Aimia Inc. · TSX:AIM
Aimia — Shareholder Meeting (May 2012)
43 slides from Aimia's shareholder meeting presentation, May 4, 2012
Slide 1: 2012 Annual and Special Meeting of Shareholders
2012 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS May 4, 2012
Slide 2: Robert Brown, Chairman
ROBERT BROWN Chairman INSPIRING LOYALTY
Slide 3: Board of Directors
BOARD OF DIRECTORS Left to right: Alan Rossy, Rupert Duchesne, Joanne Ferstman, John Forzani, Hon. Michael Fortier, Douglas Port, Robert Brown, David Laidley, Roman Doroniuk • Robert Brown (Chairman) • Joanne Ferstman • David Laidley • Roman Doroniuk • Michael Fortier • Douglas Port • Rupert Duchesn
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS • Solid performance in 2011 • Strong balance sheet • Demonstrated solid cash flow over the past 6 years • Attractive dividend • Share buyback Annual and Special Meeting of Shareholders 4
Slide 5: Today's Agenda
TODAY’S AGENDA • Formal Part of the Meeting • Financial Highlights • Strategic Overview • Q&A • Closing Remarks Annual and Special Meeting of Shareholders 5
Slide 6: Formal Part of the Meeting
FORMAL PART OF THE MEETING INSPIRING LOYALTY
Slide 7: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Forward-looking statements are included in the following presentations. 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”, “w
Slide 8: David Adams, Financial Highlights
DAVID ADAMS Executive Vice President and Chief Financial Officer Financial Highlights
Slide 9: FY 2011 Consolidated Financial Highlights
FY 2011 CONSOLIDATED FINANCIAL HIGHLIGHTS Year Ended % Change on an adjusted basis December 31, Reported Adjusted Reported Adjusted Adjusted Constant Adjustments Adjustments(5) ($ millions except per share amounts) 2011 2011 2010 2010 Year Over Year Currency (6) Gross Billings 2,233.2 - 2,233.2 2,18
Slide 10: Sainsbury's and HSBC Contract Renewal
SAINSBURY’S AND HSBC CONTRACT RENEWAL + + Middle East Wins with existing clients in both Customer Loyalty and Business Loyalty • Win-Win-Win 7-year agreement • Extension of agreement with anchor sponsor in Decrease in Gross Billings mostly explained by the • Sainsbury’s – more engaged members progra
Slide 11: Proprietary Loyalty Update and US Impairment
PROPRIETARY LOYALTY UPDATE AND US IMPAIRMENT • Proprietary Loyalty (formerly Carlson Marketing), a key business in our full suite offering, continues to demonstrate: – A significant improvement in overall value for the entire business as a whole when compared to our original purchase price – Adjuste
Slide 12: Consolidated Gross Billings
CONSOLIDATED GROSS BILLINGS FY 2010 FY 2011 ($ millions) ($ millions) $2,233.2 $2,187.8 ($17.4) $2,170.4 +2.9%growth; +3.1% in c.c.(1) 2010 Reported Accounting Adjustment (US / Excluding Accounting 2011 Reported EMEA) Adjustment (1) Constant Currency excludes the translation effect of foreign operat
Slide 13: Delivering Healthy Gross Billings Growth
DELIVERING HEALTHY GROSS BILLINGS GROWTH FY 2011 FY 2005 ($ millions) ($ millions) 2,187.8 2,233.2 1,501.0 1,447.3 952.2 851.9 754.8 +196%growth (1) 2005 (1) 2006 2007 (2) 2008 2009 2010 2011 (1) Pre-2007 results are those of the partnership. (2) Has been derived by adding the results of the Partner
Slide 14: Consolidated Adjusted EBITDA
CONSOLIDATED ADJUSTED EBITDA FY 2011 ($ millions) FY 2010 $20.7 (3) $368.4 ($ millions) $342.2 $10.4 $352.6 ($4.9) $9.1 $329.4 $14.4 $20.4 $285.5 $17.4 $285.5 ($17.4) +11.8%growth; +11.9% in c.c.(1) 2010 Reported Accounting VAT Loss (EMEA) Excluding Nectar Italia Carlson Marketing Corporate Costs Ex
Slide 15: Growing Consolidated Adjusted EBITDA
GROWING CONSOLIDATED ADJUSTED EBITDA (1) FY 2005 FY 2011 ($ millions) ($ millions) 342.2 319.2 316.2 281.6 285.5 251.7 216.4 168.1 +13 per cent CAGR (2) (3) 2005 (2) 2006 2007 2008 2009 2010 2011 (1) Adjusted EBITDA pre-2010 as reported under previous Canadian GAAP; 2010 and 2011 as reported under I
Slide 16: Free Cash Flow
FREE CASH FLOW Free Cash Flow (1) FCF/ Common Share (2) ($ millions) $221.5 $221.2 $1.08 $197.6 $197.6 $1.08 $1.04 YTD 2011 YTD 2010 FY 2010 FY 2011 FY 2010 FY 2011 (1) Free Cash Flow before common and preferred dividends paid. (2) Calculated as: (Free Cash Flow before common and preferred dividends
Slide 17: Liquidity
LIQUIDITY Mar 31, 2012 Dec 31, 2011 ($ millions) On April 13, 2012, Aimia extended the term of its existing Cash and cash equivalents $179.8 $202.1 $300 million revolving facility by 2 years to April 23, 2016 and Restricted cash $17.4 $15.1 obtained an additional revolving facility in an amount not
Slide 18: Common Dividends
COMMON DIVIDENDS AIM Payout Ratio Dividend Yield Dividend policy will continue to be reviewed annually to ensure that 6.0% growth in the payout ratio is proportionate to Aimia’s free cash flow generation. 5.0% $113 $108 $100 4.0% 3.0% $29 2.0% 1.0% 2009 2010 2011 2012 0.0% Common Preferred Q110 Q210
Slide 19: Common Share Repurchase Summary
COMMON SHARE REPURCHASE SUMMARY Average Common Total Common Shares Repurchased (MM) Price Per Initial NCIB Shares Consideration Common Average Price per Common Share Repurchased (MM) Share Total Shares Repurchased to May 13, 2011 19,983,631 $233.0 $11.66 $12.58 $12.34 Renewed NCIB May 16, 2011 – Dec
Slide 20: Q1 2012 and 2012 Guidance
Q1 2012 AND 2012 GUIDANCE For Q1 2012: • Gross Billings of $537 million, up 2.1% on a constant currency basis, excluding Qantas. • Adjusted EBITDA was $89 million or a 22.5% increase from last year. • Free Cash Flow before dividends paid was up $39.5 million to $18.3 million Confirming 2012 Guidance
Slide 21: Rupert Duchesne, Strategic Overview
RUPERT DUCHESNE Group Chief Executive Strategic Overview
Slide 22: Executive Team
EXECUTIVE TEAM Left to right: Vince Timpano, Susan Doniz, Rupert Duchesne, Liz Graham, Mark Hounsell, Sandy Walker, David Johnston, Melissa Sonberg, David Adams • Rupert Duchesne • Liz Graham • Melissa Sonberg • David Adams • Mark Hounsell • Vince Timpano • Susan Doniz • David Johnston • Sandy Walke
Slide 23: Strategic Overview
STRATEGIC OVERVIEW • 2011: A record year for Aimia • Advancements in our EMEA region • Officially launched the new brand Annual and Special Meeting of Shareholders 23
Slide 24: Story of Aimia
STORY OF AIMIA Only full suite loyalty provider with operations in more than 20 countries Aeroplan formed Groupe Aeroplan as stand-alone entity Italia becomes Aimia of Air Canada 1984 1991 2002 2005 2006 2007 2008 2009 2010 2011 IPO of Aeroplan Income Fund Aeroplan to a Corporation 1984-1990 Income
Slide 25: Unmatched Global Scale and Scope
UNMATCHED GLOBAL SCALE AND SCOPE Canada UK Italy USA Japan Lebanon Bahrain Jordan Qatar Mexico Egypt UAE Hong Kong Oman India Singapore Consolidated Gross Billings Brazil Indonesia Malaysia F2011 $2.23B Chile Australia New 58% THE Zealand LARGEST Canada PURE PLAY 42% Rest of World LOYALTY COMPANY IN
Slide 26: A Multinational Company Inspiring Loyalty Through a Full-Suite Global Offering
A MULTINATIONAL COMPANY INSPIRING LOYALTY THROUGH A FULL-SUITE GLOBAL OFFERING Coalition Loyalty Programs Loyalty Data Analytics Proprietary Loyalty Services Annual and Special Meeting of Shareholders 26
Slide 27: US & Asia Pacific
US & ASIA PACIFIC • 2011: A year of repositioning • Continue to build out loyalty capabilities • Signed with Standard Chartered Bank Annual and Special Meeting of Shareholders 27
Slide 28: Europe, Middle East and Africa
EUROPE, MIDDLE EAST AND AFRICA UK Middle East Italy Annual and Special Meeting of Shareholders 28
Slide 29: Europe, Middle East and Africa: Nectar UK
EUROPE, MIDDLE EAST AND AFRICA Nectar UK • Key driver of growth in 2011 • All-time high with 18.5 million members • British Gas has already become our second largest partner • Addition of easyJet Annual and Special Meeting of Shareholders 29
Slide 30: Contract Renewal with Sainsbury's
CONTRACT RENEWAL WITH SAINSBURY’S Annual and Special Meeting of Shareholders 30
Slide 31: Europe, Middle East and Africa: Middle East and Nectar Italia
EUROPE, MIDDLE EAST AND AFRICA Middle East • Contract extension with HSBC Nectar Italia • Country’s largest loyalty program with 9 million members • Good year despite tough trading environment Annual and Special Meeting of Shareholders 31
Slide 32: Intelligent Shopper Solutions: World Leading Experts in Loyalty Analytics
INTELLIGENT SHOPPER SOLUTIONS: World Leading Experts in Loyalty Analytics # 1 drug retailer # 2 supermarket #2 supermarket #2 Grocery retailer in world in Switzerland in Australia in Canada Annual and Special Meeting of Shareholders 32
Slide 33: Canada
CANADA • Record results in 2011 Proprietary Loyalty • Strong cost management • Expansion to new verticals • Realization of synergies Annual and Special Meeting of Shareholders 33
Slide 34: Aeroplan Canada
AEROPLAN CANADA 2011: A record year for Aeroplan • Solid top line growth • Low cost per mile redeemed • Focus on effective productivity and expense management • Expanded earn potential with Costco Canada • Contract renewals with Imperial Oil – Esso and Home Hardware • Ongoing improvements Annual and
Slide 35: Investing in Our Future
INVESTING IN OUR FUTURE Becoming the recognized global leader in loyalty management 2011: Aimia completed a number of important strategic initiatives that will further our objectives. Annual and Special Meeting of Shareholders 35
Slide 36: Club Premier
CLUB PREMIER An opportunity to replicate the successful Aeroplan Canada business in Mexico • Aimia increased its equity investment to nearly 30% of Club Premier, Aeromexico’s frequent flyer program • After first year in business, Club Premier has more than 3 million members • Launched co-branded cre
Slide 37: Cardlytics: Unlocking the Significant Potential Value of Non-Currency Loyalty
CARDLYTICS: UNLOCKING THE SIGNIFICANT POTENTIAL VALUE OF NON-CURRENCY LOYALTY Merchant Consumers Banks • Significantly better ROI • Trusted advertising channel • Valuable customer rewards from precise targeting • Superior consumer at no cost • Unparalleled visibility experience • Revenue share • Pro
Slide 38: New Ventures
NEW VENTURES Brazil • Joined forces with Multiplus, Brazil’s leading loyalty network • Build, grow and transform the loyalty marketing services industry India • Partnership with Tata Capital, a major force in the Indian market • Develop and seek out partners • Establish a retail coalition Annual and
Slide 39: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY • Support employee-led initiatives around the globe • Enhancing our global corporate carbon footprint measurement • Refining and establishing our global CSR philosophy Annual and Special Meeting of Shareholders 39
Slide 40: An Exciting Future Ahead
AN EXCITING FUTURE AHEAD • New brand supports our vision of inspiring loyalty • Large geographic scope OUR PRIORITIES ARE FOCUSED ON • Aimia is best positioned to compete in increasingly DELIVERING LONG- intense competitive environment by offering the global TERM SUSTAINABLE full-suite of products a
Slide 41: An Exciting Future Ahead
AN EXCITING FUTURE AHEAD COALITION LOYALTY PROPRIETARY LOYALTY ANALYTICS LOYALTY Annual and Special Meeting of Shareholders 41
Slide 42: Q&A
Q&A INSPIRING LOYALTY
Slide 43: Thank You
AIMIA INSPIRING LOYALTY