponsor Renewal EBITDA Growth in 1 Half •Prin
Slide 7: 2010 YTD Operating Results
NYSE: ADS | Q3 2010 7 2010 YTD Operating Results ($MM, except per share data) Six Months Ended June 30, 2009 2009 2010 % Change 1 Actual Pro Forma Actual 10/09PF Revenue $937 $1,203 $1,333 11% Net Income $57 $94 64% Net Income Per Diluted $0.96 $1.67 74% Share Adjusted EBITDA $274 $343 $410 20% Core
Slide 8: 2010 Guidance
NYSE: ADS | Q3 2010 8 2010 Guidance ($MM, except per share data) 2009 2010 % Pro Forma Guidance Change Revenue Reported $2,513 +10% 1 Normalized $2,478 $2,770 +12% Adjusted EBITDA Reported $734 +9% 1 Normalized $717 $800 +12% Core Earnings Per Reported $5.16 10%+ 1 Diluted Share Normalized $4.64 $5.
Slide 9: 2011 Outlook
NYSE: ADS | Q3 2010 9 2011 Outlook LoyaltyOne: Epsilon: Private Label: Moderate Portfolio Solid Revenue Backlog of Wins and Growth and Improving Growth Continues; DMS Acquisition Credit Losses = Adj. EBITDA Drive Above Double-digit Growth in Growth Resumes Average Growth Revenue and Adj. EBITDA Bank
Slide 10: New Share Repurchase Program
NYSE: ADS | Q3 2010 10 New Share Repurchase Program New Repurchase Plan Announced Today - Expands and Extends Program to $400 Million Through 2011 • Market Perceptions of ADS are Clouded by Ongoing Macro Concerns and “Noise” Intended to Create Uncertainty • New Share Repurchase Program Takes Advanta
Slide 11: Alliance Data's Safe Harbor Statement and Forward-Looking Statements
NYSE: ADS | Q3 2010 11 Alliance Data’s Safe Harbor Statement and Forward-Looking Statements This release 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 statem
Slide 12: Financial Measures
NYSE: ADS | Q3 2010 12 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, adjusted EBITDA marg
Alliance Data Systems — Investor Presentation (September 2010) on 6ix