Slide 1: Inspiring Loyalty
/\IMI/A\ INSPIRING LOYALTY
Slide 2: Q3 2014 Highlights
Q3 2014 HIGHLIGHTS November 12, 2014
Slide 3: 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 4: Rupert Duchesne, Group Chief Executive
RUPERT DUCHESNE GROUP CHIEF EXECUTIVE
Slide 5: Overall Q3 2014 Highlights
OVERALL Q3 2014 HIGHLIGHTS • Strong performance in the quarter boosted by Canadian region reflects continued momentum with Financial Card partners and the refreshed Aeroplan program • Underlying momentum in EMEA slowed in coalition programs, however continued progress and growth in analytics and ins
Slide 6: David Adams, Executive Vice-President and CFO
DAVID ADAMS EXECUTIVE VICE-PRESIDENT AND CFO
Slide 7: Aimia Performance: Q3 and YTD 2014
AIMIA PERFORMANCE: Q3 AND YTD 2014 Q3 2014 Gross Adjusted Free Cash (1) Billings EBITDA Flow $633.2M $63.9M $56.3M (2) +9.8% 10.1% margin -17.8% YTD 2014 Gross Adjusted Free Cash (1) Billings EBITDA Flow $1,998.5M $254.2M $269.9M (2) +17.0% 12.7% margin +82.7% (1) Free cash flow before common and pr
Slide 8: Q3 2014 Gross Billings Growth by Region
Q3 2014 GROSS BILLINGS GROWTH BY REGION ($ MILLIONS) $47.5 $14.0 ($4.6) $633.2(2) $576.7 EMEA US & APAC Canada Consolidated: +9.8% growth; +5.8% in c.c.(1) Canada: +14.8%; EMEA: +8.3%; (2.7%) in c.c.(1); US & APAC: (5.3%); (10.4%) in c.c.(1) 2013 Reported 2014 Reported (1) Constant Currency (c.c.) c
Slide 9: Q3 2014 Gross Billings Growth by Activity
Q3 2014 GROSS BILLINGS GROWTH BY ACTIVITY ($ MILLIONS) $47.1 $6.2 $3.2 $633.2(2) $576.7 EMEA Loyalty Proprietary Units Loyalty & Other Canada Loyalty Units Consolidated Loyalty Units: +12.7% growth; +8.9% in c.c.(1) Canada Loyalty Units: +17.5% growth; EMEA Loyalty Units: +4.1% growth; (6.6%) in c.c
Slide 10: Aeroplan Accumulation & Redemption
AEROPLAN ACCUMULATION & REDEMPTION ACCUMULATION PATTERN REDEMPTION PATTERN 19.8% 17.9% 15.4% 11.0% 14.8% 9.6% 8.2% 10.4% 8.7% 2.9% 0.5% 6.9% -2.3% 2.1% 1.5% -8.9% Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Accumulation with Accumulation without Redemption Redemption at 2013 promotio
Slide 11: Q3 2014 Consolidated AEBITDA
Q3 2014 CONSOLIDATED AEBITDA ($ MILLIONS) ($14.3) $85.7 ($9.1) $3.6 $63.9 Canada ($1.8) $0.3 ($0.5) EMEA US & Club Premier Corporate Stock APAC (PLM) based distribution compensation 2013 2014 Reported Reported 11
Slide 12: Drivers of Free Cash Flow
DRIVERS OF FREE CASH FLOW* ($ MILLIONS) $269.9 $147.7 321.4 Including $68.5 one-offs $56.3 of $185.2 180.2 million(1) 80.7 68.1 ($12.2) ($11.8) ($32.5) ($51.5) Q3 2013 Q3 2014 YTD 2013 YTD 2014 Cash flow from Operations Capital Expenditures * Free Cash Flow before Dividends Paid (Common and Preferre
Slide 13: 2014 Guidance
2014 GUIDANCE* Guidance 2014 Target 2013 (updated on August 13, 2014)(1) (updated on November 12, 2014) Gross Billings $2,366.4 million Between 7% and 9% growth No Change (constant currency)(2) Adjusted EBITDA $350.5 million(3) Adjusted EBITDA margin of No Change approximately 12%(2) Free Cash Flow
Slide 14: 2015 Outlook by Region
2015 * CANADA • Subject to interchange impact, financial card portfolio expected to grow mid-to-high single digit • Air Canada Gross Billings expected to be flat as accumulation grid changes offset increased capacity • Adjusted EBITDA margins continue to be under pressure due to redemption mix • Pro
Slide 15: Thank You
AIMIA INSPIRING LOYALTY
Slide 16: Appendix
APPENDIX
Slide 17: Financial Services Momentum YTD 2014
FINANCIAL SERVICES MOMENTUM YTD 2014 • Active co-branded credit • Higher spend per card cards base broadly stable among tenured cardholders • Net new cards acquired taking AMEX base up by almost 40% YoY Aeroplan Spend Per Card Active Card Base Financial Sector Gross Billings* YTD 2014 +21.3% $ Price
Slide 18: Better Flight Rewards: Value and Certainty
BETTER FLIGHT REWARDS: VALUE AND CERTAINTY Members are embracing the certainty and value offered by the program > We issued 1.6 million flight rewards in the full year of 2013, more than any other loyalty program in Canada, and continue to provide unrivalled value in business class > Members continu
Slide 19: Attractive Dividend Record
ATTRACTIVE DIVIDEND RECORD Quarterly Dividends Per Common Share(1) $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 $0.170 $0.180 $0.08 $0.150 $0.160 $0.06 $0.125 $0.04 $0.02 $0.00 2010 2011 2012 2013 2014 (1) Quarterly dividends paid in June of each year. 19
Slide 20: YTD 2014 Consolidated Gross Billings Growth
YTD 2014 CONSOLIDATED GROSS BILLINGS GROWTH ($ MILLIONS) $63.8 $13.2 $1,998.5(2) $113.4 $100.0 US & $1,708.4 EMEA APAC Canada(3) TD Contribution (Canada) Consolidated: +17.0% growth; 12.1% in c.c.(1) Canada: +22.4%; EMEA: +12.7%; -1.2% in c.c.(1) US & APAC: +5.2%; 0.0% in c.c.(1) Consolidated +60.1%
Slide 21: YTD 2014 Consolidated AEBITDA
YTD 2014 CONSOLIDATED AEBITDA ($ MILLIONS) $100.0 ($80.1) ($24.0) $269.2 ($11.1) Canada $2.1 ($7.1) $0.8 $4.4 $254.2 TD VAT Contribution EMEA(1) US & Club Stock Impact Corporate (Canada) APAC Premier based (EMEA) (PLM) compensation distribution 2013 2014 Reported Reported (1) Excludes the VAT impact
Slide 22: Q3 Adjusted EBITDA to Free Cash Flow Bridge
Q3 ADJUSTED EBITDA TO FREE CASH FLOW* BRIDGE ($ MILLIONS) $59.0 $2.3 ($22.7)(1) ($14.7) ($11.8) ($19.7) $63.9 $56.3 Non-cash items Adjusted EBITDA Change in FRC Stock based Cash Taxes Net Cash Interest Capital Working capital Free Cash Flow compensation expenditures and other Q3 2013: $85.7 $47.0 $5
Slide 23: YTD Adjusted EBITDA to Free Cash Flow Bridge
YTD ADJUSTED EBITDA TO FREE CASH FLOW* BRIDGE ($ MILLIONS) $50.7(1) ($31.7) ($51.5) $22.5 $145.0 $9.2 ($128.5) $0.0 $269.9 $254.2 Non-cash items Adjusted Change in Stock based VAT impact Harmonized Cash Taxes Net Cash Capital Working Free Cash EBITDA FRC compensation sales tax on Interest expenditur
Slide 24: Q3 2014 Financial Highlights – Consolidated
Q3 2014 FINANCIAL HIGHLIGHTS – CONSOLIDATED Three months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported Reported Gross Billings 633.2 576.7 9.8% Gross Billings from the sale of Loyalty Units 472.4 419.1 12.7% Revenue from Loyalty Units 382.4 343.7 11.3%
Slide 25: YTD 2014 Financial Highlights – Consolidated
YTD 2014 FINANCIAL HIGHLIGHTS – CONSOLIDATED Nine months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported Breakage VAT Adjusted Reported Adjusted Gross Billings(1) 1,998.5 1,708.4 1,708.4 17.0% 17.0% Gross Billings from the sale of Loyalty Units(1) 1,512.2
Slide 26: Canada Performance
CANADA PERFORMANCE Q3 2014 Gross Billings Q3 2014 Highlights • Gross Billings up 14.8% over last year to $368.5 14% million driven by higher Gross Billings from sale of Loyalty Units. Other Gross Billings were relatively flat compared to last year. Canada • Gross Billings from Loyalty Units up 17.5%
Slide 27: Q3 2014 Financial Highlights – Canada
Q3 2014 FINANCIAL HIGHLIGHTS – CANADA Three months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported Reported Gross Billings 368.5 321.0 14.8% Gross Billings from the sale of Loyalty Units 316.4 269.3 17.5% Revenue from Loyalty Units 262.5 235.8 11.3% Reven
Slide 28: Q3 2014 Financial Highlights – Canada
Q3 2014 FINANCIAL HIGHLIGHTS – CANADA Three months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance Reported Reported % Gross Billings Aeroplan 327.6 281.1 16.5% Proprietary Loyalty 58.7 57.4 2.3% Intercompany eliminations (17.8) (17.5) n.m. 368.5 321.0 14.8% Total revenue Ae
Slide 29: YTD 2014 Financial Highlights – Canada
YTD 2014 FINANCIAL HIGHLIGHTS – CANADA Nine months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported Breakage Adjusted Reported Adjusted Gross Billings(1) 1,166.4 953.0 953.0 22.4% 22.4% Gross Billings from the sale of Loyalty Units(1) 1,017.6 796.4 796.4 2
Slide 30: YTD 2014 Financial Highlights – Canada
YTD 2014 FINANCIAL HIGHLIGHTS – CANADA Nine months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance Reported Reported % Gross Billings Aeroplan(2) 1,050.3 832.3 26.2% Proprietary Loyalty 169.6 179.2 -5.4% Intercompany eliminations (53.5) (58.5) n.m. 1,166.4 953.0 22.4% Total
Slide 31: EMEA Performance
EMEA PERFORMANCE Q3 2014 Gross Billings Q3 2014 Highlights 15% • Gross Billings up 8.3% to $183.1 million driven by favorable currency impact and growth in analytics and insights and in Proprietary Loyalty services. 14% EMEA • Adjusted EBITDA declined to $11.1 million in the $183.1M quarter, mainly
Slide 32: Q3 2014 Financial Highlights – EMEA
Q3 2014 FINANCIAL HIGHLIGHTS – EMEA Three months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported Reported Gross Billings 183.1 169.1 8.3% Gross Billings from the sale of Loyalty Units 156.0 149.8 4.1% Revenue from Loyalty Units 119.9 107.9 11.1% Revenue f
Slide 33: YTD 2014 Financial Highlights – EMEA
YTD 2014 FINANCIAL HIGHLIGHTS – EMEA Nine months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported VAT Adjusted Reported Adjusted Gross Billings 567.9 504.1 504.1 12.7% 12.7% Gross Billings from the sale of Loyalty Units 494.6 450.3 450.3 9.8% 9.8% Revenue
Slide 34: US & APAC Performance
US & APAC PERFORMANCE Q3 2014 Gross Billings Q3 2014 Highlights • Gross Billings down 5.3% to $82.0 million due to lower reward fulfillment volume in the US. US & • Adjusted EBITDA declined to $(4.2) million in the quarter primarily due to lower Gross Billings and APAC higher operating expenses. $82
Slide 35: Q3 2014 Financial Highlights – US & APAC
Q3 2014 FINANCIAL HIGHLIGHTS – US & APAC Three months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported Reported Gross Billings 82.0 86.6 -5.3% Revenue from proprietary loyalty services 82.8 85.0 -2.6% Intercompany revenue 0.3 - n.m. Total revenue 83.1 85.0
Slide 36: YTD 2014 Financial Highlights – US & APAC
YTD 2014 FINANCIAL HIGHLIGHTS – US & APAC Nine months ended September 30, (in millions of Canadian dollars) 2014 2013 Variance % Reported Reported Reported Gross Billings 264.9 251.7 5.2% Revenue from proprietary loyalty services 268.1 253.3 5.8% Intercompany revenue 0.5 0.2 n.m. Total revenue 268.6
Slide 37: Gross Billings from Sale of Loyalty Units by Major Partner
GROSS BILLINGS FROM SALE OF LOYALTY UNITS BY MAJOR PARTNER Other Partner A Other 23.2% Partner A 20.8% 15.1% 33.6% Partner B Q3 2013 Air Q3 2014 17.9% $419.1M Canada $472.4M Air 12.7% Canada 13.8% Partner D Partner D Partner B 12.7% Partner C 10.1% 19.3% 20.8% 37
Slide 38: Gross Billings from Sale of Loyalty Units by Major Partner
GROSS BILLINGS FROM SALE OF LOYALTY UNITS BY MAJOR PARTNER Other Partner A Other Partner A 22.3% 14.6% 24.6% 32.8% Partner B YTD 2013 Air YTD 2014 18.9% $1,246.7M Canada $1,412.2M* Air Canada 12.8% 14.2% Partner D Partner B Partner D Partner C 18.3% 12.3% 10.1% 19.1% *Excludes the $100.0 million upf
Slide 39: Balance Sheet at September 30, 2014
BALANCE SHEET AT SEPTEMBER 30, 2014 AVAILABLE CASH DEBT Annual September Interest September $ millions 30, 2014 $ millions Rate Maturing 30, 2014 Cash and cash equivalents 615.2 Revolving Facility(1) Apr. 23, 2018 - Restricted cash 25.8 Senior Secured Notes 3 6.95% Jan. 26, 2017 200.0 Short-term inv
Slide 40: Foreign Exchange Rates
FOREIGN EXCHANGE RATES Q3 2014 Q3 2013 % Change Average Average Period Average Average Period Average Average Period Quarter YTD End Quarter YTD End Quarter YTD End £ to $ 1.8171 1.8252 1.8117 1.6097 1.5820 1.6618 12.9% 15.4% 9.0% AED to $ 0.2961 0.2976 0.3037 0.2828 0.2786 0.2803 4.7% 6.8% 8.3% USD