Aimia Inc. · TSX:AIM
Aimia — Investor Presentation (2014)
24 slides from Aimia's investor presentation, 2014
Slide 1: Transforming Aeroplan with Our Financial Partners
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT 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”, “wou
Slide 3: Vince Timpano
VINCE TIMPANO > Responsible for leading and growing the coalition, proprietary and analytics business in Canada > As President and CEO, Canada, since 2011, played pivotal role in creation of region's new financial institutional partner strategy, leading to new and innovative agreements with TD, CIBC
Slide 4: Canadian Region: Founded on Strong Aeroplan Partnerships
CANADIAN REGION: FOUNDED ON STRONG AEROPLAN PARTNERSHIPS F2013 Canada Gross Billings $1,300.1M
Slide 5: Canadian Region: Financial Services Footprint
CANADIAN REGION: FINANCIAL SERVICES FOOTPRINT ane bh? YTD 2014 Canada Gross Billings $797.9M 65%” @ Acroplan Financial 23% Services Loyalty Units Other Aeroplan Loyalty Units @ Proprietary and Other Non-Loyalty Units © Including $100.0 million payment received from TD
Slide 6: The Return on Loyalty for Canadian Financial Institutions
THE RETURN ON LOYALTY FOR CANADIAN FINANCIAL INSTITUTIONS MARKET FACTS More than 80 financial credit card offerings available to Canadians within the fee-based travel rewards category THE OPPORTUNITY FOR LOYALTY Opportunity to differentiate offering to customers via combination of financial services
Slide 7: Loyalty: Core to the Canadian Consumer Experience
LOYALTY: CORE TO THE CANADIAN CONSUMER EXPERIENCE ok TE hk 1-IN-2 2X 75% 2-IN-3 80% Canadians view rewards As many Canadians use Of loyalty cardholders have Redeemers have used Small medium business as part of everyday life points to ‘make life easier’ benefited from a loyalty a loyalty reward for a
Slide 8: Loyalty Drives Choice of Credit Cards Amongst Canadians
LOYALTY DRIVES CHOICE OF CREDIT CARDS AMONGST CANADIANS Loyalty rewards are Ist or 2nd most important feature ..and represents an estimated average of 90% of in selecting a card for almost half of Canadians... total spend across the top 10 Canadian issuers 100 10 Weighted NATIONAL i ET Average Most
Slide 9: Aeroplan's Role in Evolution of Canadian Financial Card Loyalty
AEROPLAN’S ROLE IN EVOLUTION OF CANADIAN FINANCIAL CARD LOYALTY CREATES CATEGORY PROTECTS LEADERSHIP POSITION perren ae P| Aeroplan expands financial Aeroplan pursues beyond travel Aeroplan and ces. Partner to card offering with earning opportunities launch Aerogol Amex Bank of Canada via expansion
Slide 10: Purchase volume on Canadian credit cards grew nearly 10x between 1991 and 2013
Purchase volume on Canadian credit cards grew nearly 10x between 1991 and 2013 Source: Canadian Banking Association
Slide 11: Re-Invents the Game
RE-INVENTS THE GAME /A\IMIA INSPIRING LOYALTY ANVIERICAN} — EXPRESS Aeroplan executes unprecedented new partnership deals with three leading financial institutions, bolstering leadership position
Slide 12: Aeroplan Transformation and the Role of Our Financial Services Partners
AEROPLAN TRANSFORMATION AND THE ROLE OF OUR FINANCIAL SERVICES PARTNERS Stage 1 Stage 3 Stage 4 cen Das =e FREQUENT FLYER > 2.0 PRODUCT PARTNERSHIP INNOVATIVE FREQUENT BUYER EVOLUTION MODEL PRODUCT DESIGN
Slide 13: Aeroplan Transformation: 2014 Success to Date
AEROPLAN TRANSFORMATION: 2014 SUCCESS TO DATE
Slide 14: Member Scorecard
MEMBER SCORECARD 4 Members reporting strong satisfaction with last redemption. Significant increase on satisfaction of those who redeemed for ClassicPlus in 2013 2 X INCREASE IN NPS Net promoter score has more than doubled since January launch
Slide 15: Distinction Driving Shift Towards Market Fare Air Rewards
DISTINCTION DRIVING SHIFT TOWARDS MARKET FARE AIR REWARDS d All Distinction Members Non-Tier Members (% of miles redeemed) (% of miles redeemed) 13% INCREASE IN AIR REWARDS Q2 2013 Q2 2014 Q2 2013 Q2 2014 Wi classic MP MFFR [NAR Wi classic 9 MFFR MP NAR
Slide 16: Member Success Translating into Commercial Wins
MEMBER SUCCESS TRANSLATING INTO COMMERCIAL WINS >7-8% YTD accumulation growth (excluding promotional miles) > 25% lift in active co-brand card base to 1.5 million > Overall growth of Aeroplan membership base > Strong momentum for broader coalition partners > New business development momentum VIE RIA
Slide 17: New Financial Partner Launches: YTD June 2014 Success to Date
NEW FINANCIAL PARTNER LAUNCHES: YTD JUNE 2014 SUCCESS TO DATE les $100.0 million SPEND ACTIVE PER CARD CARD BASE AEROPLAN FINANCIAL SECTOR GROSS BILLINGS YTD 2014 +19.3% G00 PRICE BEYOND PER MILE CO-BRAND CARDS payment received from TD
Slide 18: Spend per Card
SPEND PER CARD > Spend per card of tenured base continues to reflects a strong premium versus market > The portfolio of new card spend is largely consistent with historical performance
Slide 19: Active Card Base
ACTIVE CARD BASE a | > TD & CIBC: 25% lift in active co-branded credit cards to 1.5 million == > AMEX: Net new cards acquired taking AMEX U base up by almost 30% YoY
Slide 20: Price per Mile
PRICE PER MILE > Yield impact of higher contractual price agreed in 2013 partly offset by incentive miles but structured to ramp over time
Slide 21: Beyond Co-Brand Cards
BEYOND CO-BRAND CARDS > Strong momentum at AMEX with new point converters up significantly YoY > TD rolling out broader bank offers to conveyed base
Slide 22: Delivering Value to Our Partners
DELIVERING VALUE TO OUR PARTNERS MOST VALUABLE CURRENCY Motivating desired behaviors 1.7¢ Classic Classic | dDiamond (Economy) (Business) Market Fare PROPRIETARY COMMUNICATION CHANNELS Accessing members effectively DEEP DATA INSIGHTS Providing sophisticated segment targeting Loyalty Attitudes een Pa
Slide 23: Looking Forward: Our Program Transformation Will Continue to Unfold
LOOKING FORWARD — OUR PROGRAM TRANSFORMATION WILL CONTINUE TO UNFOLD IN 2015 AND BEYOND 1) Distinction program: Announcement VALUE & AVAILABILITY 6 Distinction program: Launch LAUNCHED IN 2016 : : FLEXIBILITY & JANUARY 2014 3} Removal of 7-year expiry policy SIMPLICITY 4 New MarketFare value for all
Slide 24: Aimia: Inspiring Loyalty
/\IMI/\ INSPIRING LOYALTY aimia.com © 2014 Aimia Inc. All Rights Reserved.