Aimia Inc. · TSX:AIM
Aimia — Investor Day (October 2013)
19 slides from Aimia's investor day presentation, Oct 1, 2013
Slide 1: Inspiring Loyalty - Investor Day 2013
INSPIRING LOYALTY AD DING VALU INVESTOR DAY 2013
Slide 2: Investing to Grow and Financial Outlook
INVESTING TO GROW AND FINANCIAL OUTLOOK David Adams October 1, 2013
Slide 3: Introduction
INTRODUCTION • Responsible for the overall financial strategic direction, control, reporting and financial monitoring of operations as well as access to capital markets and M&A • Joined in 2007 as EVP, Finance and Chief Financial Officer David Adams EVP AND CHIEF FINANCIAL OFFICER 3
Slide 4: Aimia Financial Track Record
AIMIA FINANCIAL TRACK RECORD Gross Billings 2009-2012 Free Cash Flow 2009-2012 ($M) ($M) 2,188 2,233 2,243 1,447 299.5 265.0 221.2 197.6 F2009 F2010 F2011 F2012 F2009 F2010 F2011 F2012 (1) Gross Billings pre-2010 as reported under previous Canadian GAAP; 2010 and 2011 (1) Free Cash Flow before commo
Slide 5: Continued Focus on Returns to Shareholders
CONTINUED FOCUS ON RETURNS TO SHAREHOLDERS Consecutive Increases in Quarterly Dividend $ per common share, amount paid for all quarters Double-digit returns of the year shown from previous Investments $0.17 $0.16 $0.15 $0.125 Repurchased ~$350M of common shares between 2010 and 2012 pursuant to NCIB
Slide 6: Our 5 Year Strategy
OUR 5 YEAR STRATEGY Strategic Aspiration Strategic Pillars 1 Strengthen our current position “Be the recognized global leader in loyalty, inspiring brands to 2 Codify and replicate build unparalleled successful models globally relationships with their customers by making engagement more 3 Evolve our
Slide 7: Strengthening Existing Business Driving Business Mix Changes: Gross Billings
STRENGTHENING EXISTING BUSINESS DRIVING BUSINESS MIX CHANGES: GROSS BILLINGS F2012 Consolidated Gross Billings (GB) $2.243B Coalition* • Existing business to continue to Proprietary grow but investments will also Major accumulation partners and Analytic (including ISS) drive towards higher All Other
Slide 8: Driving Diversification of Adjusted EBITDA
DRIVING DIVERSIFICATION OF ADJUSTED EBITDA F2012 Adjusted EBITDA, business mix • Aeroplan transformation to reset of Canadian margin level from 2014 • Distributions from investments to Proprietary & Analytics contribute to Adjusted EBITDA Coalitions • Changes to operating model and F2012 Adjusted EB
Slide 9: 2013 Impact of Aeroplan Program Changes
2013 IMPACT OF AEROPLAN PROGRAM CHANGES • The reduction in the Aeroplan breakage rate from 18% to 11% with effect from Q2 2013, in accordance with IFRS, and to align with our current expectations for an increase in member engagement and the cancellation of the seven-year mileage redemption policy. •
Slide 10: Aeroplan Credit Card Partnership Agreements
AEROPLAN CREDIT CARD PARTNERSHIP AGREEMENTS • 10-year financial credit card agreements with each of TD and CIBC, ensuring Aeroplan cardholders at both banks will have access to an enhanced suite of Aeroplan Visa credit cards with exciting new Air Canada and Distinction benefits from January 2014 – A
Slide 11: Summary of Financial Implications Related to Program Changes and Card Agreements
SUMMARY OF FINANCIAL IMPLICATIONS RELATED TO PROGRAM CHANGES AND CARD AGREEMENTS* 2013 2014 and Beyond Gross Billings +3 to 5%, with Canada at A more than 15% increase in selling price per mile under lower end of +1 to 3% financial card agreements Benefit of upfront program contribution payable to A
Slide 12: 2013 Outlook
2013 OUTLOOK1 Target Range Target Range Key Financial Metric (as provided on Feb. 27, 2013) (updated on Sept. 18, 2013) CONSOLIDATED OUTLOOK Gross Billings Growth Between 3% and 5% No change $350 million Adjusted EBITDA $425 million (excluding conveyance transactions2) $230 million to $250 million F
Slide 13: 2013 Outlook
2013 OUTLOOK1 Target Range Target Range Key Financial Metric (as provided on Feb. 27, 2013) (updated on Sept. 18, 2013) Business Segment Gross Billings Growth Outlook Canada Between 1% and 3% Low end of range EMEA Between 5% and 7% No change US & APAC Greater than 5% No change 1. Please refer to the
Slide 14: A Balance Sheet to Support Investment
A BALANCE SHEET TO SUPPORT INVESTMENT Available Cash Debt Annual Interest $M June 30, 2013 $M Rate Maturing June 30, 2013 Cash and cash equivalents 499.4 Revolving Facility(1) Apr. 23, 2016 - Restricted cash 30.6 Senior Secured Notes 2 7.9% Sept. 2, 2014 150.0 Short-term investments 23.1 Senior Secu
Slide 15: Driving an Attractive Investment Proposition
DRIVING AN ATTRACTIVE INVESTMENT PROPOSITION Strategic Aspiration Strategic Pillars Investment Proposition 1 Strengthen our current position Attractive business “Be the recognized model with more global leader in loyalty, diversification of inspiring brands to 2 Codify and replicate profitability
Slide 16: Aimia - Inspiring Loyalty
/A\IMIA INSPIRING LOYALTY
Slide 17: Inspiring Loyalty - Investor Day 2013
INSPIRING LOYALTY AD DING VALU INVESTOR DAY 2013
Slide 18: We Will Know We Succeeded When We Yet Again Reshape the Global Loyalty Industry
WE WILL KNOW WE SUCCEEDED WHEN WE YET AGAIN RESHAPE THE GLOBAL LOYALTY INDUSTRY We will have… Become the only Taken full Changed our Achieved unique Become the company to truly advantage of operating and global reach and premier talent offer a CMO-based regional and technology relevance with a d
Slide 19: Inspiring Loyalty - Investor Day 2013
INSPIRING LOYALTY AD DING VALU INVESTOR DAY 2013