Aimia Inc. · TSX:AIM
Aimia — Debt Investor Presentation (December 2014)
23 slides from Aimia's debt investor presentation, December 2014
Slide 1: Aimia Credit Rating Agency Meetings
DELETED SLIDES 7 AND 11 FROM PREVIOUS VERSION CHANGED DATE ON FRONT PAGE REORDERED SLIDES IN DECK ADDED PLACEHOLDERS FOR NEW SLIDES CAN WE CHANGE THE IMAGE ON COVER SLIDE TO DISTINGUISH VS EQUITY PRESENTATION? AIMIA CREDIT RATING AIMIA AGENCY MEETINGS December 2014 December 2013
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: A Multinational Company Inspiring Loyalty Through a Full-Suite Global Offering
A MULTINATIONAL COMPANY INSPIRING LOYALTY THROUGH A FULL-SUITE GLOBAL OFFERING FY 2013 Consolidated Gross Billings $2.366B Proprietary Loyalty and Analytics & Insights 28% Proprietary Coalition Analytics Proprietary Loyalty Coalition & Insights Services (Loyalty Units) 72% 72% 3
Slide 4: We Have Come a Long Way
WE HAVE COME A LONG WAY Aimia cert -» pear IN M IA invests in ® “GROUPE @ che Ti prema prim, y AEC AN ADA Aeroplan becomes AEROPLAN om Groupe Aeroplan ChinaRevares Sn) ' @ separate entity Aeroplan becomes Gemter’ rebrands as Aimia Air Canada from Air Canada Groupe Aeroplan Frome, Ae launches frequen
Slide 5: Unmatched Global Scale and Scope
UNMATCHED GLOBAL SCALE AND SCOPE Canada UK Spain Italy USA Lebanon Japan Jordan Bahrain Egypt Qatar Mexico UAE India Hong Kong 45% Oman Consolidated Gross Billings Singapore FY 2013 Indonesia Brazil Malaysia $2.366B 55% Australia Chile Canada New Zealand Rest of World THE LARGEST PURE PLAY LOYALTY C
Slide 6: ...With Substantial Room to Grow
…WITH SUBSTANTIAL ROOM TO GROW Market Size $B, 2012 900 -740 160 -60 $90-100B $13-20B May be subject $80-87B to disruptive strategies from loyalty players Global Non-loyalty Loyalty Non- Aimia’s Coalitions Proprietary marketing marketing marketing addressable addressable spend spend spend by geograp
Slide 7: Building on a Strong Financial Track Record
BUILDING ON A STRONG FINANCIAL TRACK RECORD Gross Billings 2010-2014 Free Cash Flow 2010-2014(1) ($M) ($M) 7%-9% growth(1) In excess of $270M(5) 2,366 299.5 2,188 2,233 2,243 273.6(2) 268.1(4) 9M 2014 9M 2014 269.9 1,999 221.5(3) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2010 FY 2011 FY 2012 FY 201
Slide 8: Continued Return to Shareholders
CONTINUED RETURN TO SHAREHOLDERS Return of Capital Quarterly Dividends Per Common Share* since 2009 ~$523M of dividends paid to common $0.180 shareholders $0.170 between 2009 $0.160 and 2013 $0.150 $0.125 $0.125 Repurchased ~$333M of common shares since 2010 pursuant to NCIB 2009 2010 2011 2012 2013
Slide 9: Strong Underlying Performance in 2013
STRONG UNDERLYING PERFORMANCE IN 2013 • Gross Billings up 4.5% on a constant currency basis and regional Gross Billings in line with our guidance • Adjusted EBITDA of $350.5 million(1), excluding conveyance items (2) • FCF above our guidance at $268.1 million, excluding conveyance items +4.5% +4.5%
Slide 10: 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 11: 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 12: 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 13: 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 14: Capturing 50% of Consumers' Annual Spend
CAPTURING 50% OF CONSUMERS’ ANNUAL SPEND Financial Household Bills Grocery Home / Garden Car Travel L&E 2% 1% Credit Card / Bank Fees TV License Household Garden Other Taxi Ticketing Pharmacy Shoes Products Air Photo Incidentals Baby Savings Mobile Entertainment Books Pets Car Service Life Assurance
Slide 15: Access to a Rich Coalition Data Set
ACCESS TO A RICH COALITION DATA SET Personal and Registration Data Transaction and Program • Name • Address Interaction Data • Gender • Email • DOB • Phone • Transaction level data in all Nectar • 95% accurate (regular cleansing) partners and e-stores (location, spend, frequency) • Responsiveness to
Slide 16: 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 $269.9M (2) +17.0% 12.7% margin +82.7% (1) Free cash flow before common and pr
Slide 17: Q3 2014 Gross Billings Growth by Region
Q3 2014 GROSS BILLINGS GROWTH BY REGION ($ MILLIONS) $47.5 $14.0 ($4.6) $633.2(2) $576.7 EMEA US & APAC Canada Consolidated: +9.8% growth; +5.8% in c.c.(1) Canada: +14.8%; EMEA: +8.3%; (2.7%) in c.c.(1); US & APAC: (5.3%); (10.4%) in c.c.(1) 2013 Reported 2014 Reported (1) Constant Currency (c.c.) c
Slide 18: Q3 2014 Consolidated AEBITDA
Q3 2014 CONSOLIDATED AEBITDA ($ MILLIONS) ($14.3) $85.7 ($9.1) $3.6 $63.9 ($1.8) $0.3 ($0.5) Canada EMEA US & Club Premier Corporate Stock APAC (PLM) based distribution compensation 2013 2014 Reported Reported 18
Slide 19: Drivers of Free Cash Flow
DRIVERS OF FREE CASH FLOW* ($ 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 20: 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 21: 2015 Regional Outlook
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 22: 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 23: Thank You
THANK YOU