Aimia Inc. · TSX:AIM
Aimia — Shareholder Meeting (May 2014)
26 slides from Aimia's shareholder meeting presentation, May 14, 2014
Slide 1: Aimia – Inspiring Loyalty
/\IMIA INSPIRING LOYALTY
Slide 2: Annual General Meeting May 14, 2014
ANNUAL GENERAL MEETING May 14, 2014
Slide 3: Robert Brown, Chairman
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Slide 4: Board of Directors
BOARD OF DIRECTORS Alan Rupert Joanne John Hon. Douglas Beth Chairman David Roman Rossy Duchesne Ferstman Forzani Michael Port Horowitz Robert Laidley Doroniuk Fortier Brown © 2014 Aimia. All rights reserved 4
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS • A global leader in loyalty management offering a full-suite of loyalty program services • Unique business model with strong cash flow generation in 2013 • Attractive opportunities to leverage Aimia’s expertise in a growing market with exposure to travel and consumer spend and
Slide 6: Total Return: Last Three Years
TOTAL RETURN: LAST 3 YEARS Last Three Years Ending March 31, 2014 70% 60% TSX Cons. Disc.: 57% 50% Aimia: 50% 40% 30% 20% 10% TSX: 11% 0% -10% -20% -30% Mar-'11 Mar-'12 Mar-'13 Mar-'14 Dec-'11 Dec-'12 Dec-'13 Jun-'11 Sep-'11 Jun-'12 Sep-'12 Jun-'13 Sep-'13 Source: Bloomberg © 2014 Aimia. All rights
Slide 7: Today's Agenda
TODAY’S AGENDA 1. Formal Part of the Meeting 2. Financial Highlights 3. Strategic Overview 4. Q&A 5. Closing Remarks © 2014 Aimia. All rights reserved 7
Slide 8: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements are included in the following presentation. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “wo
Slide 9: David Adams, EVP and CFO
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Slide 10: Unmatched Global Scale and Scope
UNMATCHED GLOBAL SCALE AND SCOPE F2013 Consolidated Gross Billings $2.366 billion 100% 55 | 45 Canada Rest of the World © 2014 Aimia. All rights reserved 10
Slide 11: Strong Financial Performance in 2013
STRONG FINANCIAL PERFORMANCE IN 2013 (3) (1) (2) $268.1M +4.5% $350.5M (4)(2) $1.49 PER SHARE GROSS ADJUSTED FREE BILLINGS EBITDA CASH FLOW (1) In constant currency. (2) Adjusted EBITDA was adjusted for the unfavourable impact of the CIBC payment of $150.0 million and the card migration provision of
Slide 12: FY 2013 Adjusted EBITDA
FY 2013 ADJUSTED EBITDA (IN MILLION CANADIAN DOLLARS) $20.8 $(9.0) $24.0 $(1.7) $(6.9) $(49.9) $(11.2) $403.1 PLM Canada VAT Stock $(18.7) EMEA U.S & APAC $350.5(1) based compensation Breakage impact Corporate 2012 2013 Reported Adjusted (1) Adjusted EBITDA was adjusted for the CIBC payment of $150.
Slide 13: Generating Strong Free Cash Flow
GENERATING STRONG FREE CASH FLOW (1) (IN MILLION CANADIAN DOLLARS) $299.5(3) $268.1(4) $221.2 $197.6(2) F2010 F2011 F2012 F2013 (1) Free Cash Flow before common and preferred dividends paid. (2) As reported of $197.6 million net of funding of the prepaid card liability of $23.9 million in the US bus
Slide 14: Q1 2014 and Full Year Guidance
Q1 2014 AND FULL YEAR GUIDANCE Q1 2014 Highlights 2014 Guidance(1) • Gross Billings of $717.2 million(2) up • Gross Billings growth of 7% to 9% 27.8% YoY on reported basis or up (constant currency)(2) 22.6% YoY (constant currency) • Adjusted EBITDA margin of • Adjusted EBITDA of $132.6 million or ap
Slide 15: Rupert Duchesne, Group Chief Executive
RUPERT DUCHESNE GROUP CHIEF EXECUTIVE
Slide 16: Returning Capital to Our Shareholders
RETURNING CAPITAL TO OUR SHAREHOLDERS RETURNING CAPITAL $0.180 $0.170 TO OUR $0.160 $0.150 SHAREHOLDERS $0.125 VALUE CREATION 2010 2011 2012 2013 2014 DEPLOYING CAPITAL TO FUND GROWTH 2014: Fourth Consecutive Increase in Quarterly Common Share Dividend © 2014 Aimia. All rights reserved 16
Slide 17: Delivering Returns Through Our Social Purpose
DELIVERING RETURNS THROUGH OUR SOCIAL PURPOSE THREE FOCUS AREAS SUPPORT AIMIA’S SOCIAL PURPOSE © 2014 Aimia. All rights reserved 17
Slide 18: Our Strategy Remains Focused on Leading the Market
OUR STRATEGY REMAINS FOCUSED ON LEADING THE MARKET Strategic Aspiration Strategic Pillars Strengthen our current “Be the recognized 1 position global leader in loyalty management. We believe in making Codify and replicate 2 successful models globally business personal by inspiring brands to build un
Slide 19: Strengthening Our Current Position
STRENGTHENING OUR CURRENT POSITION Program Coalition Region Active Members Demographic Type (2013) Canada 4.8M Premium UK 19.0M Mass Market UAE, Qatar, Premium 0.6M Bahrain (expat) Nectar Italia Italy 6.4M Mass Market Mexico 3.6M* Premium * Refers to total members enrolled. © 2014 Aimia. All rights
Slide 20: Replicating EMEA Expertise in Retail Coalition
REPLICATING EMEA EXPERTISE IN RETAIL COALITION Coalition Loyalty FY 2013 Gross Billings A group of complementary companies, working EMEA $704.1M together to jointly reward their combined customers, 11% with a neutral third party coordinating the common currency, data flow and customer experience. Pr
Slide 21: Taking Our Expertise into New Markets
TAKING OUR EXPERTISE INTO NEW MARKETS Deploying capital to Deploying capital to expand RETURNING build capabilities our presence in Coalition CAPITAL TO OUR SHAREHOLDERS VALUE CREATION DEPLOYING CAPITAL TO FUND GROWTH © 2014 Aimia. All rights reserved 21
Slide 22: Strengthening Our Position in Canada in 2013
STRENGTHENING OUR POSITION IN CANADA IN 2013 Relaunch of Aeroplan Program with two leading Canadian issuers • The $38 billion Aeroplan financial card portfolio, 1st Largest bank by TPV** 4.8m Premium Members * which represented around 12% of total purchase volume in the Canadian credit card market a
Slide 23: TD Launch Marks Strong Start to the Year
TD LAUNCH MARKS STRONG START TO THE YEAR • We are participating with TD in a highly successful credit card launch in Canadian credit card history with TD enrolling around 275,000 new TD Aeroplan cardholders in only a few months. • In the first three months of 2014, the number of active co-branded cr
Slide 24: Taking Aeroplan to the Next Level
“best 0d X @ TAKING AEROPLAN TO THE NEXT LEVEL DISTINCTION, REWARD VALUE «MILEAGE REDEMPTION POLICY LEARN MORE >
Slide 25: Q&A
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Slide 26: Thank You
AIMIA INSPIRING LOYALTY