Slide 1: Q2 2020 highlights
Q2 2020 highlights SEPT 15, 2020
Slide 2: Forward-looking and cautionary statements
FORWARD-LOOKING AND CAUTIONARY STATEMENTS Forward-looking statements are included in this 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
Slide 3: Non-GAAP financial measures
NON-GAAP FINANCIAL MEASURES Following the Corporation strategic update, Aimia does not present Non-GAAP financial measures for its consolidated results. However, in order to complement the analysis of the financial performance of its investments, certain Non-GAAP measures are presented. A reconcilia
Slide 4: Today's speakers
TODAY’S SPEAKERS PHIL MITTLEMAN MICHAEL LEHMANN STEVE LEONARD Chief Executive Officer President Chief Financial Officer © 2020 Aimia. All rights reserved. 4
Slide 5: Agenda
AGENDA Strategic Investment Financial highlights highlights highlights © 2020 Aimia. All rights reserved. 5
Slide 6: Strategic highlights
STRATEGIC highlights PHIL MITTLEMAN
Slide 7: Strategic progress
STRATEGIC HIGHLIGHTS STRATEGIC PROGRESS • Fully reconstituted Board with demonstrated ownership mentality purchasing New over 1 million shares since reconstitution leadership • Executive team enhanced with Michael Lehmann (President), Chris Mittleman (CIO and newly appointed Board member), and Phil
Slide 8: Strategic vision and focus
STRATEGIC HIGHLIGHTS STRATEGIC VISION AND FOCUS Strategic Vision Strategic Focus CURRENT PORTFOLIO Ongoing enhancement of existing “to build a assets and investments with an active diversified portfolio owner’s mentality to growing our of investments that investments as strategic partners can delive
Slide 9: Capital allocation priorities
STRATEGIC HIGHLIGHTS CAPITAL ALLOCATION PRIORITIES Accretive acquisitions 1 Minority or controlling stakes in cash generative businesses, public or private, on a global basis: • Seeking >15% IRR • $700 million in tax losses as a competitive differentiator • Any potential investment structured as a r
Slide 10: Investment highlights
INVESTMENT highlights MICHAEL LEHMANN
Slide 11: PLM financial metrics
INVESTMENT HIGHLIGHTS PLM FINANCIAL METRICS* (in millions) USD CAD(1) Financial Results Q2 2020 Q2 2019 Q2 2020 Q2 2019 Gross Billings 20.1 68.7 27.8 91.9 Revenue 23.4 60.1 32.5 80.4 Adjusted EBITDA(2)(3) (3.4) 21.3 (4.7) 28.5 Cash from (used in) operating activities(4) (38.3) 40.0 (53.1) 53.5 Free
Slide 12: BIG LIFE financial metrics
INVESTMENT HIGHLIGHTS BIGLIFE FINANCIAL METRICS* (in millions of Canadian dollars) Financial Results Q2 2020 Q2 2019 Gross Billings 3.0 10.8 Revenue and other income(2) 27.4 13.7 Adjusted EBITDA(1) (0.8) (3.4) Cash from (used in) operating activities 1.1 (3.2) Free Cash Flow(1) 1.0 (4.2) Cash, cash
Slide 13: Kognitiv uniquely positioned to redefine loyalty
INVESTMENT HIGHLIGHTS KOGNITIV UNIQUELY POSITIONED TO REDEFINE LOYALTY B2B technology Loyalty Capital Kognitiv/Aimia company Network LS combination rewarding loyalty by providing a fast-growing user base provides great opportunities for higher-value dividend to supporting 3,000 hotel accelerated rev
Slide 14: Clear Media an outstanding investment
INVESTMENT HIGHLIGHTS CLEAR MEDIA AN OUTSTANDING INVESTMENT $76.2M >70% Acquired at invested market share 5X EBITDA 10.85% stake in one of the in top-tier cities including with major precedent largest operators of bus Beijing, Shanghai, and transactions generally at 10x shelter advertising panels Gu
Slide 15: Mittleman acquisition complements strategy
INVESTMENT HIGHLIGHTS MITTLEMAN ACQUISITION COMPLEMENTS STRATEGY Solid Securing Immediate platform talent benefits complementing the corporate management expertise of Phil as improving our relationships strategy as an investment CEO and investment capabilities with key partners to holding company of
Slide 16: Financial highlights
FINANCIAL highlights STEVE LEONARD
Slide 17: Q2 2020 consolidated results
FINANCIAL HIGHLIGHTS Q2 2020 CONSOLIDATED RESULTS Consolidated Results (in millions of Canadian dollars) Q2 2020 Q2 2019 1H 2020 1H 2019 Income 9.2 47.1 5.2 78.2 Expenses (1.6) (10.6) (9.8) (25.1) Earnings (loss) before income taxes 7.6 36.5 (4.6) 53.1 Net earnings 14.4 43.5 4.8 1,090.6 Earnings (lo
Slide 18: Q2 2020 segment results
FINANCIAL HIGHLIGHTS Q2 2020 SEGMENT RESULTS INVESTMENTS AND HOLDINGS (in millions of Canadian dollars) Q2 2020 Q2 2019 1H 2020 1H 2019 Total Income 9.1 47.1 5.1 78.2 Expenses (1.5) (10.6) (9.7) (25.1) Earning (loss) before income taxes 7.6 36.5 (4.6) 53.1 PLM distribution 8.8 5.8 18.3 24.7 INVESTME
Slide 19: Cashflow profile of business
FINANCIAL HIGHLIGHTS CASHFLOW PROFILE OF BUSINESS Cash Inflows Cash Outflows • Distributions from PLM • Corporate expenses • Investment management fees • Preferred dividends paid • Interest income • Cash taxes Corporate costs, preferred dividend payments, and Part VI.1 tax mostly covered by normaliz
Slide 20: Cash bridge
FINANCIAL HIGHLIGHTS CASH BRIDGE (in millions of Canadian dollars) Cash movement in Q2 2020 vs. last quarter Preliminary estimate $5M to be returned per closing working capital (1) (2) (1) Includes cash and cash equivalents, restricted cash, and short and long-term investments in corporate and gover
Slide 21: Tax loss carryforwards
FINANCIAL HIGHLIGHTS TAX LOSS CARRYFORWARDS (in millions of Canadian dollars) • $700 million in tax loss carryforwards provides Aimia with a competitive advantage $400 $300 and a higher economic return on potential investments million million • $300 million operating losses in the U.S. (two-thirds)
Slide 22: Key takeaways
Key Takeaways
Slide 23: Exciting and promising future
KEY TAKEAWAYS EXCITING AND PROMISING FUTURE 2020 shaping up to be very promising with several strategic initiatives already completed, and others underway Significant progress with existing investments, and continuing to evaluate opportunistic investments Committed to creating stakeholder value as q
Slide 24: Questions
Questions 24
Slide 25: Contact
CONTACT Tom Tran Director, Investor Relations T: +1 416 352 3728 E: tom.tran@aimia.com