Bread Financial Holdings, Inc. · NYSE:BFH
Bread Financial — Alliance Data Systems — Investor Presentation (November 2010)
10 slides from Bread Financial's investor presentation, Nov 9, 2010
Slide 1: Alliance Data Q4 2010
Exhibit 99.1 Alliance Data NYSE: ADS Q4 2010 ©2010 ADS Alliance Data Systems, Inc. Confidential and Proprietary
Slide 2: A Unique Business Model.
NYSE: ADS | Q4 2010 2 A Unique Business Model. Alliance Data is the largest and most comprehensive provider of transaction-based marketing and loyalty solutions. Comprehensive suite of products that target the $190 billion direct and digital marketing channel: - Multi-channel marketing strategy - Pe
Slide 3: Three Businesses. One Focus.
NYSE: ADS | Q4 2010 3 Three Businesses. One Focus. The largest and most comprehensive provider of transaction-based marketing and loyalty solutions. These solutions are delivered through 3 businesses: Private Label Designs, delivers and Designs and executes Drives sales for our manages a suite of RO
Slide 4: 2010: A Final Look – Top Questions
NYSE: ADS | Q4 2010 4 2010: A Final Look – Top Questions 1. Epsilon: • Q3 reported topline growth 29%; organic 19% 2. Epsilon: • Visa - Top 5 Epsilon client; typical margin; large future growth opportunity 3. LoyaltyOne: • Miles issued soft (2 clients); anniversary Q1 2011; 5% growth 2011 4. Loyalty
Slide 5: 2011 Guidance
NYSE: ADS | Q4 2010 5 2011 Guidance ($MM, except per share data) 2010 2011 % Guidance Guidance Change Revenue $2,800 $3,000 8% Core EPS $5.70 $6.75 18% EPS $3.48 $4.66 34% (Assumes Flat Share Count) ©2010 ADS Alliance Data Systems, Inc. Confidential and Proprietary
Slide 6: Free Cash Flow (MM, except per share)
NYSE: ADS | Q4 2010 6 Free Cash Flow (MM, except per share) 2011 Adjusted EBITDA $ 900 LoyaltyOne adjustment 50 $ 950 Private Label funding costs (200) Core interest expense/capital expenditures/ cash taxes/regulatory capital (350) Free cash flow $ 400 Free cash flow per share $ 7.15 ©2010 ADS Allia
Slide 7: Optimism for 2011 Outweighs the Risks
NYSE: ADS | Q4 2010 7 Optimism for 2011 Outweighs the Risks (+) (-) LoyaltyOne: New sponsors/renewals Issuance growth Brazil Epsilon: Database/Digital Abacus/Data Private Label: Yield Canceled/bankrupt client burn-off Credit losses New client ramp-up timing Funding costs Pipeline ADS: Liquidity Debt
Slide 8: The Business Model: Units Cycle Differently
NYSE: ADS | Q4 2010 8 The Business Model: Units Cycle Differently Strong Growth and Consistency Regardless of Macro 2007 2008 2009 2010 2011 2012 Macro Good The Great Recession The Great Macro “Muddle Through” Liquidity Crisis No Double-dip, But Only 2 -3% GDP Massive Layoffs Slow Employment Recover
Slide 9: Alliance Data's Safe Harbor Statement and Forward-Looking Statements
NYSE: ADS | Q4 2010 9 Alliance Data’s Safe Harbor Statement and Forward-Looking Statements This release 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 stateme
Slide 10: Financial Measures
NYSE: ADS | Q4 2010 10 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 constant currency financial measures, adjusted EBITDA, adjusted EBITDA marg
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