Slide 1: Aimia Q2 Presentation
Aimia Q2 Presentation August 13, 2024
Slide 2: Forward-looking and cautionary statements
Forward-looking and cautionary statements This presentation contains statements that constitute “forward-looking information” within the meaning of Canadian securities laws (“forward-looking statements”), which are based upon Aimia’s current expectations, estimates, projections, assumptions and beli
Slide 3: GAAP and Non-GAAP Financial Measures
GAAP and Non-GAAP Financial Measures GAAP FINANCIAL MEASURES To measure performance, the Corporation uses and presents several financial measures in accordance with GAAP, including, but not limited to, gross profit (loss), operating income (loss), Earnings (loss) before income taxes, Net earnings (l
Slide 4: Today's presenters
Today’s presenters Tom Finke Steve Leonard Executive Chairman President & CFO 4
Slide 5: Key highlights and recent developments
Key highlights and recent developments • Q2 results sustained momentum since start of year • Liquidity strengthened with $32.9M PLM earn-out • Formed Strategic Review Committee to fast-track the return of capital to shareholders • Appointed Steve Leonard President & CFO • Launched NCIB to buy up to
Slide 6: Financial & Operating Results
Financial & Operating Results
Slide 7: Consolidated financial highlights
Consolidated financial highlights $ million except EPS Q2 2024 Q1 2024 • Q2 sustained momentum set in Q1 2024 Revenue $122.4 $122.1 • Revenue driven by solid performances of core holdings Gross Profit $32.5 $34.6 Gross Profit Margin 26.6% 28.3% • Profit and profit margins impacted by OPEX $38.5 $35.
Slide 8: Bozzetto financial highlights
Bozzetto financial highlights* Revenue Adj. EBITDA** $Million +17% $Million +16% $90 $88.1 $87.4 $15.5 $16 $15.1 $85 $14 $13.0 $80 $74.9 $75.9 $75 $80.8 $79.0 $11.7 $13.1 $12 $14.0 $70.3 $10.4 $2 $5 $8.4 $7.3 $1.5 $2.0 $0 $0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Bozzetto StarCh
Slide 9: Cortland International financial highlights
Cortland International financial highlights* $Million Revenue $Million Adj. EBITDA** +21% -22% $40 $38.4 $6 $5.7 $35.0 $5 $4.6 $35 $34.0 $4.0 $4 $3.6 $30 $28.9 $29.7 $3 $2.5 $0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 $0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 • Q2 2024 improvement offset by shipping • Q2 2024 results i
Slide 10: Highlights at non-core holdings
Highlights at non-core holdings • Continued progress on restructuring and cost- • $13.3M worth of investments monetized in Q2 cutting initiatives • Subsequent to quarter end sold Enterprise • Balance of 9.6M warrants remain business unit • Slow recovery of China’s economy continues to weigh on adver
Slide 11: Consolidated cash waterfall through June 30
Consolidated cash waterfall through June 30* $Million + $14.6 $4.8 $(3.8) $(3.4) $32.9 $(10.9) $(2.6) $(2.0) $112.8 $(7.2) $(4.2) $98.2 $13.3 $(2.3) Q1 Cash Monetization PLM Other Dividends Investor Termination CAPEX Taxes paid Bozzetto Bozzetto StarChem Q2 Cash of Capital A earn-out activities acti
Slide 12: Tracking against guidance
Tracking against guidance Guidance for YTD Results • Adjusted EBITDA expected to be in the 2024* lower range of initial guidance 2024 Guidance* Adjusted EBITDA at $80 - $85M $39.4M** Bozzetto and Cortland • Will monitor macro-economic developments closely Holdco Costs $13M $6.8M*** Aimia expects to
Slide 13: Updated valuation metrics
Updated valuation metrics In millions As at June 30, 2024 Cash & marketable securities $114.6 • Highlights to assist with modeling Market Capitalization $265.1 purposes Preferred shares (Par value) $236.0 • Updated to reflect H1 results Tax losses carry forward $766.1 Common shares outstanding 98.2
Slide 14: Strategic developments
Strategic developments AIMIA
Slide 15: Update on share buyback
Update on share buyback • NCIB launched June 6 Total available shares • Received approval to purchase up to 10% % Purchased of public float or 7,009,622 common shares 25.4% • Purchased approximately 25% of available shares* to date, including 1.3M block • Will continue to be opportunistic with purch
Slide 16: Strategic review committee
Strategic review committee • Committee formed in July following AGM • Evaluating options to unlock value and return capital to shareholders • Potential sale of core holdings • Potential re-capitalization • Potential merger and tax loss utilization • Selection of financial advisor expected in coming
Slide 17: Summary
Summary • Started H2 with strong momentum • Re-iterated guidance for 2024 • Plans for value creation will be accelerated in Q3 • Updates on strategic review pending • Selection of financial advisors • Identification of options On track to sustain H1 momentum through end of year 17
Slide 18: Questions?
Questions? AIMIA
Slide 19: TSX: AIM www.aimia.ca IRandMedia@corp.aimia.ca
TSX: AIM www.aimia.ca IRandMedia@corp.aimia.ca
Slide 20: Appendix Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures
Slide 21: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA BOZZETTO (in millions of Canadian dollars) Q2 2024 Q1 2024 Q2 2023 Reconciliation of Adjusted EBITDA Operating income (loss) 4.7 9.7 (6.8) Depreciation and amortization 5.3 5.1 2.9 Cost related to the termination of Paladin agreements 4.9 — — Transaction related cos
Slide 22: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA CORTLAND INTERNATIONAL (in millions of Canadian dollars) Q2 2024 Q1 2024 Q2 2023 Reconciliation of Adjusted EBITDA Operating income (loss) (2.7) 0.8 1.3 Depreciation and amortization 2.9 3.0 2.3 Cost of sales expense related to inventory fair value step up resulting
Slide 23: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA HOLDINGS (in millions of Canadian dollars) Q2 2024 Q1 2024 Q2 2023 Reconciliation of Adjusted EBITDA Operating income (loss) (8.0) (10.9) (7.2) Share-based compensation 0.8 (1.9) (0.4) Cost related to the termination of Paladin agreements 0.8 __ __ __ Adjusted EBITD
Slide 24: Reconciliation of HoldCo costs
Reconciliation of HoldCo costs Six Months Ended June 30 2024 Holdings segment Selling, general and administrative expenses 18.9 Shareholders activism related expenses (9.8) Share-based compensation (expense) reversal 1.1 Separation payments related management changes (1.6) Costs related to the termi