Slide 1: Alliance Data NYSE: ADS 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 $190 billion direct and digital marketing channel: Advantages over traditional marketing c
Slide 3: Three Businesses. One Focus.
NYSE: ADS | Q4 2010 3 Three Businesses. One Focus. The largest and most comprehensive provider of transaction-based marketing and loyalty solutions. These solutions are delivered through 3 businesses: Private Label Designs, delivers and Designs and executes Drives sales for our manages a suite of RO
Slide 4: Key Clients
NYSE: ADS | Q4 2010 4 Key Clients Shell Oil of Canada We work with the biggest brands in North America. ©2010 ADS Alliance Data Systems, Inc. Confidential and Proprietary
Slide 5: 2010 YTD Operating Results
NYSE: ADS | Q4 2010 5 2010 YTD Operating Results ($MM, except per share data) Nine Months Ended September 30, 2009 2009 2010 % Change Actual Pro Forma 1 Actual 10/09PF Revenue $1,418 $1,819 $2,036 12% Net Income $103 $103 $147 43% EPS $1.78 $1.78 $2.63 48% Adjusted EBITDA $415 $518 $629 21% Core EPS
Slide 6: Liquidity and Capital
NYSE: ADS | Q4 2010 6 Liquidity and Capital Liquidity and Capital at September 30, 2010 Corporate: Bank Liquidity: Bank Capital: • $500 million in • $3.0 billion of available WFNNB Regulatory available liquidity, liquidity Ratios at September excluding $274 million • All financings completed 30, 201
Slide 7: 2010 Guidance
NYSE: ADS | Q4 2010 7 2010 Guidance ($MM, except per share data) 2009 2010 % Pro Forma Guidance Change Revenue Reported $2,513 +11% Normalized 1 $2,478 $2,800 +13% Core EPS Reported $5.16 +10%+ Normalized 1 $4.64 $5.70+ +23%+ 1. Excludes infrequently occurring items. ©2010 ADS Alliance Data Systems,
Slide 8: 2010 Trends
NYSE: ADS | Q4 2010 8 2010 Trends Double-digit Revenue Growth Across All 3 Businesses LoyaltyOne: Epsilon: Private Label: •Flat issuance growth • Accelerating back-half of •Available liquidity of $3.0 • 100% sponsor renewal year due to key program billion rate launches •Principal loss rates continue
Slide 9: 2011 Guidance
NYSE: ADS | Q4 2010 9 2011 Guidance ($MM, except per share data) 2010 2011 % Guidance Guidance Change Revenue $2,800 $3,000 8% EPS $3.48 $4.66 34% Core EPS $5.70 $6.75 18% Diluted shares 55.6 56.0 +1% ©2010 ADS Alliance Data Systems, Inc. Confidential and Proprietary
Slide 10: 2011 Outlook
NYSE: ADS | Q4 2010 10 2011 Outlook Revenue and Core EPS Growth of at Least 8% and 18%, Respectively LoyaltyOne: Epsilon: Private Label: •Single-digit growth in both •Strongest growth rates in •Moderate portfolio growth revenue and adj. EBITDA the Company •Continued divergence •Miles issued increase
Slide 11: The Business Model: Units Cycle Differently
NYSE: ADS | Q4 2010 11 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 “Muddle Through” Liquidity Crisis Challenging Regulatory Environment Massive Layoffs No Double-dip, But Only 2-3
Slide 12: Alliance Data's Safe Harbor Statement and Forward-Looking Statements
NYSE: ADS | Q4 2010 12 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 statem
Slide 13: Financial Measures
NYSE: ADS | Q4 2010 13 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