Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Non-Deal Roadshow (November 2009)
13 slides from Bread Financial's roadshow presentation, Nov 4, 2009
Slide 1: Alliance Data Fourth Quarter 2009
Alliance Data NYSE: ADS Fourth Quarter 2009 Exhibit 99.1
Slide 2: Alliance Data: A Unique Business Model
Q4 2009 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 mar
Slide 3: LoyaltyOne
Q4 2009 ADS Roadshow 3 LoyaltyOne +5-7% Q2’09 Q3’09 Q4’09e -4% -2% +5% -5% +3% Q1’09 2009 Miles Issued Year Over Year Growth Canada – Air Miles International Expansion Brazil – Dotz New Coalition
Slide 4: Epsilon: Core Marketing Database Digital
Q4 2009 ADS Roadshow 4 Core Marketing Database Digital Epsilon Double-digit Growth in Core Business (Marketing, Database, Digital) Data Business Soft Due to Weak Catalog Volumes Total Business Year to Date: Flat Year to Date Record Signings Twice Normal Pace Q4: Bounce Back to Growth Data (Primarily
Slide 5: Private Label Services & Credit
Q4 2009 ADS Roadshow 5 Private Label Services & Credit Credit Losses: 2007 2008 Q1 ’09 Q2 ’09 Q3 ’09 Q4 ’09e Avg. Unemployment Rate 4.7% 6.1% 8.1% 9.3% 9.6% 10.0% Total Credit Losses 5.8% 7.3% 8.8% 9.8% 9.4% 9.5% Spread (110bps) (120bps) (70bps) (50bps) +20bps +50bps Q1’09 Q2 ‘09 Q3’09 +3% -3% FY 20
Slide 6: Finishing 2009
Q4 2009 ADS Roadshow 6 Finishing 2009
Slide 7: 2010
Q4 2009 ADS Roadshow 7 2010
Slide 8: Building 2010
Q4 2009 ADS Roadshow 8 Building 2010 Revenue EBITDA Cash EPS $483MM $25MM $508MM $2.0BN $141MM $10MM $151MM $604MM $1.40 <0.18> 0.11 $1.33 $5.32 2009 Clean Jump-off Rate 2009 Quarterly Jump-Off Rate Annualized Jump-off Rate Q3 ’09 Actual Go Forward (Charming) One Timers (Tax Credit)
Slide 9: 2010 Outlook
Q4 2009 ADS Roadshow 9 2009 Clean Jump-off (incl. Charming) 2010 Guidance Revenues $2.0 BN $2.15 BN EBITDA $604MM $650MM CASH EPS $5.32/sh $6.00/sh 2010 Outlook
Slide 10: 2010 Outlook by segment
Q4 2009 ADS Roadshow 10 Epsilon: Private Label: Loyalty: Signings in Database/Digital Running 2x Normal 8% Topline, 10% EBITDA Growth Core Credit Sales & Portfolio Growth Double Digit + Charming Funding & Loss Rates Stable Double-digit Financial Growth + Charming Exceptional Year Guidance Includes (
Slide 11: Strong Year Across All Businesses
Q4 2009 ADS Roadshow 11 Strong Year Across All Businesses Tempered By: ($20MM) One-Time Expense (Card Act) ($15-20MM) Expenses For Brazil / Int’l Coalitions Soft EBITDA Growth at Loyalty (Timing) Not Assumed In Guidance: Strong Macro Turn Long-Term “Fully Normalized” Incremental Epsilon: Private Lab
Slide 12: Alliance Data's Safe Harbor Statement/Forward-Looking Statements
Q4 2009 ADS Roadshow 12 Alliance Data’s Safe Harbor Statement/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 stat
Slide 13: Financial Measures
Q4 2009 ADS Roadshow 13 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 adjusted EBITDA, operating EBITDA and cash earnings per share. The Company
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